PROCEEDINGS OF THE STURGIS CITY COUNCIL JUNE 4, 2012

2012-06-15T08:00:00Z PROCEEDINGS OF THE STURGIS CITY COUNCIL JUNE 4, 2012 Rapid City Journal
June 15, 2012 8:00 am

PROCEEDINGS OF THE STURGIS CITY COUNCIL

The Common Council of the City of Sturgis met in regular session starting at 6:30 p.m. on Monday, June 4, 2012 at the Erskine Building. Present: Mayor Mark Carstensen, Alderpersons Joe DesJarlais, David Hersrud, Marcia Johnston, Jamie McVay, and Tim Potts. Also present City Manager Daniel Ainslie and City Attorney Greg Barnier. Absent: Dane Sundstrom, Ron Waterland and Kelly Vasknetz.

Mayor Mark Carstensen led everyone in the Pledge of Allegiance.

Announcements:

Mayor Carstensen read a proclamation congratulating the Sturgis Motorcycle Museum on their expansion of the Museum.

The City of Sturgis will have a display table at the civic center for the memorial that will be held on June 9th for the Rapid City flood remembrance.

Amanda Friar will be moving to a different department for the Rapid City Journal and will no longer be covering our meetings. The Mayor thanked her for her reporting.

The Travel Channel will be at Easy Riders Restaurant filming a show on June 13, 2012 from 4:00 pm to 7:30 pm. They ask that everyone come down and enjoy free food and drink.

The Mayor thanked Randy Nohava for all of his 26 years of dedication to the City and wished him the best.

Informational Reports:

City Attorney Greg Barnier gave an update on his Department:

He is working on revising and updating ordinances.

Answering questions on licensing and contracts and helping with bid specifications.

Working with Human resource on personnel and human relation questions.

Liquor Store Manager Tom Ferguson gave an update on his Department:

Starting in January they implemented a new program that asks customers for their zip codes in order to track who is coming into the store.

On average most retail liquor stores spend between 5.5% and 7.5% on marketing, the Sturgis Liquor Store spends 2.7%.

The breakdown is as follows on use from other cities: Rapid City-1,020; Spearfish-629; Whitewood-1247; Lead/Deadwood-545; Newell/Vale-690; Belle Fourche 171 and Sturgis-20875.

City Manager Ainslie reported:

Congratulated Randy Nohava again for his dedicated service to the City.

The second cent sales tax is up .02 percent over last year and the gross receipts sales tax (Triple B) is up 2 percent.

Motion by Hersrud, second by McVay and carried with all members voting yes to approve the consent calendar.

Roger Scheiman had concerns about setting a public hearing for a off-sale retail liquor license for the Liquor Store annex.

Motion by Johnston second by Hersrud and carried with all members voting yes to approve the following claims with the exception of Johnston Hardware for $55.18:

Wages – Ambulance $12,054.57; Attorney $2,884.62; Auditorium $223.20; Buildings $2,145.07; Cemetery $2,309.60; City Manager $4,510.08; Community Center $12,982.55; Community Development $5,172.82; Finance Office $8,623.97; Fire Department $3,352.57; Human Resource $2,121.81; Library $8,683.32; Liquor $4,355.39; Mayor and Council $3,652.53; Parks $12,187.70; Police $35,194.69; Rally $3,591.46; Sanitary Service $10,198.49; Streets $8,352.28; Wastewater $8,918.42; Water $14,694.75; Federal Withholding $15,563.95; FICA $12,203.60.

General – A&B Business, $150.57, supp; Laurie Adkins, $80.00, cc prog exp; Amazon, $290.73, supp; Amcon, $1171.48, merch for resale; Assoc Supply Co, $615.15, repair; Avaya, $36.39, util; Baker & Taylor, $289.72, supp; Bryan Beaulizu, $160.00, cc prog exp; Leonie Bennett, $30.75, supp; Bentz Equip, $363.32, repair; BH Chemical, $189.75, supp; BH Harley Davidson, $699.15, repair; BH Power, $2869.37, util; BH Rally & Gold, $300.00, merch for resale; Jerry Burnham, $2490.92, prof fee; Butte Electric, $494.99, util; Mark Carstensen, $60.00, travel; CBH Cooperative, $230.85, supp; CCP Industries, $1141.82, supp; Century Business, $98.99, supp; Chamber of Commerce, $250.00, supp; Community Center Petty Cash, $4.14, merch for resale; Corbon Law Enforcement, $149.99, supp; Dakota Backup, $141.03, prof fee; Dakota Tree Spraying, $100.00, supp; Dan Davidson, $400.57, supp; Wade Deuter, $30.00, other; Double Star Computing, $301.80, prof fee; First Western Insurance, $825.00, insur; Fry Communications, $35.00, publ; G&G Enterprises, $224.00, merch for resale; Graffiti Solutions, $167.00, supp; Great Western Tire, $617.60, supp; Gumdrop Books, $240.00 supp; Hauff Mid-America Sports, $527.25, cc prog exp; Heartland Paper, $239.17, supp; Hills Materials, $496.52, repair; Hillyard, $720.08, supp; J&L Services, $280.00, repair; Jacobsen Ford, $44.50, repair; Lori Jeffery-Kirk, $210.00, travel; Knology, $2165.03, util; Lacal Equipment, $1050.51, supp; Long Rider Books, $248.19, supp; Michelle McAuley, $80.00, cc prog exp; Menards, $7.99, supp; Keith Morell, $80.00, cc prog exp; Candy Morrell, $3311.09, maint; Motoring USA, $701.13, prof fee; Newkirk’s Ace Hardware, $205.79, supp; Northwest Pipe, $205.13, supp; Pete Lien & Sons, $1431.80, supp; Dane Pi, $60.00, other; Pizza Hut, $30.00, other; Public Safety Equip, $607.26, equip; Rapid City Journal, $144.00, supp; Regional Health Physician, $18.00, prof fee; Rushmore Office, $995.91, supp; Rushmore Safety Supplies, $68.35, supp; Sacrison Asphalt, $1231.80, supp; Scottsdale Insurance, $1000.00, grp insur; SD Govt Finance Office Assn, $150.00, travel; SD Human Resource Assn, $50.00, travel; SD Library Network, $3558.00, maint; SD Municipal Attorney Assn, $15.00, travel; SD State Archives, $28.80, supp; Sturgis Photo, $140.00, other; Summit Signs, $40.00, supp; Tactical Technologies, $5254.00, equip; Tigerdirect.com, $213.40, supp; Two Wheeler Dealer, $1732.00, equp; Verizon, $1925.71, util; Doug Wagner, $300.00, repair; Wellmark Blue Cross, $85.52, grp insur; Amanda Whelchel, $80.00, cc prog exp; Whisler Bearing, $33.50, repair; Ziegler Building, $102.43, supp; Zylstra Body, $1064.91, repair.

Special Sales Tax – Chamber of Commerce, $10,666.67, chamber; SEDC, $8333.33, ind dev.

Capital Improvement – Fence Crafters, $4492.08, cap imp; Freeman Electric, $9975.00, cap imp.

Liquor – Amcon, $3540.22, cig for resale; Buffalo Chip Campground, $129.00, publ; Cask & Cork, $204.00, off sale liquor; Century Business, $1.51, supp; Johnson Western Wholesale, $501.94, off sale liquor; Knology, $164.48, util; M&B Enterprises, $24.00, snacks for resale; One Way Service Pros, $150.00, repair; Outlaw’s LTD, $141.04, prof fee; Regional Health Physician, $18.00, prof fee; Sturgis Cigar & Knife, $127.55, tobacco for resale; Verizon, $53.92, util; Wellmark Blue Cross, $4.80, grp insur.

Water – BH Power, $7813.27, util; Butte Electric, $183.60, util; Knology, $120.08, util; Candy Morrell, $362.55, maint; Verizon, $296.38, util; Wellmark Blue Cross, $20.80, grp insur.

Wastewater – AT&T Mobility, $133.58, util; BH Power, $3146.69, util; Energy Lab, $431.00, prof fee; Fastenal, $97.07, repair; G&H Distributing, $166.68, repair; Great Western Tire, $1696.70, supp; Candy Morrell, 238.18, maint; Regional Health Physician, $18.00, prof fee; Richter’s Tire, $3.50, repair; Verizon, $89.78, util.

Sanitary Service – BH Power, $236.88, util; Century Link, $53.58, util; Fastenal, $5.40, supp; Candy Morrell, $238.18, maint; Northern Truck Equip, $145.00, repair; Summit Signs, $175.00, supp; Verizon, $29.23, util.

Ambulance – BH Power, $537.04, util; Century Business, $31.34, supp; Dakota Backup, $50.34, supp; Dakota Tree Spraying, $100.00, supp; Dale’s Tire, $249.02, supp; DB Billing, $3059.19, prof fee; Holiday Inn, $93.00, travel; Knology, $103.78, util; Regional Health Physician, $36.00, prof fee; Regional Home Medical Equip, $386.50, supp; Richter’s Tire, $63.99, repair; SD Dept of Public Safety, $12.00, supp; Verizon, $78.40, util; Wellmark Blue Cross, $8.88, grp insur.

TIF #9 Palisades – First Interstate Bank, $17,299.97, other.

Motion by Potts, second by McVay and carried with Potts, McVay, Carstensen, Hersrud and DesJarlais voting yes and Johnston abstaining to approve the following claim: Johnston Hardware for $55.18.

Motion by Hersrud, second by Potts and carried with all members voting yes to approve the name change on the On-Off Sale Malt Beverage License for Poker Alice Casino to Poker Alice Casino, LLC.

Motion by Hersrud, second by Potts and carried with all members voting yes to approve the change in corporate ownership for Emporium of Design, LLC/Road Kill Café.

Motion by Johnston, second by McVay and carried with all members voting yes to open the public hearing for renewals of On-Off sale & Off-Sale Malt Beverage Licenses for 2012-2013.

Community Development director Rick Bush explained that the on/off sale malt beverage license for Dennis Lovold & Russ Ullerich and Dusty Ullerich, LLP – Road Kill Café has been inactive for a year and that there has not been a building permit applied for or any other activity with their location at 1333 Main Street. Title 3 of the City Ordinances state that there must be a permanent structure in place to hold the malt beverage license. Staff would recommend that the license be denied.

A representative from Road Kill Café, Vicky, explained that there had been some issues with the estate due to the passing of one of the owners.

Mike Bachand has concerns about the fence that was to be erected between the property at 1333 Main Street and 1337 Main Street. Mr. Bachand also stated that the property needs to be cleaned up.

Dallerie Riesland , owner of Main and Fourth also had concerns about the fence.

Motion by Hersrud, second by McVay and carried with all members voting yes to renew the following license with the exception of Dennis Lovold & Russ Ullerich and Dusty Ullerich, LLP – Road Kill Café and table the renewal of this on/off sale malt beverage license application until next meeting and ask that one of the owners be present.

Package (off-sale)

Pamida Store Operating Co., LLC – Pamida, 2105 Lazelle

Fresh Start Convenience Stores, Inc – Fresh Start Sturgis, 2620 Lazelle

Fresh Start Convenience Stores, Inc – Fresh Start Sturgis Conoco, 2350 Lazelle

Fresh Start Convenience Stores, Inc – Fresh Start Conoco, 990 Lazelle

Moyle Petroleum Co – Common Cents Food Store, 2421 Junction Ave

Farmers Union Oil Co – Cenex C-Store, 2030 Lazelle

Sturgis RV Park – 1175 W. Woodland Drive

Lynn’s Discount Foods – Lynn’s Dakotamart – 1111 Lazelle (This includes SD Farm Wine)

Kan-Meyer Inc – Grocery Mart, 2216 Junction (This includes SD Farm Wine)

Retail (on-off) Sale

Shifter’s Holdings LLC – Shifter’s Café and Bar, 1025 Junction Ave

Sturgis Events LLC – Sturgis Events, 1231 Lazelle

Lybeck’s Twenty-First Century Inc – Shenanigan’s Casino, 935 Main St

Glen and Suzanne Bailey, LLC – Big Bertha’s Biker Bar, 1123 Main St

Buffalo Bills Bowling & Firehouse Saloon – 910 1st Street

Days End Campground Inc – Days End Campground, 2501 Avalanche Rd

Main & Fourth, 1337 Main St

BJ’s Country Store, 1337 Main St

Jim Mason – Gold Pan Pizza, 1133 Main St

Norma & Wayne Weyer – Poker Alice Casino, LLC, Lot A of Lot X-1 of Lot X, Schnell’s Addition, 850 sq ft on SE corner of Building located on the above described lot

Schmid Investments-Side Hack Saloon LLC – Sidehack Saloon, 1027 Lazelle (This includes on/off sale SD Farm Wine)

Dungeon Bar, Inc – Royal Flush Casino & Sport Bar, 1030 Main St

Buffalo Bills Corp – Buffalo Bill’s Casino, 1544 Lazelle

Goodine’s – 2214 Junction

Black Hills Pizza Hut of Sturgis – Pizza Hut of Sturgis, 2249 Lazelle

Tom’s T’s – Sturgis Wine Company – 1117 Main Street

MAJR, LLC – Sturgis Coffee Company, 2275 Lazelle Street

Charley’s Sturgis Classic Bike Event – Charley’s, 947 Main Street

Leland Swanson, 958 Dudley Street.

3H Brothers – Temporary Insantity – 1012 Main St

Willie Nillie Inc. – Willie Nillie – 2715 Lazelle St. Suite D

Billy & Jason Fields – Rosco’z, 976 Lazelle

JJ Davenport’s – 1020 Junction Ave

Motion by McVay, second by Johnston and carried with all members voting yes to approve the Special Events license for American Legion Veteran’s Club at Sturgis Auditorium on July 7, 2012 for wedding reception.

Motion by McVay, second by Potts and carried with all members voting yes to approve the Special Events License for The Knuckle Saloon for the PRC Rodeo at the Sturgis Fairgrounds on June 15, 16, & 17, 2012.

Motion by DesJarlais, second by McVay and carried with all members voting yes to approve the Special Events License for JJ Davenport Restaurant for the Sturgis Moto-Fest at Sturgis Fairgrounds on August 4, 2012.

Motion by DesJarlais, second by Johnston and carried with all members voting yes to approve the following payroll changes: Community Center Department – Lacey Hinker-Fun & Fitness Instructor-$8.25; Pay Increases: Adam Hosch-Night/Weekend Supervisor-$9.50; Front Desk: Jarret Fowler-$8.00, Kristine Estes-$7.75, Theresa Hinker-$7.75; Lifeguard: Joshua O’Dea-$8.50, John Paul-$7.50, Gunner Bergland-$7.50; Liquor Store – Kim Nelson – Sales Clerk - $8.00; Pay Increase: Jean Kusser – Sales Clerk - $9.00; Library – Pay Increase: Eddie Wagner – Library Tech Aide - $8.25; Parks Department – Pay Increase: Tanya Neuschwander –Assistant Parks Director – $18.01.

Motion by Hersrud, second by Johnston and carried with all members voting yes to approve the use of City property, Fairgrounds – Sturgis Motofest Freestyle on August 4, 2012.

Tammy Bohn representing Dirt Promotions describe what they will be doing at the Motofest Freestyle event and they hope to put on many other events at the fairgrounds. They would like to see some improvements at the fairgrounds in the coming years.

Motion by Hersrud, second by DesJarlais and carried with all members voting yes to approve second reading of Ordinance 2012-09, Title 14 Parks – 14.06.03 Pet and Animals.

ORDINANCE 2012-09

AN ORDINANCE AMENDING TITLE 14 – PARKS. CHAPTER 14.06: RULES AND REGULATIONS. SECTION 14.06.03: PETS AND ANIMALS.

BE IT ORDAINED by the Common Council of the City of Sturgis, Meade County, South Dakota that Title 14 –Parks is hereby amended to read as follows:

14.06.03: PETS AND ANIMALS

Any pet allowed by City Ordinance 32.02.03 and present within any City Park, Recreation Area, Bike Path or cemetery shall be on a leash no longer than ten (10) feet. Any person bringing a pet within any City Park, Recreation Area, Bike Path or cemetery shall clean up after the pet, consistent with City Ordinance 12.02.01 (CC).

No horses shall be allowed within any City Park, Recreation Area or Bike Path except as authorized by the City Council.

Dated this 4th day of June, 2012.

First Reading: May 21, 2012

Second Reading: June 4, 2012

Adopted: June 4, 2012

Published: June 13, 2012

Effective: July 4, 2012

Motion by DesJarlais, second by Hersrud and carried with all members voting yes to approve second reading of Ordinance 2012-10, Title 32 Animals – 32.03.03 Dogs, Cats & Ferrets Running at Large.

ORDINANCE 2012-10

AN ORDINANCE AMENDING TITLE 32 – ANIMALS. CHAPTER 32.03: DOGS AND CATS. SECTION 32.03.03: PETS AND ANIMALS.

BE IT ORDAINED by the Common Council of the City of Sturgis, Meade County, South Dakota that Title 32 –Animals is hereby amended to read as follows:

32.03.03: DOGS, CATS, AND FERRETS RUNNING AT LARGE

General – Any person who owns or who has under his care a dog, cat or ferret shall not allow said dog, cat, or ferret to run at large in the City, and except as provided for in 32.03.03(B), when said dog, cat, or ferret when is present within the City, it shall either be on a leash not longer than ten feet controlled by a person, or properly secured to a leash which has been tied to an immovable object, or confined within an enclosure sufficient to keep said dog, cat, or ferret restrained from escaping such enclosure. No dog, cat, or ferret shall be leashed to an immovable object so as to permit the dog, cat, or ferret to walk on or over any public sidewalk or street, or any property of another person other than that of the owner of said dog, cat, or ferret. Any dog, cat or ferret not confined by leash or enclosure as set forth herein, is hereby declared to be running at large and is declared to be a public nuisance. When dogs, cats, and ferrets are found running at large, and their ownership can be discovered by examination of any rabies license which must be affixed to the dog, cat, or ferret or by inquiry of any person residing in the immediate vicinity where the dog, cat, or ferret was first taken into possession, such dog, cat or ferret need not be impounded, but the Animal Control Officer may cite the owner of such dog, cat, or ferret to appear in Court to answer charges of violations of this ordinance. Such citation shall state the violation date, time, location, breed, and color of the dog, cat, or ferret, rabies tag number, if known, and the name and address of the owner of said dog, cat, or ferret. Said notice shall direct the owner to appear before the Magistrate Court to answer to the charge of such violation.

B. Public Park, Recreation Areas, Bike Path and Cemetery – It shall be unlawful to have any animal in any public park, recreation area, Bike Path, or cemetery, or in an area specifically designated as a pet area within the City, except under leash control and on designated roads and walkways,. Any persons or organizations otherwise authorized by the City Council are exempt from this limitation.

Dated this 4th day of June, 2012.

First reading: May 21, 2012

Second reading: June 4, 2012

Adopted: June 4, 2012

Published: June 13, 2012

Effective: July 4, 2012

Johnston introduced the following written resolution and moved its adoption:

RESOLUTION 2012 – 19

A RESOLUTION TO CONVEY REAL PROPERTY TO

STURGIS ECONOMIC DEVELOPMENT CORPORATION

WHEREAS the City of Sturgis is the owner of real property which is described as follows:

Lot 17 of Lot A-2 of Hurley Subdivision, located in the SE1/4 of the SW1/4, Section 9, T5N, R5E, B.H.M., City of Sturgis, Meade County, South Dakota

WHEREAS SEDC has made a request to the City of Sturgis to convey said property to SEDC pursuant to SDCL 9-27-36; and

WHEREAS the request from SEDC to the City of Sturgis is to provide support for economic development derived from the construction for a 33 bed assisted living facility proposed by Sturgis Healthcare, LLC (hereafter referred to as “developer”) for construction on the above described property; and

WHEREAS the planned assisted living facility as presented will have a revised projected construction cost of approximately $2,800,000.00; and

WHEREAS the planned assisted living facility as presented will, within 6 months of its opening, create new employment of 10 to 15 FTE or equivalent positions; and

WHEREAS the planned assisted living facility as presented will start construction by September 28, 2012; and

WHEREAS SEDC has proposed to provide a guarantee to the City for the direct contribution by the City to SEDC for this facility, agreed to have a value of $100,000.00, as part of all the public support for the proposed assisted living facility; and

WHEREAS the guarantee proposed by SEDC for this assisted living project will be in the form of a guarantee to reimburse the City from funds currently held by SEDC for economic development purposes; and

WHEREAS the guarantee proposed by SEDC will require that the subject property not be transferred to the developer until SEDC has received proof that construction and permanent financing are in place for the developer, and a copy of that information has been provided to the City; and

WHEREAS the guarantee proposed by SEDC for the assisted living facility as presented will be provided in writing to the City at the time of closing and transfer of the subject property from SEDC to the Developer; and

WHEREAS the guarantee of SEDC that the project will continue to be operated under substantially similar terms as described for at least 5 years after completion of construction; and

WHEREAS SEDC has proposed the guarantee to help ensure that the stated requirements of size, construction cost and new employment are met by this economic development project for a minimum of 5 years; and

WHEREAS SEDC has proposed the guarantee remain in existence only for the first 5 full years of operation of the planned assisted living project / facility; and

WHEREAS SEDC has proposed that for each full year of qualifying operation of the assisted living facility the guarantee to the City should be reduced by one-fifth (1/5); and

WHEREAS THE Greater Sturgis Lifecare Foundation, SEDC and Meade County are also providing financial support for the proposed construction of this assisted living facility; and

WHEREAS The City has agreed to transfer the Aspen Grove building permit to developer upon receipt from SEDC of written consent to the transfer by Aspen Grove ALF, LLC; and

WHEREAS pursuant to the above referred to statute the City has the power to convey real property to a non-profit local economic development corporation for authorized economic development purposes.

NOW THEREFORE as set forth herein it is hereby resolved that the Mayor of the City of Sturgis, Mark Carstensen, is hereby authorized to sign the guarantee document and execute a deed to SEDC consistent with the terms of this Resolution to conveying from the City of Sturgis to the Sturgis Economic Development Corporation the real property above described for the purposes set forth above and shall be authorized to convey by deed the above described property as provided for in this resolution.

Dated this 4th day of June, 2012.

Published: June 13, 2012

Effective: July 4, 2012

Potts seconded the motion for the adoption of the foregoing resolution with all members voting yes and the resolution declared passed and adopted.

Mike Bachand stated his concerns about licensing golf carts. Roger Scheiman was concerned about the $35 fee.

Motion by DesJarlais, second by Johnston with all members voting yes to approve first reading of Ordinance 2012-11, Title 16 – Traffic, Chapter 16.10 Golf Carts. The Ordinance committee will revisit this ordinance before second reading.

Roger Scheiman, Mike Bachand, Robert Kinney, April Stoner and Erwin Stoner had several questions and concerns about Ordinance 2012-12. All concerns will be looked at prior to second reading.

Motion by Hersrud, second by McVay with all members voting yes to approve first reading of Ordinance 2012-12-Title 18 – Zoning, Article IV – District Regulations –section 18.05.18 – Temporary Camping at a Residence within the City.

The following bids were received for the Phase II water project: Schedule A: Weston Engineering, Inc-$399,582.50 (this bid did not qualify, as they did not have the proper bid bond); Water System Drilling, Inc. - $458,397.50 (This was negotiated down due to an error in the bid to $390,897.50). Schedule B: RCS Construction-$1,212,171.58; Heavy Constructors-$1,276,080.80; Dean Kurtz Construction-$1,360.510.00. Schedule C: TTG Enterprises, Inc. - $79,400.00; H-C Galloways-$187,744.00; Mainline Contracting, Inc.-$239,100.00. Schedule D – Base Bid-RCS Construction-$401,881.06; Heavy Constructors-$496,356.30; Mainline Contracting -$399,780.50; Site Work Specialists, Inc.-$351,328.60. Alternate 1: RCS Construction-$2,472,889.43; Heavy Constructors: $273,181.50; Mainline Contracting, Inc. - $221,991.75; Site Work Specialists, Inc - $198,446.60. Alternate 2: RCS Construction-$157,007.21; Heavy Constructors: $203,566.05; Mainline Contracting, Inc. - $142,305.50; Site Work Specialists, Inc - $123,760.25. Alternate 3: RCS Construction-$390,209.20; Heavy Constructors: $470,521.97; Mainline Contracting, Inc. - $377,925.50; Site Work Specialists, Inc - $361,345.10. Alternate 4: RCS Construction-$324,377.90; Heavy Constructors: $384,068.25; Mainline Contracting, Inc. - $311,007.25; Site Work Specialists, Inc - $266,351.00.

Motion by Johnston, second by Hersrud with Johnston, Hersrud, Carstensen, McVay, and DesJarlais voting yes and Potts abstaining to award low bid for the Sturgis Water System Improvements Project-Phase 2, Schedule A – Water System Drilling, $3,615,000.00; Schedule B- R.C.S Construction - $1,212,171.58; Schedule C – TTG Enterprises, Inc. - $79,400.00; Schedule D – Base Bid - Site Works Specialists, Inc.-$351,328.60; Alternative 2 – Site Works Specialists Inc. - $123,760.25.

DesJarlais introduced the following written resolution and moved its adoption and also authorized the City Manager to sign any other additional documents for the Lazelle Street Project. Hersrud seconded the motion for the adoption of the foregoing resolution with DesJarlais, Hersrud, Carstensen, Johnston and McVay voting yes and Potts abstaining and the resolution as declared passed and adopted.

RESOLUTION NO. 2012-20

RESOLUTION GIVING APPROVAL TO CERTAIN DRINKING WATER FACILITIES IMPROVEMENTS; GIVING APPROVAL TO THE ISSUANCE AND SALE OF A REVENUE BOND TO FINANCE, DIRECTLY OR INDIRECTLY, THE IMPROVEMENTS TO THE FACILITIES; APPROVING THE FORM OF THE LOAN AGREEMENT AND THE REVENUE BOND AND PLEDGING CERTAIN REVENUES AND COLLATERAL TO SECURE THE PAYMENT OF THE REVENUE BOND; AND CREATING SPECIAL FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF FUNDS FOR OPERATION OF THE SYSTEM AND RETIREMENT OF THE REVENUE BOND.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STURGIS, SOUTH DAKOTA, AS FOLLOWS:

SECTION 1. AUTHORIZATION AND FINDINGS.

1.01. One of the purposes of South Dakota Codified Laws, Chapter 9-40 (the “Act”) as found and determined by the Legislature is to provide for financing the acquisition, maintenance, operation, extension or improvement of any system or part of any system of waterworks for the purpose of providing water and water supply for domestic, municipal, and industrial purposes; or any system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; or any system for the control of floods and drainage; or any combination thereof, together with extensions, additions, and necessary appurtenances.

1.02. A municipality is authorized to issue revenue bonds to fund improvements, extensions and additions to its drinking water system by SDCL 9-40-6 and is authorized to pledge the net income or revenues from the system to secure such bonds

1.03. The City of Sturgis, South Dakota (the Issuer) currently operates a water distribution system (the System) to supply municipal, industrial and domestic water to its inhabitants and has determined that improvements to the drinking water facilities are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its drinking water system.

1.04. The Issuer has determined it necessary to construct improvements to the System, consisting of improvements to the existing water purification plant (the “Improvements”), and to issue its revenue bonds under SDCL, Chapters 9-40 and 6-8B, in order to finance a portion of the cost of the Improvements. The Issuer is authorized to issue its obligations in order to defray the cost thereof, and to make all pledges, covenants and agreements authorized by law for the protection of the holders of the obligations, including, without limitation, those covenants set forth in SDCL, Sections 9-40-16 and 9-40-17. The obligations are payable from the Net Revenues of the Improvements, as defined in Section 2.04 hereof.

1.05. The Utility Board of the City has, by resolution, covenanted and agreed to adopt and maintain special rates or surcharges for the Improvements, in order to produce revenues to be pledged, segregated and used for the operation and maintenance of the Improvements and payment of the revenue bonds.

1.06. The execution and delivery of the Revenue Obligation Loan Agreement between South Dakota Conservancy District (the District) and the Issuer (the Loan Agreement), the form of which has been submitted to this Council, and the pledging of the loan payments thereunder for the security of the State Revolving Fund Revenue Bond of the Issuer (the “SRF Bond”) and the interest thereon shall be, and they are, in all respects, hereby authorized, approved and confirmed, and the Mayor and Finance Officer are hereby authorized and directed to execute and deliver the Loan Agreement in the form and content submitted to this Council, with such changes that are not substantive as the Attorney for the Issuer deems appropriate and approves, for and on behalf of the Issuer. The Mayor and Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the Issuer as set forth in or required by the Loan Agreement.

1.07. The issuance of a revenue bond of the Issuer, of not more than $2,200,000 principal amount (the Bond) is hereby authorized, approved and confirmed, and the Mayor, Finance Officer and other appropriate officials of the Issuer shall be authorized to execute and deliver the Bond to the District, for and on behalf of the Issuer, upon receipt of the purchase price and to deposit the proceeds thereof in the manner provided for in the Loan Agreement. The Mayor and Finance Officer are hereby authorized to approve the final terms of the Bond, and their execution and delivery of the Bond shall evidence such approval. The terms of the Bond, as so executed and delivered, shall be deemed to be incorporated herein by reference.

SECTION 2. FUNDS AND ACCOUNTS. For the purpose of application and proper allocation of the income of the Improvements and to secure the payment of principal of and interest on the Bond, the following funds and accounts shall be used solely for the following respective purposes until payment in full of the principal of and interest on the Bond:

2.01. Pledge of Revenues of the Improvements. The Net Revenues of the Improvements shall be pledged and appropriated to the payment of the Bond as set forth in the resolution adopted by the Utility Board.

2.02. Water Utility Fund; Bond Proceeds and Revenues Pledged and Appropriated. A fund designated as the Water Utility Fund (the Fund) has been established and shall be maintained as a separate and special bookkeeping account on the official books of the Issuer until the Bond and any additional bonds (together referred to as the Bonds) payable from the Net Revenues of the Improvements, as provided in Sections 3.02 through 3.04 hereof and interest, Administrative Expense Surcharge and redemption premiums due thereon have been fully paid, or the Issuer’s obligation with reference to the Bond has been discharged as provided in this Resolution. All proceeds of the Bond and all other funds hereafter received or appropriated for purposes of the Improvements are appropriated to the Fund. All gross revenues derived from the operation of the Improvements are irrevocably pledged and appropriated and shall be credited to the Fund as received. As described in Section 3.04 hereof, the Utility Board of the Issuer shall impose a separate surcharge for the availability, benefit and use of the Improvements as part of the Utility and shall aggregate the gross revenues derived from such surcharge and the Improvements, together with the expenses of operation and maintenance of the Improvements and the City shall account for them as provided in this Resolution; except as expressly stated in this Resolution, the pledges, appropriations, covenants and agreements of the Issuer and the Accounts established within the Fund by the Resolution apply only to the Improvements, its operations, revenues and expenses. The Issuer finds that acquisition and construction of the Improvements will benefit all present and future users of the Utility, therefore the surcharge described in Section 3.04 shall be imposed on all current and future users of the Utility. Such gross revenues shall include all gross income and receipts from rates and charges imposed for the availability, benefit and use of the Improvements as now constituted and of all replacements and improvements thereof and additions thereto, and from penalties and interest thereon, and from any sales of property acquired for the Improvements and all income received from the investment of such gross revenues; but not any taxes levied or amounts borrowed or received as grants for construction of any part of the Improvements. The Fund shall be subdivided into separate accounts as designated and described in Sections 2.03 to 2.07, to segregate income and expenses received, paid and accrued for the respective purposes described in those sections. The gross revenues received in the Fund shall be apportioned monthly or as soon as possible after the first day of each month, commencing the first calendar month following the delivery of the Bond, which apportionment is hereinafter referred to as the “monthly apportionment.”

2.03. Construction Account. The Construction Account shall be used only to pay as incurred and allowed costs which under generally accepted accounting principles are capital costs of the Improvements, and of such future reconstructions, improvements, betterments or extensions of the Improvements as may be authorized in accordance with law; including but not limited to payments due for work and materials performed and delivered under construction contracts, architectural, engineering, inspection, supervision, fiscal and legal expenses, the cost of lands and easements, interest accruing on the Bond during the first year following the date of its delivery, if and to the extent that the Revenue Bond Account is not sufficient for payment of such interest, reimbursement of any advances made from other Issuer funds, and all other expenses incurred in connection with the construction and financing of any such undertaking. To the Construction Account shall be credited as received all proceeds of the Bond, all other funds appropriated by the Issuer for the Improvements, and all income received from the investment of the Construction Account.

2.04. Operating Account. On each monthly apportionment there shall first be set aside and credited to the Operating Account, as a first charge on the gross revenues, such amount as may be required over and above the balance then held in the Operating Account to pay the reasonable and necessary operating expenses of the Improvements which are then due and payable, or are to be paid prior to the next monthly apportionment. The term “operating expenses” shall mean the current expenses, paid or accrued, of operation, maintenance and current repair of the Improvements, calculated in accordance with generally accepted accounting principles, and shall include, without limitation, administrative expenses of the Issuer relating solely to the Improvements, premiums for insurance on the properties thereof, labor and the cost of materials and supplies used for current operation and for maintenance, and charges for the accumulation of appropriate reserves for current expenses which are not recurrent monthly but may reasonably be expected to be incurred in accordance with generally accepted accounting principles. Such operating expenses shall not include any allowance for depreciation or renewals or replacements of capital assets of the Improvements and shall not include any portion of the salaries or wages paid to any officer or employee of the Issuer, except such portion as shall represent reasonable compensation for the performance of duties necessary to the operation of the Improvements, nor any amount properly payable from any other account of the Fund. The Net Revenues of the Improvements, as referred to in this Resolution, are hereby defined to include the entire amount of such gross revenues remaining after each such monthly apportionment, after crediting to the Operating Account the amount required hereby, including sums required to maintain an operating reserve equal to one month’s estimated operating expenses.

2.05. Revenue Bond Account. Upon each monthly apportionment there shall be set aside and credited to the Revenue Bond Account, out of the Net Revenues of the Improvements, an amount equal to one-third of the total sum of the principal and interest to become due on the Bond on the next succeeding Repayment Date (as defined in the Bond). Moneys from time to time held in the Revenue Bond Account shall be disbursed only to meet payments of principal and interest on the Bond as such payments become due; provided, that on any date when the outstanding Bond is due or prepayable by its terms, if the amount then on hand in the Revenue Bond Account is sufficient, with other moneys available for the purpose, to pay the Bond and the interest accrued thereon in full, it may be used for that purpose. If any payment of principal or interest becomes due when moneys in the Revenue Bond Account are temporarily insufficient, such payment shall be advanced out of any Net Revenues theretofore segregated and then on hand in the Replacement and Depreciation Account or the Surplus Account. In the event that sufficient moneys are not available from the aforementioned sources the Issuer, to the extent it may, at the time legally do so, may, but shall not be required to, temporarily advance moneys to the Revenue Bond Account from other revenues of the Improvements or from other funds of the Issuer on hand and legally available for the purpose, but any such advance shall be repaid from Net Revenues of the Improvements within 24 months.

2.06. Replacement and Depreciation Account. There shall next be set aside and credited, upon each monthly apportionment, to the Replacement and Depreciation Account such portion of the Net Revenues, in excess of the current requirements of the Revenue Bond Account (which portion of the Net Revenues is referred to herein as Surplus Net Revenues), as the City Council shall determine to be required for the accumulation of a reasonable reserve for renewal of worn out, obsolete or damaged properties and equipment of the Improvements. Moneys in this account shall be used only for the purposes above stated or, if so directed by the City Council, to redeem Bonds which are prepayable according to their terms, to pay principal or interest when due thereon as required in Section 2.05 hereof, or to pay the cost of improvements to the Improvements; provided, that in the event that the Issuer shall hereafter issue bonds for the purpose of financing the construction and installation of additional improvements or additions to the Improvements, but which additional bonds cannot, upon the terms and conditions provided in Section 3, be made payable from the Revenue Bond Account, Surplus Net Revenues from time to time received may be segregated and paid into one or more separate and additional accounts for the payment of such bonds and interest thereon, in advance of payments required to be made into the Replacement and Depreciation Account.

2.07. Surplus Account. Any amount of the Surplus Net Revenues from time to time remaining after the above required applications thereof shall be credited to the Surplus Account, and the moneys from time to time in that account, when not required to restore a current deficiency in the Revenue Bond Account as provided in Section 2.05 hereof, may be used for any of the following purposes and not otherwise:

(a) to redeem and prepay principal of the Bond when and as such principal becomes prepayable according to its terms;

(b) if the balances in the Revenue Bond Account and the Replacement and Depreciation Account are sufficient to meet all payments required or reasonably anticipated to be made therefrom prior to the end of the current fiscal year, then;

(i) to pay for repairs or for the construction and installation of improvements or additions to the Improvements;

(ii) to be held as a reserve for redemption and prepayment of principal of the Bond which is not then but will later be prepayable according to its terms;

(iii) with the written consent of the District, transferred to one or more specified funds of the Issuer.

No moneys shall at any time be transferred from the Surplus Account or any other account of the Fund to any other fund of the Issuer, nor shall such moneys at any time be invested in warrants, special improvement bonds or other obligations payable from other funds, except as provided in this section.

2.08. Deposit and Investment of Funds. The Finance Officer shall cause all moneys pertaining to the Fund to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of Chapter 4-6A, South Dakota Codified Laws, in a deposit account or accounts, which shall be maintained so long as any of the Bonds and the interest thereon shall remain unpaid. The deposit and investment of all moneys pertaining to the Fund must, on the books and records of the Issuer, be maintained separate and apart from all other funds of the Issuer. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No moneys shall at any time be withdrawn from such deposit accounts except for the purposes of the Fund as authorized in this Resolution; except that moneys from time to time on hand in the Fund may at any time, in the discretion of the City Council, be invested in securities permitted by the provisions of South Dakota Codified Laws, Section 4-5-6; provided, that the Replacement and Depreciation Account may be invested in such securities maturing not later than ten years from the date of the investment. Income received from the deposit or investment of moneys shall be credited to the account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys in that account. The investment of the moneys on deposit in the Revenue Bond Account is further restricted by the provisions of Section 6.01 hereof. Deposits and securities described in this Section shall constitute “Qualified Investments.”

2.09. Additional Revenues or Collateral. The Issuer reserves the right at any time to pledge additional moneys, revenues or collateral as security for the Bond and any additional bonds. Such pledge shall not be effective unless and until the Issuer receives, and provides to the bond registrar an opinion of, nationally recognized bond counsel stating that such pledge will not adversely affect the validity or tax exemption of the Bond and any additional bonds then outstanding.

2.10. Appropriation of Other Moneys. The Issuer reserves the right in any year while the Bond is outstanding to appropriate from moneys on hand and legally available for such purpose in its cash reserve accounts such amounts as this Council may specify and direct that such amounts be used to pay principal and interest on the Bond. Any such appropriation shall reduce the obligation of the Issuer to impose rates and charges under Section 3.04 hereof.

2.11. Statutory Mortgage. The Issuer covenants and agrees that pursuant to SDCL 9-40-28 and SDCL 9-40-29, the lawful holders of the Bond shall have a statutory mortgage lien upon the Improvements and the extensions, additions and improvements thereto acquired pursuant to the Act, until the payment in full of the principal, interest, and Administrative Expense Surcharge on the Bond, and the Issuer agrees not sell or otherwise dispose of the Utility, the Improvements, or any substantial part thereof, except as provided in the Loan Agreement and shall not establish, authorize or grant a franchise for the operation of any other utility supplying like products or services in competition therewith, or permit any person, firm or corporation to compete with it in the distribution of water for municipal, industrial, and domestic purposes within the Issuer.

SECTION 3. PRIORITIES,ADDITIONAL BONDS AND RATES AND CHARGES.

3.01. Priority of Bond Payments. If at any time the Net Revenues of the Improvements are insufficient to pay principal and interest then due on the Bond, any and all moneys then on hand shall be first used to pay the interest accrued on the Bond, and the balance shall be applied toward payment of the maturing principal of the Bond in order of their maturities, the earliest maturing principal to be paid first, and pro rata in payment of principal maturing on the same date.

3.02. Additional Bonds. The Issuer reserves the right to issue additional bonds, payable from the Revenue Bond Account of the Fund, on a parity as to both principal and interest with the Bond in the manner and upon satisfaction of the conditions and subject to the limitations set forth in the Loan Agreement.

3.03. Compliance with Loan Agreement. The Issuer will comply, so long as the Bond is outstanding, and unpaid, with all of the provisions of the Loan Agreement, to the same extent as though such provisions were set forth in this Resolution.

3.04. Rates and Charges. The Utility Board of the Issuer has covenanted, by resolution, that it will maintain, revise, charge and collect rates and other charges for all service furnished and made available by the Improvements, according to schedules such that the gross revenues derived therefrom will be sufficient, when combined with other available funds, to pay when due all expenses of the operation and maintenance of the Improvements, and all principal of and interest on the Bond, to provide for the establishment and maintenance of adequate reserves, to provide an allowance adequate for recurring renewals and replacements of the Improvements, to satisfy the rate covenant provided in Section 6.4 of the Loan Agreement and to fulfill the terms of all other agreements with holders of the Issuer’s bonds. The rates and charges with respect to the Improvements shall be in the form of a separately stated surcharge on the municipal utilities rate schedule; in calculating the surcharge the Utility Board shall allocate to the Improvements its share of the expenses of operation and maintenance and allowances for renewal and replacement as well as the requirements to pay principal of and interest on the Bond and to repay the Utility or any other funds of the Issuer for moneys advanced in accordance with Section 2.05 hereof.

SECTION 4. AMENDMENTS.

4.01. Amendments Without Bondholder Consent. The Issuer reserves the right to amend this Resolution from time to time and at any time, for the purpose of curing any ambiguity or of curing, correcting or supplementing any defective provision contained herein, or of making such provisions with regard to matters or questions arising hereunder as this Council may deem necessary or desirable and not inconsistent with this Resolution, and which shall not adversely affect the interest of the holder of the Bond, or for the purpose of adding to the covenants and agreements herein contained, or to the gross revenues herein pledged, other covenants and agreements thereafter to be observed and additional gross revenues thereafter appropriated to the Fund, for the purpose of surrendering any right or power herein reserved to or conferred upon the Issuer, or for the purpose of authorizing the issuance of additional bonds in the manner and subject to the terms and conditions prescribed in Section 3. Any such amendment may be adopted by resolution, without the consent of the holder of the Bond.

4.02. Amendments With Bondholder Consent. With the consent of the holder of the Bond as provided in Section 4.03, the Issuer may from time to time and at any time amend this Resolution by adding any provisions hereto or changing in any manner or eliminating any of the provisions hereof, or of any amending resolution, except that no amendment shall be adopted at any time without the consent of the holder of the Bond which are then outstanding, if it would extend the maturities of any Bond, would reduce the rate or extend the time of payment of interest thereon, would reduce the amount or extend the time of payment of the principal or redemption premium thereof, would give to any Bond any privileges over any other Bond, would reduce the sources of gross revenues appropriated to the Fund, would authorize the creation of a pledge of gross revenues prior to or on a parity with the Bond (except as is authorized by Section 3), or would reduce the percentage in principal amount of the Bond required to authorize or consent to any such amendment.

4.03. Notice and Consent. Any amendment adopted pursuant to Section 4.02 shall be made by resolution, mailed to each holder of a Bond affected thereby, and shall become effective only upon the filing of written consents with the Finance Officer, signed by the holders of not less than two-thirds in principal amount of the Bonds which are then outstanding or, in the case of an amendment not equally affecting all outstanding Bonds, by the holders of not less than two-thirds in principal amount of the Bond adversely affected by such amendment. Any written consent to an amendment may be embodied in and evidenced by one or any number of concurrent written instruments of substantially similar tenor signed by bondholders in person or by agent duly appointed in writing, and shall become effective when delivered to the Finance Officer. Any consent by the holder of any Bond shall bind the holder and every future holder of the same Bond with respect to any amendment adopted by the Issuer pursuant to such consent, provided that any bondholder may revoke his consent with reference to any Bond by written notice received by the Finance Officer before the amendment has become effective. In the event that unrevoked consents of the holders of the required amount of Bonds have not been received by the Finance Officer within one year after the mailing of any amendment, the amendment and all consents theretofore received shall be of no further force and effect.

4.04. Proof. Proof of the execution of any consent, or of a writing appointing any agent to execute the same, or of the ownership by any person of a Bond, shall be sufficient for any purpose of this Resolution and shall be conclusive in favor of the Issuer if made in the manner provided in this section. The fact and date of the execution by any person of any such consent or appointment may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgements that the person signing such writing acknowledged to him the execution thereof. The amount of Bonds held by any person by or for whom consent is given, and the distinguishing numbers of such Bond, and the date of holding the same, shall be proved by the bond register. The fact and date of execution of any such consent may also be proved in any other manner which this Council may deem sufficient; but this Council may nevertheless, in its discretion, require further proof in cases where it deems further proof desirable.

SECTION 5. PAYMENT OF BOND.

5.01. General. When the liability of the Issuer on the Bond has been discharged as provided in this section, all pledges, covenants and other rights granted by this Resolution to the holder of the Bond shall cease.

5.02. Payment. The Issuer may discharge its liability with reference to any Bond which is due on any date by depositing with the holder or holders thereof, or the paying agent or agents, if any, for such Bond on or before that date a sum sufficient for the payment thereof in full; or if any Bond shall not be paid when due, the Issuer may nevertheless discharge its liability with reference thereto by depositing with the holder or holders thereof, or the paying agent or agents, if any, a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit.

5.03. Prepayable Bonds. The Issuer may also discharge its liability with reference to any prepayable Bond which is called for redemption on any date in accordance with its terms, by depositing with the holder or holders thereof, or the paying agent or agents, if any, on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due thereon, provided that notice of such redemption has been duly given as provided in the resolution authorizing the Bond.

SECTION 6. TAX MATTERS.

6.01. Tax Matters.

(a) Covenant. The Issuer covenants and agrees with the holders from time to time of the Bond that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bond to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and applicable Treasury Regulations (the Regulations).

(b) Use of Improvements. The Issuer covenants and agrees that it will not, nor will it permit any of its officers, employees or agents, to enter into any lease, use or other agreement with any person other than a state or political subdivision or agency or instrumentality of a state, relating to the use of the Improvements or the security for the Bond which might cause the Bond to be considered a “private activity bond” within the meaning of Section 141 of the Code.

(c) Investment of Moneys on Deposit in Revenue Bond Account. The Finance Officer shall ascertain monthly the amount on deposit in the Revenue Bond Account. If the amount on deposit therein ever exceeds by more than $100,000 the aggregate amount of principal and interest due and payable from the Revenue Bond Account within 13 months thereafter, such excess shall either (1) not be invested except at a yield equal to or less than the yield borne by the Bond, or (2) be used to prepay and redeem principal installments of the Bond.

(d) Certification. The Mayor and Finance Officer, being the officers of the Issuer charged with the responsibility for issuing the obligations pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions of Section 1.148-2(b) of the Regulations. Such certification shall state that on the basis of the facts, estimates and circumstances in existence on the date of issue and delivery of the Bond as therein set forth, it is not expected that the proceeds of the Bond will be used in such a manner that would cause the Bond to be an arbitrage bond, and the certification shall further state that to the best of the knowledge and belief of the officers there are no other facts, estimates or circumstances that would materially change such expectation.

6.02. Tax-Exempt Status of the Bond and Rebate. The Issuer shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bond, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bond, and (3) the rebate of excess investment earnings to the United States.

6.03. Repeal. All provisions of all other ordinances, resolutions and other actions and proceedings of the Issuer and of this Council which are in any way inconsistent with the terms and provisions of this Resolution are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Resolution.

Dated this 4th day of July, 2012.

Adopted: June 4, 2012

Published: June 13, 2012

Effective: July 4, 2012

EXHIBIT A

Description of the Project

The Project consists of the improvements to the Issuer’s existing water distribution system as outlined in the Issuer’s Facilities Plan dated January 1, 2011.

Johnston introduced the following written resolution and moved its adoption:

RESOLUTION 2012-21

RESOLUTION ESTABLISHING THE FAIR MARKET VALUE OF ON-SALE FULL

SERVICE RESTAURANT LICENSES

WHEREAS, the City of Sturgis has adopted an Ordinances that create a comprehensive regulatory scheme for the sale and consumption of alcoholic beverages, and

WHEREAS, the South Dakota Legislature has enacted SDCL 35-4-111 which authorized the issuance of additional on-sale licenses to full service restaurants subject to certain conditions; and

WHEREAS, pursuant to the authority established by SDCL 35-4-111 the City of Sturgis City adopted Ordinance No. 2012-8 to implement the provisions of the on-sale full service restaurants license; and

WHEREAS, SDCL 35-4-117 requires any municipality intending to authorize the issuance of such licenses to establish the fair market value of the on-sale full service restaurant license by using the documented value of the arms length transactions between January1,2003 and January 1, 2008: and

WHEREAS, a review of the records of such sales occurring during that period have been made available to the Sturgis City Finance Office shows the most recent such arms length transfer took place in March of 2007 and was subsequently approved by the Sturgis City Council; and

WHEREAS, the City of Sturgis has received confidential documentation indicating the value attributed to the sale of the on-sale license by the parties involved in that transaction, and

WHEREAS, the City of Sturgis is required by state law to use that transaction to establish the minimum fair market value for an on-sale full service restaurant license to be issued by the City of Sturgis.

NOW THEREFORE, BE IT RESOLVED by the City of Sturgis that the fee for a full service on-sale restaurant license is hereby established, pursuant to SDCL 35-4-117, at $600,000.

Dated this 4th day of June, 2012.

Published: June 13, 2012

Effective: July 4, 2012

Potts seconded the motion for the adoption of the foregoing resolution with all members voting yes and the resolution as declared passed and adopted.

Any other business:

None

Motion by Johnston, second by DesJarlais and carried with all members present voting yes to go into executive session for legal at 8:24 pm.

Motion by Brengle, second by Potts and carried with all members present voting yes to return to regular session at 8:44 pm.

Mayor Carstensen adjourned the meeting at 8:44 pm.

ATTEST: APPROVED

Fay Bueno, Finance Officer

Mark Carstensen, Mayor

Published once at the total approximate cost of $547.19.

Published Wed., June 13, 2012

Meade County Times Tribune

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