07/26/2021 A Voice From the Gallery

“Although there is no progress without change, not all change is progress”

John Wooden

Mayor Haeder called the July 26, 2021, special city council meeting to order at 6:00 P.M. with the recitation of the Pledge of Allegiance.  Council members present were Councilman David Larsen, Councilwoman Darla Reppe, Councilwoman Linda Talbott, Councilwoman  Cyndi Peeples, Councilman Brian Johnson, and Councilman Curtis Keiser.  Alcester City Attorney Sam Nelson was absent.

Mayor Haeder called for approval of the special meeting agenda.  The agenda was approved as presented.

Agenda Item #4 of the special meeting agenda was Public Input.  I asked for the  amount of sales collected in 2020 which is relevant to the ability to pay the amount of the bond in the 2021-10 Resolution.  After a long pause (0:02:12.10), Finance Officer Jurrens was able to pull up the amounts for which I asked, $206,000.00 in first and second penny sales tax for 2020.  I then asked for the source of the funds which would used to pay for the bonds in Resolution 2021-10 to confirm intent and understanding that the funds must come from city sales tax.  Finance Officer Jurrens responded with the answer the bonds were to be funded using the first and second penny of city sales tax.

Second response to the Public Input was Bob Anderson (0:03:31.60), who wanted to endorse Austin Schuller as Chief of Police for the city of Alcester.  Mr. Anderson cited many the reasons why Acting Police Chief Austin Schuller would be the best choice for our community’s Chief of Police.

Agenda Item #5 of the special meeting agenda was consideration, authorization and approval of issuance of Resolution 2021-10 a Parameters Resolution Bond using Sale Tax Revenues in the payment of the bond.  While the council members had copies of the Resolution and accompanying documents, an update copy of the Resolution and accompanying documents was handed out prior to the start of the Special Council Meeting.  Mr. Mark DeRaney, representative of the independent municipal advisor AMKO Advisors, LLC has met with the City of Alcester advising them in matters relating to the funding of the Community Center Building project.  Mr. DeRaney was present to answer questions concerning the Agreement Documents/Resolution 2021-10 to the City Council members and members of the gallery.  Mr. DeRaney spoke to the $640K maximum amount of the bonds, the “Call Date” (payoff of Bond cannot happen before this date), 3.5% interest, the refunding amount due on a present $55K on the present golf course debt, term of bond 20 years and the payment schedule of semi-annual interest payments with annual principle payment.

Once Mr. DeRaney finished speaking, Mayor Haeder put the Resolution before the Council.  Remember now City Attorney Sam Nelson was NOT present and the most up-to-date version of the Resolution Document was placed before the council immediately prior to the presentation and vote giving the council very little time to read and comprehend what it was they were approving.

Informational Links to explanations:

Note  this Link information gives background information on municipal bonds (muni).  This information is generally aimed at the Bond investor rather than the Municipal Bond Issuer (the city), the Solicitor (the issuer’s regular lawyer), the Bond Counsel (legal firm specialising in Bonds)  and the Financial Adviser (entity structuring the bond issue) however it does explain the steps in the process for both sides of the Bond issue.  It also covers certain issues to be aware of in the Resolution language and process.

https://platform.parametricportfolio.com/FixedIncomeLadder?gclid=EAIaIQobChMIwLPrlMGD8gIVEwutBh2J3gfkEAMYASAAEgKT5PD_BwE

https://www.fool.com/investiting/how-to-invest-/bonds/municipal-bonds/

https://www.investopedia.com/investing/basics-of-municipal-bonds/#call-risk

https://www.jhinvestments.com/viewpoints/investing-basics/bond-duration-and-why-it-matters

Mayor Haeder called the for the motion to approve.  (0:28:01.20)  Roll call vote was taken, Councilwoman Reppe-Aye, Councilman Johnson-Aye, Councilwoman Peeples- Aye, Councilwoman Talbott-Aye, Councilman Keiser-Nay and Councilman Larsen-Aye.  Resolution passed with Four (4) Ayes and One (1) Nay.

Agenda Item #6 – Executive Session 1-25-2.1 Personnel  Councilwoman Linda Talbott felt the need for an Executive Session dealing with Personnel (0:29:24.37)  The Council voted to go into Executive Session for the purposes of discussing Personnel.  I would like to insert a comment on the appropriateness of continuing closed sessions for personnel discussion meaning action to be taken on one specific employee not a general discussion.  SDCL 1-25-2.1  SDCL 1-25-2.1-Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractor…”

Executive Session was entered into at 6:29 P.M.

Executives session was declared back into Open meeting status at 6:56 P.M. 

No action was taken in ‘open meeting’ as a result of this Executive Session.

Agenda Item #7 Adjourn the 07/26/2021 Special Meeting of the Alcester City Council.

Council was adjourned at 6:57 P.M.

“Minor details–like pennies–add up.  A good banker isn’t careless with ‘pennies’ a good lender isn’t sloppy about details.

John Wooden

Just as a good mayor isn’t carless about form, procedure and full information and a good council doesn’t tolerate sloppiness by the failure of the Mayor and/or Finance Officer disclose FULL AND COMPLETE Agenda information prior to votes, failure of proper procedure and failure about necessary details.

Vickie Larsen analogy

Contact City Council

Mayor Dan Haeder                       605-934-2287      605-770-7929

Councilman David Larsen            605-934-2434

Councilwoman Darla Reppe         605-934-2602

Councilwoman Linda Talbot         605-254-3074

Councilwoman Cyndi Peeples  

Councilman Brian Johnson           605-214-0282

Councilman Curtis Keiser             605-214-7604

Patricia Jurrens                             605-934-2517