MINUTES OF REGULAR MEETING

The City Council of the City of Volga, SD, met for a regular meeting, Monday, January 7, 2013 at 5:30 PM in the conference room of City Hall; Mayor Mary Bjerke presiding.  Members present:   Dave Rankin, Ken Fideler, Marty Strasburg, Kelly Vander Wal, Rod Hageman, and Roger Anderson.  Also present:  City Attorney Steve Britzman, City Administrator Steve Meyer, Finance Officer Nicole Rawden, Electrical Superintendent Brent Brown, Fire Chief Clint Kooima, Electrical Lineman Brady Severson, Revenue Billing Specialist Melanie Hageman, Water and Wastewater Operator Jon Hauge, Kathi Granum with the Volga Tribune, Tom Pierce, Craig Howell, and Sheldon Cotton representing Brookings County Regional Railroad Authority, Tom Kersting and Carl Odde representing SDSP, LLC, Don Endres and Rick Eggebrecht representing Novita Aurora, LLC, Steve Moses and Mike Malone representing Heartland Consumer Power District, and Blaine Hoff, Deputy Umberger, and Sioux Valley Oral Interp students Brooke Nelson, Maquenzie Anderson, Kaylee Vander Wal, Brennan Bassett, Tim Ganahl, and Levi Ford.

Following the Pledge of Allegiance, Strasburg moved to approve the amended agenda as follows: addition of Resolution 2013-05 Railroad Authority Novita Aurora, LLC under public works and authorization to bid SCBAs under Police and Fire.  Vander Wal seconded the motion.  All in favor; motion carried.
 
Vander Wal moved to approve the minutes of the December 3, 2012 regular meeting. Hageman seconded the motion.  All in favor; motion carried.

Committee Reports:

Anderson made a motion to approve RESOLUTION 2013-01 A Resolution Approving the Brookings County Regional Railroad Authority to Levy Taxes in Relation to Rail Project in Brookings County, South Dakota.  WHEREAS, the Brookings County Regional Railroad Authority has authorized applying for a loan, from the South Dakota Railroad Board, in the amount of  Nine Hundred and Sixty Four Thousand and Seventy Dollars ($964,070.00) to fund the construction of 3,190 feet of track to facilitate rail car storage and loading for an agricultural processing facility in Brookings County, South Dakota owned by South Dakota Soybean Processors, LLC.  WHEREAS, the South Dakota State Railroad Board will require a resolution from the Volga City Council, acknowledging the authority of the Brookings County Regional Railroad Authority to certify any tax levy as allowed by SDCL 49-17A-21 to be used in the event of default to pay such annual payments as may be required to service the project debt arising from the construction of the siding project;  NOW, THEREFORE, BE IT RESOLVED, that the City of Volga, South Dakota hereby grants approval for the Brookings County Regional Railroad Authority to certify the amount of tax to be levied as allowed by SDCL 49-17A-21 for repayment of said loan, plus interest, at the rate specified above, in the event of default by Brookings County Regional Railroad Authority and South Dakota Soybean Processors, LLC.  Passed, approved and adopted this 7th day of January, 2013.  CITY OF VOLGA, SOUTH DAKOTA s/Mary A. Bjerke, Mayor, City of Volga ATTEST: s/Nicole A. Rawden, City Finance Officer.  Motion seconded by Vander Wal.  On roll call:  Hageman, Yes; Rankin, Yes; Strasburg, Yes; Fideler, Yes; Anderson, Yes; and Vander Wal, Yes.  Motion carried.

Fideler made a motion to approve RESOLUTION 2013-05 A Resolution Approving the Brookings County Regional Railroad Authority to Levy Taxes in Relation to Rail Project in Brookings County, South Dakota.  WHEREAS, the Brookings County Regional Railroad Authority has authorized applying for a loan, from the South Dakota Railroad Board, in the amount of Six Million Six Hundred and Sixty Four Thousand One Hundred and Fifteen Dollars ($6,664,115.00) to fund the construction of a 21,987 foot loop track to facilitate rail car storage and loading for an agricultural processing facility in Brookings County, South Dakota owned by NOVITA AURORA, LLC.  WHEREAS, the South Dakota State Railroad Board will require a resolution from the Volga City Council, acknowledging the authority of the Brookings County Regional Railroad Authority to certify any tax levy as allowed by SDCL 49-17A-21 to be used in the event of default to pay such annual payments as may be required to service the project debt arising from the construction of the siding project;  NOW, THEREFORE, BE IT RESOLVED, that the City of Volga, South Dakota hereby grants approval for the Brookings County Regional Railroad Authority to certify the amount of tax to be levied as allowed by SDCL 49-17A-21 for repayment of said loan, plus interest, at the rate specified above, in the event of default by Brookings County Regional Railroad Authority and NOVITA AURORA, LLC. Passed, approved and adopted this 7th day of January, 2013.  Motion seconded by Vander Wal.  On roll call:  Hageman, Yes; Rankin, Yes; Strasburg, Yes; Fideler, Yes; Anderson, Yes; and Vander Wal, Yes.  Motion carried.

Information on upcoming meeting dates for the Brookings County Master Transportation Plan was shared with council.

Anderson made a motion to approve engineering services for the Volga Christian School Loop feed project and to review quotes.  Fideler seconded the motion.  All in favor; motion carried.

Anderson moved to approve the following claims and ordered them paid.  Vander Wal seconded the motion. All in favor; motion carried.  Claims received after the December 3, 2012 meeting were added to this month for approval.

Claims

Fideler made a motion to approve RESOLTUION 2013-02 A Resolution Revising the Utility Rate Schedule in the City of Volga, South Dakota.
BE IT RESOLVED by the City Council of the City of Volga, South Dakota that the following rates, charges and regulations for municipal electrical service are hereby adopted.

                                                            Table of Contents
                                                      1.   Residential Service
                                                      2.   Out-of-City Service
                                                      3.   Small Commercial Service
                                                      4.   Large Commercial Service
                                                      5.   Large Industrial Service
1. Residential Service
APPLICABLE TO:  Residential customers for all domestic uses in single-family dwellings and individually metered apartments within the service territory of the City of Volga Electric Utility and within the City limits of Volga, including use of motors of not more than 5 horsepower individual capacity. 
SERVICE AVAILABLE:  Single-phase, 60 hertz, 120/240 volt, 400 amp max., 3-wire, single meter.
MONTHLY RATE:
Customer Charge (No kWh)                            $6.40 per meter
plus
Energy Charge
                                    All kWh @                                          10.07¢
                      Minimum Charge                                              $5.00 per month
PROMPT PAYMENT PROVISIONS:  All charges are net.  If the bill is not paid by the 26th day of the month following the billing date, a late payment charge of 10 percent of the balance due shall apply. 
SALES TAX:  Sales tax to be added to all electric bills so as to be in compliance with the provisions of the laws of the State of South Dakota.
2. Out-of-City Service
APPLICABLE TO:  Residential, commercial, or farm customers within the service territory of the City of Volga Electric Utility and outside of the City limits of Volga, including use of motors of not more than 5 horsepower individual capacity, where the maximum monthly consumption in any 12 month period is less than 5000 kWh.
SERVICE AVAILABLE:  Single-phase, 60 hertz, 120/240 volt, 400 amp max., 3-wire, single meter; or three-phase, 60 hertz, 240/120V, 208Y/120V, or 480Y/277V, 4-wire, single meter. 
MONTHLY RATE:
Customer Charge (No kWh)                            $12.00 per meter
plus
Energy Charge
                                    All kWh @                                          10.93¢
                      Minimum Charge                                              $5.00 per month
PROMPT PAYMENT PROVISIONS:  All charges are net.  If the bill is not paid by the 26th day of the month following the billing date, a late payment charge of 10 percent of the balance due shall apply. 
SALES TAX:  Sales tax to be added to all electric bills so as to be in compliance with the provisions of the laws of the State of South Dakota.
3. Small Commercial Service
APPLICABLE TO:  Any commercial, industrial, city, or farm load within the service territory of the City of Volga Electric Utility and within the City limits of Volga, for all purposes, where the maximum monthly consumption is less than 5000 kWh.
SERVICE AVAILABLE:  Single-phase, 60 hertz, 120/240 volt, 400 amp max., 3-wire, single meter; or three-phase, 60 hertz, 240/120V, 208Y/120V, or 480Y/277V, 4-wire, single meter. 

MONTHLY RATE:
Customer Charge (No kWh)                            $12.00 per meter
plus
Energy Charge
                                    All kWh @                                          9.54¢  
                       Minimum Charge                                             $5.00 per month
PROMPT PAYMENT PROVISIONS:  All charges are net.  If the bill is not paid by the 26th day of the month following the billing date, a late payment charge of 10 percent of the balance due shall apply. 
SALES TAX:  Sales tax to be added to all electric bills so as to be in compliance with the provisions of the laws of the State of South Dakota.
4. Large Commercial Service
APPLICABLE TO:  Any commercial, industrial, city, or farm load within the City of Volga Electric Utility service territory, for all purposes, where the maximum monthly consumption is more than 5000 kWh, or where the metered maximum demand in any one month exceeds 25kW.
SERVICE AVAILABLE:  60 hertz, three-phase, 240/120 V, 208 Y/120 V, or 480 Y/277 V, 4-wire.  Special voltages may be provided at the discretion of the utility.  Utility furnishes only one transformer bank and/or one meter.
MONTHLY RATE:
Customer Charge                                              $14.50 per meter
+
Energy Charge
  All kWh                                                          2.86¢
+
Demand Charge
  All kW @                                                       $13.79
Minimum Charge                                             $5.00 per month
Minimum Demand Charge                               10% of maximum preceding 12 months
            METERED DEMAND:  The metered demand for any month shall be the maximum kilowatt demand established by the consumer for any thirty-minute interval during the month as indicated or recorded by a demand meter.
POWER FACTOR ADJUSTMENT:  If the customer's average monthly power factor falls below 90%, leading or lagging, the utility may adjust the metered demand by the ratio of 90% to the measured average monthly power factor in percent.  Example:
Metered Demand = 739 kW
Ave. Mo. Power Factor = 73.0%
Ratio = 90/73 = 1.2329
Adjusted Demand = (739)(1.2329) = 911 kW
ADJUSTED DEMAND:  The adjusted demand consists of the metered demand adjusted for power factor, if applicable.
BILLING DEMAND:  The billing demand shall be the maximum measured thirty-minute integrated demand in the billing month, but not less than ten percent (10%) of the maximum thirty-minute demand established in any of the twelve preceding months.
MEASUREMENT OF DEMAND AND ENERGY: When there are two or more demand and energy metering installations on the customer's premises, the metered quantities shall be determined by adding together the separate meter readings before application of the rate, unless special provisions are agreed to by the utility.  At the customer's request, and at the customer's expense, and at the Utility's discretion, the Utility may install special metering that will allow coincident demand billing.
PROMPT PAYMENT PROVISIONS:  All charges are net.  If the bill is not paid by the 26th day of the month following the billing date, a late payment charge of 10 percent of the balance due shall apply. 
SALES TAX:  Sales tax to be added to all electric bills so as to be in compliance with the provisions of the laws of the State of South Dakota.
 5. Large Industrial Service
APPLICABLE TO:  Any industrial load within the City of Volga Electric Utility service territory, for all purposes, where the metered maximum demand in any one month exceeds 2000kW.
SERVICE AVAILABLE:  60 hertz, three-phase, 208 Y/120 V or 480 Y/277 V, 4-wire, or standard primary voltage available at point of delivery.  Special voltages may be provided at the discretion of the utility. 
MONTHLY RATE COMPONENTS:  The rate to Large Industrial customers will consist of the following components:
Customer Charge:                              A monthly fixed charge intended to recover costs related to providing customer service functions.
Energy Charge:                                  A charge per kWh of energy used by the customer, equal to the cost of energy from the City’s power suppliers (HCPD and WAPA), Transmission and Transformation Loss, Wheeling Loss (East River), and Rate of Return.
Power Supply and
Transmission Demand
Charge:                                              A charge per kW of monthly demand coincident with the City’s peak billing demand interval, equal to the demand charge imposed by the City’s power suppliers (HCPD and WAPA),Transmission and Transformation Loss, Wheeling Loss (East River), and Rate of Return.
ENERGY COST ADJUSTMENT:  The City of Volga Electric Utility will apply a pass-through energy cost adjustment to recover any additional costs of purchased power imposed on them by Heartland Consumers Power District, through its use of the Power Cost Adjustment feature contained in its contract with the City of Volga. 
Customer Charge                                              $50.00 per meter
plus
Energy Charge
             All kWh  @                                        .03437¢
             plus
Power Supply and
Transmission Demand Charge
             All kW @                                            $26.43 (applied to customer’s coincident peak demand)
plus    
COINCIDENT DEMAND:  The coincident demand amount used for determining the Power Supply and Transmission Demand Charge for any month shall be the maximum thirty-minute kilowatt demand established by the consumer during the month, coincident with the City’s monthly maximum demand interval used for establishing its billing peak, as indicated or recorded by a demand meter.
POWER FACTOR ADJUSTMENT:  If the customer's average monthly power factor falls below 90%, leading or lagging, the utility may adjust the metered demand by the ratio of 90% to the measured average monthly power factor in percent.  Example:
Metered Demand = 739 kW
Ave. Mo. Power Factor = 73.0%
Ratio = 90/73 = 1.2329
Adjusted Demand = (739)(1.2329) = 911 kW
ADJUSTED DEMAND:  The adjusted demand consists of the metered demand adjusted for power factor, if applicable.
MEASUREMENT OF DEMAND AND ENERGY: When there are two or more demand and energy metering installations on the customer's premises, the metered quantities for each interval in a billing period shall be determined by adding together the separate meter readings before application of the rate.
PROMPT PAYMENT PROVISIONS:  All charges are net.  If the bill is not paid by the 26th day of the month following the billing date, a late payment charge of 10 percent of the balance due shall apply. 
SALES TAX:  Sales tax to be added to all electric bills so as to be in compliance with the provisions of the laws of the State of South Dakota.
PAYMENT FOR FACILITIES:  For initial facilities and for extension of facilities (including new delivery points and associated circuitry), the customer shall compensate the City of Volga at the cost of the facilities.  The payment terms shall be as mutually agreed upon at the time the request to extend facilities is made.
For replacement of failed equipment or equipment that has exceeded its useful life, the City of Volga will replace the same at its expense.
This Resolution is necessary for the support of the municipal government and shall take effect immediately upon publication.

Passed and approved this 7th day of January, 2013.  CITY OF VOLGA, SOUTH DAKOTA s/Mary A. Bjerke, Mayor, City of Volga ATTEST: s/Nicole A. Rawden, City Finance Officer.  Anderson seconded the motion.  On roll call:  Hageman, Yes; Rankin, Yes; Strasburg, Yes; Fideler, Yes; Anderson, Yes; and Vander Wal, Yes.  Motion carried.

Fideler made a motion to accept a bid for purchase of padmounted transformers from Wesco Distribution in the total amount of $79,393.00.  Only one bid was received.  Vander Wal seconded the motion.  All in favor; motion carried.

Sioux Valley Oral Interpretation presented their award-winning narratives.

Steve Moses and Mike Malone with Heartland Consumer Power District reviewed the unbundling of Volga’s line loss.  Council members expressed concern in regard to continued increases to Volga electric power purchasing from Heartland.  Other items discussed were the possibility of joining an Energy Market, Federal Energy Regulatory Commission (FERC), and surplus power.  Also discussed was contacting Dave Westbrock, Heartland’s board member for Subdivision 10 which includes Volga.

Blaine Hoff presented an opportunity for Volga to participate in a Diamond Sports Promotions baseball tournament in June. $60.00/game will be paid to the City to cover incidental expenses.

Council was introduced to a statement of Ethical Conduct prepared from a sample used by another South Dakota city.  Britzman approved this as a good working document, and Mayor Bjerke asked council to review for discussion at next council meeting. 

Rawden presented Capital Projects report for year ended December 31, 2012.  Hageman inquired about exceeding budgeted capital funds for the sewer project and the utilities communication systems project.

Strasburg made a motion to approve the following update to the personnel policy manual for sections 5.4 and 5.5 to read as follows: 5.4 City Council Meeting Attendance:  The City Administrator, Finance Officer and Electrical Superintendent are required to attend all City Council meetings unless special arrangements have been made with the Council. Compensation will be given as comp time earned at a rate of time and a half. All other regular employees are not required to attend unless asked to attend by their supervisor. Regular employees who attend City Council meetings at the request of their supervisor will be eligible to earn 1.5 hours of comp time per hour attending Council meetings as defined in Section 5.8. Employees who are requested to attend the meeting will earn a min. of 1.5 hours of comp time, regardless of extent of time spent. 5.5 Call Back Pay:  When an employee is called in to work he/she shall receive a minimum of 2 hours of work time to be applied to his/her total hours worked for the work week.
Electrical Department: Employees who are called in to work evenings or weekends shall receive a minimum of 2 hours of work time to be applied to total hours worked for the work week.  ON CALL pay for authorized employees will be 3 hours of pay for on-call service Friday through Sunday.  Water and Wastewater: Employees required to monitor water and wastewater on holidays, Saturdays and Sundays shall receive 1 hour overtime or 1.5 hours of comp time per day. During the summer season, employees shall receive 1.5 hours overtime or 2.25 hours comp time per day.  Fideler seconded the motion.  Discussion was held.  On roll call:  Hageman, abstained; Rankin, Yes; Strasburg, Yes; Fideler, Yes; Anderson, Yes; and Vander Wal, Yes.  Motion carried.

Strasburg made a motion to set April 9, 2013 for a combined municipal and school election.  Hageman seconded the motion.  All in favor; motion carried.

Hageman reported for the year ended December 31, 2012 the Volga Fire Department and First Responders responded to 83 calls.  Hageman made a motion to approve the advertising of bids for the purchase of SCBAs, new or refurbished.  Fideler seconded the motion.  Discussion was held on the utilization of the Central Bid Exchange in addition to advertising in the Volga Tribune for bid notices.  Council recommends utilizing both sources.  All in favor; motion carried.  Kooima reported the original fire bell will be hung on the outside of the Fire Hall and will be on display for the county feed meeting January 14.  The fire bell was donated by Sheldon Cotton.

VanderWal reported that advertising for a Program Director for Park/Rec and Pool seasonal temporary position in underway, and will include submission to the Volga Tribune.

Anderson made a motion to approve Resolution 2013-03 BE IT RESOLVED that in accordance with SDCL 35-1-5.3, prior authorization for persons to consume or blend alcoholic beverages on Saturday, January 19, 2013, in the Community Center, is hereby given. All such consumption or blending shall occur during the private party Dale. Said property shall be considered for purposes of the Resolution to be the location of a special license and shall not constitute a public place as defined by Ordinance 145 of the City of Volga. Sale of alcohol beverages shall not be permitted at any time at the above described location. There shall be no consumption of any alcoholic beverage by any individual who is under twenty-one years of age. This permit shall commence at 12:00AM on January 19, 2013 and shall conclude at 11:59 PM on January 19, 2013.  Dated this 7th day of January, 2013.  CITY OF VOLGA, SOUTH DAKOTA s/Mary A. Bjerke, Mayor, City of Volga ATTEST: s/Nicole A. Rawden, City Finance Officer.  Strasburg seconded the motion.  All in favor; motion carried.

Fideler made a motion to approve Resolution 2013-04 BE IT RESOLVED that in accordance with SDCL 35-1-5.3, prior authorization for persons to consume or blend alcoholic beverages on Friday, January 25, 2013, in the Community Center, is hereby given. All such consumption or blending shall occur during the private party Huber. Said property shall be considered for purposes of the Resolution to be the location of a special license and shall not constitute a public place as defined by Ordinance 145 of the City of Volga. Sale of alcohol beverages shall not be permitted at any time at the above described location. There shall be no consumption of any alcoholic beverage by any individual who is under twenty-one years of age. This permit shall commence at 12:00AM on January 25, 2013 and shall conclude at 11:59 PM on January 25, 2013.  Dated this 7th day of January, 2013.  CITY OF VOLGA, SOUTH DAKOTA s/Mary A. Bjerke, Mayor, City of Volga ATTEST: s/Nicole A. Rawden, City Finance Officer.  Anderson seconded the motion.  All in favor; motion carried.

Fideler made a motion to accept the first reading of ORDINANCE 2013-01 An Ordinance Amending the Code of Ordinances of the City of Volga and Pertaining to the Adoption of the 2012 International Building Code, the 2012 International Residential Code, the 2012 International Mechanical Code, and the 2012 International Existing Building Code with Certain Amendments Thereto.  Strasburg seconded the motion.  Discussion was held.  On roll call:  Hageman, No; Rankin, Yes; Strasburg, Yes; Fideler, Yes; Anderson, Yes; and Vander Wal, Yes.  Motion carried.

Motion by Anderson, seconded by Strasburg to move into executive session at 9:05 p.m. Motion carried. Motion by Fideler, seconded by VanderWal to move out of executive session at 9:40 p.m.

Motion by Anderson, seconded by Strasburg to approve annual increases as follows: Brent Brown $29.50, Steve Meyer $27.40, Nicole Rawden $20.25, Jon Hauge $20.00, Brady Severson $18.40, Kevin Steen $18.25, Melanie Hageman $18.00, Paul Santema $16.10, Don Doescher $11.50. In addition, a one-time net bonus of $200 for full-time and $100 for part-time employees will be given.

Motion by Fideler, seconded by VanderWal to adjourn at 9:50 p.m.  Next regular scheduled council meeting is Monday, February 4th, 2013 at 5:30PM Volga City Hall.

s/Mary A. Bjerke                                                                  s/Nicole A. Rawden   
Mayor, City of Volga                                                             Finance Officer