JOURNAL OF THE CITY COUNCIL Regular Session

JOURNAL OF THE CITY COUNCIL Regular Session – April 4, 2007

COUNCIL & STAFF PRESENT:

Martha Rowe Mayor

Jeff Newton Councilmember

Dale Blesz Councilmember

Tim Crist Councilmember

Jill McCord Councilmember

Howard Hickman City Attorney

Mari E. Macomber City Manager

Vickie Brumbaugh City Clerk

John Buckwalter Public Works Director

Paul Frazier Code Administrator

Laura Guy Finance Director

Kris McKim Assistant City Manager

Tom Mayer Newly Elected Official

Aaron Rodgerson Newly Elected Official

The City Council of the City of Kirksville, Missouri, met in a Regular Session on Wednesday, April 4, 2007, at 5:30 p.m. in the City Hall Council Chambers.

INVOCATION/PLEDGE

Pastor Marty Joplin, First Baptist Church, gave the Invocation.

Boy Scout Troop 26 led the Pledge of Allegiance.

MINUTES

Councilmember Crist moved to approve the minutes of the regular session of March 19, 2007; seconded by Councilmember Newton. The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

ORDER OF AGENDA

Councilmember Crist moved to approve the order of the agenda; seconded by Councilmember Blesz. The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

INFORMATION PRESENTATION

Mayor Rowe read a Proclamation proclaiming April as Fair Housing Month.

CITIZEN PARTICIPATION

None.

ACTION PRESENTATIONS

BILL NO. 2007-11

AN ORDINANCE AMENDING ORDINANCE NO. 11493, APPROVING THE PLAT OF FOX RUN PLAT 3.

Councilmember Newton moved to adopt Bill No. 2007-11 on first reading; seconded by Councilmember Crist.

Code Administrator Paul Frazier reported that a plat for the rezoning of property on South Jamison was approved in 2001. The language within that ordinance of approval contained a Deed of Dedication and plat to be recorded, but there was no Deed of Dedication. Therefore, an ordinance is required to amend the language, and will be recorded to delete the words, Deed of Dedication.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-12

AN ORDINANCE OF THE CITY OF KIRKSVILLE, MISSOURI, APPROVING A LOT SPLIT FOR LANDS LOCATED ON MISSOURI HIGHWAY 63, NORTH, KIRKSVILLE, MISSOURI.

Councilmember McCord moved to adopt Bill No. 2007-12 on first reading; seconded by Councilmember Newton.

Paul Frazier reported the property owner of land known as North Realty Group (where specialty shops such as Hibbett Sports and Dollar Tree are located) , wishes to sell the north half of this property, therefore separating into two lots.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-13

AN ORDINANCE DECLARING THE RESULTS OF THE MUNICIPAL ELECTION FOR THE CITY OF KIRKSVILLE, MISSOURI, HELD ON APRIL 3, 2007, AT WHICH TIME THERE WERE FOUR (4) CANDIDATES FOR ELECTION TO THE TWO (2) POSITIONS FOR THREE (3) YEAR TERMS THAT EXIST ON THE CITY COUNCIL.

Councilmember Crist moved to adopt Bill No. 2007-13 on first reading; seconded by Councilmember McCord.

City Manager Macomber explained the election results are the unofficial totals. The Council Clerk will provide certification within the next two weeks. The Council will be provided any changes in the vote count.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-14

AN ORDINANCE DECLARING THE RESULTS OF THE MUNICIPAL ELECTION FOR THE CITY OF KIRKSVILLE, MISSOURI, HELD ON APRIL 3, 2007, AT WHICH TIME THERE WAS SUBMITTED TO THE QUALIFIED VOTERS OF SAID CITY A QUESTION TO CONTINUE THE ONE-FOURTH OF ONE PERCENT CAPITAL IMPROVEMENT SALES TAX.

Councilmember McCord moved to adopt Bill No. 2007-14 on first reading; seconded by Councilmember Newton. The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-15

AN ORDINANCE DECLARING THE RESULTS OF THE GENERAL MUNICIPAL ELECTION FOR THE CITY OF KIRKSVILLE, MISSOURI, HELD ON APRIL 3, 2007, AT WHICH TIME THERE WAS SUBMITTED TO THE QUALIFIED VOTERS OF SAID CITY A QUESTION TO CAUSE ENACTMENT OF AN ORDINANCE PROHIBITING SMOKING IN CERTAIN PUBLIC PLACES WITHIN THE CITY LIMITS OF KIRKSVILLE.

Councilmember Crist moved to adopt Bill No. 2007-15 on first reading; seconded by Councilmember Blesz. The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-16

AN ORDINANCE AMENDING CHAPTER 18, ARTICLE V – OFFENSES AGAINST PUBLIC HEALTH AND SAFETY - OF THE CITY CODE OF THE CITY OF KIRKSVILLE, MISSOURI, BY ADDING A SECTION ENTITLED “SMOKING PROHIBITED IN CERTAIN PUBLIC PLACES”.

Councilmember Blesz moved to adopt Bill No. 2007-16 on first reading; seconded by Councilmember McCord.

City Manager Mari Macomber explained that the 120 days effective time period in the ballot language was not statutory language, but was a time limit for the City Council to act upon an ordinance after the election. The City Council had included an effective date within the draft ordinance of July 1.

Mayor Rowe opened discussion from the audience.

Justin Puckett thanked the Council for listening to the requests, for the town hall meeting and allowing citizens time to speak. He presented a certificate of thank you.

Sherry Sharp asked the Council to consider making changes to the Ordinance before passing it. The Moose, Shrine, Country Club and fair grounds are family oriented clubs and should be banned as well.

Brenda Sewell, owner of Uptown Café, said the Council needs to make the ordinance fair to include Moose, Shrine, Country Club and fair grounds.

Jennifer Aldridge Houser reported she is trying to get a grant to help people in the community who would like to stop smoking.

Justin Puckett said the Preferred Family offers free tobacco relief.

Joyce Lara said there are other services available.

Melody Jennings said she understood the non-profit organization would have to ban smoking if they hired food preparers to come in. A Council member said originally that was the wording, but the Council had changed the wording.

Ann Blesz asked the Council to consider including the private organizations in the ordinance, and reminded them this is about health issues.

There being no further comments, the motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

BILL NO. 2007-17

AN ORDINANCE AUTHORIZING THE ISSUANCE OF COMBINED WATERWORKS AND SEWERAGE SYSTEM REVENUE BONDS (STATE REVOLVING FUND PROGRAM) SERIES 2007 OF THE CITY OF KIRKSVILLE, MISSOURI, FOR THE PURPOSE OF EXTENDING AND IMPROVING THE CITY’S COMBINED WATERWORKS AND SEWERAGE SYSTEM; PRESCRIBING THE FORM AND DETAILS OF THE BONDS AND THE AGREEMENTS MADE BY THE CITY TO FACILITATE AND PROTECT THEIR PAYMENT; AND AUTHORIZING A NO–INTEREST LOAN FROM THE WATER AND WASTEWATER LOAN FUND AND/OR THE WATER AND WASTEWATER LOAN REVOLVING FUND OF THE STATE OF MISSOURI AND PRESCRIBING OTHER RELATED MATTERS.

Councilmember Crist moved to adopt Bill No. 2007-17 on first reading; seconded by Councilmember Blesz.

Laura Guy reported the proceeds from the bonds will fund the downtown water main improvements and phase II of the water treatment plant upgrade.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Addendum to Water Plant Improvements Agreement w/Benton & Associates

Councilmember McCord moved to authorize the City Manager to execute an addendum to the agreement with Benton and Associates, adding engineering services for bidding and construction phase services for Water Plant improvements, Phase II; seconded by Councilmember Blesz.

John Buckwalter reported the design work for Phase I and II of the water treatment project was completed in 2005. Phase I is nearing completion, and ready to begin work on Phase II, which is eligible under the SRF funding.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Airport Improvements Engineering w/Bucher, Willis & Ratliff

Councilmember Blesz moved to approve Bucher, Willis and Ratliff Corporation to provide engineering services for planning and design of airport improvements at the Kirksville Regional Airport, pending approval by the Missouri Department of Transportation; seconded by Councilmember Crist.

John Buckwalter reported that proposals were solicited in February, and two companies presented proposals and were interviewed.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Downtown Water Main Improvements, Phase I Agreement

Councilmember Crist moved to authorize the City Manager to enter into an agreement with Willis Brothers, Inc. for Downtown Water Main Improvements, Phase I, pending Missouri Department of Natural Resources approval; seconded by Councilmember Newton.

John Buckwalter reported that Willis Brothers was the low bidder at $982,373. Work will start in June.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Bid – Utility Van for Public Works

Councilmember Newton moved to approve a bid from Jim Robertson Chevrolet for a utility van; seconded by Councilmember Crist.

John Buckwalter reported their specifications were for a diesel engine, but accepted alternate bids for gasoline. A diesel engine bid at $39,936 is recommended.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Water Tower Lease Amendment w/Alamosa Missouri

Councilmember Crist moved to approve an amendment to the water tower lease agreement with Alamosa Missouri Properties; seconded by Councilmember Newton.

Kris McKim reported the agreement allowed for installation of up to 12 panel antennas. Alamosa installed 6 antennas, and is currently planning to add 3 more. They would like in writing the number of coaxial cables it will take to run those antennas.

The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Committee/Board Appointments

Councilmember Newton moved to appoint Norman Belitz to the Highway 63 Transportation Corporation; seconded by Councilmember Blesz. The motion carried by the following vote: Mayor Rowe - aye; Council members: Newton - aye; Crist - aye; McCord - aye; Blesz - aye. Nays – none.

Second Reading

BILL NO. 2007 11 ORDINANCE NO. 11791

AN ORDINANCE AMENDING ORDINANCE NO. 11493, APPROVING THE PLAT OF FOX RUN PLAT 3.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KIRKSVILLE, MISSOURI, AS FOLLOWS:

Ordinance No. 11493. approving the plat of Fox Run Plat 3, was approved by the City Council in April, 2001; and recorded in Book 735, Page 236 on March 1, 2002. An amendment to this Ordinance is necessary to correct the wording within the Ordinance. There was no Deed of Dedication at the time of the plat approval.

Section 1. Certain contents of Ordinance No. 11493 shall be amended to read as follows:

…“~~WHEREAS, Philip T. Richardson and Irene M. Richardson, have executed their “Deed of Dedication of Fox Run Plat 3,” and~~

WHEREAS, ~~both~~ the “Plat” ~~and “Deed of Dedication”~~ shall be recorded in the Recorder’s Office of Adair County, Missouri….

Section 2. Effective upon approval and passage of this Ordinance.

BILL NO. 2007-12 ORDINANCE NO. 11792

AN ORDINANCE OF THE CITY OF KIRKSVILLE, MISSOURI, APPROVING A LOT SPLIT FOR LANDS LOCATED ON MISSOURI HIGHWAY 63, NORTH, KIRKSVILLE, MISSOURI.

BE IT ORDAINED by the City Council of the City of Kirksville, Missouri as follows:

WHEREAS, a tract of land located on Missouri Highway 63, North, (North of Wal-Mart) is proposed to be subdivided into two (2) tracts of land within the City of Kirksville, Missouri, described herein and is incorporated herein by reference, and has been regularly certified by Steven A. Laune, licensed surveyor number 2007000079, and

WHEREAS, the plat of land is described as follows:

A tract of land situated on Lot 6, Johnson Addition to Kirksville, Adair County, Missouri.

WHEREAS, the plat shall be recorded in the Recorder’s Office of Adair County, Missouri.

NOW, THEREFORE, a lot split for a tract of land located on North Missouri Highway 63 is hereby approved and the same is made an addition to the City of Kirksville, Missouri, and the portions thereof dedicated to the public are hereby accepted.

BILL NO. 2007-13 ORDINANCE NO. 11793

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KIRKSVILLE, MISSOURI, AS FOLLOWS:

Section 1. That it is hereby found and determined that the results of the election are as follows:

SW #1 SE#2 SE#3 NE#4 NE#5 NE#6 TSU ABSENTEE TOTAL

Kevin A. Alm 78 103 59 77 62 95 9 31 514

Tom Mayer 149 419 206 246 279 389 77 104 1,869

Aaron Rodgerson 119 337 153 196 211 296 37 73 1,422

Charles Cannaday 107 236 101 149 128 187 29 80 1,017

Write In 4 3 5 3 7 8 7 1 38

Write In 1 0 2 0 2 1 1 1 8

Section 2. That it is hereby found that Tom Mayer and Aaron Rodgerson are declared elected for three-year terms on the City Council and shall take office on the 4th day of April, 2007.

Section 3. That it is further found, declared and determined that notice of said election was duly given and published in a manner provided by law, and that said election was held and conducted in all respects in conformity with the constitution and laws of the State of Missouri.

BILL NO. 2007-14 ORDINANCE NO. 11794

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KIRKSVILLE, MISSOURI, AS FOLLOWS:

Section 1. FOR AGAINST

Absentee 122 52

Southwest Benton #1 143 132

Southeast Benton #2 430 205

Southeast Benton #3 224 95

Northeast Benton #4 251 131

Northeast Benton #5 259 128

Northeast Benton #6 355 198

TSU Benton 97 16

TOTAL 1,881 957

Section 2. That it is hereby found the continuance of the one-fourth (1/4) cent capital improvement sales tax passed by a vote of 1,881 for and 957 against.

BILL NO. 2007-15 ORDINANCE NO 11795

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KIRKSVILLE, MISSOURI, AS FOLLOWS:

Section 1.

FOR AGAINST

Absentee 95 82

Southwest Benton #1 146 143

Southeast Benton #2 422 230

Southeast Benton #3 245 100

Northeast Benton #4 234 171

Northeast Benton #5 236 160

Northeast Benton #6 330 239

TSU Benton 112 18

TOTAL 1,820 1,143

Section 2. That it is hereby found that the question to cause to be enacted an ordinance prohibiting smoking in certain public places within the city limits of Kirksville passed by a vote of 1,820 for, and 1,143 against.

BILL NO. 2007-16 ORDINANCE NO. 11796

WHEREAS, on April 3, 2007, a majority of voters in the municipal election affirmatively voted in favor of a smoking ban in certain public places; and

WHEREAS, the smoking of tobacco is a form of air pollution, and is a danger to health, and a material public nuisance; and

WHEREAS, the City of Kirksville wishes to promote the public health and welfare of its citizens and community visitors by decreasing exposure to secondhand smoke caused from tobacco; and

WHEREAS, the City of Kirksville understands the health impact of second hand smoke in the workplace and wishes to protect employees where high exposure of second hand smoke exists; and

WHEREAS, the City Council of the City of Kirksville finds and declares that the purpose of this Ordinance is to protect the public health and welfare by prohibiting smoking in certain public places.

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KIRKSVILLE, ADAIR COUNTY, MISSOURI, AS FOLLOWS:

Section 1. That Chapter 18, Article V, of the Code of Ordinances of the City of Kirksville, Missouri, be amended to read as follows:

Division 3. SMOKING PROHIBITED IN CERTAIN PUBLIC PLACES.

Section 18-88. Definitions.

The following words, terms and phrases, when used in this Section, shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning.

1. Actively Passing means to travel alongside, across, through or in front of a particular place or location while proceeding from one place or location to a different place or location.

2. Amusement Place means a building used for billiards, bowling or roller skating and other similar entertainment, open to the public.

3. Banquet Facility means a stand alone building when used primarily for private or public gatherings or entertainment.

4. Bar means an establishment that serves alcoholic beverages for consumption by guests on the premises, and all indoor and outdoor areas thereof, including but not limited to, taverns, nightclubs, cocktail lounges and cabarets.

5. City Operated Facility means any building located within the city limits of the city, which is owned, leased or under control of the city for providing city services.

6. Control means to exercise authority or influence over.

7. Employee means any person who performs services for an employer for compensation.

8. Employer means a person, partnership, association, corporation, trust, or other organized group of individuals, which utilizes the services of one (1) or more employees.

9. Membership Association means a private organization which;

a. is organized primarily for the benefit of its members; and

b. its members are required to pay dues; and

c. is organized primarily as:

1) a charitable or benevolent association; or

2) a recreational association; or

3) a fraternal association; or

4) an athletic association; or

5) a military veterans association; or

6) a religious association; or

7) a kindred association; and

d. is a not-for-profit organization under the laws of the State of Missouri; and

e. is managed and operated by a board consisting entirely of its members; and

f. is not primarily engaged in the preparation and serving of alcoholic beverages by the drink and/or food.

10. Owner means a person, partnership, association, corporation, trust, or other organized group of individuals.

11. Recreation Facility means any public park, playground, recreation center or recreation area, whether it be improved or unimproved real property located within the city limits of the city, which is owned, leased or under control of the city for recreational purposes, including all indoor and outdoor areas.

12. Restaurant means an eating establishment thereof, and all indoor and outdoor areas thereof, including but not limited to, coffee shops, cafeterias, sandwich stands, bed and breakfast establishments and private and public school cafeterias, which gives or offers for sale food to the public. The term “restaurant” shall include an attached bar.

13. Smoking means inhaling, exhaling, burning or possessing any lighted cigar, cigarette, pipe, weed, plant, or other tobacco product or possessing any lighted cigar, cigarette or pipe containing a combustible and burning substance other than tobacco.

Section 18-89. Prohibition of smoking.

a. Smoking is prohibited in all bars, city operated facilities, recreation facilities, restaurants, amusement places, bed and breakfasts and banquet facilities when employees are present and working at the banquet facility, provided however, that smoking is not prohibited in facilities owned and/or operated by a membership association or under the control of a membership association if such facility is used primarily for its members.

b. Smoking is prohibited within a distance of ten feet (10’) from entrances, operable windows or ventilation systems of areas where smoking is prohibited in Section 18-89a. This subsection shall not apply to persons who are actively passing by such entrance, operable window or ventilation system.

Section 18-90. Responsibilities of proprietors, owners and managers.

a. Any person(s) who owns, manages, operates, or otherwise has control of an area where smoking is prohibited by the provisions of Section 18-89a, shall not permit, cause, suffer or allow any person to violate the provisions of this ordinance in that place.

b. It shall be an affirmative defense to an alleged violation of this subsection if the person who owns, manages, operates or otherwise controls a public place listed in Section 18-89a does the following:

1. Immediately requests that the person in possession of lighted smoking materials extinguish the same; and

2. If the lighted smoking materials are not extinguished, immediately requests that the person in possession of such lighted smoking materials leave the area where smoking is prohibited by the provisions of this Ordinance; and

3. If the person in possession of such lighted smoking materials does not leave the area where smoking is prohibited by the provisions of this Ordinance, immediately notifies the City enforcement officers of the violation of Section 18-89a.

c. A person who owns, manages, operates, or otherwise has control of a public place listed in Section 18-89a shall clearly and conspicuously post “No Smoking” signs, or the international “No Smoking” symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a red bar across it), near all entrances where smoking is prohibited by this Ordinance. Such signage shall consist of letters not less than one inch, (1”) in height.

Section 18-91. Penalty for violation of this Ordinance.

a. A person, who smokes in an area where smoking is prohibited by the provisions of this Ordinance, shall be guilty of an ordinance violation, punishable by:

1. A fine not less than one hundred dollars ($100) for a first violation.

2. A fine not less than two hundred dollars ($200) for a second violation within a period of twelve (12) consecutive months.

3. A fine in the amount of five hundred dollars ($500) for a third or subsequent violation within a period of twelve (12) consecutive months, or by imprisonment for a period not exceeding ninety (90) days, or by both such fine and imprisonment.

b. Any person(s), who owns, manages, operates, or otherwise has control of an area where smoking is prohibited by the provisions of Section 18-89a, who fails to comply with the provisions of this Ordinance shall be guilty of an ordinance violation, punishable by:

1. A fine not less than one hundred dollars ($100) for a first violation.

2. A fine not less than two hundred dollars ($200) for a second violation within a period of twelve (12) consecutive months.

c. Each incident for which a violation of this Ordinance occurs shall be a separate and distinct violation.

Section 18-92. Other applicable laws.

This Ordinance shall not be interpreted or construed to permit smoking where it is otherwise restricted by other applicable laws.

Section 18-93. Effective dates.

This Ordinance will become effective on July 1, 2007.

Section 18-94. Enforcement of Ordinance.

The authority to administer the provisions of this Ordinance is vested with the City Manager and his/her duly authorized representatives.
Whenever the need arises, the City Manager may call upon the police, fire and codes departments and other departments of the City to aid in the enforcement of the provisions of this Ordinance.
Notice of the provisions of this Ordinance shall be given to all applicants who have applied for a business license in the City of Kirksville, Missouri.

Section 2. The provisions of this ordinance shall be included and incorporated in the Code of Ordinances of the City of Kirksville, Missouri, as an addition or amendments thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the Code.

BILL NO. 2007-17 ORDINANCE NO. 11797

WHEREAS, the City of Kirksville, Missouri (the “City”) is a city of the third class, organized and existing under the constitution and laws of the State of Missouri; and

WHEREAS, prior to adoption of Ordinance No. 11740 on December 19, 2005 (the “Combined System Ordinance”), the City operated a Waterworks System and a Sewerage System; and

WHEREAS, by the Combined System Ordinance, the City combined the Waterworks System (thereafter, the “Waterworks Subsystem”) and the Sewerage System (thereafter, the “Sewerage Subsystem”), into a revenue producing combined waterworks and sewerage system serving the City, its inhabitants and others within its service area, including connected and related appurtenances and facilities and extensions, improvements, additions and enlargements made or acquired by the City after the date of this Ordinance (the “System”); and

WHEREAS, the City desires to make extensions and improvements to the System to be financed in whole or in part by the issuance, pursuant to this Ordinance, of its Combined Waterworks and Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2007 (the “Bonds”); and

WHEREAS, to provide the most cost effective financing of the extensions and improvements to the System, the City desires to participate in the Missouri Leveraged State Water Pollution Control Revolving Fund Program or the Missouri Leveraged State Drinking Water Revolving Fund Program (collectively, the “SRF Program”) of the Missouri Department of Natural Resources (“DNR”) and the State Environmental Improvement and Energy Resources Authority (the “Authority”); and

WHEREAS, under the provisions of Chapter 250 of the Revised Statutes of Missouri (the “Act”) the City is authorized to issue and sell revenue bonds for the purpose of paying all or part of the cost of extending and improving the System, with the cost of operation and maintenance of the System and the principal of and interest on revenue bonds payable solely from the Net Revenues (as defined below); and

WHEREAS, pursuant to the Act, a special bond election was duly held in the City on April 4, 2006 on the following question:

QUESTION

Shall the City of Kirksville, Missouri, issue its combined waterworks and sewerage system revenue bonds in the amount of $7,000,000 for the purpose of paying a portion of the cost of improving the combined waterworks and sewerage system of the City, including