01/10/2012 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL REGULAR MEETING
January 10, 2012
Pursuant to due call and notice thereof, a Regular Meeting of the City Council of the City of
Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First
Street, on January 10, 2012. Notice of the meeting was given in The Grand Island Independent
on January 4, 2012.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following City Council
members were present: Chuck Haase, Larry Carney, Bob Niemann, Peg Gilbert, Mitch
Nickerson, Linna Dee Donaldson, Scott Dugan, Randy Gard, and John Gericke. Councilmember
Kirk Ramsey was absent. The following City Officials were present: City Administrator Mary
Lou Brown, City Clerk RaNae Edwards, City Attorney Robert Sivick, Public Works Director
John Collins and Interim Finance Director Jaye Monter.
INVOCATION was given by Pastor Paul Hofrichter, Evangelical Free Church, 2609 South
Blaine Street followed by the PLEDGE OF ALLEGIANCE.
MAYOR COMMIJNICATION: Mayor Vavricek introduced Community Youth Council
members Dillon Spies and Miranda Wieczorek and Board member Roy Swan.
City Administrator Mary Lou Brown mentioned that the construction on the Quiet Zone would
be completed in March or April with train horns to be implemented in May 2012. Elm Street
would close permanently on January 16, 2012. Clarified was the annual employee recognition
lunch held in December as allowed by City Code.
Public Works Director John Collins answered questions from the last Study Session concerning
the Fleet Services and transfer of funds. $131,000 was transferred to the Fleet services as
follows: employee payouts $85,500 and 2011 operating shortfall $45,500. Three positions were
reduced and replaced with 1.5 employees with a savings of $141,000.
Mayor Vavricek mentioned the passing of Senator Dennis Utter, Chuck Bosselman, and Bud
Jefferies.
PRESENTATIONS AND PROCLAMATIONS:
Reco�nition of Miiton Loeb Senior En�ineerin� Technician with the Public Works Department
for 40 Years of Service with the Citv of Grand Island Mayor Vavricek and the City Council
recognized Milton Loeb, Senior Engineering Technician with the Public Works Department for
40 years of service with the City of Grand Island. Mr. Loeb was present for the recognition.
._ Presentation on Street Imbrovement District No 1256 — Capital Avenue Widening• Moores
Creek Drain to Webb Road Assessment Methods. Public Works Director John Collins reviewed
with the Council the process of setting assessments for Street Improvement District No. 1256. A
Special Assessment Manuel was last modified on January 5, 1967. Reviewed was the timeline
for Street Improvement District No. 1256.
Page 2, City Councii ftegular Meeting, January 10, 2012
Matt Rief, representing Olsson Associates explained the assessment process. Assessments on
Capital Avenue widening project was for 41' of pavement which did not include sidewalks, sod
replacement, or right-of-way costs. Almost 80% of this project was paid for by Federal dollars.
Total assessments for the project were $732,831.97 with $129,090.95 to be assessed to the City.
The following people spoke regarding this item:
• Curtis Cellar, 4220 Shanna Street spoke in opposition
• Jeff Vinson, 3010 Gladstone Circle spoke in opposition
Discussion was held concerning the set back distance of Curtis Cellar's property. Mr. Cellar
responded it was 236'. The Policy required a 300' set back distance for assessments. Interim
Finance Director Jaye Monter explained the assessment of public property would be transferred
from the Enterprise Fund to the Special Assessment Revenue Fund.
Questions were asked about the assessment processes of other communities. Mr. Rief stated
every community does it a little different. City Attorney Robert Sivick explained the state
statutes regarding assessments. Mr. Collins stated the policies used by the Public Works
Department were created 30 to 40 years ago and needed to be updated.
PUBLIC HEARINGS:
Public Hearin� on Reauest from Fuji Steak House Inc dba Fuji Japanese Steak House 1004
North Diers Avenue Suite 200 for a Class "I" Liquor License RaNae Edwards, City Clerk
reported that an application for a Class "I" Liquor License had been received from Fuji Steak
House, Inc. dba Fuji Japanese Steak House, 1004 North Diers Avenue, Suite 200. Ms. Edwards
presented the following exhibits for the record: application submitted to the Liquor Control
Commission and received by the City on December 14, 2011; notice to the general public of
date, time, and place of hearing published on December 31, 2011; notice to the applicant of date,
time, and place of hearing mailed on December 14, 2011; along with Chapter 4 of the City Code.
Staff recommended approval. No public testimony was heard.
Public Hearin� on Acquisition of Utilitv Easement located at 3323 West Airport Road (Luke A
Olson . Utilities Director Tim Luchsinger reported that acquisition of a utility easement located
at 3323 West Airport Road was needed in order to have access to install, upgrade, maintain, and
repair power appurtenances, including lines and transformers for the purpose of placing
underground conduit, high voltage cable and a pad-mounted transformer to provide electrical
service to a new business. Staff recommended approval. No public testimony was heard.
Public Hearin� on AcQUisition of Utility Easement Located at 1819 East 7`h Street (D J Eihusen
POA for Robert Eihusen). Utilities Director Tim Luchsinger reported that acquisition of a utility
easement located at 1819 East 7`h Street was needed in order to have access to install, upgrade,
maintain, and repair power appurtenances, including lines and transformers for the purpose of
placing underground conduit, high voltage power cable, and a pad-mounted transformer to
provide electrical power to the new business opened by Global Industries. Staff recommended
approval. No public testimony was heard.
Page 3, City Council Regular Meeting, January 10, 2012
ORDINANCES:
Councilmember Gilbert moved "that the statutory rules requiring ordinances to be read by title
on three different days are suspended and that ordinances numbered:
#9349 — Consideration of Amending Previously Adopted Ordinance No. 9349 Relating to
Chapter 36-69 of the Grand Island City Code Regarding Campgrounds
#9356 — Consideration of Conveyance of City Property and Temporary Construction
Easements to Burlington Northern Santa Fe Railroad for pouble Track Project
#9357 — Consideration of Amending Salary Ordinance
be considered for passage on the same day upon reading by number only and that the City Clerk
be permitted to call out the number of these ordinances on second reading and then upon final
passage and call for a roll call vote on each reading and then upon final passage."
Councilmember Niemann second the motion. Upon roll call vote, all voted aye. Motion adopted.
Regional Planning Director Chad Nabity reported that amending Ordinance #9349 would clarify
the wording passed at the December 20, 2011 meeting. Chapter 36-69 Section 2 b) if approved
would read: A minimum of one toilet and one lavatory shall be provided for each sex up to the
first 25 sites. An additional toilet and lavatory for each sex shall be provided for each additional
25 sites or fraction thereof not provided with sewer connections.
_ Utilities Director Tim Luchsinger reported that Ordinance #9356 would convey six parcels of
real estate to BNSF for the Double Track Project. Also included were temporary construction
easements for the parcels.
Human Resources Director Brenda Sutherland reported that Ordinance #9357 would reclassify
the Community Development Administrator position as non-exempt and three Assistant Utility
Directors positions would be have title/classification changes.
Motion by Dugan, second by Donaldson to approve Ordinances #9349, #9356 and #9357.
City Clerk: Ordinances #9349, #9356 and #9357 on first reading. All those in favor of the
passage of these ordinances on first reading, answer roll call vote. Upon roll call vote, all voted
aye. Motion adopted.
City Clerk: Ordinances #9349, #9356 and #9357 on final passage. All those in favor of the
passage of these ordinances on final passage, answer roll call vote. Upon roll call vote, all voted
aye. Motion adopted.
Mayor Vavricek: By reason of the roll call votes on first reading and then upon final passage,
Ordinances #9349, #9356 and #9357 are declared to be lawfully adopted upon publication as
required by law.
CONSENT AGENDA: Consent Agenda items G-7 and G-13 were pulled for further discussion.
Motion by Donaldson, second by Carney to approve the Consent Agenda excluding items G-7
and G-13. Upon roll call vote, all voted aye. Motion adopted.
Page 4, City Councii Regular Meeting, January IQ 2012
Approvin� Minutes of December 20 2011 Citv Council Regular Meetin�
Approvin� Minutes of December 27 2011 City Council Special Meetin�
#2012-1 – Approvin� Bid Award for Distributed Control Svstem Console Up�rade at Platte
Generatin� Station with ABB Inc of Wickliffe Ohio in an Amount of $197 843 50
#2012-2 – Approvin� Acquisition of Utilitv Easement Located at 3323 West Airport Road (Luke
A. Olson .
#2012-3 – Approvin� Acquisition of Utility Easement Located at 1819 East 7th Street (D J
Eihusen, POA for Robert Eihusen).
#2012-4 – Approvin� Bid Award for 2012 Truck – Complete Unit with Telescopic Aerial
Platform & Chassis for the Utilities Department Line Division with Drake Scruggs Equipment
inc. of Sprin�field, Illinois in an Amount of $104 759 40
#2012-6 – Abprovin� Bid Award for One (1) 2012 Model 90 000 GVW Conventional Truck-
Tractor for the Solid Waste Division with Nebraska Truck Center of Grand Island Nebraska in
an Amount of $68.618.00.
#2012-7 – Approvin� Revised Contract Amount to Resolution #2011-357 (Bid Award to
— Midlands Contractin�, Inc.) for Lift Station No. 7 Repairs• Proiect No 2011-5-1 for a Revised
' Contract Amount of $312,728.67.
#2012-8 – Approvin� the Certificate of Compliance with the Nebraska Department of Roads for
Maintenance A�reement No. 12• Calendar Year 2011
#2012-9 – Ap rp oving Desi ng atin� Local Public Agencv Official Responsible for Setting Just
Compensation for Tracts Acquired for Federal Transportation Aid Pro'e� cts
#2012-10 – Approvin� Chan�e Order No. 1 for Moores Creek Drain Extension – Old Potash
Crossin�; Draina�e Proiect No. 2008-D-2 with Midlands Contractin� inc of Kearnev Nebraska
for an increase of $43,560.00 and a Revised Contract Amount of $210 365 00
#2012-5 – Approvin� Contract for Installation & Purchase of 911 C"PE S�stem with Platte
Vallev Communications of Grand Island Nebraska in an Amount of $168 835 00 Emergency
Management Deputy Director Larry Smith reported that this contract would replace the current
911 telephone system.
Motion by Gilbert, second by Haase to approve Resolution #2012-5.
Discussion was held regarding the number of phone stations. Mr. Smith stated 4 stations were
fully functional with 2 to 4 used on any given day. The original bid was for 5 stations.
Motion by Gilbert, second by Gericke to refer this item to the January 24, 2012 meeting. Upon
roll call vote, all voted aye. Motion adopted.
Page 5, City Council Regular Meeting, January 10, 2012
#2012-11 — Approvin� Amendment to the Fee Schedule Relative to HPSP and Jackrabbit Run
Golf Course. Parks & Recreation Director Steve Paustian reported this was a request to modify
the existing fee schedule for the Heartland Public Shooting Park and Jackrabbit Run Golf
Course.
Discussion was held regarding the dollar impact at HPSP with the fee changes. Mr. Paustian
stated it would be approximately $10,000 which would cover the costs of the clay targets.
Motion by Carney, second by Gilbert to approve Resolution #2012-11. Upon roll call vote, all
voted aye. Motion adopted.
RESOLUTIONS:
#2012-12 — Consideration of ReQUest from Fuji Steak House Inc dba Fuji Japanese Steak
House, 1004 North Diers Avenue Suite 200 for a Class "I" Liquor License and Liquor Manager
Designation for Qi Qin Huang 1206 Cedar Ridge Court Apt 101 This item related to the
aforementioned Public Hearing.
Motion by Haase, second by Gard to approve Resolution #2012-12 contingent upon completion
of a state approved alcohol server/seller training program. Upon roll call vote, all voted aye.
Motion adopted.
#2012-13 — Consideration of Intent to Annex Area 8b (Rainbow Lake AreaZ Regional Planning
, Director Chad Nabity reported that at the March 22, 2011 City Council meeting a resolution was
passed that directed the planning department to proceed with preparing annexation plans. Eight
areas were identified and Council had acted on 6 of the 8 areas. Annexation area 8b (Rainbow
Lake) was completed and considered by the Regional Planning Commission. To precede with
this annexation the City Council would need to pass a resolution stating their intent to annex,
approve annexation plans and set public hearings for comment on the annexation before council.
The Public Hearing date was recommended for February 14, 2012.
Virgil Harden representing Grand Island Public Schools spoke in support. Discussion was held
concerning the amount of property taxes that would be received from this area. Mr. Nabity stated
there were 52 parcels and 46 houses which would bring in approximately $28,000 of property
taxes.
Motion by Carney, second by Gard to approve Resolution #2012-13. Upon roll call vote, all
voted aye. Motion adopted.
Council Recessed at 8:45 p.m. and reconvened at 8:50 p.m.
#2012-14 — Consideration of Structured Solutions Petition to Extend Contract City
Administrator Mary Lou Brown reported that on December 15, 2009, the City Council approved
an Economic Development Agreement with Structured Solutions, Inc. for a$600,000.00
forgivable loan to assist in setting up a business in Grand Island to provide loan management
services to lenders. The agreement provided for Structured Solutions to create 200 new jobs by
2014 and have 50 employees in Grand Island by December 31, 2011. As of December 31, 2011
Page 6, City Council Regular Meeting, January 10, 2012
Structured Solutions had not met the hiring of 50 employees and were in default of the
agreement.
On December 27, 2011 Robert Yuan of Structured Solutions contacted the Grand Island Area
Economic Development Corporation and requested a seven month extension. Mr. Yuan offered
10% of Structured Solutions stock as collateral in exchange for the extension.
Marlan Ferguson, President of Economic Development Corporation stated Structured Solutions
was the first company who had not met the terms of the agreement. Stated was that EDC had
been working diligently with Structured Solutions to meet those requirements.
City Attorney Bob Sivick reviewed the terms of the agreement between the City, Structured
Solutions, and EDC. The agreement provided for 50 employees to be hired by December 31,
2011, 150 employees by December 31, 2012, and 50 employees by December 31, 2013 for a
total of 200 employees. After each benchmark was met $200,000 would be forgiven.
Robert Juan, CEO of Structured Solutions stated the company was in default of the loan which
was caused by unexpected litigation. They were days away from a major capital raise when the
filing took place. Mr. Juan requested the City grant Structured Solutions an extension to the
agreement deadlines by 12 months and would repay the City $200,000 plus 8% interest in
quarterly payments of $50,000 each.
Motion by Carney to approve Resolution #2012-14 (A). Motion died due to lack of a second.
Motion by Dugan to approve Resolution #2012-14 (B). Motion died due to lack of a second.
Motion by Nickerson, second by Gilbert to accept the proposed modification as presented by Mr.
Yuan to extend the agreement deadlines by 12 months and repayrnent to the City of $200,000
plus 8% interest due on or prior to year end 2012 in quarterly payments of $50,000.
Discussion was held regarding litigation of the parent company. Denise McGovern with EDC
clarified questions regarding the application dates. Questioned was why this request was not
brought forward earlier. Mr. Yuan stated they were unfamiliar with the process. Mr. Yuan was
asked questions regarding financial positions, cash balance sheets and assets. He stated the cash
balance sheet and assets were low. Mr. Yuan did not answer questions concerning the current
cash balance in an open forum, but would give the information to the Council in a closed session.
Mayor asked Mr. Yuan questions regarding repayment of the loan. Mr. Yuan stated he was fairly
confident they could repay the loan, but he would have to talk with his investors. Also mentioned
was the lack of communication with Mr. Yuan throughout this process.
Mr. Ferguson explained the request received today vvas for a 12 month repayment of $200,000
plus 8% interest payable in quarterly payrnents of $50,000 starting March 31, 2012. Don Dunn,
Attorney for EDC clarified the proposal from Structured Solutions.
Discussion was held regarding coming up with the $200,000 right away. Mr. Yuan stated it
would be harder to come up with the $200,000 right now than $50,000 in four quarterly
payments.
Page 7, City Council Regular Meeting, January ] 0, 2012
Tom Gdowski, EDC Treasurer commented on the EDC board's discussions regarding repayment
of the loan. The board considered the better of the two options which they felt was approving the
modification of the contract.
Motion by Carney to amend the main motion of the contract to 3 months extension with a
payment due at that time. Motion died due to lack of a second.
Mr. Yuan explained the hiring process, boot camps, filtering process and help from Work Force
Development and Central Community College. Currently 6 employees were working for
Structured Solutions.
Discussed was the amount due to the City because of the default of the loan. Mr. Dunn stated
$200,000 was due to the City at this time. Mr. Sivick stated in his opinion the contract was in
default and the amount owed was the full $600,000.
Comments were made regarding the future of the LB 840 program and the upcoming vote to
continue the program.
Upon roll call vote to accept the proposed modification as presented by Mr. Yuan to extend the
agreement deadlines by 12 months and repayment to the City of $200,000 plus 8% interest due
on or prior to year end 2012 in quarterly payments of $50,000, Councilmember's Carney,
Gilbert, Nickerson, Dugan and Gericke voted aye. Councilmember's Haase, Niemann,
Donaldson and Gard voted no. Mayor Vavricek voted no. Motion failed.
Motion by Dugan, second by Haase to approve Resolution #2012-14 (B) to enforce the existing
contract. Upon roll call vote, Councilmember's Haase, Carney, Niemann, Donaldson, Dugan,
and Gard voted aye. Councilmember's Gilbert, Nickerson, and Gericke voted no. Motion
adopted.
PAYMENT OF CLAIMS:
Motion by Dugan, second by Gard to approve the Claims for the period of December 28, 2011
through January 10, 2012, for a total amount of $2,653,236.93. Unanimously approved.
ADJOURNMENT: The meeting was adjourned at 11:55 p.m.
a.,a.- 11.�.7
RaNae Edwards
City Clerk