04-28-2009 City Council Regular Meeting PacketCity of Grand Island
Tuesday, April 28, 2009
Council Session Packet
City Council:Mayor:
Margaret Hornady
City Administrator:
Jeff Pederson
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Scott Dugan
John Gericke
Peg Gilbert
Chuck Haase
Robert Meyer
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Jose Zapata
Call to OrderCity of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
Invocation
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item E1
Public Hearing Concerning Utility Easement - Wildwood Drive
and 1/2 Mile West of U.S. Hwy. 281 - Knuth
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Gary R. Mader
City of Grand Island City Council
Council Agenda Memo
From: Robert H. Smith, Asst. Utilities Director
Meeting: April 28, 2009
Subject: Acquisition of Utility Easement – Wildwood Drive and
½ Mile West of Hwy. 281 - Knuth
Item #’s: E-1 & G-5
Presenter(s): Gary R. Mader, Utilities Director
Background
Nebraska State Law requires that acquisition of property must be approved by City
Council. The Utilities Department needs to acquire an easement relative to the property
of Larry J. and Karen L. Knuth, located at Wildwood Drive and ½ mile west of U.S.
Hwy. 281, in Hall County, in order to have access to install, upgrade, maintain, and repair
power appurtenances, including lines and transformers.
Discussion
This easement will be used to place underground cable and conduit next to a driveway
into the property. The cable will attach to a pad-mounted transformer that will provide
electrical service to the property.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Make a motion to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Council approve the resolution for the
acquisition of the easement for one dollar ($1.00).
Sample Motion
Move to approve acquisition of the Utility Easement.
Item E2
Public Hearing for a Neighborhood Stabilization Community
Development Block Grant
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Joni Kuzma
City of Grand Island City Council
Council Agenda Memo
From: Joni Kuzma, Community Development Administrator
Council Meeting: April 28, 2009
Subject: Public Hearing on Community Development Block Grant
Neighborhood Stabilization Program Grant
Item #: E-2 & G-4
Presenter(s): Joni Kuzma, Community Development
Background
The Office of Housing and Urban Development has allocated $19.6 million of stimulus money to
the State of Nebraska for a Community Development Block Grant (CDBG) Neighborhood
Stabilization Program (NSP). Grants are available to local units of government and non-profit
agencies for the following eligible activities:
· Establish financing mechanisms for purchase and redevelopment of foreclosed homes
and residential properties.
· Purchase and rehabilitate homes and residential properties abandoned or foreclosed upon,
in order to sell, rent, or redevelop such homes and properties.
· Demolish blighted structures;
· Redevelop demolished or vacant properties.
The Housing and Economic Recovery Act, 2008 (HERA) preempts regular Community
Development Block Grant national objectives and directs that all funds be used to benefit
individuals at or below 120% of the area median income.
All project activities must meet one of the approved NSP national objectives:
1. LMMH National Objective: Provides or improves permanent residential structures that
will be occupied by a household whose income is at or below 120% of area median
income.
2. LMMA National Objective: Serves an area in which at least 51% of the residents have
incomes at or below 120% of the area median income (applies only to the demolition of
blighted structures with no NSP redevelopment activities).
3. LMMJ National Objective: Creates or retains jobs for persons whose household
income are at or below 120% of the median income.
4. LMMC National Objective: Serves a limited clientele (defined as providing shelter for
persons having special needs such as homeless shelters; convalescent homes; hospitals;
nursing homes; battered spouse shelters; halfway houses for run-away children, drug
offenders, or parolees; group homes for mentally retarded persons; and temporary
housing for disaster victims) whose incomes are at or below 120% of the area median
income.
The distribution of funds is as follows:
Need
Level
Geographic Area Proposed Amount of NSP
Funds to be Awarded
Proposed uses
1 Douglas and Sarpy Counties $6,432,000
2 Lancaster County $4,000,000
3 Cass, Hall, and Washington counties $3,000,000
4 Dakota, Red Willow, Saunders, and
Scotts Bluff counties
$2,500,000
5 Adams, Antelope, Buffalo, Burt,
Chase, Cheyenne, Clay, Colfax,
Cuming, Dawes, Dawson, Dixon,
Dodge, Franklin, Gage, Garfield,
Hamilton, Harlan, Holt, Howard,
Jefferson, Johnson, Kearney, Keith,
Kimball, Loup, Madison, Merrick,
Nemaha, Nuckolls, Otoe, Perkins,
Phelps, Pierce, Platte, Polk,
Richardson, Saline, Seward, Stanton,
Thayer, and Thurston counties
$2,100,000
(A) Establishing financing
mechanisms for purchase and
redevelopment of foreclosed
homes and residential properties;
(B) Purchasing and rehabilitating
homes and residential properties
abandoned or foreclosed;
(D) Demolishing blighted
structures; or
(E) Redeveloping demolished or
vacant properties
Subrecipient (NDED grantee) $784,000 General Administration
State Administration $784,000 N/A
The Counties encompassing Lincoln and Omaha receive a “set aside” allocation and do not have
to compete for funding. Hall County rated 3rd in need level for funding based on zip code areas
68801 and 68803 and are competing with Cass and Washington Counties for $3,000,000.
Counties in need levels 4 and 5 will all apply competitively against one another. Grant
applications are due May 6, 2009, with an anticipated Release of Funds date of October 30,
2009. All funds have to be expended within two years of the October award date. No cash match
is required.
As with all CDBG grants, a public hearing is required prior to submission of an application to the
Nebraska Department of Economic Development to solicit public comment and input into the
proposed project and grant application. A legal notice was published in the April 18, 2009 Grand
Island Independent with notice of this council meeting and contact information for written
comments.
Discussion
Hall County is eligible in category 3 and is considered an Area of Greatest Need based on the
average per month foreclosures by zip code area (68801/68803). Grand Island is applying for
$993,712, which includes funding for property acquisition, demolition, redevelopment of new
housing, housing administration, and general administration. The project proposes to acquire and
demolish up to six (6) blighted structures. To qualify as blighted, a structure must meet a
predetermined set of guidelines established by the Department of Economic Development for
this program and must be purchased at a discount price. Each lot will be redeveloped with new
housing and sold to first-time homebuyers, who can apply for Down Payment Assistance through
this grant. The Federal Register directs that the sales price of homes redeveloped with NSP funds
shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such
home or property to a decent, safe, and habitable condition. All funds from the sale of each
property will return to the City as program income and reinvested into similar projects.
Project partners include Habitat for Humanity and the Housing Development Corporation.
Habitat for Humanity will be eligible to redevelop 3 of the properties. The Housing Development
Corporation will provide demolition inspection services as needed and will be eligible to
redevelop 3 of the properties. Copies of the grant guidelines, the NSP Federal Register, and the
grant application are available for review in the Community Development office.
ALTERNATIVES
It appears that the Council has the following alternatives concerning the issue at hand. The
Council may:
1. Approve the Neighborhood Stabilization Program grant application and authorize the
Mayor to sign all related documents
2. Refer the issue to a Committee.
3. Postpone the issue to a later date.
Recommendation
City Administration recommends that Council approves the Neighborhood Stabilization Program
grant application and authorizes the Mayor to sign all related documents.
Sample Motion
Move to approve the Neighborhood Stabilization Program grant application and authorize the
Mayor to sign all related documents
Item E3
Public Hearing Concerning Annexation of Property Located South
of Case New Holland and West of Highway 281
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Chad Nabity
City of Grand Island City Council
Council Agenda Memo
From: Regional Planning Commission
Meeting: April 28, 2009
Subject: Annexation Public Hearing, Ordinance (First Reading)
Item #’s: E-3 & F-1
Presenter(s): Chad Nabity AICP, Regional Planning Director
Background
Annexation of land, located in the SE ¼ of the NE ¼ of 25-11-10 (south of Case New Holland
and west of U.S. Highway 281) into the Grand Island City Limits see the attached map.
Case New Holland, owner of this property, petitioned Council to consider annexation of
this property. City Council has already approved a request to rezone the property from
TA Transitional Agriculture to M1 Light Manufacturing.
Discussion
On March 4, 2009 the Hall County Regional Planning Commission held a public hearing
before considering this matter.
No members of the public testified at the hearing held by the Regional Planning
Commission.
This property is adjacent to and contiguous with the Grand Island City Limits. It is
entirely surrounded by the City Limits.
Water is available to the property. Sewer is available to the property. This property is
within the Grand Island Utilities Electrical Service District. This property is within the
Grand Island School District. Annexing this property will not impact the two mile
extraterritorial jurisdiction of Grand Island.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Approve the annexation as presented
2. Modify the annexation to meet the wishes of the Council
3. Table the issue
Recommendation
A motion was made by Haskins, and seconded by Aguilar to recommend approval of the
Annexation as it meets the City Comprehensive Plan.
A roll call vote was taken and the motion passed with 7 member’s present voting favor
(Aguilar, Amick, Ruge, Hayes, Haskins, Bredthauer, Snodgrass).
Sample Motion
Move to approve the annexation as requested.
Item E4
Public Hearing Concerning Acquisition of Utility Easements for
North Route Transmission Line Work
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Gary R. Mader;Wes Nespor
City of Grand Island City Council
Council Agenda Memo
From: Gary R. Mader, Utilities Director
Wesley Nespor, Asst. City Attorney/Purchasing
Meeting: April 28, 2009
Subject: Approval to Proceed with Transmission Line Easement
Acquisitions – North Route Transmission Line Work
Item #’s: E-4 & G-7
Presenter(s): Gary R. Mader, Utilities Director
Background
The Electric Department has electric distribution substations connected at various
distances along a 115 kV transmission loop. The loop generally runs along the outer edge
of the urban area, providing power to the substations and providing power supply
redundancy by use of the looped configuration. A map of the transmission system is
attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800
volts for distribution to individual customers across the City. Substations “E,” located
north of Swift on the east side of the loop, and “F,” located north of Menards on the west
side of the loop, are the newest substations. They were placed in initial service in 2001,
and completed in 2007.
Power Generation and regional interconnections to NPPD are concentrated on the south
and east side of the transmission system loop. The northern portion of the transmission
loop has no interconnections. And while it can sustain a single line segment loss
contingency, any additional failure could result in loss of several major substations,
resulting in power loss to major portions of the City. With power plant and regional grid
interconnections, the southern portion of the transmission loop has more redundancy.
Recognizing that the City is continuing to grow, that future transmission line construction
will occur and that reliability improvement is always important, Substations “E” and “F”
were constructed with provisions to accept additional 115 kV transmission
interconnections. In the long range plan of the Electric Department, these substations are
designed for new transmission interconnections as future load growth may require.
Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and
Substation System Study for the City of Grand Island Utilities Department (GIUD).
Various alternatives and solutions were analyzed for the logical and economic expansion
of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public
Power District (NPPD), substations, distribution, and communications. The system study
period was ten (10) years (2006-2016) taking into account projected City expansion and
load growth. When fully implemented, the major substation and transmission
requirements should be satisfied through 2027.
The Transmission and Substation System Study was completed in 2007 and contained a
detailed analysis of previous studies and reports; surrounding area power provider plans;
State wide planned improvements; Contractual obligations; the City’s comprehensive
development plans; system capabilities and capacities; land use issues; and schedule
related items. The study resulted in recommendations to expand the GIUD’s transmission
system to serve load growth and assure reliability. The results of the Transmission and
Substation System Study were presented to the Grand Island City Council on January 8,
2008.
Discussion
One of the system improvements identified in the Transmission and Substation System
Study was the need for providing a second 115 kV power supply to GIUD’s Substation F.
In the study it was recommended that a new 115 kV line be constructed to connect the
open 115 kV transmission bay at GIUD's Substation F to the Nebraska Public Power
District (NPPD) St. Libory Junction northwest of the City. The new 115 kV line would
be approximately 7 miles in length and would require that GIUD select a route for the
new line and obtain new transmission line easements necessary to construct the line.
This new transmission line would improve the reliability of the entire GUID transmission
system by providing an additional connection to the regional electric grid, to the north.
A comprehensive field study was conducted of the area between the existing GIUD
Substation F and the NPPD St. Libory Junction Substation Site. As a result of the field
analysis, five alternate routes were selected and evaluated for the project. The evaluation
of each route included a technical evaluation, a land use evaluation, an environmental
evaluation, and an economic evaluation. Alternate Route 5 was evaluated as the most
effective and efficient route available.
A presentation was made during a Council Study Session on April 21, 2009 summarizing
the findings of the route study.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to a future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Utilities Department and Advantage
Engineering be authorized to proceed with the engineering and other services for this
project according to the terms of the agreement entered into with Advantage Engineering.
Additionally, City Administration recommends that the Utilities Department be
authorized to proceed with all permitting and regulatory actions necessary for the project
and to take the necessary steps to acquire the interests in real estate needed to complete
the project.
Sample Motion
Move to authorize the Utilities Department and Advantage Engineering to take the
necessary steps to complete the North Route Transmission Line project.
Item F1
#9214 - Consideration of Annexation of Property Located South of
Case New Holland and West of Highway 281 (First Reading)
This item relates to the aforementioned Public Hearing Item E-3.
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Chad Nabity
City of Grand Island City Council
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
ORDINANCE NO. 9214
An ordinance to extend the boundaries and include within the corporate limits of,
and to annex into the City of Grand Island, Nebraska, a tract of land West of U.S. Highway 281
in the Southeast Quarter of the Northeast Quarter (SE1/4NE1/4) of Section Twenty-five (25) in
Township Eleven (11) North, Range Ten (10) West of the 6th P.M. in Hall County, Nebraska as
more particularly described hereinafter and as shown on Exhibit “A” attached hereto; to provide
service benefits thereto; to repeal any ordinance or resolutions or parts of thereof in conflict
herewith; to provide for publication in pamphlet form; and to provide the effective date of this
ordinance.
WHEREAS, after public hearing on March 4, 2009, the Regional Planning Commission
recommended the approval of annexing into the City of Grand Island, the following tract of land
in Hall County, Nebraska:
A tract of land located in part of the Southeast Quarter of the Northeast Quarter
(SE1/4NE1/4) of Section Twenty-five (25), Township Eleven (11), North, Range Ten (10) West
of the 6th p.m., in Hall County, Nebraska, except a certain tract more particularly described in
quit claim deed recorded to the State of Nebraska in book 141, page 258, and except a certain
tract more particularly described in appraiser's report recorded in book 9, page 67, and more
particularly described as follows:
* This Space Reserved For Register of Deeds *
ORDINANCE NO. 9214 (Cont.)
- 2 -
Commencing at the east quarter corner of Section 25-T11N-R10W; thence on an assumed
bearing of S88°08'57"W upon and along the south line of the SE1/4NE1/4 a distance of 132.51
feet to the northeast corner of Lot 2, Pedcor Second Subdivision, an addition to the City of Grand
Island, Nebraska, said point also being the westerly right-of-way (ROW) line of US Highway
#281 and the point of beginning; thence S88°09'55"W upon and along the south line of said
SE1/4NE1/4, said line also being the north line of said Lot 2 a distance of 1189.55 feet to the
southwest corner of said SE1/4NE1/4, said point also being the northwest corner of said Lot 2;
thence N01°24'18"W upon and along the west line of said SE1/4, NE1/4 a distance of 1322.52
feet to the northwest corner of said SE1/4NE1/4; thence N88°18'32"E upon and along the north
line of said SE1/4NE1/4 a distance of 860.86 feet to said westerly row line of US Highway #281;
thence S21°57'28"E along and upon said west row line a distance of 398.06 feet to a point of
curvature; thence upon and along said westerly row line around a curve in a clockwise direction
having a delta angle 20°00'15", an arc length 968.79 feet, a radius 2774.79, a chord bearing
S12°42'30"E with a chord distance of 963.87 feet to the point of beginning. Said tract contains a
calculated area of 1,412,514.37 square feet or 32.427 acres more or less
WHEREAS, after public hearing on April 28, 2009, the City Council of the City
of Grand Island found and determined that such annexation be approved; and
WHEREAS, on April 28, 2009, the City Council of the City of Grand Island
approved such annexation on first reading.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA:
SECTION 1. It is hereby found and determined that:
(A) The above-described tracts of land are urban or suburban in character, and
that the subject properties are contiguous or adjacent to the corporate limits of said City.
(B) The subject lands will receive the material benefits and advantages currently
provided to land within the City's corporate limits including, but not limited to police, fire,
emergency services, street maintenance, and utilities services upon annexation to the City of
Grand Island, Nebraska, and that City electric, water and sanitary sewer service is available, or
will be made available, as provided by law.
ORDINANCE NO. 9214 (Cont.)
- 3 -
(C) The various zoning classifications of the land shown on the Official Zoning
Map of the City of Grand Island, Nebraska, are hereby confirmed and that the extraterritorial
zoning jurisdiction is extended as allowed by law.
(D) There is unity of interest in the use of the said tract of land, lots, tracts,
highways and streets (lands) with the use of land in the City, and the community convenience
and welfare and in the interests of the said City will be enhanced through incorporating the
subject land within the corporate limits of the City of Grand Island.
(E) The plan for extending City services adopted by the City Council by the
passage and approval of Resolution No. 2009-58 is hereby approved and ratified as amended.
SECTION 2. The boundaries of the City of Grand Island, Nebraska, be and are
hereby extended to include within the corporate limits of the said City the contiguous and
adjacent tract of land located within the boundaries described above.
SECTION 3. The subject tract of land is hereby annexed to the City of Grand
Island, Hall County, Nebraska, and said land and the persons thereon shall thereafter be subject
to all rules, regulations, ordinances, taxes and all other burdens and benefits of other persons and
territory included within the City of Grand Island, Nebraska.
SECTION 4. The owners of the land so brought within the corporate limits of the
City of Grand Island, Nebraska, are hereby compelled to continue with the streets, alleys,
easements, and public rights-of-way that are presently platted and laid out in and through said
real estate in conformity with and continuous with the streets, alleys, easements and public
rights-of-way of the City.
SECTION 5. That a certified copy of this Ordinance shall be recorded in the
office of the Register of Deeds of Hall County, Nebraska and indexed against the tracts of land.
ORDINANCE NO. 9214 (Cont.)
- 4 -
SECTION 6. Upon taking effect of this Ordinance, the services of said City shall
be furnished to the lands and persons thereon as provided by law, in accordance with the Plan for
Extension of City Services adopted herein.
SECTION 7. That all ordinances and resolutions or parts thereof in conflict
herewith are hereby repealed.
SECTION 8. This ordinance shall be in full force and effect from and after its
passage, approval and publication, in pamphlet form, as provided by law.
Enacted: April 28, 2009.
____________________________________
Margaret Hornady, Mayor
Attest:
________________________________
RaNae Edwards, City Clerk
ORDINANCE NO. 9214 (Cont.)
- 5 -
Item F2
#9215 - Consideration of Lease-Purchase Agreement, Ground
Lease and Escrow Agreement for Building and Related
Improvements to Serve as a Recreational Facility for State Fair
Activities (First Reading)
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Jeff Pederson
City of Grand Island City Council
Council Agenda Memo
From: Jeff Pederson, City Administrator
Meeting: April 28, 2009
Subject: Lease-Purchase Agreement, Ground Lease and Escrow
Agreement for Building and Related Improvements to
Serve as a Recreational Facility for State Fair Activities
Item #’s: F-2
Presenter(s): Jeff Pederson, City Administrator
Background
The City Council has heretofore taken action intended to facilitate the contribution of the
sum of $5 million towards the relocation of the Nebraska State Fair to Grand Island. That
action includes the passage on September 9, 2008 of Ordinance No. 9189 implementing
an occupation tax upon the sale of prepared food and non-alcoholic beverages. With the
collection of the occupation tax to occur over a period of time, it becomes necessary to
institute some form of borrowing in order to meet the requirements of LB 1116 that the
$5 million be available for State Fair construction at the Fonner Park site.
Discussion
In order to contribute $5 million to the State Fair relocation effo rt, it is necessary for the
City to own an asset of commensurate value. Research of financing and asset ownership
options has resulted in a determination that the most workable and compliant means
available to the City to make the contribution is a Lease-Purchase Agreement for facility
construction. The facility that will be leased by the City, and which will be owned by the
City upon the final lease payment, is a 70,000 sq. ft. building that will be located in the
North-Central area of the Fonner Park campus. The building will function as an
Exposition Building during the State Fair run, and will be available to the City to use as a
community recreational facility for the remainder of the year.
The attached Ordinance authorizes the City to enter into a Lease-Purchase Agreement
with Wells Fargo Brokerage Services, LLC. to acquire, construct, and lease the 70,000
sq. ft. facility. Wells Fargo and the City will also enter into an Escrow Agreement, (draft
attached), whereby a construction account will be created to be drawn upon as
construction costs accrue.
Attached also is the current draft of the Ground Lease Agreement between Fonner Park
and the City granting use of a site on Fonner Park for placement of the building. Both of
these Agreements are nearly complete, and will be complete at the time of the third
reading of this Ordinance. A copy of the Lease-Purchase Agreement is also attached for
Council information and review. This Ordinance will be read at three consecutive
Regular City Council meetings.
Please note that the building is referred to in the Ordinance as a “Recreational Facility for
the City of Grand Island”. This reference is used at the advice of Bond Counsel in order
to state the clearest public usage intent and benefit in accordance with IRS requirements
for eligibility for tax-exempt financing.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
Approve the Agreements.
Sample Motion
Move to approve Ordinance No. 9215 authorizing the Lease-Purchase Agreement,
Ground Lease and Escrow Agreement and authorize execution.
Initial Presentation Draft
LEASE-PURCHASE AGREEMENT
Between
WELLS FARGO BROKERAGE SERVICES, LLC
As Lessor
and the
The City of Grand Island, Nebraska
As Lessee
Dated as of the first day of July, 2009
LESSOR’S ORIGINAL
THIS LEASE-PURCHASE AGREEMENT dated as of the first day of July, 2009
(the Lease), by and between WELLS FARGO BROKERAGE SERVICES, LLC, as lessor
(Lessor), whose address is 608 Second Avenue South – 10th Floor; MAC: N9303-105,
Minneapolis, MN 55479, Attention Public Finance, and the City of Grand Island, Nebraska, as
lessee (Lessee) whose address is P.O. Box 1968, 100 East First Street, Grand Island, Nebraska
68802-1968.
WITNESSETH:
WHEREAS, Lessee is authorized under the terms of Section 13-304, R.R.S. Neb.
2007 to acquire, hold, improve and operate a recreational facility and to acquire such property by
entering into lease-purchase agreement under Section 19-2421, R.R.S. Neb. 2007; and
WHEREAS, Lessee, Lessor and Hall County Livestock Improvement
Association (the “Association”) have entered into a Ground Lease dated as of July 1, 2009 (the
Ground Lease), whereby the Association has leased to Lessor and Lessee certain land described
therein and as set forth on Exhibit A hereto (the Land); and
WHEREAS, Lessor has agreed to acquire and construct on the Land certain
improvements constituting a building and related improvements on the Land (the
“Improvements”) to Lessee, pursuant to this Lease in accordance with Lessee’s requirements and
specifications; and
WHEREAS, Lessee has determined that it is necessary and desirable for it to
obtain lease-purchase financing under this Lease for the construction and acquisition of such
Improvements upon the Land;
NOW THEREFORE, in the joint and mutual exercise of their powers, and in
consideration of the mutual covenants herein contained, the parties hereto recite and agree as
follows:
2
ARTICLE I
DEFINITIONS AND EXHIBITS
Section 1.1.Definitions. Unless the context otherwise requires, the terms
defined in this Section shall, for all purposes of this Lease, have the meanings herein specified.
Closing Date: The date upon which the amount specified in Section 2.3 is
deposited with the Escrow Agent.
Escrow Agent: Wells Fargo Bank, National Association, acting as escrow agent,
pursuant to the terms and conditions of the Escrow Agreement, or any successor appointed and
so acting under the terms of the Escrow Agreement.
Escrow Agreement: The Escrow Agreement dated as of the date hereof, by and
between the Escrow Agent, Lessee, and Lessor and any replacement thereof or supplement
thereto.
Fiscal Year: The twelve month fiscal period of Lessee which commences on
October 1 in every year and ends on the following September 30.
Ground Lease: The Ground Lease dated as of the date hereof, by and between the
Association, Lessor and Lessee, whereby the Association has leased the Land to Lessee and
Lessor.
Independent Counsel: An attorney duly admitted to the practice of law before the
highest court of the State who is not a full-time employee of Lessor or Lessee.
Improvements: The improvements described on Exhibit A hereto, and all repairs,
replacements, substitutions and modifications thereto.
Interest: The portion of any Rental Payment designated as and comprising
interest as shown in the attached Exhibit B.
Land: The land described on Exhibit A hereto.
Net Proceeds: Any insurance proceeds or condemnation award, paid with respect
to the Project, remaining after payment therefrom of all expenses incurred in the collection
thereof.
Payment Date: The date upon which any Rental Payment is due and payable as
provided in Exhibit B.
Permitted Encumbrances: As of any particular time: (i) liens for taxes and
assessments not then delinquent, or which Lessee may, pursuant to provisions of Section 7.3
hereof, permit to remain unpaid, (ii) this Lease and the Ground Lease and amendments to either
thereof, (iii) Lessor’s interest in the Project, and (iv) any construction, mechanic’s, laborer’s,
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materialmen’s, supplier’s or vendor’s lien or right not filed or perfected in the manner prescribed
by law which Lessee may, pursuant to Article VIII hereof, permit to remain unpaid.
Principal: The portion of any Rental Payment designated as principal in the
attached Exhibit B.
Project: The interest of Lessor in the Land under the Ground Lease and the
Improvements.
Purchase Option Price: With respect to the Project, as of the Payment Dates
specified in the attached Exhibit B, the amount so designated and set forth opposite such date.
Rental Payment: The payment due from Lessee to Lessor on each Payment Date
during the Term of this Lease, as shown on Exhibit B.
State: The State of Nebraska.
State and Federal Law or Laws: The Constitution and any law of the State and
any rule or regulation of any agency or political subdivision of the State; and any law of the
United States, and any rule or regulation of any federal agency.
Term of this Lease or Lease Term: The period during which this Lease is in
effect as specified in Section 4.1.
Certain other terms used in this Lease are defined in parentheses elsewhere in this
Lease.
Section 1.2. Exhibits.
The following Exhibits are attached to and by reference made a part of this Lease:
Exhibit A: A description of the Land and Improvements subject to this Lease.
Exhibit B: A schedule indicating the date and amount of each Rental Payment
coming due during the Lease Term, the amount of each Rental Payment comprising Principal
and Interest, and the price at which Lessee may exercise its option to purchase Lessor’s interest
in the Project in accordance with Article X.
Exhibit C: A certificate of officers of Lessee as to certain matters relating to the
Lease, the Ground Lease and the Escrow Agreement.
Exhibit D: A form of opinion of counsel to Lessee.
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ARTICLE II
REPRESENTATIONS, COVENANTS AND WARRANTIES
Section 2.1. Representations, Covenants and Warranties of Lessee. Lessee
represents, covenants and warrants as follows:
(a) Lessee is a duly formed and validly existing political subdivision of
the State, governed by the Constitution and laws of the State.
(b) Lessee is authorized under the Constitution and laws of the State
(specifically Section 19-2421, R.R.S. Neb. 1997, referred to herein as the Act) to
enter into this Lease and the Escrow Agreement and the transactions
contemplated thereby, and to perform all of its obligations thereunder.
(c) The officers of Lessee executing this Lease, the Ground Lease and the
Escrow Agreement have been duly authorized to execute and deliver such
documents under the terms and provisions of an ordinance of Lessee’s governing
body, or by other appropriate official action.
(d) In authorizing and executing this Lease, Lessee has complied with all
public bidding and other State and Federal Laws applicable to this Lease and the
acquisition of the Improvements by Lessee.
(e) Lessee will not pledge, mortgage or assign this Lease, or its duties and
obligations hereunder to any other person, firm or corporation except as provided
under the terms of this Lease.
(f) Lessee will use the Project during the Lease Term only to perform
essential governmental functions or governmental and proprietary functions.
(g) Lessee will take no action that would cause the Interest portion of the
Rental Payments to become includable in gross income of the recipient for federal
income tax purposes under the Internal Revenue Code of 1986, as amended (the
“Code”) and Treasury Regulations promulgated thereunder (the “Regulations”),
and Lessee will take and will cause its officers, employees and agents to take all
affirmative actions legally within its power necessary to ensure that the Interest
portion of the Rental Payments does not become includable in gross income of the
recipient for federal income tax purposes under the Code and Regulations.
(h) Lessee has funds available and properly appropriated or subject to
appropriation to pay Rental Payments until the end of the current Fiscal Year and
under the terms of the Act the Lessee is (i) authorized to acquire title to the
Improvements, (ii) the term of this Lease is not restricted to a single year and (iii)
this Lease may provide for the purchase of the Improvements in installment
payments.
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(i) Lessee will execute and deliver on the Closing Date a certificate
substantially in the form of Exhibit C hereto, and Lessee will cause its legal
counsel to provide a legal opinion to Lessor substantially in the form of Exhibit D
hereto, dated as of the Closing Date.
Section 2.2. Representations, Covenants and Warranties of Lessor. Lessor
represents, covenants and warrants as follows:
(a) Lessor is a limited liability company duly organized, existing and in
good standing; has power to enter into this Lease, the Ground Lease and the
Escrow Agreement; is possessed of full power to own and hold real and personal
property, and to lease the same; and has duly authorized the execution and
delivery of this Lease, the Ground Lease and the Escrow Agreement.
(b) Neither the execution and delivery of this Lease, the Ground Lease
and the Escrow Agreement, nor the fulfillment of or compliance with the terms
and conditions thereof, nor the consummation of the transactions contemplated
thereby, conflicts with or results in a breach of the terms, conditions or provisions
of any restriction or any agreement or instrument to which Lessor is now a party
or by which Lessor is bound, constitutes a default under any of the foregoing, or
results in the creation or imposition of any lien, charge or encumbrance
whatsoever upon any of the property or assets of Lessor, or upon the Project
except Permitted Encumbrances.
Section 2.3. Deposit of Funds. Upon execution and delivery of this Lease and the
Ground Lease, Lessor shall deposit the sum of $5,000,000 into escrow pursuant to the terms and
conditions of the Escrow Agreement which amount shall be disbursed by the Escrow Agent in
payment of the costs of the Improvements in accordance with this Lease and the Escrow
Agreement.
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ARTICLE III
LEASE OF PROJECT
Section 3.1. Lease. (a) Lessor hereby leases the Improvements (as and when
constructed and acquired under the terms of this Lease and as paid for from amounts deposidted
by Lessor under the Escrow Agreement) to Lessee, and Lessee hereby leases the Improvements
from Lessor, upon the terms and conditions set forth in this Lease. Lessee hereby confirms the
rights of Lessor to construct, acquire, own and operate the Improvements as set forth in the
Ground Lease. Such rights are hereby acknowledged to include full access and use by Lessor for
the location, construction, acquisition, installation, operation and maintenance of the
Improvements. The Improvements as financed pursuant hereto are hereby acknowledged to be the
separate property of the Lessor, subject to the rights provided for Lessee under the terms of this
Lease.
(b) Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, upon and
subject to the terms and conditions hereinafter set forth, the Improvements, as and to the extent
constructed and acquired under the terms of this Lease. Lessor shall lease the Improvements to
Lessee (as and to the extent constructed or acquired) for a term beginning on date hereof and ending
on ____________, 20__. Until payment in full of all Rental Payments due hereunder the
Improvements shall remain the property of the Lessor and shall not become a part of the real estate
described on Exhibit A hereto attached. Upon the final payment of all rental obligations under this
Lease the Improvements shall be conveyed to Lessee by the Lessor by quitclaim deed and bill of
sale to be executed and delivered by Lessor upon the written request of Lessee.
(c) Lessor and Lessee agree that, as and to the extent that this Lease may be
regarded as relating to goods, goods which may become fixtures, fixtures, furniture or equipment,
this Lease shall constitute a “finance lease” within the meaning of such term as used in Article 2A
of the Nebraska Uniform Commercial Code. In such connection Lessee acknowledges (a) that
neither Lessor nor the Escrow Agent has selected, manufactured or supplied any goods constituting
the Improvements, (b) that Lessor is acquiring the Improvements in connection with this Lease and
(c) that Lessee has received a copy of the contract with the contractor constructing the
Improvements prior to the execution of this Lease. Lessee further acknowledges that Lessee has
been informed in writing before the execution of this Lease that Lessee is entitled under said Article
2A to the promises and warranties provided by such contractor and any other person supplying the
Improvements or items incorporated therein and that Lessee may communicate with any such
person and obtain a complete and accurate statement of any such promises and warranties, including
any disclaimers and limitations of them or of remedies.
Section 3.2. Possession and Enjoyment. Lessor hereby covenants to provide
Lessee during the Term of this Lease with the quiet use and enjoyment of the Project, and Lessee
shall during the Term of this Lease peaceably and quietly have and hold and enjoy the Project,
without suit, trouble or hindrance from Lessor, except as expressly set forth in this Lease. Lessor
will, at the request of Lessee and at Lessee’s cost, join in any legal action in which Lessee asserts
its right to such possession and enjoyment to the extent Lessor lawfully may do so.
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Section 3.3. Lessor Access to Project. Lessee agrees that Lessor shall have the
right at all reasonable times to examine and inspect the Project. Lessee further agrees that Lessor
shall have such rights of access to the Project as may be reasonably necessary to cause the proper
maintenance of the Project in the event of failure by Lessee to perform its obligations hereunder.
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ARTICLE IV
TERM OF LEASE
Section 4.1. Lease Term. This Lease shall be in effect for a Term commencing
upon its date of execution and ending as provided in Section 4.5.
Section 4.2. Agreement Concerning Rental Payments. Lessee covenants that the
Rental Payments do not exceed any limitation imposed by law. Until all Rental Payments have
been made in full, Lessee covenants and agrees to make and continue to make for so long as
permitted by law an annual levy on the taxable property within its geographical area pursuant to
Section 16-702, R.R.S. Neb. 2007, which will be sufficient, along with any other funds available
for the purpose, specifically including amounts collected from sales taxes imposed under the
Local Option Revenue Act (Sections 77-27,142 to 77-27,148, R.R.S. Neb. 2003, as amended)
and any occupation taxes designated for such purpose, to enable Lessee to make all of the Rental
Payments and to perform all other obligations of Lessee under this Lease and to take all action
required to provide funds to make the Rental Payments and perform such obligations as herein
required.Lessee covenants and agrees that throughout the term of this Lease it will observe all
budget, tax and spending limitations now or hereafter imposed by law in such a manner that a
sufficient portion of its tax levy or other monies shall be lawfully available to make all the Rental
Payments and perform all other obligations of Lessee hereunder. Lessee agrees that commencing
with its budget for the next-ensuing fiscal year it will include amounts sufficient to make the Rental
Payments as the same fall due in its annual budget and appropriations. Lessee covenants and agrees
that it shall neither take any action nor omit to take such action which such action or omission
would have the affect of causing the interest portion of the Rental Payments due under the terms of
this Lease and identified as such herein to be no longer excludable from gross income under the
Internal Revenue Code of 1986, as amended, (the Code).
Section 4.3. Intent to Continue Lease Term; Appropriations. As authorized under
the terms of Section 19-2421, R.R.S. Neb. 2007, Lessee hereby obligates itself to continue this
Lease for its entire Term and to pay all Rental Payments specified in Exhibit B, as the
installment payments related to the purchase of the Improvements. The officer of Lessee
responsible for budget preparation will include in the budget request for each Fiscal Year the
Rental Payments to become due in such Fiscal Year, and will use all reasonable and lawful
means available to secure the appropriation of money for such Fiscal Year sufficient to pay the
Rental Payments coming due therein.
Section 4.4. Termination of Lease Term. The Term of this Lease will terminate
upon the occurrence of the first of the following events:
(a) the exercise by Lessee of its option to purchase Lessor’s interest in the
Project pursuant to Article X;
(c) a default by Lessee and Lessor’s election to terminate this Lease
pursuant to Article XII; or
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(d) the payment by Lessee of all Rental Payments and other amounts
authorized or required to be paid by Lessee hereunder.
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ARTICLE V
RENTAL PAYMENTS
Section 5.1. Rental Payments. Lessee agrees to pay Rental Payments during the
Term of this Lease, in the amounts and on the dates specified in Exhibit B. All Rental Payments
shall be paid to Lessor at its offices at the address specified in the first paragraph of this Lease, or
to such other person or entity to which Lessor has assigned such Rental Payments as specified in
Article XI, at such place as such assignee may from time to time designate by written notice to
Lessee. Lessee shall pay the Rental Payments exclusively from moneys legally available
therefor, in lawful money of the United States of America, to Lessor or, in the event of
assignment of the right to receive Rental Payments by Lessor, to its assignee. Interest shall
accrue from the time of the deposit into escrow of funds by the Lessor.
Section 5.2. Current Expense. The obligations of Lessee under this Lease,
including its obligation to pay the Rental Payments due with respect to the Project, in any Fiscal
Year for which this Lease is in effect and shall constitute a current expense of Lessee for such
Fiscal Year.
Section 5.3. Interest Component. A portion of each Rental Payment is paid as
and represents the payment of Interest. Exhibit B sets forth the Interest component of each
Rental Payment.
Section 5.4. Rental Payments to be Unconditional. In accordance with the terms
of the Act, the obligation of the Lessee to make Rental Payments shall be binding upon the
Lessee from year to year. The obligation of Lessee to make Rental Payments or any other
payments required hereunder shall be absolute and unconditional in all events. Notwithstanding
any dispute between Lessee and Lessor or any other person, Lessee shall make all Rental
Payments and other payments required hereunder when due and shall not withhold any Rental
Payment or other payment pending final resolution of such dispute nor shall Lessee assert any
right of set-off or counterclaim against its obligation to make such Rental Payments or other
payments required under this Lease. Lessee’s obligation to make Rental Payments or other
payments during the Lease Term shall not be abated through accident or unforeseen
circumstances (including, without limitation, the occurrence of any environmental liability).
However, nothing herein shall be construed to release Lessor from the performance of its
obligations hereunder; and if Lessor should fail to perform any such obligation, Lessee may
institute such legal action against Lessor as Lessee may deem necessary to compel the
performance of such obligation or to recover damages therefor.
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ARTICLE VI
INSURANCE AND NEGLIGENCE
Section 6.1. Liability Insurance. Upon receipt of possession of the Project,
Lessee shall take such measures as may be necessary to insure that any liability for injuries to or
death of any person or damage to or loss of property arising out of or in any way relating to the
condition or the operation of the Project or any part thereof, is covered by a blanket or other
general liability insurance policy maintained by Lessee. The Net Proceeds of all such insurance
shall be applied toward extinguishment or satisfaction of the liability with respect to which any
Net Proceeds may be paid.
Section 6.2. Property Insurance. Lessee shall have and assume the risk of loss
with respect to the Project. Lessee shall procure and maintain continuously in effect during the
Term of this Lease, all-risk insurance, subject only to the standard exclusions contained in the
policy, in such amount as will be at least sufficient so that a claim may be made for the full
replacement cost of any part of the Project damaged or destroyed and to pay the applicable
Purchase Option Price of the Project. Such insurance may be provided by a rider to an existing
policy or under a separate policy. Such insurance may be written with customary deductible
amounts and need not cover land and building foundations. The Net Proceeds of insurance
required by this Section shall be applied to the prompt repair, restoration or replacement of the
Project, or to the purchase of the Project, as provided in Section 6.6. Any Net Proceeds not
needed for those purposes shall be paid to Lessee.
Section 6.3. Worker’s Compensation Insurance. If required by State law, Lessee
shall carry worker’s compensation insurance covering all employees on, in, near or about the
Project, and upon request, shall furnish to Lessor certificates evidencing such coverage
throughout the Term of this Lease.
Section 6.4. Requirements For All Insurance. All insurance policies (or riders)
required by this Article shall be taken out and maintained with responsible insurance companies
organized under the laws of one of the states of the United States and qualified to do business in
the State; and shall contain a provision that the insurer shall not cancel or revise coverage
thereunder without giving written notice to the insured parties at least ten (10) days before the
cancellation or revision becomes effective. All insurance policies or riders required by Sections
6.1 and 6.2 shall name Lessee and Lessor as insured parties, and any insurance policy or rider
required by Section 6.3 shall name Lessee as insured party. Lessee shall deposit with Lessor
policies (and riders) evidencing any such insurance procured by it, or a certificate or certificates
of the respective insurers stating that such insurance is in full force and effect. Before the
expiration of any such policy (or rider), Lessee shall furnish to Lessor evidence that the policy
has been renewed or replaced by another policy conforming to the provisions of this Article,
unless such insurance is no longer obtainable in which event Lessee shall notify Lessor of this
fact.
Section 6.5. Lessee’s Negligence. Lessee assumes all risks and liabilities,
whether or not covered by insurance, for loss or damage to the Project and for injury to or death
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of any person or damage to any property, whether such injury or death be with respect to agents
or employees of Lessee or of third parties, and whether such property damage be to Lessee’s
property or the property of others, which is proximately caused by the negligent conduct of
Lessee, its officers, employees and agents. Lessee hereby assumes responsibility for and agrees
to reimburse Lessor for all liabilities, obligations, losses, damages, penalties, claims, actions,
costs and expenses (including reasonable attorney’s fees, to the extent permitted by law) of
whatsoever kind and nature, imposed on, incurred by or asserted against Lessor that in any way
relate to or arise out of a claim, suit or proceeding based in whole or in part upon the negligent
conduct of Lessee, its officers, employees and agents, to the maximum extent permitted by law.
Section 6.6. Damage to or Destruction of Project. If all or any part of the Project
is lost, stolen, destroyed or damaged beyond repair, Lessee shall as soon as practicable after such
event replace the same at Lessee’s sole cost and expense with property of equal or greater value
to the Project immediately prior to the time of the loss occurrence, such replacement to be
subject to Lessor’s reasonable approval, whereupon such replacement shall be substituted in this
Lease by appropriate endorsement. The Net Proceeds of all insurance payable with respect to the
Project shall be available to Lessee and shall be used to discharge Lessee’s obligation under this
Section. Until all obligations of the Lessee to make Rental Payments under this Lease have been
satisfied in full, the Lessee shall make restoration and repair of the Project in such manner as will
prevent any termination of the Ground Lease.
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ARTICLE VII
OTHER OBLIGATIONS OF LESSEE
Section 7.1. Use; Permits. Lessee shall exercise due care in the use, operation
and maintenance of the Project, and shall not use, operate or maintain the Project improperly,
carelessly, in violation of any State and Federal Law or for a purpose or in a manner contrary to
that contemplated by this Lease. Lessee shall obtain all permits and licenses necessary for the
installation, operation, possession and use of the Project. Lessee shall comply with all State and
Federal Laws applicable to the installation, use, possession and operation of the Project, and if
compliance with any such State and Federal Law requires changes or additions to be made to the
Project, such changes or additions shall be made by Lessee at its expense.
Section 7.2. Maintenance of Project by Lessee. Lessee shall, at its own expense,
maintain, preserve and keep the Project in good repair, working order and condition, and shall
from time to time make all repairs and replacements necessary to keep the Project in such
condition. Lessor shall have no responsibility for any of these repairs or replacements.
Section 7.3. Taxes, Other Governmental Charges and Utility Charges. Except as
expressly limited by this Section, Lessee shall pay all taxes and other charges of any kind which
are at any time lawfully assessed or levied against or with respect to the Project, the Rental
Payments or any part thereof, or which become due during the Term of this Lease, whether
assessed against Lessee or Lessor. Lessee shall also pay when due all gas, water, steam,
electricity, heat, power, telephone, and other charges incurred in the operation, maintenance, use,
occupancy and upkeep of the Project, and all special assessments and charges lawfully made by
any governmental body for public improvements that may be secured by a lien on the Project;
provided that with respect to special assessments or other governmental charges that may
lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such
installments as are required to be paid during the Term of this Lease as and when the same
become due. Lessee shall not be required to pay any federal, state or local income, inheritance,
estate, succession, transfer, gift, franchise, gross receipts, profit, excess profit, capital stock,
corporate, or other similar tax payable by Lessor, its successors or assigns, unless such tax is
made in lieu of or as a substitute for any tax, assessment or charge which is the obligation of
Lessee under this Section.
Lessee may, at its own expense and in its own name, in good faith contest any
such taxes, assessments, utility and other charges and, in the event of any such contest, may
permit the taxes, assessments, utility or other charges so contested to remain unpaid during the
period of such contest and any appeal therefrom unless Lessor shall notify Lessee that, in the
opinion of Independent Counsel, by nonpayment of any such items the interest of Lessor in the
Project will be materially endangered or the Project or any part thereof will be subject to loss or
forfeiture, in which event Lessee shall promptly pay such taxes, assessments, utility or other
charges or provide Lessor with full security against any loss which may result from nonpayment,
in form satisfactory to Lessor.
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Section 7.4. Advances. If Lessee shall fail to perform any of its obligations under
this Article, Lessor may, but shall not be obligated to, take such action as may be necessary to
cure such failure, including the advancement of money, and Lessee shall be obligated to repay all
such advances on demand, with interest at the rate of 12% per annum or the maximum rate
permitted by law, whichever is less, from the date of the advance to the date of repayment.
15
ARTICLE VIII
TITLE
Section 8.1. Title. During the Term of this Lease, legal title to the Improvements
and any and all repairs, replacements, substitutions and modifications thereto shall be in Lessor.
Legal title to the Land shall remain in the Association, subject to the Lessor’s and the Lessee’s
interests under the Ground Lease. Upon the payment by Lessee of all Rental Payments as
indicated in Exhibit B, or the exercise by Lessee of its option to purchase the Project pursuant to
Article X, full and unencumbered legal title to the Project shall pass to Lessee, and Lessor shall
have no further interest therein; and Lessor shall execute and deliver to Lessee such documents
as Lessee may request to evidence the passage of legal title to the Project to Lessee and the
termination of Lessor’s interest therein. Nothing herein shall require Lessor to remove any lien,
charge or encumbrance upon legal title to the Project not arising through Lessor.
Section 8.2. Liens. During the Term of this Lease, Lessee shall not, directly or
indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge,
encumbrance or claim on or with respect to the Project, other than the respective rights of Lessor
and Lessee as herein provided and Permitted Encumbrances. Except as expressly provided in
Section 7.3 and this Article, Lessee shall promptly, at its own expense, take such action as may
be necessary duly to discharge or remove any such mortgage, pledge, lien, charge, encumbrance
or claim if the same shall arise at any time. Lessee shall reimburse Lessor for any expense
incurred by Lessor in order to discharge or remove any such mortgage, pledge, lien, charge,
encumbrance or claim.
Section 8.3. Installation of Lessee’s Equipment. Lessee may at any time and
from time to time, in its sole discretion and at its own expense, install items of equipment in or
upon the Project, which items shall be identified by tags or other symbols affixed thereto as
property of Lessee. All such items so identified shall remain the sole property of Lessee, in
which Lessor shall have no interest, and may be modified or removed by Lessee at any time
provided that Lessee shall repair and restore any and all damage to the Project resulting from the
installation, modification or removal of any such items. Nothing in this Lease shall prevent
Lessee from purchasing items to be installed pursuant to this Section under a conditional sale or
lease with option to purchase contract, or subject to a vendor’s lien or security agreement, as
security for the unpaid portion of the purchase price thereof, provided that no such lien or
security interest shall attach to any part of the Project.
Section 8.4. Modification of Project. Lessee shall, at its own expense, have the
right to make repairs to the Project, and to make repairs, replacements, substitutions and
modifications to all or any of the parts thereof. All such work and any part or component used or
installed to make a repair or as a replacement, substitution or modification, shall thereafter
comprise part of the Project and be subject to the provisions of this Lease. Such work shall not
in any way damage the Project or cause it to be used for purposes other than those authorized
under the provisions of State and Federal Law or those contemplated by this Lease; and the
Project, upon completion of any such work, shall be of a value which is not less than the value of
the Project immediately prior to the commencement of such work. Any property for which a
16
replacement or substitution is made pursuant to this Section may be disposed of by Lessee in
such manner and on such terms as are determined by Lessee. Lessee will not permit any
construction, mechanic’s or other lien to be established or remain against the Project for labor or
materials furnished in connection with any repair, addition, modification or improvement made
by Lessee pursuant to this Section; provided that if any such lien is established and Lessee shall
first notify Lessor of Lessee’s intention to do so, Lessee may in good faith contest any lien filed
or established against the Project, and in such event may permit the items so contested to remain
undischarged and unsatisfied during the period of such contest and any appeal therefrom unless
Lessor shall notify Lessee that, in the opinion of Independent Counsel, by nonpayment of any
such item the interest of Lessor in the Project will be materially endangered or the Project or any
part thereof will be subject to loss or forfeiture, in which event Lessee shall promptly pay and
cause to be satisfied and discharged all such unpaid items or provide Lessor with full security
against any such loss or forfeiture, in form satisfactory to Lessor. Lessor will cooperate fully
with Lessee in any such contest, upon the request and at the expense of Lessee.
Section 8.5. Management Contract. Lessee shall have the right to contract for
management services with respect to the Project in its discretion so long as the effect and
operation under such contract does not affect the tax-exempt status of the interest component of
the Rental Payments.
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ARTICLE IX
WARRANTIES
Section 9.1. Selection, Design and Construction of Improvements. The
Improvements have been or will be selected, designed and constructed by or on behalf of Lessee,
and Lessor shall have no responsibility in connection with the selection, design or construction
of the Improvements or their suitability for the use intended by Lessee. In connection with any
contracting for the construction or acquisition of the Improvements, Lessor hereby appoints
Lessee as its agent to make any such contract, with the express understanding that all items of
property so obtained shall be and become the property of the Lessor in accordance with the terms
of this Lease.
Section 9.2. Maintenance of Project. Lessor shall have no obligation to test,
inspect, service or maintain the Project under any circumstances, but such actions shall be the
obligation of Lessee.
Section 9.3. Contractor’s Warranties. Lessor hereby assigns to Lessee for and
during the Term of this Lease, all of its interest in all contractor’s warranties and guarantees, if
any, express or implied, issued on or applicable to the Improvements or any portion thereof, and
Lessor hereby authorizes Lessee to obtain the customary services furnished in connection with
such warranties and guarantees at Lessee’s expense.
Section 9.4. Patent Infringement. Lessor hereby assigns to Lessee for and during
the Term of this Lease all of its interest in patent indemnity protection provided by any
contractor with respect to the Improvements. Such assignment of patent indemnity protection by
Lessor to Lessee shall constitute the entire liability of Lessor for any patent infringement by
Improvements furnished pursuant to this Lease.
Section 9.5. Disclaimer of Warranties. THE IMPROVEMENTS ARE AND
ARE TO BE DELIVERED AS IS, AND LESSOR MAKES NO WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN,
CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR
FITNESS FOR THE USE CONTEMPLATED BY LESSEE OF THE IMPROVEMENTS, OR
ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE
IMPROVEMENTS.
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ARTICLE X
OPTION TO PURCHASE
Section 10.1. When Available. Lessee shall have the option to purchase Lessor’s
interest in the Project on the Payment Dates for the Purchase Option Prices as set forth in Exhibit
B, but only if Lessee is not in default under this Lease, and only in the manner provided in this
Article.
Section 10.2. Exercise of Option. Lessee shall give notice to Lessor of its
intention to exercise its option not less than sixty (60) days prior to the Payment Date on which
the option is to be exercised and shall deposit with Lessor on the date of exercise an amount
equal to all Rental Payments and any other amounts then due or past due (including the Rental
Payment due on such Payment Date) and the Purchase Option Price. The closing shall be on the
applicable Payment Date at such office as shall be designated by Lessor.
Section 10.3. Release of Lessor’s Interest. Upon exercise of the Purchase Option
by Lessee, Lessor shall convey or release to Lessee, all of its right, title and/or interest in and to
the Project by delivering to Lessee such documents as Lessee deems necessary for this purpose.
19
ARTICLE XI
ASSIGNMENT, SUBLEASING, MORTGAGING AND SELLING
Section 11.1. Assignment by Lessor. Lessor shall not assign its obligations under
this Lease, and no purported assignment thereof shall be effective. All of Lessor’s rights, title
and/or interest in and to this Lease, the Rental Payments and other amounts due hereunder and
the Project may be assigned and reassigned in whole or in part to one or more assignees or
subassignees by Lessor, but only upon the written consent of Lessee. Lessee shall pay all Rental
Payments due hereunder to or at the direction of Lessor or the assignee named in the most recent
assignment, if any. During the Lease Term Lessee shall keep a complete and accurate record of
all such assignments, if any. Transfer of the Lessor’s rights under this Lease shall be made only
upon presentation of the Lessor’s original of this Lease to the Lessee’s Treasurer for notation of
assignment and transfer on such original.
Section 11.2. Assignment and Subleasing by Lessee. Neither this Lease nor
Lessee’s interest in the Project may be assigned by Lessee without the written consent of Lessor.
However, the Project may be subleased by Lessee, in whole or in part, without the consent of
Lessor, subject, however, to each of the following conditions:
(i) This Lease and the obligation of Lessee to make Rental Payments
hereunder, shall remain obligations of Lessee.
(ii) The sublessee shall assume the obligations of Lessee hereunder to the
extent of the interest subleased.
(iii) Lessee shall, within thirty (30) days after the delivery thereof, furnish
or cause to be furnished to Lessor a true and complete copy of such sublease.
(iv) No sublease by Lessee shall cause the Project to be used for a
purpose other than a governmental function authorized under the provisions of the
Constitution and laws of the State.
(v) No sublease shall cause the Interest component of the Rental
Payments due with respect to the Project to become includable in gross income of
the recipient for federal income tax purposes.
Section 11.3. Restriction on Mortgage or Sale of Project by Lessee. Except as
provided in Section 11.2, Lessee will not mortgage, sell, assign, transfer or convey the Project or
any portion thereof during the Term of this Lease, without the written consent of Lessor. Lessee
may make such contracts for the use of the Project with the Nebraska State Fair Board as Lessee
shall deem appropriate so long as such contract shall not cause the Interest component of the
Rental Payments due with respect to the Project to become includable in gross income of the
recipient for federal income tax purposes.
20
ARTICLE XII
EVENTS OF DEFAULT AND REMEDIES
Section 12.1. Events of Default Defined. The following shall be “events of
default” under this Lease and the terms “events of default” and “default” shall mean, whenever
they are used in this Lease, any one or more of the following events:
(i) Failure by Lessee to pay any Rental Payment or other payment
required to be paid under this Lease at the time specified herein and the
continuation of said failure for a period of ten (10) business days after telephonic
or telegraphic notice given by Lessor that the payment referred to in such notice
has not been received, such telephonic or telegraphic notice to be subsequently
confirmed in writing, or after written notice.
(ii) Failure by Lessee to observe and perform any covenant, condition or
agreement on its part to be observed or performed, other than as referred to in
Clause (i) of this Section, for a period of thirty (30) days after written notice
specifying such failure and requesting that it be remedied has been given to
Lessee by Lessor, unless Lessor shall agree in writing to an extension of such
time prior to its expiration; provided, however, if the failure stated in the notice
cannot be corrected within the applicable period, Lessor will not unreasonably
withhold its consent to an extension of such time if corrective action is instituted
by Lessee within the applicable period and diligently pursued until the default is
corrected.
(iii) The filing by Lessee of a voluntary petition in bankruptcy, or failure
by Lessee promptly to lift any execution, garnishment or attachment of such
consequence as would impair the ability of Lessee to carry on its governmental or
proprietary function or adjudication of Lessee as a bankrupt, or assignment by
Lessee for the benefit of creditors, or the entry by Lessee into an agreement of
composition with creditors, or the approval by a court of competent jurisdiction of
a petition applicable to Lessee in any proceedings instituted under the provisions
of the Federal Bankruptcy Statute, as amended, or under any similar acts which
may hereafter be enacted.
The provisions of this Section 12.1 and Section 12.2 are subject to the following limitation: if by
reason of force majeure Lessee is unable in whole or in part to carry out its obligations under this
Lease, other than its obligation to pay Rental Payments with respect thereto which shall be paid
when due notwithstanding the provisions of this paragraph, Lessee shall not be deemed in default
during the continuance of such inability. The term “force majeure” as used herein shall mean,
without limitation, the following: acts of God; strikes, lockouts or other labor disturbances; acts
of public enemies; orders or restraints of any kind of the government of the United States of
America or the State or their respective departments, agencies or officials, or any civil or military
authority; insurrections; riots; landslides; earthquakes; fires; storms; droughts; floods;
explosions; breakage or accident to machinery, transmission pipes or canals; or any other cause
21
or event not reasonably within the control of Lessee and not resulting from its negligence.
Lessee agrees, however, to remedy with all reasonable dispatch the cause or causes preventing
Lessee from carrying out its obligations under this Lease; provided that the settlement of strikes,
lockouts and other labor disturbances shall be entirely within the discretion of Lessee and Lessee
shall not be required to make settlement of strikes, lockouts and other labor disturbances by
acceding to the demands of the opposing party or parties when such course is in the judgment of
Lessee unfavorable to Lessee.
Section 12.2. Remedies on Default. Whenever any event of default referred to in
Section 12.1 hereof shall have happened and be continuing with respect to the Project, Lessor
shall have the right, at its option and without any further demand or notice, to take one or any
combination of the following remedial steps:
(i) Lessor, with or without terminating this Lease, may declare all Rental
Payments due or to become due during the Fiscal Year in effect when the default
occurs to be immediately due and payable by Lessee, whereupon such Rental
Payments shall be immediately due and payable.
(ii) Lessor, with or without terminating this Lease, may repossess the
Project by giving Lessee written notice to surrender the Project to Lessor for the
remaining term of the Ground Lease, whereupon Lessee shall do so in the manner
provided in Section 12.3. If the Project or any portion of it has been destroyed or
damaged beyond repair, Lessee shall pay the applicable Purchase Option Price of
the Project, as set forth in Exhibit B (less credit for Net Proceeds), to Lessor.
Notwithstanding the fact that Lessor has taken possession of the Project, Lessee
shall continue to be responsible for the Rental Payments due during the Fiscal
Year then in effect. If this Lease has not been terminated, Lessor shall return
possession of the Project to Lessee at Lessee’s expense when the event of default
is cured.
(iii) If Lessor terminates this Lease and takes possession of the Project,
Lessor shall thereafter use its best efforts to sell or lease its interest in the Project
or any portion thereof in a commercially reasonable manner in accordance with
applicable State laws. Lessor shall apply the proceeds of such sale or lease to pay
the following items in the following order: (a) all costs incurred in securing
possession of the Project; (b) all expenses incurred in completing the sale or lease;
(c) the applicable Purchase Option Price of the Project; and (d) the balance of any
Rental Payments owed by Lessee during the Fiscal Year then in effect. Any sale
proceeds remaining after the requirements of Clauses (a), (b), (c) and (d) have
been shall be the property of Lessee.
(iv) If the proceeds of sale or lease of the Project are not sufficient to pay
the balance of any Rental Payments owed by Lessee during the Fiscal Year then
in effect, Lessor may take any other remedy available at law or in equity to
require Lessee to perform any of its obligations hereunder and to enforce the
Ground Lease and Lessee’s compliance with the terms of the Ground Lease.
22
Section 12.3. Surrender of Project. Upon the expiration or termination of this
Lease prior to the payment of all Rental Payments in accordance with Exhibit B, Lessee shall
surrender the Project to Lessor in the condition, repair, appearance and working order required in
Section 7.2. If Lessee refuses to surrender the Project in the manner designated, Lessor may
repossess the Project and charge to Lessee the costs of such repossession or pursue any remedy
described in Section 12.2.
Section 12.4. No Remedy Exclusive. No remedy conferred upon or reserved to
Lessor by this Article is intended to be exclusive and every such remedy shall be cumulative and
shall be in addition to every other remedy given under this Lease. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or
shall be construed to be a waiver thereof but any such right and power may be exercised from
time to time and as often as may be deemed expedient by Lessor or its assignee.
23
ARTICLE XIII
ADMINISTRATIVE PROVISIONS
Section 13.1. Notices. All notices, certificates, legal opinions or other
communications hereunder shall be sufficiently given and shall be deemed given when delivered
or deposited in the United States mail in registered form with postage fully prepaid to the
addresses specified on the first page hereof; provided that Lessor and Lessee, by notice given
hereunder, may designate different addresses to which subsequent notices, certificates, legal
opinions or other communications will be sent.
Section 13.2. Financial Information. During the Term of this Lease, Lessee
annually will provide Lessor with current financial statements, budgets, proof of appropriation
for the ensuing Fiscal Year and such other financial information relating to the ability of Lessee
to continue this Lease as may be requested by Lessor or its assignee.
Section 13.3. Binding Effect. This Lease shall inure to the benefit of and shall be
binding upon Lessor and Lessee and their respective successors and assigns.
Section 13.4. Severability. In the event any provision of this Lease shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate
or render unenforceable any other provision hereof.
Section 13.5. Amendments, Changes and Modifications. This Lease may be
amended or any of its terms modified only by written document duly authorized, executed and
delivered by Lessor and Lessee.
Section 13.6. Captions. The captions or headings in this Lease are for
convenience only and in no way define, limit or describe the scope or intent of any provision,
Article, Section or Clause of this Lease.
Section 13.7. Further Assurances and Corrective Instruments. Lessor and Lessee
agree that they will, from time to time, execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, such supplements hereto and such further instruments as
may reasonably be required for correcting any inadequate or incorrect description of the Project
hereby leased or intended so to be, or for otherwise carrying out the expressed intention of this
Lease.
Section 13.8. Execution in Counterparts. This Lease may be simultaneously
executed in several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
Section 13.9. Applicable Law. This Lease shall be governed by and construed in
accordance with the laws of the State.
24
IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its
corporate name by its duly authorized officer; and Lessee has caused this Lease to be executed in
its name by its duly authorized officers, as of the date first above written.
WELLS FARGO BROKERAGE SERVICES, LLC,
as Lessor
By
Its
CITY OF GRAND ISLAND, NEBRASKA
as Lessee
By
Its Mayor
ATTEST:
By
Its City Clerk
SIGNATURE PAGE TO LEASE-PURCHASE AGREEMENT
DATED AS OF _____________, 20__
25
STATE OF __________)
) ss.
COUNTY OF __________)
The foregoing instrument was acknowledged before me this _____ day of
____________, 2009 by __________________________, agent on behalf of Wells Fargo
Brokerage Services, LLC, a limited liability company.
Notary Public
My Commission Expires:
(SEAL)
STATE OF NEBRSKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ____ day of
______________, 2009, by ______________, Mayor of the City of Grand Island, Nebraska, on
behalf of said city.
Notary Public
My Commission Expires:
(SEAL)
A-1
EXHIBIT A
LAND
IMPROVEMENTS
B-1
EXHIBIT B
SCHEDULE OF RENTAL PAYMENTS
Payment
Date
Rental
Payment Interest Principal
Purchase
Option Price
C-1
EXHIBIT C
OFFICERS’ CERTIFICATE
We, the undersigned, hereby certify that we are the duly qualified and acting
Mayor and City Clerk of the City of Grand Island (the “Lessee”), and with respect to the Lease-
Purchase Agreement dated as of July 1, 2009 (the “Lease”), by and between the Lessee and
Wells Fargo Brokerage Services, LLC (the “Lessor”), that:
1. In our capacities as such officers we have executed the Lease, a Ground Lease
dated as of July 1, 2009 (the “Ground Lease”), by and between the Lessee and Hall County
Livestock Improvement Association and an Escrow Agreement dated as of July 1, 2009 (the
“Escrow Agreement”), by and among the Lessor, the Lessee and Wells Fargo Bank, National
Association, acting as Escrow Agent.
2. The Rental Payments provided for in Exhibit B to the Lease shall commence
and be due and payable on _____________, 2009, and thereafter during the Term of the Lease
(as that term is defined in the Lease) as shown in Exhibit B to the Lease. Lessee has
appropriated and/or taken all other lawful actions necessary to provide moneys sufficient to pay
all Rental Payments required to be paid under the Lease in Lessee’s current fiscal year, and such
moneys will be applied in payment of such Rental Payments.
3. There is no litigation, action, suit or proceeding pending or before any court,
administrative agency, arbitrator or governmental body, that challenges the organization or
existence of the Lessee; the authority of its officers; the proper authorization, approval and
execution of the Ground Lease, the Lease, the Escrow Agreement and other documents
contemplated thereby; the appropriation of money to pay the Rental Payments due under the
Lease; or the ability of the Lessee otherwise to perform its obligations under the Ground Lease,
the Lease, the Escrow Agreement and the other documents and the transactions contemplated
thereby.
C-2
4. Lessee has obtained from a reputable insurance company qualified to do
business in the State of Nebraska insurance with respect to all risks required to be covered
thereby pursuant to Article VI of the Lease.
Dated: _____________, 2009.
CITY OF GRAND ISLAND, NEBRASKA
By
Its Mayor
Attest:
By
Its City Clerk
D-1
EXHIBIT D
OPINION
(may be provided by separate counsel for the City as to different matters set forth)
Mayor and Council
City of Grand Island
100 East First Street
Grand Island, NE 68802-1968
Wells Fargo Brokerage Services, LLC
Public Finance Department
608 Second Avenue South – 10th Floor
MAC: N9303-105
Minneapolis, MN 55479
Re:Lease-Purchase Agreement dated as of July 1, 2009, by and between Wells Fargo
Brokerage Services, LLC (“Lessor”) and the City of Grand Island, Nebraska,
(“Lessee”)
Ladies and Gentlemen:
I have acted as counsel to Lessee with respect to the Lease-Purchase Agreement
described above (the “Lease”) and various related matters, and in this capacity have reviewed a
duplicate original or certified copy of the Lease, the Ground Lease dated as of July 1, 2009 (the
“Ground Lease”) by and between Lessor and Lessee and the Escrow Agreement dated as of
July 1, 2009 (the “Escrow Agreement”) among the Lessor, the Lessee and Wells Fargo Bank,
National Association, acting as escrow agent, and the Exhibits attached to each of said
documents. Based upon the examination of these and such other documents as I deem relevant,
it is my opinion that:
1. Lessee is a political subdivision of the state of the State of Nebraska (the “State”),
duly organized, existing and operating under the Constitution and laws of the State.
2. Lessee is authorized and has power under applicable law to enter into the Lease, the
Ground Lease and the Escrow Agreement and to carry out its obligations thereunder and the
transactions contemplated thereby.
D-2
3. The Lease, the Ground Lease and the Escrow Agreement have been duly authorized,
approved, executed and delivered by and on behalf of Lessee, and are valid and binding contracts
of Lessee enforceable in accordance with their terms, except to the extent limited by State and
Federal laws affecting remedies and by bankruptcy, reorganization or other laws of general
application relating to or affecting the enforcement of creditors’ rights.
4. The authorization, approval and execution of the Lease and all other proceedings of
Lessee relating to the transactions contemplated thereby have been performed in accordance with
all applicable open meeting, public bidding and all other laws, rules and regulations of the State.
5. The execution of the Lease and the appropriation of moneys to pay the Rental
Payments coming due thereunder do not result in the violation of any constitutional, statutory or
other limitation relating to the manner, form or amount of indebtedness which may be incurred
by Lessee.
6. There is no litigation, action, suit or proceeding pending or before any court,
administrative agency, arbitrator or governmental body, that challenges the organization or
existence of Lessee; the authority of Lessee or its officers or its employees to enter into the
Lease, the Ground Lease and the Escrow Agreement; the proper authorization, approval and/or
execution of the Lease, the Ground Lease and the Escrow Agreement, Exhibits thereto and other
documents contemplated thereby; the appropriation of moneys to make Rental Payments under
the Lease for the current fiscal year of Lessee; or the ability of Lessee otherwise to perform its
obligations under the Lease, the Ground Lease and the Escrow Agreement and the transactions
contemplated thereby.
(Subject to qualifications determined appropriate by each opining counsel and acceptable
to Lessor)
Dated _______________, 20__.
Very truly yours,
DOCS/879164.2
INITIAL DRAFT
GROUND LEASE
THIS GROUND LEASE ("Lease") is made and entered into July 1, 2009, by and between
HALL COUNTY LIVESTOCK IMPROVEMENT ASSOCIATION, a Nebraska nonprofit
corporation ("Fonner Park"); WELLS FARGO BROKERAGE SERVICES, L.L.C. (Wells Fargo);
and CITY OF GRAND ISLAND, NEBRASKA, a city of the first class of the State of Nebraska
("City);
WHEREAS, the City and Fonner Park have determined that Wells Fargo and the City
should have title to a multi-purpose recreational exposition building and associated infrastructure
improvements (the "Building"); and
WHEREAS, the City and Wells Fargo Brokerage Services, LLC ("Wells Fargo") have
entered into a Lease Purchase Agreement dated July 1, 2009 ("Lease Purchase Agreement")
regarding the Building.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the parties do hereby agree and contract as follows:
1. Certain Definitions . For purposes of this Lease, the following terms are defined:
(a) "Leased Premises" shall mean that certain real property located in Hall County,
Nebraska, which has been identified by Fonner Park based upon the plans and specifications
approved and provided by the Nebraska State Fair Board. The Leased Premises are deemed by the
parties hereto to be suitable to construct the Building and are located outside the restricted security
envelope required of Fonner by the State Racing Commission, so as to be usable throughout each
year. The exact location and legal description of the Leased Premises as determined by survey, are
shown on Exhibit "A" attached hereto and made a part hereof. As part of this Lease, Wells Fargo
and the City are hereby granted during the term of the Lease proper ingress and egress on, over and
across the land of Fonner Park for access and suitable parking, as is necessary for proper utilization
of the Building. Such land of Fonner Park is defined in Exhibit "B" hereto attached and
incorporated herein.
(b) "Building" shall mean the building, structures, fixtures and improvements
constructed or installed upon the Leased Premises and related infrastructure improvements serving
the Building.
Certain other defined terms shall have the respective meanings assigned to them elsewhere in this
Lease.
2. Demise and Term. Fonner Park hereby leases and rents to Wells Fargo and the
City, and Wells Fargo and the City hereby lease and rent from Fonner Park, the Leased Premises for
the period commencing with the date of delivery hereof and ending on December 31, 2050 (the
"Term"). Thereafter, the Term shall automatically continue for five (5) year successive terms unless
terminated by either party upon ninety (90) days written notice prior to the end of the expiring term.
The leasehold interest of Wells Fargo hereunder shall be assigned and transferred in full to City
2
upon the City's fulfillment of all of its obligations under the Lease Purchase Agreement with Wells
Fargo.
3. Use. The Leased Premises shall be used for the construction and operation of the
Building to be used by the Cit y for public purposes, including, without limitation, for use as a
recreational facility and also for State Fair purposes, if and when appropriate, and for any other
suitable use as determined by the City. It is agreed by the parties hereto that the City shall not use
the building for any sanctioned Nebraska School Athletic Activities Association or collegiate
athletic event, or for any trade show, banquet, professional entertainment or convention without the
permission of Fonner Park as long as Fonner Park is responsible under the current Management
Agreement (or any successor agreement with the City) for management of the Heartland Event
Center. Such permission from Fonner Park shall not be unreasonably denied.
4. Building. The Building on the Leased Premises shall be designed in accordance
with plans and specifications provided by the Nebraska State Fair Board, with due consideration to
be provided to the City to allow for the Building to be used for any of the City's purposes. This
Lease shall apply solely to the Building and the Leased Premises (as defined in Exhibit A hereto)
and to access and parking on, over and across the land described on Exhibit B hereto. All necessary
utilities that will be needed for the Building are to be furnished out of the funds to be collected and
utilized for the relocation of the Nebraska State Fair, which project is being administered by the
Nebraska State Fair Board and Fonner Park. The costs and expenses of any of these utility lines
shall be paid for with the relocation funds and not from the separate funds of Fonner Park. The City
shall have the right at its cost, as and to the extent that it determines appropriate, to install utilities
for the Building, on, over and across the real estate defined in Exhibit "B" hereto attached.
5. Rent. City shall pay to Fonner Park as gross rent ("Rent") for the Term hereof the
sum of One Thousand and No/100 Dollars ($1,000.00) per month, first payable upon the certificate
of occupancy being provided for the facility to the City and then payable on the first day of each
month thereafter. No rental increase shall occur until the City has received legal title to the
Building from Wells Fargo and thereafter shall be subject to negotiation between the City and
Fonner Park from time to time.
6. Maintenance and Repair. The maintenance, repairs and replacements of the
Building and interior and the Leased Premises shall be the responsibility of the City. The
maintenance, repairs and replacement of surrounding property shall be the responsibility of Fonner
Park, including maintenance of suitable parking, all sidewalks, landscape, and exterior lighting not
attached to the Building, for access, parking and green space areas.
7. Insurance and Casualty. During the Terms of this Lease, the City shall, at its own
expense, insure the Leased Premises and the Building against loss or damage by fire and extended
perils coverage in an amount not less than the full replacement value thereof, with such insurance to
be under policies issued by responsible insurers authorized to do business in the State of Nebraska.
The insurance policy shall name Wells Fargo, the City and Fonner Park as insured as their
respective interests may appear, but so long as the City is not in default of this Lease, any loss shall
be adjusted by and paid to Wells Fargo and the City. Upon occurrence of any damage covered by
the foregoing property insurance, the City shall repair, replace or reconstruct the Building. The
parties agree that if the available proceeds of the property insurance are insufficient to fully restore
3
the Building to the condition existing prior to the loss, the City shall provide funds for restoration
beyond the fund s available from such insurance if it so chooses. If the City chooses not to restore,
the Lease can be terminated if at such time the City has legal title to the Building. The other
provisions of this Lease shall apply as to any such disposition and surrender.
8. Assignment and Subletting. Except as may be provided in the Lease Purchase
Agreement, City may not assign this Lease or sublet, in whole or in part, the Leased Premises, by
operation of law or otherwise. The City shall have the right to contract for the use of the Building
as it determines appropriate, consistent with the other terms of this Lease. The City has the right to
charge admission fees, user fees, and to enter into usage agreements for its purposes for the
Building.
9. No Subordination. Upon the prior written consent of Fonner Park, the City shall
have the right to grant a mortgage or deed of trust upon the leasehold interest evidenced hereby
subject to and upon the condition that the mortgagee or beneficiary shall execute an
acknowledgment in form acceptable to Fonner Park acknowledging and agreeing that: (a) any such
mortgage or deed of trust shall be junior and inferior in all respects to the interest of Fonner Park in
the Leased Premises, (b) upon any foreclosure, such mortgagee or beneficiary shall be subject to the
terms and conditions of this Lease, and (c) the expiration or termination of this Lease shall
terminate any mortgage or deed of trust and such mortgagee or beneficiary shall cause the mortgage
or deed of trust to be released and reconveyed upon any such termination. Fonner Park agrees that
it will provide written notice of any default by City of the holder of any mortgage or deed of trust of
which it has knowledge.
10. Limitation on Termination as Against Wells Fargo/Disposition of Property.
This Lease shall not terminate until the City has acquired full legal title to the Building from Wells
Fargo. Upon termination of this Lease, or any extension thereof, the Leased Premises shall remain
the property of Fonner Park. The Building and any other structures or improvements or
appurtenances of the City that have been constructed or installed shall remain the property of the
City. Fonner Park, upon termination of this Lease, may purchase the City's interest in the Building,
other structures or appurtenances for the Fair Market Value of the same. "Fair Market Value" shall
mean the value of such interests, as determined by agreement of the parties or by a board of three
(3) independent licensed appraisers chosen jointly by the parties. The City's interest may be
purchased as determined by state or federal law or by agreement of the parties. If Fonner Park
elects not to purchase the Building, structures and appurtenances on the Leased Premises, the City
agrees to remove all buildings, structures and appurtenances on the Leased Premises at the City's
cost, subject to any remonstrance requirements under applicable law.
11. Default. In the event City shall fail to observe and perform the terms and provisions
of this Lease, and such failure continues for a period of thirty (30) days after written notice from
Fonner Park to City and Wells Fargo (provided, in the event the nature of such failure reasonably
requires more than thirty (30) days to cure, such thirty (30) day period shall be extended for as long
as it is reasonably necessary provided City commences to cure such failure within such thirty (30)
day period and thereafter diligently pursues the same to completion), then Fonner Park may
terminate this Lease, City shall forfeit all rights, titles and interests in and to the Leased Premises
and City shall remove the Building within ninety (90) days of such termination and shall
immediately vacate the Leased Premises except for purposes of removing the building. Wells Fargo
4
as owner of the Building, shall have the right to cure any default of the City so long as Wells Fargo
has legal title to the Building.
12. Surrender. City shall, upon termination of this Lease, whether by lapse of time or
otherwise, peaceably and promptly surrender the Leased Premises, shall forfeit all rights, titles and
interests in and to the Leased Premises and City shall remove the Building within ninety (90) days
of such termination and shall immediately vacate the Leased Premises except for purposes of
removing the Building. If City remains in possession after the termination of this Lease, without a
written lease duly executed by the parties, City shall be deemed a tenant at will.
13. Notices. All notices, demands, requests, approvals, consents, offers, statements, and
other instruments of communication required or permitted to be given pursuant to the provisions of
this Lease, shall be in writing and shall be deemed to have been given when delivered in person, by
Federal Express or other 24-hour delivery service, or three (3) business days after being deposited
in the United States mail by certified mail, return receipt requested, postage prepaid, addressed to
the other party at its address hereinbelow set forth:
City of Grand Island Hall County Livestock Improvement Association
Attn: Mayor Attn: Registered Agent
P.O. Box 1968 P.O. Box 490
100 East First Street 700 East Stolley Park Road
Grand Island, NE 68802-1968 Grand Island, NE 68802-0490
mayor@grand-island.com fonnerpark@aol.com
For the purposes of this paragraph, any party may substitute its address by giving fifteen (15) days
notice to the other party in the manner provided above.
14. Recordation. Fonner Park, the City and Wells Fargo each agree to execute and
record a short form notice of this Lease.
15. Entire Agreement. This Lease constitutes the entire agreement between Fonner
Park, Wells Fargo and the City regarding the subject matter hereof and supersedes all oral
statements and prior writings relating thereto. Except for those set forth in this Lease, no
representations, warranties or agreements have been made by Fonner Park, Wells Fargo or the City,
to the other with respect to this Lease, or the obligations of Fonner Park, Wells Fargo or the City in
connection therewith. The normal rule of construction that any ambiguities be resolved against the
drafting party shall not apply to the interpretation of this Lease or any exhibits or amendments
hereto.
16. Binding Effect. This Lease shall run with the land and be binding upon and inure to
the benefit of the parties hereto and their respective permitted successors and assigns.
The parties hereto hereby acknowledge that the proposed transfer of the State Fair from Lancaster
County to Hall County has been authorized by LB 1116 as enacted by the Second Session (2008) of
the One Hundredth Legislature of the State of Nebraska (“LB 1116”) and that there is currently
pending in the District Court of Lancaster County, Nebraska, the case of
_______________________ (______) (the “Pending Litigation”); that the City and Fonner Park are
5
parties to the Pending Litigation; that no temporary restraining order, preliminary injunction,
permanent injunction or other order restricting action by the City or Fonner Park has been entered
or is expected to be entered prior to the time (the “Anticipated Commitment Time”) when execution
and delivery of this Lease are expected to be required in order for construction to be timely
completed; that the City’s aut hority to enter into this Lease for the benefit of the citizens of Grand
Island, independent of the provisions of LB 1116, is not questioned or challenged in the Pending
Litigation; that the Pending Litigation will not likely be finally resolved before the Anticipated
Commitment Time; and the parties hereto have determined to proceed with entering into this Lease
without respect of the validity of LB 1116 and in order to serve the general governmental purpose
of obtaining a recreational facility for the benefit of the City and its citizens. Each of the parties
hereto irrevocably waives any right to claim invalidity or seek other equitable or legal relief based
upon the doctrine of commercial frustration.
17. Authority. Fonner Park, Wells Fargo and the City each acknowledge and represent
that it has the right, power and authority to enter into this Lease and bind itself hereto through the
party set forth as signatory for the party below.
18. Indemnification. Nothing in this Lease shall be construed as an indemnification by
Fonner Park or the City of the other for liabilities of a party or third persons for property loss or
damage or death or personal injury arising out of and during the performance of this lease. Any
liabilities or claims for property loss or damage or for death or personal injury by a party or its
agents, employees, contractors or assigns or by third persons, arising out of and during the
performance of this Lease shall be determined according to applicable law including but not limited
to the Political Subdivision and State Tort Claims Act.
19. Governing Law. This Lease shall be governed by and construed in accordance with
the laws of the State of Nebraska.
20. Effective Date. This Lease has been dated for convenience of reference as shown on
the initial page hereof.
ATTEST: CITY OF GRAND ISLAND, NEBRASKA
________________________________ By: ______________________________________
RaNae Edwards, City Clerk Margaret Hornady, Mayor
APPROVED AS TO FORM:
________________________________
Dale M. Shotkoski, City Attorney
ATTEST: WELLS FARGO BROKERAGE SERVICES, L.L.C.
6
________________________________ By: ______________________________________
ATTEST: HALL COUNTY LIVESTOCK IMPROVEMENT ASSOCIATION
________________________________ By: ______________________________________
Charles Bosselman, Secretary Larry Toner, President
STATE OF NEBRASKA )
)SS:
COUNTY OF HALL )
The foregoing instrument was acknowledged before me by Margaret Hornady, Mayor of the
City of Grand Island, Nebraska, a city of the first class of the State of Nebraska, on behalf of such
city.
Witness my hand and notarial seal this ______ day of _______________, 2009.
__________________________________________
Notary Public
7
STATE OF NEBRASKA )
)SS:
COUNTY OF __________ )
The foregoing instrument was acknowledged before me by __________________,
______________ of Wells Fargo Brokerage Services, L.L.C., on behalf of such limited liability
company.
Witness my hand and notarial seal this ______ day of _______________, 2009.
__________________________________________
Notary Public
8
STATE OF NEBRASKA )
)SS:
COUNTY OF HALL )
The foregoing instrument was acknowledged before me by Larry Toner, President of Hall
County Livestock Improvement Association, a Nebraska nonprofit corporation, on behalf of such
corporation.
Witness my hand and notarial seal this ______ day of _______________, 2009.
__________________________________________
Notary Public
W489635.01
State Fair:GroundLease
DOCS/911286.2
Initial Presentation Draft
ESCROW AGREEMENT
Among
WELLS FARGO BROKERAGE SERVICES, LLC,
as Lessor,
THE CITY OF GRAND ISLAND, NEBRASKA,
as Lessee,
and
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Escrow Agent
Dated as of July 1, 2009
ESCROW AGREEMENT
THIS ESCROW AGREEMENT (this “Escrow Agreement”) is made and entered into as of July 1,
2009, by and among Wells Fargo Brokerage Services, LLC, a limited liability company organized under
the laws of the State of Delaware (the “Lessor”), Wells Fargo Bank, National Association,a national
banking association organized under the laws of the United States and having trust powers (the “Escrow
Agent”) and the City of Grand Island, Nebraska, a city of the first class of the State of Nebraska (the
“Lessee”).
In the joint and mutual exercise of their powers, and in consideration of the mutual covenants
herein contained, the parties hereto recite and agree as follows:
ARTICLE 1
RECITALS
Section 1.01. The Lessor and the Lessee are concurrently with the delivery of this Escrow
Agreement entering into a Lease-Purchase Agreement (the “Lease”) dated as of July 1, 2009 pursuant to
Ordinance No. _______ passed and approved by the Mayor and Council of the Lessee on May __, 2009
(the “Ordinance”) in order to provide financing for the construction and acquisition of a recreational facility
to be owned and operated by the Lessee (the “Project”). The parties hereto desire to provide for the holding
and application of a deposit required to be made for payment of costs of the Project by the Lessor in
accordance with the terms of the Lease for the payment of costs of the Project.
Section 1.02. The terms capitalized in this Escrow Agreement but not defined herein shall have
the meanings given to them in the Lease.
Section 1.03. Under the Lease, the Lessor has agreed to deposit with Escrow Agent the sum of
$5,000,000, to be credited to the Escrow Fund established in Article 2 hereof and to be applied to pay costs
of the Project. The Lessor hereby authorizes and instructs the Escrow Agent to receive such sum on its
behalf in accordance with the terms of the Lease.
Section 1.04. Under the terms of the Lease Agreement, the Lessor and Lessee have agreed to
contract for the construction and acquisition of the Project. Costs of the Project shall be paid from the
amount deposited with Escrow Agent as described in Sections 1.03, under the terms of this Escrow
Agreement.
Section 1.05. The Lessor and the Lessee hereby employ the Escrow Agent to receive, hold, invest
and disburse the moneys paid to the Escrow Agent as described in Section 1.03, all as hereinafter provided;
however, the Escrow Agent shall not be obligated to assume or perform any obligation of the Lessor or the
Lessee under the Lease except as set forth in this Escrow Agreement.
Section 1.06. Each of the parties has authority to enter into this Escrow Agreement, and has taken
all actions necessary to authorize the execution of this Escrow Agreement by the officers whose signatures
are affixed hereto.
2
ARTICLE 2
ESCROW FUND
Section 2.01. Escrow Agent shall establish a special escrow fund designated as the “City of Grand
Island Construction and Acquisition Fund” (the “Escrow Fund”), shall keep such Escrow Fund separate
and apart from all other funds and moneys held by it and shall administer such Escrow Fund as provided in
this Escrow Agreement.
Section 2.02. All moneys paid to Escrow Agent by Lessor pursuant to Section 1.03 of this Escrow
Agreement shall be credited to the Escrow Fund. Escrow Agent shall use the moneys in the Escrow Fund
to pay the costs of the Project upon receipt with respect thereto of a Payment Request in the form attached
hereto as Exhibit A, executed by Lessee, fully completed and with all supporting documents described
therein attached thereto. Upon receipt of a Payment Request, an amount equal to the cost for the Project as
shown therein shall be paid directly to the person or entity entitled to payment as specified therein. Lessee
shall submit Payment Requests, other than for permitted reimbursement, only for portions of the cost of the
Project as billed by the contractor or supplier and currently owing.
Section 2.03. Lessee shall furnish to Escrow Agent and Lessor as soon as available a copy of each
contract or purchase order for construction or acquisition of the Project. Amounts for payment of costs of
the Project shall be disbursed no later than August 31, 2010. Amounts, if any, remaining undisbursed as of
such date shall be applied on behalf of the Lessee to make prepayment of the Rental Payments due under
the Lease on the next permitted date for prepayment under the terms of the Lease.
Section 2.04. Upon receipt of written notice from the Lessor that a default or event of default has
occurred under the Lease or that Lessee has determined not to complete the construction and acquisition of
the Project, Escrow Agent shall liquidate all investments held in the Escrow Fund and transfer the proceeds
thereof and all other moneys held in the Escrow Fund to Lessor to be applied to the prepayment, in whole
or in part of the Rental Payments due under the Lease.
Section 2.05. Escrow Agent shall only be responsible for the safekeeping and investment of the
moneys held in the Escrow Fund, and the disbursement thereof in accordance with this Article, and shall
not be responsible for the authenticity or accuracy of such certifications or documents, the application of
amounts paid pursuant to such certifications by the persons or entities to which they are paid, or the
sufficiency of the moneys credited to the Escrow Fund to make the payments herein required.
ARTICLE 3
MONEYS IN ESCROW FUND; INVESTMENT
Section 3.01. The moneys and investments held by Escrow Agent under this Escrow Agreement
are irrevocably held in trust for the benefit of the Lessor and the Lessee and such moneys, together with any
income or interest earned thereon, shall be expended only as provided in this Escrow Agreement, and shall
not be subject to levy or attachment or lien by or for the benefit of any creditor of the Lessor or the Lessee.
The Lessor and the Lessee intend that the Escrow Fund constitute an escrow account in which the Lessee
has no legal or equitable right, title or interest until satisfaction in full of all conditions contained herein and
in the Lease for the disbursement of funds by Escrow Agent. However, if the parties’ intention that Lessee
shall have no legal or equitable right, title or interest until all conditions for disbursement are satisfied in
3
full is not respected in any legal proceeding, the parties hereto intend that Lessor shall have a security
interest in the Escrow Fund, and such security interest is hereby granted to Lessor by the Lessee (to the
fullest extent that it may lawfully do so), to secure payment of all sums due to Lessor under the terms of the
Lease. Escrow Agent shall hold the Escrow Fund and the securities and monies therein for the purpose of
perfecting Lessor’s security interest therein and shall dispose of the Escrow Fund only in accordance with
the terms and conditions of this Escrow Agreement. Escrow Agent hereby accepts appointment as agent
and agrees to establish and maintain the Escrow Fund and the monies and securities therein as a financial
intermediary or securities intermediary, as the case may be, for Lessor, as entitlement holder. Escrow
Agent confirms that (i) the Escrow Fund is a “securities account” as such term is defined in §8-501 of the
Nebraska UCC; (ii) Escrow Agent shall, subject to the terms of this Escrow Agreement, treat Lessor as
entitled to exercise the rights that comprise any financial asset credited to the Escrow Fund; (iii) all
property delivered to Escrow Agent for deposit into the Escrow Fund will be promptly credited to the
Escrow Fund; and (iv) all securities and other property underlying any financial assets credited to the
Escrow Fund shall be registered in the name of Escrow Agent, indorsed to Escrow Agent or in blank or
credited to another securities account maintained in the name of Escrow Agent, and in no case will any
financial asset credited to the Escrow Fund be registered in the name of Lessee, payable to the order of
Lessee or specially indorsed to Lessee. Escrow Agent agrees that each item of property (whether
investment property, financial asset, security, instrument or cash) credited to the Escrow Fund shall be
treated as a “financial asset” within the meaning of §8-102(a)(9) of the Nebraska UCC. If at any time
Escrow Agent shall receive an “entitlement order” (within the meaning of §8-102(a)(8) of the Nebraska
UCC) issued by Lessor and relating to the Escrow Fund, Escrow Agent shall comply with such entitlement
order without further consent by Lessee or any other person.
Section 3.02. Moneys held by Escrow Agent hereunder shall be invested and reinvested by
Escrow Agent upon order of Lessee only in Qualified Investments, as defined in Section 3.05. Such
investments shall be registered in the name of Escrow Agent and held by Escrow Agent for the benefit of
the Lessor and for disbursement to pay costs of issuance and costs of the Project. With the approval of
Lessee, Escrow Agent may purchase or sell to itself or any affiliate, as principal or agent, investments
authorized by this Article. Such investments and reinvestments shall be made giving full consideration for
the time at which funds are required to be available.
Section 3.03. Escrow Agent shall, without further direction from Lessee, sell such investments as
and when required to make any payment from the Escrow Fund. Any income received on such investments
shall be credited to the Escrow Fund.
Section 3.04. Escrow Agent shall furnish to the Lessor and the Lessee reports accounting for all
investments and interest and income therefrom. Such accounting shall be furnished no less frequently than
every three months and upon request of the Lessor or the Lessee. Neither the Lessor nor the Escrow shall
be responsible or liable for any loss suffered in connection with any investment of moneys made by Escrow
Agent in accordance with this Article (other than the Escrow Agent in its capacity as obligor under any
Qualified Investment). In the event funds in the Escrow Fund are insufficient to pay the costs of the
Project, the Lessee shall provide for such costs from its other funds outside of and apart from the
provisions for payment set forth in this Escrow Agreement.
Section 3.05. As used in this Escrow Agreement, the term “Qualified Investments” means (a)
securities which are general obligations of or are guaranteed as to the payment of principal and interest by
the United States of America; (b) obligations, debentures, notes or other evidence of indebtedness issued or
guaranteed by any of the following: Federal Home Loan Bank System, Government National Mortgage
Association, Farmers Home Administration, Federal Home Loan Mortgage Corporation or Federal
4
Housing Administration; (c) commercial paper issued by corporations organized under the laws of a state
of the United States which is rated in the highest rating category by Standard & Poor’s Ratings Services, a
division of the McGraw Hill Companies, Inc., or Moody’s Investors Service, Inc.; or (d) certificates of
deposit issued by or other forms of deposit in any national or state bank to the extent that such deposits are
fully insured by the Federal Deposit Insurance Corporation or any successor agency which is backed by the
full faith and credit of the United States. By execution of this Escrow Agreement, the Lessee also consents
to the investment and reinvestment by Escrow Agent of any moneys held as part of the Escrow Fund in
shares of a money market fund (including a money market fund for which Escrow Agent and its affiliates
provide advisory, custodial, administrative or similar services and receives fees), provided: (x) the money
market fund is registered under the Investment Company Act of 1940; (y) the money market fund has been
rated by a nationally recognized statistical rating organization in one of that organization’s three highest
mutual fund rating categories; and (z) the money market fund’s investments are limited to those Qualified
Investments listed in (a), (b) or (c) above. In the absence of duly authorized and complete directions
regarding investment of moneys held in the Escrow Fund, the Escrow Agent shall automatically invest and
reinvest the same in units of money market mutual funds, provided that such money market mutual funds
constitute a Qualified Investment.
ARTICLE 4
ESCROW AGENT’S AUTHORITY; INDEMNIFICATION
Section 4.01. The Escrow Agent may act in reliance upon any writing or instrument or signature
which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or
assertion contained in such a writing or instrument, and may assume that any person purporting to give any
writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to
do so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form,
manner and execution, or validity of any instrument deposited with it, nor as to the identity, authority or
right of any person executing the same; and its duties hereunder shall be limited to those specifically
provided herein.
Section 4.02. Unless the Escrow Agent is guilty of negligence or misconduct with regard to its
duties hereunder, the Lessee, to the fullest extent that it may lawfully do so, hereby agrees to indemnify
Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings
at law or in equity, or any other expense, fees or charges of any character or nature, which it may incur or
with which it may be threatened by reason of its acting as the Escrow Agent under this Escrow Agreement;
and in connection therewith, to indemnify the Escrow Agent against any and all expenses, including
reasonable attorneys’ fees (to the extent permitted by law) and the cost of defending any action, suit or
proceeding or resisting any claim. The Escrow Agent shall be vested with a lien on all property deposited
hereunder for indemnification, for reasonable attorneys’ fees (to the extent permitted by law), court costs,
for any suit, interpleader or otherwise, or any other expenses, fees or charges of any character or nature,
which may be incurred by the Escrow Agent by reason of disputes arising among the Lessor and the Lessee
as to the correct interpretation of the Lease or this Escrow Agreement and instructions given to the Escrow
Agent hereunder, or otherwise, with the right of the Escrow Agent, regardless of the instructions aforesaid,
to hold the said property until and unless said additional expenses, fees and charges shall be fully paid.
Section 4.03. If the Lessor and the Lessee shall be in disagreement about the interpretation of the
Lease or this Escrow Agreement, or about the rights and obligations, or the propriety of any action
contemplated by Escrow Agent hereunder, the Escrow Agent may, but shall not be required to, file an
appropriate civil action to resolve the disagreement. The Escrow Agent shall be indemnified by the Lessee
5
for all costs, including reasonable attorneys’ fees (to the extent permitted by law), in connection with such
civil action, and shall be fully protected in suspending all or part of its activities under this Escrow
Agreement until a final judgment in such action is received.
Section 4.04. The Escrow Agent may consult with counsel of its own choice and shall have full
and complete authorization and protection in acting in accordance with the opinion of such counsel. The
Escrow Agent shall not otherwise be liable for any mistakes of facts or errors of judgment, or for any acts
or omissions of any kind unless caused by its negligence or misconduct.
ARTICLE 5
ESCROW AGENT’S COMPENSATION
The Escrow Agent’s compensation for the services to be rendered hereunder is set forth in
Exhibit B hereto. Escrow Agent acknowledges that the Lessor and the Lessee have relied on its
undertakings as set forth in this Escrow Agreement. The Lessee hereby agrees to pay and/or reimburse the
Escrow Agent upon request for all expenses, disbursements and advances, investment fees or other charges,
including reasonable attorneys’ fees, incurred or made by it in connection with carrying out its duties
hereunder and such fees and charges may be deducted from investment earnings on the Escrow Fund.
ARTICLE 6
CHANGE OF ESCROW AGENT
Section 6.01. A national banking association located in the United States or a state bank or trust
company organized under the laws of a state of the United States, qualified as a depository of public funds,
may be substituted to act as the Escrow Agent under this Escrow Agreement upon agreement of the Lessor
and Lessee. Such substitution shall not be deemed to affect the rights or obligations of the parties. Upon
any such substitution, the Escrow Agent agrees to assign to such substitute Escrow Agent its rights under
this Escrow Agreement.
Section 6.02. The Escrow Agent or any successor may at any time resign by giving mailed notice
to the Lessor and the Lessee of its intention to resign and of the proposed date of resignation, which shall be
a date not less than thirty (30) days after such notice is deposited in the United States mail with postage
fully prepaid, unless an earlier resignation date and the appointment of a successor Escrow Agent shall
have been or are approved by Lessor and Lessee.
Section 6.03. The Escrow Agent may appoint an agent to exercise any of the powers, rights or
remedies granted to the Escrow Agent under this Escrow Agreement, and to hold title to property or to take
any other action which may be desirable or necessary.
ARTICLE 7
ADMINISTRATIVE PROVISIONS
Section 7.01. The Escrow Agent shall keep complete and accurate records of all moneys received
and disbursed under this Escrow Agreement, which shall be available for inspection by the Lessor and
Lessee, or the agent of either thereof, at any time during regular business hours.
6
Section 7.02. All notices, certificates, requests, demands and other communications provided for
hereunder shall be in writing and shall be (a) personally delivered, (b) sent by first class United States mail,
(c) sent by overnight courier of national reputation, or (d) transmitted by telecopy, in each case addressed
to the party to whom notice is being given at its address as set forth below and, if telecopied, transmitted to
that party at its telecopier number set forth below or, as to each party, at such other address or telecopier
number as may hereafter be designated by such party in a written notice to the other party complying as to
delivery with the terms of this Section. All such notices, requests, demands and other communications shall
be deemed to have been given on (a) the date received if personally delivered, (b) when deposited in the
mail if delivered by mail, (c) the date sent if sent by overnight courier, or (d) the date of transmission if
delivered by telecopy.
Section 7.03. This Escrow Agreement shall be construed and governed in accordance with the
laws of the State of Nebraska.
Section 7.04. Any provisions of this Escrow Agreement found to be prohibited by law shall be
ineffective only to the extent of such prohibition, and shall not invalidate the remainder of this Escrow
Agreement or the Loan Agreement.
Section 7.05. This Escrow Agreement shall be binding upon and inure to the benefit of the parties
and their respective successors and assigns.
Section 7.06. This Escrow Agreement may be simultaneously executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same Escrow
Agreement.
Section 7.07. This Escrow Agreement shall terminate upon disbursement by the Escrow Agent of
all moneys held by it hereunder.
Section 7.08. This Escrow Agreement together with the Lease and that related Ground Lease
dated as of July 1, 2009 to which both Lessor and Lessee are parties, constitutes the entire agreement of the
parties relating to the subject matter hereof.
Section 7.09. To the extent permitted by law, the terms of this Escrow Agreement shall not be
waived, altered, modified, supplemented or amended in any manner whatsoever except by written
instrument signed by the parties hereto, and then such waiver, consent, modification or change shall be
effective only in the specific instance and for the specific purpose given.
The Lessor and the Lessee may agree to amend the date specified in Section 2.03 for payment of
costs of the Project to a date no more than three years after the date of delivery of the Lease. Such
amendment shall be effected by written agreement signed by Lessor and the Lessee.
[REMAINDER OF PAGE INTENTIONALLY BLANK; EXECUTION PAGE FOLLOWS.]
8
IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the day and
year first written above.
WELLS FARGO BROKERAGE SERVICES, LLC,
Lessor
WELLS FARGO BANK, NATIONAL
ASSOCIATION, Escrow Agent
By: ____________________________By: ___________________________
Title: ___________________________Title: __________________________
Address:MAC: 9303-105
608 Second Avenue South
9th Floor
Minneapolis, Minnesota 55479
Address: Corporate Trust Department
1248 “O” Street
4th Floor
Lincoln, Nebraska 68501
Telephone (612) 667-7421 Telephone (402) 434-4431
Telecopier (612) 667-9906 Telecopier (402) 434-4612
THE CITY OF GRAND ISLAND, NEBRASKA
By:_______________________________
Title: Mayor
PO Box 1968
100 East First Street
Grand Island, NE 68802-1968
Telephone (308) 385-5444, Ext. 169
Telecopier (308) 385-5486
A-1
Exhibit A to Escrow Agreement
(FORM OF PAYMENT REQUEST)
Payment Request No. _______
The City of Grand Island, Nebraska, as lessee (the “Lessee”) under that Lease-Purchase
Agreement dated as of July 1, 2009 (the “Lease”) between Lessee and Wells Fargo Brokerage Services,
LLC, (the “Lessor”), hereby requests Wells Fargo Bank, National Association, as escrow agent (the
“Escrow Agent”) under the Escrow Agreement dated as of July 1, 2009 (the “Escrow Agreement”) among
the Escrow Agent, the Lessor and the Lessee, to make payment from the Escrow Fund (as defined in the
Escrow Agreement) to the following party or parties, at the addresses set forth below:
Payee Address
Amount To
Be Paid
Cost of Issuance
or Project
Description
In connection therewith, the undersigned officer of the Lessee hereby certifies as follows:
1.All of the provisions of the Lease and the Escrow Agreement are incorporated herein by
reference and capitalized terms used herein and not defined shall have the meanings assigned to them in the
Loan Agreement and the Escrow Agreement.
2.The payments to be made to the payees set forth above are for costs of construction and/or
acquisition of the Project (as defined in the Escrow Agreement) described above, or reimbursement to
Lessee therefor, and the payments have not been the basis for a prior request which has been paid. Any
amounts to be reimbursed to the Lessee are for advances made by the Lessee from its own funds not earlier
than May 1, 2009.
3.All of Lessee’s representations, covenants and warranties contained in the Lease and the
Certificate with Respect to Tax Matters (the “Tax Certificate”) were true and accurate in all material
respects as of the date made, and remain true and accurate in all material respects as of the date of this
Payment Request, and the Lessee has fully and satisfactorily performed all of its covenants, representations
and obligations to date required under the Lease, the Escrow Agreement and the Tax Certificate. No
Default Event has occurred under the Lease.
4.The Lessee understands that the Lessor is relying on the certifications herein with regard to
and in connection with approving the disbursement requested hereby.
A-2
5.Please indicate if this Payment Request relates to the final disbursement from the
Escrow Fund: __Yes __No.
If this Payment Request relates to the final disbursement from the Escrow Fund, the Lessee and the
Lessor hereby instruct Escrow Agent to disburse to Lessor the remaining moneys held in the Escrow Fund
to be applied to make a partial prepayment on the Rental Payments as set forth in the Lease.
6.Please indicate if this Payment Request reimburses Lessee for any payment or
payments previously made by Lessee: __Yes __No.
If this Payment Request requests such a reimbursement, the payment or payments for any
obligations originally paid by Lessee, for federal income tax purposes, was after May 1,2009.
7.Lessee attaches hereto the following items:
(a)invoices and/or bills of sale and/or contractor’s payment certifications relating
to the Project and, if such invoices have been paid by Lessee, evidence of payment thereof;
(b)an insurance certificate showing coverages as required by the Lease if such
insurance certificate has not been previously provided by Lessee to the Lessor.
LESSEE:
THE CITY OF GRAND ISLAND,
NEBRASKA
By:
Title:
Date:
Attachments:1.Invoices/Certificates for Payment
2.Insurance Certificate (if not previously provided)
B-1
Exhibit B to Escrow Agreement
SCHEDULE OF ESCROW AGENT’S FEES
C-1
STOPPED HERE
Exhibit C to Escrow Agreement
FORM OF AMENDMENT
THIS AMENDMENT TO ESCROW AGREEMENT is dated as of _________ __, 20__ (this
“Amendment”) by and between Wells Fargo Brokerage Services, LLC (the “Lessor”), the City of Grand
Island, Nebraska, (the “Lessee”) and Wells Fargo Bank, National Association, (the “Escrow Agent”).
RECITALS
A.The Lessor, the Lessee and the Escrow Agent have entered into an Escrow Agreement
dated as of July 1, 2009 (the “Escrow Agreement”).
B.Pursuant to Section 7.09 of the Escrow Agreement, the Lessor and the Lessee may,
without the consent of the Escrow Agent, amend the date specified in Section 2.03 of the Escrow
Agreement to a date no more than three years after the date of delivery of the Lease.
C.The Lessor and the Lessee desire to amend the date specified in Section 2.03 of the Escrow
Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein contained, it is hereby agreed as follows:
1.The Lessor and the Lessee amend Section 2.03 of the Escrow Agreement by replacing the
date “August 31, 2010” as it appears in the second sentence thereof with the date “_______ __, 20__.”
2.This Amendment shall become effective only upon execution hereof by duly authorized
officers or representatives of the Lessor and the Lessee.
3.All other terms and conditions of the Escrow Agreement not specifically amended by this
Amendment shall remain in full force and effect and are hereby ratified and confirmed by the Lessor and
the Lessee.
4.This Amendment may be executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment in their respective
corporate names by their duly authorized officers, all as of the date first written above.
WELLS FARGO BROKERAGE SERVICES,
LLC,Lessor
THE CITY OF GRAND ISLAND, NEBRASKA
CENTER, INC., Lessee
By: ____________________________By: ______________________________
Title: ___________________________Title: _____________________________
DOCS/910956.1
ORDINANCE NO. 9215
AN ORDINANCE PROVIDING FOR THE PURCHASE AND LEASING OF A
BUILDING AND RELATED IMPROVEMENTS TO SERVE AS A RECREATIONAL
FACILITY FOR THE CITY OF GRAND ISLAND; AUTHORIZING EXECUTION AND
DELIVERY OF A LEASE-PURCHASE AGREEMENT WITH WELLS FARGO
BROKERAGE SERVICES, LLC RELATING TO THE CONSTRUCTION AND
ACQUISITION OF SAID FACILITY; AUTHORIZING EXECUTION AND DELIVERY
OF A RELATED GROUND LEASE AND ESCROW AGREEMENT; APPROVING THE
FORMS OF DOCUMENTS WITH RESPECT TO SAID LEASE-PURCHASE
AGREEMENT, GROUND LEASE AND ESCROW AGREEMENT; PROVIDING FOR
THE APPROVAL OF AN APPRAISAL AND PROVIDING FOR THE PUBLISHING OF
THIS ORDINANCE
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “City”) as follows:
Section 1. The Mayor and Council hereby find and determine: that the City is in
need of a recreational facility (the “Project”) to provide for indoor sporting programs and
other indoor recreational activities and to serve as a facility for accommodating activities of
the Nebraska State Fair Board (the “Board”) upon transfer of State Fair activities to Hall
County; that Wells Fargo Brokerage Services, LLC, (“Wells Fargo”) has indicated its
willingness to act as lessor for the purposes of acquiring, constructing and leasing such
Project to the City for such purposes and has offered to enter into a Lease-Purchase
Agreement (the “Lease”) with the City whereby the City may acquire the Project to be built
in accordance with specifications approved by the Mayor and Council and provided by the
Board, all pursuant to the provisions of Section 19-2421, R.R.S. Neb. 2007; that Hall
County Livestock Improvement Association (“Fonner Park”) has agreed to provide a site for
the Project under the terms of a Ground Lease (the “Ground Lease”) between Fonner Park
as ground lessor and the City and Wells Fargo as lessees; that for purposes of governing the
disbursement of funds provided by Wells Fargo in accordance with the Lease, the City,
Wells Fargo and Wells Fargo Bank, National Association, (the “Escrow Agent”) shall enter
into an Escrow Agreement (the “Escrow Agreement”); that the documents necessary for
such purposes have been prepared and said documents should be approved and their
execution authorized.
Section 2. The City of Grand Island shall enter into the Lease (to be dated as
determined by the executing officers as of the time of its execution and delivery) with Wells
Fargo and whereby Wells Fargo, with the City acting as its agent and contracting for
construction and acquisition under a contract or contracts determined upon and awarded by
the Board, will construct and acquire the Project in accordance with specifications approved
or to be approved by the Mayor and Council of the City (with the schedule of rental
payments (“Rental Payments”) relating to the leasing and acquisition of the Project to be set
forth in an exhibit to the Lease and that the Lease in the form presented at this meeting is
hereby approved.
Approved as to Form¤ ___________ April 24, 2009 City Attorney
ORDINANCE NO. 9215 (Cont.)
Section 3. The City of Grand Island shall enter into the Ground Lease (to be dated
as determined by the executing officers as of the time of its execution and delivery) with
Wells Fargo and Fonner and whereby Wells Fargo and the City shall lease from Fonner the
site for the Project and that the Ground Lease in the form presented at this meeting is hereby
approved.
Section 4. The City of Grand Island shall enter into the Escrow Agreement (to be
dated as determined by the executing officers as of the time of its execution and delivery)
with Wells Fargo and the Escrow Agent and whereby amounts deposited by Wells Fargo for
payment of construction and acquisition costs of the Project will be held and applied to
payment of costs of the Project and that the Escrow Agreement in the form presented at this
meeting is hereby approved.
Section 5. The City of Grand Island by separate resolution shall approve and enter
into contracts for the construction and acquisition of the Project in accordance with terms
and directions specified by the Board and in so acting shall be the agent of Wells Fargo such
that title to the Project from and after the time of its acquisition shall be and constitute the
separate property of Wells Fargo with the City having beneficial ownership under the terms
of the Lease and the Ground Lease.
Section 6. The Mayor and City Clerk of the City be and they are hereby authorized
and directed to execute and deliver on behalf of the City the Lease, the Ground Lease and
the Escrow Agreement, including any necessary counterparts, in substantially the form and
content as presented to the meeting at which final passage of this Ordinance has occurred,
but with such changes or modifications therein as to them seem necessary, desirable or
appropriate on behalf of the City; and said Mayor, the City Clerk, the City Finance Director
and the City Administrator are further authorized and directed to execute and deliver any
other documents or certificates and to do all other things necessary or appropriate in
connection with the Lease, the Ground Lease and the Escrow Agreement.
Section 6. In connection with the execution and delivery of the Lease, the Ground
Lease and the Escrow Agreement, the following determinations and approvals are hereby
made by the Mayor and Council:
(a) The City hereby declares, as provided in the Lease, that it will
take title to the Project when all of the Rental Payments specified in the
Lease have been paid in full or otherwise satisfied.
(b) The designation in the Escrow Agreement of the City
Administrator and/or the City Finance Director to act on behalf of the City in
approving disbursements of funds deposited by Wells Fargo under the terms
of the Lease and the Escrow Agreement is hereby approved.
(c) Prior to the execution and delivery of the Lease, the Ground
Lease and the Escrow Agreement, there shall be placed on file with the City
ORDINANCE NO. 9215 (Cont.)
Clerk an appraisal report for the Project prepared by a certified appraiser in
accordance with Section 13-403, R.R.S. Neb. 2007.
(d) The Mayor and Council hereby acknowledge that the proposed
transfer of the State Fair from Lancaster County to Hall County has been
authorized by LB 1116 as enacted by the Second Session (2008) of the One
Hundredth Legislature of the State of Nebraska (“LB 1116”) and that there is
currently pending in the District Court of Lancaster County, Nebraska, the
case of _______________________ (______) (the “Pending Litigation”);
that the City is a party to the Pending Litigation but no temporary restraining
order, preliminary injunction, permanent injunction or other order restricting
action by the City has been entered or is expected to be entered prior to the
time (the “Anticipated Commitment Time”) when execution and delivery of
the Lease, the Ground Lease and the Escrow Agreement are expected to be
required in order for construction to be timely completed; that the City’s
authority to enter into the Lease, the Ground Lease and the Escrow
Agreement for the Project as a recreational facility for the benefit of the
citizens of Grand Island, independent of the provisions of LB 1116, is not
questioned or challenged in the Pending Litigation; that the Pending
Litigation will not likely be finally resolved before the Anticipated
Commitment Time; and that the Mayor and Council hereby declare the
City’s intention to proceed with entering into the Lease, the Ground Lease
and the Escrow Agreement without respect of the validity of LB 1116 and in
order to serve the general governmental purpose of obtaining a recreational
facility for the benefit of the City and its citizens.
(e) The principal amount for financing to be arranged under the
terms of the Lease, the Ground Lease and the Escrow Agreement shall not
exceed $5,000,000; the term of the Lease and the financing provided thereby
shall not extend beyond ten years from the date of execution and delivery of
the Lease and the interest rate relating to the interest component of the
Rental Payments shall not exceed six percent per annum.
Section 6. The Mayor and Council hereby state that it is the intention of the City
that interest on the interest component of the Rental Payments under the Lease shall be
excludable from gross income under the federal income tax by virtue of Section 103 of the
Internal Revenue Code of 1986, as amended, (the “Code”) and the Mayor and Council
hereby authorize the Mayor, the City Clerk and the City Treasurer (Finance Director) (or
any one of more of them) to take all actions necessary or appropriate to carry out said
intention and for obtaining such interest exclusion. The City hereby covenants with Wells
Fargo and any permitted assigns of Wells Fargo that it will make no use of the proceeds of
said issue, including monies held in any sinking fund for the Rental Payments to be set forth
in the Lease-Purchase Agreement which would cause the City’s obligation under the Lease
to constitute an “arbitrage bond” within the meaning of Section 103 and 148 and other
related sections of the Code and further covenants to comply with said Sections 103 and 148
and related sections and all applicable regulations thereunder throughout the term of the
ORDINANCE NO. 9215 (Cont.)
Lease, including all requirements with respect to reporting and payment of rebates, if
applicable. The Lease is hereby designated by the City as one of its “qualified tax-exempt
obligations” under Section 265(b)(3)(B)(i)(III) of the Code and the City in connection with
entering into the Lease hereby covenants and warrants that it does not anticipate issuance
directly by it or on its behalf of tax-exempt bonds or other tax-exempt interest bearing
obligations in an amount exceeding $30,000,000 in calendar 2009 (taking into
consideration the exception for current refunding issues).
Section 7. This Ordinance shall be in force and take effect from and after its
publication as provided by law.
Passed and approved this ______ day of May, 2009.
____________________________________
Margaret Hornady, Mayor
Attest:
________________________________
RaNae Edwards, City Clerk
Item G1
Approving Minutes of April 14, 2009 City Council Regular Meeting
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: RaNae Edwards
City of Grand Island City Council
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL REGULAR MEETING
April 14, 2009
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 April 14, 2009. Notice of the meeting was given in The Grand Island Independent on
April 8, 2009.
Mayor Hornady called the meeting to order at 7:00 p.m. The following City Council members
were present: Councilmember’s Meyer, Nie mann, Haase, Gilbert, Carney, Dugan, Ramsey,
Nickerson, Zapata, and Gericke. The following City Officials were present: City Administrator
Jeff Pederson, City Clerk RaNae Edwards, Finance Director David Springer, Assistant City
Attorney Wes Nespor, and Public Works Director Steve Riehle.
INVOCATION was given by Mayor Hornady followed by the PLEDGE OF ALLEGIANCE.
MAYOR COMMUNICATION: Mayor Hornady introduced Community Youth Council
members Claire Mackey, Yasin Ali, and Board Member Carole Ostdiek. Mayor Hornady
recognized Kerry Garza who received the 2009 Nebraska Coalition for Victims of Crime
“Victim Advocate Award”.
PRESENTATIONS AND PROCLAMATIONS:
Proclamation “Community Development Week” April 12-18, 2009. Mayor Hornady proclaimed
the week of April 12-18, 2009 as “Community Development Week”. Joni Kuzma, Community
Development Administrator was present to receive the proclamation.
Proclamation “Child Abuse Prevention Month” April, 2009. Mayor Hornady proclaimed the
month of April, 2009 as “Child Abuse Prevention Month”. Diane Mulbach was present to
receive the proclamation and hand out blue ribbons.
Proclamation “Nebraska Public Health Month, 2009. Mayor Hornady proclaimed the month of
April, 2009 as “Nebraska Public Health Month”. Ryan King with the Central District Health
Department was present to receive the proclamation.
Proclamation “National Braille Readers are Leaders Week” April 20-27, 2009. Mayor Hornady
proclaimed the week of April 20-27, 2009 as “National Braille Readers are Leaders Week”.
Sibby Lebeau was present to receive the proclamation.
Proclamation “Alcohol Awareness Month” April, 2009. Mayor Hornady proclaimed the month
of April, 2009 as “Alcohol Awareness Month”. Becky Burks and several youth with Project
Extra Mile were present to receive the proclamation.
PUBLIC HEARINGS:
Public Hearing on Request from Skagway Discount Dept. Stores, Inc. dba Skagway, 620 State
Street for a Class “CK” Liquor License. RaNae Edwards, City Clerk reported that an application
Page 2, City Council Regular Meeting, April 14, 2009
for a “CK” Liq uor License had been received from Skagway Discount Dept. Stores, Inc. dba
Skagway, 620 State Street. Ms. Edwards presented the following exhibits for the record:
application submitted to the Liquor Control Commission and received by the City on March 18,
2009; notice to the general public of date, time, and place of hearing published on April 4, 2009;
notice to the applicant of date, time, and place of hearing mailed on March 23, 2009; along with
Chapter 4 of the City Code. Staff recommended approval contingent upon final inspections. No
public testimony was heard.
Public Hearing on Request from Chris & Scott Woodward for a Conditional Use Permit for a
Recycling Operation Located on St. Paul Road between Capital Avenue and Airport Road. Craig
Lewis, Building Department Director reported that Chris Woodward representing Clark Brothers
Sanitation had applied for a Conditional Use Permit for a recycling center located at 3105 N. St.
Paul Road. It was recommended council approve the conditional use permit with the conditions
as set out in the City Code and the additional condition that “all yard waste composting
operations shall be located at least 600’ from St. Paul Road and 12’ from the north, south, and
east property lines. Yard waste composting shall be turned and screened at least once each 30
days.”
The following people spoke in opposition:
Jay Stoddard, 1810 West Charles Street
Terry Hahn, 888 Eilenstine Road
Craig Akerly, 3059 St. Paul Road
Leila Nelson, 3003 St. Paul Road
Trish Akerly, 3059 St. Paul Road
Anne Puncochar, 3070 N. St. Paul Road
Harlan Puncochar, 3070 N. St. Paul Road
Barb Olsufka, Marquette, NE
Bob Pollock, 2750 St. Paul Road
Daryl Lutes, 2986 N. St. Paul Road
Robert Kreider, 3135 St. Paul Road
Tim Puncochar, 913 West 2nd Street
Chris Woodward, 131 Bismark Road spoke in support. No further public testimony was heard.
Public Hearing on the Semi-Annual Report by the Citizens’ Review Committee (CRC) on the
Economic Development Program Plan. Mark Stelk, CRC Vice-President gave the semi-annual
report. No public testimony was heard.
Public Hearing on Community Revitalization CDBG Assessment Grant Application. Joni
Kuzma, Community Development Administrator reported that the City was one of eight eligible
communities to update or revise the 2005 Comprehensive Needs Assessment and a
Revitalization Strategy. The City is requesting a Planning Grant for $12,000.00, plus $840.00 in
General Administration with the City providing a required 25% match of $4,000.00. Staff
recommended approval. No public testimony was heard.
Public Hearing on Acquisition of Utility Easement Located on the South Side of Trust Street
from North Road to Good Samaritan Place (Chief Industries, Inc.). Gary Mader, Utilities Director
reported that a utility easement was needed on the south side of Trust Street from North Road to
Page 3, City Council Regular Meeting, April 14, 2009
Good Samaritan Place in order to have access to install, upgrade, maintain, and repair power
appurtenances, including lines and transformers. The easement would be used to place conduit and
three phase pr imary cable along the south side of Trust Street. Staff recommended approval. No
public testimony was heard.
Public Hearing on Application for Edward Byrne Memorial Justice Assistance Grant (JAG)
2009. Police Chief Steve Lamken reported that the Grand Island Police Department and Hall
County Sheriff’s Department were eligible to receive Justice Assistance Grant money in the
amount of $84,913.50 and $28,304.50 respectively. Staff recommended approval. No public
testimony was heard.
Public Hearing on Acquisition of Lease Agreement with the State of Nebraska, Department of
Administrative Services for Property located South of Eagle Scout Lake, West of Broadwell
Avenue and North of Highway 2. City Administrator Jeff Pederson reported that negotiations
had taken place to relocate the softball facilities currently located at Fonner Park to a new
location south of Eagle Scout Lake. The proposed lease would be for 99 years for a nominal sum
of $1.00 per year. Staff recommended approval. No public testimony was heard.
CONSENT AGENDA: Consent agenda item G-5 was pulled for further discussion. Motion by
Zapata, second by Ramsey to approve the Consent Agenda excluding item G-5. Upon roll call
vote, all voted aye. Motion adopted.
Receipt of Official Document – Tort Claim Filed by Motor Car Engineering.
Receipt of Official Documents – Pawnbroker’s official Bonds for Bronx Pawn, G.I. Loan Shop,
and Wayne’s Pawn Shop.
Approving Minutes of March 24, 2009 City Council Regular Meeting.
#2009-72 – Approving Final Plat and Subdivision Agreement for Devall Subdivision. It was
noted that Ronald and Tonya Devall, owners had submitted the Final Plat and Subdivision
Agreement for Devall Subdivision for the purpose of creating 1 lot north of U.S. Hiwy 30, south
of Capital Avenue and east of Shady Bend Road comprising of approximately 7.446 acres.
#2009-74 – Approving Semi-Annual Report by the Citizens’ Review Committee on the
Economic Development Program Plan.
#2009-75 – Approving Community Revitalization CDBG Assessment Grant Application.
#2009-76 – Approving Acquisition of Utility Easement Located on the South Side of Trust Street
from North Road to Good Samaritan Place (Chief Industries, Inc.).
#2009-77 – Approving Reserve Sharing Agreement between the City of Grand Island Utilities
Department and Nebraska Public Power District.
#2009-78 – Approving Interlocal Agreement with Hall County Airport Authority Regarding Law
Enforcement Services.
Page 4, City Council Regular Meeting, April 14, 2009
#2009-79 – Approving Rescission of NO PARKING ZONE on the North Side of Koenig Street
from Pine Street West 55 Feet.
#2009-80 – Approving Authorization for Emergency Sanitary Sewer Manhole Repair on Locust
Street between Anna Street and John Street with the Diamond Engineering Company of Grand
Island, Nebraska in an Amount not-to-exceed $30,000.00.
#2009-81 – Approving Change Order No. 1 for Application of a Corrosive Resistant Coating
System to Concrete Surfaces of Odorous Air Scrubbing Filter (WWTP Bio Filter No. 1) with
Mongan Painting Co., Inc. of Cherokee, Iowa for a Decrease of $1,500.00 and a Revised
Contract Amount of $39,981.29.
#2009-82 – Approving Certificate of Final Completion for the Application of a Corrosive
Resistant Coating System to Concrete Surfaces of Odorous Air Scrubbing Filter (WWTP Bio
Filter No. 1) with Mongan Painting Co., Inc. of Cherokee, Iowa.
#2009-83 – Approving Certificate of Final Completion for the Application of a Corrosive
Resistant Coating System to Concrete Surfaces of Odorous Air Scrubbing Filter (WWTP Bio
Filter No. 2) with Mongan Painting Co., Inc. of Cherokee, Iowa.
#2009-84 – Approving Application for Edward Byrne Memorial Justice Assistance Grant (JAG)
2009.
#2009-85 – Approving Contract Extension with the Grand Island Skeet and Sporting Clays Club,
Inc.
#2009-86 – Approving Sale of #6 Fuel Oil – Burdick Station with Jebro, Inc. of Sioux City, Iowa
in an Amount of $0.45 per gallon.
#2009-87 – Approving Intent to Annex Property Located South of Case New Holland and West
of Highway 281.
#2009-88 – Approving Amendment No. 2 to the Agreement for Engineering Consulting Services
for Storm Sewer Design Relative to the Wasmer Detention Cell with Kirkham Michael of
Omaha, Nebraska in an Amount of $7,730.00.
#2009-73 – Approving Final Plat and Subdivision Agreement for Woodland Park Eighth
Subdivision. It was noted that Woodland Park Townhomes, LLC, owner had submitted the Final
Plat and Subdivision Agreement for Woodland Park Eighth Subdivision for the purpose of
creating 14 lots east of Independence Avenue and north of Capital Avenue comprising of
approximately 4.636 acres.
Discussion was held regarding a drainage plan.
Motion by Gilbert, second by Dugan to approve Resolution #2009-73. Upon roll call vote, all
voted aye. Motion adopted.
Page 5, City Council Regular Meeting, April 14, 2009
REQUESTS AND REFERRALS:
Consideration of Request from Chris & & Scott Woodward for a Conditional Use Permit for a
Recycling Operation Located on St. Paul Road between Capital Avenue and Airport Road. This
item related to the aforementioned Public Hearing. Discussion was held regarding zoning
requirements, enforcement, compost versus recycling, and odor issues.
Motion by Nickerson, second by Dugan to deny the request from Chris Woodward for a
Conditional Use Permit based on the findings of the potential environmental risks and dangerous
health, will adversely affect quality of life, and is not harmonious with the surrounding area.
Upon roll call vote, all voted aye. Motion adopted.
RESOLUTIONS:
#2009-89 – Consideration of Request from Skagway Discount Dept. Stores, Inc. dba Skagway,
620 State Street for Class “CK” Liquor License and Liquor Manager Designation for James
Phipps, 1809 West Anna Street. This item related to the aforementioned Public Hearing.
Motion by Meyer, second by Ramsey to approve Resolution #2009-89 contingent upon final
inspections. Upon roll call vote, all voted aye. Motion adopted.
#2009-90 – Consideration of Resolution of Intent to Disestablish Business Improvement District
No. 8. City Administrator Jeff Pederson reported that at the March 24, 2009 City Council
meeting petitions were submitted from property owners requesting the disestablishment of
Business Improvement District No. 8. State Statures require a Resolution to be adopted setting
the date and time for a Public Hearing.
Motion by Carney, second by Meyer to approve Resolution #2009-90.
A lengthy discussion was held on the process to disestablish BID’s. Assistant City Attorney Wes
Nespor explained the process of the public hearing and answered questions. Bruce Eberle
representing BID #8 commented on the town hall meeting and the positive out come.
Motion by Carney, second by Gericke to insert Item 4 to read: “An Ordinance to disestablish
Business Improvement District No. 8 shall be voted upon at the same meeting as the meeting
where the Public Hearing is held, be that May 12, 2009 or some other date.” Upon roll call vote,
councilmember’s Niemann, Haase, Carney, and Gericke voted aye. Councilmember’s Meyer,
Gilbert, Dugan, Ramsey, Zapata, and Nickerson voted no. Motion failed.
Upon roll call vote of the original motion, Councilmember’s Meyer, Niemann, Haase, Carney,
Ramsey, Nickerson, and Gericke voted aye. Councilmember’s Gilbert, Dugan, and Zapata voted
no. Motion adopted.
#2009-91 – Consideration of Acquisition of Lease Agreement with the State of Nebraska,
Department of Administrative Services for Property Located South of Eagle Scout Lake, West of
Broadwell Avenue and North of Highway 2. This item related to the aforementioned Public
Hearing. Discussion was held concerning the $1.5 million development of the softball and soccer
fields and State Fair relocation.
Page 6, City Council Regular Meeting, April 14, 2009
Motion by Ramsey, second by Meyer to approve Resolution #2009-91. Upon roll call vote, all
voted aye. Motion adopted.
#2009-92 – Consideration of Bid Award Approval for Sanitary Sewer District No. 76
Replacement; Vine Street between Ashton Avenue and Koenig Street. This item was pulled from
the agenda.
#2009-93 – Consideration of Resolution Directing Property Owner to Repair Sidewalk at 2605-
2611 Forrest Street. Steve Riehle, Public Works Director reported that Suzanne F. Swanson was
sent a letter on November 5, 2008 concerning the necessary repairs to the sidewalk at 2605 –
2611 Forrest Street. As the sidewalks have yet to be repaired, staff recommended sending a
notice to Suzanne F. Swanson to obtain a sidewalk permit within 15 days and within 15 days of
such permit issuance to make the necessary repairs, otherwise the City would cause the work to
be done and assess the cost against the property.
Motion by Meyer, second by Dugan to approve Resolution #2009-93. Upon roll call vote,
Councilmember’s Meyer, Niemann, Gilbert, Carney, Dugan, Ramsey, Zapata, Nickerson, and
Gericke voted aye. Councilmember Haase voted no. Motion adopted.
PAYMENT OF CLAIMS:
Motion by Dugan, second by Gericke to approve the Claims for the period of March 25, 2009
through April 14, 2009, for a total amount of $3,441,888.64. Unanimously approved.
ADJOURNMENT: The meeting was adjourned at 9:05 p.m.
RaNae Edwards
City Clerk
Item G2
Approving Minutes of April 21, 2009 City Council Study Session
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: RaNae Edwards
City of Grand Island City Council
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
April 21, 2009
Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand
Island, Nebraska was conducted in the Community Meeting Room of City Hall, 100 East First Street,
on April 21, 2009. Notice of the meeting was given in the Grand Island Independent on April 15,
2009.
Mayor Margaret Hornady called the meeting to order at 7:00 p.m. The following Councilmember’s
were present: Gericke, Nickerson, Ramsey, Dugan, Carney, Haase, Gilbert, Niemann, and Meyer.
Councilmember Zapata was absent. The following City Officials were present: City Administrator
Jeff Pederson, City Clerk RaNae Edwards, Assistant City Attorney Wes Nespor, and Finance
Director David Springer.
INVOCATION was given by Mayor Margaret Hornady followed by the PLEDGE OF
ALLEGIANCE.
Presentation by SCORE Group. Brian Gallagher, Chairman of the Greater Grand Island Sports
Council presented a PowerPoint presentation explaining the benefits of recruiting, organizing, and
hosting sporting events in our community. Economic benefits as well as quality of life enhancements
were mentioned. Also mentioned was the 2010 and 2011 NSAA State Volleyball Championships to
be hosted by Hastings and Grand Island.
The following events had been hosted by Grand Island:
· National 4-H Shooting Invitational
· NE Cheer & Dance Championship
· Soccer Showcase
Other possible events that could be hosted were:
· Bowling
· Basketball
· Gymnastics
· Darts/Pool
· Cycling
· Tennis
· Dog Agility
· Remote Controlled Cars
· Other NSAA Championships
Requested were funds from the city to help host these events. Discussion was held on the amount of
assistance. Mr. Gallagher stated an annual support of $100,000 handled through the Convention
Visitors Bureau was requested. Orv Qualsett commented on the importance of recognition Grand
Island was receiving through these events.
Transmission Line and Substation Engineering Study; Northern Interconnection Route Analysis.
Gary Mader, Utilities Director reported that Advantage Engineering, Inc. had been hired to do a
Page 2, City Council Study Session, April 21, 2009
Route Study for new 115 kV Line – Substation F to St. Libory Junction. Mr. Mader stated electric
distribution substations loop were along the outer edge of the urban area. With the continued growth
of the City, future transmission lines would improve the reliability of interconnections with other
substations.
Barry Smith with Advantage Engineering, Inc. presented a PowerPoint presentation explaining the
study. The objective of the study was to find a route most advantageous to the City for the Grand
Island Utilities Department (GIUD) Substation F to NPPD St. Libory Junction 115 kV regional
transmission line interconnection.
The route recommended was Alternate Route 5 for the following reasons:
1. The route is slightly shorter and more direct than the other alternate routes.
2. This route requires the least number of angle structures.
3. This route passes near the least number of homes of any other route.
4. This route is estimated to cost less than the other four routes evaluated.
The following four phases were explained in the analysis of recommending the most suitable
transmission line route:
1. Phase 1 – Identification of the study area and exclusion areas within the study area, and a
general characterization of the major land uses within the study area.
2. Phase 2 – identification of the project technical requirements including the safety
requirements, line configuration, right-of-way requirements, radio and TV interference,
audible noise, and electric and magnetic field information.
3. Phase 3 – Development of alternate transmission line routes in accordance with project
requirements, considering the exclusion areas and routing criteria.
4. Phase 4 – Evaluation of alternate routes leading to the identification of a preferred line route.
Estimated easement costs for Route 5 was $127,554 with a total of 31.89 acres and 26 new easements
required. Total construction for Route 5 was $6,975,914 which was less than the other 4 routes
evaluated.
Discussion was held regarding the vulnerability of the current loops. Underground versus overhead
lines were discussed. Mr. Smith stated cost of underground was not cost effective. Mr. Mader
answered questions regarding the process of notifying property owners in the area. Wes Nespor,
Assistant City Attorney stated Council would have to decide which route would be approved before
notification could be given.
David Springer, Finance Director answered questions concerning the payment of the project.
Currently there was enough cash to proceed with the project or the City could bond. Mr. Mader
pointed out those lines that interconnected with NPPD. Distribution feeders were mentioned.
ADJOURNMENT: The meeting was adjourned at 8:05 p.m.
RaNae Edwards
City Clerk
Item G3
#2009-94 - Approving Payment for Services to Platte Valley
Communications
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Steve Lamken
City of Grand Island City Council
Council Agenda Memo
From: Steven Lamken, Police Chief
Meeting: April 28, 2009
Subject: Approving Payment for Services - Platte Valley
Communications
Item #’s: G-3
Presenter(s): Steven Lamken, Police Chief
Background
The Police Department has Platte Valley Communications change out equipment in our
patrol fleet cars when we put new cars into service. We have arranged for a purchase
order on each car to accompany the work in past years. Purchase orders did not
accompany the work this year due to changes in personnel processing the work orders.
The Police Department would like to pay Platte Valley Communications for the work
they have performed on our behalf.
Discussion
The Police Department recently had the equipment switched out of six old patrol fleet
vehicles and installed in six new vehicles. The work was performed by Platte Valley
Communications. The scope of the work includes the removal and installation of the:
Mobile computer system
Mobile video system
Mobile radar
Radios and GPS system
Emergency lights/sirens and controllers
Security cage and gun lock systems.
The cost per unit can and does vary based upon the type of cars, equipment removed and
installed and materials used. The costs this year for the six vehicle changeovers was:
$ 1584.24
1584.24
1597.19
1984.50
1984.50
2035.35
$10770.02 Total
Platte Valley Communications has performed this work for the Police Department several
times in past years. In past years, a purchase order was prepared for the change over costs
for each new vehicle when the work was done. Unfortunately, this was not done this year
and the work was performed on the six cars without purchase orders being approved. The
Police Department supervisor who manages the fleet was absent on medical leave and
another supervisor who did the work misunderstood that the work could not be done
under the open purchase order we have at Platte Valley due to the amount of the cost of
the work. Platte Valley Communications had a different person doing the billing than
from previous years and also did not know about the threshold limit for open purchase
orders.
We respectfully request to pay Platte Valley Communications for the work they have
performed.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Approve the payment
2. Not pay for the work
Recommendation
City Administration recommends that the Council approve the payme nt of $10,770.02 for
changing out Police Department vehicles equipment to Platte Valley Communications.
Sample Motion
Move to approve the payment of $10,770.02 for changing out Police Department vehicles
equipment to Platte Valley Communications.
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009–94
WHEREAS, The Police Department had Platte Valley Communications perform work in
changing out equipment in six patrol fleet vehicles, and
WHEREAS, Platte Valley Communications has performed the work, and
WHEREAS, the total cost of the work was $10,770.02
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is, authorized and
directed to authorize the payment of $10,770.02 to Platte Valley Communications for work performed on
patrol fleet vehicles.
---
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________
Margaret Hornady, Mayor
Attest:
_______________________________
RaNae Edwards, City Clerk
Item G4
#2009-95 - Approving Neighborhood Stabilization Community
Development Block Grant Application
This item relates to the aforementioned Public Hearing Item E-2.
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Joni Kuzma
City of Grand Island City Council
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-95
WHEREAS, the City of Grand Island, Nebraska, is an eligible unit of a general local
government authorized to file an application under the Housing and Community Development Act of 1974
as Amended for Small Cities Community Development Block Grant Program (CDBG) and Title III of
Division B of the Housing and Economic Recovery Act of 2008 for funds distributed by the Department of
Economic Development through the Neighborhood Stabilization Program (NSP); and
WHEREAS, the City of Grand Island, Nebraska, has obtained it citizens’ comments on
community development and housing needs; and has conducted public hearing(s) upon the proposed
application and received favorable public comment respecting the application for an amount of $993,712 to
purchase and demolish up to six abandoned or foreclosed structures and to redevelop the vacant land with
new housing; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that:
The City of Grand Island, Nebraska is hereby authorized to apply for Community
Development Block Grant Neighborhood Stabilization Program funds; and the Mayor is hereby authorized
and directed to execute such grant application and any and all contracts, documents or other memoranda
between the City of Grand Island and the Nebraska Department of Economic Development so a to effect
acceptance of the grant application.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________
RaNae Edwards, City Clerk
Item G5
#2009-96 - Approving Utility Easement - Wildwood Drive and 1/2
Mile West of U.S. Hwy. 281 - Knuth
This item relates to the aforementioned Public Hearing Item E-1.
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Gary R. Mader
City of Grand Island City Council
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-96
WHEREAS, a public utility easement is required by the City of Grand Island, from Larry and
Karen Knuth, to survey, construct, inspect, maintain, repair, replace, relocate, extend, remove, and operate
thereon, public utilities and appurtenances, including lines and transformers; and;
WHEREAS, a public hearing was held on April 28, 2009, for the purpose of discussing the
proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows:
Commencing at the southwest corner of the West Half of the Southeast Quarter (W1/2, SE1/4)
of Section One (1), Township Ten (10) North, Range Ten (10) West of the 6th P.M., Hall
County, Nebraska; thence northerly along the westerly line of said West Half of the Southeast
Quarter (W1/2, SE1/4) on an assumed bearing of N00°07’28”W, a distance of forty (40.0) feet
to the southwest corner of Lot One (1) Knuth Subdivision; thence easterly along the southerly
line of said Lot One (1) N87°53’14”E, a distance of twenty five (25.0) feet to the ACTUAL
Point of Beginning; thence northerly along the easterly line of a twenty five (25.0) foot wide
Utility and Access Easement N00°07’28”W, a distance of three hundred sixty four (364.0) feet;
thence easterly along the southerly line of a Utility Easement N87°53’14”E, a distance of ten (10)
feet; thence S00°07’28”E, a distance of three hundred sixty four (364.0) feet to the southerly
line of said Lot One (1); thence westerly along the southerly line of said Lot One (1)
S87°53’14”W, a distance of ten (10.0) feet to the said Point of Beginning.
The above-described easement and right-of-way containing a total of 0.084 acres, more or less,
as shown on the plat dated 4/9/2009, marked Exhibit "A", attached hereto and incorporated
herein by reference,
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire a public
utility easement from Larry J. Knuth and Karen L. Knuth, on the above-described tract of land.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item G6
#2009-97 - Approving Bid Award - Cooling Tower Rebuild - Fall
of 2009 - Platte Generating Station
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Gary R. Mader;Wesley Nespor
City of Grand Island City Council
Council Agenda Memo
From: Gary R. Mader, Utilities Director
Wesley Nespor, Asst. City Attorney/Purchasing
Meeting: April 28, 2009
Subject: Cooling Tower Rebuild Fall 2009
Item #’s: G-6
Presenter(s): Gary R. Mader, Utilities Director
Background
The Platte Generating Station utilizes a cooling tower as part of the plant’s cooling water
system. The cooling tower is constructed of wood and fiberglass specially treated for
constant exposure to water and the outdoor elements. It has been in nearly continuous
service since 1982.
The tower is periodically inspected by third party consultants, who provide evaluation of
structural condition and, if problems are found, make recommendations for corrective
actions. Cooling tower repair is performed by contractors specializing in furnishing and
installing cooling tower components. This project is the third and final phase of repairs as
determined by the 2007 inspection. The work proposed for this year includes replacement
of the tower internal structural components, fill, and drift eliminators. Previous phases
have included replacement of the tower’s decking, external structural components, and
louvers. The plant engineering staff developed specifications for this third phase. The
repair work is scheduled for the fall 2009 scheduled maintenance outage.
Discussion
The specifications for the Cooling Tower Rebuild Fall 2009 were advertised and issued
for bid in accordance with the City Purchasing Code. Bids were publicly opened on
April 14, 2009. Specifications were sent to five potential bidders and responses were
received as listed below. The engineer’s estimate for this project was $1,400,000.00.
Bidder Bid Price
International Cooling Tower, Inc. $1,140,000.00
EvapTech, Inc. $1,187,658.00
Midwest Towers, Inc. $1,175,066.00
SPX Cooling Technologies, Inc. $1,574,868.00
The bids were reviewed by plant engineering staff. International Cooling Tower, Inc., and
EvapTech, Inc., have noted no exceptions. Midwest Towers, Inc. noted that it can not
guarantee the thermal performance of the specified fill, and offered an alternative fill for
a deduct cost of $37,871. SPX Cooling Technologies, Inc. also took exception to the
specified fill, and proposed an alternative. Neither of these exceptions are considered
acceptable.
The bid from International Cooling Towers is compliant with specifications and less than
the engineer’s estimate.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Council award the Contract for Cooling Tower
Rebuild Fall 2009 to International Cooling Tower, Inc. of Edmonton, Canada, as the low
responsive bidder, with the bid price of $1,140,000.00.
Sample Motion
Move to approve award of the bid of $1,140,000.00 from International Cooling Tower,
Inc. for the Cooling Tower Rebuild Fall 2009 as submitted.
Purchasing Division of Legal Department
INTEROFFICE MEMORANDUM
Wes Nespor, Purchasing Agent
Working Together for a
Better Tomorrow, Today
BID OPENING
BID OPENING DATE: April 14, 2009 at 11:00 a.m.
FOR: Cooling Tower Rebuild Fall 2009
DEPARTMENT: Utilities
ESTIMATE: $1,400,000.00
FUND/ACCOUNT: 520
PUBLICATION DATE: March 20, 2009
NO. POTENTIAL BIDDERS: 5
SUMMARY
Bidder: Evap Tech, Inc. Midwest Towers, Inc.
Lenexa, KS blue Springs, MO
Bid Security: Western Surety Company Ullico Casualty Company
Exceptions: None Noted
Bid Price:
Material: $454,675.00 $481,946.00
Labor: 701,155.00 665,342.00
Sales Tax: 31,828.00 27,778.00
Total Bid: $1,187,658.00 $1,175,066.00
Bidder: International Cooling Tower SPX Cooling Technologies, inc.
Edmonton, Canada Overland Park, KS
Bid Security: The Hartford Fire Insurance Co. Liberty Mutual Ins. Co.
Exceptions: None Noted
Bid Price:
Material: $540,000.00 $ 445,554.00
Labor: 570,000.00 1,020,767.00
Sales Tax: 30,000.00 32,169.00
Total Bid: $1,140,000.00 14,000.00 Performance Bonds
62,378.00 Freight
$1,574,868.00
P1333
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-97
WHEREAS, the City Electric Department invited sealed bids for Cooling Tower Rebuild
for the fall of 2009 at Platte Generating Station; and
WHEREAS, on April 14, 2009, bids were received, opened and reviewed; and
WHEREAS, International Cooling Tower, Inc., of Edmonton, Canada, submitted a bid in
accordance with the terms of the advertisement of bids and plans and specifications and all other statutory
requirements contained therein, such bid being in the amount of $1,140,000.00; and
WHEREAS, the bid of International Cooling Tower, Inc., of Edmonton, Canada is less than
the estimate for Cooling Tower Rebuild at Platte Generating Station.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of International Cooling Tower, Inc., of
Edmonton, Canada in the amount of $1,140,000.00 for Cooling Tower Rebuild at Platte Generating Station
is hereby approved as the lowest responsible bid.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item G7
#2009-98 - Approval to Proceed with Transmission Line Easement
Acquisitions - North Route Transmission Line Work
This item relates to the aforementioned Public Hearing Item E-4.
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Gary R. Mader
City of Grand Island City Council
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-98
WHEREAS, on April 11, 2006, by Resolution No. 2006-114, the City Council of the City
of Grand Island approved an agreement with Advantage Engineering of Chesterfield, Missouri, to perform
engineering and other services for transmission lines and substations; and
WHEREAS, the City has identified a need for a 115 kV transmission and substation system
from GIUD Substation F to Nebraska Public Power District’s St. Libory Junction Northwest of the City;
and
WHEREAS, a public hearing was held on April 28, 2009, for the purpose of discussing the
proposed acquisition of easements located in Hall County, Nebraska; and more particularly described on
the attached exhibits; and
WHEREAS, the project is subject to review by one or more regulatory agencies.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the Utilities Department and Advantage
Engineering are authorized to proceed with the engineering and other services for this project according to
the terms of the agreement entered into with Advantage Engineering. The Utilities Department is further
authorized to proceed with all permitting and regulatory actions necessary for the project and to take the
necessary steps to acquire the interests in real estate needed to complete the project.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to
execute all necessary documents to achieve the intent of this Resolution on behalf of the City of Grand
Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item G8
#2009-99 - Approving Agreement with NDOR for Improvements to
the US Highway 281 Viaduct over Burlington Northern Sante Fe
Railroad and Nebraska Highway 2
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Steven P. Riehle, Public Works Director
City of Grand Island City Council
Council Agenda Memo
From: Steven P. Riehle, Public Works Director
Meeting: April 28, 2009
Subject: Approving Agreement with NDOR for Improvements to
the US Highway 281 Viaduct over Burlington Northern
Sante Fe Railroad and Nebraska Highway 2
Item #’s: G-8
Presenter(s): Steven P. Riehle, Public Works Director
Background
All agreements must be approved by the City Council. The Nebraska Department of
Roads (NDOR) is preparing plans improving the US Highway 281 viaduct over the
Burlington Northern Sante Fe Railroad and Nebraska Highway 2.
Discussion
The improvements on the US Highway 281 viaduct over the Burlington Northern Sante
Fe Railroad and Nebraska Highway 2 will consist of the following:
· Reconstructing the end of floor
· Approach slabs
· Paving sections
· Installing grade beams
· Move the expansion to grade beam between the approach slabs and paving section
beginning near the junction of US Highway 281/Nebraska Highway 2 with
Capital Avenue and extending to near the east corporate limits
There will not be any construction costs to the City of Grand Island for this project;
however the City has some obligations that may require staff time.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Council approve a resolution authorizing the
Mayor to sign the agreement.
Sample Motion
Move to approve authorization for the Mayor to sign the agreement.
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-99
WHEREAS, the Nebraska Department of Roads is improving the US Highway 281 viaduct
over the Burlington Northern Sante Fe Railroad and Nebraska Highway 2; and
WHEREAS, such improvements shall consist of reconstructing the end of floor, approach
slabs, paving sections, installing grade beams and to move the expansion to grade beam between the
approach slabs and paving section beginning near the junction of US Highway 281/Nebraska Highway 2
with Capital Avenue and extending to near the east corporate limits; and
WHEREAS, there shall be no cost to the City of Grand Island for such improvements; and
WHEREAS, an agreement with the Nebraska Department of Roads is required to proceed
with the improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the agreement with the Nebraska Department of
Roads for the improvements on the US Highway 281 viaduct over the Burlington Northern Sante Fe
Railroad and Nebraska Highway 2 is hereby approved.
BE IT FURTHE RESOLVED, that the Mayor is hereby authorized and directed to execute
such agreement on behalf of the City of Grand Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item G9
#2009-100 - Approving Amendment Number 2 to Agreement for
Waste Water Comprehensive Plan Update
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Steven P. Riehle, Public Works Director
City of Grand Island City Council
Council Agenda Memo
From: Steven P. Riehle, Public Works Director
Meeting: April 28, 2009
Subject: Approving Amendment Number 2 to Agreement for
Waste Water Comprehensive Plan Update
Item #’s: G-9
Presenter(s): Steven P. Riehle, Public Works Director
Background
The Request for Proposals for Engineering Consulting Services for the Waste Water
Collection and Treatment System Comprehensive Plan Update for the Grand Island
Waste Water Treatment Plant was published on September 27, 2005. After review of
submitted proposals, CH2M Hill, Inc. of Englewood, Co was selected. The contract, for
an amount not to exceed $346,200, was approved by City Council on October 11, 2005
and notice to proceed was given on October 26, 2005.
A comprehensive plan is required by the Nebraska Department of Environmental Quality
(NDEQ) regulations. Title 123 of the NDEQ regulations contains the following: “No
person shall construct to a sanitary sewer system if the receiving WWTF (waste water
treatment facility) is not capable of meeting requirements imposed by a permit issued
under title 119, rules and regulations pertaining to the Issuance of permits Under the
National Pollution Discharge Elimination System. The regulations further state that “A
facility plan or engineering reports shall contain the detailed planning information that is
necessary to evaluate the engineer’s recommendation.”
The Engineering Report or Comprehensive Facility Plan: identifies and evaluates
wastewater related problems; assembles basic information; presents criteria and
assumptions; examines alternate projects, with preliminary layouts and cost estimates;
describes financing methods, sets forth anticipated charges for users; reviews
organizational and staffing requirements; offers a conclusion with a proposed project for
client consideration; and outlines official actions and procedures to implement the
project. The planning document must include sufficient detail to demonstrate that the
proposed project meets applicable criteria.
The Report will include the following:
Engineering Reports
Flow & Organic Loading
Impact on Existing Wastewater Facilities
Engineering Criteria
Site Information
Alternative Selection
Environmental Review
Comprehensive Facility Plans
Problem Evaluation and Existing Facility Review
Planning and Service Area
Hydraulic Capacity
Flow Definitions and Identification
Hydraulic Capacity for Existing Collection Systems
Organic Capacity
Organic Load Identification
Design of Organic Capacity to Serve Existing Collection Systems
Organic Capacity to Serve New Collection Systems
Wastewater Treatment Facility Design Capacity
Unit Sizing
Flow Diagram
Emergency Operation
Sludge
Treatment During Construction
Operation and Maintenance
Cost Estimates
Final Project Selection
The last comprehensive study for the City of Grand Island was completed in 1995.
According to Charles Duerschner (Technical Assistance Unit Supervisor, Nebraska
Department of Environmental Quality) with all the projects that need to be done at our
facility it would cost much less to do a comprehensive study of needs at our facility, than
to do an engineering study for each study as required by regulations.
Discussion
Work on the Comprehensive Plan was halted in the spring of 2008 because the plan
would be significantly impacted by changes being made at the JBS Packing Plant. JBS
was planning to expand its industrial waste water treatment capacity with the construction
of a new 25 million gallon anaerobic pre-treatment lagoon. The new lagoon came on line
in July of 2008. The old 9 million gallon lagoon came back on line after cleaning in
February 2009. We continue to gather performance data from the JBS pre-treatment
system and now analyze that testing data to predict future loadings from JBS and would
recommend proceeding to completion of the wastewater comprehensive plan.
To re-start the Comprehensive Plan, it will be necessary to extend the project schedule,
allow for equity adjustments for staff work on the plan, including ramp up time for staff.
The increased effort to wrap up the Comprehensive Plan has been rolled into Amendment
#2 to the agreement with work to be performed at actual costs with a maximum amount
of $35,038.00. The amendment will make for a new revised agreement total of
$381,238.00.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no actio n on the issue
Recommendation
Public Works Administration recommends that the Council approve the resolution
authorizing the Mayor to execute the Amendment.
Sample Motion
Move to approve Amendment Number 2 with CH2M Hill, Inc. of Englewood, Colorado
under the Standard Agreement for Professional Services dated October 18, 2005.
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-100
WHEREAS, on October 11, 2005, by Resolution No. 2005-293, the City Council of the
City of Grand Island approved an agreement with CH2M Hill, Inc. of Englewood, Colorado, in the amount
of $346,200, to perform engineering services for the Waste Water Collection and Treatment System
Comprehensive Plan Update; and
WHEREAS, on September 11, 2007 City Council approved Amendment No. 1 with
CH2M Hill, Inc. which modified the scope of the original contract without the appropriation of additional
funds; and
WHEREAS, city staff has negotiated Amendment No. 2 with CH2M Hill, Inc. which will
account for schedule modifications and the associated fee adjustments, at an additional cost not to exceed
$35,038.00, for a revised agreement price of $381,238.00.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the 2nd amendment to the agreement with CH2M
Hill, Inc. of Englewood, Colorado is hereby approved.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to
execute the amendment to the agreement for such service son behalf of the City of Grand Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item G10
#2009-101 - Approving Amendment to Emergency
Management/Communications Center Interlocal Cooperation
Agreement with Hall County
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Jon Rosenlund
City of Grand Island City Council
Council Agenda Memo
From: Jon Rosenlund, Emergency Management Director
Meeting: April 28, 2009
Subject: Amendment to Interlocal Agreement for Emergency
Management/Communications
Item #’s: G-10
Presenter(s): Jon Rosenlund, Emergency Management Director
Background
For many years, the City of Grand Island and Hall County have maintained an interlocal
agreement to provide for emergency management and emergency 911 communications to
all agencies, residents, and businesses in Hall County. The revised agreement presented
to you has been modified to show a different number of representatives to the Interlocal
Committee as well as a better definition for the method of receiving payment from the
County for these services. The Interlocal Committee met on April 9, 2009, and voted
unanimously to forward this draft to the City Council and County Board their adoption.
Discussion
The interlocal agreement draft before you is a revision of a previous agreement signed in
2006. These changes were proposed and adopted by members of the Interlocal
Committee. This Committee is currently made up of the Mayor and three (3) Council
members, and the County Board Chair and three (3) Board members. Changes to this
agreement include:
Section 3: The Board proposed a change to the Committee membership to include
the Board Chair and two (2) members in order to maintain less than a majority of
the County Board members on any single committee. In turn, the City will also
reduce its membership by one, with the Mayor and two (2) Council members
represented.
Section 9: Previously, the amount budgeted by the County for this agreement was
divided into twelve (12) equal monthly payments made to the City. At the end of
the year, a “true-up” process would require the City to refund any unused County
funds and ensure that the City had not collected more funds from the County than
was necessary for the agreement.
The proposed change to the agreement will eliminate any chance of over-charge
as the City will now invoice the County on a regular basis for 50% of actual
expenses after revenues for that year. In this manner, all department revenues
(grants, fees, etc.) would be credited against outgoing expenses before invoicing
the County for their 50% portion of the agreement, and ending the necessity for
“true-ups.”
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Council approve the Emergency Management/
Communications Center Interlocal Cooperation Agreement with Hall County.
Sample Motion
Move to approve the Emergency Management/Communications Center Interlocal
Cooperation Agreement with Hall County.
EMERGENCY MANAGEMENT/COMMUNICATIONS CENTER
INTERLOCAL COOPERATION AGREEMENT
WHEREAS, it is in the best interests of the County of Hall to participate in a joint
emergency management/communications center with the City of Grand Island; and,
WHEREAS, it is in the best interests of the City of Grand Island to participate in a joint
emergency management/communications center with the County of Hall; and,
WHEREAS, the County of Hall and the City of Grand Island wish to enter into such an
agreement, pursuant to the terms of the Interlocal Cooperation Act; and,
WHEREAS, the Board of Supervisors of Hall County has reviewed this agreement and
has authorized the chairman of the Board of Supervisors of Hall County to sign this agreement;
and,
WHEREAS, the City Council of the City of Grand Island has reviewed this agreement
and has authorized the Mayor of the City of Grand Island to sign this agreement.
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED BY AND BETWEEN
THE PARTIES HERETO THAT:
1. The term of this agreement shall be perpetual unless terminated as hereinafter
provided.
2. The emergency management/communications center established pursuant to the
terms of this agreement shall function as a department of the City of Grand Island, subject,
however, to the terms of this agreement. The department shall be known as the “Emergency
Management/Communication Center”.
3. The Emergency Management/Communications Center shall be supervised by a
joint committee consisting of the Chairman of the Board of Supervisors of Hall County, the
2
Mayor of the City of Grand Island, two members of the Grand Island City Council and two
members of the Board of Supervisors. The joint committee shall be responsible for:
recommending and providing policy direction and serve as the advisory committee which govern
operations of the Emergency Management/Communications Center, and recommending a budget
to the Board of Supervisors of the County of Hall and the City Council of the City of Grand
Island. In the event the members of the joint committee shall fail to agree as to any matter, such a
matter shall be submitted to the Board of Supervisors and the City Council for determination,
advising the Mayor of opposition or action.
All actions of the joint committee shall be reported in writing wit hin seven days to the
Board of Supervisors and the City Council.
4. The Director of the Emergency Management/Communications Center shall be an
employee of the City of Grand Island and shall be subject to the employee policies, rules and
regulations, including the disciplinary process for city employees. The Director of the
Emergency Management/Communications Center shall also be entitled to the benefits of the city
personnel systems as department head. The duties and responsibilities of the director shall
include: direction and management of the day-to-day operations of the Emergency
Management/Communications Center; attending meetings of the joint committee and giving
them his/her opinion on any matter, either orally or in writing as may be required; accounting for
all funds received and disbursed by the Emergency Management/Communications Center;
preparing an annual budget for submission to the joint committee; and performing such other
duties as may be required.
5. Employees of the Emergency Management/Communications Center below the
level of the director shall be employees of the City of Grand Island and shall be subject to the
3
employee policies, rules and regulations, including the disciplinary process for city employees,
and shall also be entitled to the benefits of the city personnel system.
6. The purpose of the Emergency Management/Communications Center shall
include operation of Emergency Management functions, operation of the 911 Emergency Center,
and such other duties as shall from time to time be established.
7. The Emergency Management/Communications Center shall adopt a fiscal year
commencing October 1st and terminating September 30th.
8. On or before June 15th in each year, the joint committee shall submit a
recommended budget to the Board of Supervisors of Hall County and the City Council of the
City of Grand Island. The Board of Supervisors shall, prior to August 1st, in each year, adopt a
budget for funding of the Emergency Management/Communications Center for the next fiscal
year. The City Council shall, prior to July 1st, formally review a budget for funding the
Emergency Management/Communications Center for the next fiscal year, and shall adopt a
budget for funding the Emergency Management/Communications Center prior to August 1st.
9. The receipts, expenditures, and payroll of the Emergency Management Center
shall be received and disbursed through the City Clerk/Finance Director’s office of the City of
Grand Island. The City of Grand Island shall regularly invoice the County of Hall for 50% of the
balance of actual expenses following a credit of revenues received for that same period.
10. The expenses and receipts of the Emergency Management/Communications
Center shall be shared equally by the County of Hall and the City of Grand Island. These items
shall include salary and fringe benefits costs; capital expenditures; receipts from sale of property;
income from operations; supplies, maintenance; all emergency expenditures; claims, insurance;
and other operating income and expenses. As long as the Emergency
4
Management/Communications Center is located in City Hall, no rent shall be charged for the
space used by the Center. Any inequities resulting from the differing budget systems used to
finance the Communications Center shall be adjusted between the parties in the following budget
year or years.
11. All property transferred to or acquired by the Emergency
Management/Communications Center shall be owned jointly by the County of Hall and the City
of Grand Island. Upon disposal of any property owned by the Communications Center, the
proceeds shall be divided equally between the County of Hall and the City of Grand Island. In
the event that this agreement is terminated and one of the parties continues operation of the same
or similar service provided hereunder, either individually or in cooperation with some other
entity, it is understood and agreed that all property of the Emergency
Management/Communications Center owned jointly by the parties hereto shall be transferred to
such individual party without costs.
12. This agreement shall replace the Interlocal Cooperation Agreement between the
parties dated October 24, 2006, and shall continue the operations hereunder except as
specifically herein provided.
13. Either party may terminate this agreement effective on June 30th in any year,
provided, written notice of such termination is delivered to the other party prior to March 1st of
that year.
Dated this _____ day of __________________, 2009.
CITY OF GRAND ISLAND, NEBRASKA,
ATTEST: A Municipal Corporation,
5
___________________________________ By: ____________________________________
RaNae Edwards, City Clerk Margaret Hornady, Mayor
COUNTY OF HALL, NEBRASKA,
ATTEST:
___________________________________ By: ____________________________________
Marla Conley, County Clerk Pam Lancaster, Chairman
Hall County Board of Supervisors
Approved as to Form ¤ ___________
April 23, 2009 ¤ City Attorney
R E S O L U T I O N 2009-101
WHEREAS, it is in the best interests of the City of Grand Island to participate in a joint emergency
management/communications center with the County of Hall; and,
WHEREAS, the County of Hall and the City of Grand Island wish to enter into such an agreement,
pursuant to the terms of the Interlocal Cooperation Act; and,
WHEREAS, the City Council of the City of Grand Island has reviewed this agreement and has
authorized the Mayor of the City of Grand Island to sign this agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY
OF GRAND ISLAND, NEBRASKA, to enter into an interlocal agreement with the County of Hall
according to the revised terms of the interlocal agreement draft presented to Council, and the Mayor is
hereby authorized and directed to execute such Interlocal on behalf of the City of Grand Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2008.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item I1
#2009-102 - Consideration of Setting Public Hearing Date for
Acquisition of Lease-Purchase and Ground Lease Site and
Building for Recreational Facility for State Fair Activities
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: Jeff Pederson
City of Grand Island City Council
Council Agenda Memo
From: Jeff Pederson, City Administrator
Meeting: April 28, 2009
Subject: Setting Public Hearing Date for Acquisition of Lease-
Purchase and Ground Lease Site and Building for
Recreational Facility for State Fair Activities
Item #’s: I-1
Presenter(s): Jeff Pederson, City Administrator
Background
Public Hearings are required for both the ground lease with Fonner Park and for the Lease-
Purchase Agreement with Wells Fargo, draft copies of which are attached to proposed Ordinance
##9215.
Discussion
The hearing date has been set for May 26, 2009 to receive public input on these two agreements.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand. The
Council may:
1. Move to approve
2. Refer the issue to a Committee
3. Postpone the issue to future date
4. Take no action on the issue
Recommendation
City Administration recommends that the Council approve Resolution #2009-102.
Sample Motion
Move to approve Resolution #2009-102.
Approved as to Form ¤ ___________
April 24, 2009 ¤ City Attorney
R E S O L U T I O N 2009-102
BE IT RESOLVED by the Mayor and Council of the City of Grand Island, Nebraska, that
a public hearing shall be held in accordance with Section 18-1755, R.R.S. Neb. 2007, with respect to the
acquisition by lease-purchase and ground lease of a site and building suitable for use as a recreational facility
and to serve the proposed transfer of the State Fair to Hall County and the City Clerk is hereby directed to
set the time for such hearing and publish notice thereof for a hearing to be held no later than May 26, 2009.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, April 28, 2009.
_______________________________________
Margaret Hornady, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Item J1
Approving Payment of Claims for the Period of April 15, 2009
through April 28, 2009
The Claims for the period of April 15, 2009 through April 28, 2009 for a total amount of
$2,555,511.59. A MOTION is in order.
Tuesday, April 28, 2009
Council Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council