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03-08-2011 City Council Regular Meeting PacketCity of Grand Island Tuesday, March 08, 2011 Council Session Packet City Council:Mayor: Jay Vavricek Interim City Administrator: Mary Lou Brown City Clerk: RaNae Edwards T u 7:00:00 PM Council Chambers - City Hall 100 East First Street Larry Carney Linna Dee Donaldson Scott Dugan Randy Gard John Gericke Peg Gilbert Chuck Haase Mitchell Nickerson Bob Niemann Kirk Ramsey 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 - Pastor Matthew Fowler, Faith United Methodist Church, 724 West 12th Street 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 C1 Proclamation "Week of Kindness and Sole" March 13-19, 2011 Grand Island Senior High, Grand Island Northwest, Grand Island Central Catholic, and Heartland Lutheran High School are joining the Think Kindness organization to help place shoes on the feet of children around the world. The goal is to raise 35,000 pairs of shoes to give to children in need. The Mayor has proclaimed the week of March 13-19, 2011 as "Week of Kindness and Sole". See attached PROCLAMATION. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mayor Vavricek City of Grand Island City Council Item C2 Proclamation "National Athletic Training Month" March, 2011 Certified athletic trainers provide health care for athletes. They provide services such as prevention of injuries, recognition, evaluation and aggressive treatment, rehabilitation, and education. The National Athletic Trainers' Association represents more than 30,000 members of the athletic training profession of professional sports, colleges and universities, high schools, clinics and hospitals, corporate and industrial settings and military branches. The Mayor has proclaimed the month of March, 2011 as "National Athletic Training Month". See attached PROCLAMATION. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mayor Vavricek City of Grand Island City Council Item E1 Public Hearing on Redevelopment Plan for Real Estate Located at 620 West State Street (Five Points located along N Broadwell, N Eddy & W State) Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Chad Nabity City of Grand Island City Council Council Agenda Memo From: Chad Nabity, AICP Meeting: March 8, 2011 Subject: Amendment to Redevelopment Plan for CRA Area #6 Item #’s: E-1 & I-2 Presenter(s): Chad Nabity, AICP CRA Director Background In 2007, the Grand Island City Council declared property referred to as CRA Area #6 as blighted and substandard and approved a generalized redevelopment plan for the property. The generalized redevelopment plan authorized the use of Tax Increment Financing (TIF) for the acquisition of property, redevelopment of property, site preparation including demolition, landscaping and parking. TIF can also be used for improvements to and expansion of existing infrastructure including but not limited to: streets, water, sewer, drainage. Wilmar Realty LLC (the developer) has submitted a proposed amendment to the redevelopment plan that would provide for site acquisition, demolition and construction of an exterior façade and interior remodeling of Skagway supermarket building together with additio nal parking lot expansion at the Five Points Location in Grand Island, Nebraska. The CRA reviewed the proposed development plan and forwarded it to the Hall County Regional Planning Commission for recommendation at their meeting on March 2nd. The CRA also sent notification to the City Clerk of their intent to enter into a redevelopment contract for this project pending Council approval of the plan amendment. The Hall County Regional Planning Commission held a public hearing on the plan ame ndment at a meeting on March 2nd. The Planning Commission approved Resolution 2011-01 in support of the proposed amendment, declaring the proposed amendment to be consistent with the Comprehensive Development Plan for the City of Grand Island. Discussion Tonight, Council will hold a public hearing to take testimony on the proposed plan amendment (including the cost benefit analysis that was performed regarding this proposed project) and to enter into the record a copy of the plan amendment, the draft TIF contract under consideration by the CRA. Council is being asked to approve a resolution approving the cost benefit analysis as presented in the redevelopment plan along with the amended redevelopment plan for CRA Area #6 and authorizes the CRA to execute a contract for TIF based on the plan amendment. The redevelopment plan for amendment permits site acquisition, demolition and construction of an exterior façade and interior remodeling of Skagway supermarket building together with additional parking lot expansion at the Five Points Location. The cost benefit analysis included in the plan finds that this project meets the statutory requirements for as eligible TIF project and that it will not negatively impact existing services within the community or shift additional costs onto the current residents of Grand Island and the impacted school districts. The total tax increment financing allowed for this project may not exceed $798,654 during this 15 year period. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve the resolution 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation The CRA and Hall County Regional Planning Commission recommend that the Council approve the Resolution necessary for the adoption and implementation of this plan. Sample Motion Move to approve the resolution as submitted. Redevelopment Plan Amendment Grand Island CRA Area #6 January 2011 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area #6 with in the city, pursuant to the Nebraska Community Development Law (the “Act”) and provide for the financing of a specific infrastructure related project in Area #6. Executive Summary: Project Description THE ACQUISITION OF PROPERTY FIVE POINTS EAST OF BROADWELL AVENUE AND NORTH OF STATE STREET BY THE DEVELOPER AND SUBSEQUENT UTILITY IMPROVEMENTS, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR REMODELING AND RECONTRUCTING THE EXISTING SKAGWAY STORE AT THIS LOCATION. The use of Tax Increment Financing to aid in the acquisition of property and demolition of existing structures along with costs associated with redevelopment and remodeling the existing Skagway store. The use of Tax Increment Finance makes it feasible to complete all of the phases of the proposed project within the timeline presented. This project could be completed without the use of TIF however the timeline for completion would be stretched out over several years. The acquisition, site work and remodeling will be paid for by the developer. The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with the acquisition, site work and remodeling. The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over the 15 year period beginning January 1, 2012 towards the allowable costs and associated financing for the acquisition and site work. TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE PROPERTY AND RELATED SITE WORK WILL COME FROM THE FOLLOWING REAL PROPERTY: Property Description (the “Redevelopment Project Area”) This property is located at the northeast corner of Broadwell Avenue and State Street in northeast Grand Island including the attached map identifies the subject property and the surrounding land uses: · Legal Descriptions Lots 1, 2 and 3 of Skag-Way Subdivision. The tax increment will be captured for the tax years the payments for which become delinquent in years 2013 through 2027, inclusive. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from renovation of the existing retail space at the Skagway store. Statutory Pledge of Taxes. Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in the Redevelopment Project Area shall be divided, for the period not to exceed 15 years after the effective date of the provision, which effective date shall be January 1, 2012. a. That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the redevelopment project valuation shall be paid into the funds, of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That portion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of; the interest on, and any premiums due in connection with the bonds, loans, notes, or advances on money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, a redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such redevelopment project shall be paid into the funds of the respective public bodies. Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged to the repayment of loans or advances of money, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: The Community Development Law requires that a Redevelopment Plan and Project consider and comply with a number of requirements. This Plan Amendment meets the statutory qualifications as set forth below. 1. The Redevelopment Project Area has be en declared blighted and substandard by action of the Grand Island City Council on October 9, 2007.[§18-2109] Such declaration was made after a public hearing with full compliance with the public notice requirements of §18-2115 of the Act. 2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13) (a) and §18-2110] Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan amendment and project are consistent with the Comprehensive Plan, in that no changes in the Comprehensive Plan elements are intended. This plan merely provides funding for the developer to acquire the necessary property and provide the necessary site work for the construction of a permitted use on this property. 3. The Redevelopment Plan must be sufficiently complete to address the following items: [§18-2103(13) (b)] a. Land Acquisition: The Redevelopment Plan for Area #6 provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority. b. Demolition and Removal of Structures: The project to be implemented with this plan does intend several structures along Broadwell Avenue be removed or demolished. The structures to be demolished are all non-residential in nature and use. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. The site is planned for commercial development. [§18-2103(b) and §18-2111] The attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)] City of Grand Island Future Land Use Map d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned B2- General Business zone. No zoning changes are anticipated with this project. No changes are anticipated in street layouts or grades. No changes are anticipated in building codes or ordinances. Nor are any other planning changes contemplated. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing remove several structures adjacent to Broadwell Avenue. The existing Skagway store will be renovated with a single main entrance on the west side of the building. Primary parking will be on the west side of the building. Tennant spaces will be made available along the west side of the building. A drive through will be added for the pharmacy. The main building will be remodeled to incorporate a banquet center with a primary entrance from the east side of the building. The property is zoned B2 and could accommodate a building of up to 100% of the property [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Sewer and water are available to support this development. New water and sewer services may be required for this building. No other utilities would be impacted by the development. The developer will be responsible for replacing any sidewalks damaged during construction of the project. No other utilities would be impacted by the development. [§18-2103(b) and §18-2111] 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. This amendment does not provide for acquisition of any residences and therefore, no relocation is contemplated. [§18-2103.02] 5. No member of the Authority, nor any employee thereof holds any interest in any property in this Redevelopment Project Area. [§18-2106] Barry Sandstrom, Chairman of the Grand Island Community Redevelopment Authority, is President of Home Federal Bank in Grand Island and Home Federal is contemplating a branch office in the redeveloped property. Mr. Sandstrom will recuse himself from action on this application. 6. Section 18-2114 of the Act requires that the Authority consider: a. Method and cost of acquisition and preparation for redevelopment and estimated proceeds from disposal to redevelopers. The developer has purchased the property for this redevelopment for $733,224 since January 1 of 2008. Other properties included in the redevelopment have been owned by the developer for more than 40 years. The cost of property acquisition is being included as a TIF eligible expense. Costs for demolition, site preparation and parking improvements for development are estimated at $1,503,500 portions of this as related to the demolition and site preparation are included as a TIF eligible expense. Renovation costs for the existing building are estimated at $1,175,000 and are being included as a TIF eligible expense. Engineering and design fees are estimated at $140,000 and are included as a TIF eligible expense. No property will be transferred to redevelopers by the Authority. The developer will provide and secure all necessary financing. b. Statement of proposed method of financing the redevelopment project. The developer will provide all necessary financing for the project. The Authority will assist the project by granting the sum of $798,654 from the proceeds of the TIF Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax Increment Revenues generated from the project. TIF revenues shall be made available to repay the original debt and associated interest after January 1, 2012 through December 2027. The Authority may also at its discretion and under the terms of the generalized redevelopment plan for CRA area #6 offer façade improvement assistance to the developer of up to $300,000. c. Statement of feasible method of relocating displaced families. No families will be displaced as a result of this plan. 7. Section 18-2113 of the Act requires: Prior to recommending a redevelopment plan to the governing body for approval, an authority shall consider whether the proposed land uses and building requirements in the redevelopment project area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations or conditions of blight. The Authority has considered these elements in proposing this Plan Amendment. This amendment, in and of itself will promote consistency with the Comprehensive Plan, in that it will allow for the utilization of and redevelopment of commercial lots. This will not significantly impact traffic on at the Five Points intersection. Renovated commercial development will raise property values and provide a stimulus to keep surrounding properties properly maintained. This will have the intended result of preventing recurring elements of unsafe buildings and blighting conditions. 8. Time Frame for Development Development of this project (including demolition, parking lot improvements and building renovation) is anticipated to be completed between April and September of 2011. Excess valuation should be available for this project for 15 years beginning with the 2012 tax year. 9. Justification of Project Skagway has been a commercial anchor for the Five Points neighborhood since the 1950’s. This redevelopment and reinvestment by Wilmar Realty, LLC in this Skagway location represents a great opportunity to strengthen and sustain this neighborhood commercial development. This is infill development in an area with all city services available. This project does not propose to tear down any buildings with historic value. 10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority conduct a cost benefit analysis of the plan amendment in the event that Tax Increment Financing will be used. This analysis must address specific statutory issues. (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $2,390,110. The proposed demolition, new parking lot and renovations at this location will result in an additional $2,507,556 of taxable valuation based on an analysis by the Hall County Assessor’s office. No tax shifts are anticipated from the project. The project creates additional valuation that will support taxing entities long after the project is paid off. (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact schools. Fire and police protection are available and should not be impacted by this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; The proposed facility will continue to provide jobs for persons employed at Skagway and for employees of the people who rent the proposed tenant spaces that are part of this redevelopment. (d) Impacts on other employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and This facility could draw employees from other similar facilities within the City. If the project is not completed it is possible that Skagway would shut down resulting in a net loss of employment and sale tax dollars. (e) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This will provide appropriate development at a key entrance into the City of Grand Island. Five Points is an iconic location in Grand Island. This redevelopment plan will result in better visibility for all business located near Five Points. Skagway has been a key business at the Five Points location for more than 60 years. This reinvestment on the part of Wilmar LLC and the City of Grand Island will encourage them to remain a key business for the next 60 years. Time Frame for Development Development of this project is anticipated to be completed during between April 1 and September 1 of 2011. The base tax year should be calculated on the value of the property as of January 1, 2011. Excess valuation should be available for this project for 15 years beginning in 2012. Excess valuation will be used to pay the TIF Indebtedness issued by the CRA per the contract between the CRA and the developer for a period not to exceed 15 years or an amount not to exceed $798,654, the projected amount of increment based upon the anticipated value of the project and current tax rate. Based on the purchase price of the property and estimates of the expenses of renovation activities and associated engineering fees, but excluding the cost of demolition, site preparation and rebuilding the parking lot, the developer will spend more than $1,748,0001 on TIF eligible activities. See Attached Site Plan and Interior Renovation Plan 1 This is the total less $300,000 of façade improvement funding provided by the CRA. BACKGROUND INFORMATION RELATIVE TO TAX INCREMENT FINANCING REQUEST Project Redeveloper Information Business Name: Wilmar Realty, LLC ________________________________ Address: P.O. Box 1647; Grand Island, NE 68802 _________________________ Telephone No.: 308-384-8222__________ Fax No.:308-384-4308 ____________________________________ Contact: Bill Martin or Tim Bolton __________________________________________________________________ __________ Brief Description of Applicant’s Business: Manages Real Estate Property at the 5-Points location, in Grand Island, Nebraska_____________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ ______________________________________ Present Ownership Proposed Project Site: Wilmar Realty, LLC ; P.O. Box 1647; Grand Island , NE 68802_________________________________________ Proposed Project: Building square footage, size of property, description of buildings – materials, etc. Please attach site plan, if available. 1.) Demolition and site preparation for new parking lot on west side of Skagway. 2.) New façade on west side of Skagway Building 3.) Remodel inside of Skagway Store __________________________________________________________________ ______ If Property is to be Subdivided, Show Division Planned: VI. Estimated Project Costs: Acquisition Costs: A. Land $ 199,086 B. Building $ 534,138 Construction Costs: A. Renovation or Building Costs: $ 1,175,000 * New façade and remodel of inside of Skagway * based on engineer estimates B. On-Site Improvements: $ 1,503,500 Parking Lot Soft Costs: A. Architectural & Engineering Fees: $ ______________ B. Financing Fees: $ ______________ C. Legal/Developer/Audit Fees: $ ______________ D. Contingency Reserves: $ ______________ E. Other (Please Specify) $ ______________ TOTAL $ 3,411,723 ______________ Total Estimated Market Value at Completion: $ 4,576,840 Assuming a valuation increase of $2,000,000 Source of Financing: A. Developer Equity: $ 733,224 ______________ B. Commercial Bank Loan: $ 2,400,000 ______________ Tax Credits: 1. N.I.F.A. $ ______________ 2. Historic Tax Credits $ ______________ D. Industrial Revenue Bonds: $ E. Tax Increment Assistance: $ 615,000 F. Other - Façade Improvement Program Grant $ 300,000 Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor: 1.) Rockwell & Associates 2.) Miller & Associates 2510 N. Webb Rd 1111 Central Ave. Grand Island, NE 68803 Kearney, NE 68847 (308) 382-1472 (308) 234-6456 __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ ____________________________________ Estimated Real Estate Taxes on Project Site Upon Completion of Project: (Please Show Calculations) Current Real Estate Taxes on just Skagway site without acquistions $ 34,135 Assuming $ 2,000,000 valuation increase taxes would be $ 41,000 Total Real Estate Taxes on renovated site $ 75,135 Project Construction Schedule: Construction Start Date: 02/01/2011_________________________________________________ Construction Completion Date: 07/01/2011___________________________________________ If Phased Project: _______________________ Year _______________________ % Complete _______________________ Year _______________________ % Complete XII. Please Attach Construction Pro Forma XIII. Please Attach Annual Income & Expense Pro Forma (With Appropriate Schedules) TAX INCREMENT FINANCING REQUEST INFORMATION Describe Amount and Purpose for Which Tax Increment Financing is Requested: Assuming a $ 2,000,000 increase in valuation, we are requesting $ 615,000 to cover a portion of the acquistion, demolition and renovation. ($2,000,000*.0205*15 years) _________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _____________________________________________ Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed Project: The affordability of the project is dependent on keeping things at the re current cost level without the valuation increase which leads to an increase in taxes. Things are very competive in the retail business and we must do what others have done in the same line of business in regards to tax increment financing. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Municipal and Corporate References (if applicable). Please identify all other Municipalities, and other Corporations the Applicant has been involved with, or has completed developments in, within the last five (5) years, providing contact person, telephone and fax numbers for each: None_____________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _____________________________ IV. Please Attach Applicant’s Corporate/Business Annual Financial Statements for the Last Three Years. Willmar Realty, LLC started in January 1, 2008 and will provide the third year of financials when completed in early February of 2011. Post Office Box 1968 Grand Island, Nebraska 68802-1968 Phone: 308 385-5240 Fax: 308 385-5423 Email: cnabity@grand-island.com REDEVELOPMENT CONTRACT This Redevelopment Contract is made and entered into as of the _____th day of ___________, 2011, by and between the City of Grand Island, Nebraska, acting as the Community Redevelopment Authority of the City of Grand Island, Nebraska (“City”), and Wilmar Realty, LLC, a Nebraska limited liability company (“Redeveloper”). WITNESSETH: WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska Constitution and Sections l8-2101 to 18-2154, Reissue Revised Statutes of Nebraska, 2007, as amended (collectively the “Act”), has designated an area in the City as blighted and substandard; and WHEREAS, City and Redeveloper desire to enter into this Redevelopment Contract for acquisition and redevelopment of a parcel in the blighted and substandard area; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS AND INTERPRETATION Section 1.01 Terms Defined in this Redevelopment Contract. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Redevelopment Contract, such definitions to be equally applicable to both the singular and plural forms and masculine, feminine and neuter gender of any of the terms defined: “Act” means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska, 2007, as amended, and acts amendatory thereof and supplemental thereto “Authority” means the Community Redevelopment Authority of the City of Grand Island, Nebraska. “City” means the City of Grand Island, Nebraska. “Governing Body ” means the Mayor and City Council of the City. “Holder” means the holders of TIF indebtedness issued by the Authority from time to time outstanding. “Liquidated Damages Amount ” means the amounts to be repaid to Authority by Redeveloper pursuant to Section 6.02 of this Redevelopment Contract. “Project” means the improvements to the Redevelopment Area, as further described in Exhibit B attached hereto and incorporated herein by reference and, as used herein, shall include the Redevelopment Area real estate. “Project Cost Certification” means a statement prepared and signed by the Redeveloper verifying the Redeveloper has been legally obligated for the payment of Project Costs identified on Exhibit D “Project Costs” means only costs or expenses incurred by Redeveloper for the purposes set forth in §18-2103 (a) through (f), inclusive, of the Act as identified on Exhibit D. “Redeveloper” means Wilmar Realty, LLC, a Nebraska limited liability company. “Redevelopment Area” means that certain real property situated in the City of Grand Island, Hall County, Nebraska, which has been declared blighted and substandard by the City pursuant to the Act, and which is more particularly described on Exhibit A attached hereto and incorporated herein by this reference. “Redevelopment Contract” means this redevelopment contract between the Authority and Redeveloper with respect to the Project. “Redevelopment Plan” means the Amended Redevelopment Plan for the Redevelopment Area related to the Project, prepared by the Authority and approved by the City pursuant to the Act. “Resolution” means the Resolution of the Authority, as supplemented from time to time, approving this Redevelopment Contract and the issuance of the TIF Indebtedness. “TIF Indebtedness” means any bonds, notes, loans, and advances of money or other indebtedness, including interest and premiums, if any, thereon, incurred by the Authority pursuant to Article III hereof and secured in whole or in part by TIF Revenues. “TIF Revenues” means incremental ad valorem taxes generated by the Project which are allocated to and paid to the Authority pursuant to the Act. Section 1.02 Construction and Interpretation. The provisions of this Redevelopment Contract shall be construed and interpreted in accordance with the following provisions: (a) Wherever in this Redevelopment Contract it is provided that any person may do or perform any act or thing the word “may” shall he deemed permissive and not mandatory and it shall be construed that such person shall have the right, but shall not be obligated, to do and perform any such act or thing. (b) The phrase “at any time” shall be construed as meaning “at any time or from time to time.” (c) The word ‘including” shall be construed as meaning ‘‘including, but not limited to.” (d) The words ‘will” and “shall” shall each be construed as mandatory. (e) The words “herein,” “hereof,” “hereunder,”” hereinafter” and words of similar import shall refer to the Redevelopment Contract as a whole rather than to any particular paragraph, section or subsection, unless the context specifically refers thereto. (f) Forms of words in the singular, plural, masculine, feminine or neuter shall be construed to include the other forms as the context ma y require. (g) The captions to the sections of this Redevelopment Contract are for convenience only and shall not be deemed part of the text of the respective sections and shall not vary by implication or otherwise any of the provisions hereof. ARTICLE II REPRESENTATIONS Section 2.01 Representations by Authority. The Authority makes the following representations and findings: (a) the Authority is a duly organized and validly existing Community Redevelopment Authority under the Act. (b) The Redevelopment Plan has been duly approved and adopted by the City pur suant to Section 18-2109 through 18-2117 of the Act. (c) The Authority deems it to be in the public interest and in furtherance of the purposes of the Act to accept the proposal submitted by Redeveloper as specified herein. (d) The Redevelopment Project will achieve the public purposes of the Act by, among other things, increasing employment, improving public infrastructure, increasing the tax base, and lessening conditions of blight and substandard in the Redevelopment Area. (e) (1) The Redevelopment Plan is feasible and in conformity with the general plan for the development of the City as a whole and the plan is in conformity with the legislative declarations and determinations set forth in the Act, and (2) Based on Representations made by the Redeveloper: (i) the Project would not be economically feasible without the use of tax-increment financing, (ii) the Project would not occur in the Redevelopment Area without the use of tax-increment financing, and (iii) the costs and benefits of the Project, including costs and benefits to other affected political subdivisions, the economy of the community, and the demand for public and private services have been analyzed by the Authority and have been found to be in the long-term best interest of the community impacted by the Project. (f) The Authority has determined that the proposed land uses and building requirements in the Redevelopment Area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the City and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development: including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of’ the recurrence of insanitary or unsafe dwelling accommodations, or conditions of blight. Section 2.02 Representations of Redeveloper. The Redeveloper makes the following representations: (a) The Redeveloper is a Nebraska limited liability company, having the power to enter into this Redevelopment Contract and perform all obligations contained herein and by proper action has been duly authorized to execute and deliver this Redevelopment Contract. (b) The execution and delivery of the Redevelopment Contract and the consummation of the transactions therein contemplated will not conflict with or constitute a breach of or default under any bond, debenture, note or other evidence of indebtedness or any contract, loan agreement or lease to which Redeveloper is a party or by which it is bound, or result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of the Redeveloper contrary to the terms of any instrument or agreement. (c) There is no litigation pending or to the best of its knowledge threatened against Redeveloper affecting its ability to carry out the acquisition, construction, equipping and furnishing of the Project or the carrying into effect of this Redevelopment Contract or, except as disclosed in writing to the Authority, as in any other matter materially affecting the ability of Redeveloper to perform its obligations hereunder. (d) Any financial statements of the Redeveloper or its Members delivered to the Authority prior to the date hereof are true and correct in all respects and fairly present the financial condition of the Redeveloper and the Project as of the dates thereof; no materially adverse change has occurred in the financial condition reflected therein since the respective dates thereof; and no additional borrowings have been made by the Redeveloper since the date thereof except in the ordinary course of business, other than the borrowing contemplated hereby or borrowings disclosed to or approved by the Authority. (e) The Project would not be economically feasible without the use of tax increment financing. (f) The Project would not occur in the Redevelopment Area without the use of tax-increment financing. (g) The Redeveloper is an accredited investor as that term is defined for purposes Regulation D, issued pursuant to the Securities Act of 1933, as amended. ARTICLE III OBLIGATIONS OF THE AUTHORITY Section 3.01 Division of Taxes. In accordance with Section 18-2147 of the Act, the Authority hereby provides that any ad valorem tax on the following real property in the Project: to wit: the property shown on attached Exhibit A, for the benefit of any public body be divided for a period of fifteen years after the effective date of this provision as set forth in this section. The effective date of this provision shall be January 1, 2012. (a) That proportion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the Redevelopment Project Valuation (as defined in the Act) shall be paid into the funds of each such public body in the same proportion as all other taxes collected by or for the bodies; and (b) That proportion of the ad valorem tax on real property in the Redevelopment Area in excess of such amount (the “Incremental Ad Valorem Tax”), if any, shall be allocated to, is pledged to, and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, such Project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such Project shall be paid into the funds of the respective public bodies. Section 3.02 Issuance of TIF Indebtedness Authority shall incur TIF Indebtedness in the form and principal amount and bearing interest and being subject to such terms and conditions as are specified on the attached exhibit C. No TIF Indebtedness will be issued until Redeveloper has (a) acquired fee title to the Redevelopment Area; (b) obtained financing commitments as described in Section 5.01; and (c) entered into a contract for construction of the Project. The Authority shall have no obligation to find a lender or investor to acquire the TIF Indebtedness, but rather shall issue the TIF Indebtedness to the Redeveloper upon payment of the principal amount thereof. The purchase price of the TIF Indebtedness may be offset against the Grant described in Section 3.04 hereof, in the sole discretion of the Authority. The TIF Indebtedness issued pursuant to the provisions of this contract constitutes a limited obligation of the Authority payable exclusively from that portion of the ad valorem real estate taxes mentioned in subdivision (1)(b) of Section 18-2147, R.R.S. Neb. 2007, as levied, collected and apportioned from year to year with respect to certain real estate located within the "Redevelopment Area" The TIF Indebtedness shall not constitute a general obligation of the Authority and the Authority shall be liable for the payment thereof only out of said portion of taxes as described in this paragraph. The TIF Indebtedness shall not constitute an obligation of the State of Nebraska or of the City or the Authority (except for such receipts as have been pledged pursuant to Section 3.03) and neither the State or Nebraska, the Authority nor the City shall be liable for the payment thereof from any fund or source including but not limited to tax monies belonging to either thereof (except for such receipts as have been pledged pursuant to Section 3.03). Neither the members of the Authority's governing body nor any person executing the TIF Indebtedness shall be liable personally on the TIF Indebtedness by reason of the issuance thereof. The Authority’s obligation to the holder of the TIF Indebtedness shall terminate, in all events no later than 15 years from the effective date set forth in Section 3.01 hereof. Section 3.03 Pledge of TIF Revenues. The Authority hereby pledges 100% of the annual TIF Revenues as security for the TIF Indebtedness. Section 3.04 Grant of Proceeds of’ TIF Indebtedness. From the proceeds of the TIF indebtedness incurred as described on Exhibit C, the Authority shall grant the following sums to the following entities, to wit: 100% to the Redeveloper for Project Costs. Notwithstanding the foregoing, the amount of the grant shall not exceed the amount of Project Costs certified pursuant to Section 4.02. The grants shall be paid to the Redeveloper upon certification that the Redeveloper has incurred or is obligated to incur such Project Costs which include supporting documentation requested by Authority and shall, if requested by Redeveloper, be made in one or more advances. Section 3.05 Creation of Fund. The Authority will create a special fund to collect and hold the TIF Revenues. Such special fund shall be used for no purpose other than to pay TIF Indebtedness issued pursuant to Sections 3.02 above. ARTICLE IV OBLIGATIONS OF REDEVELOPER Section 4.01 Construction of Project; Insurance. (a) Redeveloper will complete the Project and install all infrastructure, improvements, buildings, fixtures, equipment and furnishings necessary to operate the Project. Redeveloper shall be solely responsible for obtaining all permits and approvals necessary to acquire, construct and equip the Project. Until construction of the Project has been completed, Redeveloper shall make reports in such detail and at such times as may be reasonably requested by the Authority as to the actual progress of Redeveloper with respect to construction of the Project. Promptly after completion by the Redeveloper of the Project, the Redeveloper shall furnish to the Authority a Certificate of Completion. The certification by the Redeveloper shall be a conclusive determination of satisfaction of the agreements and covenants in this Redevelopment Contract with respect to the obligations of Redeveloper and its successors and assigns to construct the Project. As used herein, the term “completion” shall meant substantial completion of the Project. (b) Any general contractor chosen by the Redeveloper or the Redeveloper itself shall be required to obtain and keep in force at all times until completion of construction, policies of insurance including coverage for contractors’ general liability and completed operations and a penal bond as required by the Act. The City, the Authority and the Redeveloper shall be named as additional insured. Any contractor chosen by the Redeveloper or the Redeveloper itself, as an owner, shall be required to purchase and maintain property insurance upon the Project to the full insurable value thereof. This insurance shall insure against the perils of fire and extended coverage and shall include “All Risk” insurance for physical loss or damage. The contractor or the Redeveloper, as the case may be, shall furnish the Authority with a Certificate of Insurance evidencing policies as required above. Such certificates shall state that the insurance companies shall give the Authority prior written notice in the event of cancellation of or material change in any of any of the policies. (c) Redeveloper shall replat the Redevelopment Project Area. (d) Redeveloper shall pay, on execution hereof the sum of $1,000.00 to the City of Grand Island for administrative expenses related to payment of the tax increment revenue. Section 4.02 Cost Certification. Redeveloper shall submit to Authority a certification of Project Costs, on or before the issuance of the TIF Indebtedness which shall contain detail and documentation showing the payment or obligation for payment of Project Costs specified on the attached Exhibit D in an amount at least equal to the grant to Redeveloper pursuant to Section 3.05. Section 4.03 Legal Costs. Redeveloper shall pay the Authority the sum of $5,000 for the costs incurred by the Authority associated with the issuance of the TIF Indebtedness. Redeveloper understands that the law firm assisting with the issuance of the TIF Indebtedness represents the Authority and not the Redeveloper. Section 4.04 No Discrimination. Redeveloper agrees and covenants for itself, its successors and assigns that as long as any TIF Indebtedness is outstanding, it will not discriminate against any person or group of persons on account of race, sex, color, religion, national origin, ancestry, disability, marital status or receipt of public assistance in connection with the Project. Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Project, Redeveloper will not discriminate against any employee or applicant for employment because of race, religion, sex, color, national origin, ancestry, disability, marital status or receipt of public assistance. Redeveloper will comply with all applicable federal, state and local laws related to the Project. Section 4.05 Pay Real Estate Taxes. Redeveloper intends to create a taxable real property valuation [over and above the valuation thereof as the same existed on January 1, 2011] of the Redevelopment Project Area of Two Million Five Hundred Thousand Dollars ($2,500,000) no later than no later than January 1, 2012. During the period that any TIF Indebtedness is outstanding, neither the Redeveloper, nor its assigns, will (1) file a protest seeking to obtain a real estate property valuation on the Redevelopment Area of less than the sum of: (a) Two Million Five Hundred Thousand Dollars ($2,500,000) and (b) the valuation of the Redevelopment Project Area as the same existed on January 1, 2011; (2) convey the Redevelopment Area or structures thereon to any entity which would be exempt from the payment of real estate taxes or cause the nonpayment of such real estate taxes; nor (3) allow real estate taxes and assessments levied on the Redevelopment Area and Project to become delinquent during the term that any TIF Indebtedness is outstanding. Section 4.07 Assignment or Conveyance. Any assignment or conveyance of the any portion of the Redevelopment, the Project or any interest therein prior to the termination of the 15 year period commencing on the effective date specified in Section 3.01 hereof Area by the Redeveloper shall be subject to the terms and conditions of this Redevelopment Contract. Section 4.08 Purchase of TIF Indebtedness. The Redeveloper shall purchase the TIF Indebtedness at 100% of the principal amount thereof upon issuance of such debt. The Authority may provide that such purchase be offset against the grant provided in Section 3.04 hereof. Section 4.09 Penal Bond. The Developer shall execute a penal bond for the Project with good and sufficient surety to be approved by the Authority meeting the requirements of Section 18-2151, Reissue Revised Statutes of Nebraska, as amended, on or prior to its execution of this Contract. ARTICLE V FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES Section 5.01 Financing. Redeveloper shall pay all Project Costs and any and all other costs related to the Redevelopment Area and the Project which are in excess of the amounts paid from the proceeds of the TIF Indebtedness granted to Redeveloper. Prior to issuance of the TIF Indebtedness, Redeveloper shall provide Authority with evidence satisfactory to the Authority that private funds have been committed to the Redevelopment Project in amounts sufficient to complete the Redevelopment Project. Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts associated with the Project which sha ll include such other fees and expenses imposed by the Authority. ARTICLE VI DEFAULT, REMEDIES; INDEMNIFICATION Section 6.01 General Remedies of Authority and Redeveloper. Subject to the further provisions of this Article VI, in the event of any failure to perform or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto or any successor to such party, such party, or successor, shall, upon written notice from the other, proceed immediately to commence such actions as may be reasonably designed to cure or remedy such failure to perform or breach which cure or remedy shall be accomplished within a reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or diligently pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may institute such proceedings as may be necessary or desirable to enforce its rights under this Redevelopment Contract, including, but not limited to, proceedings to compel specific performance by the party failing to perform on in breach of its obligations. Section 6.02 Additional Remedies of Authority In the event that: (a) the Redeveloper, on successor in interest, shall fail to complete the construction of the Project on or before January 1, 2012, or shall abandon construction work for any period of 90 days, (b) the Redeveloper, on successor in interest, shall fail to pay real estate taxes or assessments on the Redevelopment Area on any part thereof or payments in lieu of taxes pursuant to Section 4.07 when due; or (c) There is, in violation of Section 4.08 of this Redevelopment Contract, and such failure or action by the Redeveloper has not been cured within 30 days following written notice from Authority, then the Redeveloper shall be in default of this Redevelopment Contract. In the event of such failure to perform, breach or default occurs and is not cured in the period herein provided, the parties agree that the damages caused to the Authority would be difficult to determine with certainty and that a reasonable estimation of the amount of damages that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness, plus interest on such amounts as provided herein (the “Liquidated Damages Amount”). The Liquidated Damages Amount shall be paid by Redeveloper to Authority within 30 days of demand from Authority. Interest shall accrue on the Liquidated Damages Amount at the rate of one percent (1%) over the prime rate as published and modified in the Wall Street Journal from time to time and interest shall commence from the date that the Authority gives notice to the Redeveloper demanding payment. Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its obligation to pay real estate taxes or assessments with respect to the Project. Section 6.03 Remedies in the Event of Other Redeveloper Defaults. In the event the Redeveloper fails to perform any other provisions of this Redevelopment Contract (other than those specific provisions contained in Section 6.02), the Redeveloper shall be in default. In such an instance, the Authority may seek to enforce the terms of this Redevelopment Contract or exercise any other remedies that may be provided in this Redevelopment Contract or by applicable law; provided, however, that the default covered by this Section shall not give rise to a right or rescission on termination of this Redevelopment Contract, and shall not be covered by the Liquidated Damages Amount. Section 6.04 Forced Delay Beyond Party’s Control. For the purposes of any of the provisions of this Redevelopment Contract, neither the Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be considered in breach of or default in its obligations with respect to the conveyance or preparation of the Redevelopment Area for redevelopment, or the beginning and completion of construction of the Project, or progress in respect thereto, in the event of forced delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not restricted to, acts of God, or of the public enemy, acts of the Government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather or delays in subcontractors due to such causes; it being the purpose and intent of this provision that in the event of the occurrence of any such forced delay, the time or times for performance of the obligations of the Authority or of the Redeveloper with respect to construc tion of the Project, as the case may be, shall be extended for the period of the forced delay: Provided, that the party seeking the benefit of the provisions of this section shall, within thirty (30) days after the beginning of any such forced delay, have first notified the other party thereto in writing, and of the cause or causes thereof and requested an extension for the period of the forced delay. Section 6.05 Limitations of Liability; Indemnification. Notwithstanding anything in this Article VI or this Redevelopment Contract to the contrary, neither the City, the Authority, nor their officers, directors, employees, agents or their governing bodies shall have any pecuniary obligation or monetary liability under this Redevelopment Contract. The sole obligation of the Authority under this Redevelopment Contract shall be the issuance of the TIF Indebtedness and granting of a portion of the proceeds thereof to Redeveloper, as specifically set forth in Sections 3.02 and 3.04. The obligation of the City and Authority on any TIF Indebtedness shall be limited solely to the payment of the TIF Revenues on the TIF Indebtedness. Specifically, but without limitation, neither the City or Authority shall be liable for any costs, liabilities, actions, demands, or damages for failure of any representations, warranties or obligations hereunder. The Redeveloper releases the City and Authority from, agrees that neither the City or Authority shall be liable for, and agrees to indemnify and hold the City and Authority harmless from any liability for any loss or damage to property or any injur y to or death of any person that may be occasioned by any cause whatsoever pertaining to the Project. The Redeveloper will indemnify and hold each of the City and Authority and their directors, officers, agents, employees and member of their governing bodies free and harmless from any loss, claim, damage, demand, tax, penalty, liability, disbursement, expense, including litigation expenses, attorneys’ fees and expenses, or court costs arising out of any damage or injury, actual or claimed, of whatsoever kind or character, to property (including loss of use thereof) or persons, occurring or allegedly occurring in, on or about the Project during the term of this Redevelopment Contract or arising out of any action or inaction of Redeveloper, whether on not related to the Project, or resulting from or in any way connected with specified events, including the management of’ the Project, or in any way related to the enforcement of this Redevelopment Contract or army other cause pertaining to the Project. ARTICLE VII MISCELLANEOUS Section 7.01 Notice Recording. This Redevelopment Contract or a notice me morandum of this Redevelopment Contract shall be recorded with the County Register of Deeds in which the Redevelopment Area is located. Section 7.02 Governing Law. This Redevelopment Contract shall be governed by the laws of the State of’ Nebraska, including but not limited to the Act. Section 7.03 Binding Effect; Amendment. This Redevelopment Contract shall be binding on the parties hereto and their respective successors and assigns. This Redevelopment Contract shall run with the Redevelopment Area. The Redevelopment Contract shall not be amended except by a writing signed by the party to be bound. Section 7.04 Third Party Enforcement, The provisions of this Redevelopment Contract which obligate the Redeveloper shall inure to the benefit of the holder of the TIF Indebtedness, the Hall County Assessor, the City and the Authority, any of whom may, but are not obligated to enforce the terms of this Redevelopment Contract in a court of law. IN WITNESS WHEREOF, City and Redeveloper have signed this Redevelopment Contract as of the date and year first above written. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF ATTEST: GRAND ISLAND, NEBRASKA _________________________________ By:___________________________________ Secretary Chairman Wilmar Realty, LLC By:_____________________________ Manager STATE OF NEBRASKA ) ) ss. COUNTY OF HALL) The foregoing instrument was acknowledged before me this ______ day of ______, _____, by _______________ and ________________, Chair and Secretary, respectively, of the Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the Authority. __________________________________ Notary Public STATE OF NEBRASKA ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of ______, _____, by ___________________, Manager of Wilmar Realty, LLC, on behalf of the limited liability company. __________________________________ Notary Public EXHIBIT A DESCRIPTION OF REDEVELOPMENT AREA HOME SUB LTS 15 & 16 & PT LTS 5 & 6 & 17 HOME SUB 158' X 100' SW CORNER LT 17 XC 112 SQ FT FOR STR HOME SUB N 117'8" OF S 275'8" OF W 132' OF LT 17 HOME SUB N 93.2' OF S 368.8' OF W 132' LT 17 HOME SUB S 40' OF N 73.66' OF W 132' OF LT 17 HOME SUB N 33.67' OF W 132' OF LT 17 HOME SUB 150' X 260' PT LT 6 all located in the City of Grand Island, Hall County, Nebraska, which shall be re platted as Lots One and Two, Skag-Way Subdivision to City of Grand Island, Hall County, Nebraska. A-I EXHIBIT B DESCRIPTION OF PROJECT Site acquisition, demolition and construction of a exterior façade and interior remodeling of Skagway supermarket building together with additional parking lot expansion. B- 1 EXHIBIT C TIF INDEBTEDNESS 1. Principal Amount: $798,654.00 [annual payment amounts assumed are $53,250] 2. Payments: Semi-annually or more frequent, with payments limited to annual incremental taxes revenues from the project. 3. Interest Rate: Zero percent (0.00%) 4. Maturity Date: On or before December 31, 2026. C-1 EXHIBIT D PROJECT COSTS All Project Costs payable from the proceeds of TIF indebtedness pursuant to the Act including: 1. Redevelopment Area Acquisition cost 2. Site demolition work and site preparation 3. Utility extensions, installation of gas, water, sewer and electrical lines and equipment 4. Façade improvements 5. Interior rehabilitation D-1 Item F1 #9290 - Consideration of Vacation of a Portion of a Utility Easement Located Between Sheridan Avenue & Orleans Drive, From 4th Street to 5th Street Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader, Interim Public Works Director City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Interim Public Works Director Meeting: March 8, 2011 Subject: Consideration of Vacation of a Portion of a Utility Easement Located Between Sheridan Avenue & Orleans Drive, From 4th Street to 5th Street Item #’s: F-1 Presenter(s): Gary R. Mader, Interim Public Works Director Background A thirty (30) foot wide utility easement was retained on August 15, 1979, by Ordinance No. 6484 when Hancock Avenue, in Kallos Second Subdivision was vacated. There isn’t a need for the full thirty (30) foot easement any longer. Discussion The property owner of Lots 20, 21 & 22 in Kallos Second Subdivision is requesting to vacate the west eighteen (18) feet of the easement, due to the construction of a building within that portion of the easement. The City will retain the east twelve (12) feet of the easement, along with eight (8) feet on the east side of the east property line, for utility access. This will allow for a total of twenty (20) feet of utility easement. 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 pass an ordinance vacating the west eighteen (18) feet of the utility easement in Kallos Second Subdivision. Sample Motion Move to pass an ordinance vacating the west eighteen (18) feet of the utility easement in Kallos Second Subdivision. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney This Space Reserved for Register of Deeds ORDINANCE NO. 9290 An ordinance to vacate a portion of an existing utility easement and to provide for filing this ordinance in the office of the Register of Deeds of Hall County, Nebraska; to repeal any ordinance or parts of ordinances in conflict herewith, and to provide for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. That a portion of the existing utility easement at 2904, 2905 & 2906 West 5th Street in Grand Island, Hall County, Nebraska, more particularly described as follows: VACATING THE WESTERLY 18’ OF THE EASTERLY 30’ OF THE EASEMENT BEING THE EASTERLY 30’ OF LOTS 20, 21, 22 KALLOS SECOND SUBDIVISION, CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. is hereby vacated. Such easement to be vacated is shown and more particularly described on Exhibit A attached hereto. SECTION 2. The title to the property vacated by Section 1 of this ordinance shall revert to the owner or owners of the real estate upon which the easement is located. SECTION 3. This ordinance is directed to be filed, with the drawing, in the office of the Register of Deeds of Hall County, Nebraska. ORDINANCE NO. 9290 (Cont.) - 2 - SECTION 3. This ordinance shall be in force and take effect from and after its passage and publication, within fifteen days in one issue of the Grand Island Independent as provided by law. Enacted: March 8, 2011. ____________________________________ Jay Vavricek, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Item F2 #9291 - Consideration of Authorizing Series 2011 Public Safety Tax Anticipation Refunding Bonds Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Meeting: March 8, 2011 Subject: Consideration of Authorizing Series 2011 Public Safety Tax Anticipation Refunding Bonds and Approving Redemption of Series 2006 Public Safety Tax Anticipation Bonds Item #’s: F-2 & G-14 Presenter(s): Mary Lou Brown, Finance Director Background Potential bond refinancing activities were reviewed with the Council during a Study Session late last year. The Resolution and Ordinance for the first refinancing is now ready to be presented to Council for action. Discussion The Public Safety Tax Anticipation Bonds, Series 2006, date of original issue – August 29, 2006 – in the principal amount of $5,735,000 are being called for payment on August 29, 2011; after such time, interest on the bonds will cease. These bonds were originally issued for the purpose of providing funds for the construction and equipping of the law enforcement center and miscellaneous costs associated therewith. These bonds will be replaced with the issuance of Public Safety Tax Anticipation Refunding Bonds, Series 2011 in the principal amount of $5,535,000. The purpose of these bonds is to pay and redeem the $5,735,000 of the City’s Bonds referenced above. Cornerstone Bank of York, Nebraska will serve as the escrow agent, paying agent and registrar. The final numbers and debt service savings will be available at the Council meeting Tuesday night. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve the Redemption of Series 2006 Public Safety Tax Anticipation Bonds in the principal amount of $5,735,000 and Authorize the Issuance of Series 2011 Public Safety Tax Anticipation Refunding Bonds in the principal amount of $5,535,000 2. Postpone the issue to a future meeting. 3. Take no action. Recommendation City Administration recommends that the Council approve the Redemption of Series 2006 Public Safety Tax Anticipation Bonds in the principal amount of $5,735,000 and the Issuance of Series 2011 Public Safety Tax Anticipation Refunding Bonds in the principal amount of $5,535,000. Sample Motion Move to approve the Redemption of Series 2006 Public Safety Tax Anticipation Bonds in the principal amount of $5,735,000 and the Issuance of Series 2011 Public Safety Tax Anticipation Refunding Bonds in the principal amount of $5,535,000. 1 1 ORDINANCE NO. 9291 AN ORDINANCE AUTHORIZING THE ISSUANCE OF PUBLIC SAFETY TAX ANTICIPATION REFUNDING BONDS OF THE CITY OF GRAND ISLAND, NEBRASKA, IN THE PRINCIPAL AMOUNT OF FIVE MILLION FIVE HUNDRED THIRTY-FIVE THOUSAND DOLLARS ($5,535,000) FOR THE PURPOSE OF PAYING AND REDEEMING $5,735,000 OF THE CITY’S OUTSTANDING PUBLIC SAFETY TAX ANTICIPATION BONDS, SERIES 2006, DATE OF ORIGINAL ISSUE – AUGUST 29, 2006; DIRECTING THE APPLICATION OF THE PROCEEDS OF SAID BONDS; PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR THE LEVY AND COLLECTION OF TAXES TO PAY THE SAME; PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE DELIVERY OF THE BONDS TO THE PURCHASER; AND ORDERING THE ORDINANCE PUBLISHED IN PAMPHLET FORM. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: Section 1. The Mayor and City Council hereby find and determine: a. that there have been heretofore issued and are now outstanding and unpaid valid and interest bearing bonds of the City of Grand Island, Nebraska, as follows: Public Safety Tax Anticipation Bonds, Series 2006, date of original issue - August 29, 2006, in the principal amount of Five Million Seven Hundred Thirty-five Thousand Dollars ($5,735,000), numbered as shown on the books of the Paying Agent and Registrar, and becoming due and bearing interest as follows: Principal Amount Maturity Date Interest Rate CUSIP No. $ 620,000 September 1, 2011 3.95% 385654 AE 8 645,000 September 1, 2012 4.00 385654 AF 5 670,000 September 1, 2013 4.00 385654 AG 3 700,000 September 1, 2014 4.10 385654 AH 1 725,000 September 1, 2015 4.15 385654 AJ 7 755,000 September 1, 2016 4.20 385654 AK 4 790,000 September 1, 2017 4.30 385654 AL 2 830,000 September 1, 2018 4.35 385654 AM 0 Said bonds are hereinafter referred to as the “Refunded Bonds.” The Refunded Bonds are subject to redemption at any time on or after August 29, 2011, at par and accrued interest, and said interest is payable semiannually. Said Refunded Bonds were issued for the purpose of providing funds for the ORDINANCE No. 9291 (Cont.) 2 construction and equipping of a law enforcement center and miscellaneous costs associated therewith. The Refunded Bonds are valid, interest bearing obligations of the City of Grand Island, Nebraska, and have been called for redemption on August 29, 2011 (the “Redemption Date”). Since the Refunded Bonds were issued, the rates of interest have so declined in the markets that by taking up and paying off said Refunded Bonds on the Redemption Date, a substantial savings in the amount of yearly running interest will be made to the City; that for the purpose of making said redemption, it is for the best interest of the City to issue refunding bonds of the City in the principal amount of $5,535,000; that all conditions, acts and things required to exist or to be done precedent to the issuance of refunding bonds of the City of Grand Island, Nebraska, in the principal amount of Five Million Five Hundred Thirty-five Thousand Dollars ($5,535,000), pursuant to Section 10-142 and Sections 18-1201 and 18-1202 R.R.S. Neb. 2007, do exist and have been done as required by law. (b) that the taxable valuation of all taxable property within the City as most recently determined, is $2,395,497,486; that the City has no outstanding bonds outstanding under the provisions of Section 18-1202 R.R.S. Neb. 2007, as amended; that pursuant to Section 18-1201 R.R.S. Nebraska, 2007, as amended, the Mayor and Council of the City of Grand Island do hereby provide for the levying of a special tax, all as more specifically described in Section 10 hereof; and that the annual debt service on the bonds herein authorized does not in any year exceed $____________. Section 2. To provide for the refunding of the Refunded Bonds as specified in Section 1 hereof, there shall be and there are hereby ordered issued Public Safety Tax Anticipation Refunding Bonds, Series 2011, of the City of Grand Island, Nebraska, in the principal amount of Five Million Five Hundred Thirty-five Thousand Dollars ($5,535,000) (the “Series 2011 Bonds”) with said bonds bearing interest at the rates per annum (said interest to be computed on the basis of a 360-day year consisting of twelve 30-day months) and maturing on September 1 of each year in the principal amounts as follows: ORDINANCE No. 9291 (Cont.) 3 3 Principal Amount Date of Maturity Rate of Interest $ 280,000 September 1, 2011 715,000 September 1, 2012 720,000 September 1, 2013 735,000 September 1, 2014 740,000 September 1, 2015 760,000 September 1, 2016 780,000 September 1, 2017 805,000 September 1, 2018 The Series 2011 Bonds shall be issued in fully registered form in the denomination of $5,000 or any integral multiple thereof. The Series 2011 Bonds shall bear date of original issue of the date of delivery thereof. Interest on the Series 2011 Bonds, at the respective rates for each maturity, shall be payable semiannually on March 1 and September 1 of each year, commencing September 1, 2011 (each of said dates an “Interest Payment Date”) and the Series 2011 Bonds shall bear such interest from the date of original issue or the most recent Interest Payment Date, whichever is later. The interest due on each Interest Payment Date shall be payable to the registered owners of record as of the close of business on the fifteenth day of the month immediately preceding the month in which the Interest Payment Date occurs (the “Record Date”), subject to the provisions of Section 4 hereof. The Series 2011 Bonds shall be numbered from 1 upwards in the order of their issuance. No Series 2011 Bond shall be issued originally or upon transfer or partial redemption having more than one principal maturity. The initial bond numbering and principal amounts for each of the Series 2011 Bonds issued shall be designated by the City’s Treasurer as directed by the initial purchaser thereof. Payments of interest due on the Series 2011 Bonds prior to maturity or date of redemption shall be made by the Paying Agent and Registrar, as designated pursuant to ORDINANCE No. 9291 (Cont.) 4 4 Section 3 hereof, by mailing a check or draft in the amount due for such interest on each Interest Payment Date to the registered owner of each Series 2011 Bond, as of the Record Date for such Interest Payment Date, to such owner’s registered address as shown on the books of registration as required to be maintained in Section 3 hereof. Payments of principal and accrued interest thereon due at maturity or at any date fixed for redemption prior to maturity shall be made by said Paying Agent and Registrar to the registered owners upon presentation and surrender of the Series 2011 Bonds to said Paying Agent and Registrar. The City and said Paying Agent and Registrar may treat the registered owner of any Series 2011 Bond as the absolute owner of such Series 2011 Bond for the purpose of making payments thereon and for all other purposes and neithe r the City nor the Paying Agent and Registrar shall be affected by any notice or knowledge to the contrary, whether such Series 2011 Bond or any installment of interest due thereon shall be overdue or not. All payments on account of interest or principal made to the registered owner of any Series 2011 Bond in accordance with the terms of this Ordinance shall be valid and effectual and shall be a discharge of the City and said Paying Agent and Registrar, in respect of the liability upon the Series 2011 Bonds or claims for interest to the extent of the sum or sums so paid. Section 3. Cornerstone Bank, York, Nebraska, is hereby designated as Paying Agent and Registrar for the Series 2011 Bonds. Said Paying Agent and Registrar shall serve in such capacities under the terms of an agreement entitled “Paying Agent and Registrar's Agreement” between the City and said Paying Agent and Registrar, the form of which is hereby approved. The Mayor and City Clerk are hereby authorized to execute said agreement in substant ially the form presented but with such changes as they shall ORDINANCE No. 9291 (Cont.) 5 5 deem appropriate or necessary. The Paying Agent and Registrar shall keep and maintain for the City books for the registration and transfer of the Series 2011 Bonds at its principal corporate trust office. The names and registered addresses of the registered owner or owners of the Series 2011 Bonds shall at all times be recorded in such books. Any Series 2011 Bond may be transferred pursuant to its provisions at the principal corporate trust office of said Paying Agent and Registrar by surrender of such Series 2011 Bond for cancellation, accompanied by a written instrument of transfer, in form satisfactory to said Paying Agent and Registrar, duly executed by the registered owner in person or by such owner's duly authorized agent, and thereupon the Paying Agent and Registrar on behalf of the City will deliver at its office (or send by registered mail to the transferee owner or owners thereof at such transferee owner's or owners' risk and expense), registered in the name of such transferee owner or owners, a new Series 2011 Bond or Series 2011 Bonds of the same interest rate, aggregate principal amount and maturity. To the extent of the denominations authorized for the Series 2011 Bonds by this Ordinance, one such bond may be transferred for several such bonds of the same interest rate and maturity, and for a like aggregate principal amount, and several such bonds may be transferred for one or several such bonds, respectively, of the same interest rate and maturity and for a like aggregate principal amount. In every case of transfer of a Series 2011 Bond, the surrendered Series 2011 Bond or Bonds shall be canceled and destroyed. All Series 2011 Bonds issued upon transfer of the Series 2011 Bonds so surrendered shall be valid obligations of the City evidencing the same obligations as the Series 2011 Bonds surrendered and shall be entitled to all the benefits and protection of this Ordinance to the same extent as the Series 2011 Bonds upon transfer of which they ORDINANCE No. 9291 (Cont.) 6 6 were delivered. The City and said Paying Agent and Registrar shall not be required to transfer any Series 2011 Bond during any period from any Record Date until its immediately following Interest Payment Date or to transfer any Series 2011 Bond called for redemption for a period of 30 days next preceding the date fixed for redemption. Section 4. In the event that payments of interest due on the Series 2011 Bonds on an Interest Payment Date are not timely made, such interest shall cease to be payable to the registered owners as of the Record Date for such Interest Payment Date and shall be payable to the registered owners of the Series 2011 Bonds as of a special date of record for payment of such defaulted interest as shall be designated by the Paying Agent and Registrar whenever monies for the purpose of paying such defaulted interest become available. Section 5. If the date for payment of the principal of or interest on the Series 2011 Bonds shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent and Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such day shall have the same force and effect as if made on the nominal date of payment. Section 6. Series 2011 Bonds maturing September 1, 2016 and thereafter shall be subject to redemption, in whole or in part, prior to maturity at any time on or after the fifth anniversary of the date of original issue thereof, at par plus accrued interest on the principal amount redeemed to the date fixed for redemption. The City may select the ORDINANCE No. 9291 (Cont.) 7 7 Series 2011 Bonds to be redeemed in its sole discretion but the Series 2011 Bonds shall be redeemed only in amounts of $5,000 or integral multiples thereof. Series 2011 Bonds redeemed in part only shall be surrendered to said Paying Agent and Registrar in exchange for new Series 2011 Bonds evidencing the unredeemed principal thereof. Notice of redemption of any Series 2011 Bond called for redemption shall be given at the direction of the City by said Paying Agent and Registrar by mail not less than 30 days prior to the date fixed for redemption, first class, postage prepaid, sent to the registered owner of such Series 2011 Bond at said owner’s registered address. Such notice shall designate the Series 2011 Bond or Series 2011 Bonds to be redeemed by maturity or otherwise, the date of original issue and the date fixed for redemption and shall state that such Series 2011 Bond or Series 2011 Bonds are to be presented for prepayment at the office of said Paying Age nt and Registrar. In case of any Series 2011 Bond partially redeemed, such notice shall specify the portion of the principal amount of such Series 2011 Bond to be redeemed. No defect in the mailing of notice for any Series 2011 Bond shall affect the sufficiency of the proceedings of the City designating the Series 2011 Bonds called for redemption or the effectiveness of such call for Series 2011 Bonds for which notice by mail has been properly given and the City shall have the right to further direct notice of redemption for any such Series 2011 Bond for which defective notice has been given. Section 7. The Series 2011 Bonds shall be in substantially the following form: ORDINANCE No. 9291 (Cont.) 8 8 UNITED STATES OF AMERICA STATE OF NEBRASKA COUNTY OF HALL PUBLIC SAFETY TAX ANTICIPATION REFUNDING BOND OF THE CITY OF GRAND ISLAND, NEBRASKA SERIES 2011 No. $ Interest Rate Maturity Date Date of Original Issue CUSIP No. _____________ , 2011 Registered Owner: Principal Amount: Dollars ($ ) KNOW ALL PERSONS BY THESE PRESENTS: That the City of Grand Island, in the County of Hall, in the State of Nebraska, hereby acknowledges itself to owe and for value received promises to pay to the registered owner specified above, or registered assigns, the principal amount specified above in lawful money of the United States of America on the date of maturity specified above with interest thereon to maturity (or earlier redemption) from the date of original issue or most recent Interest Payment Date, whichever is later, at the rate per annum specified above, payable semiannually on March 1 and September 1 of each year, commencing September 1, 2011 (each of said dates an “Interest Payment Date”). Said interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The principal hereof and unpaid accrued interest thereon due at maturity or upon redemption prior to maturity are payable upon presentation and surrender of this bond at the principal corporate trust office of Cornerstone Bank, the Paying Agent and Registrar, in York, Nebraska. Interest on this bond due prior to maturity or earlier redemption will be paid on each Interest Payment Date by a check or draft mailed by the Paying Agent and Registrar to the registered owner of this bond, as shown on the books of record maintained by the Paying Agent and Registrar, at the close of business on the fifteenth day of the month immediately preceding the month in which the Interest Payment Date occurs, to such owner’s registered address as shown on such books and records. Any interest not so timely paid shall cease to be payable to the person entitled thereto as of the record date such interest was payable, and shall be payable to the person who is the registered owner of this bond (or of one or more predecessor bonds hereto) on such special record date for payment of such defaulted interest as shall be fixed by the Paying Agent and Registrar whenever monies for such purpose become available. This bond is one of an issue of fully registered bonds of the total principal amount of Five Million Five Hundred Thirty-five Thousand Dollars ($5,535,000), of even date and like tenor except as to date of maturity, rate of interest and denomination which were issued by the City for the purpose of refunding on August 29, 2011, $5,735,000 Public ORDINANCE No. 9291 (Cont.) 9 9 Safety Tax Anticipation Bonds, Series 2006, of the City, date of original issue - August 29, 2006, all in strict compliance with Sections 10-142, 18-1201 and 18-1202 R.R.S. Neb. 2007, as amended. The issua nce of said bonds has been authorized by proceedings duly had and an ordinance legally passed, approved and published by the Mayor and Council of said City (the “Ordinance”). Bonds of this issue maturing September 1, 2016, and thereafter are subject to redemption at the option of the City, in whole or in part, at any time on or after the fifth anniversary of the date of original issue thereof, at par plus interest accrued on the principal amount redeemed to the date fixed for redemption. Notice of redemption shall be given by mail to the registered owner of any bond to be redeemed at said registered owner’s address in the manner specified in the Ordinance. Individual bonds may be redeemed in part but only in $5,000 amounts or integral multiples thereof. This bond is transferable by the registered owner or such owner’s attorney duly authorized in writing at the office of the Paying Agent and Registrar upon surrender and cancellation of this bond, and thereupon a new bond or bonds of the same aggregate principal amount, interest rate and maturity will be issued to the transferee as provided in the Ordinance, subject to the limitations therein prescribed. The City, the Paying Agent and Registrar and any other person may treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment due hereunder and for all purposes and shall not be affected by any notice to the contrary, whether this bond be overdue or not. If the date for payment of the principal of or interest on this bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent and Registrar is located, are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such day shall have the same force and effect as if made on the nominal date of payment. IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this bond did exist, did happen and were done and performed in regular and due form and time as required by law and that the indebtedness of said City, including this bond, does not exceed any limitation imposed by law. The City has agreed to make a special levy of taxes as permitted by Section 18-1201 R.R.S. Neb., 2007, as amended, of not more than 5¢ per $100 of taxable value on all the taxable property within the City, which tax shall be sufficient in rate and amount to fully pay the principal and interest of this bond and the other bonds of this issue as the same become due. The City agrees that said bonds shall be secured by such tax so assessed and levied and shall be payable only out of the funds derived from such tax. AS PROVIDED IN THE ORDINANCE REFERRED TO HEREIN, UNTIL THE TERMINATION OF THE SYSTEM OF BOOK-ENTRY-ONLY TRANSFERS ORDINANCE No. 9291 (Cont.) 10 10 THROUGH THE DEPOSITORY TRUST COMPANY, NEW YORK, NEW YORK (TOGETHER WITH ANY SUCCESSOR SECURITIES DEPOSITORY APPOINTED PURSUANT TO THE ORDINANCE, “DTC”), AND NOTWITHSTANDING ANY OTHER PROVISIONS OF THE ORDINANCE TO THE CONTRARY, A PORTION OF THE PRINCIPAL AMOUNT OF THIS BOND MAY BE PAID OR REDEEMED WITHOUT SURRENDER HEREOF TO THE PAYING AGENT AND REGISTRAR. DTC OR A NOMINEE, TRANSFEREE OR ASSIGNEE OF DTC OF THIS BOND MAY NOT RELY UPON THE PRINCIPAL AMOUNT INDICATED HEREON AS THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID. THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID SHALL FOR ALL PURPOSES BE THE AMOUNT DETERMINED IN THE MANNER PROVIDED IN THE ORDINANCE. UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED OFFICER OF DTC (A) TO THE PAYING AGENT AND REGISTRAR FOR REGISTRATION OF TRANSFER OR EXCHANGE OR (B) TO THE PAYING AGENT AND REGISTRAR FOR PAYMENT OF PRINCIPAL, AND ANY BOND ISSUED IN REPLACEMENT HEREOF OR SUBSTITUTION HEREOF IS REGISTERED IN THE NAME OF DTC AND ANY PAYMENT IS MADE TO DTC OR ITS NOMINEE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSONS IS WRONGFUL BECAUSE ONLY THE REGISTERED OWNER HEREOF, DTC OR ITS NOMINEE, HAS AN INTEREST HEREIN. This bond shall not be valid and binding on the City until authenticated by the Paying Agent and Registrar. IN WITNESS WHEREOF, the Mayor and Council of the City of Grand Island, Nebraska, have caused this bond to be executed on behalf of the City with the facsimile signatures of the Mayor and the City Clerk and by causing the official seal of the City to be imprinted hereon or affixed hereto, all as of the date of original issue specified above. CITY OF GRAND ISLAND, NEBRASKA (Do not sgn)__________________ Mayor ATTEST: (Do not sign)________________________ City Clerk (SEAL) ORDINANCE No. 9291 (Cont.) 11 11 CERTIFICATE OF AUTHENTICATION This bond is one of the bonds authorized by the Ordinance of the Mayor and City Council of the City of Grand Island, in the State of Nebraska, described in the foregoing bond. Cornerstone Bank York, Nebraska Paying Agent and Registrar By: ______________________________________ Authorized Signature (Form of Assignment) For value received hereby sells, assigns and transfers unto ________________________________________________________________(Social Security or Taxpayer I.D. No. ) the within bond and hereby irrevocably constitutes and appoints , attorney, to transfer the same on the books of registration in the office of the within mentioned Paying Agent and Registrar with full power of substitution in the premises. Dated:____________________________________ Registered Owner(s) __________________________________________ __________________________________________ Signature Guaranteed By ____________________________ Authorized Officer(s) Note: The signature(s) on this assignment MUST CORRESPOND with the name(s) as written on the face of the within bond in every particular, without alteration, ORDINANCE No. 9291 (Cont.) 12 12 enlargement or any change whatsoever, and must be guaranteed by a commercial bank or a trust company or by a firm having membership on the New York, Midwest or other stock exchange. Section 8. Each of the Series 2011 Bonds shall be executed on behalf of the City with the facsimile signatures of the Mayor and the City Clerk and shall have imprinted thereon the City’s seal. The Series 2011 Bonds shall be issued initially as “book-entry-only” bonds under the services of The Depository Trust Company (the “Depository”), with one typewritten bond per maturity being issued to the Depository. In such connection said officers are authorized to execute and deliver a Letter of Representations (the “Letter of Representations”) in the form required by the Depository (which may be in the form of a blanket letter, including any such letter previously executed and delivered), for and on behalf of the City, which shall thereafter govern matters with respect to registration, transfer, payment and redemption of the Series 2011 Bonds. With respect to the issuance of the Series 2011 Bonds as “book-entry-only” bonds, the following provisions shall apply: (a) The City and the Paying Agent and Registrar shall have no responsibility or obligation to any broker-dealer, bank or other financial institution for which the Depository holds Series 2011 Bonds as securities depository (each, a “Bond Participant”) or to any person who is an actual purchaser of a Series 2011 Bond from a Bond Participant while the Series 2011 Bonds are in book-entry form (each, a “Beneficial Owner”) with respect to the following: (i) the accuracy of the records of the Depository, any nominees of the Depository or any Bond Participant with respect to any ownership interest in the Series 2011 Bonds; (ii) the delivery to any Bond Participant, any Beneficial Owner or any other person, other than the Depository, of any notice with respect to the Series 2011 Bonds, including any notice of redemption; or (iii) the payment to any Bond Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the Series 2011 Bonds. The Paying Agent and Registrar shall make ORDINANCE No. 9291 (Cont.) 13 13 payments with respect to the Series 2011 Bonds only to or upon the order of the Depository or its nominee, and all such payments shall be valid and effective fully to satisfy and discharge the obligations with respect to such Series 2011 Bonds to the extent of the sum or sums so paid. No person other than the Depository shall receive an authenticated Bond, except as provided in (e) below. (b) Upon receipt by the Paying Agent and Registrar of written notice from the Depository to the effect that the Depository is unable or unwilling to discharge its responsibilities, the Paying Agent and Registrar shall issue, transfer and exchange Series 2011 Bonds requested by the Depository in appropriate amounts. Whenever the Depository requests the Paying Agent and Registrar to do so, the Paying Agent and Registrar will cooperate with the Depository in taking appropriate action after reasonable notice (i) to arrange, with the prior written consent of the City, for a substitute depository willing and able upon reasonable and customary terms to maintain custody of the Series 2011 Bonds or (ii) to make available Series 2011 Bonds registered in whatever name or names as the Beneficial Owners transferring or exchanging such Series 2011 Bonds shall designate. (c) If the City determines that it is desirable that certificates representing the Series 2011 Bonds be delivered to the ultimate beneficial owners of the Series 2011 Bonds and so notifies the Paying Agent and Registrar in writing, the Paying Agent and Registrar shall so notify the Depository, whereupon the Depository will notify the Bond Participants of the availability through the Depository of bond certificates representing the Series 2011 Bonds. In such event, the Paying Agent and Registrar shall issue, transfer and exchange bond certificates representing the Series 2011 Bonds as requested by the Depository in appropriate amounts and in authorized denominations. (d) Notwithstanding any other provision of this Ordinance to the contrary, so long as any Series 2011 Bond is registered in the name of the Depository or any nominee thereof, all payments with respect to such Series 2011 Bond and all notices with respect to such Series 2011 Bond shall be made and given, respectively, to the Depository as provided in the Letter of Representations. (e) Registered ownership of the Series 2011 Bonds may be transferred on the books of registration maintained by the Paying Agent and Registrar, and the Series 2011 Bonds may be delivered in physical form to the following: (i) any successor securities depository or its nominee; or (ii) any person, upon (A) the resignation of the Depository from its functions as depository or (B) termination of the use of the Depository pursuant to this Section. ORDINANCE No. 9291 (Cont.) 14 14 (f) In the event of any partial redemption of a Series 2011 Bond unless and until such partially redeemed bond has been replaced in accordance with the provisions of this Ordinance, the books and records of the Paying Agent and Registrar shall govern and establish the principal amount of such bond as is then outstanding and all of the Series 2011 Bonds issued to the Depository or its nominee shall contain a legend to such effect. If for any reason the Depository is terminated or resigns and is not replaced, the City shall immediately provide a supply of printed bond certificates, duly executed by manual or facsimile signatures of the Mayor and City Clerk and sealed with the City’s seal, for issuance upon the transfers from the Depository and subsequent transfers or in the event of partial redemption. In the event that such supply of certificates shall be insufficient to meet the requirements of the Paying Agent and Registrar for issuance of replacement certificates upon transfer or partial redemption, the City agrees to order printed an additional supply of such certificates and to direct their execution by manual or facsimile signatures of its then duly qualified and acting Mayor and City Clerk and by imprinting thereon or affixing thereto the City’s seal. In case any officer whose signature or facsimile thereof shall appear on any Series 2011 Bond shall cease to be such officer before the delivery of such bond (including such certificates delivered to the Paying Agent and Registrar for issuance upon transfer or partial redemption), such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes the same as if such officer or officers had remained in office until the delivery of such bond. The Series 2011 Bonds shall not be valid and binding on the City until authenticated by the Paying Agent and Registrar. The Series 2011 Bonds shall be delivered to the Paying Agent and Registrar for registration and authentication. Upon execution, registration, and authentication of the Series 2011 Bonds, they shall be delivered to the City Treasurer, who is authorized to deliver them to Ameritas Investment Corp., as initial purchaser ORDINANCE No. 9291 (Cont.) 15 15 thereof. The Series 2011 Bonds are hereby sold to said purchaser for the sum of $______________, plus accrued interest, if any, thereon to date of payment and delivery. Such purchaser and its agents, representatives and counsel (including its bond counsel) are hereby authorized to take such actions on behalf of the City as are necessary to effectuate the closing of the issuance and sale of the Series 2011 Bonds, including without limitation, authorizing the release of the Series 2011 Bonds by the Depository at closing. Said initial purchaser shall have the right to direct the registration of the Series 2011 Bonds and the denominations thereof within each maturity, subject to the restrictions of this Ordinance. The officers of the City (or any one of them) are hereby authorized to execute and deliver the Bond Purchase Agreement for and on behalf of the City. The Treasurer of the City shall maintain a record of information with respect to the Series 2011 Bonds as required under Section 10-140, R.R.S. 2007, and shall cause the same to be filed in the office of the Auditor of Public Accounts of the State of Nebraska. The City Clerk shall make and certify a duplicate transcript of the proceedings of the Mayor and Council with respect to the Series 2011 Bonds which shall be delivered to said purchaser. The officers of the City are further authorized to take such actions as such officers may deem necessary or appropriate in order to carry out the terms of this Ordinance. Section 9. The proceeds of the Series 2011 Bonds herein authorized shall be applied to: (a) the payment of principal of and interest on the Refunded Bonds as the same fall due on and prior to the Redemption Date, and as called for redemption on the Redemption Date and paying the costs of issuance of the Series 2011 Bonds. Accrued interest, if any, received upon closing of the Series 2011 Bonds shall be applied to pay ORDINANCE No. 9291 (Cont.) 16 16 interest falling due on September 1, 2011. All of the proceeds of the Series 2011 Bonds remaining after payment of costs of issuance, together with such other available funds of the City as may be required to fully fund the escrow for the Refunded Bonds, shall be set aside and held and invested in a special trust account for payment of the Refunded Bonds which is hereby ordered established. Cornerstone Bank, York, Nebraska, is hereby designated to serve as the escrow agent ("Escrow Agent"), to have custody and safekeeping of the funds and investments which are to be set aside for the payment of the Refunded Bonds. For purposes of governing such escrow account and the holding and application of such funds and investments, the City shall enter into a contract entitled "Escrow Agreement" with the Escrow Agent. The Mayor and City Clerk are hereby authorized and directed to execute and deliver on behalf of the City said Escrow Agreement, including necessary counterparts, in substantially the form and content as presented to the meeting at which this Ordinance is passed, but with such changes and modifications therein as to them seem necessary, desirable, or appropriate for and on behalf of the City. Said Mayor and City Clerk are further authorized to approve the investments provided for in said Escrow Agreement, and to make any necessary subscriptions for United States Treasury Securities, State and Local Government Series, or to contract for the purchase of securities in the open market. Said proceeds shall be invested in obligations of the United States Government, direct or guaranteed, including United States Treasury Securities, State and Local Government Series. To the extent that such proceeds are held in a bank depository account, such deposits shall be insured by insurance of the Federal Deposit Insurance Corporation or, to the extent not fully insured, fully collateralized in the same manner as is required for deposit of public funds. Any ORDINANCE No. 9291 (Cont.) 17 17 investment from the proceeds of the Series 2011 Bonds herein authorized shall mature not later than August 29, 2011. As provided in said Escrow Agreement, the proceeds of the Series 2011 Bonds herein authorized and investment earnings thereon shall be applied to the payment of the principal of and interest on the Refunded Bonds as the same become due on and prior to the Redemption Date, and as called for redemption on the Redemption Date. The City agrees that on the date of issuance of the Series 2011 Bonds, or as soon thereafter as practicable, it shall deposit or otherwise have on hand with the Escrow Agent from City funds on hand sufficient after taking into consideration available proceeds of the Series 2011 Bonds and investment earnings to provide funds for all payments due on the Refunded Bonds on or before the Redemption Date, and as called for redemption on the Redemption Date. The City hereby covenants and agrees to take all steps necessary and appropriate, including transfer and deposit of any additional required funds, to provide for the calling and redemption of the Refunded Bonds on August 29, 2011. Section 10. The holders of the Series 2011 Bonds shall be subrogated to all rights of the holders of the Refunded Bonds. The City agrees that it shall, pursuant to Section 18-1201 R.R.S. Neb. 2011, as amended, levy a special tax so long as any of the Series 2011 Bonds remain outstanding of not more than 5¢ per $100 of taxable value on all the taxable property within the City. The City further agrees that such tax shall be levied in such amount so that in each calendar year in which payments of principal and interest fall due on the Series 2011 Bonds, the anticipated amount to be collected from such tax shall be an amount of not less than 112% of the total amount of principal and interest payable on the Series 2011 Bonds in such calendar year. The Series 2011 Bonds shall be secured ORDINANCE No. 9291 (Cont.) 18 18 by such tax and shall be payable out of the funds derived from such tax. On receipt of such taxes, the City Treasurer shall hold such tax in a separate fund for the purpose of paying the Series 2011 Bonds or making redemptions as provided in Section 6 of this Ordinance. Section 11. The City hereby covenants to the purchasers and holders of the Series 2011 Bonds hereby authorized that it will make no use of the proceeds of said bond issue, including monies held in any sinking fund for the Series 2011 Bonds, which would cause the Series 2011 Bonds to be arbitrage bonds within the meaning of Sections 103(b) and 148 of the Internal Revenue Code of 1986, as amended (the “Code”), and fur ther covenants to comply with said Sections 103(b) and 148 and all applicable regulations thereunder throughout the term of said bond issue. The City hereby covenants and agrees to take all actions necessary under the Code to maintain the tax exempt status (as to taxpayers generally) of interest payable on the Series 2011 Bonds. The City hereby designates the Series 2011 Bonds as its “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B)(i)(III) of the Code and covenants and warrants that it does not reasonably expect to issue tax-exempt bonds or other tax-exempt obligations aggregating in principal amount more than $10,000,000 during calendar 2011 (taking into consideration the exception for current refunding issues), provided that the amount of the Series 2011 Bonds hereby designated shall be reduced as and to the extent that a portion of the Series 2011 Bonds may be determined to be “deemed designated” in accordance with the provisions of Section 265(b)(3)(D) of the Code. Section 12 The City's obligations under this Ordinance with respect to any or all of the Series 2011 Bonds herein authorized shall be fully discharged and satisfied as to ORDINANCE No. 9291 (Cont.) 19 19 any or all of such Series 2011 Bonds and any such Series 2011 Bond shall no longer be deemed to be out standing hereunder if such Series 2011 Bond has been purchased by the City and canceled or when the payment of the principal of and interest thereon to the respective date of maturity or redemption (a) shall have been made or caused to be made in accordance with the terms thereof or (b) shall have been provided for by depositing with the Paying Agent and Registrar, or with a national or state bank having trust powers, or trust company, in trust, solely for such payment (i) sufficient money to make such payment and/or (ii) direct general obligations (including obligations issued or held in book entry form on the books of the Department of Treasury of the United States of America) of or obligations the principal and interest of which are unconditionally guaranteed by the United States of America (herein referred to as "U.S. Government Obligations") in such amount and bearing interest payable and maturing or redeemable at stated fixed prices at the option of the holder as to principal, at such time or times, as will ensure the availability of sufficient money to make such payment; provided, however, that with respect to any Series 2011 Bond to be paid prior to maturity, the City shall have duly called such bond for redemption and given notice of such redemption as provided by law or made irrevocable provision for the giving of such notice. Any money so deposited with a bank or trust company or the Paying Agent and Registrar may be invested or reinvested in U.S. Government Obligations at the direction of the City, and all interest and income from U.S. Government Obligations in the hands of such bank or trust company or Paying Agent and Registrar in excess of the amount required to pay principal of and interest on the Series 2011 Bonds for which such monies or U.S. Government Obligations were deposited shall be paid over to the City as and when collected. ORDINANCE No. 9291 (Cont.) 20 20 Section 13. In accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission, the City, being the only “obligated person” with respect to the Series 2011 Bonds, agrees that it will provide the following continuing disclosure information to the Municipal Securities Rulemaking Board (the “MSRB”) in an electronic format as prescribed by the MSRB: (a) not later than seven months after the end of each fiscal year of the City (the “Delivery Date”), financial information or operating data for the City of the type accompanying the audited financial statements of the City entitled “Management’s Discussion and Analysis” (“Annual Financial Information”); (b) when and if available, audited financial statements for the City; audited financial information shall be prepared on the basis of generally accepted accounting principles; and (c) in a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events with respect to the Series 2011 Bonds: (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties (there are no debt service reserves established for the Series 2011 Bonds under the terms of this Ordinance); (4) unscheduled draws on credit enhancements reflecting financial difficulties (not applicable to the Series 2011 Bonds); (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Series 2011 Bonds, or other material events affecting the tax status of the Series 2011 Bonds; (7) modifications to rights of the holders of the Series 2011 Bonds, if material; ORDINANCE No. 9291 (Cont.) 21 21 (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Series 2011 Bonds, if material; (11) rating changes (the Series 2011 Bonds are not rated and no rating for the Series 2011 Bonds is expected to be requested); (12) bankruptcy, insolvency, receivership or similar events of the City (this event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City); (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. The City has not undertaken to provide notice of the occurrence of any other event, except the events listed above. (d) in a timely manner, notice of any failure on the part of the City to provide Annual Financial Information not later than the Delivery Date. The City agrees that all documents provided to the MSRB under the terms of this continuing disclosure undertaking shall be in such electronic format and accompanied by such identifying information as shall be prescribed by the MSRB. The City reserves the right to modify from time to time the specific types of information provided or the format ORDINANCE No. 9291 (Cont.) 22 22 of the presentation of such information or the accounting methods in accordance with which such information is presented, to the extent necessary or appropriate in the judgment of the City, consistent with the Rule. The City agrees that such covenants are for the benefit of the registered owners of the Series 2011 Bonds (including Beneficial Owners) and that such covenants may be enforced by any registered owner or Beneficial Owner, provided that any such right to enforcement shall be limited to specific enforcement of such undertaking and any failure shall not constitute an event of default under the Resolution. The continuing disclosure obligations of the City, as described above, shall cease when none of the Series 2011 Bonds remain outstanding. Section 14. The Preliminary Official Statement is hereby approved and the Mayor and City Clerk are hereby authorized to approve on behalf of the City a final Official Statement with any changes deemed appropriate by them. Section 15. This Ordinance shall be in force and take effect from and after its passage and publication in pamphlet form as provided by law. PASSED AND APPROVED this 8th day of March, 2011. _________________________________ ___________________________________ City Clerk Mayor (SEAL) Item G1 Approving Minutes of February 22, 2011 City Council Regular Meeting Tuesday, March 08, 2011 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 February 22, 2011 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 February 22, 2011. Notice of the meeting was given in The Grand Island Independent on February 16, 2011. Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following City Council members were present: Larry Carne y, Kirk Ramsey, Mitch Nickerson, Linna Dee Donaldson, Scott Dugan, Randy Gard and John Gericke. Councilmembers Bob Niemann, Chuck Haase and Peg Gilbert were absent. The following City Officials were present: Interim City Administrator/Finance Director Mary Lou Brown, City Clerk RaNae Edwards, Interim City Attorney Jason Eley, Interim Public Works Engineer Terry Brown, and Interim Public Works/Utilities Director Gary Mader. INVOCATION was given by Pastor Nick Schonlau, Third City Christian Church, 4100 West 13th Street followed by the PLEDGE OF ALLEGIANCE. MAYOR COMMUNICATION: Mayor Vavricek introduced Community Youth Council members Danielle Jim and Dillon Spies. Interim City Administrator/Finance Director Mary Lou Brown gave the January financials. Overall, financials were looking good. Interest income was soft with a $100,000 less than planned. Sales taxes reflected in December were very good. Food and beverage taxes were very strong. Gas tax was doing fairly well, somewhat of a drop possibly due to winter weather. PRESENTATIONS AND PROCLAMATIONS: Proclamation “Nebraska Danger Week” March 7-13, 2011. Mayor Vavricek proclaimed the week of March 7-13, 2011 as “Nebraska Danger Week”. Owners Charlie and Brandi Bosselman, Chuck Bosselman and General Manager Mike McCoy were present to receive the proclamation. Comments were made concerning the first Nebraska Indoor Pro Football Team. Proclamation “National Athletic Training Month” March, 2011. This item was postponed to the March 8, 2011 meeting. Presentation by Almquist, Maltzahn, Galloway, & Luth for Fiscal Year 2010 City Single Audit and General Purpose Financial Statements and Electric and Water Audit Reports. Terry Galloway from Almquist, Maltzahn, Galloway & Luth gave the 2010 City Single Audit and General Purpose financial statements and electric and water audit reports. A brief overview and review of the report was given. A clean opinion was given. The City is operating efficiently while being good stewards. The following future considerations were presented: · Impact of New Bills in Legislation Page 2, City Council Regular Meeting, February 22, 2011 · Value of an Internal Auditor · Audit Finds and other Issues · Continuation of Program Prioritization Mr. Galloway explained the recommended figures in the audit. Municipal Equalization and State Aid were also explained. ORDINANCES: #9286 – Consideration of Annexation Right-of-Way along a Portion of South Locust Street between the Grand Island City Limits and the Northernmost Terminus of the Exit Ramps to the Interstate 80 Interchange (Final Reading) Regional Pla nning Director Chad Nabity reported this was the final reading of three readings and was not suggesting extension of the zoning jurisdiction as a result of this annexation. Staff recommended approval. Motion by Nickerson, second by Gericke to approve Ordinance #9286 on final reading. Upon roll call vote, all voted aye. Motion adopted. CONSENT AGENDA: Consent agenda items G-8, G-9, and G-10 were removed for further discussion. Motion by Carney, second by Gard to approve the Consent Agenda excluding items G-8, G-9, and G-10. Upon roll call vote, all voted aye. Motion adopted. Approving Minutes of February 8, 2011 City Council Regular Meeting. #2011-37 – Approving Bid Award for One (1) 30,000 Pound Front-Wheel Drive Front End Loader for the Streets Division with Fairbanks of Grand Island, Nebraska in an Amount of $99,750.00. #2011-38 – Approving the Adoption of a Resolution to Revise the National Functional Classification. #2011-39 – Approving the Purchase of Recycle Pump Parts for the Wastewater Division from Bert Gurney & Associations of Omaha, Nebraska in an Amount of $29,996.00. #2011-40 – Approving Bid Award for Burdick Station Boiler Roof Replacement from Tri-Cities Group of Grand Island, Nebraska in an Amount of $40,755.00. #2011-41 – Approving Bid Award for Precipitator and Duct Cleaning at Platte Generating Station with W-S Industrial Services of Council Bluffs, Iowa in an Amount of $52,087.00. #2011-42 – Approving Certificate of Final Completion for Water Main Project 2009-W-6 (Sixth Street, Elm to Pine Street) with K2 Construction of Lincoln, Nebraska. #2011-43 – Approving Consideration to Proceed with Uranium Removal Installation System. Utilities Director Gary Mader explained the process and reasons for the uranium removal. Page 3, City Council Regular Meeting, February 22, 2011 Mentioned was the Study Session of January 18, 2011 and the presentation by HDR Engineering. Mr. Mader stated that our water is safe and we were being proactive to stay within compliance. Discussion was held regarding a timeline of when we would not be in compliance. Mr. Mader stated we were very close to not being in compliance with State regulations. Explained was the technology to be used in this process, which had been successful in a small pilot project at the well fields. Water rate increases were mentioned. Lewis Kent, 624 East Meves Avenue spoke in opposition. Motion by Ramsey, second by Dugan to approve Resolution #2011-43. Upon roll call vote, all voted aye. Motion adopted. #2011-44 – Approving Certificate of Final Completion for Irrigation Installation at Veterans Athletic Field Complex with Nature’s Helper Sprinkler Systems of Omaha, Nebraska. Interim City Attorney Jason Eley answered questions concerning testing the system. He stated the system had been tested and winterized. Motion by Dugan, second by Gard to approve Resolution #2011-44. Upon roll call vote, all voted aye. Motion adopted. #2011-45 – Approving Interlocal Agreement with hall County for Aerial Photography. Regional Planning Director Chad Nabity stated this was an Interlocal Agreement with Hall County paying 50% of the cost. Explained were the quality of pictures and uses. Discussion was held regarding whether the City was mandated to take pictures since we just took them last year. Mr. Nabity stated this was not mandated. Motion by Gard, second by Carney to approve Resolution #2011-45. Upon roll call vote, all voted aye. Motion adopted. RESOLUTIONS: #2011-35 – Consideration of Requesting the Nebraska Liquor Control Commission to Require El Diamante Night Club, 1600 South Eddy Street to Complete a Long Renewal Form. This item was postponed from the February 8, 2011 City Council meeting. Police Captain Pete Kortum reported that due to numerous violations of El Diamante Night Club the Police Department recommended the City Council vote to ask the Nebraska Liquor Control Commission to require Club 69 to submit a new application for the renewal of the liquor license. Bill Francis, Attorney for El Diamante Night Club spoke in opposition and requested this be referred to a committee. Submitted into the record were copies of 3 letters, health certificate, and 4 pictures. Discussion was held regarding the area covered by the liquor license. Interim City Attorney Jason Eley clarified City Code Section 4-23. Motion by Gericke, second by Gard to approve Resolution #2011-35. Upon roll call vote, all voted aye. Motion adopted. Page 4, City Council Regular Meeting, February 22, 2011 #2011-46 – Consideration of Requesting the Nebraska Liquor Control Commission to Require Rafa’s Tacos, 911 West 2nd Street to Complete a Long Renewal Form. Interim City Administrator Mary Lou Brown reported that Rafa’s Tacos had failed to pay $6,400.46 for food and beverage occupation taxes. This was a violation of City Code which is sufficient to request a long form application for renewal. Bill Francis, Attorney spoke in opposition. Discussion was held regarding collecting delinquent food and beverage taxes. Captain Kortum stated through the investigation Rafa’s Taco was leasing this property to someone else and was not selling alcohol at this time. Lorri Rogers, Investigation with the State Patrol reviewed the history of Rafa’s Tacos liquor license. Motion by Gard, second by Ramsey to approve Resolution #2011-46. Upon roll call vote, Councilmembers Ramsey, Donaldson, and Gericke voted aye. Councilmembers Carney, Nickerson, Dugan, and Gard voted no. Motion failed. #2011-47 – Consideration of Approving Funding of Economic Development Request for Standard Iron, Inc. Interim City Administrator Mary Lou Brown reported that Grand Island Area Economic Development Corporation had submitted an application for LB840 funding in the amount of $225,000.00 to be used for job incentive and infrastructure by Standard Iron, Inc. for expanding it business in Grand Island. Mark Stelk, 3117 Brentwood Drive, Chairman of the Citizens’ Review Committee and Marlan Ferguson, EDC President spoke in support. Rich Demules representing Standard Iron was present and thanked the Council for the opportunity to have their business in Grand Island. Motion by Gericke, second by Donaldson to approve Resolution #2011-47. Upon roll call vote, all voted aye. Motion adopted. #2011-48 – Consideration of Dissolution of the Grand Island Area Solid Waste Agency. Interim Public Works Director Gray Mader reported that the Grand Island Area Solid Waste Agency was formed through an Interlocal Agreement with Hall County on August 4, 1992. The primary purpose of the agreement was to issue revenue bonds to acquire the existing Transfer Station and Landfill properties from Hall County. On December 7, 2010 the City Council approved the redemption of Solid Waste refunding bonds, Series 2004 thereby completing the purpose of the original agreement. Motion by Dugan, second by Ramsey to approve Resolution #2011-48. Upon roll call vote, all voted aye. PAYMENT OF CLAIMS: Motion by Dugan, second by Gard to approve the Claims for the period of February 9, 2011 through February 22, 2011, for a total amount of $3,141,645.24. Unanimously approved. Motion by Dugan, second by Gard to approve the Claims for the Period of February 9, 2011 through February 22, 2011 for the Veterans Athletic Field Complex for a total amount of $3,919.44. Unanimously approved. Page 5, City Council Regular Meeting, February 22, 2011 ADJOURNMENT: The meeting was adjourned at 9:46 p.m. RaNae Edwards City Clerk Item G2 Approving Minutes of March 1, 2011 City Council Study Session Tuesday, March 08, 2011 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 March 1, 2011 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 Council Chambers of City Hall, 100 East First Street, on March 1, 2011. Notice of the meeting was given in the Grand Island Independent on February 24, 2011. Mayor Jay Vavricek called the meeting to order at 6:00 p.m. The following Councilmember’s were present: Larry Carney, Bob Niemann, Kirk Ramsey, Peg Gilbert, Mitch Nickerson, Linna Dee Donaldson, Scott Dugan, Randy Gard, and John Gericke. Councilmember Chuck Haase was absent. The following City Officials were present: Interim City Administrator/Finance Director Mary Lou Brown, City Clerk RaNae Edwards, Interim City Attorney Jason Eley, Interim Public Works/Utilities Director Gary Mader and Public Works Engineer Terry Brown. INVOCATION was given by Councilmember Niemann followed by the PLEDGE OF ALLEGIANCE. MAYOR COMMUNICATION: Mayor Vavricek introduced Community Youth Council members Daniel Carlson and Brandon Pfeifer. Recognized were the Grand Island Senior High wrestling team and coach for the State Championship Team Title for Class A and individual medals won. Discussion Concerning Commission of Industrial Relations (CIR). Human Resources Director Brenda Sutherland reported that 74% of all regular status employees with the City were represented by a union. Seven unions represented these employees and those agreements would expire on September 30, 2011. Ms. Sutherland gave a history of the CIR. The CIR was created in 1947 originally for public utility employees. In 1969 it was expanded to all public employees. Any public employee whether represented by a union or not has the right to go to the CIR. The five member commission is appointed by the Governor with legislative approval and serve a six year term. Councilmember Scott Dugan was present at 6:30 p.m. CIR orders are “binding on all parties involved and shall be deemed to be the same force and effect as like orders entered by a district court” according to State Statue 48-819. The Commission handles three types of cases: 1) Wages – negotiations reach impasse; 2) Representation – petition to be recognized as bargained for by a labor group or union. A certification election and vote of the employees; and 3) Other – unfair labor practices. Wage Cases: · State Statue 48-818 describes the authority Page 2, City Council Study Session, March 1, 2011 · CIR can determine two parts in a wage case: Array of Comparable Employers and Employee Compensation (wages & benefits) · Overall compensation is required to be comparable to same/similar work or working conditions · Array is based on size and proximity – a town no more than twice the size, or no less than half the size Discussion was held on the array of cities used for comparables. Areas of comparability were: pay scale, personal leave & holidays, medical leave, bereavement leave, vacation, comp. time, overtime, Health Insurance, uniform allowance, and pension contribution. Explained was the difference between Defined Benefit Plan and Defined Contribution Plan. Defined Benefit Plan tells employee that after they retire there is a set amount. Defined Contribution Plan is a fund where employee and employer set money aside for employee’s retirement. Proposed legislation at the state level for 2011 was reviewed. Presented were nine different bills before the legislature. Robert Meyer, 648 East Memorial Drive spoke that both sides needed to negotiate in good faith and felt CIR should be a last resort. He stated CIR was a good thing as they looked at everything on both sides. Legislative and Lobbyist Discussion. Human Resources Director Brenda Sutherland reported that there were many legislative considerations before the Nebraska Legislature. Reviewed was the current practice the City used for Legislative Policy. Mentioned were the major issues facing the cities: State Aid to Cities, occupation tax revenue, CIR, Horseracing, Defined benefits retirement plan for firefighters, and Firefighter scheduling. Pros and Cons were presented concerning hiring a lobbyist. Robert Meyer, 648 East Memorial Drive spoke in opposition of hiring a lobbyist and stated part of the City Administrator’s job description was to represent the City in the Nebraska Legislature. Comments were made by Council regarding the importance of being involved with the State Senators. Pros and cons of hiring a lobbyist were mentioned. Mayor Vavricek commented on our current lack of legislative policy and the importance of having a lobbyist to represent the City of Grand Island. Mentioned were Request for Proposal’s that had been received for hiring a lobbyist. Council took a break at 8:06 p.m. and reconvened at 8:18 p.m. Discussion Concerning Closing the Elm Street/Union Pacific Railroad Crossing. Interim Public Works Director Gary Mader reported that staff had been working through the railroad quiet zones and found a cost saving of approximately $250,000. Introduced was Public Works Project Manager Scott Griepenstroh who gave a PowerPoint presentation on Phase I of the Quiet Zone Improvements. Page 3, City Council Study Session, March 1, 2011 Union Pacific Railroad (UPRR) requested that the quiet zone project at Walnut and Elm Streets upgrade the sidewalk crossing panels on the siding tracks that serve the Peavey Elevator. UPPR also reque sted that the project at Walnut and Elm Streets fill in the area between the existing street surfacing and the sidewalks with crossing panels. Costs (Phase I): · Elm Street Wayside Horns $228,800 · Walnut Street Wayside Horns $219,500 · Pine Street Supple mental Safety Measures $ 78,900 · Oak Street Supplemental Safety Measures $ 63,000 Total Costs for Phase I $590,200 Cost to Close Elm Street: · Close Elm (estimate) up to $20,000* · Walnut Street Wayside Horns $219,500 · Pine Street Supplemental Safety Measures $78,900 · Oak Street Supplemental Safety measurers $63,000 Total Costs for Phase I $381,400 ($208,800 savings) *Assumes $40,000 contributions from NDOR, UPRR and Gavilon (Peavey) Mentioned was that Elm Street had the least number of vehicles compared to Walnut Street, Pine Street, Oak Street, Broadwell Avenue, Lincoln Avenue and Eddy Street. Pros and cons of closing Elm Street were presented. Robert Meyer, 648 East Memorial Drive commented on the number of years the City had been working on the quiet zones. He spoke in opposition of closing Elm Street. Jim Spiehs, representing Gavilon Grain (Peavey) spoke in support of closing Elm Street. Billy Rapp, 1221 North Beal spoke in opposition of closing Elm Street. Discussion was held regarding a comprehensive traffic study of Elm, Walnut, Pine and Oak Streets and closing more crossings than just Elm Street. Comments were made by Council of the importance of moving forward with this project. Mr. Griepenstroh stated to get a grade separation at Broadwell Avenue the City would need to close Lincoln Street, but the Nebraska Department of Roads and UPRR would pay for 90% of the cost. It was mentioned that closing Elm Street would not benefit any other possible grade separation project. Police Captain Pete Kortum answered questions concerning accidents on Elm Street crossing. He stated there were none and closing Elm Street would not be an issue for the Police Department. Page 4, City Council Study Session, March 1, 2011 Community Redevelopment Authority (CRA) would contribute $140,000 to Phase I. with the City contributing $160,000. Interim City Administrator Mary Lou Brown commented on Phase II. The City was researching funding and moving forward with it. The use of the Transportation Committee was mentioned. ADJOURNMENT: The meeting was adjourned at 9:13 p.m. RaNae Edwards City Clerk Item G3 #2011-49 - Approving Final Plat and Subdivision Agreement Golden Age Third Subdivision Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Chad Nabity City of Grand Island City Council Council Agenda Memo From: Regional Planning Commission Meeting: March 8, 2011 Subject: Golden Age Third Subdivision – Final Plat Item #’s: G-3 Presenter(s): Chad Nabity AICP, Regional Planning Director Background This property is located west of White Ave., and north of 7th St., this final plat proposes to create 2 lots on a tract of land consisting of all of Block 4, Golden Age Sub., in the city of Grand Island in Hall County, Nebraska, said tract containing 2.648 acres. Discussion The revised final plat for Golden Age Third Subdivision was considered by the Regional Planning Commission at the March 2, 2011 meeting. A motion was made by Haskins and seconded by Connely to approve the plat as presented. A roll call vote was taken and the motion passed with 10 members present (Amick, Aguilar, O’Neill, Ruge, Hayes, Reynolds, Monter, Haskins, Connelly, Snodgrass) voting in favor no member present abstaining. 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 final plat as presented. Sample Motion Move to approve as recommended. Anderson Third Final Plat Summary Developer/Owner Hall County Housing Authority 911 Baumann Drive Grand Island NE 68803 To create 2 lots west of White Ave., and north of 7th St., in the City of Grand Island, in Hall County, Nebraska. Size: 2.648 acres Zoning: RO – Residential Office Zone Road Access: City Roads Water Public: City water is available Sewe r Public: City sewer is available Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-49 WHEREAS, Hall County Housing Authority, being the said owner of the land described hereon, has caused same to be surveyed, subdivided, platted and designated as “GOLDEN AGE THIRD SUBDIVISION”, to be laid out into 2 lots, a tract of land consisting of all of Block 4, Golden Age Subdivision, West of the 6th P.M., in the City of Grand Island, Hall County Nebraska, under the name of GOLDEN AGE THIRD SUBDIVISION, and has caused a plat thereof to be acknowledged by it; and WHEREAS, a copy of the plat of such subdivision has been presented to the Boards of Education of the various school districts in Grand Island, Hall County, Nebraska, as required by Section 19-923, R.R.S. 1943; and WHEREAS, a form of subdivision agreement has been agreed to between the owner of the property and the City of Grand Island. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the form of subdivision agreement hereinbefore described is hereby approved, and the Mayor is hereby authorized to execute such agreement on behalf of the City of Grand Island. BE IT FURTHER RESOLVED that the final plat of GOLDEN AGE THIRD SUBDIVISION, as made out, acknowledged, and certified, is hereby approved by the City Council of the City of Grand Island, Nebraska, and the Mayor is hereby authorized to execute the approval and acceptance of such plat by the City of Grand Island, Nebraska. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G4 #2011-50 - Approving Renewal of Golf Pro Contract with Don Kruse Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Steve Paustian City of Grand Island City Council Council Agenda Memo From: Steve Paustian, Parks and Recreation Director Meeting: March 8, 2011 Subject: Jackrabbit Run Golf Course – Golf Professional Contract Item #’s: G-4 Presenter(s): Steve Paustian, Parks and Recreation Director Background Jackrabbit Run Golf Course has been operated by the City since its inception in 1977. A PGA Golf Professional has been under contract since its opening as well. It is an industry standard to contract with a PGA Golf Professional as opposed to having that position filled by an employee. Commissions and incentives are a large part of a successful golf operation. As an employee, incentives and commissions are not allowed. The contractor also takes all risk associated with purchasing merchandise for resale at the Pro Shop and is not eligible for City benefits. The Golf Pro’s responsibilities include day to day operation of the pro shop and snack bar. Pro Shop responsibilities include collection of Green Fees, sale of season passes, golf cart rental, pro shop merchandise purchases and sales and many other services to provide for a well run operation. Mr. Donald Kruse, the current PGA Professional at Jackrabbit Run has worked at the Pro Shop since its opening. He has been under contract as the Head Professional since 2007. Discussion Mr. Kruse’s contract expires this year. Under his leadership, rounds of golf have increased and the facility has run in the black since his services were contracted. Many positive comments have been received by this office regarding the operation of the golf course under Mr. Kruse’s leadership. It is appropriate at this time to evaluate the existing contract and determine if changes are appropriate. It is staffs opinion that Mr. Kruse should remain as the Golf Professional at Jackrabbit Run. Several modifications to the existing contract have been negotiated by staff and Mr. Kruse. These modifications are being brought forward for your review. (See attached proposed contract.) 1. Change the contract period from four to five years. Contract language allows for either party to terminate the contract with proper notice. 2. Change the green fee percentage from 10% to 11%. This would result in an approximate increase in the contract value by $3,700.00 using last years number of rounds. 3. Extend the bonuses out for cart rental income as most current contract levels have been surpassed. 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 renew Mr. Kruse’s contract with the proposed modifications. Sample Motion Move to renew Mr. Kruse’s contract as modified, to remain the PGA Golf Professional at Jackrabbit Run. Approved as to Form ? _______________ March 4, 2011 ? City Attorney R E S O L U T I O N 2011-50 WHEREAS, on March 13, 2007, by Resolution 2007-59, the City of Grand Island entered into a contract with an independent contractor for a golf professional and for the management of the municipal golf course facility; and WHEREAS, said contract expired on December 31, 2011; and WHEREAS, on February 1, 2007, Requests for Qualifications were received, opened and reviewed for operation and management services for Jackrabbit Run Golf Course; and WHEREAS, Don E. Kruse of Grand Island, Nebraska, was awarded the contract for Jackrabbit Run Golf Course; and WHEREAS, Don E. Kruse, has been recommended to have his contract renewed in accordance with the terms of the new contract; and WHEREAS, a proposed contract has been reviewed and approved by the City Attorney's office. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the contract of Don E. Kruse of Grand Island, Nebraska, for the operation and management services for Jackrabbit Run Golf Course is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute an agreement for such services on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska on March 8, 2011. _____________________________________ Jay Vavricek, Mayor Attest: _________________________________ RaNae Edwards, City Clerk Item G5 #2011-51 - Approving Burlington Northern Santa Fe Crossing Permit for the 115 kV Transmission Line to St. Libory Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary Mader, Utilities Director Jason Eley, Interim City Attorney Meeting: March 8, 2011 Subject: Approving BNSF Transmission Line Crossing Permit Item #’s: G-5 Presenter(s): Gary Mader, Utilities Director Background On April 21, 2009, a presentation was made during a Council Study Session summarizing a 115 kV Transmission line route study for a new transmission line to be constructed northwest of the city. During the following City Council meeting on April 28, 2009, Council authorized the Utilities Department to proceed with the necessary engineering, permits and other services required to construct the new transmission line. All required easements have been purchased. Approval has been obtained from the Nebraska Power Review Board. The new line will cross the Burlington Northern Santa Fe (BNSF) railroad tracks just west of Highway 281 at the same location of an existing 115 kV transmission line crossing. Because the transmission line project will add a second circuit to the pole line, a new crossing permit is required. Discussion Earlier this year, survey data was obtained of the new route including the crossing of the BNSF tracks. The transmission line design was completed for the crossing in order to produce the detailed drawings required by the railroad. A permit application was submitted to BNSF and the attached crossing permit was returned. The execution of this permit requires a payment of $2,500 to cover all contract fees as well as a payment of $400 for Railroad Protection Liability Insurance during construction. 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 Council approve the License for Electric Supply Line Across or Along Railroad Property with BNSF. Sample Motion Move to approve the License for Electric Supply Line Across or Along Railroad Property with BNSF. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-51 WHEREAS, on April 28, 2009 City Council authorized the Utilities Department to proceed with the necessary engineering, permits and other services required to construct a new 115 kV transmission line northwest of the City; and WHEREAS, the new line will cross the Burlington Northern Santa Fe (BNSF) railroad tracks just west of Highway 281 at the same location as an existing 115 kV transmission line crossing; and WHEREAS, the new transmission line project will add a second circuit to the pole line, and a new crossing permit is required; and WHEREAS, a permit application was submitted to BNSF and a License for Electric Supply Line Across or Along Railway Property was returned for execution. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor is hereby authorized, on behalf of the City, to execute the License for Electric Supply Line Across or Along Railway Property between the City of Grand Island and Burlington Northern Santa Fe Railway Company. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011 _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G6 #2011-52 - Approving Agreement for Marketing Services for WEC2 Energy between the City of Grand Island and the Municipal Energy Agency of Nebraska (MEAN) Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Jason Eley, Interim City Attorney Meeting: March 8, 2011 Subject: Approving Agreement for Marketing Services for WEC2 Energy Item #’s: G-6 Presenter(s): Gary R. Mader, Utilities Director Background Grand Island is a participant in the Public Power Generating Agency (PPGA) which is a group of public power utilities organized under the Interlocal Agreement provisions of state law. The purpose of the PPGA is the construction and operation of a base load, coal fired power plant that will provide electric power to the project participants to meet future load growth. The plant is located in Hastings, being built on the same site as the current Hastings power plant, Whelan Energy Center (WEC) #1. The new unit is termed WEC#2. With the addition of this facility, there will be opportunity for increased wholesale sales of electric energy to the regional grid, when that generation resource is not needed to serve Grand Island’s native load. It is proposed that a marketing agreement be put in place to facilitate wholesale power sales. WEC#2 construction is nearly completed, and the generating unit is undergoing start-up and performance testing at this time. It is anticipated that commercial operatio n will be achieved within the next 90 days. Prior to the de-regulation of the nation’s electric industry in the late 1990’s, electric power sales were made primarily between adjacent electric utilities that had transmission interconnections. With deregulation, the goal of the federal government has been to expand the opportunities for wholesale sales among utilities, with the theory that lowest cost generators should be used before more expensive generation, and with the theory that these transactions could be on a national scale. To that end, the Federal Energy Regulatory Commission (FERC) had promulgated extensive new regulations to govern the interactions of utilities and the wholesale power markets, and has mandated the creation of bureaucracies to cont rol both the sales transactions and security of the nation’s electric grid. Power markets are now created, governed and administered by Regional Transmission Organizations (RTOs). The RTOs have in turn generated their own governing regulatory structure in compliance with the FERC regulatory requirements. Electric Utilities with regional interconnections have added full time staffs dedicated to the transactions associated with power purchase and sale and documenting compliance with the FERC/RTO regulatory requirements. The Southwest Power Pool (SPP) is the regional RTO for most of Nebraska. SPP governs electric transmission in most of Nebraska, Kansas and Oklahoma and in parts of five other states. Because of the increased regulatory requirements load, administrative requirements and additional staffing needed to participate in the RTO markets, Grand Island has accomplished wholesale power sales through NPPD and OPPD, who are SPP members and staffed and interconnected to operate in the SPP RTO. The addition of WEC#2 increases the potential for wholesale electric power sales. Discussion Prior to the development of RTOs, utilities purchased and sold power directly with each other in what is commonly termed bilateral sales. That is the type of sale that Grand Island has used historically. In the new world of RTOs, utilities are more commonly participating in the real-time regional power markets that are strictly price based. The Municipal Energy Agency of Nebraska (MEAN) is the wholesale marketing and electricity supply organization of the Nebraska Municipal Power Pool. MEAN provides power supply, transmission and related services to more than 60 communities, one public power district and one joint-action agency in four states; Nebraska, Colorado, Iowa, and Wyoming. MEAN is also a participant in the WEC#2 power plant project. As partners in the WEC#2 power plant, the Nebraska participants, MEAN, Nebraska City, Hastings Utilities and Grand Island are developing agreements with MEAN to jointly market the available excess power from WEC#2, with MEAN as the marketer. Aggregating the participant share into a larger block for sale offers some advantages in the power market. The marketing agreement establishes the parameters of the marketing effort. It is not an exclusive agreement, and Grand Island would retain its current arrangements with NPPD and OPPD. A copy of the proposed agreement is attached for Council review. Exhibit B of the agreement includes detailed pricing information that is considered confidential. Exhib it B is provided under separate cover and delivered to the Mayor and Council in their City Hall mail boxes. 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 Agreement for Marketing Services for WEC2 Energy with the Municipal Energy Agency of Nebraska. Sample Motion Move to approve the Agreement for Marketing Services for WEC2 Energy with the Municipal Energy Agency of Nebraska. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-52 WHEREAS, Grand Island is a participant in the Public Power Generating Agency (PPGA) which is a group of public power utilities organized under the Interlocal Agreement provisions of state law; and WHEREAS, the purpose of the PPGA is the construction and operation of a base load, coal fired power plant that will provide electric power to the project participants to meet future load growth; and WHEREAS, the plant is located in Hastings, being built on the same site as the current Hastings power plant, Whelan Energy Center (WEC) #1, the new unit is termed WEC #2; and WHEREAS, with the addition of this facility, there will be opportunity for increased wholesale sales of electric energy to the regional grid, when that generation resource is not needed to serve Grand Island’s native load; and WHEREAS, a marketing agreement is needed to facilitate wholesale power sales; and WHEREAS, the Municipal Energy Agency of Nebraska (MEAN) is the wholesale marketing and electricity supply organization of the Nebraska Municipal Power Pool, and a participant in the WEC #2 power plant project; and WHEREAS, the Nebraska Participants, MEAN, Nebraska City, Hastings Utilities and Grand Island have developed an agreement with MEAN to jointly market the available excess power from WEC #2 with MEAN as the marketer. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor is hereby authorized, on behalf of the City, to execute the Agreement for Marketing Services for WEC2 Energy between the City of Grand Island and the Municipal Energy Agency of Nebraska (MEAN). - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011 _______________________________________ Jay Vavricek, Mayor Attest: - 2 - _______________________________________ RaNae Edwards, City Clerk Item G7 #2011-53 - Approving Revised Laredo Ridge Power Sales Agreement Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Jason Eley, Interim City Attorney Meeting: March 8, 2011 Subject: Restated and Amended Power Sales Agreement for Laredo Ridge Wind Farm Item #’s: G-7 Presenter(s): Gary R. Mader, Utilities Director Background On December 7, 2010, Grand Island City Council approved the Laredo Ridge Wind Farm Power Sales Agreement (PSA) with Nebraska Public Power District (NPPD). This agreement allows Grand Island to receive 1.25% of the power generated at Laredo Ridge Wind Farm located near Petersburg, Nebraska. Other participants of this wind farm are Lincoln Electric Systems (LES), Municipal Energy Agency of Nebraska (MEAN) and NPPD. After Grand Island’s approval in December, changes were made to the PSA on behalf of LES and MEAN. It is NPPD’s desire to keep the PSAs with each utility identical. Attached for reference are both the redline of the amended document and the final Restated and Amended Power Sales Agreement. Discussion The Restated and Amended PSA was reviewed by City Utilities and the Legal Department and determined to have no significant differences from the original PSA. The changes include several clarifications and the inclusion of additional provisions regarding reimbursed of project development costs in the event of sales agreement termination. The changes provide better financial protection to the participants in the event of termination. 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 Restated and Amended Power Sales Agreement with NPPD for Grand Island’s share of the Laredo Ridge Wind Farm. Sample Motion Move to approve the Restated and Amended Power Sales Agreement with NPPD. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-53 WHEREAS, Grand Island is a participant in the Laredo Ridge Wind Farm Power Sales Agreement (PSA) with the Nebraska Public Power District (NPPD); and WHEREAS, the original Agreement was approved by Council at the December 7, 2010 Council meeting; and WHEREAS, the parties wish to restate and amend the original Power Sales Agreement; and WHEREAS, the City Utilities Department and the Legal Department have reviewed the Restated and Amended Power Sales Agreement for Laredo Ridge Wind Farm, and have determined the restated agreement includes appropriate modifications and clarifications. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor is hereby authorized, on behalf of the City, to execute the Restated and Amended Power Sales Agreement for Laredo Ridge Wind Farm between the City of Grand Island and Nebraska Public Power District. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011 _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G8 #2011-54 - Approving Bid Award - 115 kV Pole Inspection and Preservation Services Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary Mader, Utilities Director Jason Eley, Interim City Attorney Meeting: March 8, 2011 Subject: 115 kV Pole Inspection and Preservation Services Item #’s: G-8 Presenter(s): Gary Mader, Utilities Director Background The City of Grand Island electric system utilizes a 115 kV transmission loop that encompasses the entire city. This loop is the backbone of the electric system and ensures a reliable source of power to each of the electrical substations located around the city. The transmission lines use a variety of wood and steel poles. In order to most effectively reduce the chances of pole failure during wind and ice events, it is important to perform a thorough inspection and preservation treatment every ten to fifteen years. The last inspection was performed in 1996. Discussion A Request for Proposals was issued in February with a requested completion date of May 15, 2011. An advertisement was published in the Grand Island Independent and the bid package was sent to two known contractors. One proposal was received from Osmose Utilities Services, Inc. Osmose is an industry leader in the area of pole preservation and has extensive experience and references including the City of Grand Island. Osmose submitted a proposal with a “Not to Exceed” amount of $100,000. The engineer’s estimate for this project was $100,000. The specifications provided an inventory of the transmission line poles to be included in the inspections process. Because the complete extent of preservation treatment is not known until the inspections are conducted, the bidders were required to provide unit prices for various aspects of the contract, including such things as actual pole inspections, attachment inspections, treatment if needed for wood and steel poles etc., along with a “not to exceed” contract price. Actual payment to the contractor will be based on the unit prices for work as included in the specifications. 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 enter into an agreement with Osmose Utilities Services, Inc for 115 kV Pole Inspection and Preservation Services, in accordance with the February 2011 proposal. Sample Motion Move to accept the February 2011 Proposal for 115 kV Pole Inspection and Preservation Services from Osmose Utilities Services, Inc. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE: February 24, 2011 at 2:00 p.m. FOR: 115 kV Pole Inspection and Preservation Services DEPARTMENT: Utilities ESTIMATE: $100,000.00 FUND/ACCOUNT: 520 PUBLICATION DATE: February 7, 2011 NO. POTENTIAL BIDDERS: 2 SUMMARY Bidder: Osmose Utilities Services, Inc Tyrone, GA Bid Security: Liberty Mutual Insurance Co Exceptions: Noted Bid Price: $100,000.00 cc: Gary Mader, Utilities Director Bob Smith, Assist. Utilities Director Jason Eley, Purchasing Agent Pat Gericke, Utilities Admin. Assist. Mary Lou Brown, Interim City Administrator Travis Burdett, Assist. Utilities Director P1462 Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-54 WHEREAS, the City of Grand Island invited sealed bids for 115 kV Pole Inspection and Preservation Services, according to plans and specifications on file with the Utilities Department; and WHEREAS, on February 24, 2011, bids were received, opened and reviewed; and WHEREAS, Osmose Utilities Services, Inc., of Tyrone, Georgia, 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 not to exceed $100,000; and WHEREAS, the bid of Osmose Utilities Services, Inc., is the same as the estimate for the 115 kV Pole Inspection and Preservation Services. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Osmose Utilities Services, Inc., in an amount not to exceed $100,000 for 115 kV Pole Inspection and Preservation Services, is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G9 #2011-55 - Approving Bid Award for Hot-Mix Asphalt for 2011 Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader, Interim Public Works Director City of Grand Island City Council Council Agenda Memo From: Scott Johnson, Street Superintendent Meeting: March 8, 2011 Subject: Approving Bid Award for Hot-Mix Asphalt for 2011 Item #’s: G-9 Presenter(s): Gary R. Mader, Interim Public Works Director Background On February 11, 2011 the Streets Division of the Public Works Department advertised for bids for the purchase of hot-mix asphalt to be used in conjunction with in-house asphalt work throughout the calendar year 2011. The hot-mix asphalt is used by the City’s asphalt patching crew. Discussion Two (2) bids were received and opened on February 23, 2011. Each bid was submitted in compliance with the contract, plans, and specifications with no exceptions. A summary of the bids is shown below. Vendor Exceptions Unit Prices Gary Smith Construction Co., Inc. of Grand Island, NE None Type "A" - $44.85/ton Type "BC" - $42.85/ton Type "C" - $44.85/ton J.I.L. Asphalt Paving Co. of Grand Island, NE None Type "A" - $47.50/ton Type "BC" - $44.00/ton Type "C" - $47.20/ton Gary Smith Construction Co. provided the lowest bid. The type of asphalt used for patching each day from the plant will be the type they are making for that particular day. The average cost of the three types of asphalt bid is $44.18. The estimated amount of asphalt to be used is 1,600 tons which equates to an estimated total cost of $70,688.00 for the 2011 year. There are sufficient funds in Account No. 10033503.85547 to purchase this material. 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 Public Works Administration recommends that the Council approve awarding the purchase of the hot-mix asphalt to Gary Smith Construction Co. of Grand Island, Nebraska. Sample Motion Move to approve the award of the contract to Gary Smith Construction Co. of Grand Island, Nebraska. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE: February 23, 2011 at 2:15 p.m. FOR: Asphalt Hot Mix for 2011 DEPARTMENT: Public Works ESTIMATE: $55.00 per ton average for A, BC, and C estimated use of 1,600 tons for a season total of $88,000.00 FUND/ACCOUNT: 10033503-85547 PUBLICATION DATE: February 11, 2011 NO. POTENTIAL BIDDERS: 2 SUMMARY Bidder: Gary Smith Const. Co., Inc. J.I.L. Asphalt Paving Co. Grand Island, NE Grand Island, NE Exceptions: None None Bid Price: Type “A”: $44.85 per ton $47.50 per ton Type “BC”: $42.85 per ton $44.00 per ton Type “C”: $44.85 per ton $47.20 per ton cc: Gary Mader, Interim Public Works Director Catrina DeLosh, PW Admin. Assist. Jason Eley, Purchasing Agent Scott Johnson, Street Superintendent Mary Lou Brown, Interim City Administrator P1465 Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-55 WHEREAS, the City of Grand Island invited sealed bids for furnishing Hot-Mix Asphalt for 2011, according to plans and specifications on file with the Streets Division of the Public Works Department ; and WHEREAS, on February 23, 2011 bids were received, opened and reviewed; and WHEREAS, Gary Smith Construction Co. of Grand Island, Nebraska 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 $44.85 per ton for Type “A” asphaltic concrete, $42.85 per ton for Type “BC” asphaltic concrete and $44.85 per ton for Type “C” asphaltic concrete. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, the bid of Gary Smith Construction Co. of Grand Island, Nebraska in the amount of $44.85 per ton for Type “A” asphaltic concrete, $42.85 per ton for Type “BC” asphaltic concrete and $44.85 per ton for Type “C” asphaltic concrete is hereby approved as the lowest responsible bid. BE IT FURTHER RESOLVED, that a contract for such project between the City and such contractor be entered into, and the Mayor is hereby authorized and directed to execute such contract on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. ____________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G10 #2011-56 - Approving Bid Award for Concrete Ready-Mix for 2011 Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader, Interim Public Works Director City of Grand Island City Council Council Agenda Memo From: Scott Johnson, Street Superintendent Meeting: March 8, 2011 Subject: Approving Bid Award for Concrete Ready-Mix for 2011 Item #’s: G-10 Presenter(s): Gary R. Mader, Interim Public Works Director Background On February 11, 2011 the Streets Division of the Public Works Department advertised for bids for the purchase of portland cement concrete ready-mix to be used in conjunction with in-house concrete repairs throughout the calendar year 2011. The concrete ready mix is used by the City’s concrete patching crew. Discussion Two (2) bids were received and opened on February 23, 2011. Each bid was submitted in compliance with the contract and specifications with no exceptions. A summary of the bids is shown below. Vendor Exceptions Unit Prices Gerhold Concrete Co., Inc. of Grand Island, NE None $74.00 per cubic yard Consolidated Concrete of Grand Island, NE None $75.00 per cubic yard The estimated quantity of portland cement concrete ready-mix required for 2011 is 1,500 cubic yards; for an estimated total cost of $111,000.00 for the 2011 year. There are sufficient funds in Account No. 10033503-85547 to purchase this material. 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 Public Works Administration recommends that the Council approve awarding the contract for the purchase of the Portland cement concrete ready-mix to Gerhold Concrete Co., Inc. of Grand Island, Nebraska in the amount of $74.00 per cubic yard. Sample Motion Move to approve the award of the contract to Gerhold Concrete Co., Inc. of Grand Island, Nebraska. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE: February 23, 2011 at 2:00 p.m. FOR: Concrete Ready Mix for 2011 DEPARTMENT: Public Works ESTIMATE: $80.00 per cubic yard estimated use of 1,500 cubic yards for a Season total of $120,000.00 FUND/ACCOUNT: 10033503-85547 PUBLICATION DATE: February 11, 2011 NO. POTENTIAL BIDDERS: 2 SUMMARY Bidder: Consolidated Concrete Gerhold Concrete Co., Inc. Grand Island, NE Grand Island, NE Exceptions: None None Bid Price: $75.00 per cubic yard $74.00 per cubic yard cc: Gary Mader, Interim Public Works Director Catrina DeLosh, PW Admin. Assist. Jason Eley, Purchasing Agent Scott Johnson, Street Superintendent Mary Lou Brown, Interim City Administrator P1464 Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-56 WHEREAS, the City of Grand Island invited sealed bids for furnishing Portland Cement Concrete Ready-Mix for 2011 for the Streets Division of the Public Works Department, according to specifications on file with the Streets Division of the Public Works Department; and WHEREAS, on February 23, 2011, bids were received, opened and reviewed; and WHEREAS, Gerhold Concrete Co., Inc. of Grand Island, Nebraska, submitted a bid in accordance with the terms of the advertisement of bids and specifications and all other statutory requirements contained therein, such bid being in the amount of $74.00 per cub ic yard; and WHEREAS, the total cost based on the estimated usage of 1,500 cubic yards for the 2011 construction season at the above-identified price, is estimated at $111,000.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Gerhold Concrete Co., Inc. of Grand Island, Nebraska, in the amount of $74.00 per cubic yard for Portland cement concrete ready-mix is hereby approved as the lowest responsible bid. BE IT FURTHER RESOLVED, that the contract for such project between the City and such contractor be entered into, and the Mayor is hereby authorized and directed to execute such contract on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G11 #2011-57 - Approving Union Pacific Railroad Pipeline Crossing Agreement for Lift Station #7 Disaster Recovery Project Area (Grant Street to Arthur Street, between Oklahoma Avenue and Phoenix Avenue) Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader, Interim Public Works Director City of Grand Island City Council Council Agenda Memo From: Terry Brown, Manager of Engineering Services/ Interim City Engineer Meeting: March 8, 2011 Subject: Approving Union Pacific Railroad Pipeline Crossing Agreement for Lift Station #7 Disaster Recovery Project Area (Grant Street to Arthur Street, between Oklahoma Avenue and Phoenix Avenue) Item #’s: G-11 Presenter(s): Gary R. Mader, Interim Public Works Director Background The Lift Station #7 Disaster Recovery project is for work to update the pumping capacity of that lift station, located on Grant Street near Oklahoma Avenue, and to repair or replace as necessary broken and leaking sewer mains within the Lift Station #7 collection area. Lift Station #7 serves the general area from John Street to Stolley Park Road and from Ada Street to Harrison Street. On February 8, 2011 City Council approved the temporary construction easements needed for this project. The next step is to enter into an agreement with the Union Pacific Railroad (UPRR), for a sewer main crossing of the spur track to the PGS Power Plant. Discussion The UPRR requires the City to enter into a “Pipeline Crossing Agreement” for the installation of one 8 inch encased pipeline for transporting and conveying raw sewage only through their right-of-way. The City is also required to pay the UPRR a one-time License Fee of $1,500.00, upon the execution of this agreement. Without this agreement the City does not have legal access through the UPRR property and would not be able to complete the improvements associated with this project. 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 allowing the City to enter into the agreement with the Union Pacific Railroad to allow the Lift Station #7 improvements to progress. Sample Motion Move to approve a resolution allowing the City to enter into an agreement with the Union Pacific, allowing access through the railroad’s right-of-way. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-57 WHEREAS, in connection with the Lift Station #7 improvements a Pipeline Crossing Agreement is required by the Union Pacific Railroad in order for the City of Grand Island to cross their right-of-way with one 8 inch encased pipeline for transporting and conveying raw sewage only; and WHEREAS, the agreement also requires, upon execution, a one-time License Fee of $1,500.00; and WHEREAS, the agreement has been reviewed and approved by the City’s Legal Department. 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 enter into the Pipeline Crossing Agreement with the Union Pacific Railroad in connection with the Lift Station #7 improvements. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G12 #2011-58 - Approving Agreement for City Hall Copier Maintenance and Supplies with Capital Business Systems Inc. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Robyn Splattstoesser City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Meeting: March 8, 2011 Subject: Approving Agreement for City Hall Copier Maintenance & Supplies with Capital Business Systems Inc./Modern Methods Item #’s: G-12 Presenter(s): Mary Lou Brown, Finance Director Background On February 27, 2007, Council approved a 36 month Lease Agreement with Modern Methods for five copier/printer/scanners in City Hall for $48,792.00 with a $1 buyout at the end of the term. In addition, the City would pay a per copy/print cost which amounted to approximately $10,000 per year. On March 9, 2010, the City Council opted to retain the existing copiers and purchased a one year Maintenance Agreement with a per copy/print cost amounting to $7,668.80 which represents billings for 10 months. Discussion The Maintenance Agreement for the copier/printer/scanner now needs to be extended for an additional twelve months. Considering the current usage counts and lifetime expectancy of each copier, it is appropriate to extend the Maintenance Agreement for the current machines. The Maintenance Agreement is with Capital Business Systems Inc./Modern Methods. The Agreement states that the cost per copy/print will be $.008904 for model LANIER LD345SP; the cost per copy/print was $.0084 in the previous agreement. The cost for model LANIER LD160C per black and white copy/print is $.006572 and $.0583 for color copy/print. The previous agreement costs for this model were $.0062 for black and white and $.055 for color. The Maintenance Agreement covers all parts, labor, and supplies (excluding paper and staples). Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the one year Maintenance Agreement with Capital Business Systems Inc./Modern Methods. 2. Take no action on the issue. Recommendation City Administration recommends that the Council approve the one year Maintenance Agreement with Capital Business Systems Inc./Modern Methods for cost per copy/print of $.008904 for model LANIER LD345SP and the cost per black and white copy/print of $.006572 and the cost per color copy/print of $.0583 for model LANIER LD160C. Sample Motion Move to approve the one year Maintenance Agreement with Capital Business Systems Inc./Modern Methods. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-58 WHEREAS, on February 27, 2007, by Resolution 2007-50, the City of Grand Island entered into a three year lease for the use of copy machines within City Hall; and WHEREAS, on March 9, 2010 by Resolution 2010-70 the City of Grand Island opted to buy the copiers for $1.00 and entered into a one year Maintenance agreement for the 5 copy machines agreeing to pay per copy/print costs at a cost per copy of $.0084 for model LANIER LD345. The cost for model LANIER LD160C agreed upon per black and white copy/print is $.0062 and color copy/print is $.055 for 12 months. The Maintenance Agreement covered all parts, labor, and supplies (excluding paper and staples); and WHEREAS, it has been deemed appropriate to renew a one year Maintenance Agreement that states that we agree to pay per copy/print costs at a cost per copy of $.008904 for model LANIER LD345. The cost for model LANIER LD160C agreed upon per black and white copy/print is $.006572 and per color copy/print is $.0583 for 12 months. The Maintenance Agreement covers all parts, labor, and supplies (excluding paper and staples); and WHEREAS, the proposed agreements have been reviewed and approved by the City Attorney’s office; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the one year Maintenance Agreement as stated above by and between the City and Capital Business Systems, Inc./Modern Methods, is hereby approved. BE IT FURTHER RESOLVED, that the mayor is hereby authorized and directed to execute such agreements on behalf of the City Of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, on March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G13 #2011-59 - Approving Recommendation of Vendor for Expert Service Provider for Information Technology Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Robyn Splattstoesser City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Meeting: March 8, 2011 Subject: Approving Contract for Information Technology Network Administration Support Item #’s: G-13 Presenter(s): Mary Lou Brown, Finance Director Background As part of the 2011 budget process the Information Technology division of Finance eliminated one full time position to provide funding for the outsourcing of network administration support. Discussion Council approved the increase of $58,000 for Consulting Services to facilitate Network Administration Support and maintenance of the City’s network in the 2011 budget. The Information Technology division went out for proposals and received bids from (2) two vendors. Duey’s Computer Service, Inc of Lincoln, received the highest total score based on the criteria set forth in the RFP. The attached contract details the services and costs that Duey’s Computer Service will charge. The second proposal received scored lower on the established criteria and their cost was almost triple the budgeted amount. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the 36 month Network Administration Support agreement with Duey’s Computer Service, Inc. 2. Postpone the request. 3. Take no action. Recommendation City Administration recommends that the Council approve the 36 month agreement with Duey’s Computer Service, Inc. Sample Motion Move to approve the 36 month Network Administration Support Agreement with Duey’s Computer Service, Inc. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR EXPERT SERVICE PROVIDER (ESP) FOR INFORMATION TECHNOLOGY DEPARTMENT RFP DUE DATE: February 15, 2011 at 4:00 p.m. DEPARTMENT: Finance PUBLICATION DATE: January 27, 2011 NO. POTENTIAL BIDDERS: 2 SUMMARY OF PROPOSALS RECEIVED Duey’s Computer Service, Inc NetStandard Lincoln, NE Kansas City, Kansas cc: Mary Lou Brown, Finance Director Jason Eley, Purchasing Agent Robyn Splattstoesser, IT Manager P1456 REQUEST FOR PROPOSALS INFORMATION TECHNOLOGY NETWORK ADMINISTRATION SUPPORT FOR THE CITY OF GRAND ISLAND, NEBRASKA I. GENERAL The City of Grand Island is pleased to release this Request for Proposal for the outsourcing of a portion of the City's information technology and associated support services. The City seeks an Expert Service Provider (ESP) with strong capabilities and a minimum of 10 years experience in outsourcing, and partnering with large, complex, public-sector organizations. The partnership formed as a result of this process will be founded upon open communications and the City expects full answers to Proposal questions and encourages its ESP candidates to propose alternatives that are in the best mutual interest of both parties. The selected ESP, working in partnership with the City, will provide the resources and expertise necessary to develop and promote the City's information technology systems. The City of Grand Island, located in Grand Island, Nebraska, is soliciting proposals from service providers qualified to assist with the administration and overall strategy of an in-house server/network system. The IT services required can be summarized into three categories, 1) Network Administration & Troubleshooting, 2) Server Administration and 3) Hardware Purchase Consultation. The period of the contract will be 36 consecutive months commencing on the date of award. Servers The City of Grand Island is currently connected to the internet through a bonded DSL. A server farm consisting of more than 20 se rvers currently exists in the Data Center at City Hall. Also inclusive are several remote site networks. Internet connection, security, email and file storage are provided by the City of Grand Island. Workstations The City of Grand Island utilizes Intel based workstations (approximately 500) using Windows XP/7, and Microsoft Office 2003/2007 as well as some thin client applications. Peripherals The City of Grand Island utilizes network peripherals such as Extreme, 3com, and Netgear to support infrastructure covering the Ethernet environment, wireless access, fiber optic connections, and support for remote access. II. SCOPE OF WORK The selected ESP will be expected to provide innovative and responsive support to meet the evolving needs of the City of Grand Island. In addition to current issues that may arise, the ESP will also help develop long term goals in the form of a 5 and 10 year plan. Services required of the selected ESP may include, but not be limited to, the following: 1.Network Administration & Troubleshooting •Identify and correct problems with the network as they arise •Configure firewall for maximum security and flexibility •Frequent monitoring of network status 2.Server Administration •Server maintenance including MS Exchange Server •SPAM control management •Disaster recovery solution identified and implemented •Keep servers up to date and secured •Ensure backups are being performed correctly •Assist staff with various computer related questions to ensure smooth day-to-day operation of the facility •Frequently review event logs and system alerts. 3.Hardware/Software Purchase Consultation •Assist in hardware purchase decisions and assist in educating the City Council •Provide software recommendations based on industry trends. III. PROPOSAL CONTENT To facilitate evaluation, proposals should address and be organized in the order of the outline given below and include the following information: Background Information: Provide general information regarding the organization and the structure of your firm including, but not limited to: 1.Years in business as an ESP 2.Number of MCSE and A+ Certified staff at the Firm 3.Provide profiles for all personnel who would perform hands on maintenance and support including years of experience, experience with network administration, and areas of expertise. 4.Describe knowledge of, and experience supporting the various software applications noted in the “Technical requirement” section of this RFP. 5.Describe experience, providing examples, of IT project management and implementation, such as hardware and software deployment or upgrades. 6.Describe processes that would be put in place to monitor and rectify network performance issues, latency, capacity planning, etc. 7.List current recommendations for changes/upgrades/automation of network maintenance, etc. for The City (future Planning) 8.Describe experience working with Geographic Information Systems software. 9.Describe experience working with IBM AS400 I Series system. 10.Describe experience working with Laserfiche document archival system. Internet connectivity and Email account access are mission critical applications. Significant loss in productivity would be experienced by any outages to these services. 1.What is your standard response time to be on site for “emergency calls” to restore outages of mission critical services? During regular business hours (8:00 – 5:00 Monday – Friday)? During off hours? 2.What is your standard response time for regular, ongoing maintenance issues and day-to- day work orders? 3.Is your standard procedure to provide one primary account support contact or send different technicians depending on availability and technical need? 4.What will you do to ensure all technical staff is familiar with The City environment, business needs of users, mission critical applications, and protocols to be followed when responding to a service call? 5.What training of end users do you provide when new technology is implemented? 6.Describe your experience with, and willingness to set up, automated notification protocols when outages occur to connectivity, servers, etc 7.Please provide 3 references of existing customers that we may contact 8.Please confirm coverage of your Commercial General Liability Insurance coverage, including limit of liability per occurrence. 9.What is your experience in customer relationships with publicly funded municipality organizations? 10.What rates do you charge for labor? Provide details and breakdown. 11.What are your regular terms for payment of invoices? IV. EVALUATION CRITERIA ESPs’ submittals will be evaluated based on the criteria listed in this section. Evaluation of responses to this RFP will be based only on the information provided in the submittal package, and if applicable, interviews and reference responses. The City reserves the right to request additional information or documentation from the firm regarding its submittal documents, personnel, financial viability or other items in order to complete the selection process. The evaluation criteria are as follows: Responsiveness of Firm 15% Qualifications 10% Depth of Technical Knowledge 25% Fee Structure 25% Experience 25% Following the evaluation, the following steps may be taken: 1.Contract negotiations with one or more proposers will commence; or 2.(a) Request additional information from the proposer whose responses appear to have the greatest likelihood of success; and/or (b) Invite one or more proposers whose responses appear to have the greatest likelihood of success to attend an interview/presentation to discuss their proposal; and then (c) Begin contract negotiations with one or more proposers. The City of Grand Island reserves the right to conduct reference checks, at either or both of the following two points of the evaluation process: 1.After proposals are evaluated, for the proposer with the highest-scoring proposal; 2.In the event that interviews are held, for the proposer with the highest-scoring proposal and interview. In the event that information obtained from the reference checks reveals concerns about the proposer’s past performance and their ability to successfully perform the contract to be executed based on this RFP, the City of Grand Island may, at its sole discretion, determine that the proposer is not a responsible proposer and may select the next highest-ranked proposer whose reference checks validate the ability of the proposer to successfully perform the contract to be executed based on this RFP. V. SUBMITALS Proposals must be delivered to the Grand Island City Clerk’s Office no later than 4:00 P.M. on the 15th day of February 2011. Please provide three (3) copies of your proposal in a sealed envelope clearly marked on the exterior as containing “Proposal for Information Technology Network Administration Support”. Submit proposals to RaNae Edwards, City Clerk, City of Grand Island, 100 East First Street, Grand Island, Nebraska 68801. Interested persons should submit their questions to the Grand Island Information Technology Manager at 308-385-5444 ext. 188. COMPUTER/NETWORK MAINTENANCE AGREEMENT This Computer/Network Maintenance Agreement is entered into by and between Duey’s Computer Service, Inc. and The City of Grand Island, a city government located in Grand Island, Nebraska this _____ day of ____________________, 2011. In consideration of the promises, covenants, obligations and other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby mutually agree as follows, to wit: 1. Term. The term of this Agreement shall begin the 1st day of April, 2011 and end on the last day of March, 2014. After the last day of March, 2014 this agreement shall continue on a month to month basis until cancelled by either party in writing. 2. Scope of the Service Provided. Duey’s Computer Service, Inc. (hereinafter “Duey’s”) shall be the primary provider of computer and network support for The City of Grand Island (hereafter “The City”), during the term of this Agreement. Duey’s will provide The City 35 hours of standard service per month at the rate set forth hereinafter. The 35 hours per month must be used in the designated month or used in the month immediately following the designated month providing this contract is still in effect. If the hours in the 35 hour provision are not used in the designated month or immediately following month the hours shall be forfeited and shall lapse. Duey’s will provide two monthly onsite visits without travel charges. Additional onsite visits during any given month will incur travel charges, at the rate set forth below. The City hereby agrees that no other computer service provider, or equipment vendor of any kind shall install, upgrade, adjust, or otherwise alter the configuration of the network system, or any component thereof, during the term of this Agreement without first contacting Duey’s to obtain the necessary information with which to make the installation, upgrade, adjustment or alteration, so as to avoid jeopardizing the network system. Duey’s will not charge for e-mail or telephone calls with a vendor called by The City under the foregoing circumstances, if said e-mails or phone calls require less than 15 minutes of Duey’s time. If additional assistance is required by the service provider, or vendor, The City hereby agrees to pay Duey’s the “Priority Rate” for such services, as set forth below. Duey’s shall also provide telephone and e-mail support for The City at The City’s request. Any computer related issue not resulting in a service call, and brought to Duey’s attention shall be considered telephone or e-mail support. Duey’s shall provide telephone or e- mail support out of the monthly pool of hours as part of the monthly fee set forth hereinafter. Duey’s shall further provide proactive network monitoring from its home location, Lincoln, Nebraska. The City shall promptly notify Duey’s of any computer related problems as they occur, and shall allow Duey’s access to its computer systems, and all components thereof, in order to document and resolve the network and computer problems. Any alarms generated by the monitoring system implemented by Duey’s shall be considered an incident, as set forth in the preceding paragraph. 2 3. Service Rates. A. Contract Rates. In exchange for the services to be provided by Duey’s to The City, The City hereby agrees that it shall pay to Duey’s the sum of $3125 per month, for each month during the term hereof. Duey’s shall provide an invoice to The City on a monthly basis, setting forth this charge, together with any additional charges for time spent by Duey’s in servicing the needs of The City under the terms and provisions hereof. B. Standard Rate. For a standard service call, Duey’s will respond within 1 to 3 business days. Included within this Computer/Network Maintenance Agreement is 35 hours of standard service per month, for the charges set forth in the preceding paragraph. In the event that 35 hours have not been used by The City in any calendar month or immediately following calendar month as outlined above in section 2, said time shall be forfeited, and shall lapse. Additional time for standard service calls will be billed at $95 per hour for the first hour, and $23.75 for each 15 minute segment or any portion thereof, thereafter. As stated previously, Duey’s will waive travel charges for two visits per month. Additional on-site visits during any given month will incur a charge of $142.50 per trip. C. Priority Rate. For all priority service calls, Duey’s will make itself available within one hour of being contacted by The City for said service (plus any additional travel time). Priority service calls shall be billed at $180.00 per hour for the first hour, and $45 for each 15 minute segment, or any portion thereof, thereafter. All service requests shall be considered standard service calls unless The City specifically requests a priority service call. 4. Parts and Equipment. If parts or other equipment are required to repair or upgrade existing equipment, Duey’s shall contact The City for authorization before any such parts or other equipment are purchased or installed. 5. Indemnification and Hold Harmless. Duey’s hereby agrees that it shall handle all computers, equipment, and data owned by The City with utmost care. However, Duey’s cannot and shall not be liable for any hardware failures, software failures, or data loss as a result of the services provided hereunder. The City hereby agrees to indemnify and hold Duey’s harmless from and against any and all claims, damages, losses or expenses arising out of or related to acts, negligence, or failures of its employees, or agents, with respect to the computers, network equipment and software being serviced by Duey’s hereunder. 6. Invoice and Payment. Duey’s shall submit monthly invoices to The City, containing the monthly charge of $3125, and an itemization of any charges for additional services provided, pursuant to the rates set forth herein above, and any additional costs which have been incurred for parts and equipment, in each month during the term of their Agreement. The monthly 3 maintenance fee shall be prepaid each month. The City shall pay the full amount of each such invoice within 30 days of the date of its receipt. Any balances not paid within 30 days of receipt by The City shall bear interest at the rate of 1.5% per month, beginning 30 days after the date of the unpaid invoice. Any and all costs of collection, including postage, attorneys fees, and costs shall be paid by The City. 7. Governing Law. This Agreement shall be construed, governed, and interpreted according to the laws of the State of Nebraska. 8. Time of the Essence. Time is of the essence of this Agreement, and the parties hereby agree that any and all obligations as set forth herein shall be performed in a reasonably timely manner. 9. Severance. If any paragraph, section, or portion of this Agreement shall be unenforceable under the laws of the State of Nebraska, for any reason, the remaining portions of the Agreement which are otherwise enforceable shall remain in full force and effect. 10. Assignability. Neither this Agreement nor any of the parties’ rights hereunder shall be assignable by any party hereto, without the prior written consent of the other party. 11. Entire Agreement. This Agreement, shall constitute the final written expression of all of the agreements between the parties, and is a complete and exclusive statement of those terms. It shall supersede all understandings and negotiations concerning the matters specified herein. Any representations, promises, warranties or statements made by either party that differ in any way from the terms of this written Agreement shall be given no force or effect. The parties specifically represent, each to the other, that there are no additional or supplemental agreements between them related in any way to the matters set forth herein unless specifically included or referred to herein. No addition to or modification of any provision of this Agreement shall be binding upon any party unless made in writing, and signed by all parties hereto. 4 12. Headings. Headings of the articles and sections of this Agreement are for the convenience of the parties only, and shall be given no substantive or interpretative effect whatsoever. IN WITNESS WHEREOF, the parties have executed this Computer/Network Maintenance Agreement on the day and year herein above first set forth. DUEY’S COMPUTER SERVICE, INC. Date: _________________ By: ____________________________________ Andrew Duey, President THE CITY OF GRAND ISLAND. Date: _________________ By: ____________________________________ Authorized Representative Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-59 WHEREAS, the Information Technology Division of Finance included funds of $58,000 in the 2011 budget for the outsourcing of Network Administration Support; and WHEREAS, on February 15, 2011 (2) two proposals were received, reviewed and evaluated in accordance with established criteria in the RFP; and WHEREAS, Duey’s Computer Service, Inc of Lincoln, Nebraska submitted a proposal for established services for a period of 36 consecutive months; and WHEREAS, the Contract would cover the term of April 1, 2011 through March 31, 2014; and WHEREAS, the proposed agreement has been reviewed and approved by the City Attorney’s office NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Information Technology Network Administration Support and Maintenance Agreement by and between the City and Duey’s Computer Service, Inc, is hereby approved. BE IT FURTHER RESOLVED, that the mayor is hereby authorized and directed to execute such agreements on behalf of the City Of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G14 #2011-60 - Approving Redemption of Series 2006 Public Safety Tax Anticipation Bonds This item relates to the aforementioned Ordinance item F-2. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council R E S O L U T I O N 2011-60 BE IT RESOLVED by the Mayor and City Council of the City of Grand Island, Nebraska: Section 1. The following bonds of the City of Grand Island, Nebraska, in accordance with their option provisions are hereby called for payment on August 29, 2011, after which date interest on the bonds will cease: Public Safety Tax Anticipation Bonds, Series 2006, date of original issue - August 29, 2006, in the principal amount of Five Million Seven Hundred Thirty-five Thousand Dollars ($5,735,000), numbered as shown on the books of the Paying Agent and Registrar, and becoming due and bearing interest as follows: Principal Amount Maturity Date Interest Rate CUSIP No. $ 620,000 September 1, 2011 3.95% 385654 AE 8 645,000 September 1, 2012 4.00 385654 AF 5 670,000 September 1, 2013 4.00 385654 AG 3 700,000 September 1, 2014 4.10 385654 AH 1 725,000 September 1, 2015 4.15 385654 AJ 7 755,000 September 1, 2016 4.20 385654 AK 4 790,000 September 1, 2017 4.30 385654 AL 2 830,000 September 1, 2018 4.35 385654 AM 0 Said bonds are hereinafter referred to as the “Refunded Bonds.” The Refunded Bonds are subject to redemption at any time on or after August 29, 2011, at par and accrued interest, and said interest is payable semiannually. Said Refunded Bonds were issued for the purpose of providing funds for the construction and equipping of a law enforcement center and miscellaneous costs associated therewith. Section 2. Said bonds are to be paid at the principal corporate trust office of Cornerstone Bank, York, Nebraska (formerly Cornerstone Bank, National Association, York, Nebraska), as paying agent and registrar (the “Paying Agent and Registrar”). Section 3. A true copy of this resolution shall be filed immediately with the Paying Agent and Registrar, and said Paying Agent and Registrar is hereby irrevocably instructed to mail notice to each registered owner of said bonds not less than thirty days prior to the date fixed for redemption, all in accordance with the ordinance authorizing said Refunded Bonds. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. ____________________________________ Jay Vavricek, Mayor Attest: _________________________________ RaNae Edwards, City Clerk Item G15 #2011-61 - Approving Investment Advisory Agreement with Smith Hayes Advisers, Inc. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Meeting: March 8, 2011 Subject: Approval of Investment Advisory Agreement with Smith Hayes Advisers Inc. Item #’s: G-15 Presenter(s): Mary Lou Brown, Finance Director Background Mr. Rod Cerny and Smith Hayes Advisers, Inc. have been the co-managers for the backstop funds to the pension obligations that are administered by Wells Fargo. Mr. Cerny, the day-to-day investment manager, was formerly with McCarthy Group Advisors (MGA). MGA was acquired by Westwood Holdings Group Inc. (Westwood) of Dallas, Texas last fall. That transition was approved by Council at the October 12, 2010 Council meeting. Discussion Mr. Cerny has recently moved from Westwood to Smith Hayes Advisers, Inc. and will be providing the same day-to-day investment manage ment functions as in the past. As a result of this change, it is necessary that the investment funds be moved from Smith Hayes Financial Services to Smith Hayes Advisers, Inc. The attached Investment Advisory Agreement enables this change to occur. The attached Investment Advisory Agreement directs Smith Hayes Advisers, Inc. to oversee the management, investment, reinvestment, buying, selling, brokerage and all other aspects of the assets contained in the portfolio. In addition, Smith Hayes Advisers, Inc. will have the right and power to make all decisions regarding the nature, amount and timing of purchase and sell decisions and will keep the City apprised of account information and provide general investment advice. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve the Investment Advisory Agreement with Smith Hayes Advisers Inc. 2. Postpone the issue to a future meeting. 3. Take no action. Recommendation City Administration recommends that the Council approve the Investment Advisory Agreement with Smith Hayes Advisers, Inc. Sample Motion Move to approve the Investment Advisory Agreement with Smith Hayes Advisers, Inc. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-61 WHEREAS, Mr. Rod Cerny and Smith Hayes Advisers, Inc. currently serve as the City of Grand Island’s co-investment managers for the backstop funds to the pension obligations that are administered by Wells Fargo; and WHEREAS, Mr. Cerny was formerly with McCarthy Group Advisors and they were acquired by Westwood Holding Group, Inc. last fall; and WHEREAS, Mr. Cerny is joining Smith Hayes Advisers, Inc. and will be providing the same day-to-day investment management functions as in the past; and WHEREAS, it is necessary to transfer the investment funds from Smith Hayes Financial Services to Smith Hayes Advisers, Inc.; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor is hereby authorized and directed to sign on behalf of the City of Grand Island, the Investment Advisory Agreement that directs Smith Hayes Advisers, Inc. to oversee the management, investment, reinvestment, buying, selling, brokerage and all other aspects of the assets contained in the portfolio. In addition, Smith Hayes Advisers, Inc. will have the right and power to make all decisions regarding the nature, amount and timing of purchase and sell decisions and will keep the City apprised of account information and provide general investment advice. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute such Agreement with Smith Hayes Advisers, Inc. on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item I1 #2011-62 - Consideration of Approving Appointment of Public Works Director John Collins Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mayor Vavricek City of Grand Island City Council Council Agenda Memo From: Mayor Jay Vavricek Meeting: March 8, 2011 Subject: Consideration of Appointment of Public Works Director Item #’s: I-1 Presenter(s): Mayor Jay Vavricek Background The Public Works Director position became vacant with the resignation of Steve Riehle in January 2011. An interim appointment was made to ensure continuity in the department until a replacement could be found. The City’s Human Resources Department conducted a national recruitment. Sixteen applications were received. Discussion I am pleased to present John Collins as my choice for appointment to the Public Works Director position. Collins’ public works experience includes 25 years in various statewide engineering and management positions with the State of Louisiana Department of Transportation. He is a registered Professional Engineer in the State of Nebraska as well as the State of Louisiana. He obtained a Bachelor of Science degree in Mechanical Engineering from Louisiana State University. Collins managed a staff of 89 employees and an operating budget of $40 million. Collins and his staff worked with the rehabilitation efforts during the aftermath of hurricanes Katrina and Rita. In addition he has in-depth experience with the State of Louisiana Legislative budget process. Pending City Council approval Collins’ employment will commence on March 14. His starting salary will be at step four of the Public Works Director pay scale which is $86,286.99 annually. As Public Works Director he will supervise the Engineering, Solid Waste, Streets, Fleet Services, and Wastewater Treatment divisions. 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 As Mayor, I recommend John Collins be appointed to the position of Public Works Director/City Engineer. Sample Motion Move to approve the appointment of John Collins as the Public Works Director/City Engineer. Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-62 WHEREAS, under Neb. Rev. Stat., §16-308, the office of City Engineer, for the City of Grand Island, Nebraska, is an appointed position; and WHEREAS, under Grand Island City Code, §2-30, the office of City Engineer and Public Works Director have been consolidated into one position for the City of Grand Island, Nebraska, and is an appointed position; and WHEREAS, the Mayor, with the approval of the City Council, may appoint the position of City Engineer/Public Works Director; and WHEREAS, this position appointed by the Mayor and confirmed by the City Council shall hold the position to which they may be appointed until the end of the Mayor’s term of office; and WHEREAS, this position appointed by the Mayor may be removed at any time by the Mayor with approval of a majority of the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that John Collins is hereby duly appointed the City Engineer/Public Works Director for the City of Grand Island, Nebraska, until the end of the Mayor’s term of office. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item I2 #2011-63 - Consideration of Approving Redevelopment Plan for Real Estate Located at 620 West State Street (Five Points located along N Broadwell, N Eddy & W State) This item relates to the aforementioned Public Hearing item E-1. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Chad Nabity City of Grand Island City Council Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-63 WHEREAS, the City of Grand Island, Nebraska, a municipal corporation and city of the first class, has determined it be desirable to undertake and carry out urban redevelopment projects in areas of the City which are determined to be substandard and blighted and in need of redevelopment; and WHEREAS, the Nebraska Community Development Law, Chapter 18, Article 21, Nebraska Reissue Revised Statutes of 2007, as amended (the "Act"), prescribes the requirements and procedures for the planning and implementation of redevelopment projects; and WHEREAS, the City has previously declared Redevelopment Area No. 6 of the City to be substandard and blighted and in need of redevelopment pursuant to the Act; and WHEREAS, the Community Redevelopment Authority of the City of Grand Island, Nebraska (the "Authority"), has prepared a Redevelopment Plan pursuant to Section 18-2111 of the Act, and recommended the Redevelopment Plan to the Planning Commission of the City; and WHEREAS, the Planning Commission of the City reviewed the Redevelopment Plan pursuant to the Act and submitted its recommendations, to the City, pursuant to Section 18-2114 of the Act; and WHEREAS, following consideration of the recommendations of the Authority to the Planning Commission, the recommendations of the Planning Commission to the City, and following the public hearing with respect to the Redevelopment Plan, the City approved the Plan; and WHEREAS, there has been presented to the City by the Authority for approval a specific Redevelopment Project within the Redevelopment Plan and as authorized in the Redevelopment Plan, such project to be as follows: Demolition of buildings along the Broadwell Street Frontage of lot 2 of Skag-Way Subdivision and remodeling and renovation of the Skagway Store on lot 1 Skag-Way Subdivision in the City of Grand Island. All redevelopment activities will occur in Grand Island, Hall County, Nebraska; and WHEREAS, the City published notices of a public hearing and mailed notices as required pursuant to Section 18-2115 of the Act and has, on the date of the Resolution held a public hearing on the proposal to amend the Redevelopment Plan to include the Redevelopment Project described above. NOW, THEREFORE, be it resolved by the City Council of the City of Grand Island, Nebraska: - 2 - 1. The Redevelopment Plan of the City approved for Redevelopment Area No. 6 in the city of Grand Island, Hall County, Nebraska, including the Redevelopment Project described above, is hereby determined to be feasible and in conformity with the general plan for the development of the City of Grand Island as a whole and the Redevelopment Plan, including the Redevelopment Project identified above, is in conformity with the legislative declarations and determinations set forth in the Act; and it is hereby found and determined that (a) the redevelopment project in the plan would not be economically feasible without the use of tax-increment financing, (b) the redevelopment project would not occur in the community redevelopment area without the use of tax-increment financing, and (c) the costs and benefits of the redevelopment project, including costs and benefits to other affected political subdivisions, the economy of the community, and the demand for public and private services have been analyzed by the City and have been found to be in the long-term best interest of the community impacted by the redevelopment project. The City acknowledges receipt of notice of intent to enter into the Redevelopment Contract in accordance with Section 18-2119 of the Act and of the recommendations of the Authority and the Planning Commission with respect to the Redevelopment Contract. 2. Approval of the Redevelopment Plan is hereby ratified and reaffirmed, as amended by this Resolution, and the Authority is hereby directed to implement the Redevelopment Plan in accordance with the Act. 3. Pursuant to Section 18-2147 of the Act, ad valorem taxes levied upon real property in the Redevelopment Project included or authorized in the Plan which is described above shall be divided, for a period not to exceed 15 years after the effective date of this provision, which effective date shall be January 1, 2012 as follows: a. That proportion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the Redevelopment Project Valuation (as defined in the Act) shall be paid into the funds of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That proportion of the ad valorem tax on real property in the Redevelopment Project in excess of such amount, if any, shall be allocated to, is pledged to, and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, such Redevelopment Project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such Redevelopment Project shall be paid into the funds of the respective public bodies. c. The Mayor and City Clerk are authorized and directed to execute and file with the Treasurer and Assessor of Hall County, Nebraska, an Allocation Agreement and Notice of Pledge of Taxes with respect to each Redevelopment Project. - 3 - 4. The City hereby finds and determines that the proposed land uses and building requirements in the Redevelopment Area are designed with the general purposes of accomplishing, in accordance with the general plan for development of the City, a coordinated, adjusted and harmonious development of the City and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity; and the general welfare, as well as efficiency and economy in the process of development; including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of a healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreation and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of unsanitary or unsafe dwelling accommodations, or conditions of blight. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item I3 #2011-64 - Consideration to Proceed with Closing the Union Pacific Railroad Crossing at Elm Street Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Gary R. Mader, Interim Public Works Director City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Interim Public Works Director Meeting: March 8, 2011 Subject: Consideration to Proceed with Closing the Union Pacific Railroad Crossing at Elm Street Item #’s: I-3 Presenter(s): Gary R. Mader, Interim Public Works Director Background During detailed development of the Phase I Quiet Zone Project, Public Works Department staff had a number of meetings with Nebraska Department of Roads (NDOR), Union Pacific Railroad (UPRR) and local business in the area of the project to finalize the design of the modifications necessary to accomplish the Quiet Zone along the reach included in Phase I. Of the four crossings included in Phase I, two (Pine Street and Oak Street) can be “quieted” by making modifications to the configuration of the approaches to the railroad crossing without having to install Wayside Horns, which is a relatively inexpensive method. The other two crossings (Pine Street and Elm Street) require the installation of Way Side horns along with modifications to the configurations of the streets, which is significantly more expensive, approximately three times the cost of the other two. Also during these discussions with the involved parties, it was found that there was substantial interest in closing the Elm Street crossing permanently and those parties expressed a willingness to contribute funding to the costs associated with closing the street at the Elm railroad crossing. At an estimated cost of $228,800, the Elm Street Quite Zone modifications are the most expensive of those included in the Phase I Project, representing approximately 40% of the total project cost of $590,200. Elm Street is also the least traveled of all of the crossings in the central part of the City, with only 7% of the number of crossings at Broadwell and 8% of the crossings at Eddy Street. Given that the most expensive Quiet Zone crossing had the least traffic and that there was interest from other parties in contributing to the costs to close that crossing, Public Works Department staff took a more detailed look at what the net costs savings might be for a change in the approach to the Phase I Quiet Zone Project. Closing the crossing eliminates the need for Wayside Horn installation, but adds cost to complete the closing of the street. With the indicated contributions to closing costs by the other parties included in the analysis, the net savings achieved by permanently closing the Elm Street Crossing are estimated at $209,000, reducing the total Phase I Project cost to approximately $382,000. Additionally, recognizing that the potential change in project scope would affect the property owners adjacent to Elm Street railroad crossing, Department staff contacted the owners to advise them of the potential change. Department staff also consulted the Police and Fire Departments of the City. Closing of the Elm Street crossing is not expected to have adverse impact on the emergency responses from those departments. With the potential for major cost savings, but also with major changes to the scope of the project, the Department decided that it was appropriate to advise the City Council of the option as it developed. That presentation was made at the Study Session of March 1, 2011. Discussion The Public Works Department solicits the City Council’s direction regarding future development of the Phase I Quiet Zone Project. The options are to retain the current project scope which retains the crossing, with a total Phase I cost estimated at $590,200; or to alter the scope of the project including closing the Elm street crossing, reducing the total project cost to an estimated $382,000. At the Study Session, the Council expressed an interest in traffic pattern changes resulting from the closing of the Elm Street crossing. Please see the attached bar graph illustrating the relative crossing locations and the frequency of traffic crossings through the central portion of the city, from Broadwell to Oak. Elm is located near the center of the reach depicted. The two railroad crossings located closest to Elm are Eddy on the west and Walnut on the east. As evidenced by the attached bar graph, either of these adjacent streets has adequate carrying capacity to absorb the total flow diverted from Elm Street. Increased traffic on existing crossings is not expected to be a problem. In order to provide a mechanism to determine the City Council’s direction, a resolution has been crafted directing staff to proceed with the project in a manner to work toward the closing of the Elm Street railroad crossing. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve the change in scope of the Quiet Zone Phase I Project to include permanently closing the Elm Street railroad crossing 2. Vote to deny the change in project scope 3. Move to retain the current scope of the Quiet Zone Phase I Project 4. Refer the issue to a Committee for further study 5. Postpone the issue to a future date 6. Take no action on the issue – Department staff would view “no action” as direction to maintain the current scope of the project Recommendation Because the closing of the Elm Street crossing is projected to significantly reduce the total cost of Quiet Zone Phase I construction and because that crossing is currently serving the least number of traffic crossings, it is the recommendation of the Public Works Department that the scope of the project be altered to work to the permanent closing of the Elm Street Railroad Crossing. Sample Motion Move to approve a resolution to proceed with closing the Union Pacific Railroad Crossing at Elm Street. 12150950534257745400060008000100001200014000Vehicles Per DayUPRR Estimated Daily Crossings 1215018059505795342515757745271002000400060008000100001200014000BroadwellLincolnEddyElmWalnutPineSycamoreOakVehicles Per DayStreet CrossingsUPRR Estimated Daily Crossings Approved as to Form ¤ ___________ March 4, 2011 ¤ City Attorney R E S O L U T I O N 2011-64 WHEREAS, during the design stage of the Phase I Quiet Zone project, significant, unanticipated costs were realized; and WHEREAS, the installation of Wayside Horns at Elm Street/Union Pacific Railroad (UPRR) Crossing is estimated to be $228,800; and WHEREAS, Elm Street at the UPRR crossing has the lowest traffic volume, at 795 vehicles per day, of all the City’s crossings along the UPRR corridor; and WHEREAS, Public Works Engineering is recommending closing the Elm Street crossing at UPRR instead of construction Wayside Horns, which would result in savings of approximately $208,800. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the process to close the Union Pacific Railroad Crossing at Elm Street may proceed. - - - Adopted by the City Council of the City of Grand Island, Nebraska, March 8, 2011. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item J1 Approving Payment of Claims for the Period of February 23, 2011 through March 8, 2011 The Claims for the period of February 3, 2011 through March 8, 2011 for a total amount of $2,587,712.22. A MOTION is in order. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Item X1 Discussion Concerning AFSCME, IAFF, FOP, IBEW (Utilities) (Finance) (WWTP) and (Service/Clerical) Union Negotiations The City Council may vote to go into Executive Session as required by State law to discuss AFSCME, IAFF, FOP, IBEW (Utilities) (Finance) (WWTP) and (Service/Clerical) Union Negotiations for the protection of the public interest. Tuesday, March 08, 2011 Council Session City of Grand Island Staff Contact: Brenda Sutherland City of Grand Island City Council