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07-24-2012 City Council Regular Meeting Packet City of Grand Island Tuesday, July 24, 2012 Council Session Packet City Council: Larry Carney Linna Dee Donaldson Scott Dugan John Gericke Peg Gilbert Chuck Haase Vaughn Minton Mitchell Nickerson Bob Niemann Kirk Ramsey Mayor: Jay Vavricek City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East First Street Grand Island Council Session - 7/24/2012 Page 1 / 290 City of Grand Island Tuesday, July 24, 2012 Call to Order 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. Invocation - Invocation Pledge of Allegiance Roll Call 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. Grand Island Council Session - 7/24/2012 Page 2 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item C1 Proclamation Nebraska State Fair 1868 Foundation "Blue Ribbon Roll Out Week" July 30 – August 4, 2012 The Nebraska State Fair started in 1868 and has been held at the State Fair Park in Lincoln until 2009 (108 years). Beginning in 2010, the Nebraska State Fair has been held at Fonner Park in Grand Island. The Nebraska State Fair 1868 Foundation, a non-profit organization whose purpose is to raise private funds for the Nebraska State Fair, will be celebrating the eighth annual "Blue Ribbon Roll Out" on Saturday, August 4, 2012 to raise funds for improvements to the grounds and facilities. The Mayor has proclaimed the week of July 30, 2012 as "Blue Ribbon Roll Out Week". See attached PROCLAMATION. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 7/24/2012 Page 3 / 290 Grand Island Council Session - 7/24/2012 Page 4 / 290 Grand Island Council Session - 7/24/2012 Page 5 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item E1 Public Hearing on Amendment to Redevelopment Plan Area #6 Located at 709 & 715 West 18th Street Staff Contact: Chad Nabity Grand Island Council Session - 7/24/2012 Page 6 / 290 Council Agenda Memo From:Chad Nabity, AICP Meeting:July 24, 2012 Subject:Amendment to Redevelopment Plan for CRA Area #6 Item #’s:E-1 & I-4 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. Baker Development Inc., as the developer has submitted a proposed amendment to the redevelopment plan that would provide for site acquisition, clearance and extension of utilities and subsequent construction of a duplex at 709 and 715 W 18th Street in Grand Island, Nebraska. The CRA reviewed the proposed development plan on June 13, 2012 and forwarded it to the Hall County Regional Planning Commission for recommendation at their meeting on July 11th, 2012. 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 amendment at a meeting on July 11th. The Planning Commission approved Resolution 2012-06 in support of the proposed amendment, declaring the proposed amendment to be consistent with the Comprehensive Development Plan for the City of Grand Island. Grand Island Council Session - 7/24/2012 Page 7 / 290 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 amendment permits site acquisition, clearance and extension of utilities and subsequent construction of a duplex at 709 and 715 W 18th Street in Grand Island, Nebraska. 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 $42,000 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. Grand Island Council Session - 7/24/2012 Page 8 / 290 Grand Island Council Session - 7/24/2012 Page 9 / 290 Grand Island Council Session - 7/24/2012 Page 10 / 290 Grand Island Council Session - 7/24/2012 Page 11 / 290 Grand Island Council Session - 7/24/2012 Page 12 / 290 Grand Island Council Session - 7/24/2012 Page 13 / 290 Grand Island Council Session - 7/24/2012 Page 14 / 290 Grand Island Council Session - 7/24/2012 Page 15 / 290 Grand Island Council Session - 7/24/2012 Page 16 / 290 Grand Island Council Session - 7/24/2012 Page 17 / 290 Grand Island Council Session - 7/24/2012 Page 18 / 290 Grand Island Council Session - 7/24/2012 Page 19 / 290 Huston Ave NState St W E d d y S t NBroadwell Ave N16th St W Cle b urn St N 17th St W 18th St W Clark St N Waugh St W 17th St W18th St W Area 6Redevelopment Plan709 & 715 W 18th Street Area 6Redevelopment PlanLocation Map ¯0 200 400100Feet Grand Island Council Session - 7/24/2012 Page 20 / 290 Grand Island Council Session - 7/24/2012 Page 21 / 290 Grand Island Council Session - 7/24/2012 Page 22 / 290 Grand Island Council Session - 7/24/2012 Page 23 / 290 Grand Island Council Session - 7/24/2012 Page 24 / 290 Redevelopment Plan Amendment Grand Island CRA Area #6 May 2012 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 LOCATED AT 709 AND 715 W 18TH STREET AND THE SUBSEQUENT SITE WORK, UTILITY and ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR CONSTRUCTING A DUPLEX AT THIS LOCATION. The use of Tax Increment Financing to aid in the acquisition of property along with costs associated with redevelopment of this site with a new duplex. The use of Tax Increment Financing makes it affordable to provide additional housing in Grand Island at this location at a contract rent that is consistent with the neighborhood. This project would not be possible in an affordable manner without the use of TIF. The site is under contract for purchase by developer contingent on the approval of TIF. All acquisition costs, site work, and utilities 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, 2014 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 between Cleburn Street and Eddy Street on the south side of 18th Street in northeast Grand Island. The attached map identifies the subject property and the surrounding land uses: Legal Descriptions Lot 2 and Lot 3 of Block 22 of Schimmer’s Addition to the City of Grand Island. Grand Island Council Session - 7/24/2012 Page 25 / 290 Grand Island Council Session - 7/24/2012 Page 26 / 290 The tax increment will be captured for the tax years the payments for which become delinquent in years 2014 through 2028 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 development of a duplex housing unit at this location. 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, 2014. 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. Grand Island Council Session - 7/24/2012 Page 27 / 290 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 been 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. The developer is proposing to acquire the property through private contract. b. Demolition and Removal of Structures: The project to be implemented with this plan does call for the demolition and removal of an existing substandard housing unit at this location. The structure to be demolished is a vacant substandard residential structure owned by the applicant. 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)] Grand Island Council Session - 7/24/2012 Page 28 / 290 City of Grand Island Future Land Use Map Grand Island Council Session - 7/24/2012 Page 29 / 290 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned B2-Genereal 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 purchase the property. The B2 zoning district allow 1 dwelling unit per 1000 square feet of property the combined size of the two lots is slightly more than 13139 square feet; enough to legally accommodate a duplex housing unit. The property is zoned B2 and could accommodate a building of up to 100% of the property area. The proposed units including the attached garages will cover about 2,984 square feet, well within the allowable coverage. [§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. Water is located on the north side of 18th Street and no services are present on the south side of the street for these lots. 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 property, under contract by the developer is currently vacant and undeveloped, no relocation is needed. [§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] Baker Development Inc. does have a banking relationship with Home Federal Bank in Grand Island, Nebraska. Barry Sandstrom, Chair of the CRA is also President of Home Federal Bank. He will abstain from the votes on actions taken on this project. Grand Island Council Session - 7/24/2012 Page 30 / 290 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 a contract to purchase the property. The cost of property acquisition is included as a TIF eligible expense. Costs for acquisition, site preparation, utilities extensions, landscaping and concrete are $38,250. These expenses are included as TIF eligible expenses. Fees and reimbursement to the City and the CRA of $2750 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 $42,000 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, 2014 through December 2029. 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 Grand Island Council Session - 7/24/2012 Page 31 / 290 that it will allow for the utilization of and redevelopment of existing lots. This will not significantly impact traffic on at the Five Points intersection. New residential rental properties in this area 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, site preparation and new construction) is anticipated to be completed between September 2012 and March of 2012. Excess valuation should be available for this project for 15 years beginning with the 2014 tax year. 9. Justification of Project This is a residential neighborhood characterized by single family dwellings on smaller lots. The City of Grand Island is in need of additional housing units and this development will result in 2 brand new housing units. This is infill development in an area with all city services available. This project does not propose to tear down any buildings. 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 $20,909. The proposed demolition and subsequent construction of a duplex at this location will result in an additional $138,000 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; Grand Island Council Session - 7/24/2012 Page 32 / 290 The proposed facility will provide jobs for persons employed with Baker Construction. It will have no impact on other firms locating or expanding in the area. (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 project will not have a negative impact on other employers and will result in additional housing choices for employees within the city. (e) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This project will increase the available quality housing in Grand Island by a net of 2 units. These types of smaller projects spread throughout the city will have a less drastic impact on neighborhoods and schools than a centralized larger housing project. Time Frame for Development Development of this project is anticipated to be completed during between September 2012 and March of 2013. The base tax year should be calculated on the value of the property as of January 1, 2013. Excess valuation should be available for this project for 15 years beginning in 2014. 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 $42,000. This is about $3,000 less than the projected amount of increment based upon the anticipated value of the project and current tax rate. Based on the estimates of the expenses of the cost of acquisition, site preparation, expenses and fees reimbursed to the City and CRA, the developer will spend at least $42,000 on TIF eligible activities. See Attached Building Plans Grand Island Council Session - 7/24/2012 Page 33 / 290 REDEVELOPMENT CONTRACT This Redevelopment Contract is made and entered into as of the _____th day of ___________, 2012, by and between the Community Redevelopment Authority of the City of Grand Island, Nebraska (“Authority”), and Baker Development, Inc., a Nebraska corporation (“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 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. Grand Island Council Session - 7/24/2012 Page 34 / 290 “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 Baker Development, Inc., a Nebraska corporation. “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: Grand Island Council Session - 7/24/2012 Page 35 / 290 (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 may 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 pursuant 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. Grand Island Council Session - 7/24/2012 Page 36 / 290 (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 corporation, 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. Grand Island Council Session - 7/24/2012 Page 37 / 290 (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, 2013. (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 Grand Island Council Session - 7/24/2012 Page 38 / 290 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. Grand Island Council Session - 7/24/2012 Page 39 / 290 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 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. Grand Island Council Session - 7/24/2012 Page 40 / 290 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 $1,250 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, 2012] of the Redevelopment Project Area of One Hundred Fifty Eight Thousand Dollars ($158,000) no later than no later than January 1, 2013. 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) One Hundred Fifty Eight Thousand Dollars ($158,000) and (b) the valuation of the Redevelopment Project Area as the same existed on January 1, 2012; (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. Redeveloper shall pay the real property ad valorem taxes for the project for the year 2027 prior to January 1, 2028. 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 Grand Island Council Session - 7/24/2012 Page 41 / 290 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. Section 4.10 Immigration Status. The Redeveloper agrees that any contractor for the Project shall be required to agree to use a federal immigration verification system (as defined in §4-114, R.S. Supp. 2009) to determine the work eligibility status of new employees physically performing services on the Project and to comply with all applicable requirements of §4-114, R.S. Supp. 2009. 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 shall 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, Grand Island Council Session - 7/24/2012 Page 42 / 290 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, 2013, 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. Grand Island Council Session - 7/24/2012 Page 43 / 290 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 construction 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 injury to or death of any person that may be occasioned by any cause whatsoever Grand Island Council Session - 7/24/2012 Page 44 / 290 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 memorandum 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. Grand Island Council Session - 7/24/2012 Page 45 / 290 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 Grand Island Council Session - 7/24/2012 Page 46 / 290 Baker Development, Inc. By:_____________________________ President 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 Grand Island Council Session - 7/24/2012 Page 47 / 290 STATE OF NEBRASKA ) ) ss. COUNTY OF __________) The foregoing instrument was acknowledged before me this ______ day of ______, _____, by ___________________, President of Baker Development, Inc., on behalf of the corporation. __________________________________ Notary Public Grand Island Council Session - 7/24/2012 Page 48 / 290 EXHIBIT A Lots 2 and 3, Block 22, Schimmer’s Addition to the City of Grand Island, Hall County, Nebraska. A-I Grand Island Council Session - 7/24/2012 Page 49 / 290 EXHIBIT B DESCRIPTION OF PROJECT The acquisition of property located at 709 and 715 w 18th street and the subsequent site preparation work, utility and engineering, landscaping and parking improvements necessary for constructing a duplex at the site. B- 1 Grand Island Council Session - 7/24/2012 Page 50 / 290 EXHIBIT C TIF INDEBTEDNESS 1.Principal Amount:$42,000.00 [annual payment amounts assumed are $3,000.00] 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, 2027. C-1 Grand Island Council Session - 7/24/2012 Page 51 / 290 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.Underground and surface concrete, including parking. 5.Sidewalk rehabilitation D-1 Grand Island Council Session - 7/24/2012 Page 52 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item E2 Public Hearing on Budget Amendment for Neighborhood Stabilization Program Grant Staff Contact: Marco Floreani Grand Island Council Session - 7/24/2012 Page 53 / 290 Council Agenda Memo From:Marco Floreani Council Meeting:July 24, 2012 Subject:Approving Neighborhood Stabilization Program (09-3N-11) Budget Amendment Request Item #:E-2 & G-14 Presenter(s):Marco Floreani, Community Development Administrator Background In 2009, the City of Grand Island was awarded a $993,712 Neighborhood Stabilization Program Grant from the Nebraska Department of Economic Development for property acquisition, demolition, redevelopment of new housing, housing administration, and general administration. In September 2010, the Department of Economic Development awarded an additional $190,000 to the City for additional demolition and redevelopment. The project has enabled the City to demolish 11 blighted structures and fund construction of (8) new houses on a portion of the lots. The houses are available to first-time homebuyers, who can apply for Direct Subsidy for down payment through this grant. All funds from the sale of each property will return to the City as program income and reinvested into similar projects. Discussion There are grant funds remaining for use in the New Construction activity of the budget. By requesting a budget amendment, these New Construction funds may be reallocated to Clearance/Demolition activity. This will give the City of Grand Island the opportunity to demolish an additional vacant and blighted property and fully utilize the funds we have been awarded for the Neighborhood Stabilization Program (NSP) grant 09-3N-11. The current remaining funds in the New Construction activity are $16,728. The proposed budget amendment will allocate the $16,728 to be used for Clearance/Demolition. The Grand Island City Council is required to take action on the budget amendment request for submission to the Nebraska Department of Economic Development. The budget amendment is being requested due to: 1.New Construction funds remaining, which have not been utilized during the construction of 8 homes built for low-moderate income individuals and families. Grand Island Council Session - 7/24/2012 Page 54 / 290 2.The ability to re-allocate these remaining funds to the Clearance/Demolition activity and demolish additional owner-occupied, vacant, blighted properties in Grand Island. Community Development believes that the demolition of additional properties will be completed within the Neighborhood Stabilization Programs contract, which ends on August 23, 2012, if not before. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the Neighborhood Stabilization Program (NSP) grant 09-3N-11 budget amendment request 2.Refer the issue to a Committee. 3.Postpone the issue to a later date. Recommendation City Administration recommends that Council approves the Neighborhood Stabilization Program (NSP) grant 09-3N-11 budget amendment request. Sample Motion Move to approve the Neighborhood Stabilization Program (NSP) grant 09-3N-11 budget amendment request. Grand Island Council Session - 7/24/2012 Page 55 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item F1 #9391 - Consideration of Amendments to Chapters 13 and 32 of the Grand Island City Code Relative to Downtown BID Encroachments Staff Contact: John Collins, Public Works Director Grand Island Council Session - 7/24/2012 Page 56 / 290 Council Agenda Memo From:Scott Griepenstroh, Project Manager Meeting:July 24, 2012 Subject:Consideration of Amendments to Chapters 13 and 32 of the Grand Island City Code Item #’s:F-1 Presenter(s):John Collins, Public Works Director Background All agreements with the Nebraska Department of Roads (NDOR) for Federal-aid Transportation projects include the following requirements for encroachments in the public Right-of-Way. The Local Public Agency (LPA), at no cost to the project, shall clear the entire existing Right-of-Way of this project of any private or non-LPA uses or occupancy of the area above, below, or on the existing Right-of-Way. Also, the LPA agrees to keep the old and new Right-of-Way free of future encroachments, except those specifically authorized by permit. The LPA must have all encroachments cleared from the Right-of-Way before requesting a Right-of-Way Certificate and must attest to said clearance. NDOR provided the following specific guidance for addressing encroachments on public Right of Way on Federal-aid Transportation projects. A.Encroachments that are potential safety hazards (obstacle, sight distance interference) located within the clear zone MUST be removed immediately. B.Encroachments that are potential safety hazards located outside the clear zone may be decided case-by-case; work with NDOR’s District office for assistance. C.Encroachments that are not potential safety hazards located within project lateral obstacle clearances must be moved, or considered to be abandoned, with the understanding that any damage caused by construction is not reimbursable, i.e. will not be paid for with Federal, State or Local funds (and if it remains after construction must be permitted by the local agency). D.Encroachments not included in any of the above categories – must be permitted (LPA governing body letter). Grand Island Council Session - 7/24/2012 Page 57 / 290 The Third and Wheeler Historical Lighting receives Federal aid through the Transportation Enhancement Program. The Grand Island Downtown has several encroachments that must be addressed before the Nebraska Department of Roads will approve final design plans and specifications. Discussion The Downtown Business Improvement District provided for and maintains concrete planters, bike racks, trash receptacles, sidewalk grates for trees and benches. These items typically are placed on the public sidewalk and are therefore encroachments in the public right-of-way. This ordinance will allow these items to remain in the public right-of-way at the discretion of the City of Grand Island and the Public Works Director. There are several buildings in the Downtown Business Improvement District that were constructed with vaults, or cavities, that extend under the public sidewalk. The purpose of these vaults includes providing for entrances to basements or additional storage space. Locations of underground vaults were identified in 1972 by Public Works staff as part of Downtown Sidewalk District improvements. This ordinance allows these underground vaults to remain in the public right-of-way. In the event the vaults become structurally unsound, the property owner is responsible for structural upgrades or removal. 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 changes to Chapters 13 and 32 of the City Code. Sample Motion Move to approve the ordinance amending Sections 13-92 and 32-69 and of the Grand Island City Code. Grand Island Council Session - 7/24/2012 Page 58 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney ORDINANCE NO. 9391 An ordinance to amend Chapters 13 and 32 of the Grand Island City Code; 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. Article XII. Business Improvement District No. 8, Section 13-92 of the Grand Island City Code is hereby amended by adding paragraphs (D) and (D)(i): §13-92. Purpose (D) Improvements Encroaching Public Right-of-Way: Physical improvements as described in this section that occupy public right-of-way are maintained solely at the sufferance of the City. The City reserves the right and power to require the removal of any such improvement at its sole discretion. (i) The Public Works Director shall have the authority to order items removed from the public right of way that compromise the use, construction or maintenance of the public sidewalk, alley or street. SECTION 2. Article VII. Occupancy of Public Right of Way, Section 32-69 of the Grand Island City Code is hereby amended by adding paragraph (6): §32-69. General (6) Underground vault space under public sidewalk on buildings constructed prior to 1972 in the Downtown Improvement Parking District, as defined in Section 13-1 of the Grand Island City Code, are maintained solely at the sufferance of the City. The City reserves the authority to require structural upgrades or removal if in the interest of public safety. 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. Grand Island Council Session - 7/24/2012 Page 59 / 290 ORDINANCE NO. 9391 (Cont.) - 2 - Enacted: July 24, 2012 ____________________________________ Jay Vavricek, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 60 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G1 Approving Minutes of July 9, 2012 Annual Joint Central District Health Department Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 7/24/2012 Page 61 / 290 OFFICIAL PROCEEDINGS CITY OF GRAND ISLAND, NEBRASKA MINUTES OF JOINT HEALTH SPECIAL MEETING July 9, 2012 Pursuant to due call and notice thereof, a Special Joint Meeting of the City Council of the City of Grand Island, Nebraska, the Hall County Board of Supervisors, the Hamilton County Board of Commissioners, the Merrick County Board of Commissioners, and the Central District Health Department was conducted at the Grand Island Public Library, 211 North Washington Street, Grand Island, Nebraska on July 9, 2012. Notice of the meeting was given in the Grand Island Independent on July 3, 2012. Central District Health Department Board President Mike Bowman called the meeting to order at 6:00 p.m. The following Health Board members were present: Dan Purdy (Hall Co.), Mike Bowman (Merrick Co.), Steve Kunzman, Mary Ann Apfel, Chuck Haase (Grand Island City Council), Dr. Richard Fruehling, Roger Wiegert (Merrick Co.), and Tim Bergen (Hamilton Co.). The following Hall County Supervisors were present: Daniel Purdy, Pamela Lancaster, Steve Schuppan, Gary Quandt, Bob McFarland and Hall County Clerk Marla Conley. The following Hamilton County Board of Commissioner was present: Tim Bergen. The following Merrick County Supervisor’s were present: Mike Bowman and Roger Wiegert. The following City Officials were present: Mayor Jay Vavricek, Councilmember’s Chuck Haase, Bob Niemann, Kirk Ramsey, Linna Dee Donaldson, John Gericke, Peg Gilbert, and City Clerk RaNae Edwards. Health Department employees: Executive Director Teresa Anderson, Assistant Director Ryan King, Jeremy Eschliman, and Jeremy Collinson. Mike Bowman welcomed the group. Theresa Anderson gave a PowerPoint presentation on the historical perspective of the Health Department. Jeremy Collinson commented on the Environmental Health which included: water, food inspections, preparedness and response and Vector control which dealt with mosquitos. Mr. Collinson commented on swimmers itch at Morman Island and working with inspections at the Nebraska State Fair. Questions were answered concerning the vendors at the State Fair and throughout the City. Periodic inspections were given throughout the fair and local vendors were inspected every six months. Jeremy Eschliman commented on WIC, immunization and epidemiology and surveillance. Ryan King commented on the Community Health Assessment. Life style issues were mentioned. Grant funds were used for Healthy Works, which was working with businesses to encourage healthy lifestyles. Explained was what the Health Department was doing to create a healthier lifestyle. Ms. Anderson explained the CHAMP program. The following Leading Causes of Death were presented: 1.Cancer Grand Island Council Session - 7/24/2012 Page 62 / 290 Page 2, City Council Special Meeting, July 9, 2012 2.Heart Disease 3.Chronic lower respiratory disease 4.Alzheimer Disease 5.Unintentional injuries In the Central District area, seven out of ten deaths were from chronic disease. Nearly one out of every two adults had at lease on chronic illness, many of which were preventable. Today, almost one in every three children in the district was overweight or obese which predisposes them to chronic disease. Presented were the CDHD Strategic Direction: Tobacco free living Preventing drug abuse and excessive alcohol use Healthy eating Active living Injury and violence free living Reproductive and sexual health Mental and emotional well-being A presentation was given on sugar-sweetened beverages (SSB). The Health Department will be working with worksites, schools, child care centers, government, and healthcare organizations to reduce the availability of sugar drinks and encourage healthier options. Discussion was held regarding taxes on SSB’s. Comments were made concerning the success of the smoking ban and the welcoming center here in Grand Island. Mentioned was the partnership between the City and County regarding replacing the parking lot at the Health Department. ADJOURNMENT: The meeting was adjourned at 6:50 p.m. Respectfully submitted, RaNae Edwards City Clerk Grand Island Council Session - 7/24/2012 Page 63 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G2 Approving Minutes of July 10, 2012 City Council Regular Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 7/24/2012 Page 64 / 290 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL REGULAR MEETING July 10, 2012 Pursuant to due call and notice thereof, a Regular Meeting of the City Council of the City of Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on July 10, 2012. Notice of the meeting was given in The Grand Island Independent on July 4, 2012. Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following City Council members were present: Chuck Haase, Larry Carney, Bob Niemann, Kirk Ramsey, Peg Gilbert, Mitch Nickerson, Linna Dee Donaldson, Scott Dugan, and John Gericke. Councilmember Vaughn Minton was absent. The following City Officials were present: City Clerk RaNae Edwards, City Attorney Robert Sivick, Public Works Director John Collins and Finance Director Jaye Monter. INVOCATION was given by Pastor Bob Rhodes, Trinity United Methodist Church, 511 North Elm Street followed by the PLEDGE OF ALLEGIANCE. Mayor Vavricek recused himself due to a conflict of interest on Items E-1 and G-2. Council President Gilbert conducted the meeting. Council President Gilbert introduced Community Youth Council member Ashley Bykerk. PUBLIC HEARINGS: Public Hearing on Acquisition of Utility Easement Located at 2533 Old Potash Hwy. (Charter Communications). Utilities Director Tim Luchsinger reported that acquisition of an easement located at 2533 Old Potash Hwy. was needed in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers for the purpose of locating underground conduit, cable, and a three phase pad-mounted transformer to serve the new load for Charter Communications. Staff recommended approval. No public testimony was heard. Public Hearing on Acquisition of Utility Easement Located at 2103 Pioneer Blvd. (James F. Crisel). Utilities Director Tim Luchsinger reported that acquisition of an easement located at 2103 Pioneer Blvd. was needed in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers for the purpose of locating underground cable, conduit and a pad-mounted transformer closer to the increased load. Staff recommended approval. No public testimony was heard. ORDINANCES: Councilmember Gilbert moved “that the statutory rules requiring ordinances to be read by title on three different days are suspended and that ordinances numbered: Grand Island Council Session - 7/24/2012 Page 65 / 290 Page 2, City Council Regular Meeting, July 10, 2012 #9390 – Consideration of Amending Chapter 2 of the Grand Island City Code to Require City Council Approval of Future Hires of Certain Department Directors be considered for passage on the same day upon reading by number only and that the City Clerk be permitted to call out the number of these ordinances on second reading and then upon final passage and call for a roll call vote on each reading and then upon final passage.” Councilmember Nickerson seconded the motion. Upon roll call vote, all voted aye. Motion adopted. #9390 – Consideration of Amending Chapter 2 of the Grand Island City Code to Require City Council Approval of Future Hires of Certain Department Directors City Attorney Robert Sivick reported that at the June 26, 2012 Council meeting Ordinance #9389 was approved requiring Council approval of future Police and Fire Chiefs hired by the Mayor. A motion to amend Ordinance was offered which would have required additional Department Directors be hired with Council approval. The motion was withdrawn due to concerns regarding the Nebraska Open Meetings Act requiring sufficient notice to the public. This ordinance did not include the Regional Planning Director, Emergency Management Director, and the Library Director because they were subject to the authority of public bodies other than the Council. Lewis Kent, 624 Meves Avenue requested Council to approve all Department Director’s positions. Discussion was held regarding the three positions not included in Ordinance #9390. Mr. Sivick explained the Regional Planning Director and Emergency Management Director’s position were tied with Hall County through an Interlocal and the Library Director was appointed by the Library Board as required by state statutes. They City pays for all three positions. Concerns were made regarding delays in hiring. Motion by Carney, second by Haase to approve Ordinance #9390. City Clerk: Ordinance #9390 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, Councilmember’s Haase, Carney, Niemann, Ramsey, Gilbert, Nickerson, Dugan, and Gericke voted aye. Councilmember Donaldson voted no. Motion adopted. City Clerk: Ordinance #9390 on final passage. All those in favor of the passage of this ordinance on final passage, answer roll call vote. Upon roll call vote, Councilmember’s Haase, Carney, Niemann, Ramsey, Gilbert, Nickerson, Dugan, and Gericke voted aye. Councilmember Donaldson voted no. Motion adopted. Mayor Vavricek: By reason of the roll call votes on first reading and then upon final passage, Ordinance #9390 is declared to be lawfully adopted upon publication as required by law. CONSENT AGENDA: Agenda items G-2 and G-8 were pulled for further discussion. Motion by Ramsey, second by Carney to approve the Consent Agenda excluding items G-2 and G-8. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 7/24/2012 Page 66 / 290 Page 3, City Council Regular Meeting, July 10, 2012 Approving Minutes of June 26, 2012 City Council Regular Meeting. #2012-173 – Approving Acquisition of Utility easement located at 2103 Pioneer Blvd. (James F. Crisel). #2012-174 – Approving Bid Award for Chimney Repairs at Platte Generation Station with NAES Power Contractors of Cranberry Township, PA in an Amount of $59,994.00. #2012-175 – Approving Bid Award for Fire Protection Upgrade at Platte Generating Station with Nebraska Fire Sprinkler of Alda, NE in an Amount of $68,900.00. #2012-176 – Approving Change Order #1 for Uranium Removal Water Treatment Plant Equipment Installation & Pump Modifications with Judds Brothers of Lincoln, NE for an Increase of $1,567.86 and a Revised Contract Amount of $310,817.86. #2012-177 – Approving Change Order #1 for Uranium Removal System Equipment at the Uranium Removal Water Treatment Plant with Water Remediation Technologies of Wheat Ridge, CO for a Decrease of $1,315.86 and a Revised Contract Amount of $1,956,784.14. #2012-179 – Approving Crossing Surface Installation Agreement with Burlington Northern Santa Fe (BNSF) Railway Company for Improvements at the Broadwell Avenue/BNSF Railroad Crossing in an Amount Estimated at $31,572.00. #2012-180 – Approving Increase to the City’s Share of the US Highway 30 Improvements with NDOR Project No. STP-NH 30-4(157) for a Total Amount of $571,423.60. #2012-172 – Approving Acquisition of Utility Easement Located at 2533 Old Potash Hwy. (Charter Communications). This item related to the aforementioned Public Hearing. Motion by Carney, second by Dugan to approve Resolution #2012-172. Upon roll call vote, all voted aye. Motion adopted. #2012-178 – Approving Request for Relaxation of Design Standards for Minimum Shoulder Width on Streets without Curb and Gutter for the Grand Island Resurfacing – Various Locations Project. Public Works Director John Collins reported that relaxation of Design Standards for Minimum Shoulder width on Streets without curb and gutter were needed on sections of Independence Road, South Blaine Street and North Road which did not currently have sufficient right of way to construct wider shoulders due to ditch and utility conflicts. Councilmember Gericke raised concerns of allowing narrow streets within the city. Motion by Carney, second by Gericke to approve Resolution #2012-178. Upon roll call vote, Councilmember’s Carney, Niemann, Ramsey, Gilbert, Nickerson, Donaldson, Dugan, and Gericke voted aye. Councilmember Haase voted no. Motion adopted. Mayor Vavricek returned to conduct the meeting. Grand Island Council Session - 7/24/2012 Page 67 / 290 Page 4, City Council Regular Meeting, July 10, 2012 PAYMENT OF CLAIMS: Motion by Dugan, second by Nickerson to approve the Claims for the period of June 27, 2012 through July 10, 2012, for a total amount of $4,345,834.28. Unanimously approved. Motion by Gilbert, second by Dugan to remove item X-2 – Strategy Session with Respect to Pending Litigation from the agenda. Upon roll call vote, all voted aye. Motion adopted. ADJOURN TO EXECUTIVE SESSION: Motion by Gilbert, second by Ramsey to adjourn to Executive Session at 7:30 p.m. for the purpose of a strategy session with respect to collective bargaining (IBEW Local 1597 – Wastewater, Service/Clerical, Finance, Utilities). Upon roll call vote, all voted aye. Motion adopted. RETURN TO REGULAR SESSION: Motion by Gilbert, second by Ramsey to return to Regular Session at 8:07 p.m. Upon roll call vote, all voted aye. Motion adopted. ADJOURNMENT: The meeting was adjourned at 8:07 p.m. RaNae Edwards City Clerk Grand Island Council Session - 7/24/2012 Page 68 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G3 Approving Minutes of July 10, 2012 City Council Study Session Staff Contact: RaNae Edwards Grand Island Council Session - 7/24/2012 Page 69 / 290 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL STUDY SESSION July 10, 2012 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 July 10, 2012. Notice of the meeting was given in the Grand Island Independent on July 4, 2012. Mayor Jay Vavricek called the meeting to order at 8:07 p.m. The following Councilmembers were present: Chuck Haase, Larry Carney, Bob Niemann, Kirk Ramsey, Peg Gilbert, Mitch Nickerson, Linna Dee Donaldson, Scott Dugan, and John Gericke. Councilmember Vaughn Minton was absent. The following City Officials were present: City Clerk RaNae Edwards, City Attorney Bob Sivick, Public Works Director John Collins and Finance Director Jaye Monter. SPECIAL ITEMS: Presentation on Fire Chief Recruitment Process. Human Resources Director Brenda Sutherland reported that the City had an opening for a Fire Chief that was currently being advertised with a closing date for applications on July 16, 2012. An overview of the process for recruitment was presented. The goal was to hire the best possible candidate with community and council participation, professional expertise, validated process to lead to a successful recommendation. The following Fire Chief Recruitment Process was presented: Applications are being accepted until July 16, 2012 at 3:00 p.m. Applicants must submit required supporting documents with an on-line application by deadline CPS (company that the City has used for Fire testing for many years) is supplying the assessment center test. Civil Service rules require a competitive testing process Using an assessment center testing process would increase the applicant pool and be a validated, objective process. While applications were being accepted, a job analysis along with the knowledge, skills and abilities necessary would be evaluated by Subject Matter Experts (SMEs) i.e. professional fire department management employees. Assessment center exercises and scoring would be developed during the application period. Candidates meeting the eligibility requirements/minimum qualifications would be contacted by Cooperative Personnel Services (CPS) and phone interviews would be conducted by CPS with candidates who met qualifications. The Civil Service Commission would receive recommendations on candidate eligibility. The assessment center would consist of approximately three exercises and two to three assessors per exercise to be held August 21 – August 23, 2012 at the One-Stop building. The following hiring process was presented: Candidates’ scores will be based on their responses to assessment center exercises Candidates will be ranked based on their score Civil Service Commission will certify scores and form a certified eligibility list Civil Service Rules permit consideration for the top three ranking candidates (finalists) Grand Island Council Session - 7/24/2012 Page 70 / 290 Page 2, City Council Study Session, July 10, 2012 Thorough background checks will be conducted on the top candidates An employment interview will be conducted by an interview committee with the top candidates Community opportunity to hear from top candidates will be held Recommendation by Mayor and City Council approval Discussion was held regarding an interview committee. Ms. Sutherland stated if people in the community were interested to be on the interview committee or be a part of the assessment center they could contact Ms. Sutherland or the Mayor. Comments were made by the Mayor that employees on the Fire Department would be a part of this process. 2013 Proposed Budget Presentation – General Fund and Capital Improvement Projects Fund. Finance Director Jaye Monter reported that tonight’s presentation would allow council to start with an understanding of the estimate of the 2012-2013 General Fund revenues and know the revenue needed for departments to incur increasing payroll costs and continue to provide quality services to the citizens of Grand Island. The goal was for financial sustainability of City policies and services to best serve the people of Grand Island. The purpose of the budget was to meet service expectations based on prioritization, identify the financial needs for the next 12 months, and lay the groundwork for long-term financial sustainability. Presented were revenue projections for the 2012-2013 Budget. An increase in sales tax, property tax, municipal equalization, and food & beverage tax were forecasted to increase for a total increase of 2.9% or $38,401,000. Explained was the All Other category which included motor vehicle tax, grants, and fees received by the city, etc. Explained was the program expenditure for 2012-2013. Revenue needed for General Fund Department Expenditures was $31,890,000 with a General Fund Revenue shortage of $353,000. Discussion was held regarding the increase in operating costs over the last two to three years. Of the $31,890,000 projected expenditures, $24,000,000 was for payroll costs. The following 2012-2013 Payroll Budget Calculations were presented: 1.75% salary increase FOP union – Fraternal Order of Police 1.50% salary increase AFSCME union – American Federation of State, City and Municipal Employees 2.00% salary increase all other unions 2.00% salary increase non-union 15.00% increase health insurance premium General Fund Capital Department requests for 2012-2013 were presented for a total of $1,835,285. Carry over funds were discussed. Discussion was held regarding the addition to Station No. 3 – Dormitory, exercise request for an amount of $200,000. Interim Fire Chief Russ Blackburn explained the need for this request. Capital Improvement Projects - 400 Fund were reviewed for a total request of $4,744,067. Grand Island Council Session - 7/24/2012 Page 71 / 290 Page 3, City Council Study Session, July 10, 2012 Discussion was held with regards to those items that were budgeted for in 2011-2012 but were not done and were moved over to the 2012-2013 budget request at an increased amount. Building Department Director Craig Lewis explained the City Hall HVAC item in the budget. Mayor questioned the Council, if they were in agreement of no tax increase in the General Fund or in the Capital Improvement Projects. Comments were made regarding the Program Prioritization process with regards to eliminating programs. Reviewed were the upcoming Council meetings. City Attorney Bob Sivick explained the cell phone occupation tax. Several Councilmember’s commented on no increase in property tax. ADJOURNMENT: The meeting was adjourned at 10:15 p.m. RaNae Edwards City Clerk Grand Island Council Session - 7/24/2012 Page 72 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G4 Approving Minutes of July 17, 2012 City Council Study Session Staff Contact: RaNae Edwards Grand Island Council Session - 7/24/2012 Page 73 / 290 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL STUDY SESSION July 17, 2012 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 July 17, 2012. Notice of the meeting was given in the Grand Island Independent on July 11, 2012. Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following Councilmembers were present: Chuck Haase, Larry Carney, Bob Niemann, Kirk Ramsey, Peg Gilbert, Mitch Nickerson, Linna Dee Donaldson, Scott Dugan, Vaughn Minton, and John Gericke. The following City Officials were present: City Clerk RaNae Edwards, City Attorney Bob Sivick, Public Works Director John Collins and Finance Director Jaye Monter. INVOCATION was given by Community Youth Council member Ashley Bykerk followed by the PLEDGE OF ALLEGIANCE. SPECIAL ITEMS: Emergency Medical Service (EMS) Demonstration. Interim Fire Chief Russ Blackburn stated this presentation was a simulation of a chest pain victim and what the response by EMS and the Grand Island Fire Department would be in an actual emergency. The goal for transfer was 10 minutes or less. Reasons for an engine truck and an ambulance at each call were needed for manpower. Mentioned was that it was important to call 911 if you were having chest pains. Station #1 engine company was introduced along with Jason Carter who portrayed the chest pain victim. Emergency Management Director Jon Rosenlund explained the process of incoming calls to the 911 Center. Presentation of Grand Island Police Department Implementation Plan for the ICMA Public Safety Study. Police Chief Steve Lamken reported this was an overview of the ICMA Study. The “End Game” was to reduce Crime and the Fear of Crime in Grand Island. The following Benchmarks were presented: Performance Objectives Crime Reduction – 3773/100,000 population Crime Clearance – Violent 50%, Property 21.3% Fear of Crime – City Survey Crime Defense – Crime Prevention Programs Traffic Safety – to be determined Emergency Services – 5 min. Response Time to Priority 1 Calls. Less than 60% Saturation Index. Saturation Index – Above 60% - Upper Threshold Police Officers Ten Additional Officers Grand Island Council Session - 7/24/2012 Page 74 / 290 Page 2, City Council Study Session, July 17, 2012 Replacement and Reassignment of Two Officers CSOs – 5 FTE Positions Support Staff – 3 FTE Positions Chief Lamken stated ICMA recommended a Strategic Policing Plan. His definition of Strategic Policing was a well planned and coordinated initiative, using multiple resources in cooperation with community resources, with the goal of creating a sustainable impact on crime. Explained was a plan for Strategic Policing for the Grand Island Police Department. Implementation would take place over four years. The following Implementation Costs Summary was presented: Program 2012/13 2013/14 2014/15 2015/16 Police Officers $561,690 $820,220 $861,862 $921,047 CSOs $137,723 $213,619 $286,556 $313,649 Support Staff $ 70,583 $108,741 $111,581 $153,320 Totals $769,996 $1,142,580 $1,259,999 $1,388,012 Discussion was held regarding if there were enough candidates to fill these positions. Chief Lamken stated they would take the time to find the right people for these positions. Comments were made by Council regarding the importance of the School Resource Officers. Chief Lamken stated during the school year the officers would still be in the schools and then be put on patrol duty during the summer. Calls for service had been addressed and changed over the past few years. Chief answered questions regarding the mobile units in the cars and stated the reception of calls was very good through Verizon. Mentioned was the importance of Community Service Officers (CSOs) and what a great job they were doing. Comments were made concerning the Police Officer’s taking their cars home to have a presence in the neighborhoods and the elimination of the Police Motorcycles. Explained was the Fear of Crime City Survey. Chief stated if the Council wanted the impact of the Strategic Policing, the Police Department needed the resources. Comments were made regarding Program Prioritization and that 24 months ago the Police Department lost 11 employees. Chief answered questions concerning the overtime budget and that it had been reduced over the past few years. Explained was on average there were between five to nine officers and two sergeants on the street on any shift at any one time to cover a city of 50,000 people. Mayor Vavricek commented on the ICMA Study and spoke in full support of the study. Chief stated this study was solid and the Police Department was up to the challenge. CSOs were mentioned as important to Strategic Policing. Presentation of 2013 Capital Improvement Fund Budget. Public Works Director John Collins reviewed the Capital Projects for 2012-2013. Explained were construction estimates, rule of thumb, preliminary estimate and final estimate. Total Capital Improvement requests for the Public Works Department for 2012-2013 was $4,744,067. Anticipated 2013-2014 Capital Grand Island Council Session - 7/24/2012 Page 75 / 290 Page 3, City Council Study Session, July 17, 2012 Improvement Budget was $9,388,700. Mr. Collins reviewed and explained each of the proposed projects in the General Fund for 2012-2013. Discussion was held regarding the Cannon Ditch Lining project and other ditches in the City. Mr. Collins stated he had been working on standards for ditches. City Attorney Robert Sivick explained the request of $65,000 for Digital Antenna/Transmission Line Install. Finance Director Jaye Monter explained this presentation was to give the Council more information and time to think about the funding. Mentioned was there should be carryover of approximately $400,000 to $500,000 in the General Fund. Presentation of City Administrator Hiring Process. Human Resources Director Brenda Sutherland reported that the City of Grand Island currently had an opening for City Administrator which was a statutory position appointed by the Mayor and approved by the City Council. The goal was to appoint the best candidate for the City Administrator position for the City of Grand Island. The following two processes were presented: Internal Recruitment – Coordinated by the City Human Resources Department -No additional cost other than recruitment advertising -Recruitment brochure and job posting -Advertising League of Municipalities – various states On-line advertising sources Social Media websites GovernmentJobs.com Trade Organizations External Recruitment – Performed by an outside recruitment agency The following Internal Recruitment Process was presented: Applications accepted until 3:00 p.m. on September 7, 2012 Review of the applications for minimum qualifications estimated completion by September 17, 2012 Review of applications by committee consisting of Mayor, Council President Gilbert and H.R. Director Telephone interviews by a five member committee which includes an additional two at- large members selected from the community Background checks will be conducted on the candidates Biographical information about the finalists will be shared with the public Finalists will be invited to an in-person interview in October with the Mayor, City Council and Community members Contract negotiations with recommended candidate Recommendation by Mayor and approval by City Council The following External Recruitment Process was presented: Grand Island Council Session - 7/24/2012 Page 76 / 290 Page 4, City Council Study Session, July 17, 2012 Request for Proposal (RFP) – 30 days Selection of external recruitment agency – late August. Cost is typically 25% - 33% of the first year’s salary (City Administrator salary range is $1114,033 - $160,457) Contract with recruitment firm brought before City Council for approval – September 11th Timeline determined in conjunction with external recruitment agency Job Analysis Creation of recruitment brochure Application period is typically 30-45 days Advertising by external firm Review of applications by external firm Phone interviews with the most qualified candidates by recruitment agency Top candidates forwarded to the City for review Phone interviews with review committee which includes the Mayor, County President Gilbert, Human Resources Director and 2 at-large members Background checks will be conducted on the candidates Biographical information about each finalist will be made available to the public Finalists will be invited to an in-person interview with the Mayor, City Council and Community members Contract negotiations with recommended candidate Recommendation by Mayor and approval by City Council Discussion was held concerning the contract negotiation and who would be involved. Mentioned were the City Attorney, Mayor and HR Director if the Internal Recruitment Process was used. Using an External Recruitment Process could be negotiated by the external firm. Comments were made concerning the cost and time of an external firm. Internal recruitment could have a City Administrator in place by November. It was suggested that the two community members for the committee be Councilmember’s. ADJOURNMENT: The meeting was adjourned at 9:45 p.m. RaNae Edwards City Clerk Grand Island Council Session - 7/24/2012 Page 77 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G5 Approving Re-Appointments of Donald Skeen, Mike Spilinek, and Steve Grubbs to the Building Code Advisory Board The Mayor has submitted the re-appointments of Donald Skeen, Mike Spilinek, and Steve Grubbs to the Building Code Advisory Board. These appointments would become effective August 1, 2012 upon approval by the City Council and would expire on August 1, 2014 Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 7/24/2012 Page 78 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G6 Approving Re-Appointments of Al Avery, Deb Trosper, Glen Murray, John Schultz, Karen Bredthauer, and Mike Nolan to the Zoning Board of Adjustment The Mayor has submitted the re-appointments of Mike Nolan, Al Avery, Glen Murray, John Schultz, Karen Bredthauer, and Deb Trosper to the Zoning Board of Adjustment. These appointments would become effective September 1, 2012 upon approval by the City Council and would expire on August 31, 2015. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 7/24/2012 Page 79 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G7 #2012-181 - Approving Final Plat and Subdivision Agreement for Sheaffer Second Subdivision Staff Contact: Chad Nabity Grand Island Council Session - 7/24/2012 Page 80 / 290 Council Agenda Memo From: Regional Planning Commission Meeting: July 24, 2012 Subject: Sheaffer Second Subdivision – Final Plat Item #’s: G-7 Presenter(s): Chad Nabity AICP, Regional Planning Director Background This property is located west of Claude Rd and south of Arch Ave., in the City of Grand Island, in Hall County, Nebraska. Consisting of (2 Lot) and 5.5.6046 acres. Discussion The revised final plat for Sheaffer Second Subdivision was considered by the Regional Planning Commission at the July 11, 2012 meeting. A motion was made by Bredthauer and seconded by Hayes to approve the plat as presented. A roll call vote was taken and the motion passed with 8 members present (McCarty, Snodgrass, O’Neill, Ruge, Hayes, Reynolds, Haskins, Bredthauer) 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. Grand Island Council Session - 7/24/2012 Page 81 / 290 Grand Island Council Session - 7/24/2012 Page 82 / 290 Kevin J Houtwed & Karen Houtwed Developer/Owner 1104 S Claude Road Grand Island NE 68803 PRO-TATCH INC, INC a Nebraska Corporation Kevin J. Houtwed, President 1104 S Claude Road Grand Island NE 68803 PREFERED PUMP & EQUIPMENT, L.P. Randy Lyne, President of PPE Genpar Inc., General Partner of Prefered Pump & Equipment, L.P. 2201 Scott Avenue Ft. Worth TX 76103 City of Grand Island 100 E 1st St Grand Island NE 68801 Grand Island Council Session - 7/24/2012 Page 83 / 290 To create 2 Lots west of Claude Road and south of Arch Ave., in the City of Grand Island, in Hall County, Nebraska. Size: 5.6046 Zoning: M2 – Heavy Manufacturing Zone Road Access: City Roads Water Public: City water is available Sewer Public: City sewer is available Grand Island Council Session - 7/24/2012 Page 84 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-181 WHEREAS, Kevin J. Houted and Karen Houted, husband and wife, and PRO- TATCH, INC., a Nebraska Corporation, and THE CITY OF GRAND ISLAND, NEBRASKA, and PREFERED PUMP & EQUIPMENT, L.P., being the owners of the land described hereon, have caused same to be surveyed, subdivided, platted and designated as SHEAFFER SECOND SUBDIVISION, to be laid out into 2 lots, a tract of land comprising a part of the Northeast Quarter of the Southwest Quarter (NW1/4 SW1/4) of Section Twenty Four (24), Township Eleven North, Range Ten (10) West of the 6th P.M., in the City of Grand Island, Hall County Nebraska, 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 SHEAFFER SECOND 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, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 85 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G8 #2012-182 - Approving Bid Award - Cooling Tower Reconditioning at Platte Generating Station Staff Contact: Tim Luchsinger, Jason Eley Grand Island Council Session - 7/24/2012 Page 86 / 290 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Jason Eley, Assistant City Attorney Meeting Date:July 24, 2012 Subject:Cooling Tower Reconditioning 2012 Item #’s:G-8 Presenter(s):Timothy G. Luchsinger, Utilities Director Background The cooling tower at the Platte Generating Station was constructed as part of the original plant in 1982. It is a wooden structure with fiberglass and PVC components. It is regularly inspected to maintain its structural integrity. Recent inspections by consultants and plant staff indicate that reconditioning is required to replace damaged louvers, air seals, and hot water deck seals. The existing louvers have been damaged by falling ice over the years. The new louvers will be heavier and supported by fiberglass rods which will extend their useful life. Wind wall air seals are in need of repair, as many are cracked or have fallen off. Several perimeter air seals are in need of replacement. The leaks on the hot water deck will be re-caulked and sealed to reinforce the existing fiberglass seal. Discussion The specifications for Cooling Tower Reconditioning – 2012, were advertised and issued for bid in accordance with the City Purchasing Code. Bids were publicly opened on July 10, 2012. Specifications were sent to eight potential bidders and responses were received as listed below. The engineer’s estimate for this project was $150,000. Bidder Bid Price Cooling Tower Depot, Inc.$132,235.00 International Cooling Tower $153,000.00 Evaptech, Inc. $155,168.83 Midwest Towers, Inc. $174,310.00 Grand Island Council Session - 7/24/2012 Page 87 / 290 The bids were reviewed by plant engineering staff. The Cooling Tower Depot, Inc., bid had noted exceptions excluding any electrical work, which are acceptable. The bid is otherwise compliant with specifications, and less than the engineer’s estimate. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council award the Contract for Cooling Tower Reconditioning – 2012, to Cooling Tower Depot, Inc., of Golden, Colorado, in the amount of $132,235.00. Sample Motion Move to approve the bid of $132,235.00 from The Cooling Tower Depot, Inc., for Cooling Tower Reconditioning – 2012, at Platte Generating Station. Grand Island Council Session - 7/24/2012 Page 88 / 290 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:July 10, 2012 at 2:00 p.m. FOR:Cooling Tower Reconditioning 2012 DEPARTMENT:Utilities ESTIMATE:$150,000.00 FUND/ACCOUNT:520 PUBLICATION DATE:June 23, 2012 NO. POTENTIAL BIDDERS:5 SUMMARY Bidder:International Cooling Tower Cooling Tower Depot, Inc. Edmonton, Canada Golden, CO Bid Security:Hartford Fire Ins. Co.Argonaut Ins. Co. Exceptions:Noted Noted Bid Price: Material:$91,000 $59,467 Labor:$58,000 $68,735 Sales Tax:$ 5,000 $ 4,033 Total Bid:$153,000 $132,235 Bidder:Evaptech, Inc.Midwest Towers, Inc. Lenexa, KS Chickasha, OK Bid Security:Western Surety Co.Liberty Mutual Ins. Co. Exceptions:None None Bid Price: Material:$69,020.00 $77,147.00 Labor:$82,730.00 $85,758.00 Sales Tax:$ 3,418.83 $11,405.00 Total Bid:$155,168.83 $174,310.00 cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director Grand Island Council Session - 7/24/2012 Page 89 / 290 Jason Eley, Purchasing Agent Pat Gericke, Utilities Admin. Assist. Ryan Schmitz, Utility Production Eng.Karen Nagel, Utilities Secretary P1568 Grand Island Council Session - 7/24/2012 Page 90 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-182 WHEREAS, the City of Grand Island invited sealed bids for Cooling Tower Reconditioning at Platte Generating Station according to plans and specifications on file with the Utilities Department; and WHEREAS, on July 10, 2012, bids were received, opened and reviewed; and WHEREAS, Cooling Tower Depot, Inc., of Golden, Colorado, 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 $132,235.00; and WHEREAS, the bid of Cooling Tower Depot, Inc., is less than the estimate for the Cooling Tower Reconditioning at Platte Generating Station. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Cooling Tower Depot, Inc., in the amount of $132,235.00, for Cooling Tower Reconditioning is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 91 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G9 #2012-183 - Approving Bid Award - Coal Conveyor #1 Transfer Point Upgrade at Platte Generating Station Staff Contact: Tim Luchsinger, Jason Eley Grand Island Council Session - 7/24/2012 Page 92 / 290 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Jason Eley, Assistant City Attorney Meeting Date:July 24, 2012 Subject: Coal Conveyor #1 Transfer Point Upgrade Item #’s:G-9 Presenter(s):Timothy G. Luchsinger, Utilities Director Background Platte Generating Station utilizes a conveyor system to transport coal from the point where train cars unload to the coal storage pile and additional conveyors to the coal storage bunkers. The conveyor system consists of five separate conveyors. The five transfer points where coal is transferred from one conveyor to another are in need of upgrades to alleviate airborne dust, minimize maintenance, and provide a higher level of safety for plant personnel. Specifications were developed by the plant staff to include upgrading the first two transfer points. The specification was written to require, firm, lump sum pricing on the first transfer point with an alternate pricing for the second transfer point. Discussion The specifications for the Coal Conveyor #1 Transfer Point Upgrade were advertised and issued for bid in accordance with the City Purchasing Code. Bids were publicly opened on July 17, 2012. Specifications were sent to four potential bidders and responses were received as listed below. The engineer’s estimate for this project was $150,000.00. Bidder Bid Price Alternate Bid Total Bid Martin Engineering Neponset, IL $ 76,377.67$69,823.92 $146,201.59 Benetech Aurora, IL $334,045.00 $193,680.00 $527,725.00 Grand Island Council Session - 7/24/2012 Page 93 / 290 The bids were reviewed by plant engineering staff. The bid from Martin Engineering is compliant with specifications and the base bid and optional bid are less than the engineer’s estimate. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council award the Contract for Coal Conveyor #1 Transfer Point Upgrade at Platte Generating Station to Martin Engineering of Neponset, Illinois, as the low responsive bidder, in the amount of $146,201.59. Sample Motion Move to approve the bid of $146,201.59 from Martin Engineering for the Coal Conveyor #1 Transfer Point Upgrade at Platte Generating Station. Grand Island Council Session - 7/24/2012 Page 94 / 290 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:July 17, 2012 at 2:00 p.m. FOR:Coal Conveyor #1 Transfer Point Upgrade - PGS DEPARTMENT:Utilities ESTIMATE:$150,000.00 FUND/ACCOUNT:520 PUBLICATION DATE:June 30, 2012 NO. POTENTIAL BIDDERS:4 SUMMARY Bidder:Martin Engineering Benetech Neponset, IL Aurora, IL Bid Security:Cashier’s Check Westchester Fire Ins. Co. Exceptions:Noted Noted Bid Price: Material:$36,366.00 $189,145.00 Labor:$35,015.00 $144,900.00 Sales Tax:$ 4,996.67 $ 0.00 Total Bid:$76,377.67 $334,045.00 Aletrnate Bid $69,823.92 $193,680.00 cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director Jason Eley, Purchasing Agent Pat Gericke, Utilities Admin. Assist. Ryan Schmitz, Water Supt. P1569 Grand Island Council Session - 7/24/2012 Page 95 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-183 WHEREAS, the City of Grand Island invited sealed bids for Coal Conveyor #1 Transfer Point Upgrade at Platte Generating Station, according to plans and specifications on file with the Utilities Department; and WHEREAS, on July 17, 2012, bids were received, opened and reviewed; and WHEREAS, Martin Engineering, of Neponset, Illinois, 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 $146,201.59; and WHEREAS, the bid of Martin Engineering is less than the estimate for the Coal Conveyor #1 Transfer Point Upgrade at Platte Generating Station. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Martin Engineering, in the amount of $146,201.59, for Coal Conveyor #1 Transfer Point Upgrade is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 96 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G10 #2012-184 - Approving Supplemental Agreements with Burlington Northern Santa Fe Railroad - Double Track Project Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 7/24/2012 Page 97 / 290 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Robert Sivick, City Attorney Meeting:July 24, 2012 Subject:Burlington North Santa Fe Supplemental Agreements – Double Track Project Item #’s:G-10 Presenter(s):Timothy Luchsinger, Utilities Director Background Burlington Northern Santa Fe (BNSF) is in the process of constructing a second track through Grand Island. To facilitate that construction and as a result of the Agreement entered into between the City and BNSF on December 6, 2011, a number of supplemental agreements will need to be approved. The next agreements to come before City Council for approval are as follows: 1.Mile Post (MP) 94.41 – Electric Supply Line - Approximately 300 feet west of Bismark Road. 2.Mile Post (MP) 96.34 – Electric Supply Line - Between 6th & 7th Streets 3.Mile Post (MP) 96.19 – Electric Supply Line - Parallel to tracks between 4th & 5th Streets 4.Mile Post (MP) 96.03 – Electric Supply Line - Just south of the crossing with Union Pacific Railroad 5.Mile Post (MP) 96.26 – Electric Supply Line - On the north side of 5th Street Discussion Power line modifications for crossing #1 will be made and paid for by BNSF. The remaining crossing are existing crossings with no required modifications, but the crossing agreements are being updated to the current crossing agreement form. The supplemental agreements also include insurance requirements and working conditions for parties performing activities on railroad property. Grand Island Council Session - 7/24/2012 Page 98 / 290 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 supplemental agreements with BNSF for the electrical crossing at Mile Post 94.41, Mile Post 96.34, Mile Post 96.19, Mile Post 96.03 and Mile Post 96.26. Sample Motion Move to approve the supplemental agreements with BNSF for the Double Track Project. 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7/24/2012 Page 171 / 290 Grand Island Council Session - 7/24/2012 Page 172 / 290 Grand Island Council Session - 7/24/2012 Page 173 / 290 Grand Island Council Session - 7/24/2012 Page 174 / 290 Grand Island Council Session - 7/24/2012 Page 175 / 290 Grand Island Council Session - 7/24/2012 Page 176 / 290 Grand Island Council Session - 7/24/2012 Page 177 / 290 Grand Island Council Session - 7/24/2012 Page 178 / 290 Grand Island Council Session - 7/24/2012 Page 179 / 290 Grand Island Council Session - 7/24/2012 Page 180 / 290 Grand Island Council Session - 7/24/2012 Page 181 / 290 Grand Island Council Session - 7/24/2012 Page 182 / 290 Grand Island Council Session - 7/24/2012 Page 183 / 290 Grand Island Council Session - 7/24/2012 Page 184 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-184 WHEREAS, in April of 2011, the City was advised by Burlington Northern Santa Fe (BNSF) that they were proceeding with a project to widen the elevated rail overpass to a double track to alleviate train traffic congestion; and WHEREAS, as a result of this project, multiple electrical, water and sewer utility crossings by the City across the BNSF right-of-way will need to be modified to accommodate the track improvement project at Mile Post 94.41, Mile Post 96.34, Mile Post 96.19, Mile Post 96.03 and Mile Post 96.26; and WHEREAS, the BNSF entered into an Agreement to pay for the modifications; and WHEREAS, the contract requires the City’s passage of supplemental agreements for each crossing; and WHEREAS, modifications include either relocating utilities or encasement of the utilities to current railroad crossing standards. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Supplemental Agreements presented at this meeting are hereby approved, and that the Mayor is authorized to sign the agreements on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 185 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G11 #2012-185 - Approving Use of Land Owned by the City of Grand Island for the Trail to be Constructed on the State Street and Capital Avenue Connector Trail Project Staff Contact: John Collins, Public Works Director Grand Island Council Session - 7/24/2012 Page 186 / 290 Council Agenda Memo From:Scott Griepenstroh, Project Manager Meeting:July 24, 2012 Subject:Approving Use of Land Owned by the City of Grand Island for the Trail to be Constructed on the State Street and Capital Avenue Connector Trail Project Item #’s:G-11 Presenter(s):John Collins, Public Works Director Background The Federal-aid Transportation Enhancement (TE) Program provides funding to construct and restore transportation infrastructure that are not eligible to be funded through other programs. TE activities offer funding opportunities to help expand transportation choices and enhance the transportation experience. Project types eligible for this funding are hike/bike trails, historic preservation, and scenic or historic byways. This State Street to Capital Avenue Connector Trail Project will construct a 0.5 mile, 10' wide concrete recreational trail for bicycle and pedestrian use in northwest Grand Island. This project will begin on the State Street Trail 0.25 mile west of US Highway 281, extend north within City right-of-way along the west side of the Moores Creek Drainway, and end at the west end of the concrete trail that was recently completed along Capital Avenue under project STPAA-5436 for the Eagle Scout Trail. The State Street and Capital Connector Trail will be constructed on existing City property that was acquired in 1984 for the Moore’s Creek Drainway. Additional 12’ wide easements will be acquired on the west side of the City property for construction of a small ditch and area inlets. Discussion As per guidance from the Nebraska Department of Roads, a critical component of any federal aid public transportation project are the land rights needed to facilitate the construction, operation and maintenance of the project in accordance with Federal Highway Administration 23 Code of Federal Regulations 1.23(a), which states “Interest Grand Island Council Session - 7/24/2012 Page 187 / 290 to be acquired. The State shall acquire rights-of-way of such nature and extent as are adequate for the construction, operation, and maintenance of a project.” These rights ensure that the facility that is developed with Federal Transportation funds has a legal right to exist and cannot be displaced by a competing land use, and a return on the investment will be realized. Property that is currently owned by the City of Grand Island that was initially purchased for a purpose other than a hike/bike trail cannot be readily used for this project, without execution of the Declaration of Use document. The purpose or use consistent with the requirements of the project need to be established and of record by execution of a “Declaration as to Use” resolution. The duration the declaration is to be in effect is a minimum of 25 years from completion of construction. Once approved, a copy of the “Declaration as to Use” resolution must be placed on file at the Register of Deeds office. Approval of Environmental Documents was received in January. Approval of 90% Plans and acquisition of permanent easements are anticipated to be completed in the next three months. Construction of this project is anticipated to begin in spring of 2013. 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 use of a portion of land owned by the City of Grand Island for the construction, operation and maintenance of a Hike/Bike Trail. Sample Motion Move to approve the agreement. Grand Island Council Session - 7/24/2012 Page 188 / 290 Grand Island Council Session - 7/24/2012 Page 189 / 290 Grand Island Council Session - 7/24/2012 Page 190 / 290 Grand Island Council Session - 7/24/2012 Page 191 / 290 Grand Island Council Session - 7/24/2012 Page 192 / 290 Grand Island Council Session - 7/24/2012 Page 193 / 290 Declarations as to Use A critical component of any federal aid public transportation project are the land rights needed to facilitate the construction operation and maintenance of the project in accordance with Federal Highway Administration 23 CFR 1.23(a) – “Interest to be acquired – The State* shall acquire rights-of- way of such nature and extent as are adequate for the construction, operation, and maintenance of a project”. These rights ensure that the transportation facility, and the various components and features that they are comprised of, have a legal right to exist on the land and so that they cannot be displaced by a competing land use before a return on the investment has been realized. The transportation facility itself primarily consists of public roads, sidewalks, and multi use trails. Permanent supporting features of the transportation facility typically include items such as culverts, storm sewers, embankments, ditches, curb ramps, bridges, street lighting, traffic signals, sight distance, or any other items that if altered or removed could jeopardize the continued operation and maintenance of the facility as intended. Permanent land rights encompassing all of these features must be secured by, or made available to the sponsoring agency to ensure the transportation facility can meet its objectives and be eligible for federal aid. *Note - The term “State” in this regulation is generally accepted to mean the public agency who has the jurisdictional authority for the construction, operation, and maintenance of the facility either by being the project sponsor, by operation of law, or through agreements or other documents legally establishing this role. Because the transportation facility is a public use feature it must reside on public right of way or land that is dedicated for this use. Land that was previously purchased, platted, or otherwise dedicated for public right of way is available for the projects use. Similarly, permanent easement rights that are owned or are otherwise made available to the sponsoring agency may be used for the purpose for which they were acquired for. Rights for any additional areas that are required for the project will need to be acquired from the owning party through the standard design-appraisal-acquisition process or other acceptable means. At times the transportation facility, or a supporting feature of it, will require the use of property that is currently owned by the local public agency project sponsor. This land is available for project use if a purpose consistent with the project needs was either identified as part of the purchase, or was later identified through a declaration or dedication. Land that was simply purchased in the sponsoring agencies name, or for a purpose that is not consistent with the transportation projects needs, cannot readily be used for the project as is. Examples of this situation typically occur when the local public agency simply purchased the property in their name for some possible future use, because it became available on the market, or it was acquired for a non transportation use such as a park, school, library, city office, pool, retirement home, sports complex, maintenance yard, cemetery, etc. Because the project sponsor already has the ownership in these lands only the purpose or use consistent with the requirements of the project needs to be established and of record. This can be done by either platting Grand Island Council Session - 7/24/2012 Page 194 / 290 or otherwise establishing the area as public ROW through the local process, or through the execution of a “Declaration as to Use” resolution by the sponsoring agency. The Declaration as to Use resolution option basically establishes an easement only for the projects specific needs on the sponsoring agency’s land. This “Declaration as to Use” is processed by the sponsoring agency in accordance with their resolution execution procedures. Once approved a copy must be placed on file at the register of deeds office. This must be accomplished in order for a right of way certificate can be issued for the project. The resolution language must indicate the legal description that geographically identifies the location of the land, the owner of the land, what is its currently used for (if applicable), who currently administers the land (if applicable), the portion that will be declared for transportation use, the project number(s) the transportation facility is being built under (State’s and LPA’s if used), a reference to Federal Highway Administration 23 CFR 1.23(a), and length of duration declaration is in affect (perpetuity or minimum of 25 years from completion of its construction). The portion that is to be declared for transportation use is usually identified on a survey plat attached as an exhibit, or geographically described in the Declaration as to Use document itself. If the declaration is for a specific project feature that can be readily identified in the field such as a sidewalk or bicycle pedestrian trail an attached exhibit showing the location of the feature can be used instead of the survey plat or geographic description. In this case the reference to the project number(s) and Federal Highway Administration 23 CFR 1.23(a) establishes that any areas necessary for the construction, operation, and maintenance of the transportation facility, to including its supporting components and features, are included in the declaration. Example “Declaration as to Use” language is available from the Nebraska Department of Roads. These examples may be modified to reflect any language or formatting specific to the LPA. Draft Declaration language should be reviewed and approved by Nebraska Department of Roads officials prior to the LPA passing the resolution to be sure it meets the project needs. Grand Island Council Session - 7/24/2012 Page 195 / 290 Grand Island Council Session - 7/24/2012 Page 196 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-185 WHEREAS; the City of Grand Island, Nebraska is the owner of THE SOUTHERLY TWO THOUSAND, SIX HUNDRED AND SEVEN (2,607) FEET OF THE EASTERN NINETY (90) FEET OF THE NORTHWEST QUARTER (NW 1/4) OF SECTION TWELVE (12), TOWNSHIP ELEVEN (11) NORTH, RANGE TEN (10) WEST OF THE 6TH P.M., CONTAINING 5.39 ACRES, MORE OR LESS, Hall County, Nebraska, and WHEREAS; said SOUTHERLY TWO THOUSAND, SIX HUNDRED AND SEVEN (2,607) FEET OF THE EASTERN NINETY (90) FEET OF THE NORTHWEST QUARTER (NW 1/4) OF SECTION TWELVE (12), TOWNSHIP ELEVEN (11) NORTH, RANGE TEN (10) WEST OF THE 6TH P.M., CONTAINING 5.39 ACRES, MORE OR LESS, Hall County, Nebraska, is now being occupied by the City of Grand Island for the construction, operation and maintenance of the Moore’s Creek Drainway outfall ditch, and WHEREAS; the City of Grand Island wishes to construct, operate and maintain a Hike/Bike Trail across a portion of said property, and WHEREAS; the Hike/Bike Trail is to be constructed as part of Nebraska Department of Roads project ENH-40(59), Control Number 42650, and identified as State Street - Capital Avenue Connector Trail, and WHEREAS; To comply with Federal Highway Administration 23 CFR 1.23(a) – “Interest to be acquired – The State shall acquire rights-of-way of such nature and extent as are adequate for the construction, operation, and maintenance of a project,” it is necessary for the City of Grand Island to declare that a portion of said property shall be used for the construction, operation, and maintenance of a Hike/Bike Trail for a period of no less than twenty five years from the completion of its construction, and NOW, THEREFORE, BE IT RESOLVED; THAT THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, hereby approves the use of a portion of said land owned by the City of Grand Island for the construction, operation and maintenance of a Hike/Bike Trail as shown on Exhibit “A” and as aligned in project plans and specifications for Nebraska Department of Roads project ENH-40(59), Control Number 42650, and identified as State Street - Capital Avenue Connector Trail for a period of no less than twenty five years from the completion of its construction. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 197 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G12 #2012-186 - Approving Bid Award for HVAC Renovation at City Hall Staff Contact: Craig Lewis Grand Island Council Session - 7/24/2012 Page 198 / 290 Council Agenda Memo From:Craig A. Lewis, Building Department Director Meeting:July 24, 2012 Subject:Request for Proposals for the Renovations of the Heating and Air Conditioning Systems at City Hall. Item #’s:G-13 Presenter(s):Craig Lewis Background On June 8, 2012 the City of Grand Island issued a request for proposal for renovations to the heating and air conditioning system at City Hall. The heating and air conditioning system is in need of renovations to the control system, replacement of the controls on variable air volume boxes, modifications to heat devices on the first floor, installation of variable speed controls for selected fan motors, and temperature control sequencing and automation compatible with existing systems. Six proposal were received on June 28, 2012 ranging in cost from $120,132.59 to $174,950.00 Discussion The proposals received were: Johnson Controls Control Services, Inc. Omaha, NE. -- $124,915.00 Omaha, NE. -- $162,133.00 Honeywell Bld. Sol. Engineered Controls Omaha, NE. -- $120,132.59 Lincoln, NE. -- $174,950.00 Integrated Controls Aidin Electric, LLC. Lincoln, BE. -- $129,100.00 Grand Island, NE. -- $163,125.00 Honeywell Building Solutions of Omaha submitted the lowest responsive proposal and additionally identified alternatives to installing reheat devices on the first floor and provided for the based quote of $105,620.52 with an option of $14,512.07 for the reheats, Grand Island Council Session - 7/24/2012 Page 199 / 290 bringing the total to $120,132.59. The alternative proposal has merit and I would suggest we approve the base proposal of $105,620.52. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the proposal from Honeywell Building Solutions. 2.Disapprove or /Deny all of the submitted proposals. 3.Modify the proposals to meet the wishes of the Council 4.Table the issue Recommendation City Staff recommends that the Council approve the request for proposal submitted by Honeywell Building Solutions for $105,620.52. Sample Motion Move to approve the proposal submitted by Honeywell Building Solutions for the amount of $105,620.52 and authorize the Mayor to sign the proposal. Grand Island Council Session - 7/24/2012 Page 200 / 290 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR HVAC RENOVATION CITY HALL RFP DUE DATE:June 28, 2012 at 4:00 p.m. DEPARTMENT:Building PUBLICATION DATE:June 8, 2012 NO. POTENTIAL BIDDERS:3 SUMMARY OF PROPOSALS RECEIVED Johnson Controls Control Services, Inc. Omaha, NE Omaha, NE Honeywell Engineered Controls Omaha, NE Lincoln, NE Integrated Controls Aidin Electric, LLC Lincoln, NE Grand Island, NE cc:Craig Lewis, Building Department Director Brian Henke, Bldg. Maintenance Jason Eley, Purchasing Agent Jaye Monter, Finance Director P1565 Grand Island Council Session - 7/24/2012 Page 201 / 290 Grand IslandCouncil Session - 7/24/2012Page 202 / 290 Grand IslandCouncil Session - 7/24/2012Page 203 / 290 Grand IslandCouncil Session - 7/24/2012Page 204 / 290 Grand IslandCouncil Session - 7/24/2012Page 205 / 290 Grand IslandCouncil Session - 7/24/2012Page 206 / 290 Grand IslandCouncil Session - 7/24/2012Page 207 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-186 WHEREAS, The City Of Grand Island published a request for proposal for the renovation of the heating and air conditioning system in City Hall , and WHEREAS, Six proposals were received and evaluated, and WHEREAS, The City has determined the most beneficial proposal for the renovations and replacement of components was submitted by Honeywell Building Solutions of Omaha, Nebraska , NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be authorized to sign the proposal with Honeywell Building Solutions in the amount of $105,620.52 for the renovations of the heating and air conditioning system in City Hall at 100 E. 1st Street Grand Island, Nebraska. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 208 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G13 #2012-187 - Approving Physio-Control Monitors Maintenance Contract Staff Contact: Russ Blackburn Grand Island Council Session - 7/24/2012 Page 209 / 290 Council Agenda Memo From:EMS Division Chief Russ Blackburn Meeting:July 24, 2012 Subject:Physio-Control Monitors Maintenance Contract Item #’s:G-13 Presenter(s):EMS Division Chief Russ Blackburn Background For the past 5 years the City has entered into an agreement with Physio Control for an agreement for service of the Grand Island Fire Department heart monitors. The contract covers monitors not still under warranty, and eliminates annual increases for this service by committing to a five year agreement. That contract expired June 1, 2012. The hold up on the contract was the GIFD was changing out 7 LifePak 12s for 7 LifePak 1000s. The new LP1000s have been received and are in service now so the contract could be finished. The LP1000s are easier to maintain and therefore the maintenance contract has decreased from $44,869.53 for the previous five years to $30,222.00 for the next five years. Discussion The Life-Pak 12 Cardiac monitor allows the Fire Department’s paramedics and EMTs to defibrillate a patient’s heart, that has stopped beating, as an Automatic External Defibrillator. The Life-Pak 12 allows our paramedics to see the cardiac rhythm in 3 lead or 12 lead format, get pulse oxygenation readings, monitor end tidal CO2 levels, take automated blood pressures, mark time during treatment, record events during cardiopulmonary resuscitation efforts, and manually defibrillate patients. These monitors are carried on all of our ambulances. The LifePak 1000s are on the engines and ladder. The 1000s can defibrillate in either an automatic mode for EMTs or be put in manual mode by the paramedics. They can also display a lead two tracing of a patients EKG. They do not have the other capabilities but are enough to treat the patient until the ambulance arrives. Having the monitors inspected annually and repaired when needed reduces the City of Grand Island’s liability for the performance of these monitors. Repairs are done at no Grand Island Council Session - 7/24/2012 Page 210 / 290 additional cost, saving the City money over the duration of the contract. When a monitor need repairs Physio sends a replacement monitor to use while the repairs are completed, not reducing our available assets. 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 contract as submitted. Sample Motion Move to approve the contract with Physio Control. Grand Island Council Session - 7/24/2012 Page 211 / 290 Grand Island Council Session - 7/24/2012 Page 212 / 290 Grand Island Council Session - 7/24/2012 Page 213 / 290 Grand Island Council Session - 7/24/2012 Page 214 / 290 Grand Island Council Session - 7/24/2012 Page 215 / 290 Grand Island Council Session - 7/24/2012 Page 216 / 290 Grand Island Council Session - 7/24/2012 Page 217 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-187 WHEREAS, the City of Grand Island Fire Department utilizes seven LifePak-12 cardiac monitors and seven LifePak-1000 cardiac monitors to care for our patients with cardiac symptoms; and WHEREAS, the cardiac monitors have to be inspected yearly for proper performance as protection from liability; and WHEREAS, the LP-12s are no longer under warranty; and WHEREAS, the five year maintenance contract with Physio-Control specifies yearly inspections and no additional cost maintenance for the term of the contract. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, to enter into the 5 year maintenance agreement with Physio-Control. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to sign such agreements on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 218 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G14 #2012-188 - Approving Budget Amendment for Neighborhood Stabilization Program Grant This item relates to the aforementioned Public Hearing item E-2. Staff Contact: Marco Floreani Grand Island Council Session - 7/24/2012 Page 219 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-188 WHEREAS, in 2009, the City of Grand Island was awarded a $993,712 Neighborhood Stabilization Program Grant from the Nebraska Department of Economic Development for property acquisition, demolition, redevelopment of new housing, housing administration, and general administration; and WHEREAS, in September 2010, the Department of Economic Development awarded an extra $190,000 to the City for additional demolition and redevelopment; and WHEREAS, the project has enabled the City to demolish 11 blighted structures and will fund construction of 8 new houses on a portion of the lots; and WHEREAS, the actual New Construction costs for the redevelopment of demolished properties are less than originally budgeted for and the Clearance/Demolition costs have exceeded the original budgeted amount; and WHEREAS, reallocating funds from New Construction to Clearance/Demolition will allow the city to demolish an additional blighted, vacant, owner property; and WHEREAS, required documents for the budget amendment request have been prepared and must be submitted to the Nebraska Department of Economic Development for authorization. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: The City of Grand Island, Nebraska is hereby authorized to request a budget amendment for Neighborhood Stabilization Program Grant (09-3N-11). - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 220 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item G15 #2012-189 - Approving Authorization to Apply for Additional Disaster Prevention Funds Staff Contact: Marco Floreani Grand Island Council Session - 7/24/2012 Page 221 / 290 Council Agenda Memo From:Marco Floreani, Community Development Meeting:July 24, 2012 Subject:Approving Authorization to Apply for Additional Disaster Recovery Grant Funds Item #’s:G-15 Presenter(s):Marco Floreani, Community Development Background In September 2009, the City of Grand Island was awarded a Disaster Recovery Grant (#08-DPI- 005) for $803,500, plus $40,175 in General Administration, for installation of a sanitary sewer interceptor and sewer main collection system upgrade to address an urgent community development need that occurred as a result of high ground water levels and flooding between May 22 and June 24, 2008. The project encompasses two southern areas of Grand Island to improve protection of homes from future sanitary sewer backups. Total project cost, including Administration, is projected at $1,003,675. The City has budgeted $160,000 for the balance of project costs above the grant award. Disaster Recovery Program funds are to be used only for activities related to disaster relief, long- term recovery, and restoration of infrastructure in areas covered by the Federal Emergency Management agency (FEMA) declaration of major disaster 1770-DR. Only damages occurring during the incident period from May 22, 2008 to June 24, 2008 are considered. Discussion The Nebraska Department of Economic Development has notified City Staff of additional funds for Disaster Recovery Funding. The total amount of additional funding has yet to be determined, but Department of Economic Development Staff has instructed interested communities to submit a letter of interest for the returned funds. The City of Grand Island, Nebraska, is an eligible unit of the Disaster Recovery Funding authorized to file an application under the Community Development Block Grant Program. This Grand Island Council Session - 7/24/2012 Page 222 / 290 additional funding will provide administrative costs and help fund the develop of a additional gravity collection sewer infrastructure preventive maintenance construction projects in the Disaster Recovery Area. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve a resolution granting authorization apply for additional Disaster Recovery Grant Funds. 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 Approving authorization to apply for additional Disaster Recovery Grant Funds. Sample Motion Move to approve authorization to proceed with the formulation of any and all contracts, documents or other memoranda between the City of Grand Island and the Nebraska Department of Economic Development so as to affect acceptance of the grant application #08-DPI-005, Disaster Recovery Grant. Grand Island Council Session - 7/24/2012 Page 223 / 290 G CITYOF RAND ISLAND July 10, 2012 Merci Suarez Nebraska Department of Economic Development Community & Rural Development PO Box 94666 Lincoln, NE 68509 Public Works Department Working Together for a BetterTomorrow. Today. RE: Community Development Block Grant-Disaster Program Recovery Grant #08-DPI-005 Project No.: Lift Station No.7 Repairs-2011-S-1, Lift Station No.7 Improvements-2011-S-1A City of Grand Island, Nebraska, Hall County Venue: Procurement and guideline review in acquiring professional consulting engineering services. Miss Suarez City staff is coordinating a public hearing on July 24, 2012 in regards to applying for additional Disaster Relief Funding as discussed in the June 27, 2012 conference call. City staff has reviewed Chapter 7 ofthe Administration Manual for procurement in professional consulting services and would entertain Black & Veatch's, and local sub-consultant Olsson Associates as eligible consultants. You're accepting review comments would be appreciated. Please find timeline and public document archives in relating to the procurement in professional consulting engineering services for Lift Station No.7 projects. On May 23, 2011 a public advertisement was published in the Grand Island Daily Independent for Request for Qualifications for professional engineering firms' submission. The project, planned thru comprehensive, and cost of service planning to provide rehabilitation within the Wastewater collection and treatment facilities systems, based on a Wastewater rate study. https:ljwww.grand- island.com/modules/ShowDocument.aspx?documentid=3356 On June 7, 2011 three {3) professional engineering firms submitted performance and qualification submittals; Black & Veatch, Kansas City Missouri; CH2M Hill, Denver Colorado; and HDR Engineering, Omaha Nebraska. https://www.grand-island.com/modules/ShowDocument.aspx?documentid=3410 On June 30, 2011 the selection committee received formal presentation by all responding engineering firms. On October 4, 2011 the Manger of Engineering Services presented in City Council Study Session forum; Discussion of Agreement for Professional Engineering Services Entitled "Wastewater Treatment Plant and Collection System Rehabilitation". https://agendamanagement.blob.core.windows.net/agenda- 1000-public/meeting/969/20111004--2.pdf City Hall • 100 East First Street • Box 1968 • Grand Island, Nebraska 68802-1968 (308) 385-5444, Ext. 260 • Fax: (308) 385-5488 • Emergency: (308) 385-5000 • www.grand-island.com Grand Island Council Session - 7/24/2012 Page 224 / 290 On October 11, 2011 the Public Work Director presented in City Council regular meeting; Agreement for Professional Engineering Services entitled "Wastewater Treatment Plant and Collectiori Systems Rehabilitation". https:ljagendamanagement.blob.core.windows.net/agenda-1000- public/meeting/773/20111011-11.pdf On April 24, 2012 the Public Work Director presented in City Council regular meeting; Amendment No. 1 to the Agreement for Professional Engineering Services entitled "Wastewater Treatment Plant and Collection Systems Rehabilitation". https://agendamanagement.blob.core.windows.net/agenda-1000- public/meeting/786/20120424-G12 .pdf We appreciate your assistance in this project. Sincerely, Terry Brown P.E. Manger of Engineering·Services Grand Island Council Session - 7/24/2012 Page 225 / 290 July 10, 2012 Merci Suarez Nebraska Department of Economic Development Community & Rural Development PO Box 94666 Lincoln, NE 68509 RE: Community Development Block Grant – Disaster Program Recovery Grant #08-DPI-005 Project No.: Lift Station No.7 Repairs – 2011-S-1, Lift Station No.7 Improvements – 2011-S-1A City of Grand Island, Nebraska, Hall County Venue: Procurement and guideline review in acquiring professional consulting engineering services. Miss Suarez City staff is coordinating a public hearing on July 24, 2012 in regards to applying for additional Disaster Relief Funding as discussed in the June 27, 2012 conference call. City staff has reviewed Chapter 7 of the Administration Manual for procurement in professional consulting services and would entertain Black & Veatch’s, and local sub-consultant Olsson Associates as eligible consultants. You’re accepting review comments would be appreciated. Please find timeline and public document archives in relating to the procurement in professional consulting engineering services for Lift Station No. 7 projects. On May 23, 2011 a public advertisement was published in the Grand Island Daily Independent for Request for Qualifications for professional engineering firms’ submission. The project, planned thru comprehensive, and cost of service planning to provide rehabilitation within the Wastewater collection and treatment facilities systems, based on a Wastewater rate study. https://www.grand- island.com/modules/ShowDocument.aspx?documentid=3356 On June 7, 2011 three (3) professional engineering firms submitted performance and qualification submittals; Black & Veatch, Kansas City Missouri; CH2M Hill, Denver Colorado; and HDR Engineering, Omaha Nebraska. https://www.grand-island.com/modules/ShowDocument.aspx?documentid=3410 On June 30, 2011 the selection committee received formal presentation by all responding engineering firms. On October 4, 2011 the Manger of Engineering Services presented in City Council Study Session forum; Discussion of Agreement for Professional Engineering Services Entitled "Wastewater Treatment Plant and Collection System Rehabilitation". https://agendamanagement.blob.core.windows.net/agenda- 1000-public/meeting/969/20111004--2.pdf Grand Island Council Session - 7/24/2012 Page 226 / 290 On October 11, 2011 the Public Work Director presented in City Council regular meeting; Agreement for Professional Engineering Services entitled “Wastewater Treatment Plant and Collection Systems Rehabilitation”. https://agendamanagement.blob.core.windows.net/agenda-1000- public/meeting/773/20111011-I1.pdf On April 24, 2012 the Public Work Director presented in City Council regular meeting; Amendment No. 1 to the Agreement for Professional Engineering Services entitled “Wastewater Treatment Plant and Collection Systems Rehabilitation”. https://agendamanagement.blob.core.windows.net/agenda-1000- public/meeting/786/20120424-G12.pdf We appreciate your assistance in this project. Sincerely, Terry Brown P.E. Manger of Engineering Services Grand Island Council Session - 7/24/2012 Page 227 / 290 Approved as to Form ¤ ___________ July 24, 2012 ¤ City Attorney R E S O L U T I O N 2012-189 WHEREAS, The Nebraska Department of Economic Development has notified City Staff in additional funds be returned by other communities in Disaster Relief Funding, and WHEREAS, The City of Grand Island, Nebraska, is an eligible unit of the Disaster Relief Funding authorized to file an application under the Community Development Block Grant Program; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be and hereby is authorized to proceed with the formulation of any and all contracts, documents or other memoranda between the City of Grand Island and the Nebraska Department of Economic Development for acceptance of the grant application. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 228 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I1 #2012-190 - Approving FY 2012-2013 Annual Budget for Business Improvement District #6, 2nd Street from Garfield Avenue to Eddy Street and Setting Date for Board of Equalization Staff Contact: Jaye Monter Grand Island Council Session - 7/24/2012 Page 229 / 290 Council Agenda Memo From:Jaye Monter, Finance Director Meeting:July 24, 2012 Subject:Approving FY 2012-2013 Annual Budget for Business Improvement District #6, Second Street, and setting Date For Board of Equalization Item #’s:I-1 Presenter(s):Jaye Monter, Finance Director Background On September 9, 2008, the City Council adopted Ordinance #9186 creating Business Improvement District (BID) #6, Second Street. The creating ordinance established the purpose of the District, described the boundaries, and established that real property in the area that would be subject to a special assessment to support the purposes of the District. The creating Ordinance requires that a proposed budget for the District be approved by the BID Board and forwarded to the City Council for consideration. On June 30, 2012 the BID #6 Board met and approved the 2012-2013 Budget which provides for special assessments in the amount of $4.50 per front footage for a total of $32,148 for the 7,144 front footage. Discussion The majority of the proposed appropriation budget of $96,500 is to be used for the maintenance of frontage areas along the Second Street portion of their district. The appropriations for the 2012-2013 also include a City fee of $1,500 for accounting services. A copy of the proposed 2012-2013 budget is attached for review. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the 2012-2013 Budget for BID #6 and set the date for the Board of Equalization. Grand Island Council Session - 7/24/2012 Page 230 / 290 2.Modify the budget and/or reschedule the Board of Equalization. Recommendation City Administration recommends that the Council approve the 2012-2013 Budget for BID #6 and set the date of September 11, 2012 for the Board of Equalization. Notice of the Hearing and proposed assessments will be published according to State Statutes. Sample Motion Move to approve the 2010-2011 Budget for BID #6 and set the date of September 11, 2012 for the Board of Equalization. Grand Island Council Session - 7/24/2012 Page 231 / 290 Created for 5 years through 09/30/2013 BUISNESS IMPROVEMENT DISTRICT #6 - SECOND STREET 5 Year total costs of $275,000 FY 2012-2013 BUDGET Actual Revenue Thru 09/30/2011 114,725 Budgeted Revenue Thru 09/30/2013 164,312 2009 2010 2011 2012 2012 2013 Actual Actual Actuals Budget Projected Budget Front Footage 7,144 7,144 7,144 7,144 7,144 7,144 Levy (Per Foot)$6.00 $6.00 $4.50 $2.00 $2.00 $4.50 REVENUE 94011416 Account 74140 Special Asessments 42,447 38,001 31,570 14,288 13,742 32,148 74787 Interest Revenue 84 124 123 26 74795 Other Revenue - - 2,376 1,000 - 1,000 TOTAL REVENUE 42,531 38,125 34,069 15,288 13,768 33,148 APPROPRIATIONS Account 85213 Contract Services 5,145 6,892 11,356 17,000 15,000 69,900 85241 Computer Services - - - - 85245 Printing & Binding Services 98 81 74 300 100 250 85249 Snow & Ice Removal - - - - - 85290 Other Professional Services - 1,500 1,500 1,500 2,000 1,500 85305 Utility Services - - 258 2,200 - 1,000 85390 Other Property Services - - - - - - 85413 Postage 248 229 214 250 250 250 85416 Advertising - - - 1,500 - - 85419 Legal Notices 833 589 518 500 600 600 85422 Dues & Subscriptions - - - - - 85428 Travel & Training - - - - - 85490 Other Expenditures - - - - - - 85505 Office Supplies 5 - 9 250 - - 85560 Trees & Shrubs 2,472 - 1,304 2,000 - - 85590 Other General Supplies - - - 500 - - 85608 Land Improvements - 3,758 4,282 - 6,000 23,000 TOTAL OPERATING EXPENSE 8,802 13,049 19,514 26,000 23,950 96,500 ANNUAL EXCESS/(LOSS)33,730 25,076 14,555 (10,712) (10,182) (63,352) Beginning Cash Balance - 33,730 58,898 73,544 73,544 63,362 Revenues 42,531 38,125 34,069 15,288 13,768 33,148 Expenditures 8,802 13,049 19,514 26,000 23,950 96,500 Ending Cash Balance 33,730 58,898 73,544 62,832 63,362 10 Grand Island Council Session - 7/24/2012 Page 232 / 290 Grand IslandCouncil Session - 7/24/2012Page 233 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-190 WHEREAS, the City Council has considered the proposed budget of the Business Improvement District No. 6 for the fiscal year 2012-2013; and WHEREAS, the City has received the assessed values of the individual properties within Business Improvement District No. 6 as shown in the office of the Hall County Assessor in effect on the first day of January, 2012; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: 1.The budget for Business Improvement District No. 6 is hereby considered. 2.A proposed assessment schedule shall be prepared. 3.A hearing before the City Council sitting as a Board of Equalization on the proposed assessments shall be held on September 11, 2012 at 7:00 p.m. in the City Council chambers of City Hall 100 East First Street, Grand Island NE. 4.Notice of hearing shall be published once each week for three consecutive weeks in accordance with the Business Improvement District Act. 5.Notice of hearing shall be mailed to all property owners of Business Improvement District No. 6 by U.S. Mail, postage prepaid - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 234 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I2 #2012-191 - Approving FY 2012-2013 Annual Budget for Business Improvement District #7, South Locust Street from Stolley Park Road to Highway 34 and Setting Date for Board of Equalization Staff Contact: Jaye Monter Grand Island Council Session - 7/24/2012 Page 235 / 290 Council Agenda Memo From:Jaye Monter, Finance Director Meeting:July 24, 2012 Subject:Approving FY 2012-2013 Annual Budget for Business Improvement District #7, South Locust Street from Stolley Park Road to Highway 34, and setting Date for Board of Equalization Item #’s:I-2 Presenter(s):Jaye Monter, Finance Director Background On September 9, 2008, the City Council adopted Ordinance #9187 creating Business Improvement District (BID) #7, South Locust Street from Stolley Park Road to Highway 34. The creating ordinance establishes the purpose of the District, describes the boundaries, and establishes that real property in the area would be subject to a special assessment to support the purposes of the District. The creating Ordinance requires that a proposed budget for the District be approved by the BID Board and forwarded to the City Council for consideration. On June 14, 2012 the BID #7 Board met and approved the 2012-2013 Budget which provides for special assessments in the amount of $4.88 per front footage for a total of $47,892 for the 9,814 front footage. Discussion The majority of the proposed appropriations budget of $56,645 is to be used for the maintenance of frontage areas along the South Locust Street portion of their district. The appropriations for 2012-2013 also include a City fee of $875 for accounting services. A copy of the proposed 2012-2013 budget is attached for review. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the 2012-2013 Budget for BID #7 and set the date for the Board of Equalization. Grand Island Council Session - 7/24/2012 Page 236 / 290 2.Modify the budget and/or reschedule the Board of Equalization. 3.Recommendation City Administration recommends that the Council approve the 2012-2013 Budget for BID #7 and set the date of September 13, 2012 for the Board of Equalization. Notice of the Hearing and proposed assessments will be published according to State Statutes. Sample Motion Approve the 2012-2013 Budget for BID #7 and set the date of September 11, 2012 for the Board of Equalization. Grand Island Council Session - 7/24/2012 Page 237 / 290 Grand IslandCouncil Session - 7/24/2012Page 238 / 290 Created for 5 years through 09/30/2013 BUSINESS IMPROVEMENT BOARD #7 5 Year total costs of $250,000 STOLLEY PARK RD TO HWY 34 Actual Revenue Thru 09/30/2011 133,700 FY 2012-2013 Budgeted Revenue Thru 09/30/2013 250,001 2009 2010 2011 2012 2012 2013 Actual Actuals Actuals Budget Projected Budget Front Footage 9,814 9,814 9,386 9,814 9,814 9,814 $4.75 $4.75 $5.33 $6.00 $6.00 $4.88 Budgeted Revenue 46,615 46,615 50,027 58,882 47,861 REVENUE 94011412 Account 74140 Special Asessments 42,862 44,672 44,368 58,883 57,840 47,892 74787 Interest Revenue 61 37 39 10 74795 Other Revenue 1,662 0 0 0 0 0 TOTAL REVENUE 44,585 44,709 44,407 58,883 57,850 47,892 APPROPRIATIONS Account 85213 Contract Services 25,956 29,320 28,743 31,200 29,000 32,000 85245 Printing & Binding Services 105 73 83 - - - 85249 Snow & Ice Removal 1,138 2,863 1,800 2,000 950 2,000 85290 Other Professional & Tech.- - - - 85305 Utility Services 3,945 6,544 6,767 6,945 7,000 7,000 85319 Repair & Maint - Land Improv 9,441 1,587 7,689 7,500 19,000 9,300 85325 Repair & Maint - M & E - - - - 85390 Other Property Services - - - - - 85413 Postage 156 136 169 250 250 250 85416 Advertising - - - - - - 85419 Legal Notices 598 413 429 750 900 500 85490 Other Expenditures 15,823 75 - 3,000 - - 85505 Office Supplies - - - 100 - - 85560 Trees & Shrubs 2,100 460 - 4,000 1,000 - 85590 Other General Supplies - - - - - 85608 Land Improvements - - 900 900 - TOTAL OPERATING EXPENSE 59,262 41,470 45,680 56,645 59,000 51,050 ANNUAL EXCESS/(LOSS)(14,677)3,238 (1,273)2,238 (1,150)(3,158) Beginning Cash Balance 17,301 2,532 5,679 4,406 4,406 3,255 Revenues 44,585 44,709 44,407 58,883 57,850 47,892 Expenditures 59,262 41,470 45,680 56,645 59,000 51,050 Ending Cash Balance 2,532 5,679 4,406 6,643 3,255 97 Grand Island Council Session - 7/24/2012 Page 239 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-191 WHEREAS, the City Council has considered the proposed budget of the Business Improvement District No. 7 for the fiscal year 2012-2013; and WHEREAS, the City has received the assessed values of the individual properties within Business Improvement District No. 7 as shown in the office of the Hall County Assessor in effect on the first day of January, 2012; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: 1.The budget for Business Improvement District No. 7 is hereby considered. 2.A proposed assessment schedule shall be prepared. 3.A hearing before the City Council sitting as a Board of Equalization on the proposed assessments shall be held on September 11, 2012 at 7:00 p.m. in the City Council chambers of City Hall 100 East First Street, Grand Island NE. 4.Notice of hearing shall be published once each week for three consecutive weeks in accordance with the Business Improvement District Act. 5.Notice of hearing shall be mailed to all property owners of Business Improvement District No. 7 by U.S. Mail, postage prepaid - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 240 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I3 #2012-192 - Approving FY 2008-2009 Annual Budget for Business Improvement District #8, Downtown and Setting Date for Board of Equalization Staff Contact: Jaye Monter Grand Island Council Session - 7/24/2012 Page 241 / 290 Council Agenda Memo From:Jaye Monter, Finance Director Meeting:July 24, 2012 Subject:Approving FY 2012-2013 Annual Budget for Business Improvement District #8, Downtown, and setting Date for Board of Equalization Item #’s:I-3 Presenter(s):Jaye Monter, Finance Director Background On August 26, 2009, the City Council adopted Ordinance #9180 creating Business Improvement District (BID) #8, Downtown. The creating ordinance established the purpose of the District, described the boundaries, and established that real property in the area would be subject to a special assessment to support the purposes of the District. The creating Ordinance requires that a proposed budget for the District be approved by the BID Board and forwarded to the City Council for consideration. On July 19, 2012 the BID #8 Board met and approved the 2012-2013 budget which provides for special assessments in the amount of $90,000. Discussion In this district, assessments are paid by property owners based on the valuation of land and real property in the district as of January 1 of the current year. No personal property is figured into the assessment. Owners are billed for the assessment on October 1 of each fiscal year. The total taxable value for the district as of January 1, 2012 was $31,473,795 which for budgeted assessments of $90,000 gives a levy of .285952 per $100 of real property. Downtown Beautification, Retention and Recruitment, and Maintenance are the areas of proposed work to be performed by the BID. The appropriations for 2012-2013 also include a City fee of $4,000 for accounting services. A copy of the proposed 2012- 2013 budget is attached for review. Grand Island Council Session - 7/24/2012 Page 242 / 290 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the 2012-2013 Budget for BID #8 and set the date for the Board of Equalization. 2.Modify the budget and/or reschedule the Board of Equalization. Recommendation City Administration recommends that the Council approve the 2012-2013 Budget for BID #8 and set the date of September 11, 2012 for the Board of Equalization. Notice of the Hearing and proposed assessments will be published according to State Statutes. Sample Motion Approve the 2011-2012 Budget for BID #8 and set the date of September 11, 2012 for the Board of Equalization. Grand Island Council Session - 7/24/2012 Page 243 / 290 Created for 5 years through 09/30/2013 BUISNESS IMPROVEMENT DISTRICT #8 1st Yr $90,000 Annual increase CPI or 3%FY 2012-2013 Actual Revenue Thru 09/30/2011 266,201 Original Budgeted Revenue 5 yrs 449,428 2009 2010 2011 2012 2013 Budget Budget Budget Budget Budget 29,326,665 29,573,895 29,573,895 29,573,895 31,473,795 0.295598 0.313452 0.322856 0.285920 0.285952 2009 2010 2011 2012 2012 2013 Actual Actual Actual Budget Projected Budget REVENUE 94011414 Valuation 30,099,334 31,679,040 31,790,717 31,369,569 31,369,569 31,473,795 Account Levy 0.29705 0.283101 0.283102 0.286902 0.285920 0.285952 74140 Special Asessments 84,112 89,143 86,901 90,000 89,000 90,000 74736 Donations & Contribution 1,050 750 1,300 - 13,500 25,000 74795 Other Revenue 2,576 - - - 52,597 75,000 74787 Interest 36 156 178 40 TOTAL REVENUE 87,773 90,049 88,379 90,000 155,137 190,000 APPROPRIATIONS Account 85213 Contract Services 38,883 29,390 28,878 45,000 73,000 66,000 85245 Printing & Binding Services 1,815 1,470 787 4,000 1,800 2,500 85249 Snow & Ice Removal 450 929 231 500 231 600 85290 Other Professional Services 7,164 637 2,535 4,500 13,000 23,500 85305 Utility Services 805 1,275 1,854 1,900 2,000 2,200 85325 Repairs & Maint.- 2,836 6,332 - 3,500 1,000 85413 Postage 1,272 625 522 1,400 650 1,200 85416 Advertising 8,753 3,822 5,509 16,000 3,200 5,000 85419 Legal Notices 1,587 1,953 197 2,000 2,000 2,250 85422 Dues & Subscriptions - 3,000 3,450 3,500 3,500 85428 Travel & Training 412 182 - 500 250 500 85490 Other Expenditures 5,074 2,122 348 32,724 12,600 78,400 85505 Office Supplies 106 300 312 600 300 1,000 85560 Trees & Shrubs 11,023 - 1,727 1,000 6,000 7,000 85590 Other General Supplies 96 2,915 447 750 750 750 85608 Land Improvements - - 2,314 25,000 26,000 100,000 TOTAL OPERATING EXPENSE 77,440 51,456 55,441 135,874 148,781 295,400 ANNUAL EXCESS/(LOSS)10,333 38,592 32,938 (45,874) 6,356 (105,400) Beginning Cash Balance 17,646 27,979 66,571 99,509 99,509 105,865 Revenues 87,773 90,049 88,379 90,000 155,137 190,000 Expenditures 77,440 51,456 55,441 135,874 148,781 295,400 Ending Cash Balance 27,979 66,571 99,509 53,635 105,865 465 Grand Island Council Session - 7/24/2012 Page 244 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-192 WHEREAS, the City Council has considered the proposed budget of the Business Improvement District No. 8 for the fiscal year 2012-2013; and WHEREAS, the City has received the assessed values of the individual properties within Business Improvement District No. 8 as shown in the office of the Hall County Assessor in effect on the first day of January, 2012; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: 1.The budget for Business Improvement District No. 8 is hereby considered. 2.A proposed assessment schedule shall be prepared. 3.A hearing before the City Council sitting as a Board of Equalization on the proposed assessments shall be held on September 11, 2012 at 7:00 p.m. in the City Council chambers of City Hall 100 East First Street, Grand Island NE. 4.Notice of hearing shall be published once each week for three consecutive weeks in accordance with the Business Improvement District Act. 5.Notice of hearing shall be mailed to all property owners of Business Improvement District No. 8 by U.S. Mail, postage prepaid - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 245 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I4 #2012-193 - Approving Amendment to Redevelopment Plan Area #6 Located at 709 & 715 West 18th Street This item relates to the aforementioned Public Hearing item E-1. Staff Contact: Chad Nabity Grand Island Council Session - 7/24/2012 Page 246 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-193 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: property acquisition, site preparation, utilities extensions, landscaping, concrete and fee associated with the redevelopment project. 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: Grand Island Council Session - 7/24/2012 Page 247 / 290 - 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, 2014 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. Grand Island Council Session - 7/24/2012 Page 248 / 290 - 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, July, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 249 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I5 #2012-194 - Approving Memorandum of Understanding with Chief Industries and the Grand Island Community Redevelopment Authority Staff Contact: Chad Nabity Grand Island Council Session - 7/24/2012 Page 250 / 290 Council Agenda Memo From:Chad Nabity, AICP Meeting:July 24, 2012 Subject:Memorandum of Understanding with Chief Industries and the Grand Island Community Redevelopment Authority Item #’s:I-5 Presenter(s):Chad Nabity, Director Grand Island CRA Background Chief Industries has purchased the former Aurora Coop property at Fonner Park Road and Lincoln Avenue. They are currently in the process of demolishing the old structures and preparing the site for future construction. The Grand Island CRA has approved a grant of $100,000 to aid Chief in this process that will cost more than $200,000. This grant is consistent with the generalized redevelopment plan for the area approved by the Grand Island City Council and the CRA. When the CRA approved the grant they asked Chief to consider a Memorandum of Understanding (MOU) that would allow the CRA to recapture the grant at some point in the future if TIF is requested on the property. Attorney’s representing both the CRA and Chief has drafted the attached MOU. In order to make it clear that all parties are on board with the possible inclusion of these demolition activities in any future TIF application both attorneys agreed that the MOU should also be signed by the Mayor representing the City after approval by Council. Representatives from Chief signed the agreement on July 5, 2012. The CRA approved and signed the agreement on July 11, 2012. Discussion The action item does not authorize the use of Tax Increment Financing for this project or impact the decision of the CRA to grant funds toward the demolition of structures on the former Aurora Coop property. It does however allow the CRA to recapture the grant at Grand Island Council Session - 7/24/2012 Page 251 / 290 some point in the future if Chief makes an application for TIF. It also authorizes Chief to complete the demolition and site clearance activities and allows them to proceed with the installation of a public water main across the property to facilitate potential future development. This MOU does not bind either the City Council or the CRA into approving an application for TIF at some future time. It does not bind City or CRA into allowing these redevelopment expenses as TIF Eligible expenses within any future redevelopment plan or TIF application. It does however make it clear that these expenses can be included within any future application. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve the MOU as presented. 2.Move to not approve the MOU as presented 3.Refer the issue to a Committee 4.Postpone the issue to future date 5.Take no action on the issue Recommendation City Administration recommends that the Council Move to approve the MOU as presented and authorize the Mayor to sign the agreement on behalf of the City. Sample Motion Move to approve the MOU as presented and authorize the Mayor to sign the agreement on behalf of the City. Grand Island Council Session - 7/24/2012 Page 252 / 290 Grand Island Council Session - 7/24/2012 Page 253 / 290 Grand Island Council Session - 7/24/2012 Page 254 / 290 Grand Island Council Session - 7/24/2012 Page 255 / 290 Grand Island Council Session - 7/24/2012 Page 256 / 290 Grand Island Council Session - 7/24/2012 Page 257 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-194 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. 8 of the City to be substandard and blighted and in need of redevelopment pursuant to the Act; and WHEREAS, Chief Industries Inc., a Delaware Corporation (the “Developer), has purchased the former Aurora Coop Property located entirely within Redevelopment Area No. 8, WHEREAS, various activities are necessary to facilitate the redevelopment of the property owned by the Developer including: demolition of the existing structures, clearing and grading the property, and installation of a city water main across the property. WHEREAS, the Community Redevelopment Authority of the City of Grand Island, Nebraska (the "Authority"), the Developer and wish to enter into a memorandum of understanding with the City of Grand Island regarding the various activities necessary to facilitate the redevelopment of the property; and WHEREAS, the Authority and the Developer have previously approved and signed the memorandum of understanding, and WHEREAS, the Authority has granted funds in the amount of $100,000 toward clearance of the site to the Developer, and WHEREAS, this memorandum of understanding is in the best interests of 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. NOW, THEREFORE, be it resolved by the City Council of the City of Grand Island, Nebraska that The Mayor and City Clerk are authorized and directed to execute the attached memorandum of understanding. Grand Island Council Session - 7/24/2012 Page 258 / 290 - 2 - - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 259 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I6 #2012-195 – Approving Request of Hall County Historical Society, Inc. for Release of Funds from the Stolley Fund held by the Nebraska Historical Society Foundation Staff Contact: Craig Lewis Grand Island Council Session - 7/24/2012 Page 260 / 290 Council Agenda Memo From:Craig Lewis, Building Department Director Meeting:July 24, 2012 Subject:Request of Hall County Historical Society, INC. for Release of Funds from the Stolley Fund held by the Nebraska Historical Society Foundation Item #’s:I-6 Presenter(s):Craig Lewis, Building Department Director Background The Hall County Historical Society, the Nebraska State Historical Society Foundation, and Grace Carmody on June 26, 2007 entered into an agreement for the creation of a Stolley House Committee and a Stolley Fund to hold dollars received from the Richard Palmer estate. That agreement identifies how the dollars are to be invested, distributed, and a list of fund uses was attached to enumerate the proposed expenditures and reimbursements. Typically an identified use or expenditure is acquired, paid for by the Hall County Historical Society from an initial $50,000 distribution and then submitted for reimbursement to me, I then review the bills and forward them onto the Foundation for their approval and distribution of the available dollars. Discussion This request is to utilize $15,000 from the Stolley Fund to help pay for expenses incurred in the construction of a memorial located in Stolley Park. As this request is for a use not specifically listed on the attachment of the agreement approval of the City of Grand Island is needed before the request is forwarded onto the Foundation. Funds available this year are approximately $30,000. Prior request for reimbursements submitted this year were $13,850.24 and with this request of $15,000 the fund will be substantially depleted for this year. Grand Island Council Session - 7/24/2012 Page 261 / 290 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the request for use of the funds for the memorial. 2.Disapprove or /Deny the Request. 3.Modify the Approval to meet the wishes of the Council. 4.Table the issue. Recommendation City Staff recommends approval of the funds to pay for the construction of the memorial as no other immediate use of the funds is identified. Sample Motion Move to approve the request for reimbursement of $15,000 from the Nebraska State Historical Foundation Stolley Fund. Grand Island Council Session - 7/24/2012 Page 262 / 290 Grand Island Council Session - 7/24/2012 Page 263 / 290 Grand Island Council Session - 7/24/2012 Page 264 / 290 Grand Island Council Session - 7/24/2012 Page 265 / 290 Grand Island Council Session - 7/24/2012 Page 266 / 290 Grand Island Council Session - 7/24/2012 Page 267 / 290 Grand Island Council Session - 7/24/2012 Page 268 / 290 Grand Island Council Session - 7/24/2012 Page 269 / 290 Grand Island Council Session - 7/24/2012 Page 270 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-195 WHEREAS, the Hall County Historical Society has constructed a memorial in Stolley Park; and WHEREAS, The Nebraska State Historical Society Foundation has an established Stolley Fund provided by the Richard Palmer Estate; and WHEREAS, The City of Grand Island is listed as a party to the agreement entered into on June 26, 2007, and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be authorized to sign a request for reimbursement from the Foundation Stolley Fund in the amount of $15,000 to contribute toward the construction of such Hall County Historical Society Memorial located in Stolley Park. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 271 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I7 #2012-196 - Approving Bid Award for 2012 Lincoln Park Swimming Pool Staff Contact: Todd McCoy Grand Island Council Session - 7/24/2012 Page 272 / 290 Council Agenda Memo From:Todd McCoy, Interim Parks and Recreation Director Meeting:July 24, 2012 Subject:Consideration of Bids for Construction of New Lincoln Park Swimming Pool Item #’s:I-7 Presenter(s):Todd McCoy Background After several years of discussions and emergency repairs, Council determined it was time to replace Lincoln Park Swimming Pool. Funding was made available to complete this project using bonding authority provided through the CRA. The bonding capability for the CRA was adopted by Council in September of 2011. In December of 2011 JEO Consulting Group of Wahoo, Nebraska was contracted to design and provide construction services for this project. On January 24, 2012 Council passed Resolution 2012-25 setting a project budget of $1,550,000.00 for construction of the pool. Discussion Through the City’s formal bidding process four bids were received as follows: Hausmann Construction of Lincoln,Nebraska $1,679,000 Lacy Construction of Grand Island, Nebraska $1,690,000 Neuman Pools of Beaver Dam, Wisconsin $1,695,700 USA Pools of Roswell, Georgia Bid rejected- nonconforming bid bond JEO, the City’s contracted consultant for the Lincoln Pool project, recommends Hausmann Construction of Lincoln because of their swimming pool building experience, excellent references, and low bid. Award of contract to Hausmann Construction would be consistent with City purchasing policies. The bid of Lacy Construction of Grand Island was only $11,000 higher than the low bid. The City Legal Department reviewed the matter and determined the City could not award the contract to Lacy Construction as to do so would be a violation of the City’s procurement laws contained in Chapter 27 of the Grand Island City Code. In addition, the Grand Island Council Session - 7/24/2012 Page 273 / 290 Legal Department has concluded to award the contract to Lacy Construction would expose the City to potential civil liability. Before construction can begin the Council must amend Resolution 2012-25 to increase the project budget to reflect the bids received and then award the contract. 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 Chapter 27 of the Grand Island City Code, requires the City Administration recommend the City Council amend Resolution 2012-25 to increase the project budget for the construction of Lincoln Park Pool and approve the award of a contract to Hausmann Construction in the amount of $1,679,000. Sample Motion Move to amend Resolution 2012-25 to increase the project budget of the Lincoln Park Pool to $1,679,000 and award the contract to construct the pool to Hausmann Construction. Grand Island Council Session - 7/24/2012 Page 274 / 290 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:July 13, 2012 at 2:00 p.m. FOR:2012 Lincoln Park Swimming Pool (Re-Bid) DEPARTMENT:Parks & Recreation ESTIMATE:$1,500,000.00 FUND/ACCOUNT:40044450-90037 PUBLICATION DATE:July 5, 2012 NO. POTENTIAL BIDDERS:29 SUMMARY Bidder:USA Pools Neuman Pools, Inc. Roswell, GA Beaver Dam, WI Bid Security:Darren Hutcheson Liberty Mutual Base Bid:$1,640,000.00 $1,695,700.00 Deduct: Alternate 3:$ 800.00 $ 11,100.00 Alternate 5:$ 3,500.00 $ 20,000.00 Add: Alternate 1:$ 2,000.00 $ 3,600.00 Alternate 2:$ 800.00 $ 1,200.00 (USA Pools bid has been rejected due to an insufficient bid bond.) Grand Island Council Session - 7/24/2012 Page 275 / 290 Bidder:Lacy Construction Company Hausmann Construction Grand Island, NE Lincoln, NE Bid Security:Merchants Bonding Co.North American Specialty Ins. Base Bid:$1,690,000.00 $1,679,000.00 Deduct: Alternate 3:$ 15,250.00 $ 14,300.00 Alternate 5:$ 14,500.00 $ 8,000.00 Add: Alternate 1:$ 3,400.00 $ 1,800.00 Alternate 2:$ 900.00 $ 740.00 cc:Todd McCoy, Parks Supt.Patti Buettner, Parks Secretary Jason Eley, Purchasing Agent Dave Henke, Project Manager George Parizek, Assist. Project Mgr. P1573 Grand Island Council Session - 7/24/2012 Page 276 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-25 WHEREAS, the City of Grand Island is in the process of replacing Lincoln Park swimming pool; and WHEREAS, it has been determined that new construction shall be the process used: and WHEREAS, the City of Grand Island has set a project budget of $1,550,000.00 1,679,000.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that City staff will work with JEO Consulting of Wahoo, Nebraska to develop the design and construction plans for a new Lincoln Park swimming pool.- - - Amended and adopted as amended by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 277 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012 -196 WHEREAS, the City of Grand Island invited sealed bids for the Construction of Lincoln Park Swimming Pool, according to plans and specifications on file with the Parks and Recreation Department; and WHEREAS, on July 13, 2012, bids were received, opened and reviewed; and WHEREAS, Hausmann Construction of Lincoln, Nebraska, submitted a bid in accordance with the terms of the advertisement of bids, plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $1,679,000.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Hausmann Construction from Lincoln, Nebraska in the amount of $1,679,000.00 for Construction of Lincoln Park Swimming Pool is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 278 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I8 #2012-197 - Approving Contract for Health Plan Staff Contact: Brenda Sutherland Grand Island Council Session - 7/24/2012 Page 279 / 290 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR HEALTH PLAN RFP DUE DATE:April 26, 2012 at 4:00 p.m. DEPARTMENT:Human Resources PUBLICATION DATE:March 22, 2012 NO. POTENTIAL BIDDERS:13 SUMMARY OF PROPOSALS RECEIVED BenefitMall Self Funded Division HCC Life Insurance Company Phoenix, AZ Minnetonka, MN Aetna US Script Woodland Hills, CA Fresno, CA Blue Cross Blue Shield Harrington Health Omaha, NE Wichita, KS United Healthcare Company FMH CoreSource Wausau, WI Overland Park, KS Maxor Plus Regional Care, Inc. Amarillo, TX Scottsbluff, NE Coventry Health Care Omaha, NE cc:Brenda Sutherland, Human Resources Director Tami Herald, HR Risk Mgt/Benefits Cor. Mary Lou Brown, City Administrator Jaye Monter, Interim Finance Director Jason Eley, Purchasing Agent P1550 Grand Island Council Session - 7/24/2012 Page 280 / 290 Council Agenda Memo From:Brenda Sutherland, Human Resources Director Meeting:July 24, 2012 Subject:Health Insurance and COBRA Contract Item #’s:I-8 Presenter(s):Brenda Sutherland, Human Resources Director Background The City of Grand Island has had a contract with Regional Care, Inc. (RCI) to provide administrative services for the City’s health plan and COBRA administration. The City has a partially self-funded plan, meaning that claims are actually paid for by the premium dollars generated through the plan to a specified limit. The City has paid a third party, in this case RCI, to administer and pay claims and provide stop loss coverage. The City’s current “specific deductible” or stop loss is $150,000 per participant. This means that the first $150,000 of claims for a plan participant is paid for by the premium dollars generated and then the reinsurance carrier picks up the claims that go over that amount. Discussion As a part of routine practice, the City advertises through the RFP process to shop its various benefit packages on a three year cycle. As it has been three years since the health insurance was shopped, it seemed prudent to take a look at the market to see if we are indeed getting the best buy for the dollar. The City has a health insurance committee that has been in place for several years that is comprised of union, non-union, management, and non-management personnel. The City is currently contracted with Strong Financial Resources, Inc. for consulting services and as part of those services, to assist with the breakdown of the proposals, compilation of the information and contract negotiations. The committee held interviews with finalists based on the proposals that were submitted. Negotiations ensued and the committee has a recommendation before the Council for the administration of the health plan and COBRA administration. The committee is proposing Blue Cross and Blue Shield of Nebraska (BCBSNE) as the new plan administrator. After careful review and consideration, the insurance committee has Grand Island Council Session - 7/24/2012 Page 281 / 290 determined that the proposal from Blue Cross and Blue Shield provided the best package for the price. The City will have access to deeper network discounts. The contract will commence on October 1, 2012. Strong Financial Resources has been chosen to be retained as the broker to assist the City and its employees with their daily needs and to provide professional assistance in an ever changing market. Per the City procurement rules, quotes were obtained and Strong Financial Resources had the most competitive pricing. The reinsurance will be provided by Blue Cross and Blue Shield. They will also act as fiduciary under this contract. Due to the size and strength of Blue Cross and Blue Shield of Nebraska, ancillary products such as our current transplant policy and our Dialysis PPO contract will no longer be needed. The City currently is contracted with American Healthways Services, Inc. to provide wellness physicals. That contract will be brought in under the Blue Cross umbrella and is referred to in the Blue Partners Program Agreement. The plan structure will remain much the same as it is today. There are always changes in plan design when a new company is chosen, however, the changes experienced by the employees will be minor. The contract with Blue Cross and Blue Shield of Nebraska (BCBSNE) specifies administrative fees of $27 per employee per month for the first year and will increase to $28.25 in year two and $29.50 in year three. Stop loss coverage will cost $61.25 per employee per month during the first year of the contract and is subject to change based on claims and the aggregate stop loss coverage will cost $4.85 per employee per month with future increases to be based on claims paid as well. The contract with Strong Financial will cost $1,500 per month in year one and will increase to $1,575 in the second year and $1,654 in the third year. COBRA administration will be handled by Discovery Benefits, Inc. (DBI) The cost for COBRA administration will be .70 per employee per month for the three year term of the contract. The fees associated with the wellness physicals will be lower under the Blue Cross contract and will be $79.38 per participant for the duration of the three year contract. While fixed costs are slightly higher than the current year, the offset in deeper network discounts outweigh the increase by a sizable margin. There will be an overall increase in the premium as has been identified in the proposed budget. Premiums have not increased since 2010. They are proposed to increase by 15%. Contracts are on file in the City Clerk’s office. 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 Grand Island Council Session - 7/24/2012 Page 282 / 290 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the contracts with Blue Cross and Blue Shield of Nebraska, Strong Financial Resources, Discovery Benefits, Inc. and Bluepartners Program to administer the health insurance benefits, COBRA administration and wellness program for the City of Grand Island employees. Sample Motion Move to approve the contracts with Blue Cross and Blue Shield of Nebraska, Strong Financial Resources Discovery Benefits, Inc. and Bluepartners Program to administer the health insurance benefits for the employees of the City of Grand Island. Grand Island Council Session - 7/24/2012 Page 283 / 290 RESOLUTION 2012-197 Whereas, the City subscribes to health insurance for its employees and other eligible participants, as authorized by the City of Grand Island Personnel Rules and Regulations and federal regulations; and WHEREAS, a Health Insurance Committee consisting of union, non- union, management and non-management employees, along with the Human Resources Director, the Finance Director, and the Attorney/Purchasing Agent met and reviewed plan changes; and WHEREAS, Blue Cross and Blue Shield of Nebraska has been selected by the health insurance committee to serve as the Third Party Administrator for the City’s health insurance plan; and WHEREAS, the reinsurance coverage and administration of the plan is provided under a contract with Blue Cross and Blue Shield of Nebraska. COBRA administration will be provided by Discovery Benefits, Inc. The broker is Strong Financial Resources, and the current agreement with Healthways will be covered under the Bluepartners Program agreement and; WHEREAS, contracts are necessary for the provision of such services and associated stop loss coverage; and WHEREAS, a Business Associate Agreement, an Administrative Service Agreement and a Bluepartners Program Agreement will be entered into with Blue Cross and Blue Shield of Nebraska; and a Business Associate Agreement and an Administrative Service Agreement will be entered into with Discovery Benefits, Inc., and a Health Insurance Broker Contract will be entered into with Strong Financial Resources, for the aforementioned contracts for insurance services; NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the contracts with Blue Cross and Blue Shield of Nebraska, Discovery Benefits, Inc., Strong Financial Resources and Bluepartners Program for the administration of health insurance, COBRA administration, broker services and wellness program as set out by the contracts is hereby approved. - - - Grand Island Council Session - 7/24/2012 Page 284 / 290 Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 285 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item I9 #2012-198 - Approving Appointment of Terry Brown as Interim Public Works Director/City Engineer Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 7/24/2012 Page 286 / 290 Council Agenda Memo From:Mayor Jay Vavricek Meeting:July 24, 2012 Subject:Mayoral Recommendation for Interim City Engineer/Public Works Director Item #’s:I-9 Presenter(s):Mayor Jay Vavricek Background State Statute and Grand Island City Code specifies the need to designate a City Engineer within the Public Works Department of the City of Grand Island. The current City Engineer is John Collins. As Public Works Director, John’s resignation relative to both positions will become effective July 29, 2012. Therefore, it is necessary to make a recommendation in order to maintain the on going work of the Public Works Department. A capable replacement with an accredited engineering degree to serve in the capacity as Interim City Engineer/Public Works Director is necessary and has been identified to be Terry Brown. Discussion Terry Brown received a Bachelor of Science Degree in Civil Engineering from the University of Nebraska Lincoln. He has over 20 years of experience as a consultant, is a registered Professional Engineer in our state and has significant background as a Senior Design Engineer with Ross Engineering in Lincoln, a Senior Project Manager for Snyder and Associates in Ankeny, Iowa and as a Senior Project Manager for Olsson Associates for seven years. Terry has been an employee of the City of Grand Island Public Works Department as Manager of Engineering Services since July 2010 and serves as the head of the Engineering Division. Therefore, I am confident he has the accreditation and previous engineering experience, and as a valued employee within the Public Works Department, I am confident this recommendation is in the best interests of the effectiveness of the department, meets the qualifications necessary under State law and Grand Island City Code and as Interim City Engineer best serves the people of Grand Island. Mr. Brown’s appointment will be effective July 24, 2012 with Council approval. Mr. Brown will be placed in step 11 of the Grand Island Council Session - 7/24/2012 Page 287 / 290 current Public Works Director pay scale per the City Personnel Rules which represents a salary of $96,774.60 per year. 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 appointment of Terry Brown as Interim City Engineer/Public Works Director. Sample Motion Move to approve Terry Brown as Interim City Engineer/Public Works Director. Grand Island Council Session - 7/24/2012 Page 288 / 290 Approved as to Form ¤ ___________ July 23, 2012 ¤ City Attorney R E S O L U T I O N 2012-198 WHEREAS, under Neb. Rev. Stat., §16-308 and Grand Island City Code §2-30 the office of City Engineer/Public Works Director for the City of Grand Island, Nebraska, 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, the position will become vacant and an interim appointment may be made; and WHEREAS, Terry Brown, the Manager of Engineering Services is a licensed professional engineer and meets the statutory requirement for a City Engineer; and WHEREAS, the Mayor has recommended the appointment of Terry Brown as the Interim City Engineer/Public Works Director effective as of July 24, 2012 until such time as a replacement is appointed. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Terry Brown is hereby duly appointed the Interim City Engineer/Public Works Director for the City of Grand Island, Nebraska,. - - - Adopted by the City Council of the City of Grand Island, Nebraska, July 24, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 7/24/2012 Page 289 / 290 City of Grand Island Tuesday, July 24, 2012 Council Session Item J1 Approving Payment of Claims for the Period of July 11, 2012 through July 24, 2012 The Claims for the period of July 11, 2012 through July 24, 2012 for a total amount of $4,022,075.71. A MOTION is in order. Staff Contact: Jaye Monter Grand Island Council Session - 7/24/2012 Page 290 / 290