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10-23-2012 City Council Regular Meeting Packet City of Grand Island Tuesday, October 23, 2012 Council Session Packet City Council: Larry Carney Linna Dee Donaldson Scott Dugan Vaughn Minton John Gericke Peg Gilbert Chuck Haase Mitchell Nickerson Bob Niemann Kirk Ramsey Mayor: Jay Vavricek City Administrator: Mary Lou Brown City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East First Street Grand Island Council Session - 10/23/2012 Page 1 / 264 City of Grand Island Tuesday, October 23, 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 - Pastor Rene Lopez, Iglesia de Dios, 2325 West State Street 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 - 10/23/2012 Page 2 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item C1 Presentation of the “Mayor’s Builder Award” to Tom and Kim Dinsdale Since so many great efforts occur in our community and many unnoticed, it's important to recognize efforts that build a stronger Grand Island. As Mayor, the City will recognize those efforts with a "Mayor's Builder Award" Recognition and appearance before council and the people of Grand Island. The fifth Builders' Award will go to Tom and Kim Dinsdale. Tom and Kim Dinsdale will be recognized as a Builder of a Better Grand Island. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/23/2012 Page 3 / 264 Grand Island Council Session - 10/23/2012 Page 4 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item C2 Proclamation "Project Homeless Connect Day" October 25, 2012 To show support and thanks to our community leaders in unity with private and public sector agencies on hosting the first Project Homeless Connect event for the City of Grand Island, the Mayor has proclaimed Thursday, October 25, 2012 as "Project Homeless Connect Day". See attached PROCLAMATION. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/23/2012 Page 5 / 264 Grand Island Council Session - 10/23/2012 Page 6 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item E1 Public Hearing on Request from Wilmar Realty LLC dba Wilmar, 620 West State Street, Suite B for a Class “C” Liquor License Staff Contact: RaNae Edwards Grand Island Council Session - 10/23/2012 Page 7 / 264 Council Agenda Memo From:RaNae Edwards, City Clerk Meeting:October 23, 2012 Subject:Public Hearing on Request from Wilmar Realty, LLC dba Wilmar, 620 West State Street, Suite B for a Class “C” Liquor License Item #’s:E-1 & I-5 Presenter(s):RaNae Edwards, City Clerk Background Section 4-2 of the Grand Island City Code declares the intent of the City Council regarding liquor licenses and the sale of alcohol. Declared Legislative Intent It is hereby declared to be the intent and purpose of the city council in adopting and administering the provisions of this chapter: (A)To express the community sentiment that the control of availability of alcoholic liquor to the public in general and to minors in particular promotes the public health, safety, and welfare; (B)To encourage temperance in the consumption of alcoholic liquor by sound and careful control and regulation of the sale and distribution thereof; and (C)To ensure that the number of retail outlets and the manner in which they are operated is such that they can be adequately policed by local law enforcement agencies so that the abuse of alcohol and the occurrence of alcohol-related crimes and offenses is kept to a minimum. Discussion Wilmar Realty, LLC dba Wilmar, 620 West State Street, Suite B has submitted an application for a Class “C” Liquor License. A Class “C” Liquor License allows for the sale of alcohol on and off sale inside the corporate limits of the city. City Council action is required and forwarded to the Nebraska Liquor Control Commission for issuance of all licenses. This application has been reviewed by the Clerk, Building, Fire, Health, and Police Departments. Grand Island Council Session - 10/23/2012 Page 8 / 264 Also submitted with the application was a request from James Goodman, 2716 Apache Road for a Liquor Manager Designation. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the application. 2.Forward to the Nebraska Liquor Control Commission with no recommendation. 3.Forward to the Nebraska Liquor Control Commission with recommendations. 4.Deny the application. Recommendation Based on the Nebraska Liquor Control Commission’s criteria for the approval of Liquor Licenses, City Administration recommends that the Council approve this application. Sample Motion Move to approve the application for Wilmar Realty, LLC dba Wilmar, 620 West State Street, Suite B for a Class “C” Liquor License contingent upon final inspections and Liquor Manager Designation for James Goodman, 2716 Apache Road contingent upon completion of a state approved alcohol server/seller training program. Grand Island Council Session - 10/23/2012 Page 9 / 264 10/09/12 Grand Island Police Department 450 10:30 LAW INCIDENT TABLE Page: 1 City : Grand Island Occurred after : 10:45:18 10/08/2012 Occurred before : 10:45:18 10/08/2012 When reported : 10:45:18 10/08/2012 Date disposition declared : 10/08/2012 Incident number : L12100944 Primary incident number : Incident nature : Liquor Lic Inv Liquor License Investigation Incident address : 620 State St W; Suite B State abbreviation : NE ZIP Code : 68803 Contact or caller : Complainant name number : Area location code : PCID Police - CID Received by : Vitera D How received : T Telephone Agency code : GIPD Grand Island Police Department Responsible officer : Vitera D Offense as Taken : Offense as Observed : Disposition : ACT Active Misc. number : RaNae Geobase address ID : Long-term call ID : Clearance Code : CL Case Closed Judicial Status : NCI Non-criminal Incident = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = INVOLVEMENTS: Px Record # Date Description Relationship ----------------------------------------------------------------------- ----- NM 27711 10/08/12 Martin, William C Applicant NM 27713 10/08/12 Martin, Donna R Applicant NM 43382 10/08/12 Martin, Laura J LLC Member NM 80707 10/08/12 Goodman, Tracy D James' Spouse NM 98360 10/08/12 Goodman, James D Liquor Manager NM 180160 10/08/12 Wilmar, Business LAW INCIDENT CIRCUMSTANCES: Se Circu Circumstance code Miscellaneous -- ----- ------------------------------ -------------------- 1 LT03 Bar/Night Club LAW INCIDENT NARRATIVE: I Received a Copy of a Liquor License Application from Wilmar and a Copy of a Liquor Manager Application for James Goodman. Grand Island Council Session - 10/23/2012 Page 10 / 264 LAW INCIDENT OFFENSES DETAIL: Se Offe Offense code Arson Dama -- ---- ------------------------------ ---------- 1 AOFF Alcohol Offense 0.00 LAW INCIDENT RESPONDERS DETAIL: Se Responding offi Unit n Unit number -- --------------- ------ ------------------------------ 1 Vitera D 318 Vitera D LAW SUPPLEMENTAL NARRATIVE: Seq Name Date --- --------------- ------------------- 1 Vitera D 15:41:26 10/08/2012 Grand Island Police Department Supplemental Report Date, Time: Mon Oct 08 15:41:37 CDT 2012 Reporting Officer: Vitera Unit- CID From looking at the application packet, it appears that Wilmar is applying for a Class C LLC liquor license at the Skagway Banquet Center. James Goodman has applied to be the liquor manager. Wilmar company members are listed as: William and Donna Martin, James and Tracy Goodman, Ben W. and Mary Herring, Benjamin J. and Gwendolyn Herring, Collin Herring, Laura Martin, Sara Burghardt, and Randal and Emily Winfrey. The two applicants listed on the Retail Liquor license application are William and Donna Martin. They didn't disclose any convictions, and I didn't find any in Nebraska. According to the application, they have lived in Nebraska since 1977. I did a liquor license investigation on Skagway North about three and one half years ago. William and Donna Martin were listed on that application as well. There were no problems. James Goodman is applying to be the liquor manager. He has a wife named Tracy who is also one of the LLC members. They didn't disclose any convictions, and I didn't find any in Nebraska. They have lived in Nebraska since the 1970's. I did a liquor manager investigation involving the Goodman's at Skagway North about one and a half years ago. There were no issues then, and nothing seems to have changed. I checked on the rest of the people who are listed as members of the LLC. I couldn't find any Spillman or NCJIS entries for Mary and Ben Herring, Benjamin and Gwendolyn Herring, Collin Herring, Emily and Randal Winfrey, and Sarah Burghardt. Laura Martin is the only other LLC member listed that I haven't discussed. She has an entry in Spillman and six speeding convictions listed in NCJIS. Grand Island Council Session - 10/23/2012 Page 11 / 264 The Skagway Banquet Center is going to be for special events. According to Wilmar's application, they have been open since August 1st and have held events and used SDL's to bring in alcohol. The hours of operation will depend upon the event being held there. In summary, the applicants (William & Donna Martin) have lived in Grand Island for thirty-five years and have no criminal history in the State of Nebraska. The liquor manager and his wife (James & Tracy Goodman) have lived in Grand Island for at least thirty-five years and have no criminal history in the State of Nebraska. In conjunction with Skagway, the Martin's and Goodman's have recently submitted other liquor license application. No problems were encountered at the time of the applications, and I'm not aware of any problem since. Other than the Martin's, no other members of the LLC were required to submit fingerprints because they don't own 25% or more of the company. Strictly speaking from a law enforcement perspective, the Grand Island Police Department has no objection to Wilmar receiving a liquor license for the Skagway Banquet Center or to James Goodman becoming the liquor manager. Grand Island Council Session - 10/23/2012 Page 12 / 264 C B C B Park Ave NHuston Ave NE d d y S t NBroadwell Ave NState St W El m St N Grand Island Ave NC le b u r n S t N 12th St W C lark S t NLafayette Ave NWh e eler A v e N C e d ar S t N 13th St W 14th St W 15th St W 17th St W Forrest St College St 11th St W Cottage St 16th St W Ruby AveProspect St Waugh St W Waln ut St N18th St W G re e n w ic h S t N 21st St W23rd St W 19th St W20th St W2 2nd St E22nd St W 10th St W21st St ELin c oln A v e N 13th St W 14th St W15th St W16th St W 18th St W 17th St W Walnut St N18th St W µ Liquor Application620 W State St.Skayway North Legend Liquor License Locations620 W State St Grand Island Council Session - 10/23/2012 Page 13 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item E2 Public Hearing on Request from Faulk & Foster on behalf of Verizon Wireless for a Conditional Use Permit for Construction of an 80’ Monopole and Equipment Shelter Located at 1922 West 3rd Street Staff Contact: Craig Lewis Grand Island Council Session - 10/23/2012 Page 14 / 264 Council Agenda Memo From:Craig A. Lewis, Building Department Director Meeting:October 23, 2012 Subject:Request of Ralph Wyngarden of Faulk & Foster Representing Verizon Wireless and Property Owners Donald & Sharon Jelinek for Approval of a Conditional Use Permit to Allow Construction of a Telecommunication Tower at 1922 West 3rd Street Item #’s:E-2 & H-1 Presenter(s):Craig Lewis, Building Department Director Background This is a request to allow for the construction of an 80 foot monopole telecommunication tower at 1922 West 3rd Street to facilitate their cellular service area. The property is currently zoned B-2, General Business. The Grand Island Zoning Code requires that all telecommunication towers receive the approval of City Council in the form of a conditional use permit prior to construction. The intent of the tower and telecommunication facilities and antenna regulations are to protect residential areas and land uses from the potential adverse impact of the installation of towers and antennas through careful design, siting, and camouflaging, to promote and encourage shared use/collocation of towers, and to ensure that towers and antennas are compatible with the surrounding land uses. Discussion The City code specifies eight items to be submitted with the application for a tower development permit, all of those items have been submitted, with the exception of; 1). the engineering of the tower and foundation design, and, 2). a building permit application for the proposed tower. It appears reasonable to delay the submittal of these two items until after the City Council has approved the location. At the time of a request for a building permit then the engineering for the construction of the tower and improvements will need to be submitted before a building permit would be issued. Grand Island Council Session - 10/23/2012 Page 15 / 264 Information attesting to a diligent effort to collocate with any towers within a one mile radius has been submitted by the applicant. There were six towers identified within the one mile radius of the proposed site, none of the towers will facilitate the applicants proposed needs. A landscaping plan will be required as the proposal is to locate the tower on the property that is currently utilized as an accessory site to the adjacent retail facility. An independent lot for the tower allows independent utility services and requires landscaping to be installed adjacent to the streets in compliance with the City zoning regulation. The applicant has acknowledged the requirement and will include installation of street yard landscaping along with the development of the site. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the conditional use permit finding that the proposed use is a listed conditional use in the zoning code and that it will not be detrimental to public health, safety, and the general welfare of the community. 2.Disapprove or /Deny the conditional use permit, finding that the proposal does not conform to the purpose of the zoning regulations. 3.Modify the conditional use to meet the wishes of the Council 4.Refer the matter to a special committee for a determination of a finding of fact. 5.Table the issue. Recommendation City Staff recommends that the Council approve the request for a conditional use permit to construct this telecommunication tower, finding that the request does promote the health, safety, and general welfare of the community, protects property against blight and depreciation, and is generally harmonious with the surrounding neighborhood. Sample Motion Move to approve the request for a conditional use permit as specified in the staff recommendation published in the Council packet and presented at the City Council meeting and finding that the application will conform with the purpose of the zoning regulations. Grand Island Council Session - 10/23/2012 Page 16 / 264 Grand Island Council Session - 10/23/2012 Page 17 / 264 Grand Island Council Session - 10/23/2012 Page 18 / 264 ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !3rd St W Locust St SAnna St W John St W1st St W Elm St N Koenig St W Louise St W E d d y St N Webb Rd SWebb Rd NDivision St W 7th St W Stolley Park Rd W 13th St W Charles St W Pin e St N Custer Ave N9th St W Blaine St S6th St W North Front St W 8th St W Waln ut St N Adams St SClark St N 4th St W 5th St W Broadwell Ave N2nd St W Faidley Ave W Lincoln A v e N O a k St N Arth ur St S Clark St S L ocu st St N Kennedy DrS yc a m ore St N Pioneer BlvdHancock AveWh e eler A ve N El m St S Gre e n wic h St N US H ighway 30 W Vin e St N White AveKi m b all A v e N Sylvan St11th St W 10th St W Carey AveGra nt St S Blake St Waldo AveHarrison St SPark DrOld Highway 30 W Darr Ave NSouth St W South Front St W Clay St S Tild e n St S Grand Ave Church Rd August St SPark Ave NRiverside DrA da m s St N 7th St EGrace Ave NEddy St SG re e n wich St S Old Potash Hwy W 10th St EHagge Ave Cleb urn St S L o g an St SWashin gto n St N C e d ar St N Ada St6th St EUS Hig h wa y 2 8 1 SBoggs Ave NHoward Ave NHuston Ave N12th St ELincoln Ave SApache RdM o nro e St S C e d ar St S5th St EAlpha St NM adiso n St S Brentwood BlvdPiper StGeorge St Riverview DrBroa d w ell A v e S 17th St W 16th St W Del Mar Ave Henry StCommerce Ave Pine St SLa M ar AveBlaine St N Ruby Ave12th St W 4th St E13th St EChanticleer StParkview DrArrowhead RdPhoenix Ave WGrand Island Ave NCottonwood RdWaln ut St S Jefferso n St N Ingalls St11th Ave W Spring RdKruse AveHolcomb StTaylor Ave15th St W Lester St 14th St W West AveBrahma StAndo AveOld Lincoln Hwy W Fonner Park Rd W Cochin StSherman AveM a diso n St NOrleans DrAl l en Dr Barbara Ave Curtis StAbbey RdCoventry Ln Briarwood Blvd Wicklow DrHope St18th St W I ndust ri al LnOklahom a Ave W Cle b urn St NJohnson D rDel Monte AveSothman DrOxnard Ave Post RdStoeger Dr Highgate RdLakewood Dr Howard PlJefferso n St S Garland StClay St NLafayette Ave NWilliam StGra nt St N Doreen StSheridan PlCircle Dr Bachman St W Midway Rd Sheridan AveWeis DrMemphis Pl Wh e eler A v e S Arth ur St N 11th St EDelta St Vandergrift Ave Magnolia Ct Cleveland St SSherman PlKingston Cir Bock Ave Kennedy Way Gamma St Stewart DrFaidley Pl6th St W G re en wic h St N Cochin StC e d ar St NWhite AveRuby Ave5th St W Jefferso n St S 11th Ave W 12th St W Boggs Ave NGarland St13th St W Orleans DrSouth St W Jefferso n St N Ada StPine St S10th St W M adiso n St NRuby AveIn galls StSheridan AveIngalls StClark St N Cleb urn St N 11th St W14th St W 18th St W 17th St W Linc oln A v e S Cle b urn St N Oklahom a Ave W South Front St W US Hi g h way 2 8 1 S16th St W 15th St W 8th St W H arris o n St S 4th St WPiper St16th St W Curtis StEddy St SLa Mar Ave C ed ar St N 15th St W Lo c ust St N14th St W ¯ Proposed Tower Location1922 W 3rd St. 3205 W North Front St 305 Wilmar Ave. 211 N Tilden St. 1521 W Anna St. 1707 W Olahoma Ave 1124 S Adams St. Grand Island Council Session - 10/23/2012 Page 19 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item E3 Public Hearing on Amendment to the Redevelopment Plan Area 1 Located at 1103 St. Paul Road Staff Contact: Chad Nabity Grand Island Council Session - 10/23/2012 Page 20 / 264 Council Agenda Memo From:Chad Nabity, AICP Meeting:October 23, 2012 Subject:Amendment to Redevelopment Plan for CRA Area #1 Item #’s:E-3 & I-2 Presenter(s):Chad Nabity, AICP CRA Director Background In 2000, the Grand Island City Council reconfirmed the declaration of property referred to as CRA Area #1 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. The Grand Island Area Habitat for Humanity, 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 three single family houses for property located at the corner of 11th Street and St. Paul Road, in Grand Island, Nebraska, Lots 8, 9, 10, 11 and 12 Pleasant Hill Addition to the City of Grand Island. The CRA reviewed the proposed development plan on September 19th, 2012 and forwarded it to the Hall County Regional Planning Commission for recommendation at their meeting on October 3rd, 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 October 3rd, 2012. The Planning Commission approved Resolution 2013-02 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 - 10/23/2012 Page 21 / 264 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 #1 and authorizes the CRA to execute a contract for TIF based on the plan amendment. The redevelopment plan amendment permits site acquisition, demolition, clearance and extension of utilities and subsequent construction of 3 single family homes by Habitat for Humanity at 1103 N St. Paul Road 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 $71,513 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 - 10/23/2012 Page 22 / 264 Redevelopment Plan Amendment Grand Island CRA Area #1 August 2012 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area #1 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 #1. Executive Summary: Project Description THE DEMOLITION OF THE EXISTING SINGLE FAMILY HOUSE AT 1103 ST. PAUL ROAD AND THE SUBSEQUENT ACQUISITION, SITE WORK, UTILITY IMPROVEMENTS, ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR REBUILDING THREE HOUSES AT THIS LOCATION. The use of Tax Increment Financing to aid in demolition of existing structures along with costs associated with redevelopment of this site with three new single family homes. The use of Tax Increment Finance makes it affordable to provide additional housing in Grand Island at this location for families that qualify to purchase a Habitat Home. This project would not be possible in an affordable manner without the use of TIF. Habitat for Humanity has a contract to purchase the house and adjacent vacant lots for the assessed value of the property. All site work, demolition and utilities will be paid for by the Habitat for Humanity, though they are requesting the CRA consider buying that portion of the TIF debt associated with the demolition costs and fees for TIF. 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 1103 St Paul Road in northeast Grand Island. The attached map identifies the subject property and the surrounding land uses: Legal Descriptions Lots 8, 9, 10, 11 and 12 Pleasant Hill Addition to the City of Grand Island. Grand Island Council Session - 10/23/2012 Page 23 / 264 Grand Island Council Session - 10/23/2012 Page 24 / 264 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, 2013. 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 - 10/23/2012 Page 25 / 264 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 December 19, 2000.[§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 #1 provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority. b. Demolition and Removal of Structures: The project to be implemented with this plan does 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 to be purchased by the applicant. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area around the site in private ownership is planned for low to medium density residential development; this includes housing of densities up to 14 units per acre. This property is in private ownership. [§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 - 10/23/2012 Page 26 / 264 City of Grand Island Future Land Use Map Grand Island Council Session - 10/23/2012 Page 27 / 264 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned R4-High Density Residential zone. No zoning changes are anticipated with this project. No changes are anticipated in street layouts or grades. No changes are anticipated in building codes or ordinances. Nor are any other planning changes contemplated. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing remove the existing structures from the property. The R4 zoning district allows 1 dwelling unit per 1000 square feet of property the size of each lot is approximately 7600 square feet; enough to legally accommodate a single family housing unit on each lot. The property is zoned R4 and could accommodate a building of up to 65% of the property area; allowable coverage would be about 4,950 square feet. The proposed units including detached sheds will cover less than 1,200 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. 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] Grand Island Council Session - 10/23/2012 Page 28 / 264 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. This property, owned by the developer is currently vacant, no relocation is contemplated or necessary. [§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] 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 property for $47,763. The $47,763 is included as a TIF eligible expense. Costs for demolition, site preparation, utilities and contingencies of $19,000 are included as a TIF eligible expense. Surveying and Engineering fees of $1,500 and are included as a TIF eligible expense. Fees and reimbursement to the City and the CRA of $2750 are included as a TIF eligible expense. Finance, interest and closing costs of $500 are included as a TIF eligible expense. The total of eligible expenses for this project is $71,513. 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 $66,000 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 2028. 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 Grand Island Council Session - 10/23/2012 Page 29 / 264 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. 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 November 2012 and December of 2014. Excess valuation should be available for this project for 15 years beginning with the 2014 tax year. It is anticipated that 2 of the houses will be built by December 31 of 2013 and that the 3rd house will be built in 2013. 9. Justification of Project This is a residential neighborhood characterized by single family dwellings on smaller lots. The existing structure is considered worn out by the Hall County Assessor’s Office. The City of Grand Island is in need of additional housing units and this development will remove one very poor housing unit and replace it with 3 brand new units. This is infill development in an area with all city services available. This project does not propose to tear down any buildings with historic value. 10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority conduct a cost benefit analysis of the plan amendment in the event that Tax Increment Financing will be used. This analysis must address specific statutory issues. (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $47,763. The proposed demolition and subsequent construction of single family homes at this location will result in approximately $190,000 of additional taxable valuation based on the current valuation of other Habitat houses in the area. 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. Grand Island Council Session - 10/23/2012 Page 30 / 264 (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact schools. Fire and police protection are available and should not be impacted by this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; The proposed project 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 three single family homes. The existing structure is worn out and not acceptable as a housing unit. 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. This is a neighborhood that has benefited extensively from development by the Grand Island Habitat for Humanity Affiliate. This project will continue that investment and commitment. Time Frame for Development Development of this project is anticipated to be completed during between November 15, 2012 and December 31 of 2014. 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 with taxes due in 2015. 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 $66,000 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 demolition, site preparation, engineering, expenses and fees reimbursed to the City and CRA, and financing fees the developer will spend at least $71,513 on TIF eligible activities. Grand Island Council Session - 10/23/2012 Page 31 / 264 See Attached Building Plans and Photos included with application Grand Island Council Session - 10/23/2012 Page 32 / 264 BACKGROUND INFORMATION RELATIVE TO TAX INCREMENT FINANCING REQUEST Project Redeveloper Information Business Name: Grand Island Area Habitat for Humanity_________________________ Address: 410 W. 2nd St. #6, P.O. Box 1001, Grand Island, NE 68802 Telephone No.: 308-385-5510 Fax No.: _308-385-5511____________________ Contact: Dana Jelinek Brief Description of Applicant’s Business: Grand Island Area Habitat for Humanity (GIAHFH) is a non-profit housing organization working to help low-income households into safe, decent affordable homes they will own. Through community assistance, homes are built in partnership with qualifying households, then sold at the cost to build and with no interest loans. Present Ownership Proposed Project Site: 1103 St. Paul Rd. (legal: Pleasant Hill Add., Lots 8, 9, 10, 11 and 12 Proposed Project: Building square footage, size of property, description of buildings – materials, etc. Please attach site plan, if available. Grand Island Council Session - 10/23/2012 Page 33 / 264 The land available is 165’ x 138.75’. Once re-platted, it would accommodate three Habitat homes. Typical Habitat homes are energy efficient, 1070 sq. ft., three bedroom homes on a crawlspace. More bedrooms are added when necessary. Homes have hardi-plank siding, covered entries, architectural shingles, and a sodded yard. If Property is to be Subdivided, Show Division Planned: VI. Estimated Project Costs: Acquisition Costs: A. Land $ 22,895 B. Building $ 24,868 Construction Costs: A. Renovation or Building Costs: $183,000 B. On-Site Improvements: $ 13,800 re-platting, demo, asbestos removal, tree removal, etc. Soft Costs: A. Architectural & Engineering Fees: $ B. Financing Fees: $ 500 Closing costs, filing fees C. Legal/Developer/Audit Fees: $ D. Contingency Reserves: $ 2,500 E. Other (Please Specify) $ 2,750 TIF fees TOTAL $ 202,550 Total Estimated Market Value at Completion: $ 240,000 Source of Financing: A. Developer Equity: from GIAHFH reserves $ 47,763 Grand Island Council Session - 10/23/2012 Page 34 / 264 B. Commercial Bank Loan: $ Tax Credits: 1. N.I.F.A. $ 2. Historic Tax Credits $ D. Industrial Revenue Bonds: $ E. Tax Increment Assistance: $ 62,876 F. Other $ Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor: Dana Jelinek, Executive Director Grand Island Area Habitat for Humanity 410 W. 2nd St. #6, PO Box 1001 Grand Island, NE 68802 Phone: 308-385-5510/Fax: 308-385-5511 Estimated Real Estate Taxes on Project Site Upon Completion of Project: (Please Show Calculations) The estimated value on the homes upon completion will be $240,000, putting the estimated yearly taxes at $4,192. $240,000 x 2.18 (levy). Currently the site is under Homestead Exemption. Project Construction Schedule: Construction Start Date: Construction Completion Date: If Phased Project: 2013 Year 66% Complete 2014___________________ Year 100% Complete XII. Please Attach Construction Pro Forma XIII. Please Attach Annual Income & Expense Pro Forma (With Appropriate Schedules) Grand Island Council Session - 10/23/2012 Page 35 / 264 TAX INCREMENT FINANCING REQUEST INFORMATION Describe Amount and Purpose for Which Tax Increment Financing is Requested: Amount of Incremental Prospective Annual real Estate Taxes over 2011 Real Estate Taxes on the subject property for 15 years will be used to redevelop the property. Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed Project: Grants for lot acquisition through Habitat for Humanity and HUD are no longer structured for Habitat affiliates of our size. With grants for land acquisition gone and difficulty in finding affordable land on which to build, GIAHFH is seeking other partnerships. Land costs, plus demo on the proposed properties is far beyond what we can afford on our own. TIF funding for the purchase of the property allows us to acquire not just land on which to build, but also allows us to tear down a property that has been falling into disrepair for years. The purchase of this property is contingent upon TIF approval. The added value of three proposed new homes benefits the community and the neighborhood, not to mention the low-income families who will partner on the projects. With fewer private entities building small houses (limited/no profit margin), Habitat fills that gap. Municipal and Corporate References (if applicable). Please identify all other Municipalities, and other Corporations the Applicant has been involved with, or has completed developments in, within the last five (5) years, providing contact person, telephone and fax numbers for each: Since 1992, GIAHFH has completed 69 homes, 59 of which have been in Grand Island. Another Grand Island home is currently under construction, Grand Island Council Session - 10/23/2012 Page 36 / 264 with two more yet to begin this year. Over $80,000 in property taxes are paid each year on GIAHFH homes. Most of those homes stand on once vacant lots, while a handful replaced deteriorated structures. In 20 years, GIAHFH has partnered with various volunteer groups, sub- contractors and suppliers, plus donors, to make safe, affordable housing a reality for qualifying low-income households. Families selected must meet income requirements (30-50% of median income), have the ability to pay a no-interest home loan based on the cost to build, and contribute 500 hours of sweat equity (including 20 hours of home-ownership education). A thorough selection process looks at applications, tax returns, pay stubs, debt to income, credit reports, and background reports, plus families participate in meetings, interviews and home visits. In the last five years, both the CRA and City of Grand Island (NSP) provided funds for demolition of deteriorated properties or land where those properties once stood. Both partnerships made way for Habitat home construction. The CRA also provided water lines to an area where we completed four homes. IV. Please Attach Applicant’s Corporate/Business Annual Financial Statements for the Last Three Years. Audited financial statements are available upon request. Post Office Box 1968 Grand Island, Nebraska 68802-1968 Phone: 308 385-5240 Fax: 308 385-5423 Email: cnabity@grand-island.com Grand Island Council Session - 10/23/2012 Page 37 / 264 The budget below represents a standard three bedroom home. The number of bedrooms is based on the number of people in the household. Since not all the families have been selected for the proposed homes (application period opens in December), there is the chance that one or more of the homes may need to be larger. Costs to build would increase, as would property values on a larger home. Construction Budget Three-Bedroom Habitat for Humanity Home Cost Permits/Curb Cut/Site Prep 950 Pre-construction Total 950 Contract Labor Drywall Finishing 1200 Gutters 700 Floor Covering 2000 Heating/Venting 4200 Plumbing 6000 Termite Control 325 Construction Supervisor/Manager Stipends 3100 Electrical 1250 Landscaping 2400 Contract Labor (other) 375 Contract Labor Total 21550 Materials/Supplies Lumber & Building Materials 15000 Insulation 1200 Electrical Supplies/Lights 4000 Masonry/Concrete 4200 Paint 400 Doors, Trim & Cabinets 5850 Windows 1500 Appliances 1500 Materials/Supply Total 33650 Indirect Construction Costs Administration 4000 Public Works 200 Sanitation/Garbage 500 Utilities during construction 150 Indirect Costs Total 4850 Total Costs 61000 Grand Island Council Session - 10/23/2012 Page 38 / 264 Typical plan used for a corner lot. Typical plan used for interior lots. Grand Island Council Session - 10/23/2012 Page 39 / 264 Above: Typical three bedroom home on a corner lot. Right: Typical three bedroom home on an interior lot. Note – NSP funds were used to tear down the garage in the background to make way for the home next door. Bottom: A four bedroom home on a corner lot where CRA provided water lines. Grand Island Council Session - 10/23/2012 Page 40 / 264 Grand Island Council Session - 10/23/2012 Page 41 / 264 Grand Island Council Session - 10/23/2012 Page 42 / 264 Grand Island Council Session - 10/23/2012 Page 43 / 264 Grand Island Council Session - 10/23/2012 Page 44 / 264 Grand Island Council Session - 10/23/2012 Page 45 / 264 Grand Island Council Session - 10/23/2012 Page 46 / 264 Grand Island Council Session - 10/23/2012 Page 47 / 264 Grand Island Council Session - 10/23/2012 Page 48 / 264 Grand Island Council Session - 10/23/2012 Page 49 / 264 Grand Island Council Session - 10/23/2012 Page 50 / 264 Grand Island Council Session - 10/23/2012 Page 51 / 264 Grand Island Council Session - 10/23/2012 Page 52 / 264 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 Grand Island Habitat for Humanity, a 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, Authority and Redeveloper desire to enter into this Redevelopment Contract for acquisition and redevelopment of a parcel in the blighted and substandard area; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS AND INTERPRETATION Section 1.01 Terms Defined in this Redevelopment Contract. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Redevelopment Contract, such definitions to be equally applicable to both the singular and plural forms and masculine, feminine and neuter gender of any of the terms defined: “Act” means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska, 2007, as amended, and acts amendatory thereof and supplemental thereto “Authority” means the Community Redevelopment Authority of the City of Grand Island, Nebraska. “City” means the City of Grand Island, Nebraska. “Governing Body” means the Mayor and City Council of the City. Grand Island Council Session - 10/23/2012 Page 53 / 264 “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 fully described in application of the Redeveloper to the Authority for assistance and the Redevelopment Plan Amendment, related to the application, approved by the Governing Body incorporated herein by reference and, as used herein, shall include the rehabilitation costs to the existing commercial building on a portion of the Redevelopment Area real estate. “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 C. “Redeveloper” means Grand Island Habitat for Humanity, a 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 the note incurred by the Authority pursuant to Article III hereof and secured in whole or in part by TIF Revenues, as shown on attached Exhibit B. “TIF Revenues” means incremental ad valorem taxes generated by the Project which are allocated to and paid to the Authority pursuant to the Act. Section 1.02 Construction and Interpretation. The provisions of this Redevelopment Contract shall be construed and interpreted in accordance with the following provisions: (a)Wherever in this Redevelopment Contract it is provided that any person may do or perform any act or thing the word “may” shall he deemed permissive and not mandatory and it shall be construed that such person shall have the right, but shall not be Grand Island Council Session - 10/23/2012 Page 54 / 264 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. (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 Grand Island Council Session - 10/23/2012 Page 55 / 264 (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 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. (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 Grand Island Council Session - 10/23/2012 Page 56 / 264 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. (h)The Redeveloper hereby verifies it has been legally obligated to incur the costs set forth on Exhibit C as part of the Project. 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: Lots 8, 9, 10, 11 and 12 Pleasant Hill Addition to the City of Grand Island, Hall County Nebraska, 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, 2014. (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 Grand Island Council Session - 10/23/2012 Page 57 / 264 premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, such Project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such Project shall be paid into the funds of the respective public bodies. Section 3.02 Issuance of TIF Indebtedness The Authority shall execute and deliver to the Redeveloper, as Purchaser, at closing, the TIF Indebtedness in substantially the same form as the copy attached hereto as Exhibit B. The purchase price of the TIF Indebtedness shall be offset against the Grant described in Section 3.04 hereof. 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 B, the Authority shall grant the following sums to the following entities, to wit: 100% to the Redeveloper for Project Costs. Notwithstanding the foregoing, the amount of the grant shall not exceed the amount of Project Costs certified pursuant to Section 4.02. The grants shall be paid to the Redeveloper upon certification that the Redeveloper has incurred or is obligated to incur such Project Costs which include supporting documentation requested by Authority from time to time. Grand Island Council Session - 10/23/2012 Page 58 / 264 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. 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 C in an amount at least equal to the grant to Redeveloper pursuant to Section 3.05. Grand Island Council Session - 10/23/2012 Page 59 / 264 Section 4.03 Costs. Redeveloper shall pay the Authority the following sums on execution of this agreement: a. $1,750 for legal expenses of Authority (Should this be $1250 or is our price going up) b. $1,000 for City administrative accounting of incremental tax payments. c. $500 for Authority administrative fees. 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 of the Redevelopment Area and Project of One Hundred Ninety Thousand Dollars ($190,000) no later than January 1, 2013. During the period that any TIF Indebtedness is outstanding, neither the Redeveloper, nor its assigns, will convey the Redevelopment Area on 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 allow real estate taxes and assessments levied on the Redevelopment Area and Project to become delinquent during the term that any TIF Indebtedness is outstanding. Section 4.07 Assignment or Conveyance. Any assignment or conveyance of the any portion of the Redevelopment, the Project or any interest therein prior to the termination of the 15 year period commencing on the effective date specified in Section 3.01 hereof Area by the Redeveloper shall be subject to the terms and conditions of this Redevelopment Contract. (Need to address selling these properties) 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 offset such purchase against the grant provided in Section 3.04 hereof. Section 4.09 Penal Bond. The Redeveloper shall execute a penal bond for the Project with good and sufficient Grand Island Council Session - 10/23/2012 Page 60 / 264 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. Redeveloper agrees that any contractor providing services on the Project site will utilize the federal immigration verification system, as defined in Section 4-114, Reissue Revised Statutes of Nebraska, (Supp. 2009), to determine the work eligibility status of new employees physically performing services on the Project. 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. ARTICLE VI DEFAULT, REMEDIES; INDEMNIFICATION Section 6.01 General Remedies of Authority and Redeveloper. Subject to the further provisions of this Article VI, in the event of any failure to perform or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto or any successor to such party, such party, or successor, shall, upon written notice from the other, proceed immediately to commence such actions as may be reasonably designed to cure or remedy such failure to perform or breach which cure or remedy shall be accomplished within a reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or diligently pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may institute such proceedings as may be necessary or desirable to enforce its rights under this Redevelopment Contract, including, but not limited to, proceedings to compel specific performance by the party failing to perform on in breach of its obligations. Section 6.02 Additional Remedies of Authority Grand Island Council Session - 10/23/2012 Page 61 / 264 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, 2015, or shall abandon construction work for any period of 90 days, (b)the Redeveloper, on successor in interest, shall fail to pay real estate taxes or assessments on the Redevelopment Area on any part thereof or payments in lieu of taxes pursuant to Section 4.07 when due; or (c) There is, in violation of Section 4.08 of this Redevelopment Contract, and such failure or action by the Redeveloper has not been cured within 30 days following written notice from Authority, then the Redeveloper shall be in default of this Redevelopment Contract. In the event of such failure to perform, breach or default occurs and is not cured in the period herein provided, the parties agree that the damages caused to the Authority would be difficult to determine with certainty and that a reasonable estimation of the amount of damages that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness, plus interest on such amounts as provided herein (the “Liquidated Damages Amount”). The Liquidated Damages Amount shall be paid by Redeveloper to Authority within 30 days of demand from Authority. Interest shall accrue on the Liquidated Damages Amount at the rate of one percent (1%) over the prime rate as published and modified in the Wall Street Journal from time to time and interest shall commence from the date that the Authority gives notice to the Redeveloper demanding payment. Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its obligation to pay real estate taxes or assessments with respect to the Project. Section 6.03 Remedies in the Event of Other Redeveloper Defaults. In the event the Redeveloper fails to perform any other provisions of this Redevelopment Contract (other than those specific provisions contained in Section 6.02), the Redeveloper shall be in default. In such an instance, the Authority may seek to enforce the terms of this Redevelopment Contract or exercise any other remedies that may be provided in this Redevelopment Contract or by applicable law; provided, however, that the default covered by this Section shall not give rise to a right or rescission on termination of this Redevelopment Contract, and shall not be covered by the Liquidated Damages Amount. Grand Island Council Session - 10/23/2012 Page 62 / 264 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 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 Grand Island Council Session - 10/23/2012 Page 63 / 264 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. IN WITNESS WHEREOF, Authority 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 - 10/23/2012 Page 64 / 264 Grand Island Habitat for Humanity _____________________________ 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 - 10/23/2012 Page 65 / 264 STATE OF NEBRASKA ) ) ss. COUNTY OF __________) The foregoing instrument was acknowledged before me this ______ day of ______, _____, by ____________________, President of Grand Island Habitat for Humanity, on behalf of the company. __________________________________ Notary Public Grand Island Council Session - 10/23/2012 Page 66 / 264 EXHIBIT A DESCRIPTION OF REDEVELOPMENT AREA Lots 8, 9, 10, 11 and 12 Pleasant Hill Addition to the City of Grand Island. A-I Grand Island Council Session - 10/23/2012 Page 67 / 264 EXHIBIT B FORM OF TIF INDEBTEDNESS Exhibit B THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (1933 ACT) AND MAY NOT BE TRANSFERRED, ASSIGNED, SOLD OR HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE 1933 ACT SHALL BE IN EFFECT WITH RESPECT HERETO AND THERE SHALL HAVE BEEN COMPLIANCE WITH THE 1933 ACT AND ALL RULES AND REGULATIONS THEREUNDER, OR THERE SHALL HAVE BEEN DELIVERED TO THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND (THE AUTHORITY) PRIOR TO SUCH TRANSFER, ASSIGNMENT, SALE OR HYPOTHECATION, AN OPINION OF COUNSEL, SATISFACTORY TO THE AUTHORITY TO THE EFFECT THAT REGISTRATION UNDER THE 1933 ACT IS NOT REQUIRED. UNITED STATES OF AMERICA STATE OF NEBRASKA COUNTY OF HALL TAX INCREMENT REVENUE NOTE OF THE COMMUNITY AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (HABITAT FOR HUMANITY PROJECT) Principal Amount Interest Rate Per Annum Final Maturity Date $66,000 0.00%December 31, 2027 KNOW ALL PERSONS BY THESE PRESENTS: That the Community Redevelopment Authority of the City of Grand Island, Nebraska, hereby acknowledges itself to owe and for value received promises to pay, but only from the sources herein designated, to the registered holder hereof, the principal sum shown above in lawful money of the United States of America with such principal sum to become due on the maturity date set forth above, with interest at the rate of zero percent [0.00%] per annum on the unpaid balance. This Note is due and payable in full on December 31, 2027. This Note shall also be subject to mandatory partial redemption, without notice, on each June 1 and December 1, (“ Payment Date”) beginning June 1, 2014, from all funds available in the Debt Service Fund established by the Grand Island City Treasurer for the tax increment revenues pledged to payment of this Note, rounded down to the nearest one hundred dollars (which funds are referred to in this Note as "Available Funds"). Available Funds shall be applied to the prepayment of principal on each payment date and shall be remitted to the Grand Island Council Session - 10/23/2012 Page 68 / 264 registered owner of the Note. The payment of principal due upon the final maturity is payable upon presentation and surrender of this Note to the Treasurer of said Authority, as Paying Agent and Registrar for said Authority, at the offices of the Community Redevelopment Authority of the City of Grand Island at City Hall, in Grand Island, Nebraska. The payments of mandatory partial redemption of principal on each payment date (other than at final payment) will be paid when due by a check or draft mailed by said Paying Agent and Registrar to the registered owner of this Note, as shown on the books or record maintained by the Paying Agent and Registrar, at the close of business on the last business day of the calendar month immediately preceding the calendar month in which the payment date occurs, to such owner's address as shown on such books and records. The Authority, however, reserves the right and option of prepaying principal of this Note, in whole or in part, from any available sources at any time at the principal amount thereof. Notice of any such optional prepayment shall be given by mail, sent to the registered owner of this Note at said registered owner's address. The principal of this Note shall be subject to mandatory redemptions made in part on any payment date, as set forth in this Note, from available funds without any requirement for notice. This Note is the single Note in the total principal amount of Sixty Six Thousand and no one hundredths Dollars ($66,000.00) issued by the Authority for the purpose of paying the costs of redevelopment of certain real estate located in the City of Grand Island, as designated in that redevelopment plan amendment recommended by the Authority and approved by the City Council of the City of Grand Island, Nebraska, (the “Plan”), all in compliance with Article 21 of Chapter 18, Reissue Revised Statutes of Nebraska, 2007, as amended, and has been duly authorized by resolution passed and approved by the governing body of the Authority (the "Resolution"). This Note constitutes a limited obligation of the Authority payable exclusively from that portion of the ad valorem real estate taxes mentioned in subdivision (1) 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 "Project" (as defined in the Redevelopment Contract). Pursuant to Section 18-2150, R.R.S. Neb. 2007, said portion of taxes has been pledged for the payment of this Note, as the same become subject to mandatory redemption. This Note 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. This Note shall not constitute an obligation of the State of Nebraska or of the City or Grand Island (except for such receipts as have been pledged pursuant to Section 18-2150 R.R.S. Neb. 2007) and neither the State or Nebraska nor the City of Grand Island 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 18-2150 R.R.S. Neb. 2007). Neither the members of the Authority's governing body nor any person executing this Note shall be liable personally on this Note by reason of the issuance hereof. This Note is transferable by the registered owner or such owner's attorney duly authorized in writing at the office of the Paying Agent and Registrar upon surrender of this Note for notation of transfer as provided on the reverse hereof and subject to the conditions provided Grand Island Council Session - 10/23/2012 Page 69 / 264 for established by the Authority. The Authority, the Paying Agent and Registrar and any other person may treat the person whose name this Note is registered as the absolute owner hereof for the purposes of receiving payment due hereunder and for all purposes and shall not be affected by any notice to the contrary, whether this Note be overdue or not. THIS NOTE MAY ONLY BE TRANSFERRED TO PERSONS OR ENTITIES DELIVERING AN INVESTMENT LETTER TO THE PAYING AGENT AND REGISTRAR CONFORMING TO REQUIREMENTS ESTABLISHED BY THE AUTHORITY. If the day for payment of the principal of this Note shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of Grand Island, Nebraska, are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. THE PRINCIPAL AND INTEREST DUE ON THIS NOTE SHALL BE REDUCED TO ZERO AFTER ALL AVAILABLE FUNDS PLEDGED TO THIS NOTE HAVE BEEN PAID TO THE HOLDER HEREOF REGARDLESS OF WHETHER SUCH PAYMENTS ARE SUFFICIENT TO AMORTIZE THE ORIGINAL PRINCIPAL AND INTEREST HEREON. “AVAILABLE FUNDS” IN THIS REGARD SHALL MEAN ALL INCREMENTAL AD VALOREM TAXES RELATED TO THE PROJECT WHICH BECOME DELINQUENT PRIOR TO JANUARY 1, 2027. IN WITNESS WHEREOF, the Chair and Secretary of the Community Redevelopment Authority of the City of Grand Island have caused this Note to be executed on behalf of said Authority by being signed by the Chair and Secretary and by causing the official seal of said Authority to be affixed hereto, all as of the date of issue shown above. Delivered this ___th day of ____________, 2012. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA : By:_________________________ _ Chair ATTEST: _________________ Secretary Grand Island Council Session - 10/23/2012 Page 70 / 264 PROVISION FOR REGISTRATION The ownership of this Note shall be registered as to both principal and interest on the books and records of the Community Redevelopment Authority of the City of Grand Island, Nebraska, kept by the Paying Agent and Registrar identified in the foregoing Note, who shall make notation of such registration in the registration blank below, and the transfer of this Note may thereafter be registered only upon an assignment duly executed by the registered owner or such owner’s attorney or legal representative, in such form as shall be satisfactory to said Paying Agent and Registrar, such registration of transfer to be made on such books and endorsed hereon by said Paying Agent and Registrar Date of Registration Name of Registered Owner Signature of Paying Agent and Registrar __________, 2012 Grand Island Habitat for Humanity ______________________ B- 1 Grand Island Council Session - 10/23/2012 Page 71 / 264 EXHIBIT C PROJECT COSTS All Project Costs payable from the proceeds of TIF indebtedness pursuant to the Act including: 1. Existing building rehabilitation $47,673 2. Demolition & site preparation $19,000 3. Authority costs $ 2,750 4. Engineering $ 1,500 5. Administrative fee City $ 500 TOTAL $71,513 (exceeds TIF proceeds) Grand Island Council Session - 10/23/2012 Page 72 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item E4 Public Hearing on Amendment to the Redevelopment Plan Area 2 Located at 1112 South Locust Street Staff Contact: Chad Nabity Grand Island Council Session - 10/23/2012 Page 73 / 264 Council Agenda Memo From:Chad Nabity, AICP Meeting:October 23, 2012 Subject:Amendment to Redevelopment Plan for CRA Area #2 Item #’s:E-4 & I-3 Presenter(s):Chad Nabity, AICP CRA Director Background In 1999, the Grand Island City Council declared property referred to as CRA Area #2 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. The developer intends to use Tax Increment Financing to aid in renovation of the existing retail space at this site. This project would not be possible without the use of TIF. The property is located within Redevelopment Area #2 at 1135 South Locust Street, Lot 1 of Dowd Subdivision, in the City of Grand Island, Hall County Nebraska. The CRA reviewed the proposed development plan on September 19th, 2012 and forwarded it to the Hall County Regional Planning Commission for recommendation at their meeting on October 3rd, 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 October 3rd, 2012. The Planning Commission approved Resolution 2013-01 in support of the proposed amendment, declaring the proposed amendment to be consistent with the Comprehensive Development Plan for the City of Grand Island. Grand Island Council Session - 10/23/2012 Page 74 / 264 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 #2 and authorizes the CRA to execute a contract for TIF based on the plan amendment. This includes the renovation existing retail space along South Locust north of the Central Nebraska Health Department along with development of a 3 unit apartment building facing Pine Street on the same property. 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 $160,000 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 - 10/23/2012 Page 75 / 264 Redevelopment Plan Amendment Grand Island CRA Area #2 August 2012 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area #2 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 #2. Executive Summary: Project Description THE RENOVATION OF THE EXISTING COMMERCIAL BUILDING AT 1135 SOUTH LOCUST STREET ALONG WITH THE CONSTRUCTION OF A THREE- DWELLING UNIT APARTMENT BUILDING ON ADJACENT PROPERTY TO THE EAST FRONTING ONTO PINE STREET AND THE SUBSEQUENT SITE WORK, UTILITY, ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR THE RENOVATION AT THIS LOCATION. The developer intends to use Tax Increment Financing to aid in renovation of the commercial building on South Locust Street. The developer will be building a three unit apartment building on the side of the block that is primarily residential development. The increment from the new construction will be used to make the improvements to the existing commercial building. This project would not be possible in an affordable manner without the use of TIF. The site is owned by the developer. All site work, demolition 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, 2015 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 just north of the Central Nebraska Health Department on the between South Locust Avenue and Pine Street in southern Grand Island. The attached map identifies the subject property and the surrounding land uses: Legal Descriptions Lot 1 of Dowd Subdivision, in the City of Grand Island, Hall County Nebraska. Grand Island Council Session - 10/23/2012 Page 76 / 264 Grand Island Council Session - 10/23/2012 Page 77 / 264 The tax increment will be captured for the tax years the payments for which become delinquent in years 2015 through 2029 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 rehabilitation of the hotel convention center property and development of a national chain restaurant 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 - 10/23/2012 Page 78 / 264 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 September 13, 1999. [§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 rehabilitate an existing conforming 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 #2 provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority and no additional acquisition proposed by the developer. b. Demolition and Removal of Structures: The project to be implemented with this plan amendment does not call for the demolition and removal of any existing structures. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. The site is planned for mixed use 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 - 10/23/2012 Page 79 / 264 City of Grand Island Future Land Use Map Grand Island Council Session - 10/23/2012 Page 80 / 264 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned B2-AC General Business zone with an Arterial Commercial Overlay along the Locust side and R3-Medium Density Residential along the Pine Street side. 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. The proposed uses for commercial retail/office space in the existing building and multi-family residential along Pine Street are permitted in the current zoning districts. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing rehabilitate the existing structure a conforming structure and use in the B2-AC zoning district. The R-3 zoning district allows for the development of 1 dwelling unit for each 3000 square feet of lot space. Approximately 14,300 square feet of the property is zoned R3 so there is sufficient property to support the development of a 3-plex. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities This site has full service to municipal utilities. No 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, owned by the developer is currently vacant commercial space in poor condition. The proposed use of this property would continue as a commercial rental space with the addition of residential uses along the east side. No individuals or families will be relocated as a result of this project. [§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] 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. Grand Island Council Session - 10/23/2012 Page 81 / 264 The developer has owned the property for since 20??. The cost of property acquisition is not being included as a TIF eligible expense. Costs for rehabilitation of the existing commercial structure are estimated at $150,000. Soft costs including: Architectural/Engineering, Financing, Legal and Audit costs total $2500. Fees and reimbursement to the City and the CRA of $6,500 are included as a TIF eligible expense. The developer will also have costs associated with site preparation and utility connections for the residential development. The total eligible costs will exceed $160,000. 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 $159,738 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, 2015 through December 31, 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 that it will allow for the utilization of and redevelopment of commercial lots. This will not significantly impact traffic on at the intersection of South Locust or on Pine Street. Grand Island Council Session - 10/23/2012 Page 82 / 264 Renovated commercial development will raise property values and provide a stimulus to keep surrounding properties properly maintained. The development of multi-family residential on this property is consistent with the property developed by Goodwill Industries to the south and east of site and will provide a buffer between the commercial space and the single family residential to the north and east. 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 January 2013 and December of 2013. Excess valuation should be available for this project for 15 years beginning with the 2014 tax year. 9. Justification of Project The South Locust Corridor is a major entrance for the City of Grand Island from Interstate 80. The Heartland Events Center, the State Fair Park and associated buildings and other attractions are all located along South Locust. The South Locust Business Improvement District and City of Grand Island have spent a considerable amount of money on landscaping and aesthetic treatments along this corridor. The City has codified those improvements as development occurs south of the U.S. 34 and Locust. This is a gateway to the community and for many people from outside the area is what they will use to judge our City. Significant investments have been made by the developer in properties along the west side of Locust and by the Central Nebraska Health Department in their Building. Goodwill Industries has invested federal grant dollars in housing in this neighborhood. The existing commercial building is negatively impacting the area and the property values in the area. Renovation of this building is a significant improvement that will increase the marketability adjoining properties and provide appropriate commercial uses along this corridor. Grand Island is always in need of additional quality housing units. The development of three rental units will provide a buffer between the commercial space and the existing single family residential. This is infill development with all necessary utilities and public improvements needed to support the development. 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 $90,150. The proposed renovation of the existing commercial building will result in an estimated additional $93,600 of taxable valuation based on an analysis by the Hall County Assessor’s office. The multi-family residential will add an additional $391,981 of Grand Island Council Session - 10/23/2012 Page 83 / 264 taxable valuation according to estimates provided by the Hall County Assessor’s office. The total tax increment created by this project is $485,600. No tax shifts are anticipated from the project. The project creates additional valuation that will support taxing entities long after the project is paid off. (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact schools. Fire and police protection are available and should not be impacted by this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; The proposed facility will provide jobs for persons employed by the contractors that will be involved with the project. It will result renovated commercial space along South Locust and additional housing units within the City. (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 should not have any measurable negative impacts on other employers or employees in the city. Potential positive impacts include additional housing close to the South Locust commercial strip. This may provide quality decent housing for employees of South Locust businesses within walking distance of work. (e) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This will improve South Locust near the entrance to Fonner Park and the State Fair. Grand Island is always in need of additional quality housing. These three units will provide additional new housing near one of our major commercial strips. Time Frame for Development Development of this project is anticipated to be completed during between January 1, 2013 and December 31 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 $159,738 the projected amount of increment based upon the anticipated value of the project and current tax rate. Grand Island Council Session - 10/23/2012 Page 84 / 264 Based on the estimates of the expenses of the cost of renovation, site preparation, engineering, expenses and fees reimbursed to the City and CRA, and financing fees the developer will spend over $160,000 on TIF eligible activities. See Attached Building Plans (with TIF application) Grand Island Council Session - 10/23/2012 Page 85 / 264 Grand Island Council Session - 10/23/2012 Page 86 / 264 Grand Island Council Session - 10/23/2012 Page 87 / 264 Grand Island Council Session - 10/23/2012 Page 88 / 264 Grand Island Council Session - 10/23/2012 Page 89 / 264 Grand Island Council Session - 10/23/2012 Page 90 / 264 Grand Island Council Session - 10/23/2012 Page 91 / 264 Grand Island Council Session - 10/23/2012 Page 92 / 264 Grand Island Council Session - 10/23/2012 Page 93 / 264 Grand Island Council Session - 10/23/2012 Page 94 / 264 Grand Island Council Session - 10/23/2012 Page 95 / 264 Grand Island Council Session - 10/23/2012 Page 96 / 264 Grand Island Council Session - 10/23/2012 Page 97 / 264 Grand Island Council Session - 10/23/2012 Page 98 / 264 Grand Island Council Session - 10/23/2012 Page 99 / 264 Grand Island Council Session - 10/23/2012 Page 100 / 264 Grand Island Council Session - 10/23/2012 Page 101 / 264 Grand Island Council Session - 10/23/2012 Page 102 / 264 Grand Island Council Session - 10/23/2012 Page 103 / 264 Grand Island Council Session - 10/23/2012 Page 104 / 264 Grand Island Council Session - 10/23/2012 Page 105 / 264 Grand Island Council Session - 10/23/2012 Page 106 / 264 Grand Island Council Session - 10/23/2012 Page 107 / 264 Grand Island Council Session - 10/23/2012 Page 108 / 264 Grand Island Council Session - 10/23/2012 Page 109 / 264 Grand Island Council Session - 10/23/2012 Page 110 / 264 Grand Island Council Session - 10/23/2012 Page 111 / 264 Grand Island Council Session - 10/23/2012 Page 112 / 264 Grand Island Council Session - 10/23/2012 Page 113 / 264 Grand Island Council Session - 10/23/2012 Page 114 / 264 Grand Island Council Session - 10/23/2012 Page 115 / 264 Grand Island Council Session - 10/23/2012 Page 116 / 264 Grand Island Council Session - 10/23/2012 Page 117 / 264 Grand Island Council Session - 10/23/2012 Page 118 / 264 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 Auto One, Inc., a 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, Authority and Redeveloper desire to enter into this Redevelopment Contract for acquisition and redevelopment of a parcel in the blighted and substandard area; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS AND INTERPRETATION Section 1.01 Terms Defined in this Redevelopment Contract. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Redevelopment Contract, such definitions to be equally applicable to both the singular and plural forms and masculine, feminine and neuter gender of any of the terms defined: “Act” means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska, 2007, as amended, and acts amendatory thereof and supplemental thereto “Authority” means the Community Redevelopment Authority of the City of Grand Island, Nebraska. “City” means the City of Grand Island, Nebraska. “Governing Body” means the Mayor and City Council of the City. “Holder” means the holders of TIF indebtedness issued by the Authority from time to Grand Island Council Session - 10/23/2012 Page 119 / 264 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 fully described in application of the Redeveloper to the Authority for assistance and the Redevelopment Plan Amendment, related to the application, approved by the Governing Body incorporated herein by reference and, as used herein, shall include the rehabilitation costs to the existing commercial building on a portion of the Redevelopment Area real estate. “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 C. “Redeveloper” means Auto One, Inc., a 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 the note incurred by the Authority pursuant to Article III hereof and secured in whole or in part by TIF Revenues, as shown on attached Exhibit B. “TIF Revenues” means incremental ad valorem taxes generated by the Project which are allocated to and paid to the Authority pursuant to the Act. Section 1.02 Construction and Interpretation. The provisions of this Redevelopment Contract shall be construed and interpreted in accordance with the following provisions: (a)Wherever in this Redevelopment Contract it is provided that any person may do or perform any act or thing the word “may” shall he deemed permissive and not mandatory and it shall be construed that such person shall have the right, but shall not be obligated, to do and perform any such act or thing. Grand Island Council Session - 10/23/2012 Page 120 / 264 (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. (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 Grand Island Council Session - 10/23/2012 Page 121 / 264 (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 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. (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 Grand Island Council Session - 10/23/2012 Page 122 / 264 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. (h)The Redeveloper hereby verifies it has been legally obligated to incur the costs set forth on Exhibit C as part of the Project. 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: Lot 1 of Dowd Subdivision, in the City of Grand Island, Hall County Nebraska, 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, 2014. (a)That proportion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the Redevelopment Project Valuation (as defined in the Act) shall be paid into the funds of each such public body in the same proportion as all other taxes collected by or for the bodies; and (b)That proportion of the ad valorem tax on real property in the Redevelopment Area in excess of such amount (the “Incremental Ad Valorem Tax”), if any, shall be allocated to, is pledged to, and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by whether funded, refunded, assumed, or otherwise, Grand Island Council Session - 10/23/2012 Page 123 / 264 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 The Authority shall execute and deliver to the Redeveloper, as Purchaser, at closing, the TIF Indebtedness in substantially the same form as the copy attached hereto as Exhibit B. The purchase price of the TIF Indebtedness shall be offset against the Grant described in Section 3.04 hereof. 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 B, the Authority shall grant the following sums to the following entities, to wit: 100% to the Redeveloper for Project Costs. Notwithstanding the foregoing, the amount of the grant shall not exceed the amount of Project Costs certified pursuant to Section 4.02. The grants shall be paid to the Redeveloper upon certification that the Redeveloper has incurred or is obligated to incur such Project Costs which include supporting documentation requested by Authority from time to time. Grand Island Council Session - 10/23/2012 Page 124 / 264 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. 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 C in an amount at least equal to the grant to Redeveloper pursuant to Section 3.05. Grand Island Council Session - 10/23/2012 Page 125 / 264 Section 4.03 Costs. Redeveloper shall pay the Authority the following sums on execution of this agreement: a. $5,000 for legal expenses of Authority b. $1,000 for City administrative accounting of incremental tax payments. c. $500 for Authority administrative fees. 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 of the Redevelopment Area and Project of Five Hundred Seventy Five Thousand Dollars ($575,000) no later than January 1, 2015. 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 Five Hundred Seventy Five Thousand Dollars ($575,000) after substantial completion or occupancy; (2) convey the Redevelopment Area on structures thereon to any entity which would be exempt from the payment of real estate taxes or cause the nonpayment of such real estate taxes; nor (3) allow real estate taxes and assessments levied on the Redevelopment Area and Project to become delinquent during the term that any TIF Indebtedness is outstanding. Section 4.07 Assignment or Conveyance. Any assignment or conveyance of the any portion of the Redevelopment, the Project or any interest therein prior to the termination of the 15 year period commencing on the effective date specified in Section 3.01 hereof Area by the Redeveloper shall be subject to the terms and conditions of this Redevelopment Contract. Section 4.08 Purchase of TIF Indebtedness. The Redeveloper shall purchase the TIF Indebtedness at 100% of the principal amount thereof upon issuance of such debt. The Authority offset such purchase against the grant provided in Section 3.04 hereof. Grand Island Council Session - 10/23/2012 Page 126 / 264 Section 4.09 Penal Bond. The Redeveloper 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. Redeveloper agrees that any contractor providing services on the Project site will utilize the federal immigration verification system, as defined in Section 4-114, Reissue Revised Statutes of Nebraska, (Supp. 2009), to determine the work eligibility status of new employees physically performing services on the Project. 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. ARTICLE VI DEFAULT, REMEDIES; INDEMNIFICATION Section 6.01 General Remedies of Authority and Redeveloper. Subject to the further provisions of this Article VI, in the event of any failure to perform or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto or any successor to such party, such party, or successor, shall, upon written notice from the other, proceed immediately to commence such actions as may be reasonably designed to cure or remedy such failure to perform or breach which cure or remedy shall be accomplished within a reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or diligently pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may institute such proceedings as may be necessary or desirable to enforce its rights under this Redevelopment Contract, including, but not limited to, proceedings to compel specific performance by the party failing to perform on in breach of its obligations. Grand Island Council Session - 10/23/2012 Page 127 / 264 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, 2015, or shall abandon construction work for any period of 90 days, (b)the Redeveloper, on successor in interest, shall fail to pay real estate taxes or assessments on the Redevelopment Area on any part thereof or payments in lieu of taxes pursuant to Section 4.07 when due; or (c) There is, in violation of Section 4.08 of this Redevelopment Contract, and such failure or action by the Redeveloper has not been cured within 30 days following written notice from Authority, then the Redeveloper shall be in default of this Redevelopment Contract. In the event of such failure to perform, breach or default occurs and is not cured in the period herein provided, the parties agree that the damages caused to the Authority would be difficult to determine with certainty and that a reasonable estimation of the amount of damages that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness, plus interest on such amounts as provided herein (the “Liquidated Damages Amount”). The Liquidated Damages Amount shall be paid by Redeveloper to Authority within 30 days of demand from Authority. Interest shall accrue on the Liquidated Damages Amount at the rate of one percent (1%) over the prime rate as published and modified in the Wall Street Journal from time to time and interest shall commence from the date that the Authority gives notice to the Redeveloper demanding payment. Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its obligation to pay real estate taxes or assessments with respect to the Project. Section 6.03 Remedies in the Event of Other Redeveloper Defaults. In the event the Redeveloper fails to perform any other provisions of this Redevelopment Contract (other than those specific provisions contained in Section 6.02), the Redeveloper shall be in default. In such an instance, the Authority may seek to enforce the terms of this Redevelopment Contract or exercise any other remedies that may be provided in this Redevelopment Contract or by applicable law; provided, however, that the default covered by this Section shall not give rise to a right or rescission on termination of this Redevelopment Contract, and shall not be covered by the Liquidated Damages Amount. Grand Island Council Session - 10/23/2012 Page 128 / 264 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 nor 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 nor 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 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 Grand Island Council Session - 10/23/2012 Page 129 / 264 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. IN WITNESS WHEREOF, Authority 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 - 10/23/2012 Page 130 / 264 Auto One, Inc. _____________________________ 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 - 10/23/2012 Page 131 / 264 STATE OF NEBRASKA ) ) ss. COUNTY OF __________) The foregoing instrument was acknowledged before me this ______ day of ______, _____, by ____________________, President of Auto One, Inc., on behalf of the company. __________________________________ Notary Public Grand Island Council Session - 10/23/2012 Page 132 / 264 EXHIBIT A DESCRIPTION OF REDEVELOPMENT AREA Lot 1 of Dowd Subdivision, in the City of Grand Island, Hall County Nebraska. A-I Grand Island Council Session - 10/23/2012 Page 133 / 264 EXHIBIT B FORM OF TIF INDEBTEDNESS Exhibit B THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (1933 ACT) AND MAY NOT BE TRANSFERRED, ASSIGNED, SOLD OR HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE 1933 ACT SHALL BE IN EFFECT WITH RESPECT HERETO AND THERE SHALL HAVE BEEN COMPLIANCE WITH THE 1933 ACT AND ALL RULES AND REGULATIONS THEREUNDER, OR THERE SHALL HAVE BEEN DELIVERED TO THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND (THE AUTHORITY) PRIOR TO SUCH TRANSFER, ASSIGNMENT, SALE OR HYPOTHECATION, AN OPINION OF COUNSEL, SATISFACTORY TO THE AUTHORITY TO THE EFFECT THAT REGISTRATION UNDER THE 1933 ACT IS NOT REQUIRED. UNITED STATES OF AMERICA STATE OF NEBRASKA COUNTY OF HALL TAX INCREMENT REVENUE NOTE OF THE COMMUNITY AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (AUTO ONE PROJECT) Principal Amount Interest Rate Per Annum Final Maturity Date $159,000 0.00%December 31, 2028 KNOW ALL PERSONS BY THESE PRESENTS: That the Community Redevelopment Authority of the City of Grand Island, Nebraska, hereby acknowledges itself to owe and for value received promises to pay, but only from the sources herein designated, to the registered holder hereof, the principal sum shown above in lawful money of the United States of America with such principal sum to become due on the maturity date set forth above, with interest at the rate of zero percent [0.00%] per annum on the unpaid balance. This Note is due and payable in full on December 31, 2028. This Note shall also be subject to mandatory partial redemption, without notice, on each June 1 and December 1, (“Payment Date”) beginning June 1, 2015, from all funds available in the Debt Service Fund established by the Grand Island City Treasurer for the tax increment revenues pledged to payment of this Note, rounded down to the nearest one hundred dollars (which funds are referred to in this Note as "Available Funds"). Available Funds shall be applied to the prepayment of principal on each payment date and shall be remitted to the Grand Island Council Session - 10/23/2012 Page 134 / 264 registered owner of the Note. The payment of principal due upon the final maturity is payable upon presentation and surrender of this Note to the Treasurer of said Authority, as Paying Agent and Registrar for said Authority, at the offices of the Community Redevelopment Authority of the City of Grand Island at City Hall, in Grand Island, Nebraska. The payments of mandatory partial redemption of principal on each payment date (other than at final payment) will be paid when due by a check or draft mailed by said Paying Agent and Registrar to the registered owner of this Note, as shown on the books or record maintained by the Paying Agent and Registrar, at the close of business on the last business day of the calendar month immediately preceding the calendar month in which the payment date occurs, to such owner's address as shown on such books and records. The Authority, however, reserves the right and option of prepaying principal of this Note, in whole or in part, from any available sources at any time at the principal amount thereof. Notice of any such optional prepayment shall be given by mail, sent to the registered owner of this Note at said registered owner's address. The principal of this Note shall be subject to mandatory redemptions made in part on any payment date, as set forth in this Note, from available funds without any requirement for notice. This Note is the single Note in the total principal amount of One Hundred Fifty Nine Thousand and no one hundredths Dollars ($159,000.00) issued by the Authority for the purpose of paying the costs of redevelopment of certain real estate located in the City of Grand Island, as designated in that redevelopment plan amendment recommended by the Authority and approved by the City Council of the City of Grand Island, Nebraska, (the “Plan”), all in compliance with Article 21 of Chapter 18, Reissue Revised Statutes of Nebraska, 2007, as amended, and has been duly authorized by resolution passed and approved by the governing body of the Authority (the "Resolution"). This Note constitutes a limited obligation of the Authority payable exclusively from that portion of the ad valorem real estate taxes mentioned in subdivision (1) 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 "Project" (as defined in the Redevelopment Contract). Pursuant to Section 18-2150, R.R.S. Neb. 2007, said portion of taxes has been pledged for the payment of this Note, as the same become subject to mandatory redemption. This Note 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. This Note shall not constitute an obligation of the State of Nebraska or of the City or Grand Island (except for such receipts as have been pledged pursuant to Section 18-2150 R.R.S. Neb. 2007) and neither the State or Nebraska nor the City of Grand Island 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 18-2150 R.R.S. Neb. 2007). Neither the members of the Authority's governing body nor any person executing this Note shall be liable personally on this Note by reason of the issuance hereof. This Note is transferable by the registered owner or such owner's attorney duly authorized in writing at the office of the Paying Agent and Registrar upon surrender of this Note for notation of transfer as provided on the reverse hereof and subject to the conditions provided Grand Island Council Session - 10/23/2012 Page 135 / 264 for established by the Authority. The Authority, the Paying Agent and Registrar and any other person may treat the person whose name this Note is registered as the absolute owner hereof for the purposes of receiving payment due hereunder and for all purposes and shall not be affected by any notice to the contrary, whether this Note be overdue or not. THIS NOTE MAY ONLY BE TRANSFERRED TO PERSONS OR ENTITIES DELIVERING AN INVESTMENT LETTER TO THE PAYING AGENT AND REGISTRAR CONFORMING TO REQUIREMENTS ESTABLISHED BY THE AUTHORITY. If the day for payment of the principal of this Note shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of Grand Island, Nebraska, are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. THE PRINCIPAL AND INTEREST DUE ON THIS NOTE SHALL BE REDUCED TO ZERO AFTER ALL AVAILABLE FUNDS PLEDGED TO THIS NOTE HAVE BEEN PAID TO THE HOLDER HEREOF REGARDLESS OF WHETHER SUCH PAYMENTS ARE SUFFICIENT TO AMORTIZE THE ORIGINAL PRINCIPAL AND INTEREST HEREON. “AVAILABLE FUNDS” IN THIS REGARD SHALL MEAN ALL INCREMENTAL AD VALOREM TAXES RELATED TO THE PROJECT WHICH BECOME DELINQUENT PRIOR TO JANUARY 1, 2028. IN WITNESS WHEREOF, the Chair and Secretary of the Community Redevelopment Authority of the City of Grand Island have caused this Note to be executed on behalf of said Authority by being signed by the Chair and Secretary and by causing the official seal of said Authority to be affixed hereto, all as of the date of issue shown above. Delivered this ___th day of ____________, 2012. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA : By:_________________________ _ Chair ATTEST: _________________ Secretary Grand Island Council Session - 10/23/2012 Page 136 / 264 PROVISION FOR REGISTRATION The ownership of this Note shall be registered as to both principal and interest on the books and records of the Community Redevelopment Authority of the City of Grand Island, Nebraska, kept by the Paying Agent and Registrar identified in the foregoing Note, who shall make notation of such registration in the registration blank below, and the transfer of this Note may thereafter be registered only upon an assignment duly executed by the registered owner or such owner’s attorney or legal representative, in such form as shall be satisfactory to said Paying Agent and Registrar, such registration of transfer to be made on such books and endorsed hereon by said Paying Agent and Registrar Date of Registration Name of Registered Owner Signature of Paying Agent and Registrar __________, 2012 Auto One, Inc.______________________ B- 1 Grand Island Council Session - 10/23/2012 Page 137 / 264 EXHIBIT C PROJECT COSTS All Project Costs payable from the proceeds of TIF indebtedness pursuant to the Act including: 1. Existing building rehabilitation $150,000 2. Financing and audit $ 2,500 3. Authority costs $ 6,500__ TOTAL $159,000 Grand Island Council Session - 10/23/2012 Page 138 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G1 Approving Minutes of October 9, 2012 City Council Regular Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 10/23/2012 Page 139 / 264 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL REGULAR MEETING October 9, 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 October 9, 2012. Notice of the meeting was given in The Grand Island Independent on October 3, 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, Vaughn Minton, and John Gericke. The following City Officials were present: City Administrator Mary Lou Brown, City Clerk RaNae Edwards, City Attorney Robert Sivick, Interim Public Works Director Terry Brown and Finance Director Jaye Monter. INVOCATION was given by Pastor Dave Covey, Spirit of Life Church, 2304 Macron Street followed by the PLEDGE OF ALLEGIANCE. Mayor Vavricek introduced Community Youth Council member Danny Gamboa. PRESENTATIONS AND PROCLAMATIONS: Presentation of the “Mayor’s Builder Award” to Sara Robinson. Mayor Vavricek presented the fourth “Mayor’s Builder Award” to Sara Robinson a 4th grade teacher at Gates Elementary School. The Mayor congratulated Ms. Robinson on receiving the Milken Family Foundation Educator Award. Ms. Robinson was present to receive the award. Also present were Grand Island Public Schools Superintendent Dr. Robert Winter and Mrs. Martin, Gates Elementary Principal. Presentation of Capital Avenue Project – Webb Road to Broadwell Avenue. Interim Public Works Director Terry Brown introduced Matt Rief, PE, of Olsson Associates who reported that the Capital Avenue project from Webb Road to Broadwell Avenue would improve Capital Avenue from a two-lane asphalt roadway to a five-lane concrete roadway along with updated street lighting, new storm sewer, sidewalks on the south side, and a 10’ concrete trail to the north. This project was made possible through funds provided by the Nebraska Department of Roads Surface Transportation Program and the Federal Highway Administration. Mr. Rief, PE presented the proposed project and summarized feedback that was received at the August 21, 2012 Public Informational Meeting. Interim Public Works Director Terry Brown commented on paving assessments in the past and for the future. Assessments needed to be in proportion according to benefits. This item would be brought back to Council during a Study Session and future action by Council relative to assessments. The following people spoke against assessments for this project: Evelyn Brown, 3027 West Capital Avenue, Suite 1, Windsor Square Grand Island Council Session - 10/23/2012 Page 140 / 264 Page 2, City Council Regular Meeting, October 9, 2012 Janet Knapp, 3027 West Capital Avenue, Windsor Square Beth Engler, 3027 West Capital Avenue, Suite 34, Windsor Square Athel Lamborn, 2623 West Capital Avenue Andy Marsh, 2306 Apache Road Ryan Banzhaf, 2423 No. Howard Avenue Jim O’Neill, 2426 No. Custer Avenue Daniel Nielsen, 3027 West Capital Avenue #3 Gilbert Kyhn, 2424 No. Grand Island Avenue Kay Blair, 2431 Sheridan Avenue Discussion was held concerning the timeline of this project. Mentioned was that decisions were needed by the Council in order not to delay the project and lose Federal funding. Project Manager Scott Griepenstroh stated this could be brought before Council for a decision at the October 23, 2012 meeting. Comments were made regarding the cost of a five lane compared to a three lane. Mr. Rief stated Federal funding would be jeopardized. PUBLIC HEARINGS: Public Hearing on Acquisition of Utility Easement Located by Millard Refrigerated services North of the Burlington Northern Tracks, East of North Highway 281 (Grand Island Area Economic Development Corporation). Utilities Director Tim Luchsinger reported that acquisition of real estate located north of the Burlington Northern tracks, east of North Highway 281 was needed in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers for the purpose of providing electrical service to a new switch building belonging to BNSF Railroad. This was part of the double tack project currently under construction. Staff recommended approval. No public testimony was heard. Public Hearing Concerning Acquisition of Drainage Easements for the Southwest Outfall Drainage Project No. 2011-D-1 (The Diamond Engineering Co., Clark Gauthier, Carl & Lori Armstrong, and Kevin & Karen Houtwed). Interim Public Works Director Terry Brown reported that acquisition of drainage easements for the Southwest Outfall Drainage Project were needed in order for the construction, operation, maintenance, extension, repair, replacement, and removal of drainage utilities within the easements. Staff recommended approval. No public testimony was heard. RESOLUTIONS: #2012-305 – Consideration of Approving Appointment of Todd McCoy as Parks and Recreation Director. Mayor Jay Vavricek recommended the appointment of Todd McCoy as Parks and Recreation Director. Todd McCoy was present and introduced his family. Motion by Gericke, second by Gilbert to approve Resolution #2012-305. Upon roll call vote, all voted aye. Motion adopted. Comments were made by Council complementing Mr. McCoy on his appointment and filling in during the interim. Mr. McCoy thanked everyone for their support. Grand Island Council Session - 10/23/2012 Page 141 / 264 Page 3, City Council Regular Meeting, October 9, 2012 ORDINANCES: Councilmember Gilbert moved “that the statutory rules requiring ordinances to be read by title on three different days are suspended and that ordinances numbered: #9402 – Consideration of Assessments for South Locust Business Improvement District 2012 #9403 – Consideration of Request to Rezone Property Located at 2430 & 2522 Stolley Park Road and 2433 & 2425 Del Mar Avenue – Hornady Subdivision from R2 Low Density Residential to RD Residential Development #9404 – Consideration of Vacation of a Portion of Del Mar Avenue in Hornady Subdivision (JEH Holdings, LLC) #9405 – Consideration of Vacation of a Utility Easement Located in Hornady Subdivision (JEH Holdings, LLC) #9406 – Consideration of Vacation a Part of Outlot A Lake Heritage Second Subdivision #9407 – Consideration of Ordinance Prohibiting Discrimination in Employment, Housing, and Public Accommodations against Persons Based on their Sexual Orientation or Gender Identity 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, Councilmember’s Haae, Carney, Niemann, Ramsey, Gilbert, Nickerson, Donaldson, Dugan, and Minton voted aye. Councilmember Gericke voted no. Motion adopted. #9407 – Consideration of Ordinance Prohibiting Discrimination in Employment, Housing, and Public Accommodations against Persons Based on their Sexual Orientation or Gender Identity Councilmember Larry Carney stated he brought this forward because discrimination was wrong. This ordinance would add sexual orientation to the City Code Chapter 11 – Civil Rights. The following people spoke: Grady Ericson, 1405 W. Koenig Street – support Gail Pemberton, 123 No. Mill Street, Dannebrog, NE - support Ray Absher, 1330 Grand Avenue - opposed Jill Liske Clark, 3928 Chelsea Place - support Dave Olson, 4234 Kay Avenue - opposed Todd Ruhter, 910 E. Oklahoma - support Bob Rhodes, 2022 West 15th Street - support Brian Whitecalf, 1506 No. St. Paul Road - support Gilleramo Pena, 311 East 3rd St. Apt. #18 - support Dick Troester, 2110 Topeka Circle - opposed Marion Bahensky, 1021 6th Street, St. Paul, NE - support Lisa Heineman, 4077 Dack Avenue - support Chad Bohling, 4214 W. Capital Avenue - support Grand Island Council Session - 10/23/2012 Page 142 / 264 Page 4, City Council Regular Meeting, October 9, 2012 Christopher Langenberg, 810 No. Bellevue, Hastings, NE – support Peggy Lang, 123 No. Mill Street, Dannebrog, NE – support Diane Covey, 4020 Mason Avenue – opposed Brandi Weaver, 150 N. Woodland, Hastings, NE – support Clint Harders, 619 So. Boston, Hastings, NE – support Jeb Wolsleben, 1620 No. Huston Avenue – support Lex Ann Roach, 917 West 10th Street – support Bruce Eberle 321 Hiawatha – opposed Rose Marie Cargill, 3011 Colonial Lane - opposed Motion by Carney, second by Ramsey to approve Ordinance #9407. City Attorney Robert Sivick answered questions regarding consequences of violating this ordinance. He stated there were no consequences. Comments were made that religious organizations would be exempt. Mr. Sivick clarified state statutes and stated Grand Island had no protected classes in City Code as Section 11 – Civil Rights was dissolved in 2006. Motion by Niemann, second by Gericke that this issue be put on the ballot. Upon roll call vote, Councilmember’s Niemann, Ramsey, Gericke, Donaldson and Nickerson voted aye. Councilmember’s Haase, Carney, Gilbert, Minton and Dugan voted no. Mayor chose not to vote. Motion failed. Motion by Carney to amend the Ordinance to include Chapter 11 of the City Code with the addition of sexual orientation. Motion failed due to lack of a second. Discussion was held regarding what should be brought back to Council regarding other protected classes and reinstatement of Chapter 11 Civil Rights. Motion by Donaldson, second by Carney to refer this Ordinance to a Regular Council meeting in 30 days (first meeting in November). Upon roll call vote, Councilmember’s Carney, Niemann, Donaldson, and Minton voted aye. Councilmember’s Haase, Ramsey, Gilbert, Nickerson, Dugan, and Gericke voted no. Motion failed. City Clerk: Ordinance #9407 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 Carney and Donaldson voted aye. Councilmember’s Haase, Niemann, Ramsey, Gilbert, Nickerson, Dugan, Minton, and Gericke voted no. Motion failed. Council took a recess at 10:37 p.m. and reconvened at 10:47 p.m. #9402 – Consideration of Assessments for South Locust Business Improvement District 2012 Motion by Dugan, second by Ramsey to approve Ordinance #9402 on second and final reading. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 10/23/2012 Page 143 / 264 Page 5, City Council Regular Meeting, October 9, 2012 #9403 – Consideration of Request to Rezone Property Located at 2430 & 2522 Stolley Park Road and 2433 & 2425 Del Mar Avenue – Hornady Subdivision from R2 Low Density Residential to RD Residential Development Discussion was held regarding storm sewer and drainage. Motion by Ramsey, second by Gericke to approve Ordinance #9403 on second and final reading. Upon roll call vote, all voted aye. Motion adopted. #9404 – Consideration of Vacation of a Portion of Del Mar Avenue in Hornady Subdivision (JEH Holdings, LLC) #9405 – Consideration of Vacation of a Utility Easement Located in Hornady Subdivision (JEH Holdings, LLC) Motion by Dugan, second by Donaldson to approve Ordinances No. #9404 and #9405 on second and final reading. Upon roll call vote, all voted aye. Motion adopted. #9406 – Consideration of Vacation a Part of Outlot A Lake Heritage Second Subdivision Regional Planning Director Chad Nabity reported that this property was located east of Blaine Street and north of Bass Road as part of Lake Heritage Second Subdivision. The owner, Doralene Niedfelt wished to retain a 22 foot strip of property at the southeast corner of the outlot and have it included with her adjoining property. In order to join this platted tract to the unplatted tract it was necessary to vacate a portion of the platted Outlot A. Motion by Donaldson, second by Dugan to approve Ordinance #9406. City Clerk: Ordinance #9406 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinance #9406 on final passage. All those in favor of the passage of this ordinance on final passage, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Mayor Vavricek: By reason of the roll call votes on first reading and then upon final passage, Ordinances #9402, #9403, #9404, #9405 and #9406 are declared to be lawfully adopted upon publication as required by law. CONSENT AGENDA: Consent Agenda item G-15 was pulled for further discussion. Motion by Ramsey, second by Haase to approve the Consent Agenda excluding item G-15. Upon roll call vote, all voted aye. Motion adopted. Approving Minutes of September 25, 2012 City Council Regular Meeting. Approving Minutes of October 2, 2012 City Council Study Session. Approving Re-Appointments of Julie Connelly and Karen Bredthauer to the Regional Planning Commission Board. Grand Island Council Session - 10/23/2012 Page 144 / 264 Page 6, City Council Regular Meeting, October 9, 2012 #2012-259 – Approving Preliminary and Final Plat and Subdivision Agreement for Hornady Second Subdivision. It was noted that JEH Holdings, LLC, owners had submitted the preliminary plat, final plat and subdivision agreement for Hornady Second Subdivision located north of Stolley Park Road and west of Arthur Street for the purpose of creating 23 lots containing 7.822 acres. #2012-280 – Approving Final Plat and Subdivision Agreement for DSK Second Subdivision. It was noted that Danny Kunze, owner had submitted the final plat and subdivision agreement for DSK Second Subdivision located north of Bismark Road and south of Stoneridge Path for the purpose of creating 2 lots containing 3.250 acres. #2012-281 – Approving Final Plat and Subdivision Agreement for Lake Heritage Third Subdivision. It was noted that Doralene Niedfelt, owner had submitted the final plat and subdivision agreement for Lake Heritage Third Subdivision located south of US Hwy 34 and east of Blaine Street for the purpose of creating 3 lots containing 9.43 acres. #2012-282 – Approving City Council Meeting Schedule for 2013. #2012-283 – Approving Agreement for Funding with the Crisis Center, Inc. in an Amount of $2,400.00. #2012-284 – Approving Agreement for Funding with the Grand Island Area Council for International Visitors in an Amount of $200.00. #2012-285 – Approving Agreement for Funding with the Grand Island Hall County Convention & Visitors Bureau in an Amount of $2,000.00. #2012-286 – Approving Agreement for Funding with Izaak Walton Kids Fishing Derby in an Amount of $400.00. #2012-287 – Approving Agreement for Funding with Hope Harbor in an Amount of $900.00. #2012-288 – Approving Agreement for Funding with the Grand Island Multicultural Coalition in an Amount of $2,000.00. #2012-289 – Approving Agreement for Funding with Senior Citizens Industries, Inc. in an Amount of $3,000.00. #2012-290 – Approving Agreement for Funding with the Clean Community System in an Amount of $20,000.00. Greg Eirick, 4051 Palace Drive was present to answer questions. He commented on the death of Betty Curtis and the work she had done for the Clean Community System. Motion by Gilbert, second by Carney to approve Resolution #2012-290. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 10/23/2012 Page 145 / 264 Page 7, City Council Regular Meeting, October 9, 2012 #2012-291 – Approving Acquisition of Utility Easement Located by Millard Refrigerated Services North of the Burlington Northern Tracks, East of North Highway 281 (Grand Island Area Economic Development Corporation). #2012-292 – Approving Agreement for Temporary Construction Easements for the Southwest Outfall Drainage Project No. 2011-D-1. #2012-293 – Approving Bid Award for Three (3) Multi-Directional Folding Vee Plows for the Solid Waste Division and Streets Division of the Public Works Department with Murphy Tractor & Equipment of Grand Island, NE in an Amount of $66,421.00. #2012-294 – Approving Bid Award for One (1) 81,000 Pound Landfill Compactor for the Solid Waste Division of the Public Works Department with NMC of Doniphan, NE in an Amount of $724,833.00. #2012-295 – Approving Bid Award for One (1) Snow Blower, Front-End Loader Mounted for the Street Division of the Public Works Department with Nebraska Environmental Products of Lincoln, NE in an Amount of $95,836.62. #2012-296 – Approving Supplemental No. 1 for Engineering Consulting Services with The Schemmer Associates, Inc. Related to State street and Capital Avenue Connector Trail Project. #2012-297 – Approving Acquisition of Drainage Easement for the Southwest Outfall Drainage Project No. 2011-D-1 (The Diamond Engineering Co., Clark Gauthier, Carl & Lois Armstrong, and Kevin & Karen Houtwed). #2012-298 – Approving Payment to Families and Schools Together of NE Children and Families Foundation and NE Dept. of Health and Human Services Grants in an Amount fo $18,135.00. #2012-299 – Approving Payment to Grand Island YMCA for NE Children and Families Foundation and NE Dept. of Health and Human Services Grants in an Amount of $14,070.27. RESOLUTIONS: #2012-300 – Approving Revised MOU with UPRR Regarding a Fence along Railroad Right of Way. City Attorney Robert Sivick reported that on August 28, 2012 the City Council approved a Memorandum of Understanding with the Union Pacific Railroad to erect a fence constructed of aesthetically pleasing ornamental black steel along its tracks in downtown Grand Island from Burlington Northern tracks west to Broadwell Avenue. The City agreed to maintain the fence. The revised MOU included no potion of the fence will be chain link. Motion by Dugan, second by Minton to approve Resolution #2012-300. Upon roll call vote, all voted aye. Motion adopted. #2012-301 – Approving Amending Resolution No. 2012-225 – Project Management Fees Only for the State Street and Capital Avenue Connector Trail Project with Midwest Right of Way Services. Interim Public Works Director Terry Brown reported that on August 28, 2012 the City Council approved Resolution No. 2012-225 to provide for appraisal and project management Grand Island Council Session - 10/23/2012 Page 146 / 264 Page 8, City Council Regular Meeting, October 9, 2012 services from Midwest Right of Way Services for the State Street and Capital Avenue Connector Trail Project. Services included compensation estimates of $2,700.00 and Project Management fees of $680.00 for a total agreement of $3,380.00. Since the appraisal services were to be handled by a separate firm, (Capital Appraisal Services) is was appropriate to amend Resolution No. 2012-250 for a cost of $1,020.00 for the Project Management services with Midwest Right of Way Services. Motion by Gericke, second by Donaldson to approve Resolution #2012-301. Upon roll call vote, all voted aye. Motion adopted. #2012-302 – Approving Relocation of Memorial Marker and Flagpole to Hall County Veteran’s Park. Parks and Recreation Director Todd McCoy reported that a veteran’s citizen group and the American Legion Post #53 had made a request to remove, refurbish, and relocate the memorial marker and flagpole from Memorial Park to the Hall County Veterans Memorial Park next to the VFW at no cost to the City. It was the goal of the group to locate memorials from each war to the Hall County Veterans Memorial Park so that all veterans could be honored in one convenient location. Discussion was held regarding the location of the memorials. Mr. McCoy stated Memorial Park was owned by the City. Motion by Carney, second by Niemann to approve Resolution #2012-302. Upon roll call vote, all voted aye. Motion adopted. Mayor Vavricek turned the meeting over to Council President Gilbert as he had a conflict of interest on Resolution #2012-303. #2012-303 – Consideration of Approving Cable Franchise Agreement with Charter Communications. City Attorney Robert Sivick reported that an agreement had been negotiated with Charter Communications for the Cable Franchise Agreement with the City of Grand Island. The proposed agreement was for a period of fifteen years. It would increase the number of Public, Educational, and Government (PEG) channels from two to three and sets the PEG fee at forty cents per subscriber, per month and increases the number of governmental facilities and schools receiving free cable television service. It also sets the franchise fee for the City at 5% and strengthens customer service standards for Grand Island citizen subscribers. Motion by Ramsey, second by Dugan to approve Resolution #2012-303. Upon roll call vote, all voted aye. Motion adopted. Mayor Vavricek resumed conducting the meeting. #2012-304 – Consideration of Modifying Language Relative to Residency Requirements for City Department Directors. City Attorney Robert Sivick reported that at the October 2, 2012 City Council Study Session he was directed by Council to remove language referring to the City’s zoning jurisdiction from the Director residency requirements as that language existed in no other provisions related to residency of other City employees. Grand Island Council Session - 10/23/2012 Page 147 / 264 Page 9, City Council Regular Meeting, October 9, 2012 Discussion was held regarding the Senior Leadership Team and consistency within the Personnel Rules. Motion by Haase, second by Niemann to approve Resolution #2012-304. Motion by Haase to amend the motion to change the 12 miles to 0 miles. Motion failed due to lack of a second Upon roll call vote of the main motion, all voted aye. Motion adopted. PAYMENT OF CLAIMS: Motion by Dugan, second by Nickerson to approve the Claims for the period of September 26, 2012 through October 9, 2012, for a total amount of $2,787,857.08. Unanimously approved. ADJOURNMENT: The meeting was adjourned at 11:13 p.m. RaNae Edwards City Clerk Grand Island Council Session - 10/23/2012 Page 148 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G2 Approving Re-Appointment of Doug Jensen to the Animal Advisory Board The Mayor has submitted the re-appointment of Doug Jensen to the Animal Advisory Board. This appointment would become effective immediately upon approval by the City Council and would expire on August 31, 2015. Approval is recommended. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/23/2012 Page 149 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G3 #2012-306 - Approving Contract for Downtown Phase I Planning Services Staff Contact: Marco Floreani Grand Island Council Session - 10/23/2012 Page 150 / 264 Council Agenda Memo From:Community Development Meeting:October 23, 2012 Subject:Approving Downtown Revitalization RFP Award for Community Development Block Grant 12-DTR-004 Item #’s:G-3 Presenter(s):Marco Floreani, Community Development Administrator Background On August 29, 2012, The City of Grand Island received a notice of release of funds from the Nebraska Department of Economic Development for a $30,000 Community Development Block Grant (CDBG) Downtown Revitalization Phase 1 Grant. The grant will be used to fund a downtown revitalization plan, which qualifies as an eligible activity under phase 1 of the Downtown Revitalization category of the CDBG program. The developed downtown revitalization plan will be the primary component in procuring the $330,000 CDBG Downtown Revitalization Phase 2 Grant funds, which will aid in the implementation of the final downtown plan. The project will fulfill the Slum and Blight (SB) National Objective though the subcategory of “SB Area Basis”. The grant contract awarded $27,900 for Planning Activities and $2,100 for General Administration. A local match of $20,000 was provided for $50,000 in total project funds. Discussion An advertisement of Requests for Proposals was published in The Independent on September 1, 2012. The bid opening was on September 27, 2012. The City received proposals from three planning and design firms. A committee consisting of city staff and downtown stakeholders was formed to select the planning and design firm. Each committee member scored the proposals on the following criteria: 1) Consultant Experience on Similar Projects 2) Approach to the Project a.Approach to Community Engagement b.Innovative Components in Proposal c.Implementation Strategies d.Firm’s Planning and Design Principles Grand Island Council Session - 10/23/2012 Page 151 / 264 3) Qualifications for Project Team 4) References 5) Proposed Project Timeline 6) Proposed Cost The firm with the highest point score was the Omaha based architecture firm of Alley Poyner Macchietto. The committee recommends the contract be awarded to Alley Poyner Macchietto for the amount of $43,000.00. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve contract for planning services to Alley Poyner Macchietto of Omaha, Nebraska for $43,000.00. Sample Motion Move to approve contract to Alley Poyner Macchietto Architecture of Omaha, Nebraska. Grand Island Council Session - 10/23/2012 Page 152 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-306 WHEREAS, Advertisement for the request for proposals for Community Development Block Grant 12-DTR-004 Downtown Revitalization Phase 1 Planning Services was published in the Grand Island Independent on September 1, 2012; and WHEREAS, on September 27, 2012 Proposals were opened and reviewed; and WHEREAS, Alley Poyner Macchietto Architecture of Omaha, Nebraska submitted a proposal in accordance with the terms, specifications of the Request for Proposals, and all other statutory requirements contained therein, having received the most favorable score among all reviewed; and WHEREAS, the proposed agreement has been reviewed and approved by the City Attorney’s office; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island, Nebraska is hereby authorized to award a contract to Alley Poyner Macchietto Architecture of Omaha, Nebraska, in the amount of $43,000.00 for CDBG Downtown Revitalization Phase 1 Planning Services - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 153 / 264 Grand Island Council Session - 10/23/2012 Page 154 / 264 Grand Island Council Session - 10/23/2012 Page 155 / 264 Grand Island Council Session - 10/23/2012 Page 156 / 264 Grand Island Council Session - 10/23/2012 Page 157 / 264 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PHASE I DOWNTOWN REVITALIZATION PLAN RFP DUE DATE:September 27, 2012 at 4:00 p.m. DEPARTMENT:Community Development PUBLICATION DATE:September 1, 2012 NO. POTENTIAL BIDDERS: SUMMARY OF PROPOSALS RECEIVED Urban Development Services\Alley Poyner Macchietto Architecture San Antonio, TX Omaha, NE RDG Planning & Design Omaha, NE cc:Marco Floreani, Com. Dev. Admin.Mary Lou Brown, City Administrator Jason Eley, Purchasing Agent Jaye Monter, Finance Director P1587 Grand Island Council Session - 10/23/2012 Page 158 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G4 #2012-307 - Approving Contract for Voice Communications System Staff Contact: Jaye Monter Grand Island Council Session - 10/23/2012 Page 159 / 264 Council Agenda Memo From: Jaye Monter, Finance Director Meeting:October 23, 2012 Subject:Approving Voice Communication System at City Hall Item #’s:G-4 Presenter(s):Andrew Duey, City of Grand Island Network Consultant - Duey’s Computer Service, Inc. Background On July 11, 2012 the City of Grand Island issued a request for proposals to replace the 19 year old telephone system installed at City Hall in 1993. Budget authority for replacement of the phone system is in the 2012-2013 Capital Improvement Projects Fund. Discussion Five proposals were received on August 9, 2012; reviewed and scored by Robyn Splattstoesser, IT Manager; Stephanie Gosda, Computer Technician; Jon Rosenlund, Emergency Management Director and Andrew Duey, City of Grand Island Network Consultant. On September 5th two vendors were invited to provide a “live” demonstration of a working telephone system using the proposed equipment for the committee to assess and examine. After the comparison, the committee recommends Business Telecommunication Systems (BTS) of Grand Island Nebraska be awarded the contract to replace the current system for $73,196.00 including a five year warranty on products, parts and labor. The proposed phone system will replace the current 30 phone line system and support up to 62 digital and analog phone lines. The proposed system will include 120 digital phones to replace the existing 110 phones throughout the building and also include an additional 10 IP phones which can be connected anywhere inside City Hall using existing computer network connections. The system is capable of phone line expansion along with the ability to connect to other City locations to potentially share phone lines and voice mail. Grand Island Council Session - 10/23/2012 Page 160 / 264 All phones will feature full duplex speakerphones replacing the existing half-duplex speakerphones that currently only exist at certain locations inside City Hall. The proposed phones have 36 programmable buttons, a larger backlit display enabling features such as caller ID, a call log, staff directory, and easier call handling capabilities. The proposed system will include a call accounting package for detailed call log review and a voicemail system which will allow staff to receive voicemails via e-mail if desired. A unified communications mailbox allows access to the employee’s voicemail directly from their computer or smartphone. The proposed phone system will support a digital phone line connection from the current telephone service provider Century Link and support DID’s. A DID is a Direct Inbound Dial number, allowing people to bypass calling the automated phone tree and dial the person they want to reach directly. In order to minimize the inconvenience of upgrading to a new telephone system at City Hall, recommendation for conversion is to take place after hours on a weekend or in the evening after 5p.m. BTS has agreed to accommodate this request for an amount not to exceed $3000. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the contract with Business Telecommunication Systems in the amount of $73,196.00 and approve after hours installation not to exceed an additional $3,000 2.Disapprove or Deny the submitted proposals 3.Postpone the issue to a future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the Voice Communication System to Business Telecommunication Systems for $73,196.00 plus the cost for after hour’s installation not to exceed $3000.00. Sample Motion Approve the Voice Communications System with Business Telecommunication Systems for $73,196.00 plus installation on a weekend or evening not to exceed $3000.00. Grand Island Council Session - 10/23/2012 Page 161 / 264 RESOLUTION 2012-307 WHEREAS, the City of Grand Island invited proposals to replace the existing voice communication system within City Hall, and WHEREAS, proposals were received, reviewed and evaluated in accordance with the established criteria in the RFP; and WHEREAS, Business Telecommunication Systems (BTS) of Grand Island, NE submitted a proposal to replace the current system for $73,196.00 and WHEREAS, the proposed system includes a 5 year warranty on products, parts and labor; and WHEREAS, Business Telecommunication Systems (BTS) of Grand Island, NE will install the system after hours not to exceed $3000.00; and WHEREAS, the proposed agreement has been reviewed and approved by the City Attorney’s office; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the proposal from Business Telecommunication Systems of Grand Island Nebraska in the amount of $73,196.00 and installation after hours not to exceed $3000.00 for the City of Grand Island is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. Jay Vavricek, Mayor Attest: RaNae Edwards, City Clerk Approved as to Form October 23, 2012 City Attorney Grand Island Council Session - 10/23/2012 Page 162 / 264 PROPOSAL SUBMITTED TO:PHONE:DATE: FAX:JOB PHONE:JOB FAX: 1 - 620570 Enterprise Suite TOL SBE Package including: 5) SIP Licenses Suite 4 1) IX-CME KSU Unit 1) IX-MBU Media Bridge Unit 25) Unified Communication Licenses 1) IX-PWSE Power Supply 1) 96 Port License 75) Mailbox only Licenses 1) IX-CCU Processor 1) Enterprise CSTA License 1) Soft-Fax Port 1) IX-CCSU Latest Software 1) Dell PC Platform IMAP TSE for UC 1 -620570/408KT Voicemail Port Upgrade to up to 8 ports 1 -620570.916KT Voicemail Port Upgrade to 12 ports 35 - 620707 Single Voice Mailbox License (100 mailboxes included in above voicemail system) 1 - 000303 IP Station License package (10 licenses) 1 - 040030 Expansion Cabinet package A 1 - 040031 Expansion Cabinet package B 2 - 101581 IX-8UNTK-1 Analog Trunk Cards (8 circuits each) 2 - 102220 IX-DTI-P PRI Interface cards 8 - 040361 IX-16PSUB-2 Digital ICON Station Cards (16 circuits each) New System Price : 81,266.00$ 1 -101443 IX-8PSUB-2 Digital ICON Station Card (8 circuits)Trade in of Existing System : (8,070.00)$ an Iwatsu ECS/SBE communication system consisting of the following: We hereby submit specifications and estimates for: 100 East 1st Street CITY. STATE and ZIP CODE:JOB LOCATION: Grand Island, NE 68801 ATTENTION: Robyn City of Grand Island 308.385.5444 August 9, 2012 ADDRESS:JOB NAME: (308) 382-1011 (800) 809-5144 Fax (308) 382-0986 Contract for Services Business Telecommunication Systems Telephone Systems - Data Networking - Paging 3312 Island Circle Grand Island, Nebraska 68803 1 -101443 IX-8PSUB-2 Digital ICON Station Card (8 circuits)Trade in of Existing System : (8,070.00)$ 2 - 101472 IX-8SUBS-4 Analog Circuit Card (8 circuits each)Total Installed System Price : 73,196.00$ 2 - 101473 IX-8ESUBS-4 Analog Citcuit Daughterboard (8 circuits) 1 - 101745 IX-EDVIF Misc Card for Relays and External Paging Evening or weekend installation will add $3000.00 120 - 505810 IX-5810 ICON Display 36 button speakerphones 10 - 505910 IX-5910 ICON IP Display 36 button speakerphones 10 - 505009 IX-59AC Power Supplies for IP Phones 1 - Nova Trysis Call Accounting package. (includes Dell PC) 2 - CSU Interface for PRI to DTI Cards 1 - Minuteman E2000RM2U UPS Unit 1 - Equipment Rack 7' Installation and configuration of system Complete user and administrative training Assistance with Carrier circuit transition 73,196.00$ Authorized Signature 50% due upon acceptance of proposal; and the balance due upon system cutover date. All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Workman's Compensation Insurance. Loren Cleveland Note:This proposal may be withdrawn by us if not accepted within 90 Days Acceptance of Proposal - The above prices, specifications, and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. DATE OF ACCEPTANCE Includes 5 years warranty on products and parts. 5 years on labor. We Propose hereby to furnish material and labor complete in accordance with above specifications, for the sum of: Seventy Three Thousand One Hundred Ninety Six dollars and 00/100 -------------------------- Payment to be made as follows: Signature Grand Island Council Session - 10/23/2012 Page 163 / 264 Grand Island Council Session - 10/23/2012 Page 164 / 264 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR VOICE COMMUNICATIONS SYSTEM RFP DUE DATE:August 9, 2012 at 4:00 p.m. DEPARTMENT:Information Technology PUBLICATION DATE:July 11, 2012 NO. POTENTIAL BIDDERS:9 SUMMARY OF PROPOSALS RECEIVED Kidwell Business Telecommunications Systems Lincoln, NE Grand Island, NE Windstream ACT Technologies Grand Island, NE Grand Island, NE Dice Communications Omaha NE cc:Jaye Monter, Finance Director Robyn Splattstoesser, IT Manager Jason Eley, Purchasing Agent P1574 Grand Island Council Session - 10/23/2012 Page 165 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G5 #2012-308 - Approving Bid Award - Substation Transformer Testing Services Staff Contact: Tim Luchsinger, Jason Eley Grand Island Council Session - 10/23/2012 Page 166 / 264 Council Agenda Memo From:Tim Luchsinger, Utilities Director Jason Eley, City Attorney Meeting:October 23, 2012 Subject:Transformer Testing Services Item #’s:G-5 Presenter(s):Tim Luchsinger, Utilities Director Background The City of Grand Island owns seven 13.8 kV distribution substations. These substations are vital to providing reliable electrical service to the Grand Island population. Within these substations are a total of twelve 22.5 MVA distribution transformers. These transformers are the most expensive assets in the distribution system. Manufacturers recommend electrical testing every five to ten years. This testing was last performed in 2004. In addition to the distribution substation transformers, all generation related transformers need tested as well. Bids were requested on a “per transformer” basis to allow elimination from the scope of work any transformers that may be unavailable for testing during the time the contractor is on site. A total of twenty-six transformers and one underground cable were included in the bid specifications. Discussion The request was advertised in accordance with City procurement requirements. Specifications were sent to six regional distributors. Proposals were publicly opened at 2:00 pm on September 18, 2012. Listed below is a tabulation of the proposals received: Services Provider Exceptions Proposal Price SPX Transformer Solutions Yes $152,421,50 Solomon Corporation Yes $104,525.09 Alstom Grid Co.No $73,295.00 Eaton Corporation Yes $71,236.32 Delta Star Inc.Yes $61,525.00 Bids include appropriate sales tax. Grand Island Council Session - 10/23/2012 Page 167 / 264 All five bids were evaluated based upon price and conformance to the specifications. The bids received from Eaton Corporation, Solomon Corporation, and SPX Transformer Solutions met all functional specifications and contained only minor exceptions that are not critical to the project. The bid received from Delta Star Inc. did not meet the specification for including up to three mobilizations in their quote and specified additional cost for weather or other unforeseen project delays. Delta Star also included a fuel surcharge in addition to their proposed price. Therefore, this bid was not considered a viable option. The bid received from Alstom Grid Co. met all functional specifications with no exception. The bid from Eaton Corporation was the lowest acceptable bid received. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to a future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the bid from Eaton Corporation for testing twenty-six (26) Power Transformers in the amount of $71,236.32. Sample Motion Move to approve the bid from Eaton Corporation for testing twenty-six (26) Power Transformers in the amount of $71,236.32. Grand Island Council Session - 10/23/2012 Page 168 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-308 WHEREAS, the City of Grand Island invited sealed bids for Substation Transformer Testing Services, according to plans and specifications on file with the Utilities Department; and WHEREAS, on September 18, 2012, bids were received, opened and reviewed; and WHEREAS, Eaton Corporation, of Lenexa, Kansas, 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 $71,236.32; and WHEREAS, the bid of the Eaton Corporation is less than the estimate for the Substation Transformer Testing Services. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of the Eaton Corporation in the amount of $71,236.32, for Substation Transformer Testing Services, is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 169 / 264 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:September 18, 2012 at 2:00 p.m. FOR:Substation Transformer Testing Services DEPARTMENT:Utilities ESTIMATE:$125,000.00 FUND/ACCOUNT:EW010 PUBLICATION DATE:September 7, 2012 NO. POTENTIAL BIDDERS:6 SUMMARY Bidder:Solomon Corporation Delta Star Inc. Solomon, KS Lynchburg, VA Bid Security:Travelers Casualty & Surety Co.Fidelity & Deposit Co. Exceptions:Noted None Bid Price:$97,687.00 $57,500.00 Sales Tax:$ 6,838.09 $ 4,025.00 Total Bid Price:$104,525.09 $61,525.00 Bidder:Eaton Corporation SPX Transformer Solutions, Inc. Lenexa, KS Waukesha, WI Bid Security:Travelers Casualty & Surety Co.Liberty Mutual Insurance Co. Exceptions:Noted Noted Bid Price:$66,576.00 $142,450.00 Sales Tax: --____$ 9,971.50 Total Bid Price:$66,576.00 $152,421.50 Grand Island Council Session - 10/23/2012 Page 170 / 264 Bidder:Alstom Grid Co. Stow, OH Bid Security:Liberty Mutual Insurance Co. Exceptions:None Bid Price:$68,500.00 Sales Tax:$ 4,795.00 Total Bid Price:$73,295.00 cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director Jason Eley, Purchasing Agent Pat Gericke, Utilities Admin. Assist. P1588 Grand Island Council Session - 10/23/2012 Page 171 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G6 #2012-309- Approving Bid Award for the Law Enforcement Center & Downtown Parking Lot Snow Removal Operations for the 2012/2013 Winter Season Staff Contact: Terry Brown, Interim Public Works Director Grand Island Council Session - 10/23/2012 Page 172 / 264 Council Agenda Memo From:Terry Brown, Interim Public Works Director Steve Lamken, Police Chief Meeting:October 23, 2012 Subject:Approving Bid Award for the Law Enforcement Center & Downtown Parking Lot Snow Removal Operations for the 2012/2013 Winter Season Item #’s:G-6 Presenter(s):Terry Brown, Interim Public Works Director Background On September 20, 2012 the Engineering Division of the Public Works Department advertised for proposals for Snow Removal Operations at the Law Enforcement Center & Downtown Parking Lots for the 2012/2013 winter season including equipment and labor. There were seven (7) potential proposers for this work. Discussion Two (2) proposals were received and opened on October 9, 2012. The Engineering Division of the Public Works Department and the Purchasing Division of the City Attorney's Office reviewed the proposal that was received. The proposal is shown below. Bidder Description Unit Trucks for hauling snow $ 35.00 per load Tractor Loader w/ Box Blade $120.00 per hour Skid Steer Loader $100.00 per hour Premier Snow Removal, LLC of Grand Island, NE Tractor with Pull Blade (minimum 24' width) $200.00 per hour Trucks for hauling snow $ 70.00 per load Tractor Loader w/ Box Blade $120.00 per hour Skid Steer Loader $ 95.00 per hour Lacy Construction Company of Grand Island, NE Tractor with Pull Blade (minimum 24' width) $315.00 per hour Grand Island Council Session - 10/23/2012 Page 173 / 264 City Staff is requesting the option to renew the agreement on an annual basis for a five (5) year period, at which time proposals will be solicited. 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 awarding the bid for Snow Removal Operations at the Law Enforcement Center & Downtown Parking Lots to Premier Snow Removal, LLC of Grand Island, Nebraska and authorize the Mayor to execute a contract for the work. Sample Motion Motion to approve awarding the bid for Snow Removal Operations at the Law Enforcement Center & Downtown Parking Lots to Premier Snow Removal, LLC of Grand Island, Nebraska. Grand Island Council Session - 10/23/2012 Page 174 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-309 WHEREAS, the City Of Grand Island invited sealed proposals for Snow Removal Operations at the Law Enforcement Center & Downtown Parking Lots, according to specifications on file in the office of the Public Works Department; and WHEREAS, on October 9, 2012, bids were received, opened and reviewed; and WHEREAS, Premier Snow Removal, LLC of Grand Island, Nebraska, submitted a bid in accordance with terms of the advertisement of the specifications and all other statutory requirements contained therein, such bid being as follows: Cost Per Hour Trucks for Hauling Snow $ 35.00 per load Tractor Loader w/ Box Blade $120.00 per hour Skid Steer Loader $100.00 per hour Tractor with Pull Blade $200.00 per hour WHEREAS, the City will have the option to renew the contract on an annual basis for a five (5) year period, at which time proposals will be solicited. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Premier Snow Removal, LLC of Grand Island, Nebraska for snow removal operations in the amounts identified above is hereby approved as the lowest responsible bid submitted. BE IT FURTHER RESOLVED, that a contract between the City and such contractor for such snow removal operations be entered into, and the Mayor is hereby authorized and directed to execute such contract on behalf of the City Of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 175 / 264 CONTRACT AGREEMENT THIS AGREEMENT made and entered into this 23rd day of October , 2012, by and between Premier Snow Removal LLC., hereinafter called the Contractor and the CITY OF GRAND ISLAND, NEBRASKA, hereinafter called the City. WITNESSETH: THAT, WHEREAS, in accordance with law, the City has caused contract documents to be prepared and an advertisement calling for proposals to be published, for furnishing equipment and labor for snow removal operations; and WHEREAS, the City, in the manner prescribed by law, has publicly opened, examined, and canvassed the proposals submitted, and has determined the aforesaid Contractor to be the lowest responsive proposer complying with Chapter 73, Revised Statutes of Nebraska, and has duly awarded to said Contractor a contract therefore, for the sum or sums named in the Contractor’s proposal, a copy thereof being attached to and made a part of this contract; NOW, THEREFORE, in consideration of the compensation to be paid to the Contractor and of the mutual agreements herein contained, the parties to these presents have agreed and hereby agree, the City for itself and its successors, and the Contractor for itself, or themselves, and its, theirs, or their successors, as follows: ARTICLE I. That the contractor shall (a) furnish all tools equipment, superintendence, transportation, and other construction accessories, services and facilities; (b) furnish, as agent for the City, all materials, supplies and equipment specified and required to be incorporated in and form a permanent part of the completed work; (c) provide and perform all necessary labor; and (d) in a good substantial and workmanlike manner and in accordance with the requirements, stipulations, provisions, and conditions of the contract documents as listed in the attached Specifications Form, said documents forming the contract and being as fully a part thereof as if repeated verbatim herein, perform, execute, construct and complete all work included in and covered by the City’s official award of this contract to the said Contractor, such award being based on the acceptance by the City of the Contractor’s proposal; ARTICLE II. In consideration of the Contractor performing the provisions of this contract, the City agrees to pay for labor and equipment as follows: 1.Trucks for Hauling Snow $35.00 per load (10 cubic yard - minimum) 2.Tractor Loader w/ Box Blade $120.00 per hour (minimum capacity - 3 cubic yard) 3.Skid Steer Loader $100.00 per hour (minimum 84” width) 4.Tractor with Pull Blade $200.00 per hour (minimum 24’ width) Payments thereof to be made in cash or its equivalent in the manner provided in the General Specifications. 1 Grand Island Council Session - 10/23/2012 Page 176 / 264 Snow Removal Operations @ The Law Enforcement Center & Downtown Parking Lots Contract (Pg 2/4) ARTICLE III. Lots to be cleared of snow are as follows: Law Enforcement Center (111 Public Safety Drive) Lot at N Pine and South Front (Southeast corner) Lot at N Pine and W 3rd (Southeast corner) Lot at N Locust and W South Front (Southeast corner) Lot at N Walnut and W South Front (Northeast corner) Lot at N Walnut and W South Front (Southeast corner) Lot at N Walnut and W 2nd (Northeast corner) Lot at N Walnut and W 1st (Southeast corner) Lot at S Wheeler and W 1st (Southeast corner) Parking Ramp at N Locust and W 1st (Northeast corner) – (Loading & Hauling Only, as clearing of the ramp is a separate bid). ARTICLE IV. Due to the Law Enforcement Center providing essential public safety services the Contractor shall be capable of mobilizing its labor and equipment to begin operations at the Center with two (2) hours notice by the City. This lot shall receive priority for snow removal. ARTICLE V. There will be no need for materials or supplies to be incorporated into this particular work for the City. ARTICLE VI. The term of this agreement shall be from the date of the last party signing the contract to September 30, 2013. The City will have the option to renew the agreement on an annual basis for a five (5) year period, at which time proposals will be solicited. The agreement shall be automatically extended in one year increments upon the same terms and conditions unless terminated by service of notice of termination by either party on or before July 31st of any year this agreement continues in full force and effect. ARTICLE VII. The Contractor agrees to comply with all applicable State fair labor standards in the execution of this contract as required by Section 73-102, R.R.S. 1943. The Contractor further agrees to comply with the provisions of Section 48-657, R.R.S. 1943, pertaining to contributions to the Unemployment Compensation Fund of the State of Nebraska. ARTICLE VIII. During the performance of this contract, the Contractor and all subcontractors agree not to discriminate in hiring or any other employment practice on the basis of race, color, religion, sex, national origin, age or disability and to comply at all times with all applicable state and federal civil rights acts and executive orders of the President of the United States. ARTICLE IX. Every public contractor and their subcontractors who are awarded a contract by the City for the physical performance of services within the State of Nebraska shall register with and use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. ARTICLE X. The City of Grand Island, Nebraska operates on a fiscal year beginning October 1st and ending on the following September 30th. It is understood and agreed that any portion of this agreement which will be performed in a future fiscal year is contingent upon the City Council adopting budget statements and appropriations sufficient to fund such performance. ARTICLE XI. City Code states that it is unethical for any person to offer, give or agree to give any City employee or former City employee, or for any City employee or former City employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, or preparation of any part of a 2 Grand Island Council Session - 10/23/2012 Page 177 / 264 Snow Removal Operations @ The Law Enforcement Center & Downtown Parking Lots Contract (Pg 2/4) program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal therefore. It shall be unethical for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order. ARTICLE XII. The City reserves the right to terminate this contract at any time upon 60 days notice. If the contract is terminated, the contractor will be compensated for any services rendered to date of termination. ARTICLE XIII. FAIR EMPLOYMENT PRACTICES: Each proposer agrees that they will not discriminate against any employee or applicant for employment because of age, race, color, religious creed, ancestry, handicap, gender or political affiliation. ARTICLE XIV. LB 403: Every public contractor and their subcontractors who are awarded an agreement by the City for the physical performance of services within the State of Nebraska shall register with and use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as of the date and year first above written. Premier Snow Removal LLC. By ____________________________________Date ______________________ Title ___________________________________ CITY OF GRAND ISLAND, NEBRASKA By ______________________________________Date ______________________ Mayor Attest ____________________________________ City Clerk The contract is in due form according to law and hereby approved. ___________________________________________Date ______________________ Attorney for the City 3 Grand Island Council Session - 10/23/2012 Page 178 / 264 Snow Removal Operations @ The Law Enforcement Center & Downtown Parking Lots Contract (Pg 2/4) APPENDIX A – TITLE VI NON-DISCRIMINATION - During the performance of this agreement, the consultant, for itself, its assignees and successors in interest (hereinafter referred to as the "consultant") agrees as follows: (1)Compliance with Regulations: The consultant shall comply with the Regulation relative to nondiscrimination in Federally-assisted programs of the Department of Transportation (hereinafter, "DOT") Title 49, Code of Federal Regulations, Part 21, and the Federal Highway Administration (hereinafter “FHWA”) Title 23, Code of Federal Regulations, Part 200 as they may be amended from time to time, (hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of this agreement. (2)Nondiscrimination: The Consultant, with regard to the work performed by it during the agreement, shall not discriminate on the grounds of race, color, or national origin, sex, age, and disability/handicap in the selection and retention of subconsultants, including procurements of materials and leases of equipment. The consultant shall not participate either directly or indirectly in the discrimination prohibited by 49 CFR, section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations. (3)Solicitations for Subconsultants, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by the consultant for work to be performed under a subagreement, including procurements of materials or leases of equipment, each potential subconsultant or supplier shall be notified by the consultant of the consultant's obligations under this agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin, sex, age, and disability/handicap. (4)Information and Reports: The consultant shall provide all information and reports required by the Regulations or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City of Grand Island or the FHWA to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of a consultant is in the exclusive possession of another who fails or refuses to furnish this information the consultant shall so certify to the City of Grand Island, or the FHWA as appropriate, and shall set forth what efforts it has made to obtain the information. (5)Sanctions for Noncompliance: In the event of the consultant's noncompliance with the nondiscrimination provisions of this agreement, the City of Grand Island shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: (a.)withholding of payments to the consultant under the agreement until the consultant complies, and/or (b.)cancellation, termination or suspension of the agreement, in whole or in part. (6)Incorporation of Provisions: The consultant shall include the provisions of paragraphs (1) through (6) in every subagreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto. The consultant shall take such action with respect to any subagreement or procurement as the City of Grand Island or the FHWA may direct as a means of enforcing such provisions including sanctions for non-compliance: Provided, however, that, in the event a consultant becomes involved in, or is threatened with, litigation with a subconsultant or supplier as a result of such direction, the consultant may request the City of Grand Island to enter into such litigation to protect the interests of the City of Grand Island, and, in addition, the consultant may request the United States to enter into such litigation to protect the interests of the United States. 4 Grand Island Council Session - 10/23/2012 Page 179 / 264 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR SNOW REMOVAL OPERATIONS AT LAW ENFORCEMENT CENTER & DOWNTOWN PARKING LOTS RFP DUE DATE:October 9, 2012 at 4:00 p.m. DEPARTMENT:Public Works PUBLICATION DATE:September 20, 2012 NO. POTENTIAL BIDDERS:7 SUMMARY OF PROPOSALS RECEIVED Premier Snow Removal Lacy Construction Co. Grand Island, NE Grand Island, NE cc:Terry Brown, Interim Public Works Director Catrina DeLosh, PW Admin. Assist. Jason Eley, Purchasing Agent Steve Lamken, Police Chief P1595 Grand Island Council Session - 10/23/2012 Page 180 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item G7 #2012-310- Approving Renewal of Website Hosting Agreement with Vision Internet Staff Contact: Wendy Meyer-Jerke, Public Information Officer Grand Island Council Session - 10/23/2012 Page 181 / 264 Council Agenda Memo From:Wendy Meyer-Jerke, Public Information Officer Meeting:October 23, 2012 Subject:Website Hosting Agreement with Vision Internet Item #’s:G-7 Presenter(s):Wendy Meyer-Jerke, Public Information Officer Background The current City of Grand Island website, www.grand-island.com, was rebuilt in 2009 by Vision Internet, of Santa Monica, California, and is currently hosted by Vision Internet. Vision Internet was founded in 1995 and specializes in city and county government website builds and redevelopments. The website is currently maintained and updated by over 50 City of Grand Island employees. Some of the interactive features of the City’s website includes: e-notifications of news and calendar items, central document tool, online forms, live video streaming, social media tools, sign-up for activities, and online bill pay. Discussion The proposed web hosting agreement has been reviewed and approved by the City’s Legal Department. This agreement is a renewal of the previous three year agreement with Vision Internet to provide the web hosting services for the City of Grand Island website, www.grand-island.com. The agreement would start on November 3, 2012 and remain in effect for a period of one year and continue to be in effect on a year-to-year basis thereafter for up to three years. The agreement will include a $231.52 monthly hosting fee, with a five percent annual increase. This agreement is similar to the original three year agreement approved by city council in 2009 which included a monthly hosting fee of $200, with a five percent increase each year thereafter. Grand Island Council Session - 10/23/2012 Page 182 / 264 Under this agreement additional services including but not limited to website maintenance, custom data updates, and new components will be billed separately at Vision Internet’s prevailing hourly rates. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve the renewal of the website hosting agreement with Vision Internet. 2.Deny the renewal of the website hosting agreement with Vision Internet. 3.Take no action on the contract renewal. Recommendation City Administration recommends city council approve the renewal of the website hosting agreement for a term of three years with Vision Internet which includes a monthly hosting fee of $231.52, along with a five percent annual increase. Sample Motion Motion to approve the website hosting renewal agreement beginning on November 3, 2012 for a term of three years between the City of Grand Island and Vision Internet. Grand Island Council Session - 10/23/2012 Page 183 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-310 WHEREAS, the City of Grand Island continually works on maintaining and updating the City of Grand Island’s website, www.grand-island.com, with accurate and current information to be utilized by citizens; and WHEREAS, the City of Grand Island entered into an agreement with Vision Internet of Santa Monica, California, to rebuild the City’s website and for hosting services on February 10, 2009; and WHEREAS, the current agreement is soon to expire, and WEHREAS, a new agreement has been negotiated with Vision Internet to continue to provide web hosting services for the City of Grand Island website for a term of three years beginning on November 3, 2012; and WEHREAS, the negotiated agreement will include a $231.52 monthly hosting fee, with an annual five percent increase; and WHEREAS, the City Attorney’s office has reviewed and approved the proposed agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the three-year contract with Vision Internet to provide web hosting services for the City of Grand Island’s website, www.grand- island.com, is hereby approved, and the Mayor is hereby authorized and directed to execute such agreement on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 184 / 264 Grand Island Council Session - 10/23/2012 Page 185 / 264 Grand Island Council Session - 10/23/2012 Page 186 / 264 Grand Island Council Session - 10/23/2012 Page 187 / 264 Grand Island Council Session - 10/23/2012 Page 188 / 264 Grand Island Council Session - 10/23/2012 Page 189 / 264 Grand Island Council Session - 10/23/2012 Page 190 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item H1 Consideration of Request from Faulk & Foster on behalf of Verizon Wireless for a Conditional Use Permit for Construction of an 80’ Monopole and Equipment Shelter Located at 1922 West 3rd Street This item relates to the aforementioned Public Hearing item E-2. Staff Contact: Craig Lewis Grand Island Council Session - 10/23/2012 Page 191 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item I1 #2012-311- Approving the Exemption of the Capital Avenue Widening – Webb Road to Broadwell Avenue Project from being Partially Funded by a Paving Assessment District Staff Contact: Terry Brown, Interim Public Works Director Grand Island Council Session - 10/23/2012 Page 192 / 264 Council Agenda Memo From:Terry Brown, Manager of Engineering Services Meeting:October 23, 2012 Subject:Approving the Exemption of the Capital Avenue Widening – Webb Road to Broadwell Avenue Project from being Partially Funded by a Paving Assessment District Item #’s:I-1 Presenter(s):Terry Brown, Interim Public Works Director Background A public meeting was held on August 21, 2012 to provide information and accept input regarding the Capital Avenue Widening – Webb Road to Broadwell Avenue Project. At the October 9, 2012 City Council meeting the Public Works Administration staff, along with Olsson Associates staff gave a presentation of the Capital Avenue Widening – Webb Road to Broadwell Avenue Project. Discussion It is recommended that a paving district not be created for this roadway project, based on the lack of benefit for the majority of property owners along the project to form a paving assessment district to partially fund this improvement. There have been numerous responses from the public disapproving the formation of a paving assessment district. 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 Grand Island Council Session - 10/23/2012 Page 193 / 264 Recommendation City Administration recommends that the Council approve a resolution exempting the Capital Avenue Widening – Webb Road to Broadwell Avenue Project from being partially funded by a paving assessment district. Sample Motion Move to approve the resolution. Grand Island Council Session - 10/23/2012 Page 194 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012 -311 WHEREAS, by Resolution 2012-124 Grand Island City Council approved entering into an agreement with the Nebraska Department of Roads for the Capital Avenue Widening – Webb Road to Broadwell Avenue Project; and WHEREAS, on August 21, 2012 the project team, consisting of staff from the Public Works Department and Olsson Associates, conducted an informational meeting and received numerous responses from the public disapproving formation of a paving assessment district to partially fund the improvement because of lack of benefit for the majority of property owners along the project; and WHEREAS, Section 16-606 of the Nebraska Revised State Statute states “The Council may assess and levy the whole expense and damage incurred in the creation of any street, avenue, or alley upon the real property fronting upon the same and other property nearby that may be benefited thereby in proportions according to benefits, and WHEREAS, current policies and procedures for establishing a paving assessment district dictate the boundary of the district to be all property which extends back from the improved street half way to the next parallel street – 300 feet is the maximum limit for this distance; and WHEREAS, Capital Avenue at this location is an arterial road, and current policies and procedures for developing a paving assessment district on this project may be inconsistent with Section 16-606 of the Nebraska Revised State Statute. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, herby direct Public Works Administration to exempt the Capital Avenue Widening – Webb Road to Broadwell Avenue Project from being partially funded by a paving assessment district. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 195 / 264 Grand Island Council Session - 10/23/2012 Page 196 / 264 PUBLIC WORKS Capital Avenue Project Grand Island Council Session - 10/23/2012 Page 197 / 264 PUBLIC WORKS Capital Avenue – Webb Road to Broadwell Avenue Purpose and Need Statement The purpose of this project is to reconstruct Capital Avenue to accommodate traffic volumes and enhance motorist and pedestrian safety. This project will meet current and future traffic needs by constructing a 5-lane street section with a 10 foot wide Hike/Bike Trail *Project is Federally Funded up to 80% with a 20% Local match Grand Island Council Session - 10/23/2012 Page 198 / 264 Proposed Roadway Section Traffic Review Grand Island Council Session - 10/23/2012 Page 199 / 264 HAWK Pedestrian Signal Crossing Grand Island Council Session - 10/23/2012 Page 200 / 264 PUBLIC WORKS Paving Assessment District Nebraska State Revised Statute 16-606 The council may assess and levy the whole expense and damage incurred in the creation of any street, avenue, or alley upon the real property fronting upon the same and other property nearby that may be benefited thereby in proportions according to benefits .” State statute requires government properties to be included in assessed costs Grand Island Council Session - 10/23/2012 Page 201 / 264 PUBLIC WORKS Paving Assessment Districts (cont.) District creation may occur either by petition from property owner(s) or order via an Ordinance by City Council Although each district must be reviewed individually, the same basic principles are generally used in each case. The assessable area, or district boundary, is usually established by including all property which extends back from the improved street half way to the next parallel street. 300 feet is the maximum limit for this distance. Grand Island Council Session - 10/23/2012 Page 202 / 264 PUBLIC WORKS Paving Assessment District (cont.) Improvements due to street widths over 37 feet for residential streets and 41 feet commercial streets are not assessed to property owners Replacement costs for existing paving are not included in assessment costs Grand Island Council Session - 10/23/2012 Page 203 / 264 PUBLIC WORKS Proposal for Federally Funded Routes Review as each project is presented and make a determination based on benefits to properties involved in the improvement area. Grand Island Council Session - 10/23/2012 Page 204 / 264 PUBLIC WORKS Capital Ave Widening from the Moores Creek Drain to Webb Rd VS. Capital Ave Widening from Webb Rd to Broadwell Ave The Moores Creek Drain to Webb Road Widening project was through a commercial corridor, with the project benefiting businesses by providing better traffic flow to their location The Webb Road to Broadwell Avenue Widening project is mainly through a residential area, with the project benefiting motorists traveling into/through the City Grand Island Council Session - 10/23/2012 Page 205 / 264 PUBLIC WORKS Paving Project Assessment History STREET IMPROVEMENT ASSESSMENT DISTRICTS Date District No.Resolution / Ordinance No. Assessed Amount Project Location 2/14/2012 1256 2012-BE-1 $ 732,831.98 Capital Ave from Moores Creek Drain to Webb Rd 1/23/2007 1258 2007-BE-2 $ 132,300.28 Extending Faidley Ave west of Diers Ave 650‘ (new roadway) 2/14/2006 1255 2006-BE-2 $ 315,637.57 Independence Ave; Shanna St & Lariat Ln (new roadway) 4/12/2005 1221 2005-BE-4 $ 66,739.20 S Locust from US Hwy 34 to Stolley Park Rd 6/22/2004 1248 2004-BE-9 $ 99,849.46 Faidley Ave from Moore's Creek Drainway easterly towards Diers Ave (new roadway) 11/18/2003 1239 2003-BE-23 $ 695,493.98 Gold Core Dr in Platte Valley Industrial Park (new roadway) 2/26/2002 1237 2002-BE-3 $ 399,311.75 Wortman Dr (new roadway) 3/13/2001 1233 2001-BE-7 $ 132,373.52 Juergen Rd (new roadway) 1/9/2001 1225 2001-BE-1 $ 432,970.63 Allen Dr (new roadway) 11/22/1999 1218 99-BE-19 $ 334,495.62 Juergen Rd (Platte Valley Industrial Park) 11/22/1999 1212 99-BE-18 $ 140,751.84 Ada St 8/14/1995 1188 95-BE-011 $ 218,617.84 State St 7/3/1989 1130G -$ 9,719.60 Broadwell Ave from Oklahoma Ave to Anna St 6/20/1988 1125 -$ 20,451.65 Wheeler Ave from 17th St to Capital Ave Grand Island Council Session - 10/23/2012 Page 206 / 264 PUBLIC WORKS Capital Avenue Widening from Webb Road to Broadwell Avenue Cost Per Budget Year Total Project Cost = $7,850,000 Total City Share of Project = $1,549,000 Fiscal Year Total Funds Expended Federal Reimbursements to City Actual City Funds Expended 2012 $ 66,000.00 $ - $ 66,000.00 2013 $ 433,000.00 $ 320,000.00 $ 113,000.00 2014 $ 1,818,800.00 $ 1,280,000.00 $ 538,800.00 2015 $ 831,200.00 $ - $ 831,200.00 Total $ 3,149,000.00 $ 1,600,000.00 $ 1,549,000.00 Grand Island Council Session - 10/23/2012 Page 207 / 264 PUBLIC WORKS ….In Summary Capital Avenue Widening from Webb Road to Broadwell Avenue Total Project Cost = $7,850,000 Total Local Cost = $1,549,000 It is recommended that a resolution be passed by City Council to inform Federal Highway Administration and Nebraska Department of Roads of the City’s local funding for this project. Grand Island Council Session - 10/23/2012 Page 208 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item I2 #2012-312 - Consideration of Amendment to the Redevelopment Plan Area 1 Located at 1103 St. Paul Road This item relates to the aforementioned Public Hearing item E-3. Staff Contact: Chad Nabity Grand Island Council Session - 10/23/2012 Page 209 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-312 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. 1 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 - 10/23/2012 Page 210 / 264 - 2 - 1.The Redevelopment Plan of the City approved for Redevelopment Area No.1 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 - 10/23/2012 Page 211 / 264 - 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, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 212 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item I3 #2012-313 - Consideration of Amendment to the Redevelopment Plan Area 2 Located at 1112 South Locust Street This item relates to the aforementioned Public Hearing item E-4. Staff Contact: Chad Nabity Grand Island Council Session - 10/23/2012 Page 213 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-313 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. 2 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 - 10/23/2012 Page 214 / 264 - 2 - 1.The Redevelopment Plan of the City approved for Redevelopment Area No. 2 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 - 10/23/2012 Page 215 / 264 - 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, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 216 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item I4 #2012-314 - Approving Automated Metering Infrastructure (AMI) Pilot Project Staff Contact: Tim Luchsinger;Jason Eley Grand Island Council Session - 10/23/2012 Page 217 / 264 Council Agenda Memo From:Tim Luchsinger, Utilities Director Jason Eley, City Attorney Meeting:October 9, 2012 Subject:Automated Metering Infrastructure Pilot System Item #’s:I-4 Presenter(s): Tim Luchsinger, Utilities Director Background The Utility Dept made a presentation concerning AMI (Automated Metering Infrastructure) at the April 3, 2012 Council Study Session with the resulting recommendation to evaluate the technology by creating a pilot project. The proposed project area to be used is the new water construction in Merrick County as part of a groundwater contamination remediation project being paid for by the Union Pacific Railroad. The remediation project area is localized and will include approximately 170 new water meters. The intent of the pilot project is to gain first-hand experience with the installation and operation of an AMI system as well as determining the fiscal costs and benefits. This information would then be used to evaluate the feasibility of AMI for the entire electric and water utility systems. Specifications for the AMI pilot project were developed by Department staff and issued for proposals in accordance with City procurement requirements. These specifications were drafted to allow the use of multiple suppliers for the hardware and software components of the AMI system for flexibility in evaluating additional vendors of AMI components during the pilot project. The AMI system data would be stored at a remote secure server and accessed by the City for meter billing and system information. Meter consumption information could also be made available to customers through the City’s website. Requests for Proposals were sent out and proposals were returned on August 30, 2012, from two companies. Discussion The two proposals received were from a consortium of Tantalus Inc., ITRON, Dutton- Lainson, and Dakota Supply Group, and from Landis & Gyr with Kriz Davis as the local representative. Grand Island Council Session - 10/23/2012 Page 218 / 264 The proposals were reviewed by Utilities Department staff members for completeness of response, flexibility for future expansion, technical support, ability to support more than one manufacturer, and ease of use once installed. The Landis & Gyr proposal is the most complete response to the RFP. The Landis & Gyr system included four different meter manufacturers which will provide much better flexibility in the future. Along with the ability to communicate with water and electric meters, the Department requested communication with capacitor banks and line fault indicators which the Tantalus system did not address. Tantalus also did not provide information regarding other meter manufacturers that are supported by their system. The proposal pricing from Tantalus was slightly less, but incomplete. The Landis and Gyr (Gridstream) proposal price of $108,129.95 includes the AMI pilot system hardware, software, on-site training and the first year of a three year agreement to host the information. The Department will be responsible for installation of the system including water meter transmitters and electric meter replacement, and off-site training expenses for two personnel. The estimated Department costs for this installation are $30,000. The subsequent annual server hosting fee is $8,100.00. The Department staff recommends that the proposal from Landis and Gyr of $108,129.95, be accepted as the best responsive proposal for the AMI pilot system. 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 staff recommends that the proposal submitted by Landis and Gyr of the Gridstream System be accepted as the most complete and best system for Grand Island Utilities. The recommendation includes the approval of purchasing the AMI pilot system components for $108,129.95 and entering into an annual agreement for the hosted server from Landis and Gyr in the amount of $8,100. Sample Motion Move to approve purchasing the AMI pilot system components for $108,129.95 and entering into an annual agreement for the hosted server from Landis and Gyr in the amount of $8,100. Grand Island Council Session - 10/23/2012 Page 219 / 264 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Jason Eley, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR ADVANCED METERING INFRASTRUCTURE PILOT SYSTEM (AMI) PILOT PROGRAM RFP DUE DATE:August 30, 2012 at 4:00 p.m. DEPARTMENT:Utilities PUBLICATION DATE:August 17, 2012 NO. POTENTIAL BIDDERS:4 SUMMARY OF PROPOSALS RECEIVED Landis & Gyr Tantalus Systems Peguot, MN Raleigh, NC cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director Jason Eley, Purchasing Agent Jaye Monter, Finance Director Mary Lou Brown, City Administrator Pat Gericke, Utilities Admin. Assist. P1585 Grand Island Council Session - 10/23/2012 Page 220 / 264 Grand Island Council Session - 10/23/2012 Page 221 / 264 Contract Page 1 CONTRACT AGREEMENT THIS AGREEMENT made and entered into by and between Landis+Gyr Technologies, LLC, hereinafter called the Contractor, and the CITY OF GRAND ISLAND, NEBRASKA, hereinafter called the City. WITNESSETH: THAT, WHEREAS, in accordance with law, the City has caused contract documents to be prepared and an advertisement calling for a Request for Proposal to be published, for Advanced Metering Infrastructure Pilot Program (AMI); and WHEREAS, the City, in the manner prescribed by law, has publicly opened, examined, and canvassed the proposals submitted, and has determined the aforesaid Contractor to be the lowest responsive and responsible vendor, and has duly awarded to the said Contractor a contract therefore, for the sum or sums named in the Contractor’s proposal, a copy thereof being attached to and made a part of this contract; NOW, THEREFORE, in consideration of the compensation to be paid to the Contractor and of the mutual agreements herein contained, the parties have agreed and hereby agree, the City for itself and its successors, and the Contractor for itself, himself, or themselves, and its, his, or their successors, as follows: ARTICLE I. That the following documents shall compromise the Contract, and shall together be referred to as the “Agreement” or the “Contract Documents”; 1.This Contract Agreement 2.City of Grand Island’s General Specifications for Advanced Metering Infrastructure Pilot System 3.Landis+Gyr Master Agreement 4.Landis+Gyr Command Center Managed Services Package Schedule ARTICLE II. That the Contractor shall (a) furnish all tools, equipment, superintendence, transportation, and other construction materials, services and facilities; (b) furnish, as agent for the City, all materials, supplies and equipment specified and required to be incorporated in and form a permanent part of the completed work; (c) provide and perform all necessary labor; and (d) in a good substantial and workmanlike manner and in accordance with the requirements, stipulations, provisions, and conditions of the contract documents as listed in the attached General Specifications, said documents forming the contract and being as fully a part thereof as if repeated verbatim herein, perform, execute, construct and complete all work included in and covered by the City’s official award of this contract to the said Contractor, such award being Grand Island Council Session - 10/23/2012 Page 222 / 264 Contract Page 2 based on the acceptance by the City of the Contractor’s bid; ARTICLE III. That the City shall pay the Contractor for the performance of the work embraced in this contract and the contractor will accept as full compensation therefore the sum (subject to adjustment as provided by the contract) of One Hundred Eight thousand, One Hundred Twenty- Nine dollars and Ninety-Five cents ($108,129.95) for all services, materials, and work covered by and included in the contract award and designated in the foregoing Article II; payments thereof to be made in cash or its equivalent in the manner provided in the General Specifications. The total cost of the Contract includes: Base Bid:$100,536.00 Sales Tax $ 7,543.95 TOTAL $108,129.95 The City of Grand Island, Nebraska operates on a fiscal year beginning October 1st and ending on the following September 30th. It is understood and agreed that any portion of this agreement which will be performed in a future fiscal year is contingent upon the City Council adopting budget statements and appropriations sufficient to fund such performance. ARTICLE IV. The Contractor hereby agrees to act as agent for the City in purchasing materials and supplies for the City for this project. The City shall be obligated to the vendor of the materials and supplies for the purchase price, but the Contractor shall handle all payments hereunder on behalf of the City. The vendor shall make demand or claim for payment of the purchase price from the City by submitting an invoice to the Contractor. Title to all materials and supplies purchased hereunder shall vest in the City directly from the vendor. Regardless of the method of payment, title shall vest immediately in the City. The Contractor shall not acquire title to any materials and supplies incorporated into the project. All invoices shall bear the Contractor’s name as agent for the City. This paragraph will apply only to these materials and supplies actually incorporated into and becoming a part of the finished product of the Advanced Metering Infrastructure Pilot System. ARTICLE V. That the Contractor shall start work as soon as possible after the contract is signed and the required bonds and insurance are approved, and that the Contractor shall deliver the equipment, tools, and materials F.O.B. Grand Island, Nebraska, and complete the work on or before April 30, 2013. ARTICLE V. The Contractor agrees to comply with all applicable State Fair Labor Standards in the execution of this contract as required by Section 73-102, R.R.S. 1943. The Contractor further agrees to comply with the provisions of Section 48-657, R.R.S. 1943, pertaining to contributions to the Unemployment Compensation Fund of the State of Nebraska. During the performance of this contract, the Contractor and all Subcontractors agree not to discriminate in hiring or any other employment practice on the basis of race, color, religion, sex, national origin, age or disability. The Contractor agrees to maintain a drug-free workplace policy and will provide a Grand Island Council Session - 10/23/2012 Page 223 / 264 Contract Page 3 copy of the policy to the City upon request. Every public contractor and his, her or its subcontractors who are awarded a contract by the City for the physical performance of services within the State of Nebraska shall register with and use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. GRATUITIES AND KICKBACKS City Code states that it is unethical for any person to offer, give, or agree to give any City employee or former City employee, or for any City employee or former City employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, or preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or proposal therefore. It shall be unethical for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order. Landis+Gyr Technologies, LLC By____________________________________Date ____________________ Title___________________________________ CITY OF GRAND ISLAND, NEBRASKA By_____________________________________Date ____________________ Mayor Attest: __________________________________ City Clerk The contract is in due form according to law and hereby approved. _______________________________________Date ____________________ Attorney for the City Grand Island Council Session - 10/23/2012 Page 224 / 264 Grand Island Council Session - 10/23/2012 Page 225 / 264 Grand Island Council Session - 10/23/2012 Page 226 / 264 Grand Island Council Session - 10/23/2012 Page 227 / 264 Grand Island Council Session - 10/23/2012 Page 228 / 264 Grand Island Council Session - 10/23/2012 Page 229 / 264 Grand Island Council Session - 10/23/2012 Page 230 / 264 Grand Island Council Session - 10/23/2012 Page 231 / 264 Grand Island Council Session - 10/23/2012 Page 232 / 264 Grand Island Council Session - 10/23/2012 Page 233 / 264 Grand Island Council Session - 10/23/2012 Page 234 / 264 Grand Island Council Session - 10/23/2012 Page 235 / 264 Grand Island Council Session - 10/23/2012 Page 236 / 264 Grand Island Council Session - 10/23/2012 Page 237 / 264 Grand Island Council Session - 10/23/2012 Page 238 / 264 Grand Island Council Session - 10/23/2012 Page 239 / 264 Grand Island Council Session - 10/23/2012 Page 240 / 264 Grand Island Council Session - 10/23/2012 Page 241 / 264 Grand Island Council Session - 10/23/2012 Page 242 / 264 Grand Island Council Session - 10/23/2012 Page 243 / 264 Grand Island Council Session - 10/23/2012 Page 244 / 264 Grand Island Council Session - 10/23/2012 Page 245 / 264 Grand Island Council Session - 10/23/2012 Page 246 / 264 Grand Island Council Session - 10/23/2012 Page 247 / 264 Grand Island Council Session - 10/23/2012 Page 248 / 264 Grand Island Council Session - 10/23/2012 Page 249 / 264 Grand Island Council Session - 10/23/2012 Page 250 / 264 Grand Island Council Session - 10/23/2012 Page 251 / 264 Page 1 of 8   COMMAND CENTER MANAGED SERVICES PACKAGE SCHEDULE This Command Center Managed Services Package (“MSP”) Schedule (“Schedule”) is by and between Landis+Gyr Technologies, LLC (“Landis+Gyr”), with its main office at 6436 County Road 11, Pequot Lakes, MN 56472, and the City of Grand Island (“Customer”), with an office located at 100 East 1st Street, Grand Island, NE 68801. This Schedule is governed by the terms set forth in Landis+Gyr’s Master Agreement. This Schedule will commence on the last signature date below and remain in effect for a period of three (3) years. 1. DEFINITIONS As used in this Schedule these terms shall have the following meanings: “Schedule” means the terms and conditions contained within this document and any attachments hereto or subsequently executed by the parties. “Equipment” means hardware used to provide the Services, including features, peripherals and components. “Services” means all MSP services which Customer acquires from Landis+Gyr. “Software” means computer programs in any form that are utilized by Landis+Gyr to provide the Services and which are identified in Appendix A, including object code, source code, firmware, and microcode. “Command Center Software” means the software that is used to operate Landis+Gyr’s AMR/AMI system. 2. SCOPE OF SERVICE Landis+Gyr shall provide Customer with access to Services on the terms and conditions set forth in this Schedule. Landis+Gyr will provide Services that will enable Customer to access the Command Center Software. (a) Landis+Gyr Services: Services under this Schedule shall consist of the following: (1) Landis+Gyr shall set up Equipment allowing Customer to access Command Center Software on a Landis+Gyr server either through a subdirectory of a Landis+Gyr domain or through a domain registered by Customer, and (2) Landis+Gyr will comply with requirements set forth in Attachment A. Landis+Gyr shall use reasonable efforts to notify Customer of system change which materially affect the Services provided by Landis+Gyr to Customer. (b) Customer Responsibilities: Customer has several responsibilities to ensure that Landis+Gyr is able to provide the Services in a quality manner. Specific Customer responsibilities are set forth in Attachment A. 3. PERFORMANCE OF SERVICES AND WARRANTY (a) Landis+Gyr will provide the Services identified in Attachment A and any other services that are subsequently added to this Schedule by the parties. Landis+Gyr will be responsible for providing all Equipment and Software necessary for providing the Services. Grand Island Council Session - 10/23/2012 Page 252 / 264 Page 2 of 8   (b) EXCEPT AS OTHERWISE STATED IN THIS SCHEDULE, ANY EQUIPMENT, SERVICES OR SOFTWARE PROVIDED BY LANDIS+GYR PURSUANT TO THIS SCHEDULE ARE PROVIDED WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE. UNLESS SPECIFICALLY SET FORTH HEREIN, LANDIS+GYR SHALL NOT BE LIABLE FOR ANY EXPENSE OR DAMAGES INCURRED BY CUSTOMER WHICH MAY ARISE OUT OF FAILURE OF THE SERVICES TO FUNCTION OR DUE TO ANY MALFUNCTION OF EQUIPMENT OR SOFTWARE OR LANDIS+GYR’S FAILURE TO PROVIDE SERVICES AS SET FORTH HEREIN, REGARDLESS OF THE CAUSE OF ACTION ON WHICH ANY CLAIM IS BASED, EXCEPT THAT LANDIS+GYR SHALL BE LIABLE FOR BODILY INJURY OR DEATH CAUSED BY THE NEGLIGENCE OR WILLFUL ACTS OF LANDIS+GYR IN PROVIDING SERVICES HEREUNDER. LANDIS+GYR WILL NOT BE RESPONSIBLE FOR ERRORS OR DELAYS RESULTING FROM THE FAULTY TRANSMISSION OF DATA FROM CUSTOMER OR ITS CUSTOMERS OR FOR DELAYS IN PROCESSING OR IN THE DELIVERY OF THE PROCESSED DATA DUE TO CAUSES BEYOND ITS CONTROL. IN NO EVENT WILL LANDIS+GYR BE LIABLE FOR ECONOMIC, CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THE SERVICES OR THIS SCHEDULE. 4. FEE AND INVOICES Landis+Gyr will issue invoices for Services on a monthly basis in accordance with the pricing set forth in Attachment B. Landis+Gyr will issue separate monthly invoices, which Customer agrees to pay, for any communications fees that are incurred by Landis+Gyr in providing Services. Payment terms for invoices are thirty (30) days after receipt of invoice. 5. CONFIDENTIAL INFORMATION (a) Customer may provide Landis+Gyr with information that is confidential or proprietary and Landis+Gyr shall take reasonable precautions to prevent such information from being divulged to third parties other than Landis+Gyr affiliates and except as provided in Section 8 below. This obligation of confidence shall survive the term of this Schedule and will continue for a period of two (2) years thereafter. (b) Non-confidential Information. The following information shall not be considered confidential: 1. Information which is already generally available to the public; 2. Information which hereafter becomes generally available to public, except as a result of the action of Landis+Gyr; and 3. Information which can be shown to have been known to Landis+Gyr prior to receipt from Customer. 6. PROGRAM MANAGEMENT Grand Island Council Session - 10/23/2012 Page 253 / 264 Page 3 of 8   Both parties shall name a program manager with responsibility for managing the activities associated with this Schedule. The program manager will work together to resolve any issues that arise and will periodically meet to document and discuss the performance of the Services. 7. TERM AND TERMINATION (a) The term of this Schedule shall commence on the Effective Date and shall continue for the number of years stated above. (b) Either party may terminate this Schedule upon thirty (30) days prior written notice to the party for failure of such other party to fulfill any of its material obligations hereunder, provided, however, if during the period of such notice the other party shall have remedied such failure, this Schedule shall continue in full force and effect as it would have had such failure not occurred. (c) Either party may, with or without cause, terminate this Schedule upon sixty (60) days written notice to the other party. (d) The parties may elect to extend the term of this Schedule beyond the initial term by executing an amendment relating to an extension. (e) In the event that this Schedule is terminated Customer will be required to order Command Center Software from Landis+Gyr at the then current license fee prior to the termination date. Customer will also be required to sign the Landis+Gyr Support Agreement prior to the termination date. 8. REGULATORY AGENCIES AND OTHER LEGAL REQUIREMENTS (a) The data, records and reports to be generated received, or maintained by Landis+Gyr under this Schedule may be subject to examination by Federal and State regulatory agencies that have jurisdiction over Customer’s business, to the same extent as such records would be subject if they were maintained and produced by Customer itself on its own premises. Landis+Gyr agrees to allow reasonable audits by and on behalf of Customer. (b) Customer will be solely responsible for maintaining records required by Federal and State regulatory agencies. The data, records and reports to be generated, received, or maintained by Landis+Gyr are not represented to comply with either Federal or State regulatory requirements. (c) Customer shall have the responsibility of notifying the appropriate Federal and State regulatory agencies, in accordance with their requirements, of all information required concerning the Services, including, but not limited to, the commencement of, termination of, and method and control procedure used in processing Customer’s data. Grand Island Council Session - 10/23/2012 Page 254 / 264 Page 4 of 8   9. GENERAL (a) This Schedule, together with the attachment and the Master Agreement, constitutes the complete and exclusive statement of the agreement of the parties with respect to the subject matter hereof, and supersedes all prior oral and written agreements, understandings and communications between the parties. This Schedule may not be amended except by an instrument signed by the parties. Failure to enforce any Schedule term is not a waiver of future enforcement of that or any other term. The provisions of this Schedule are severable; if any provision is held to be invalid, illegal or unenforceable, the remaining provisions will not in any way be affected or impaired by the holding. In the event of a conflict between the provisions of this Schedule and the Master Agreement, the provisions of the Master Agreement shall prevail. (b) No purchase order, purchase order acknowledgment, invoice, or other pre-printed form terms passing between the parties shall in any way modify or change this Schedule, and this Schedule may only be modified by written agreement which is expressly declared to be an amendment and which is signed by both parties. Acknowledged and agreed to by the authorized representatives of the parties: CUSTOMER LANDIS+GYR TECHNOLOGIES, LLC Signature: ____________________________ Signature: ________________________________ Typed: ____________________________ Typed: ________________________________ Title: ____________________________ Title: ________________________________ Date: ____________________________ Date: ________________________________ Grand Island Council Session - 10/23/2012 Page 255 / 264 Page 5 of 8   Attachment A Services Description This Attachment A describes the Services and the responsibilities of the parties. Landis+Gyr is responsible to: 1. Provide and Maintain Servers Landis+Gyr will purchase all Equipment necessary to operate the Command Center Software and to provide the Services. Equipment will not be dedicated to any particular customer. Dedicated equipment is available for an additional fee. The physical database will not be shared across customers. 2. Install Software Upgrades Landis+Gyr will install all Software upgrades on the Landis+Gyr Equipment. Software includes Command Center Software, operating system software, Microsoft®’s SQL Database and any software running on the Landis+Gyr Equipment. SOFTWARE DOES NOT INCLUDE MOBILE ADMINISTRATION SOFTWARE (“MAS”) UPGRADES TO HANDHELD DEVICES, ENDPOINT PROGRAMMING SOFTWARE UPGRADES AT THE CUSTOMER SITE, OR SUBSTATION PROCESSING UNIT SOFTWARE UPGRADES. The MAS upgrade process can be found in the MAS technical publication, or the Customer may register for training on-line. Although Software does not include the MAS, Landis+Gyr, however, will assist Customer’s upgrade of one (1) handheld when an upgrade is needed at Customer’s request. Customer agrees to pay $100.00 per handheld for any additional upgrade assistance. 3. Conduct Database Administration Landis+Gyr will perform all database backup procedures and any other maintenance routines that are required by the database. Backups of the database will occur on a daily basis. Weekly back-up tapes are stored at an offsite storage location. The production environment will only house two years of live data. All other historical data can be made available to Customer if Customer requests. 4. Monitor Substation Communications Landis+Gyr will monitor the status of communications to the substations. In the event of a fault during normal business hours, Landis+Gyr personnel will contact Customer by email or phone, if a phone number has been provided. If the communications fault is a result of a Landis+Gyr Equipment failure, Landis+Gyr will resolve the communications fault. If the communications fault is not the result of a Landis+Gyr Equipment failure, Landis+Gyr will report the fault for resolution by Customer. In the event of a fault as a result of a Landis+Gyr Equipment failure outside of normal business hours, Landis+Gyr will attempt to resolve the issue; however, no notice of the event will be made to the Customer. Customer is responsible for its own system administration. Should Customer require assistance with respect to communications to the substations, after hours assistance is available as described in Section 7 below. Grand Island Council Session - 10/23/2012 Page 256 / 264 Page 6 of 8   5. Process Substation Communication Fees If there are any substation communication fees that are being incurred by Landis+Gyr (i.e. long distance charges), Landis+Gyr will invoice Customer monthly for the substation communication fees, which Customer agrees to pay. 6. Perform to Uptime to Standards System will be available 98% of a given month, other than for planned maintenance, updates, or force majeure. Planned maintenance and updates are not expected to exceed 10 hours in a normal month. Customer will be notified in advance by email of scheduled maintenance that is anticipated to involve system unavailability of two hours or more. Landis+Gyr will use commercially reasonable efforts to notify Customer at least 48 hours in advance to scheduled maintenance and updates. Landis+Gyr will use commercially reasonable efforts to perform scheduled maintenance outside the hours of 7AM – 7PM Central Standard Time, Monday – Friday. Landis+Gyr will use commercially reasonable efforts to notify Customer immediately if it is anticipated that the system will be unavailable for two hours or more due to unscheduled maintenance. 7. Provide Technical Support The point of contact for support is the customer service call center. The phone number for the call center is: (888) 390-5733. Normal support hours are 7:00 A.M – 6:00 P.M. Central Time, Monday through Friday. After hours support is accessible 24 x 7 by calling the call center number and following the prompts. 8. Include Annual Support Agreement Customer will receive the services and benefits outlined in Landis+Gyr’s standard Support Agreement, which will be provided to Customer. 9. Provide Communication Hardware Landis+Gyr will provide the modems and routers necessary to facility communication at the central hosting location. NOTE: CUSTOMER IS RESPONSIBLE FOR ANY COMMUNICATION EQUIPMENT NEEDED IN CONJUNCTION WITH THE SUBSTATION PROCESSING UNIT AT CUSTOMER SITE. 10. Deliver Disaster Recovery Protection Landis+Gyr will provide disaster recovery for the hosted data and Command Center software in compliance with RUS CFR Part 1730. 11. Convert Data for TurtleWare Software (if applicable) Landis+Gyr will assist Customer with the conversion data from TurtleWare to the Command Center as part of the hosting process. Grand Island Council Session - 10/23/2012 Page 257 / 264 Page 7 of 8   Customer will: 1. Conduct Endpoint and Substation Equipment Field Maintence Customer will perform field maintenance work on the endpoints and substation equipment. This includes, but is not limited to, updating the substation processing unit software to the latest version of software. 2. Interface Billing data to Customer Billing System Customer is responsible for executing the Billing Extract file utilizing the functionality built into the Command Center Software and loading it into Customer’s billing system. Customer is also responsible for any exception processing that is associated with endpoints that do not have billing data available for a particular billing cycle window. 3. Provide Substation Communication Customer is responsible for purchasing and physically maintaining all substation communications infrastructure. 4. Administer Login and Passwords Customer is responsible for administering all Command Center logins and passwords for its employees. 5. Support Utility Consumer Customer is responsible for handling all support for its own end-use consumers. Landis+Gyr will not provide any support regarding billing inquiries or any other matter for end-use consumers. 6. Install and Upgrade Endpoint Programmer Software Customer is responsible to load and maintain Endpoint Programmer Software on desired hardware at their location. 7. Prepare TurtleWare Database for Conversion (if applicable) Customer will, following Landis+Gyr-defined Command Center Pre-Installation Procedures, prepare the TurtleWare database prior to Landis+Gyr’s conversion of TurtleWare data. Grand Island Council Session - 10/23/2012 Page 258 / 264 Page 8 of 8   ATTACHMENT B LANDIS+GYR COMMAND CENTER MANAGED SERVICES PACKAGE (MSP) FEE SCHEDULE MSP FEE SCHEDULE The MSP fee, which will be billed on a monthly basis, is determined by the total number of endpoints deployed by Customer that are in the “deployed” status on the last business day of the previous month, as indicated by the Command Center Software. For one (1) year commencing on the Schedule’s last signature date, the monthly fee for the Services provided hereunder will be $675.00 for up to 2,000 deployed endpoints. For the second and third years of the Schedule’s term, the then current monthly fee will be subject to increases in the CPI. Upon expiration of the third year of the term, Customer agrees to pay Landis+Gyr’s then current per deployed endpoint monthly fee for the Services. COMMUNICATION FEES Landis+Gyr may incur fees to communicate with Customer substations. Landis+Gyr will pay such fees and bill Customer for them, which Customer agrees to pay, at Landis+Gyr’s actual cost on a monthly  basis. Grand Island Council Session - 10/23/2012 Page 259 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-314 WHEREAS, the City of Grand Island invited sealed proposals for Automated Metering Infrastructure (AMI) Pilot System according to plans and specifications on file with the Utilities Department; and WHEREAS, on August 30, 2012, proposals were received, opened and reviewed; and WHEREAS, Landis and Gyr with Kriz Davis as the local representative, submitted a proposal in accordance with the terms of the advertisement of proposal and plans and specifications and all other statutory requirements contained therein, such proposal being in the amount of $108,129.95; and an annual agreement for the hosted server from Landis and Gyr in the amount of $8,100.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the proposal of Landis and Gyr in the amount of $108,129.95, for Automated Metering Infrastructure Pilot System, and an annual agreement for the hosted server in the amount of $8,100.00, is hereby approved as the lowest responsible proposal. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 260 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item I5 #2012-315 - Consideration of Request from Wilmar Realty LLC dba Wilmar, 620 West State Street, Suite B for a Class “C” Liquor License and Liquor Manager Designation for James Goodman, 2716 Apache Road This item relates to the aforementioned Public Hearing item E-1. Staff Contact: RaNae Edwards Grand Island Council Session - 10/23/2012 Page 261 / 264 Approved as to Form ¤ ___________ October 19, 2012 ¤ City Attorney R E S O L U T I O N 2012-315 WHEREAS, an application was filed by Wilmar Realty, LLC doing business as Wilmar, 620 West State Street, Suite B for a Class "C" Liquor License; and WHEREAS, a public hearing notice was published in the Grand Island Independent as required by state law on October 13, 2012; such publication cost being $13.30; and WHEREAS, a public hearing was held on October 23, 2012 for the purpose of discussing such liquor license application. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: ____The City of Grand Island hereby recommends approval of the above- identified liquor license application contingent upon final inspections. ____The City of Grand Island hereby makes no recommendation as to the above-identified liquor license application. ____The City of Grand Island hereby makes no recommendation as to the above-identified liquor license application with the following stipulations: __________________________________________________________ ____The City of Grand Island hereby recommends denial of the above- identified liquor license application for the following reasons:_________ __________________________________________________________ ____The City of Grand Island hereby recommends approval of James Goodman, 2716 Apache Road as liquor manager of such business contingent upon completing a state approved alcohol server/seller program. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 23, 2012. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/23/2012 Page 262 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item J1 Approving Payment of Claims for the Period of October 10, 2012 through October 23, 2012 The Claims for the period of October 10, 2012 through October 23, 2012 for a total amount of $2,787,857.08. A MOTION is in order. Staff Contact: Jaye Monter Grand Island Council Session - 10/23/2012 Page 263 / 264 City of Grand Island Tuesday, October 23, 2012 Council Session Item X1 Update Concerning Union Negotiations for IAFF The City Council may vote to go into Executive Session as required by State law to discuss IAFF Union Negotiations for the protection of the public interest. Staff Contact: Grand Island Council Session - 10/23/2012 Page 264 / 264