10-22-2013 City Council Regular Meeting Packet
City of Grand Island
Tuesday, October 22, 2013
Council Session Packet
City Council:
Linna Dee Donaldson
Scott Dugan
John Gericke
Peg Gilbert
Chuck Haase
Julie Hehnke
Vaughn Minton
Mitchell Nickerson
Bob Niemann
Mike Paulick
Mayor:
Jay Vavricek
City Administrator:
Mary Lou Brown
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street
Grand Island Council Session - 10/22/2013 Page 1 / 198
City of Grand Island Tuesday, October 22, 2013
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 Scott Jones, Third City Christian Church, 4100 West 13th
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 - 10/22/2013 Page 2 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item C-1
Recognition of Grand Island Senior High Girls Golf Team for
Class “A” State Championship
The Mayor and City Council will recognize the Grand Island Senior High School Girls Golf Team and
their Coach Kelli Jeffries for the Class "A" State Golf Championship held on October 15, 2013 at the
Norfolk Country Club in Norfolk, Nebraska. Congratulations Lady Islanders for a job well done.
Staff Contact: Mayor Jay Vavricek
Grand Island Council Session - 10/22/2013 Page 3 / 198
Grand Island Council Session - 10/22/2013 Page 4 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item C-2
Proclamation “Project Homeless Connect Day” October 24, 2013
Project Homeless Connect is a national best practice model to help people achieve housing and stability
and to end homelessness. This years event in Grand Island will be held on October 24, 2013 at the
Evangelical Free Church between 10 a.m. and 2 p.m. Mayor Vavricek has proclaimed October 24, 2013
as "Project Homeless Connect Day". See attached PROCLAMATION.
Staff Contact: Mayor Jay Vavricek
Grand Island Council Session - 10/22/2013 Page 5 / 198
Grand Island Council Session - 10/22/2013 Page 6 / 198
Grand Island Council Session - 10/22/2013 Page 7 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item C-3
Recognition of United Veterans Honor Guard
The Mayor and City Council will recognize the United Veterans Honor Guard for their faithful and
dedicated service to the citizens of Grand Island. Their unselfish service is appreciated by the citizens of
Grand Island.
Staff Contact: Mayor Jay Vavricek
Grand Island Council Session - 10/22/2013 Page 8 / 198
Certificate of Recognition
Awarded to
“United Veterans Honor Guard”
for their faithful and dedicated service to the citizens of Grand Island.
_______________________________
Mayor Jay Vavricek City Administrator Mary Lou Brown City Clerk RaNae Edwards
Grand Island Council Session - 10/22/2013 Page 9 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item E-1
Public Hearing on Declaration of a Site Known as Redevelopment
Area 13 Located North of Phoenix Avenue and West of Lincoln
Avenue
Staff Contact: Chad Nabity
Grand Island Council Session - 10/22/2013 Page 10 / 198
1
Council Agenda Memo
From:Regional Planning Commission
Meeting:October 22, 2013
Subject:Gary Jacobsen (Proposed CRA Area No. 13)
(C-27-2013GI)
Item #’s:E-1 & I-1
Presenter(s):Chad Nabity AICP, Regional Planning Director
Background
Gary Jacobsen commissioned a Blight and Substandard Study for Proposed
Redevelopment Area No. 13 to be prepared by Marvin Planning Consultants of David
City, Nebraska. The study area includes approximately 2.16 acres referred to as CRA
Area No. 13. The study focused on property bounded by the hike bike trail on the north,
Lincoln Avenue on the east, Phoenix Avenue to the south and Adams Street on the west
in central Grand Island. (See the attached map) On September 10, 2013, Council referred
the attached study to the Planning Commission for its review and recommendation.
The decision on whether to declare an area substandard and blighted is entirely within the
jurisdiction of the City Council with a recommendation from the Planning Commission.
Discussion
The Statutory authority and direction to the Planning Commission is referenced below to
explain the Planning Commission purpose in reviewing the study:
Section 18-2109
Redevelopment plan; preparation; requirements.
An authority shall not prepare a redevelopment plan for a redevelopment project
area unless the governing body of the city in which such area is located has, by
resolution adopted after a public hearing with notice provided as specified in
section 18-2115, declared such area to be a substandard and blighted area in need
of redevelopment. The governing body of the city shall submit the question of
whether an area is substandard and blighted to the planning commission or board
of the city for its review and recommendation prior to making its declaration. The
planning commission or board shall submit its written recommendations within
Grand Island Council Session - 10/22/2013 Page 11 / 198
2
thirty days after receipt of the request. Upon receipt of the recommendations or
after thirty days if no recommendation is received, the governing body may make
its declaration.
~Reissue Revised Statutes of Nebraska
A flow chart of the blight declaration process is shown in Figure 2.
At this time, the Planning Commission and Council are only concerned with determining
if the property is blighted and substandard. Figure 3 is an overview of the differences
between the blight and substandard declaration and the redevelopment plan. If a
declaration as blighted and substandard is made by Council then the Community
Redevelopment Authority (CRA) can consider appropriate redevelopment plans. The
redevelopment plans must also be reviewed by the Planning Commission and approved
by Council prior to final approval.
Figure 1 Redevelopment Area 13 includes all properties within the hatched area.
Grand Island Council Session - 10/22/2013 Page 12 / 198
3
Study
Commissioned by
CRA
Study Commissioned
by Other Agency
Study Presented to
CRA
Study Presented to
Council
May Be Forwarded
to RPC
Study Sent to
RPC for Review
and
Recommendation
Council Chooses not
to Forward Study to
RPC
No Declaration Made
RPC Reviews
Study and Makes
Recommendation
within 30 Days
Council
Considers
Substandard
and Blighted
Declaration
Council Chooses not to
Make Substandard and
Blighted Declaration. No
Redevelopment Plans May
be Considered
Council Declares Area
Substandard and Blighted.
Redevelopment Plans
May be Considered by
the CRA
Process for Declaring an area of the City
Substandard and Blighted
Figure 2 Blight Declaration Process (Planning Commission Recommendation is the second purple
box).
Grand Island Council Session - 10/22/2013 Page 13 / 198
4
Substandard and
Blighted Declaration vs.
Redevelopment Plan
Substandard and
Blighted Declaration
A Study of the
Existing Conditions of
the Property in
Question
Does the property
meet one or more
Statutory Conditions
of Blight?
Does the Property
meet one or more
Statutory Conditions
of Substandard
Property?
Is the declaration in
the best interest of
the City?
Redevelopment
Plan
What kinds of
activities and
improvements are
necessary to alleviate
the conditions that
make the property
blighted and
substandard?
How should those
activities and
improvements be
paid for?
Will those activities
and improvements
further the
implementation of the
general plan for the
City?
Figure 3 Blight and Substandard Declaration compared to a Redevelopment Plan
Grand Island Council Session - 10/22/2013 Page 14 / 198
5
OVERVIEW Continued
It is appropriate for the Council in conducting its review and considering its decision
regarding the substandard and blighted designation to:
1.review the study,
2.take testimony from interested parties,
3.review the recommendation and finding of fact identified by the Planning
Commission
4.make findings of fact, and
5.include those findings of fact as part of its motion to approve or deny the request
to declare this area blighted and substandard.
Blighted and Substandard Defined
The terms blighted and substandard have very specific meanings within the context of the
Community Redevelopment Statutes. Those terms as defined by Statute are included
below:
Section 18-2103
Terms, defined.
For purposes of the Community Development Law, unless the context otherwise
requires:
(10) Substandard areas shall mean an area in which there is a predominance of
buildings or improvements, whether nonresidential or residential in character, which,
by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for
ventilation, light, air, sanitation, or open spaces, high density of population and
overcrowding, or the existence of conditions which endanger life or property by fire
and other causes, or any combination of such factors, is conducive to ill health,
transmission of disease, infant mortality, juvenile delinquency, and crime, (which
cannot be remedied through construction of prisons), and is detrimental to the public
health, safety, morals, or welfare;
(11) Blighted area shall mean an area, which (a) by reason of the presence of a
substantial number of deteriorated or deteriorating structures, existence of defective
or inadequate street layout, faulty lot layout in relation to size, adequacy,
accessibility, or usefulness, insanitary or unsafe conditions, deterioration of site or
other improvements, diversity of ownership, tax or special assessment delinquency
exceeding the fair value of the land, defective or unusual conditions of title, improper
subdivision or obsolete platting, or the existence of conditions which endanger life or
property by fire and other causes, or any combination of such factors, substantially
impairs or arrests the sound growth of the community, retards the provision of
housing accommodations, or constitutes an economic or social liability and is
detrimental to the public health, safety, morals, or welfare in its present condition and
use and (b) in which there is at least one of the following conditions: (i)
Unemployment in the designated area is at least one hundred twenty percent of the
Grand Island Council Session - 10/22/2013 Page 15 / 198
6
state or national average; (ii) the average age of the residential or commercial units in
the area is at least forty years; (iii) more than half of the plotted and subdivided
property in an area is unimproved land that has been within the city for forty years
and has remained unimproved during that time; (iv) the per capita income of the area
is lower than the average per capita income of the city or village in which the area is
designated; or (v) the area has had either stable or decreasing population based on the
last two decennial censuses. In no event shall a city of the metropolitan, primary, or
first class designate more than thirty-five percent of the city as blighted, a city of the
second class shall not designate an area larger than fifty percent of the city as
blighted, and a village shall not designate an area larger than one hundred percent of
the village as blighted;
~Reissue Revised Statutes of Nebraska
ANALYSIS
The following findings are copied directly from the Study. The analysis of the
substandard and blighted factors is conducted on pages 6 to 15 of the study.
FINDINGS FOR GRAND ISLAND
Study Area #13 has several items contributing to the Blight and Substandard Conditions.
These conditions include:
BlightingBlighting SummarySummary
These conditions are contributing to the blighted conditions of the study area.
Substantial number of deteriorating structures
o 100.00% of the structures identified within the corporate limits, of the Study
Area, were deemed to be in a state of deterioration or dilapidation
Deterioration of site or other improvements
o A large amount of sidewalk either in a deteriorated state or missing from
properties in the area.
o The existence of gravel streets within the study area.
o The condition of the streets within the corporate limits.
Dangerous conditions to life or property due to fire or other causes
o The number of deteriorating structures
Average age of structures is over 40 years of age
o Within the Study Area 100.00% of the structures meet the criteria of 40 years of
age or older.
Improper Subdivision or obsolete platting
Unsanitary / Unsafe conditions
Grand Island Council Session - 10/22/2013 Page 16 / 198
7
o The area has major drainage issues and does not drain well and has the potential
for standing water to be present for long periods of time.
The other criteria for Blight were not present in the area, these included:
Combination of factors which are impairing and/or arresting sound growth
Defective/Inadequate street layouts,
Faulty lot layout,
Defective or unusual condition of title,
Economic or social liability detrimental to health, safety and welfare,
Conditions provision of housing accommodations,
One-half of unimproved property is over 40 years old,
Inadequate provisions for ventilation, light, air, open spaces or sanitation, and
Diversity of ownership.
These issues were either not present or were limited enough as to have little impact on the
overall condition of the study area.
SubstandardSubstandard SummarySummary
Nebraska State Statute requires “…an area in which there is a predominance of buildings
or improvements, whether nonresidential or residential in character, which, by reason of
dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation,
light, air, sanitation, or open spaces, high density of population and overcrowding, or the
existence of conditions which endanger life or property by fire and other causes, or any
combination of such factors, is conducive to ill health, transmission of disease, infant
mortality, juvenile delinquency, and crime, (which cannot be remedied through
construction of prisons), and is detrimental to the public health, safety, morals, or
welfare;”
This Study Area in Grand Island meets the defintion with the average age of the
structures being more than 40 years of age. In addition, the area meets the criteria for the
existence of conditions which endanger life or property by fire and other causes.
FFINDINGSINDINGS FORFOR GGRANDRAND IISLANDSLAND BBLIGHTLIGHT SSTUDYTUDY AAREAREA #13#13
Blight Study Area #13 has several items contributing to the Blight and Substandard
Conditions. These conditions include:
Blighted Conditions
Substantial number of deteriorating structures.
Improper subdivision or obsolete platting.
Deterioration of site or other improvements.
Dangerous conditions to life or property due to fire or other causes.
Average age of units is over 40 years of age.
Unsanitary/unsafe conditions.
Substandard Conditions
Average age of the structures in the area is at least forty years.
Grand Island Council Session - 10/22/2013 Page 17 / 198
8
Existence of conditions which endanger life or property by fire and other causes.
Based on the study these areas meet the thresholds to qualify as blighted and
substandard.
RECOMMENDATION:
Planning Commission and staff recommend considering the following questions as a
starting point in the analysis of this Study and in making a determinat the question of
whether the property in question is blighted and substandard and whether making such a
designation is in the best interest of the City.
Recommend Questions for Planning Commission and City Council
Does this property meet the statutory requirements to be considered blighted and
substandard? (See the prior statutory references.)
Are the blighted and substandard factors distributed throughout the
Redevelopment Area, so basically good areas are not arbitrarily found to be
substandard and blighted simply because of proximity to areas which are
substandard and blighted?
Is public intervention appropriate and/or necessary for the redevelopment of the
area?
Findings of fact must be based on the study and testimony presented including all
written material and staff reports. The recommendation must be based on the
declaration, not based on any proposed uses of the site. All of the testimony, a copy
of the study and this memo along with any other information presented at the hearing
should be entered into the record of the hearing.
The Regional Planning Commission concluded that the area in question meets the
definition of blighted and substandard.
They recommend approval of the declaration as blighted and substandard.
The Planning Commission held a Public Hearing on this proposal at their meeting on
October 2, 2013. No members of the public spoke at the public hearing.
Grand Island has 12 areas that have been declared blighted and substandard 3,482 acres.
This represents 18.20% of the area of the City. Grand Island can declare up to 35% of its
municipal area blighted and substandard. If Council approves the declaration of this area
as blighted and substandard 2.16 acres would be added to the blighted and substandard
area in Grand Island increasing the percentage by 0.01% to 18.21% well below the 35%
limitation.
Grand Island Council Session - 10/22/2013 Page 18 / 198
9
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
A motion was made by McCarty and seconded by Bredthauer to approve the adoption of
Blight and Substandard Study Area #13 as presented based on the study prepared by
Marvin Planning Consultants.
A roll call vote was taken and the motion passed with 8 members present and voting in
favor (Hayes, Snodgrass, O’Neill, Bredthauer, McCarty, Amick, Reynolds and Haskins)
and no one voting against.
Sample Motion
Move to approve the Substandard and Blight Designation for Redevelopment Area No.
13 in Grand Island, Hall County, Nebraska finding the information in the study to be
factual supporting such designation.
Grand Island Council Session - 10/22/2013 Page 19 / 198
Alvo,
Nebraska
Alvo,
Nebraska
City of Grand Island, NE
Blight and Substandard Study
Area #13
July 2013
Grand Island Council Session - 10/22/2013 Page 20 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 1
PPUURRPPOOSSEE OOFF TTHHEE BBLLIIGGHHTT AANNDD SSUUBBSSTTAANNDDAARRDD SSTTUUDDYY
The purpose of completing this Blight and Substandard study is to examine existing conditions
within the city of Grand Island. This study has been commissioned by an individual property
owner within the community with the hope that the City will consider the study area for future
redevelopment activity. The area is bordered on the south by a major transportation route and
the general area of the community has begun to see some new investment in properties as
well as considerable redevelopment activities.
The City of Grand Island, when considering conditions of Blight and Substandard, will be
looking at those issues and definitions provided for in the Nebraska Community
Redevelopment Law as found in Chapter 18, Section 2104 of the Revised Nebraska State
Statutes, as follows:
“The governing body of a city, to the greatest extent it deems to be feasible in
carrying out the provisions of Sections 18-2101 to 18-2144, shall afford maximum
opportunity, consistent with sound needs of the city as a whole, to the rehabilitation
or redevelopment of the community redevelopment area by private enterprises.
The governing body of a city shall give consideration to this objective in exercising
its powers under sections 18-2101 to 18-2144, including the formulation of a
workable program, the approval of community redevelopment plans consistent
with the general plan for the development of the city, the exercise of its zoning
powers, the enforcement of other laws, codes, and regulations relating to the use
and occupancy of buildings and improvements, the disposition of any property
acquired, and providing of necessary public improvements”.
The Nebraska Revised Statutes §18-2105 continues by granting authority to the governing body
for formulation of a workable program. The statute reads,
“The governing body of a city or an authority at its direction for the purposes of the
Community Development Law may formulate for the entire municipality a workable
program for utilizing appropriate private and public resources to eliminate or
prevent the development or spread of urban blight, to encourage needed urban
rehabilitation, to provide for the redevelopment of substandard and blighted
areas, or to undertake such of the aforesaid activities or other feasible municipal
activities as may be suitably employed to achieve the objectives of such workable
program. Such workable program may include, without limitation, provision for the
prevention of the spread of blight into areas of the municipality which are free from
blight through diligent enforcement of housing, zoning, and occupancy controls
and standards; the rehabilitation or conservation of substandard and blighted
areas or portions thereof by replanning, removing congestion, providing parks,
playgrounds, and other public improvements by encouraging voluntary
rehabilitation and by compelling the repair and rehabilitation of deteriorated or
deteriorating structures; and the clearance and redevelopment of substandard
and blighted areas or portions thereof.”
Blight and Substandard are defined as the following:
“Substandard areas means an area in which there is a predominance of buildings
or improvements, whether nonresidential or residential in character, which, by
reason of dilapidation, deterioration, age or obsolescence, inadequate provision
for ventilation, light, air, sanitation, or open spaces, high density of population and
overcrowding, or the existence of conditions which endanger life or property by fire
and other causes, or any combination of such factors, is conducive to ill health,
transmission of disease, infant mortality, juvenile delinquency, and crime, (which
cannot be remedied through construction of prisons), and is detrimental to the
public health, safety, morals, or welfare;”
Grand Island Council Session - 10/22/2013 Page 21 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 2
“Blighted area means an area, which (a) by reason of the presence of a substantial
number of deteriorated or deteriorating structures, existence of defective or
inadequate street layout, faulty lot layout in relation to size, adequacy,
accessibility, or usefulness, insanitary or unsafe conditions, deterioration of site or
other improvements, diversity of ownership, tax or special assessment delinquency
exceeding the fair value of the land, defective or unusual conditions of title,
improper subdivision or obsolete platting, or the existence of conditions which
endanger life or property by fire and other causes, or any combination of such
factors, substantially impairs or arrests the sound growth of the community, retards
the provision of housing accommodations, or constitutes an economic or social
liability and is detrimental to the public health, safety, morals, or welfare in its
present condition and use and (b) in which there is at least one of the following
conditions: (i) Unemployment in the designated area is at least one hundred twenty
percent of the state or national average; (ii) the average age of the residential or
commercial units in the area is at least forty years; (iii) more than half of the plotted
and subdivided property in an area is unimproved land that has been within the
city for forty years and has remained unimproved during that time; (iv) the per
capita income of the area is lower than the average per capita income of the city
or in which the area is designated; or (v) the area has had either stable or
decreasing population based on the last two decennial censuses. In no event shall
a city of the metropolitan, primary, or first class designate more than thirty-five
percent of the city as blighted, a city of the second class shall not designate an
area larger than fifty percent of the city as blighted, and a shall not designate an
area larger than one hundred percent of the as blighted;”
This Blight and Substandard Study is intended to give the Grand Island Community
Redevelopment Authority and Grand Island City Council the basis for identifying and declaring
Blighted and Substandard conditions existing within the City’s jurisdiction. Through this process,
the City and property owner will be attempting to address economic and/or social liabilities
which are harmful to the well-being of the entire community.
The study area can be seen in Figure 1 of this report. The Redevelopment Plan portion of this
report will contain, in accordance with the law, definite local objectives regarding appropriate
land uses, improved traffic, public transportation, public utilities and other public
improvements, and the proposed land uses and building requirements in the redevelopment
area and shall include:
The boundaries defining the blighted and substandard areas in question (including existing
uses and conditions of the property within the area), and
A list of the conditions present which qualify the area as blighted and substandard.
BBLLIIGGHHTT AANNDD SSUUBBSSTTAANNDDAARRDD EELLIIGGIIBBIILLIITTYY SSTTUUDDYY
This study targets a specific area within an established part of the community for evaluation.
The area is indicated in Figure 1 of this report. The existing uses in this area include commercial
and public open space (primarily detention cells).
Through the redevelopment process the City of Grand Island can guide future development
and redevelopment throughout the area. The use of the Community Redevelopment Act by
the City of Grand Island is intended to redevelop and improve the area. Using the Community
Redevelopment Act, the City of Grand Island can assist in the elimination of negative
conditions and implement different programs/projects identified for the City.
Grand Island Council Session - 10/22/2013 Page 22 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 3
The following is the description of the designated area within Grand Island.
Study Area
POINT OF BEGINNING IS THE INTERSECTION OF THE CENTERLINES OF LINCOLN AVENUE S. AND
PHOENIX AVENUE W; THENCE SOUTHWESTERLY ALONG SAID CENTERLINE OF PHOENIX AVENUE W
TO THE INTERSECTION OF THE CENTERLINES OF PHOENIX AVENUE W AND ADAMS STREET S;
THENCE NORTHWESTERLY ALONG SAID CENTERLINE OF ADAMS STREET S TO THE EXTENDED NORTH
RIGHT-OF-WAY LINE CITY RIGHT-OF-WAY (OLD RAILROAD RIGHT-OF-WAY); THENCE,
NORTHEASTERLY ALONG NORTH RIGHT-OF-WAY LINE TO THE INTERSECTION WITH THE CENTERLINE
OF LINCOLN AVENUE S; THENCE SOUTHEASTERLY TO THE POINT OF BEGINNING.
Figure 1
Study Area Map
Source: Olsson Associates 2013
Grand Island Council Session - 10/22/2013 Page 23 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 4
EEXXIISSTTIINNGG LLAANNDD UUSSEESS
The term “Land Use” refers to the developed uses in place within a building or on a specific
parcel of land. The number and type of uses are constantly changing within a community, and
produce a number of impacts that either benefit or detract from the community. Because of
this, the short and long-term success and sustainability of the community is directly contingent
upon available resources utilized in the best manner given the constraints the City faces during
the course of the planning period. Existing patterns of land use are often fixed in older
communities and neighborhoods, while development in newer areas is often reflective of
current development practices.
Existing Land Use Analysis within Study Area
As part of the planning process, a survey was conducted through both in-field observations, as
well as data collection online using the Hall County Assessors website. This survey noted the use
of each parcel of land within the study area. These data from the survey are analyzed in the
following paragraphs.
Table 1 includes the existing land uses for the entire study area. The table contains the total
acres determined per land use from the survey; next is the percentage of those areas
compared to the total developed land; and finally, the third set of data compare the all land
uses to the total area within the Study Area.
The Study Area is predominately Industrial uses with 31.0% of land in this use. The remaining
69.0% is Transportation related, specifically public right-of-way and streets.
TABLE 1: EXISTING LAND USE, GRAND ISLAND - 2013
Type of Use Acres Percent of
Developed
land within
the Study
Area
Percent of
Study Area
Residential 0 0.0%0.0%
Single-family 0 0.0%0.0%
Multi-family 0 0.0%0.0%
Manufactured Housing 0 0.0%0.0%
Commercial 0 0.0%0.0%
Industrial 1.20 55.6%55.6%
Quasi-Public/Public 0 0.0%0.0%
Parks/Recreation 0 0.0%0.0%
Transportation 0.96 44.4%44.4%
Total Developed Land 2.16 100.0%
Vacant/Agriculture 0 0.0%
Total Area 2.16 100.0% Source: 2013 Grand Island Blight Study Area 13, Marvin Planning Consultants and Olsson Associates
Grand Island Council Session - 10/22/2013 Page 24 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 5
Figure 2
Existing Land Use Map
Source: Marvin Planning Consultants and Olsson Associates, 2013
Grand Island Council Session - 10/22/2013 Page 25 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 6
FFIINNDDIINNGGSS OOFF BBLLIIGGHHTT AANNDD SSUUBBSSTTAANNDDAARRDD CCOONNDDIITTIIOONNSS EELLIIGGIIBBIILLIITTYY SSTTUUDDYY
This section of the Eligibility Report examines the conditions found in the study area. The
Findings Section will review the conditions based upon the statutory definitions.
CONTRIBUTING FACTORS
There are a number of conditions that were examined and evaluated in the field and online.
There are a number of conditions that will be reviewed in detail, on the following pages, while
some of the statutory conditions are present, other are not.
Age of Structure
Age of structures can be a contributing factor to the blighted and substandard conditions in
an area. Statutes allow for a predominance of structures that are 40 years of age or older to
be a contributing factor regardless of their condition. The following paragraphs document the
structural age of the structures within the Study Area. Note that the age of structure was
determined from the Appraisal data within the Hall County Assessor’s website data.
Within the study area there is a total of two structures. After researching the structural age on
the Hall County Assessor’s and Treasurer’s websites, the following breakdown was determined:
Two (100.0%) units were determined to be 40 years of age or older
Also there are numerous structures outside of the boundary in another previously blighted
area that are 40 years of age or older and are negatively impacting the area under
discussion.
The age of the structures would be a direct contributing factor.
Figure 3
Unit Age Map
Source: Marvin Planning Consultants and Olsson Associates, 2013
Grand Island Council Session - 10/22/2013 Page 26 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 7
Structural Conditions
Where structural conditions were evaluated,
structures were either rated as: No problems,
Adequate, Deteriorating, or Dilapidated. The
following are the definitions of these terms:
No Problem/ Adequate Conditions
No structural or aesthetic problems were
visible, or
Slight damage to porches, steps, roofs etc. is
present on the structure,
Slight wearing away of mortar between
bricks, stones, or concrete blocks,
Small cracks in walls or chimneys,
Cracked windows,
Lack of paint, and
Slight wear on steps, doors, and door and window sills and frames.
Deteriorating Conditions
Holes, open cracks, rotted, loose, or missing materials in parts of the foundation, walls, or
roof (up to 1/4 of wall or roof),
Shaky, broken, or missing steps or railings,
Numerous missing and cracked window panes,
Some rotted or loose windows or doors (no longer wind- or water-proof), and
Missing bricks, or cracks, in chimney or makeshift (uninsulated) chimney.
Dilapidated Conditions
Holes, open cracks, or rotted, loose or missing material (siding, shingles, brick, concrete,
tiles, plaster, floorboards) over large areas of foundation,
Substantial sagging of roof, floors, or walls,
Extensive damage by fire, flood or storm, and
Inadequate original construction such as makeshift walls, roofs made of scrap materials,
foundations or floors lacking, or converted barns, sheds, and other structures not
adequate for housing.
These are criteria used to determine the quality of each structure in the Study Area.
In a recent conditions survey, the structures within the corporate limits were rated. Within the
corporate limits portion of the study area there are a total of two structures.
After reviewing the overall conditions of the structures in the corporate limits portion include:
0 (0.00%) structures rated as adequate
0 (0.00%) structures rated as deteriorating
2 (100.0%) structures rated as dilapidated
Overall, 100.0% of the structures in this area are in a state of disrepair. Figure 3 shows the data
on a block level as opposed to structure. Typically, if there were several structures deemed to
be deteriorating or dilapidated then the entire block was downgraded. For purposes of this
study there is approximately 100.0% of the block area within the Study Area has dilapidated
structures.
Due to the state of disrepair of a number of properties in the area, the conditions represent
conditions which are Dangerous to conditions of life or property due to fire or other causes.
Grand Island Council Session - 10/22/2013 Page 27 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 8
Figure 4
Structural Conditions
Source: Marvin Planning Consultants and Olsson Associates, 2013
Sidewalk Conditions
The sidewalk conditions were analyzed in the Study
Area. The sidewalks were rated on four categories;
adequate, deteriorating, dilapidating, and missing
completely.
Within the study area there is approximately 802.32
lineal feet of sidewalk. After reviewing the
conditions in the field, the following is how the
sidewalk conditions breakdown within the study
area:
0 (0.00%) lineal feet of adequate sidewalk
337.65 (42.1%) lineal feet of deteriorating
sidewalk
464.67 (57.9%) lineal feet of no sidewalk. There was no sidewalk deemed to be dilapidated.
Overall, 100% of the sidewalks are in either a deteriorating state or completely missing. Missing
sidewalk is as bad as dilapidated or deteriorating sidewalk since there is no safe place to walk
other than across someone else’s property or in the street. See Figure 5 for the locations of
these sidewalks.
Due to the large amount of deteriorating and missing sidewalk, the sidewalk conditions would
be a direct contributing factor.
No sidewalks present
Grand Island Council Session - 10/22/2013 Page 28 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 9
Street Conditions
The street conditions were analyzed in the Study
Area. The streets were also rated on four categories;
adequate, deteriorating, dilapidating, and missing
completely. The following is the breakdown for the
area.
Within the study area there is approximately 932.64
lineal feet of street. After reviewing the conditions in
the field, the following is how the street conditions
breakdown within the corporate limits:
0 (0.00%) lineal feet of adequate street
606.13 (65.0%) lineal feet of deteriorating street
326.51 (35.0%) lineal feet of gravel streets.
There was no street deemed to be dilapidated.
Overall, 100.0% of the streets are in either a deteriorating state or were paved with gravel, thus
an obsolete material for an urban area. See Figure 6 for the locations of these streets.
Due to the large amount of deteriorating and missing street, the street conditions would be a
direct contributing factor.
Curb and Gutter
Curb and Gutters have a number of direct and
indirect roles in neighborhoods. Their primary
functions is to be a barrier that collects and directs
water to be drained away. On a secondary level,
they can help define where the streets start and
stop, and they act as a physical barrier between
pedestrian and vehicular traffic.
Curb and gutter for the Study Area were examined
similarily to streets and sidewalks. The curb and
gutter will be graded as either adequate,
deteriorating, dilapidated, or missing. In addition,
curb and gutter will be examined based upon their location, within the incorporated area or
within the county industrial park.
Within the study area there is approximately 804 lineal feet of curb and gutter possible. After
reviewing the conditions in the field, the following is how the curb and gutter conditions
breakdown within the corporate limits:
160.00 (19.9%) lineal feet of adequate curb and gutter
196.44 (24.4%) lineal feet of deteriorating curb and gutter
447.97 (55.7%) lineal feet of no curb and gutter or rural section.
There was no curb and gutter deemed to be dilapidated.
In total, 80.1% of the curb and gutters are in either a deteriorating state or are missing. See
Figure 7 for the locations of these curb and gutter.
Due to the large amount of deteriorating and missing curb and gutter, the curb and gutter
conditions would be a direct contributing factor.
Deterioration of site or other improvements
Throughout this Area, there is a large portion of sidewalk that is either deteriorating or missing. In
addition, a large portion of the curb and gutter has been determined to be either
deteriorating or missing.
No Curb and Gutter present
Gravel streets present
Grand Island Council Session - 10/22/2013 Page 29 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 10
Finally, the area has a large amount of deteriorating
streets. The streets have been patched over and over
due to large amounts of cracking that has been
occurring in the pavement.
These are major considerations in determining if the
area has deteriorated sites or improvements.
Based upon the field analysis, there are sufficient
elements present to meet the definition of
deterioration of site and other improvements in the
Study Area.
Dangerous conditions to life or property due to fire or other causes
There are two structures within the Study Area that are deteriorated and appear to be getting
worse. The continued deterioration from this point forward will place some of these properties
at risk for fire.
In addition, there are a couple of properties in close proximity that if they go untouched in the
future could present a danger to life if someone were to sneak onto the property. This property
needs to have a repaired security fence put into place in order to minimize the threat.
Based upon the field analysis, there are sufficient elements present to meet the definition of
dangerous conditions within the Study Area.
Improper Platting or Obsolete Platting
The majority of this area was platted in the 1800’s as the city began to grow and when there
was still an active railroad line serving this part of Grand Island. The vast number of the lots, as
they are platted today, will be difficult to redevelop.
Based upon the review of the plat of the area, there are sufficient elements present to meet
the definition of improper platting or obsolete platting within the Study Area.
Unsanitary / Unsafe conditions
The area being evaluated for the conditions of blighted and substandard needs to be
examined for the unsanitary and unsafe conditions. A primary item that was examined was the
drainage conditions of the area.
Drainage Conditions
Grand Island has a long history of drainage issue
due to the extreme flatness of the area, as well as
the high water table. Topography and soils can
have a major impact on how a given portion of the
city drains. The area designated in this Study Area is
nearly flat or has an extremely small slope.
The field survey examined the entire area for
potential drainage problems. One field survey was
completed the same day of a rain event. During the
field visit there was standing water throughout the
entire area. Water was standing in large potholes, in
drainage ditches, along areas that were supposed to drain the water away.
Standing water from poor drainage can be a catalyst for Health issues like West Nile due to the
potential mosquito breeding that can occur.
Grand Island Council Session - 10/22/2013 Page 30 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 11
Drainage also can be tied directly to the next issue
that was analyzed during the field investigations,
curb and gutter conditions.
Based upon the field analysis, there are sufficient
elements present to meet the definition of
unsanitary/unsafe conditions within the Study Area.
BBlliigghhttiinngg SSuummmmaarryy
These conditions are contributing to the blighted
conditions of the study area.
Substantial number of deteriorating structures
o 100.00% of the structures identified within the corporate limits, of the Study Area, were
deemed to be in a state of deterioration or dilapidation
Deterioration of site or other improvements
o A large amount of sidewalk either in a deteriorated state or missing from properties in
the area.
o The existence of gravel streets within the study area.
o The condition of the streets within the corporate limits.
Dangerous conditions to life or property due to fire or other causes
o The number of deteriorating structures
Average age of structures is over 40 years of age
o Within the Study Area 100.00% of the structures meet the criteria of 40 years of age or
older.
Improper Subdivision or obsolete platting
Unsanitary / Unsafe conditions
o The area has major drainage issues and does not drain well and has the potential for
standing water to be present for long periods of time.
The other criteria for Blight were not present in the area, these included:
Combination of factors which are impairing and/or arresting sound growth
Defective/Inadequate street layouts,
Faulty lot layout,
Defective or unusual condition of title,
Economic or social liability detrimental to health, safety and welfare,
Conditions provision of housing accommodations,
One-half of unimproved property is over 40 years old,
Inadequate provisions for ventilation, light, air, open spaces or sanitation, and
Diversity of ownership.
These issues were either not present or were limited enough as to have little impact on the
overall condition of the study area.
Grand Island Council Session - 10/22/2013 Page 31 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 12
Figure 5
Sidewalk Conditions
Source: Marvin Planning Consultants and Olsson Associates, 2013
Grand Island Council Session - 10/22/2013 Page 32 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 13
Figure 6
Street Conditions
Source: Marvin Planning Consultants and Olsson Associates, 2013
Grand Island Council Session - 10/22/2013 Page 33 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 14
Figure 7
Curb and Gutter Conditions
Source: Marvin Planning Consultants and Olsson Associates, 2013
Grand Island Council Session - 10/22/2013 Page 34 / 198
Blight and Substandard Study
City of Grand Island, Nebraska • July 2013 Page 15
SSuubbssttaannddaarrdd CCoonnddiittiioonnss
Average age of the residential or commercial units in the area is at least forty years
Age of structures can be a contributing factor to the blighted and substandard conditions in
an area. Statutes allow for a predominance of units that are 40 years of age or older to be a
contributing factor regardless of their condition. Note that the age of structure was determined
from the Appraisal data within the Hall County Assessor’s website data.
Within the study area there is a total of two structures. After researching the structural age on
the Hall County Assessor’s and Treasurer’s websites, the following breakdown was determined:
0 (0.00%) units were determined to be less than 40 years of age
2 (100.00%) units were determined to be 40 years of age or older
There is a predominance of units 40 years of age or older.
SSuubbssttaannddaarrdd SSuummmmaarryy
Nebraska State Statute requires that at least one of five substandard factors be present in a
community. This Study Area in Grand Island has one of the five. The other criteria for
Substandard were not present or the data was not readily accessible in the area, these
included:
Unemployment in the designated area is at least one hundred twenty percent of the state
or national average;
more than half of the plotted and subdivided property in an area is unimproved land that
has been within the city for forty years and has remained unimproved during that time;
the per capita income of the area is lower than the average per capita income of the city
or in which the area is designated
the area has had either stable or decreasing population based on the last two decennial
censuses.
FFIINNDDIINNGGSS FFOORR GGRRAANNDD IISSLLAANNDD BBLLIIGGHHTT SSTTUUDDYY AARREEAA ##1133
Blight Study Area #13 has several items contributing to the Blight and Substandard Conditions.
These conditions include:
Blighted Conditions
Improper subdivision or obsolete platting
Deterioration of site or other improvements,
Dangerous conditions to life or property due to fire or other causes,
Average age of units is over 40 years of age.
Substandard Conditions
Average age of the structures in the area is at least forty years
Grand Island Council Session - 10/22/2013 Page 35 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item E-2
Public Hearing on Acquisition of Drainage Easements in Copper
Creek Estates Third and Fourth Subdivision (The Guarantee
Group, LLC)
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session - 10/22/2013 Page 36 / 198
Council Agenda Memo
From:Terry Brown PE, Manager of Engineering Services
Meeting:October 22, 2013
Subject:Public Hearing on Acquisition of Drainage Easements in
Copper Creek Estates Third and Fourth Subdivision (The
Guarantee Group, LLC)
Item #’s:E-2 & G-6
Presenter(s):John Collins PE, Public Works Director
Background
Nebraska State Statutes stipulate that the acquisition of property requires a public hearing
to be conducted with the acquisition approved by the City Council. Drainage easements
need to be dedicated between Cooper Creek Estates Third Subdivision and Copper Creek
Estates Fourth Subdivision to allow for further development of the area.
Discussion
These easements will allow for drainage within the cooper Creek Estates Third
Subdivision and Copper Creek Estates Fourth Subdivision, and permit further housing
development. The new easements will be a total of ten (10) feet wide, as shown on the
attached drawings.
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 - 10/22/2013 Page 37 / 198
Recommendation
City Administration recommends that the Council conduct a Public Hearing and approve
acquisition of the drainage easement sin Cooper Creek Estates Third Subdivision and
Copper Creek Estates Fourth Subdivision.
Sample Motion
Move to approve the acquisition of the drainage easments.
Grand Island Council Session - 10/22/2013 Page 38 / 198
Grand Island Council Session - 10/22/2013 Page 39 / 198
Grand Island Council Session - 10/22/2013 Page 40 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item F-1
#9456 - Consideration of Authorization to Issue 2013 Electric
Department Revenue Bonds
Staff Contact: Tim Luchsinger
Grand Island Council Session - 10/22/2013 Page 41 / 198
Council Agenda Memo
From:Timothy Luchsinger, Utilities Director
Meeting:October 22, 2013
Subject:2013 Electric Department Revenue Bonds
Item #’s:F-1
Presenter(s):Timothy Luchsinger, Utilities Director
Background
On December 21, 2011, EPA released the Mercury and Air Toxics Standards (MATS),
requiring the maximum achievable control technology for mercury and other hazardous
pollutants from electric generating units, with a compliance date of March, 2015,
although an additional one year for compliance may be granted by individual states.
To achieve long-term compliance for MATS, it was anticipated that the Department
would need to install a fabric filter, carbon injection system, and, depending on the
amount of reduction needed, either a dry sorbent injection or a dry scrubber at Platte
Generating Station, along with associated by-product removal systems and disposal sites,
in the next three to four years. It was estimated that these modifications would cost the
utility approximately $35 million and take 3 to 5 years for financing, design, and
construction. Although this equipment will also result in additional operating costs that
may affect rates, the City proceeded with refinancing of current electric bonds to reduce
rate impacts due to debt service of capital expenditures. Current plans are to complete
this installation during the last quarter of 2014 to coincide with a scheduled plant
maintenance outage, with system startup and testing to continue into the first quarter of
2015. This will provide a margin for the implementation of the system and minimize
plant downtime.
For large capital improvement projects of this type, the Utilities Department has
traditionally used the Design-Build approach with multiple contracts, where proposals are
solicited for a consulting engineer, who then proceeds with detailed design and
developing specifications for bids to acquire equipment and contractors to complete the
project. This type of approach can achieve more control of the details of the project, but
can also take more time to complete and final project costs are not known until the final
contract is awarded. A project approach being used more by utilities for capital projects is
the Engineer-Procure-Construct (EPC) method. Specifications are developed
emphasizing final system performance and operating parameters instead of technical
Grand Island Council Session - 10/22/2013 Page 42 / 198
features, and consortiums of engineers, suppliers, and construction contractors then team
together to provide bids for a total system package. The project is awarded to the lowest
compliant bid, normally with provisions of penalties for not meeting guarantees or
incentives for exceeding requirements. The EPC approach is recommended by the
Department for the air emission control equipment project as we do not have a preference
for the various air emission control technologies, and this method will allow for the
market to determine the most cost effective and timely implementation. Project costs will
also be known early and enable financing methods to be determined to minimize rate
impacts to customers.
Utilities and other entities performing EPC projects normally retain the services of an
Owner’s Engineer to develop the EPC specifications and provide third party project
administrative functions. On March 26, 2012, Kiewit Power Engineers was awarded the
contract for providing engineering services for this project. The services for the Owner’s
Engineer included the following.
A high level determination of emission reduction limits and system components.
Preparation of specifications for bids.
Evaluation of bids.
Assistance in air emission permitting with EPA and NDEQ.
Final system testing and determination of compliance with contract conditions.
In June, 2012, Kiewit completed a technical and economic evaluation of the two most
recognized processes suitable for use at Platte to achieve the MATS requirements, dry
sorbent injection (DSI) and a dry scrubber system. DSI processes are relatively new to
the electric utility industry and can provide a low capital cost solution to applications
requiring lower emission reduction rates. Dry scrubber systems are the current industry
standard for power plants to meet sulfur dioxide emission standards and have been in use
for over 20 years. Based on estimated capital and 20-year operating and maintenance
costs, the processes were evaluated to have similar life cycle costs. With a similar life
cycle cost, however, the potential for meeting future potential emission standards and the
established history of dry scrubber systems resulted in a recommendation of a dry
scrubber system for Platte. Department staff concurred with this recommendation and
directed Kiewit to proceed with detailed specifications to be issued for bid.
In order to provide a cost-effective solution to meet the MATS requirements, the
specifications were drafted on a performance basis. A performance basis specification
identifies the current conditions and the required end result, but not the specific method,
which allows the various emission control industry engineers, suppliers, and contractors
latitude to bid their best solution for our application. Included in the specification was a
spreadsheet that would be used to evaluate the low bidder that included the factors used
in the calculation of project capital financing and annual operating and maintenance costs
for use by the vendors in determining their best solution for the lowest overall project
cost. These specifications were issued for bid in accordance with City purchasing
procedures. On November 2, 2012, the following bids for the MATS Retrofit compliance
were received and on January 23, 2013, Council approved the award of the MATS
Grand Island Council Session - 10/22/2013 Page 43 / 198
Compliance Retrofit Project to AMEC for $41,189,331. As previously proposed to
Council, the capital cost of approximately $41.2 million for this project was to be funded
by bonding. In light of previously enacted federal environmental regulations, court-
imposed stays or reversals are possible with the MATS rule, therefore, to allow more
insight as to any litigation that could be pursued by interest groups, the recommendation
by the Department was that initial costs for this contract be funded using electric system
cash reserves until a level was reached that began to impact reserve minimum levels,
probably by the third or fourth quarter of 2013. Until the bonding was in place, our bond
underwriter, Ameritas, advised that the City should declare their intention to use bond
revenue to fund the capital improvements for the project. This would allow bond
proceeds to be used for costs of the project prior to the bonds being issued and the funds
are received. This declaration of intent to issue bonds was authorized by Council on
March 26, 2013, and included in the $41.2 million for the capital cost of the project plus
estimated bond issuance costs.
Discussion
AMEC has begun construction on the dry scrubber project and is currently performing
foundation activities. The Department has been making progress payments of
approximately $1.2 million per month and recommends that revenue bonds be issued at
this time. If bond proceeds are received in November, cash outlays to that time will be
approximately $8.3 million. Based on current cash reserves, financial projections were
performed to analyze financing requirements in relation to projected operating costs once
the dry scrubber system is operating. Instead of funding the entire capital cost with bond
proceeds, the Department recommends that approximately $5 million of cash reserves be
used for the capital funding, with the remaining balance and financing costs funded by
bond proceeds. This will reduce the debt service required, while maintaining an adequate
reserve margin to allow a determination of actual operating costs and any revisions that
may be required to the electric rates.
Although the project was originally analyzed over a twenty year life cycle, the
Department also recommends that the bonds be issued for a fifteen year maturity, based
on a payment schedule developed by Ameritas that provides for primarily interest
payments only during the first nine years, until the 2012 bond issue payments are
completed. The combination of utilizing cash reserves and the wrap around schedule will
provide for a total debt service that will be slightly less than that of the original debt
service prior to the refinancing last year, while limiting the financing to a moderate term.
The Department recommends approval of the ordinance authorizing the issuance of the
Electric System Revenue Bonds, Series 2013, in the amount of approximately
$40,890,000.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
Grand Island Council Session - 10/22/2013 Page 44 / 198
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
5.Recommendation
City Administration recommends that the Council authorize the issuance of the Electric
System Revenue Bonds, Series 2013.
Sample Motion
Move to authorize the issuance of the Electric System Revenue Bonds, Series 2013.
Grand Island Council Session - 10/22/2013 Page 45 / 198
G&B DRAFT
10.8.2013
____________, 2013
City of Grand Island, Nebraska
Grand Island, Nebraska
Ameritas Investment Corp.
Omaha, Nebraska
Re:$_________ City of Grand Island, Nebraska
Electric System Revenue Bonds, Series 2013
Ladies and Gentlemen:
We have acted as bond counsel to the City of Grand Island, Nebraska (the “Issuer”), in
connection with the issuance of the above-captioned bonds (the “Bonds”). In this capacity, we have
examined the law and the certified proceedings, certifications and other documents that we deem
necessary to render this opinion.
The Bonds are issued pursuant to Ordinance No. ______ adopted by the governing body of the
Issuer (the “Ordinance”). Capitalized terms used and not otherwise defined in this opinion have the
meanings assigned to those terms in the Ordinance.
Regarding questions of fact material to our opinion, we have relied on the certified proceedings
and other certifications of public officials and others furnished to us without undertaking to verify them
by independent investigation.
Based on and subject to the foregoing, we are of the opinion, under existing law, as follows:
1.The Issuer is validly existing as a political subdivision of the State of Nebraska (the
“State”) with the power to adopt the Ordinance, perform the agreements on its part contained therein, and
issue the Bonds.
2.The Bonds have been duly authorized, executed and delivered by the Issuer and are valid
and legally binding special obligations of the Issuer.
3.The Bonds are payable solely from the net income and revenues derived by the Issuer
from the operation of the Electric System, after providing for the costs of operation and maintenance
Grand Island Council Session - 10/22/2013 Page 46 / 198
City of Grand Island, Nebraska
Ameritas Investment Corp.
__________, 2013
Page 2
thereof. The Bonds do not constitute general obligations of the Issuer and do not constitute an
indebtedness of the Issuer within the meaning of any constitutional or statutory provision, limitation or
restriction. The taxing power of the Issuer is not pledged to the payment of the Bonds.
4.The Ordinance has been duly adopted by the governing body of the Issuer and constitutes
a valid and legally binding obligation of the Issuer enforceable against the Issuer. The Ordinance creates
a valid lien on the revenues and other funds pledged by the Ordinance for the security of the Bonds on a
parity with other bonds, if any, issued or to be issued as additional bonds under the Ordinance.
5.The interest on the Bonds (a) is excludable from gross income for federal income tax
purposes, (b) is exempt from income taxation by the State of Nebraska, and (c) is not an item of tax
preference for purposes of computing the federal alternative minimum tax imposed on individuals and
corporations, but is taken into account in determining adjusted current earnings for the purpose of
computing the alternative minimum tax imposed on certain corporations. The opinions set forth in this
paragraph are subject to the condition that the Issuer complies with all requirements of the Code that must
be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply
with all of these requirements. Failure to comply with certain of these requirements may cause the
interest on the Bonds to be included in gross income for federal and Nebraska income tax purposes
retroactive to the date of issuance of the Bonds. The Bonds have not been designated as “qualified tax-
exempt obligations” for purposes of Section 265(b)(3) of the Code.
We express no opinion regarding the accuracy, completeness or sufficiency of the Official
Statement or other offering material relating to the Bonds. Further, we express no opinion regarding the
perfection or priority of the lien on revenues or other funds pledged under the Ordinance or tax
consequences arising with respect to the Bonds other than as expressly set forth in this opinion.
The rights of the owners of the Bonds and the enforceability of the Bonds and the Ordinance may
be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
creditors’ rights generally and by equitable principles, whether considered at law or in equity.
This opinion is given as of its date, and we assume no obligation to revise or supplement this
opinion to reflect any facts or circumstances that may come to our attention or any changes in law that
may occur after the date of this opinion.
Very truly yours,
Grand Island Council Session - 10/22/2013 Page 47 / 198
PRESENTATION DRAFT
BOND PURCHASE AGREEMENT
$[PAR AMOUNT]THE CITY OF GRAND ISLAND, NEBRASKAELECTRIC SYSTEM REVENUE BONDS
SERIES 2013
[PRICING DATE], 2013
The City of Grand Island, Nebraska
Grand Island, Nebraska
Ladies and Gentlemen:
On the basis of the representations, warranties and covenants and upon the terms and conditions
contained in this Bond Purchase Agreement, the undersigned, Ameritas Investment Corp. (the
“Underwriter”), hereby offers to purchase $[PAR AMOUNT] aggregate principal amount of Electric
System Revenue Bonds, Series 2013 (the “Bonds”) to be issued by The City of Grand Island, Nebraska
(the “City”) under and pursuant to an ordinance, duly passed by the Council and approved by the Mayor
on October 22, 2013 (the “Ordinance”). Capitalized terms used herein shall have the meanings set forth
in the Ordinance unless some other meaning is plainly indicated.
This offer is made subject to acceptance of this Bond Purchase Agreement by the City on or
before 3:00 p.m., Central time, on [PRICING DATE], 2013.
Inasmuch as this purchase and sale represents a negotiated transaction, the City acknowledges
and agrees that: (i) the transaction contemplated by this Agreement is an arm’s length, commercial
transaction between the Issuer and the Underwriter in which the Underwriter is acting solely as a principal
and is not acting as a municipal advisor, financial advisor or fiduciary to the City; (ii) the Underwriter has
not assumed any advisory or fiduciary responsibility to the City with respect to the transaction
contemplated hereby and the discussions, undertakings and procedures leading thereto (irrespective of
whether the Underwriter has provided other services or is currently providing other services to the City on
other matters); (iii) the Underwriter is acting solely in its capacity as underwriter for its own account, (iv)
the only obligations the Underwriter has to the City with respect to the transaction contemplated hereby
expressly are set forth in this Agreement; and (v) the City has consulted its own legal, accounting, tax,
financial and other advisors, as applicable, to the extent it has deemed appropriate.
SECTION 1.CITY’S REPRESENTATIONS AND WARRANTIES
By acceptance hereof, the City hereby represents and warrants to the Underwriter that:
(a)The City is a city of the first class and political subdivision organized and existing under
the laws of the State of Nebraska.
(b)The City has complied with all provisions of the Constitution and the laws of the State of
Nebraska and has full power and authority to consummate all transactions contemplated by the Ordinance
and this Bond Purchase Agreement, and all other agreements relating thereto.
(c)The City has duly authorized by all necessary action to be taken by the City (1) the
adoption and performance of the Ordinance; (2) the execution, delivery and performance of this Bond
Grand Island Council Session - 10/22/2013 Page 48 / 198
Purchase Agreement, the Federal Tax Certificate, to be dated the Closing Date (the “Tax Certificate”),
executed and delivered by the City, the Continuing Disclosure Undertaking, to be dated the Closing Date
(the “Disclosure Undertaking”), executed and delivered by the City, and the Paying Agent and
Registrar’s Agreement, to be dated the Closing Date (the “Paying Agent Agreement”), between the City
and Wells Fargo Bank, National Association, Minneapolis, Minnesota, as paying agent and registrar; (3)
the approval of the Official Statement; (4) the execution, delivery and performance of any and all such
other agreements, certificates and documents as may be required to be executed, delivered and performed
by the City in order to carry out, give effect to and consummate the transactions contemplated by the
Ordinance, the Tax Certificate, the Disclosure Undertaking, the Paying Agent Agreement and this Bond
Purchase Agreement (collectively, the “Bond Documents”); and (5) the carrying out, giving effect to and
consummation of the transactions contemplated by the Bond Documents. Executed counterparts of the
Bond Documents and all such other agreements, certificates and documents specified herein will be
delivered to the Underwriter by the City at the Closing Time (as defined below).
(d)The Bond Documents, when executed and delivered by the City, will be the legal, valid
and binding obligations of the City enforceable in accordance with their terms, except to the extent that
enforcement thereof may be limited by any applicable bankruptcy, reorganization, insolvency,
moratorium or other law or laws affecting the enforcement of creditors’ rights generally or against entities
such as the City and further subject to the availability of equitable remedies.
(e)The Bonds have been duly authorized by the City, and when issued, delivered and paid
for as provided for herein and in the Ordinance, will have been duly executed, authenticated, issued and
delivered and will constitute valid and binding obligations of the City enforceable in accordance with
their terms and entitled to the benefits and security of the Ordinance (subject to any applicable
bankruptcy, reorganization, insolvency, moratorium or other law or laws affecting the enforcement of
creditors’ rights generally or against entities such as the City and further subject to the availability of
equitable remedies). The Bonds will not pledge the full faith and credit of the State or any political
subdivision thereof, including the City, nor shall they be secured by a lien against any of their respective
properties, except as provided for in the Ordinance. The Bonds shall be limited obligations of the City
payable solely out of the Net Revenues, and the Bonds shall not constitute an indebtedness of the City
within the meaning of any constitutional or statutory provision, limitation or restriction.
(f)The adoption of the Ordinance and the execution and delivery of the Bond Documents,
the Bonds and the Official Statement and compliance with the provisions thereof, will not conflict with or
constitute on the part of the City a violation or breach of, or a default under, any existing law, regulation,
court or administrative decree or order, or any agreement, ordinance, resolution, mortgage, lease or other
instrument to which it is subject or by which it is or may be bound.
(g)The City is not, or with the giving of notice or lapse of time or both would not be, in
violation of or in default under its Charter or any indenture, mortgage, deed of trust, loan agreement,
bonds or other agreement or instrument to which the City is a party or by which it is or may be bound,
except for violations and defaults which individually and in the aggregate are not material to the City and
will not be material to the holders of the Bonds. As of the Closing Time, no event will have occurred and
be continuing which with the lapse of time or the giving of notice, or both, would constitute an Event of
Default under the Ordinance or the Bonds.
(h)The information contained in the Preliminary Official Statement dated [POS DATE],
2013, as amended and supplemented by the Official Statement to be dated the date hereof, and in any
amendment or supplement thereto that may be authorized for use by the City with respect to the Bonds
(collectively, the “Official Statement”) as of its date, as of the date hereof, and as of the Closing Time,
will not contain any untrue statement of a material fact or omit to state a material fact necessary to make
2
Grand Island Council Session - 10/22/2013 Page 49 / 198
the statements made therein, in light of the circumstances under which they were made, not misleading
(except for the information under “TAX MATTERS” in the Official Statement).
(i)For the purpose of enabling the Underwriter to comply with the requirements of Rule
15c2-12 of the Securities and Exchange Commission, promulgated under the Securities Exchange Act of
1934, as amended (the “1934 Act”), the City, hereby deems the information regarding the City contained
in the Preliminary Official Statement to be “final” as of its date, except for the omission of such
information as is permitted by Rule 15c2-12(b)(1), such as offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings, identity
of the underwriters and other terms of the Bonds depending on such matters.
(j)The financial statements of the City for the fiscal year ended September 30, 2012, with
summarized financial information as of September 30, 2012, contained in the Official Statement, present
fairly and accurately the financial condition of the City as of the dates indicated and the results of its
operations for the periods specified, and such financial statements are prepared in conformity with
generally accepted accounting principles consistently applied in all material respects for the periods
involved.
(k)The City’s electric system (the “System”) has not, since September 30, 2012, incurred
any material liabilities and there has been no material adverse change in the condition of the System,
financial or otherwise, other than as set forth in the Official Statement.
(l)There is no action, suit, proceeding, inquiry or investigation at law or in equity or before
or by any court, public board or body pending or, to the knowledge of the City, threatened against or
affecting the City or the System (or, to its knowledge, any basis therefor) wherein an unfavorable
decision, ruling or finding would adversely affect the transactions contemplated hereby or by the
Ordinance or the validity of the Bonds, the Bond Documents or any agreement or instrument to which the
City is a party and which is used or contemplated for use in the consummation of the transactions
contemplated hereby or by the Ordinance.
(m)The City has not been notified of any listing or proposed listing by the Internal Revenue
Service to the effect that the City is a bond issuer whose arbitrage certifications may not be relied upon.
Any certificate signed by any of the authorized officials of the City and delivered to the
Underwriter in connection with the Closing shall be deemed a representation and warranty by the City to
the Underwriter as to the statements made therein.
SECTION 2.COVENANTS AND AGREEMENTS OF CITY
The City covenants and agrees with the Underwriter for the time period specified, and if no
period is specified, for so long as any of the Bonds remain outstanding, as follows:
(a)To cooperate with the Underwriter and its counsel in any reasonable endeavor to qualify
the Bonds for offering and sale under the securities or “Blue Sky” laws of such jurisdictions of the United
States as the Underwriter may reasonably request; provided that nothing contained herein shall require the
City to file written consents to suit or written consents to service of process in any jurisdiction in which
such consent may be required by law or regulation so that the Bonds may be offered or sold. The City
consents to the use of drafts of the Preliminary Official Statement, the Preliminary Official Statement and
drafts of the Official Statement prior to the availability of the Official Statement by the Underwriter in
obtaining such qualification. The Underwriter shall pay all expenses and costs (including legal,
registration and filing fees) incurred in connection therewith.
3
Grand Island Council Session - 10/22/2013 Page 50 / 198
(b)If, prior to the earlier of (1) 90 days after the “end of the underwriting period” (as defined
in Rule 15c2-12 under the 1934 Act) or (2) the time when the Official Statement is available to any
person from the Municipal Securities Rulemaking Board, but in no case less than 25 days following the
end of the underwriting period, any event shall occur relating to or affecting the City or the System, as a
result of which it is necessary to amend or supplement the Official Statement in order to make the
statements made therein, in the light of the circumstances existing when the Official Statement is
delivered to a purchaser, not materially misleading, or the Official Statement is required to be amended or
supplemented to comply with law, the City shall promptly prepare and furnish, at the expense of the City,
to the Underwriter and to the dealers (whose names and addresses the Underwriter will furnish to the
City) to which Bonds may have been sold by the Underwriter and to any other dealers upon request, such
amendments or supplements to the Official Statement as may be necessary so that the Official Statement,
as so amended or supplemented, does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made therein, in light of the circumstances existing when
the Official Statement is delivered to a purchaser, not misleading, or so that the Official Statement will
comply with law.
(c)Within seven business days after the date of this Bond Purchase Agreement or within
sufficient time to accompany any confirmation that requests payment from any customer of the
Underwriter, whichever is earlier, the City shall provide to the Underwriter sufficient copies of the
Official Statement to enable the Underwriter to comply with the requirements of Rule 15c2-12(b)(4)
under the 1934 Act, and with the requirements of Rule G-32 of the Municipal Securities Rulemaking
Board.
(d)From the date hereof until the Closing Time, the City shall furnish the Underwriter with a
copy of any proposed amendment or supplement to the Official Statement for review and shall not use
any such proposed amendment or supplement to which the Underwriter reasonably objects.
(e)The proceeds of the Bonds will be used as provided in the Ordinance and the Official
Statement, and neither such proceeds nor the System have been used or shall be used in a manner which
would jeopardize the tax status of the Bonds under the provisions of the Code, as long as any of the
Bonds are outstanding.
SECTION 3.PURCHASE, SALE AND DELIVERY OF THE BONDS
On the basis of the representations, warranties, covenants and agreements contained herein and in
the other agreements and documents referred to herein, and subject to the terms and conditions herein set
forth, at the Closing Time the Underwriter agrees to purchase from the City and the City agrees to sell to
the Underwriter the Bonds at a purchase price $[Purchase Price] (equal to the par amount of the Bonds,
[plus/less] net original issue [premium/discount] in the amount of $[OIP/OID] and less Underwriter’s
discount of $[Discount]). The Bonds shall be issued under, secured and subject to optional redemption as
provided in the Ordinance, and the Bonds be subject to mandatory sinking fund redemption, shall bear
such terms and shall mature and bear interest at the rates, all as set forth in Schedule 1 attached hereto.
Schedule 1 attached hereto shall constitute the “Designation” referred to in the Ordinance.
The Underwriter initially agrees to offer the Bonds to the public at the prices set forth on
Schedule 1 attached hereto, but may subsequently change such offering price; the Underwriter agrees to
notify the City of such changes, if such changes occur prior to the Closing Time, but failure so to notify
shall not invalidate such changes. The Underwriter may offer and sell the Bonds to certain dealers
(including dealers depositing the Bonds into investment trusts) at prices lower than the public offering
prices.
4
Grand Island Council Session - 10/22/2013 Page 51 / 198
Payment for the Bonds shall be made by federal wire transfer payable to the order of the City for
the account of the City, at 10:00 a.m., local time, on [CLOSING DATE], 2013, or such other place, time
or date as shall be mutually agreed upon by the City and the Underwriter. Upon such payment, the Bonds
shall be delivered and released upon the instructions of the Underwriter to The Depository Trust
Company, New York, New York. The date of such delivery and payment is herein called the “Closing
Date”, and the hour and date of such delivery and payment is herein called the “Closing Time”.
The delivery of the Bonds shall be made in definitive form, as fully registered bonds (in such
denominations as the Underwriter shall specify in writing at least 48 hours prior to the Closing Time)
duly executed and authenticated and bearing CUSIP numbers (provided neither the printing of a wrong
number on any Bond nor the failure to print a number thereon shall constitute cause to refuse delivery of
any Bond); provided, however, that the Bonds may be delivered in temporary form. If delivered in
definitive form, the Bonds shall be available for examination and packaging by the Underwriter at least
24 hours prior to the Closing Time.
SECTION 4. USE OF OFFICIAL STATEMENT
The City hereby ratifies and confirms the Underwriter’s use of the Preliminary Official
Statement; and the City authorizes, and will make available, the Official Statement for the use by the
Underwriter in connection with the sale of the Bonds.
SECTION 5. CONDITIONS TO THE UNDERWRITER’S OBLIGATIONS
The Underwriter’s obligations hereunder shall be subject to the due performance by the City of its
obligations and agreements to be performed hereunder at or prior to the Closing Time and to the accuracy
and completeness of the City’s representations and warranties contained herein, as of the date hereof and
as of the Closing Time, and are also subject to the following conditions:
(a)The Bonds and the Ordinance shall have been duly authorized, executed and delivered in
the form heretofore approved by the Underwriter with only such changes therein as shall be mutually
agreed upon by the Underwriter and the City.
(b)At the Closing Time, the Underwriter(s) shall receive:
(1)The opinion in form and substance satisfactory to the Underwriter, dated as of the
Closing Date, of Gilmore & Bell, P.C., Bond Counsel, relating to the valid authorization and
issuance of the Bonds, the exclusion of interest on the Series 2013 Bonds from gross income for
federal income tax purposes the due authorization and adoption of the Ordinance by the
governing body of the City and certain other matters;
(2)Certified copies of resolutions or ordinances, as appropriate, of the City
authorizing or approving, as appropriate, the execution and delivery of the Official Statement, this
Bond Purchase Agreement, the Ordinance and the Bonds, together with certificates dated the
Closing Date to the effect that such resolutions or ordinances have not been modified, amended or
repealed.
(3)A certificate of the City, satisfactory in form and substance to the Underwriter(s),
dated as of the Closing Date, to the effect that (A) since the date of the Preliminary Official
Statement there has not been any material adverse change in the business, properties, financial
condition or results of operations of the System, whether or not arising from transactions in the
5
Grand Island Council Session - 10/22/2013 Page 52 / 198
ordinary course of business, from that set forth in the Preliminary Official Statement, and except
in the ordinary course of business or as set forth in the Preliminary Official Statement, the City
has not incurred any material liability with respect to the System; (B) there is no action, suit,
proceeding or, to the knowledge of the City, any inquiry or investigation at law or in equity or
before or by any public board or body pending or, to the knowledge of the City, threatened
against or affecting the City or the System, its officers or its property or, to the best of the
knowledge of the City, any basis therefor, wherein an unfavorable decision, ruling or finding
would adversely affect the System, the transactions contemplated hereby or by the Ordinance or
the Official Statement or the validity or enforceability of the Bonds or the Bond Purchase
Agreement, which are not disclosed in the Official Statement; (C) to the knowledge of the City,
the information contained in the Official Statement does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made therein, in
light of the circumstances under which they were made, not misleading (except for the
information under “TAX MATTERS” and “THE SERIES 2013 BONDS – Global Book-Entry
Bonds” in the Official Statement); (D) the City has duly authorized, by all necessary action, the
execution, delivery and due performance by the City of this Bond Purchase Agreement; and (E)
the representations and warranties of the City set forth herein were accurate and complete as of
the date hereof and are accurate and complete as of the Closing Time.
(4)A completed form 8038-G (Information Return for Tax-Exempt Governmental
Bond Issuers);
(5)Evidence satisfactory to the Underwriter that the Bonds have been rated “[__]”
by Standard & Poor’s Ratings Services and “[__]” by Moody’s Investors Service;
(6)Such additional certificates, legal and other documents, listed on a closing
agenda to be approved by Bond Counsel and the Underwriter, as the Underwriter may reasonably
request to evidence performance or compliance with the provisions hereof and the transactions
contemplated hereby and by the Ordinance, or as Bond Counsel shall require in order to render its
opinion, all such certificates and other documents to be satisfactory in form and substance to the
Underwriter.
SECTION 6.CONDITIONS TO THE CITY’S OBLIGATIONS
The obligations of the City hereunder are subject to the Underwriter’s performance of its
obligations hereunder.
SECTION 7.THE UNDERWRITER’S RIGHT TO CANCEL
The Underwriter shall have the right to cancel its obligations hereunder to purchase the Bonds
(which cancellation shall not constitute a default for purposes of Section 3 hereof) by notifying the City
in writing of its election to make such cancellation prior to the Closing Time, if at any time prior to the
Closing Time:
(a)The Preliminary Official Statement deemed by the City to be “final” pursuant to Section
1(i) is thereafter amended or supplemented in a manner that may, in the reasonable judgment of the
Underwriter, have a material adverse effect on the marketability of the Bonds.
(b)A committee of the House of Representatives or the Senate of the Congress of the United
States shall have pending before it legislation which, if enacted in its form as introduced or as amended,
would have the purpose or effect of imposing federal income taxation upon revenues or other income of
6
Grand Island Council Session - 10/22/2013 Page 53 / 198
the general character to be derived by the City or by any similar body or upon interest received on
obligations of the general character of the Bonds, or the Bonds, which, in the Underwriter’s opinion,
materially adversely affects the market price of the Bonds;
(c)A tentative decision with respect to legislation shall be reached by a committee of the
House of Representatives or the Senate of the Congress of the United States, or legislation shall be
favorably reported by such a committee or be introduced, by amendment or otherwise, in or be passed by
the House of Representatives or the Senate, or be recommended to the Congress of the United States for
passage by the President of the United States, or be enacted by the Congress of the United States, or a
decision by a court established under Article III of the Constitution of the United States or the Tax Court
of the United States shall be rendered, or a ruling, regulation or order of the Treasury Department of the
United States or the Internal Revenue Service shall be made or proposed having the purpose or effect of
imposing federal income taxation, or any other event shall have occurred which results in the imposition
of federal income taxation, upon revenues or other income of the general character to be derived by the
City or by any similar body or upon interest received on obligations of the general character of the Bonds,
or the Bonds, which, in the Underwriter’s opinion, materially and adversely affects the market price of the
Bonds;
(d)Any legislation, ordinance, rule or regulation shall be introduced in or be enacted by the
General Assembly of the State of Nebraska or by any other governmental body, department or agency of
the State of Nebraska, or a decision by any court of competent jurisdiction within the State of Nebraska
shall be rendered which, in the Underwriter’s opinion, materially and adversely affects the market price of
the Bonds, or litigation challenging the law under which the Bonds are to be issued shall be filed in any
court in the State of Nebraska;
(e)A stop order, ruling, regulation or official statement by, or on behalf of, the Securities
and Exchange Commission or any other governmental agency having jurisdiction of the subject matter
shall be issued or made to the effect that the issuance, offering or sale of obligations of the general
character of the Bonds, or the issuance, offering or sale of the Bonds, including all underlying obligations,
as contemplated hereby or by the Official Statement, is in violation or would be in violation of any
provision of the Securities Act of 1933, as amended (the “1933 Act”), the 1934 Act or the Trust Indenture
Act of 1939, as amended;
(f)Legislation shall be enacted by the Congress of the United States of America, or a
decision by a court of the United States of America shall be rendered, to the effect that obligations of the
general character of the Bonds, or the Bonds, including all the underlying obligations, are not exempt
from registration under or from other requirements of the 1933 Act or the 1934 Act;
(g)Any event shall have occurred, or information become known, which, in the
Underwriter’s opinion, makes untrue in any material respect any statement or information contained in
the Preliminary Official Statement as originally circulated, or has the effect that the Preliminary Official
Statement as originally circulated contains an untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading;
(h)Additional material restrictions not in force as of the date hereof shall have been imposed
upon trading in securities generally by any governmental authority or by any national securities exchange;
(i)The New York Stock Exchange or any other national securities exchange, or any
governmental authority, shall impose, as to the Bonds or obligations of the general character of the
7
Grand Island Council Session - 10/22/2013 Page 54 / 198
Bonds, any material restrictions not now in force, or increase materially those now in force, with respect
to the extension of credit by, or the charge to the net capital requirements of, the Underwriter;
(j)Any general banking moratorium shall have been established by federal, New York or
Nebraska authorities;
(k)A material default has occurred with respect to the obligations of, or proceedings have
been instituted under the Federal bankruptcy laws or any similar state laws by or against, any state of the
United States or any city located in the United States having a population in excess of one million persons
or any entity issuing obligations on behalf of such a city or state which, in the Underwriter’s opinion,
materially adversely affects the market price of the Bonds;
(l)Any proceeding shall be pending or threatened by the Securities and Exchange
Commission against the City or; or
(m)A war involving the United States shall have been declared, or any conflict involving the
armed forces of the United States shall have escalated, or any other national emergency relating to the
effective operation of government or the financial community shall have occurred, which, in the
Underwriter’s opinion, materially adversely affects the market price of the Bonds.
SECTION 8. INDEMNIFICATION
The City agrees, to the extent legally permitted, to indemnify and hold harmless the Underwriter,
any director, officer, employee or controlling person of the Underwriter within the meaning of Section 15
of the 1933 Act (collectively, the “Indemnified Parties”), against any and all losses, claims, damages,
liabilities or expenses whatsoever caused by any untrue statements or misleading statement or allegedly
misleading statement of a material fact contained in the Official Statement or caused by any omission or
alleged omission from the Official Statement of any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading;
provided that the City shall have no indemnification obligation with respect to any statement or omission
in the information contained in the Official Statement under the heading “Underwriting.”
In case any action shall be brought against one or more of the Indemnified Parties based upon the
Official Statement and in respect of which indemnity may be sought against the City, the Indemnified
Parties shall promptly notify the City in writing and the City shall promptly assume the defense thereof,
including the employment of counsel, the payment of all expenses and the right to negotiate and consent
to settlement. Any one or more of the Indemnified Parties shall have the right to employ separate counsel
in any such action and to participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or Indemnified Parties unless employment of such
counsel has been specifically authorized by the City. The City shall not be liable for any settlement of
any such action effected without its consent by any of the Indemnified Parties, but if settled with the
consent of the City or if there be a final judgment for the plaintiff in any such action against the City or
any of the Indemnified Parties, with or without the consent of the City, the City agrees to indemnify and
hold harmless the Indemnified Parties to the extent provided herein.
If a claim for indemnification under this Section is determined to be unenforceable by a final
judgment of a court of competent jurisdiction, then the City shall contribute to the aggregate losses,
claims, damages or liabilities to which the Underwriter or its officers, directors, agents, employees or
controlling persons may be subject in such amount as is appropriate to reflect the relative benefits
received by the City, on the one hand, and the Underwriter, on the other, and the relative faults of the City
8
Grand Island Council Session - 10/22/2013 Page 55 / 198
and the person seeking contribution. The provisions of this Section shall survive the delivery of the
Bonds hereunder.
SECTION 9.PAYMENT OF EXPENSES
Whether or not the Bonds are sold by the City to the Underwriter (unless such sale be prevented
at the Closing Time by the Underwriter’s default), the Underwriter shall be under no obligation to pay any
expenses incident to the performance of the obligations of the City hereunder. If the Bonds are sold by
the City to the Underwriter, the Underwriter agrees to pay all costs incident to the underwriting and sale
of the Bonds including the cost of printing of the Official Statement, DTC charges and CUSIP charges.
The City will pay fees of Bond Counsel, rating agency fees, bond registrar and paying agent costs,
publication costs, the fees and costs of the City Attorney, if any, and any other costs incurred by the City.
SECTION 10.NOTICE
Any notice or other communication to be given under this Bond Purchase Agreement may be
given by mailing or delivering the same in writing to the applicable person, as follows:
(a)If to the City, PO Box 1968, 100 East First Street, Grand Island, Nebraska 68802,
Attention: Finance Director.
(b)If to the Underwriter, Ameritas Investment Corp., 440 Regency Parkway Dr., Ste. 222,
Omaha, Nebraska, 68114, Attention: Bruce Lefler.
SECTION 11.APPLICABLE LAW: NONASSIGNABILITY
This Bond Purchase Agreement shall be governed by the laws of the State of Nebraska. This
Bond Purchase Agreement shall not be assigned.
SECTION 12.ELECTRONIC TRANSMISSION; EXECUTION OF COUNTERPARTS
This Bond Purchase Agreement may be executed by electronic transmission and in several
counterparts, each of which shall be regarded as an original and all of which shall constitute one and the
same document.
SECTION 13.RIGHTS HEREUNDER
This Bond Purchase Agreement is made for the benefit of the City and the Underwriter and no
other person including any purchaser of the Bonds shall acquire or have any rights hereunder or by virtue
hereof.
9
Grand Island Council Session - 10/22/2013 Page 56 / 198
SECTION 14.EFFECTIVE DATE
This Bond Purchase Agreement shall become effective upon acceptance hereof by the City.
Upon your acceptance of the offer, the foregoing agreement will be binding upon you and the
Underwriter. Please acknowledge your agreement with the foregoing by executing the enclosed copy of
this Bond Purchase Agreement prior to the date and time specified on page 1 hereof and returning it to the
undersigned.
Very truly yours,
AMERITAS INVESTMENT CORP.
By:
Title:
Accepted and agreed to as of
the date first above written.
THE CITY OF GRAND ISLAND, NEBRASKA
By:
Mayor
10
Grand Island Council Session - 10/22/2013 Page 57 / 198
SCHEDULE 1
TERMS OF THE BONDS
$[PAR AMOUNT]
The City of Grand Island, Nebraska
Electric System Revenue Bonds
Series 2013
Dated: [CLOSING DATE], 2013
[Insert Maturity Schedule from Final Numbers]
[Redemption Provisions]
[Mandatory Sinking Fund Redemption. The Bonds maturing ________, 20__ shall be subject to
mandatory sinking fund redemption at a redemption price equal to 100% of the principal amount thereof
and accrued interest to the redemption date of _______ of the years, and in the principal amounts, as
follows:
Redemption Date
of the Year Principal Amount
20__$
20__
20__
20__
20__*
*Final Maturity
The Bonds maturing __________, 20__ shall be subject to mandatory sinking fund redemption at
a redemption price equal to 100% of the principal amount thereof and accrued interest to the redemption
date of ___________ of the years, and in the principal amounts, as follows:
Redemption Date
of the Year Principal Amount
20__$
20__
20__
20__
20__*
*Final Maturity]
[Confirm Wells Fargo as PA&R]
[Confirm Interest Payment Dates]
[Confirm Record date]
11
Grand Island Council Session - 10/22/2013 Page 58 / 198
ORDINANCE NO. 9456
AN ORDINANCE AUTHORIZING THE ISSUANCE OF ELECTRIC SYSTEM REVENUE
BONDS, SERIES 2013, OF THE CITY OF GRAND ISLAND, NEBRASKA, IN THE
AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED FORTY-SEVEN MILLION
DOLLARS ($47,000,000) FOR THE PURPOSE OF PAYING THE COSTS OF IMPROVING,
EXTENDING AND EQUIPPING THE CITY’S ELECTRIC LIGHT AND POWER PLANT AND
ELECTRIC DISTRIBUTION SYSTEM; DIRECTING THE APPLICATION OF THE PROCEEDS
OF SAID BONDS; PRESCRIBING THE FORM, CERTAIN TERMS AND DETAILS OF SAID
BONDS; AUTHORIZING OFFICERS OF THE CITY TO APPROVE CERTAIN TERMS OF
SAID BONDS; AUTHORIZING THE SALE OF THE BONDS TO THE UNDERWRITER;
PLEDGING AND HYPOTHECATING THE REVENUE AND EARNINGS OF THE ELECTRIC
LIGHT AND POWER PLANT AND ELECTRIC DISTRIBUTION SYSTEM OF SAID CITY FOR
THE PAYMENT OF SAID BONDS AND INTEREST THEREON; PROVIDING FOR THE
COLLECTION, SEGREGATION AND APPLICATION OF THE REVENUES OF SAID PLANT
AND SYSTEM; ENTERING INTO A CONTRACT ON BEHALF OF THE CITY WITH THE
HOLDERS OF SAID BONDS; AND PROVIDING FOR PUBLICATION OF THIS ORDINANCE
IN PAMPHLET FORM.
BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF GRAND ISLAND,
NEBRASKA:
Section 1. Findings and Determinations. The Mayor and Council of the City of Grand Island hereby find
and determine:
(a) The City owns and operates its own electric light and power plant and electric
distribution system (the “Electric System”, but hereinafter more specifically defined) which represents
a revenue-producing undertaking of the City. References herein to the Electric System shall include
all additions and improvements thereto hereafter constructed or acquired by the City.
(b) The City currently has outstanding the following indebtedness payable from the
revenues of the Electric System:
Electric System Revenue Refunding Bonds, Series 2012, (the “Outstanding Parity
Bonds”) issued pursuant to Ordinance No. 9369 passed and approved on February
28, 2012, (the “2012 Ordinance”) of which there remain outstanding under the
terms of the 2012 Ordinance bonds in the principal amount of $15,935,000.
(c) The City has no bonds outstanding which are secured by the Revenues of the Electric
System, other than the Outstanding Parity Bonds.
(d) It is necessary and advisable for the City to issue and sell its revenue bonds in the
principal amount of not to exceed $47,000,000 to provide funds for Costs of Construction.
(e) The City will comply with the provisions of Section 14 of the 2012 Ordinance for the
issuance of the 2013 Bonds as “Additional Bonds” and the security of the 2013 Bonds on a parity
with the Outstanding Parity Bonds thereunder. Prior to the issuance of the 2013 Bonds, an
Authorized Officer (as defined in Section 3 hereof) shall certify that the City has met such
requirements.
(f) Upon the issuance of the 2013 Bonds herein authorized and after the application of funds
of the City as herein directed, the Outstanding Parity Bonds and the 2013 Bonds will be the only
outstanding bonds of the City for which the Revenues of the Electric System have been pledged and
the 2013 Bonds herein authorized and the Outstanding Parity Bonds shall constitute a first and prior
lien upon such Revenues.
G&B DRAFT
10.18.2013
Grand Island Council Session - 10/22/2013 Page 59 / 198
ORDINANCE NO. 9456 (Cont.)
Section 2. Definitions of Terms. In addition to the definitions provided in parentheses elsewhere in this
Ordinance, the following definitions of terms shall apply; unless the context shall clearly indicate otherwise or may
otherwise require, the words and terms defined in this Section 2 shall, for all purposes of this Ordinance and of any
ordinance or resolution amendatory hereof or supplemental hereto and of any certificate, opinion, order, direction,
instrument or document herein or therein mentioned, have the respective meanings specified in this section, and such
definitions shall be equally applicable to both the singular and plural forms of any word or term defined and vice versa.
(a)“Additional Bonds” shall mean any Bonds authorized and issued pursuant to Section 14 of
this Ordinance, payable from Revenues pari passu with the 2013 Bonds and the Outstanding Parity Bonds.
(b)“Average Interest Rate” when used with reference to any Bonds shall mean the aggregate
amount of interest payable on such Bonds from their date to the date of maturity thereof, either at their stated
maturity, or in accordance with any schedule of mandatory sinking fund installments provided therefor, divided
by the sum of the bond years of such Bonds (the bond years with respect to each $1,000 principal amount of
Bonds being the number of years from the date thereof to the maturity thereof, either at their stated maturity or
in accordance with any schedule of mandatory sinking fund installments provided therefor), expressed as a
percentage, without regard to the discount or premium, if any, on the principal amount of such Bonds specified
in the purchase price for said Bonds paid to the City by the initial purchasers thereof.
(c)“Bond” or “Bonds” shall mean any bond, some of the bonds or all of the bonds at any time
Outstanding issued under and pursuant to the 2012 Ordinance and this Ordinance, including the 2013 Bonds,
the Outstanding Parity Bonds and any Additional Bonds.
(d)“2013 Bonds” shall mean the Electric System Revenue Bonds, Series 2013, authorized
pursuant to Section 3 of this Ordinance.
(e)“Bond Account” shall mean the Electric System Revenue Bond Account created by Section
12 of this Ordinance.
(f)“Bondholder” or “holder of a Bond” or “holder” or “owner” or “registered owner” shall
mean any person who shall be the registered owner of any Bond or such person's duly authorized attorney in
fact, representative or assigns.
(g)“Capital Improvement Account” shall mean the Capital Improvement Account created by
Section 12 of this Ordinance.
(h)“Construction Engineer” when used with reference to a Facility shall mean the design or
construction engineer or engineering firm or corporation at the time retained by the City pursuant to Section 16
of this Ordinance to perform the acts and carry out the duties provided for such Construction Engineer in this
Ordinance.
(i)“Consulting Engineer” shall mean the engineer or engineering firm or corporation retained
by the City from time to time pursuant to Section 16 hereof to perform the acts and carry out the duties
provided for such Consulting Engineer in this Ordinance.
(j)“Costs of Construction” shall mean all costs paid or incurred by the City in connection with
acquiring, constructing, reconstructing, improving, extending, equipping and furnishing the Electric System,
including, without limiting the generality of the foregoing, paying or reimbursing the cost of surveys,
investigations, engineering and other fees and expenses properly incurred therefor; obligations incurred for
labor and materials and to contractors, builders and materialmen in connection therewith; the cost of machinery
and equipment; paying the cost of restoring, or relocating property either damaged or destroyed in connection
Grand Island Council Session - 10/22/2013 Page 60 / 198
ORDINANCE NO. 9456 (Cont.)
with acquiring, constructing, reconstructing, improving, extending, equipping and furnishing the Electric
System, or of removing and relocating structures and clearing lands; the cost of acquiring by purchase or
condemnation such lands, property, rights, rights of way, franchises, easements or other interests as may be
deemed necessary or convenient by the City for acquiring, constructing, reconstructing, improving, extending,
equipping and furnishing the Electric System; paying the interest on the series or series of Bonds issued to pay
said Costs of Construction, and until and not later than six months after the Date of Commercial Operation of
the Facility being acquired, constructed, reconstructed, improved, extended, equipped or furnished; paying into
the Bond Account for credit to any reserve sub-account therein from the proceeds of said Bonds all or a portion
of the amount or amounts required to make the amount therein equal to the reserve account requirement for
such reserve sub-account; the cost of engineering services rendered in connection with acquiring, constructing,
reconstructing, improving, extending, equipping and furnishing the Electric System and the issuance of Bonds
therefor; paying or reimbursing the City or any fund for expenses of the City incident and properly allocable to
acquiring, constructing, reconstructing, improving, extending, equipping and furnishing the Electric System and
placing the same in operation; paying legal, financing and accounting expenses and fees, costs of printing and
of preparing and issuing the Bonds therefor, and all other items of expenses incident and properly allocable to
acquiring, constructing, reconstructing, improving, extending, equipping and furnishing the Electric System and
placing the same in operation, including allowances for working capital required to place in operation the
Facility being acquired, constructed, reconstructed, improved, extended, equipped or furnished.
(k)“Date of Commercial Operation” and words of like import when used with reference to a
Facility paid for out of the proceeds of Bonds shall mean the date upon which such Facility is first ready for
normal continued operation as determined by the Construction Engineer thereof, or, if there be no Construction
Engineer for such Facility, by the Consulting Engineer.
(l)“Debt Service Sub-account” shall mean the Debt Service Sub-account in the Bond Account
created by Section 12 of this Ordinance.
(m)“Debt Service Requirement” shall mean with respect to the 2013 Bonds, the Outstanding
Parity Bonds or any series of Additional Bonds the total as of any particular date of computation and for any
particular Fiscal Year or period of the amounts required pursuant to the provisions of Section 13 hereof to be
paid or set aside during such year into the Debt Service Sub-account created by Section 12 in the Bond Account
to provide for the retirement of, and payment of interest on, such Bonds, less the amount of such interest for
which payment is provided from the proceeds of sale of Bonds or from sources other than Revenues.
(n)“Electric System Fund” shall mean the “Electric System Fund” created by Section 12 of this
Ordinance.
(o)“Electric System” shall mean all properties and assets, real and personal and tangible and
intangible, of the City, now or hereafter existing, used for or pertaining to the generation, transmission and
distribution and sale of electric power and energy. Without limiting the generality of the foregoing, the term
“Electric System” shall include (i) all Facilities owned by the City on the date of passage of this Ordinance; (ii)
all Facilities acquired or constructed by the City after the passage of this Ordinance; and (iii) all additions,
extensions, enlargements and improvements hereafter made to any of the assets or properties referred to in
clauses (i) and (ii) preceding in this definition; provided that, where the City is a co-owner with another person
of an asset or property, only the City's ownership share of such asset or property, or of any addition, extension
and improvement of the asset or property, so co-owned shall be included in the Electric System hereunder;
provided further, that the Electric System hereunder shall not include any facilities for the generation,
transmission and distribution of electric power and energy constructed or acquired by the City as a separate
utility system with the proceeds of sale of bonds or other evidences of indebtedness (other than Bonds) which
shall be payable solely from the revenues or other income derived from the ownership or operation of such
separate utility system.
(p)“Facility” or “Facilities” shall mean all properties and assets of the City used for the
generation, transmission and distribution and sale of electric power and energy. Without limiting the generality
of the foregoing, the term “Facility” shall mean and include (i) generating facilities and related transmission,
fuel and water facilities, including the City's undivided co-ownership share in any such facility owned in part by
Grand Island Council Session - 10/22/2013 Page 61 / 198
ORDINANCE NO. 9456 (Cont.)
the City and in part by another person, firm, corporation or other entity; (ii) transmission facilities used to
transmit electric power and energy to the distribution facilities included in the Electric System or used to
connect with generating plants and stations or used to connect with other such transmission lines; (iii)
distribution facilities used to distribute electric power and energy to the ultimate consumers thereof; (iv) related
fuel or water resources or transportation facilities of or pertaining to the generation and related transmission of
power and energy; and (v) initial working capital or initial fuel or supply reserves or increases in such reserves;
provided that the City’s membership or participation under any Interlocal Agreement, and any related residual
rights thereunder, shall not be included in the definition of “Facility” or “Facilities”.
(q)“Fiscal Year” shall mean the fiscal year of the Electric System as established from time to
time.
(r)“Government Obligations” shall mean direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of America.
(s)“Independent Accountant” shall mean the firm of independent certified public accountants
retained by the City pursuant to Section 16 hereof.
(t)“Interlocal Agreement” shall mean any agreement entered into for the provision of power to
parties under any such agreement, including for the ownership of power generating facilities, pursuant to the
Nebraska Interlocal Cooperation Act, the Nebraska Joint Public Agency Act, the Nebraska Municipal
Cooperative Financing Act or pursuant to any other similar statutory provision or Act under Nebraska law.
(u)“Investment Securities” shall mean any of the following which at the time are legal
investments under the laws of the State of Nebraska for the moneys held hereunder then proposed to be
invested therein: :
(i)Government Obligations;
(ii)bonds, notes or other obligations of any state of the United States or any
political subdivision of any state, which at the time of their purchase are rated in either of the two
highest rating categories by a nationally recognized Rating Agency;
(iii)certificates of deposit or time or demand deposits constituting direct obligations
of any bank, bank holding company, savings and loan association or trust company organized
under the laws of the United States or any state thereof (including the Trustee or any of its
affiliates), except that investments may be made only in certificates of deposit or time or demand
deposits which are:
(1)insured by the Bank Insurance Fund or the Savings Association
Insurance Fund of the Federal Deposit Insurance Corporation, or any other similar United
States Government deposit insurance program then in existence;
(2)continuously and fully secured by Government Obligations, which have
a market value, exclusive of accrued interest, at all times at least equal to the principal
amount of such certificates of deposit or time or demand deposits; or
(3)issued by a bank, bank holding company, savings and loan association
or trust company organized under the laws of the United States or any state thereof
(including the Trustee or any of its affiliates) whose outstanding unsecured long-term
debt is rated at the time of issuance in either of the two highest rating categories by a
nationally recognized Rating Agency;
(iv)repurchase agreements with any bank, bank holding company, savings and loan
association, trust company or other financial institution organized under the laws of the United
States or any state thereof (including the Trustee or any of its affiliates), that are continuously and
Grand Island Council Session - 10/22/2013 Page 62 / 198
ORDINANCE NO. 9456 (Cont.)
fully secured by Government Obligations and which have a market value, exclusive of accrued
interest, at all times at least equal to the principal amount of such repurchase agreements, provided
that each such repurchase agreement conforms to current industry standards as to form and time, is
in commercially reasonable form, is for a commercially reasonable period, results in transfer of
legal title to identified Government Obligations which are segregated in a custodial or trust
account for the benefit of the Trustee, and further provided that Government Obligations acquired
pursuant to such repurchase agreements shall be valued at the lower of the then current market
value thereof or the repurchase price thereof set forth in the repurchase agreement;
(v)investment agreements constituting an obligation of a bank, bank holding
company, savings and loan association, trust company, insurance company or other financial
institution whose outstanding unsecured long-term debt is rated at the time of such agreement in
either of the two highest rating categories by a nationally recognized Rating Agency;
(vi)short term discount obligations of the Federal National Mortgage Association
and the Government National Mortgage Association; and
(vii)money market mutual funds (1) that invest in Government Obligations or that
are registered with the U.S. Securities and Exchange Commission, meeting the requirements of
Rule 2a-7 under the Investment Company Act of 1940, as amended, and (2) that are rated in either
of the two highest categories by a nationally recognized Rating Agency.
(v)“Net Receipts” shall mean Operating Revenues less Operating Expenses.
(w)“Operating Expenses” shall mean the costs and expenses of operating and maintaining the
Electric System, including, without limiting the generality of the foregoing, (i) all expenses includable in the
operation and maintenance expense accounts according to the Uniform System of Accounts, exclusive of
depreciation and amortization of property values or property losses and advance fuel payments if the same shall
then be includable in the operation and maintenance expense accounts according to the Uniform System of
Accounts, (ii) to the extent not included in the preceding clause, the City's share of the Operating Expenses (as
heretofore defined in this subparagraph) of any electric plants and properties co-owned with others, provided
that, whether or not includable in operation and maintenance expense accounts according to the Uniform
System of Accounts, there shall be included in “Operating Expenses” all amounts required to be paid by the
City under any contract for the purchase of power from any supplier of power (including the Omaha Public
Power District and the Public Power Generation Agency) with which the City has or may have long term power
purchase contracts.
(x)“Operating Revenues” shall mean Revenues less (i) insurance proceeds or condemnation
awards, and (ii) any other receipt constituting Revenues hereunder which would not constitute “Utility
Operating Income” as determined in accordance with the Uniform System of Accounts, provided, however that
for purposes of this Ordinance, anything in the Uniform System of Accounts to the contrary notwithstanding,
there shall not be excluded from Operating Revenues the items described in (ii) and (iii) of the definition of
Revenues subject, however, to the proviso appearing at the end of such definition.
(y)“Operation and Maintenance Account” shall mean the “Operation and Maintenance
Account” created by Section 12 of this Ordinance.
(z)“Ordinance,” “this Ordinance” or “the Ordinance” shall mean this Ordinance as the same
may be amended and supplemented from time to time, and unless the context shall clearly indicate otherwise,
shall include all Series Ordinances and Supplemental Ordinances.
(aa)“Outstanding” when used with reference to Bonds shall mean, as of any date, Bonds
theretofore or thereupon issued pursuant to this Ordinance, except:
(i)Any Bonds cancelled by the Trustee or paid at or prior to such date;
Grand Island Council Session - 10/22/2013 Page 63 / 198
ORDINANCE NO. 9456 (Cont.)
(ii)Bonds in lieu of or in substitution for which other Bonds shall have been delivered
pursuant to this Ordinance; and
(iii)Bonds fully discharged and satisfied as provided in Section 26 of this Ordinance.
(bb)“Paying Agent” or “Paying Agent and Registrar” shall mean the Trustee as paying agent for
each series of Bonds, and its successors, if any, as such paying agent.
(cc)“Program of Rate Changes” shall mean a schedule of rate changes set forth in, or adopted by
the City in an ordinance or resolution acknowledging the intent of the City to effect the rate changes specified
therein at the times specified therein; provided, that (i) such schedule need not reflect changes in rates of partic-
ular classes of customers of the Electric System (such as residential or commercial), but may simply set forth an
acknowledgment or commitment to change rates so that by the times specified in such schedule percentage
changes in Revenues will be accomplished; and (ii) such changes need not be imposed or become effective to
the extent that the Director of Utility Operations (or other board, department or officer administering the
Electric System) advises the City, based on a report of the Consulting Engineer, that such changes in the rates
are not required to meet the provisions of Section 14 hereof, and, if any Additional Bonds are required to pay a
portion of the Costs of Construction of any Facility for which Bonds are being or have been issued, to produce
the debt service coverage which would then be required for the issuance of Additional Bonds pursuant to
Section 14 hereof.
(dd)“Series 2013 Reserve Sub-Account” shall mean the Series 2013 Reserve Sub-Account in the
Bond Account created by Section 12 of this Ordinance, which shall be held separate and apart from all other
reserve funds or accounts and shall secure only the payments of principal and interest on the 2013 Bonds.
(ee)“Series 2013 Reserve Requirement” shall mean an amount no greater than the least of (a)
10% of the original principal amount of the 2013 Bonds, (b) the maximum annual debt service on the 2013
Bonds, and (c) 125% of the average annual debt service on the Bonds, as shall be more particularly determined
in the Designation; provided, however, that if the Trustee shall receive an opinion from Recognized Bond
Counsel to the effect that the Series 2013 Reserve Requirement for the Bonds must be reduced in order that the
amounts on deposit in the Series 2013 Reserve Sub-Account may continue to be invested without yield
restriction under the Code, the Series 2013 Reserve Requirement shall be reduced in conformity with said
opinion.
(ff)“Revenues” shall mean and include all income, earnings, fees, charges, receipts, profits and
other moneys derived by the City from its ownership or operation of the Electric System, including, without
limiting the generality of the foregoing; (i) all income, fees, charges, receipts, profits and other moneys derived
from the sale, furnishing or supplying of the services, facilities, commodities and electric energy, power and
steam of the Electric System; (ii) the earnings on and the income from the investment of any moneys held in
funds under the Ordinance; (iii) the earnings on and the income from the investment of other moneys derived
from the ownership or operation of the Electric System to the extent that such earnings and income are
allocated by or pursuant to law to the Electric System; (iv) the proceeds derived by the City directly or
indirectly from the sale, lease or other disposition of all or an part of the Electric System, and the proceeds of
insurance and condemnation awards received with respect to the Electric System; and (v) any other moneys of
the City which are required by the provisions hereof to be applied to the payment of Bonds; provided, however,
that Revenues shall not include (A) customers' deposits or any other deposits subject to refund, until such
deposits have become the property of the City, (B) earnings on and income derived from the investment of
moneys or Government Obligations being held irrevocably for the retirement of indebtedness of the Electric
System, or (C) moneys deposited with the City by employees for employee benefit purposes.
(gg)“Series Ordinance” shall mean an Ordinance adopted hereunder providing for the issuance of
a series of Bonds (other than the 2013 Bonds and the Outstanding Parity Bonds).
(hh)“Supplemental Ordinance” shall mean any Ordinance amending or supplementing this
Ordinance, as originally adopted, adopted under and pursuant to Section 17 or Section 19 of this Ordinance.
Grand Island Council Session - 10/22/2013 Page 64 / 198
ORDINANCE NO. 9456 (Cont.)
(ii)“Surplus Account” shall mean the “Electric Plant Surplus Account” created by Section 12 of
this Ordinance.
(jj)“Trustee” shall mean the trustee appointed pursuant to Section 4 of this Ordinance, and its
successor or successors and any other corporation which may at any time be substituted in its place pursuant to
this Ordinance.
(kk)“Uniform System of Accounts” shall mean the Uniform System of Accounts prescribed by
the Federal Power Commission (now the Federal Energy Regulatory Commission) for public utilities subject to
the provisions of the Federal Power Act (or a uniform system of accounts prescribed by some other Federal
authority having jurisdiction over public utility companies owning properties and engaged in business similar to
the Electric System).
In addition, unless the context shall clearly indicate some other meaning or may otherwise require, the words and terms
defined in this Section shall, for all purposes of the Ordinance and of any ordinance or resolution amendatory hereof, of
any Supplemental Ordinance and Series Ordinance and of any certificate, opinion, order, direction, instrument or
document herein or therein mentioned, have the meaning specified in this Section, and such definitions to be equally
applicable to both the singular and plural forms of any words or terms defined and vice versa.
(1)The terms “herein,” “hereunder,” “hereby,” “hereto,” “hereof” and any similar
terms, refer to the Ordinance and to the Ordinance as a whole and not to an particular section or
subdivision hereof.
(2)The word “person” or words importing persons shall include firms, partnerships,
associations, corporations (public and private), public bodies, natural persons, executors,
administrators, trustees and receivers.
In the Ordinance (not including in such term wherever used in this paragraph any Supplemental Ordinance or
Series Ordinance) : (a) references to articles, sections and other subdivisions, whether by number or letter or otherwise,
are to the respective or corresponding articles, sections or subdivisions of the Ordinance, as such articles, sections or
subdivisions may be amended from time to time; and (b) the word “heretofore” means before the time of adoption of the
Ordinance, the word “now” means at the time of adoption of the Ordinance; and the word “hereafter” means after the
time of adoption of the Ordinance.
Unless the facts shall then be otherwise, all computations required for the purposes of the Ordinance shall be
made on the assumption that: (a) the principal of and interest on all Bonds shall be paid as and when the same become
due; (b) all sinking fund installments required by the Ordinance or any Series Ordinance to be deposited into the Debt
Service Sub-Account in the Bond Account shall be made in the amounts and at the times required by the Ordinance or
such Series Ordinance; and (c) all Bonds required by the Ordinance or such Series Ordinance providing for their issuance
to be redeemed from sinking fund installments to be deposited into the Debt Service Sub-Account in the Bond Account
Grand Island Council Session - 10/22/2013 Page 65 / 198
ORDINANCE NO. 9456 (Cont.)
shall be redeemed on the respective sinking fund installment dates therefor in the amounts and at the times as required by
the Ordinance or such Series Ordinance.
Section 3. Authorization of 2013 Bonds. For the purpose set forth in Section 1, there shall be and there are
hereby ordered issued the negotiable revenue bonds of City of Grand Island, Nebraska, to be known as “Electric System
Revenue Bonds, Series 2013” (the “2013 Bonds”), in the principal amount of not to exceed Forty-seven Million Dollars
($47,000,000).
The Bonds shall bear interest at the rates per annum and on such dates as shall be determined in a written designation
(the “Designation”) signed by the Mayor or City Clerk or the City Finance Director (the “Authorized Officers”) on
behalf of the Mayor and City Council and which may be agreed to by Ameritas Investment Corp., as underwriter (the
“Underwriter”), which Designation may also determine the principal amount for each maturity of the Bonds, the
aggregate principal amount of the Bonds, optional and mandatory redemption provisions (if any), the pricing terms as
set forth in Section 9 below and other terms as provided in this Ordinance, all within the following limitations:
(a)the longest maturity of the Bonds may not be later than August 15, 2033;
(b)the Bonds may be sold at such aggregate original issue discount or original issue premium as
may be determined in the Designation;
(c)the true interest cost on the Bonds shall not be more than 5.00%; and
(d)two or more of the principal maturities may be combined and issued as “term bonds” and the
Authorized Officer may determine the mandatory sinking fund payments and mandatory
redemption amounts. Any Bonds issued as “term bonds” shall be redeemed at a redemption
price equal to 100% of the principal amount thereof plus accrued interest thereon to the date of
redemption and may be selected for redemption by any random method of selection determined
appropriate by the Registrar (as hereinafter designated) or by the Depository (as hereinafter
designated).
The Authorized Officers (or any one of them) are hereby authorized to make such determinations on behalf of the
Mayor and City Council of the City and to evidence the same by execution and delivery of the Designation and such
determinations, when made and agreed to by the Underwriter, shall constitute the action of the Mayor and City Council
of the City without further action of the Mayor and City Council.
The 2013 Bonds shall be issued in fully registered form in the denomination of $5,000 or any integral multiple thereof.
The date of original issue for the 2013 Bonds shall be the date of delivery thereof. Interest on the 2013 Bonds, at the
respective rates for each maturity, shall be payable commencing on August 15, 2014, (or such other date as determined
in the Designation) and on each February 15 and August 15 thereafter (or such other dates as may be determined in the
Designation, each being an “Interest Payment Date”) and the 2013 Bonds shall bear such interest from the date of
original issue or the most recent Interest Payment Date, whichever is later. Interest shall be computed on the basis of a
360-day year consisting of twelve 30-day months. The interest due on each Interest Payment Date shall be payable to
the registered owners of record as of the close of business on the fifteenth day immediately preceding the Interest
Grand Island Council Session - 10/22/2013 Page 66 / 198
ORDINANCE NO. 9456 (Cont.)
Payment Date (or such other date as determined in the Designation, the “Record Date”), subject to the provisions of
Section 5 hereof. The 2013 Bonds shall be numbered from 1 upwards in the order of their issuance. No 2013 Bond shall
be issued originally or upon transfer or partial redemption having more than one principal maturity. The initial bond
numbering and principal amounts for each of the 2013 Bonds issued shall be designated by the City's Treasurer as
directed by the initial purchaser thereof. Payments of interest due prior to maturity or earlier redemption on the 2013
Bonds shall be made by the Paying Agent and Registrar, as designated pursuant to Section 4 hereof, by mailing a check
or draft in the amount due for such interest on each Interest Payment Date to the registered owner of each 2013 Bond, as
of the Record Date for such Interest Payment Date, to such owner's registered address as shown on the books of
registration as required to be maintained in Section 4 hereof. Payments of principal and unpaid accrued interest thereon
due at maturity or at any date fixed for redemption prior to maturity shall be made by said Paying Agent and Registrar to
the registered owners upon presentation and surrender of the 2013 Bonds to said Paying Agent and Registrar. The City
and said Paying Agent and Registrar may treat the registered owner of any 2013 Bond as the absolute owner of such
bond for the purpose of making payments thereon and for all other purposes and neither the City nor the Paying Agent
and Registrar shall be affected by any notice or knowledge to the contrary, whether such bond or any installment of
interest due thereon shall be overdue or not. All payments on account of interest or principal made to the registered
owner of any 2013 Bond in accordance with the terms of this Ordinance shall be valid and effectual and shall be a
discharge of the City and said Paying Agent and Registrar, in respect of the liability upon the 2013 Bonds or claims for
interest to the extent of the sum or sums so paid.
Section 4. Trustee, Paying Agent and Registrar. Wells Fargo Bank, National Association, of Minneapolis,
Minnesota, is hereby designated as the Trustee, Paying Agent and Registrar for the 2013 Bonds and any Additional
Bonds. Said Paying Agent and Registrar shall serve in such capacities under the terms of an agreement entitled “Trustee,
Paying Agent and Registrar's Agreement” between the City and said Paying Agent and Registrar. The Mayor and City
Clerk are hereby authorized to approve, finalize and execute such agreement. The Paying Agent and Registrar shall keep
and maintain for the City books for the registration and transfer of the 2013 Bonds at its designated corporate trust office,
initially located in Minneapolis, Minnesota, or such other corporate trust office as may be designated in writing from
time to time (the “Designated Office”). The names and registered addresses of the registered owner or owners of the
2013 Bonds shall at all times be recorded in such books. Any 2013 Bond may be transferred pursuant to its provisions at
the principal corporate trust office of said Paying Agent and Registrar by surrender of such bond for cancellation,
Grand Island Council Session - 10/22/2013 Page 67 / 198
ORDINANCE NO. 9456 (Cont.)
accompanied by a written instrument of transfer, in form satisfactory to said Paying Agent and Registrar, duly executed
by the registered owner in person or by such owner's duly authorized agent, and thereupon the Paying Agent and
Registrar on behalf of the City will deliver at its office (or send by registered mail to the transferee owner or owners
thereof at such transferee owner's or owners' risk and expense), registered in the name of such transferee owner or
owners, a new 2013 Bond or 2013 Bonds of the same interest rate, aggregate principal amount and maturity. To the
extent of the denominations authorized for the 2013 Bonds by this Ordinance, one such bond may be transferred for
several such bonds of the same interest rate and maturity, and for a like aggregate principal amount, and several such
bonds may be transferred for one or several such bonds, respectively, of the same interest rate and maturity and for a like
aggregate principal amount. In every case of transfer of a 2013 Bond, the surrendered 2013 Bond or Bonds shall be
cancelled and destroyed. All 2013 Bonds issued upon transfer of the 2013 Bonds so surrendered shall be valid
obligations of the City evidencing the same obligations as the 2013 Bonds surrendered and shall be entitled to all the
benefits and protection of this Ordinance to the same extent as the 2013 Bonds upon transfer of which they were
delivered. The City and said Paying Agent and Registrar shall not be required to transfer any 2013 Bond during any
period from any Record Date until its immediately following Interest Payment Date or to transfer any 2013 Bond called
for redemption for a period of 30 days next preceding the date fixed for redemption.
Section 5. Special Record Date. In the event that payments of interest due on the 2013 Bonds on an Interest
Payment Date are not timely made, such interest shall cease to be payable to the registered owners as of the Record Date
for such Interest Payment Date and shall be payable to the registered owners of the 2013 Bonds as of a special date of
record for payment of such defaulted interest as shall be designated by the Paying Agent and Registrar whenever monies
for the purpose of paying such defaulted interest become available.
Section 6. Non-Business Days. If the date for payment of the principal of or interest on the 2013 Bonds shall
be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the principal corporate trust
office of the Paying Agent and Registrar is located are authorized by law or executive order to close, then the date for
such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such
banking institutions are authorized to close, and payment on such day shall have the same force and effect as if made on
the nominal date of payment.
Section 7. 2013 Bonds Subject to Redemption. 2013 Bonds shall be subject to redemption at the option of
the City prior to maturity at any time on or after the tenth anniversary of the date of delivery thereof (or such other
Grand Island Council Session - 10/22/2013 Page 68 / 198
ORDINANCE NO. 9456 (Cont.)
date as may be determined in the Designation), in whole or in part, at the principal amount thereof plus accrued
interest to the date fixed for redemption. The City may select 2013 Bonds to be redeemed in its sole discretion,
including particular maturities as it deems appropriate.
In the event term maturities and mandatory redemption amounts are determined in the Designation, the
provisions of this Section 7 shall apply generally to mandatory redemptions. Any such mandatory redemptions shall
be at the principal amount redeemed plus accrued interest to the date set for redemption. The Paying Agent and
Registrar shall select the term bonds to be redeemed in any maturity using any random method of selection deemed
appropriate, subject to the provisions of Section 9 of this Ordinance.
Notice of redemption of any 2013 Bond called for redemption shall be given, without further direction in
the case of mandatory redemptions (if any), by said Paying Agent and Registrar by mail not less than 30 days prior
to the date fixed for redemption, first class, postage prepaid, sent to the registered owner of such 2013 Bond at said
owner’s registered address. Such notice shall designate the 2013 Bond to be redeemed by maturity or otherwise, the
date of original issue and the date fixed for redemption and shall state that such 2013 Bond or 2013 Bonds are to be
presented for prepayment at the principal office of said Paying Agent and Registrar. In case of any 2013 Bond
partially redeemed, such notice shall specify the portion of the principal amount of such 2013 Bond to be redeemed.
No defect in the mailing of notice for any 2013 Bond shall affect the sufficiency of the proceedings of the City
designating the 2013 Bonds called for redemption or the effectiveness of such call for 2013 Bonds for which notice
by mail has been properly given and the City shall have the right to direct further notice for redemption for any such
bond for which defective notice has been given.
Section 8. Form of 2013 Bonds. The 2013 Bonds shall be in substantially the following form:
Grand Island Council Session - 10/22/2013 Page 69 / 198
ORDINANCE NO. 9456 (Cont.)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
CITY OF GRAND ISLAND
ELECTRIC SYSTEM REVENUE BOND, SERIES 2013
No. R-$_______
Interest Rate Maturity Date Date of Original Issue CUSIP No.
%__________, _______________, 2013 385640
Registered Owner: CEDE & CO.
Principal Amount:
KNOW ALL PERSONS BY THESE PRESENTS: That the City of Grand Island, in the County of Hall, in the
State of Nebraska (the “City”), hereby acknowledges itself to owe and for value received promises to pay, but only from
the special sources hereinafter described, to the registered owner specified above, or registered assigns, the principal
amount specified above in lawful money of the United States of America on the date of maturity specified above with
interest thereon to maturity (or earlier redemption) from the date of original issue or most recent Interest Payment Date,
whichever is later, at the rate per annum specified above (said interest to be computed on the basis of a 360-day year
consisting of twelve 30-day months), payable on _________ and ________ of each year, commencing ________, 2014
(each of said dates an “Interest Payment Date”). The principal hereof and unpaid accrued interest hereon due at maturity
or upon earlier redemption are payable upon presentation and surrender of this bond at the principal corporate trust office
of Wells Fargo Bank, National Association, the Paying Agent and Registrar, in Minneapolis, Minnesota. Interest on this
bond due prior to maturity or earlier redemption will be paid on each Interest Payment Date by a check or draft mailed
by the Paying Agent and Registrar to the registered owner of this bond, as shown on the books of record maintained by
the Paying Agent and Registrar, at the close of business on the ________ day immediately preceding the Interest
Payment Date, to such owner's address as shown on such books and records. Any interest not so timely paid shall cease
to be payable to the person entitled thereto as of the record date such interest was payable, and shall be payable to the
person who is the registered owner of this bond (or of one or more predecessor bonds hereto) on such special record date
for payment of such defaulted interest as shall be fixed by the Paying Agent and Registrar whenever monies for such
purpose become available.
This bond is one of an issue of fully registered bonds of the total principal amount of __________________
Dollars ($___________), of even date and like tenor except as to date of maturity, rate of interest and denomination
which were issued by the City for the purpose of paying the costs of improving extending and equipping the City’s
electric light and power plant and electric distribution system, all in pursuance of Sections 18-1803 to 18-1805, R.R.S.
Neb. 2012, and has been duly authorized by ordinance (the “Ordinance”) legally passed, approved and published and by
proceedings duly had by the Mayor and Council of the City.
Any or all of the bonds of said issue maturing on or after _________, 20___, are subject to redemption at
the option of the City, in whole or in part, at any time on or after [the tenth anniversary of the date of delivery
thereof], at prices equal to the principal amount redeemed, plus accrued interest to the date fixed for redemption.
Notice of redemption shall be given by mail to the registered owner of any bond to be redeemed at said registered
owner’s address in the manner specified in the Ordinance. Individual bonds may be redeemed in part but only in
$5,000 amounts or integral multiples thereof.
[Mandatory Sinking Fund Provisions.]
This bond is transferable by the registered owner or such owner's attorney duly authorized in writing at the
principal corporate trust office of the Paying Agent and Registrar upon surrender and cancellation of this bond, and
thereupon a new bond or bonds of the same aggregate principal amount, interest rate and maturity will be issued to the
transferee as provided in the Ordinance authorizing said issue of bonds, subject to the limitations therein prescribed. The
Grand Island Council Session - 10/22/2013 Page 70 / 198
ORDINANCE NO. 9456 (Cont.)
City, the Paying Agent and Registrar and any other person may treat the person in whose name this bond is registered as
the absolute owner hereof for the purpose of receiving payment due hereunder and for all purposes and shall not be
affected by any notice to the contrary, whether this bond be overdue or not.
If the date for payment of the principal of or interest on this bond shall be a Saturday, Sunday, legal holiday or a
day on which banking institutions in the city where the principal corporate trust office of the Paying Agent and Registrar
is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding
day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close,
and payment on such day shall have the same force and effect as if made on the nominal date of payment.
The revenue and earnings of the electric light and power plant and electric distribution system (the “Electric
System”) owned by the City of Grand Island, Nebraska, have been pledged and hypothecated, equally and ratably for the
payment of this bond and the other bonds of this issue, the Outstanding Parity Bonds (as such term is defined in the
Ordinance), and any Additional Bonds (as such term is defined in the Ordinance) of equal priority issued in accordance
with the Ordinance authorizing the bonds of this issue. The State of Nebraska shall not be liable for the payment of
this bond or the bonds of this issue out of any moneys of the State of Nebraska, and the City shall not be liable for
the payment thereof out of any moneys of the City other than such revenues and earnings pledged in the
Ordinance.
The Ordinance authorizing the issuance of this bond and the other bonds of this issue sets forth the covenants
and obligations of the City with respect to the Electric System and the application of the revenues to be derived
therefrom, which revenues are by the terms of the Ordinance to be deposited into the “Electric System Fund” (as
established under the Ordinance) and disbursed to pay costs of operation and maintenance, make payments of principal
and interest on the bonds of this issue and make other payments as specified in the Ordinance. The Ordinance designates
the terms and conditions on which additional bonds of equal lien to the bonds of this issue may be issued. The
Ordinance also designates the terms and conditions on which this bond shall cease to be entitled to any lien, benefit or
security under such Ordinance and all covenants, agreements and obligations of the City under such Ordinance may be
discharged and satisfied at or prior to the maturity or redemption of this bond if monies or certain specified securities
shall have been deposited with the Paying Agent and Registrar or other trustee. The City also reserves the right to issue
bonds junior in lien to the bonds of this issue, the principal and interest of which shall be payable from monies in the
“Surplus Account” of such Electric System Fund, as described in the Ordinance.
This bond shall not be valid and binding on the City until authenticated by the Paying Agent and Registrar.
AS PROVIDED IN THE ORDINANCE REFERRED TO HEREIN, UNTIL THE TERMINATION OF THE
SYSTEM OF BOOK-ENTRY-ONLY TRANSFERS THROUGH THE DEPOSITORY TRUST COMPANY, NEW
YORK, NEW YORK (TOGETHER WITH ANY SUCCESSOR SECURITIES DEPOSITORY APPOINTED
PURSUANT TO THE ORDINANCE, "DTC"), AND NOTWITHSTANDING ANY OTHER PROVISIONS OF THE
ORDINANCE TO THE CONTRARY, A PORTION OF THE PRINCIPAL AMOUNT OF THIS BOND MAY BE
PAID OR REDEEMED WITHOUT SURRENDER HEREOF TO THE PAYING AGENT AND REGISTRAR. DTC
OR A NOMINEE, TRANSFEREE OR ASSIGNEE OF DTC OF THIS BOND MAY NOT RELY UPON THE
PRINCIPAL AMOUNT INDICATED HEREON AS THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND
UNPAID. THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID SHALL FOR ALL PURPOSES
BE THE AMOUNT DETERMINED IN THE MANNER PROVIDED IN THE ORDINANCE.
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED OFFICER OF DTC (A) TO THE
PAYING AGENT AND REGISTRAR FOR REGISTRATION OF TRANSFER OR EXCHANGE OR (B) TO THE
PAYING AGENT AND REGISTRAR FOR PAYMENT OF PRINCIPAL, AND ANY BOND ISSUED IN
REPLACEMENT HEREOF OR SUBSTITUTION HEREFOR IS REGISTERED IN THE NAME OF DTC AND
ANY PAYMENT IS MADE TO DTC OR ITS NOMINEE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE ONLY THE
REGISTERED OWNER HEREOF, DTC OR ITS NOMINEE, HAS AN INTEREST HEREIN.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and things required by law to exist
or to be done precedent to and in the issuance of this bond did exist, did happen and were done and performed in regular
and due form and time as required by law.
Grand Island Council Session - 10/22/2013 Page 71 / 198
ORDINANCE NO. 9456 (Cont.)
IN WITNESS WHEREOF, the Mayor and Council of the City of Grand Island, Nebraska, have caused this
bond to be executed on behalf of the City with the facsimile signatures of the Mayor and the City Clerk and by causing
the official seal of the City to be imprinted hereon, all as of the date of original issue specified above.
CITY OF GRAND ISLAND, NEBRASKA
(facsimile signature)
Mayor
ATTEST:
(facsimile signature)
City Clerk
(SEAL)
Certificate of Authentication
This bond is one of the bonds authorized by ordinance of the Mayor and Council of the City of Grand Island, in
the County of Hall, in the State of Nebraska, described in the foregoing bond.
WELLS FARGO BANK, NATIONAL
ASSOCIATION
Paying Agent and Registrar
By:
Authorized Signature
(FORM OF ASSIGNMENT)
For value received __________________________________________________ hereby sells, assigns, and
transfers unto ___________________________________________________ the within bond and hereby irrevocably
constitutes and appoints __________________________________, Attorney, to transfer the same on the books of
registration in the office of the within mentioned Paying Agent and Registrar with full power of substitution in the
premises.
Date:
Registered Owner
Signature Guaranteed
By:
Authorized Officer
Note: The signature(s) on this assignment MUST CORRESPOND with the name(s) as written on the face of
the within bond in every particular, without alteration, enlargement or any change whatsoever, and must be guaranteed
Grand Island Council Session - 10/22/2013 Page 72 / 198
ORDINANCE NO. 9456 (Cont.)
by a commercial bank or a trust company or by a firm having membership on the New York, Midwest or other stock
exchange.
Section 9. Execution of 2013 Bonds - Book-entry Securities; Sale of 2013 Bonds. Each of the 2013 Bonds
shall be executed on behalf of the City with the facsimile signatures of the Mayor and the City Clerk and shall have
imprinted thereon the City's seal (which may be a facsimile seal). The 2013 Bonds shall be issued initially as
“book-entry-only” bonds under the services of The Depository Trust Company (the “Depository”), with one typewritten
bond per maturity being issued to the Depository. In such connection said officers are authorized to execute and deliver
a Letter of Representations (the “Letter of Representations”) in the form required by the Depository, for and on behalf of
the City, which shall thereafter govern matters with respect to registration, transfer, payment and redemption of the 2013
Bonds. The Letter of Representations may be in the form of a blanket letter previously or concurrently executed and
delivered. With respect to the issuance of the 2013 Bonds as “book-entry-only” bonds, the following provisions shall
apply:
(a) The City and the Paying Agent and Registrar shall have no responsibility or obligation to any
broker-dealer, bank or other financial institution for which the Depository holds 2013 Bonds as securities
depository (each, a “Bond Participant”) or to any person who is an actual purchaser of a 2013 Bond from a
Bond Participant while the 2013 Bonds are in book-entry form (each, a “Beneficial Owner”) with respect to the
following:
(i) the accuracy of the records of the Depository, any nominees of the
Depository or any Bond Participant with respect to any ownership interest in the
2013 Bonds,
(ii) the delivery to any Bond Participant, any Beneficial Owner or any
other person, other than the Depository, of any notice with respect to the 2013
Bonds, including any notice of redemption, or
(iii) the payment to any Bond Participant, any Beneficial Owner or any
other person, other than the Depository, of any amount with respect to the 2013
Bonds. The Paying Agent and Registrar shall make payments with respect to the
2013 Bonds only to or upon the order of the Depository or its nominee, and all such
payments shall be valid and effective fully to satisfy and discharge the obligations
with respect to such 2013 Bonds to the extent of the sum or sums so paid. No
person other than the Depository shall receive an authenticated Bond, except as
provided in (e) below.
(b) Upon receipt by the Paying Agent and Registrar of written notice from the Depository to
the effect that the Depository is unable or unwilling to discharge its responsibilities, the Paying Agent
and Registrar shall issue, transfer and exchange 2013 Bonds requested by the Depository in
appropriate amounts. Whenever the Depository requests the Paying Agent and Registrar to do so, the
Paying Agent and Registrar will cooperate with the Depository in taking appropriate action after
reasonable notice (i) to arrange, with the prior written consent of the City, for a substitute depository
willing and able upon reasonable and customary terms to maintain custody of the 2013 Bonds or (ii)
to make available 2013 Bonds registered in whatever name or names as the Beneficial Owners
transferring or exchanging such 2013 Bonds shall designate.
Grand Island Council Session - 10/22/2013 Page 73 / 198
ORDINANCE NO. 9456 (Cont.)
(c) If the City determines that it is desirable that certificates representing the 2013 Bonds be
delivered to the ultimate beneficial owners of the 2013 Bonds and so notifies the Paying Agent and
Registrar in writing, the Paying Agent and Registrar shall so notify the Depository, whereupon the
Depository will notify the Bond Participants of the availability through the Depository of bond
certificates representing the 2013 Bonds. In such event, the Paying Agent and Registrar shall issue,
transfer and exchange bond certificates representing the 2013 Bonds as requested by the Depository in
appropriate amounts and in authorized denominations.
(d) Notwithstanding any other provision of this Ordinance to the contrary, so long as any
2013 Bond is registered in the name of the Depository or any nominee thereof, all payments with
respect to such 2013 Bond and all notices with respect to such 2013 Bond shall be made and given,
respectively, to the Depository as provided in the Letter of Representations.
(e) Registered ownership of the 2013 Bonds may be transferred on the books of registration
maintained by the Paying Agent and Registrar, and the 2013 Bonds may be delivered in physical form
to the following:
(i) any successor securities depository or its nominee;
(ii) any person, upon (A) the resignation of the Depository from its
functions as depository or (B) termination of the use of the Depository pursuant to
this Section and the terms of the Paying Agent and Registrar's Agreement.
(f) In the event of any partial redemption of a Bond unless and until such partially
redeemed Bond has been replaced in accordance with the provisions of this Ordinance, the books
and records of the Paying Agent and Registrar shall govern and establish the principal amount of
such Bond as is then outstanding and all of the Bonds issued to the Depository or its nominee shall
contain a legend to such effect.
(g) Delivery of the 2013 Bonds to the Depository is hereby authorized to be made through
the Paying Agent and Registrar, with the Paying Agent and Registrar holding bond certificates for
the Depository under such Depository’s “FAST” procedures as in effect from time to time.
If for any reason the Depository resigns and is not replaced, the City shall immediately provide a supply of printed bond
certificates, duly executed by manual or facsimile signatures of the Mayor and City Clerk and sealed with the City's seal,
for issuance upon the transfers from the Depository and subsequent transfers or in the event of partial redemption. In the
event that such supply of certificates shall be insufficient to meet the requirements of the Paying Agent and Registrar for
issuance of replacement certificates upon transfer or partial redemption, the City agrees to order printed an additional
supply of such certificates and to direct their execution by manual or facsimile signatures of its then duly qualified and
acting Mayor and City Clerk and by imprinting thereon or affixing thereto the City's seal. In case any officer whose
signature or facsimile thereof shall appear on any 2013 Bond shall cease to be such officer before the delivery of such
bond (including such certificates delivered to the Paying Agent and Registrar for issuance upon transfer or partial
redemption), such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes the
same as if such officer or officers had remained in office until the delivery of such bond. The 2013 Bonds shall not be
valid and binding on the City until authenticated by the Paying Agent and Registrar. The City Treasurer shall cause the
Grand Island Council Session - 10/22/2013 Page 74 / 198
ORDINANCE NO. 9456 (Cont.)
2013 Bonds to be registered in the office of the Auditor of Public Accounts of the State of Nebraska and in the office of
the City Treasurer as finance officer of the City. Thereafter the 2013 Bonds shall be delivered to the Paying Agent and
Registrar for registration and authentication. Upon execution, registration and authentication of the 2013 Bonds, they
shall be delivered to the City Treasurer, who is authorized to deliver them to the Underwriter, upon receipt of not less
than 98.9% (or such greater amount as determined in the Designation) of the principal amount of the Bonds plus accrued
interest thereon to date of payment of the Bonds (which purchase price may be modified as determined in the
Designation to account for original issue premium and original issue discount on the Bonds, if any). Such sale of the
2013 Bonds shall be made to the Underwriter pursuant to the terms of a Bond Purchase Agreement in substantially the
form presented and an Authorized Officer is hereby authorized to approve the final form and execute and deliver such
Bond Purchase Agreement. The Underwriter and its agents, representatives and counsel and Bond Counsel for the City
are hereby authorized to take such actions on behalf of the City as are necessary to effectuate the closing of the issuance
and sale of the 2013 Bonds, including, without limitation, authorizing the release of the 2013 Bonds by the Depository
(as defined herein) at closing.
Section 10. Applications of Funds and Proceeds. Any accrued interest received from the sale of the 2013
Bonds shall be applied to pay interest first falling due on the 2013 Bonds, and shall be credited to the Debt Service Sub-
Account in the Bond Account as described in Section 12 hereof. Expenses of issuance of the 2013 Bonds may be paid
from the proceeds of the 2013 Bonds. A portion of the net proceeds of the 2013 Bonds in an amount equal to the Series
2013 Reserve Requirement shall be deposited to the Series 2013 Reserve Sub-Account as provided in Section 13(d)
below. The remaining proceeds of the 2013 Bonds shall be deposited into the Construction Fund and applied as set forth
in Section 12(h). The Mayor, the City Clerk and the City Treasurer, or any one or more of them, are hereby authorized
to take all actions necessary to provide for the transfers and deposits described in this Section.
Section 11. Pledge of Revenues. The principal of and premium, if any, and interest on the Bonds shall be
payable solely from and shall be secured solely by the Revenues which are hereby pledged in this Ordinance to the
payment thereof, subject to the charge on Revenues for the payment of Operating Expenses. All the Bonds shall be
equally and ratably secured without priority by reason of series, number, date of Bonds, date of issuance, date of sale,
date of execution or date of delivery or otherwise, by a lien and charge on Revenues, which lien shall constitute a first
and prior lien on Revenues subject to the charge on Revenues for the payment of the Operating Expenses. The
covenants and agreements herein set forth to be performed by the City shall be for the equal and proportionate benefit,
Grand Island Council Session - 10/22/2013 Page 75 / 198
ORDINANCE NO. 9456 (Cont.)
security and protection of all holders of the Bonds without preference, priority or distinction as to payment or security or
otherwise (except that a separate Reserve Sub-Account has been or will be established for the Outstanding Parity Bonds
and the 2013 Bonds and a separate reserve sub-account may be established for any series of Additional Bonds and except
as to maturity and sinking fund installments which may be established for the Bonds of any series authorized hereunder)
of any of the Bonds or interest payments over any of the others by reason of series, date, number, date of execution, time
of issue, sale or negotiation thereof or otherwise for any cause whatsoever, except as expressly provided therein or
herein, and all Bonds shall rank pari passu and shall be secured equally and ratably without discrimination or preference
whatsoever.
The lien, pledges, charges, trusts and assignments of Revenues made herein and hereby shall be valid and
binding, and shall be deemed continuously perfected for the purposes of the Uniform Commercial Code (as and to the
extent applicable) or any other statute, from the time of the passage and approval of this Ordinance and the Revenues
shall thereupon be immediately subject to the lien, pledge and charge hereof and the trusts created hereby subject to the
condition that receipt be made for the proceeds of the 2013 Bonds by or for the City or by the Trustee or a Paying Agent
hereunder.
The Bonds shall not be a debt of the State of Nebraska or of the City within the meaning of any constitutional
or statutory limitation upon the creation of general obligation indebtedness of the State of Nebraska or of the City. The
State of Nebraska shall not be liable for the payment of the Bonds out of any moneys of the State of Nebraska, and the
City shall not be liable for the payment thereof out of any moneys of the City other than Revenues pledged to the
payment thereof as aforesaid, and all Bonds shall contain a recital to that effect.
Section 12. Creation of Funds and Accounts. The City does hereby agree with the holders of the 2013
Bonds, the Outstanding Parity Bonds and Additional Bonds as follows:
(a)ELECTRIC SYSTEM FUND - There is hereby ordered established a special fund
of the City to be designated as the Electric System Fund which shall be maintained as long as any of
the Bonds are outstanding. The Electric System Fund and all accounts and sub-accounts therein shall
be held in trust and administered by the City in accordance with this Ordinance. The City covenants
and agrees that it will pay and deposit in the Electric System Fund, as promptly as practicable after the
receipt thereof, all Revenues, and that said Revenues will be segregated and kept apart from all other
revenues and funds of the City.
(b)BOND ACCOUNT - There is hereby created within the Electric System Fund a
special account to be known as the “Electric System Revenue Bond Account” (hereinafter referred to
as the “Bond Account”). The Bond Account shall be used solely for the purpose of paying the
principal of and premium, if any, and interest on the Bonds and of retiring the Bonds prior to maturity
in the manner herein provided.
Grand Island Council Session - 10/22/2013 Page 76 / 198
ORDINANCE NO. 9456 (Cont.)
(c)DEBT SERVICE SUB-ACCOUNT WITHIN THE BOND ACCOUNT - There
is hereby created within the Bond Account, for the purpose of paying principal of and premium, if
any, and interest on the Bonds and of retiring the Bonds prior to maturity in the manner herein
provided, a special account in the Bond Account to be known as the “Debt Service Sub-Account.”
(d)SERIES 2013 RESERVE SUB-ACCOUNT - There is hereby created within the
Bond Account, for the purpose of providing a reserve for the payment of the principal of and
premium, if any, and interest on the 2013 Bonds and only on the 2013 Bonds, a special account in the
Bond Account to be known as the “Series 2013 Reserve Sub-Account.”
(e)CAPITAL IMPROVEMENT ACCOUNT - There is hereby created within the
Electric System Fund, for the purpose of making replacements, improvements, enlargements,
extensions and betterments of the Electric System, a special account to be known as the “Capital
Improvement Account.”
(f)OPERATION AND MAINTENANCE ACCOUNT – There is hereby created
within the Electric System Fund, for the purpose of paying Operating Expenses, a special account to
be know as the “Operation and Maintenance Account.”
(g)ELECTRIC PLANT SURPLUS ACCOUNT - There is hereby created within
the Electric System Fund a special account of the City to be known as the “Surplus Account.”
(h)CONSTRUCTION FUND - There is hereby created a special fund of the City to
be known as the “Construction Fund”, which shall be held and disbursed by the City.
(i)Withdrawals of the proceeds of the 2013 Bonds on deposit in the
Construction Fund shall be made only to provide for the payment of the Costs of
Construction, or to reimburse the Electric System Fund or the City for payment of Costs of
Construction advanced from time to time when such payments have been approved by the
appropriate City official.
(ii)Amounts in the Construction Fund shall be applied to the payment when
due of principal of and interest on the Bonds to the extent that other moneys are not available
thereof, and such amounts are hereby pledged as additional payments to the Bond Account
to the extent required to make up such deficiency.
(iii)Whenever the purposes for which the Construction Fund (or any other
construction fund in which is deposited the proceeds of Additional Bonds) has been created
have been satisfied, any balance then remaining therein may be transferred to any other
construction fund and such Construction Fund (or fund) closed. To the extent not so
transferred, such balance shall be deposited in the Series 2013 Reserve Sub-Account unless
and until there shall be on deposit therein an amount equal to the Series 2013 Reserve
Requirement, and any amount of such balance then remaining shall be transferred to the
Capital Improvement Fund.
A separate reserve sub-account may be established for any issue of Additional Bonds in the Series Ordinance for such
issue which sub-account or sub-accounts shall be of equal standing and priority with the Series 2013 Reserve Sub-
Account as to priority of payment for purposes of restoring withdrawals as set forth in Section 13 hereof and in the event
of insufficiency of funds for restoring any and all such withdrawals amounts shall be allocated among deficient reserve
sub-accounts pro rata in accordance with the respective outstanding principal amounts of those issues of Bonds for which
there are deficient reserve sub-accounts.
Section 13. Application of Revenues. Each month the moneys in the Electric System Fund shall be applied in
the amounts and in the order of priority set forth in this Section 13. In the event that in any month the moneys in the
Electric System Fund are insufficient to make in full in the order of priorities set forth in this Section the credits,
reservations and payments required by the provision of this Section 13, such credits, reservations and payments shall be
Grand Island Council Session - 10/22/2013 Page 77 / 198
ORDINANCE NO. 9456 (Cont.)
made in such manner in order of priority to the fullest extent possible, an item having higher priority being satisfied in
full (including the making up of any deficiencies) before an item having a lower priority. The amount of any deficiency
in a credit, reservation or payment over to or for a priority item shall be added to the requirement for such item in
succeeding months until such deficiency is satisfied.
FIRST: There shall be reserved in the Electric System Fund and credited to the Operation and Maintenance
Account each month such amounts as shall be necessary to pay the Operating Expenses during the ensuing month, which
amounts so reserved shall be used for and applied to such payments in such month or, to the extent not so applied, in
succeeding months.
SECOND: There shall next be paid from the Electric System Fund for deposit in the Bond Account to be
credited to the Debt Service Sub-Account and the Series 2013 Reserve Sub-Account therein, simultaneously and without
preference of one over the other, with consideration given to and allowance made for moneys deposited in, credited or
accrued to the Debt Service Sub-Account and the Series 2013 Reserve Sub-Account, the following:
(a)Not later than the 25th day of the month following the issuance and delivery of any
series of Bonds, including the 2013 Bonds, and not later than the 25th day of each calendar month
thereafter, the City shall pay to the Trustee for deposit in the Bond Account to be credited to the Debt
Service Sub-Account with respect to each series of Bonds then Outstanding, an amount such that, if
the same amount were so paid and credited to the Debt Service Sub-Account on the 25th day of each
succeeding calendar month thereafter and prior to the next date upon which an installment of interest
falls due on the Bonds of such series, the aggregate of the amounts so paid and credited to the Debt
Service Sub-Account for the purpose of paying interest on such series of Bonds would on such date be
equal to the installment of interest then falling due on all Bonds of such series of Bonds then
Outstanding. In making credits to the Debt Service Sub-Account required by this subparagraph,
consideration shall be given to and allowance made for any amounts representing accrued interest
received on the sale of Bonds paid or to be paid into the Bond Account and credited to the Debt
Service Sub-Account, and interest capitalized from the proceeds of Bonds.
(b) Not later than the 25th day of the 12th month prior to each date upon which an
installment of principal of the Bonds of any series of Bonds falls due, and not later than the 25th day
of each calendar month thereafter, the City shall pay to the Trustee for deposit in the Bond Account to
the credit of the Debt Service Sub-Account with respect to an installment of principal on such series of
Bonds, an amount such that, if the same amount were so paid and credited to the Debt Service Sub-
Account on the 25th day of each calendar month thereafter and prior to the next day upon which an
installment of principal falls due on the Bonds of such series of Bonds, the aggregate of the amounts
so paid and credited to the Debt Service Sub-Account for the purpose of paying in installment of
principal of such series would on such date be equal to the installment of principal of such series of
Bonds then falling due, provided, however, with respect to the 2013 Bonds such deposits and credits
shall commence with the 25th day of such month as determined in the Designation.
(c)Not later than the 25th day of the 12th month prior to the date upon which the first
sinking fund installment for mandatory redemptions, if any, is payable with respect to the Bonds of
any series of Bonds and not later than the 25th day of each calendar month thereafter, the City shall
pay to the Trustee for deposit in the Bond Account for credit to the Debt Service Sub-Account with
respect to a sinking fund installment on such series of Bonds, an amount such that, if the same amount
were so paid and credited to the Debt Service Sub-Account on the 25th day of each calendar month
thereafter and prior to the next date upon which a sinking fund installment falls due, the aggregate of
the amounts so paid and credited to the Debt Service Sub-Account for the purpose of retiring the
Bonds of such series would be sufficient to redeem such Bonds in the principal amounts and at the
times specified in the Series ordinance or Ordinances authorizing the issuance of such Additional
Bonds.
The Trustee may apply the moneys paid into the Bond Account for credit to the Debt Service
Sub-Account pursuant to this subsection (c) for the purpose of retiring the Bonds of each series of
Bonds to the purchase of such Bonds, in which event the principal amount of said Bonds of the
Grand Island Council Session - 10/22/2013 Page 78 / 198
ORDINANCE NO. 9456 (Cont.)
maturity purchased required to be redeemed on the next ensuing sinking fund installment mandatory
redemption date shall be reduced by the principal amount of such Bonds so purchased; provided,
however, that no Bonds shall be purchased during the interval between the date on which notice of
redemption of said Bonds from sinking fund installments is given and the date of redemption set forth
in such notice, unless the Bonds so purchased are Bonds called for redemption in such notice or are
purchased from moneys other than those credited to the Debt Service Sub-Account pursuant to this
subsection (c) as part of a sinking fund installment; and provided further, that no purchases of Bonds
shall be made if such purchase would require the sale at a loss of securities in the Bond Account for
credit to the Debt Service Sub-Account unless the difference between the actual purchase price
(including accrued interest and any brokerage or other charge) paid for such Bonds and the then
maximum purchase price (plus accrued interest) permitted to be paid therefor, is greater than the loss
upon the sale of any such securities. Any purchase of Bonds pursuant to this subsection (c) may be
made with or without tenders of Bonds and at either public or private sale, but in any event at a
purchase price (including accrued interest and any brokerage or other charge) not to exceed the then
applicable redemption price of such Bonds, plus accrued interest. All Bonds purchased or redeemed
pursuant to this subsection (c) shall be cancelled and not reissued.
At the option of the City, the City may, in lieu of making all or any part of the cash payments
into the Bond Account required by the foregoing provisions of this subsection (c), furnish the Trustee
with a certificate of the Treasurer of the City, stating that the City has purchased and cancelled Bonds
of a series of Bonds in the principal amount, and bearing the numbers, specified therein, and that said
Bonds have not been previously included in any such certificate; and thereupon the cash payments
required by the foregoing provisions of this subsection (c) with respect to the Bonds of such series of
the maturity purchased may be reduced accordingly by the principal amount of such Bonds cancelled,
as evidenced by such certificate.
In the event notice of redemption shall have been given as provided in the authorizing
ordinance with respect to a redemption other than pursuant to the foregoing provisions of this
subsection (c), the City shall pay to the Trustee for deposit in the Bond Account for credit to the Debt
Service Sub-Account at least six (6) days prior to the redemption date, an amount in cash which, in
addition to other moneys, if any, available therefor in the Debt Service Sub-Account, will be sufficient
to redeem on the redemption date at the applicable redemption prices thereof, plus interest accrued
thereon to the redemption date, all of the Bonds to be redeemed.
(d)Upon the issuance of the 2013 Bonds there shall be transferred to the Series 2013
Reserve Sub-Account from proceeds of the Series 2013 Bonds an amount equal to the Series 2013
Reserve Requirement. If at any time the moneys and the value of Investment Securities in the Bond
Account for credit to the Series 2013 Reserve Sub-Account therein are an amount less than the Series
2013 Reserve Requirement as the result of a withdrawal from the Series 2013 Reserve Sub-Account,
there shall be credited to the Series 2013 Reserve Sub-Account from the first moneys available
therefor, such amounts as shall be necessary until there is again on credit to the Series 2013 Reserve
Sub-Account an amount at least equal to the Series 2013 Reserve Requirement. As set forth in
Section 12, amounts available for restoring reserve sub-accounts for separate series of Bonds shall be
applied pro rata in accordance with the respective outstanding principal amounts of each such series
for which restoration of withdrawals is required.
If at any time the moneys and value of Investment Securities in the Bond Account for credit
to the Series 2013 Reserve Sub-Account therein are in excess of the Reserve Account Requirement,
the amount of such excess shall, at the request of the City, be paid into the Debt Service Sub-Account
of the Bond Account, to be used and applied as credit against the amounts next required to be
deposited thereto by the City with respect to the 2013 Bonds. The moneys and value of Investment
Securities in the Bond Account for credit to the Series 2013 Reserve Sub-Account therein shall,
except for the transfer therefrom to the Debt Service Sub-Account of excess amounts therein as hereto-
fore permitted in this subsection (d), be used and applied solely for the purpose of paying the principal
of and premium, if any, and interest on the 2013 Bonds when due, whether at their maturity or upon
the redemption or purchase thereof from moneys credited to the Debt Service Sub-Account and shall
Grand Island Council Session - 10/22/2013 Page 79 / 198
ORDINANCE NO. 9456 (Cont.)
be so used and applied whenever there are insufficient moneys in the Bond Account for credit to the
Debt Service Sub-Account therein for such purposes.
The term “value of Investment Securities” and words of like import as used herein, shall
mean the purchase price of such obligations paid by the City, excluding accrued interest, but shall not
be more than the par value of such obligations.
Moneys in the Debt Service Sub-Account shall be transmitted by the Trustee without further authorization or
direction from the City to the Paying Agents prior to the date upon which any interest is due on the Bonds and prior to
the date upon which any principal is due on the Bonds pursuant to a stated maturity, a sinking fund installment or a
notice of redemption, as the case may be. In the event that there shall be a deficiency in the Debt Service Sub-Account
in the Bond Account, and if moneys in the Electric System Fund are not deposited with the Trustee in an amount
sufficient to make up any deficiency, the Trustee shall promptly make up such deficiency from the Series 2013 Reserve
Sub-Account for the 2013 Bonds by the withdrawal of cash therefrom for that purpose and by the sale or redemption of
obligations held in the Series 2013 Reserve Sub-Account, if necessary, in such amounts as will provide cash in the Series
2013 Reserve Sub-Account sufficient to make up any such deficiency. With respect to any Additional Bonds in any
such case withdrawals shall be made from the respective reserve account, if any, established with respect to such
Additional Bonds in the respective authorizing ordinance.
Moneys set aside from time to time with the Paying Agent for the purpose of paying the principal of and
premium, if any, and the interest on the Bonds shall be held in trust for the holders of the Bonds in respect of which the
same shall have been so set aside. Until so set aside, all moneys in the Bond Account, except for monies held in the
Reserve Sub-Account established for the Outstanding Parity Bonds, the Series 2013 Reserve Sub-Account or any reserve
account established for Additional Bonds, shall be held in trust for the benefit of the holders of all Bonds at the time
Outstanding, equally and ratably.
Whenever the amounts on deposit in the Bond Account shall be sufficient to provide moneys to retire all Bonds
then Outstanding, including such interest thereon as thereafter may become due and payable and any premiums upon
redemption thereof, no further payments need be made into the Bond Account. All moneys remaining in the Bond
Account after provisions for the payment in full of the principal of and premium, if any, and interest on the Bonds shall
be returned to the Electric System Fund.
THIRD: There shall be paid from the Electric System Fund for deposit in the Capital Improvement Account
the amounts provided for by Section 16 of this Ordinance. Moneys in said account shall be used for the purposes
specified in said Section 16.
FOURTH: Within 120 days after the end of each Fiscal Year, the City shall next have the right to withdraw
from the Electric System Fund and to pay into the general fund of the City an amount equal to five per cent (5%) of
Operating Revenues less Operating Expenses for such Fiscal Year, such payment being in lieu of taxes. No withdrawal
from the Electric System Fund and payment to the City hereinbefore authorized shall be made at any time when the City
shall be in default in the performance of any covenant or agreement contained in the Ordinance or when such withdrawal
would cause the City to be in default in the performance of any such covenant or agreement. Except as aforesaid, no
moneys derived by the City from the operation of the Electric System shall be diverted or applied to the general gov-
ernmental or municipal functions of the City so long as any of the Bonds remain Outstanding. Anything in this Section
13, including this paragraph FOURTH, to the contrary notwithstanding, the City shall be permitted to include allocable
administrative costs attributable to services furnished by the City’s general operations for the benefit of the Electric
System in Operating Expenses, payable from the Operation and Maintenance Account.
FIFTH: Subject to the second last sentence of paragraph FOURTH above, all moneys remaining in the Electric
System Fund, after making provision for payments required to be made into the Operation and Maintenance Account,
the Bond Account, and the Capital Improvement Account, and any withdrawals by the City pursuant to paragraph
FOURTH above, shall be credited to the Surplus Account and may be expended for any lawful purpose of the Electric
System.
Grand Island Council Session - 10/22/2013 Page 80 / 198
ORDINANCE NO. 9456 (Cont.)
Moneys in the Electric System Fund shall, to the fullest extent practicable, be invested in Investment Securities maturing
at such times and in such amounts as shall be required to provide moneys to make payments required to be made from
said Fund. Moneys held for credit to the Debt Service Sub-Account in the Bond Account shall, to the fullest extent
practicable and reasonable, be invested by the Trustee at the direction of the City in Investment Securities which shall
mature prior to the respective dates when the moneys held for the credit of such Account will be required for the
purposes intended. Moneys in the Series 2013 Reserve Sub-Account in the Bond Account not required for immediate
disbursement for the purposes for which said Account is created shall, to the fullest extent practicable and reasonable, be
invested and reinvested by the Trustee at the direction of the City solely in, and obligations deposited in the Series 2013
Reserve Sub-Account shall be, Investment Securities maturing, or subject to redemption at the option of the holder
thereof, within ten (10) years from the date of such investment (but maturing prior to the final maturity date of the 2013
Bonds). The Trustee shall not be liable for any depreciation in value of any such investment. Moneys held in the Capital
Improvement Account shall be invested as provided in Section 16 and income resulted from such investments shall be
applied as provided in such Section. All income resulting from the investment or reinvestment of moneys held in the
Electric System Fund pursuant to this Section shall be treated as Revenues, and shall be retained in the Electric System
Fund and allocated as provided herein, except for income attributable to the Series 2013 Reserve Sub-Account which is
required above to be transferred to the Debt Service Sub-Account for making payments due on the 2013 Bonds.
Earnings on the investment of moneys in the construction and acquisition account established for the proceeds
of the 2013 Bonds and any construction account that may be established with the proceeds of Additional Bonds shall be
deposited in such account. Expenses of purchase, safekeeping, sale and redemption and all other expenses attributable to
such investments shall be treated as expenses of such account.
The provisions of this Section 13 shall require the City to maintain a set of books and records in accordance
with such accounting methods and procedures as are generally applicable to municipal utility enterprises, which books
and records shall show credits to and expenditures from the Electric System Fund and the several accounts and sub-
accounts required by this Section 13.
Section 14. Additional Bonds. At any time and from time to time after the issuance of the 2013 Bonds, one or
more series of Additional Bonds may be issued hereunder for the purpose of acquiring, constructing, reconstructing,
improving, extending, equipping or furnishing the Electric System or for the purpose of refunding or purchasing Bonds
Grand Island Council Session - 10/22/2013 Page 81 / 198
ORDINANCE NO. 9456 (Cont.)
upon compliance with the conditions and limitations hereinafter set forth in this Section 14. Such conditions and
limitations with respect to Additional Bonds other than refunding bonds (as described below) are as follows:
(a)Prior to the issuance, sale and delivery of any Additional Bonds, the City shall
obtain and file with the Trustee a letter of the Independent Accountant stating that, based upon their
most recent examination, nothing came to their attention that would indicate that the City is not in
compliance with the covenants, agreements and conditions contained in this Ordinance;
(b)Prior to the issuance, sale and delivery of any Additional Bonds, the City shall
obtain and file with the Trustee an opinion of the Consulting Engineer stating that Net Receipts,
computed as hereinafter provided in this section, in each Fiscal Year following the issuance of the
Additional Bonds then proposed to be issued will be at least equal to the greater of:
(i)1.30 times the Debt Service Requirement in such year for (A) the Bonds
to be Outstanding after the issuance of such Additional Bonds, and (B) any Additional Bonds
which, in the opinion of the Consulting Engineer, will be required to complete payment of
the Costs of Construction of a Facility for which any Bonds have theretofore been issued or
are then being issued hereunder; or
(ii)the Debt Service Requirement on all Bonds referred to in (A) and (B) of
subparagraph (i) above plus (A) payments, if any, scheduled (after the time of any credit to
be made upon initial issuance of any issue of Additional Bonds) by the City to be made from
Revenues into the Reserve Sub-Account for the Outstanding Parity Bonds, the Series 2013
Reserve Sub-Account and any reserve sub-account established or to be established for any
issue of Additional Bonds fulfill the applicable Series Reserve Requirement, any reserve
requirement established for any issue of Additional Bonds then Outstanding and any reserve
requirement established for the issue of Additional Bonds to be issued, and (B) the amounts
required to be expended pursuant to Section 16 hereof.
(c)In making the computation of Net Receipts for each succeeding Fiscal Year as
hereinabove provided, the Consulting Engineer shall use as a basis the Net Receipts for any period of
twelve consecutive months during the eighteen months next preceding the month in which Additional
Bonds then being issued are sold to the initial purchasers thereof (hereinafter referred to as the “Base
Period”). In making such computations the Consulting Engineer shall adjust the Net Receipts for the
Base Period as follows:
(i) If any changes have been made in the schedule of rates and charges imposed by
the City on sales of power and energy and services furnished by the Electric System,
including rates contained in power sales contracts, which are in effect at the time of adoption
of the Series Ordinance authorizing the issuance of the Additional Bonds then being issued
and were not in effect for all or any part of the Base Period, the Consulting Engineer may, if
such changes result in increases in such rates and charges, and shall, if such changes result in
reductions in such rates and charges, adjust the Net Receipts for the Base Period to reflect
any change in such Net Receipts which would have occurred if the schedule of rates and
charges in effect at the time of the adoption of the Series Ordinance authorizing the issuance
of the Additional Bonds had been in effect during that portion of the Base Period in which
such schedule was not in effect.
(ii) In computing the projected Net Receipts for each of the Fiscal Years covered
by this Section, the Consulting Engineer may adjust the amount of Net Receipts for the Base
Period, as adjusted pursuant to the preceding paragraph, by his estimate of the net increase
over, or net decrease under, such Net Receipts for the Base Period by reason of any one or
more of the following factors:
Grand Island Council Session - 10/22/2013 Page 82 / 198
ORDINANCE NO. 9456 (Cont.)
(A)changes in the amounts payable to the City pursuant to existing
power sales contracts;
(B)changes in Operating Revenues to result from existing power
sales contracts for future deliveries of power and energy;
(C)changes in Operating Revenues to result from increases of sales
of power and energy to customers of the Electric System under existing rate
schedules for the various classes of such customers, or as such rate schedules may
be revised under the Program of Rate Changes;
(D)projected revisions of the cost of labor, wages and salaries;
(E)projected revisions of the cost of fuel;
(F)projected revisions of the cost of machinery, equipment and
supplies;
(G)projected revisions of production, transmission, distribution and
administrative costs associated with the increases in sales of power and energy and
the acquisition and construction of additional facilities;
(H)the projected cost of purchasing power and energy;
(I)projected sales of surplus energy or capacity; provided, however,
that no Revenues from sales of surplus energy or capacity shall be included in
projected Net Receipts unless the Consulting Engineer shall state in the opinion
delivered pursuant to subsection (b) of this Section that he believes there will be a
market for such surplus energy or capacity at the rates used in computing the
projected Revenues from this source in the Fiscal Years in which such projected
Revenues are included; and
(J) such projection of additional Operating Revenues and Operating
Expenses as the Consulting Engineer shall deem reasonable and proper.
(d)If the Consulting Engineer is required pursuant to this Section 14 to estimate the
Debt Service Requirement on any Bonds which in his opinion will be required to be issued in the
future to pay Costs of Construction of a Facility for which Bonds have been or are then being issued,
he shall estimate the Debt Service Requirement for such future Additional Bonds based upon:
(i) the assumption that such future Additional Bonds will be issued in an
amount not less than the amount required to complete payment of the Costs of Construction
of such Facility as estimated by the Construction Engineer for such Facility, or if there be no
Construction Engineer therefor, by the Consulting Engineer;
(ii)the assumption that the Debt Service Requirement on such future
Additional Bonds in each Fiscal Year in which payments to the Bond Account with respect
to principal on such future Additional Bonds will be made will be as nearly equal as
practicable;
(iii) the assumption that the first installment of principal of such future
Additional Bonds will be payable on or before the date which is thirty-six months following
the estimated Date of Commercial Operation of such Facility to pay the Costs of
Construction of which such future Additional Bonds will be required to be issued;
Grand Island Council Session - 10/22/2013 Page 83 / 198
ORDINANCE NO. 9456 (Cont.)
(iv) the assumption that the final maturity of such future Additional Bonds
will be not later than the final maturity date of any Bonds or Additional Bonds theretofore
issued or then being issued to pay the Costs of Construction of such Facility;
(v)the assumption that the interest rate to be borne by such future Additional
Bonds will be at least equal to the Average Interest Rate (to the next higher multiple of 1/10
of 1%) as is to be borne by the Additional Bonds then being issued; and
(vi) such other assumptions with respect to the issuance of such Bonds as the
Consulting Engineer may consider proper.
The Consulting Engineer may reduce his estimate of the amount of future Additional Bonds
required to be issued to pay Costs of Construction of a Facility for which Bonds have been or are
being issued by:
(i) an amount equal to the income which the Consulting Engineer estimates
will be derived from the investment of the proceeds of the Additional Bonds issued or the
future Additional Bonds to be issued to pay the Costs of Construction of such Facility
pending their application to the payment of the Costs of Construction of such Facility at an
interest rate which shall not be greater than the Average Interest Rate borne by the
Additional Bonds then being issued; and
(ii) any amounts which the Consulting Engineer estimates are or will be
available to the City from Revenues or any other moneys for the purpose of paying a portion
of the Costs of Construction of such Facility.
(e)Any certificate of the Consulting Engineer filed with the Trustee pursuant to this
Section shall be conclusive and binding upon the holders of Bonds and the Trustee and shall be the
only evidence required to show compliance by the City and the Consulting Engineer with the
provisions and requirements of subsections (b), (c) and (d) of this section.
(f)Unless upon the issuance, sale and delivery of any Additional Bonds there shall
then already be on deposit in the Bond Account for credit to the Series 2013 Reserve Sub-Account
therein an amount equal to the Series 2013 Reserve Requirement and any reserve requirements for any
reserve accounts for Additional Bonds to be in effect after the issuance of such Additional Bonds,
there shall either (i) be paid into the Bond Account for credit to the Series 2013 Reserve Sub-Account
and all other reserve sub-accounts therein such amount, if any, of the proceeds of the sale of such
Additional Bonds so that there shall be on deposit in the Bond Account for credit to the Series 2013
Reserve Sub-Account and any reserve sub-account established for any issue of Additional Bonds
therein an amount equal to the Series 2013 Reserve Requirement and any reserve account requirement
for Additional Bonds to be in effect immediately after the issuance of such Additional Bonds or (ii) if
and to the extent there shall not be paid into the Bond Account for credit to the Series 2013 Reserve
Sub-Account and/or the respective reserve sub-accounts for each issue of Additional Bonds to be
outstanding, proceeds of such Additional Bonds in an amount so that there shall then be on credit to
the Series 2013 Reserve Sub-Account and any such reserve sub-account established for Additional
Bonds to be outstanding an amount equal to the Series 2013 Reserve Requirement and the reserve
requirement, if any, for each such issue of Additional Bonds, there shall be credited to the Series 2013
Reserve Sub-Account and any such reserve sub-account for Additional Bonds to be outstanding, at
such time, or from time to time, as the City may deem proper, such amount or amounts, as the City
may deem proper, of the moneys available therefor after all payments and credits required by Section
13 hereof have been made, so that by any date to which interest on such Additional Bonds then being
issued has been provided for by deposits in the Debt Service Sub-Account in the Bond Account from
the proceeds of Bonds, there shall be on deposit in the Series 2013 Reserve Sub-Account and any such
reserve account or sub-account established for Additional Bonds an amount equal to the Series 2013
Reserve Requirement and any such reserve requirement for Additional Bonds to be outstanding, all as
then in effect.
Grand Island Council Session - 10/22/2013 Page 84 / 198
ORDINANCE NO. 9456 (Cont.)
At any time and from time to time after the issuance of the 2013 Bonds, the City may issue one or more series of
Additional Bonds on a parity with the 2013 Bonds, the Outstanding Parity Bonds and any Additional Bonds then
Outstanding for the purpose of refunding or purchasing Bonds, including amounts to pay principal, premium and interest
to the redemption or purchase date and the expenses of issuing such Additional Bonds and refunding or purchasing the
Bonds being refunded or purchased, provided, that the Debt Service Requirement for the Bonds to be Outstanding after
the issuance of such refunding Bonds in any Fiscal Year in which any Bonds to be refunded or purchased would
otherwise be Outstanding shall not be greater than the Debt Service Requirement if the Bonds to be refunded or
purchased were not so refunded or purchased. Refunding bonds may be issued under the terms provided for above in
this Section 14, provided that any showing of the coverage required by (b)(i) or (b)(ii) may be shown by a statement of
the City’s Treasurer accompanied by audited financial statements and certified calculations as to the Debt Service
Requirement for all Bonds to be outstanding after the issuance of any such refunding bonds.
The City may also issue Bonds on a parity with the 2013 Bonds, the Outstanding Parity Bonds and any
Additional Bonds then Outstanding for the purpose of refunding at any time within one year prior to maturity any of the
Bonds for the payment of which the City does not have sufficient funds. Any Additional Bonds issued for such purpose
shall mature in a year not earlier than the latest stated maturity of the Bonds not refunded to be Outstanding after the
completion of such refunding.
Except for the issuance of the 2013 Bonds and except for the issuance of, and to the extent permitted in this
Section 14, Additional Bonds, from and after the effective date of this Ordinance and for so long as any of the Bonds are
Outstanding, the City will not create or permit the creation of any indebtedness or issue any bonds, notes, warrants,
certificates or other obligations or evidences of indebtedness payable in any manner from moneys derived from
Revenues or from the Electric System Fund which (a) will in any way be superior to or rank on a parity with the Bonds
authorized in accordance with this Section 14 or (b) will in any way be secured by a lien and charge on Revenues or on
the moneys deposited in or to be deposited in the Electric System Fund prior to or equal with the lien and charge created
herein for the security of the Bonds, or (c) will be payable prior to or equal with the payments to be made from moneys
derived from Revenues and the Electric System Fund into the Bond Account and the Capital Improvement Account, and
from the Bond Account for the payment of the Bonds, including the payments to be made into the Series 2013 Reserve
Sub-Account or any reserve sub-account established for any issue of Additional Bonds in the Bond Account.
Grand Island Council Session - 10/22/2013 Page 85 / 198
ORDINANCE NO. 9456 (Cont.)
Nothing in this Ordinance, and particularly nothing in this Section 14 shall prevent the City from authorizing
and issuing bonds, notes, bond anticipation notes, warrants, certificates or other obligations or evidences of indebtedness
(a) the payment of the principal of and premium, if any, and interest on which shall be made from evidences of
indebtedness of the City (other than Bonds) or from moneys derived from Revenues in the Surplus Account, or from any
other special fund or account to be maintained from Revenues, so long as the payments from Revenues or from such
other special fund or account shall be made junior and subordinate to the payment of the principal of and interest on the
Bonds to all payments for Operating Expenses or required to be made to the Bond Account by the provisions of Section
13 hereof and to the Capital Improvement Account by the provisions of Section 16 hereof; and (b) which are secured as
to principal, premium, if any, and interest, or if payable from another special fund or account (as aforesaid) the payments
into which other special fund or account are secured, by a lien and charge on Revenues and the moneys in the Electric
System Fund junior and inferior to the lien and charge thereon of the Bonds, which lien shall also be junior and inferior
to the payments to be made from Revenues and the Electric System Fund for Operating Expenses, to provide for the
payment of the Bonds, including the payments to be made into the Bond Account for credit to the Series 2013 Reserve
Sub-Account and any reserve sub-account established for Additional Bonds therein and the Capital Improvement
Account.
Nothing in this Ordinance shall prevent the City from authorizing and issuing bonds, notes, warrants,
certificates or other obligations or evidences of indebtedness, other than Bonds, to acquire or construct facilities for the
generation, transmission or distribution of electric power and energy, which facilities shall be a separate electric utility
system (separate and apart from the Electric System) and which bonds or other obligations or evidences of indebtedness
shall not be a charge upon or payable from the Revenues but shall be payable solely from the revenues or other income
derived from the ownership or operation of such separate electric system.
Section 15. Depositories, the Trustee, the Paying Agents. All moneys in the Electric System Fund shall be
deposited in the name of the City in banks and trust companies selected by the City as depositaries. All moneys
deposited with any depositary at any time shall be secured in the manner then prescribed by the laws of the State of
Nebraska for the securing of funds of the City.
The Trustee may be removed for cause at the request of and upon the affirmative vote of the holders of more
than fifty percent (50%) of the principal amount of Bonds Outstanding. In the event of the removal, resignation,
disability or refusal to act of the Trustee, a successor may be appointed by the holders of more than fifty percent (50%)
Grand Island Council Session - 10/22/2013 Page 86 / 198
ORDINANCE NO. 9456 (Cont.)
of the principal amount of Bonds Outstanding, excluding any Bonds held by or for the account of the City, and such
successor shall have all the powers and obligations of the Trustee under this Ordinance theretofore vested in its
predecessor, or in any Bondholders' Committee created under Section 18 hereof, provided, that unless a successor
Trustee shall have been appointed by the holders of Bonds as aforesaid, the City by a duly adopted ordinance shall
forthwith appoint an interim Trustee to fill such vacancy until a successor Trustee shall be appointed by the holders of
Bonds as authorized in this Section 15. Any interim Trustee appointed by the City shall, immediately and without
further act, be superseded by the successor Trustee appointed by the holders of Bonds.
Any company into which the Trustee may be merged or with which it may be consolidated or any company
resulting from any merger or consolidation to which it shall be a party or any company to which the Trustee may sell or
transfer all or substantially all of its corporate trust business shall, upon the consummation of such merger, consolidation,
sale or transfer, become successor Trustee, provided such company otherwise qualifies for the office as provided in this
Section 15.
The Trustee may at any time resign and be discharged of its duties and obligations under this Ordinance by
giving not less than sixty (60) days' written notice to the City and mailing notice thereof to all registered owners of the
Bonds and such resignation shall take effect upon the day specified in such notice unless previously a successor shall
have been appointed by the City or the Bondholders as above provided, in which event such resignation shall take effect
immediately on the appointment of such successor.
The Trustee is hereby appointed as the sole Paying Agent for all Bonds Outstanding under this Ordinance. The
appropriate accounts of the Bond Account shall be drawn upon by the Trustee for the purpose of paying the principal of
and premium, if any, and interest on the Bonds or transferring moneys to the Paying Agent for that purpose.
The duties and obligation of the Trustee appointed by or pursuant to the provisions of this Ordinance prior to
the occurrence of an Event of Default (hereinafter defined), and subsequent to the curing of such Event of Default, shall
be determined solely by the express provisions of this Ordinance, and such Trustee shall not be liable for any action of
any other trustee and shall not otherwise be liable except for the performance of its duties and obligations as specifically
set forth herein and to act in good faith in the performance thereof, and no implied duties or obligation shall be incurred
by such Trustee other than those specified herein, and such Trustee shall be protected when acting in good faith and upon
advice of counsel, who may be counsel to the City.
Grand Island Council Session - 10/22/2013 Page 87 / 198
ORDINANCE NO. 9456 (Cont.)
In case an Event of Default has occurred which has not been cured, such Trustee shall exercise such of the
rights and powers vested in it by this Ordinance and use the same degree of care and skill in the exercise thereof as a
prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. The Trustee
shall not be deemed to have knowledge of any Event of Default not known to such Trustee.
Subject to the provisions of this Section 15, the Trustee may conclusively rely, as to the correctness of the
statements, conclusions and opinions expressed therein, upon any certificate, report, opinion or other document furnished
to such Trustee pursuant to any provisions of this Ordinance. Except as otherwise expressly provided in this Ordinance,
any request, consent, certificate, demand, notice, order, appointment, or other direction made or given by the City to such
Trustee or the Paying Agent shall be deemed to have been sufficiently made or given by the proper party or parties if
executed on behalf of the City by its Mayor.
None of the provisions contained in this Ordinance shall require the Trustee to spend or risk its own funds or
otherwise incur individual financial responsibility in the performance of any of its duties or in the exercise of any of its
right or powers, if there are reasonable grounds for believing that the repayment thereof is not reasonably assured to it
under the terms of this Ordinance.
The Trustee and the Paying Agent shall be entitled to reasonable compensation for all services rendered by
them in the execution, exercise and performance of any of the powers and duties to be exercised or performed by the
Trustee and the Paying Agent, respectively, pursuant to the provisions of this Ordinance or any Series Ordinance, and the
City will pay or reimburse the Trustee and the Paying Agent upon request for all expenses, disbursements and advances
incurred or made by the Trustee or Paying Agent, as the case may be, in accordance with any of the provisions hereof
(including the reasonable compensation and expenses and disbursements of counsel for the Trustee, or Paying Agent, as
the case may be, and of any persons not regularly in the employ thereof). The Trustee shall be entitled to indemnity from
the City against any loss, liability or expense incurred on the part of the Trustee arising out of or in connection with the
acceptance or administration of the powers and duties of the trust created pursuant to the provisions of this Ordinance,
including the cost and expense of defending against any claim or liability in the premises, and, to the extent permitted by
law, the Trustee shall have a lien or claim for payment of such compensation, expenses and disbursements of counsel,
losses, liabilities and expenses prior to that of the holders of the Bonds upon any funds held by it under this Ordinance.
The Trustee shall not be responsible in any manner whatsoever for the correctness of the recitals, statements
and representations herein or in the Bonds, all of which are made by the City solely. The Trustee makes no
Grand Island Council Session - 10/22/2013 Page 88 / 198
ORDINANCE NO. 9456 (Cont.)
representation as to the value or condition of the Electric System, or any part thereof, or as to any addition or im-
provement to the Electric System, or as to the right, title and interest of the City in the Electric System or any addition or
improvement to the Electric System, or as to the lien created by this Ordinance, or as to the validity of this Ordinance or
of the Bonds issued hereunder, and the Trustee shall incur no liability or responsibility in respect of any such matters.
The Trustee shall not have any responsibility as to the amount of Bonds issued or Outstanding at any time.
In case at any time it shall be necessary or desirable for the Trustee to make any investigation respecting any
fact preparatory to taking or not taking any action or doing or not doing any thing, and in any case in which this
Ordinance provides for permitting or taking any action, the Trustee may rely upon any certificate required or permitted to
be filed with it under the provisions of the Ordinance, and any such certificate shall be evidence of such fact to protect it
in any action that it may or may not take or in respect of any thing it may or may not do, by reason of the supposed
existence of such fact.
The Trustee and its directors, officers, employees or agents, may in good faith buy, sell, own and hold any of
the Bonds issued under the provisions of this Ordinance, and may join in any action which any Bondholder may be
entitled to take with like effect as if such Trustee were not the Trustee under the Ordinance. The Trustee may in good
faith hold any other form of indebtedness of the City; own, accept or negotiate any drafts, bills of exchange, acceptance
or obligations thereof; make disbursements therefor and enter into any commercial or business arrangement therewith.
The Trustee shall not be deemed to have any conflict of interest solely by reason of any such transaction.
Section 16. Covenants to Secure Bonds. The City covenants and agrees with the purchaser and registered
owners of the Bonds from time to time Outstanding under this Ordinance, that so long as any of the Bonds are
Outstanding hereunder:
(a) Within one hundred twenty (120) days after the end of each Fiscal Year, beginning with
the Fiscal Year ending September 30, 2013, so long as any Bonds shall be Outstanding, the City will
withdraw from the Electric System Fund for deposit in the Capital Improvement Account, an amount
at least equal to ten percent (10%) of the average annual Operating Revenues for the preceding three
Fiscal Years after deducting therefrom “fuel” expense and “purchased power expense,” as such
expenses are determined in accordance with the Uniform System of Accounts. Amounts deposited in
the Capital Improvement Account shall be expended by the City for replacements, improvements,
enlargements, extensions and betterments of the Electric System, and such amounts, at the option of
the City, shall (a) be expended within two years as of the date of deposit therein for said purposes, or
if not so expended within said two (2) years, shall be used for the purchase or cancellation or
redemption of Bonds in advance of maturity, or (b) be used as promptly as possible to purchase and
cancel or to redeem Bonds in advance of maturity.
Moneys held in the Capital Improvement Account shall, to the fullest extent practicable and
reasonable, be invested by the City in Investment Securities which shall mature prior to the respective
dates when the moneys held for the credit of such Account will be required for the purposes intended.
Grand Island Council Session - 10/22/2013 Page 89 / 198
ORDINANCE NO. 9456 (Cont.)
All income resulting from the investment or reinvestment of such moneys shall accrue to and become
a part of the Capital Improvement Account, except that the City, at its option, may transfer such
income to the other accounts and sub-accounts within the Electric System Fund in the order
established in Section 13 hereof. In the event that income resulting from the investment or
reinvestment of moneys held in the Capital Improvement Account is retained therein, the obligation of
the City, with respect to the Fiscal Year in which such income is paid to the City to deposit moneys
into the Capital Improvement Account pursuant to the first sentence of this Section, shall be reduced
by an amount equal to the income resulting from such investment or reinvestment.
(b) The City will fix, establish and collect or cause to be fixed, established and collected
rates, tolls, rents and other charges for electric energy, and all other commodities, services and
facilities sold, furnished or supplied through the properties of the Electric System or any part thereof,
adequate to provide Revenues sufficient to pay the principal of and premium, if any and interest on all
Bonds Outstanding, to make the payments required by this Ordinance to the Bond Account, when due,
to pay the costs of proper operation and maintenance of the properties of the Electric System,
including provision for all necessary repairs, replacements and renewals thereof and working capital
necessary for the operation thereof, to enable the City to make in each Fiscal Year the payments or
expenditures required by Section 16(a) hereof and to pay all other charges and liens whatsoever
payable from said Revenues including payments in lieu of taxes referred to in Section 13, FOURTH.
(c) The City will duly and punctually pay, or cause to be paid, but only from the Revenues,
the principal of and premium, if any, and interest on each and every Bond on the dates and at the
places, and in the manner provided in the Bonds according to the true intent and meaning thereof, and
will faithfully do and perform and at all times fully observe and keep any and all covenants,
undertakings, stipulations and provisions contained in the Bonds and in this Ordinance and any Series
Ordinance.
(d) The City will not at any time create or permit to accrue or to exist any lien or other
encumbrance upon the Revenues pledged hereby, or upon any Revenues at any time derived by the
City through the operation by it of the properties of the Electric System or upon any other moneys
pertaining to the Electric System which the City may be authorized by applicable law to apply to the
payment of the Bonds or upon any funds or accounts pertaining to the Electric System at any time
held by the City, or by any Paying Agent, the Trustee, or any depositary for the Electric System Fund,
or upon the properties of the Electric System, or any part thereof, unless adequate provision is made in
the agreement, mortgage, ordinance, indenture, or other instrument creating such lien or other
encumbrance or indebtedness, or otherwise, so that the Bonds shall constitute a lien upon all such
Revenues, moneys, funds and other property, prior to any such subsequent lien or other encumbrance
or indebtedness.
(e) The City will not sell, lease or otherwise dispose of all or any part of the properties of the
Electric System (except such equipment, materials or supplies as may be acquired for the purpose of
resale, and such machinery, equipment, tools or other property, real or personal, which shall be or
shall have become unserviceable, inadequate, obsolete, worn out, unfit or unadapted for use in
connection with the operations of any Facility, or no longer necessary or useful in such operations),
for a consideration other than money, and if payment thereof be deferred the City shall retain a prior
lien or charge on the income and revenues from the property sold, leased or otherwise disposed of
until payment of such consideration, plus the costs and expenses of the City in servicing such deferred
payment sales, is made in full. Prior to any such sale, lease or other disposition the City shall cause an
appraisal of the property to be sold, leased or otherwise disposed of to be made by the Consulting
Engineer and filed with the City Clerk of the City and the Trustee; provided, however, that no such
appraisal shall be required for any sale of property for less than Two Hundred Fifty Thousand Dollars
($250,000). The City further covenants and agrees that no such sale, lease or other disposition of such
property shall be made until seven (7) days after the date of such filing, or at a price less than the value
as shown by such appraisal, or in any event for such amounts or on such terms as will impair or
destroy the ability of the City to continue to operate the portion of the properties of the Electric
System remaining under the possession, control and operation of the City in an efficient manner, or to
Grand Island Council Session - 10/22/2013 Page 90 / 198
ORDINANCE NO. 9456 (Cont.)
collect and receive therefrom directly or indirectly Revenues sufficient in amount to provide for the
required payments into the Bond Account and for all necessary and proper expenses to be thereafter
incurred in the operation and maintenance of the properties of the Electric System remaining in the
City, the proper renewal, replacement, extension and betterment of said remaining properties, the
payments and expenditures required by Section 13 FIRST and SECOND hereof, the payment of the
cost of all power purchased by the City and distributed through the Electric System and all other
charges or liens of whatever nature payable from Revenues.
The proceeds of any sale, lease or other disposition of all or any portion of the properties of
the Electric System pursuant to this subsection 16(e), shall be placed in the Electric System Fund and
shall be applied promptly first to make up any deficiency then existing in the Bond Account. Any
balance remaining thereafter shall be disposed of as follows:
(i) To the extent that such balance represents the proceeds of any sale, lease or
other disposition of such properties other than cash sales or advance payments on account of
leases or installment sales, such balance may be used for any of the purposes for which other
moneys in the Electric System Fund may be used;
(ii) To the extent that such balance represents the proceeds of any cash sale or any
advance payment on account of a lease or installment sale, such balance shall be used for the
purpose of making extensions, betterments or capital improvements to the properties of the
Electric System, and any sums not so used shall be used for the purpose of retiring Bonds by
purchase or redemption.
In the event that the proceeds of any cash sale or any advance payment on amount of a lease or
installment sale pursuant to this subsection 16(e), any moneys received by the City as a result of the
transfer of any properties of the Electric System from the City through the operation of law as
provided by the next to last paragraph of this Section, or moneys in the Capital Improvement Account
or otherwise required pursuant to Section 16(a) hereof to be used to retire Bonds, are to be applied to
the purchase or redemption of Bonds, and if more than one series of Bonds shall then be Outstanding
hereunder, the City shall determine from which series such purchases or redemptions shall be made
and may elect that all such purchases or redemptions shall be made from only one series or from more
than one series. Any such purchases of Bonds may be made with or without tenders of Bonds and at
either public or private sale, but in any event at a purchase price (including accrued interest and any
brokerage or other charge) not to exceed the principal amount thereof, the then applicable redemption
premium if the Bonds to be purchased are then subject to redemption or the applicable redemption
premium payable on their next ensuing redemption date if the Bonds being purchased are not then
subject to redemption, plus accrued interest. All Bonds so purchased or redeemed shall be cancelled
and not reissued. Any moneys which are to be applied to the redemption of Bonds shall, prior to such
redemption, be transferred to and deposited in the Bond Account to the credit of the appropriate
account therein.
The term “cash sales” as used in this Ordinance shall mean the disposition of property of the
Electric System and the transfer of the title thereto upon payment of the purchase price therefor in full
at the time of such transfer.
The term “installment sales” as used in this Ordinance shall mean the sale of property of the
Electric System and the transfer of title thereto under a contract or other agreement whereby the
purchase price of the property is to be paid in installments over a period of years.
In the event that the ownership of the properties of the Electric System, or any part thereof,
shall be transferred from the City through the operation of law, any moneys received by the City as a
result of any such transfer shall be paid into the Electric System Fund and shall be used for the
purpose of making extensions, betterments, or capital additions to the remaining part of the Electric
System or shall be used to purchase or redeem Bonds.
Grand Island Council Session - 10/22/2013 Page 91 / 198
ORDINANCE NO. 9456 (Cont.)
Nothing contained in this subsection 16(e) shall prevent the City from creating a separate
electric utility system as permitted under Section 14 hereof.
(f) The City will at all times maintain, preserve and keep, or cause to be maintained,
preserved and kept, the properties of the Electric System and all additions and betterments to and
extensions of the said properties, and every part and parcel thereof, in good repair, working order and
condition, and will from time to time make or cause to be made all necessary and proper repairs,
renewals, replacements, extensions and betterments thereto so that at all times the business carried on
in connection therewith may be properly and advantageously conducted, and the City shall at all times
operate or cause to be operated said properties of the City and the business in connection therewith in
an efficient manner and at a reasonable cost.
(g) The City will from time to time duly pay and discharge, or cause to be paid and dis-
charged, all taxes, assessments and other governmental charges, or payments in lieu thereof, lawfully
imposed upon the properties constituting the Electric System or upon Revenues or income received
therefrom when the same shall become due, as well as all lawful claims for labor, material and
supplies, which, if not paid, might become a lien or charge upon the said properties or any part
thereof, or upon Revenues derived from the operation thereof, or which might in any way impair the
security of the Bonds, except any such assessments, charges or claims which the City shall in good
faith contest as to validity by appropriate legal proceedings.
(h) The City will keep, or cause to be kept, its Facilities insured and will carry such other
insurance, with responsible insurers with policies payable to the City, against fire and other risks,
accidents or casualties at least to the extent and of the kinds that insurance is usually carried by
corporations operating like properties in the same area. The City will, with respect to each such loss,
(a) promptly repair and reconstruct, to the extent necessary to the proper conduct of the operations of
the Electric System, the damaged or lost Facility (unless the Facility so lost or damaged was carried in
the books and accounts of the Electric System at less than Two Hundred Fifty Thousand Dollars
($250,000) and unless, in the case of loss or damage involving Two Hundred Fifty Thousand Dollars
($250,000) or more, such repair and reconstruction shall not be recommended by the Consulting
Engineer), and shall apply the proceeds of any insurance covering such damage or loss for that
purpose to the extent required therefor, and (b) if the City should not use the entire proceeds of such
insurance to repair or reconstruct such damaged or lost Facility, the proceeds of such insurance, or any
portion thereof not required for such repair or reconstruction, as the case may be, shall be paid into the
Electric System Fund, and shall be applied promptly to make up any deficiency then existing in the
Bond Account. If the proceeds of such insurance not required for such repair or reconstruction are in
excess of Five Hundred Thousand Dollars ($500,000), such excess insurance proceeds shall be used
for the purpose of purchasing or redeeming Bonds in accordance with Section 7 hereof, or during a
period of two (2) years following the receipt thereof, for extensions, betterments and improvements to
the Electric System. Within sixty (60) days after the close of each Fiscal Year the City will file with
the Trustee a certificate of the Director of Utility Operations or the Consulting Engineer describing in
reasonable detail the insurance then in effect pursuant to the requirements of this subsection 16(h) and
all reserves therefor and stating that such insurance and reserves thereof comply in all respects with
such requirements. Such certificate shall be conclusive, and the Trustee shall have no duty or
responsibility with respect thereto except to make the same available for inspection by any holder of
Bonds, upon request.
(i) The City will not make any extensions, betterments or improvements to the Electric
System which are not economically sound and which will not properly and advantageously contribute
to the conduct of the business of the Electric System in an efficient and economical manner unless
required to do so by or pursuant to law to permit the continued operation of the Electric System, and
will at all times maintain for the operation and maintenance of the Electric System an adequate
management and supervisory staff, the personnel of which is experienced and skilled in the operation
and maintenance of electric generation, transmission and distribution properties, and business
incidental thereto.
Grand Island Council Session - 10/22/2013 Page 92 / 198
ORDINANCE NO. 9456 (Cont.)
(j) The City will keep, or cause to kept, proper books of account in accordance with the
Uniform System of Accounts and this Ordinance. The City will cause said books of account to be
audited annually as of the end of each Fiscal Year, beginning with the Fiscal Year ending September
30, 2013, by a recognized firm of independent certified public accountants, and will annually within
one hundred twenty (120) days after the close of such Fiscal Year and each Fiscal Year thereafter, file
or cause to be filed with the Trustee copies of its annual report, accompanied by a certificate of such
independent public accountant, relating to the Electric System and including the following statements
in reasonable detail:
(i) a balance sheet of the Electric System as of the end of the preceding Fiscal
Year;
(ii) a statement of income and equity of the Electric System for such Fiscal Year,
including a statement of Revenues, Operating Revenues and Operating Expenses of
the Electric System for such Fiscal Year;
(iii) a summary with respect to each fund, account and sub-account continued or
created under this Ordinance, the receipts therein and disbursements therefrom
during such Fiscal Year and the amount held therein at the end of such Fiscal Year;
(iv) a letter from the independent public accountant stating whether anything came
to their attention during their examination that would indicate that the City was not
in compliance with the covenants, agreements and conditions contained in
Ordinance; and
(v) a statement of Net Receipts of the Electric System for such Fiscal Year.
The Trustee shall have no duty or responsibility with respect to such certificate or annual reports,
except to furnish copies thereof to any registered owner of Bonds upon request, and the City shall
furnish to the Trustee sufficient copies for that purpose.
(k) The City shall, until the Date of Commercial Operation of any Facility for the generation
of electric power and energy for which Bonds are authorized hereunder, retain a nationally recognized
independent engineer or engineering firm or corporation having a reputation for skill and experience
in the design of facilities for the generation of electric power and energy and estimating the cost
thereof, to design and inspect the construction of such Facility, to prepare the cost estimates and to
perform the other acts and carry out the other duties provided for the Construction Engineer for such
Facility by this Ordinance.
(l) The City shall, as long as any of the Bonds are Outstanding, retain a competent
consulting engineer or engineering firm on a continuous basis for the purpose of providing to the City
immediate and continuous engineering counsel in its operation of the properties of the Electric
System. Such consulting engineer or engineering firm shall be selected with special reference to his
or its knowledge and experience in the construction and operation of electric utility systems and may
be the Construction Engineer employed by the City in connection with a Facility. The City may also
employ the Consulting Engineer as provided in this Section, for making inventories of any of the
properties of the Electric System, for preparing valuations of all or any part of the properties thereof,
and for testifying before any board, commission or other tribunal in matters or proceedings involving
the operations and properties of the Electric System. The expenses and fees for any services
performed in connection with the Electric System are to be paid out of the Electric System Fund. As a
part of such service, the Consulting Engineer shall prepare as of the end of the Fiscal Year ending
September 30, 2013, and biennially thereafter a report or survey with respect to the Electric System,
the management of the business thereof, and the operation and maintenance of the properties thereof,
each such report or survey to be in sufficient detail so as to show whether the City has satisfactorily
performed and complied with the covenants set forth in this Ordinance with respect to the efficient
management of the properties of the Electric System, and its business, the rates charged for services
Grand Island Council Session - 10/22/2013 Page 93 / 198
ORDINANCE NO. 9456 (Cont.)
and the sufficiency thereof under the requirements of this Ordinance, the proper maintenance of the
properties of the Electric System, and the making of necessary repairs, renewals and replacements
thereto and thereof, necessity for capital improvements and recommendations in connection therewith,
and if the City shall have in any way failed to perform or comply with such covenants and
agreements, such report or survey shall specify the details of such failure. In the making of such
report or survey, the Consulting Engineer may rely on the certified statements of the Independent
Accountant and on the opinions of other engineers or engineering firms or corporations to the extent
the Consulting Engineer deems such reliance proper. Each such report or survey shall also include
information with respect to sufficiency of power supply and the equity or reasonableness of contracts
and rates in connection therewith. Copies of each such report and survey shall be placed on file with
the City and with the Trustee, and shall be open to inspection by any holder of Bonds.
In the event of any loss or damage to the properties of the City in excess of Two Hundred
Fifty Thousand Dollars ($250,000), whether or not covered by insurance, the Consulting Engineer
shall ascertain the amount of damage and shall issue and deliver to the City and the Trustee a
certificate setting forth such damages and recommendations as to whether or not to replace such
property.
In the event that the properties of the Electric System or any part thereof shall be sold, leased,
or otherwise disposed of for a consideration of Two Hundred Fifty Thousand Dollars ($250,000) or
more, the Consulting Engineer, prior to any such sale, lease, or other disposition of the properties,
shall make an examination of the properties to be leased, sold, or otherwise disposed of and shall issue
and deliver to the City and the Trustee a certificate setting forth the value of such properties, taking
into consideration the loss of Revenues sustained by the properties remaining as a result of such sale,
lease, or other disposition, and also setting forth an estimate of Revenues to be derived from operation
of the remaining properties and the sufficiency thereof in terms of the requirements of this Ordinance.
The Trustee shall have no duty or responsibility with respect to any of the foregoing
documents prepared by the Consulting Engineer, except to make the same available for inspection by
any holder of Bonds, upon request.
(m) The City will not permit or allow franchises, permits, privileges, easements or other
rights necessary or desirable in the operation of the properties of the Electric System to lapse or to be
forfeited so long as the same shall be necessary or desirable for said purposes, and will from time to
time take reasonable steps to secure the renewal of all such franchises, permits, privileges, easements
and rights at the expiration thereof if the same shall expire prior to the maturity of all Bonds then
Outstanding. The City shall file all statements, maps and other documents regarding its service area
and customers as may be required by law to protect and preserve such area.
(n) The City will as permitted by law require all employees or agencies of the City
collecting or handling money in connection with the operation of the properties of the Electric System
to obtain fidelity bonds with a responsible surety company or companies as surety, in reasonable
amounts permitted by law and usually retained by municipalities operating like systems.
(o) The City will not furnish or supply or permit the furnishing or supplying of electric
energy or any other commodity, service or facility through or in connection with the operation of the
properties of the Electric System free of charge to any person, firm or corporation, public or private,
so long as any of the Bonds are Outstanding, unless required so to do by the terms of an existing
contract or franchise with a political subdivision of the State.
(p) The City will not hereafter enter into any lease, contract, or agreement (except for cash
sales as defined in subsection 16(e) hereof) in and by which the possession, operation, management,
or control of any Facility, or any part thereof, are transferred to any person, firm or corporation, or any
municipality or other public agency, except subject to all the terms, conditions, covenants and
agreements in this Ordinance and in any Series Ordinance and in any Bonds contained (including
without limiting the generality of the foregoing, the provisions of subsection 16(f) hereof), and upon
Grand Island Council Session - 10/22/2013 Page 94 / 198
ORDINANCE NO. 9456 (Cont.)
the further conditions (a) that all payments required to be made to or for the account of the City
thereunder shall be a prior charge and lien upon the gross revenues to be derived from the operation of
the properties covered by such lease, contract or other agreement; (b) that the Trustee or any Bond-
holders’ Committee, created as hereinafter provided, representing the holders of Bonds may, in its
name or in the name of the City, enforce the obligations of the parties to any such lease, contract or
agreement to the same extent that such obligations may be enforced by the City; and (c) that neither
party to such lease, contract or agreement will at any time insist upon or plead or in any manner
whatsoever claim to take the benefit or advantage of any stay or extension law now or at any time
hereafter in force which may affect the covenants and agreements contained in any such lease,
contract or agreement, and in this Ordinance, any Series Ordinance or in the Bonds, but all benefit or
advantage of any such law or laws shall be therein expressly waived by the said parties. The City
further covenants that any such lease, contract or agreement shall contain reasonable provisions for the
enforcement of the same in the event of a default in the performance of any of the provisions thereof,
or in the event of a material violation by either party thereto of any of the covenants or agreements
contained in this Ordinance, any Series Ordinance or in the Bonds.
The City further covenants and agrees that no lease or sale of any portion of any facility,
including any lease or sale made pursuant to subsection 16(e) hereof but exclusive of any lease or sale
of equipment, materials or supplies as may be acquired for the purposes of resale and such machinery,
equipment, tools or other property, real or personal which shall be or shall become unserviceable,
inadequate, obsolete, worn out, unfit or unadapted for use in connection with the operations of any
Facility, or no longer necessary or useful in such operations, shall be made where the total
consideration therefor is not paid at the time of transfer of the possession of such property, unless the
contract of sale or lease shall contain covenants or agreements reserving to the City the following
rights and privileges, to-wit:
(i) The City shall have the right to make an inspection of any such properties so
sold or leased at such times as the City shall deem necessary, the reasonable cost of
such inspection to be paid from the operating funds of such properties so sold or
leased;
(ii) The City shall have the right to approve an independent public accounting firm
to be used for the annual audit of the books of any such properties so sold or leased
and to supervise the accounting procedure with reference thereto;
(iii) The City, shall have the right to require that monthly progress reports showing
such details as the City may request will be rendered to the City by the operators of
any such properties so sold or leased, such reports to include as a minimum the
following:
(y)A report, by type and class of service, of the, number of
customers receiving service, the total kilowatt hour sales thereto, total
revenues therefrom, operating and maintenance expenses in reasonable
detail, new construction and progress thereof, new business added, rate
changes with estimates of annual revenue changes occasioned thereby, a
balance sheet, and cash income and disbursement statements; and
(z)Explanations, accompanying such reports, of any unusual
occurrences relative to the properties and the condition thereof.
Nothing contained in this subsection 16(p) shall prevent the City from creating a separate electric
utility system as permitted under Section 14 hereof.
(q) At any and all times the City shall, so far as it may be authorized by law, pass, make, do,
execute, acknowledge and deliver all and every such further resolution, acts, deeds, conveyances,
assignments, transfers and assurances as may be necessary or desirable for the better assuring,
Grand Island Council Session - 10/22/2013 Page 95 / 198
ORDINANCE NO. 9456 (Cont.)
conveying, granting, assigning and confirming all and singular the rights, Revenues and other funds,
accounts and sub-accounts hereby pledged or assigned, or intended so to be, or which the City may
hereafter become bound to pledge or assign.
Section 17. Supplemental Ordinances. The City may adopt at any time and from time to time and without
the consent or concurrence of the registered owner of any Bond, an ordinance or ordinances supplemental to this
Ordinance for any one or more of the following purposes, and any such supplemental ordinance or ordinances shall
become effective in accordance with its terms upon the filing with the Trustee of a certified copy thereof and the opinion
of counsel for the City that such supplemental ordinance has been duly adopted, the provisions thereof are valid and
binding upon the City, and the provisions thereof do not adversely affect the rights of the holders of Bonds then
outstanding, to wit:
(a)To provide for the issuance of Additional Bonds pursuant to Section 14 hereof, and to
prescribe the terms and conditions pursuant to which such Bonds may be issued, paid or redeemed;
(b)To make any changes, modifications, amendments or deletions hereto which may be
required to permit the Ordinance to be qualified under the Trust Indenture Act of 1939 of the United States of
America or laws analogous thereto applicable to governmental bodies;
(c)To add additional covenants and agreements of the City for the purpose of further securing
the payment of the Bonds; provided, that such additional covenants and agreements are not contrary to or
inconsistent with the covenants and agreements of the City contained in this Ordinance;
(d)To prescribe further limitations and restrictions upon the issuance of Bonds and the incurring
of indebtedness by the City payable from the Revenues which are not contrary to or inconsistent with the
limitations and restrictions thereon theretofore in effect;
(e)To surrender any right, power or privilege reserved to or conferred upon the City by the
terms of this Ordinance;
(f)To confirm as further assurance any pledge under, and the subjection to, any lien, claim or
pledge created or to be created by the provisions of this Ordinance of Revenues or of any other moneys,
securities or funds;
(g)To modify any of the provisions of this Ordinance in any other respects; provided, that such
modification shall not be effective until after the Bonds Outstanding as of the date of adoption of such
ordinance shall cease to be Outstanding, and any Bonds issued after the date of adoption of such ordinance shall
contain a specific reference to the modifications contained in such subsequent ordinance; or
(h)With consent of the Trustee, to cure any ambiguity or defect or inconsistent provision in this
Ordinance or to insert such provisions clarifying matters or questions arising under this Ordinance as are
necessary or desirable in the event an, such modifications are not contrary to or inconsistent with this ordinance
as theretofore in effect.
The provisions of this Ordinance may be modified at any time or from time to time by a Supplemental Ordinance,
subject to the consent of Bondholders in accordance with and subject to the provisions of Section 19 hereof, such
resolution to become effective as provided in said Section 19.
Grand Island Council Session - 10/22/2013 Page 96 / 198
ORDINANCE NO. 9456 (Cont.)
No ordinance changing, amending or modifying any of the rights or obligations of the Trustee or any other
fiduciary may be adopted by the City or be consented to by the Bondholders without the written consent of such Trustee
or fiduciary. The Trustee is hereby authorized to accept the delivery of certified copies of any ordinance amending the
provisions of this Ordinance and shall be fully protected in relying upon a certification by the City Clerk that such
ordinance has been adopted in full compliance with the terms and provisions of this Ordinance.
Section 18. Defaults and Remedies. The following shall constitute “Events of Default”:
(a)If the City shall default in the performance of any obligation with respect to payments into
the Electric System Fund;
(b)If default shall be made in the due and punctual payment of the principal of and premium, if
any, on any of the Bonds when the same shall become due and payable, either at maturity or by proceedings for
redemption or otherwise,
(c)If default shall be made in the due and punctual payment of any installment of interest on any
Bond, or any sinking fund installment for Bonds when and as such installment of interest or sinking fund
installment shall become due and payable;
(d)If the City shall default in the observance and performance of any other of the covenants,
conditions and agreements on the part of the City contained in this Ordinance and such default or defaults shall
have continued for a period of ninety (90) days;
(e)If the City shall (except as herein permitted) sell, transfer, assign or convey any properties
constituting the Electric System or interests therein, or any part or parts thereof, or shall make any agreement
for such sale or transfer (except as expressly authorized by this Ordinance), or shall voluntarily forfeit or allow
any of its licenses, franchises, permits, privileges, easements or rights of way necessary or desirable in the
operation of the Electric System to lapse or terminate prior to the expiration date thereof by neglect or default;
(f)If an order, judgment or decree shall be entered by any court of competent jurisdiction (i)
appointing a receiver, trustee or liquidator for the City, or the whole or any substantial part of the Electric
System, (ii) approving a petition filed against the City under the provisions of Chapter 9 of the United States
Bankruptcy Code, (iii) granting relief to the City under any amendment to said Bankruptcy Code which shall
give relief substantially similar to that afforded by said Chapter 9 or (iv) assuming custody or control of the
City or of the whole or any substantial part of the Electric System under the provision of any other law for the
relief or aid of debtors and such order, judgment or decree shall not be vacated or set aside or stayed (or, in case
custody or control is assumed by said order, such custody or control shall not be otherwise terminated), within
sixty (60) days from the date of the entry of such order, judgment or decree; or
(g)If the City shall (i) admit in writing its inability to pay its debts generally as they become
due, (ii) file a petition in bankruptcy or seeking a composition of indebtedness, (iii) make an assignment for the
benefit of its creditors, (iv) consent to the appointment of a receiver of the whole or any substantial part of the
Electric System, (v) file a petition or an answer seeking relief under any amendment to said Bankruptcy Code
which shall give relief substantially the same as that afforded by said Chapter 9, or (vi) consent to the
assumption by any court of competent jurisdiction under the provisions of any other law for the relief or aid of
debtors of custody or control of the City or of the whole or any substantial part of the Electric System.
The City covenants that if an Event of Default shall have happened and shall not have been remedied, the books of
record and account of the City and all other records relating to the Electric System shall at all times be subject to the
Grand Island Council Session - 10/22/2013 Page 97 / 198
ORDINANCE NO. 9456 (Cont.)
inspection and use of the Trustee and any persons holding at least twenty-five percent (25%) of the principal amount of
Bonds Outstanding and of their respective agents and attorneys.
The City covenants that if an Event of Default shall happen and shall not have been remedied, the City will
continue to account, as a trustee of an express trust, for all Revenues and other moneys, securities and funds pledged
under this Ordinance.
If an Event of Default specified in subsections (b), (c), (f) or (g) of this Section 18 shall have occurred and be
continuing, then the Trustee or a Bondholders' Committee, as the case may be, may by notice in writing delivered to the
City and to the Trustee, declare the principal of all Bonds then Outstanding and the interest accrued thereon immediately
due and payable, and such principal and interest shall thereupon become and be immediately due and payable; provided,
however, that such declaration may be annulled by the Trustee or the Bondholders' Committee, as the case may be, if
such an Event of Default is no longer continuing.
The City covenants that if an Event of Default shall happen and shall not have been remedied, the City upon
demand of the Trustee, shall pay over to the Trustee (a) forthwith, all moneys, securities and funds then held by the City
and pledged under this Ordinance and (b) as promptly as practicable after receipt thereof, all Revenues.
During the continuance of an Event of Default, Revenues received by the Trustee, or Bondholders' Committee,
as the case may be, whether pursuant to the provisions of the preceding paragraph, or as the result of taking possession of
the business and properties of the Electric System, shall be applied by the Trustee or Bondholders' Committee, as the
case may be, first to the payment of all necessary and proper Operating Expenses and all other proper disbursements or
liabilities made or incurred by the Trustee, or Bondholders' Committee, as the case may be, and thereafter to the payment
of all arrears of interest on the Bonds, so far as such Revenues will go, or to the payment pro rata of the interest due on
the Bonds when there is not enough to pay in full all the interest, and, after the payment of interest as aforesaid, to the
payment of the principal of the Bonds which by the terms thereof shall be due and payable, or to the payment pro rata of
such principal when the moneys are not sufficient to pay all such principal in full.
If and whenever all overdue installments of interest on all Bonds, together with the reasonable and proper
charges, expenses and liabilities of the Trustee and the holders of Bonds, their respective agents and attorneys, and all
other sums payable by the City under the Ordinance including the principal and premium, if any, and interest on all
Bonds which shall then be payable, shall either be paid in full by or for the account of the City, or provision satisfactory
to the Trustee shall be made for such payment, and all defaults under this Ordinance or the Bonds shall be made good or
Grand Island Council Session - 10/22/2013 Page 98 / 198
ORDINANCE NO. 9456 (Cont.)
secured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate shall be made therefor, the
Trustee, or the Bondholders' Committee, as the case may be, shall pay over to the City all moneys, securities, funds and
Revenues then remaining unexpended in the hands of the Trustee or the Bondholders' Committee, as the case may be
(except moneys, securities, funds or Revenues deposited or pledged, or required by the terms of this Ordinance to be
deposited or pledged, with the Trustee), control of the Electric System shall be restored to the City, and thereupon the
City and the Trustee shall be restored, respectively, to their former positions and rights under this Ordinance, and all
Revenues shall thereafter be applied as provided in Section 13. No such payment over to the City by the Trustee or
resumption of the application of Revenues as provided in Section 13, shall extend to or affect any subsequent default
under this Ordinance or impair any right consequent thereon.
If an Event of Default shall happen and shall not have been remedied, then and in every such case, the Trustee,
either in its own name or as trustee of an express trust, or as attorney in fact for the registered owners of the Bonds or in
any one or more of such capacities, by its agents and attorneys, shall be entitled and empowered to proceed forthwith to
institute such suits, actions and proceedings at law, or in equity for the collection of all sums due in connection with the
Bonds and to protect and enforce its rights and the rights of the holders of the Bonds under this Ordinance for the specific
performance of any covenant herein contained, or in aid of the execution of any power herein granted, or for an
accounting against the City as trustee of an express trust, or in the enforcement of any other legal or equitable right as the
Trustee, being advised by counsel, shall deem most effectual to enforce any of its rights, or to perform any of its duties
under the Ordinance. The Trustee shall be entitled and empowered either in its own name or as a trustee of an express
trust, or as an attorney in fact for the holders of the Bonds and the coupons appurtenant thereto, or in any one or more of
such capacities, to file such proof of debt, amendment of proof of debt, claim, petition or other document as may be
necessary or advisable in order to have the claims of the Trustee and of the holders of the Bonds allowed in any equity,
receivership, insolvency, bankruptcy, liquidation, readjustment, reorganization or other similar proceedings relative to
the City. For this purpose the Trustee is hereby irrevocably appointed the true and lawful attorney in fact of the
respective registered owners of the Bonds (and the successive registered owners of the Bonds by taking and holding the
same shall be conclusively deemed to have so appointed the Trustee) with authority to make and file in the respective
names of the registered owners of the Bonds any such proof of debt, amendment of proof of debt, claim, petition or other
document in any such proceedings, and to receive payment of any sums becoming distributable on account thereof, and
to execute any such other papers and documents and to do and perform any and all acts and things for and on behalf of
Grand Island Council Session - 10/22/2013 Page 99 / 198
ORDINANCE NO. 9456 (Cont.)
the registered owners of the Bonds as may be necessary or advisable in the opinion of the Trustee in order to have the
respective claims of the Trustee and of the holders of the Bonds allowed in any such proceedings and to receive payment
of and on account of such claims; provided, however, that nothing contained herein shall be deemed to give the Trustee
any right to accept or consent to any plan of reorganization or compromise or otherwise take any action of any character
in any such proceeding to waive or change in any way any right of any registered owner of Bonds.
All rights of action under this Ordinance may be enforced by the Trustee without the possession of any of the
Bonds or the production thereof at trial or other proceedings.
The registered owners of not less than a majority in principal amount of the Bonds at the time Outstanding, may
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, provided that the Trustee shall be provided with reasonable security and
indemnity and shall have the right to decline to follow any such direction only (a) if the Trustee shall be advised by
counsel that the action or proceeding so directed may not lawfully be taken; or (b) if the Trustee in good faith shall
determine that the action or proceeding so directed would involve the Trustee in personal liability or that the action or
proceeding so directed would be unjustly prejudicial to the holders of Bonds not parties to such direction.
At any time after the occurrence of an Event of Default and prior to the curing of such Event of Default, the
Trustee or the Bondholders' Committee, as a matter of right against the City, without notice or demand, and without
regard to the adequacy of the security for the Bonds, shall, to the extent permitted by law, be entitled to take possession
and control of the business and properties of the Electric System. Upon taking such possession, the Trustee or the
Bondholders' Committee shall operate and maintain the Electric System, make any necessary repairs, renewals and
replacements in respect thereof, prescribe rates and charges for power and energy sold, furnished or supplied through the
facilities of the Electric System and collect the Revenues. At any such time the Trustee or the Bondholders' Committee
shall be entitled to the appointment of a receiver of the business and property of the Electric System, the moneys,
securities and funds of the City pledged under this Ordinance, and the Revenues thereof, and the income therefrom, with
power to operate and maintain the Electric System, collect, receive and apply the Revenues thereof and prescribe rates,
tolls and charges in the same way as the City might do. Notwithstanding the appointment of any receiver, the Trustee
shall be entitled to retain possession and control of and to collect and receive income from any moneys, securities, funds
and Revenues deposited or pledged with it under this Ordinance or agreed or provided to be delivered to or deposited or
pledged with it under this Ordinance.
Grand Island Council Session - 10/22/2013 Page 100 / 198
ORDINANCE NO. 9456 (Cont.)
The Trustee may without the happening of an Event of Default and, at the request of the holders of not less than
a majority of the Bonds then Outstanding and upon being furnished with reasonable security and indemnity, shall take
such steps and institute such suits, actions or proceedings in its own name, or as trustee, or in the name of the City, all as
the Trustee may deem appropriate, for the protection and enforcement of the rights of the registered owners of Bonds, to
collect any amount due and owing the City, or by injunction, mandamus, foreclosure or other appropriate proceeding in
law and in equity to obtain other appropriate relief.
Except as otherwise specifically provided in this Section, no registered owner (or Beneficial Owner) shall have
any right to institute any suit, action or proceeding in equity or at law for the enforcement of any provision of this
Ordinance or the execution of any trust under this Ordinance or for any remedy under this Ordinance unless such
registered owner or owners (or Beneficial Owner or Owners) previously shall have given to the Trustee written notice of
the Event of Default, as provided in this Article on account of which such suit, action or proceeding is to be instituted,
and unless, also, the registered owners of not less than twenty percent (20%) in aggregate principal amount of the Bonds
then Outstanding shall have filed a written request with the Trustee after the right to exercise such powers or right of
action, as the case may be, shall have occurred, and unless, also, there shall have been offered to the Trustee reasonable
security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for a
period of sixty (60) days after the receipt by it of such notice, request and offer of indemnity shall have failed to proceed
to exercise such powers or to institute any such action, suit or proceeding, and no direction inconsistent with such written
request shall have been given to the Trustee pursuant to this Section 18; it being understood and intended that, except as
otherwise above provided, no one or more registered owners (or Beneficial Owners) of the Bonds shall have any right in
any manner whatsoever by his or their action to affect, disturb or prejudice the pledge created by this Ordinance, or to
enforce any right under this Ordinance except in the manner herein provided and that all proceedings at law or in equity
shall be instituted, had and maintained in the manner herein provided for the benefit of all of the registered owners of the
Outstanding Bonds.
Without limiting the generality of this Section 18, at any time after the occurrence of an Event of Default and
prior to the curing of such Event of Default, the registered owner or owners of not less than twenty percent (20%) in
principal amount of the Bonds then Outstanding may call a meeting of the registered owners of Bonds for the purpose of
electing a Bondholders' Committee. Such meeting shall be called and proceedings thereat shall be conducted as
provided for other meetings of Bondholders pursuant to Section 19 hereof. At such meeting the registered owner or
Grand Island Council Session - 10/22/2013 Page 101 / 198
ORDINANCE NO. 9456 (Cont.)
owners of not less than a majority of the principal amount of the Bonds then Outstanding must be present in person or by
proxy in order to constitute a quorum for the transaction of business, less than a quorum, however, having power to
adjourn from time to time without any notice other than the announcement thereof at the meeting. A quorum being
present at such meeting, the Bondholders present in person or by proxy may, by the votes cast by the registered owners
of a majority in principal amount of the Bonds, so present in person or by proxy, elect one or more persons who may or
may not be Bondholders to the Bondholders' Committee which shall act as trustee for all Bondholders. The Bondholders
present in person or by proxy at said meeting, or at any adjourned meeting thereof, shall prescribe the manner in which
the successors of the persons elected to the Bondholders' Committee at such Bondholders' meeting shall be elected or
appointed, and may prescribe rules and regulations governing the exercise by the Bondholders' Committee of the power
conferred upon it herein, and may provide for the termination of the existence of the Bondholders' Committee.
Notwithstanding the provisions of Section 19, the Bondholders' Committee may, with the consent of the registered
owners of not less than fifty percent (50%) of the principal amount of Bonds Outstanding, remove the Trustee. After the
removal of the Trustee pursuant to the provisions of this Section and prior to the appointment of a successor Trustee
pursuant to the provisions of Section 19 hereof, the members of the Bondholders' Committee elected by the Bondholders
in the manner herein provided, and their successors, as a committee will be deemed to be trustees for the holders of all
the Bonds then Outstanding, and may exercise in the name of the Bondholders' Committee as trustee, all the rights and
powers conferred in this Section 18 on the Trustee or any Bondholder.
Nothing in this Ordinance or in the Bonds shall affect or impair the obligations of the City, which is absolute
and unconditional, to pay, from the limited sources herein described, at the respective dates of maturity and places
therein expressed the principal of and premium, if any, and interest on the Bonds to the respective holders thereof, or
affect or impair the rights of action, which are also absolute and unconditional, of any holder to enforce the payment of
such holder’s Bond or Bonds or to reduce to judgment his claim against the City for the payment, from the limited
sources herein described, of the principal of and interest on such holder’s Bond or Bonds, without reference to or consent
of the Trustee or any other holder of Bonds.
No remedy by the terms of the Ordinance conferred upon or reserved to the Trustee or the registered owners of
the Bonds is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall
be in addition to every other remedy given under this Ordinance or existing at law or in equity or by statute on or after
the date of adoption of this Ordinance.
Grand Island Council Session - 10/22/2013 Page 102 / 198
ORDINANCE NO. 9456 (Cont.)
No delay or omission of the Trustee or of any registered owner of Bonds to exercise any right or power arising
upon the happening of an Event of Default shall impair any right or power or shall be construed to be a waiver of any
such Event of Default or to be an acquiescence therein; and every power and remedy given by this Article to the Trustee
or to the holder of Bonds may be exercised from time to time and as often as may be deemed expedient by the Trustee or
by such registered owners.
The registered owners of not less than sixty-six and two-thirds per cent (66-2/3%) in principal amount of the
Bonds at the time Outstanding, or their attorneys in fact duly authorized, may on behalf of the holders of all of the Bonds
waive any past default under this Ordinance and its consequences, except a default in the payment of the principal of and
premium, if any, and interest on any of the Bonds. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.
To the fullest extent permitted by law, the City agrees that the City will not at any time insist upon or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law now or at any time
hereafter in force which may affect the covenants and agreements contained in this Ordinance or in the Bonds, but all
benefit or advantage of any such law or laws is hereby expressly waived by the City.
The Trustee shall, within ninety (90) days after the occurrence of an Event of Default, give notice by mail to the
registered owners of all defaults known to the Trustee, unless such defaults shall have been cured before the giving of
such notice (the term “default” or “defaults” for the purpose of this Section being hereby defined to be any Event or
Events of Default specified in this Section 18); provided, that, except in the case of default in the payment of principal of
and premium, if any, and interest on any of the Bonds or in the payment of any sinking fund installment, the Trustee
shall be protected in withholding such notice if and so long as the board of directors, the executive committee, or a trust
committee of directors and/or responsible officers, of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Bondholders.
Section 19. Amendments and Bondholders' Meetings. The City, the Trustee or the registered owners of not
less than twenty percent (20%) in principal amount of the Bonds then Outstanding may at any time call a meeting of the
registered owners of the Bonds. Every such meeting shall be held at such place in the United States as may be specified
in the notice calling such meeting. Written notice of such meeting, stating the place and time of the meeting and in
general terms the business to be submitted, shall be mailed to the registered owners by the City, the Trustee or the
registered owners calling such meeting not less than thirty (30) nor more than sixty (60) days before such meeting. Any
Grand Island Council Session - 10/22/2013 Page 103 / 198
ORDINANCE NO. 9456 (Cont.)
meeting of registered owners shall, however, be valid without notice if the registered owners of all Bonds then
Outstanding are present in person or by proxy or if notice is waived before or within thirty (30) days after the meeting by
those not so present.
Except as otherwise provided in this Ordinance, any provision in this Ordinance for the mailing of a notice or
other paper to registered owners shall be fully complied with if it is mailed postage prepaid to each registered owner of
any of the Bonds then Outstanding at such owner's address appearing upon the registry books maintained by the Trustee.
Attendance and voting by registered owners at such meeting may be in person or by proxy. Registered owners
of Bonds may, by an instrument in writing under their hands appoint any person or persons, with full power of
substitution, as their proxy to vote at any meeting for them.
Officers or nominees of the City, and officers or nominees of the Trustee may be present or represented at any
such meeting and take part therein, but shall not be entitled to vote thereat, except as such officers or nominees are
registered owners or proxies for registered owners (including the Trustee).
Any registered owner of a Bond shall be entitled in person or by proxy to attend and vote at such meeting as
registered owner of the Bonds registered in such owner's name without producing such Bonds (unless the Bonds
described in such certificate shall be registered in the name of some other person at such meeting), and such persons and
their proxies shall, if required, produce such proof of personal identity as shall be satisfactory to the Secretary of the
meeting. All proxies presented at such meeting shall be delivered to the Inspectors of Votes (appointed by the
Chairperson as provided below) and filed with the Secretary of the meeting.
The vote at any such meeting of the registered owner of any Bond entitled to vote thereat shall be binding upon
such owner and upon every subsequent registered owner of such Bond (whether or not such subsequent registered owner
has notice thereof).
Any request, direction, consent or other instrument in writing required or permitted by this Ordinance to be
signed or executed by registered owners may be in any number of concurrent instruments of similar tenor and may be
signed or executed by such registered owners in person or by agent appointed by an instrument in writing. Proof of the
execution of any such instrument shall be sufficient for any purpose of this Ordinance, and shall be conclusive in favor of
the Trustee with regard to any action taken by it under such instrument, if made in the following manner:
The fact and date of the execution by any person of any such instrument may be proved by either (a)
an acknowledgment executed by a notary public or other officer empowered to take acknowledgments
of deeds to be recorded in the particular jurisdiction, or (b) an affidavit of a witness to such execution
sworn to before such a notary public or other officer. Where such execution is by an officer of a
Grand Island Council Session - 10/22/2013 Page 104 / 198
ORDINANCE NO. 9456 (Cont.)
corporation or association or a member of a partnership on behalf of such corporation, association or
partnership, such acknowledgment or affidavit shall also constitute sufficient proof of such person's
authority.
The foregoing shall not be construed as limiting the Trustee to such proof, it being intended that the Trustee may accept
any other evidence of the matters herein stated which it may deem sufficient. Any request or consent of the registered
owner of any Bond shall bind every future registered owner of the same Bond in respect of anything done by the Trustee
in pursuance of such request, direction or consent.
The right of a proxy for a registered owner to act may be proved (subject to the Trustee's right to require
additional proof) by a written proxy executed by such registered owner as aforesaid.
Persons named by the Trustee, or elected by the registered owners of a majority in principal amount of the
Bonds represented at the meeting in person or by proxy, in the event the Trustee is not represented at such meeting, shall
act as temporary Chairperson and temporary Secretary of any meeting of registered owners. A permanent Chairperson
and a permanent Secretary of such meeting shall be elected by the registered owners of a majority in principal amount of
the Bonds represented at such meeting in person or by proxy. The permanent Chairperson of the meeting shall appoint
two (2) Inspectors of Votes who shall count all votes cast at such meeting, except votes on the election of Chairperson
and Secretary as aforesaid, and who shall make and file with the Secretary of the meeting and with the City and with the
Trustee their verified report of all such votes cast at the meeting.
The registered owners of not less than the principal amount of the Bonds required for any action to be taken at
such meeting must be present at such meeting in person or by proxy in order to constitute a quorum for the transaction of
business, less than a quorum, however, having power to adjourn from time to time without any other, notice than the
announcement thereof at the meeting; provided, however, that, if such meeting is adjourned by less than a quorum for
more than ten (10) days, notice thereof shall be given by mail by the City or the Trustee at least five (5) days prior to the
adjourned date of the meeting.
With the consent of the registered owners of not less than sixty-six and two-thirds percent (66-2/3%) of the
Bonds then Outstanding, such consent to be given by a resolution duly adopted at a meeting of registered owners duly
convened and held, or by written consent as hereinafter provided, the City from time to time and at any time, may adopt
an ordinance amending or supplementing the provisions of this Ordinance for the purposes of adding any provisions to
this Ordinance or a Supplemental Ordinance, or modifying in any manner the rights of the registered owners of the
Bonds then Outstanding; provided, however, that, without the specific consent of the registered owner of each such Bond
Grand Island Council Session - 10/22/2013 Page 105 / 198
ORDINANCE NO. 9456 (Cont.)
which would be affected thereby, no such resolution amending or supplementing the provisions hereof shall: (a) permit
the creation of a lien on Revenues pledged under this Ordinance superior or prior to or on a parity with the lien of the
Bonds except to the extent presently provided in Section 14 of this Ordinance; (b) extend the fixed maturity date for the
payment of the principal of any Bond, or reduce the principal amount of any Bond, or reduce the rate or extend the time
of payment of interest thereon, or reduce any premium payable upon the redemption or prepayment thereof, or advance
the date upon which any Bond may first be called for redemption prior to its fixed maturity date; (c) reduce the aforesaid
percentage of Bonds, the registered owners of which are required to consent to any such ordinance amending or
supplementing the provisions hereof; or (d) give to any Bond or Bonds any preference over any other Bond or Bonds
secured hereby. A modification or amendment of the provisions of Section 12 and 13 hereof with respect to the Bond
Account or the Debt Service Sub-Account or Series 2013 Reserve Sub-Account or any other reserve sub-account for
Additional Bonds therein shall not be deemed a change in terms of payment; provided, however, that no such
modification or amendment shall, except upon the consent of the registered owners of all Bonds then Outstanding
affected thereby, reduce the amount or amounts required to be deposited in the Bond Account for credit to the Debt
Service Sub-Account therein. Nothing herein contained, however, shall be construed as making necessary the approval
by the registered owners of the Bonds of the adoption of any supplemental ordinance authorized by Section 17 of this
Ordinance without consent of registered owners.
The City may at any time adopt an ordinance amending the provisions of this Ordinance to the extent that such
amendment is permitted by the provisions of this Section 19, to take effect when and as provided in this Section 19.
Upon the adoption of such ordinance, a copy thereof, certified by the City Clerk, shall be filed with the Trustee. At any
time thereafter such ordinance may be submitted by the City for approval to a meeting of the registered owners duly
convened and held in accordance with the provisions of this Ordinance. A record in duplicate of the proceedings of each
meeting of the registered owners shall be prepared by the permanent Secretary of the meeting and shall have attached
thereto the original reports of the Inspectors of Votes and affidavits by a person or persons having knowledge of the
facts, showing a copy of the notice of the meeting and setting forth the facts with respect to the mailing thereof under the
provisions of this Ordinance. Such a record shall be signed and verified by the affidavits of the permanent Chairperson
and the permanent Secretary of the meeting, and one duplicate thereof shall be delivered to the City and the other to the
Trustee for preservation by the Trustee. Any record so signed and verified shall be proof of the matters therein stated. If
the ordinance of the City making such amendment shall be approved by a resolution duly adopted at such meeting of
Grand Island Council Session - 10/22/2013 Page 106 / 198
ORDINANCE NO. 9456 (Cont.)
registered owners by the affirmative vote of the registered owners of the required percentages of Bonds, a notice stating
that a resolution approving such amendment has been so adopted shall be mailed by the City to the registered owners
(but failure so to mail copies of such notice shall not affect the validity of such resolution). Proof of such mailing by the
affidavit or affidavits of a person or persons having knowledge of the facts shall be filed with the Trustee. Such
ordinance of the City making such amendment shall be deemed conclusively to be binding upon the City, the Trustee,
the Paying Agent, and the registered owners of all Bonds at the expiration of thirty (30) days after the mailing of the
notice provided for in this Section, except in the event of a final decree of a court of competent jurisdiction setting aside
such ordinance or annulling the action taken thereby in a legal action or equitable proceeding for such purpose
commenced within such period; provided, that the Trustee, any Paying Agent and the City during such thirty (30) day
period and any such further period during which such action or proceeding may be pending, shall be entitled in their
absolute discretion to take such action, or to refrain from taking such action, with respect to such ordinance as they may
deem expedient. Nothing contained in this Ordinance shall be deemed or construed to authorize or permit, by reason of
any call of a meeting of registered owners or of any right conferred hereunder to make such call, any hindrance or delay
in the exercise of any rights conferred upon or reserved to the Trustee, the Paying Agent, or the registered owners under
any of the provisions of this Ordinance.
The City may at any time adopt an ordinance amending or supplementing the provisions of this Ordinance, or
of any Bonds, to the extent that such amendment is permitted by the provisions of this Section 19 or Section 17, to take
effect when and as provided in this Section 19. Upon adoption of such ordinance, a copy thereof, certified by the City
Clerk, shall be delivered to and held by the Trustee for the inspection of the registered owners. A copy of such ordinance
(or summary thereof in form approved by the Trustee) together with a request to registered owners for their consent
thereto in form satisfactory to the Trustee, shall be mailed by the City to registered owners. Such ordinance shall not be
effective unless and until there shall have been filed with the Trustee the written consents of the percentages of registered
owners of Outstanding Bonds specified in Sections 17 or Section 19 hereof and a notice shall have been mailed to all
registered owners as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by
proof of ownership of the Bonds for which such consent is given. A certificate or certificates of the Trustee that it has
examined such proof and that such proof is sufficient shall be conclusive that the consents have been given by the
registered owners of the Bonds described in such certificate or certificates. Any such consent shall be binding upon each
registered owner of the Bonds giving such consent and on every subsequent registered owner of such Bonds, whether or
Grand Island Council Session - 10/22/2013 Page 107 / 198
ORDINANCE NO. 9456 (Cont.)
not such subsequent registered owner has notice thereof. A notice stating that the ordinance has been consented to by the
registered owners of the required percentages of Bonds and will be effective as provided in this Section 19 shall be given
to the registered owners by mailing such notice to the registered owners at their registered addresses. The City shall file
with the Trustee proof of giving such notice. A record, consisting of the papers required by this Section to be filed with
the Trustee, shall be proof of the matters therein stated, and the ordinance shall be deemed conclusively to be binding
upon the City, the Trustee, the Paying Agent, and the registered owners of all Bonds at the expiration of thirty (30) days
after the mailing of such notice, except in the event of a final decree of a court of competent jurisdiction setting aside
such consent or annulling the action taken thereby in a legal action or equitable proceeding for such purpose commenced
within such period; provided that the Trustee, and Paying Agent and the City during such thirty (30) day period and any
such further period during which such action or proceeding may be pending, shall be entitled in their absolute discretion
to take such action, or to refrain from taking such action, with respect to such ordinance as they may deem expedient.
Notwithstanding anything contained in the foregoing provisions of this Section 19, the rights and obligations of
the City and of the registered owners of the Bonds and the terms and provisions of the Bonds and of this Ordinance, may
be amended in any respect with the consent of the City, by the affirmative vote of the registered owners of all said Bonds
then Outstanding at a meeting of registered owners called and held as hereinabove provided, or upon the adoption of an
ordinance adopted by the City and the consent of the registered owners of all of the Bonds then Outstanding, such
consent to be given as provided in this Section 19, except that no notice to registered owners either by mailing shall be
required and the amendment shall be effective immediately upon such unanimous vote or written consent of all of the
registered owners.
Bonds owned or held by or for the account of the City shall not be deemed Outstanding for the purpose of any
vote or consent or other action or any calculation of Outstanding Bonds in this Ordinance provided for, and shall not be
entitled to vote or consent or take any other action in this Ordinance provided for.
Bonds delivered after the effective date of any action amending this Ordinance taken as hereinabove provided
may, and if the Trustee so determines, shall, bear a notation by endorsement or otherwise in form approved by the City
and the Trustee as to such action, and in that case, upon demand of the registered owner of any Bond Outstanding at such
effective date and presentation of such owner's Bond for the purpose at the principal office of the Trustee, suitable
notation shall be made on such Bond by the Trustee as to any such action. If the City shall so determine, new Bonds so
modified as in the opinion of the City and its counsel to conform to such registered owners' action shall be prepared,
Grand Island Council Session - 10/22/2013 Page 108 / 198
ORDINANCE NO. 9456 (Cont.)
delivered and upon demand of the registered owner of any Bond then Outstanding shall be exchanged without cost to
such Bondholder for Bonds then Outstanding hereunder, upon surrender of such Bonds.
Section 20. Authorization of Officers. The Mayor, the City Clerk and the City Treasurer of the City are
hereby authorized to do all things and execute all such documents as may by them be deemed necessary and proper to
complete the issuance and sale of the 2013 Bonds and the application of the proceeds thereof as contemplated by this
Ordinance.
Section 21. Covenant with Respect to Arbitrage. The City hereby covenants to the purchasers and registered
owners of the 2013 Bonds hereby authorized that it will make no use of the proceeds of said bond issue, including
monies held in any sinking fund for the 2013 Bonds, which would cause the 2013 Bonds to be arbitrage bonds within the
meaning of Sections 103(b) and 148 of the Internal Revenue Code of 1986, as amended (the “Code”), and further
covenants to comply with said Sections 103(b) and 148 and all applicable regulations thereunder throughout the term of
said bond issue, including but not limited to the payment and reporting of rebate as and to the extent required under
Section 148 of the Code. The City hereby agrees that it will not take any action which would cause the 2013 Bonds to be
or become “private activity bonds” within the meaning of Section 141 of the Code. The City hereby covenants and
agrees to take all actions necessary under the Code to maintain the tax exempt status (as to taxpayers generally) of
interest payable on the 2013 Bonds. The City hereby covenants and warrants that the 2013 Bonds are not “private
activity bonds” within the meaning of Section 141 of the Code.
Section 22. Approval of Preliminary Official Statement. The City hereby ratifies and approves the
publication, distribution and use of the Preliminary Official Statement in connection with the offering of the 2013 Bonds
substantially in the form presented, but with such changes, if any, therein, as may be approved by the Mayor, City Clerk,
City Treasurer or any other officer of the City. The City hereby deems the information contained in the Preliminary
Official Statement to be “final” as of its date, except for the omission of such information as is permitted by Rule 15c2-
12 under the Securities Exchange Act of 1934, as amended (the “Rule”), such as offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and identity of the
Underwriter. The City further authorizes and directs the preparation of, and authorizes and directs the execution and
delivery by the Mayor, City Clerk, City Treasurer or any other officer of the City of a final Official Statement for use in
connection with the sale of the 2013 Bonds.
Grand Island Council Session - 10/22/2013 Page 109 / 198
ORDINANCE NO. 9456 (Cont.)
Section 23. Disclosure Undertaking. In accordance with the requirements of the Rule, the City hereby (a)
authorizes and directs that an officer of the City (or any one of them) execute and deliver, on the date of issue of the
2013 Bonds, a Continuing Disclosure Undertaking in order for the Underwriter to comply with the Rule, in such
form as shall be satisfactory to such officer, and (b) covenants and agrees that it will comply with and carry out all
of the provisions of such Continuing Disclosure Undertaking. Notwithstanding any other provision of this
Ordinance, failure of the City to comply with any Continuing Disclosure Undertaking shall not be considered an
event of default hereunder; however, any Participating Underwriter (as such term is defined in the Continuing
Disclosure Undertaking) or any Beneficial Owner or any registered owner of a 2013 Bond may take such actions as
may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the
City to comply with its obligations under this Section.
Section 24. Severability. If any section, paragraph, clause or provision of this Ordinance shall be held invalid,
the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this
Ordinance.
Section 25. Ordinance and Laws a Contract with Bondholders. This Ordinance is adopted under the
authority of and in full compliance with the Constitution and laws of the State of Nebraska. In consideration of the
purchase and acceptance of the Bonds by those who shall own the same from time to time, the provisions of this
Ordinance and of said laws shall constitute a contract with the registered owner or owners of each Bond and the
obligations of the City under said laws and under this Ordinance shall be enforceable by any court of competent
jurisdiction; and the covenants and agreements herein set forth to be performed on behalf of the City shall be for the
equal benefit, protection and security of the holders of any and all of the registered owners of the Bonds, all of which, re-
gardless of the time or times of their issue or maturity, shall be of equal rank without preference, priority or distinction of
any of said Bonds over any others thereof except as expressly provided herein.
Section 26. Bonds No Longer Deemed Outstanding Hereunder. The obligations of the City under this
Ordinance and any Bond and the liens, pledges, charges, trusts, assignments, covenants and agreements of the City
herein or therein made or provided for, shall be fully discharged and satisfied as to any Bond and such Bond shall no
longer be deemed to be Outstanding hereunder;
(a)when such Bond which the City may have acquired in any manner whatsoever shall have been
cancelled, or surrendered for cancellation or is subject to cancellation, or shall have been purchased by the
Trustee from moneys in the Bond Account or by the City; or
Grand Island Council Session - 10/22/2013 Page 110 / 198
ORDINANCE NO. 9456 (Cont.)
(b)as to any Bond not theretofore cancelled, surrendered for cancellation or subject to
cancellation, when payment of the principal and the applicable redemption premium, if any (or the applicable
redemption price), on such Bond, plus interest on such principal to the due date thereof, whether such due date
be by reason of maturity or upon redemption or prepayment or otherwise, (i) shall have been made or caused to
be made in accordance with the terms thereof, or (ii) shall have been provided by irrevocably depositing with
the Trustee, in trust and irrevocably appropriated and set aside exclusively for such payment, (A) moneys
sufficient to make such payment and/or (B) Government Obligations maturing as to principal and interest in
such amount and at such times as will insure the availability of sufficient moneys to make such payment, and
all necessary and proper fees, compensation and expenses of the Trustee and the Paying Agent pertaining to the
Bonds with respect to which said deposit is made shall have been paid or the payment thereof provided for to
the satisfaction of the Trustee and said Paying Agent.
At such time as a Bond shall be deemed to be no longer Outstanding hereunder, as aforesaid, such Bond shall cease to
draw interest from the due date thereof (whether such due date be by reason of maturity or upon redemption or
prepayment, or otherwise), and, except for the purposes of any such payment from such moneys or Government
Obligations, such Bond shall no longer be secured by or entitled to the benefits of this Ordinance.
Notwithstanding the foregoing, in the case of Bonds which are to be prepaid prior to the stated maturities
thereof, no deposit under (ii) of subparagraph (b) above shall constitute such payment, discharge and satisfaction as
aforesaid until proper notice of such redemption or prepayment shall have been given as provided in Section 7 hereof, or
provision satisfactory to the Trustee shall have been irrevocably made for the giving of such notice.
Any such moneys so deposited with the Trustee as provided in this Section may at the direction of the City be
invested and reinvested in Government Obligations maturing in the amounts and times as hereinbefore set forth, and all
income from all such Government Obligations in the hands of the Trustee which is not required for the payment of the
Bonds and interest and premium (or the applicable redemption price) thereon with respect to which such moneys or
Government Obligations shall have been so deposited, shall be paid to the City as and when realized and collected.
If any Bond shall not be presented for payment when the principal thereof shall become due, whether at
maturity or upon redemption or prepayment or otherwise, and if moneys or Government Obligations shall have been
deposited in accordance with terms hereof with the Trustee, in trust for that purpose sufficient and available to pay the
principal and premium, if any (or the redemption price), of such Bond, together with all interest due on such Bond to the
due date thereof or to the date fixed for the redemption or prepayment thereof, all liability of the City for such payment
shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Trustee to hold
said monies or said Government Obligations, without liability to such Bondholder for interest thereon, in trust for the
benefit of the registered owner of such Bond, who thereafter shall be restricted exclusively for said moneys or said
Government Obligations for any claim for such payment of whatsoever nature on his part.
Grand Island Council Session - 10/22/2013 Page 111 / 198
ORDINANCE NO. 9456 (Cont.)
Notwithstanding any other provisions of this Ordinance, which may be contrary to the provisions of this
Section 26, all moneys or Government Obligations set aside and held in trust pursuant to the provisions of this Section
26 for the payment of Bonds (including interest and redemption premium thereof, if any, or the redemption price thereof)
and the interest thereon shall be applied to and used solely for the payment of the particular Bonds (including interest and
redemption premium thereon, if any, or the redemption price thereof) with respect to which such moneys and said
Government Obligations have been so set aside in trust.
Anything in Section 17 or Section 19 hereof to the contrary notwithstanding, if moneys or Government
Obligations have been deposited or set aside with the Trustee pursuant to this Section 26 for the payment of Bonds and
such Bonds shall not have in fact been actually paid in full, no amendment to the provisions of this Section 26 shall be
made without the consent of the registered owner of each Bond affected thereby.
Section 27. Benefits of Ordinance Limited to City, Bondholders, Trustee and Paying Agent. Nothing in
this Ordinance, expressed or implied, is intended or shall be construed to confer upon or give to any person or
corporation other than the City, the Trustee, the Paying Agent and the registered owners of the Bonds any rights,
remedies or claims under or by reason of this Ordinance or any covenant, condition or stipulation thereof; and all the
covenants, stipulations, promises and agreements in this Ordinance contained by or on behalf of the City shall be for the
sole and exclusive benefit of the City, the Trustee, the Paying Agent and the registered owners of the Bonds.
Section 28. Term “City” to Include Successors. Whenever in this Ordinance the City is named or referred
to, it shall be deemed to include its successors and assigns, including any successor by merger or consolidation, and all
the covenants and agreements in this Ordinance contained by or on behalf of the City shall bind and inure to the benefit
of its successors and assigns whether so expressed or not.
Section 29. Notices. Except as otherwise provided herein, all notices, requests, demands and other
communications required or permitted under this Ordinance shall be deemed to have been duly given if delivered or
mailed, first class, postage prepaid, as follows:
(a)If to the City:
City of Grand Island
Grand Island, Nebraska
Attention: Mayor
(b)If to the Trustee:
Wells Fargo Bank, National Association
Grand Island Council Session - 10/22/2013 Page 112 / 198
ORDINANCE NO. 9456 (Cont.)
625 Marquette Avenue, 11th Floor
MAC N9311-115
Minneapolis, MN 55479
Attention: Corporate Trust Services
or to such other persons or addresses as the respective party hereafter designates in writing to the other.
Section 30. Article and Section Headings; Table of Contents. The headings or titles of the several sections
hereof, and any table of contents appended hereto or to copies hereof, shall be solely for convenience of reference and
shall not affect the meaning or construction, interpretation or effect of this Ordinance.
Section 31. Repealer. All other ordinances and parts of ordinances in conflict herewith be and the same are
hereby repealed to the extent of such conflict.
Section 32. Effectiveness of Ordinance; Publication. This Ordinance shall be in force and take effect from
and after its passage and approval according to law. This Ordinance shall be published in pamphlet form.
PASSED AND APPROVED this 22nd day of October, 2013.
______________________________________
Mayor
ATTEST:
_______________________________________
City Clerk
(SEAL)
Grand Island Council Session - 10/22/2013 Page 113 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item F-2
#9457 - Consideration of Creation of Drainage Improvement
District No. 2013-D-4; Westgate Subdivision
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session - 10/22/2013 Page 114 / 198
Council Agenda Memo
From:Keith Kurz PE, Public Works Engineer
Meeting:October 22, 2013
Subject:Consideration of Creation of Drainage Improvement
District No. 2013-D-4; Westgate Subdivision
Item #’s:F-2
Presenter(s):John Collins PE, Public Works Director
Background
Council action is needed to create a Drainage Improvement District. If the District is
created, a notice will be mailed to all affected property owners and a 30-day protest
period will begin. If the district passes the protest the Council has the decision to continue
the district. The City will then bid, construct, and levy special assessments for the work.
This process is being executed pursuant to Section 16-667 of the Nebraska Revised
Statutes.
Public Works staff will present information on the proposed drainage system that would
serve the subdivision.
Discussion
The District will be made up of the north half of Gold Road east to Claude Road and is
shown on the attached exhibit. The project would consist of running a pipe along Gold
Road and outletting to the existing drainage ditch to drain property within the district
boundary which currently does not drain. Property owners in this area have signed the
district creation petition form.
The assessment to the property owners within the district will be based on contributing
area. Because all of the lots included in this district contribute to the drainage creating the
problem, the assessment distribution will be based on each property owner’s lot size
relative to the whole district area. If owner “A” owns a one (1) acre parcel within a ten
(10) acre district, owner “A” will pay 10% of the project cost as owner “A’s” land creates
10% of the runoff.
Grand Island Council Session - 10/22/2013 Page 115 / 198
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
Recommendation
City Administration recommends that the Council approve the creation of Drainage
Improvement District No. 2013-D-4; Westgate Subdivision.
Sample Motion
Move to approve the ordinance.
Grand Island Council Session - 10/22/2013 Page 116 / 198
Grand Island Council Session - 10/22/2013 Page 117 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
ORDINANCE NO. 9457
An ordinance to create Drainage Improvement District No. 2013-D-4; to define the
boundaries of the district; to provide for the improvement of storm sewer within the district by storm
drainage and other incidental work in connection therewith; to provide for the filing of this ordinance
with the Hall County Register of Deeds; and to provide the publication and effective date of this
ordinance.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND
ISLAND, NEBRASKA:
SECTION 1. Drainage Improvement District No. 2013-D-4 in the City of Grand Island,
Nebraska, is hereby created.
SECTION 2. The properties included in such district shall be as follows:
Parcel Number Owner Legal Description
400367823 Carnivores Meat Supply LLC Lot 6, Westgate Fifth Subdivision
400367815 Bradley W Barrow Trustee MHEC Land Trust VI Lot 1, Westgate Seventh Subdivision
400367807 Gstar Investments, LLC Lot 4, Westgate Fifth Subdivision
400367793 Gstar Investments, LLC Lot 3, Westgate Fifth Subdivision
400367785 John P & Lisa L Webb Lot 2, Westgate Fifth Subdivision
400375354 Harry L Lilienthal Lot 2, Westgate Sixth Subdivision
400367777 Quad Endeavors, LLC Lot 1, Westgate Fifth Subdivision
• THIS SPACE RESERVED FOR REGISTER OF DEEDS •
Grand Island Council Session - 10/22/2013 Page 118 / 198
ORDINANCE NO. 9457 (Cont.)
- 2 -
400375362 Husker Storage, LLC Lot 3 & Lot 4, Westgate Sixth Subdivision
400166887 Highland Park Lawn Company Lot 2, Westgate Third Subdivision
400166852 Twin Valley Investments, Ltd Lot 26 Westgate Subdivision & Lot 1 Westgate 3rd Subdivision
400166755 Harry L & Wanda R Lilienthal Lot 18, Westgate Subdivision
400166763 Husker Storage, LLC Lot 1, Westgate Tenth Subdivision
400166844 Robert D & Patricia J Hancock Lot 25, Westgate Subdivision
400375370 Husker Storage, LLC Lots 3 & 4, Westgate Sixth Subdivision
SECTION 3. The following storm sewer in the district shall be improved by installing
drainage pipe underground and other incidental work in connection therewith/
SECTION 4. All improvements shall be made at public cost, but the cost thereof shall
be assessed upon the lots and lands in the district specially benefited thereby as provided by law.
SECTION 5. This ordinance, with the plat, is hereby directed to be filed in the office of
the Register of Deeds, Hall County, Nebraska.
SECTION 6. This ordinance shall be in force and take effect from and after its passage
and publication, without the plat, as provided by law.
SECTION 7. After passage, approval and publication of this ordinance, without the
plat, notice of the creation of said district shall be published in the Grand Island Independent, a legal
newspaper published and of general circulation in said City, as provided by law.
SECTION 8. This process is being executed pursuant to Section 16-667 of the
Nebraska Revised Statutes.
Enacted: October 22, 2013
__________________________________________
Jay Vavricek, Mayor
Attest:
______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 119 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item F-3
#9458 - Consideration of Amending Chapter 22-141.1 of the Grand
Island City Code Relative to Front Yard Parking
Staff Contact: Steven Lamken
Grand Island Council Session - 10/22/2013 Page 120 / 198
Council Agenda Memo
From:Steven Lamken, Police Chief
Meeting:October 22, 2013
Subject:Amending City Code 22-141.1
Item #’s:F-3
Presenter(s):Steven Lamken, Police Chief
Background
City Code 22-141.1, Parking in the Front Yards, is in conflict with City Code in Chapter
36 that establishes requirements for off street parking. Currently City Code 22-141.1
permits the use of gravel or crushed rock for front yard parking. The amended ordinance
will eliminate the use of either for front yard parking. This amendment will assist in code
enforcement as well as the overall quality of appearance of our residential
neighborhoods.
Discussion
City Code 22-141.1 currently permits a property owner to use gravel or crushed rock as a
means for creating front yard parking. This is in conflict with City Code Chapter 36 that
does not permit the use of these materials for off street parking. This creates a problem
for code enforcement. Gravel or crushed rock does not provide a solid base for parking.
In many instances the material is compacted into the soil or displaced. This creates mud
and ruts in front yards. It is unsightly and an inappropriate use of materials for front yard
parking. Citizens register complaints about the conditions of such parking and yards;
however, it does not constitute a violation of City Code.
The proposed amended ordinance eliminates the use of gravel or crushed rock in creating
front yard parking. This brings City Code 22-141.1 into compliance with Chapter 36 that
sets requirements for off street parking. The proposed amendment will also create a
bright line rule for code enforcement as to the legality of parking in a front yard. Property
owners will be required to make improvements in accordance with Chapter 36 if they
desire to create parking in their front yards.
This amendment does not change or address the City Code pertaining to side yard or back
yard parking.
Grand Island Council Session - 10/22/2013 Page 121 / 198
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
Recommendation
City Administration recommends that the Council approve the passage of the amendment
of City Code 22-141.1 removing the use of gravel and crushed rock for front yard
parking.
Sample Motion
Move to amend City Code 22-141.1 that removes the use of gravel and crushed rock as
materials approved for front yard parking.
Grand Island Council Session - 10/22/2013 Page 122 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
ORDINANCE NO. 9458
An ordinance to revise Chapter 22, Section 22-141.1, Parking in Front Yards, of the
Grand Island City Code to delete the statement,
It shall be unlawful for anyone to park a motor vehicle on any unimproved area of a front
yard of any property in the city of Grand Island. For the purpose of this section,
"unimproved area" shall mean any area that has not been improved with concrete,
asphalt, brick, stone, gravel, or crushed rock. The term "motor vehicle" shall mean every
self-propelled land vehicle, not operated on rails, except mopeds or self-propelled invalid
chairs. No front yard area shall be improved for parking unless it meets all of the
requirements of the Grand Island City Code for off-street parking, including but not
limited to, the provisions of Chapter 36.
and repeal any ordinance or parts of ordinances in conflict herewith and to provide for
publication of this ordinance in accordance with State law. The above statement is in conflict
with other provision of the City Code Chapter 36 that provides requirements for off-street
parking.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA:
SECTION 1. That Chapter 22, Section 22-141.1 of the Grand Island City code shall be modified
to read as follows:
22-141.1. Parking In Front Yards
It shall be unlawful for anyone to park a motor vehicle on any unimproved area of a
front yard of any property in the city of Grand Island. The term “motor vehicle” shall mean every
self-propelled land vehicle, not operated on rails, except mopeds or self-propelled invalid chairs.
Grand Island Council Session - 10/22/2013 Page 123 / 198
ORDINANCE NO. 9458 (Cont.)
- 2 -
No front yard area shall be improved for parking unless it meets all of the requirements of the
Grand Island City Code for off-street parking, including but not limited to, the provisions of
Chapter 36.
SECTION 2. Any ordinance or parts of ordinances in conflict herewith be, and hereby are,
repealed.
SECTION 3. This ordinance shall be in force and take effect fifteen days from and after its
passage and publication as required by law.
Enacted: October 22, 2013.
____________________________________
Jay Vavricek, Mayor
Attest:
________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 124 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-1
Approving Minutes of October 8, 2013 City Council Regular
Meeting
Staff Contact: RaNae Edwards
Grand Island Council Session - 10/22/2013 Page 125 / 198
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL REGULAR MEETING
October 8, 2013
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 8, 2013. Notice of the meeting was given in The Grand Island Independent on
October 2, 2013.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following City Council
members were present: Bob Niemann, Linna Dee Donaldson, Chuck Haase, Julie Hehnke, Mitch
Nickerson, Peg Gilbert, Scott Dugan, and Mike Paulick. Councilmembers Vaughn Minton and
John Gericke were absent. The following City Officials were present: City Administrator Mary
Lou Brown, City Clerk RaNae Edwards, City Attorney Robert Sivick, City Treasurer and
Finance Director Jaye Monter and Engineer and Public Works Director John Collins.
INVOCATION was given by Pastor Scott Taylor, First Christian Church, 2400 West 14th Street
followed by the PLEDGE OF ALLEGIANCE.
Mayor Vavricek introduced Community Youth Council member Diana Molina.
PRESENTATIONS AND PROCLAMATIONS:
Presentation of ICMA Video. City Administrator Mary Lou Brown reported that the city of
Grand Island was featured as one of approximately 20 community video productions throughout
the United States at the recent national International City/County Management Association
(ICMA) conference. Funding for the video was provided by the Edgar and Francis Reynolds
Foundation. Presented was the six minute video.
PUBLIC HEARINGS:
Public Hearing on Request from RSI, Inc. dba The Upper Deck, 2110 West 2nd Street for a Class
“C” Liquor License. City Clerk RaNae Edwards reported that an application for a Class “C”
Liquor License had been received from RSI, Inc. dba The Upper Deck, 2110 West 2nd Street.
Ms. Edwards presented the following exhibits for the record: application submitted to the Liquor
Control Commission and received by the City on September 23, 2013; notice to the general
public of date, time, and place of hearing published on September 28, 2013; notice to the
applicant of date, time, and place of hearing mailed on September 23, 2013; along with Chapter
4 of the City Code. Staff recommended approval contingent upon final inspections. No public
testimony was heard.
CONSENT AGENDA: Consent Agenda item G-3 was removed for further discussion. Motion
by Dugan, second by Nickerson to approve the Consent Agenda excluding item G-3. Upon roll
call vote, all voted aye. Motion adopted.
Approving Minutes of September 24, 2013 City Council Regular Meeting.
Grand Island Council Session - 10/22/2013 Page 126 / 198
Page 2, City Council Regular Meeting, October 8, 2013
#2013-332 – Approving Certificate of Final Completion and Scheduling the Board of
Equalization (BOE) for Sidewalk Repair at 1141 Pleasant View Drive with Reimers
Construction of Grand Island, NE and a November 12, 2013 BOE Date.
#2013-333 – Approving Change Order No. 1 for the Walk to Walnut Safe Routes to School
Project with Diamond Engineering Company of Grand Island, NE for an Increase of $39,159.41
and a Revised Contract Amount of $376,263.77. Public Works Director John Collins reported
Change Order No. 1 would allow concrete repair along Custer Street.
The following people spoke in opposition to a turning lane and no parking on Walnut Street:
Pam Penas, 1507 North Custer
Brian Gates, 1702 North Taylor
Gloria Gates, 2315 West 15th Street
Richard Schneider, 1511 North Custer
City Attorney Robert Sivick questioned whether the discussion was germane to the agenda item.
Motion by Haase, second by Paulick to refer this item to the October 22, 2013 City Council
meeting. Motion was withdrawn.
City Administrator Mary Lou Brown suggested a review of the Walk to Walnut Project be
brought back before Council at their October 22, 2013 Council meeting.
Motion by Gilbert, second by Niemann to approve Resolution #2013-333. Upon roll call vote,
Councilmembers Dugan, Gilbert, Nickerson, Hehnke, Haase, Donaldson, and Niemann voted
aye. Councilmember Paulick voted no. Motion adopted.
#2013-334 – Approving COPS Hiring Grant.
RESOLUTIONS:
#2013-335 – Consideration of Request from RSI, Inc. dba The Upper Deck, 2110 West 2nd Street
for a Class “C” Liquor License and Liquor Manager Designation for Gary Phillips, 4309 Quail
Lane. This item related to the aforementioned Public Hearing.
Motion by Niemann, second by Donaldson to approve Resolution #2013-335 contingent upon
final inspections and completion of a state approved alcohol server/seller training program. Upon
roll call vote, all voted aye. Motion adopted.
#2013-336 – Consideration of Approving Wastewater Rates for Non-Resident. Public Works
Director John Collins reported that on September 24, 2013 City Council approved new
wastewater rates. Council directed staff to present an increased rate for non-resident customers.
There were five suburban sanitary sewer accounts being served by the Wastewater Treatment
Plant. Staff recommended charging 20% over the rate for non-resident water customers.
Discussion was held regarding the reasons to approve the non-resident rate. Councilmembers
Nickerson and Paulick stated they opposed the rate increase.
Grand Island Council Session - 10/22/2013 Page 127 / 198
Page 3, City Council Regular Meeting, October 8, 2013
Motion by Gilbert, second by Dugan to approve Resolution #2013-336. Upon roll call vote,
Councilmembers Dugan, Gilbert, Hehnke, Haase, Donaldson, and Niemann voted aye.
Councilmembers Paulick and Nickerson voted no. Motion adopted.
#2013-337 – Consideration of Approving Appointments to the Citizens Advisory Review
Committee. Mayor Vavricek submitted the appointments of: Bruce Lux, Ray O’Connor, Mark
Stelk, and Lisa Willman to expire on September 30, 2014 and Dehn Renter, Craig Vincent, and
Tim White to expire on September 30, 2015. Mayor Vavricek gave a brief bio on each
committee member.
Motion by Niemann, second by Paulick to approve Resolution #2013-337. Upon roll call vote,
all voted aye. Motion adopted.
#2013-338 – Consideration of Approving an Agreement with the Grand Island Area Chamber of
Commerce. Mayor Vavricek reported that in order to retain the confidentiality required as the
potential for litigation was continued to be researched in retaining the Grand Island Veterans
Home, it was recommended by Don Dunn from the Rembolt Ludthke firm that an agreement
between the Chamber and the City be completed. Mr. Sivick answered questions concerning the
agreement.
Motion by Paulick, second by Niemann to approve Resolution #2013-338. Upon roll call vote,
all voted aye. Motion adopted.
#2013-310 – Consideration of Authorizing the Legal Department to Acquire Certain Real Estate
through Eminent Domain. City Attorney Bob Sivick reported that over the last few months the
Legal and Public Works Departments had attempted to purchase approximately eighty acres of
pasture land located north of Eagle Scout Lake along Highway 2 for a detention cell. An attempt
to negotiate a purchase price for the property had been made, but the owner held fast in his
demand for a price per acre far in excess of fair market value. City legal staff rejected his
demand. It was recommended that the City Council authorize the Legal Department to acquire
the real estate through the City’s power of eminent domain.
Motion by Dugan, second by Donaldson to approve Resolution #2013-310. Upon roll call vote,
all voted aye. Motion adopted.
PAYMENT OF CLAIMS:
Motion by Dugan, second by Nickerson to approve the Claims for the period of September 25,
2013 through October 8, 2013, for a total amount of $4,292,986.78. Unanimously approved.
ADJOURNMENT: The meeting was adjourned at 8:21 p.m.
RaNae Edwards
City Clerk
Grand Island Council Session - 10/22/2013 Page 128 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-2
#2013-339 - Approving Final Plat and Subdivision Agreement for
Copper Creek Estates Fifth Subdivision
Staff Contact: Chad Nabity
Grand Island Council Session - 10/22/2013 Page 129 / 198
Council Agenda Memo
From: Regional Planning Commission
Meeting: October 22, 2013
Subject: Copper Creek Estates Fifth - Final Plat
Item #’s: G-2
Presenter(s): Chad Nabity AICP, Regional Planning Director
Background
This property is located west of Cherokee Ave S., and south of Old Potash Hwy. This
final plat proposes to create 20 Lots, on a tract of land comprising all of Lots Thirty One
(31) and Thirty Two (32), Copper Creek Estates Third Subdivision and a part of the
Northwest Quarter (NW1/4), all located in Section Twenty Three (23), Township Eleven (11) North, Range Ten (10) West of the 6th P.M. in the City of Grand Island, Hall
County, Nebraska, said tract containing 5.644 acres.
Discussion
The revised plat for Copper Creek Estates Fifth Subdivision was considered by the
Regional Planning Commission at the October 2, 2013 meeting. A motion was made by Hayes and seconded by Snodgrass to approve the Final Plat for
Copper Creek Fifth Subdivision as presented.
A roll call vote was taken and the motion passed with 8 members present and voting in favor (McCarty, Amick, Haskins, Snodgrass, O’Neill, Hayes Bredthauer, Reynolds and Haskins) and no one voting against.
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1. Move to approve 2. Refer the issue to a Committee
3. Postpone the issue to future date
Grand Island Council Session - 10/22/2013 Page 130 / 198
4. Take no action on the issue
Recommendation
City Administration recommends that the Council approve the final plat as presented.
Sample Motion
Move to approve as recommended.
Grand Island Council Session - 10/22/2013 Page 131 / 198
Copper Creek Fifth Subdivision Developer/Owner
The Guarantee Group, LLC Sean O’Connor
2505 N Webb Rd
Grand Island NE 68803
To create 20 lots west of Cherokee Ave S and south of Old Potash Hwy., in the City of Grand Island, in Hall County, Nebraska.
Size: 5.644 acres
Zoning: R2 – Low Density Residential Zone
Road Access: City Roads Water Public: City water is available Sewer Public: City sewer is available
Grand Island Council Session - 10/22/2013 Page 132 / 198
Grand Island Council Session - 10/22/2013 Page 133 / 198
Grand Island Council Session - 10/22/2013 Page 134 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-339
WHEREAS, The Guarantee Group, L.L.C. a Nebraska Limited Liability
Company, being the said owner of the land described hereon, have caused same to be surveyed,
subdivided, platted and designated as “COPPER CREEK FIFTH SUBDIVISION”, to be laid out
into 20 lots, a tract of land comprising all of Lots Thirty One (31) and Thirty Two (32), Copper
Creek Estates Third Subdivision and a part of the Northwest Quarter (NW1/4) all located in
Section Twenty Three (23), Township Eleven (11) North Range Ten (10) West of the 6th P.M., in
the City of Grand Island, Hall County Nebraska, and has caused a plat thereof to be
acknowledged by it; and
WHEREAS, a copy of the plat of such subdivision has been presented to the Boards of
Education of the various school districts in Grand Island, Hall County, Nebraska, as required by
Section 19-923, R.R.S. 1943; and
WHEREAS, a form of subdivision agreement has been agreed to between the
owner of the property and the City of Grand Island.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the form of subdivision agreement
hereinbefore described is hereby approved, and the Mayor is hereby authorized to execute such
agreement on behalf of the City of Grand Island.
BE IT FURTHER RESOLVED that the final plat of COPPER CREEK FIFTH
SUBDIVISION, as made out, acknowledged, and certified, is hereby approved by the City
Council of the City of Grand Island, Nebraska, and the Mayor is hereby authorized to execute the
approval and acceptance of such plat by the City of Grand Island, Nebraska.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 135 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-3
#2013-340 - Approving Bid Award - 2014 Truck with 60 Foot
Articulating Overcenter Aerial Device with 17 Foot Elevator Lift
(Unit #69) - Line Division
Staff Contact: Tim Luchsinger, Stacy Nonhof
Grand Island Council Session - 10/22/2013 Page 136 / 198
Council Agenda Memo
From:Timothy Luchsinger, Utilities Director
Stacy Nonhof, City Attorney
Meeting:October 22, 2013
Subject:2014 Truck with 60’ Articulating Overcenter Aerial
Device with 17’ Elevator Lift (Unit #69)
Item #’s:G-3
Presenter(s):Timothy Luchsinger, Utilities Director
Background
The Electric Overhead Division of the Utilities Department has a 1993 International truck
offered in trade on this new truck with an aerial device. This truck is used for
maintenance and construction of the distribution lines and transmission lines. The truck
has a major issue with the turret mounting system that exceeds allowable movement
tolerances and its use is limited to special conditions. Sufficient funds were budgeted in
this year’s budget to replace the truck.
Discussion
Specifications for replacement of Unit #69 were prepared by Department staff, advertised
in accordance with the City Purchasing Code, sent to nine potential bidders, and posted
on the City’s Web Site. The bids were publically opened on October 1, 2013. Three bids
were received as tabulated below. The estimated amount for this replacement vehicle was
$375,000.
Bidder Base Bid Trade-in Net Bid
Nebraska Truck Center, Inc.$287,482.00 ($4,500.00)$282,982.00
(Freightliner Chassis – Terex Body)
Grand Island, NE
Hansen International Truck, Inc.$283,782.00 ($6,000.00)$277,782.00
(International Chassis, Terex Body)
Grand Island, NE
Altec Industries, Inc.$302,727.00 ($4,500.00)$298,227.00
(Hansen International Chassis)
St. Joseph, MO
Grand Island Council Session - 10/22/2013 Page 137 / 198
Bidder Base Bid Trade-In Net Bid
Altec Industries, Inc.$304,508.00 ($4,500.00)$300,008.00
(Peach State Freightliner Chassis)
St. Joseph, MO
Altec Industries, Inc.$309,347.00 ($4,500.00)$304,847.00
(Nebraska Peterbilt Chassis)
St. Joseph, MO
After evaluating the bids for Unit #69, the Utilities Department recommends accepting
the bid from Altec Industries. Both Altec and Terex bid the same 2014 International
chassis with minor exceptions. The differences are in the construction of the boom and
body meeting the specifications.
The Altec elevator is two feet taller. Terex makes an elevator that could meet the
specifications, but chose to bid the lower unit. The Terex unit does not meet minimum
specifications.
The upper boom articulation of 210o for the Altec compared to 194o for the Terex which
will give an extended side reach. The lower boom of the Altec has 124o articulation
compared to the 120o for the Terex which will allow the platform to come to the ground
for easier access and in case of emergencies. The Altec is a side-by-side boom
configuration as per the specifications for lower travel height. Specifications called for
the outrigger shoes to fold up to provide for ground clearance and clearance by the
riggers. The Terex does not provide fold up shoes. Specifications also called for a closed
center hydraulic system which the Altec provides, compared to the open system of the
Terex. The closed center has many advantages over the open center system. The closed
center has a piston pump which has a continuous replenishment of oil which is a benefit
in cold weather and also eliminates air in the system. The operator has better flexibility in
tight places when operating the boom.
Outrigger shoes were specified to be 18” x 24” for stability; Terex shoes are 20” x 20”.
Specifications call for the unit to be powder coated. Powder coating provides for a much
more durable and better looking finish. The Terex paint is a wet paint process.
Specifications called for the top of the bins to be between 24 and 26 inches, Terex quoted
30 inches. Terex does not provide for a digital pre-paint.
Both units came in under the engineer’s estimate; Terex at $277,782.00, and Altec at
$298,227.00. The Utilities Department will have this truck for approximately 20 years,
and it will be used by all crews in both the Line and Underground Divisions. From
previous experience, the Altec is built better, and more user friendly to operate.
The bid from Altec Industries, Inc., for the 2014 Truck with 60’ Articulating Overcenter
Aerial Device with 17’ Elevator Lift, is the low responsive bid for the replacement unit
for the Line Division’s Unit #69. The total base bid is $302,727.00, less the trade-in of
$4,500.00, for a final price of $298,227.00.
Grand Island Council Session - 10/22/2013 Page 138 / 198
Alternatives
It appears that the Council has the following alternatives concerning the issue at hand.
The Council may:
1.Move to approve
2.Refer the issue to a Committee
3.Postpone the issue to future date
4.Take no action on the issue
Recommendation
City Administration recommends that the Council approve the purchase of the 2014
Truck with 60’ Articulating Overcenter Aerial Device with 17’ Elevator Lift (Unit #69)
for the Line Division, from Altec Industries, Inc., of St. Joseph, Missouri, with a Hansen
International, in the amount of $298,227.00, including trade-in.
Sample Motion
Move to approve the purchase of a 2014 Truck with 60’ Articulating Overcenter Aerial
Device with 17’ Elevator Lift (Unit #69) from Altec Industries, Inc., in the amount of
$298,227.00, including trade-in.
Grand Island Council Session - 10/22/2013 Page 139 / 198
Purchasing Division of Legal Department
INTEROFFICE MEMORANDUM
Stacy Nonhof, Purchasing Agent
Working Together for a
Better Tomorrow, Today
BID OPENING
BID OPENING DATE:October 1, 2013 at 2:00 p.m.
FOR:2014 Truck with 60’ Articulating Overcenter Aerial Device
with 17’ Elevator Lift
DEPARTMENT:Utilities
ESTIMATE:$375,000.00
FUND/ACCOUNT:520
PUBLICATION DATE:September 10, 2013
NO. POTENTIAL BIDDERS:9
SUMMARY
Bidder:Altec Industries, Inc.Nebraska Truck Center, Inc.
St. Joseph, MO Grand Island, NE
Exceptions:Noted Noted
Hansen International Chassis:Freightliner Chassis – Terex Body:
Base Bid Price:$302,727.00 $287,482.00
Trade-in:$ -4,500.00 $ -4,500.00
Final Bid:$298,227.00 $282,982.00
Peach State Freightliner Chassis:
Base Bid Price:$304,508.00
Trade-in:$ -4,500.00
Final Bid:$300,008.00
Nebraska Peterbilt Chassis:
Base Bid Price:$309,347.00
Trade-in:$ -4,500.00
Final Bid:$304,847.00
Grand Island Council Session - 10/22/2013 Page 140 / 198
Bidder:Hansen International Truck, Inc.
Grand Island, NE
Exceptions:Noted
International Chassis – Terex Body:
Base Bid Price:$283,782.00
Trade-in:$ -6,000.00
Final Bid:$277,782.00
cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director
Mary Lou Brown, City Administrator Jaye Monter, Finance Director
Stacy Nonhof, Purchasing Agent Pat Gericke, Utilities Admin. Assist.
Bryan Fiala, Elec. Line Supt.
P1675
Grand Island Council Session - 10/22/2013 Page 141 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-340
WHEREAS, the City of Grand Island invited sealed bids for a 2014 Truck with
60’ Articulating Overcenter Aerial Device with 17’ Elevator Lift (Unit #69); and
WHEREAS, on October 1, 2013, bids were received, opened and reviewed; and
WHEREAS, Altec Industries, Inc., of St. Joseph, Missouri, 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 $298,227.00, including
trade-in; and
WHEREAS, the bid of Altec Industries, Inc., of St. Joseph, Missouri, is less than
the estimate for the 2014 Truck with 60’ Articulating Overcenter Aerial Device with 17’
Elevator Lift (Unit #69).
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Altec Industries, Inc., of St.
Joseph, Missouri, in the amount of $298,227.00, including trade-in, for a 2014 Truck with 60’
Articulating Overcenter Aerial Device with 17’ Elevator Lift (Unit #69), is hereby approved as
the lowest responsive bid.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 142 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-4
#2013-341 - Approving Amendment #1 to the Contract for Phelps
Control Center Architectural Services with Webb & Company
Architects, Inc.
Staff Contact: Tim Luchsinger, Stacy Nonhof
Grand Island Council Session - 10/22/2013 Page 143 / 198
Council Agenda Memo
From:Tim Luchsinger, Utilities Director
Meeting:October 22, 2013
Subject:Contract for Phelps Control Center Architectural
Services – Amendment #1
Item #’s:G-4
Presenter(s):Tim Luchsinger, Utilities Director
Background
Phelps Control Center (PCC), located directly west of Burdick Generating Station, is the
main electric system control center for the City. This facility is the main point of contact
for Department communications with other electric utilities, marketing agents and
regulatory agencies. In addition, PCC personnel handle all power outage calls, provide
maintenance for all electrical substations and ensure the electric department remains
compliant with federal reliability standards. PCC personnel also utilize a warehouse
located along Sycamore Street near the underpass that houses spare substation parts,
maintenance equipment and other substation and transmission related materials. Due to
its age and location, a newer, more secure facility is desired. Directly north of the PCC
facility is an open field that is large enough to construct a new building that could provide
warehouse, shop, office and garage space. The entire PCC and Burdick location is
surrounded by chain link fence with a card reader access gate for entry. The proposed
location is within this fenced area and provides the necessary security. This new building
would provide for present and future needs. The scope of this building is limited to the
transmission and dispatch division and does not include any use by the distribution
engineering division.
On June 25, 2013, City Council approved a contract with Webb Architects for $16,000 to
evaluate space requirements and develop a preliminary design and building estimate for
the remodel of Phelps Control Center and a new warehouse to be constructed
immediately north of Phelps Control Center. Due to the fact that the warehouse and
remodel are two distinct projects, it was determined by Department staff to separate the
two tasks into independent, phased projects and proceed with the warehouse first.
Grand Island Council Session - 10/22/2013 Page 144 / 198
Discussion
Phase 1 has been completed with a preliminary design and estimate of the new
warehouse. Phase 2 will be the development of the construction drawings and
specifications to be issued for bids. In addition, Phase 2 will also include construction
management of the project. After evaluating building needs and requirements and
developing a detailed estimate, Webb provided a fee of $96,500 to perform Phase 2 and a
revised contract completion date of February 28, 2015 to allow the completion of the
remodeling project following the warehouse construction. Department staff has reviewed
the contract amendment and recommends approval.
Alternatives
It appears that the Council that 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 Amendment #1 to the
Contract for Phelps Control Center Architectural Services with Webb & Company
Architects.
Sample Motion
Move to approve Amendment #1 to the Contract for Phelps Control Center Architectural
Services with Webb & Company Architects.
Grand Island Council Session - 10/22/2013 Page 145 / 198
Grand Island Council Session - 10/22/2013 Page 146 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-341
WHEREAS, on June 25, 2013, City Council approved a contract with Webb
Architects for $16,000, to evaluate space requirements and develop a preliminary design and
building estimate for the remodel of Phelps Control Center and a new warehouse to be
constructed immediately north of Phelps Control Center; and
WHEREAS, it was determined to use a phased approach to construct the
warehouse building before the remodel of Phelps Control Center, and this changes the practical
end date for both projects; and
WHEREAS, Phase 2 of the project will be the development of the construction
drawings and specifications to be issued for bids, and will include construction management of
the project; and
WHEREAS evaluating building needs and requirements, the amount needed to
perform Phase 2 is $96,500, and the contract end date will need to be extended to February 28,
2015 to allow for the completion of the remodeling project following the warehouse
construction.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that Amendment No. 1 to the Contract for
Phelps Control Center Architectural Services with Webb & Company Architects, in the amount
of $96,500.00, is hereby approved, and the Mayor is authorized to sign the Amendment on
behalf of the City of Grand Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
________________________________
Jay Vavricek, Mayor
Attest:
______________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 147 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-5
#2013-342 - Approving Transformer Maintenance & Testing
Services - Utilities Department
Staff Contact: Tim Luchsinger, Stacy Nonhof
Grand Island Council Session - 10/22/2013 Page 148 / 198
Council Agenda Memo
From:Tim Luchsinger, Utilities Director
Stacy Nonhof, Assistant City Attorney
Meeting:October 22, 2013
Subject:Approving Substation Transformer Maintenance and
Testing Services
Item #’s:G-5
Presenter(s):Tim Luchsinger, Utilities Director
Background
The City of Grand Island electric system utilizes large power transformers to convert the
115,000 transmission voltage to 13,800 volts for distribution throughout the City. These
transformers are oil filled and will occasionally develop slow leaks due to failing gaskets
and other problems. The system currently has eight transformers that require leak repairs.
Due to the equipment necessary to perform this maintenance, utilizing a contractor is
required. In addition, an older substation transformer has reached the end of its life and is
need of replacement. This same contractor will perform the necessary swap with a spare
transformer already on hand.
Discussion
Bids were received by the City on September 24, 2013 for the contract labor and
materials for the substation transformer maintenance services. The two bids received
were:
Bidder Bid Price
Solomon Corporation
Solomon, KS $149,996.88
Delta Star, Inc.
Lynchburg, VA $277,752.74
Grand Island Council Session - 10/22/2013 Page 149 / 198
Solomon’s bid contains no exceptions, meets all requirements, and is below the
engineer’s estimate of $300,000. Solomon has performed transformer maintenance for
the City previously, with good results.
Based on a review of the bids received, the Solomon Corporation’s bid of $149,996.88 is
recommended by the Department as the lowest, compliant bid.
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 Solomon
Corporation of Solomon, KS for Substation Transformer Maintenance and Testing
Services in the amount of $149,996.88.
Sample Motion
Move to approve the bid from Solomon Corporation for Substation Transformer
Maintenance and Testing Services in the amount of $149,996.88.
Grand Island Council Session - 10/22/2013 Page 150 / 198
Purchasing Division of Legal Department
INTEROFFICE MEMORANDUM
Stacy Nonhof, Purchasing Agent
Working Together for a
Better Tomorrow, Today
BID OPENING
BID OPENING DATE:September 24, 2013 at 2:00 p.m.
FOR:Substation Transformer Maintenance and Testing Services
DEPARTMENT:Utilities
ESTIMATE:$300,000.00
FUND/ACCOUNT:520
PUBLICATION DATE:September 11, 2013
NO. POTENTIAL BIDDERS:7
SUMMARY
Bidder:Solomon Corp.Delta Star, Inc.
Solomon, KS Lynchburg, VA
Bid Security:Cashier’s Check Fidelity & Deposit Co.
Exceptions:None None
Base Bid:$140,184.00 $259,583.00
Sales Tax:$ 9,812.88 $ 18,170.74
Total Bid Price:$149,996.88 $277,752.74
cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director
Mary Lou Brown, City Administrator Jaye Monter, Finance Director
Stacy Nonhof, Purchasing Agent Pat Gericke, Utilities Admin. Assist.
Karen Nagel, Utilities Secretary Travis Spiehs. Phelps Control
P1674
Grand Island Council Session - 10/22/2013 Page 151 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-342
WHEREAS, the City of Grand Island invited sealed bids for Substation
Transformer Maintenance and Testing Services; and
WHEREAS, on September 24, 2013, bids were received, opened and reviewed;
and
WHEREAS, the Solomon Corporation of Solomon, 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 $149,996.88; and
WHEREAS, the bid of the Solomon Corporation is less than the estimate for
Transformer Maintenance and Testing Services.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of the Solomon Corporation of
Solomon, Kansas, in the amount of $149,996.88, for Substation Transformer Maintenance and
Testing Services, is hereby approved as the lowest responsive bid.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 152 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-6
#2013-343 - Approving Acquisition of Drainage Easements in
Copper Creek Estates Third and Fourth Subdivision (The
Guarantee Group, LLC)
This item relates to the aforementioned Public Hearing item E-2.
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session - 10/22/2013 Page 153 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-343
WHEREAS, drainage easements are required by the City of Grand Island, from
The Guarantee Group, LLC in Copper Creek Estates Third Subdivision and Copper Creek
Estates Fourth Subdivision, Hall County, Nebraska and more particularly described as follows:
A ten (10.00) foot wide tract of land comprising the northerly five (5.00) feet of Lot Twenty
Seven (27) and the southerly five (5.00) feet of Lot Twenty Six (26), all located in Copper Creek
Estates Third Subdivision, in the City of Grand Island, Nebraska, said tract containing 0.021
acres (900 s.f.) more or less; and
A ten (10.00) foot wide tract of land comprising the southerly five (5.00) feet of Lot Twenty
Two (22), Copper Creek Estates Third Subdivision and the northerly five (5.00) feet of Lot One
(1), Copper Creek Estates Fourth Subdivision, all in the City of Grand Island, Nebraska, said
tract containing 0.020 acres (854 s.f.) more or less.
WHEREAS, an Agreement for the drainage easements has been reviewed and
approved by the City Legal Department.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and
hereby is, authorized to enter into the Agreement for the drainage easements on the above
described tracts of land.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed
to execute such agreement on behalf of the City of Grand Island.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 154 / 198
Grand Island Council Session - 10/22/2013 Page 155 / 198
Grand Island Council Session - 10/22/2013 Page 156 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-7
#2013-344 - Approving Change Order No. 2 for the Walk to
Walnut Safe Routes to School Project
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session - 10/22/2013 Page 157 / 198
Council Agenda Memo
From:Scott Griepenstroh, Project Manager
Meeting:October 22, 2013
Subject:Approving Change Order No. 2 for the Walk to Walnut
Safe Routes to School Project
Item #’s:G-7
Presenter(s):John Collins PE, Public Works Director
Background
All agreements must be approved by the City Council.
The Walk to Walnut project will realign the main driveway to Walnut Middle School
with the intersection of 15th Street and Custer Avenue and install traffic signals. This
project is mostly funded with Safe Routes to School (SRTS) funds authorized by the
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU). These funds are administered by the Nebraska Department of Road
(NDOR).
The original funding limit for this project was set at $249,004.00. The funding limit was
recently removed and Federal Aid will be used to pay for 100% of the costs for
construction, construction engineering and utility relocation. On June 11, 2013, City
Council approved concurrence of the bid award with NDOR to the Diamond Engineering
Company for the construction contract of $337,104.36.
On October 8, 2013, City Council approved Change Order No. 1 through Resolution No.
2013-333. Change Order No. 1 provided for replacement of deteriorated concrete
pavement on Custer Avenue. Change Order No. 1 resulted in a revised contract amount
of $376,263.77.
Discussion
After the existing driveway was removed, sand base material was discovered under the
pavement of the existing driveway. In order to match the existing area, create a smooth
terrain, and provide positive drainage, the Contractor was directed to place additional
embankment over the sand base material. The embankment consists of suitable topsoil
Grand Island Council Session - 10/22/2013 Page 158 / 198
material capable of supporting vegetative growth. The quantity of the additional
embankment material was estimated to be 270 cubic yards.
The agreed unit price for "Backfill Material" was negotiated and compares favorably with
recent bid prices of the item "Earthwork Measured in Embankment" on projects with
similar small quantities.
Officials from NDOR and the Federal Highway Administration (FHWA) responsible for
project oversight determined that this additional work is eligible for federal funds.
The approval of Change Order No. 2 for an amount of $7,794.90 will result in a revised
contract amount of $384,058.67.
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 Change Order No. 2 for the
Walk to Walnut Safe Routes to School Project.
Sample Motion
Move to approve the resolution.
Grand Island Council Session - 10/22/2013 Page 159 / 198
Grand Island Council Session - 10/22/2013 Page 160 / 198
Grand Island Council Session - 10/22/2013 Page 161 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-344
WHEREAS, on June 11, 2013, by Resolution 2013-177, the City Council of the
City of Grand Island approved concurrence of bid award with the Nebraska Department of Roads
(NDOR) to the Diamond Engineering Company of Grand Island, Nebraska, for the bid in the
amount of $337,104.36 for the Walk to Walnut Safe Routes to School Project; and
WHEREAS, on October 8, 2013, by Resolution 2013-333, the Grand Island City
Council approved Change Order No. 1 for such project, in the amount of $39,159.41, resulting in
a revised contract price of $376,263.77; and
WHEREAS, it has been determined that additional work is necessary to complete
such project; and
WHEREAS, such modifications have been incorporated into Change Order No. 2;
and
WHEREAS, the result of such modifications will increase the contract amount by
$7,794.90 for a revised contract price of $384,058.67; and
WHEREAS, officials from NDOR and the Federal Highway Administration
(FHWA) responsible for project oversight determined that this additional work, in the amount of
$7,794.90, is eligible for federal funds.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is,
authorized and directed to execute Change Order No. 2 between the City of Grand Island and
The Diamond Engineering Company of Grand Island, Nebraska on the Walk to Walnut Safe
Routes to School project.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 162 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-8
#2013-345 - Approving Bid Award for Snow Removal Services for
the 2013/2014 Winter Season (Streets Division)
Staff Contact: John Collins, P.E. - Public Works Director
Grand Island Council Session - 10/22/2013 Page 163 / 198
Council Agenda Memo
From:Shannon Callahan, Street Superintendent
Meeting:October 22, 2013
Subject:Approving Bid Award for Snow Removal Services for
the 2013/2014 Winter Season (Streets Division)
Item #’s:G-8
Presenter(s):John Collins PE, Public Works Director
Background
On October 5, 2013 the Streets Division of the Public Works Department advertised for
bids for Snow Removal for the 2013/2014 winter season including equipment and labor.
There were nine (9) potential bidders for these services.
Discussion
One (1) bid was received and opened on October 15, 2013. The Streets Division of the
Public Works Department and the Purchasing Division of the City Attorney’s Office have
reviewed the bid that was received, and believe it to be responsible. The bid is shown
below.
Bidder Exceptions Total Bid
The Diamond Engineering
Co., Grand Island, Nebraska
None
Trucks - $120.00 per hour
Front End Loaders - $165.00 per hour
Motor Graders - $175.00 per hour
Truck Plows – No Bid
The estimates for the services were as follows:
Trucks for Hauling Snow - $150.00 per hour
Front End Loaders - $185.00 per hour
Motor Graders - $200.00 per hour
Truck Plows - $130.00 per hour
There are sufficient funds in Account No. 10033502-85213 for these services.
Grand Island Council Session - 10/22/2013 Page 164 / 198
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 contract for
snow removal services to The Diamond Engineering Company of Grand Island,
Nebraska.
Sample Motion
Move to approve the resolution.
Grand Island Council Session - 10/22/2013 Page 165 / 198
Purchasing Division of Legal Department
INTEROFFICE MEMORANDUM
Stacy Nonhof, Purchasing Agent
Working Together for a
Better Tomorrow, Today
BID OPENING
BID OPENING DATE:October 15, 2013 at 2:15 p.m.
FOR:Snow Removal Services 2013-2014
DEPARTMENT:Public Works
ESTIMATE:Trucks for Hauling Snow $150.00 per hour
Front End Loaders $185.00 per hour
Motor Graders $200.00 per hour
Truck Plows $130.00 per hour
FUND/ACCOUNT:10033502-85213
PUBLICATION DATE:October 5, 2013
NO. POTENTIAL BIDDERS:9
SUMMARY
Bidder:The Diamond Engineering Co.
Grand Island, NE
Exceptions:None
Bid Price:
Trucks:$120.00 per hr.
Front End Loaders:$165.00 per hr.
Motor Graders:$175.00 per hr.
Truck Plows:No Bid
cc:John Collins, Public Works Director Catrina DeLosh, PW Admin. Assist.
Mary Lou Brown, City Administrator Shannon Callahan, Street Supt.
Stacy Nonhof, Purchasing Agent Jaye Monter, Finance Director
P1683
Grand Island Council Session - 10/22/2013 Page 166 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-345
WHEREAS, the City Of Grand Island invited sealed bids for Snow Removal
Services, according to specifications on file in the office of the Public Works Department; and
WHEREAS, on October 15, 2013, one bid was received, opened and reviewed;
and
WHEREAS, The Diamond Engineering Company 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 $120.00 per hour
Front End Loaders $165.00 per hour
Motor Graders $175.00 per hour
Truck Plows $ NO BID
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of The Diamond Engineering
Company of Grand Island, Nebraska for snow removal services 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 services 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 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 167 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item G-9
#2013-346 - Approving Renewal of Long Term Disability Policy
Staff Contact: Brenda Sutherland
Grand Island Council Session - 10/22/2013 Page 168 / 198
Council Agenda Memo
From:Brenda Sutherland, Human Resources Director
Meeting:October 22, 2013
Subject:Approving Renewal of Long Term Disability Policy
Item #’s:G-9
Presenter(s):Brenda Sutherland, Human Resources Director
Background
The City of Grand Island provides Long Term Disability coverage to employees as
agreed to through labor agreements or as approved in the Personnel Rules. The City has
contracted with Cigna Group Insurance for the last three years to provide this coverage.
The current rate for coverage is .18 cents per $100 of wages. The contract with Cigna
will expire at midnight on November 30, 2013.
Discussion
Cigna has provided a valuable benefit to several employees at the City of Grand Island.
Our current loss ratio is rather high due to a large number of ongoing claims. The City’s
current loss ratio is 274.85%. Cigna has offered a two year contract extension at the
current negotiated price of .18 cents per $100 of covered payroll with no underwriting
should the City agree to a two year renewal. Due to our current claims history, I believe
it is in the City’s best interest to accept the two year extension at the current rate and shop
at a time that our claims history is more positively positioned.
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 - 10/22/2013 Page 169 / 198
Recommendation
City Administration recommends that the Council approve the contract with CIGNA
Group Insurance companies to provide Long Term Disability coverage.
Sample Motion
Move to approve a contract with CIGNA Group Insurance companies to provide Long
Term Disability Insurance coverage.
Grand Island Council Session - 10/22/2013 Page 170 / 198
Grand Island Council Session - 10/22/2013 Page 171 / 198
Grand Island Council Session - 10/22/2013 Page 172 / 198
Grand Island Council Session - 10/22/2013 Page 173 / 198
Grand Island Council Session - 10/22/2013 Page 174 / 198
Grand Island Council Session - 10/22/2013 Page 175 / 198
Grand Island Council Session - 10/22/2013 Page 176 / 198
Grand Island Council Session - 10/22/2013 Page 177 / 198
Grand Island Council Session - 10/22/2013 Page 178 / 198
Grand Island Council Session - 10/22/2013 Page 179 / 198
Grand Island Council Session - 10/22/2013 Page 180 / 198
Grand Island Council Session - 10/22/2013 Page 181 / 198
Grand Island Council Session - 10/22/2013 Page 182 / 198
Grand Island Council Session - 10/22/2013 Page 183 / 198
Grand Island Council Session - 10/22/2013 Page 184 / 198
Grand Island Council Session - 10/22/2013 Page 185 / 198
Grand Island Council Session - 10/22/2013 Page 186 / 198
Grand Island Council Session - 10/22/2013 Page 187 / 198
Grand Island Council Session - 10/22/2013 Page 188 / 198
Grand Island Council Session - 10/22/2013 Page 189 / 198
Grand Island Council Session - 10/22/2013 Page 190 / 198
Grand Island Council Session - 10/22/2013 Page 191 / 198
Grand Island Council Session - 10/22/2013 Page 192 / 198
Grand Island Council Session - 10/22/2013 Page 193 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-346
Whereas, the City provides long term disability insurance to employees as
prescribed in labor agreements and as authorized by the City of Grand Island Personnel
Rules; and
WHEREAS, The City of Grand Island has had a contract with Cigna
Group Insurance since December 1, 2010 and has been offered a two year renewal
contract with no price increase; and
WHEREAS, The cost for Long Term Disability Insurance benefits will be
.18 per $100 of wages; and
WHEREAS, the proposed rate is guaranteed for a two year contract
period; and
WHEREAS, the contract will commence on December 1, 2013 and will
renew annually through November 30, 2015.
NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND
COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA that the Long Term
Disability Insurance contract with CIGNA Group Insurance is hereby approved.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, October 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 194 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item I-1
#2013-347 - Consideration of Approving Declaration of a Site
Known as Redevelopment Area 13 Located North of Phoenix
Avenue and West of Lincoln Avenue
This item relates to the aforementioned Public Hearing item E-1.
Staff Contact: Chad Nabity
Grand Island Council Session - 10/22/2013 Page 195 / 198
Approved as to Form ¤ ___________
October 18, 2013 ¤ City Attorney
R E S O L U T I O N 2013-347
WHEREAS, on June 27, 1994, the City of Grand Island enacted Ordinance No.
8021 creating the Community Redevelopment Authority of the City of Grand Island, Nebraska,
to address the need for economic development opportunities through the vehicles provided in the
Nebraska Community Development law at Neb. Rev. Stat. §18-2101, et seq., as amended; and
WHEREAS, Gary Jacobsen has caused to be prepared a Blight and Substandard Study
for an area referred to as Area No. 13; and
WHEREAS, Marvin Planning Consultants completed such Blight and
Substandard Study and has determined that the area should be declared as substandard or
blighted area in need of redevelopment; and
WHEREAS, Gary Jacobsen presented such study to the Grand Island City
Council on September 10, 2013 and
WHEREAS, on September 10, 2013 the Grand Island City Council referred such
study to the Hall County Regional Planning Commission for review and recommendation; and
WHEREAS, the Regional Planning Commission held a public hearing and
recommended approval of such study at its October 2, 2013 meeting; and
WHEREAS, a public hearing to consider approval of a Blighted and Substandard
designation was held on September 22, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Blight and Substandard Study for
Redevelopment Area No. 13 as identified above is hereby approved, and those areas identified in
said study are declared to be blighted and substandard and in need of redevelopment as
contemplated in the Community Development law.
- - -
Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2013.
_______________________________________
Jay Vavricek, Mayor
Attest:
_______________________________________
RaNae Edwards, City Clerk
Grand Island Council Session - 10/22/2013 Page 196 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item J-1
Approving Payment of Claims for the Period of October 9, 2013
through October 22, 2013
The Claims for the period of October 9, 2013 through October 22, 2013 for a total amount of
$6,390,601.71. A MOTION is in order.
Staff Contact: Jaye Monter
Grand Island Council Session - 10/22/2013 Page 197 / 198
City of Grand Island
Tuesday, October 22, 2013
Council Session
Item X-1
Strategy Session with Respect to Pending Litigation
The City Council may hold a closed or Executive Session as permitted by Neb. Rev. Stat. Sec. 84-1410.
Closed sessions may be held for, but shall not be limited to such reasons as:
1. Protection of the public interest.
2. Needless injury to the reputation of an individual.
3. Strategy sessions with respect to
a. collective bargaining,
b. real estate purchases,
c. pending litigation, or
d. imminent or threatened litigation.
4. Discussion regarding deployment of security personnel or devices.
5. For the Community Trust created under Sec. 81-1801.02, discussion regarding the amounts to be
paid to individuals who have suffered from a tragedy of violence or natural disaster.
Staff Contact: Robert Sivick
Grand Island Council Session - 10/22/2013 Page 198 / 198