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10-28-2014 City Council Regular Meeting Packet City of Grand Island Tuesday, October 28, 2014 Council Session Packet City Council: Linna Dee Donaldson John Gericke Peg Gilbert Chuck Haase Julie Hehnke Kent Mann Vaughn Minton Mitchell Nickerson Mike Paulick Mark Stelk 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 - 10/28/2014 Page 1 / 269 City of Grand Island Tuesday, October 28, 2014 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 Bill Rowland, Beacon of Hope Church, 2525 West State Street Pledge of Allegiance Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. Grand Island Council Session - 10/28/2014 Page 2 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item C-1 Proclamation “National Adoption Month” November, 2014 There are an estimated 3,096 children in Nebraska in the foster care system waiting for adoptive homes, some of whom live in Grand Island. By the end of December 2014 fourteen children in the Grand Island area who are in foster care will finalize adoption. Mayor Vavricek has proclaimed the month of November, 2013 as "National Adoption Month" and would encourage citizens to help secure permanent, loving homes for each and every child in Grand Island. See attached PROCLAMATION. Staff Contact: Jay Vavricek Grand Island Council Session - 10/28/2014 Page 3 / 269 Grand Island Council Session - 10/28/2014 Page 4 / 269 Grand Island Council Session - 10/28/2014 Page 5 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item -1 Approving Appointment of Yolanda Chavez Nuncio to City Council Ward 1 Mayor Jay Vavricek has submitted the name of Yolana Chavez Nuncio for appointment as Councilmember to represent Ward 1. This vacancy was created when Councilmember Kent Mann confirmed a residency change out of Ward 1 has occurred. As is required by City Code Section 2-25, "The mayor shall fill by appointment any vacancy which may exist, caused by death, resignation or disability of any elective officer of the City. Such appointment of the mayor shall be subject, however, to approval of the majority of the council." A MOTION is in order. Staff Contact: Mayor Vavricek Grand Island Council Session - 10/28/2014 Page 6 / 269 Grand Island Council Session - 10/28/2014 Page 7 / 269 Grand Island Council Session - 10/28/2014 Page 8 / 269 Grand Island Council Session - 10/28/2014 Page 9 / 269 Grand Island Council Session - 10/28/2014 Page 10 / 269 Grand Island Council Session - 10/28/2014 Page 11 / 269 Grand Island Council Session - 10/28/2014 Page 12 / 269 Grand Island Council Session - 10/28/2014 Page 13 / 269 Grand Island Council Session - 10/28/2014 Page 14 / 269 Grand Island Council Session - 10/28/2014 Page 15 / 269 Grand Island Council Session - 10/28/2014 Page 16 / 269 Grand Island Council Session - 10/28/2014 Page 17 / 269 Grand Island Council Session - 10/28/2014 Page 18 / 269 Grand Island Council Session - 10/28/2014 Page 19 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item -2 Administration of Oath of Office to Newly Appointed Councilmember City Clerk RaNae Edwards will administer the Oath of Office to newly appointed Councilmember Yolanda Chavez Nuncio - Ward 1. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/28/2014 Page 20 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-1 Public Hearing on Request from Arts and Drafts LLC dba Arts and Drafts, 214 & 216 North Locust Street for a Class “I” Liquor License Staff Contact: RaNae Edwards Grand Island Council Session - 10/28/2014 Page 21 / 269 Council Agenda Memo From:RaNae Edwards, City Clerk Meeting:October 28, 2014 Subject:Public Hearing on Request from Arts and Drafts LLC dba Arts and Drafts, 214 & 216 North Locust Street for a Class “I” Liquor License Item #’s:E-1 & I-1 Presenter(s):RaNae Edwards, City Clerk Background Section 4-2 of the Grand Island City Code declares the intent of the City Council regarding liquor licenses and the sale of alcohol. Declared Legislative Intent It is hereby declared to be the intent and purpose of the city council in adopting and administering the provisions of this chapter: (A)To express the community sentiment that the control of availability of alcoholic liquor to the public in general and to minors in particular promotes the public health, safety, and welfare; (B)To encourage temperance in the consumption of alcoholic liquor by sound and careful control and regulation of the sale and distribution thereof; and (C)To ensure that the number of retail outlets and the manner in which they are operated is such that they can be adequately policed by local law enforcement agencies so that the abuse of alcohol and the occurrence of alcohol-related crimes and offenses is kept to a minimum. Discussion Arts and Drafts LLC dba Arts and Drafts, 214 & 216 North Locust Street has submitted an application for a Class “I” Liquor License. A Class “I” Liquor License allows for the sale of alcohol on sale inside the corporate limits of the city. City Council action is required and forwarded to the Nebraska Liquor Control Commission for issuance of all licenses. This application has been reviewed by the Clerk, Building, Fire, Health, and Police Departments. Grand Island Council Session - 10/28/2014 Page 22 / 269 Also submitted with the application was a request from Jill Canfield, 1623 West 1st Street for a Liquor Manager Designation. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the application. 2.Forward to the Nebraska Liquor Control Commission with no recommendation. 3.Forward to the Nebraska Liquor Control Commission with recommendations. 4.Deny the application. Recommendation Based on the Nebraska Liquor Control Commission’s criteria for the approval of Liquor Licenses, City Administration recommends that the Council approve this application. Sample Motion Move to approve the application for Arts and Drafts LLC dba Arts and Drafts, 214 & 216 North Locust Street for a Class “I” Liquor License contingent upon final inspections and Manager Designation for Jill Canfield, 1623 West 1st Street contingent upon completion of a state approved alcohol server/seller training program. Grand Island Council Session - 10/28/2014 Page 23 / 269 10/20/14 Grand Island Police Department 450 15:32 LAW INCIDENT TABLE Page: 1 City : Grand Island Occurred after : **:**:** **/**/**** Occurred before : **:**:** **/**/**** When reported : 08:00:00 10/07/2014 Date disposition declared : **/**/**** Incident number : L14100708 Primary incident number : Incident nature : Liquor Lic Inv Liquor Lic Inv Incident address : 214 Locust St N State abbreviation : NE ZIP Code : 68801 Contact or caller : Complainant name number : Area location code : PCID Police - CID Received by : Vitera D How received : Agency code : GIPD GIPD Grand Island Police Dept Responsible officer : Vitera D Offense as Taken : Offense as Observed : Disposition : Misc. number : RaNae Geobase address ID : Long-term call ID : Clearance Code : CL CL Case Closed Judicial Status : NCI Non-criminal Incident = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = INVOLVEMENTS: Px Record # Date Description Relationship ----------------------------------------------------------------------- NM 40422 10/08/14 Canfield, Russel A Jill's Spouse NM 102865 10/08/14 Canfield, Jill A Owner/Manager NM 195811 10/08/14 Arts and Drafts, Business LAW INCIDENT CIRCUMSTANCES: Se Circu Circumstance code Miscellaneous -- ----- ------------------------------ -------------------- 1 LT24 LT24 Specialty Store LAW INCIDENT NARRATIVE: **---------------------------------------- (lwmain09493210082014)** I Received a Copy of a Class I (beer, wine, distilled spirits, on sale only) LLC Liquor License Application from Jill and Russel Canfield for a Business called Arts and Drafts. ~~---------------------------------------- (lwmain09493210082014)~~ Grand Island Council Session - 10/28/2014 Page 24 / 269 LAW INCIDENT OFFENSES DETAIL: Se Offe Offense code Arson Dama -- ---- ------------------------------ ---------- 1 AOFF AOFF Alcohol Offense 0.00 LAW INCIDENT RESPONDERS DETAIL: Se Responding offi Unit n Unit number -- --------------- ------ ------------------------------ 1 Vitera D 318 Vitera D LAW SUPPLEMENTAL NARRATIVE: Seq Name Date --- --------------- ------------------- 1 Vitera D 15:17:49 10/13/2014 Grand Island Police Department Supplemental Report Date, Time: Mon Oct 13 15:18:02 CDT 2014 Reporting Officer: Vitera Unit- CID I received a copy of a Class I (beer, wine, distilled spirits, on sale only) LLC retail liquor license from Jill and Russel Canfield for a business called "Arts and Drafts." Arts and Drafts is a studio where customers will sign up for art classes and be led step-by-step through a project by an instructor while being able to consume alcoholic beverages during the process. The business won't be open all the time, and they won't accept walk-ins. The studio will only be open for painting/craft events. Each event will last about two and one half to three hours. The anticipated hours of operation for the business are a few hours on Thursday, Friday, Saturday, and Sunday. While perusing the application, I noticed that the Canfield's were born in Grand Island and have lived here ever since. Jill didn't disclose any criminal convictions while Russel disclosed a speeding ticket and a ticket for following too closely. I checked the Canfield's through Spillman and NCJIS. Jill didn't have any convictions listed in Spillman or NCJIS. Russel didn't have any convictions listed in Spillman. The only conviction he had listed in NCJIS is two counts of violating motor carrier safety regulations on 6/11/08. I also did a general Internet search for the Canfield's. I located a face book page for Jill but couldn't pinpoint anything for Russel. The last check I made was through a paid law enforcement-only database, and no information was obtained that would be damaging to the application. Nebraska State Patrol Investigator Dan Fiala and I met with Jill Canfield at her place of business on 10/15/14. Investigator Fiala went over a checklist of questions. I didn't really have any questions for her. We Grand Island Council Session - 10/28/2014 Page 25 / 269 talked about potential issues she may encounter and how to handle them. Other than that, Jill reiterated that her business is not a bar, and the alcohol sales are secondary to the art classes. She said that people will have to sign up for her classes and pay a fee (believe $35) to take them. She will not be open to people walking in off the street. From speaking with Jill and Investigator Fiala, it appears that the Building and/or Health Department may have an issue with Jill only having one bathroom in the business. Jill has asked the NLCC for a waiver, but according to Investigator Fiala, Jill may have to attend a hearing in front of the NLCC regarding the bathroom issue. From strictly a law enforcement perspective, the Grand Island Police Department has no objection to Arts and Drafts receiving a liquor license or to Jill Canfield becoming the liquor manager. Grand Island Council Session - 10/28/2014 Page 26 / 269 OAK ST S1ST ST W PI N E S T N 3RD ST W 2N D ST W O A K S T N WA L N U T S T N E L M S T N E L M S T S 4TH ST E4TH ST W KO ENIG ST W 2ND ST E5TH ST W 3RD ST E1ST ST ECHARLES ST W S Y C A M O R E S T N6TH ST W E D D Y S T S C E D A R S T S5TH ST EPINE ST S7TH ST W KIMBALL AVE SC L E B U R N S T S C L A R K S T S PI ER PA R K LOUISE ST WDIVISION ST W SYCAMORE ST SKO ENIG ST E ASHTON AVE E C E D A R S T N E D D Y S T N L O C U S T S T N VI N E S T N6TH ST EC L E B U R N S T N JOHN ST W LOCUST ST SSOUTH FRO NT ST EW A L N U T S T S DIVISION ST ECHARLES ST ESOUTH FRONT ST W8TH ST W KI M B A L L A V E N WH E E L E R A V E NNORTH FRONT ST W PLUM ST N COURT ST E SCHUFF STWH E E L E R A V E S ASHTON AVE W UPRR DR2ND ST W C E D A R S T N CHARLES ST W W A L N U T S T S PINE ST SWH E E L E R A V E N LOCUST ST SL O C U S T S T N VI N E S T N LOUISE ST W µ Liquor ApplicationArts & Drafts214/216 N L ocust S t. Class " I " Legen d Street Centerline Liq uor License Locations214_216 N Locust St. 1500' Radius Grand Island Council Session - 10/28/2014 Page 27 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-2 Public Hearing on Request from Third City Christian Church for a Conditional Use Permit for Temporary Parking Lot Extension located at 4100 West 13th Street Staff Contact: Craig Lewis Grand Island Council Session - 10/28/2014 Page 28 / 269 Council Agenda Memo From:Craig Lewis, Building Department Director Meeting:October 28, 2014 Subject:Request of Third City Christian Church for Renewal of a Conditional Use Permit for a Temporary Parking Lot at 4100 West 13th Street Item #’s:E-2 & H-1 Presenter(s):Craig Lewis, Building Department Director Background This is a request from Third City Christian Church to allow for the renewal of a temporary parking lot at 4100 West 13th Street. This request is to facilitate additional parking for the Church during a comprehensive survey and study to identify future growth and space needs. The property is currently zoned R-2, Low Density Residential Zone, that zoning classification allows churches and accessory uses but would require the parking lot improvements to comply with the City Code for improved surfaces. Approvals are required as the applicant wishes to continue to utilize the 100’x 250’ gravel parking lot approved in 2010 and an additional 150’ x 240’ gravel area approved in 2012. City Code does provide for City Council approval of temporary uses, not to exceed two years in undeveloped areas and six months in developed areas. Discussion The placement of gravel for a surface as opposed to a permanent hard surface of asphalt or concrete would be allowed by code only as a temporary use approved by the City Council. The request for an additional two years will allow the Church to complete a study and survey the congregation to identify future growth and facility needs. Two conditions placed on the original approval were: 1). A landscape buffer included within the required 25’ front yard setback along the south boundary adjacent to 13th Street needs to be provided to comply with setback requirements of the City Code, and Grand Island Council Session - 10/28/2014 Page 29 / 269 2). The responsibility of controlling any dust created from the lots needs to be addressed by the applicant during any dry months throughout the duration of the use. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the request for a conditional use permit finding that the proposed application is and will continue to be in conformance with the purpose of the zoning regulation. 2.Disapprove or /Deny the Request finding that the application does not conform to the purpose of the zoning regulations. 3.Approve the request with additional or revised conditions and a finding of fact. 4.Refer the matter to a special committee for a determination of a finding of fact. Recommendation City Administration recommends that the Council approve the request with the conditions identified finding that the proposed use and application promotes the health, safety, and general welfare of the community, protects property against blight and depreciation, and is generally harmonious with the surrounding neighborhood. Sample Motion Move to approve the request for a conditional use permit to allow a temporary parking lot with a gravel surface for a two year period, including staff recommended conditions, finding that the application conforms with the purpose of the zoning regulations. Grand Island Council Session - 10/28/2014 Page 30 / 269 Grand Island Council Session - 10/28/2014 Page 31 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-3 Public Hearing on Acquisition of Utility Easement - 924 Claude Road (Buehler Properties, LLC) Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 10/28/2014 Page 32 / 269 Council Agenda Memo From:Tim Luchsinger, Utilities Director Meeting:October 28, 2014 Subject:Acquisition of Utility Easement – 924 Claude Road – Buehler Properties, LLC Item #’s:E-3 & G-6 Presenter(s):Timothy Luchsinger, Utilities Director Background Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire an easement relative to the property of Buehler Properties, LLC, located along the east property line of a business located at 924 Claude Road, in the City of Grand Island, Hall County, in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers. Discussion Lift Solutions has constructed a new building to expand their operations. This requires a new electrical service to the new building. This easement will be used to place underground conduit, cable, and a pad-mounted transformer to provide the new three phase service. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Make a motion to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for one dollar ($1.00). Sample Motion Move to approve acquisition of the Utility Easement. Grand Island Council Session - 10/28/2014 Page 33 / 269 Grand Island Council Session - 10/28/2014 Page 34 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-4 Public Hearing on Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Menard) Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 35 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Public Hearing on Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Menard) Item #’s:E-4 & G-12 Presenter(s):John Collins PE, Public Works Director Background Public Works Staff in conjunction with the design engineer, Black & Veatch of Kansas City, Missouri have developed a multi-year replacement plan for the City of Grand Island’s large diameter gravity sanitary sewer interceptor network. The current planned interceptor, entitled the “North Interceptor” will replace aged force main sanitary sewer, reduce or eliminate current sewer pumping station(s), and provide additional capacity for existing and new growth areas of Grand Island. The new North Interceptor route was developed to incorporate, and partner with other utilities for the Capital Avenue Widening Project, and the new Headworks Pumping Station Project at the Wastewater Treatment Plant. This project is funded by SRF Project No. C317867-01, however easements, legal fees & administrative costs are not reimbursable by these funds. A phased approach of constructing the North Interceptor is as follows: Phase I - Wastewater Treatment Plant (WWTP) to 7th Street / Skypark Road Phase II (Part A) - 7th Street / Skypark Road to Broadwell Avenue Phase II (Part B) - Broadwell Avenue to Webb Road Phase II (Part C) - Webb Road to Diers Avenue (Lift Station No. 19) Nebraska State Statutes stipulate that the acquisition of property requires a public hearing and approval by the City Council. A public utility easement is needed in the North Interceptor Phase II, Part C project to accommodate public utilities. The easement will allow for construction, operation, maintenance, extension, repair, replacement and removal of public utilities within the easement. Grand Island Council Session - 10/28/2014 Page 36 / 269 This project is funded by the State Revolving Funds (SRF) Project #C317981-01. Discussion A permanent easement is needed from one (1) property owner in this project area. All documents have been signed and returned by the property owner. Authorization of the document is contingent upon City Council approval. Following is a summary of the payments, totaling $17,600.00, for the property. Tract No Owner Legal Total 16 John R. Menard THE NORTH 30.00 FEET OF LOT SIX (6), MENARD SECOND SUBDIVISION, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 7,039 SQUARE FEET OR 0.162 ACRES MORE OR LESS. $17,600.00 TOTAL $17,600.00 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council conduct a Public Hearing and approve acquisition of the Permanent Easement in the amount of $17,600.00. Sample Motion Move to approve the acquisition of the easement. Grand Island Council Session - 10/28/2014 Page 37 / 269 Grand Island Council Session - 10/28/2014 Page 38 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-5 Public Hearing on Acquisition of Public Utility Easement in Rainbow Lake Sixth Subdivision (SSB Development, LLC) Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 39 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Public Hearing on Acquisition of Public Utility Easement in Rainbow Lake Sixth Subdivision (SSB Development, LLC) Item #’s:E-5 & G-14 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. A public utility easement needs to be dedicated on the northern end of Lots 1-9 in Rainbow Lake Sixth Subdivision to allow for further development of the area. Discussion This easement will allow for placement and maintenance of utilities within the Rainbow Lake Sixth Subdivision, and permit further housing development. The new easement will be a total of fifteen (15) feet wide, as shown on the attached drawing. 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 - 10/28/2014 Page 40 / 269 Recommendation City Administration recommends that the Council conduct a Public Hearing and approve acquisition of the public utility easement in Rainbow Lake Sixth Subdivision. Sample Motion Move to approve the acquisition of the public utility easement. Grand Island Council Session - 10/28/2014 Page 41 / 269 Grand Island Council Session - 10/28/2014 Page 42 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item E-6 Public Hearing on Amendment to the Redevelopment Plan for CRA Area 9 located at 2228 N. Webb Road known as Northwest Commons or the former “Grand Island Mall” Staff Contact: Chad Nabity Grand Island Council Session - 10/28/2014 Page 43 / 269 Council Agenda Memo From:Chad Nabity, AICP Meeting:August 26, 2014 Subject:Amendment to Redevelopment Plan for CRA Area #9 Item #’s:E-6, F-3, & I-5 Presenter(s):Chad Nabity, AICP CRA Director Background In 2012, the Grand Island City Council declared property referred to as CRA Area 9 as blighted and substandard and approved a generalized redevelopment plan for the property. The generalized redevelopment plan authorized the use of Tax Increment Financing (TIF) for the acquisition of property, redevelopment of property, site preparation including demolition, landscaping and parking. TIF can also be used for improvements to and expansion of existing infrastructure including but not limited to: streets, water, sewer, drainage. The developer intends to use TIF and an occupation tax in an enhanced employment area to aid in renovation of the existing retail space at this site. This project would not be possible without the use of TIF. The property is located within Redevelopment Area 9 at 2228 N Webb Road, Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of the Grand Island Mall Fifteenth Subdivision in Grand Island, Nebraska. A redevelopment plan for this project and a confirming resolution declaring the area eligible as an Enhanced Employment Area (EEA) were approved by Council on August 26, 2014. Following that meeting and those approvals Bond Counsel has recommended that the redevelopment plan be amended to include improvements and financing afforded by the EEA so the CRA is presenting an amended and restated redevelopment plan for Council approval. The CRA reviewed the revised redevelopment plan on September 22, 2014 and forwarded it to the Hall County Regional Planning Commission for recommendation at their meeting on October 1, 2014. The CRA also sent notification to the City Clerk of their intent to enter into a redevelopment contract for this project pending Council approval of the plan amendment. Grand Island Council Session - 10/28/2014 Page 44 / 269 The Hall County Regional Planning Commission held a public hearing on the plan amendment at a meeting on October 1, 2014. The Planning Commission approved Resolution 2015-01 in support of the proposed amendment, declaring the proposed amendment to be consistent with the Comprehensive Development Plan for the City of Grand Island. Discussion Tonight, Council will hold a public hearing to take testimony on the proposed plan amendment (including the cost benefit analysis that was performed regarding this proposed project) and to enter into the record a copy of the plan amendment and application for TIF. Council will also consider the contract for TIF and EEA bonds and the passage of an occupation tax on the area as a source of funding for the EEA bonds. Council is being asked to approve a resolution approving the cost benefit analysis as presented in the redevelopment plan along with the amended redevelopment plan for CRA Area 9 and authorizes the CRA to execute a contract for TIF based on the plan amendment. This includes the renovation, reconfiguration and expansion of existing retail space located with the Grand Island Mall property north of Shopko and south of Dollar Tree at 2828 N Webb Road. The cost benefit analysis included in the plan finds that this project meets the statutory requirements for an eligible TIF project and that it will not negatively impact existing services within the community or shift additional costs onto the current residents of Grand Island and the impacted school districts. The total tax increment financing allowed for this project may not exceed $5,600,000 during this 15 year period. This is $800,000 less than the TIF that was previously approved as some of those expenses have been shifted to the EEA bonds. Council is also being asked to approve the ordinance that will subject the area within the EEA to an additional 1% occupation tax on all taxable sales except those specifically prohibited and to authorize the Mayor and Clerk to sign the necessary agreements for this project. The EEA Bonds to be paid off with the occupation tax would be issued with a principal not to exceed $4,000,000 for allowable redevelopment activities as defined in the contract. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve the resolution 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Grand Island Council Session - 10/28/2014 Page 45 / 269 Recommendation The CRA and Hall County Regional Planning Commission recommend that the Council approve the Resolution necessary for the adoption and implementation of this plan as well as the ordinance authorizing the occupation tax and appropriate signatures on the necessary contracts. Sample Motion Move to approve the resolution as submitted. Move to approve the ordinance as submitted. Grand Island Council Session - 10/28/2014 Page 46 / 269 Amended & Restated Site Specific Redevelopment Plan Grand Island CRA Area 9 September 2014 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area 9 with in the city, pursuant to the Nebraska Community Development Law (the “Act”) and provide for the financing of a specific infrastructure related project in Area 9. Executive Summary: Project Description THE RENOVATION AND REDEVELOPMENT OF THE GRAND ISLAND MALL AT 2228 N WEBB ROAD LOT 10 OF GRAND ISLAND MALL EIGHTH SUBDIVSION AND LOT 2 OF GRAND ISLAND MALL FIFTHTEEN SUBDIVISION. THE SUBSEQUENT SITE WORK, UTILITY, ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR REDEVELOPMENT AND RENOVATION AT THIS LOCATION. The developer intends to use Tax Increment Financing to aid in renovation and conversion of 128,000 square feet of leasable ‘open air’ tenant space and the development of out parcels on the existing mall property. The developer intends to connect a drive between the east and west sides of the mall by opening a vehicle and pedestrian plaza through the center of the mall creating additional tenant spaces with exterior entrances. The developer is trying to attract national retailers as an anchor to the shopping center. This project would not be possible in an affordable manner without the use of TIF. The site is owned by the developer. All site work, demolition and utilities will be paid for by the developer. The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with the acquisition, site work and remodeling. The Grand Island Community Redevelopment Authority (“CRA” or “Authority”) intends to pledge the ad valorem taxes generated over the 15 year period beginning January 1, 2016 towards the allowable costs and associated financing for the remodeling and site work. In addition, the CRA intends to designate a portion of Area 9 an enhanced employment area as eligible for the imposition of an occupation tax pursuant to the Act. I. TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE PROPERTY AND RELATED SITE WORK WILL COME FROM THE FOLLOWING REAL PROPERTY: Property Description (the “Redevelopment Project Area”) Grand Island Council Session - 10/28/2014 Page 47 / 269 This property is located between State Street and Capital Avenue and between U.S. Highway 281 and Webb Road in northwest Grand Island. The attached map identifies the subject property and the surrounding land uses:  Legal Descriptions Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of the Grand Island Mall Fifteenth Subdivision in the City of Grand Island, Hall County, Nebraska. It is anticipated that these will be replatted to facilitate the redevelopment. Grand Island Council Session - 10/28/2014 Page 48 / 269 Grand Island Council Session - 10/28/2014 Page 49 / 269 The tax increment will be captured for the tax years the payments for which become delinquent in years 2016 through 2030 inclusive. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from rehabilitation of the vacant commercial space into smaller tenant spaces. Statutory Pledge of Taxes. Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in the Redevelopment Project Area shall be divided, for the period not to exceed 15 years after the effective date of the provision, which effective date shall be January 1, 2015. Said taxes shall be divided as follows: a. That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the redevelopment project valuation shall be paid into the funds, of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That portion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of; the interest on, and any premiums due in connection with the bonds, loans, notes, or advances on money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, a redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such redevelopment project shall be paid into the funds of the respective public bodies. Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged to the repayment of loans or advances of money, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: The Community Development Law requires that a Redevelopment Plan and Project consider and comply with a number of requirements. This Plan Amendment meets the statutory qualifications as set forth below. 1. The Redevelopment Project Area has been declared blighted and substandard by action of the Grand Island City Council on April 24, 2012. [§18-2109] Such declaration was made after a public hearing with full compliance with the public notice requirements of §18-2115 of the Act. Grand Island Council Session - 10/28/2014 Page 50 / 269 2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13) (a) and §18-2110] Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan amendment and project are consistent with the Comprehensive Plan, in that no changes in the Comprehensive Plan elements are intended. This plan merely provides funding for the developer to rehabilitate an existing conforming use on this property. 3. The Redevelopment Plan must be sufficiently complete to address the following items: [§18-2103(13) (b)] a. Land Acquisition: There is no proposed acquisition by the authority or the developer. b. Demolition and Removal of Structures: The project to be implemented with this plan amendment does not call for the demolition and removal of any existing structures. Partial demolition and renovation of the existing Grand Island Mall will be necessary to facilitate the planned development and vehicular and pedestrian plaza between the east and west sides of the Mall. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. The site is planned for highway commercial development. [§18-2103(b) and §18-2111] The attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)] Grand Island Council Session - 10/28/2014 Page 51 / 269 City of Grand Island Future Land Use Map Grand Island Council Session - 10/28/2014 Page 52 / 269 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned CD Commercial Development zone. The CD zone is a planned unit development with the look, style placement and size of the buildings approved by with a Development Plan approved by the Grand Island City Council. The proposed redevelopment will require a revised development plan for the Grand Island Mall Commercial Development zone. No changes are anticipated in street layouts or grades. No changes are anticipated in building codes or ordinances. No other planning changes are contemplated. The proposed use for commercial retail space is permitted in the CD zoning district. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing rehabilitate the existing structure a conforming structure and use in the CD zoning district and add additional structures as may be permitted with a revised development plan. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities This site has full service to municipal utilities. No utilities would be impacted by the development. It is anticipated that the developer will need to extend sewer and water to various new lots to be created on this property. All improvements will be paid for by the developer. The developer will be responsible for replacing any sidewalks damaged during construction of the project. No other utilities would be impacted by the development. [§18-2103(b) and §18-2111] 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. This property, owned by the developer is maintained as retail center. The proposed use of this property would continue as a retail commercial space. No individuals or families will be relocated as a result of this project.[§18-2103.02] 5. No member of the Authority, nor any employee thereof holds any interest in any property in this Redevelopment Project Area. [§18-2106] 6. Section 18-2114 of the Act requires that the Authority consider: a. Method and cost of acquisition and preparation for redevelopment and estimated proceeds from disposal to redevelopers. Grand Island Council Session - 10/28/2014 Page 53 / 269 The developer has owned the property since 2013 it was acquired at a cost of $1,818,000. The cost of property acquisition is not being included as a TIF eligible expense. Costs for rehabilitation of the existing structures and onsite improvements including the extension of utilities is estimated at $20,268,210. Fees and reimbursement to the City and the CRA will be included as a TIF eligible expense, which costs are estimated at $35,000. No property will be transferred to redevelopers by the Authority. The developer will provide and secure all necessary financing. b. Statement of proposed method of financing the redevelopment project. The developer will provide all necessary financing for the project. The Authority will assist the project by granting the sum of $5,600,000 from the proceeds of the TIF Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax Increment Revenues generated from the project. TIF revenues shall be made available to repay the original debt and associated interest after January 1, 2016 through December 31, 2030. c. Statement of feasible method of relocating displaced families. No families will be displaced as a result of this plan. 7. Section 18-2113 of the Act requires: Prior to recommending a redevelopment plan to the governing body for approval, an authority shall consider whether the proposed land uses and building requirements in the redevelopment project area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations or conditions of blight. The Authority has considered these elements in proposing this Plan Amendment. This amendment, in and of itself will promote consistency with the Comprehensive Plan, in that it will allow for the utilization of and redevelopment of commercial lots. This will not significantly impact traffic at this location. Renovated commercial development will raise property values and provide a stimulus to keep surrounding properties properly Grand Island Council Session - 10/28/2014 Page 54 / 269 maintained. This will have the intended result of preventing recurring elements of unsafe buildings and blighting conditions. 8. Time Frame for Development Development of this project (including demolition, site preparation and new construction) is anticipated to be completed between October 2014 and June of 2016. Additional buildings will be added as the market permits. Excess valuation should be available for this project for 15 years beginning with the 2016 tax year. 9. Justification of Project The U.S. Highway 281 Corridor is a major entrance for the City of Grand Island from the north and from I-80. The majority of the new commercial development in Grand Island in the past 10 years has occurred along this stretch of highway. The Grand Island Mall area was one of the first pieces in this corridor to develop. The pattern that has been most successful with buildings facing onto U.S. 281 was not as obvious a pattern for success as it is today. The opportunity to partner with owners of key building along this corridor as they redevelop and reinvest in their properties is important to making those favorable first impressions. Buildings to both the north and the south of this property have been redeveloped with faces toward both U.S. 281 and Webb Road. The completion of this project will transform this area. 10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority conduct a cost benefit analysis of the plan amendment in the event that Tax Increment Financing will be used. This analysis must address specific statutory issues. As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat. (2012), the City of Grand Island has analyzed the costs and benefits of the proposed Grand Island Mall Redevelopment Project, including: Project Sources and Uses. Approximately $5,600,000 in public funds from tax increment financing provided by the Grand Island Community Redevelopment Authority will be required to complete the project. This investment by the Authority will leverage $14,668,210 of other investment by the Developer; a non TIF investment of $2.61 for every TIF dollar investment.1 1 This does not include any investment in personal property at this time. Grand Island Council Session - 10/28/2014 Page 55 / 269 Use of Funds. Description TIF Funds Other Funds Total Site Acquisition Site preparation $ 3,165,805 $ 3,165,805 Legal and Plan* $ 35,000 $ 35,000 Building Costs Renovation Phase 1 $5,600,000 $ 4,159,191 $ 9,759,191 Renovation Phase 2 $ 2,657,000 $ 2,657,000 General Conditions $ 805,630 $ 805,630 Tenant rehab $ 1,251,174 $ 1,251,174 Soft Costs $ 2,629,409 $ 2,629,409 TOTALS $5,600,000 $14,703,209 $20,030,209 Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2014, valuation of approximately $2,044,858. Based on the 2013 levy this would result in a real property tax of approximately $45,015. It is anticipated that the assessed value will increase by $19,525,171, upon full completion, as a result of the site redevelopment. This development will result in an estimated tax increase of over $429,818.00 annually. The tax increment gained from this Redevelopment Project Area would not be available for use as city general tax revenues, for a period of 15 years, or such shorter time as may be required to amortize the TIF bond, but would be used for eligible private redevelopment costs to enable this project to be realized. Estimated 2014 assessed value: $ 2,044,858.00 Estimated value after completion $ 21,570,029.00 Increment value $ 19,525,399.00 Annual TIF generated (estimated) $ 429,818.00 TIF bond issue $ 5,600,000.00 (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $2,044,858. The proposed renovation of this facility will result in an estimated additional $19,525,399 of taxable valuation based on an analysis by the Hall County Assessor’s office. No tax shifts are anticipated from the project. The project creates additional valuation that will support taxing entities long after the project is paid off. (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact Grand Island Council Session - 10/28/2014 Page 56 / 269 schools. Fire and police protection are available and should not be impacted by this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This project will protect and enhance the existing employment within the Project Area by redeveloping prime commercial space at this location. Most of the retail space at this location is vacant. It could result in a new national retailers locating in Grand Island. The new retail facilities will employ managerial and sales staff at these locations. New businesses would result in a net increase in employment. At project stabilization employment is expected to increase by 368 employees including a mixture of part time, full time and managerial positions. Temporary construction employment will increase during the construction. The construction period is expected to be 18 to 36 months. The proposed facility will provide jobs for persons employed by the contractors that will be involved with the project. (d) Impacts on other employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and This may create additional demand for retail service employees in the Grand Island area and could impact other retailers. The proposed retailers represent businesses not located in Grand Island but they will potentially create competition for businesses located here. The latest available labor statistics show that the Grand Island labor pool is 27,961 with a 3.3% unemployment rate2. (e) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. Personal property in the project is subject to current property tax rates and would generate additional property tax for all entities in the first year. Annual city sales taxes at this location at project stabilization are expected to approach $25,000,000. Based on the current city sales tax rate of 1.5% this would be projected at $375,000. Time Frame for Development Development of this project is anticipated to be completed during between October 2014 and June of 2016 with out-parcels to be developed as the market demands. The base tax year should be calculated on the value of the property as of January 1, 2015. The tax increment on excess valuation should be available for this project for 15 years beginning in 2016. Excess valuation will be used to pay the TIF Indebtedness issued by the CRA per the contract between the CRA and the developer for a period not to exceed 15 years 2 https://neworks.nebraska.gov Labor Force, Employment and Unemployment for Grand Island City in May 2014 Grand Island Council Session - 10/28/2014 Page 57 / 269 or an amount not to exceed $5,600,000 the projected amount of increment based upon the anticipated value of the project and current tax rate. Based on the estimates of the expenses of the cost of renovation, site preparation, engineering, expenses and fees reimbursed to the City and CRA, and financing fees the developer will spend over $14,000,000 of TIF eligible activities over $10,000,000 of which are directly related to remodeling and rehabilitating the existing building. It is anticipate by the Hall County Assessor’s office that this property if redeveloped as proposed will see a 10 fold increase in valuation. II. THE ENHANCED EMPLOYMENT AREA DESIGNATED BY THE CRA AS ELIGIBLE FOR THE IMPOSITION OF AN OCCUPATION TAX TO PAY FOR AUTHORIZED WORK WITHIN THE AREA IS DESCRIBED AS FOLLOWS: Property Description (the “Enhanced Employment Area”) This property is located between State Street and Capital Avenue and between U.S. Highway 281 and Webb Road in northwest Grand Island. The attached map identifies the subject property and the surrounding land uses:  Legal Descriptions A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and containing 16.428 acres more or less. EXCEPTING THEREFROM A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and more particularly described as follows: Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres more or less. Authorized work within the Enhanced Employment Area means the performance of any one or more of the following purposes: (a) The acquisition, construction, maintenance, and operation of public offstreet parking facilities for the benefit of the Enhanced Employment Area; Grand Island Council Session - 10/28/2014 Page 58 / 269 (b) Improvement of any public place or facility in the Enhanced Employment Area, including landscaping, physical improvements for decoration or security purposes, and plantings; (c) Construction or installation of pedestrian shopping malls or plazas, sidewalks or moving sidewalks, parks, meeting and display facilities, bus stop shelters, lighting, benches or other seating furniture, sculptures, trash receptacles, shelters, fountains, skywalks, and pedestrian and vehicular overpasses and underpasses, and any useful or necessary public improvements; (d) Leasing, acquiring, constructing, reconstructing, extending, maintaining, or repairing parking lots or parking garages, both above and below ground, or other facilities for the parking of vehicles, including the power to install such facilities in public areas, whether such areas are owned in fee or by easement, in the Enhanced Employment Area; (e) Creation and implementation of a plan for improving the general architectural design of public areas in the Enhanced Employment Area; (f) The development of any public activities and promotion of public events, including the management, promotion, and advocacy of retail trade activities or other promotional activities, in the Enhanced Employment Area; (g) Maintenance, repair, and reconstruction of any improvements or facilities authorized by the Community Development Law; (h) Any other project or undertaking for the betterment of the public facilities in the Enhanced Employment Area, whether the project is capital or noncapital in nature; (i) Enforcement of parking regulations and the provision of security within the Enhanced Employment Area; or (j) Employing or contracting for personnel, including administrators for any improvement program under the Community Development Law, and providing for any service as may be necessary or proper to carry out the purposes of the Community Development Law. Redevelopment Plan Amendment related to the Enhanced Employment Area Complies with the Act: The Act requires that in connection with the approval of any redevelopment plan which includes the designation of an enhanced employment area, the governing body may approve the redevelopment plan if it determines that any new investment within such enhanced employment area will result in at least fifteen new employees and new investment of one million dollars in counties with at least fifty thousand inhabitants but fewer than one hundred thousand inhabitants. Grand Island Council Session - 10/28/2014 Page 59 / 269 This Plan Amendment meets these enhanced employment area statutory qualifications because (a) at project stabilization employment in the Enhanced Employment Area is expected to increase by 275 employees including a mixture of part time, full time and managerial positions, (b) the project in the Enhanced Employment Area includes new private sector investment of $14,370,247, and (c) as of the 2010 census, Hall County’s population comprised 58,607 inhabitants. Levy of General Business Occupation Tax and Levy: A city may levy a general business occupation tax upon the businesses and users of space within an enhanced employment area for the purpose of paying all or any part of the costs and expenses of any redevelopment project within such enhanced employment area. Any occupation tax imposed pursuant to the Act shall make a reasonable classification of businesses, users of space, or kinds of transactions for purposes of imposing such tax. The businesses and their classification in the Enhanced Employment Area are as follows: BUSINESS CLASSIFICATION 1 .Apparel Clothing Retail 20,008sf 2. Hobby & Crafts Hobby & Craft Retail 14,040sf 3. Shoes Shoe Retail 8,960sf 4. Apparel Clothing Retail 6,420sf 5. Cosmetics Beauty Retail 5,777sf 6. Quick Serve Prepared Food Retail 3,424sf 7. Specialty Store Specialty Retail 3,210sf 8. Salon Service Retail 1,605sf 9.. Apparel Clothing Retail 6,060sf 10. Specialty Store Specialty Retail 3,232sf 11. Quick Serve Prepared Food Retail 3,030sf 12. Salon Service Retail 1,515sf 13. 14. Restaurant Prepared Food Retail Outlot A 15. Service/Fitness Service Retail Outlot B 16. Fast Food Prepared Food Retail Outlot C No occupation tax shall be imposed on any business or transaction which is subject to tax under section 53-160, 66-489, 66-489.02, 66-4,140, 66-4,145, 66-4,146, 77-2602, or 77- 4008 of the Act or which is exempt from tax under section 77-2704.24 of the Act. Any such occupation tax agreed to by the Authority and the City shall remain in effect so long Grand Island Council Session - 10/28/2014 Page 60 / 269 as the Authority has bonds outstanding which have been issued stating such occupation tax as an available source for payment. The collection of a tax imposed pursuant to the Act shall be made and enforced in such a manner as the governing body shall by ordinance determine to produce the required revenue. The governing body may provide that failure to pay the tax imposed pursuant to this section shall constitute a violation of the ordinance and subject the violator to a fine or other punishment as provided by ordinance. Grand Island Council Session - 10/28/2014 Page 61 / 269 1 1203327 SUPPLEMENTAL BACKGROUND INFORMATION RELATIVE TO OCCUPATION TAX FINANCING REQUEST Project Redeveloper Information Business Name: Name: Grand Island Joint Venture, LLC Address: 2127 Innerbelt Business Center Drive, Suite 310, St. Louis, MO 63114 Telephone No.: (314) 513-1500 Fax No.: (314) 513-1501 Contact: Ray O’Connor (308) 381-2497 / Tim Lowe (314) 513-0018 Brief Description of Applicant’s Business: The Grand Island Joint Venture, LLC is a joint venture between Ray O’Connor and Michael Staenberg. Ray O’Connor is CEO of O’Connor Enterprises, a full service commercial real estate company that owns, manages and leases shopping centers, hotels and residential communities throughout central Nebraska. Michael Staenberg is President of the The Staenberg Group, a shopping center development, leasing and property management firm. Over the previous 30 years, the principals of The Staenberg Group have been responsible for the development and redevelopment of over 35 million square feet of retail shopping centers across the United States. Present Ownership Proposed Project Site: Grand Island Joint Venture, LLC Proposed Project: The redevelopment of the former Grand Island Mall and related 16 acres of property, into and “open air” regional retail shopping center, including approximately 128,000 square feet of new tenant leasable area. The property and building are to be designed and constructed in a first class manner, and consistent with competing regional retail centers in the area. The redevelopment project will include demolition of the former interior mall space, building demolition to create vehicular access between Webb Road and the new HWY 281 parking fields, new tenant storefronts and exterior amenities as well as new customer parking fields, site lighting and landscaping. Tenants in the project will be a mix of local, regional and national groups between 1,500 and 45,000 square feet, and include three outlot opportunities. See Exhibit B – site plan, lease plan and proposed elevations. Grand Island Joint Venture, LLC hereby certifies that no one business will have one hundred thirty-five thousand square feet or more of Grand Island Council Session - 10/28/2014 Page 62 / 269 2 1203327 space within the development subject to the Enhanced Employment Area as long as such EEA is in place. Required Information: A. Describe the amount and purpose for which Occupation Tax Financing is requested: An Occupation tax of one percent (1%) on all items subject to the sales tax sold and delivered within the Enhanced Employment Area. Occupation tax financing is requested for the redevelopment and re-branding of the former Grand Island Mall and related 16 acres of property into an “open air” regional retail shopping center “Northwest Commons” [Neb Rev Stat 18- 2142.04(1)(a)] (See Exhibit “A” for acceptable purposes) The amount of the Occupation Tax Financing is $4,000,000 for rehabilitation and repair of the project site. B. What is the legal description of the area for which you are requesting occupation tax financing? (enhanced employment area) Legal Description: A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and containing 16.428 acres more or less. EXCEPTING THEREFROM A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and more particularly described as follows: Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres more or less. (“Enhanced Employment Area”) Grand Island Council Session - 10/28/2014 Page 63 / 269 3 1203327 C. Will your investment in the Enhanced Employment Area result in at least fifteen new employees? If so, how many new employees do you project will result from your new investment? Yes. The project will protect and enhance the existing employment base within the Enhanced Employment Area by redeveloping prime commercial space at this location. Most of the existing retail space within the Enhanced Employment Area is currently vacant. The new retail facilities will employ managerial and sales staff at these locations. New business would result in a net increase in employment. At project stabilization, employment within the Enhanced Employment Area is expected to increase by 275 employees including a mixture of part time, full time and managerial positions. D. Will your new investment in the Enhanced Employment Area exceed one million dollars? If so, what is your estimated new investment in the Enhanced Employment Area? Yes. The anticipated total investment within the Enhanced Employment Area is projected at $14,370,247. E. Will your project/business have one hundred thirty-five thousand square feet or more? If so, do you anticipate annual gross sales of ten million dollars or more? No single retail tenant will exceed 135,000 square feet. The project will include approximately 77,000 square feet of leasable tenant space within the Enhanced Employment Area plus three (3) new outlot tenants. Sales for the retail tenants within the Enhanced Employment Area are projected at $15 million for the initial stabilized year (2017). No single tenant will exceed $10 million in sales. F. Please list the name of each business and its respective classification that you project will be located in the Enhanced Employment Area. (for example, prepared food retail, clothing retail, grocery retail, jewelry retail, gasoline retail, sporting goods retail): BUSINESS CLASSIFICATION 1 .Apparel Clothing Retail 20,008sf 2. Hobby & Crafts Hobby & Craft Retail 14,040sf 3. Shoes Shoe Retail 8,960sf 4. Apparel Clothing Retail 6,420sf 5. Cosmetics Beauty Retail 5,777sf 6. Quick Serve Prepared Food Retail 3,424sf Grand Island Council Session - 10/28/2014 Page 64 / 269 4 1203327 7. Specialty Store Specialty Retail 3,210sf 8. Salon Service Retail 1,605sf 9.. Apparel Clothing Retail 6,060sf 10. Specialty Store Specialty Retail 3,232sf 11. Quick Serve Prepared Food Retail 3,030sf 12. Salon Service Retail 1,515sf 13. 14. Restaurant Prepared Food Retail Outlot A 15. Service/Fitness Service Retail Outlot B 16. Fast Food Prepared Food Retail Outlot C *If you need more space, please attach additional page(s) Grand Island Council Session - 10/28/2014 Page 65 / 269 Grand Island Council Session - 10/28/2014 Page 66 / 269 Grand Island Council Session - 10/28/2014 Page 67 / 269 1 REDEVELOPMENT CONTRACT (Grand Island Northwest Commons Project) This Redevelopment Contract is made and entered into as of the _______ day of ___________, 2014, by and between the Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), the City of Grand Island, Nebraska, a Nebraska municipality of the first class (“City”), and Grand Island Joint Venture, LLC, a Missouri limited liability company ("Redeveloper"). WITNESSETH: WHEREAS, the City of Grand Island, Nebraska (the "City'), in furtherance of the purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska Constitution and Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska, as amended (collectively the "Act"), has designated an area within the City as blighted and substandard; WHEREAS, the Authority has adopted, after approval by the Mayor and Council of the City, that redevelopment plan entitled "Amended and Restated Site Specific Redevelopment Plan Grand Island CRA Area 9" (the "Redevelopment Plan"); WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract in order to implement the Redevelopment Plan and provide for the redevelopment of lots and lands located in a blighted and substandard area and enhanced employment area; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS AND INTERPRETATION Section 1.01 Terms Defined in this Redevelopment Contract. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Redevelopment Contract, such definitions to be equally applicable to both the singular and plural forms and masculine, feminine and neuter gender of any of the terms defined: Grand Island Council Session - 10/28/2014 Page 68 / 269 2 "Act" means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska, as amended, and acts amendatory thereof and supplemental thereto. "Authority" means the Community Redevelopment Authority of the City of Grand Island, Nebraska. "City" means the City of Grand Island, Nebraska. "Governing Body" means the Mayor and City Council of the City. "Holder(s)" means the registered owner or owners of TIF Indebtedness issued by the Authority from time to time outstanding. “Enhanced Employment Act” shall mean Nebraska Legislative Bill 562, 100th Legislature, effective date September 1, 2007, known as the “Enhanced Employment Area Occupation Tax,” amending Sections 18-2101, 18-2103, 18-2107, 18-2111, 18-2116, 18-2119, and 18-2130 of the Nebraska Revised Statutes and set forth in the Community Development Law, as may be amended from time to time. “Enhanced Employment Act Area” referred to in Section 18-2142.02 of the Nebraska Revised Statutes and shall mean that area within a community redevelopment area as shown on Exhibit B, attached hereto and incorporated herein by this reference. “Enhanced Employment Act Indebtedness” shall mean the occupation tax revenue bonds, refunding bonds, notes, interim certificates, debentures, anticipation notes, and other indebtedness or obligations issued under the terms of this Agreement, the Bond Resolution, and the Occupation Tax Ordinance. The Enhanced Employment Act Indebtedness as initially issued by the Authority shall consist of the Authority's Occupation Tax Revenue Bond (Grand Island Northwest Commons Project), Series 2014, to be issued in an amount not to exceed $4,000,000.00 in substantially the form set forth on Exhibit E, attached hereto and incorporated herein by this reference, (“Occupation Tax Revenue Bond”), and purchased by the Redeveloper as set forth in Section 4.05 of this Redevelopment Contract. “Enhanced Employment Act Period” shall mean the lesser of (i) the time period necessary for the occupation taxes levied on the Employment District to pay off any outstanding Enhanced Employment Act Indebtedness which have been issued stating such occupation tax as an available source for payment or (ii) twenty (20) years after the effective date of the Ad Valorem Tax Provision, as provided for in the Community Development Law. “Enhanced Employment Act Proceeds” shall mean any net proceeds from the issuance of the Enhanced Employment Act Indebtedness. "Enhanced Employment Act Project" means the improvements to the Enhanced Employment Act Area, as further described in Exhibit B and, as used herein, shall include additions and improvements thereto. The Enhanced Employment Act Project shall include all Grand Island Council Session - 10/28/2014 Page 69 / 269 3 eligible costs and expenses as set forth on Exhibit I, attached hereto and incorporated herein by this reference. "Enhanced Employment Act Project Costs" means only costs or expenses incurred by Redeveloper in the Enhanced Employment Act Area as set forth on Exhibit B for the purposes set forth in Section l8-2142.04 (1) (a) or Section 18-2103(12) (a) through (f), inclusive, of the Nebraska Revised Statutes, including providing for such costs by the exercise of the powers set forth in §18-2107(4) of the Act, all as identified on Exhibit I. Enhanced Employment Act Project Costs do not include costs or expenses incurred within that portion of the Redevelopment Project Area that is not a part of the Enhanced Employment Act Area. "Enhanced Employment Act Project Cost Certification" means a statement prepared and signed by an authorized representative of the Redeveloper verifying the Redeveloper has become legally obligated for the payment of Enhanced Employment Act Project Costs identified on Exhibit I. “Enhanced Employment Act Tax Revenues” shall mean the occupation tax revenues generated and collected under the occupation tax authorized by the Bond Resolution and the Occupation Tax Ordinance. “Issuance Costs” shall mean: (1) costs and expenses of the City, Authority, and the Redeveloper lawfully attributable to the City’s benefit and for the public purpose to issue the indebtedness, pledges, bonds and notes described in this Agreement of the TIF Indebtedness and Enhanced Employment Act Indebtedness, including but not limited to, bond counsel fees, special city attorney fees, fiscal advisory fees, placement fees, legal opinions and advice, and business memorandums, analysis, and advice given to the City and Authority and incurred before or after the Agreement Date in order to fund the Enhanced Employment Act Project and the TIF Project; and (2) the costs the City incurs (on an annual or prorated year) to collect, process and administer the Enhanced Employment Act Proceeds and TIF Revenues, and related bond funds pursuant to the requirements of the Act, including labor costs, equipment, software, promulgated regulations, City and State of Nebraska Department of Revenue accounting, procedures, reports, audits, review and accountability and reporting measures. Issuance Costs shall not include the Redeveloper’s attorney fees or any expenses attributed to the funding of the Enhanced Employment Act Costs. "Liquidated Damages Amount' means the amounts to be repaid to Authority by Redeveloper pursuant to Section 7.02 of this Redevelopment Contract. "Lot" or "Lots" shall mean the separately platted and subdivided lots within the Redevelopment Project Area established pursuant to an approved and filed subdivision plat in accordance with the ordinances and regulations of the City. “Master Project” shall mean the TIF Project and Enhanced Employment Act Project. “Occupation Tax Ordinance” shall mean the City of Grand Island Ordinance No.___, passed __________, 2014 and approved ______________, 2014, as amended, and related Grand Island Council Session - 10/28/2014 Page 70 / 269 4 ordinances authorizing the levy, collection and enforcement of the occupation tax imposed pursuant to the Enhanced Employment Act. "Redeveloper" means Grand Island Joint Venture, LLC, a Missouri limited liability company. "Redevelopment Project Area" means that certain real property situated in the City of Grand Island, Hall County, Nebraska which has been declared blighted and substandard by the City pursuant to the Act, and which is more particularly described on Exhibit A attached hereto and incorporated herein by this reference. All such legal descriptions are subject to change based upon any re-platting requested by the Redeveloper and approved by the City. "Redevelopment Project Property" means all of the Redevelopment Project Area which is the site for the improvements constituting the TIF Project, as more particularly described on Exhibit A. "Redevelopment Contract" means this redevelopment contract between the Authority and Redeveloper with respect to the TIF Project and Enhanced Employment Act Project, as the same may be amended from time to time. "Redevelopment Plan" means the Redevelopment Plan (also defined in the recitals hereto) for the Redevelopment Project Area and the Enhanced Employment Act Area related to the TIF Project and Enhanced Employment Act Project, as attached hereto and incorporated herein as Exhibit C, prepared by the Authority and approved by the City pursuant to the Act, as amended from time to time. "Resolution" or “Bond Resolution” means the Resolution of the Authority authorizing the issuance of the TIF Indebtedness and Enhanced Employment Act Indebtedness, as supplemented from time to time, and also approving this Redevelopment Contract. “Taxes” shall mean taxes and assessments from all applicable government entities including, but not limited to, any income, excise, sales or occupation taxes, ad valorem (real property) taxes, and personal property taxes. "TIF Indebtedness" means any bonds, notes, loans, and advances of money or other indebtedness, including interest and premium, if any, thereon, incurred by the Authority pursuant to the Resolution and Article III hereof to provide financing for a portion of the TIF Project Costs and secured in whole or in part by TIF Revenues. The TIF Indebtedness as initially issued by the Authority shall consist of the Authority's Tax Increment Development Revenue Bond (Grand Island Northwest Commons Project), Series 2014, to be issued in an amount not to exceed $5,600,000.00 in substantially the form set forth on Exhibit D attached hereto and incorporated herein by this reference (“TIF Bond”), and purchased by the Redeveloper as set forth in Section 3.04 of this Redevelopment Contract. "TIF Project" means the improvements to the Redevelopment Project Area, as further described in Exhibit A, and, as used herein, shall include the Redevelopment Project Property Grand Island Council Session - 10/28/2014 Page 71 / 269 5 and additions and improvements thereto. The TIF Project shall include all eligible costs and expenses as set forth on Exhibit F, attached hereto and incorporated herein by this reference. "TIF Project Cost Certification" means a statement prepared and signed by an authorized representative of the Redeveloper verifying the Redeveloper has become legally obligated for the payment of TIF Project Costs identified on Exhibit F. "TIF Project Costs" means only costs or expenses incurred by Redeveloper in the Redevelopment Project Area, as set forth on Exhibit A for the purposes set forth in §l8- 2103(12)(a) through (f), inclusive, including providing for such costs by the exercise of the powers set forth in §18-2107(4) of the Act, all as identified on Exhibit F. "TIF Revenues" means incremental ad valorem taxes generated on the Redevelopment Project Property by the TIF Project which are to be allocated to and paid to the Authority pursuant to the Act. “Timeline” shall mean the timeline for the Master Project as generally described on Exhibit H, attached hereto and incorporated herein by this reference. Section 1.02 Construction and Interpretation. The provisions of this Redevelopment Contract shall be construed and interpreted in accordance with the following provisions: (a)Whenever in this Redevelopment Contract it is provided that any person may do or perform any act or thing the word “may" shall be deemed permissive and not mandatory and it shall be construed that such person shall have the right, but shall not be obligated, to do and perform any such act or thing. (b)The phrase "at any time" shall be construed as meaning at any time or from time to time. (c)The word "including" shall be construed as meaning "including, but not limited to." (d)The words "will" and "shall" shall each be construed as mandatory. (e)The words "herein," "hereof," "hereunder", "hereinafter" and words of similar import shall refer to the Redevelopment Contract as a whole rather than to any particular paragraph, section or subsection, unless the context specifically refers thereto. (f)Forms of words in the singular, plural, masculine, feminine or neuter shall be construed to include the other forms as the context may require. Grand Island Council Session - 10/28/2014 Page 72 / 269 6 (g)The captions to the sections of this Redevelopment Contract are for convenience only and shall not be deemed part of the text of the respective sections and shall not vary by implication or otherwise any of the provisions hereof. ARTICLE II FINDINGS AND REPRESENTATIONS Section 2.01 Findings and Representations of Authority. The Authority makes the following findings and representations: (a)The Authority is a duly organized and validly existing community development agency under the Act. (b)The Redevelopment Plan has been duly approved by the City and adopted by the Authority pursuant to Sections 18-2109 through 18-2117 of the Act. (c)The Authority deems it to be in the public interest and in furtherance of the purposes of the Act to accept the proposal submitted by Redeveloper as specified herein. (d)The Master Project is expected to achieve the public purposes of the Act by among other things, increasing employment, increasing investment, improving public infrastructure, increasing the tax base, and lessening blighted and substandard conditions in the Redevelopment Project Area and Enhanced Employment Act Area and other purposes set forth in the Act. (e)(1) The Redevelopment Plan is feasible and in conformity with the general plan for the development of the City as a whole and the Redevelopment Plan is in conformity with the legislative declarations and determinations set forth in the Act, and (2) Based solely on representations made by the Redeveloper: (i)the TIF Project would not be economically feasible without the use of tax-increment financing, and (ii)the TIF Project would not occur in the Redevelopment Project Area without the use of tax-increment financing. (f) The Authority has determined that the costs and benefits of the TIF Project, including costs and benefits to other affected political subdivisions, the economy of the community, and the demand for public and private services have been analyzed by the Authority and have been found to be in the long-term best interest of the community impacted by the TIF Project. (g) The Authority has determined that the proposed land uses and building requirements in the Redevelopment Project Area and Enhanced Employment Act Area are Grand Island Council Session - 10/28/2014 Page 73 / 269 7 designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the City and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development: including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations, or conditions of blight. (h)Pursuant to section 18-2147 of the Act the redevelopment project valuation shall be the valuation for assessment of the taxable real property in the Redevelopment Project for the year prior to the effective date specified in section 3.01A. Section 2.02 Representations of Redeveloper. The Redeveloper makes the following representations: (a)The Redeveloper is a Missouri limited liability company, having the power to enter into this Redevelopment Contract and perform all obligations contained herein and by proper action has been duly authorized to execute and deliver this Redevelopment Contract. Prior to the execution and delivery of this Redevelopment Contract, the Redeveloper has delivered to the Authority a certificate of good standing, a copy of the Redeveloper's Articles of Organization and Operating Agreement, and a copy of the resolution or resolutions authorizing the execution and delivery of this Redevelopment Contract. (b)The execution and delivery of this Redevelopment Contract and the consummation of the transactions herein contemplated will not conflict with or constitute a breach of or default under any bond, debenture, note or other evidence of indebtedness or any contract, loan agreement or lease to which Redeveloper is a party or by which it is bound, or result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of the Redeveloper contrary to the terms of any instrument or agreement. (c)There is no litigation pending or to the best of its knowledge threatened against Redeveloper affecting its ability to carry out the acquisition, construction, equipping and furnishing of the Master Project or the carrying into effect of this Redevelopment Contract or in any other matter materially affecting the ability to Redeveloper to perform its obligations hereunder. (d)The TIF Project would not be economically feasible without the use of tax increment financing. Grand Island Council Session - 10/28/2014 Page 74 / 269 8 (e)The TIF Project would not occur in the Redevelopment Project Area without the use of tax-increment financing. (f)The Enhanced Employment Act Project will result in at least fifteen (15) new employees and new investment of at least one million dollars ($1,000,000.00) within the Enhanced Employment Act Area, pursuant to Section 18-2116 of the Nebraska Revised Statutes. (Note: Hall County 2010 Census shows a population of 53,534) (g)The TIF Indebtedness and Enhanced Employment Act Indebtedness shall not be tax-exempt financing and no interest paid from the TIF Indebtedness and Enhanced Employment Act Indebtedness shall be exempt from federal or state income taxation. (h)Redeveloper warrants and represents that the costs set forth on Exhibit F are permitted costs under the Act and fit within the statutory definitions set forth in Section 18-2103(12)(a) through (f), inclusive, of the Nebraska Revised Statutes. (i)Redeveloper warrants and represents that the costs set forth on Exhibit I are permitted costs under the Enhanced Employment Act and the Act and fit within the statutory definitions set forth in Section 18-2142.04(1)(a) of the Nebraska Revised Statutes. (j)There are no, nor will there be, any single business in the Enhanced Employment Act Area that has one hundred thirty-five thousand square feet or more. (k)Exhibit G, attached hereto and incorporated herein by this reference, is a list of the proposed businesses and each business’s classification that are to be in the Enhanced Employment Act Area. (l)Redeveloper agrees and covenants for itself its successors and assigns that it will not discriminate against any person or group of persons on account of race, sex, color, religion, national origin, ancestry, disability, marital status or receipt of public assistance in connection with the Master Project. Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Master Project, Redeveloper will not discriminate against any employee or applicant for employment because of race, religion, sex, color, national origin, ancestry, disability, marital status or receipt of public assistance. Redeveloper will comply with all applicable federal, state and local laws related to the Master Project. ARTICLE III THE PARTIES OBLIGATIONS RELATING TO TAX INCREMENT FINANCING A.OBLIGATIONS OF THE AUTHORITY Section 3.01A Division of Taxes. Grand Island Council Session - 10/28/2014 Page 75 / 269 9 In accordance with Section 18-2147 of the Act and the terms of the Resolution, the Authority hereby provides that any ad valorem tax on real property in the Redevelopment Project Area for the benefit of any public body be divided for a period of fifteen years after the effective date of this provision as set forth in this section. The effective date of this provision shall be January 1, 2016. Said taxes shall be divided as follows: (a)That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the Redevelopment Project Valuation (defined in the Act) shall be paid into the funds of each such public body in the same proportion as all other taxes collected by or for the bodies; and (b)That portion of the ad valorem tax on real property in the Redevelopment Project Area in excess of such amount, if any, shall be allocated to, is pledged to, and, when collected, paid into a special fund of the Authority (designated in the Resolution as the "TIF Bond Fund") to pay the principal of, the interest on, and any premium due in connection with the TIF Indebtedness, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, such TIF Project. When such TIF Indebtedness, including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such Phase shall be paid into the funds of the respective public bodies. Section 3.02A Issuance of TIF Indebtedness The Authority shall authorize the issuance of the TIF Indebtedness in the form and stated principal amount and bearing interest and being subject to such terms and conditions as are specified in the Resolution and this Redevelopment Contract; provided, at all times the maximum amount of the TIF Indebtedness shall be limited to the lesser of (i) the stated face amount of the TIF Indebtedness, or (ii) the sum of all TIF Project Costs incurred by the Redeveloper as set forth on Exhibit F. No TIF Indebtedness will be issued until Redeveloper has acquired fee title to the Redevelopment Project Property and become obligated for construction of the additions and improvements forming a part of the TIF Project as described in the Plan. Prior to January 1, 2016, the Authority shall issue one Tax Increment Revenue Bond, in one taxable series, in a maximum principal amount of Five Million Six Hundred Thousand and no/100 Dollars ($5,600,000.00), in substantially the form shown on the attached Exhibit D (“TIF Bond”), for net funds available to be purchased by Redeveloper, or its affiliate (“TIF Bond Purchaser”), in a written form acceptable to Redeveloper’s attorney, and receive TIF Bond proceeds from the TIF Bond Purchaser in said amount. At the option of the TIF Bond Purchaser, the Authority shall make a grant to TIF Bond Purchaser in such amount, and such grant shall offset TIF Bond Purchaser’s obligation to purchase the TIF Bond. Subject to the terms of this Agreement and the Resolution, the Authority’s Treasurer on behalf of the Authority shall have the authority to determine the timing of issuing the TIF Indebtedness and all the other necessary details of the TIF Indebtedness. Grand Island Council Session - 10/28/2014 Page 76 / 269 10 The TIF Bond Purchaser agrees to purchase the TIF Indebtedness at a price equal to the principal amount thereof, in a private placement satisfactory to the Authority as to its terms and participants (including any pledgee thereof). Neither the Authority nor the City shall have any obligation to provide for the sale of the TIF Indebtedness. It is the sole responsibility of the TIF Bond Purchaser to effect the sale of the TIF Indebtedness by purchasing the TIF Indebtedness in accordance with the terms of this Redevelopment Contract and the Resolution. Section 3.03A Pledge of Revenues. Under the terms of the Resolution, the Authority pledges 100% of the available annual TIF Revenues derived from the Redevelopment Project Property as security for and to provide payment of the TIF Indebtedness as the same fall due (including payment of any mandatory redemption amounts set for the TIF Indebtedness in accordance with the terms of the Resolution). Section 3.04A Purchase and Pledge of TIF Indebtedness/Grant of Net Proceeds of TIF Indebtedness. The TIF Bond Purchaser has agreed to purchase the TIF Indebtedness from the Authority for a price equal to the principal amount thereof, payable as provided in Section 3.02A and this Section 3.04A. The Redevelopment Plan provides for the Redeveloper to receive a grant under this Redevelopment Contract. In accordance with the terms of the Redevelopment Plan the Redeveloper is to receive a grant sufficient to pay the costs for reimbursement of eligible and lawful TIF Project Costs as set forth on Exhibit F, in the aggregate maximum amount not to exceed $5,600,000.00. Notwithstanding the foregoing, the aggregate amount of the TIF Indebtedness and the grant shall not exceed the amount of TIF Project Costs as certified pursuant to Section 3.02B of this Redevelopment Contract. Such grant shall be made to the TIF Bond Purchaser upon certification of TIF Project Costs as set forth herein and in the Resolution, and payment purchase of the TIF Indebtedness as provided in Section 3.02A, unless TIF Bond Purchaser elects to offset the payment of the purchase of the TIF Indebtedness with the grant proceeds as provided herein and in the Resolution. The Authority shall have no obligation to provide grant funds from any source other than as set forth in the Resolution and this Redevelopment Contract. Section 3.05A Creation of Funds. In the Resolution, the Authority has provided for the creation of a the following funds and accounts which funds shall be held by the Authority separate and apart from all other funds and moneys of the Authority and the City: (a)a special trust fund called the “Grand Island Northwest Commons Project TIF Bond Fund” (the “TIF Bond Fund”). All of the TIF Revenues shall be deposited into the TIF Bond Fund. The TIF Revenues accumulated in the TIF Bond Fund shall be used and applied on the Business Day prior to each Interest Payment Date to pay principal of or interest on the TIF Bond to the extent of any money then remaining in the TIF Bond Fund on such Interest Payment Date. Money in the TIF Bond Fund shall be used solely for the purposes described herein and in the Resolution. All Grand Island Council Session - 10/28/2014 Page 77 / 269 11 Revenues received through and including December 31, 2030 shall be used solely for the payments required herein and by the Resolution; and (b)a special trust fund called the “Grand Island Northwest Commons TIF Project Fund” (the “TIF Project Fund”) The Authority shall disburse any money on deposit in the TIF Project Fund from time to time to pay or as reimbursement for payment made for the TIF Project Costs in each case within 5 Business Days after completion of the steps set forth herein and in the Resolution. If a sufficient amount to pay a properly completed TIF Disbursement Request (as defined in Section 3.02B) is not in the TIF Project Fund at the time of the receipt by the Authority of such request, the Authority shall notify the owner of the TIF Bond and such owner may deposit an amount sufficient to pay such request with the Authority for such payment. As set forth in the Resolution, if the TIF Bond Purchaser is the owner of the TIF Bond and the TIF Bond Purchaser so elects, the Authority shall make a grant to TIF Bond Purchaser in the amount of an approved TIF Disbursement Request; in such event, the approved TIF Disbursement Request amount shall offset funding of the TIF Bond. B.OBLIGATIONS OF REDEVELOPER Section 3.01B Construction of TIF Project; Insurance. Redeveloper will complete the TIF Project, demolish structures on the site, prepare the site for redevelopment and install all infrastructure, improvements, lift stations, street lighting, building rehabilitation, fixtures, equipment and furnishings necessary to operate the TIF Project. Redeveloper shall be solely responsible for obtaining all permits and approvals necessary to acquire, construct and equip the TIF Project. Until construction of the TIF Project has been completed, Redeveloper shall make reports in such detail and at such times as may be reasonably requested by the Authority, but not more than quarterly, as to the actual progress of Redeveloper with respect to construction of the TIF Project. Such reports shall include actual expenditures incurred as described on Exhibit F. Promptly after completion by the Redeveloper of the TIF Project, the Redeveloper shall furnish to the Authority a Certificate of Completion (supported by such architect's or engineer's certificates as are required under the terms of the contract documents). Section 3.02B Cost Certification & Disbursement of TIF Bond Proceeds. Proceeds of the TIF Bond may be advanced and disbursed in the manner set forth below: (a)There shall be submitted to the Authority (1) a TIF Project Cost Certification; and, (2) a grant disbursement request (the “TIF Disbursement Request”), executed by the City’s Clerk and an authorized representative of the Redeveloper, (i) certifying that a portion of the TIF Project has been substantially completed and (ii) certifying the actual costs incurred by the Redeveloper in the completion of such portion of the TIF Project. (b)If the costs requested for reimbursement under the TIF Disbursement Request are currently reimbursable under Exhibit F of this Redevelopment Contract and the Community Grand Island Council Session - 10/28/2014 Page 78 / 269 12 Redevelopment Law, the Authority shall evidence such allocation in writing and inform the owner of the TIF Bond of any amounts allocated to the TIF Bond. (c)Upon notification from the Authority as described in Section 3.02B (b), deposits to the accounts in the TIF Project Fund may be made from time to time from funds received by the Authority from the owner of the TIF Bond (if other than the Redeveloper) in the amounts necessary to pay amounts requested in properly completed, signed and approved written TIF Disbursement Requests as described herein. Such amounts shall be proceeds of the TIF Bond and the Treasurer of the Authority shall inform the Registrar (as defined in the Bond Resolution) in writing of the date and amount of such deposits. At the option of the Redeveloper, if the Redeveloper is the owner of the TIF Bond, the Authority shall make a grant to Redeveloper in the amount of the approved TIF Disbursement Request; in such event, the approved TIF Disbursement Request amount shall offset funding of the TIF Bond. The Registrar shall keep and maintain a record of the amounts deposited into the TIF Project Fund from TIF Bond proceeds pursuant to the terms of this Resolution as “Principal Amount Advanced” and shall enter the aggregate principal amount then Outstanding as the “Cumulative Outstanding Principal Amount” on its records maintained for the TIF Bond. The aggregate amount deposited into the TIF Project Fund from proceeds of the TIF Bond shall not exceed $5,600,000.00. ARTICLE IV THE PARTIES OBLIGATIONS RELATING TO OCCUPATION TAX REVENUE BONDS Section 4.01 Enhanced Employment Act Area. The Authority hereby designates the Enhanced Employment Act Area shown on Exhibit B as an enhanced employment area eligible for the imposition of an occupation tax pursuant to the Enhanced Employment Act. New investment within the Enhanced Employment Act Area will result in at least fifteen (15) new employees and new investment of at least one million dollars ($1,000,000.00), pursuant to Section 18-2116 of the Nebraska Revised Statutes. (Note: Hall County 2010 Census shows a population of 53,534) The Enhanced Employment Act Area does not exceed six hundred acres. Section 4.02 Occupation Tax. The City agrees to levy a general business occupation tax upon all businesses within the Enhanced Employment Act Area for the purpose of paying all or any part of the costs of the Enhanced Employment Act Project Costs within such Enhanced Employment Act Area during the Enhanced Employment Act Period. Beginning on October 1, 2015, and in each calendar month thereafter, there is hereby imposed an occupation tax upon each and every person operating a business within the Enhanced Employment Act Area. The amount of such tax shall be one percent (1.00%) of all transactions which the State of Nebraska is authorized to impose a tax as allowed by the Nebraska Local Option Revenue Act for each calendar month derived from the businesses subject to this tax as more particularly described in the Occupation Tax Ordinance. Grand Island Council Session - 10/28/2014 Page 79 / 269 13 Section 4.03 Issuance of Enhanced Employment Act Indebtedness. As soon as is practicable following the Agreement Date of this Agreement, the Bond Resolution, and the Occupation Tax Ordinance, and as set forth in this Agreement, the Authority shall issue its Enhanced Employment Act Indebtedness in the estimated amount not to exceed Four Million Dollars ($4,000,000.00), and a term that is not to exceed twenty years, that is payable during the Enhanced Employment Act Period. The Enhanced Employment Act Indebtedness shall be purchased by the Redeveloper, or its affiliate (“Occupation Tax Revenue Bond Purchaser”) and the Authority, or a depository agreed to by the Authority and Occupation Tax Revenue Bond Purchaser shall receive the Enhanced Employment Act Bond Proceeds to be deposited into an Authority fund account or a depository fund account agreed to by the Authority and Occupation Tax Revenue Bond Purchaser (“Authority Enhanced Employment Act Project Account”) and expended in the priority set forth in Section 4.06 (Use of Enhanced Employment Act Proceeds) below. The Enhanced Employment Act Indebtedness shall specifically provide that any shortfall in anticipated Enhanced Employment Act Tax Revenues from the businesses within the Enhanced Employment Act Area for any reason whatsoever, specifically including a decline in taxable receipts within the Enhanced Employment Act Area or termination of the Enhanced Employment Act Period, shall be borne entirely by the Occupation Tax Revenue Bond Purchaser without recourse of any kind against the City or Authority. The City Administrator on behalf of the City and Authority shall have the authority to determine all the other necessary and reasonable details and mechanics of the Enhanced Employment Act Indebtedness, Enhanced Employment Act Tax Revenues, City Enhanced Employment Act Project Account and the grant of funds for the eligible Enhanced Employment Act Costs. Section 4.04 Enhanced Employment Act Tax Revenues. The City intends to impose this occupation tax authorized by the Enhanced Employment Act to generate the Enhanced Employment Act Tax Revenues to be derived from the occupation taxes of the businesses located within the Enhanced Employment Act Area as determined in the manner provided for in the Community Development Law. The City and Authority shall work with the Nebraska Department of Revenue, if necessary, to facilitate the operation of the occupation tax and to secure the Occupation Tax Revenue Bond Purchaser receipt of the Enhanced Employment Act Tax Revenues from such occupation tax. Section 4.05 Grant of Funds. In order to support redevelopment of the Enhanced Employment Act Area and as an inducement for the Redeveloper to construct the Enhanced Employment Act Project, the Authority agrees, to the extent allowed by law and then only to the extent Enhanced Employment Act Proceeds are lawfully available from the issuance of the Enhanced Employment Act Indebtedness, to make a grant or grants to Occupation Tax Revenue Bond Purchaser up to the total amount of the Enhanced Employment Act Proceeds less the Authority’s Issuance Costs to issue the Enhanced Employment Act Indebtedness (“Grant Funds”), and to reimburse Occupation Tax Revenue Bond Purchaser for the cost of the priority items identified in Section 4.06 (Use of Enhanced Employment Act Proceeds) below, provided that only costs incurred after Grand Island Council Session - 10/28/2014 Page 80 / 269 14 the Agreement Date shall be eligible for payment. The grants are restricted and earmarked for the funding of the eligible Enhanced Employment Act Project Costs as described herein and the Occupation Tax Revenue Bond Purchaser does not have discretionary judgment over the applications of said Grant Funds. Notwithstanding the foregoing, the aggregate amount of the Enhanced Employment Act Indebtedness and the grant shall not exceed the amount of Enhanced Employment Act Project Costs as certified pursuant to Section 4.06 of this Redevelopment Contract. Such grant shall be made to the Occupation Tax Revenue Bond Purchaser upon certification of Enhanced Employment Act Project Costs as set forth herein and in the Resolution, and purchase of the Enhanced Employment Act Indebtedness as provided in Section 4.03, unless Occupation Tax Revenue Bond Purchaser elects to offset the payment of the purchase of the Enhanced Employment Act Indebtedness with the grant proceeds as provided herein and in the Resolution. The Authority shall have no obligation to provide grant funds from any source other than as set forth in the Resolution and this Redevelopment Contract. Section 4.06 Cost Certification & Disbursement of Enhanced Employment Act Occupation Tax Revenue Bond Proceeds. Proceeds of the Occupation Tax Revenue Bond may be advanced and disbursed in the manner set forth below: (a)There shall be submitted to the Authority (1) an Enhanced Employment Act Project Cost Certification; and, (2) a grant disbursement request (the “EEA Disbursement Request”), executed by the City’s Clerk and an authorized representative of the Occupation Tax Revenue Bond Purchaser, (i) certifying that a portion of the Enhanced Employment Act Project has been substantially completed and (ii) certifying the actual costs incurred by the Redeveloper in the completion of such portion of the Enhanced Employment Act Project. (b)If the costs requested for reimbursement under the EEA Disbursement Request are currently reimbursable under Exhibit I of this Redevelopment Contract and the Community Redevelopment Law, the Authority shall evidence such allocation in writing and inform the owner of the Occupation Tax Revenue Bond of any amounts allocated to the Occupation Tax Revenue Bond. (c)Upon notification from the Authority as described in Section 4.06(b), deposits to the accounts in the Authority Enhanced Employment Act Project Account may be made from time to time from funds received by the Authority from the owner of the Occupation Tax Revenue Bond (if other than the Redeveloper) in the amounts necessary to pay amounts requested in properly completed, signed and approved written EEA Disbursement Requests as described herein. Such amounts shall be proceeds of the Occupation Tax Revenue Bond and the Treasurer of the Authority shall inform the Registrar (as defined in the Bond Resolution) in writing of the date and amount of such deposits. At the option of the Occupation Tax Revenue Bond Purchaser, the Authority shall make a grant to Occupation Tax Revenue Bond Purchaser in the amount of the approved EEA Disbursement Request; in such event, the approved EEA Disbursement Request amount shall offset funding of the Occupation Tax Revenue Bond. The Registrar shall keep and maintain a record of Grand Island Council Session - 10/28/2014 Page 81 / 269 15 the amounts deposited into the Authority Enhanced Employment Act Project Account from Occupation Tax Revenue Bond proceeds pursuant to the terms of this Resolution as “Principal Amount Advanced” and shall enter the aggregate principal amount then Outstanding as the “Cumulative Outstanding Principal Amount” on its records maintained for the Occupation Tax Revenue Bond. The aggregate amount deposited into the Authority Enhanced Employment Act Project Account from proceeds of the Occupation Tax Revenue Bond shall not exceed $4,000,000.00. The Enhanced Employment Act Proceeds deposited into the Authority Enhanced Employment Act Project Account shall be expended in the following priority: i. FIRST PRIORITY: Reimburse the Authority and Redeveloper for the Issuance Costs related to issuing the Enhanced Employment Act Indebtedness; and iv. SECOND PRIORITY: Reimburse Occupation Tax Revenue Bond Purchaser for costs of the eligible Enhanced Employment Act Project Costs subject to the provisions of this Redevelopment Contract. It is understood and agreed that the Authority shall and hereby is obligated in any year after substantial completion of the Enhance Employment Act Project and for each and every succeeding year thereafter during the Enhanced Employment Act Period, to the extent allowed by law, and then only to the extent funds are lawfully available from occupation taxes related to the Enhanced Employment Act Area and not otherwise obligated in this Agreement for debt service or otherwise, reimburse the Occupation Tax Revenue Bond Purchaser for the Occupation Tax Revenue Bond Purchaser’s costs for eligible and lawful Enhanced Employment Act Project Costs subject to the provisions of this Redevelopment Contract. In the event the Enhanced Employment Act Proceeds are insufficient to fund any or all of the Priority item(s) as shown above, then such costs and expense shall be borne entirely by the Redeveloper without recourse of any kind against the City and/or Authority. Any ineligible use of the Grant Funds shall immediately be repaid by Redeveloper to the Authority. Section 4.07 Debt Service for Enhanced Employment Act Indebtedness. The Authority shall, to the extent allowed by law, and then only to the extent funds are lawfully available from Enhanced Employment Act Tax Revenues, pay the debt service on the Enhanced Employment Act Indebtedness with interest at a rate per annum not to exceed three and one-half percent (3.5%) compounded semi-annually. Any debt service on the Enhanced Employment Act Indebtedness (including interest) to be paid from Enhanced Employment Act Tax Revenues shall not constitute a general obligation or debt of the City or Authority. Any excess Enhanced Employment Act Tax Revenues shall be held, invested and expended by the City for priorities described above in Section 4.06 (Use of Enhanced Employment Act Proceeds). Any such occupation tax shall remain in effect during the Enhanced Employment Act Period. Section 4.08 Deficiency in Enhanced Employment Act Tax Revenues. Grand Island Council Session - 10/28/2014 Page 82 / 269 16 If the Redeveloper purchases the Enhanced Employment Act Indebtedness, any shortfall in anticipated Enhanced Employment Act Tax Revenues for any reason whatsoever, specifically including a decline in taxable receipts within the Enhanced Employment Act Area shall be borne entirely by the Redeveloper without recourse of any kind against the City and/or Authority. To the extent of any deficiency in Enhanced Employment Act Tax Revenues from the occupation tax for required debt service on the Enhanced Employment Act Indebtedness during the Enhanced Employment Act Period, the Redeveloper as purchaser of the Occupation Tax Revenue Bond agrees to defer payment of the same for each year that there exists a deficiency. If Redeveloper is required to defer any such payments, the Authority shall reimburse all sums deferred plus interest (at the same interest rate of the then outstanding Occupation Tax Revenue Bond) if and when Enhanced Employment Act Tax Revenues do become available from the occupation taxes of the businesses located within the Enhanced Employment Act Area to meet current debt service and reimburse Redeveloper for such deferred payments. In the event the Enhanced Employment Act Indebtedness for the Enhanced Employment Act Area are not retired in full at the end of the Enhanced Employment Act Period, any remaining Enhanced Employment Act Indebtedness shall be forgiven. In the event that any deficiency payments made by the Redeveloper as required by this subsection or any interest that has accrued thereon have not been repaid at the end of the Enhanced Employment Act Period, Redeveloper agrees that neither the City or Authority shall not be liable for payment of said amounts and that said amounts shall be forgiven. Section 4.09 Duty to Maintain. During the Enhanced Employment Act Period, Redeveloper, at its cost, subject to reimbursement for Enhanced Employment Act Project Costs from any available Enhanced Employment Act Proceeds as described herein, shall, following construction of the Enhanced Employment Act Project (a) maintain the same in good order and condition and state of repair in accordance with the prevailing standards from time to time for retail developments and improvements of similar size, kind and quality in Grand Island, Nebraska, and (b) maintain the related grounds in a safe and sanitary condition including, but not limited to, sweeping and removal of trash, litter and refuse, repair and replacement of paving as reasonably necessary, maintenance of landscaped areas (including replacement and replanting), removal of snow and ice from sidewalks, driveways, parking areas, and private roadways, in order to keep the same free from dilapidation or deterioration and free from conditions which endanger life or property by fire or other causes. In addition, the Redeveloper’s duty to maintain the Enhanced Employment Act Project on the Enhanced Employment Act Area during the Enhanced Employment Act Period shall include the following: i. The standard of maintenance for the Enhanced Employment Act Area shall be comparable to the standards of maintenance, repair and replacement followed in other good quality retail developments in Grand Island, Nebraska. ii. Maintaining, repairing and replacing all paved surfaces of the Enhanced Employment Act Area in a reasonably smooth and evenly covered condition, which maintenance work shall include, without limitation, cleaning, sweeping, restriping, repairing and resurfacing any paved surfaces as reasonably necessary. iii. Removing of all filth, paper and refuse to the extent necessary to keep the Enhanced Employment Act Area in a clean and orderly condition. Grand Island Council Session - 10/28/2014 Page 83 / 269 17 iv. Placing, keeping in repair and replacing when reasonably necessary any appropriate directional signs, markers and lines. v. Keeping in repair and replacing when reasonably necessary such lighting facilities as may be installed on the Enhanced Employment Act Area. vi. Maintaining all finished landscaped areas, repairing irrigation systems and water lines, and replacing shrubs and other finished landscaping as reasonably necessary; provided, however, that nothing in this Agreement shall obligate the Redeveloper to landscape any portion of an unimproved real estate prior to the date it is improved. vii. Cleaning, maintaining and repairing of all sidewalks. viii. Maintaining in good and safe condition and state of repair any building exterior improvements located thereon. Section 4.10 Reimbursement of Grants. Redeveloper agrees to repay the Authority the grant or grants of funds as provided for in Section 4.05 above in the event Redeveloper fails to obtain the general Certificate of Occupancy for the Enhanced Employment Act Project within one hundred and eighty (180) days after the date as shown in the Timeline as such date may be extended for delays as set forth in Section 7.04, and upon such repayment of the grant funds, this Agreement shall be null and void in regards to the Redeveloper and the Enhanced Employment Act Area and the improvements located thereon. In the event the Redeveloper fails to maintain the Redeveloper’s Enhanced Employment Act Project as provided in Section 4.09 above, and the Redeveloper fails to cure such breach within thirty (30) days after receiving written notice specifying the manner in which the Redeveloper has breached this Agreement from the Authority, or such longer period if such deficiency cannot reasonably be cured within such thirty (30) day period, then such duty to maintain shall be considered a violation of the City of Grand Island Property Maintenance Code, and the City and/or Authority shall have the right to enforce Redeveloper’s duty to maintain as provided in the City of Grand Island Code, or by any other means provided by law. Section 4.11 Agreement to Pay Taxes. Redeveloper agrees to use commercially reasonable efforts to require its tenants located within the Enhanced Employment Act Area to pay all occupation taxes levied upon the Enhanced Employment Act Area and improvements thereon prior to the time the taxes become delinquent. Redeveloper shall include this requirement in all tenant leases of space located within the Enhanced Employment Act Area. This contractual obligation to pay such taxes prior to delinquency shall cease upon expiration of the Enhanced Employment Act Period or so long as the Occupation Tax Revenue Bond remains outstanding whichever period of time is shorter. Section 4.12 City and Authority Not Liable for Deficiency. Any debt service on the Enhanced Employment Act Indebtedness (including interest) to be paid from Enhanced Employment Act Tax Revenues shall not constitute a general obligation or debt of the City or Authority. Neither the City nor Authority shall be liable for any deficiency nor shortfall in the anticipated collection of the occupation tax revenue collected in the Enhanced Employment Act Area. Grand Island Council Session - 10/28/2014 Page 84 / 269 18 Section 4.13 Insurance Damage or Destruction of the Enhanced Employment Act Project. During the Enhanced Employment Act Period, Redeveloper shall include by restrictive covenant an enforceable obligation on the Redeveloper or other owner or tenant in possession to maintain property insurance on an extended coverage all-risk basis in an amount not less than the replacement value of the Enhanced Employment Act Project, allowing for reasonable coinsurance clauses and deductibles and also subject to the Redeveloper or other owner or tenant’s obligation to restore the Enhanced Employment Act Project to its prior condition within fifteen (15) months from the date of the damage or destruction, diligently pursuing the same to completion. Section 4.14 Termination. Notwithstanding any contrary provision, the occupation tax upon the businesses within the Enhanced Employment Act Area shall cease upon expiration of the Enhanced Employment Act Period or full repayment of the Enhanced Employment Act Indebtedness, whichever period of time is shorter. The provisions of Section 4.1 through 4.13 of this Agreement shall terminate for the Enhanced Employment Act Area upon expiration of the Enhanced Employment Act Period or full repayment of the Enhanced Employment Act Indebtedness, whichever period of time is shorter. ARTICLE V FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES Section 5.01 Financing. Redeveloper shall pay all costs related to the redevelopment of the Redevelopment Project Area, the Redevelopment Project Property, and Enhanced Employment Act Area which are in excess of the amounts paid from the proceeds of the grant provided from the proceeds of the TIF Indebtedness and Enhanced Employment Act Proceeds and granted to Redeveloper. Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts associated with the Project. ARTICLE VI RESTRICTIONS AND CONSENT Section 6.01 Relocation. Redeveloper, at its cost, shall be responsible to pay any required tenant relocation costs as required by any federal, state or local relocation laws, including but not limited to, the Nebraska Relocation Assistance Act (Neb. Rev. Stat. Section 76-12114 et seq.) (collectively “Relocation Grand Island Council Session - 10/28/2014 Page 85 / 269 19 Laws”), in order to implement the Master Project within the Redevelopment Project Area and the Enhanced Employment Act Area. Section 6.02 Consent. Redeveloper hereby covenants and consents with respect to the designation of the property set forth in Exhibit B, and incorporated herein by this reference, as an enhanced employment area pursuant to Section 18-2119 of the Enhanced Employment Act and as a redevelopment project under the Act, and such covenant and consent shall be binding upon all future owners of the Enhanced Employment Act Area. ARTICLE VII DEFAULT, REMEDIES; INDEMNIFICATION Section 7.01 General Remedies of Authority and Redeveloper. Subject to the further provisions of this Article VII, in the event of any failure to perform or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto or any successor to such party, such party, or successor, shall, upon written notice from the other, proceed immediately to commence such actions as may be reasonably designed to cure or remedy such failure to perform or breach which cure or remedy shall be accomplished within a reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or diligently pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may institute such proceedings as may be necessary or desirable to enforce its rights under this Redevelopment Contract, including, but not limited to, proceedings to compel specific performance by the party failing to perform or in breach of its obligations. The Redeveloper hereby acknowledges and agrees that the Authority shall have completed its required performances and satisfied all of its obligations under this Redevelopment Contract upon the issuance of the TIF Indebtedness and Enhanced Employment Act Indebtedness and the subsequent payment of grant amounts to the Redeveloper as set forth in this Agreement. Section 7.02 Additional Remedies of Authority. In the event that (each such event an "event of default"): (a)the Redeveloper, or its successor in interest, shall fail to commence the construction of the improvements included in the TIF Project Costs and/or Enhanced Employment Act Project Costs on or before June 1, 2015, or shall not have obtained the General Certificate of Occupancy for the Enhanced Employment Act Project and abandoned construction work related to the aforementioned costs, once commenced, for any period of 180 days, excepting delays caused by inclement weather, or forced delay as set forth in Section 7.04; and Grand Island Council Session - 10/28/2014 Page 86 / 269 20 (b)the Redeveloper, or its successor in interest, shall fail to pay real estate taxes or assessments on the Redevelopment Project Property owned by the Redeveloper or any part thereof when due and delinquent, and such failure has not been cured within 30 days following written notice from Authority, then the Redeveloper shall be in default of this Redevelopment Contract. In the event of such failure to perform, breach or default occurs and is not cured in the period herein provided, the parties agree that the damages caused to the Authority would be difficult to determine with certainty and that a reasonable estimation of the amount of damages that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04A and 4.05 of this Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness and Enhanced Employment Act Indebtedness, plus interest on such amounts as provided herein (the "Liquidated Damages Amount"). Upon the occurrence of an event of default, the Liquidated Damages Amount shall be applied as a reduction to the outstanding principal amount of the Bond. Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its obligation to pay real estate taxes, or assessments with respect to the Redevelopment Project Property, the Project, and the Enhanced Employment Act Area. The Redeveloper shall be required to purchase and maintain property insurance upon the Master Project to the full insurable value thereof. This insurance shall insure against the perils of fire and extended coverage and shall include 'All Risk" insurance for physical loss or damage. The Redeveloper shall furnish the Authority and the City with a Certificate of Insurance evidencing policies as required above. Such certificates shall state that the insurance companies shall give the Authority prior written notice in the event of cancellation of or material change in any of the policies. In addition, before commencing any work, the Redeveloper shall provide a penal bond in the amount of $25,000.00 with good and sufficient surety to be approved by the Authority, conditioned that the Redeveloper shall at all times promptly make payments of all amounts lawfully due to all persons supplying or furnishing to any contractor or his or her subcontractors (for each contract entered into by Redeveloper related to TIF Project Costs and Enhanced Employment Act Costs) with labor or materials performed or used in the prosecution of the work provided for in such contract, and will indemnify and save harmless the Authority to the extent of any payments in connection with the carrying out of such contracts which the Authority may be required to make under the law. Section 7.03 Remedies in the Event of Other Redeveloper Defaults. In the event the Redeveloper fails to perform any other provisions of this Redevelopment Contract (other than those specific provisions contained in Section 7.02), the Redeveloper shall be in default. In such an instance, the Authority may seek to enforce the terms of this Redevelopment Contract or exercise any other remedies that may be provided in this Redevelopment Contract or by applicable law; provided, however, that any defaults covered by this Section shall not give rise to a right or rescission on termination of this Redevelopment Contract, and shall not be covered by the Liquidated Damages Amount. Grand Island Council Session - 10/28/2014 Page 87 / 269 21 Section 7.04 Forced Delay Beyond Party's Control. For the purposes of any of the provisions of this Redevelopment Contract, neither the Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be considered in breach of or default in its obligations with respect to the conveyance or preparation of the Redevelopment Project Area and Enhanced Employment Act Area or any part thereof for redevelopment, or the beginning and completion of construction of the TIF Project and Enhanced Employment Act Area Project, or progress in respect thereto, in the event of forced delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not restricted to, acts of God, or of the public enemy, acts of the Government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather or delays in subcontractors due to such causes or delays in the issuance of any necessary permits and other governmental approvals; it being the purpose and intent of this provision that in the event of the occurrence of any such forced delay, the time or times for performance of the obligations of the Authority or of the Redeveloper with respect to construction of the Master Project, as the case may be, shall be extended for the period of the forced delay: Provided, that the party seeking the benefit of the provisions of this section shall, within thirty (30) days after the beginning of any such forced delay, have first notified the other party thereto in writing, and of the cause or causes thereof and requested an extension for the period of the forced delay. Section 7.05 Limitations of Liability; Indemnification. Notwithstanding anything in this Article VII or this Redevelopment Contract to the contrary, neither the City, the Authority, nor their respective elected officials, officers, directors, appointed officials, employees, agents nor their governing bodies shall have any pecuniary obligation or monetary liability under this Redevelopment Contract. The sole obligation of the Authority under this Redevelopment Contract shall be the issuance of the TIF Indebtedness and Enhanced Employment Act Indebtedness and granting of a portion of the proceeds thereof to Redeveloper, and full compliance with the terms specifically set forth in this Agreement and payment of TIF Revenues and Enhanced Employment Act Revenues pledged pursuant to the Resolution. The Redeveloper releases the City and Authority from, agrees that neither the City nor Authority shall be liable for, and agrees to indemnify and hold the City and Authority harmless from any liability for any loss or damage to property or any injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Master Project. Redeveloper agrees to indemnify and hold City and Authority harmless to the extent of any payments in connection with carrying out completion of the Enhanced Employment Act Project the City may make, for failure of Redeveloper to make payments of all amounts lawfully due to all persons, firms, or organizations who performed labor or furnished materials, equipment, or supplies used in construction of the Enhanced Employment Act Project. Redeveloper agrees to indemnify and hold City and Authority harmless for failure of Redeveloper to make payments of all amounts lawfully due to all persons, firms, or organizations under the Relocation Laws in connection with or implementation of the Master Project within the Grand Island Council Session - 10/28/2014 Page 88 / 269 22 Redevelopment Project Area and the Enhanced Employment Act Area. This Section survives any termination of this Agreement. The Redeveloper will indemnify and hold each of the City and Authority and their respective elected officials, directors, officers, appointed officials, agents, employees and members of their governing bodies free and harmless from any loss, claim, damage, demand, tax, penalty, liability, disbursement, expense, excluding litigation expenses, attorneys' fees and expenses, or court costs arising out of any damage or injury, actual or claimed, of whatsoever kind or character, to property (including loss of use thereof) or persons, occurring or allegedly occurring in, on or about that portion of the Master Project owned by the Redeveloper, during the term of this Redevelopment Contract or arising out of any action or inaction of Redeveloper, related to activities of the Redeveloper or its agents during the construction of the public infrastructure or public right of ways in the Master Project. The City and Authority do not waive their governmental immunity by entering into this Agreement and fully retain all immunities and defenses provided by law. ARTICLE VIII MISCELLANEOUS Section 8.01 Notice Recording. This Redevelopment Contract or a notice memorandum of this Redevelopment Contract may be recorded in the office of the Register of Deeds of Hall County, Nebraska. Section 8.02 Governing Law. This Redevelopment Contract shall be governed by the laws of the State of Nebraska, including but not limited to the Act. Section 8.03 Assignment or Conveyance. This Redevelopment Contract shall not be assigned by the Redeveloper without the written consent of the Authority. Such consent shall not be unreasonably withheld, conditioned or delayed. Redeveloper agrees that it shall not convey any Lot or any portion thereof or any structures thereon to any person or entity that would be exempt from payment of real estate taxes, and that it will not make application for any structure, or any portion thereof, to be taxed separately from the underlying land of any Lot. Section 8.04 Binding Effect: Amendment. This Redevelopment Contract shall be binding on the parties hereto and their respective successors and assigns. The Redevelopment Contract shall not be amended except by a writing signed by the party to be bound. Section 8.05 Effective Date and Implementation of Redevelopment Contract. Grand Island Council Session - 10/28/2014 Page 89 / 269 23 This Agreement is in full force and effect from and after the date of execution hereof by both the Redeveloper and the Authority. Section 8.06 Notices to Parties. Notices to Parties shall be mailed by certified U. S. Mail, return receipt requested, postage prepaid, to the following addresses: To Redeveloper: Grand Island Joint Venture, LLC Attention: Michael H. Staenberg 2127 Innerbelt Business Center Drive Suite 310 St. Louis, MO 63114 With Copies to: Grand Island Joint Venture, LLC Attention: General Counsel 2127 Innerbelt Business Center Drive Suite 310 St. Louis, MO 63114 and Mark L. Brasee Fraser Stryker PC LLO 500 Energy Plaza 409 South 17th Street Omaha, NE 68102 And To Authority and City: Grand Island City Clerk 100 E. 1st Street Grand Island, NE 68801 With Copy to: Michael L. Bacon Bacon & Vinton Attorneys P.O. Box 208 Gothenburg, NE 69138 Grand Island Council Session - 10/28/2014 Page 90 / 269 24 [The remainder of this page is intentionally left blank.] IN WITNESS WHEREOF, City, Authority, and Redeveloper have signed this Redevelopment Contract as of the date and year first above written. COMMUNITY DEVELOPMENT AUTHORITY OF THE CITY OF ATTEST:GRAND ISLAND, NEBRASKA ____________________________ By:________________________ Secretary Chairman THE CITY OF ATTEST:GRAND ISLAND, NEBRASKA ____________________________ By:________________________ Clerk Mayor Grand Island Council Session - 10/28/2014 Page 91 / 269 25 GRAND ISLAND JOINT VENTURE, LLC By: TSG Grand Island Investors, LLC, Manager By:______________________ Michael H. Staenberg Manager Grand Island Council Session - 10/28/2014 Page 92 / 269 26 STATE OF NEBRASKA ) ) SS COUNTY OF HALL ) The foregoing instrument was acknowledged before me this ______ day of 2014, by ________________ and ________________, Chairman and Secretary, respectively, of the Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the Authority. ____________________________ Notary Public STATE OF NEBRASKA ) ) SS COUNTY OF HALL ) The foregoing instrument was acknowledged before me this ______ day of 2014, by ________________ and ________________, Mayor and Clerk, respectively, of the City of Grand Island, Nebraska, on behalf of the City. ____________________________ Notary Public STATE OF MISSOURI ) ) SS COUNTY OF ST. LOUIS ) The foregoing instrument was acknowledged before me this ______ day of _____,2014, by Michael H. Staenberg, the Manager of TSG Grand Island Investors, LLC, a Missouri limited liability company, the Manager of Grand Island Joint Venture, LLC, on behalf of the limited liability company. ________________________ Notary Public Grand Island Council Session - 10/28/2014 Page 93 / 269 27 EXHIBIT A DESCRIPTION OF REDEVELOPMENT PROJECT AREA Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of the Grand Island Mall Fifteenth Subdivision in the City of Grand Island, Hall County, Nebraska. It is anticipated that these will be replatted to facilitate the Master Project. Grand Island Council Session - 10/28/2014 Page 94 / 269 28 Grand Island Council Session - 10/28/2014 Page 95 / 269 29 EXHIBIT B DESCRIPTION OF ENHANCED EMPLOYMENT AREA A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and containing 16.428 acres more or less, EXCEPTING THEREFROM A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and more particularly described as follows: Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres more or less. Grand Island Council Session - 10/28/2014 Page 96 / 269 30 EXHIBIT C REDEVELOPMENT PLAN Grand Island Council Session - 10/28/2014 Page 97 / 269 31 EXHIBIT D (FORM OF TIF INDEBTEDNESS BOND) THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND THIS BOND MAY NOT BE TRANSFERRED UNLESS THE PROPOSED ASSIGNEE HAS OBTAINED AND PROVIDED TO THE AUTHORITY, PRIOR TO SUCH TRANSFER AND ASSIGNMENT, AN INVESTOR’S LETTER IN FORM AND SUBSTANCE SATISFACTORY TO THE AUTHORITY EVIDENCING THE COMPLIANCE WITH THE PROVISIONS OF ALL FEDERAL AND STATE SECURITIES LAWS AND CONTAINING SUCH OTHER REPRESENTATIONS AS THE AUTHORITY MAY REQUIRE. THIS BOND MAY BE TRANSFERRED ONLY IN THE MANNER AND ON THE TERMS AND CONDITIONS AND SUBJECT TO THE RESTRICTIONS STATED IN RESOLUTION NO. ____________ OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. UNITED STATES OF AMERICA STATE OF NEBRASKA COUNTY OF HALL COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA TAX INCREMENT DEVELOPMENT REVENUE BOND (GRAND ISLAND NORTHWEST COMMONS PROJECT), SERIES 201_ No. R-1 $____________.00 Date of Date of Rate of Original Issue Maturity Interest December 31, 2030 _.00% REGISTERED OWNER: PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Bond to Grand Island Council Session - 10/28/2014 Page 98 / 269 32 be signed by the manual signature of the Chairman of the Community Redevelopment Authority of the City of Grand Island, countersigned by the manual signature of the Secretary of the Community Redevelopment Authority of the City of Grand Island, and the City’s corporate seal imprinted hereon. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA [S E A L] By: (manual signature) Chairman By: (manual signature) Secretary The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for value received hereby promises to pay, but solely from certain specified tax revenues and other funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”), and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most recent interest payment date to which interest has been paid or duly provided for, as specified below, to maturity or earlier redemption, payable semiannually on May 1 and November 1 of each year until payment in full of such Principal Amount, beginning ___________________, 201_, by check or draft mailed to the Registered Owner hereof as shown on the bond registration books maintained by the Registrar on the 15th day of the month preceding the month in which the applicable interest payment date occurs, at such Owner’s address as it appears on such bond registration books. The principal of this Bond and the interest hereon are payable in any coin or currency which on the respective dates of payment thereof is legal tender for the payment of debts due the United States of America. This Bond is issued by the Authority under the authority of and in full compliance with the Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and adopted by the Authority on _____ __, 201_, as from time to time amended and supplemented (the “Resolution”). Grand Island Council Session - 10/28/2014 Page 99 / 269 33 THE PRINCIPAL AMOUNT OF THIS BOND IS SET FORTH IN SCHEDULE 1 ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS BOND IS $_______________. IN THE EVENT OF CERTAIN EVENTS OF DEFAULT BY THE REDEVELOPER (AS DEFINED IN THE RESOLUTION), UNDER SECTION 7.02 OF THE REDEVELOPMENT CONTRACT (AS DEFINED IN THE RESOLUTION), THE PRINCIPAL AMOUNT OF THIS BOND SHALL BE OFFSET AND REDUCED BY THE AMOUNT OF ANY GRANT BY THE AUTHORITY TO THE REDEVELOPER OF PROCEEDS OF THIS BOND, AS PROVIDED IN THE REDEVELOPMENT CONTRACT. This Bond is a special limited obligation of the Authority payable as to principal and interest solely from and is secured solely by the TIF Revenues (as defined in the Resolution) and certain other money, funds and securities pledged under the Resolution, all on the terms and conditions set forth in the Resolution. The TIF Revenues represents that portion of ad valorem taxes levied by public bodies of the State of Nebraska, including the City, on real property in the Redevelopment Project Area (as defined in this Resolution) which is in excess of that portion of such ad valorem taxes produced by the levy at the rate fixed each year by or for each such public body upon the valuation of the Redevelopment Project Area as of a certain date and as has been certified by the County Assessor of Hall County, Nebraska to the City in accordance with law. Reference is hereby made to the Resolution for the provisions, among others, with respect to the collection and disposition of certain tax and other revenues, the special funds charged with and pledged to the payment of the principal of and interest on this Bond, the nature and extent of the security thereby created, the terms and conditions under which this Bond has been issued, the rights and remedies of the Registered Owner of this Bond, and the rights, duties, immunities and obligations of the City and the Authority. By the acceptance of this Bond, the Registered Owner assents to all of the provisions of the Resolution. The principal of and interest hereon shall not be payable from the general funds of the City nor the Authority nor shall this Bond constitute a legal or equitable pledge, charge, lien, security interest or encumbrance upon any of the property or upon any of the income, receipts, or money and securities of the City or the Authority or of any other party other than those specifically pledged under the Resolution. This Bond is not a debt of the City or the Authority within the meaning of any constitutional, statutory or charter limitation upon the creation of general obligation indebtedness of the City or the Authority, and does not impose any general liability upon the City or the Authority and neither the City nor the Authority shall be liable for the payment hereof out of any funds of the City or the Authority other than the Revenues and other funds pledged under the Resolution, which Revenues and other funds have been and hereby are pledged to the punctual payment of the principal of and interest on this Bond in accordance with the provisions of this Resolution. The Registered Owner may from time to time enter the respective amounts advanced pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Bond then Grand Island Council Session - 10/28/2014 Page 100 / 269 34 outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table. On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner may enter the principal amount paid on this Bond under the column headed “Principal Amount Redeemed” on the Table and may enter the then outstanding principal amount of this Bond under the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding the foregoing, the records maintained by the Trustee as to the principal amount issued and principal amounts paid on this Bond shall be the official records of the Cumulative Outstanding Principal Amount of this Bond for all purposes. Reference is hereby made to the Resolution, a copy of which is on file in the office of the City Clerk, and to all of the provisions of which each Owner of this Bond by its acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the security for this Bond; the Revenue and other money and securities pledged to the payment of the principal of and interest on this Bond; the nature and extent and manner of enforcement of the pledge; the conditions upon which the Resolution may be amended or supplemented with or without the consent of the Owner of this Bond; the rights, duties and obligations of the Authority and the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges, trusts and covenants made therein may be discharged at or prior to the maturity or redemption of this Bond, and this Bond thereafter no longer be secured by the Resolution or be deemed to be outstanding thereunder, if money or certain specified securities shall have been deposited with the Registrar sufficient and held in trust solely for the payment hereof; and for the other terms and provisions thereof. This Bond is subject to redemption prior to maturity, at the option of the Authority, in whole or in part at any time at a redemption price equal to 100% of the principal amount being redeemed, plus accrued interest on such principal amount to the date fixed for redemption. Reference is hereby made to the Resolution for a description of the redemption procedures and the notice requirements pertaining thereto. In the event this Bond is called for prior redemption, notice of such redemption shall be given by first-class mail to the Registered Owner hereof at its address as shown on the registration books maintained by the Registrar not less than 10 days prior to the date fixed for redemption, unless waived by the Registered Owner hereof. If this Bond, or any portion thereof, shall have been duly called for redemption and notice of such redemption duly given as provided, then upon such redemption date the portion of this Bond so redeemed shall become due and payable and if money for the payment of the portion of the Bond so redeemed and the accrued interest thereon to the date fixed for redemption shall be held for the purpose of such payment by the Registrar, interest shall cease to accrue and become payable hereon from and after the redemption date. This Bond is transferable by the Registered Owner hereof in person or by its attorney or legal representative duly authorized in writing at the principal office of the Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution, and upon surrender and cancellation of this Bond. Upon such transfer, a new Bond of the same series and maturity and for the same principal amount will be issued to the transferee in exchange therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the Grand Island Council Session - 10/28/2014 Page 101 / 269 35 absolute owner hereof for the purpose of receiving payment of or on account of principal of and interest due hereon and for all other purposes. This bond is being issued as fully a registered bond without coupons. This bond is subject to exchange as provided in the Resolution. It is hereby certified, recited and declared that all acts, conditions and things required to have happened, to exist and to have been performed precedent to and in the issuance of this Bond have happened, do exist and have been performed in regular and due time, form and manner; that this Bond does not exceed any constitutional, statutory or charter limitation on indebtedness; and that provision has been made for the payment of the principal of and interest on this Bond as provided in this Resolution. [The remainder of this page intentionally left blank] Grand Island Council Session - 10/28/2014 Page 102 / 269 36 (FORM OF ASSIGNMENT) ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________________________________________________________________ Print or Type Name, Address and Social Security Number or other Taxpayer Identification Number of Transferee the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints _______________ agent to transfer the within Bond on the bond register kept by the Registrar for the registration thereof, with full power of substitution in the premises. Dated: _______________ ____________________________________ ___ NOTICE: The signature to this Assignment must correspond with the name of the Registered Owner as it appears upon the face of the within bond in every particular. Signature Guaranteed By: ____________________________________ ___ Name of Eligible Guarantor Institution as defined by SEC Rule 17 Ad-15 (17 CFR 240.17 Ad-15) By: ______________________________ __ Title: ______________________________ __ Grand Island Council Session - 10/28/2014 Page 103 / 269 37 [The remainder of this page intentionally left blank] SCHEDULE 1 TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA GRAND ISLAND NORTHWEST COMMONS PROJECT TAX INCREMENT DEVELOPMENT REVENUE BOND, SERIES 201_ Date Principal Amount Advanced Principal Amount Redeemed Cumulative Outstanding Principal Amount Notation Made By Grand Island Council Session - 10/28/2014 Page 104 / 269 38 EXHIBIT E (FORM OF ENHANCED EMPLOYMENT ACT INDEBTEDNESS BOND) THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND THIS BOND MAY NOT BE TRANSFERRED UNLESS THE PROPOSED ASSIGNEE HAS OBTAINED AND PROVIDED TO THE AUTHORITY, PRIOR TO SUCH TRANSFER AND ASSIGNMENT, AN INVESTOR’S LETTER IN FORM AND SUBSTANCE SATISFACTORY TO THE AUTHORITY EVIDENCING THE COMPLIANCE WITH THE PROVISIONS OF ALL FEDERAL AND STATE SECURITIES LAWS AND CONTAINING SUCH OTHER REPRESENTATIONS AS THE AUTHORITY MAY REQUIRE. THIS BOND MAY BE TRANSFERRED ONLY IN THE MANNER AND ON THE TERMS AND CONDITIONS AND SUBJECT TO THE RESTRICTIONS STATED IN RESOLUTION NO. ____________ OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. UNITED STATES OF AMERICA STATE OF NEBRASKA COUNTY OF HALL COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA OCCUPATION TAX REVENUE BOND (GRAND ISLAND NORTHWEST COMMONS PROJECT), SERIES 201_ No. R-1 Up to $____________.00 (subject to reduction as described herein) Date of Date of Rate of Original Issue Maturity Interest December 31, 2030 _.00% REGISTERED OWNER: PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT Grand Island Council Session - 10/28/2014 Page 105 / 269 39 AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Bond to be signed by the manual signature of the Chairman of the Community Redevelopment Authority of the City of Grand Island, countersigned by the manual signature of the Secretary of the Community Redevelopment Authority of the City of Grand Island, and the City’s corporate seal imprinted hereon. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA [S E A L] By: (manual signature) Chairman By: (manual signature) Secretary The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for value received hereby promises to pay, but solely from certain specified tax revenues and other funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”), and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most recent interest payment date to which interest has been paid or duly provided for, as specified below, to maturity or earlier redemption, payable semiannually on May 1 and November 1 of each year until payment in full of such Principal Amount, beginning ___________________, 201_, by check or draft mailed to the Registered Owner hereof as shown on the bond registration books maintained by the Registrar on the 15th day of the month preceding the month in which the applicable interest payment date occurs, at such Owner’s address as it appears on such bond registration books. The principal of this Bond and the interest hereon are payable in any coin or currency which on the respective dates of payment thereof is legal tender for the payment of debts due the United States of America. This Bond is issued by the Authority under the authority of and in full compliance with the Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and adopted by the Authority on _____ __, 201_, as from time to time amended and supplemented (the “Resolution”). Grand Island Council Session - 10/28/2014 Page 106 / 269 40 THE PRINCIPAL AMOUNT OF THIS BOND IS SET FORTH IN SCHEDULE 1 ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS BOND IS $_______________. IN THE EVENT OF CERTAIN EVENTS OF DEFAULT BY THE REDEVELOPER (AS DEFINED IN THE RESOLUTION), UNDER SECTION 7.02 OF THE REDEVELOPMENT CONTRACT (AS DEFINED IN THE RESOLUTION), THE PRINCIPAL AMOUNT OF THIS BOND SHALL BE OFFSET AND REDUCED BY THE AMOUNT OF ANY GRANT BY THE AUTHORITY TO THE REDEVELOPER OF PROCEEDS OF THIS BOND, AS PROVIDED IN THE REDEVELOPMENT CONTRACT. This Bond is a special limited obligation of the Authority payable as to principal and interest solely from and is secured solely by the Enhanced Employment Act Revenues (as defined in the Resolution) and certain other money, funds and securities pledged under the Resolution, all on the terms and conditions set forth in the Resolution. The Enhanced Employment Act Revenue represents the occupation tax revenues generated and collected under the occupation tax authorized by the Bond Resolution and the Occupation Tax Ordinance in accordance with law. Reference is hereby made to the Bond Resolution for the provisions, among others, with respect to the collection and disposition of certain tax and other revenues, the special funds charged with and pledged to the payment of the principal of and interest on this Bond, the nature and extent of the security thereby created, the terms and conditions under which this Bond has been issued, the rights and remedies of the Registered Owner of this Occupation Tax Revenue Bond, and the rights, duties, immunities and obligations of the City and the Authority. By the acceptance of this Occupation Tax Revenue Bond, the Registered Owner assents to all of the provisions of the Resolution. The principal of and interest hereon shall not be payable from the general funds of the City nor the Authority nor shall this Bond constitute a legal or equitable pledge, charge, lien, security interest or encumbrance upon any of the property or upon any of the income, receipts, or money and securities of the City or the Authority or of any other party other than those specifically pledged under the Resolution. This Bond is not a debt of the City or the Authority within the meaning of any constitutional, statutory or charter limitation upon the creation of general obligation indebtedness of the City or the Authority, and does not impose any general liability upon the City or the Authority and neither the City nor the Authority shall be liable for the payment hereof out of any funds of the City or the Authority other than the Revenues and other funds pledged under the Resolution, which Revenues and other funds have been and hereby are pledged to the punctual payment of the principal of and interest on this Bond in accordance with the provisions of this Resolution. The Registered Owner may from time to time enter the respective amounts advanced pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Bond then outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table. Grand Island Council Session - 10/28/2014 Page 107 / 269 41 On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner may enter the principal amount paid on this Bond under the column headed “Principal Amount Redeemed” on the Table and may enter the then outstanding principal amount of this Bond under the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding the foregoing, the records maintained by the Trustee as to the principal amount issued and principal amounts paid on this Bond shall be the official records of the Cumulative Outstanding Principal Amount of this Bond for all purposes. Reference is hereby made to the Resolution, a copy of which is on file in the office of the City Clerk, and to all of the provisions of which each Owner of this Bond by its acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the security for this Bond; the Revenue and other money and securities pledged to the payment of the principal of and interest on this Bond; the nature and extent and manner of enforcement of the pledge; the conditions upon which the Resolution may be amended or supplemented with or without the consent of the Owner of this Bond; the rights, duties and obligations of the Authority and the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges, trusts and covenants made therein may be discharged at or prior to the maturity or redemption of this Bond, and this Bond thereafter no longer be secured by the Resolution or be deemed to be outstanding thereunder, if money or certain specified securities shall have been deposited with the Registrar sufficient and held in trust solely for the payment hereof; and for the other terms and provisions thereof. This Bond is subject to redemption prior to maturity, at the option of the Authority, in whole or in part at any time at a redemption price equal to 100% of the principal amount being redeemed, plus accrued interest on such principal amount to the date fixed for redemption. Reference is hereby made to the Resolution for a description of the redemption procedures and the notice requirements pertaining thereto. In the event this Bond is called for prior redemption, notice of such redemption shall be given by first-class mail to the Registered Owner hereof at its address as shown on the registration books maintained by the Registrar not less than 10 days prior to the date fixed for redemption, unless waived by the Registered Owner hereof. If this Bond, or any portion thereof, shall have been duly called for redemption and notice of such redemption duly given as provided, then upon such redemption date the portion of this Bond so redeemed shall become due and payable and if money for the payment of the portion of the Bond so redeemed and the accrued interest thereon to the date fixed for redemption shall be held for the purpose of such payment by the Registrar, interest shall cease to accrue and become payable hereon from and after the redemption date. This Bond is transferable by the Registered Owner hereof in person or by its attorney or legal representative duly authorized in writing at the principal office of the Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution, and upon surrender and cancellation of this Bond. Upon such transfer, a new Bond of the same series and maturity and for the same principal amount will be issued to the transferee in exchange therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal of and Grand Island Council Session - 10/28/2014 Page 108 / 269 42 interest due hereon and for all other purposes. This bond is being issued as fully a registered bond without coupons. This bond is subject to exchange as provided in the Resolution. It is hereby certified, recited and declared that all acts, conditions and things required to have happened, to exist and to have been performed precedent to and in the issuance of this Bond have happened, do exist and have been performed in regular and due time, form and manner; that this Bond does not exceed any constitutional, statutory or charter limitation on indebtedness; and that provision has been made for the payment of the principal of and interest on this Bond as provided in this Resolution. [The remainder of this page intentionally left blank] Grand Island Council Session - 10/28/2014 Page 109 / 269 43 (FORM OF ASSIGNMENT) ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________________________________________________________________ Print or Type Name, Address and Social Security Number or other Taxpayer Identification Number of Transferee the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints _______________ agent to transfer the within Bond on the bond register kept by the Registrar for the registration thereof, with full power of substitution in the premises. Dated: _______________ ____________________________________ ___ NOTICE: The signature to this Assignment must correspond with the name of the Registered Owner as it appears upon the face of the within bond in every particular. Signature Guaranteed By: ____________________________________ ___ Name of Eligible Guarantor Institution as defined by SEC Rule 17 Ad-15 (17 CFR 240.17 Ad-15) By: ______________________________ __ Title: ______________________________ __ Grand Island Council Session - 10/28/2014 Page 110 / 269 44 [The remainder of this page intentionally left blank] SCHEDULE 1 TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA GRAND ISLAND NORTHWEST COMMONS PROJECT OCCUPATION TAX REVENUE BOND, SERIES 201_ Date Principal Amount Advanced Principal Amount Redeemed Cumulative Outstanding Principal Amount Notation Made By Grand Island Council Session - 10/28/2014 Page 111 / 269 45 EXHIBIT F TIF PROJECT COSTS* Redevelopment TIF Project Costs 1. Development Costs (site demolition, electric, gas, and telephone Development, site electric, sewers, water) $879,200.00 2. Building Rehabilitation Costs (Gross Building Shell, Tenant White Box)$5,511,987 3. Soft Costs (architecture, engineering, design, legal, inspection, $274,059 and related fees) TOTAL $6,665,246 * TIF Project Costs not used in one category may be used in another category, but the total TIF Project Costs shall not exceed the amount of the TIF Indebtedness. Grand Island Council Session - 10/28/2014 Page 112 / 269 46 EXHIBIT G LIST OF BUSINESS CLASSIFICATIONS During the Enhanced Employment Act Period, the business within the Enhanced Employment Act Area shall be classified as follows: 1) General Retail: apparel, cosmetics, specialty stores, salons, restaurants, services, and related businesses. 2) Non-Occupation Tax Retail: users of space, or kinds of transactions where an occupations tax cannot be imposed pursuant to Section 18-2142.02 of the Nebraska Revised Statutes, as amended, which includes, but is not limited to 1) manufacturers or wholesalers of alcoholic liquor; 2) producers, suppliers, distributors, wholesalers, or importers of motor fuel and/or gasoline; 3) stamping agents engaged in distributing or selling cigarettes at wholesale; 4) the first owner of tobacco products in the state of Nebraska; and 5) the gross receipts from the sale, lease, or rental of and the storage use, or other consumption of food or food ingredients except for prepared food and food sold through vending machines. 3) Other: businesses that are not either General Retail or Non-Occupation Tax Retail. Grand Island Council Session - 10/28/2014 Page 113 / 269 47 EXHIBIT H TIMELINE Anticipated completion for the Main Mall Parcel containing approximately 128,000 square feet of retail space is June, 2016 with the additional three Outlots to be developed as the market demands. Grand Island Council Session - 10/28/2014 Page 114 / 269 48 EXHIBIT I ENHANCED EMPLOYMENT ACT PROJECT COSTS* Enhanced Employment Act Project Costs 1. Development Costs (grading, curbs, paving, signage, landscaping, parking lot lighting, and trash receptacles) $2,176,675 2. Building Rehabilitation Costs (gross Building Shell, tenant white box)$5,235,620 3. Soft Costs (architecture, staking, engineering, design, legal, inspection, $427,841 and related fees) TOTAL $7,840,136 * Enhanced Employment Act Project Costs not used in one category may be used in another category, but the total Enhanced Employment Act Project Costs shall not exceed the amount of the Enhanced Employment Act Indebtedness. * Enhanced Employment Act Project Costs are restricted to eligible and lawful costs and expenses incurred with respect to only the Enhanced Employment Act Area and not the greater Redevelopment Project Area. Grand Island Council Session - 10/28/2014 Page 115 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item F-1 #9507 - Consideration of Vacation of a Utility Easement Located in Copper Creek Estates Fifth Subdivision (The Guarantee Group, LLC) Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 116 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Consideration of Vacation of a Utility Easement Located in Copper Creek Estates Fifth Subdivision (The Guarantee Group, LLC) Item #’s:F-1 Presenter(s):John Collins PE, Public Works Director Background A utility easement was dedicated with the original Copper Creek Estates Fifth Subdivision plat on October 24, 2013. Such easement is not necessary to accommodate existing or proposed utilities and vacating it will support the development of Lot 6 and Lot 7. Discussion The developer/property owner of Cooper Creek Estates Fifth Subdivision is requesting to vacate the originally dedicated easement for Lot 6 & Lot 7. There are no utilities currently within this easement that will be affected by this vacation. The attached sketch details the referenced easement to be vacated. 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 - 10/28/2014 Page 117 / 269 Recommendation City Administration recommends that the Council pass an ordinance vacating the easement located in Copper Creek Estates Fifth Subdivision. Sample Motion Move to pass an ordinance vacating the easement. Grand Island Council Session - 10/28/2014 Page 118 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney This Space Reserved for Register of Deeds ORDINANCE NO. 9507 An ordinance to vacate existing utility easement and to provide for filing this ordinance in the office of the Register of Deeds of Hall County, Nebraska; to repeal any ordinance or parts of ordinances in conflict herewith, and to provide for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. That an existing utility easement comprising a part of Lots Six (6) and Seven (7), Copper Creek Estates Fifth Subdivision, in the City of Grand Island, Nebraska, more particularly described as follows: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT SIX (6), SAID POINT BEING FIVE (5.0) FEET EAST OF THE NORTHWEST CORNER OF SAID LOT SIX (6); THENCE RUNNING EASTERLY ON THE NORTH LINE OF SAID LOT SIX (6) A DISTANCE OF FIVE (5.0) FEET; THENCE RUNNING SOUTHERLY PARALLE WITH THE WEST LINE OF SAID LOT SIX (6), A DISTANCE OF SIXTY FIVE AND SEVTY EIGHT HUNDREDTHS (66.78) FEET; THENCE CONTINUING SOUTHERLY PARALLEL WITH THE WEST LINE OF SAID LOT SIX (6), A DISTANCE OF FORTY AND TWENTY FIVE HUNDREDTHS (40.25) FEET, TO A POINT ON THE NORTH LINE OF SAID LOT SEVEN (7); THENCE RUNNING SOUTHERLY PARALLEL WITH THE WETS LINE OF SAID LOT SEVEN (7), A DISTANCE OF NINETY FOUR AND SEVENTY TWO HUNDREDTHS (94.72) FEET, TO A POINT FIVE (5.0) FEET NORTH OF THE SOUTH LINE OF SAID LOT SEVEN (7); THENCE RUNNING WESTERLY PARALLEL WITH THE SOUTH LINE OF SAID LOT SEVEN (7), A DISTANCE OF FIVE (5.0) FEET TO A POINT FIVE (5.0) FEET EAST OF THE WETS LINE OF SAID LOT SEVEN (7); THENCE RUNNING NORTHERLY PARALLEL WITH THE WEST LINE OF SAID LOT SEVEN (7), A DISTANCE OF NIENTY FOUR AND EIGHTY SIX HUNDREDTHS (94.86) FEET, TO A Grand Island Council Session - 10/28/2014 Page 119 / 269 ORDINANCE NO. 9507 (Cont.) - 2 - POINT ON THE SOUTH LINE OF SAID LOT SIX (6); THENCE RUNNING NORTHERLY PARALLE WITH THE WEST LINE OF SAID LOT SIX (6), A DISTANCE OF FORTY AND TEN HUNDREDTHS (40.10) FEET; THENCE RUNNING NORTHERLY PARALLEL WITH THE WEST LINE OF SAID LOT SIX (6), A DISTANCE OF SIXTY SIX AN DIEGHTY HUNDREDTHS (66.80) FEET, TO THE POINT OF BEGINNING AND CONTIANING 0.023 ACRES (1009 SQ. FT.) MORE OR LESS. is hereby vacated. Such easement to be vacated is shown and more particularly described on Exhibit A attached hereto. SECTION 2. The title to the property vacated by Section 1 of this ordinance shall revert to the owner or owners of the real estate upon which the easement is located. SECTION 3. This ordinance is directed to be filed, with the drawing, in the office of the Register of Deeds of Hall County, Nebraska. SECTION 4. This ordinance shall be in force and take effect from and after its passage and publication, within fifteen days in one issue of the Grand Island Independent as provided by law. Enacted: October 28, 2014 ____________________________________ Jay Vavricek, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 120 / 269 Grand Island Council Session - 10/28/2014 Page 121 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item F-2 #9508 – Consideration of Amending Chapter 15 of the Grand Island City Code Regarding the 2014 National Electric Codes Staff Contact: Craig Lewis Grand Island Council Session - 10/28/2014 Page 122 / 269 Council Agenda Memo From:Craig A. Lewis, Building Department Director Meeting:October 28, 2014 Subject:City Code Amendments to Chapter 15, Electricity Adoptions of the 2014 National Electrical Code Item #’s:F-2 Presenter(s):Craig Lewis, Building Department Director Background This request is for City Council approval to modify the City Code by adopting the 2014 edition of the National Electric Code. The City has for several decades adopted and enforced electrical codes to safeguard persons and property from the hazards arising from the use of electricity. The 2014 National Electric Code (NEC) is the current edition of the national standard for the installation of electrical wiring systems. Typically the State of Nebraska adopts the current edition of the NEC and requires local inspection programs to adopt and enforce the current regulations as part of the State approval of local programs. Discussion The proposed amendment to chapter 15 of the Grand Island City Code will adopt the current edition of the National Electric Code. The City’s electrical board has reviewed the 2014 NEC and recommends approval with the local amendments as outlined in the proposed ordinance. The local amendments basically provide some restrictions and clarifications in the installation of required wiring. Local amendments: 1. Removes requirement for feeders in apartment building to be in conduit. 2. References the International Residential Code for the installation of smoke and carbon monoxide alarms. 3. Refers to Mechanical code for bonding requirements of CSST gas piping. 4. Prohibits the use of non-grounded receptacles for new or replacement devices after December 31, 2014. Grand Island Council Session - 10/28/2014 Page 123 / 269 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the ordinance. 2.Disapprove or /Deny the adoption of the ordinance. 3.Modify the ordinance to meet the wishes of the Council 4.Table the issue Recommendation The City Electrical Board and City Staff recommend that the City Council approve Ordinance No. 9508, adopting the 2014 NEC, with the local amendments identified and begin enforcement on December 30, 2014. Sample Motion Move to approve Ordinance No. 9508. Grand Island Council Session - 10/28/2014 Page 124 / 269 Approved as to Form ¤ ___________ October 22, 2014 ¤ City Attorney ORDINANCE NO. 9508 An ordinance to amend Chapter 15 of the Grand Island City Code; to amend Sections 15-2; 15-3; 15-8; and 15-11 pertaining to electricity; to repeal Sections 15-2; 15-3; 15-8; and 15-11 as now existing, and any ordinance or parts of ordinances in conflict herewith; and to provide for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. Sections 15-2; 15-3; 15-8; and 15-11 of the Grand Island City Code are hereby amended to read as follows: §15-2. National Electrical Code Adopted (A) There is hereby adopted by the City of Grand Island for the purpose of safeguarding persons and buildings from hazards arising from the use of electricity for light, heat, power, radio, signaling, and other purposes, that certain code known as the National Electrical Code, 20141 Edition, recommended by the National Fire Protection Association, except as modified by this section. (B) The National Electrical Code adopted by subsection (A) above is modified by deleting Article 362, Article 210-52C Subsection 2 and 3, which are not adopted and shall have no force or effect. Articles 320, 330, 334, 348, and 352 are amended by §15-3 of the Grand Island City Code. (C) One copy of the National Electrical Code, 20141 Edition, shall be on file in the city clerk's office for public use and inspection as provided by law. Amended by Ordinance No. 8990, effective 8-10-2005 Amended by Ordinance No. 9194, effective 11-1-2008 Amended by Ordinance No. 9366, effective 03-30-2012 §15-3. Amendments to National Electrical Code, 20141 Edition The following sections are adopted as amendments to the same numbered sections of the National Electrical Code, 20114 Edition: Article 320 – Armored cable (type AC) 320.10. Uses permitted. Armored cable may be used for indoor branch circuits when installed with a grounding conductor in the cable with the branch circuit conductors and sized to the overcurrent protective devise. Anti short bushings shall be used. 320.12. Uses not permitted. Armored cable shall not be used in hazardous locations, where buried or in direct contact with the earth, concrete, cinder fill or where exposed to chemicals or acids. Article 330 - Metal-Clad Cable (Type MC) 330.10. Uses Permitted. Metal-clad cable may be used for indoor branch circuit use only when installed with a grounding conductor in the cable with the circuit conductors and sized to the overcurrent protective devise. Anti short bushing shall be used. 330.12. Uses Not Permitted. Metal-clad cable shall not be used in hazardous locations where subject to physical damage, buried in direct contact with the earth, concrete, cinder fill, or where exposed to chemicals or acids. Article 334 – Nonmetallic-Sheathed Cable (Types NM, NMC, and NMS) 334.12. Uses Not Permitted. In any multifamily dwelling or structure exceeding three floors above grade. For the purpose of this article, the floor of a building shall be that floor that has fifty percent (50%) or more of the exterior wall surface area level with or above finished grade. One additional level that is the first level and not designed for human habitation and only for vehicle parking, storage or similar use shall be permitted. Grand Island Council Session - 10/28/2014 Page 125 / 269 ORDINANCE NO. 9508 (Cont.) Article 352 - Rigid Nonmetallic Conduit (PVC) 352.10. Uses Permitted (A) Where encased in concrete (B) Underground installations (C) For service entrances on the outside of buildings where not subject to physical damage (D) For raceways to feed subpanels (E) In wet locations where used with proper connections and fittings (F) For physical protection of ground wires 352.12. Uses Not Permitted (A) In alleys or utility easements, the first section of conduit out of the ground (B) For branch circuits Article 348 - Flexible Metal Conduit 348.10. Uses Permitted. Flexible metal conduit may be used for fish work in old buildings or other places where rigid conduit is impractical to install. Special permission shall be obtained from the electrical inspector before it is used in lengths longer than six feet. Amended by Ordinance No. 8990, effective 8-10-2005 Amended by Ordinance No. 9194, effective 11-1-2008 Amended by Ordinance No. 9366, effective 03-30-2012 §15-8. Wiring In Single and Multiple-Family Units (A) Multiple family units may have branch circuits in individual units wired with nonmetallic sheathed cable if construction complies with Chapter 8 of the Grand Island City Code. (B) Existing residential buildings containing more than six family units not having a two-hour fire wall rating separation as provided in Chapter 8 of the Grand Island City Code shall be wired with Electrical Metallic Tubing (EMT type) in compliance with the provisions of this chapter. (C) All wiring in basements below the floor joist on exterior walls shall be wired with metallic tubing (EMT type). All electrical wiring in unfinished basements below the floor joist level on interior and exterior walls shall be guarded. All feeders from the main panel to the individual apartments in multiple family units shall be in conduit. The electrical panels shall be the circuit breaker type. (D) Smoke alarms shall be installed to comply with Section R314 of the 2012 International Residential Code. (E) Carbon monoxide alarms shall be installed to comply with Section R315 of the 2012 International Residential Code. Amended by Ordinance No. 9366, effective 03-30-2012 §15-11. Requirements for Electrical Installations (A) Aluminum Conductors – aluminum conductors may be used for service entrance and feeders only. (B) Equipment grounding conductors – an equipment grounding conductor will be required in all conduit systems except for rigid metal conduit systems with threaded hubs, couplings or fittings. (C) CSST gas piping shall be bonded to comply with section 1311.14.2 of the 2012 Uniform Mechanical Code. (D) Non-grounding receptacles shall not be installed, either in new work or for replacement, after December 31, 2014. Amended by Ordinance No. 9194, effective 11-1-2008 SECTION 2. Sections 15-2; 15-3; 15-8; and 15-11 as existing prior to this amendment, and any ordinances or parts of ordinances in conflict herewith be, and hereby are, repealed. Grand Island Council Session - 10/28/2014 Page 126 / 269 ORDINANCE NO. 9508 (Cont.) SECTION 3. The validity of any section, subsection, sentence, clause, or phrase of this ordinance shall not affect the validity or enforceability of any other section, subsection, sentence, clause, or phrase thereof. SECTION 4. That this ordinance shall be in force and take effect from and after its passage and publication, on December 31, 2014. Enacted: October 28, 2014. ____________________________________ Jay Vavricek, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 127 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item F-3 #9509 – Consideration of Approving the Enhanced Employment Area Occupation Tax This item relates to the aforementioned Public Hearing item E-6. Staff Contact: Chad Nabity Grand Island Council Session - 10/28/2014 Page 128 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney CITY OF GRAND ISLAND, NEBRASKA ORDINACE NO. 9509 AN ORDINANCE PROVIDING FOR AGREEMENT TO THE LEVY OF A RETAIL BUSINESS OCCUPATION TAX; THE LEVY OF A RETAIL BUSINESS OCCUPATION TAX; ESTABLISHING DEFINITIONS; PROVIDING FOR THE ADMINISTRATION, COLLECTIONS, RETURNS, DELINQUINCIES AND RECOVERY OF UNPAID AMOUNTS RELATED TO SUCH OCCUPATION TAX; SPECIFYING HOW SUCH TAX REVENUE WILL BE USED; PROVIDING A SUNSET PROVISION FOR THE TAX; AND RELATED MATTERS BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS: Section 1.Findings and Determinations. The Mayor and Council of the City of Grand Island, Nebraska (the “City”) hereby find and determine as follows: (a)Pursuant to Chapter 18, Article 21, Reissue Revised Statutes of Nebraska, as amended (the “Act”), the Community Redevelopment Authority of the City of Grand Island (the “CRA”) has prepared and adopted the Amended & Restated Site Specific Redevelopment Plan, Grand Island CRA Area 9, which, in part, (1) provides for the development of a commercial shopping center (the “Redevelopment Project”) between State Street and Capital Avenue and between U.S. Highway 281 and Webb Road in the Redevelopment Project Area as shown on Exhibit “A” (attached hereto and incorporated herein by reference) and (2) designates the area shown in Exhibit “B” (attached hereto and incorporated herein by reference) as an “enhanced employment area” as defined in Section 18-2103(22) of the Act (the “Enhanced Employment Act Area”). (b)Pursuant to Section 18-2142.02 of the Act, the City is authorized to agree to and to levy and collect a general business occupation tax upon the businesses and users of space within the Enhanced Employment Act Area for the purpose of paying all or any part of the costs and expenses of the Enhanced Employment Act Project within the Enhanced Employment Act Area. (c)It is necessary, desirable, advisable and in the best interests of the City that a general business occupation tax be imposed within the Enhanced Employment Act Area as provided by the Act for the purpose set forth in Section 1(b). Section 2.Definitions. As used in this Ordinance, the following words and phrases shall have the meanings ascribed to them in this Section 2, except where the context clearly indicates or requires a different meaning: Grand Island Council Session - 10/28/2014 Page 129 / 269 ORDINANCE NO. 9509 (Cont.) 2 (a)“Person” means any natural person, individual, partnership, association, organization or corporation of any kind or character engaging in the business of operating a General Retail Business. (b)“General Retail Business” means any activity engaged in by any Person or caused to be engaged in by such Person in which products or services are sold, leased or rented for any purpose other than for resale, sublease or subrent, except that “General Retail Business” shall not mean any transaction which is subject to tax under Sections 53-160, 66-489, 66-489.02, 66-4,140, 66-4,145, 66-4,146, 77-2602 or 77-4008 of the Nebraska Revised Statutes or which is exempt from tax under Section 77-2704.24 of the Nebraska Revised Statutes. (c)“Taxpayer” shall mean any Person engaged in the business of operating a General Retail Business as herein defined who is required to pay the tax herein imposed. Section 3.Agreement to Impose Tax. The City hereby agrees to impose an occupation tax upon every Person operating a General Retail Business within the Enhanced Employment Act Area, and the Mayor and City Clerk are hereby authorized and directed to execute such documents and take such actions as are necessary to carry out this Ordinance, including, but not limited to, entering into a Redevelopment Contract with the CRA and a redeveloper in substantially the form as set forth in Exhibit “C”. Section 4.Tax Imposed; Collection of Tax. (a)On or after October 1, 2015 and in each calendar month thereafter there is hereby imposed a retail business occupational tax upon each and every Person operating a General Retail Business within the Enhanced Employment Act Area for any period of time during a calendar month. The amount of such tax shall be one percent (1.00%) of all General Retail Business transactions which the State of Nebraska is authorized to impose a tax as allowed by the Nebraska Local Option Revenue Act for each calendar month derived from the General Retail Business subject to this tax. Such tax shall be imposed on transactions which the State of Nebraska is authorized to impose a tax as allowed by the Nebraska Local Option Revenue Act resulting from the sales of products or services within the limits of the Enhanced Employment Act Area which are subject to the sales and use tax imposed by the State of Nebraska, except that no occupation tax shall be imposed on any transaction which is subject to tax under Sections 53- 160, 66-489, 66-489.02, 66-4,140, 66-4,145, 66-4,146, 77-2602 or 77-4008 of the Nebraska Revised Statutes or which is exempt from tax under Section 77-2704.24 of the Nebraska Revised Statutes . (b)The Person engaged in operating a General Retail Business may itemize the tax levied on a bill, receipt, or other invoice to the purchaser, but each Person engaged in such business shall remain liable for the tax imposed by this Ordinance. Section 5.Business Classifications. Pursuant to Section 18-2142.02 of the Act, the City hereby makes the following classifications of businesses, users of space, or kinds of transactions for purposes of imposing the occupation tax: Grand Island Council Session - 10/28/2014 Page 130 / 269 ORDINANCE NO. 9509 (Cont.) 3 (a) General Retail Business: means any activity engaged in by any Person or caused to be engaged in by such Person in which products or services are sold, leased or rented for any purpose other than for resale, sublease or subrent, except that “General Retail Business” shall not mean any transaction which is subject to tax under Sections 53-160, 66-489, 66-489.02, 66- 4,140, 66-4,145, 66-4,146, 77-2602 or 77-4008 of the Nebraska Revised Statutes, as amended, or which is exempt from tax under Section 77-2704.24 of the Nebraska Revised Statues, as amended. (b) Non-Occupation Tax Retail: means users of space, or kinds of transactions where an occupations tax cannot be imposed pursuant to Section 18-2142.02 of the Act, which includes, but is not limited to 1) manufacturers or wholesalers of alcoholic liquor; 2) producers, suppliers, distributors, wholesalers, or importers of motor fuel and/or gasoline; 3) stamping agents engaged in distributing or selling cigarettes at wholesale; 4) the first owner of tobacco products in the state of Nebraska; and 5) the gross receipts from the sale, lease, or rental of and the storage use, or other consumption of food or food ingredients except for prepared food and food sold through vending machines. c) Other: businesses that are not either General Retail or Non-Occupation Tax Retail. Section 6.Return. Each and every Person engaged in the operation of a General Retail Business within the Enhanced Employment Act Area for the calendar month beginning October 1, 2015, and for each and every month thereafter, shall prepare and file, on or before the 25th day of the following month thereafter on a form prescribed and furnished by the City Administrator, a return for such month, and at the same time pay to the City the tax herein imposed. The return shall be verified and sworn to by the officer in charge of the business. The return shall be considered filed on time if mailed in an envelope properly addressed to the City Administrator, postage prepaid and postmarked before midnight of the 25th day of the appropriate month. Section 7.Tax Cumulative. (a)The levy of the tax under this Ordinance is in addition to all other fees, taxes, excises and licenses levied and imposed under any contract or any other ordinances of the City, in addition to any fee, tax, excise or license imposed by the State of Nebraska. (b)Payment of the tax imposed by this Ordinance shall not relieve the Person paying the same from payment of any other tax now or hereafter imposed by contract or ordinance or by this Ordinance, including those imposed for any business or occupation he or she may carry on, unless so provided therein. The occupational tax imposed by this Ordinance shall be cumulative except where otherwise specifically provided. Section 8.Use of Revenue. The one percent (1.00%) occupation tax imposed by this Ordinance, less any administrative expenses, shall be used to fund any expenditures that the City is lawfully authorized to make in connection with the Enhanced Employment Act Project as permitted by the Act. Grand Island Council Session - 10/28/2014 Page 131 / 269 ORDINANCE NO. 9509 (Cont.) 4 Section 9.Failure to File Return; Delinquency; Assessment by the City Administrator (a)If any Person neglects or refuses to file a return or make payment of the taxes as required by this Ordinance, the City Administrator shall make an estimate, based upon such information as may be reasonably available, of the amount of taxes due for the period or periods for which the Taxpayer is delinquent, and upon the basis of such estimated amount, compute and assess in addition thereto a penalty equal to one percent (1.00%) thereof, together with interest on such delinquent taxes, at the rate of ten percent (10.00%), per month, or fraction thereof from the date when due. Any such interest due may be compounded quarterly. (b)The City Administrator shall give the delinquent Taxpayer written notice of such estimated taxes, penalty, and interest, which notice must be served personally or by certified mail. (c)Such estimate shall thereupon become an assessment and such assessment shall be final and due and payable from the Taxpayer to the City Administrator ten (10) days from the date of service of the notice or the date of mailing by certified mail; however, within such ten (10) day period the delinquent Taxpayer may petition the City Administrator for a revision or modification of such assessment and shall, within such ten-day period, furnish the City Administrator the facts and correct figures showing the correct amounts of such taxes. (d)Such petition shall be in writing, and the facts and figures submitted shall be submitted in writing and shall be given under oath of the Taxpayer. (e)The City Administrator may then modify such assessment in accordance with the facts which he or she deems correct. Such adjusted assessment shall be made in writing, and notice thereof shall be mailed to the Taxpayer within ten (10) days; and all such decisions shall become final upon the expiration of thirty (30) days from the date of service, unless proceedings are commenced within that time for appeal in the District Court. Section 10.Administration; Miscellaneous Provision. (a)The administration of the provisions of this Ordinance are hereby vested in the City Administrator, or his designee, who shall prescribe forms in conformity with this Ordinance for the making of returns, for the ascertainment, assessment and collection of the tax imposed hereunder, and for the proper administration and enforcement hereof. (b)All notices required to be given to the Taxpayer under the provisions of this Ordinance shall be in writing. Notices shall be mailed by registered or certified mail, postage prepaid, return receipt requested, to the Taxpayer at his or her last known address. (c)It shall be the duty of every Taxpayer to keep and preserve suitable records and other books or accounts as may be necessary to determine the amount of tax for which he/she is liable hereunder. (1)Records of the transactions which the State of Nebraska is authorized to impose a tax allowed by the Nebraska Local Option Revenue Act by which this tax is measured Grand Island Council Session - 10/28/2014 Page 132 / 269 ORDINANCE NO. 9509 (Cont.) 5 shall be kept separate and apart from the records of other sales or receipts in order to facilitate the examination of books and records as necessary for the collection of this tax. (2)It shall be the duty of every Taxpayer to keep and preserve for a period of four (4) years all such books, invoices and other records, which shall be open for examination at any time by the City Administrator or his or her duly designated persons. If such Person keeps or maintains his books, invoices, accounts or other records, or any thereof, outside of the state, upon demand of the City Administrator he/she shall make the same available at a suitable place within the City, to be designated by the City Administrator, for examination, inspection and audit by the City Administrator or his or her duly authorized persons. The Taxpayer shall reimburse the City for the reasonable costs of examination, inspection and audit if the City Administrator determines that the Taxpayer paid ninety percent or less of the tax owing for the period of the examination. (3)The City Administrator, in his or her discretion, may make, permit or cause to be made the examination, inspection or audit of books, invoices, accounts or other records so kept or maintained by such Person outside of the state at the place where same are kept or maintained or at any place outside the state where the same may be made available, provided such Person shall have entered into a binding agreement with the City to reimburse it for all costs and expenses incurred by it in order to have such examination, inspection or audit made in such place. (d)For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any Person, the City Administrator or his or her duly authorized persons, may conduct investigations concerning any matters covered by this Ordinance; and may examine any relevant books, papers, records or memoranda of any such Person. Section 11. Recover of Unpaid Tax by Action at Law (a)The City Administrator may also treat any such taxes, penalties or interest due and unpaid as a debt due the City. (b)In case of failure to pay the taxes, or any portion thereof, or any penalty or interest thereon when due, the City may recover at law the amount of such taxes, penalties and interest in any court of Hall County, Nebraska or of the county wherein the Taxpayer resides or has its principal place of business having jurisdiction of the amounts sought to be collected. (c)The return of the Taxpayer or the assessment made by the City Administrator, as herein provided, shall be prima facie proof of the amount due. (d)The City Attorney may commence an action for the recovery of taxes due under this Ordinance and this remedy shall be in addition to all other existing remedies, or remedies provided in this Ordinance. Section 12.Suspension or Revocation of Licenses for Failure to Pay Tax; Hearing. If the Mayor or the Mayor’s designee, after holding a hearing, shall find that any Grand Island Council Session - 10/28/2014 Page 133 / 269 ORDINANCE NO. 9509 (Cont.) 6 Person has willfully evaded payment or collection and remittance of the tax imposed by this Ordinance, such official may suspend or revoke any City license, permit or other approval held by such tax evader. Such Person shall have an opportunity to be heard at such hearing to be held not less than seven (7) days after notice is given of the time and place of the hearing to be held, addressed to the last known place of business of such Person. Pending the notice, hearing and finding, any licensee, permit or other approval issued by the City to the Person may be temporarily suspended. No suspension or revocation hereunder shall release or discharge the Person from civil liability for the payment or collection and remittance of the tax, nor from prosecution for such offense. Section 13.Sunset Provision. The occupation tax imposed by this Ordinance shall terminate and collection of the tax shall cease upon the earlier of 1) payment in full of all indebtedness issued by the City pursuant to the provisions of Section 18-2124 of the Act, for which such occupation tax receipts have been pledged; or, 2) twenty (20) years after the effective date of the Ad Valorem Tax Provision, as provided for in the Redevelopment Contract. Section 14.Conflicts. All ordinances, resolutions, or orders, or parts thereof in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. Section 15.Severability. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid, the validity of the remainder hereof shall not be affected thereby. Section 16.Headings of Section Not Controlling. The headings of sections of this Ordinance are set forth herein for convenience of reference only and shall not affect the construction or interpretation of this Ordinance or any section hereof. Section 17.Effective Date. This Ordinance shall take effect upon its passage and publication as provided by law. DATED: October 28, 2014 ____________________________________ Jay Vavricek, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 134 / 269 ORDINANCE NO. 9509 (Cont.) 7 EXHIBIT “A” REDEVELOPMENT PROJECT AREA Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of the Grand Island Mall Fifteenth Subdivision in the City of Grand Island, Hall County, Nebraska. EXHIBIT “B” ENHANCED EMPLOYMENT ACT AREA A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and containing 16.428 acres more or less, EXCEPTING THEREFROM A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and more particularly described as follows: Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres more or less. EXHBIT “C” REDEVELOPMENT CONTRACT Grand Island Council Session - 10/28/2014 Page 135 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-1 Approving Minutes of October 14, 2014 City Council Regular Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 10/28/2014 Page 136 / 269 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL REGULAR MEETING October 14, 2014 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 14, 2014. Notice of the meeting was given in The Grand Island Independent on October 8, 2014. Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following City Council members were present: Kent Mann, Linna Dee Donaldson, Chuck Haase, Julie Hehnke, Mitch Nickerson, Peg Gilbert, John Gericke, Mark Stelk, Mike Paulick, and Vaughn Minton. The following City Officials were present: City Administrator Mary Lou Brown, Assistant to the City Administrator Nicki Stoltenberg, Treasurer and Finance Director Jaye Monter, City Attorney Robert Sivick, and City Engineer and Public Works Director John Collins. The PLEDGE OF ALLEGIANCE was recited. BOARD OF EQUALIZATION: Motion by Gilbert, second by Nickerson to adjourn to the Board of Equalization. Motion adopted. #2014-BE-6 – Consideration of Council President Haase’s Request the Council Override the Mayor’s Veto of Determining Benefits for Water Main District 458T, Platte Valley Industrial Park - East. #2014-BE-7 – Consideration of Council President Haase’s Request the Council Override the Mayor’s Veto of Determining Benefits for Sanitary Sewer District 527T; Platte Valley Industrial Park-East. These requests were brought forward by several Councilmembers for the reconsideration of the Mayor’s veto submitted September 30, 2014. Motion by Haase, second by Gilbert to approve overriding the Mayor’s veto of Resolution #2014-BE-6 & Resolution #2014-BE-7. Margaret Hornady, 2708 Arrowhead Road, issued an apology for leaving the City with this situation. She indicated that it was her hope that the City Administrator, at the time of her term, and the Grand Island Area Economic Development Corporation would have created a formal agreement. Lewis Kent, 624 Meves Avenue, spoke of his concern regarding who would be responsible for the grant payback amount. Further council discussion took place, as well as further explanation by Mayor Vavricek regarding the veto. Grand Island Council Session - 10/28/2014 Page 137 / 269 Page 2, City Council Regular Meeting, October 14, 2014 Councilmember Gilbert called the question to cease debate. Upon roll call vote, all voted aye. Motion adopted. Upon roll call vote on the original motion, all voted aye. Motion adopted. RETURN TO REGULAR SESSION: Motion by Gilbert, second by Stelk to return to Regular Session. Motion adopted. PUBLIC HEARINGS: Public Hearing on Request from Grand Island Public Schools for a Conditional Use Permit for Off Street Parking located at 1621 West Stolley Park Road and 2019 William Street. Building Department Director Craig Lewis reported that a request had been received from Grand Island Public Schools to allow for the construction of a parking lot located at 1621 West Stolley Park Road and 2019 William Street. Staff recommended approval with the condition that the landscaping requirements provided in City Code Section 36-102 be applicable with the final construction of the parking lot and that vehicle ingress and egress to the parking lot, both now and in the future, are only from either Hagge Avenue or William Street adjacent to the proposed parking lot. Virgil Harden, 123 S. Webb Road, on behalf of Grand Island Public School, made reference that he is present, if Council has any further questions. Public Hearing on Acquisition of Utility Easement located North of U.S. Highway 30 and West of Engleman Road (West Park Plaza Mobile Home Park). Utilities Director Tim Luchsinger reported that acquisition of a utility easement located north of Highway 30 and west of Engleman Road was needed in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers. The easement would create a path for a new cable between a main line and an existing transformer for redundancy. Staff recommended approval. No public testimony was heard. ORDINANCES: Councilmember Gilbert moved “that the statutory rules requiring ordinances to be read by title on three different days are suspended and that ordinances numbered: #9506 - Consideration of Amendments to Chapter 30 of the Grand Island City Code Relative to Sewers and Sewage Disposal be considered for passage on the same day upon reading by number only and that the City Clerk be permitted to call out the number of these ordinances on second reading and then upon final passage and call for a roll call vote on each reading and then upon final passage.” Councilmember Nickerson seconded the motion. Upon roll call vote, all aye. Motion adopted. Grand Island Council Session - 10/28/2014 Page 138 / 269 Page 3, City Council Regular Meeting, October 14, 2014 Public Works Director John Collins reported that a recent installation of a food grinder had brought the fact that existing City Code did not allow for this. Revisions to Chapter 30-49 of the Grand Island City Code were recommended. Motion by Gilbert, second by Minton to approve Ordinance #9506. Assistant to the City Administrator: Ordinance #9506 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Assistant to the City Administrator: Ordinance #9506 on second and final reading. All those in favor of the passage of this ordinance on second and final reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Mayor Vavricek: By reason of the roll call votes on first reading and then upon final passage, Ordinance #9506 is declared to be lawfully adopted upon publication as required by law. CONSENT AGENDA: Motion by Donaldson, second by Mann to approve the Consent Agenda, excluding G-8 (#2014-314). Upon roll call vote, all voted aye. Motion adopted. Approving Minutes of September 23, 2014 City Council Regular Meeting. Approving Minutes of September 23, 2014 City Council Study Session. Approving Appointment of Dean Sears to the Regional Planning Commission. #2014-310 - Approving Keno Satellite Location and Agreement for Bosselman Administrative Services dba Quaker Steak and Lube, 3335 W. Wood River Road. #2014-311 - Approving Acquisition of Utility Easement located North of U.S. Highway 30 and West of Engleman Road (West Park Plaza Mobile Home Park). #2014-312 - Approving Change Order #3 for Utility Management System with Mainsaver Software, Inc. of San Diego, CA for an Increase of $91,125.00 and a Revised Contract Amount of $381,610.00. #2014-313 - Approving Certificate of Final Completion for the 2014 Asphalt Resurfacing Project No. 2014-AC-1 with J.I.L. Asphalt Paving Co., Inc. of Grand Island, NE. #2014-314 - Approving Bid Award for Snow Removal Services 2014/2015 (Streets Division of the Public Works Department) with The Diamond Engineering Company of Grand Island, NE for the following: Dump Trucks - $165.00 per hour; Front End Loaders - $200.00 per hour; and Motor Graders - $220.00 per hour. Discussion was held regarding snow removal services for the upcoming season. Grand Island Council Session - 10/28/2014 Page 139 / 269 Page 4, City Council Regular Meeting, October 14, 2014 Motion by Gilbert, second by Minton to approve Resolution #2014-314. Upon roll call vote, all voted aye. Motion adopted. #2014-315 - Approving Bid Award for (1) New Compact Excavator and (1) New Skid-Steer Loader with Central Nebraska Bobcat of Grand Island, NE in an Amount of $72,550.49. #2014-316 - Approving Contract Modification for Engineering Consulting Services related to Heartland Public Shooting Park Paving Improvements with Speece Lewis Engineers, Inc. of Lincoln, NE for an Increase of $4,306.90 and a Revised Contract Amount of $14,506.90. #2014-317 - Approving Agreement with the Grand Island Tennis Association to Lease Racquet Center Property. #2014-318 – Approving Revisions to the City Personnel Rules. REQUESTS AND REFERRALS: Consideration of Request from Grand Island Public Schools for a Conditional Use Permit for Off Street Parking located at 1621 West Stolley Park Road and 2019 William Street. This item related to the aforementioned Public Hearing. Motion by Mann, second by Stelk to approve the request with conditions as specified during the Public Hearing. Upon roll call vote, all voted aye. Motion adopted. RESOLUTIONS: #2014-319 - Consideration of Approving a New Lease Agreement with the Grand Generation Center. City Attorney Robert Sivick reported that the building located at 304 East Third Street is owned by the City of Grand Island and leased to the Senior Citizens Industries, Inc. Terms of the lease are on a year to year basis with the City responsible for the maintenance of the building’s exterior, parking lot, HVAC, plumbing, and electrical systems. Senior Citizens Industries, Inc. is responsible for the regular day to day maintenance of the building. One hundred thousand dollars annually is appropriated from the City for necessary repair and maintenance. Motion by Haase, second by Minton to approve Resolution #2014-319. Upon roll call vote, all voted aye. Motion adopted. #2014-307 - Consideration of Council President Haase’s Request the Council Override the Mayor’s Veto for Assessments for Water Main District 458T, Platte Valley Industrial Park - East. #2014-308 - Consideration of Council President Haase’s Request the Council Override the Mayor’s Veto for Assessments for Sanitary Sewer District 527T; Platte Valley Industrial Park- East. Grand Island Council Session - 10/28/2014 Page 140 / 269 Page 5, City Council Regular Meeting, October 14, 2014 Motion by Haase, second by Gilbert to approve overriding the Mayor’s veto of Resolution #2014-307 & #2014-308. Upon roll call vote, all voted aye. Motion adopted. #2014-309 - Consideration of Approving Agreement with the Clean Community Systems. City Attorney Robert Sivick reported that the 2014-2015 annual budget appropriated $20,000 to the Grand Island Area Clean Community System. This agreement was needed to specify the obligations of each party and payment terms. Patsy Steenson, 616 Pheasant Place, a Board member with the Clean Community Systems, spoke on behalf of the organization. Motion by Donaldson, second by Mann to approve Resolution #2014-309. Upon roll call vote, all voted aye. Motion adopted. Mayor Vavricek introduced Community Youth Council member Mitzy Matul-Diaz, a sophomore from Northwest High School and Danna Burchess who is in her second year as a CYC board member. PAYMENT OF CLAIMS: Motion by Gericke, second by Nickerson to approve the Claims for the period of September 24, 2014 through October 14, 2014, for a total amount of $5,881,539.17. Unanimously approved. ADJOURNMENT: The meeting was adjourned at 8:30 p.m. Nicki Stoltenberg Assistant to the City Administrator Grand Island Council Session - 10/28/2014 Page 141 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-2 Approving Appointment of Jeremiah Krantz to the Downtown Business Improvement District 2013 Board Mayor Vavricek has submitted the appointment of Jeremiah Krantz to the Downtown Business Improvement District 2013 board to replace Brent Lindner. This appointment will become effective immediately upon approval by the City Council and will expire on September 30, 2018. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/28/2014 Page 142 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-3 Approving Appointment of Glenn Wilson to the Community Redevelopment Authority Mayor Vavricek has submitted the appointment of Glenn Wilson to the Community Redevelopment Authority to replace Glen Murray. This appointment will become effective immediately upon approval by the City Council and will expire on September 30, 2019. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/28/2014 Page 143 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-4 Approving Re-Appointments of Ray O’Connor and Tom O’Neill and Appointments of Ken Staab and Gail Yenny to the Citizens Advisory Review Committee Mayor Vavricek has submitted the re-appointments of Ray O'Connor and Tom O'Neill to the Citizens Advisory Review Committee. Also submitted are appointments of Ken Staab and Gail Yenny to replace Bruce Lux and Lisa Willman. These appointments will become effective immediately upon approval by the City Council and will expire on September 30, 2016. Staff Contact: Mayor Jay Vavricek Grand Island Council Session - 10/28/2014 Page 144 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-5 #2014-320 - Approving the Purchase of Data 911 Mobile Video Systems for the Police Department Staff Contact: Steven Lamken Grand Island Council Session - 10/28/2014 Page 145 / 269 Council Agenda Memo From:Steven Lamken, Police Chief Meeting:October 28, 2014 Subject:Purchase of Police Mobile Video System Item #’s:G-5 Presenter(s):Steven Lamken, Police Chief Background The Police Department mobile video equipment being used in our Patrol fleet is dated and in need of replacement. The Department is experiencing more problems with the current mobile video systems. The Department is proposing to purchase fifteen (15) new mobile video systems, fifteen (15) sync bases and a five year support and maintenance contract for all thirty (30) of the department’s mobile video systems from Data 911 for a total cost of $87,210.00. The fifteen new systems would replace one half of the current systems in use. The Police Department uses Data 911 mobile video equipment. The Council made Data 911 a sole source vendor for mobile data equipment in 2007. The Police Department has looked at other mobile video systems in preparation for replacing our current equipment. We recommend that the Data 911 equipment be purchased under the sole source resolution. Discussion The Police Department has been using Data 911 mobile video systems in our patrol fleet for several years. The equipment has become dated and needs to be replaced. We are experiencing more problems with the older equipment in use. The Department has planned for this update for the past two years. It is our intent to phase in the purchase of new mobile video systems over two fiscal years. Our current vendor, Data 911 was declared a sole source vendor for mobile video equipment by Council action in 2007. Copy of Resolution 2007-45 is attached. The Department has been satisfied with Data 911. The Department did research possible alternative vendors for the replacement of our current equipment and recommends that we continue to use Data 911 as our sole source vendor. Our reasons for this are: Grand Island Council Session - 10/28/2014 Page 146 / 269 The Data 911 Verus Solo System Two Camera system with the trade in allowance for our current video system is $3,995.00 per unit. This cost is comparable to or less than the cost of other vendor systems we reviewed. Data 911 has provided excellent technical support throughout the years we have used them as a vendor. The Department field tested a mobile video unit similar in price as the Data 911 unit. This is the system that was comparable in price to the Data 911 system. We experienced multiple technical problems with the unit. Our Evidence Unit staff and our City IT support staff made several requests for technical support to the vendor of this unit. Neither the IT staff nor our staff received a response to any request for over four weeks and the unit continued to have significant problems throughout the test period. The system and equipment for archiving and retrieving video from the new Data 911 systems is compatible with our current equipment and software. We will not need to do anything or incur additional costs to this video evidence system to use the new Data 911 units. We experienced serious problems with the downloading of video from the patrol car into our system and problems with retrieving video from the archived database from the other vendor’s unit we field tested. We received no response to requests for technical support regarding these problems. Our Evidence Unit Technician and the City IT support staff are familiar with the Data 911 system and software. The system is highly reliable and efficient. Both our Evidence Unit and City IT staff support remaining with the Data 911 system. The Department is proposing to purchase fifteen VXS12002 Verus Solo Systems from Data 911 for $5,995.00 per unit with a trade in allowance of $2000.00 each for fifteen of our older Data 911 units for final cost of $3995.00 per unit or $59,925.00 total. The Department will also need to purchase fifteen VXA1002 Verus Wired Remote Sync Bases for the fifteen mobile video units. The VXA1002 Sync bases are $30.00 each for a total cost of $450.00. The sync bases are required because we use multiple microphone/transmitters that are not dedicated to any specific unit. Shipping is $585.00 for the new units. We are also recommending purchasing a five year support and maintenance contract for our Data 911 mobile video system, the software and all of the units in the Patrol fleet. This is a renewal of a maintenance contract we have on our current equipment and software. The cost for the maintenance agreement is $875.00 per unit. The total cost of the five year support and maintenance agreement is $26,250.00 for the thirty units in our fleet. The purchase of the support and maintenance agreement also extends the $2000 per unit trade in agreement on our current units beyond this year. The maintenance agreement will transfer to the new mobile units as they are put into service. The total cost of the Data 911 contract is $87,210.00. This includes: Grand Island Council Session - 10/28/2014 Page 147 / 269 $ 59,925.00 purchase of fifteen new VXS12002 Verus Solo Systems $ 450.00 purchase of fifteen VXA11002 Verus Wired Remote Sync Bases $ 26,250.00 purchase of a 5 year support and maintenance renewal contract on the Data 911 system and 30 mobile video units. $ 585.00 Shipping $ 87,210.00 Total Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the contract with Data 911 for the purchase of fifteen VXS12002 Verus Solo Systems, fifteen VXA11002 Verus Wired Remote Sync Bases, a renewal of a five year support and maintenance contract on all mobile video units and the Data 911 system and shipping for a cost of $87,210.00 Sample Motion Move to approve the contract with Data 911 for the purchase of fifteen VXS12002 Verus Solo Systems, fifteen VXA11002 Verus Wired Remote Sync Bases, a renewal of a five year support and maintenance contract on all mobile video units and the Data 911 system and shipping for a cost of $87,210.00 Grand Island Council Session - 10/28/2014 Page 148 / 269 9t24t2014 Quote from Data911 Deliver to: Robert Falldorf Grand lsland Police Dept (NE) United States WWwWwWWW 202'l Challenger Dr. Alameda, Ca. 94501 Invoice to: Robert Falldorf Grand lsland Police Dept (NE) 111 Public Safety Drive, pO Box 196g Grand lsland NE 68802 United States Qty Part Number '15.00 vxs12002 15 VXA1 1002 15.00 cR99999 15.00 sH00005 30.00 2299999 Item Description Verus Solo System; Standard Two Camera package, 900Mhz Wireless Mic, Wired Mic, 36 Month Warranty Verus, Wired Remote Sync Base For Transmitter Special Package Discount - Trade in on Data911 MDV Svstem Shipping - For Product: Video System - Method: Ground 5 Year Support & Maintenance Renewal for Datagl l In_Vehicle Digital Video Software (Per Vehicle) Subtotal Not rated @ 0% Unit Price Ext Price $5,995;.0000 $89,925.00 $3Cr.0000 $450.00 $-2,00c.0000 $-30,000.00 $39.0000 $585.00 $875.0000 $26,250.00 $87,210.00 $0.00 Quote Number:102112 Printed Date:24 Sep 201'1 Ship Method: Assigned To:Lisa Dunn Total $87,210.00 Paid to date $0.00 Remit Purchase Order To: Data91 1 2021 Challenger Dr. Alameda, Ca. 94501 sales@data91 1 .com F: (510) 865-9090 Pricing subject to prepayment or credit approval https://pst brightpearl com/4.73.1/template-print.php?return-to-oid='102't 12&olD= 1 021 12&contacts_id=3501&temprare_type_id=4 Grand Island Council Session - 10/28/2014 Page 149 / 269 Grand Island Council Session - 10/28/2014 Page 150 / 269 Mobile Video Systems Vendor Costs Digital Ally -$3995 per unit. State contract price. Digital Ally is the unit we field tested. We experienced multiple issues and could not get technical support. Watchguard -$4995 per unit.Review committee liked Data 911 better than this system. L3 Digital Video System -$5500 per unit.Review committee liked Data 911 better than this system. Grand Island Council Session - 10/28/2014 Page 151 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-320 WHEREAS, the Police Department needs to upgrade their mobile video equipment in the Patrol fleet vehicles; and WHEREAS, Data 911 was designated as a sole source vendor for such equipment under Resolution 2007-45 by the City Council; and WHEREAS, the Data 911 Verus Solo standard two camera system with trade in of our current mobile video systems is the same price as the lowest priced competitive vendor; and WHEREAS, Data 911 mobile video equipment has been reliable, and is compatible with the Police Department’s archiving and evidence retrieval software and hardware; and WHEREAS, the Police Department has received prompt and reliable technical support from Data 911 for several years. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, to approve the contract with Data 911 for the purchase of fifteen VXS12002 Verus Solo Systems, fifteen VXA11002 Verus Wired Remote Sync Bases, a renewal of a five year support and maintenance contract on all mobile video units and the Data 911 system and shipping for a cost of $87,210.00 - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014 _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 152 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-6 #2014-321 - Approving Acquisition of Utility Easement - 924 Claude Road (Buehler Properties, LLC) This item relates to the aforementioned Public Hearing item E-3. Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 10/28/2014 Page 153 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-321 WHEREAS, a public utility easement is required by the City of Grand Island from Buehler Properties, LLC, to survey, construct, inspect, maintain, repair, replace, relocate, extend, remove, and operate thereon, public utilities and appurtenances, including lines and transformers; and; WHEREAS, a public hearing was held on October 28, 2014, for the purpose of discussing the proposed acquisition of a twenty foot wide easement located in the City of Grand Island, Hall County, Nebraska; and more particularly described as follows: Beginning at the Southeast corner of Lot Fourteen (14), Farrall Subdivision, in the City of Grand Island, Hall County, Nebraska; thence along the south line of said Lot Fourteen (14), on an assumed bearing of S88°49’02”W, a distance of ten (10.0) feet; thence N0°58’00”W, a distance of seventy eight and ninety one hundredths (78.91) feet; thence N30°52’20”W, a distance of forty nine (49.0) feet; thence N88°49’02”E, a distance of thirty four and forty three hundredths (34.43) feet to a point on the East line of said Lot Fourteen (14); thence along the east line of said Lot Fourteen (14) on a bearing of S0°58’00”E, a distance of one hundred twenty one and forty seven hundredths (121.47) feet to the Southwest corner of said Lot Fourteen (14) being the said Point of Beginning. The above-described easement and right-of-way tracts containing a combined total of 0.04 acres, more or less, as shown on the plat dated 10/2/2014, marked Exhibit “A” attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire a public utility easement from Buehler Properties, LLC, on the above-described tract of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska October 28, 2014. _________________________________ Jay Vavricek, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 154 / 269 Grand Island Council Session - 10/28/2014 Page 155 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-7 #2014-322 - Approving Bid Award - 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) for Platte Generating Station Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 10/28/2014 Page 156 / 269 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting Date:October 28, 2014 Subject:2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) for Platte Generating Station Item #’s:G-7 Presenter(s):Timothy G. Luchsinger, Utilities Director Background The Production Division of the Utilities Department uses a bucket truck for servicing equipment at the Platte Generating Station, Burdick Station, and the Wellfield. The existing vehicle has been in use since 1999 and is in need of replacement. The new unit will restore reliability as this is the only bucket truck in the Production Division’s fleet. Discussion The specifications for the 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) was advertised and issued for bid in accordance with the City Purchasing Code. Bids were publicly opened on October 7, 2014. The engineer’s estimate for this project was $160,000.00. Bidder Bid Price Altec Elizabethtown, KY $ 104,217.00 Truck Equipment, Inc. Des Moines, IA $ 108,405.00 Equipment Technology, LLC Oklahoma City, OK $ 108,741.25 The low bid from Altec had no significant exceptions to the bid and is the lowest responsive bidder for the replacement unit. Grand Island Council Session - 10/28/2014 Page 157 / 269 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 Council award the bid for the 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) to Altec of Elizabethtown, Kentucky, as the low responsive bidder, with the bid in the amount of $104,217.00. Sample Motion Move to approve the bid in the amount of $104,217.00 from Altec, for the 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) for use at Platte Generating Station. Grand Island Council Session - 10/28/2014 Page 158 / 269 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:October 7, 2014 at 2:00 p.m. FOR:2015 Complete Unit w/Telescopic Aerial Platform & Chassis (Bucket Truck) DEPARTMENT:Utilities ESTIMATE:$160,000.00 FUND/ACCOUNT:520 PUBLICATION DATE:September 13, 2014 NO. POTENTIAL BIDDERS:3 SUMMARY Bidder:Altec Truck Equipment, Inc. Elizabethtown, KY Des Moines, IA Exceptions:Noted Noted Bid Price: Truck:$38,403.00 $39,281.00 Aerial Lift/Utility Body:$65,814.00 $69,124.00 Total Base Bid:$104,217.00 $108,405.00 Alternate Bid: N/A N/A Bidder:Equipment Technology LLC Oklahoma City, OK Exceptions:Noted Bid Price: Truck:$38,046.00 Aerial Lift/Utility Body:$70,695.25 Total Base Bid:$108,741.25 Alternate Bid:$-2,556.00 Grand Island Council Session - 10/28/2014 Page 159 / 269 cc:Tim Luchsinger, Utilities Director Bob Smith, Assist. Utilities Director Mary Lou Brown, City Administrator Jaye Monter, Finance Director Stacy Nonhoff, Purchasing Agent Pat Gericke, Utilities Admin. Assist. Karen Nagel, Utilities Secretary Ryan Schmitz, Utilities Production Eng. P1767 Grand Island Council Session - 10/28/2014 Page 160 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-322 WHEREAS, the City of Grand Island invited sealed bids for a 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck) for the Platte Generating Station, according to plans and specifications on file with the Utilities Department; and WHEREAS, on October 7, 2014, bids were received, opened and reviewed; and WHEREAS, Altec of Elizabethtown, Kentucky, 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 $104,217.00; and WHEREAS, the bid of Altec, is less than the estimate for a 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck). NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Altec, in the amount of $104,217.00, for a 2015 Complete Unit with Telescopic Aerial Platform and Chassis (Bucket Truck), is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________ Jay Vavricek, Mayor Attest: ___________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 161 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-8 #2014-323 - Approving Change Order #2 with IES for Construction of Substation J Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 10/28/2014 Page 162 / 269 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting Date:October 28, 2014 Subject:Substation J Construction - Change Order #2 Item #’s:G-8 Presenter(s):Timothy Luchsinger, Utilities Director Background On September 24, 2013, City Council approved the construction of a new electrical substation located in the northwest corner of the Platte Generation Station property. The substation was recommended in order to reliably serve the expanding load along the Platte Valley Industrial Park and the Highway 281 corridor. Construction is nearly complete with the substation expected to go into service in November. Discussion Due to the separation of the control building and relay panels from the construction contract, some labor and material quantities were unknown when contracts were originally awarded. All additions to date have been included. The total for this change order is $74,889.00 and increases the contract by approximately 7% to $2,645,567.38. In addition, due to delays in building and panel delivery, an extension of the original contract deadline of September 1, 2014 to November 28, 2014 is requested. 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 - 10/28/2014 Page 163 / 269 Recommendation City Administration recommends that Council approve Change Order #2 to the Contract for Substation J Construction to IES Industrial, Inc., in the amount of $74,889.00, for a final contract amount of $2,645,567.38 and a contract deadline of November 28, 2014. Sample Motion Move to approve Change Order #2 for Substation J Construction to IES Industrial, Inc., in the amount of $74,889.00, for a final contract amount of $2,645,567.38 and a contract deadline of November 28, 2014. Grand Island Council Session - 10/28/2014 Page 164 / 269 City of Grand Island Utilities Department General Work Contract - Change Order EWO 5453 Substation J Construction Comments:Changes due to as-built cable lengths and types Contract:IES Commercial, Inc.$2,472,834.38 Change Order Request Description Amount 001 Unit Q1 4/0 Cu Grnd. Bid Quantity, 10,000’, rev est. qty, 12,850’(UP $6.94)$ 19,779.00 002 Unit K5 2/C #12 Bid Quantity, 6,000’, rev est. qty, 6,300’(UP$1.97)$ 591.00 003 Unit K7 3/C #10 Bid Quantity, 6,000’, rev est. qty, 7,800’(UP$$2.30)$ 4,140.00 004 Unit K8 3/C #6 Bid Quantity, 600’, rev est. qty, 750’(UP$4.30)$ 645.00 005 Unit K9 3/C #1/0 Bid Quantity, 350’, rev est. qty, 0’(UP$19.38)$ (6,783.00) 006 Unit K9 3/C #1/0 Bid Quantity, 0’, rev est. qty, 500’(UP10.20)$ 5,100.00 007 Unit K10 4/C #10 Bid Quantity ,15,000’, rev est. qty, 23,800’(UP$2.63)$ 23,114.00 008 Unit K? 12/C #12 Bid Quantity, 00’, rev est. qty, 10,860’(UP$4.65)$ 50,499.00 009 Unit K11 7/C #12 Bid Quantity, 6500’, rev est. qty, 0’(UP$2.92)$ (18,980.00) 010 Unit K13 12Pair Bid Quantity, 300’, rev est. qty, 0’(UP$3,38)$ (1,014.00) 011 Unit K14 6 pair Bid Quantity, 300’, rev est. qty, 0’(UP$2.46)$ (738.00) 012 Unit K15 4/C #18 Bid Quantity, 3000’, rev est. qty, 0’(UP$2.05)$ (6,150.00) 013 Unit A18 PLK 4 hole pad Bid Quantity, 45, rev est. qty, 48(UP$641.00)$ 1,923.00 014 Unit A18.1 PLK 4 hole pad Bid Quantity, 18, rev est. qty, 21(UP$202.00)$ 606.00 015 Unit A19 2 cable 500MCM Bid Quantity, 126, rev est. qty, 132(UP$196.00)$ 1,176.00 017 Unit A30 3 cable 500MCM Bid Quantity, 12, rev est. qty, 24(UP$231.00)$ 2,772.00 018 Unit A35 500 MCM cable Bid Quantity, 300 rev est. qty, 600(UP$41.09)$ 12,327.00 019 Unit A36 266 MCM cable Bid Quantity,1700 rev est. qty, 800(UP$2.07)$ (1,863.00) 020 Unit K2A 4’ Flex Bid Quantity, 400’, rev est. qty,250’(UP$81.70)$ (12,255.00) 021 023 024 028 029 030 Total $ 74,889.00 Grand Island Council Session - 10/28/2014 Page 165 / 269 TO:IES Commercial Inc. 120 South Lincoln St. PO Box 27 Holdredge, NE 68949 PROJECT:Contract for "Substation J Construction" You are hereby directed to make the following change in your contract: 1 Additional payment per the attached spreadsheet. ADDITION $74,889.00 The original Contract Sum $2,472,834.38 Previous Change Order Amounts $ 97,844.00 The Contract Sum is increased by this Change Order $ 74,889.00 The Contract Sum is decreased by this Change Order $ The total modified Contract Sum to date $ 2,645,567.38 THE COMPLETION DEADLINE FOR THIS PROJECT HAS BEEN EXTENDED FROM SEPTEMBER 1, 2014 TO NOVEMBER 28, 2014. Approval and acceptance of this Change Order acknowledges understanding and agreement that the cost and time adjustments included represent the complete values arising out of and/or incidental to the work described therein. APPROVED:CITY OF GRAND ISLAND By:_________________________________Date ________________________ Attest: ___________________________________________________________ Approved as to Form, City Attorney ACCEPTED:IES COMMERCIAL, INC. By: _________________________________Date _________________________ Grand Island Council Session - 10/28/2014 Page 166 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-323 WHEREAS, IES Commercial, Inc., of Holdrege, Nebraska was awarded the contract for construction of Substation J, at the September 24, 2013 City Council meeting; and WHEREAS, during construction, several minor changes were made to improve the design and correct minor deficiencies; and because of these changes, the completion deadline has been extended from September 1, 2014 to November 28, 2014; and WHEREAS, due to the separation of the control building and relay panels from the construction contract, some labor and material quantities were unknown when contracts were originally awarded; and WHEREAS, Change Order #2 was prepared for a contract adjustment of an increase in the amount of $74,889.00, resulting in a final contract amount to date of $2,654,567.38, and a completion deadline of November 28, 2014. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Change Order #2 with IES Commercial, Inc., of Holdrege, Nebraska, resulting in an increased cost of $74,889.00, for a final contract price to date of $2,645,567.38, is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. __________________________________ Jay Vavricek, Mayor Attest: _____________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 167 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-9 #2014-324 - Approving Contract Extension to September 30, 2015 with Paramount Linen and Uniform Rental for Uniform Rental for Utilities and Public Works Departments Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 10/28/2014 Page 168 / 269 Council Agenda Memo From:Timothy Luchsinger, Utilities Director John Collins, Public Works Director Stacy Nonhof, Assistant City Attorney Meeting:October 28, 2014 Subject:Uniform Rental Utilities/Public Works Employees Item #’s:G-9 Presenter(s):Timothy Luchsinger, Utilities Director Background Several divisions within the Utilities and Public Works Department utilize a rental agreement in order to provide standard uniforms for their employees, subject to reimbursement provisions of their bargaining unit contracts. Employees that are required to wear fire resistant (FR) clothing may also rent this clothing in accordance to the allowance provisions of their contracts. Discussion The current agreement with Paramount Linen and Uniform has been in place since January 1, 2012, and will expire on December 31, 2014. Because the protective clothing allowances now included in the bargaining unit contracts are based on the October fiscal year, it was proposed to Paramount to extend the current contract to September 30, 2015 at the same pricing, which will allow subsequent contracts to be awarded on a fiscal year basis. 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 - 10/28/2014 Page 169 / 269 Recommendation City Administration recommends that the Council extend the contract for Uniform Rental Services until September 30, 2015, with Paramount Linen and Uniform of Kearney, Nebraska. Sample Motion Move to approve the extension for Uniform Rental Services until September 30, 2015, with Paramount Linen and Uniform of Kearney, Nebraska. Grand Island Council Session - 10/28/2014 Page 170 / 269 Grand Island Council Session - 10/28/2014 Page 171 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-324 WHEREAS, the City of Grand Island entered into an Agreement for Uniform Rental on December 20, 2011 that offered yearly extension of the agreement, with Paramount Linen and Uniform of Kearney, Nebraska for the Utilities Department and Public Works Department; and WHEREAS, the City of Grand Island and Paramount Linen and Uniform have agreed to an extension of the original agreement at the same pricing, to coincide with the City’s Fiscal Year, ending September 30, 2015. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the extension of the Uniform Rental Agreement, until September 30, 2015, with Paramount Linen and Uniform of Kearney, Nebraska, for uniform rental services is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. ________________________________ Jay Vavricek, Mayor Attest: _________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 172 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-10 #2014-325 - Approving Change Order #1 - Surface Prep and Painting of Island Oasis Water Park Staff Contact: Todd McCoy, Parks & Recreation Director Grand Island Council Session - 10/28/2014 Page 173 / 269 Council Agenda Memo From:Todd McCoy, Parks and Recreation Director Meeting:October 28, 2014 Subject:Approve Change Order No. 1 to A1A Sandblasting of Cedar Rapids, Iowa for the Surface Prep and Painting of Island Oasis Water Park Item #’s:G-10 Presenter(s):Todd McCoy, Parks and Recreation Director Background On September 23, 2014 City Council approved the contract with A1A Sandblasting of Cedar Rapids, IA to Surface Prep and Paint Island Oasis Water Park in the amount of $47,300.00. Discussion As the project unfolded, A1A Sandblasting found that the paint was peeling away from the concrete more than originally anticipated in the zero depth area of the pool. Because of the peeling paint, A1A recommended a more aggressive surface prep than was listed in the original bid specifications. They recommended a “full” sandblasting of the area instead of a “brush” blast that was originally specified. The more aggressive surface preparation will increase the longevity of the paint. The additional surface preparation will increase the amount of the contract by $4,000.00. Grand Island Council Session - 10/28/2014 Page 174 / 269 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 City Council approve Change Order No. 1 for the Surface Prep and Painting of Island Oasis Water Park in the amount of $4,000.00. Doing so will increase the total amount of the contract with A1A Sandblasting to $51,300.00. Sample Motion Move to approve Change Order No. 1 to A1A Sandblasting of Cedar Rapids, Iowa for the Surface Prep and Painting of Island Oasis Water Park. Grand Island Council Session - 10/28/2014 Page 175 / 269 Grand Island Council Session - 10/28/2014 Page 176 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-325 WHEREAS, on September 23, 2014 by Resolution 2014-302, the City Council of the City of Grand Island approved an agreement with A1A Sandblasting (Iowa) from Cedar Rapids, Iowa, in the amount of $47,300.00, for Surface Prep and Painting of Island Oasis Water Park; and WHEREAS, additional surface preparation and sandblasting is needed in the zero depth area; and WHEREAS, such modifications have been incorporated into Change Order No. 1; and WHEREAS, the result of such modifications will increase the agreement by $4,000.00 for a revised agreement amount of $51,300.00. 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. 1 between the City of Grand Island and A1A Sandblasting (Iowa) from Cedar Rapids, Iowa, to provide the modifications set out as follows: Add - additional surface preparation and sandblasting of the zero depth area $4,000.00 TOTAL:$4,000.00 - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 177 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-11 #2014-326 - Approving the Agreement with the National Joint Powers Alliance for Joint Material Purchases (Utilities Department) Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 10/28/2014 Page 178 / 269 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:October 28, 2014 Subject:National Joint Power Alliance Item #’s:G-11 Presenter(s):Timothy Luchsinger, Utilities Director Background The Council amended the City’s purchasing/procurement policy on May 28, 2013 to allow the use of cooperative purchasing agreements. The Utilities Department would like to utilize the National Joint Powers Alliance buying group to facilitate purchases including utility trucks, aerial devices, tree trimming equipment and other components. This group would be used as a budgeting tool and ultimately as a purchasing option. There is no cost to join the NJPA, there is no obligation to buy, and it is used by government and non-profit corporations to make purchases of specialty equipment. The NJPA utilizes the same process as the State bidding to ensure the lowest price to the end user. Discussion While there would be some overlap with the State of Nebraska contracts and other buying groups, there are commodities and equipment that are not available for some of the Department’s needs or specifications, for example, digger derricks and aerial bucket trucks. The Department recommends that the Council approve membership by the City in the National Joint Powers Alliance as an authorized purchasing source. 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 - 10/28/2014 Page 179 / 269 4.Take no action on the issue Recommendation City Administration recommends that the Council approve membership by the City in the National Joint Powers Alliance as an authorized purchasing source. Sample Motion Move to approve membership by the City in the National Joint Powers Alliance as an authorized purchasing source. Grand Island Council Session - 10/28/2014 Page 180 / 269 Grand Island Council Session - 10/28/2014 Page 181 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-326 WHEREAS, Council amended the City’s Purchasing/Procurement Policy on May 28, 2013 to allow the use of cooperative purchasing agreements; and WHEREAS, the Utilities Department would like to utilize the National Joint Powers Alliance Buying Group (NJPA) to facilitate purchases for the various divisions; and WHEREAS, there is no cost to join the NJPA, there is no obligation to buy, and the NJPA utilizes the same process as the state bidding to ensure the lowest price to the end user. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that membership to the National Joint Powers Alliance is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. ___________________________________ Jay Vavricek, Mayor Attest: ____________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 182 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-12 #2014-327 - Approving Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S- 4 (Menard) This item relates to the aforementioned Public Hearing item E-4. Staff Contact: John Collins, P.E.- Public Works Director Grand Island Council Session - 10/28/2014 Page 183 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-327 WHEREAS, a public utility easement is required by the City of Grand Island, from an affected property owner for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4, described as follows: Tract No Owner Legal Total 16 John R. Menard THE NORTH 30.00 FEET OF LOT SIX (6), MENARD SECOND SUBDIVISION, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 7,039 SQUARE FEET OR 0.162 ACRES MORE OR LESS. $17,600.00 TOTAL $17,600.00 WHEREAS, an agreement for the public utility easement 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 public utility easement on the above described tract of land, in the amount of $17,600.00. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute such agreements on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 184 / 269 Grand Island Council Session - 10/28/2014 Page 185 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-13 #2014-328 - Approving Temporary Construction Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Menard) Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 186 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Approving Temporary Construction Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Menard) Item #’s:G-13 Presenter(s):John Collins PE, Public Works Director Background Public Works Staff in conjunction with the design engineer, Black & Veatch of Kansas City, Missouri have developed a multi-year replacement plan for the City of Grand Island’s large diameter gravity sanitary sewer interceptor network. The current planned interceptor, entitled the “North Interceptor” will replace aged force main sanitary sewer, reduce or eliminate current sewer pumping station(s), and provide additional capacity for existing and new growth areas of Grand Island. The new North Interceptor route was developed to incorporate, and partner with other utilities for the Capital Avenue Widening Project, and the new Headworks Pumping Station Project at the Wastewater Treatment Plant. This project is funded by SRF Project No. C317867-01, however easements, legal fees & administrative costs are not reimburseable by these funds. A phased approach of constructing the North Interceptor is as follows: Phase I - Wastewater Treatment Plant (WWTP) to 7th Street / Skypark Road Phase II (Part A) - 7th Street / Skypark Road to Broadwell Avenue Phase II (Part B) - Broadwell Avenue to Webb Road Phase II (Part C) - Webb Road to Diers Avenue (Lift Station No. 19) A Temporary Construction easement from John R. Menard is necessary for Phase II, Part C of this project to be completed, which must be approved by City Council. A sketch is attached to show the temporary construction easement area. This project is funded by the State Revolving Funds (SRF) Project #C317981-01. Grand Island Council Session - 10/28/2014 Page 187 / 269 Discussion A temporary construction easement, in the amount of $4,880.00, is needed from one property owner for Phase II, Part C to be constructed. All documents have been signed and returned by the property owner. Authorization of the document and payment to the property owner of $4,880.00 is contingent upon City Council approval. 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 Temporary Construction Easement Agreement between the City of Grand Island, Public Works Department and the affected property owner for North Interceptor Phase II, Part C; Sanitary Sewer Project No. 2013-S-4, in the amount of $4,880.00. Sample Motion Move to approve the temporary construction easement. Grand Island Council Session - 10/28/2014 Page 188 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-328 WHEREAS, a temporary construction easement is required by the City of Grand Island, from John R. Menard, in the North Interceptor Phase II, Part C; Sanitary Sewer Project No. 2013-S-4 project area: THE SOUTH 20.00 FEET OF THE NORTH 50.00 FEET OF LOT SIX (6), MENARD SECOND SUBDIVISION, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 4,880 SQUARE FEET OR 0.112 ACRES MORE OR LESS. WHEREAS, an Agreement for the Temporary Construction easement 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 Temporary Construction easement on the above described tract of land, in the amount of $4,880.00. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute such agreements on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 189 / 269 Grand Island Council Session - 10/28/2014 Page 190 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-14 #2014-329 - Approving Acquisition of Public Utility Easement in Rainbow Lake Sixth Subdivision (SSB Development, LLC) This item relates to the aforementioned Public Hearing item E-5. Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 191 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-329 WHEREAS, a public utility easement is required by the City of Grand Island, from SSB Development, LLC in Rainbow Lake Sixth Subdivision, Hall County, Nebraska and more particularly described as follows: THE SOUTH 15 FEET OF THE NORTH 35 FEET OF LOTS 1 THRU 9, RAINBOW LAKE SIXTH SUBDIVISION IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID UTILITY EASEMENT CONTAINS A CALCULATED AREA OF 14,125 SQUARE FEET OR 0.32 ACRES MORE OR LESS. WHEREAS, an Agreement for the public utility easement 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 public utility easement 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 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 192 / 269 Grand Island Council Session - 10/28/2014 Page 193 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-15 #2014-330 - Approving Amendment No. 1 for Interlocal Cooperative Agreement for Upper Prairie/Silver/Moores Flood Control Project Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 194 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Approving Amendment No. 1 for Interlocal Cooperative Agreement for Upper Prairie/Silver/Moores Flood Control Project Item #’s:G-15 Presenter(s):John Collins PE, Public Works Director Background The City of Grand Island has a history of water related issues and much of the City is in the flood plain. In 1995 the City approached the Central Platte Natural Resources District (CPNRD) to request assistance with this issue. In 2005 the City and CPNRD entered into a partnership, with the CPNRD taking the lead and providing funds for this project. Dating back to February 19, 1982 the City of Grand Island, CPNRD and Hall County have partnered together for the purpose of outlining areas of responsibility and cooperation in developing and carrying out a flood control plan for the Upper Prairie/Silver/Moores Creek drainage areas located in Hall County, Nebraska. This agreement is attached for reference. A detailed hydrology study of Upper Prairie, Silver and Moores Creek, along with a feasibility study and preliminary design for Silver Creek and Upper Prairie Creek Flood Control were conducted in 2003, which projected a cost of $15,264,216.00 to protect properties south of Highway 2 and east of Highway 281. During a presentation to City Council on December 23, 2003 the predicted flood damage to this area was $62.30 Million. Agricultural Land Impact $ 2.77 Million Rural Residential Impact $ 2.05 Million Urban Residential Impact $30.12 Million Business Impact $27.36 Million On January 11, 2005 the Grand Island City Council approved Resolution No. 2005-15, which gave approval for the City to enter into an Interlocal Agreement with the CPNRD, Grand Island Council Session - 10/28/2014 Page 195 / 269 Hall County, and Merrick County (this agreement is attached for reference). Such resolution authorized City funding of 46.25% of the $7.8 million, or $360,750 each year for ten (10) years, for a total amount of $3,607,500.00. Total project cost was estimated to be $16,400,000.00 at this time. Any amendments to an agreement must be approved by City Council. Discussion This project was delayed two (2) years due to the Army Corp of Engineers concerns that potential live ordinances may have been in the area. Over the course of the project costs have increased more than expected primarily because of the increase in cost of earthwork and land valuation. Approximately 580 structures are within the project area and projected damage reduction value of the project based on a possible 100-year storm event is estimated at $130 million. The project is approaching the ten (10) year, total City obligation of $3,607,500.00 with an estimated 5 years remaining for completion and an additional expenditure of approximately $2,929,800 from the City consisting of $2,763,800 representing the 21.79% of the overall cost and $166,000 for the Flood Study and Drainage Master Plan within the City of Grand Island. Total City contribution would be $6,537,300. In order for continued support by the City on the flood control project for the Upper Prairie/Silver/Moores Creek an amendment to the original agreement resolution obligating funds toward this project as required. Such amendment will add an additional funding obligation to the City of $2,929,800, over an additional 5 year period. Such project total is estimated at $29,000,000 with projected completion in 2020. The schedule is contingent upon receiving sufficient funds from the State and that the Corps of Engineers finishes their remediation by the end of 2015. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Grand Island Council Session - 10/28/2014 Page 196 / 269 Recommendation City Administration recommends that the Council approve Amendment #1 to the Interlocal Agreement with Central Platte Natural Resources District, Hall County, and Merrick County for the Upper Prairie/Silver/Moores Creek Flood Control project. Sample Motion Move to approve. Grand Island Council Session - 10/28/2014 Page 197 / 269 Grand Island Council Session - 10/28/2014 Page 198 / 269 Grand Island Council Session - 10/28/2014 Page 199 / 269 Grand Island Council Session - 10/28/2014 Page 200 / 269 Grand Island Council Session - 10/28/2014 Page 201 / 269 Grand Island Council Session - 10/28/2014 Page 202 / 269 Grand Island Council Session - 10/28/2014 Page 203 / 269 Grand Island Council Session - 10/28/2014 Page 204 / 269 Grand Island Council Session - 10/28/2014 Page 205 / 269 Grand Island Council Session - 10/28/2014 Page 206 / 269 Grand Island Council Session - 10/28/2014 Page 207 / 269 Grand Island Council Session - 10/28/2014 Page 208 / 269 Grand Island Council Session - 10/28/2014 Page 209 / 269 Grand Island Council Session - 10/28/2014 Page 210 / 269 Grand Island Council Session - 10/28/2014 Page 211 / 269 Grand Island Council Session - 10/28/2014 Page 212 / 269 CHECK # DATE AMOUNT 116562 7/27/2005 7,009.12$                      123733 5/24/2006 36,086.28$                    123733 5/24/2006 1,774.72$                      126758 9/27/2006 73,864.35$                    129105 1/10/2007 97,349.91$                    130531 3/14/2007 22,738.18$                    132550 6/13/2007 94,462.36$                    132967 6/27/2007 58,537.30$                    134263 8/15/2007 72,284.26$                    135273 9/26/2007 88,087.71$                    135620 10/10/2007 46,040.57$                    136996 12/5/2007 63,545.03$                    137240 12/19/2007 67,453.82$                    137931 1/23/2008 61,530.17$                    138253 2/13/2008 38,119.77$                    139275 3/26/2008 70,506.40$                    139949 4/22/2008 65,986.66$                    143760 10/15/2008 76,528.19$                    143760 10/15/2008 58,129.90$                    143760 10/15/2008 16,407.06$                    144624 11/19/2008 64,716.73$                    145233 12/17/2008 13,360.08$                    146429 2/11/2009 50,076.86$                    147711 4/15/2009 69,496.98$                    148460 5/13/2009 26,284.20$                    151104 9/9/2009 123,029.44$                 151104 9/9/2009 57,841.44$                    151104 9/9/2009 57,942.42$                    151104 9/9/2009 104,253.92$                 151736 10/14/2009 117,393.67$                 151736 10/14/2009 49,048.72$                    152730 11/25/2009 56,161.99$                    153180 12/16/2009 62,864.51$                    153743 1/13/2010 40,168.94$                    154867 3/10/2010 83,115.95$                    155457 4/14/2010 63,030.61$                    156103 5/12/2010 54,140.43$                    156740 6/9/2010 44,472.32$                    158322 8/25/2010 16,298.87$                    158673 9/15/2010 18,304.95$                    159359 10/13/2010 43,763.48$                    160842 12/22/2010 49,497.30$                    161818 2/9/2011 19,855.54$                    167460 11/9/2011 9,213.23$                      169371 2/15/2012 4,004.24$                      173126 8/15/2012 8,894.07$                      174078 9/26/2012 142,473.39$                 175751 12/19/2012 10,737.66$                    176749 2/13/2013 16,024.06$                    178621 5/15/2013 27,020.24$                    180236 7/24/2013 58,320.12$                    181301 9/11/2013 90,485.18$                    181968 10/9/2013 31,579.77$                    192595 11/13/2013 262,001.63$                 184133 1/29/2014 32,403.56$                    5238 4/18/2014 108,599.26$                 5326 5/19/2014 6,529.00$                      5389 6/30/2014 39,355.35$                    5423 7/25/2014 5,658.75$                      5436 8/12/2014 54,275.54$                    5457 9/16/2014 3,318.75$                      5454 9/16/2014 58,298.63$                    5466 10/1/2014 7,560.00$                      5467 10/1/2014 71,228.10$                    3,449,541.64$             10/7/2014 CENTRAL PLATTE NATUAL RESOURCES DISTRICT #24 PRAIRIE/SILVER/MOORES CREEK PROJECT (NW FLOOD CONTROL) 40033520‐90016 Grand Island Council Session - 10/28/2014 Page 213 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-330 WHEREAS, on January 11, 2005, by Resolution No. 2005-15 the Grand Island City Council approved an Interlocal Agreement between the City, Central Platte Natural Resources District, Hall County and Merrick County for the Upper Prairie/Silver/Moores Flood Control Project; and WHEREAS, such resolution authorized City funding of 46.25% of the $7.8 million, or $360,750 each year for ten (10) years, for a total amount of $3,607,500.00; and WHEREAS, the project is approaching the ten (10) year, total City obligation of $3,607,500 with an estimated 5 years remaining for completion and an additional expenditure of $2,929,800 from the City. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Amendment #1 to the Interlocal Agreement between the City, Central Platte Natural Resources District, Hall County and Merrick County for Upper Prairie/Silver/Moores Flood Control Project is hereby approved. 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 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 214 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-16 #2014-331 - Approving Certificate of Final Completion for Handicap Ramp Project No. 2014-HC-1 Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 215 / 269 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:October 28, 2014 Subject:Approving Certificate of Final Completion for Handicap Ramp Project No. 2014-HC-1 Item #’s:G-16 Presenter(s):John Collins PE, Public Works Director Background Galvan Construction, Inc. of Grand Island, Nebraska was awarded a $191,064.50 contract for the above project on April 22, 2014. The contract was for the installation of handicap ramps at Knickrehm, Newell, and Wasmer Schools, as well as the 10th Street area & Louise Street area. The attached map shows the locations for this year’s work. Work commenced on April 24, 2014 and was completed on October 10, 2014. The project plans were prepared with estimated quantities at each curb ramp area. Any required changes are made in the field as the project is being built, dependent on the condition of the sidewalks and curb & gutter. Discussion The project was completed in accordance with the terms, conditions, and stipulations of the contract, plans and specifications. It was completed with an underrun of $6,478.95, for a total cost of $184,585.05. 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 - 10/28/2014 Page 216 / 269 Recommendation City Administration recommends that the Council approve the Certificate of Final Completion for Handicap Ramp Project No. 2014-HC-1. Sample Motion Move to approve the resolution. Grand Island Council Session - 10/28/2014 Page 217 / 269 ENGINEER’S CERTIFICATE OF FINAL COMPLETION Handicap Ramp Project No. 2014-HC-1 CITY OF GRAND ISLAND, NEBRASKA October 28, 2014 TO THE MEMBERS OF THE COUNCIL CITY OF GRAND ISLAND GRAND ISLAND, NEBRASKA This is to certify that Handicap Ramp Project No. 2014-HC-1 has been fully completed by Galvan Construction, Inc. of Grand Island, Nebraska under the contract dated April 22, 2014. The work has been completed in accordance with the terms, conditions, and stipulations of said contract and complies with the contract, the plans and specifications. The work is hereby accepted for the City of Grand Island, Nebraska, by me as Public Works Director in accordance with the provisions of Section 16-650 R.R.S., 1943. Handicap Ramp Project No. 2014-HC-1 Item No.Description Total Quantity Unit Unit Price Total Cost Bid Section A - Knickrehm School Area 1 Remove 4"-6" Sidewalk 1,276.50 s.f.$2.25 $2,872.13 2 Remove 24" Curb & Gutter 11.00 l.f.$6.00 $66.00 3 Remove 30" Curb & Gutter 20.00 l.f.$7.00 $140.00 4 Remove Integral Curb 290.30 l.f.$1.00 $290.30 5 Remove 6" Portland Cement Concrete 99.03 s.y.$25.00 $2,475.75 6 Saw Cut 296.30 l.f.$3.50 $1,037.05 7 Build 4" Sidewalk 1,299.70 s.f.$3.25 $4,224.03 8 Build 6" Portland Cement Concrete 26.60 s.y.$30.00 $798.00 9 Build 6" Integral Curb 35.10 l.f.$2.50 $87.75 10 Build 24" Curb & Gutter 5.00 l.f.$18.50 $92.50 11 Build 30" Curb & Gutter 279.90 l.f.$20.50 $5,737.95 12 Seed Area 0.00 s.y.$4.50 $0.00 13 Sod Area 166.67 s.y.$6.00 $1,000.02 14 Place Warning Plates 2x4 12.00 ea.$235.00 $2,820.00 15 Landscaping & Sprinkler Repair 1.00 l.s.$500.00 $500.00 16 Traffic Control 1.00 l.s.$500.00 $500.00 Total Bid Section A =$22,641.47 Bid Section B -Newell School Area 1 Remove 4"-6" Sidewalk 2285.06 s.f. $ 2.25 $ 5,141.39 2 Removel Integral Curb 492.50 l.f. $ 1.00 $ 492.50 3 Remove 6" Portland Cement Concrete 166.54 s.y. $ 25.00 $ 4,163.50 4 Saw Cut 442.00 l.f. $ 3.50 $ 1,547.00 5 Build 4" Sidewalk 2450.90 s.f. $ 3.25 $ 7,965.43 6 Build 6" Portland Cement Concrete 28.92 s.y. $ 30.00 $ 867.60 7 Build 30" Curb & Gutter 512.35 l.f. $ 20.50 $ 10,503.18 8 Adjust Stop Box 5.00 ea. $ 100.00 $ 500.00 9 Seed Area 0.00 s.y. $ 4.50 $ - 10 Sod Area 155.56 s.y. $ 6.00 $ 933.36 11 Place Warning Plates (2x4)21.00 ea. $ 235.00 $ 4,935.00 12 Landscaping & Sprinkler Repair 1.00 l.s. $ 500.00 $ 500.00 13 Traffic Control 1.00 l.s. $ 500.00 $ 500.00 Total Bid Section B =$38,048.95 Bid Section C - Wasmer School Area 1 Remove 4"-6" Sidewalk 2652.00 s.f. $ 2.25 $ 5,967.00 2 Remove 24" Curb & Gutter 416.10 l.f. $ 6.00 $ 2,496.60 3 Remove Integral Curb 162.90 l.f. $ 1.00 $ 162.90 4 Remove 6" Portland Cement Concrete 38.13 s.y. $ 25.00 $ 953.25 5 Remove 8" Portland Cement Concrete 0.00 s.y. $ 30.00 $ - Grand Island Council Session - 10/28/2014 Page 218 / 269 6 Remove Brick Sidewalk 325.30 s.f. $ 2.25 $ 731.93 7 Saw Cut 235.50 l.f. $ 3.50 $ 824.25 8 Build 4" Sidewalk 3191.35 s.f. $ 3.25 $ 10,371.89 9 Build 6" Porltand Cement Concrete 11.68 s.y. $ 30.00 $ 350.40 10 Build 8" Portland Cement Concrete 0.00 s.y. $ 35.00 $ - 11 Build 24" Curb & Gutter 561.75 l.f. $ 18.50 $ 10,392.38 12 Sod Area 266.67 s.y. $ 6.00 $ 1,600.02 13 Place Warning Plates (2x4)33.00 ea. $ 235.00 $ 7,755.00 14 Landscaping & Sprinkler Repair 1.00 l.s. $ 750.00 $ 750.00 15 Traffic Control 1.00 l.s. $ 750.00 $ 750.00 Total Bid Section C = $43,105.61 Bid Section D - 10th Street Area 1 Remove 4"-6" Sidewalk 3934.00 s.f. $ 2.25 $ 8,851.50 2 Remove 24" Curb & Gutter 298.00 l.f. $ 6.00 $ 1,788.00 3 Remove 30" Curb & Gutter 0.00 l.f. $ 7.00 $ - 4 Remove Integral Curb 534.70 l.f. $ 1.00 $ 534.70 5 Remove 6" Portland Cement Concrete 173.54 s.y. $ 25.00 $ 4,338.50 6 Remove Brick Sidewalk 379.60 s.f. $ 2.25 $ 854.10 7 Saw Cut 594.70 l.f. $ 3.50 $ 2,081.45 8 Build 4" Sidewalk 4943.50 s.f. $ 3.25 $ 16,066.38 9 Build 6" Portland Cement Concrete 64.43 s.y. $ 30.00 $ 1,932.90 10 Build 24" Curb & Gutter 541.35 l.f. $ 18.50 $ 10,014.98 11 Build 30" Curb & Gutter 236.40 l.f. $ 20.50 $ 4,846.20 12 Sod Area 266.67 s.y. $ 6.00 $ 1,600.02 13 Place Warning Plates (2x4)65.00 ea. $ 235.00 $ 15,275.00 14 Landscaping & Sprinkler Repair 1.00 l.s. $ 850.00 $ 850.00 15 Traffic Control 1.00 l.s. $ 850.00 $ 850.00 Total Bid Section C = $69,883.72 Bid Section E - Louise Street Area 1 Remove 4"-6" Sidewalk 780.4 s.f. $ 2.25 $ 1,755.90 2 Remove 20" Curb & Gutter 165.2 l.f. $ 5.50 $ 908.60 3 Remove Integral Curb 31.4 l.f. $ 1.00 $ 31.40 4 Remove 6" Portland Cement Concrete 9.28 s.y. $ 25.00 $ 232.00 5 Remove 8" Portland Cement Concrete 0 s.y. $ 30.00 $ - 6 Saw Cut 23.25 l.f. $ 3.50 $ 81.38 7 Build 4" Sidewalk 692.9 s.f. $ 3.25 $ 2,251.93 8 Build 6" Portland Cement Concrete 2.5 s.y. $ 30.00 $ 75.00 9 Build 8" Portland Cement Concrete 0 s.y. $ 35.00 $ - 10 Build 20" Curb & Gutter 177.9 l.f. $ 15.50 $ 2,757.45 11 Sod Area 111.11 s.y. $ 6.00 $ 666.66 12 Place Warning Plates (2x4)7.00 ea. $ 235.00 $ 1,645.00 13 Landscaping & Sprinkler Repair 1.00 l.s.$250.00 $ 250.00 14 Traffic Control 1.00 l.s.$250.00 $ 250.00 Total Bid Section C = $10,905.31 Grand Total =$184,585.05 I hereby recommend that the Engineer’s Certificate of Final Completion for Handicap Ramp Project No. 2014- HC-1 be approved. _______________________________________________________________________________ John Collins – City Engineer/Public Works Director Jay Vavricek – Mayor Grand Island Council Session - 10/28/2014 Page 219 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-331 WHEREAS, the City Engineering/Public Works Director for the City of Grand Island issued a Certificate of Final Completion for Project No. 2014-HC-1, installation of Handicap Ramps, certifying that Galvan Construction Co., of Grand Island, Nebraska, under contract, has completed the handicap ramp installation; and WHEREAS, the City Engineer/Public Works Director recommends the acceptance of the project; and WHEREAS, the Mayor concurs with the recommendation of the City Engineer/Public Works Director. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Certificate of Final Completion for Project No. 2014-HC-1, installation of handicap ramps, is hereby confirmed, for a total project cost of $184,585.05. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 220 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-17 #2014-332 - Approving Storm Water Management Plan Program Grant Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 10/28/2014 Page 221 / 269 Council Agenda Memo From:Terry Brown PE, Manager of Engineering Services Meeting:October 28, 2014 Subject:Approving Storm Water Management Plan Program Grant Item #’s:G-17 Presenter(s):John Collins PE, Public Works Director Background In 2004, the EPA expanded the “pollutant discharge” portion of the Clean Water Act of 1977 to include storm water runoff from all Nebraska communities with a population over 10,000. Subsequently, the City of Grand Island was designated as a National Pollutant Discharge Elimination System (NPDES) Phase II Storm Water Community in 2005. The City was issued a storm water permit for the time period of July 1, 2005 through December 31, 2010 by the Nebraska Department of Environmental Quality that includes a Storm Water Management Plan. During the 2011 year the City operated on an Administrative Extension, with a new 5 year permit cycle expected to be January 1, 2012 through December 31, 2017. As a result of the passage of LB1226 in the 2006 Nebraska Legislative Session, $2.5 million in funding was allocated for cities and counties with Storm Water permits to implement their local Storm Water Management Plans (SWMPs). Grant awards are distributed to applicants according to population size. The City has received funds from this storm water grant program each year since July 2007 for a total of $685,904.70 to date. FISCAL YEAR GRANT AMOUNT RECEIVED 2007 $93,807.00 2008 $93,806.70 2009 $94,849.00 2010 $92,849.00 2011 $88,659.00 2012 $73,978.00 2013 $73,978.00 2014 $73,978.00 TOTAL GRANT DOLLARS RECEIVED $685,904.70 Grand Island Council Session - 10/28/2014 Page 222 / 269 The past grant funds have been used for activities such as educating the public, developers/contractors of the requirements of the permit; storm sewer stenciling; dry weather inspections; municipal evaluations and facility run-off control planning; mapping of the storm sewer system; inspection of detention cells, and implementing Best Management Practices (BMP) at City owned facilities. Additionally, the grant funds have purchased a vehicle, GPS equipment, printer/plotter and various water sampling equipment. The funds from this grant will be used for additional mapping of the storm sewer system, finalizing and implementing the construction (erosion/sediment control) program, wet weather sampling and supporting education efforts through various media forms. Discussion The Storm Water Management Plan Program Intergovernmental Agreement, which provides $70,567.00 to the City to continue with this plan, is due Monday, December 1, 2014. A 20% match, or $14,113.00, for the project is required and will be provided by the Public Works Department through salaries. Grant work under this program must be completed by June 30, 2016. The City has seven (7) Minimum Control Measures (MCMs) that are identified in the storm water permit. Each MCM has a number of BMPs that are used to carry out the MCMs. An example BMP is marking curb inlets that remind the public not to dump in the inlet because it drains to a stream or river. Grant activities are restricted to the BMPs and seven (7) MCMs identified in the City storm water permit. The seven (7) MCMs are: 1.Education and Outreach 2.Public Involvement/Participation 3.Illicit Discharge Detection and Elimination 4.Construction Site Storm Water Runoff Control 5.Post-Construction Storm Water Management in new development and redevelopment 6.Pollution Prevention good housekeeping for municipal operations 7.Wet Weather Monitoring 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 - 10/28/2014 Page 223 / 269 Recommendation Public Works Administration recommends that the Council approve a resolution directing the Mayor to sign the Intergovernmental Agreement. Sample Motion Move to approve the resolution. Grand Island Council Session - 10/28/2014 Page 224 / 269 Grand Island Council Session - 10/28/2014 Page 225 / 269 Grand Island Council Session - 10/28/2014 Page 226 / 269 Grand Island Council Session - 10/28/2014 Page 227 / 269 Grand Island Council Session - 10/28/2014 Page 228 / 269 Grand Island Council Session - 10/28/2014 Page 229 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-332 WHEREAS, in 2005, the Environmental Protection Agency expanded the “pollutant discharge” portion of the Clean Water Act of 1977 to include storm water runoff from Nebraska communities with a population over 10,000; and WHEREAS, the City Of Grand Island was designated as a National Pollutant Discharge Elimination System (NPDES) Phase II Storm Water Community and was issued a storm water permit from the Nebraska Department of Environmental Quality; and WHEREAS, the City Of Grand Island has developed a Storm Water Management Plan (SWMP) in conformance with the storm water permit; and WHEREAS, the City Of Grand Island, Nebraska is an eligible unit of a general local government authorized to file an application through the Nebraska Department of Environmental Quality for a grant to implement the Storm Water Management Plans (SWMPs) to be used to implement the activities identified in the Sponsor’s NPDES Municipal Separate Storm Sewer System permit from the State of Nebraska; and WHERAS, the City is scheduled to receive $70,567.00 with the required twenty percent (20%) match for the project provided by the City of Grand Island, Public Works Department; and WHEREAS, the Nebraska Department of Environmental Quality will accept the signed agreement until Monday, December 1, 2014, with funds being awarded to the City upon execution and submission of the grant. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island, Nebraska, is hereby authorized to accept the funding from the Nebraska Department of Environmental Quality, for the Storm Water Management Plan Program Grant. BE IT FURTHER RESOLVED that the Mayor is hereby authorized and directed to execute such grant intergovernmental agreement and other documentation on behalf of the City Of Grand Island for such grant purposes. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 230 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item G-18 #2014-333 - Approving Authorization for the City to Participate in the Securities Exchange Commission’s Municipalities Continuing Disclosure Cooperation Initiative and Related Matters Staff Contact: Robert J. Sivick, City Attorney Grand Island Council Session - 10/28/2014 Page 231 / 269 Council Agenda Memo From:Robert J. Sivick, City Attorney Meeting:October 28, 2014 Subject:Approving Authorization for the City to Participate in the Securities Exchange Commission’s Municipalities Continuing Disclosure Cooperation Initiative and Related Matters Item #s:G-18 Presenter(s):Robert J. Sivick, City Attorney Background The Securities and Exchange Commission (SEC) is offering municipal issuers and other “obligated persons” (referred to collectively as issuers) the opportunity to self-report disclosure deficiencies in their official statements under the SEC’s Municipalities Continuing Disclosure Cooperation Initiative (the Initiative). The SEC Initiative also incentivized underwriters to self-report municipal bond issues which may have contained materially incorrect disclosures. The City of Grand Island’s underwriter, Ameritas Investment Corp., recently informed the City of Grand Island of their decision to self- report certain of the City’s bond issues to the SEC. Discussion The City must determine whether to participate in the Initiative before the expiration of the Initiative on December 1, 2014. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the Authorization for the City to participate in the Securities Exchange Commission’s Municipalities Continuing Disclosure Cooperative Initiative. 2.Postpone the issue to a future meeting. Grand Island Council Session - 10/28/2014 Page 232 / 269 3.Take no action. Recommendation Approve the Authorization for the City to participate in the Securities Exchange Commission’s Municipalities Continuing Disclosure Cooperative Initiative. Sample Motion Move to approve the Authorization for the City to participate in the Securities Exchange Commission’s Municipalities Continuing Disclosure Cooperative Initiative. Grand Island Council Session - 10/28/2014 Page 233 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-333 WHEREAS, the Municipalities Continuing Disclosure Cooperation Initiative (the “Initiative”) of the Securities and Exchange Commission (“Commission”) has been introduced for municipal issuers and underwriters, and the underwriter of the City has reported one or more of the City’s bond issues to the Commission pursuant to the Initiative; and WHEREAS, the City has evaluated the benefits and risks of participation in the Initiative and has determined that participation in the Initiative is appropriate for the City to reduce future risk and uncertainty; WHEREAS, the deadline for self-reporting to the SEC is December 1, 2014. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City Council hereby authorizes the City to participate in the Initiative under the terms of the Initiative, and further authorizes the Mayor to approve, finalize, execute and deliver for and on behalf of the City any and all documents, certificates and questionnaires necessary or appropriate for the City to participate in the Initiative including, without limitation, an agreement with the Commission under the terms set forth in the Initiative. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014 __________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 234 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item H-1 Consideration of Request from Third City Christian Church for a Conditional Use Permit for Temporary Parking Lot Extension located at 4100 West 13th Street This item relates to the aforementioned Public Hearing item E-2. Staff Contact: Craig Lewis Grand Island Council Session - 10/28/2014 Page 235 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item I-1 #2014-334 - Consideration of Request from Arts and Drafts LLC dba Arts and Drafts, 214 & 216 North Locust Street for a Class “I” Liquor License and Liquor Manager Designation for Jill Canfield, 1623 West 1st Street This item relates to the aforementioned Public Hearing item E-1. Staff Contact: RaNae Edwards Grand Island Council Session - 10/28/2014 Page 236 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-334 WHEREAS, an application was filed by Arts and Drafts, LLC doing business as Arts and Drafts, 214 & 216 North Locust Street for a Class "I" Liquor License; and WHEREAS, a public hearing notice was published in the Grand Island Independent as required by state law on October 18, 2014; such publication cost being $16.77; and WHEREAS, a public hearing was held on October 28, 2014 for the purpose of discussing such liquor license application. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: ____The City of Grand Island hereby recommends approval of the above- identified liquor license application contingent upon final inspections. ____The City of Grand Island hereby makes no recommendation as to the above-identified liquor license application. ____The City of Grand Island hereby makes no recommendation as to the above-identified liquor license application with the following stipulations: __________________________________________________________ ____The City of Grand Island hereby recommends denial of the above- identified liquor license application for the following reasons:_________ __________________________________________________________ ____The City of Grand Island hereby recommends approval of Jill Canfield, 1623 West 1st Street as liquor manager of such business contingent upon completing a state approved alcohol server/seller program. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 237 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item I-2 #2014-335 - Consideration of Approving Contract with Life Line Billings Systems, LLC for Emergency Medical Services and Fire Department Billing Services Staff Contact: Cory Schmidt, Fire Chief Grand Island Council Session - 10/28/2014 Page 238 / 269 Council Agenda Memo From:Cory Schmidt, Fire Chief Meeting:October 28, 2014 Subject:Approving Contract with Life Line Billings Systems, LLC for Ambulance and Fire Department Billing Services Item #’s:I-2 Presenter(s):William Clingman, Senior Accountant Russ Blackburn, EMS Division Chief Background Currently the City of Grand Island Finance Department staff processes the billing of all ambulance department services. This requires staff time equivalent of 1.5 FTEs in the Finance Department. A request for proposals (RFP) was sent out in August of this year in search of an Ambulance and Fire Department billing service provider. The City received three responses and the selection committee invited two for in-depth demonstrations. The recommendation the selection committee is bringing forward is a contract with Life Line Billing Systems, LLC, doing business as LifeQuest Services. Discussion With recent changes in the healthcare industry requiring continued training of city staff to understand the constant changes of rules and regulations surrounding ambulance billing, a third party vendor will be able to bring efficiency as well as expertise in Emergency Management Services billing and collections of insurance submission. LifeQuest Services has the expertise that is required and the ability to keep up to date on the ever changing environment of healthcare billing and insurance submission. The charge for the billing services that LifeQuest will perform for the City is 6% of net fees collected on behalf of the City Of Grand Island. For the 2014 fiscal year this would have equated to approximately $72,000 in fees. In reviewing the LifeQuest proposal, we believe the City will reduce the 1.5 FTE staff time spent on ambulance billing to .5 FTE or less. Grand Island Council Session - 10/28/2014 Page 239 / 269 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 approves the proposed contract with Life Line Billing Systems, LLC. Sample Motion Move to approve the contract with Life Line Billing Systems, LLC for ambulance and fire department billing services. Grand Island Council Session - 10/28/2014 Page 240 / 269 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today REQUEST FOR PROPOSAL FOR EMERGENCY MEDICAL SERVICES AND FIRE DEPARTMENT BILLING RFP DUE DATE:August 20, 2014 at 4:00 p.m. DEPARTMENT:Fire PUBLICATION DATE:July 31, 2013 NO. POTENTIAL BIDDERS: SUMMARY OF PROPOSALS RECEIVED Midwest Medical Transport Co.EMS Billing Services, Inc. Columbus, NE Omaha, NE LifeQuest Services Wautoma, WI cc:Cory Schmidt, Fire Chief Russ Blackburn, EMS Division Chief Mary Lou Brown, City Administrator Jaye Monter, Finance Director Billy Clingman, Sr. Accountant P1756 Grand Island Council Session - 10/28/2014 Page 241 / 269 Page 1 of 12 (Revised 10-09-2014) LIFE LINE BILLING SYSTEMS, LLC. SERVICE AGREEMENT This SERVICE AGREEMENT (“Agreement”) is entered into this first (1st) day of December, 2014, (“Effective Date”) by and between the City of Grand Island, a municipality duly organized and existing under the laws of the State of Nebraska, whose notice address is 100 E. First St, PO Box 1968, Grand Island, Nebraska 68802 (“Service Provider”) and Life Line Billing Systems, LLC., d/b/a LifeQuest Services, a limited liability company duly organized and existing under the laws of the state of Delaware, whose notice address is N2930 State Road 22, Wautoma, Wisconsin 54982 (“Agency”) (Service Provider and Agency are generically referred to herein as “Party” and/or “Parties”). Article 1 Recitals 1.1 Service Provider Operations. Service Provider is engaged in the business of providing emergency medical services and is desires to receive Services from Agency. 1.2 Agency Operations. Agency is engaged in the business of providing a customized billing, payment collecting and data management system and desires to provide billing, payment collecting and data management services for Service Provider. 1.3 Consideration. In consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties hereby agree to the terms of this Agreement. 1.4 Definitions. Words with initial capital letters that are not proper names are either defined within the text of this Agreement or specifically as follows: “Breach” shall mean the failure by one Party to perform any obligation set forth in this Agreement having an effect on the other Party. (A "Material Breach” of contract is a breach that strikes so deeply at the heart of the contract that it renders the agreement "irreparably broken" and defeats the purpose of making the contract in the first place.) “Default Accounts” means Patient Accounts that are delinquent and considered in default by the Service Provider - the collection of which is by a third party and must be performed in accordance with the Fair Debt Collection Practices Act. “Healthcare Accounts” means any Patient Accounts that are provided by a Service Provider that is regulated by the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) requiring additional obligations, warranties and covenants by the Parties that are referenced in this Agreement and within the incorporated and attached Exhibit B-2 and Exhibit B-3. “Patient Accounts” means the accounts receivable that result from a patient’s receipt of ambulance and/or rescue services and include accounts not in default and in default. 1.5 Account Status. Agency provides billing services for Service Provider on Patient Accounts that are not in default and other services as provided in this Agreement. Grand Island Council Session - 10/28/2014 Page 242 / 269 Billing for Grand Island, NE Page 2 of 12 (Revised 10-09-2014) Article 2 Services Agency shall supply the customized billing and data management services for Patient Accounts to the Service Provider as detailed in this Article (“Services”). 2.1. Facility Management. Agency shall supply reports and do the billing through its employees as further detailed in Exhibit A-1 attached hereto and incorporated by reference. 2.2. Insurance Processing. Agency shall process insurance claims generated by the appropriate carriers of patients, who have provided the necessary information for insurance filings. 2.3. Inquiries. Agency shall handle and respond to all inquiries concerning the Patient Accounts by patients, insurance companies and Service Provider. Service Provider shall assist Agency with any inquiries related to the services provided by the Service Provider. Agency shall provide a toll-free telephone number for patient and Service Provider inquiries. 2.4. Software. Agency shall implement software upgrades as required by changes in the law and/or national insurance standards. 2.5. Reports. Agency shall create and review monthly reports for the internal analysis of factors affecting the collecting performance of the Patient Accounts and present the information to the Service Provider upon the detection of any means available to improve the efficiency of collecting those accounts. Article 3 Obligations of Service Provider 3.1. Pre-Screening. Service Provider shall be responsible for the accuracy of the original data regarding the Patient Accounts delivered to the Agency as further detailed in Exhibit B-1 attached hereto and incorporated by reference. 3.2. Validity of Accounts. Service Provider represents and warrants to Agency that all Patient Account debts are valid, legally enforceable debts, and in compliance with any corresponding state or federal law (“Laws and Regulations”). Upon request by the Agency, Service Provider shall provide specific assurance of validity in accordance with the Laws and Regulations. 3.3. Notification Requirements. Service Provider must immediately notify Agency in writing of its actual, constructive or reasonably conceived knowledge of any of the following events: (i) any patient of Service Provider files bankruptcy, is represented by an attorney or has submitted a dispute(s) regarding any Patient Account to the Service Provider or is the subject of a complaint or a cease and desist notification by debtor during the time in which Agency is providing Services to the Patient Account (collectively referred to as “Consumer Actions”) and (ii) Service Provider receives any direct or indirect payment on a Patient Account or a returned check on any such payment during the time in which Agency is providing Services to the Service Provider. 3.4. Service Provider Representations. Service Provider represents and agrees that: (i) the Patient Accounts are in “Default,” if and when Agency has completed performance its billing services; (ii) if the date of Default is not specifically defined in the contract between the Service Provider and the Consumer, the Service Provider can, and if legally necessary, will provide evidence to show the Patient Account is in Default; (iii) there have been no Consumer Actions pertaining to any Patient Account that was received or known by Service Provider prior Grand Island Council Session - 10/28/2014 Page 243 / 269 Billing for Grand Island, NE Page 3 of 12 (Revised 10-09-2014) to the Patient Account’s placement with Agency; (iv) Service Provider has not placed any Patient Accounts in violation of the state law of the state in which the recipient of the ambulance and rescue service resides; (v) Service Provider will not request Agency to add any fees to any Patient Accounts, unless specifically authorized in the contract between the Service Provider and the recipient of the service or allowed by the state law where the patient resides; (vi) Service Provider has obtained all the necessary consents to contact the patient at the contact information provided by Service Provider to Agency and (vii) Service Provider shall provide Agency with information which is necessary for Agency to perform its obligations under this Agreement (collectively referred to as “Representations”). 3.5. Ceasing collections. Service Provider has the right to cease billing/collection of any Patient Account upon Agency’s receipt of written Notice from Service Provider. Article 4 Term 4.1. Initial Term. The term of this Agreement shall commence on the Effective Date and shall continue for a period of thirty-six (36) months (“Initial Term”). 4.2. Renewal. Upon the expiration of the Initial Term and unless otherwise Terminated, this Agreement shall be automatically extended and consecutively renewed for twelve (12) month terms (each shall be generically referred to herein as “Subsequent Term(s)”) (the Initial Term and Subsequent Term(s) shall be jointly referred to as “Term”). 4.3. Termination. This Agreement shall terminate as provided in this section (“Termination”). The date of termination is defined within each subsection (“Termination Date”). 4.3.1. Written Notice. Any Party May terminate this Agreement at the end of a Term by giving written Notice to the other Parties at least thirty (30) days prior to the end of such Term. The Termination Date shall be the last day of such Term. 4.3.2. Discontinuance of Business. This Agreement shall terminate in the event the Agency discontinues the operation of its business. The Termination Date shall be the last day of the month in which Agency ceases operations. 4.3.3. Breach of Contract. A nonbreaching Party (“Nonbreaching Party”) may immediately terminate this Agreement upon the allegedly breaching Party’s (“Breaching Party”) failure to cure the Breach within thirty (30) days of receipt of Nonbreaching Party’s written Notice of the Breach, and having a material effect on the Nonbreaching Party that has been sufficiently set forth by the Nonbreaching Party and received in writing by the Breaching Party. The Termination Date shall be thirty (30) days from the Breaching Party’s receipt of the written Notice of the Breach. 4.3.4. Failure of Performance. Except in the event of a Material Breach, the failure by either Party to perform any of their obligations hereunder shall not be deemed a breach of this Agreement unless the Party gives the Party failing to perform written Notice of such failure to perform. 4.4. Effect of Termination. The Parties agree that upon Termination of this Agreement for any reason, Agency shall be entitled to receive any accrued but unpaid Fees through the Termination Date and the rights and obligations of Section 4.5 and Articles 6-8 pertaining to confidentiality shall survive Termination and continue in full force and effect. Grand Island Council Session - 10/28/2014 Page 244 / 269 Billing for Grand Island, NE Page 4 of 12 (Revised 10-09-2014) 4.5. Additional Services. Service Provider agrees to pay Agency at a rate of Forty- five and no/100 Dollars ($45.00) per hour in Payment Terms for any Services rendered after the Termination Date with the approval in writing by the Service Provider thereby agreeing to any additional services for Agency to be compensated under this provision. Article 5 Fees 5.1 Fees. Service Provider shall pay Agency the fees set forth in this Article (“Fees”). 5.1.1. Initial Fee. Service Provider shall pay a non-refundable, one time setup fee of Zero Dollars ($0.00) to the Agency upon execution of this Agreement. 5.1.2. Billing Contingency Fees. 6.0% of the Patient Accounts collected in phase one as further detailed in Exhibit A-1 attached hereto (“Billing Procedures”). 5.1.3. Phase Two. 22.0% of the Patient Accounts collected in Phase Two as further detailed in Exhibit A-2 attached hereto (“Phase Two”). 5.1.4. Phase Three. 34.0% of the Patient Accounts collected in Phase Three as further detailed in Exhibit A-2 attached hereto and incorporated by reference (“Phase Three”). (Phase Two and Three are Optional and will be activated only upon a separate document with written approval of the Client.) 5.2. Payment of Fees. Service Provider and Agency agree to manage the payment of Fees in accordance with the provisions of this section. 5.2.1. Payments. Agency shall provide monthly payments from the Checking and/or Trust Account to the Service Provider. 5.2.2. Payment Procedure. Agency shall remit to Service Provider a statement of fees monthly. Service Provider shall remit to Agency payment of said fees after approval by City Council of said claim. City Council typically meets on the second and fourth Tuesday of each month. Agency fees shall be paid no later than five (5) days after approval by Council. Payments made after the due date shall be subject to a late charge of twelve percent (12%) per annum or the highest rate allowed by applicable law. Claims by Agency for said fees must be submitted to Service Provider no later than seven (7) days prior to scheduled Council meetings. United States Federally recognized holidays shall extend all due dates above by one (1) day. Service Provider acknowledges that its failure to authorize Fees to the Agency by the Due Date constitutes a breach of this Agreement. Service Provider grants Agency a lien on the Checking and/or Trust Account until the Fee is received by Agency. In addition, Service Provider shall be responsible for all costs of collection, including reasonable attorney’s fees incurred in enforcing this Section (“Payment Terms”). 5.2.3. Electronic Funds Transfer. When a check is used by Service Provider for Agency’s payment, the Service Provider authorizes Agency to either use information from any check received by Agency to make a one-time EFT from the applicable account or to process the payment as a check transaction. When Agency uses an EFT, funds may be withdrawn from the applicable account as soon as the same day Agency receives payment and Service Provider will not receive a cancelled check back from its financial institution. Article 6 Confidential Information Grand Island Council Session - 10/28/2014 Page 245 / 269 Billing for Grand Island, NE Page 5 of 12 (Revised 10-09-2014) The Service Provider hereby acknowledges that it shall have access to Agency’s Confidential Information. Service Provider acknowledges that Agency’s obligations under this Agreement are expressly contingent on Service Provider’s compliance with this article. Service Provider expressly recognizes that: (i) the efficacy and profitability of Agency’s business is dependent in part upon Service Provider’s protection of Agency’s Confidential Information; (ii) Service Provider may already possess Confidential Information which Agency desires to protect and (iii) in receiving Services, Service Provider may be provided access to and/or gain knowledge of Agency’s Confidential Information as defined below. 6.1. Nondisclosure. To ensure the continued confidentiality of the Confidential Information, Service Provider shall not, during the Term of this Agreement or for a period of twenty-four (24) months after Termination of this Agreement, disclose to or use, for any other person or entity, directly or indirectly, any of Agency’s Confidential Information, except as such disclosure or use is expressly authorized by Agency in writing, as permitted by law or is reasonably required in connection with performance of this Agreement. 6.2. Property. All Confidential Information and all Agency’s files, reports, materials, records, documents, notes, memoranda and other items and any originals or copies thereof, which Service Provider either is provided, prepares, uses or simply acquires during the Term of this Agreement (“Property”) are, and shall remain, the sole and exclusive property of the Agency and shall not be removed from Agency’s and Service Provider’s premises or disclosed to any other party without the prior written consent of Agency. 6.3. Confidential Information. As used herein, the term “Confidential Information” means any and all information relating directly or indirectly to Agency that is not generally ascertainable from public or published information or trade sources including, without limitation, all information concerning copyrighted materials, patented materials, contracts, forms, research, product information, services and pricing of services, patient data and any information protected by any state or federal privacy laws or regulations, which is or was disclosed to Service Provider, or known by Service Provider as a consequence of or through Service Provider’s relationship with Agency. 6.4. Remedies. In the event of a breach of any covenant in this article, it is understood and agreed that Agency shall be entitled to injunctive relief, as well as all applicable remedies at law or in equity, available to Agency against the Service Provider and any such breach shall be a Material Breach. 6.5. Return of Confidential Information. Service Provider agrees, immediately upon the Termination of this Agreement, to make a diligent search for any and all Property and return to Agency or destroy the information as directed prior to, or upon, the Termination of this Agreement. 6.6. Applicable Law. The Parties shall comply with all applicable laws, including, without limitation, HIPAA and the additional requirements for any Healthcare Accounts as further detailed in Exhibit B-2 and Exhibit B-3 attached hereto and incorporated by reference. 6.7. Indemnification Regarding Open Records. Agency understands that the Service Provider must comply with public records laws, and the Agency may from time to time be the custodian of Service Provider’s records subject to disclosure. Agency agrees to provide Service Provider with any public records it requests that do not fall under the protection of the HIPAA within seven (7) days after the Service Provider requests the same in writing. Article 7 Grand Island Council Session - 10/28/2014 Page 246 / 269 Billing for Grand Island, NE Page 6 of 12 (Revised 10-09-2014) Indemnification 7.1 Agency Indemnification. Service Provider shall indemnify and hold the Agency and assigns harmless from and against any actions, causes of action, claims, demands, damages, costs, loss of services, expenses, compensation and attorney’s fees incurred or suffered as a result of the Service Provider’s breach of any provision of this Agreement whether by negligent or intentional means causing an incident where recovery is sought including, but not limited to, actions arising out of the failure of the Service Provider to fully, completely, accurately and adequately report, for purposes of the Agency's collection attempt of a Customer Account. It is understood and agreed that this acknowledgment is given as a full release of liability to the Agency. 7.2 Service Provider Indemnification. Agency shall indemnify and hold the Service Provider and assigns harmless from and against any actions, causes of actions, claims, demands, damages, costs, loss of services, expenses, compensation and attorney’s fees incurred or suffered as a result of the Agency’s breach of any provision of this Agreement whether by negligent or intentional means. It is understood and agreed that this acknowledgment is given as a full release of liability to the Service Provider. Article 8 Miscellaneous Provisions 8.1. Exclusivity. Service Provider hereby acknowledges the Agency is the exclusive provider of the Services specified herein to the Service Provider. 8.2. Assignment. Either Party may freely assign this Agreement upon the nonassigning Party’s failure to provide the written rejection, not to be unreasonably withheld by nonassigning Party, within thirty (30) days of its receipt of written Notice of assignment from the assigning Party. 8.3. Severability. If a court finds any provision of this Agreement invalid or unenforceable, the Parties agree that the maximum period or scope legally permissible under such circumstances will be substituted for the period or scope stated herein. 8.4. Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska without giving any effect to any choice or conflict provision of law that would cause the application of the laws of any jurisdiction other than the State of Nebraska. 8.5. Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if given: (i) in writing and personally delivered; (ii) sent by certified mail, postage prepaid, to the address set forth in the introductory paragraph or other notice address as designated in writing between the Parties prior to delivery and shall be effective and duly delivered on the day of personal or courier delivery; (iii) via electronic mail to an electronic mail address as designated in writing between the Parties prior to delivery and shall be effective and duly delivered upon the sending Party’s confirmation of receiving Party’s receipt of electronic notice or (iv) via electronic facsimile transmission to the name, address and facsimile number of the receiving Party as designated in writing between the Parties prior to delivery and shall be effective and duly delivered upon the sending Party’s receipt of confirmation (“Notice”). 8.6. Waiver. The waiver of one Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any subsequent breach. 8.7. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto, their respective heirs, representatives, successors and assigns. Grand Island Council Session - 10/28/2014 Page 247 / 269 Billing for Grand Island, NE Page 7 of 12 (Revised 10-09-2014) 8.8. Entire Agreement. This Agreement and any Exhibits or Addendums attached hereto shall be deemed to express, embody and supersede all previous understandings, agreements and commitments, whether written or oral, between the Parties hereto with respect to the subject matter hereof and to fully and finally set forth the entire agreement between the Parties hereto. No modifications shall be binding unless stated in writing and signed by all Parties hereto. 8.9. Counterparts. This Agreement may be signed in one or more counterparts but all of which taken together shall constitute one instrument. 8.10. Attorney Fees. In any proceeding to enforce the terms of this Agreement, each Party shall be responsible for their own attorney’s fees, unless otherwise stated in this Agreement, or if an action brought forth is deemed frivolous by a court of law, in which case the Party bringing the frivolous action shall be responsible for any attorney’s fees incurred. 8.11. Construction. The Parties and their respective counsel have had the opportunity to review and revise this Agreement. The Parties acknowledge that the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement. 8.12. Incorporation of Recitals and Introductory Statements. The Parties hereto acknowledge that the recitals and all introductory statements are true and correct and incorporated by reference. 8.13. Electronic Signatures. Facsimile and electronic signatures in PDF form shall be considered original signatures for the purpose of enforcing this Agreement. IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the Effective Date. Agency: Life Line Billing Systems, LLC., d/b/a LifeQuest Services a Delaware limited liability company _________________________________ By: Michael J. Finn Its: CEO Date:. Service Provider: City of Grand Island, a Nebraska municipality ____________________________________ By: Jay Varicek Its: Mayor Date:. Grand Island Council Session - 10/28/2014 Page 248 / 269 Billing for Grand Island, NE Page 8 of 12 (Revised 10-09-2014) EXHIBIT A-1 BILLING PROCEDURES All billing services on Patient Accounts will be in the name of Service Provider. Initial Billing Patient receives initial billing for services that were provided. In addition, Patient’s primary insurance company is billed. With Patients who are participating in a Medicaid Program, Medicaid will be billed directly. If Medicaid Patient has primary commercial insurance coverage, that company will be billed first and Medicaid will act as a secondary carrier. Medicaid and Medicaid HMO Patients will not receive a bill if required by state law, unless appropriate waivers are allowed and obtained and signed by the Patient or other authorized person. On the back of the initial bill there is information provided to Patients which explains the billing process and reimbursement opportunities. The Patient will typically be billed within seven days of receipt of all the necessary billing documentation and information. For the convenience of the Patient transported by your service there is an invoice and a return envelope for sending the payment with all billings. Second Billing The Patient will receive a second bill normally within thirty (30) days after the first bill was sent. Agency utilizes a scheduling procedure that places bills into specific cycles, which will ensure the submission of regularly scheduled billings. Once the Patient’s primary insurance has paid, any secondary insurance will be submitted for consideration for any unpaid balances. Third Billing Normally at this point, Medicare, Medicaid, and private insurance companies will have paid the maximum amounts eligible for the Patient. This invoice is sent normally within sixty (60) days after the initial billing has been forwarded. A note is also applied to this bill which reminds them of their responsibilities for payment. Note: Any resubmissions that would be necessary due to lack of information or incorrect information would be resubmitted upon receiving the proper information at any stage of billing. Collected Patient Fees Checking Account. Agency shall make regular deposits of all payments received into a checking account established for the Service Provider by the Agency for the depositing of Fees collected on behalf of the Service Provider and to provide regularly scheduled payments to Service Provider and Fees to the Agency. The Agency will also manage and oversee all business activities related to the checking account and the posting of payments to proper Patient Accounts. Agency shall have the authority to manage the Checking Account, including without limitation stopping payments on refund checks or revenue checks that have not been cashed within a reasonable period of time. Service Provider further agrees to execute any such documents at each banking institution necessary to authorize the rights granted to Agency herein. Grand Island Council Session - 10/28/2014 Page 249 / 269 Billing for Grand Island, NE Page 9 of 12 (Revised 10-09-2014) EXHIBIT B-1 DOCUMENTATION PROCEDURES 1. EVERY PATIENT must have the Insurance/Medicare Authorization form signed at the hospital by the patient or patient’s representative. 2. EVERY Medicare or Medicaid patient that is transported from hospital to hospital or hospital to nursing home/residence must have a Physicians Certification Statement for transport completed by a doctor BEFORE the transport unless there is an acute emergency. 3. Agency does not bill for WAITING TIME for Medicare patients. Rather, the patient is billed for two separate runs. 4. Run Forms: A. All documents must be written legibly. B. The patient’s name, address, phone number and Social Security number need to be documented if at all possible. C. Record location of patient pick-up and transport destination. D. Record all appropriate dispatch information. (Nature of Call) E. Record all patient past history related to this emergency/non-emergency. F. Record all patient complaints related to this emergency/non-emergency. G. Complete a detail narrative indicating the medical necessity for transport. H. Record patient’s date of birth. I. Record admitting/receiving doctor’s name (first & last). J. Obtain a copy of the hospital top/face sheet from the Emergency Department admit. K. Obtain all available insurance information, including complete hospital admit form - copies of insurance cards are very helpful. L. Record the responsible party for all patients. M. Record all times accurately. N. Record loaded mileage to the nearest tenth of a mile (i.e. 11.2 mi). O. Record crew names, crew license levels and any specialty areas of expertise which are relevant to the patient care being provided. P. Have all crew members review the form for accuracy and completeness before leaving receiving facility. Q. Complete disposables billing, procedure and crew record form. R. Service Provider shall keep copies of all information provided to the Agent. S. Record reasons why transport by other means was contraindicated. T. Record reasons why the level of service was required, i.e. ALS assessment. U. Record patient condition at the time of transport including chief complaint. V. Record zip code at point of pickup. W. Obtain necessary Medicare and Medicaid waivers where appropriate, signed by patient or other appropriate person. *PCS and/or ABN Grand Island Council Session - 10/28/2014 Page 250 / 269 Billing for Grand Island, NE Page 10 of 12 (Revised 10-09-2014) EXHIBIT B-2 Healthcare Account Provisions These provisions provide additional terms not included in the Agreement that apply to any Healthcare Accounts placed by Service Provider. 1.Healthcare Account Laws. Health Insurance Portability and Accountability Act (HIPAA) and the Electronic Transaction, Security and Privacy Standards (“Standards”) promulgated by the Department of Health and Human Services and set forth in 45 C.F.R. Parts 142, 160, 162 and 164; as well as HIPAA governing privacy of certain information (“HIPAA Privacy Rule”) or the security of certain information (“HIPAA Security Rule”) (collectively the “HIPAA Rules”) (HIPAA, Standards and HIPAA Rules collectively the “Healthcare Account Laws”). 2.Healthcare assurances. Agency, for the purpose of the Healthcare Accounts: (i) is a “Business Associate” under HIPAA and (ii) will perform the Services within the limits of the Healthcare Account Laws. 3.“Services” for Healthcare Accounts also specifically include: (i) the determination of eligibility or coverage, including coordination of benefits or the determination of cost sharing amounts, and subrogation of health benefit claims; (ii) obtaining payment under a contract for reinsurance and related health care data processing; and (iii) review of health care services with respect to coverage under a health plan or justification of charges. 4.Return of accounts. Service Provider must accept, without penalty to Agency, any Healthcare Account that Agency believes or has reason to believe is subject to restrictions on the use or disclosure of Protected Health Information (PHI), as defined in 45 C.F.R. § 160.103. 5.Notification requirements. Service Provider must immediately notify Agency in writing of its actual or reasonably conceived knowledge of any restrictions placed on the use of Agency, along with sufficient detail to allow Agency to honor such restrictions. 6.Service Provider representations. Service Provider “Representations” also include (i) Service Provider has and shall obtain all necessary consents under 45 C.F.R. § 164.506 (c) for all Healthcare Accounts, sufficient to permit the disclosure of PHI to Agency and to permit Agency to perform services incidental to this Agreement; (ii) that the uses and disclosures of the PHI of Healthcare Accounts are consistent and in accordance with the Service Provider’s privacy policies and procedures adopted pursuant to the Standards, HIPAA and any other Applicable Laws and (iii) all uses and disclosures of the Healthcare Account information specified in this Agreement are made and authorized as part of treatment, payment and healthcare operations relating to Service Provider. 7.Special confidentiality considerations for Healthcare Accounts. The confidentiality considerations contained in this section apply to Healthcare Accounts only. a.Agency is not prohibited by confidentiality from sending the patient or the responsible party a copy of the bill issued by Service Provider or using a copy of the bill issued by Service Provider as evidence in a court proceeding. b. To the extent the Services provided to Service Provider by Agency may cause Agency to be defined as a “Business Associate” of Service Provider under the HIPAA Rules, and the Service Provider in its capacity as a “Covered Entity” as defined in the HIPAA Privacy Rule is required to comply with the HIPAA Privacy Rule or the HIPAA Security Rule, Agency shall: i.not use or further disclose PHI, other than as permitted or required by this Agreement or as required by law, further provided that in any case, such use or disclosure would not constitute a violation of the HIPAA Privacy Rule if done by Service Provider; Grand Island Council Session - 10/28/2014 Page 251 / 269 Billing for Grand Island, NE Page 11 of 12 (Revised 10-09-2014) ii.other than as provided for in this Agreement, use appropriate administrative, physical and technical safeguards to prevent use or disclosure of PHI, and to reasonably and appropriately protect the confidentiality, integrity and availability of the electronic PHI that Agency creates, maintains or transmits on behalf of Agency, and provide Service Provider with any requested information regarding such safeguards; iii. be obligated to provide information, to make corrections or amendments to information, to respond to the written instruction or request of Service Provider; and deliver information and documentation to Service Provider as directed, in writing, by Service Provider; iv. promptly report to Service Provider any use or disclosure of PHI by Agency, its officers, directors, employees, agents and subcontractors and, to the extent known by Agency, report to Service Provider any use or disclosure by such persons not authorized by this Agreement and the remedial action taken by Agency with respect to such use or disclosure and provide such information to Service Provider upon written request of Service Provider, which request shall be made only in connection with an accounting request made to Service Provider under the then applicable HIPAA Standards; v.information regarding any unauthorized use or disclosure of PHI shall be maintained by Agency for a period of not less than six (6) years from the date of such unauthorized use or disclosures; vi.report to Service Provider any PHI not provided to Agency by Service Provider that Agency becomes aware; vii. ensure that any agents of Agency, including a subcontractor, to whom Agency provides PHI that is received from, or created or received by Agency on behalf of Service Provider, agrees to the same restrictions and conditions set forth in this section that apply to Agency with respect to such PHI; viii. to the extent applicable to Agency, promptly make available PHI in the Designated Record Set (as defined in 45 C.F.R. § 164.501) in accordance with 45 C.F.R. § 164.524; ix. to the extent applicable to Agency, promptly make available PHI in the Designated Record Set for amendment and incorporate any amendments to PHI as requested by Service Provider in accordance with 45 C.F.R. § 164.526; x. to the extent applicable to Agency, promptly make available information required for Service Provider to provide an accounting of disclosure in accordance with 45 C.F.R. § 164.528; xi. use and disclose the information for the proper management and administration of Agency and to carry out the legal responsibilities of FAC, including, but not limited to its duties under the FDCPA and as otherwise provided in this Agreement; xii. mitigate, to the extent practicable, any harmful effect that is known to Agency, of a use or disclosure of PHI by the Agency in violation of this Agreement; xiii. shall provide Service Provider with copies of any subcontractor or agent contracts upon written request throughout the Term; xiv. make PHI available to Service Provider and to the individual who has a right of access as required under HIPAA within thirty (30) days of the request; xv.make Agency’s internal practices, books, and records related to the use and disclosure of PHI received from, or created or received by Agency on behalf of Service Provider available to the Secretary of Health and Human Services for purposes of determining Service Provider’s compliance with the Health and Human Services Department Standards Grand Island Council Session - 10/28/2014 Page 252 / 269 Billing for Grand Island, NE Page 12 of 12 (Revised 10-09-2014) for Individually Identifiable Health Information, 45 C.F.R. Parts 142, 160, 162 and 164; and xvi. within thirty (30) calendar days of termination of this Agreement, if feasible, return all PHI received from, or created or received by FAC, its agents and subcontractors on behalf of Service Provider that is maintained in any form, or, if such return is not feasible, extend the protections of this section to the PHI retained by Service Provider and limit further uses and disclosure of PHI to those purposes that make the return or destruction of the PHI infeasible. 8.Reimbursement. Service Provider shall reimburse Agency for reasonable costs and expenses that it incurs to search, restore, compile, photocopy or otherwise reproduce and deliver information, data or documents pertaining to Services provided under this Agreement whether requested by Service Provider, its agents and representatives, the patient for whom healthcare services were provided, the responsible party on the Healthcare Account, the Department of Health and Human Services or any other person or entity entitled to such information by operation of law or contract when and as approved prior to incurring of charges by Service Provider. Grand Island Council Session - 10/28/2014 Page 253 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-335 WHEREAS, the City of Grand Island advertised a request for proposal for Ambulance and Fire Department Billing Services; and WHEREAS, the City received and reviewed proposals from vendors; and WHEREAS, Life Line Billing Systems, LLC is the vendor recommended to provide ambulance and Fire Department billing services; and WHEREAS, Life Line Billing Systems, LLC will charge the City Of Grand Island a fee of 6% of net cash collected. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, to approve the contract with Life Line Billing Systems, LLC. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 254 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item I-3 #2014-336 - Consideration of Approving Designated Depositories and City Treasurer Authorizations Staff Contact: Jaye Monter, Finance Director Grand Island Council Session - 10/28/2014 Page 255 / 269 Council Agenda Memo From:Jaye Monter, Finance Director Meeting:October 28, 2014 Subject:Approving Designated Depositories and City Treasurer Authorizations Item #s:I-3 Presenter(s):William Clingman, Senior Accountant Background Dependent upon City Council approval, the Finance Department in cooperation with the Fire/Ambulance Department will be moving to a third party vendor to process ambulance billings and collections. With this approval, it will be necessary to update the comprehensive list of depositories adding one bank to the approved list. Discussion The document adds Hometown Bank of Wisconsin to the approved depository list. The addition of this bank is needed to facilitate the EMS and Fire billing services performed by Life Line Billing Systems, LLC, doing business as LifeQuest Services. An account will be opened up in the name of the City Of Grand Island that LifeQuest will utilize to manage all payments and refunds related to the billing services. Any balance, over the minimum necessary, in the Hometown Bank account will be regularly transferred to the City’s local bank account. The list as included in the Resolution is comprehensive. The change is included in paragraph number 1 of the resolution; there were no changes to any of the remaining paragraphs. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the Resolution as presented. 2.Postpone the issue to a future meeting. 3.Take no action. Grand Island Council Session - 10/28/2014 Page 256 / 269 Recommendation City Administration recommends that the Council approve the changes to the depository institutions. Sample Motion Move to approve the designated depositories. Grand Island Council Session - 10/28/2014 Page 257 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-336 WHEREAS, in Section 16-712, R.R.S. 1943, the city treasurer shall deposit, and at all times keep on deposit, for safekeeping, in banks or capital stock financial institutions of approved and responsible standing all money collected, received or held by him/her as city treasurer; and WHEREAS, in Section 16-713, R.R.S.1943, the city treasurer may purchase certificates of deposit from and make time deposits in banks or capital stock financial institutions selected as depositories of city funds; and WHEREAS, in Section 16-714, R.R.S. 1943, for the security of the fund so deposited, the city treasurer shall require each depository to give bond for the safekeeping and payment of such deposits and the accretions thereof, which bond shall run to the city and be approved by the mayor. WHEREAS, in Section 16-715, R.R.S. 1943, In lieu of the bond required by section 16-714, any bank, capital stock financial institution, or qualifying mutual financial institution making application to become a depository may give security as provided in the Public Funds Deposit Security Act to the city clerk. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that 1.Wells Fargo Bank, N.A.; Great Western Bank; USbank, Union Bank and Trust Co.; Nebraska Public Agency Investment Trust (NPAIT); Smith Hayes Financial Services Corporation; ICMA Retirement Corp.; A.G. Edwards & Sons, Inc.; Ameritas Investment Corp.; Home Federal/Grand Island; The Equitable Building and Loan Association; First National Bank of Omaha; Five Points; Bank of New York Mellon; Cornerstone Bank; Exchange Bank; Bank of the West; Heritage Bank; and Hometown Bank of Wisconsin be and hereby are, designated and approved as depositories for all money collected, received or held by the City of Grand Island, Nebraska. 2.The Finance Director or his/her designee, in his/her official capacity of the office, is directed and authorized to deposit such funds in said banks and capital stock financial institutions. 3.This authorization shall include the deposits of public funds in the hands of the Finance Director or his/her designee belonging to the City of Grand Island, Nebraska; the Tri-City Task Force; and the Grand Island Community Redevelopment Authority (CRA). 4.The Finance Director or his/her designee is hereby authorized to purchase certificates of deposit, treasury notes, treasury bills, treasury bond Grand Island Council Session - 10/28/2014 Page 258 / 269 - 2 - and or strips from the above named banks and capital stock financial institutions selected as depositories. 5.The Finance Director or his/her designee is hereby authorized by the mayor to require the depositories designated by this resolution to give security for the safekeeping and payment of City deposits and the accretion thereof, such security to be in the form and amounts as required by Nebraska statute and the Public Funds Deposit Security Act. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 259 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item I-4 #2014-337 - Consideration of Approving Amendment to Finance Personnel FTE Budget Allocation Staff Contact: Jaye Monter, Finance Director Grand Island Council Session - 10/28/2014 Page 260 / 269 Council Agenda Memo From:Jaye Monter, Finance Director Meeting:October 28, 2014 Subject:Approving Amendment to Finance Personnel FTE Budget Allocation Item #’s:I-4 Presenter(s):Billy Clingman, Senior Accountant Background Dependent upon City Council approval, the Finance Department in cooperation with the Fire/Ambulance Department will be moving to a third party vendor to process ambulance billings and collections. Currently the finance department utilizes 1.5 FTEs to process all ambulance billings and collections. Discussion In conjunction with a recent retirement and the intent to transfer daily ambulance billing and collections to the Council approved third party vendor, the workload of the accounting clerks and other staff involved in ambulance billings and collections will significantly be reduced. Therefore, the Finance Department is asking Council to eliminate one full-time accounting clerk position currently vacant. This position along with benefits is budgeted at $73,000 in the 2014-2015 Finance Department personnel allocation. 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 - 10/28/2014 Page 261 / 269 Recommendation City Administration recommends that the Council approve this amendment to the Finance Personnel 2014-2015 FTE Budget Allocation with a decrease of 1.00 accounting clerk FTE. Sample Motion Move to approve this amendment to the Finance Personnel 2014-2015 FTE Budget Allocation with a decrease of a 1.00 FTE. Grand Island Council Session - 10/28/2014 Page 262 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-337 WHEREAS, the City of Grand Island Finance Department and Fire/Ambulance Departments have an opportunity to transfer all ambulance billings and collections to a third party vendor; and WHEREAS, upon City Council approval of a third party vendor to process ambulance billings and collections, the Finance Department will be able to reduce the workload of accounting clerks and other staff involved in these daily processes; and WHEREAS, in conjunction with a recent retirement, there is no need to replace the accounting clerk position budgeted at $73,000 for fiscal year 2014-2015: and WHEREAS, an amendment to the Finance Personnel FTE Budget Allocation is necessary to allow for the decrease a 1.00 FTE. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that amending the Finance Personnel FTE Budget Allocation with a decrease of a 1.00 FTE for fiscal year 2014-2015 is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 10/28/2014 Page 263 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item I-5 #2014-338 - Consideration of Amendment to the Redevelopment Plan for CRA Area 9 located at 2228 N. Webb Road known as Northwest Commons or the former “Grand Island Mall” This item relates to the aforementioned Public Hearing item E-6. Staff Contact: Chad Nabity Grand Island Council Session - 10/28/2014 Page 264 / 269 Approved as to Form ¤ ___________ October 24, 2014 ¤ City Attorney R E S O L U T I O N 2014-338 RESOLUTION OF THE CITY OF GRAND ISLAND, NEBRASKA, APPROVING AN AMENDMENT TO A REDEVELOPMENT PLAN FOR THE CITY AND AGREEING TO A REDEVELOPMENT CONTRACT AND THE PLEDGE OF TAXES WITH RESPECT TO A REDEVELOPMENT PROJECT IN A REDEVELOPMENT AREA FOR THE BENEFIT OF THE CITY OF GRAND ISLAND (NORTHWEST COMMONS PROJECT) WHEREAS, the City of Grand Island, Nebraska, a municipal corporation and city of the first class, has determined it be desirable to undertake and carry out urban redevelopment projects in areas of the City which are determined to be substandard and blighted and in need of redevelopment; and WHEREAS, the Nebraska Community Development Law, Chapter 18, Article 21, Nebraska Reissue Revised Statutes, as amended (the "Act"), prescribes the requirements and procedures for the planning and implementation of redevelopment projects; and WHEREAS, the City has previously declared Redevelopment Area No. 9 described on Exhibit A of the City (the “Redevelopment Area”) to be substandard and blighted and in need of redevelopment pursuant to the Act; and WHEREAS, on August 26, 2014, following consideration of the recommendations of the Community Redevelopment Authority of the City of Grand Island, Nebraska (the “Authority”) to the Planning Commission, the recommendations of the Planning Commission to the City, and following the public hearing with respect to Site Specific Redevelopment Plan, Grand Island CRA Area 9 (the “Redevelopment Plan”), the City approved the Redevelopment Plan for the Redevelopment Area pursuant to Resolution # 2014-254. WHEREAS, the Authority has prepared an Amended and Restated Redevelopment Plan pursuant to Section 18-2111 of the Act, which includes a proposal for the designation of an enhanced employment area, described on Exhibit B (the “Enhanced Employment Area”), in the form attached as Exhibit C (the “Amended Redevelopment Plan”), and recommended the Amended Redevelopment Plan to the Planning Commission of the City; and WHEREAS, the Planning Commission of the City reviewed the Amended Redevelopment Plan pursuant to the Act and submitted its recommendations, to the City, pursuant to Section 18-2114 of the Act; and WHEREAS, there has been presented to the City by the Authority for approval a specific Redevelopment Project within the Amended Redevelopment Plan and as authorized in the Amended Redevelopment Plan, as described on the attached Exhibit D (“Redevelopment Project”); and WHEREAS, the City published notices of a public hearing and mailed notices as required pursuant to Section 18-2115 of the Act and has, on the date of the Resolution held a public hearing on the proposal to amend and restate the Redevelopment Plan to include the Redevelopment Project and the proposed enhanced employment area described above. Grand Island Council Session - 10/28/2014 Page 265 / 269 - 2 - Grand Island Mall – 2228 N Webb Rd NOW, THEREFORE, be it resolved by the City Council of the City of Grand Island, Nebraska: 1.The Amended Redevelopment Plan of the City for the area described on the attached Exhibit A, including the Enhanced Employment Area described on the attached Exhibit B and the Redevelopment Project legally described on the attached Exhibit D, is hereby determined to be feasible and in conformity with the general plan for the development of the City of Grand Island as a whole and the Amended Redevelopment Plan, including the Enhanced Employment Area and the Redevelopment Project identified on the attached Exhibit D, is in conformity with the legislative declarations and determinations set forth in the Act; and it is hereby found and determined that (a) the redevelopment project in the plan would not be economically feasible without the use of tax-increment financing, (b) the redevelopment project would not occur in the community redevelopment area without the use of tax-increment financing, and (c) the costs and benefits of the Redevelopment Project, including costs and benefits to other affected political subdivisions, the economy of the community, and the demand for public and private services have been analyzed by the City and have been found to be in the long-term best interest of the community impacted by the Redevelopment Project. The City acknowledges receipt of notice of intent to enter into the Redevelopment Contract in accordance with Section 18-2119 of the Act and of the recommendations of the Authority and the Planning Commission with respect to the Redevelopment Contract. 2.Approval of the Amended Redevelopment Plan is hereby ratified and reaffirmed, as amended by this Resolution, and the Authority is hereby directed to implement the Amended Redevelopment Plan in accordance with the Act. 3.The form and substance of the Redevelopment Contract as set forth for on the attached Exhibit D is hereby approved and affirmed, and the Mayor and Clerk are hereby authorized and directed to execute such documents and take such actions as are necessary to carry out this Resolution, including, but not limited to, entering into a Redevelopment Contract with the Authority and a redeveloper in substantially the form as set forth in Exhibit D. 4.Pursuant to Section 18-2147 of the Act, ad valorem taxes levied upon real property in the Redevelopment Project included or authorized in the Amended Redevelopment Plan which is described above shall be divided, for a period not to exceed 15 years after the effective date of this provision, which effective date shall be January 1, 2016 as follows: a.That proportion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the Redevelopment Project Valuation (as defined in the Act) shall be paid into the funds of each such public body in the same proportion as all other taxes collected by or for the bodies; and b.That proportion of the ad valorem tax on real property in the Redevelopment Project in excess of such amount, if any, shall be allocated to, is pledged to, and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by, whether funded, refunded, Grand Island Council Session - 10/28/2014 Page 266 / 269 - 3 - Grand Island Mall – 2228 N Webb Rd assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, such Redevelopment Project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such Redevelopment Project shall be paid into the funds of the respective public bodies. c.The Mayor and City Clerk are authorized and directed to execute and file with the Treasurer and Assessor of Hall County, Nebraska, an Allocation Agreement and Notice of Pledge of Taxes with respect to each Redevelopment Project. 5.The City hereby finds and determines that the proposed land uses and building requirements in the Redevelopment Area are designed with the general purposes of accomplishing, in accordance with the general plan for development of the City, a coordinated, adjusted and harmonious development of the City and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity; and the general welfare, as well as efficiency and economy in the process of development; including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of a healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreation and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of unsanitary or unsafe dwelling accommodations, or conditions of blight. 6.Any resolution passed and approved prior to the passage and approval of this Resolution which is in conflict with the terms and provisions of this Resolution is repealed to the extent of such conflict. This Resolution shall take effect and be in force and effect from and after is passage and approval as required by law. The provisions of this Resolution are separable, and invalidity of any phrase, clause, or part of this Resolution shall not affect the validity or effectiveness of the remainder of this Resolution. - - - Adopted by the City Council of the City of Grand Island, Nebraska, October 28, 2014. _______________________________________ Jay Vavricek, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk EXHIBIT “A” Grand Island Council Session - 10/28/2014 Page 267 / 269 - 4 - Grand Island Mall – 2228 N Webb Rd REDEVELOPMENT AREA Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of the Grand Island Mall Fifteenth Subdivision in the City of Grand Island, Hall County, Nebraska. EXHIBIT “B” ENHANCED EMPLOYMENT AREA A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and containing 16.428 acres more or less, EXCEPTING THEREFROM A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand Island, Hall County, Nebraska, and more particularly described as follows: Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres more or less. EXHIBIT “C” AMENDED REDEVELOPMENT PLAN EXHIBIT “D” REDEVELOPMENT CONTRACT Grand Island Council Session - 10/28/2014 Page 268 / 269 City of Grand Island Tuesday, October 28, 2014 Council Session Item J-1 Approving Payment of Claims for the Period of October 15, 2014 through October 28, 2014 The Claims for the period of October 15, 2014 through October 28, 2014 for a total amount of $3,749,072.14. A MOTION is in order. Staff Contact: Jaye Monter Grand Island Council Session - 10/28/2014 Page 269 / 269