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09-22-2015 City Council Regular Meeting Packet City of Grand Island Tuesday, September 22, 2015 Council Session Packet City Council: Linna Dee Donaldson Michelle Fitzke Chuck Haase Julie Hehnke Jeremy Jones Vaughn Minton Mitchell Nickerson Mike Paulick Roger Steele Mark Stelk Mayor: Jeremy L. Jensen City Administrator: Marlan Ferguson City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East 1st Street Grand Island Council Session - 9/22/2015 Page 1 / 287 City of Grand Island Tuesday, September 22, 2015 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 John Hayes, Grace Baptist Church, 1115 South Vine 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 - 9/22/2015 Page 2 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item D-1 #2015-BE-8 - Consideration of Determining Benefits for Water Main District 414T - Starlite Subdivision Lots 1 & 2 Council action will take place under Resolutions item I-3. Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 3 / 287 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:September 22, 2015 Subject:Water Main District 414T – State Street Presenter(s):Timothy Luchsinger, Utilities Director Background Water Main District 414T was built in 1994 within State Street, between North Road and Diers Avenue. The work was done in order to provide municipal water service to the area as it began to be developed. The district was done as a connection fee (tap) district which is the City’s standard method of installing mains in undeveloped areas. Customers are not charged for the cost of the main until they “tap” the main for service. Upon completion of the construction work, the Council sits as a Board of Equalization to establish the fees for each property within the district’s boundary. The BOE for Water Main District 414T was held on November 28, 1994. At that time, the majority of the properties in the district consisted of large tracts of land that were rural in nature. Subdivided developments were only in the planning stages. One of those tracts of land has recently been subdivided and the individual lots need to have the appropriate connection fees re-established. Discussion At the time Water Main District 414T was completed, a tract of farm land within the district was owned by Susan D. Drummond, ETAL, being located adjacent to the south side of State Street in part of the SE ¼, SW ¼ Section 12-11-10. The original connection fee to the Drummond tract was $34,534.78. This was based on 1,243.17 feet of front footage and connection fee of $27.7796 per foot. That tract has recently been subdivided as Starlite Subdivision consisting of two lots and a new public street. It is recommended the connection fee be proportionally split between the current two lots with a new connection fee of $29.29805 per front foot. Grand Island Council Session - 9/22/2015 Page 4 / 287 Description Frontage Fee Lot 1, Starlight Subdivision 588.00 ft.$17,227.25 Lot 2, Starlite Subdivision 590.74 ft.$17,307.53 TOTAL $34,534.78 Attached for reference are: -Water Main District 414T’s boundary plat -Resolution 94-BE-006 indicating the district original connection fees -Starlight Subdivision plat 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 It is recommended that the Council sit as a Board of Equalization and establish the connection fees for the two properties within the newly subdivided district. Sample Motion Move to sit as a Board of Equalization to establish the connection fees for the properties within Water Main District 414T. Grand Island Council Session - 9/22/2015 Page 5 / 287 Grand IslandCouncil Session - 9/22/2015Page 6 / 287 Grand Island Council Session - 9/22/2015 Page 7 / 287 Grand Island Council Session - 9/22/2015 Page 8 / 287 Grand Island Council Session - 9/22/2015 Page 9 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-BE-8 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, sitting as a Board of Equalization for Water Main District 414T, Lots 1 & 2 Starlite Subdivision, after due notice having been given thereof, that we find and adjudge: That the benefits accruing to the real estate in such district to be the total sum of $34,534.78; and Such benefits are equal and uniform; and According to the area of the respective lots, tracts, and real estate within such Water Main District No. 414T such benefits are the sums set opposite the several descriptions as follows: Name Parcel No.Description Connection Fee HC of Grand Island, LLC, a NE Limited Liability Co. 11717 Burt Street Suite 102 Omaha NE 68154 400149967 Lot 1, Starlite Subdivision $17,227.25 HC of Grand Island, LLC, a NE Limited Liability Co. 11717 Burt Street Suite 102 Omaha NE 68154 400149968 Lot 2, Starlite Subdivision $17,307.53 TOTAL All Connection Fees $34,534.78 BE IT FURTHER RESOLVED that the special benefits as determined by this resolution shall not be levied as special assessments, but shall be certified by this resolution to the Register of Deeds, Hall County, Nebraska, pursuant to Section 16-6,103,R.R.S. 1943. A connection fee in the amount of the above benefit accruing to Lot 1 and Lot 2, Starlite Subdivision, in the district shall be paid to the City of Grand Island at the time such property becomes connected to the water main. No property benefited as determined by this resolution shall be connected to the water main until the connection fee is paid. The connection fees collected shall be paid into the fund from which construction costs were made to replenish such fund for the construction costs. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. ____________________________ Jeremy L. Jensen, Mayor Attest: _____________________________ Grand Island Council Session - 9/22/2015 Page 10 / 287 - 2 - RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 11 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item D-2 #2015-BE-9 - Consideration of Determining Benefits and Levy Special Assessments for Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks Council action will take place under Ordinances item F-2. Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 12 / 287 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:September 22, 2015 Subject:Consideration of Determining Benefits and Levy Special Assessments for Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks Presenter(s):John Collins PE, Public Works Director Background The Certificate of Final Completion for Webb Road Street Improvement District No. 1260; South Webb Road extending north from Stolley Park Road to Union Pacific Railroad tracks was approved by City Council on August 25, 2015, via Resolution No. 2015-227; with September 22, 2015 set as the date for Council to sit as the Board of Equalization. The Diamond Engineering Company of Grand Island, Nebraska was hired to perform such work in the amount of $1,361,451.80. Work was completed at a price of $1,326,048.24; with additional costs of $285,655.01, all detailed below. Original Bid $ 1,361,451.80 Change Order No. 1 $ 13,057.00 Underruns $ (48,460.56) Sub Total (Construction Price) = $ 1,326,048.24 Additional Costs: Public Works Engineering - (Design Engineering)$ 99,500.00 Olsson Associates - (Construction Engineering)$ 123,942.03 The Grand Island Independent - (advertising)$ 124.34 Cornerstone Bank - (Project Bond Interest)$ 7,146.77 Hall County Register of Deeds - (filing fees)$ 56.00 City of Grand Island – (water main lowering)$ 2,922.47 Rinker Materials & Ronald J. Vlach – (easements)$ 11,838.00 Quality Signs – (detour signs)$ 560.00 Rinker Materials – (storage slab)$ 39,565.40 Sub Total of Additional Costs = $ 285,655.01 TOTAL COST = $ 1,611,703.25 Grand Island Council Session - 9/22/2015 Page 13 / 287 The difference of the total project cost of $1,611,703.25 and the assessable amount of $1,513,175.50, is the credit given to property owners for existing street right-of-way, as detailed below. 2nd Street Right-of-Way credit $19,193.71 Lester Street Right-of-Way credit $12,795.82 Bachman Street Right-of-Way credit $12,795.82 South Street Right-of-Way credit $53,742.40 Total Street Right-of-Way credit $98,527.75 All work has been completed and special assessments have been calculated for the improvements. Nebraska Revised Statute Section 16-622 states, "The cost of making such improvements of the streets and alleys within any street improvement district shall be assessed upon the lots and lands in such district specially benefited therby in proportion to such benefits." Paving Assessment Districts are either petitioned by property owner(s) or ordered via an Ordinance by City Council Although each district must be reviewed individually, the same basic principles are generally used in each case. The assessable area, or district boundary, is usually established by including all property which extends back from the improved street half way to the next parallel street. 300 feet as the maximum limit for this distance. Improvements due to street widths over 37 feet for residential streets and 41 feet commercial streets are not assessed to property owners Replacement costs for existing paving are not included in assessment costs Nebraska Revised Statute Section 16-633 states, "If, in any city of the first class, there shall be any real estate belonging to any county, school district, city, municipal or other quasi-municipal corporation abutting upon the street, avenue or alley whereon paving or other special improvements have been ordered, it shall be the duty of the county board, board of education or other proper officers to pay such special taxes". In looking back at the history of paving assessments since 2001, City owned assessed property has been paid for out of the Capital Improvements Fund. Grand Island Council Session - 9/22/2015 Page 14 / 287 Discussion The costs for this project will be assessed to the adjacent property. The payments are spread over ten (10) years at 7% simple interest. The first payment of principle only at 1/10th of the assessment is due 10 days after filing of the ordinance that levies the costs as approved at the Board of Equalization. The City has had multiple correspondences with the property owners and sent a reminder letter advising them that the BOE is scheduled for September 22, 2015 and the first payment will be due shortly after. The final assessment for each lot is listed in both the Resolution and Ordinance for this item. 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 meet as the Board of Equalization to determine benefits and pass an ordinance to levy Special Assessments to the individual properties. Sample Motion (Sample Motion for the Board of Equalization) Move to approve the resolution establishing benefits for Webb Road Street Improvement District No. 1260; South Webb Road extending north from Stolley Park Road to Union Pacific Railroad tracks (Sample Motion for the Ordinance) Move to approve the ordinance levying the assessments for Webb Road Street Improvement District No. 1260; South Webb Road extending north from Stolley Park Road to Union Pacific Railroad tracks. Grand Island Council Session - 9/22/2015 Page 15 / 287 Grand Island Council Session - 9/22/2015 Page 16 / 287 Grand Island Council Session - 9/22/2015 Page 17 / 287 Grand Island Council Session - 9/22/2015 Page 18 / 287 Grand Island Council Session - 9/22/2015 Page 19 / 287 Grand Island Council Session - 9/22/2015 Page 20 / 287 Grand Island Council Session - 9/22/2015 Page 21 / 287 Grand Island Council Session - 9/22/2015 Page 22 / 287 Grand Island Council Session - 9/22/2015 Page 23 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-BE-9 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, sitting as a Board of Equalization for Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks, after due notice having been given thereof, that we find and adjudge: That total project cost is $1,611,703.25, with benefits accruing to the real estate in such district to be the total sum of $1,513,175.50; and Such benefits are based on Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks at the adjacent property; and According to the actual cost of Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks adjacent to the respective lots, tracts, and real estate within such paving district area, such benefits are the sums set opposite the description as follows: Parcel No.Owner Legal Description Assessmen t by Frontage 400150638 City of G I Lot 1, Highway 281 Estates $ 389,952.30 400150441 Mead Building Centers of Grand Island Lot 2, Highway 281 Estates $ 140,753.91 400150654 Dinsy, LLC Lot 1, Dinsdale Subdivision $ 19,193.71 400150646 Dinsy, LLC Lot 2, Dinsdale Subdivision $ 255,340.38 400150433 Judy D Hansen / Julie D Johnson Miscellaneous Tracts 24-11-10 PT SE ¼ 3.90 Acr $ 3,134.97 400146630 KPT, Inc. Miscellaneous Tracts 20-11-9 PT NW ¼ SW ¼ & PT Sec 19-11-9 .98 Acr $ 26,302.43 400013533 Dobesh Land Leveling, LLC Lot 8, Bachman & Lester Subdivision $ 40,889.01 400013460 Dobesh Land Leveling, LLC All of Lots 6 & 7 & Part of Lot 8, Bachman & Lester Subdivision $ 8,374.86 400013487 1321 Webb Road, LLC % Axis Capital, Inc.Lot 9, Bachman & Lester Subdivision $ 54,443.61 400013495 Dobesh Land Leveling, LLC All of Lot 10 & Part of Lots 11 & 12, Bachman & Lester Subdivision $ 1,857.95 400095475 1321 Webb Road, LLC % Axis Capital, Inc.Lot 1, Stoltenberg Subdivision $ 54,499.91 400013525 James A & Carol J Stauss Lot 19, Bachman & Lester Subdivision $ 1,801.65 400013576 Island Indoor Climate, LLC W 159’ N ½ of Lot 20, Bachman & Lester Subdivision $ 22,674.17 400013541 Robert & Mary L Brenton E 72’ N ½ of Lot 20, Bachman & Lester Subdivision $ 2,098.51 400013568 Mary L Brenton S ½ of Lot 20, Bachman & Lester Subdivision $ 25,392.00 400013606 Lyman-Richey Corporation Lot 25, Bachman & Lester Subdivision $ 49,235.72 400013517 Lyman-Richey Corporation Lot 2, Wilson Concrete Subdivision $ 3,285.97 400492277 City of Grand Island Part of the North Portion, Grand Island City Cemetery Addition $ 413,944.44 $ 1,513,175.50 Grand Island Council Session - 9/22/2015 Page 24 / 287 - 2 - - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 25 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item E-1 Public Hearing on Acquisition of Utility Easement - 1203 S. Stuhr Road - Midland Ag Service, Inc. Council action will take place under Consent Agenda item G-9. Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 9/22/2015 Page 26 / 287 Council Agenda Memo From:Tim Luchsinger, Utilities Director Meeting:September 22, 2015 Subject:Acquisition of Utility Easement – 1203 S. Stuhr Road – Midland Ag Service, Inc. 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 Midland Ag Service, Inc., located through a part of the West Half (W ½) of Section Twenty Three (23), Township Eleven (11) North, Range Nine (9) West of the 6th P.M., in Hall County, Nebraska (1203 S. Stuhr Road), in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers. Discussion Verizon Wireless has recently constructed a new cell tower and equipment building located east of the Stuhr Road – Fonner Park Road intersection. In order to serve their facilities, the Utilities Department needs to acquire an easement for operation, maintenance, and access of primary underground power lines, a pad-mount transformer, and related electrical appurtenances. 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 - 9/22/2015 Page 27 / 287 Grand Island Council Session - 9/22/2015 Page 28 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item E-2 Public Hearing on Acquisition of Utility Easement - 1911 Diers Avenue - Fugate Council action will take place under Consent Agenda item G-10. Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 9/22/2015 Page 29 / 287 Council Agenda Memo From:Tim Luchsinger, Utilities Director Meeting:September 22, 2015 Subject:Acquisition of Utility Easement – 1911 N. Diers Avenue – Fugate 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 J. Larry Fugate as Trustee of the J. Larry Fugate Revocable Trust, located through a part of Lot Three (3) Menard Subdivision, in the City of Grand Island, Hall County, Nebraska (1911 Diers Avenue), in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers. Discussion The Taco Bell restaurant located at the northeast corner of State Street and Diers Avenue is being completely rebuilt. In order to serve the new facilities, the Utilities Department needs to acquire an easement for operation, maintenance, and access of primary underground power lines, a pad-mount transformer, and related electrical appurtenances. 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 - 9/22/2015 Page 30 / 287 Grand Island Council Session - 9/22/2015 Page 31 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item E-3 Public Hearing on Request to Rezone Property located at 2228 North Webb Road from CD Commercial Development to Amended CD Commercial Development (Grand Island Joint Venture, LLC) Council action will take place under Ordinance item F-1. Staff Contact: Chad Nabity Grand Island Council Session - 9/22/2015 Page 32 / 287 Council Agenda Memo From:Regional Planning Commission Meeting:September 22, 2015 Subject:Request to Rezone Properties from CD Commercial Development to Amended Commercial Development Zone Presenter(s):Chad Nabity AICP, Regional Planning Director Background The Development Plan for Grand Island Mall 17th Subdivision was approved by the Grand Island City Council in January of 2015. The Developers are requesting changes to the plan as approved to accommodate marketing opportunities and enhance the appearance of this property from the U.S. Highway 281 side. This proposed development would create 1 additional lot within the development and move 1 lot from the Webb Road side the main building to the U.S. Highway 281 side of the main building. The CD Zone allows for up to 50% of the property to be covered with buildings. The proposed coverage within this development at full development as shown is well below the maximum coverage. A copy of the Planning Director’s recommendation to the Planning Commission is also attached for review by Council. Discussion At the regular meeting of the Regional Planning Commission held September 2, 2015 the above item was considered following a public hearing. O’Neill opened the Public Hearing. Nabity explained the rezone request. O’Neill closed the Public Hearing. A motion was made by Haskins and to approve the rezone, motion was seconded by Bredthauer to approve the Rezone from CD – Commercial Development Zone to Amended CD – Commercial Development Zone. Grand Island Council Session - 9/22/2015 Page 33 / 287 A roll call vote was taken and the motion passed with 9 members present and voting in favor (O’Neill, Ruge, Haskins, Robb, Maurer, Connick, Huismann, Bredthauer and Connelly) and no one voting against. This is a Commercial Development Zone and if the rezoning is approved the final plat for Grand Island Mall Eighteenth Subdivision should also be approved Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the rezoning request as presented 2.Modify the rezoning request to meet the wishes of the Council 3.Postpone the issue Recommendation City Administration recommends that the Council approve the proposed changes as recommended. Sample Motion Move to approve the ordinance and development plan as presented. Grand Island Council Session - 9/22/2015 Page 34 / 287 Agenda Item 4 PLANNING DIRECTOR RECOMMENDATION TO REGIONAL PLANNING COMMISSION: August 25, 2015 SUBJECT:Concerning change of zoning for property described as all of Grand Island Mall 18th Subdivision in Grand Island NE, from CD Commercial Development Zone to Amended CD Commercial Development Zone. (C-24- 2015GI) The Development Plan for Grand Island Mall 17 th Subdivision was approved by the Grand Island City Council in January of 2015. The Developers are requesting changes to the plan as approved to accommodate marketing opportunities and enhance the appearance of this property from the U.S. Highway 281 side. Development Plan as Approved in January 2015 Grand Island Council Session - 9/22/2015 Page 35 / 287 Proposed Development Plan as submitted August 2015 PROPOSAL:This proposed development would create 2 additional lots within the development on the west side of the existing building and eliminate one lot that was previously approved for the east side of the building. The space on the east side of the development would be used for parking. No new access drives are being requested or would be approved with this plan. The CD Zone allows for up to 50% of the property to be covered with buildings. The proposed coverage within this development at full development as shown is well below the maximum coverage. OVERVIEW: Site Analysis Current zoning designation:CD-Commercial Development Zone. Permitted and conditional uses:Commercial, Office and Retail Uses Comprehensive Plan Designation: Commercial development Existing land uses.Retail development and vacant property Adjacent Properties Analysis Current zoning designations:South and East CD Commercial Development Zone Grand Island Council Session - 9/22/2015 Page 36 / 287 North: B1- Light Business West: B2 General Business Permitted and conditional uses:CD – Commercial, office and retail uses as permitted and built according to the approve development plan. B2- Commercial, office, retail and service uses along with residential uses up to a density of 43 units per acre. B1 limited commercial, office, and interior retail to support the immediate neighborhood and residential uses up to a density of 43 units per acre. Comprehensive Plan Designation:North, South, East and West: Designated for commercial development and uses. Existing land uses:North: Gordman Property Retail Development East: Webb Road, Taco Johns, Burger King, Strip Commercial West: U.S. Highway 281 and Commercial Uses South: Shopko, and Northwest Crossings Commercial Development EVALUATION: Positive Implications: Consistent with the City’s Comprehensive Land Use Plan: The subject property is designated for commercial development. Is infill development. This development is using property that is within the existing functional and legal boundaries of the City of Grand Island. This is a piece of property that is in need of redevelopment. The City and the Community Redevelopment Authority have already approved the use of Tax Increment Financing to further this project. Accessible to Existing Municipal Infrastructure: Water and sewer services are available to service the area. Monetary Benefit to Applicant: Would allow the applicant to further develop this site. More visually appealing development along 281: The proposed plan would put buildings between 281 and the west side of the main mail building. This would hide the back of the building and create a more visually appealing drive along this stretch of 281. Negative Implications: None foreseen Grand Island Council Session - 9/22/2015 Page 37 / 287 Other Considerations Commercial development zones allow up to 50% of the property within the CD zone to be covered with buildings. RECOMMENDATION: That the Regional Planning Commission recommend that the Grand Island City Council approve the amended CD zoning district and final development plan as shown. ___________________ Chad Nabity AICP, Planning Director Grand Island Council Session - 9/22/2015 Page 38 / 287 Grand Island Council Session - 9/22/2015 Page 39 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item E-4 Public Hearing on the Annual Report by the Grand Island Area Economic Development Corporation/Citizen Advisory Review Committee on the Economic Development Program Plan Council action will take place under Resolutions item I-1. Staff Contact: Marlan Ferguson Grand Island Council Session - 9/22/2015 Page 40 / 287 Council Agenda Memo From:Marlan Ferguson, City Administrator Meeting:September 22, 2015 Subject:Public Hearing Concerning the Annual Report by the Citizen Advisory Review Committee on the Economic Development Program Plan Item #’s:E-4 & I-1 Presenter(s):Marlan Ferguson, City Administrator Background The voters of the City of Grand Island approved an economic development plan at the November 6, 2012 election. Subsequent to the election, the city has adopted an ordinance that establishes the economic development plan and a Citizen Advisory Review Committee to oversee the process of approving applications for economic development incentives. The Citizen Advisory Review Committee is required by State Statute and the Grand Island City Code to make an annual report to the City Council. Discussion The Citizen Advisory Review Committee has been conducting regular meetings during the last six months as required by the City Code and the Nebraska Statutes. The committee looks forward to receiving and reviewing meritorious applications for consideration in the future. The committee received the annual report from the Economic Development Corporation at its meeting of September 3, 2015 and voted to forward it on to the City Council for its review and acceptance. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Accept the annual report of the Citizen Advisory Review Committee. 2.Do not accept the annual report of the Citizen Advisory Review Committee. Grand Island Council Session - 9/22/2015 Page 41 / 287 Recommendation City Administration recommends that the Council accept the annual report of the Citizen Advisory Review Committee. Sample Motion Move to accept the annual report of the Citizen Advisory Review Committee. Grand Island Council Session - 9/22/2015 Page 42 / 287 Grand Island Council Session - 9/22/2015 Page 43 / 287 2004-2015 to date Historical Trend of LB-840 LB-840 Funds invested in Job Creation: $4,230,100 Jobs Created: 954 Annual Wages Created from Incentives: $41,223,416 2014-2015 Average Wage Per Job Created: $16.75 Grand Island Council Session - 9/22/2015 Page 44 / 287 LB-840 projects •Rogue Manufacturing –Add 12 employees –Expires December 2015 •Bosselman Tank & Trailer –Add 8 employees –Expires February 2017 •Chief Industries –Add 41 employees –Expires May 2017 •GIX Logistics –Add 26 employees –Expires June 2019 Grand Island Council Session - 9/22/2015 Page 45 / 287 LB-840 Funding Status LB-840 balance as of 9/1/2015 $873,149.42 LB-840 job creation funds for Chief Industries ($239,000) LB-840 job creation funds for Bosselman Tank & Trailer ($40,000) LB-840 job creation funds for GIX Logistics ($202,800) Ending LB-840 job creation funds 391,349.42 *Potential to bring 2 LB-840 applications to Council in 2016 Grand Island Council Session - 9/22/2015 Page 46 / 287 Grow Grand Island Highlights Initiative Action Item Progress 1.1 Launch a collaborative Business Retention and Expansion outreach program that seeks to facilitate expansions and mitigate layoffs by conducting a series of site visits and survey with existing businesses in and around Grand Island. Ongoing partnership with the Chamber of Commerce, State DED, and area businesses. 1.2 & 5.3 Launch the Grow Grand Island Export Initiative to support the development of new international trade relationships for Grand Island area manufacturers. Work to begin in 2016 1.5 Work with neighboring communities in Central Nebraska to evaluate the potential benefits of developing regional cluster councils to address sector-specific issues and challenges that are common throughout Central Nebraska In 2015 Mary Berlie, GIAEDC Executive Vice President, was appointed to the South Central Economic Development District Board of Directors, serving Hall County and twelve neighboring counties. Grand Island Council Session - 9/22/2015 Page 47 / 287 Initiative Action Item Progress 3.4 & 3.5 Continue to Market the Grand Island Community to both internal and external audiences, utilizing the GIAEDC website and other electronic tools. Marketing to internal and external audiences is ongoing. New GIAEDC website launched July 2015. 3.6 Maintain strong relationships with the State DED overseeing business recruitment and business development. State DED staff has visited Grand Island several times. Additionally, Governor Pete Ricketts met with GIAEDC and a business looking to relocated in Grand Island on September 1, 2015. 5.2 Continue to work with NDED and the City of Grand Island to develop industrial sites with updated infrastructure and is considered “shovel ready” for development. Wildwood Development, LLC, a partnership between Chief Industries and the Central Nebraska Growth Foundation, will be working with the GIAEDC by initiating development plans for the first 40 acres in Platte Valley Industrial Park – East. Grow Grand Island Highlights Grand Island Council Session - 9/22/2015 Page 48 / 287 Partnerships to Connect with Target Markets Information Technology graduates & jobs GIAEDC Chamber Workforce Development Grand Island Council Session - 9/22/2015 Page 49 / 287 Grand Island Council Session - 9/22/2015 Page 50 / 287 EDC Land Platte Valley Industrial Park (3 lots / 19.2 acres) Platte Valley Industrial Park- East (280 acres) Homestead (160 acres) Cornhusker Industrial Park (260 acres) Grand Island Council Session - 9/22/2015 Page 51 / 287 Development at PVIP-E Grand Island Council Session - 9/22/2015 Page 52 / 287 Manufacturing Agriculture Equipment Metalwork & Custom Fabrication Food & Beverage Transportation & Distribution Transportation Services Warehousing & Storage Wholesale Trade Travel & Tourism Entertainment, Culture & Recreation Hospitality & Traveler Support Business Support Services Call Centers Financial Transaction Processing Corporate & Professional Services Professional Services Regional Offices & Headquarters Sustainable Processes & Technologies Alternative Energy Repair, Reuse, & Recycling --Presence of Agribusiness Activity-- Competitive Sectors Developmental Sectors Target Markets Grand Island Council Session - 9/22/2015 Page 53 / 287 The GIAEDC staff and Board of Trustees request approval of LB -840 operating funds, $350,000, for 2016. Grand Island Council Session - 9/22/2015 Page 54 / 287 Utilization of LB-840 Operating Funds Community Marketing $176,800 50.5% Community Support $30,000 Prospect Development $100,000 Website Maintenance $12,000 Video $11,800 Travel $9,000 Professional Fees $14,000 Office $6,000 1.7% Office Equipment/Repairs $3,000 Supplies/Software $3,000 Occupancy $26,200 7.5% Rent $16,000 Utilities $0 Telecommunications $5,000 Insurance $4,000 Janitorial $1,200 Administration $141,000 40.3% Salaries $119,500 Insurance/Retirement $5,000 Conference Fees $2,000 Employment Taxes $14,500 Grand Island Council Session - 9/22/2015 Page 55 / 287 Questions? Grand Island Council Session - 9/22/2015 Page 56 / 287 Thank you for your support! Grand Island Council Session - 9/22/2015 Page 57 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item E-5 Public Hearing on Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S- 4(Grudzinski & Solorzano) Council action will take place under Consent Agenda item G-15. Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 58 / 287 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:September 22, 2015 Subject:Public Hearing on Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4(Grudzinski & Solorzano) 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 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. Public utility easements are needed in the North Interceptor Phase II, Part A project to accommodate public utilities. The easements will allow for the construction, operation, maintenance, extension, repair, replacement, and removal of public utilities within the easement. Grand Island Council Session - 9/22/2015 Page 59 / 287 Discussion A permanent easement will be needed from 2 property owners in this project area. All documents have been signed and returned by the property owners. Authorization of the documents is contingent upon City Council approval. Following is a summary of the payments, totaling $1,000.00, for the properties. Owner Legal Total TIMOTHY & CASSANDRA GRUDZINSKI THE SOUTH 15.00 FEET AND THE WEST 15.00 FEET OF THE SOUTH 195.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 20009426, FILE DATE OCTOBER 31, 2000, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 3,690 SQUARE FEET OR 0.085 ACRES MORE OR LESS, AS SHOWN ON THE TRACT DRAWING DATED 09/01/2015, MARKED EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. $750.00 REINIER SOLORZANO THE SOUTH 15.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 201405380, FILE DATE AUGUST 29, 2014, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 990 SQURE FEET OR 0.023 ACRES MORE OR LESS, AS SHOWN ON THE TRACT DRAWING DATED 09/01/2015, MARKED EXHIBIT C ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. $250.00 $1,000.00 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council conduct a Public Hearing and approve acquisition of the Permanent Easements, in the total amount of $1,000.00. Sample Motion Move to approve the acquisition of the Permanent Easements. Grand Island Council Session - 9/22/2015 Page 60 / 287 Grand Island Council Session - 9/22/2015 Page 61 / 287 Grand Island Council Session - 9/22/2015 Page 62 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item F-1 #9558 - Consideration of Request to Rezone Property located at 2228 North Webb Road from CD Commercial Development to Amended CD Commercial Development (Grand Island Joint Venture, LLC) This item relates to the aforementioned Public Hearing item E-3. Staff Contact: Chad Nabity Grand Island Council Session - 9/22/2015 Page 63 / 287 Approved as to Form ¤ ___________ October 18, 2006 ¤ City Attorney ORDINANCE NO. 9558 An ordinance rezoning a certain tract of land within the zoning jurisdiction of the City of Grand Island; amending the Commercial Development district and Final Development Plan for Grand Island Mall Eighteenth Subdivision (Lots 1, 2, 3, 4, 5, 6 and Outlot A Inclusive); directing the such zoning change and classification be shown on the Official Zoning Map of the City of Grand Island; amending the provisions of Section 36-7; 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 the final development plan for Grand Island Mall Eighteenth Subdivision is amended as shown on the development plan approved and signed by the Subdivider and the City with the Subdivision agreement. SECTION 2. That the Official Zoning Map of the City of Grand Island, Nebraska, as established by Section 36-7 of the Grand Island City Code be, and the same is, hereby ordered to be changed, amended, and completed in accordance with this ordinance. SECTION 3. That 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: September 22, 2015. ____________________________________ Jeremy L. Jensen, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 64 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item F-2 #9559 - Consideration of Assessments for Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks This item relates to the aforementioned Board of Equalization item D-2. Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 65 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney This Space Reserved for Register of Deeds ORDINANCE NO. 9559 An ordinance assessing and levying a special tax to pay the cost of Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks of the City of Grand Island, Nebraska; providing for the collection of such special tax; repealing any provisions of the Grand Island City Code, ordinances, and 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. There is hereby assessed upon the following described lots, tracts and parcels of land specially benefited, for the purpose of paying the cost of Webb Road Street Improvement District No. 1260; South Webb Road Extending North from Stolley Park Road to Union Pacific Railroad Tracks, as adjudged by the Mayor and Council of the City, to the extent of benefits thereto by reason of such improvement, after due notice having been given thereof as provided by law; and a special tax for such cost of construction is hereby levied at one time upon such lots, tracts and land as follows: Parcel No.Owner Legal Description Assessment by Frontage 400150638 City of G I Lot 1, Highway 281 Estates $ 389,952.30 400150441 Mead Building Centers of Grand Island Lot 2, Highway 281 Estates $ 140,753.91 400150654 Dinsy, LLC Lot 1, Dinsdale Subdivision $ 19,193.71 400150646 Dinsy, LLC Lot 2, Dinsdale Subdivision $ 255,340.38 400150433 Judy D Hansen / Julie D Johnson Miscellaneous Tracts 24-11-10 PT SE ¼ 3.90 Acr $ 3,134.97 400146630 KPT, Inc. Miscellaneous Tracts 20-11-9 PT NW ¼ SW ¼ & PT Sec 19-11-9 .98 Acr $ 26,302.43 400013533 Dobesh Land Leveling, LLC Lot 8, Bachman & Lester Subdivision $ 40,889.01 400013460 Dobesh Land Leveling, LLC All of Lots 6 & 7 & Part of Lot 8, Bachman & Lester Subdivision $ 8,374.86 Grand Island Council Session - 9/22/2015 Page 66 / 287 ORDINANCE NO. 9559 (Cont.) - 2 - 400013487 1321 Webb Road, LLC % Axis Capital, Inc.Lot 9, Bachman & Lester Subdivision $ 54,443.61 400013495 Dobesh Land Leveling, LLC All of Lot 10 & Part of Lots 11 & 12, Bachman & Lester Subdivision $ 1,857.95 400095475 1321 Webb Road, LLC % Axis Capital, Inc.Lot 1, Stoltenberg Subdivision $ 54,499.91 400013525 James A & Carol J Stauss Lot 19, Bachman & Lester Subdivision $ 1,801.65 400013576 Island Indoor Climate, LLC W 159’ N ½ of Lot 20, Bachman & Lester Subdivision $ 22,674.17 400013541 Robert & Mary L Brenton E 72’ N ½ of Lot 20, Bachman & Lester Subdivision $ 2,098.51 400013568 Mary L Brenton S ½ of Lot 20, Bachman & Lester Subdivision $ 25,392.00 400013606 Lyman-Richey Corporation Lot 25, Bachman & Lester Subdivision $ 49,235.72 400013517 Lyman-Richey Corporation Lot 2, Wilson Concrete Subdivision $ 3,285.97 400492277 City of Grand Island Part of the North Portion, Grand Island City Cemetery Addition $ 413,944.44 $ 1,513,175.50 SECTION 2. The special tax shall become delinquent as follows: One-tenth of the total amount shall become delinquent in ten days; one-tenth in one year; one-tenth in two years; one-tenth in three years; one-tenth in four years; one-tenth in five years; one-tenth in six years; one-tenth in seven years; one-tenth in eight years; one-tenth in nine years respectively, after the date of such levy; provided, however, the entire amount so assessed and levied against any lot, tract or parcel of land may be paid within ten days from the date of this levy without interest, and the lien of special tax thereby satisfied and released. Each of said installments, except the first, shall draw interest at the rate of not exceeding seven percent (7.0%) per annum from the time of such levy until they shall become delinquent. After the same become delinquent, interest at the rate of three-fourths of one percent per month shall be paid thereon as in the case of other special taxes, until the same is collected and paid. SECTION 3. The treasurer of the City of Grand Island, Nebraska is hereby directed to collect the amount of said taxes herein set forth as provided by law. SECTION 5. Any provision of the Grand Island City Code and any provision of any ordinance, or part of ordinance, in conflict herewith is hereby repealed. SECTION 6. This ordinance shall be in force and take effect from and after its passage and publication within fifteen days in one issue of the Grand Island Independent as provided by law. Grand Island Council Session - 9/22/2015 Page 67 / 287 ORDINANCE NO. 9559 (Cont.) - 3 - Enacted: September 22, 2015 ____________________________________ Jeremy L. Jensen, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 68 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-1 Approving Minutes of September 8, 2015 City Council Regular Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 9/22/2015 Page 69 / 287 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL REGULAR MEETING September 8, 2015 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 September 8, 2015. Notice of the meeting was given in The Grand Island Independent on September 2, 2015. Mayor Jeremy L. Jensen called the meeting to order at 7:00 p.m. The following City Council members were present: Mitch Nickerson, Mark Stelk, Jeremy Jones, Chuck Haase, Julie Hehnke, Linna Dee Donaldson, Michelle Fitzke, Vaughn Minton, Roger Steele, and Mike Paulick. The following City Officials were present: City Administrator Marlan Ferguson, City Clerk RaNae Edwards, Interim Finance Director William Clingman, City Attorney Robert Sivick, and Public Works Director John Collins. Mayor Jensen introduced Community Youth Council member Abigail Richling. INVOCATION was given by Pastor Stan Davis, New Life Community Church, 301 West 2nd Street followed by the PLEDGE OF ALLEGIANCE. BOARD OF EQUALIZATION: Motion by Donaldson, second by Paulick to adjourn to the Board of Equalization. Motion adopted. #2015-BE-5 (A) - Consideration of Determining Benefits for Downtown Business Improvement District 2013. Interim Finance Director William Clingman reported that the City Council in its capacity as the Board of Equalization was required to determine the benefits for Downtown BID 2013. Special assessments were for the amount of $94,469.14 (70%) or $94,990.08 (100%). Presented were two Resolutions with the 70% and 100% assessment for owner occupied residents. Discussion was held regarding the process by property owners to request the 70% assessment. Motion by Haase, second by Donaldson to approve Resolution #2015-BE-5 (A). Upon roll call vote, all voted aye. Motion adopted. #2015-BE-6 – Consideration of Determining Benefits for Fonner Park Business Improvement District 2013. Interim Finance Director William Clingman reported that the City Council in its capacity as the Board of Equalization was required to determine the benefits for Fonner Park BID 2013. Special assessments were for the amount of $39,599.48. Motion by Paulick, second by Steele to approve Resolution #2015-BE-6. Upon roll call vote, all voted aye. Motion adopted. #2015-BE-7 – Consideration of Determining Benefits for South Locust Business Improvement District 2013. Interim Finance Director William Clingman reported that the City Council in its capacity as the Board of Equalization was required to determine the benefits for South Locust BID 2013. Special assessments were for the amount of $71,149.86. Grand Island Council Session - 9/22/2015 Page 70 / 287 Page 2, City Council Regular Meeting, September 8, 2015 Motion by Hehnke, second by Paulick to approve Resolution #2015-BE-7. Upon roll call vote, all voted aye. Motion adopted. RETURN TO REGULAR SESSION: Motion by Donaldson, second by Jones to return to Regular Session. Motion adopted. PUBLIC HEARINGS: Public Hearing on Amendment to the Redevelopment Plan for CRA Area 2 located at 1607 South Locust Street (Bosselman Real Estate, LLC). Regional Planning Director Chad Nabity reported that Bosselman Real Estate LLC had submitted a proposed amendment to the redevelopment plan that would provide for site acquisition, necessary clearance, utility extensions, renovation of the existing building and planning activities and the subsequent construction of a 100 room hotel and small office center at 1607 South Locust Street. Staff recommended approval. No further public testimony was heard. Public Hearing on Proposed FY 2015-2016 Budgets City of Grand Island and Community Redevelopment Authority (CRA) and City of Grand Island Budget. Interim Finance Director William Clingman reviewed changes to the 2015-2016 Budget. Staff recommended approval. No public testimony was heard. Public Hearing on Establishing Rates for the General Property Occupation Tax for Downtown Parking District No. 1 for FY 2015-2016. Interim Finance Director William Clingman reported this was the annual Council action to establish the occupation tax for Downtown Improvement and Parking District No. 1. FY 2015-2016 occupation tax factor was $.1644 per square foot and would provide taxes of $39,997.62. Staff recommended approval. No public testimony was heard. Public Hearing on General Property, Downtown Improvement Parking District #2 (Ramp) and Community Redevelopment Authority (CRA) Tax Request for FY 2015-2016. Interim Finance Director William Clingman reported that state statutes required the City to conduct a public hearing if the property tax request changes from one year to the next. Property tax request for the 2015-2016 general property tax was $9,177,422.25, Parking District No. 2 at $8,000, and the Community Redevelopment Authority property tax at $736,232.58. Staff recommended approval. No public testimony was heard. Public Hearing on Acquisition of Utility Easement at the Northwest Corner of Stolley Park Road and Adams Street (Grand Island Public Schools). Public Works Director John Collins reported that a public utility easement was needed for the new construction of Starr Elementary School at the northwest corner of Stolley Park Road and Adams Street to accommodate public utilities and development of the area. The easement would allow for the construction, operation, maintenance, extension, repair, replacement, and removal of public utilities within the easement. Staff recommended approval. No public testimony was heard. ORDINANCES: Councilmember Donaldson moved “that the statutory rules requiring ordinances to be read by title on three different days are suspended and that ordinances numbered: Grand Island Council Session - 9/22/2015 Page 71 / 287 Page 3, City Council Regular Meeting, September 8, 2015 #9553 - Consideration of Amendments to Chapter 13 of the Grand Island City Code Relative to Occupation Tax for Downtown Improvement Parking District No. 1 #9554 - Consideration of Assessments for Downtown Business Improvement District 2013 #9555 - Consideration of Assessments for Fonner Park Business Improvement District 2013 #9556 - Consideration of Assessments for South Locust Business Improvement District 2013 #9557 - Consideration of Approving FY 2015-2016 Annual Single City Budget and the Annual Appropriations Bill Including Addendum #1 be considered for passage on the same day upon reading by number only and that the City Clerk be permitted to call out the number of these ordinances on second reading and then upon final passage and call for a roll call vote on each reading and then upon final passage.” Councilmember Nickerson seconded the motion. Upon roll call vote, all voted aye. Motion adopted. #9553 - Consideration of Amendments to Chapter 13 of the Grand Island City Code Relative to Occupation Tax for Downtown Improvement Parking District No. 1 Motion by Donaldson, second by Fitzke to approve Ordinance #9553. City Clerk: Ordinance #9553 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinance #9553 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 Jensen: By reason of the roll call votes on first reading and then upon second and final readings, Ordinance #9553 is declared to be lawfully adopted upon publication as required by law. #9554 - Consideration of Assessments for Downtown Business Improvement District 2013 #9555 - Consideration of Assessments for Fonner Park Business Improvement District 2013 #9556 - Consideration of Assessments for South Locust Business Improvement District 2013 Motion by Haase, second by Hehnke to approve Ordinances #9554, #9555, and #9556. City Clerk: Ordinances #9554, #9555, and #9556 on first reading. All those in favor of the passage of these ordinances on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinances #9554, #9555, and #9556 on second and final reading. All those in favor of the passage of these ordinances on second and final reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 9/22/2015 Page 72 / 287 Page 4, City Council Regular Meeting, September 8, 2015 Mayor Jensen: By reason of the roll call votes on first reading and then upon second and final readings, Ordinances #9554, #9555, and #9556 are declared to be lawfully adopted upon publication as required by law. #9557 - Consideration of Approving FY 2015-2016 Annual Single City Budget and the Annual Appropriations Bill Including Addendum #1 Comments were made regarding the challenges of this budget and the future of the City going forward. Mentioned were the fiscal policies of the City. Mayor Jensen thanked the Council and City staff for their work on this budget. Motion by Stelk, second by Haase to approve Ordinance #9557. City Clerk: Ordinance #9557 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, Councilmembers Steele, Minton, Fitzke, Donaldson, Hehnke, Haase, Jones, Stelk and Nickerson voted aye. Councilmember Paulick voted no. Motion adopted. City Clerk: Ordinance #9557 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, Councilmembers Steele, Minton, Fitzke, Donaldson, Hehnke, Haase, Jones, Stelk and Nickerson voted aye. Councilmember Paulick voted no. Motion adopted. Mayor Jensen: By reason of the roll call votes on first reading and then upon second and final readings, Ordinance #9557 is declared to be lawfully adopted upon publication as required by law. CONSENT AGENDA: Motion by Hehnke, second by Stelk to approve the Consent Agenda. Upon roll call vote, all voted aye. Motion adopted. Approving Minutes of August 24, 2015 City Council Special Meeting/Budget Session. Approving Minutes of August 25, 2015 City Council Regular Meeting. #2015-234 - Approving Final Plat and Subdivision Agreement for Park-View Sixth Subdivision. It was noted that Clyde and Linda Swearingen, owners, had submitted the Final Plat and Subdivision Agreement for Park-View Sixth Subdivision for the purpose of creating 2 lots located east of Blaine Street and south of Pioneer Blvd. consisting of 2.6234 acres. #2015-235 - Approving Bid Award for Precipitator, Bottom Ash and Boiler Industrial Cleaning - Fall 2015 Outage at Platte Generating Station with Meylan Enterprises, Inc. of Omaha, NE in an Amount of $140,654.71. #2015-236 - Approving Bid Award for Transmission Line 1064B Upgrade with IES Commercial, Inc. of Holdrege, NE in an Amount of $1,741,883.50. #2015-237 - Approving Bid Award for Chimney Rain Hood Ice Melt System at Platte Generating Station with IES Commercial, Inc. of Holdrege, NE in an Amount of $150,775.00. Grand Island Council Session - 9/22/2015 Page 73 / 287 Page 5, City Council Regular Meeting, September 8, 2015 #2015-238 - Approving Prairie Breeze III Wind Energy Project Power Purchase Agreement Amendment #1. #2015-239 - Approving Acceptance of Coal Combustion Residual Rule Consulting Services Proposal from HDR Engineering of Omaha, NE in an Amount not to exceed $59,960.00. #2015-240 - Approving Designated Depositories and City Treasurer Authorizations. #2015-241 - Approving Bid Award for Ryder Park Tennis Court Improvement Project with Remer Sports Surfaces of Denver, CO in an Amount of $422,093.00. #2015-242 - Approving Bid Award for Phase Two of Sterling Estates Park Trail with The Diamond Engineering Co. of Grand Island, NE in an Amount of $48,107.00. #2015-243 - Approving Change Order No. 1 Installation of Irrigation System at Sterling Park with Tilley Sprinklers & Landscaping of Grand Island, NE for an Increase of $1,982.00 and a Revised Contract Amount of $35,319.00. #2015-244 - Approving Change Order No. 1 Heartland Public Shooting Park Entry Road Project with J.I.L. Asphalt Paving Co. of Grand Island, NE for a Decrease of $9,370.11 and a Revised Contract Amount of $195,774.59. #2015-245 - Approving Stryker Cot Maintenance Contract for the Fire Department for One Year. #2015-246 - Approving Acquisition of Utility Easement at the Northwest Corner of Stolley Park Road and Adams Street (Grand Island Public Schools). #2015-247 - Approving Bid Increase for the Law Enforcement Center & Downtown Parking Lot Snow Removal Operations for the 2015/2016 & 2016/2017 Winter Season with Premier Snow Removal, LLC. of Grand Island, NE in an amount per load rate from $35.00 for trucks hauling snow to $50.00. RESOLUTIONS: #2015-248 - Consideration of Approving Amendment to the Redevelopment Plan for CRA Area 2 located at 1607 South Locust Street (Bosselman Real Estate, LLC). This item was related to the aforementioned Public Hearing. Comments were made in support of the redevelopment of this project along South Locust Street. Councilmember Steele brought up concerns of the 15 year TIF financing. Mayor Jensen mentioned the benefits of TIF projects and the future of what those projects would do for the City. Motion by Minton, second by Donaldson to approve Resolution #2015-248. Upon roll call vote, Councilmembers Paulick, Minton, Fitzke, Donaldson, Hehnke, Haase, Jones, Stelk, and Nickerson voted aye. Councilmember Steele voted no. Motion adopted. #2015-249 - Consideration of Approving General Property, Downtown Improvement Parking District #2 (Ramp) and Community Redevelopment Authority (CRA) Tax Request for FY 2016. This item was related to the aforementioned Public Hearing. Grand Island Council Session - 9/22/2015 Page 74 / 287 Page 6, City Council Regular Meeting, September 8, 2015 Motion by Paulick, second by Minton to approve Resolution #2015-249. Upon roll call vote, all voted aye. Motion adopted. #2015-250 - Consideration of Approving 1% Increase to the Restricted Revenues Lid Limit. Interim Finance Director William Clingman reported that in 1998 the Nebraska State Legislature passed LB 989 which put a lid on the amount of restricted revenues a political subdivision could budget for. The restricted revenues that the City of Grand Island included in the budget were: Property Taxes, Local Option Sales Tax, Motor Vehicle Tax, Highway Allocation and Municipal Equalization Funds. The additional 1% increase for FY 2015-2016 State of Nebraska budget report would increase the prior year restricted revenues base by $283,609.79. This increase in restricted funds authority was not an increase in budgeted revenues or authorized expenditures. It only provided the ability to increase restricted revenues in order to budget all restricted revenue funding sources each budget year. Comments were made by Council both in favor and against the 1% lid limit. Motion by Nickerson, second by Stelk to approve Resolution #2015-250. Upon roll call vote, Councilmembers Paulick, Minton, Fitzke, Donaldson, Hehnke, Jones, Stelk, and Nickerson voted aye. Councilmembers Steele and Haase voted no. Motion adopted. PAYMENT OF CLAIMS: Motion by Donaldson, second by Nickerson to approve the Claims for the period of August 26, 2015 through September 8, 2015, for a total amount of $4,836,821.47. Unanimously approved. ADJOURNMENT: The meeting was adjourned at 8:04 p.m. RaNae Edwards City Clerk Grand Island Council Session - 9/22/2015 Page 75 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-2 Approving Minutes of September 15, 2015 City Council Study Session Staff Contact: RaNae Edwards Grand Island Council Session - 9/22/2015 Page 76 / 287 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL STUDY SESSION September 15, 2015 Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on September 15, 2015. Notice of the meeting was given in the Grand Island Independent on September 9, 2015. Mayor Jeremy L. Jensen called the meeting to order at 7:00 p.m. The following Councilmembers were present: Mitch Nickerson, Mark Stelk, Jeremy Jones, Chuck Haase, Julie Hehnke, Linna Dee Donaldson, Michelle Fitzke, Vaughn Minton, Roger Steele, and Mike Paulick. The following City Officials were present: City Administrator Marlan Ferguson, City Clerk RaNae Edwards, Interim Finance Director William Clingman, City Attorney Robert Sivick, and Public Works Director John Collins. Mayor Jensen introduced Community Youth Council member Brandeis Jensen and board member Danna Burchess. INVOCATION was given by Community Youth Council member Brandeis Jensen followed by the PLEDGE OF ALLEGIANCE. SPECIAL ITEMS: Presentation on Utility Customer Service Center: Interim Finance Director William Clingman reported that over the last several years the number of customers who pay their utility bills in person had increased. The current layout of City Hall was inadequate to accommodate this increase. In the past several solutions had been discussed regarding space issues at City Hall. The following survey results of over 500 customers were presented: 49% want to pay with cash 85% would like a drive-thru 27% would like more privacy 70% want more parking 67% would like a separate facility Building Department Director Craig Lewis commented on the customer service area in City Hall which was one of the most confined spaces in the building. Reviewed was the domino effect that had been looked at over the last couple of years. The sight at 1st and Sycamore Streets for a new building was cost prohibitive. Utilities Director Tim Luchsinger commented on the building at 1306 West 3rd Street. He stated there was unused space in the building and lots of parking. Reviewed was the layout of the building and how the customer service group could use that area. Mentioned was the importance of a drive-through as indicated in the survey. This would more than likely be an overhead tube Grand Island Council Session - 9/22/2015 Page 77 / 287 Page 2, City Council Study Session, September 15, 2015 system. The total interior estimate was $104,500 and a remote kiosk delivery system was estimated at $35,000. Moving the customer service group to another location would serve to improve the service and free up much needed space in City Hall. It also would eliminate parking issues, interior congestion and privacy within the building. The move of the customer service group out of City Hall would free up space that could be used to expand the Information Technology Department, create privacy within the Human Resources Department, and allow adequate space for the Finance Department. Mr. Clingman reviewed the changes that would take place in City Hall. Positive comments were made by Council regarding the central location of 1306 West 3rd Street and cost of this project versus building a new building. Mr. Luchsinger answered questions regarding the building at 1306 West 3rd Street. He stated a new water main had been installed. Mr. Clingman answered questions regarding the survey. Comments were made regarding having the Finance Department in two different areas and not having a Finance Director at this time to have input in this decision. Public Works Director John Collins answered questions concerning the drainage and the gravel street on the west side of 1306 West 3rd Street. Mr. Luchsinger stated the meter readers were in the process of moving to this new location. ADJOURNMENT: The meeting was adjourned at 7:40 p.m. RaNae Edwards City Clerk Grand Island Council Session - 9/22/2015 Page 78 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-3 Receipt of Official Document – Tort Claim filed by Dumale Bariyiga Staff Contact: RaNae Edwards Grand Island Council Session - 9/22/2015 Page 79 / 287 Council Agenda Memo From:RaNae Edwards, City Clerk Meeting:September 22, 2015 Subject:Receipt of Official Document – Tort Claim filed by Dumale Bariyiga Item #’s:G-3 Presenter(s):RaNae Edwards, City Clerk Background The City of Grand Island has received a Notice of Tort Claim from Dumale Bariyiga alleging certain claims in connection with the death of her daughter, Nubari Koffree, that occurred on July 18, 2015 at the Island Oasis Water Park. Without getting into issues concerning the City’s and other parties’ liability, and whether the claim of Dumale Bariyiga is fair and reasonable, we are simply providing a copy of this claim to you in compliance with the Nebraska Political Subdivision Tort Claims Act. For a person to assert a tort claim against the City of Grand Island, a written notice of the claim must be filed with the City Clerk, Secretary or other official responsible for keeping official records. The claim must be filed within one year of the accrual of the claim, and the Council has six months to act on the claim. No suit can be filed until after the Council acts on the claim, or the six months has run. The mere statement of these allegations does not make them true. By formally accepting this claim, the City is not admitting any liability, negligence or other wrong doing. Historically, the City of Grand Island has simply let the six months run. Not all claims result in a suit being filed, so it makes good sense to not act affirmatively in many instances. In any event, if you wish to look further into this claim, please contact the City Attorney's office, and we will provide you with the information which we have in connection with the claim. Our recommendation is to continue to take no affirmative action on tort claims. It must be emphasized that by providing copies of alleged claims to you, we are not making an admission or representation that a claim has been properly filed in any respect. We also recommend that no comments concerning a particular claim be made during Council meetings, unless you decide to bring the matter on for formal Grand Island Council Session - 9/22/2015 Page 80 / 287 consideration. Even then, we ask that comments be carefully considered so that the legal rights of all parties are preserved. Discussion This is not an item for council action other than to simply acknowledge that the claim has been received. Recommendation City Administration recommends that the Council take no action other than acknowledge receipt of the claim. Sample Motion Move to approve acknowledgement of the Tort Claim filed by Dumale Bariyiga. Grand Island Council Session - 9/22/2015 Page 81 / 287 Grand Island Council Session - 9/22/2015 Page 82 / 287 Grand Island Council Session - 9/22/2015 Page 83 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-4 Approving Re-Appointments of Dehn Renter, Jeff Vinson, and Tim White to the Citizens Advisory Review Committee Board Mayor Jensen has submitted the re-appointments of Dehn Renter, Jeff Vinson, and Tim White to the Citizens Advisory Review Committee board. The appointments would become effective October 1, 2015 upon approval by the City Council and would expire on September 30, 2017. Staff Contact: Mayor Jeremy Jensen Grand Island Council Session - 9/22/2015 Page 84 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-5 Approving Re-Appointment of Glen Murray to the Community Redevelopment Authority Board Mayor Jensen has submitted the re-appointment of Glen Murray to the Community Redevelopment Authority (CRA) board. The appointment would become effective October 1, 2015 upon approval by the City Council and would expire on September 30, 2020. Staff Contact: Mayor Jeremy Jensen Grand Island Council Session - 9/22/2015 Page 85 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-6 Approving Garbage Permits for Heartland Disposal and Mid- Nebraska Disposal, Inc. and Refuse Permits for Full Circle Rolloffs and O’Neill Transportation and Equipment LLC Staff Contact: RaNae Edwards Grand Island Council Session - 9/22/2015 Page 86 / 287 Council Agenda Memo From:RaNae Edwards, City Clerk Meeting:September 22, 2015 Subject:Approving Garbage and Refuse Haulers Permits Presenter(s):RaNae Edwards, City Clerk Background Grand Island City Code Section 17-15 allows for the Collection, Transportation, and Disposal of Garbage and/or Refuse. These permits are effective October 1 through September 30 of each calendar year. Discussion The following businesses have submitted applications for renewal for 2015/2016: Heartland Disposal, 1839 East 4th Street Garbage Mid-Nebraska Disposal, Inc., 3080 West 2nd Street Garbage Full Circle Rolloffs, 1839 East 4th Street Refuse O’Neill Transportation and Equipment, 7100 West Old Potash Hwy Refuse All City Code requirements have been met by these businesses. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the renewal for garbage/refuse permits. 2.Disapprove or deny the renewals. 3.Modify the renewals to meet the wishes of the Council. 4.Table the issue Grand Island Council Session - 9/22/2015 Page 87 / 287 Recommendation City Administration recommends that the Council approve the renewals for garbage/refuse permits for 2015/2016. Sample Motion Move to approve the renewal for garbage/refuse permits for 2015/2016. Grand Island Council Session - 9/22/2015 Page 88 / 287 Grand IslandCouncil Session - 9/22/2015Page 89 / 287 Grand IslandCouncil Session - 9/22/2015Page 90 / 287 Grand IslandCouncil Session - 9/22/2015Page 91 / 287 Grand IslandCouncil Session - 9/22/2015Page 92 / 287 Grand IslandCouncil Session - 9/22/2015Page 93 / 287 Grand IslandCouncil Session - 9/22/2015Page 94 / 287 Grand IslandCouncil Session - 9/22/2015Page 95 / 287 Grand IslandCouncil Session - 9/22/2015Page 96 / 287 Grand IslandCouncil Session - 9/22/2015Page 97 / 287 Grand IslandCouncil Session - 9/22/2015Page 98 / 287 Grand IslandCouncil Session - 9/22/2015Page 99 / 287 Grand IslandCouncil Session - 9/22/2015Page 100 / 287 Grand IslandCouncil Session - 9/22/2015Page 101 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-7 #2015-251 - Approving Final Plat and Subdivision Agreement for Grand Island Mall 18th Subdivision Staff Contact: Chad Nabity Grand Island Council Session - 9/22/2015 Page 102 / 287 Council Agenda Memo From: Regional Planning Commission Meeting: September 22, 2015 Subject: Grand Island Mall 18th Subdivision – Final Plat Presenter(s): Chad Nabity, AICP, Regional Planning Director Background This property is located north of State Street and east of US Hwy 281 in the City of Grand Island, in Hall County, Nebraska. Consisting of (7 Lots) and 16.43 acres. Discussion The plat for Grand Island Mall 18th Subdivision, Final Plat was considered by the Regional Planning Commission at the September 2, 2015 meeting. This item is part of the rezoning application that is also under consideration for this meeting. The same action that occurs with the rezoning application needs to occur with this request. A motion was made by Ruge and seconded by Connelly to approve the plat as presented. A roll call vote was taken and the motion passed with 10 members present and voting in favor (Kjar, Haskins, Connick, Maurer, Robb, O’Neill, Ruge, Huismann, Bredthauer and Connelly) and no members abstaining. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Grand Island Council Session - 9/22/2015 Page 103 / 287 Recommendation City Administration recommends that Council approve the final plat as presented. Sample Motion Move to approve as recommended. Grand Island Council Session - 9/22/2015 Page 104 / 287 Grand Island Council Session - 9/22/2015 Page 105 / 287 Developer/Owner Grand Island Joint Ventures, LLC 2127 Innerbelt Business Center Drive St Louis MO 63114 To create 7 lots located north of State Street and east of US Hwy 281, in Grand Island, in the City of Grand Island, in Hall County, Nebraska. Size: 16.43 acres Grand Island Joint Ventures, LLC Zoning: CD – Commercial Development Road Access: City Roads Water Public: City water is available. Sewer Public: City sewer is available. Grand Island Council Session - 9/22/2015 Page 106 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-251 WHEREAS Grand Island Joint Venture, LLC, being the owner of the land described hereon, have caused same to be surveyed, subdivided, platted and designated as “GRAND ISLAND MALL EIGHTENTH SUBDIVISION”, to be laid out into 7 lots, on a tract of land, a replat of all of Grand Island Mall 17th Subdivision all in the City of Grand Island, Hall County, Nebraska, West of the 6th P.M., in the City of Grand Island, Hall County, Nebraska, and has caused a plat thereof to be acknowledged by it; and WHEREAS, a copy of the plat of such subdivision has been presented to the Boards of Education of the various school districts in Grand Island, Hall County, Nebraska, as required by Section 19-923, R.R.S. 1943; and WHEREAS, a form of subdivision agreement has been agreed to between the owner of the property and the City of Grand Island. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the form of subdivision agreement hereinbefore described is hereby approved, and the Mayor is hereby authorized to execute such agreement on behalf of the City of Grand Island. BE IT FURTHER RESOLVED that the final plat of GRAND ISLAND MALL EIGHTEENTH SUBDIVISION, as made out, acknowledged, and certified, is hereby approved by the City Council of the City of Grand Island, Nebraska, and the Mayor is hereby authorized to execute the approval and acceptance of such plat by the City of Grand Island, Nebraska. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 107 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-8 #2015-252 - Approving Municipal Advisory Services Agreement with Smith Hayes Financial Services Corporation Staff Contact: William Clingman, Interim Finance Director Grand Island Council Session - 9/22/2015 Page 108 / 287 Council Agenda Memo From:William Clingman, Interim Finance Director Meeting:September 22, 2015 Subject:Approving Municipal Advisory Services Agreement with Smith Hayes Financial Services Corporation Presenter(s):William Clingman, Interim Finance Director Background In recent years the SEC has begun to look more closely at bond issuances for Municipalities. They have also limited the ability of bond underwriters to act in an advisory capacity while also underwriting bonds for a municipality. This is primarily because bond underwriters do not have a fiduciary duty to the City, as they are required to state in their disclosure statements before underwriting a bond. However, Municipal Advisors do have a fiduciary duty to the municipality they work for and are able to assist with many bond related tasks. The Municipal Advisor role is more widely used in other States, but is beginning to be used within Nebraska. Discussion The contract with Smith Hayes will designate them as the Municipal Advisor for the City of Grand Island. They would then have a fiduciary duty, or responsibility to act in the best interest of the City, to the City of Grand Island when working as a Municipal Advisor. One of their routine services would be to evaluate existing bonds for re-bonding opportunities that would result in an overall savings to the City. They would also work with the City’s bond attorney to ensure timely and accurate reporting for all current bond issuances. Finally, they would be available to answer questions related to debt issuances in general. The contract provides an annual payment of $5,000 for the above services. If the City decides to pursue an actual debt issuance an additional fee would be paid to Smith Hayes, which is dependent upon the amount of debt issued. When the City issues debt Smith Hayes would draft and put out for bid an RFP related to that specific issuance. This would be done each time debt is issued in order to ensure the best rates are obtained. The City Attorney’s office has reviewed and approved the contract as presented. Grand Island Council Session - 9/22/2015 Page 109 / 287 It should also be noted that Smith Hayes does function as a bond underwriter for other municipalities. They would be unable to do that for the City of Grand Island if they are the Municipal Advisor for the City. The two roles are mutually exclusive. In fact, Smith Hayes Financial Services Corporation would be unable to purchase bonds issued by the City of Grand Island on the primary market. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the contract with Smith Hayes Financial Service Corporation 2.Disapprove or deny contract 3.Refer to a committee Recommendation City Administration recommends that the Council approve the contract with Smith Hayes Financial Services Corporation. Sample Motion Move to approve the contract with Smith Hayes Financial Services Corporation. Grand Island Council Session - 9/22/2015 Page 110 / 287 September 22, 2015 City of Grand Island, Nebraska Re: Municipal Advisory Services Agreement Ladies and Gentlemen: On behalf of SMITH HAYES Financial Services Corporation (“we” or “SMHS”), we thank you for the opportunity to serve as exclusive independent municipal financial advisor to the City of Grand Island, Nebraska (“you” or the “City”). This Agreement will establish the terms and conditions under which SMHS will provide municipal financial advisory services to the City in connection with the public finance market. 1. Financial Advisory Services to be Provided by SMHS. The City hereby engages SMHS to serve as its independent municipal financial advisor and in such capacity SMHS agrees to provide financial advisory services, consultant services, and, which may include but are not limited to, the services described on Exhibit A in accordance with industry practices and in the best interest of the City. Under MSRB Rule G-23, SMHS will not be able to serve as underwriter or placement agent for any notes, bonds or other securities to be issued and sold as part of the Financing. As financial advisor, SMHS’s role is to provide financial advisory and consultant services with respect to the issuance(s) of securities as set forth on Exhibit A. As financial advisor, SMHS acknowledges it has a fiduciary duty under federal securities law to act in the best interests of the issuer without regard to its own financial or other interests. SMHS’s fiduciary duties include the duty of care and the duty of loyalty. SMHS is registered as a municipal advisor with the Securities Exchange Commission and Municipal Securities Rulemaking Board. 2. Fees and Expenses. For its financial advisory services, SMHS shall be entitled to certain fees (the “Financial Advisory Fee”) to be paid by the City as described on Exhibit B. In addition, the City shall reimburse SMHS for all out-of-pocket costs and expenses it reasonably incurs in connection with the services it provides hereunder; provided, however, that such costs and expenses shall not exceed $1,000 per annum without the City’s prior written consent. 3. Term and Termination. This Agreement shall be for an initial term beginning on the date this agreement is executed (the “Effective Date”) and ending on September 30, 2019, Grand Island Council Session - 9/22/2015 Page 111 / 287 subject to earlier termination pursuant to the provisions of Paragraphs 6 and 7 hereof. Effective at the end of each fiscal year, beginning October 1, 2019, the term of this Agreement shall be automatically extended for an additional year beyond the then end of the term unless one party gives the other party notice, not less than ninety (90) days prior to the end of a fiscal year, that such party does not agree to such extension of the term. Notwithstanding the forgoing, either party may terminate SMHS’s engagement at any time without liability or penalty upon at least 30 days’ prior written notice to the other party. If SMHS’s engagement is terminated by the City, the City agrees to compensate SMHS for the services provided and to reimburse SMHS for its out-of-pocket expenses incurred through the date of termination and if within 12 months following such termination the City completes a financing which SMHS provided any financial advisory services on the City shall pay SMHS Transaction Related Fee described on Exhibit B, section 2. 4. Indemnification: Limitation of Liability. The City agrees that neither SMHS nor its employees, officers, agents or affiliates shall have any liability to the City for the services provided hereunder except to the extent it is judicially determined that SMHS engaged in gross negligence, willful misconduct, knowing violation of law or a breach of its fiduciary duty. In addition, to the extent permitted by applicable law, the City shall indemnify, defend and hold SMHS and its employees, officers, agents and affiliates harmless from and against any losses, claims, damages and liabilities that arise from or otherwise relate to the City’s acts or omissions taken or omitted in connection herewith, or the transactions and other matters contemplated hereby, except to the extent such losses, claims, damages or liabilities are judicially determined to be the result of SMHS’s gross negligence, or willful misconduct, knowing violation of law or breach of fiduciary duty. To the extent permitted by applicable law, SMHS shall indemnify, defend and hold the City and its employees, officers, agents and affiliates harmless from and against any losses, claims, damages and liabilities that arise from or otherwise relate to SMHS’s acts or omissions taken or omitted in connection herewith, or the transactions and other matters contemplated hereby, to the extent such losses, claims, damages or liabilities are judicially determined to be the result of SMHS’s gross negligence, or willful misconduct, knowing violation of law or breach of fiduciary duty. 5. Records and Accounts. SMHS shall maintain all records and accounts in connection with the financial advisor services performed pursuant to this Agreement in the manner and for at least the length of time prescribed by federal and state laws, rules and regulations governing financial advisors. 6. Ownership of Documents. All studies, reports, documents, estimates, summaries and any other written materials produced, created or accumulated in performing this Agreement and delivered to the City are and shall remain the property of the City and may be reproduced, distributed and published in whole or part without permission or any additional payments or fees to SMHS. 7. Termination for Default. Either party may terminate this Agreement for failure of the other party to fulfill or promptly fulfill its covenants or obligations under this Contract. Grand Island Council Session - 9/22/2015 Page 112 / 287 (a) Upon a breach by one party of any covenant or obligation under this Agreement, the non-breaching party shall send written notice of such breach to the other party. If the party in breach does not cure or remedy such breach within 30 business days of receiving such written notice, the nonbreaching party may terminate this Agreement immediately. (b) lf this Agreement is terminated by reason of a default of the Financial Advisor prior to the completion of Financial Advisor Services under this Agreement, the Financial Advisor shall immediately assign to the City, at the City’s discretion, any contracts and/or agreements relative to this Agreement entered into between the Financial Advisor and its subcontractors and consultants. SMHS also shall (i) immediately discontinue all work and services affected (unless the notice directs otherwise), and (ii) upon payment for work performed, promptly deliver to the City all studies, reports, documents, specifications, calculations, plans, estimates, summaries and other information and materials accumulated in performing this Agreement. 8. Notices. All notices given pursuant to this Agreement shall be in writing, delivered or mailed by United States mail, postage prepaid or e-mailed (with hard-copy follow- up by mail or delivery) and addressed as follows: To the City: City of Grand Island 100 E First Street Grand Island, NE 68801 Attention: City Treasurer E-mail: finance@grand-island.com To the Financial Advisor: SMITH HAYES Financial Services Corporation 1225 L Street, Suite 200 Lincoln, NE 68508 Attention: Blaine Spady E-mail: bspady@smithhayes.com 9. Nonwaiver. Failure by either party to insist upon strict performance of any of the terms and conditions hereof, or failure or delay to exercise any rights or remedies provided herein or by law, or failure by either party to notify the other party properly in the event of default, or the acceptance of or payment for service or review or approval of any document shall not release either party from any of the obligations of this Agreement and shall not be deemed a waiver of any right of either party to insist upon strict performance hereof or any of its rights or remedies to a prior or subsequent default hereunder. 10. Regulatory Change. In the event of a change of law, rule or regulation that affects or imposes additional duties or costs upon the advisory services provided under this Agreement (a “Change”), you agree to negotiate in a commercially reasonable manner such modifications to this Agreement as we may reasonably request in order to (i) enable us to comply with such Change, (ii) allocate any new or additional costs between the parties or (iii) otherwise address the Grand Island Council Session - 9/22/2015 Page 113 / 287 effect of such Change upon the advisory services provided under this Agreement. If the parties are unable to agree promptly on the requested modifications to this Agreement, we may terminate this Agreement upon notice to you. 11. Severability. In the event that any provision, clause, portion or section of this Contract is unenforceable or invalid for any reason, such unenforceability or invalidity may not affect the enforceability or validity of any other paragraph or the remainder of this Agreement. 12. Entire Agreement. This Agreement, including its Exhibits and any other documents or certificates incorporated herein by reference, expresses the entire understanding of the City and SMHS concerning this Agreement. Neither the City nor SMHS has made or shall be bound by any agreement or any representation to the other concerning this Agreement, which is not expressly set forth or incorporated by reference herein. 13. Construction and Enforcement. This Agreement shall be construed and enforced in accordance with the laws of the State of Nebraska 14. Authority of the Parties. Each of the parties to this Agreement, and each person signing this Agreement on behalf of such party, represents and warrants to the other party to this Agreement as follows: (a) that such party has full power and authority to execute, deliver and carry out the terms and provisions of this Agreement; (b) that such party has taken all necessary action to authorize the execution, delivery and performance of this Agreement; (c) that the individual(s) and/or entities executing this Agreement on such party’s behalf have the authority to bind it to the terms and conditions of this Agreement; and (d) that this Agreement has been duly executed and delivered by such party. 15. Parties Bound. This Agreement shall be binding upon and inure to the benefit of all parties. This Agreement is solely for the benefit of the parties and their successors in interest, and none of the provisions hereof are intended to benefit third parties. 16. Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. If there is any aspect of this Agreement that you believe requires further clarification, please do not hesitate to contact us. If the foregoing is consistent with your understanding of our engagement, please sign and return the enclosed copy of this letter. Again, we thank you for the opportunity to assist you with the Financing and the confidence you have placed in us. Very truly yours, Grand Island Council Session - 9/22/2015 Page 114 / 287 SMITH HAYES Financial Services Corporation By: Title: Vice President Accepted this ___ day of September, 2015. City Of Grand Island By: Title: Grand Island Council Session - 9/22/2015 Page 115 / 287 EXHIBIT A EXHIBIT A SCOPE OF SERVICES FINANCIAL ADVISOR SMHS will provide Municipal Financial Advisor Services, which may include, but are not limited to: A. Strategic Services 1. Project feasibility (a) Evaluate assumptions for feasibility provided by the City and provide analysis of feasibility of debt structure. Coordinate with Bond Counsel to determine City’s authority, restrictions and requirements to issue debt for the project. (b) On request meet with planning officials to assist with planning issues. (c) On request participate and make recommendations regarding scope, cost and timing of projects. (d) Participate and conduct cash flow analysis from proposed cost of improvements and current market conditions. (e) Estimate the aggregate principal amount and timing of issuance of debt based on project plan. (f) Advise City as to optimal financing structure. 2. Based on current market conditions evaluate funding options. 3. Provide the City with an impact analysis on cost changes to cash flow, debt issuance, budget and Bond and General Fund levies. 4. Conduct periodic analysis of the outstanding debt of the City. (a) Meet with the City to establish timing parameters for a particular financing and identify financing needs and issues. (b) Attend meetings of the City, as requested and respond to the City’s general or specific inquiries regarding its debt. Grand Island Council Session - 9/22/2015 Page 116 / 287 B. Post-Issuance Services 1. Assist City in preparing and submitting continuing disclosures as they relate to updated financial information, including compiling updated data and assisting Dissemination Agent with ongoing disclosure obligations of the City pursuant to SEC Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, as applicable. Such information shall include annual operating data, annual audit and material event filings. 2. Research and advise the City concerning aspects of tax exemption and arbitrage on existing debt in cooperation with Bond Counsel, City Accountant and City Attorney, including helping coordinate post issuance compliance obligations of the City. 3. Annual budget analysis and recommendations (a) Provide information for annual budget cash flow analysis for debt service as requested. (b) Make recommendations for DSRF cash management, and adjust structure to best suit current market conditions as needed. 4. Track outstanding bond debt and Notify the City of potential refunding opportunities, identifying specific full or partial issues that may qualify to be refunded based on current or forecasted market conditions. C. Transaction-Related Services 1. Provide independent financial advice and serve solely in the interest of the City. 2. Analyze and provide comments on various financning structures. The analysis will cover such issues as advantages and disadvantages of each financing alternative, risk analyses, legal constraints, and other aspects of financings where appropriate. 3. Assist in the preparation of necessary reports and documents to support the issuance of debt obligations, including, but not limited to: cash-flow-analysis statements, debt-service projections and models, verification of revenue estimates, and projections of market feasibility. 4. To the extent directed to do so by the City, advise on and manage a competitive bid process or a negotiated request for proposal process for investment banking and underwriting services, bond attorneys, financial printers, auditors, accountants paying agents/registrars, trustees, and other consultants, and provide advise Grand Island Council Session - 9/22/2015 Page 117 / 287 regarding which providers offer the greatest value (service relative to cost) to the City. 5. Participate in drafting and reviewing relevant bond documents, including but not limited to: preliminary and final official statements, bond resolution and indentures, and leases and contracts. 6. Participate, if requested, in informational, due-diligence or other financing-related meetings. 7. Assist in the development of comprehensive marketing plan, including identification of potential investors and market conditions for alternative products in order to achieve the lowest cost of borrowing. 8. Determine the benefits of and assist in the negotiation to obtain bids for bond insurance, letters of credit, or any other type of credit enhancement that is cost- effective for the transaction at-hand. 9. Work with the City to establish credit rating targets for proposed financing and devise an appropriate plan of action. Assist in preparing for and participate in meetings with rating agencies, credit enhancers, investors, or stockholders related to financing. 10. Prepare and discuss marketing conditions (including “comparables”) and preliminary pricing scales, syndicate rules, syndicate price views, and marketing compensations for the transaction at-hand. 11. Participate in discussions with City staff upon the occurrence of unexpected events regarding the effect on the City’s proposed debt issuance, and assist City staff in developing response strategies. 12. Work cooperatively with other financing team participants, including investment banks and other professional firms engaged by the City. 13. SMITH HAYES will follow the procurement procedures as outlined in Chapter 27 of the Grand Island City Code. Grand Island Council Session - 9/22/2015 Page 118 / 287 EXHIBIT B FEES FINANCIAL ADVISOR CONTRACT Under the terms of this Contract, the Financial Advisor agrees to perform the Financial Advisor Services described in this Contract. The City agrees, in accordance with the limitations and conditions set forth in the Contract, to compensate the Financial Advisor as follows: 1. Exhibit A, Section A and B. (Strategic Services and Post-Issuance Services). For providing Strategic Services and Post-Issuance Services, the Financial Advisor shall receive a fixed annual fee equal to: (a) Flat fee of $5,000 per annum. Such fees shall be payable on execution of this Contract and annually thereafter. 2. Exhibit A, Section C (Transaction Related Services). For providing Transaction- Related Services related to the issuance, refinancing or restructuring of any bonds, notes, loans, warrants or other obligations of the City, there will be a staggered fee for structuring the financing which is the sum of the following amounts based on the size of the transaction: PAR Amount Fee $0 to $1,000,000 $5,000 On the next $1,000,001 to $5,000,000 0.500% On the next $5,000,001 to $10,000,000 0.400% On the next $10,000,001 to $20,000,000 0.350% On the next $20,000,001to $30,000,000 0.300% and over $30,000,001 and up negotiated Grand Island Council Session - 9/22/2015 Page 119 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-252 WHEREAS, the City of Grand Island wants to hire a Municipal Advisor; and WHEREAS, the City has discussed the potential service with Smith Hayes Financial Services Corporation; and WHEREAS, Smith Hayes Financial Services Corporation will charge the City $5,000 on an annual basis for these services; and WHEREAS, Smith Hayes Financial Services Corporation will charge the City a defined fee for debt issuances they formulate. 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 with Smith Hayes Financial Services Corporation. BE IT FURTHER RESOLVED, that they 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, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 120 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-9 #2015-253 - Approving Acquisition of Utility Easement - 1203 S. Stuhr Road - Midland Ag Service, Inc. This item relates to the aforementioned Public Hearing item E-1. Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 9/22/2015 Page 121 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-253 WHEREAS, a public utility easement is required by the City of Grand Island from Midland Ag Service, Inc., 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 September 22, 2015 for the purpose of discussing the proposed acquisition of a twenty foot wide easement located in Hall County, Nebraska; and more particularly described as follows: Commencing at the West Quarter corner of Section Twenty Three (23), Township Eleven (11) North, Range Nine (9) West of the 6th P.M., Hall County, Nebraska; thence easterly along the northerly line of tract of land described in Document 201201220 recorded in the Register of Deeds Office, Hall County, Nebraska, a distance of one thousand seven hundred two and five tenths (1,702.5) feet to the ACTUAL Point of Beginning; thence deflecting right 21°37’14” and running in a southeasterly direction, a distance of one hundred twelve (112.0) feet to the point of termination. The side lines of the above described easement and right of way tract shall be prolonged or shortened as required to terminate on the boundary of Grantor’s property and contain a total of 0.056 acres, more or less, as shown on the plat dated 8/27/2015, 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 Midland Ag Service, Inc., on the above-described tract of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska September 22, 2015. _______________________________ Jeremy L. Jensen, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 122 / 287 Grand Island Council Session - 9/22/2015 Page 123 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-10 #2015-254 - Approving Acquisition of Utility Easement - 1911 Diers Avenue - Fugate This item relates to the aforementioned Public Hearing item E-2. Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 9/22/2015 Page 124 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-254 WHEREAS, a public utility easement is required by the City of Grand Island from J. Larry Fugate as Trustee of the J. Larry Fugate Revocable Trust, 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 September 22, 2015 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: The easterly twenty (20.0) feet of the northerly one hundred twenty five (125.0) feet, of the southerly two hundred twenty five (225.0) feet of Lot Three (3), Menard Subdivision, Grand Island, Hall County, Nebraska. The above-described easement and right-of-way containing a total of 0.057 acres, more or less, as shown on the plat dated 9/4/2015, 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 J. Larry Fugate, as Trustee of the J. Larry Fugate Revocable Trust, on the above-described tract of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska September 22, 2015. __________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 125 / 287 Grand Island Council Session - 9/22/2015 Page 126 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-11 #2015-255 - Approving Bid Award - Purchase of Sulfuric Acid with Telemetry Program at Platte Generating Station Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 127 / 287 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney/Purchasing Meeting Date:September 22, 2015 Subject:Purchase of Sulfuric Acid with Telemetry Program Presenter(s):Timothy G. Luchsinger, Utilities Director Background The Platte Generating Station utilizes a cooling tower, condenser and circulating piping as part of the plant’s cooling water system. The cooling tower uses heat exchangers to dissipate large heat loads to the atmosphere. Bulk sulfuric acid at the Platte Generating Power Plant is used for the pH control of the cooling tower system. The system’s cooling water impurities are concentrated through an evaporative cooling process and requires chemical treatment to prevent scaling, corrosion, and contamination and assists with conductivity. Depending on the time of year and the production load, approximately 140 gallons are used per day. The current contract to provide the additive is complete. Plant staff developed specifications for the purchase of sulfuric acid for another year and issued for bid. Included in the specifications is a telemetry system which will allow the supplier to remotely monitor the sulfuric acid tank levels and schedule truck deliveries accordingly. Discussion The Utilities Department solicits bids annually for the sulfuric acid. The specifications require a firm price for the product to maintain the guaranteed dose rate. Bids were publicly opened on September 1, 2015. Two bids were received as listed below. The engineer’s estimate for this project was $100,000.00. Estimated Telemetry Adjusted Bidder Unit Price Taxes Annual cost Program Bid Price Univar Omaha, NE $ 167.00 $11.69 $ 65,757.92 $ 0 $65,757.92 Brenntag Great Lakes Omaha, NE $ 176.00 Included $ 64,768.00 $ 1,995.00 $66,763.00 Grand Island Council Session - 9/22/2015 Page 128 / 287 Department personnel have reviewed the bids for compliance with the City’s detailed specifications. The bids were evaluated based upon the unit cost per ton, and the cost of installing a telemetry program. Based on the previous year’s annual usage of 368 tons of sulfuric acid, Brenntag Great Lakes bid was adjusted to $64,768.00. Adding the cost of the telemetry system brought their bid to an adjusted price of $66,763.00. Based on using the same dosage rates, Univar is compliant with specifications and less than the engineer’s estimate. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the purchase of Sulfuric Acid with Telemetry Program be awarded to Univar from Omaha, Nebraska, as the low responsive bidder, for a not-to-exceed price of $167.00 per ton; an annual amount estimate at $65,757.92 and the installation of the telemetry monitoring system at no cost. Sample Motion Move to approve the bid for the Purchase of Sulfuric Acid with Telemetry Program in the amount of $167.00 per ton per gallons of treated water, to Univar of Omaha, Nebraska. Grand Island Council Session - 9/22/2015 Page 129 / 287 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:September 1, 2015 at 2:15 p.m. FOR:Purchase of Sulfuric Acid with Telemetry Program DEPARTMENT:Utilities ESTIMATE:$100,000.00 FUND/ACCOUNT:520 PUBLICATION DATE:August 21, 2015 NO. POTENTIAL BIDDERS:2 SUMMARY Bidder:Univar Brenntag Great Lakes, LLC Omaha, NE Omaha, NE Bid Security:Westchester Fire Ins. Co.Cashier’s Check Exceptions:Noted None Delivered Unit Bid Price:$167.00 $176.00 Sales Tax:$ 11.69 per ton Included Estimated Annual Cost:$65,757.92 based on 368 $48,576.00 tons from 9-1-15 to 8-30-15 Telemetry Program Cost: None $1,995.00 cc:Tim Luchsinger, Utilities Director Pat Gerieke, Utilities Admin. Assist. Marlan Ferguson, City Administrator William Clingman, Interim Finance Director Stacy Nonhof, Purchasing Agent Scott Sekutera, Environmental Manger P1833 Grand Island Council Session - 9/22/2015 Page 130 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-255 WHEREAS, the City of Grand Island invited sealed bids for the Purchase of Sulfuric Acid with Telemetry Program, according to plans and specifications on file with the Utilities Department; and WHEREAS, on September 1, 2015, bids were received, opened and reviewed; and WHEREAS, Univar of Omaha, Nebraska, submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $167.00 per ton per gallons of treated water, an annual amount estimate of $65,575.92; and WHEREAS, the bid of Univar is less than the estimate for the Purchase of Sulfuric Acid with Telemetry Program. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Univar, in the amount of $167.00 per ton per gallons of treated water, an annual amount estimate of $65,575.92, for Purchase of Sulfuric Acid with Telemetry Program, is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________ Jeremy L. Jensen, Mayor Attest: ___________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 131 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-12 #2015-256 - Approving Renewable Energy Credit Agreement with Nebraska City, Nebraska Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 132 / 287 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:September 22, 2015 Subject:Renewable Energy Credit Agreement with Nebraska City Presenter(s):Timothy Luchsinger, Utilities Director Background On June 9, 2015 Council approved execution of a Power Purchase Agreement (PPA) with Invenergy Inc., for the Prairie Breeze III Wind Energy Project. This PPA with Invenergy is for the entire capacity of the Project with the intent for subsequent participation agreements between the City of Grand Island and the Nebraska City Utilities and the City of Neligh for minority positions in the Project. Discussion Energy generated from renewable sources such as wind are eligible to receive Renewable Energy Credits which document the energy created and then can be sold or traded to other parties and used for environmental compliance. The Utilities Department’s legal counsel for the Prairie Breeze III Project, Fraser Stryker, drafted a Renewable Energy Credit Purchase Agreement for the sale of approximately 19.55% of the output of this project from Grand Island to Nebraska City. The sale price to Nebraska City for the Renewable Energy Credits is being paid by the City to Invenergy over the twenty year term of the PPA, plus the pro-rata share of any costs that may be incurred by the City as a result of marketing the energy to the electric regional system. The agreement includes the information for this item with the exclusion of the appendix with the pricing information, which is confidential based on the terms of the PPA. 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 - 9/22/2015 Page 133 / 287 4.Take no action on the issue Recommendation City Administration recommends that the Council authorize the Mayor to execute the Renewable Energy Credit Purchase and Sale Agreement between the City of Grand Island and the City of Nebraska City. Sample Motion Move to authorize the Mayor to execute the Renewable Energy Credit Purchase and Sale Agreement between the City of Grand Island and the City of Nebraska City. Grand Island Council Session - 9/22/2015 Page 134 / 287 GRAND ISLAND DRAFT 8.5.15 ____________________________________________________ RENEWABLE ENERGY CREDIT PURCHASE AND SALE AGREEMENT Between CITY OF GRAND ISLAND And CITY OF NEBRASKA CITY __________________________________________ Grand Island Council Session - 9/22/2015 Page 135 / 287 i TABLE OF CONTENTS ARTICLE I - DEFINITIONS..........................................................................................................................1 ARTICLE II - PRICE, DELIVERY, IDENTIFICATION, CERTIFICATION, PAYMENT AND TRANSFER OF RECS ...................................................................................................4 2.1 Purchase and Sale of RECs........................................................................................................4 2.2 Identification and Certification .....................................................................................................4 2.3 Payment for RECs.......................................................................................................................4 2.4 Title..............................................................................................................................................5 2.5 Taxes...........................................................................................................................................5 ARTICLE III - BUYER'S REVIEW RIGHTS .................................................................................................5 3.1 Review Rights .............................................................................................................................5 ARTICLE IV - REPRESENTATIONS, WARRANTIES AND COVENANTS ................................................6 4.1 Representations, Warranties and Covenants of GRAND ISLAND..............................................6 4.2 Representations, Warranties and Covenants of BUYER ............................................................7 ARTICLE V - EVENTS OF DEFAULT; INDEMNIFICATION; LIMITATION OF LIABILITY ........................7 5.1 Events of Default by GRAND ISLAND ........................................................................................7 5.2 Events of Default by BUYER .......................................................................................................8 5.3 Termination for Cause.................................................................................................................8 5.4 Remedy......................................................................................................................................9 5.5 Limitation of Liability....................................................................................................................9 ARTICLE VI - TERM AND TERMINATION................................................................................................10 ARTICLE VII - CHANGE IN LAW ..............................................................................................................10 ARTICLE VIII - MISCELLANEOUS ...........................................................................................................10 8.1 Notices ......................................................................................................................................10 8.2 Confidential Information ............................................................................................................11 8.3 Entire Agreement; Counterparts................................................................................................13 8.4 Assignment................................................................................................................................13 8.5 Successors and Assigns ...........................................................................................................13 8.6 Severability ................................................................................................................................13 8.7 No Prior Agreements.................................................................................................................13 8.8 No Waiver..................................................................................................................................13 8.9 Headings ...................................................................................................................................14 8.10 No Third-Party Beneficiaries .....................................................................................................14 8.11 Negotiated Agreement ..............................................................................................................14 8.12 Governing Law ..........................................................................................................................14 EXHIBITS EXHIBIT A Bill of Sale; Renewable Energy Attestation EXHIBIT B1 Contract Year Price Per REC EXHIBIT B2 REC Settlement Amount t Grand Island Council Session - 9/22/2015 Page 136 / 287 1 RENEWABLE ENERGY CREDIT PURCHASE AND SALE AGREEMENT This Renewable Energy Credit Purchase and Sale Agreement (“Agreement”), dated ____________________________, 20___, is entered into by and between the CITY OF GRAND ISLAND, NEBRASKA, a municipal corporation and city of the first class organized and existing pursuant to Neb. Rev. Stat. §§ 16-101 et seq. (“GRAND ISLAND”), and the CITY OF NEBRASKA CITY, NEBRASKA, a municipal corporation and city of the ___ class organized and existing pursuant to Neb. Rev. Stat. §§ _____ et seq. (“BUYER”), and shall become effective on the Effective Date (as hereinafter defined). GRAND ISLAND and BUYER may be referred to individually herein as “Party” and collectively as “Parties.” WITNESSETH WHEREAS, Prairie Breeze Wind Energy III, LLC, a limited liability company organized and existing under the laws of the State of Delaware (“Wind Project”) is the owner and developer of a wind energy plant with an estimated name plate capacity of approximately 35.8 megawatts (MW) that Wind Project plans to construct in Antelope County, Nebraska (the “Plant”); and WHEREAS, GRAND ISLAND and Wind Project have entered into a Power Purchase Agreement (the “PPA”), pursuant to the terms of which GRAND ISLAND agrees to purchase from Wind Project, and Wind Project has agreed to sell to GRAND ISLAND, the entire electric energy output and environmental attributes generated by the Plant, and WHEREAS, the Parties desire to enter into an agreement for the sale by GRAND ISLAND and purchase by BUYER of certain of the environmental attributes associated with the Plant; and NOW, THEREFORE, in consideration of the premises, the mutual promises and agreements set forth herein and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Parties do hereby agree as follows: ARTICLE IARTICLE IDEFINITIONS The following definitions and any terms defined internally in the Agreement shall apply to the Agreement and all notices and communications made pursuant to the Agreement. 1.1 “Applicable Law” means any federal or state constitutional provision, law, statute, rule, regulation, order, decree, judgment or decision that is applicable to a Party to this Agreement or the transaction described herein. Grand Island Council Session - 9/22/2015 Page 137 / 287 2 1.2 “Business Day” means a day on which the Federal Reserve Member Banks in Nebraska are open for business, and a Business Day shall open at 8:00 a.m. and close at 5:00 p.m. local time in Grand Island, Nebraska. 1.3 “BUYER” means Nebraska City, Nebraska. 1.4 “Change in Law” means that after the date of this Agreement, an Applicable Law is amended, modified, nullified, suspended, repealed, found unconstitutional or unlawful, or changed or affected in any material respect by any Applicable Law. Change in Law does not include changes in federal or state income tax laws. Change in Law does include material changes in the interpretation of an Applicable Law. 1.5 "Effective Date" shall have the meaning set forth in Article VI. 1.6 “Environmental Attributes” means all those aspects, claims, characteristics, and benefits associated with the generation of one MWh of electricity by the Plant, other than the electricity produced, including allowances, certificates, emission credits and all other credits, offsets, green tags and all other tags, and all similar rights, in each case issued, recognized, created or otherwise resulting from the existence, ownership or operation of the Plant, the generation by the Plant of electricity using wind, and the sale and delivery of wind-generated electricity to GRAND ISLAND or into a regional electricity market. Environmental Attributes include, but shall not be limited to, those attributes that are created or recognized by regulations, statutes, or other action by a Governmental Authority, and include, but shall not be limited to, those attributes that can be used to 1) claim responsibility for the reduction of emissions and/or pollutants, 2) claim ownership of emission and/or pollutant reduction rights, 3) claim reduction or avoidance of emissions or pollutants, and 4) claim compliance with a renewable energy standard or renewable portfolio standard. Emissions and pollutants as referred to above include, but are not limited to, acid rain precursors, carbon dioxide, carbon monoxide, chlorinated hydrocarbons, greenhouse gases, mercury, metals, methane, nitrogen oxides, nitrogen-oxygen compounds, ozone precursors, particulate matter, sulfur dioxide, toxic air pollutants, other carbon and sulfur compounds, and similar or dissimilar pollutants, emissions, or contaminants of air, water or soil. Environmental Attributes do not include Production Tax Credits (PTCs), or any other tax credits or tax benefits, including accelerated depreciation, associated with the ownership or operation of the Plant or property and sales tax exemptions or benefits for which the Plant may be eligible. 1.7 “Force Majeure” shall mean any cause or causes not reasonably within the control and without the fault or negligence of the affected Party which wholly or partly prevents the performance of any of its obligations under this Agreement, including without limitation by enumeration, acts of God, act of the public enemy, acts of terrorism or threats thereof (or actions to prevent the same), blockades, Grand Island Council Session - 9/22/2015 Page 138 / 287 3 strikes or differences with workmen, civil disturbances, fires, explosions, storms, floods, landslides, washouts, labor and material shortages, boycotts, breakdowns of or damage to equipment or facilities and actions to prevent the same, interruptions to supply or delays in transportation, embargoes, inability to obtain or renew a necessary license, permit or approval, acts of military authorities, acts of local, state or federal agencies or regulatory bodies, court actions, bankruptcy court actions, arrests and restraints. Force Majeure does not include Change in Law, financial hardship or general economic or financial conditions. If an event defined as Force Majeure occurs, and the affected Party is unable to carry out any of its obligations under this Agreement, other than the obligation to pay money when due, then upon the affected Party giving written notice to the other Party of such Force Majeure, the affected Party’s obligations shall be suspended from and after the date of the Force Majeure specified in the notice to the extent made necessary by such Force Majeure and during its continuance. The notice shall specify in detail (to the extent known) the nature of the Force Majeure, the obligations which the affected Party is unable to perform or furnish due to Force Majeure, and the affected Party’s best estimate of the probable duration of the Force Majeure. The affected Party shall use commercially reasonable efforts to eliminate and cure such Force Majeure insofar as possible and with a minimum of delay, and to resume full performance of its obligations. 1.8 “Governmental Authority” means any federal or state judicial or regulatory entity exercising authority or jurisdiction under any Applicable Laws. 1.9 “MWh” means a megawatt hour of electricity. 1.10 “Person” means any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization, governmental authority or other entity, including the Parties. 1.11 "Plant" has the meaning set forth in the recitals. 1.12 “PPA” has the meaning set forth in the recitals. 1.13 "REC Cost" shall have the meaning set forth in Exhibit B1. 1.14 “REC Cost Adjustments” shall include the credits and other charges as are set forth in Exhibit B2. 1.15 “REC Settlement Amount” shall have the meaning as set forth on Exhibit B2. 1.16 “Renewable Energy Credit” or “REC” means an Environmental Attribute generated at the Plant. One REC represents the generation of one megawatt- hour (1 MWh) of wind energy produced by the Plant, based on the actual Grand Island Council Session - 9/22/2015 Page 139 / 287 4 measured MWh of generation delivered to GRAND ISLAND or into a regional electricity market. 1.17 “Southwest Power Pool Integrated Marketplace” or “SPP IM” means an organized wholesale electricity market operated by the Southwest Power Pool. Its dispatch process is centralized and is driven by market bids and offers to provide the optimum dispatch resource mix to serve load in SPP’s region. 1.18 “SPP” refers to the Southwest Power Pool, Inc., a regional transmission organization and reliability entity. Should GRAND ISLAND withdraw from the SPP or any of SPP’s functions be replaced by a successor entity or function, the requirements of such successor entity or function shall apply to this Agreement. 1.19 “SPP REC Cost Adjustment” means the collection and distillation of daily electricity sales, prices and charges in the SPP IM for the Wind Project Node based on SPP reports, an illustration and example of which is attached as Exhibit C. GRAND ISLAND shall deliver to BUYER on or before the 5th Business Day following the receipt of all such settlement information by GRAND ISLAND from SPP. 1.20 "Term" shall have the meaning set forth in Section 6.1. 1.21 “Wind Project” means Prairie Breeze Wind Energy III, LLC, a limited liability company organized and existing under the laws of the State of Delaware. 1.22 “Wind Project Node” means the Wind Project Node as designated by the Southwest Power Pool. ARTICLE IIARTICLE IIPRICE, DELIVERY, IDENTIFICATION, CERTIFICATION, PAYMENT AND TRANSFER OF RECS 2.1 Purchase and Sale of RECs. Under this Agreement, GRAND ISLAND agrees to sell and deliver, and BUYER agrees to purchase, approximately 19.55 percent (19.55%) of RECs generated at Wind Project on or after the Commercial Operation Date, reflecting seven megawatts (7 MW) of renewable energy. The price for the RECs shall be as set forth on Exhibit B1 hereto, and shall be adjusted pursuant to the formula and sample provided on Exhibit B2, the intent being that the price for the RECs will be offset by sales in the SPP IM. To the extent that the REC Settlement Amount is a negative number in favor of BUYER, GRAND ISLAND hereby agrees to either credit or pay BUYER such amount in accordance with Section 2.3 below. The energy commodity value associated with the sale and purchase of wind-generated electricity from the Plant is not included in the sale and purchase of RECs under this Agreement, and BUYER shall have no rights or claims with respect to such energy commodity value. In addition to paying for the RECs, BUYER shall pay its pro rata share of costs incurred by Grand Island Council Session - 9/22/2015 Page 140 / 287 5 GRAND ISLAND and its consultant to develop and manage GRAND ISLAND's participation in the SPP IM in connection with the Plant and the PPA. 2.2 Identification and Certification. RECs will be identified by the calendar year in which the individual RECs were generated. At BUYER's written request and sole cost, RECs shall be certified in accordance with the requirements and limitations of the Green-e® program administered by Center for Resource Solutions (CRS), or such other similar independent program in the retail market as is mutually agreed to in writing by the Parties. 2.3 Payment for RECs. 2.3.1 Payment to GRAND ISLAND. GRAND ISLAND shall issue monthly invoices to BUYER for the RECs sold pursuant to this Agreement. BUYER shall make electronic payment for the RECs within ten (10) Business Days after receipt of an invoice from GRAND ISLAND. BUYER shall make such payments to a bank account as designated from time to time by GRAND ISLAND. If the payment due date falls on a non-Business Day, payment shall be due the next Business Day. If the amount due is not paid within ten (10) Business Days, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to the Prime Rate plus two hundred (200) basis points. If the payment due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day. 2.3.2 Payment/Credit to BUYER. In the event of a credit due to BUYER under Section 2.1 hereof, GRAND ISLAND shall make electronic payment for the RECs within ten (10) Business Days after credit is issued; provided, however, if there is an unpaid balance due to GRAND ISLAND, GRAND ISLAND will apply the credit as a set-off against this unpaid balance and pay to BUYER the remainder of said credit, if any. For any credit due to BUYER, GRAND ISLAND shall make electronic payment to a bank account as designated from time to time by BUYER. If such payment due date falls on a non-Business Day, such due date shall be the next Business Day. GRAND ISLAND shall be entitled to conclusively presume, without any liability whatsoever, that the payment information furnished by BUYER (including name, financial institution, account numbers, payee, etc.) is accurate. If the amount due is not paid within ten (10) Business Days, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to the Prime Rate plus two hundred (200) basis points. If the payment due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day. Grand Island Council Session - 9/22/2015 Page 141 / 287 6 2.4 Title. The Parties understand and agree that GRAND ISLAND shall be responsible to deliver or provide title to BUYER for RECs (or the environmental attributes underlying the RECs) which GRAND ISLAND actually receives from Wind Project, but not otherwise. The Parties agree that GRAND ISLAND, in its sole discretion, shall 1) either make arrangements for the transfer of RECs directly from Wind Project to BUYER, or 2) upon delivery of the RECs from Wind Project, shall deliver a Renewable Attestation and Bill of Sale, in substantially the forms attached hereto as Exhibit A, to BUYER, within five (5) calendar days after receipt of payment by BUYER for the relevant REC invoice. Ownership of such REC shall transfer from GRAND ISLAND to BUYER upon BUYER’s payment of such REC invoice. Proof of title transfer or attestations may be disclosed by either Party to others, including the Center for Resource Solutions, to substantiate and verify GRAND ISLAND’s representations. 2.5 Taxes. GRAND ISLAND shall not be responsible for any taxes imposed on the creation, ownership, or transfer of a REC under this Agreement up to and including the time and place of its delivery. BUYER shall be responsible for any taxes imposed on the receipt or ownership of a RECs at or after the time and place of its delivery, and associated with transactions involving the RECs occurring subsequent to their delivery. Each Party will be responsible for the payment of any fees, including brokers fees, incurred by it in connection with any transactions hereunder. AARRTTIICCLLEE IIIIIIBUYER'S REVIEW RIGHTS 3.1 Review Rights. Within thirty (30) calendar days of request from BUYER, GRAND ISLAND shall make records and accounts relating to the purchase price paid by BUYER for RECs under this Agreement available to BUYER, or its designated agent, for review at GRAND ISLAND’s offices during GRAND ISLAND’s normal office hours. ARTICLE IVARTICLE IVREPRESENTATIONS, WARRANTIES AND COVENANTS 4.1 Representations, Warranties and Covenants of GRAND ISLAND. GRAND ISLAND hereby makes the following representations, warranties and covenants to BUYER as of the Effective Date: 4.1.1 GRAND ISLAND is a municipal corporation and political subdivision of the State of Nebraska duly organized, validly existing and in good standing under the laws of the State of Nebraska, and has the legal power and authority to conduct its business and to enter into this Agreement and carry out the transactions contemplated hereby and perform and carry out Grand Island Council Session - 9/22/2015 Page 142 / 287 7 all covenants and obligations on its part to be performed under and pursuant to this Agreement. 4.1.2 This Agreement constitutes a legal, valid and binding obligation of GRAND ISLAND, enforceable in accordance with its terms, except as enforceability may be limited by laws affecting the rights of creditors generally. 4.1.3 There is no pending, or to the knowledge of GRAND ISLAND, threatened action or proceeding affecting GRAND ISLAND before any Governmental Authority which purports to affect the legality, validity or enforceability of this Agreement as in effect on the date hereof. 4.1.4 There are no approvals, authorizations, consents, or other action required by any Governmental Authority necessary to authorize GRAND ISLAND’s execution and delivery of this Agreement. 4.1.5 The execution and performance of this Agreement does not conflict with or constitute a breach or default under any contract or agreement of any kind to which GRAND ISLAND is a party or any judgment, order, statute, or regulation that is applicable to GRAND ISLAND. 4.1.6 No amounts payable by BUYER to GRAND ISLAND under this Agreement shall in any way reimburse GRAND ISLAND for costs or expenses that GRAND ISLAND incurs or pays from and after the Effective Date for environmental improvements or upgrades to its generation assets other than the Plant. 4.2 Representations, Warranties and Covenants of BUYER. BUYER hereby makes the following representations, warranties and covenants to GRAND ISLAND as of the Effective Date: 4.2.1 BUYER is a municipal corporation and political subdivision of the State of Nebraska duly organized, validly existing and in good standing under the Laws of the State of Nebraska, and has the legal power and authority to conduct its business and to enter into this Agreement and carry out the transactions contemplated hereby and perform and carry out all covenants and obligations on its part to be performed under and pursuant to this Agreement. 4.2.2 BUYER is a governmental entity and is tax exempt under the Internal Revenue Code and the applicable regulations promulgated thereunder. 4.2.3 The execution, delivery and performance by BUYER of this Agreement have been duly authorized by all necessary action. Grand Island Council Session - 9/22/2015 Page 143 / 287 8 4.2.4 This Agreement constitutes the legal, valid and binding obligation of BUYER, enforceable in accordance with its terms, except as enforceability may be limited by laws affecting the rights of creditors generally. 4.2.5 There is no pending, or to the knowledge of BUYER, threatened action or proceeding affecting BUYER before any Governmental Authority which purports to affect the legality, validity or enforceability of this Agreement as in effect on the date hereof. 4.2.6 The execution and performance of this Agreement does not conflict with or constitute a breach or default under any contract or agreement of any kind to which BUYER is a party or any judgment, order, statute, or regulation that is applicable to BUYER. 4.2.7 There are no approvals, authorizations, consents, or other action required by any Governmental Authority necessary to authorize BUYER’s execution and delivery of this Agreement. ARTICLE VARTICLE VEVENTS OF DEFAULT; INDEMNIFICATION; LIMITATION OF LIABILITY 5.1 Events of Default by GRAND ISLAND. The following shall constitute an Event of Default by GRAND ISLAND: 5.1.1 GRAND ISLAND fails to make any undisputed payment due under this Agreement within thirty (30) days after such payment is due and fails to cure such default within twenty (20) days after written notice from BUYER. 5.1.2 GRAND ISLAND breaches any material obligation under this Agreement, and fails to cure such breach within thirty (30) days after written notification by BUYER of the breach. Provided however, that in the case of an Event of Default by GRAND ISLAND described herein, failure to complete the cure of such Default or breach within the thirty (30) day period after BUYER notice shall not constitute an Event of Default if the breach is not capable of being cured within thirty (30) days and GRAND ISLAND begins the cure within the thirty (30) day period and uses commercially reasonable efforts to cure the Default or breach within sixty (60) days (as extended for a Force Majeure event). 5.2 Events of Default by BUYER. The following shall each constitute an Event of Default by BUYER: Grand Island Council Session - 9/22/2015 Page 144 / 287 9 5.2.1 BUYER fails to make any undisputed payment due under this Agreement within thirty (30) days and for such payments due and fails to cure such default within twenty (20) days of the written notice from GRAND ISLAND. 5.2.2 BUYER breaches any other material obligation under this Agreement and fails to cure such breach within thirty (30) days after written notification by GRAND ISLAND of the breach. Provided, however, that in the case of an Event of Default by BUYER described above, failure to complete the cure of such Default or breach within the thirty (30) day period after GRAND ISLAND notice shall not constitute an Event of Default if the breach is not capable of being cured within thirty (30) days and BUYER begins the cure within the thirty (30) day period and uses commercially reasonable efforts to cure the default or breach within sixty (60) days (as extended for a Force Majeure event). 5.3 Termination for Cause. If any Event of Default as defined in Sections 5.1 or 5.2 has occurred, the non- defaulting Party may provide written notice to the defaulting Party specifying the basis for its belief that such event has occurred, and that the Agreement may be terminated unless the Event of Default is cured within thirty (30) days of the written notice of intent to terminate or such longer cure period as the Parties may agree. If the Event of Default has not been fully cured within the thirty (30) day cure period, or such longer cure period as the Parties might have agreed, then the non-defaulting Party may thereafter terminate this Agreement by providing written notice of termination. 5.4 Remedy. If either Party provides a notice of termination to the other under this Article V all provisions of this Agreement, and all rights and obligations of the Parties hereunder, will continue in full force and effect from and after the date of the notice of termination until the effective date of termination, including any right, remedy or liability resulting from nonperformance or other breach of the Agreement that occurs prior to the effective date of termination. If either Party terminates for cause, then such non-defaulting Party shall have no further obligations under this Agreement to the defaulting Party from and after the date of such termination. The right to terminate shall be the sole remedy of BUYER for an Event of Default that has not been cured by GRAND ISLAND as provided in this Article V. For GRAND ISLAND, the right to terminate set out in this Article V is in addition to any other right or remedy provided under this Agreement, or now or hereafter existing under Applicable Law with respect to obligations incurred by BUYER prior to the Event of Default, including but not limited to the right to recover damages for any failure by BUYER to make payment for RECs delivered by Grand Island Council Session - 9/22/2015 Page 145 / 287 Comment [A]: Discuss. 10 GRAND ISLAND, and the exercise of said rights shall not be deemed as a waiver or relinquishment by GRAND ISLAND of any of its other rights or remedies. 5.5 Indemnification. BUYER expressly agrees to indemnify, hold harmless and defend GRAND ISLAND against any and all claims, liability, costs or expenses (including reasonable attorneys’ fees and expenses) for (i) loss, damage or injury to Persons or property directly connected with or growing out of ownership or use of RECs after transfer of title therefor to BUYER, unless such loss, damage or injury is the result of bad faith, gross negligence, or reckless or willful misconduct of or attributable to GRAND ISLAND, and (ii) costs or charges for which BUYER is expressly responsible under this Agreement. 5.6 Limitation of Liability. 5.6.1 No Consequential or Indirect Damages. In no event shall either Party be liable under this Agreement to the other Party or any third party for any consequential, incidental, indirect, exemplary, special or punitive damages, including any damages for business interruptions, loss of use, revenue or profit, whether arising out of breach of contract, tort (including negligence) or otherwise, regardless of whether such damages were foreseeable and whether or not said other party was advised of the possibility of such damages. 5.6.2 Maximum Liability. In no event shall either Party’s aggregate liability arising out of or related to this Agreement as a result of an Event of Default, whether arising out of or related to breach of contract, tort (including negligence) or otherwise, exceed ________________________ Dollars ($__________). The foregoing limitation shall apply even if the non-breaching Party’s remedies under this Agreement fail of their essential purpose. ARTICLE VIARTICLE VITERM AND TERMINATION 6.1 This Agreement shall be contingent upon the execution of a PPA between GRAND ISLAND and the Wind Project, and the PPA remaining in effect to enable GRAND ISLAND to sell the RECs to BUYER. The “Effective Date” of this Agreement shall be the date first written above, and this Agreement shall become operable on the Commercial Operation Date, as defined under the PPA, and shall remain in effect for a term of twenty-five (25) years from the Commercial Operation Date (the “Term”) unless earlier terminated pursuant to the terms of this Agreement; provided further, in the event the PPA is terminated prior to completion of the Term or the Plant no longer is delivering energy to GRAND ISLAND or into a regional electricity market, this Agreement shall terminate concurrently with such event and shall be of no further force and effect. Grand Island Council Session - 9/22/2015 Page 146 / 287 11 ARTICLE VIIARTICLE VIICHANGE IN LAW 7.1 In the event there is a Change in Law that is applicable to (1) GRAND ISLAND’s ability to sell and purchase power in the Southwest Power Pool, (2) the operation of the Plant, (3) the generation of RECs produced by the Plant, (4) the sale or resale of RECs, or (5) any other obligation of either Party hereunder, and compliance with the Change in Law results in a material increase in such Party’s costs under this Agreement, the affected Party will promptly submit to the other Party a written notice setting forth (i) the applicable Change in Law; (ii) the manner in which such Change in Law increases such Party’s costs; and (iii) such Party’s proposed adjustment to the then applicable and future rates for REC sales under this Agreement to reflect such increases in costs. If the Parties are unable to agree to a proposed adjustment within ninety (90) days, then either Party may terminate this Agreement, without liability to the other Party. ARTICLE VIIIARTICLE VIIIMISCELLANEOUS 8.1 Notices. Notices, which may be given by facsimile with an original to follow via regular mail, shall be given as follows, or to such other address as may be provided by a Party from time to time in writing. All notices are effective upon receipt. GRAND ISLAND BUYER Notices: City of Grand Island Attention: Utilities Director City Hall 100 E. First St. Grand Island, NE 68801 Fax: 308-385-5488 Notices: _____________ _______________________ _______________________ _______________________ _______________________ Account Information for Electronic Payments: Electronic payment bank information to be provided, each Party to the other. Account Information for Electronic Payments: Electronic payment bank information to be provided each Party to the other. Grand Island Council Session - 9/22/2015 Page 147 / 287 12 8.2 Confidential Information. 8.2.1 Use of Confidential Information. During the course of this Agreement, the Parties may disclose to each other certain Confidential Information, by either oral or written communications. To constitute Confidential Information for purposes of this Agreement, the same shall be clearly so designated (if oral) or conspicuously so marked (if tangible) by the disclosing Party. The Parties hereby deem Exhibits B1 and B2 to constitute Confidential Information and otherwise not be subject to public disclosure, but the Agreement otherwise is not Confidential Information. These disclosures have been or will be made upon the basis of the confidential relationship between the Parties, and unless specifically authorized in writing by the other, the Parties will: 8.2.1.1 Use such Confidential Information solely for purposes contemplated by this Agreement; and 8.2.1.2 Promptly return to each other, upon request, any and all tangible material concerning such Confidential Information, including all copies and notes, or destroy the same and provide the other Party with a written statement that such destruction has occurred; provided that a Party may retain a copy with its attorney to show compliance with this Section. Under no circumstances shall any Confidential Information or copy thereof be retained, except with the express written approval of the owner of such Confidential Information. 8.2.2 Nondisclosure. Each Party agrees that it will use reasonable care to prevent unauthorized disclosure of Confidential Information. Neither Party will make any copies of Confidential Information that is in written or other tangible form except for use by authorized Persons with a need to know in connection with this Agreement (including contractors and subcontractors), and all Persons having access to Confidential Information shall have agreed to not permit unauthorized disclosure of Confidential Information. Each Party agrees not to distribute, disclose or disseminate Confidential Information in any way to anyone, except Persons who have such need to know (including contractors and subcontractors), or use Confidential Information for its own purpose not related to this Agreement. Each Party agrees that its disclosure of Confidential Information to a Person who has a need to know shall be limited to only so much of the Confidential Information as is necessary for that Person to perform his/her function in connection with the Confidential Information. Grand Island Council Session - 9/22/2015 Page 148 / 287 13 8.2.3 Exceptions. The obligations imposed in this Section 8.2 shall not apply to Confidential Information: 8.2.3.1 Which becomes available to the public through no wrongful act of the receiving Party; 8.2.3.2 Which is published or otherwise made available to the public prior to the date hereof; 8.2.3.3 Which is received from a third party without restriction known to the receiving Party and without breach of this Agreement; 8.2.3.4 Which is independently developed by the receiving Party; or 8.2.3.5 Which remains Confidential Information subject to Section 8.2, except that it must be disclosed to an owner, director, officer, employee or legal counsel of the disclosing Party, or to a Party’s outside accountants, auditors, rating agencies, financial advisors, legal counsel, actual or potential lenders, underwriters, BUYER lender, actual or potential purchasers of or investors in BUYER or the legal counsel or advisors of any thereof; or 8.2.3.6 Which must be disclosed pursuant to any law (including, but not limited to, the Nebraska Open Meetings Act and the Nebraska Public Records Act, Neb. Rev. Stat. § 84-712.01 et seq.). If disclosure is requested or demanded as to Confidential Information pursuant to any law, the Party receiving the request or demand shall provide the owner of such Confidential Information with prompt notice to enable the owner to seek protective legal remedies, and the receiving Party shall reasonably cooperate in connection therewith; or 8.2.3.7 Which is disclosed pursuant to a confidentiality agreement to which BUYER is a party. 8.3 Entire Agreement; Counterparts. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof. This Agreement may not be amended, changed, modified, or altered unless such amendment, change, modification, or alteration is in writing and signed by both Parties. This Agreement may be executed in counterparts, including by a facsimile transmission thereof, each of which is an original and all of which constitute one and the same instrument. 8.4 Assignment. This Agreement is binding on any successors and assigns of either Party. Neither Party may otherwise transfer or assign all or any part of this Grand Island Council Session - 9/22/2015 Page 149 / 287 14 Agreement, nor its rights or obligations hereunder, or otherwise dispose of any right, title, or interest herein, without the prior written consent of the other Party. 8.5 Successors and Assigns. This Agreement inures to the benefit of, and is binding upon, the Parties and their respective successors and permitted assigns. 8.6 Severability. If any provision of this Agreement is determined to be invalid, void or unenforceable by any court of competent jurisdiction, such determination shall not invalidate, void, or make unenforceable any other provision, agreement or covenant of this Agreement, provided the basic purposes of this Agreement and the benefits to the Parties are not substantially impaired. 8.7 No Prior Agreements. This Agreement completely and fully supersedes all other prior understandings or agreements, both written and oral, between the Parties relating to the subject matter hereof. 8.8 No Waiver. Waiver by a Party of any default by the other Party shall not be construed as a waiver of any other default, nor shall any delay by a Party in the exercise of any right under this Agreement be considered as a waiver or relinquishment thereof. 8.9 Headings. The headings used herein are for convenience and reference purposes only. 8.10 No Third-Party Beneficiaries. This Agreement confers no rights whatsoever upon any person other than the Parties and shall not create, or be interpreted as creating, any standard of care, duty or liability to any person not a Party hereto. 8.11 Negotiated Agreement. This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties. Therefore, doubtful or ambiguous provisions, if any, contained in this Agreement shall not be construed against the Party who physically drafted and prepared it. 8.12 Dispute Resolution. In the event of any dispute, controversy or claim arising under or relating to this Agreement, including the breach, termination or validity hereof and whether asserted in contract, in warranty, in tort, by statute or otherwise and whether for damages or any other relief (a “Dispute”), then, within ten (10) Days following the delivery date of a written request by either Party (a “Dispute Notice”), (i) each Party shall appoint a representative (individually, a “Party Representative”, together, the “Parties’ Representatives”), and (ii) the Parties’ Representatives shall meet, negotiate and attempt in good faith to resolve the Dispute quickly, informally and inexpensively. In the event the Parties’ Representatives cannot resolve the Dispute within thirty (30) Days of the Dispute Notice, then, within ten (10) Days following any request by either Party at any time thereafter, each Party Representative (I) shall independently prepare a Grand Island Council Session - 9/22/2015 Page 150 / 287 15 written summary of the Dispute describing the issues and claims, (II) shall exchange its summary with the summary of the Dispute prepared by the other Party Representative, and (III) shall submit a copy of both summaries to a senior officer of the Party Representative’s Party with authority to irrevocably bind the Party to a resolution of the Dispute. Within ten (10) Days after delivery of the Dispute summaries, the senior officers for both Parties shall begin negotiations in good faith to resolve the Dispute. Subject to the following paragraph of this Section, only if the Parties’ senior officers are unable to resolve the dispute within thirty (30) Days after delivery of the Dispute summaries, then the Parties shall be entitled to pursue any and all available remedies in law, equity and contract. The Parties agree that no statements of position or offers of settlement made in the course of such discussions or in such summaries shall be offered into evidence for any purpose in any litigation between the Parties, nor will any such statements or offers of settlement be used in any manner against either Party in any such litigation. Further, no such statements or offers of settlement shall constitute an admission or waiver of rights by either Party in connection with any such litigation. Notwithstanding the prior paragraph of this Section, even if the process specified in such paragraph has not yet been commenced or completed, either Party may apply to a court permitted by Section 8.13 for a temporary or preliminary injunction or other interim remedies. 8.13 Governing Law. This Agreement is deemed to have been effectively entered into in the State of Nebraska and it shall be governed by and construed under the laws of the State of Nebraska without giving effect to principles of conflicts of law that would otherwise cause the law of any state other than Nebraska to apply. The Parties agree that any action arising out of or related to this Agreement brought in any court by either Party against the other Party shall be brought only in the federal or state courts in and for the State of Nebraska. [Signature Page Follows] Grand Island Council Session - 9/22/2015 Page 151 / 287 16 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above. CITY OF GRAND ISLAND CITY OF NEBRASKA CITY BY: BY: NAME: NAME: TITLE: TITLE: 1314998.5 Grand Island Council Session - 9/22/2015 Page 152 / 287 Exhibit A, Page 1 EXHIBIT A BILL OF SALE; RENEWABLE ENERGY ATTESTATION Bill of Sale From City of Grand Island To ___________________________ KNOW ALL MEN BY THESE PRESENTS: FOR AND IN CONSIDERATION of the good and valuable consideration as provided for in the Renewable Energy Credit Purchase and Sale Agreement between City of Grand Island and _________________________________, dated effective _____________________, 20___, receipt of which is hereby acknowledged, City of Grand Island (hereinafter “GRAND ISLAND”), a public corporation and political subdivision of the State of Nebraska, does hereby sell, grant, convey, assign and deliver to ________________________________ (hereinafter “BUYER”), all of GRAND ISLAND’s right, title and interest in and to the Renewable Energy Credits, together with all rights, privileges and appurtenances to said Renewable Energy Credits in any way appertaining or belonging thereto, as set forth on the Renewable Attestation Form attached hereto. TO HAVE AND TO HOLD the above-described property unto BUYER, its successors and assigns forever. FURTHER, GRAND ISLAND hereby covenants with BUYER that it is the lawful owner of the Renewable Energy Credits described above, that the same are free and clear of all liens, encumbrances and security interests, that GRAND ISLAND has marketable title and good right and lawful authority to sell and deliver the same, and that GRAND ISLAND will defend the title thereto against the lawful claims of all persons whomsoever. Grand Island Council Session - 9/22/2015 Page 153 / 287 Exhibit A, Page 2 IN WITNESS WHEREOF, GRAND ISLAND has caused this Bill of Sale to be executed by its duly authorized representative. Dated this _____ day of ______________________, 20_____. CITY OF GRAND ISLAND By:___________________________ Title:___________________________ ________________________________ Witness STATE OF NEBRASKA ) ) ss. COUNTY OF HALL ) The execution of the foregoing Bill of Sale was acknowledged before me this ________ day of ____________________, 20_____, by _____________________ _____________________________, known to me to be the identical person whose name is affixed to the above Bill of Sale and an officer of City of Grand Island, a public corporation and political subdivision of the State of Nebraska, as the voluntary act and deed of said officer and said corporation. ________________________________ Notary Public My commission expires _______________________________. (NOTARY SEAL) Grand Island Council Session - 9/22/2015 Page 154 / 287 Exhibit A, Page 3 RENEWABLE ATTESTATION FROM WHOLESALE PROVIDER OF ELECTRICITY OR RECS I. Wholesale Provider Information Name of Wholesale Provider: __City of Grand Island____________________________________ Address of Provider: ______________________________________________________________________ Contact Person: ________________________________ Title: ____________________________________ Telephone: _____________ Fax: _________________ Email Address:_____________________________ II. Declaration I, (print name and title) _______________________________________ declare that the (indicate with “x”)1 ____ electricity bundled with renewable attributes / __x_ renewable attributes only2 listed below were sold exclusively from: (name of Wholesale Provider) _City of Grand Island _ (“Provider”) to: (name of REC provider, utility, or electric service provider) _________________________________ (“Purchaser”). I further declare that: 1) all the renewable attributes (including CO2 benefits), including any emissions offsets, reductions or claims, represented by the renewable electricity generation listed below were transferred to Purchaser; 2) to the best of my knowledge, the renewable attributes were not sold, marketed or otherwise claimed by a third party; 3) Provider sold the renewable attributes only once; 4) the renewable attributes or the electricity that was generated with the attributes was not used to meet any federal, state or local renewable energy requirement, renewable energy procurement, renewable portfolio standard, or other renewable energy mandate by Provider, nor, to the best of my knowledge, by any other entity; 5) the electrical energy that was generated with the attributes was not separately sold, separately marketed or otherwise separately represented as renewable energy by Provider, or, to the best of my knowledge, by any other entity; and 6) the facilities that generated all of the renewable electricity / renewable attributes (as indicated above) sold to Purchaser are listed below by fuel type. 1 Use separate forms to report electricity and REC sales. 2 If Provider purchased electricity bundled with renewable attributes and has stripped off those attributes to sell in this transaction, and is selling the undifferentiated electricity to a utility or load-serving entity, see section III also. Grand Island Council Session - 9/22/2015 Page 155 / 287 Exhibit A, Page 4 List the renewable MWhs sold or transferred to Purchaser identified below by quarter of generation as a separate line item. Generator Name Generator ID Number (EIA or QF) Nameplate Capacity (MW) Fuel Type (if biomass, be specific; i.e. Landfill Gas) # MWhs RECs / Elec. Sold First Date of Generator Operation (mm/yy)3 Period of Generation (quarter#/yy or mm/yy) Wind Project III. Additional Statement required of Provider selling electricity to Purchaser I declare that the electricity listed above was delivered into the NERC region(s) or ISO(s) in which the Generator(s) listed above are located. IV. Additional Statement required if Provider is selling only RECs to Purchaser and selling the associated electricity to a utility or load-serving entity Please write the name of the utility or load-serving entity here: __City of Grand Island ______ As an authorized agent of Provider, I attest that the above statements are true and correct. ____________________________________________ Signature Date ____________________________________________ Place of Execution This Attestation form is used by the Center for Resource Solutions to verify the accuracy of claims made by Participant renewable energy providers. 3 For facilities that have added new renewable capacity, please indicate the amount and operational date of the new capacity and the existing capacity. Grand Island Council Session - 9/22/2015 Page 156 / 287 Exhibit B1, Page 1 Grand Island Council Session - 9/22/2015 Page 157 / 287 Exhibit B2, Page 1 Grand Island Council Session - 9/22/2015 Page 158 / 287 Exhibit B2, Page 2 Grand Island Council Session - 9/22/2015 Page 159 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-256 WHEREAS, on June 9, 2015 Council approved execution of a Power Purchase Agreement (PPA) with Invenergy Inc., for the Prairie Breeze III Wind Energy Project; and WHEREAS, this PPA with Invenergy is for the entire capacity of the Project with the intent for subsequent participation agreements between the City of Grand Island and Nebraska City Utilities for minority position in the Project; and WHEREAS, energy generated from renewable sources such as wind are eligible to receive Renewable Energy Credits which document the energy created and then can be sold or traded to other parties and used for environmental compliance; and WHEREAS, the Utilities Department’s legal counsel for the Prairie Breeze III Project drafted a Renewable Energy Credit Purchase Agreement for the sale of approximately 19.55% of the output of this project from Grand Island to Nebraska City; and WHEREAS, the sale price to Nebraska City for the Renewable Energy Credits is that being paid by the City of Grand Island to Invenergy over the twenty year term of the PPA, plus the pro-rata share of any costs that may be incurred by the City as a result of marketing the energy to the electric regional system. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Renewable Energy Credit Agreement with Nebraska City, Nebraska, is approved, and the Mayor is hereby authorized to sign the Agreement on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 160 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-13 #2015-257 - Approving Renewable Energy Credit Agreement with Neligh, Nebraska Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 161 / 287 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:September 22, 2015 Subject:Renewable Energy Credit Agreement with Neligh Presenter(s):Timothy Luchsinger, Utilities Director Background On June 9, 2015 Council approved execution of a Power Purchase Agreement (PPA) with Invenergy Inc., for the Prairie Breeze III Wind Energy Project. This PPA with Invenergy is for the entire capacity of the Project with the intent for subsequent participation agreements between the City of Grand Island and the Nebraska City Utilities and the City of Neligh for minority positions in the Project. Discussion Energy generated from renewable sources such as wind are eligible to receive Renewable Energy Credits which document the energy created and then can be sold or traded to other parties and used for environmental compliance. The Utilities Department’s legal counsel for the Prairie Breeze III project, Fraser Stryker, drafted a Renewable Energy Credit Purchase Agreement for the sale of approximately 5.58% of the output of this project from Grand Island to Neligh. The sale price to Neligh for the Renewable Energy Credits is being paid by the City to Invenergy over the twenty year term of the PPA, plus the pro-rata share of any costs that may be incurred by the City as a result of marketing the energy to the electric regional system. The agreement is included the information for this item with the exclusion of the appendix with the pricing information, which is confidential based on the terms of the PPA. 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 - 9/22/2015 Page 162 / 287 4.Take no action on the issue Recommendation City Administration recommends that the Council authorize the Mayor to execute the Renewable Energy Credit Purchase and Sale Agreement between the City of Grand Island and the City of Neligh. Sample Motion Move to authorize the Mayor to execute the Renewable Energy Credit Purchase and Sale Agreement between the City of Grand Island and the City of Neligh. Grand Island Council Session - 9/22/2015 Page 163 / 287 GRAND ISLAND DRAFT 8.5.15 ____________________________________________________ RENEWABLE ENERGY CREDIT PURCHASE AND SALE AGREEMENT Between CITY OF GRAND ISLAND And CITY OF NELIGH __________________________________________ Grand Island Council Session - 9/22/2015 Page 164 / 287 i TABLE OF CONTENTS ARTICLE I - DEFINITIONS..........................................................................................................................1 ARTICLE II - PRICE, DELIVERY, IDENTIFICATION, CERTIFICATION, PAYMENT AND TRANSFER OF RECS ...................................................................................................4 2.1 Purchase and Sale of RECs........................................................................................................4 2.2 Identification and Certification .....................................................................................................4 2.3 Payment for RECs.......................................................................................................................4 2.4 Title..............................................................................................................................................5 2.5 Taxes...........................................................................................................................................5 ARTICLE III - BUYER'S REVIEW RIGHTS .................................................................................................5 3.1 Review Rights .............................................................................................................................5 ARTICLE IV - REPRESENTATIONS, WARRANTIES AND COVENANTS ................................................6 4.1 Representations, Warranties and Covenants of GRAND ISLAND..............................................6 4.2 Representations, Warranties and Covenants of BUYER ............................................................7 ARTICLE V - EVENTS OF DEFAULT; INDEMNIFICATION; LIMITATION OF LIABILITY ........................7 5.1 Events of Default by GRAND ISLAND ........................................................................................7 5.2 Events of Default by BUYER .......................................................................................................8 5.3 Termination for Cause.................................................................................................................8 5.4 Remedy .......................................................................................................................................9 5.5 Limitation of Liability....................................................................................................................9 ARTICLE VI - TERM AND TERMINATION................................................................................................10 ARTICLE VII - CHANGE IN LAW ..............................................................................................................10 ARTICLE VIII - MISCELLANEOUS ...........................................................................................................10 8.1 Notices ......................................................................................................................................10 8.2 Confidential Information ............................................................................................................11 8.3 Entire Agreement; Counterparts................................................................................................13 8.4 Assignment................................................................................................................................13 8.5 Successors and Assigns ...........................................................................................................13 8.6 Severability ................................................................................................................................13 8.7 No Prior Agreements.................................................................................................................13 8.8 No Waiver..................................................................................................................................13 8.9 Headings ...................................................................................................................................14 8.10 No Third-Party Beneficiaries .....................................................................................................14 8.11 Negotiated Agreement ..............................................................................................................14 8.12 Governing Law ..........................................................................................................................14 EXHIBITS EXHIBIT A Bill of Sale; Renewable Energy Attestation EXHIBIT B1 Contract Year Price Per REC EXHIBIT B2 REC Settlement Amount Grand Island Council Session - 9/22/2015 Page 165 / 287 1 RENEWABLE ENERGY CREDIT PURCHASE AND SALE AGREEMENT This Renewable Energy Credit Purchase and Sale Agreement (“Agreement”), dated ____________________________, 20___, is entered into by and between the CITY OF GRAND ISLAND, NEBRASKA, a municipal corporation and city of the first class organized and existing pursuant to Neb. Rev. Stat. §§ 16-101 et seq. (“GRAND ISLAND”), and the CITY OF NELIGH, NEBRASKA, a municipal corporation and city of the ___ class organized and existing pursuant to Neb. Rev. Stat. §§ _____ et seq. (“BUYER”), and shall become effective on the Effective Date (as hereinafter defined). GRAND ISLAND and BUYER may be referred to individually herein as “Party” and collectively as “Parties.” WITNESSETH WHEREAS, Prairie Breeze Wind Energy III, LLC, a limited liability company organized and existing under the laws of the State of Delaware (“Wind Project”) is the owner and developer of a wind energy plant with an estimated name plate capacity of approximately 35.8 megawatts (MW) that Wind Project plans to construct in Antelope County, Nebraska (the “Plant”); and WHEREAS, GRAND ISLAND and Wind Project have entered into a Power Purchase Agreement (the “PPA”), pursuant to the terms of which GRAND ISLAND agrees to purchase from Wind Project, and Wind Project has agreed to sell to GRAND ISLAND, the entire electric energy output and environmental attributes generated by the Plant, and WHEREAS, the Parties desire to enter into an agreement for the sale by GRAND ISLAND and purchase by BUYER of certain of the environmental attributes associated with the Plant; and NOW, THEREFORE, in consideration of the premises, the mutual promises and agreements set forth herein and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Parties do hereby agree as follows: ARTICLE IARTICLE IDEFINITIONS The following definitions and any terms defined internally in the Agreement shall apply to the Agreement and all notices and communications made pursuant to the Agreement. 1.1 “Applicable Law” means any federal or state constitutional provision, law, statute, rule, regulation, order, decree, judgment or decision that is applicable to a Party to this Agreement or the transaction described herein. Grand Island Council Session - 9/22/2015 Page 166 / 287 2 1.2 “Business Day” means a day on which the Federal Reserve Member Banks in Nebraska are open for business, and a Business Day shall open at 8:00 a.m. and close at 5:00 p.m. local time in Grand Island, Nebraska. 1.3 “BUYER” means Neligh, Nebraska. 1.4 “Change in Law” means that after the date of this Agreement, an Applicable Law is amended, modified, nullified, suspended, repealed, found unconstitutional or unlawful, or changed or affected in any material respect by any Applicable Law. Change in Law does not include changes in federal or state income tax laws. Change in Law does include material changes in the interpretation of an Applicable Law. 1.5 "Effective Date" shall have the meaning set forth in Article VI. 1.6 “Environmental Attributes” means all those aspects, claims, characteristics, and benefits associated with the generation of one MWh of electricity by the Plant, other than the electricity produced, including allowances, certificates, emission credits and all other credits, offsets, green tags and all other tags, and all similar rights, in each case issued, recognized, created or otherwise resulting from the existence, ownership or operation of the Plant, the generation by the Plant of electricity using wind, and the sale and delivery of wind-generated electricity to GRAND ISLAND or into a regional electricity market. Environmental Attributes include, but shall not be limited to, those attributes that are created or recognized by regulations, statutes, or other action by a Governmental Authority, and include, but shall not be limited to, those attributes that can be used to 1) claim responsibility for the reduction of emissions and/or pollutants, 2) claim ownership of emission and/or pollutant reduction rights, 3) claim reduction or avoidance of emissions or pollutants, and 4) claim compliance with a renewable energy standard or renewable portfolio standard. Emissions and pollutants as referred to above include, but are not limited to, acid rain precursors, carbon dioxide, carbon monoxide, chlorinated hydrocarbons, greenhouse gases, mercury, metals, methane, nitrogen oxides, nitrogen-oxygen compounds, ozone precursors, particulate matter, sulfur dioxide, toxic air pollutants, other carbon and sulfur compounds, and similar or dissimilar pollutants, emissions, or contaminants of air, water or soil. Environmental Attributes do not include Production Tax Credits (PTCs), or any other tax credits or tax benefits, including accelerated depreciation, associated with the ownership or operation of the Plant or property and sales tax exemptions or benefits for which the Plant may be eligible. 1.7 “Force Majeure” shall mean any cause or causes not reasonably within the control and without the fault or negligence of the affected Party which wholly or partly prevents the performance of any of its obligations under this Agreement, including without limitation by enumeration, acts of God, act of the public enemy, acts of terrorism or threats thereof (or actions to prevent the same), blockades, Grand Island Council Session - 9/22/2015 Page 167 / 287 3 strikes or differences with workmen, civil disturbances, fires, explosions, storms, floods, landslides, washouts, labor and material shortages, boycotts, breakdowns of or damage to equipment or facilities and actions to prevent the same, interruptions to supply or delays in transportation, embargoes, inability to obtain or renew a necessary license, permit or approval, acts of military authorities, acts of local, state or federal agencies or regulatory bodies, court actions, bankruptcy court actions, arrests and restraints. Force Majeure does not include Change in Law, financial hardship or general economic or financial conditions. If an event defined as Force Majeure occurs, and the affected Party is unable to carry out any of its obligations under this Agreement, other than the obligation to pay money when due, then upon the affected Party giving written notice to the other Party of such Force Majeure, the affected Party’s obligations shall be suspended from and after the date of the Force Majeure specified in the notice to the extent made necessary by such Force Majeure and during its continuance. The notice shall specify in detail (to the extent known) the nature of the Force Majeure, the obligations which the affected Party is unable to perform or furnish due to Force Majeure, and the affected Party’s best estimate of the probable duration of the Force Majeure. The affected Party shall use commercially reasonable efforts to eliminate and cure such Force Majeure insofar as possible and with a minimum of delay, and to resume full performance of its obligations. 1.8 “Governmental Authority” means any federal or state judicial or regulatory entity exercising authority or jurisdiction under any Applicable Laws. 1.9 “MWh” means a megawatt hour of electricity. 1.10 “Person” means any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization, governmental authority or other entity, including the Parties. 1.11 "Plant" has the meaning set forth in the recitals. 1.12 “PPA” has the meaning set forth in the recitals. 1.13 "REC Cost" shall have the meaning set forth in Exhibit B1. 1.14 “REC Cost Adjustments” shall include the credits and other charges as are set forth in Exhibit B2. 1.15 “REC Settlement Amount” shall have the meaning as set forth on Exhibit B2. 1.16 “Renewable Energy Credit” or “REC” means an Environmental Attribute generated at the Plant. One REC represents the generation of one megawatt- hour (1 MWh) of wind energy produced by the Plant, based on the actual Grand Island Council Session - 9/22/2015 Page 168 / 287 4 measured MWh of generation delivered to GRAND ISLAND or to a regional electricity market. 1.17 “Southwest Power Pool Integrated Marketplace” or “SPP IM” means an organized wholesale electricity market operated by the Southwest Power Pool. Its dispatch process is centralized and is driven by market bids and offers to provide the optimum dispatch resource mix to serve load in SPP’s region. 1.18 “SPP” refers to the Southwest Power Pool, Inc., a regional transmission organization and reliability entity. Should GRAND ISLAND withdraw from the SPP or any of SPP’s functions be replaced by a successor entity or function, the requirements of such successor entity or function shall apply to this Agreement. 1.19 “SPP REC Cost Adjustment” means the collection and distillation of daily electricity sales, prices and charges in the SPP IM for the Wind Project Node based on SPP reports, an illustration and example of which is attached as Exhibit C. GRAND ISLAND shall deliver to BUYER on or before the 5th Business Day following the receipt of all such settlement information by GRAND ISLAND from SPP. 1.20 "Term" shall have the meaning set forth in Section 6.1. 1.21 “Wind Project” means Prairie Breeze Wind Energy III, LLC, a limited liability company organized and existing under the laws of the State of Delaware. 1.22 “Wind Project Node” means the Wind Project Node as designated by the Southwest Power Pool. ARTICLE IIARTICLE IIPRICE, DELIVERY, IDENTIFICATION, CERTIFICATION, PAYMENT AND TRANSFER OF RECS 2.1 Purchase and Sale of RECs. Under this Agreement, GRAND ISLAND agrees to sell and deliver, and BUYER agrees to purchase, approximately 5.58 percent (5.58%) of RECs generated at Wind Project on or after the Commercial Operation Date, reflecting two megawatts (2 MW) of renewable energy. The price for the RECs shall be as set forth on Exhibit B1 hereto, and shall be adjusted pursuant to the formula and sample provided on Exhibit B2, the intent being that the price for the RECs will be offset by sales in the SPP IM. To the extent that the REC Settlement Amount is a negative number in favor of BUYER, GRAND ISLAND hereby agrees to either credit or pay BUYER such amount in accordance with Section 2.3 below. The energy commodity value associated with the sale and purchase of wind-generated electricity from the Plant is not included in the sale and purchase of RECs under this Agreement, and BUYER shall have no rights or claims with respect to such energy commodity value. In addition to paying for the RECs, BUYER shall pay its pro rata share of costs incurred by Grand Island Council Session - 9/22/2015 Page 169 / 287 5 GRAND ISLAND and its consultant to develop and manage GRAND ISLAND's participation in the SPP IM in connection with the Plant and the PPA. 2.2 Identification and Certification. RECs will be identified by the calendar year in which the individual RECs were generated. At BUYER's written request and sole cost, RECs shall be certified in accordance with the requirements and limitations of the Green-e® program administered by Center for Resource Solutions (CRS), or such other similar independent program in the retail market as is mutually agreed to in writing by the Parties. 2.3 Payment for RECs. 2.3.1 Payment to GRAND ISLAND. GRAND ISLAND shall issue monthly invoices to BUYER for the RECs sold pursuant to this Agreement. BUYER shall make electronic payment for the RECs within ten (10) Business Days after receipt of an invoice from GRAND ISLAND. BUYER shall make such payments to a bank account as designated from time to time by GRAND ISLAND. If the payment due date falls on a non-Business Day, payment shall be due the next Business Day. If the amount due is not paid within ten (10) Business Days, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to the Prime Rate plus two hundred (200) basis points. If the payment due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day. 2.3.2 Payment/Credit to BUYER. In the event of a credit due to BUYER under Section 2.1 hereof, GRAND ISLAND shall make electronic payment for the RECs within ten (10) Business Days after credit is issued; provided, however, if there is an unpaid balance due to GRAND ISLAND, GRAND ISLAND will apply the credit as a set-off against this unpaid balance and pay to BUYER the remainder of said credit, if any. For any credit due to BUYER, GRAND ISLAND shall make electronic payment to a bank account as designated from time to time by BUYER. If such payment due date falls on a non-Business Day, such due date shall be the next Business Day. GRAND ISLAND shall be entitled to conclusively presume, without any liability whatsoever, that the payment information furnished by BUYER (including name, financial institution, account numbers, payee, etc.) is accurate. If the amount due is not paid within ten (10) Business Days, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to the Prime Rate plus two hundred (200) basis points. If the payment due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day. Grand Island Council Session - 9/22/2015 Page 170 / 287 6 2.4 Title. The Parties understand and agree that GRAND ISLAND shall be responsible to deliver or provide title to BUYER for RECs (or the environmental attributes underlying the RECs) which GRAND ISLAND actually receives from Wind Project, but not otherwise. The Parties agree that GRAND ISLAND, in its sole discretion, shall 1) either make arrangements for the transfer of RECs directly from Wind Project to BUYER, or 2) upon delivery of the RECs from Wind Project, shall deliver a Renewable Attestation and Bill of Sale, in substantially the forms attached hereto as Exhibit A, to BUYER, within five (5) calendar days after receipt of payment by BUYER for the relevant REC invoice. Ownership of such REC shall transfer from GRAND ISLAND to BUYER upon BUYER’s payment of such REC invoice. Proof of title transfer or attestations may be disclosed by either Party to others, including the Center for Resource Solutions, to substantiate and verify GRAND ISLAND’s representations. 2.5 Taxes. GRAND ISLAND shall not be responsible for any taxes imposed on the creation, ownership, or transfer of a REC under this Agreement up to and including the time and place of its delivery. BUYER shall be responsible for any taxes imposed on the receipt or ownership of a RECs at or after the time and place of its delivery, and associated with transactions involving the RECs occurring subsequent to their delivery. Each Party will be responsible for the payment of any fees, including brokers fees, incurred by it in connection with any transactions hereunder. AARRTTIICCLLEE IIIIIIBUYER'S REVIEW RIGHTS 3.1 Review Rights. Within thirty (30) calendar days of request from BUYER, GRAND ISLAND shall make records and accounts relating to the purchase price paid by BUYER for RECs under this Agreement available to BUYER, or its designated agent, for review at GRAND ISLAND’s offices during GRAND ISLAND’s normal office hours. ARTICLE IVARTICLE IVREPRESENTATIONS, WARRANTIES AND COVENANTS 4.1 Representations, Warranties and Covenants of GRAND ISLAND. GRAND ISLAND hereby makes the following representations, warranties and covenants to BUYER as of the Effective Date: 4.1.1 GRAND ISLAND is a municipal corporation and political subdivision of the State of Nebraska duly organized, validly existing and in good standing under the laws of the State of Nebraska, and has the legal power and authority to conduct its business and to enter into this Agreement and carry out the transactions contemplated hereby and perform and carry out Grand Island Council Session - 9/22/2015 Page 171 / 287 7 all covenants and obligations on its part to be performed under and pursuant to this Agreement. 4.1.2 This Agreement constitutes a legal, valid and binding obligation of GRAND ISLAND, enforceable in accordance with its terms, except as enforceability may be limited by laws affecting the rights of creditors generally. 4.1.3 There is no pending, or to the knowledge of GRAND ISLAND, threatened action or proceeding affecting GRAND ISLAND before any Governmental Authority which purports to affect the legality, validity or enforceability of this Agreement as in effect on the date hereof. 4.1.4 There are no approvals, authorizations, consents, or other action required by any Governmental Authority necessary to authorize GRAND ISLAND’s execution and delivery of this Agreement. 4.1.5 The execution and performance of this Agreement does not conflict with or constitute a breach or default under any contract or agreement of any kind to which GRAND ISLAND is a party or any judgment, order, statute, or regulation that is applicable to GRAND ISLAND. 4.1.6 No amounts payable by BUYER to GRAND ISLAND under this Agreement shall in any way reimburse GRAND ISLAND for costs or expenses that GRAND ISLAND incurs or pays from and after the Effective Date for environmental improvements or upgrades to its generation assets other than the Plant. 4.2 Representations, Warranties and Covenants of BUYER. BUYER hereby makes the following representations, warranties and covenants to GRAND ISLAND as of the Effective Date: 4.2.1 BUYER is a municipal corporation and political subdivision of the State of Nebraska duly organized, validly existing and in good standing under the Laws of the State of Nebraska, and has the legal power and authority to conduct its business and to enter into this Agreement and carry out the transactions contemplated hereby and perform and carry out all covenants and obligations on its part to be performed under and pursuant to this Agreement. 4.2.2 BUYER is a governmental entity and is tax exempt under the Internal Revenue Code and the applicable regulations promulgated thereunder. 4.2.3 The execution, delivery and performance by BUYER of this Agreement have been duly authorized by all necessary action. Grand Island Council Session - 9/22/2015 Page 172 / 287 8 4.2.4 This Agreement constitutes the legal, valid and binding obligation of BUYER, enforceable in accordance with its terms, except as enforceability may be limited by laws affecting the rights of creditors generally. 4.2.5 There is no pending, or to the knowledge of BUYER, threatened action or proceeding affecting BUYER before any Governmental Authority which purports to affect the legality, validity or enforceability of this Agreement as in effect on the date hereof. 4.2.6 The execution and performance of this Agreement does not conflict with or constitute a breach or default under any contract or agreement of any kind to which BUYER is a party or any judgment, order, statute, or regulation that is applicable to BUYER. 4.2.7 There are no approvals, authorizations, consents, or other action required by any Governmental Authority necessary to authorize BUYER’s execution and delivery of this Agreement. ARTICLE VARTICLE VEVENTS OF DEFAULT; INDEMNIFICATION; LIMITATION OF LIABILITY 5.1 Events of Default by GRAND ISLAND. The following shall constitute an Event of Default by GRAND ISLAND: 5.1.1 GRAND ISLAND fails to make any undisputed payment due under this Agreement within thirty (30) days after such payment is due and fails to cure such default within twenty (20) days after written notice from BUYER. 5.1.2 GRAND ISLAND breaches any material obligation under this Agreement, and fails to cure such breach within thirty (30) days after written notification by BUYER of the breach. Provided however, that in the case of an Event of Default by GRAND ISLAND described herein, failure to complete the cure of such Default or breach within the thirty (30) day period after BUYER notice shall not constitute an Event of Default if the breach is not capable of being cured within thirty (30) days and GRAND ISLAND begins the cure within the thirty (30) day period and uses commercially reasonable efforts to cure the Default or breach within sixty (60) days (as extended for a Force Majeure event). 5.2 Events of Default by BUYER. The following shall each constitute an Event of Default by BUYER: Grand Island Council Session - 9/22/2015 Page 173 / 287 9 5.2.1 BUYER fails to make any undisputed payment due under this Agreement within thirty (30) days and for such payments due and fails to cure such default within twenty (20) days of the written notice from GRAND ISLAND. 5.2.2 BUYER breaches any other material obligation under this Agreement and fails to cure such breach within thirty (30) days after written notification by GRAND ISLAND of the breach. Provided, however, that in the case of an Event of Default by BUYER described above, failure to complete the cure of such Default or breach within the thirty (30) day period after GRAND ISLAND notice shall not constitute an Event of Default if the breach is not capable of being cured within thirty (30) days and BUYER begins the cure within the thirty (30) day period and uses commercially reasonable efforts to cure the default or breach within sixty (60) days (as extended for a Force Majeure event). 5.3 Termination for Cause. If any Event of Default as defined in Sections 5.1 or 5.2 has occurred, the non- defaulting Party may provide written notice to the defaulting Party specifying the basis for its belief that such event has occurred, and that the Agreement may be terminated unless the Event of Default is cured within thirty (30) days of the written notice of intent to terminate or such longer cure period as the Parties may agree. If the Event of Default has not been fully cured within the thirty (30) day cure period, or such longer cure period as the Parties might have agreed, then the non-defaulting Party may thereafter terminate this Agreement by providing written notice of termination. 5.4 Remedy. If either Party provides a notice of termination to the other under this Article V all provisions of this Agreement, and all rights and obligations of the Parties hereunder, will continue in full force and effect from and after the date of the notice of termination until the effective date of termination, including any right, remedy or liability resulting from nonperformance or other breach of the Agreement that occurs prior to the effective date of termination. If either Party terminates for cause, then such non-defaulting Party shall have no further obligations under this Agreement to the defaulting Party from and after the date of such termination. The right to terminate shall be the sole remedy of BUYER for an Event of Default that has not been cured by GRAND ISLAND as provided in this Article V. For GRAND ISLAND, the right to terminate set out in this Article V is in addition to any other right or remedy provided under this Agreement, or now or hereafter existing under Applicable Law with respect to obligations incurred by BUYER prior to the Event of Default, including but not limited to the right to recover damages for any failure by BUYER to make payment for RECs delivered by Grand Island Council Session - 9/22/2015 Page 174 / 287 Comment [A]: Discuss. 10 GRAND ISLAND, and the exercise of said rights shall not be deemed as a waiver or relinquishment by GRAND ISLAND of any of its other rights or remedies. 5.5 Indemnification. BUYER expressly agrees to indemnify, hold harmless and defend GRAND ISLAND against any and all claims, liability, costs or expenses (including reasonable attorneys’ fees and expenses) for (i) loss, damage or injury to Persons or property directly connected with or growing out of ownership or use of RECs after transfer of title therefor to BUYER, unless such loss, damage or injury is the result of bad faith, gross negligence, or reckless or willful misconduct of or attributable to GRAND ISLAND, and (ii) costs or charges for which BUYER is expressly responsible under this Agreement. 5.6 Limitation of Liability. 5.6.1 No Consequential or Indirect Damages. In no event shall either Party be liable under this Agreement to the other Party or any third party for any consequential, incidental, indirect, exemplary, special or punitive damages, including any damages for business interruptions, loss of use, revenue or profit, whether arising out of breach of contract, tort (including negligence) or otherwise, regardless of whether such damages were foreseeable and whether or not said other party was advised of the possibility of such damages. 5.6.2 Maximum Liability. In no event shall either Party’s aggregate liability arising out of or related to this Agreement as a result of an Event of Default, whether arising out of or related to breach of contract, tort (including negligence) or otherwise, exceed ________________________ Dollars ($__________). The foregoing limitation shall apply even if the non-breaching Party’s remedies under this Agreement fail of their essential purpose. ARTICLE VIARTICLE VITERM AND TERMINATION 6.1 This Agreement shall be contingent upon the execution of a PPA between GRAND ISLAND and the Wind Project, and the PPA remaining in effect to enable GRAND ISLAND to sell the RECs to BUYER. The “Effective Date” of this Agreement shall be the date first written above, and this Agreement shall become operable on the Commercial Operation Date, as defined under the PPA, and shall remain in effect for a term of twenty-five (25) years from the Commercial Operation Date (the “Term”) unless earlier terminated pursuant to the terms of this Agreement; provided further, in the event the PPA is terminated prior to completion of the Term or the Plant no longer is delivering energy to GRAND ISLAND or a regional electricity market, this Agreement shall terminate concurrently with such event and shall be of no further force and effect. Grand Island Council Session - 9/22/2015 Page 175 / 287 11 ARTICLE VIIARTICLE VIICHANGE IN LAW 7.1 In the event there is a Change in Law that is applicable to (1) GRAND ISLAND’s ability to sell and purchase power in the Southwest Power Pool, (2) the operation of the Plant, (3) the generation of RECs produced by the Plant, (4) the sale or resale of RECs, or (5) any other obligation of either Party hereunder, and compliance with the Change in Law results in a material increase in such Party’s costs under this Agreement, the affected Party will promptly submit to the other Party a written notice setting forth (i) the applicable Change in Law; (ii) the manner in which such Change in Law increases such Party’s costs; and (iii) such Party’s proposed adjustment to the then applicable and future rates for REC sales under this Agreement to reflect such increases in costs. If the Parties are unable to agree to a proposed adjustment within ninety (90) days, then either Party may terminate this Agreement, without liability to the other Party. ARTICLE VIIIARTICLE VIIIMISCELLANEOUS 8.1 Notices. Notices, which may be given by facsimile with an original to follow via regular mail, shall be given as follows, or to such other address as may be provided by a Party from time to time in writing. All notices are effective upon receipt. GRAND ISLAND BUYER Notices: City of Grand Island Attention: Utilities Director City Hall 100 E. First St. Grand Island, NE 68801 Fax: 308-385-5488 Notices: _____________ _______________________ _______________________ _______________________ _______________________ Account Information for Electronic Payments: Electronic payment bank information to be provided, each Party to the other. Account Information for Electronic Payments: Electronic payment bank information to be provided each Party to the other. Grand Island Council Session - 9/22/2015 Page 176 / 287 12 8.2 Confidential Information. 8.2.1 Use of Confidential Information. During the course of this Agreement, the Parties may disclose to each other certain Confidential Information, by either oral or written communications. To constitute Confidential Information for purposes of this Agreement, the same shall be clearly so designated (if oral) or conspicuously so marked (if tangible) by the disclosing Party. The Parties hereby deem Exhibits B1 and B2 to constitute Confidential Information and otherwise not be subject to public disclosure, but the Agreement otherwise is not Confidential Information. These disclosures have been or will be made upon the basis of the confidential relationship between the Parties, and unless specifically authorized in writing by the other, the Parties will: 8.2.1.1 Use such Confidential Information solely for purposes contemplated by this Agreement; and 8.2.1.2 Promptly return to each other, upon request, any and all tangible material concerning such Confidential Information, including all copies and notes, or destroy the same and provide the other Party with a written statement that such destruction has occurred; provided that a Party may retain a copy with its attorney to show compliance with this Section. Under no circumstances shall any Confidential Information or copy thereof be retained, except with the express written approval of the owner of such Confidential Information. 8.2.2 Nondisclosure. Each Party agrees that it will use reasonable care to prevent unauthorized disclosure of Confidential Information. Neither Party will make any copies of Confidential Information that is in written or other tangible form except for use by authorized Persons with a need to know in connection with this Agreement (including contractors and subcontractors), and all Persons having access to Confidential Information shall have agreed to not permit unauthorized disclosure of Confidential Information. Each Party agrees not to distribute, disclose or disseminate Confidential Information in any way to anyone, except Persons who have such need to know (including contractors and subcontractors), or use Confidential Information for its own purpose not related to this Agreement. Each Party agrees that its disclosure of Confidential Information to a Person who has a need to know shall be limited to only so much of the Confidential Information as is necessary for that Person to perform his/her function in connection with the Confidential Information. Grand Island Council Session - 9/22/2015 Page 177 / 287 13 8.2.3 Exceptions. The obligations imposed in this Section 8.2 shall not apply to Confidential Information: 8.2.3.1 Which becomes available to the public through no wrongful act of the receiving Party; 8.2.3.2 Which is published or otherwise made available to the public prior to the date hereof; 8.2.3.3 Which is received from a third party without restriction known to the receiving Party and without breach of this Agreement; 8.2.3.4 Which is independently developed by the receiving Party; or 8.2.3.5 Which remains Confidential Information subject to Section 8.2, except that it must be disclosed to an owner, director, officer, employee or legal counsel of the disclosing Party, or to a Party’s outside accountants, auditors, rating agencies, financial advisors, legal counsel, actual or potential lenders, underwriters, BUYER lender, actual or potential purchasers of or investors in BUYER or the legal counsel or advisors of any thereof; or 8.2.3.6 Which must be disclosed pursuant to any law (including, but not limited to, the Nebraska Open Meetings Act and the Nebraska Public Records Act, Neb. Rev. Stat. § 84-712.01 et seq.). If disclosure is requested or demanded as to Confidential Information pursuant to any law, the Party receiving the request or demand shall provide the owner of such Confidential Information with prompt notice to enable the owner to seek protective legal remedies, and the receiving Party shall reasonably cooperate in connection therewith; or 8.2.3.7 Which is disclosed pursuant to a confidentiality agreement to which BUYER is a party. 8.3 Entire Agreement; Counterparts. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof. This Agreement may not be amended, changed, modified, or altered unless such amendment, change, modification, or alteration is in writing and signed by both Parties. This Agreement may be executed in counterparts, including by a facsimile transmission thereof, each of which is an original and all of which constitute one and the same instrument. 8.4 Assignment. This Agreement is binding on any successors and assigns of either Party. Neither Party may otherwise transfer or assign all or any part of this Grand Island Council Session - 9/22/2015 Page 178 / 287 14 Agreement, nor its rights or obligations hereunder, or otherwise dispose of any right, title, or interest herein, without the prior written consent of the other Party. 8.5 Successors and Assigns. This Agreement inures to the benefit of, and is binding upon, the Parties and their respective successors and permitted assigns. 8.6 Severability. If any provision of this Agreement is determined to be invalid, void or unenforceable by any court of competent jurisdiction, such determination shall not invalidate, void, or make unenforceable any other provision, agreement or covenant of this Agreement, provided the basic purposes of this Agreement and the benefits to the Parties are not substantially impaired. 8.7 No Prior Agreements. This Agreement completely and fully supersedes all other prior understandings or agreements, both written and oral, between the Parties relating to the subject matter hereof. 8.8 No Waiver. Waiver by a Party of any default by the other Party shall not be construed as a waiver of any other default, nor shall any delay by a Party in the exercise of any right under this Agreement be considered as a waiver or relinquishment thereof. 8.9 Headings. The headings used herein are for convenience and reference purposes only. 8.10 No Third-Party Beneficiaries. This Agreement confers no rights whatsoever upon any person other than the Parties and shall not create, or be interpreted as creating, any standard of care, duty or liability to any person not a Party hereto. 8.11 Negotiated Agreement. This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties. Therefore, doubtful or ambiguous provisions, if any, contained in this Agreement shall not be construed against the Party who physically drafted and prepared it. 8.12 Dispute Resolution. In the event of any dispute, controversy or claim arising under or relating to this Agreement, including the breach, termination or validity hereof and whether asserted in contract, in warranty, in tort, by statute or otherwise and whether for damages or any other relief (a “Dispute”), then, within ten (10) Days following the delivery date of a written request by either Party (a “Dispute Notice”), (i) each Party shall appoint a representative (individually, a “Party Representative”, together, the “Parties’ Representatives”), and (ii) the Parties’ Representatives shall meet, negotiate and attempt in good faith to resolve the Dispute quickly, informally and inexpensively. In the event the Parties’ Representatives cannot resolve the Dispute within thirty (30) Days of the Dispute Notice, then, within ten (10) Days following any request by either Party at any time thereafter, each Party Representative (I) shall independently prepare a Grand Island Council Session - 9/22/2015 Page 179 / 287 15 written summary of the Dispute describing the issues and claims, (II) shall exchange its summary with the summary of the Dispute prepared by the other Party Representative, and (III) shall submit a copy of both summaries to a senior officer of the Party Representative’s Party with authority to irrevocably bind the Party to a resolution of the Dispute. Within ten (10) Days after delivery of the Dispute summaries, the senior officers for both Parties shall begin negotiations in good faith to resolve the Dispute. Subject to the following paragraph of this Section, only if the Parties’ senior officers are unable to resolve the dispute within thirty (30) Days after delivery of the Dispute summaries, then the Parties shall be entitled to pursue any and all available remedies in law, equity and contract. The Parties agree that no statements of position or offers of settlement made in the course of such discussions or in such summaries shall be offered into evidence for any purpose in any litigation between the Parties, nor will any such statements or offers of settlement be used in any manner against either Party in any such litigation. Further, no such statements or offers of settlement shall constitute an admission or waiver of rights by either Party in connection with any such litigation. Notwithstanding the prior paragraph of this Section, even if the process specified in such paragraph has not yet been commenced or completed, either Party may apply to a court permitted by Section 8.13 for a temporary or preliminary injunction or other interim remedies. 8.13 Governing Law. This Agreement is deemed to have been effectively entered into in the State of Nebraska and it shall be governed by and construed under the laws of the State of Nebraska without giving effect to principles of conflicts of law that would otherwise cause the law of any state other than Nebraska to apply. The Parties agree that any action arising out of or related to this Agreement brought in any court by either Party against the other Party shall be brought only in the federal or state courts in and for the State of Nebraska. [Signature Page Follows] Grand Island Council Session - 9/22/2015 Page 180 / 287 16 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above. CITY OF GRAND ISLAND CITY OF NELIGH BY: BY: NAME: NAME: TITLE: TITLE: 1331660.2 Grand Island Council Session - 9/22/2015 Page 181 / 287 Exhibit A, Page 1 EXHIBIT A BILL OF SALE; RENEWABLE ENERGY ATTESTATION Bill of Sale From City of Grand Island To ___________________________ KNOW ALL MEN BY THESE PRESENTS: FOR AND IN CONSIDERATION of the good and valuable consideration as provided for in the Renewable Energy Credit Purchase and Sale Agreement between City of Grand Island and _________________________________, dated effective _____________________, 20___, receipt of which is hereby acknowledged, City of Grand Island (hereinafter “GRAND ISLAND”), a public corporation and political subdivision of the State of Nebraska, does hereby sell, grant, convey, assign and deliver to ________________________________ (hereinafter “BUYER”), all of GRAND ISLAND’s right, title and interest in and to the Renewable Energy Credits, together with all rights, privileges and appurtenances to said Renewable Energy Credits in any way appertaining or belonging thereto, as set forth on the Renewable Attestation Form attached hereto. TO HAVE AND TO HOLD the above-described property unto BUYER, its successors and assigns forever. FURTHER, GRAND ISLAND hereby covenants with BUYER that it is the lawful owner of the Renewable Energy Credits described above, that the same are free and clear of all liens, encumbrances and security interests, that GRAND ISLAND has marketable title and good right and lawful authority to sell and deliver the same, and that GRAND ISLAND will defend the title thereto against the lawful claims of all persons whomsoever. Grand Island Council Session - 9/22/2015 Page 182 / 287 Exhibit A, Page 2 IN WITNESS WHEREOF, GRAND ISLAND has caused this Bill of Sale to be executed by its duly authorized representative. Dated this _____ day of ______________________, 20_____. CITY OF GRAND ISLAND By:___________________________ Title:___________________________ ________________________________ Witness STATE OF NEBRASKA ) ) ss. COUNTY OF HALL ) The execution of the foregoing Bill of Sale was acknowledged before me this ________ day of ____________________, 20_____, by _____________________ _____________________________, known to me to be the identical person whose name is affixed to the above Bill of Sale and an officer of City of Grand Island, a public corporation and political subdivision of the State of Nebraska, as the voluntary act and deed of said officer and said corporation. ________________________________ Notary Public My commission expires _______________________________. (NOTARY SEAL) Grand Island Council Session - 9/22/2015 Page 183 / 287 Exhibit A, Page 3 RENEWABLE ATTESTATION FROM WHOLESALE PROVIDER OF ELECTRICITY OR RECS I. Wholesale Provider Information Name of Wholesale Provider: __City of Grand Island____________________________________ Address of Provider: ______________________________________________________________________ Contact Person: ________________________________ Title: ____________________________________ Telephone: _____________ Fax: _________________ Email Address:_____________________________ II. Declaration I, (print name and title) _______________________________________ declare that the (indicate with “x”)1 ____ electricity bundled with renewable attributes / __x_ renewable attributes only2 listed below were sold exclusively from: (name of Wholesale Provider) _City of Grand Island _ (“Provider”) to: (name of REC provider, utility, or electric service provider) _________________________________ (“Purchaser”). I further declare that: 1) all the renewable attributes (including CO2 benefits), including any emissions offsets, reductions or claims, represented by the renewable electricity generation listed below were transferred to Purchaser; 2) to the best of my knowledge, the renewable attributes were not sold, marketed or otherwise claimed by a third party; 3) Provider sold the renewable attributes only once; 4) the renewable attributes or the electricity that was generated with the attributes was not used to meet any federal, state or local renewable energy requirement, renewable energy procurement, renewable portfolio standard, or other renewable energy mandate by Provider, nor, to the best of my knowledge, by any other entity; 5) the electrical energy that was generated with the attributes was not separately sold, separately marketed or otherwise separately represented as renewable energy by Provider, or, to the best of my knowledge, by any other entity; and 6) the facilities that generated all of the renewable electricity / renewable attributes (as indicated above) sold to Purchaser are listed below by fuel type. 1 Use separate forms to report electricity and REC sales. 2 If Provider purchased electricity bundled with renewable attributes and has stripped off those attributes to sell in this transaction, and is selling the undifferentiated electricity to a utility or load-serving entity, see section III also. Grand Island Council Session - 9/22/2015 Page 184 / 287 Exhibit A, Page 4 List the renewable MWhs sold or transferred to Purchaser identified below by quarter of generation as a separate line item. Generator Name Generator ID Number (EIA or QF) Nameplate Capacity (MW) Fuel Type (if biomass, be specific; i.e. Landfill Gas) # MWhs RECs / Elec. Sold First Date of Generator Operation (mm/yy)3 Period of Generation (quarter#/yy or mm/yy) Wind Project III. Additional Statement required of Provider selling electricity to Purchaser I declare that the electricity listed above was delivered into the NERC region(s) or ISO(s) in which the Generator(s) listed above are located. IV. Additional Statement required if Provider is selling only RECs to Purchaser and selling the associated electricity to a utility or load-serving entity Please write the name of the utility or load-serving entity here: __City of Grand Island ______ As an authorized agent of Provider, I attest that the above statements are true and correct. ____________________________________________ Signature Date ____________________________________________ Place of Execution This Attestation form is used by the Center for Resource Solutions to verify the accuracy of claims made by Participant renewable energy providers. 3 For facilities that have added new renewable capacity, please indicate the amount and operational date of the new capacity and the existing capacity. Grand Island Council Session - 9/22/2015 Page 185 / 287 Exhibit B2, Page 1 Grand Island Council Session - 9/22/2015 Page 186 / 287 Exhibit B2, Page 2 Grand Island Council Session - 9/22/2015 Page 187 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-257 WHEREAS, on June 9, 2015 Council approved execution of a Power Purchase Agreement (PPA) with Invenergy Inc., for the Prairie Breeze III Wind Energy Project; and WHEREAS, this PPA with Invenergy is for the entire capacity of the Project with the intent for subsequent participation agreements between the City of Grand Island and the City of Neligh for minority position in the Project; and WHEREAS, the energy generated from renewable sources such as wind are eligible to receive Renewable Energy Credits which document the energy created and then can be sold or traded to other parties and used for environmental compliance; and WHEREAS, the Utilities Department’s legal counsel for the Prairie Breeze III Project drafted a Renewable Energy Credit Purchase Agreement for the sale of approximately 5.58% of the output of this project from Grand Island to Neligh; and WHEREAS, the sale price to Neligh for the Renewable Energy Credits is that being paid by the City of Grand Island to Invenergy over the twenty year term of the PPA, plus the pro-rata share of any costs that may be incurred by the City as a result of marketing the energy to the electric regional system. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Renewable Energy Credit Agreement with Neligh, Nebraska, is approved, and the Mayor is hereby authorized to sign the Agreement on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 188 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-14 #2015-258 - Approving First Amendment to the License Agreement with Unite Private Network Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 189 / 287 Council Agenda Memo From:Tim Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:September 22, 2015 Subject:License Agreement Amendment with Unite Private Networks for Power Pole Attachments Presenter(s):Tim Luchsinger, Utilities Director Background On May 12, 2009 a License Agreement was approved by City Council with Unite Private Networks to allow for various utility pole attachments across the City for fiber optic cable installation. This agreement is similar to what is in place with other providers of cable service. Discussion In July, 2015 Unite Private Networks approached the Grand Island Utilities Department about installing several small cell network antennae to utility poles to expand the capacity of their cell network in Grand Island. Similar projects have been completed in Omaha and Lincoln. An amendment to the existing agreement is necessary since this involves equipment that is above and beyond the scope of the original agreement. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to a future date 4. Take no action on the issue Grand Island Council Session - 9/22/2015 Page 190 / 287 Recommendation City Administration recommends that the Council approve the License Agreement Amendment with Unite Private Networks for Power Pole Attachments. Sample Motion Move to approve the License Agreement Amendment with Unite Private Networks for Power Pole Attachments. Grand Island Council Session - 9/22/2015 Page 191 / 287 Grand Island Council Session - 9/22/2015 Page 192 / 287 Grand Island Council Session - 9/22/2015 Page 193 / 287 Grand Island Council Session - 9/22/2015 Page 194 / 287 Grand Island Council Session - 9/22/2015 Page 195 / 287 Grand Island Council Session - 9/22/2015 Page 196 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-258 WHEREAS, on May 12, 2009 City Council approved a License Agreement with Unite Private Networks to allow for various utility pole attachments across the City for fiber optic cable installation; and WHEREAS, in July, 2015 Unite Private approached Grand Island Utilities concerning the installation of several small cell network antennae to utility poles to expand the capacity of their cell network in Grand Island; and WHEREAS; an amendment to the existing agreement is necessary since this involves equipment that is above and beyond the scope of the original agreement, and WHEREAS; the Legal Department has reviewed and approved the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the First Amendment to the License Agreement with Unite Private Network is approved, and the Mayor is hereby authorized to sign the Amendment on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 197 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-15 #2015-259 - Approving Acquisition of Public Utility Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S- 4(Grudzinski & Solorzano) This item relates to the aforementioned Public Hearing item E-5. Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 198 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-259 WHEREAS, public utility easements are required by the City of Grand Island, from affected property owners for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4, described as follows: Owner Legal Total TIMOTHY & CASSANDRA GRUDZINSKI THE SOUTH 15.00 FEET AND THE WEST 15.00 FEET OF THE SOUTH 195.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 20009426, FILE DATE OCTOBER 31, 2000, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 3,690 SQUARE FEET OR 0.085 ACRES MORE OR LESS, AS SHOWN ON THE TRACT DRAWING DATED 09/01/2015, MARKED EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. $750.00 REINIER SOLORZANO THE SOUTH 15.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 201405380, FILE DATE AUGUST 29, 2014, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 990 SQURE FEET OR 0.023 ACRES MORE OR LESS, AS SHOWN ON THE TRACT DRAWING DATED 09/01/2015, MARKED EXHIBIT C ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. $250.00 $1,000.00 WHEREAS, agreements for the public utility easements have 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 agreements for the public utility easements on the above described tracts of land, in the total amount of $1,000.00. 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, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 199 / 287 Grand Island Council Session - 9/22/2015 Page 200 / 287 Grand Island Council Session - 9/22/2015 Page 201 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-16 #2015-260 - Approving Temporary Construction Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Grudzinski & Solorzano) Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 202 / 287 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:September 22, 2015 Subject:Approving Temporary Construction Easement for the North Interceptor Phase II; Sanitary Sewer Project No. 2013-S-4 (Grudzinski & Solorzano) 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 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) A Temporary Construction easement from two (2) property owners is necessary for Phase II, Part A of this project to be completed, which must be approved by City Council. A sketch is attached to show the temporary construction easement areas. Grand Island Council Session - 9/22/2015 Page 203 / 287 Discussion Temporary construction easements in the total amount of $1,000.00 are needed from two (2) property owners for Phase II, Part A to be constructed. Authorization of the documents and payment to the property owners is contingent upon City Council approval. All documents have been signed and returned by the property owners. 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 Agreements between the City of Grand Island, Public Works Department and the affected property owners for North Interceptor Phase II, Part A; Sanitary Sewer Project No. 2013-S-4, in the total amount of $1,000.00. Sample Motion Move to approve the temporary construction easements. Grand Island Council Session - 9/22/2015 Page 204 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-260 WHEREAS, temporary construction easements are required by the City of Grand Island, from Timothy & Cassandra Grudzinski and Reinier Solorzano, in the North Interceptor Phase II, Part A; Sanitary Sewer Project No. 2013-S-4 project area: Timothy & Cassandra Grudzinski - $750.00 THE EAST 25.00 FEET OF THE WEST 40.00 FEET EXCEPT THE SOUTH 15.00 FEET AND THE NORTH 25.00 FEET OF THE SOUTH 40.00 FEET, EXCEPT THE WEST 15.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 20009426, FILE DATE OCTOBER 31, 2000, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCUALTED AREA OF 5,133 SQUARE FEET OR 0.118 ACRES MORE OR LESS. Reinier Solorzano - $250.00 THE NORTH 25.00 FEET OF THE SOUTH 40.00 FEET THEREOF, OF A TRACT DESCRIBED IN INSTRUMENT NO. 201405380, FILE DATE AUGUST 29, 2014, REGISTER OF DEEDS, IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA. SAID TRACT CONTAINS A CALCULATED AREA OF 1,650 SQUARE FEET OR 0.038 ACRES MORE OR LESS. WHEREAS, Agreements for the Temporary Construction easements have 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 Agreements for the Temporary Construction easements on the above described tract of land, in the amount of $1,000.00. 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, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 205 / 287 Grand Island Council Session - 9/22/2015 Page 206 / 287 Grand Island Council Session - 9/22/2015 Page 207 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-17 #2015-261 - Approving Certificate of Final Completion and Scheduling the Board of Equalization for Water Service Lowering for 219 East Charles Street Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 208 / 287 Council Agenda Memo From:Terry Brown PE, Assistant Public Works Director Meeting:September 22, 2015 Subject:Approving Certificate of Final Completion and Scheduling the Board of Equalization for Water Service Lowering for 219 East Charles Street Presenter(s):John Collins PE, Public Works Director Background On June 23, 2015 a letter was sent to the property owner of 219 East Charles Street, by the Public Works Department, concerning a water service box sticking up above the sidewalk grade in front of 220 East Ashton Avenue. The Water Superintendent verified this water service box is for the property located at 219 East Charles Street. The letter stated repairs were necessary to ensure such box is flush with the public sidewalk and not a hazard to citizens using the public sidewalk and needed to be completed by July 10, 2015. Section 20-11 of the City Code addresses obstructing the public right of way. With no response from the property owner regarding such violation a second letter was sent on July 13, 2015 to the property owner of 219 East Charles Street notifying them that a contractor would be hired by the City to resolve this matter. Discussion The water service box in the public right of way at 220 East Ashton Avenue (serving 219 East Charles Street) was repaired to be flush with the public sidewalk and conform to City Code, as well as to enhance public safety for pedestrian traffic, on August 15, 2015 by Galvan Construction, Inc. for the amount of $750.00. The cost for this waster service box lowering will be assessed to the subject property of 219 East Charles Street. The payments will be spread over five (5) years at 7% simple interest. The first payment of principle only at 1/5th of the assessment is due 10 days after filing of the ordinance that levies the costs as approved at the Board of Equalization. The City has had multiple correspondences with the property owner and will send a reminder letter advising them that the Board of Equalization is scheduled for October 27, 2015; the first payment will be due shortly after. Grand Island Council Session - 9/22/2015 Page 209 / 287 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 Certificate of Final Completion for water service box lowering, service the property of 219 East Charles Street, in the public right of way at 220 East Ashton Avenue and set the Board of Equalization date of October 27, 2015. Sample Motion Move to approve the Certificate of Final Completion and set the Board of Equalization. Grand Island Council Session - 9/22/2015 Page 210 / 287 Grand Island Council Session - 9/22/2015 Page 211 / 287 ENGINEER’S CERTIFICATE OF FINAL COMPLETION Water Service Box Lowering for 219 East Charles Street (in the Public Right of Way at 220 East Ashton Avenue ) CITY OF GRAND ISLAND, NEBRASKA September 22, 2015 TO THE MEMBERS OF THE COUNCIL CITY OF GRAND ISLAND GRAND ISLAND, NEBRASKA This is to certify that water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue has been fully completed by Galvan Construction, Inc. of Grand Island, Nebraska. The work has been completed in accordance with the terms, conditions, and stipulations of said work. The work is hereby accepted for the City of Grand Island, Nebraska, by me as City Engineer/Public Works Director in accordance with the provision of City Code Section 20-11; Obstruction Public Right of Way. Fence Removal from Public Right of Way at 904 West Phoenix Avenue No. Description Lump Sum Price Total Cost 1 Water Service Box Lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue $750.00 $750.00 TOTAL COST – WATER SERVICE BOX LOWERING FOR 219 E CHARLES STREET IN FRONT OF 220 EAST ASHTON AVENUE IN PUBLIC RIGHT OF WAY $750.00 LESS AMOUNT PREVIOUSLY PAID CONTRACTOR $ 0.00 BALANCE DUE CONTRACTOR THIS FINAL PAYMENT $750.00 ________ TOTAL COST OF WATER SERVICE BOX LOWERING FOR 219 E CHARLES STREET IN FRONT OF 220 EAST ASHTON AVENUE IN PUBLIC RIGHT OF WAY $750.00 Amount Assessable to Property Owner $750.00 Respectfully Submitted, John Collins, P.E. Public Works Director __________________________________________________________________________________________ I hereby recommend that the Engineer’s Certificate of Final Completion for water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue be approved. I further recommend that the City Council sit as a Board of Equalization on October 27, 2015 to determine benefits and levy special assessments. Respectfully Submitted, Jeremy L. Jensen Mayor Grand Island Council Session - 9/22/2015 Page 212 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-261 WHEREAS, the City Engineer/Public Works Director of the City of Grand Island has issued a Certificate of Final Completion for water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue, certifying that Galvan Construction, Inc. of Grand Island, Nebraska has completed such project according to the terms, conditions, and stipulations for such work; and WHEREAS, the City Engineer/Public Works Director recommends the acceptance of the Certificate of Final Completion for water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue; and WHEREAS, the Mayor concurs with the recommendations 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: 1.The City Engineer/Public Works Director’s Certificate of Final Completion for water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue, is hereby confirmed. 2.The City Council will sit as a Board of Equalization on October 27, 2015 to determine benefits and set assessments for water service box lowering for 219 East Charles Street in the public right of way at 220 East Ashton Avenue. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 213 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-18 #2015-262 - Approving Designating Loading Zone in Front of 363 North Cleburn Street Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 214 / 287 Council Agenda Memo From:Terry Brown PE , Assistant Public Works Director Meeting:September 22, 2015 Subject:Approving Designating Loading Zone in Front of 363 North Cleburn Street Presenter(s):John Collins PE, Public Works Director Background Council action is required to designate a Loading Zone on any public street. The Public Works Department received a request from Gene Rossenberg, business owner at 363 North Cleburn Street, to designate one (1) of the parking stalls on the east side of Cleburn Street as a Loading Zone. Mr. Rossenberg operates a rental business with equipment weighing upwards of 150 pounds, with numerous pickups and deliveries throughout the day and often times has no available parking in front of his business to facilitate loading and unloading of such equipment. Discussion The Engineering Division of the Public Works Department, as well as various departments of the City, have reviewed the request from Mr. Rossenberg and have concluded that a designated Loading Zone is permissible. It is recommended that one (1) parking stall on the east side of Cleburn Street, in front of 363 North Cleburn Street, be designated as a Loading Zone area. A sketch of the desired Loading Zone area is attached for reference. 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 - 9/22/2015 Page 215 / 287 Recommendation City Administration recommends that the Council approve the resolution designating a one (1) parking stall in front of 363 North Cleburn Street as a Loading Zone. Sample Motion Move to approve the resolution. Grand Island Council Session - 9/22/2015 Page 216 / 287 &#6'5'26'/$'4&4#90$;/5161#228&$;27$.+%914-55%#.'N012#4-+0)<10'0146*%.'$740564''6NO PARKINGLOADING ZONE0%.'$740564''690146* (4106 564''690146*(4106564' '6Grand IslandCouncil Session - 9/22/2015Page 217 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-262 WHEREAS, the City Council, by authority of §22-77 of the Grand Island City Code, may by resolution, entirely prohibit or fix a time limit for the parking and stopping of vehicles in or on any public street, public property, or portion thereof; and WHEREAS, the Public Works Department is requesting that one (1) parking stall be designated as a Loading Zone on the east side of Cleburn Street, in front of 363 North Cleburn Street; and WHEREAS, it is recommended that such restricted parking request be approved. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: 1.A Loading Zone, consisting of one (1) parking stall, is hereby designated on the east side of Cleburn Street, in front of 363 North Cleburn Street; and 2.The City’s Street Division of the Public Works Department shall erect and maintain the signs necessary to effect the above regulation. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 218 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-19 #2015-263 - Approving Designation of Sole Source for Return Activated Sludge (RAS) Pumps at the Waste Water Treatment Plant Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 219 / 287 Council Agenda Memo From:Marvin Strong PE, Waste Water Treatment Plant Engineer Meeting:September 22, 2015 Subject:Approving Designation of Sole Source for Return Activated Sludge (RAS) Pumps at the Waste Water Treatment Plant Presenter(s):John Collins PE, Public Works Director Background The existing Return Activated Sludge (RAS) pumps for Final Clarifiers #1 & #2 are worn out and limit our operational flexibility because they don’t have sufficient capacity. The existing RAS Pumps are manufactured by Fairbanks Morse and have performed well for the last nineteen years. The RAS pumps return sludge collected in the final clarifiers to the head of the aeration tanks. Discussion Black and Veatch indicates Fairbanks Morse is one of two known manufacturers of Vertical Turbine Solids Handling (VTSH) pumps and recommends we make Fairbanks Morse the sole source provider of VTSH pumps because they are the market leader and the selected pump matches the existing pump footprint, significantly lowering the installation cost. Pentair/Fairbanks-Nijhuis has the secured sales territory for Grand Island. The new pumps have more capacity than the old pumps and will increase our operational flexibility The Waste Water Treatment Plant is seeking approval to purchase the following RAS pumps from Fairbanks Morse Pumps, in the total amount of $198,697.00. Pump Type Unit Cost Quantity Total Cost 10” VTSH / 20 HP @ 1200RPM $66,567.00 2 $133,134.00 10” VTSH / 40HP @ 1800RPM $65,563.00 1 $65,563.00 Grand Island Council Session - 9/22/2015 Page 220 / 287 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 Return Activated Sludge (RAS) pumps purchase from Pentair/Fairbanks-Nijhuis of Omaha, Nebraska in the total amount of $198,697.00, as well as deeming them sole source provide for such pumps. Sample Motion Move to approve the resolution. Grand Island Council Session - 9/22/2015 Page 221 / 287 Grand Island Council Session - 9/22/2015 Page 222 / 287 Grand Island Council Session - 9/22/2015 Page 223 / 287 Grand Island Council Session - 9/22/2015 Page 224 / 287 Grand Island Council Session - 9/22/2015 Page 225 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-263 WHEREAS, with the improvements at the Waste Water Treatment Plant it is necessary to upgrade the Return Activated Sludge (RAS) pumps; and WHEREAS, such pumps are currently Fairbanks Morse pumps; and WHEREAS, it is recommended that Fairbanks Morse pumps continue to be used as they have performed well and would not require pipe modifications to replace; and WHEREAS, it is requested the following pumps be approved for purchase and Pentair/Fairbanks-Nijhuis be deemed sole source provider for such pumps as they represent the secured sales territory for Grand Island. Pump Type Unit Cost Quantity Total Cost 10” VTSH / 20 HP @ 1200RPM $66,567.00 2 $133,134.00 10” VTSH / 40HP @ 1800RPM $65,563.00 1 $65,563.00 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the purchase of the above noted pumps, in the total amount of $198,697.00 from Pentair/Fairbanks-Nijhuis of Omaha, Nebraska is hereby approved. BE IT FURTHER RESOLVED, that Pentair/Fairbank-Nijhuis is hereby designated as the sole source provider for the Return Activated Sludge (RAS) pumps at the Waste Water Treatment Plant. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 226 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-20 #2015-264 - Approving Request from the GRACE Foundation for Permission to Use City Streets and State Highway for the 2016 10K Race and 2-Mile Family Fun Run Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 9/22/2015 Page 227 / 287 Council Agenda Memo From:John Collins PE, Public Works Director Meeting:September 22, 2015 Subject:Consideration of Approving Request from the GRACE Foundation for Permission to Use City Streets and State Highway for the 2016 10K Race and 2-Mile Family Fun Run Presenter(s):John Collins PE, Public Works Director Background The GRACE Foundation was established in 2008 to assist local cancer patients, survivors and their families. The 5th Annual Race for GRACE event was held in April 2015, with the foundation raising just over $40,000 to assist individuals and their families affected by cancer right here in our local community. There were over 1,850 runners from many states and numerous Nebraska communities. Discussion The GRACE Foundation is seeking Council approval and notice to the Nebraska Department of Roads for their 6th annual Race for GRACE in downtown Grand Island on April 2, 2016. The race route will require the use of City streets, as well as 2nd Street (Lincoln Highway). Please see the attached map of the route. State Statute 39-1359 requires the City Council to approve the route and for the City to then inform the Nebraska Department of Roads that the route has approval if it closes or blocks any part of a State highway. This is a requirement for any race, parade or march that would create some closure of the highway. This action then makes the City responsible for the liability of using a State highway for the event. In planning for the event and to achieve the best identified route the request has been reviewed by public safety and public works. Grand Island Council Session - 9/22/2015 Page 228 / 287 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 6th Annual Race for GRACE and direct that the Nebraska Department of Roads be notified of this action. Sample Motion Move to approve the resolution. Grand Island Council Session - 9/22/2015 Page 229 / 287 August 25, 2015 Dear City of Grand Island: The GRACE Foundation is very excited to announce the 6th annual Race for GRACE in downtown Grand Island in the Spring of 2016. This event will again include a 10K race and 2-mile family fun run with both the start and ﬁnish at the historic Grand Theatre. The GRACE Foundation was established in 2008 to assist local cancer patients, survivors and their families. It was born out of the need to help local cancer patients and their families in their ﬁght with this deadly disease. The 5th Annual Race For GRACE was held in April of 2015 and was even more successful than the 4th one. We were able to raise over $40,000 to assist individuals and families affected by cancer right here in our local community. There were over 1,850 runners this year from many states and numerous Nebraska communities. We have had great success having our event downtown, and we are grateful for the support we receive from downtown businesses and the City of Grand Island. It has become a way for the community to join together for an amazing cause that really does impact the lives of so many. Numerous people have shared with us the impact that the race has had on them and the sense of hope and healing it has brought to their lives. Due to the success of the Celebration Garden the past few years, we are going to continue to provide this celebratory component for the race in 2016. This includes the beer garden in Kaufmann Park. Local downtown businessman Brent Lindner is going to sponsor the liquor license again and will ﬁll out the necessary paperwork for this in early 2016. There will again be identiﬁcation bands used to distinguish those who are 21 years of age and older. As required by city code a boundary will be established within Kaufmann Park for the beer garden. We will request written approval from Business Improvement District #8 to utilize Kaufmann Park. In addition, we will also request written consent from the neighboring property owners, Wells Fargo Bank and Carl Mayhew. The start time of the race is 8:30 am on Saturday, April 2, 2016. In order to accommodate runners and the volunteers, some blocks of 3rd Street would need to be closed from 4:00 am - 12:00 pm for set-up, the actual race and clean-up. There will also be cones and barricades set up to assist in trafﬁc control and runner safety. We met with both Captain Falldorf of the Police Department and Shannon Callahan of the Streets Department after the race this year to assure that things were both safe and manageable. The only blocks that will continue to be closed until 12:00 pm is from Walnut to N. Locust on Third Street. The courses will remain as they were in 2015. At this time we want to let the city know of our continued effort to promote the safest race environment possible for all involved. If you have any concerns or questions, please feel free to contact me at (308) 380-8757 or via e-mail at angieziller@gmail.com. Sincerely, Angie Ziller Race Director, Race for GRACE cc: Chief Lamken, Captain Falldorf, Grand Island Police Department; Chief Cory Schmidt, Grand Island Fire Department; John Collins, Public Works Director; and Shannon Callahan, Street Superintendent; and Catrina DeLosh, Public Works Assistant Grand Island Council Session - 9/22/2015 Page 230 / 287 Race for GRACE proposal 2015 Who: GRACE Foundation (Grand Island Area Cancer Endowment) When: April 2, 2016 Where: Start/Finish at The Grand Theatre, Downtown Grand Island (same as 2011-2015) ***Chief Lamken has approved the course for safety. We are paying G.I. Police for safety at major crossings as deemed necessary by Chief Lamken and Captain Falldorf.*** Time: 10K start at 8:30 am (wave start if necessary based on registered participants) 2-Mile Family Fun Run rolling wave start at 8:35 am Purpose: Raise money to support the mission of the GRACE Foundation (Grand Island Area Cancer Endowment) Course Committee: Angie Ziller--Race Director; Niki Messmer—Course Coordinator Race Director: Angie Ziller at 380-8757 or 389-3843 or angieziller@gmail.com Request: In order to have the race downtown, we will need to close some of the streets for a period of time consistent with the race procedures for 2011-2015. (1) We need to close 3rd St. from Cleburn to Oak Streets from 4:00 am - 10:30 am (????--depending on tear down of the finish line/chute) in order to assure we have everything prepared for the start and finish of the race as well as tearing down the chute at the end. The past 5 years we were able to clean up very quickly and had streets opened up as soon as possible. The other streets that would also need to be closed are from Wheeler to Oak Streets on 3rd Street.; however, these would be opened sooner because runners would finish sooner in the 2 mile run. The only streets that would remain closed until 12:00 pm is from Walnut to N. Locust on 3rd Street. (2) We need to have the Eddy Street light switched to an ”emergency” flashing light with officers present to assist while the 10K runners are on the course. Chief Lamken and Captain Falldorf have agreed that this is the safest way to provide runners the means to cross Eddy Street heading east on 3rd St. This is the same way this intersection was handled in 2012-2015. (3) North Walnut Street will be closed from 2nd Street until Walnut and Locust merge between Charles and Ashton and continue to be closed until Fonner Park Road. At this point runners would be merged into one lane and continue south on South Locust Street. Officers are used for directing traffic on Walnut Street at both 1st and 2nd Streets and on South Locust Street at Fonner Park Road and Stolley Park Road. South Locust will be reopened immediately after the last runner is funneled to the right (west lane) of traffic. This is at the beginning of the race and so will only be closed for a short time. Grand Island Council Session - 9/22/2015 Page 231 / 287 Page 2 Race for GRACE Proposal This is the same way it was handled in 2015. (4) The underpass at Sycamore and North Front Street to 3rd Streets would be closed from 8:35 am - 9:30 am to provide safety to the runners on the 2-Mile course as well as to alleviate congestion of cars in that area. There will be an officer here as well to assist runners across. In 2013 and 2014 this underpass was switched to an “emergency” flashing light. 10K Course Written Out: http://www.usatf.org/routes/view.asp?rID=425879 (at U.S. Track and Field) The basic course (same as 2012-2015) begins at 3rd Street in front of the Grand Theatre and proceeds west until Walnut St. at which point the runners head south on N. Walnut St. Two lanes are closed from 2nd St. until Walnut and Locust merge between Charles and Ashton and on South Locust St. to Fonner Park Rd. At this point runners merge to one lane from Fonner Park Road and continue to run south until Stagecoach Rd. They will turn right and follow Stagecoach Rd. until Riverview Dr. They follow this which turns into Williams St. until Stolley Pk. Rd. They will cross Stolley Pk. Rd. and head west briefly until turning right onto Arthur St. Runners will take Arthur north until they reach Buechler Pk. and then head west for 2 blocks. At this point they will go north 2 blocks and connect with 3rd St. At 3rd St. they will head east crossing Eddy with a stop-and-go light and an officer to assist. From here they will run to the finish on 3rd St. which is the Grand Theatre. 2 Mile Family Fun Run Proposal: The 2-mile route will remain the same as 2015. This allows for runners to maneuver better by starting the race with a straight route for several blocks and then having wider lanes/space to run. Additionally, it decreases traffic issues. The runners will be spread along the course by using Second Street and returning on W. South Front Street. With less runner traffic on W. South Front Street, vehicles will be able to reach downtown businesses such as the post office, US Bank, Sherman Williams and Sin City. In addition to increases in safety and decreases in traffic issues for runners, 2-mile route also benefits the volunteers. The volunteers are able to set-up certain aspects of the race, such as the U-turn area and food/beverage area, prior to the start of the race. This will allow the volunteers to provide safety support in other areas and for the runners as they cross the finish line. Course Map: Attached Grand Island Council Session - 9/22/2015 Page 232 / 287 Page 3 Race for GRACE Proposal Course Description: 1. Runners will begin at the Grand Theater on W. 3rd Street and head west to N. Cleburn Street. 2. Turn left onto N. Cleburn Street and head south to W. 2nd Street. 3. Turn left onto W. 2nd Street and head east to N. Oak Street. 4. Turn left onto N. Oak Street and head north to East 3rd Street. 5. Turn left onto East 3rd Street and head west to N. Locust Street 6. Make a U-turn at the intersection of East 3rd Street and N. Locust Street and head east on East 3rd Street to N. Oak Street. 7. Turn left onto N. Oak Street and head north to E. South Front Street. 8. Turn left onto E. South Front Street and head west to N. Walnut Street. 9. Turn left onto N. Walnut Street and head south to W. 3rd Street. 10. Turn left onto W. 3rd Street and head east to finish line chute located in front of the Grand Theater. Additional Police In addition to the officer stationed at Third Street and Sycamore Presence: Street, the Race for GRACE would like to have an officer placed at N. Walnut and E. South Front Street. Consistent with Race for GRACE policy, the GRACE Foundation will compensate the Grand Island Police Department for the additional police presence. Volunteers: Volunteers will be placed at each intersection along the course to ensure runner safety by monitoring/controlling traffic and be of assistance to the participants of the race. Safety: The Race for GRACE Committee continues to work in conjunction with the Grand Island Streets Department to insure runner, volunteer and traffic safety. We have developed a cone/barricade signage plan with Shannon Callahan which can be provided upon request. Insurance: The GRACE Foundation’s Insurance agent who processes the event policy for the Race for GRACE has been notified and has approved the proposed 2-Mile route change. Grand Island Council Session - 9/22/2015 Page 233 / 287 Celebration Garden: We are having the Celebration Garden just as we did last year as stated in the cover letter. The Celebration garden will go from the time the first runner crosses the finish line until 12:00 pm. It will have a boundary on all sides per city code with people checking identification at the entrance. People age 21 and older will have to acquire a wristband in order to receive a drink containing alcohol in it. The liquor license is being provided by Brent Lindner who will be submitting this application after the first of the year per ReNae Edwards instruction. There will also be nonalcoholic beverages available for persons under the age of 21. Double Lock Security is in charge of checking IDs and security of the Celebration Garden. **A proposal for approval is signed by the Downtown Improvement Board #8 each year. ** A proposal for consent is also requested each year to be signed by the 2 property owners on both the west and east sides of Kaufman Park, including Wells Fargo and Mr. Carl Mayhew. Map of 2-Mile Course for 2015 Race for GRACE Grand Island Council Session - 9/22/2015 Page 234 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-264 WHEREAS, the GRACE Foundation is seeking Council approval and notice to the Nebraska Department of Roads for their 6th Annual Race for GRACE in downtown Grand Island on April 2, 2016; and WHEREAS, the GRACE Foundation has worked with the City in planning & developing an acceptable race route; and WHEREAS, specific wording is required by the Nebraska Department of Roads (NDOR) pursuant to Neb. Rev. Stat §39-1359; and WHEREAS, the City accepts the duties set out in Neb. Rev. Stat §39-1359, and that if a claim is made against the State, the City shall indemnify, defend, and hold harmless the State from all claims, demands, actions, damages, and liability, including reasonable attorney fees, that may arise as a result of the special event, more specifically defined as the 6th Annual Race for GRACE to be held on April 2, 2016; and WHEREAS, the race route involves a stretch of 2nd Street (Lincoln Highway) from Cleburn Street to Oak Street; and WHEREAS, the special event will be held on April 2, 2016, with the control of 2nd Street from Cleburn Street to Oak Street being assumed by the City at 4:00 am on April 2, 2016 and ending at 12:00 pm on April 2, 2016, at which time control of 2nd Street from Cleburn Street to Oak Street shall revert to the State. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the use of City streets and State highway to accommodate the 6th Annual Race for GRACE on April 2, 2016 is hereby approved. BE IT FURTHER RESOLVED, that the Nebraska Department of Roads shall be notified of the approved route. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 235 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-21 #2015-265 - Approving Bid Award for CDBG Revitalization Fund - The Chocolate Bar Staff Contact: Charley Falmlen Grand Island Council Session - 9/22/2015 Page 236 / 287 Council Agenda Memo From:Charley Falmlen, Community Development Meeting:September 22, 2015 Subject:Approving Bid Award for CDBG Revitalization Fund – The Chocolate Bar Presenter(s):Charley Falmlen, Community Development Background In June 2015, The Chocolate Bar was awarded a $159,339 grant from the City of Grand Island’s Revitalization Fund to be used for the correction of code violations and renovation of The Chocolate Bar – Banquet Hall. The Revitalization Fund grant is a forgivable zero-interest loan program administered by the City of Grand Island on behalf of the State of Nebraska Community Development Block Grant Program. The purpose of this forgivable loan program is to meet the HUD National Objective of preventing or eliminating slum or blighted buildings in the Downtown District in the City of Grand Island, Nebraska. On August 18, 2015 the Community Development Division advertised for bids for the construction of The Chocolate Bar – Banquet Hall. Discussion One (1) bid was received and opened on September 8, 2015, by RaNae Edwards. The Bid was in the amount of $151,700 on behalf of Fox Construction, Inc. The Community Development Division is recommending Bid Award to Fox Construction, of Grand Island, Nebraska in the total amount of $151,700. 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 - 9/22/2015 Page 237 / 287 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the bid award to the low compliant bidder, Fox Construction, Inc. of Grand Island, Nebraska in the amount of $151,700. Sample Motion Move to approve the bid award. Grand Island Council Session - 9/22/2015 Page 238 / 287 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:September 8, 2015 at 2:00 p.m. FOR:The Chocolate Bar Banquet Hall Remodel DEPARTMENT:Community Development ESTIMATE:$159,339.00 (City) $ 60,000.00 (Owner) FUND/ACCOUNT:75111627-85213-25213 PUBLICATION DATE:August 18, 2015 NO. POTENTIAL BIDDERS:1 SUMMARY Bidder:Fox Construction, Inc. Grand Island, NE Bid Security:Cashier’s Check Exceptions:None Bid Price:$151,700.00 cc:Chad Nabity, Regional Planning Director Charley Falmlen, Com. Dev. Specialist Marlan Ferguson, City Administrator William Clingman, Interim Finance Director Stacy Nonhof, Purchasing Agent P1835 Grand Island Council Session - 9/22/2015 Page 239 / 287 Grand IslandCouncil Session - 9/22/2015Page 240 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-265 WHEREAS, the City of Grand Island invited sealed bids for The Chocolate Bar – Banquet Hall, according to plans and specifications on file with the Community Development Division; and WHEREAS, on September 8, 2015 bids were received, opened, and reviewed; and WHEREAS, Fox Construction, Inc. of Grand Island, Nebraska submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $151,700.00; and WHEREAS, Fox Construction, Inc.’s bid is less than the estimate for such project. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Fox Construction, Inc. of Grand Island, Nebraska in the amount of $151,700 for The Chocolate Bar – Banquet Hall is hereby approved as the lowest responsible bid. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute a contract with such contractor for such project on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 241 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item G-22 #2015-266 - Approving Affirmation of Utilities Customer Service Center Plan for 1306 W. 3rd Street Staff Contact: Tim Luchsinger, Utilities Director Grand Island Council Session - 9/22/2015 Page 242 / 287 Council Agenda Memo From: William Clingman, Interim Finance Director Craig Lewis, Building Director Timothy Luchsinger, Utilities Director Aaron Schmid, Human Resources Director Meeting:September 22, 2015 Subject:Affirmation of Utilities Customer Service Center Plan for 1306 W. 3rd Street Presenter(s):Timothy Luchsinger, Utilities Director Background Over the last several years the number of customers who pay their bill in person has increased and the layout of City Hall does not accommodate this increase. Several solutions have been discussed regarding space issues at City Hall and potential changes were referred to as the “Domino” process by City staff and Council. Discussion Moving the Utilities Customer Service Group to another location will serve to improve the service level that customers receive when paying their bill in person as the City Hall layout presents numerous challenges of parking, interior congestion and privacy that a new location could resolve. At one time City Hall also offered a drive thru window, however, it presented problems of increased conflicts with pedestrians and backups onto 1st Street that would create traffic hazards. The move of the customer service group out of City Hall will also allow the Information Technology Group to expand their current space, the Human Resources Department to create privacy within their space, and provide better space allocation for the Finance Department. The details of moving the Utilities Customer Service Group to the Utilities facilities at 1306 W. 3rd Street and benefits of space reallocation City Hall were provided to Council at the September 15, 2015 Study Session. Based on this presentation, it is recommended by City staff to relocate the Utilities Customer Service Group from City Hall to the 1306 W. 3rd Street Utilities facilities as a cost effective plan of improving City operations. Grand Island Council Session - 9/22/2015 Page 243 / 287 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 Affirmation of the Utilities Customer Service Center Plan for 1306 W. 3rd Street. Sample Motion Move to approve the Affirmation of the Utilities Customer Service Center Plan for 1306 W. 3rd Street. Grand Island Council Session - 9/22/2015 Page 244 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-266 WHEREAS, over the last several years the number of customers who pay their utility bill in person has increased and the layout of City Hall does not accommodate this increase; and WHEREAS, moving the Utilities Customer Service Group to another location will serve to improve the service level that customers receive when paying their bill in person as the layout at City Hall presents numerous challenges of parking, interior congestion and privacy that a new location could resolve; and WHEREAS, moving the group out of City Hall would also allow the Information Technology Group to expand, the Human Resources Department to create privacy within their space, and provide better space allocation for the Finance Department; and WHEREAS, the details of moving the Utilities Customer Service Group to the Utilities facilities at 1306 W. 3rd Street and the benefits of space reallocation at City Hall were provided to Council at the September 15, 2015 Study Session, and it was discussed as a cost effective plan of improving City operations. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Utilities Customer Service Center Plan for 1306 West 3rd Street is hereby affirmed. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________ Jeremy L. Jensen, Mayor Attest: _________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 245 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item I-1 #2015-267 - Consideration of Approving the Annual Report by the Grand Island Area Economic Development Corporation/Citizen Advisory Review Committee on the Economic Development Program Plan This item relates to the aforementioned Public Hearing item E-4. Staff Contact: Dave Taylor - EDC Precisdent Grand Island Council Session - 9/22/2015 Page 246 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-267 WHEREAS, Neb. Rev. Stat. §18-2715(3) and Grand Island City Code §38-5 require a report by the Citizens Advisory Review Committee to the City Council at least once every six months on its findings and suggestions on the administration of the Economic Development Plan; and WHEREAS, a public hearing on the report submitted by the Citizens’ Advisory Review Committee was held at a regular session of the Grand Island City Council on September 22, 2015; and WHEREAS, said report gave information about the activities of the past six months that have taken place pursuant to the Economic Development Plan. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the annual report of the Citizens Advisory Review Committee is hereby accepted and approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 247 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item I-2 #2015-268 - Consideration of Approving Funding for the Grand Island Area Economic Development Corporation Staff Contact: Dave Taylor - EDC President Grand Island Council Session - 9/22/2015 Page 248 / 287 Council Agenda Memo From:Dave Taylor, EDC President Meeting:September 22, 2015 Subject:Approving Economic Development Funding Request Presenter(s):Dave Taylor, EDC President Background On November 6, 2012, the voters of the City of Grand Island approved a new ten year Economic Development Program. The program is in conformance with Neb. Rev. Stat. 18-2710 and provides for annual funding of $750,000 by the City. Discussion A request has been received from the Grand Island Area Economic Development Corporation, duly approved by the Citizen’s Review Committee for payment of $350,000. Funding will be used for administrative and community marketing purposes. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the request for funds. 2.Disapprove or Deny the request for funds. 3.Modify the Resolution to meet the wishes of the Council. 4.Table the issue. Recommendation City Administration recommends that the Council approve the request for funds. Sample Motion Move to approve the request for funds to allow payment of $350,000 to the Grand Island Area Economic Development Corporation. Grand Island Council Session - 9/22/2015 Page 249 / 287 Grand Island Council Session - 9/22/2015 Page 250 / 287 Grand Island Council Session - 9/22/2015 Page 251 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-268 WHEREAS, on November 6, 2012, the voters of the City of Grand Island approved a new ten year Economic Development Program in conformity with Neb. Rev. Statute No. 18-2710; and WHEREAS, the program provides for $750,000 in annual funding to be provided by the City of Grand Island; and WHEREAS, a request has been made by the Grand Island Area Economic Development Corporation and the Economic Development Program’s Citizens Advisory Review Committee for the payment of $350,000 to be used for administrative and community marketing purposes. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that approval is given to forward $350,000 in City funding to the Grand Island Area Economic Development Corporation in accordance with the Economic Development Program in quarterly allocations of $87,500. - - - Adopted by the City Council of the City of Grand Island, Nebraska, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 252 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item I-3 #2015-269 - Consideration of Assessments for Water Main District 414T - Starlite Subdivision Lots 1 & 2 This item relates to the aforementioned Board of Equalization item D-1. Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 9/22/2015 Page 253 / 287 *This Space Reserved for the Register of Deeds* R E S O L U T I O N 2015-269 BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the special benefits as determined by Resolution 2015- BE-8 shall not be levied as special assessments but shall be certified by this resolution to the Register of Deeds, Hall County, Nebraska, pursuant to Section 16-6,103 R.R.S. 1943. A connection fee in the amount of the benefit identified below accruing to each property in the district shall be paid to the City of Grand Island at the time such property becomes connected to the water main. No property benefited as determined by this resolution shall be connected to the water main until the connection fee is paid. The connection fees collected shall be paid into the fund from which construction costs were made to replenish such fund for the construction costs. According to the front foot and area of the respective lots, tracts, and real estate within such Water Main District No. 414T, such benefits are the sums set opposite the several descriptions as follows: Name Description Connection Fee HC of Grand Island, LLC, N Nebraska limited liability company Lot 1, Starlite Subdivision $17,227.25 HC of Grand Island, LLC, N Nebraska limited liability company Lot 2, Starlite Subdivision $17,307.53 TOTAL All Connection Fees $34,534.78 --- Grand Island Council Session - 9/22/2015 Page 254 / 287 Adopted by the City Council of the City of Grand Island, Nebraska September 22, 2015. __________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 255 / 287 Grand Island Council Session - 9/22/2015 Page 256 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item I-4 #2015-270 - Consideration of Approving Agreement with the Clean Community Systems Staff Contact: Robert Sivick Grand Island Council Session - 9/22/2015 Page 257 / 287 Council Agenda Memo From:Stacy R. Nonhof, Assistant City Attorney Meeting:September 22, 2015 Subject:Agreement with Grand Island Area Clean Community System Presenter(s):Robert Sivick, City Attorney Background As part of the FY 2015-16 annual budget that was approved on September 8, 2015, an appropriation of $30,000.00 to Grand Island Area Clean Community System was made. Prior to any monies being paid out to Grand Island Area Clean Community System, an Agreement is needed to specify the obligations of each party and payment terms. Discussion The Legal Department drafted a proposed Agreement and submitted it to Clean Community System for approval. The Executive Director and Board of Directors for Clean Community System have approved the proposed Agreement. Some of the obligations of CCS are: develop and print 20,000 utility bill inserts one to two times per year on environmental issues; develop and print 20,000 recycling brochures annually, updating recycling opportunities in Grand Island; provide and maintain information on environmental/recycling issues and concerns; provide consulting services to implement integrated solid waste plans; conduct presentations on environmental issues and concerns to school groups, civic organizations and governmental agencies; and secure grant funding on an annual basis to provide household hazardous waste collection and disposal services for the citizens of Grand Island. The full Agreement is attached for your review. The City will pay CCS on a quarterly basis ($6,250.00) and not the full amount up front as has been done in the past. The City will be including in the first installment a one-time $5,000.00 payment for a total initial payment of $11,250.00. Both parties have the right to terminate this agreement now upon 60 days written notice. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: Grand Island Council Session - 9/22/2015 Page 258 / 287 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the Agreement with Grand Island Area Clean Community System. Sample Motion Move to approve the Agreement with Grand Island Area Clean Community System. Grand Island Council Session - 9/22/2015 Page 259 / 287 Grand Island Council Session - 9/22/2015 Page 260 / 287 Grand Island Council Session - 9/22/2015 Page 261 / 287 Grand Island Council Session - 9/22/2015 Page 262 / 287 Grand Island Council Session - 9/22/2015 Page 263 / 287 Grand Island Council Session - 9/22/2015 Page 264 / 287 Grand Island Council Session - 9/22/2015 Page 265 / 287 Grand Island Council Session - 9/22/2015 Page 266 / 287 Grand Island Council Session - 9/22/2015 Page 267 / 287 Grand Island Council Session - 9/22/2015 Page 268 / 287 Grand Island Council Session - 9/22/2015 Page 269 / 287 Grand Island Council Session - 9/22/2015 Page 270 / 287 Grand Island Council Session - 9/22/2015 Page 271 / 287 Grand Island Council Session - 9/22/2015 Page 272 / 287 Grand Island Council Session - 9/22/2015 Page 273 / 287 Grand Island Council Session - 9/22/2015 Page 274 / 287 Grand Island Council Session - 9/22/2015 Page 275 / 287 Grand Island Council Session - 9/22/2015 Page 276 / 287 Grand Island Council Session - 9/22/2015 Page 277 / 287 Grand Island Council Session - 9/22/2015 Page 278 / 287 Grand Island Council Session - 9/22/2015 Page 279 / 287 Grand Island Council Session - 9/22/2015 Page 280 / 287 Grand Island Council Session - 9/22/2015 Page 281 / 287 Grand Island Council Session - 9/22/2015 Page 282 / 287 Grand Island Council Session - 9/22/2015 Page 283 / 287 Grand Island Council Session - 9/22/2015 Page 284 / 287 Grand Island Council Session - 9/22/2015 Page 285 / 287 Approved as to Form ¤ ___________ September 18, 2015 ¤ City Attorney R E S O L U T I O N 2015-270 WHEREAS, the City of Grand Island approved an appropriation of Thirty Thousand and No/100 Dollars ($30,000.00) to Grand Island Area Clean Community System in the FY 2015-16 budget; and WHEREAS, the City of Grand Island and Grand Island Area Clean Community System have reached an Agreement for services and payment; and WHEREAS, Grand Island Area Clean Community System has executed said Agreement. 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 with Grand Island Area Clean Community System. 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, September 22, 2015. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 9/22/2015 Page 286 / 287 City of Grand Island Tuesday, September 22, 2015 Council Session Item J-1 Approving Payment of Claims for the Period of September 9, 2015 through September 22, 2015 The Claims for the period of September 9, 2015 through September 22, 2015 for a total amount of $7,101,765.90. A MOTION is in order. Staff Contact: William Clingman Grand Island Council Session - 9/22/2015 Page 287 / 287