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Kearney, Nebraska

February 25, 2003

7:30 p.m.

 

Prior to the regular Council meeting, the Council met as the Board of Directors for the Kearney Municipal Airport Corporation in open and public session at 7:30 p.m. on February 25, 2003 in the Council Chambers at City Hall.  This meeting adjourned at 7:38 p.m.  A meeting of the City Council of Kearney, Nebraska, was then convened in open and public session at 7:39 p.m. in the Council Chambers at City Hall.  Present were:  Bruce Blankenship, President of the Council; Michaelle Trembly, City Clerk; Council Members Randy Buschkoetter, Galen Hadley, Don Kearney, and Jose Zapata.  Absent: None.  G. Allen Johnson, City Manager; Michael Kelley, City Attorney; John Prescott, Assistant City Manager and Interim Airport Manager; Wendell Wessels, Director of Finance and Administration; Kirk Stocker, Director of Utilities; and Rod Wiederspan, Director of Public Works were also present.  Some of the citizens present in the audience included: Jim Fox, Mike Sumpter, Pat Jones, Dave Keiter, Roger Jasnoch, Ron Tillery, Scott Sanders, Kent Cordes, Dick Stacy, Kirk Stoner, Dave Mead, L.D. Glatter, Pat Garrelts, Sarah Isaacson, Jerry Thompson, Rich Spellman, Colin English, 9 UNK Medical Center Students, Mike Konz of Kearney Hub, Mike Cahill of KKPR Radio, and Dave Jenner of KGFW Radio.

 

Notice of the meeting was given in advance thereof by publication in the Kearney Hub, the designated method for giving notice, a copy of the proof of publication being attached to these minutes.  Advance notice of the meeting was also given to the City Council and a copy of their acknowledgment or receipt of such notice is attached to these minutes.  Availability of the Agenda was communicated in the advance notice and in the notice to the Mayor and City Council.  All proceedings hereafter shown were taken while the meeting was open to the attendance of the public.

 

I.    ROUTINE  BUSINESS

 

INVOCATION

 

Reverend Matt Robins from First Presbyterian Church provided the Invocation.

 

PLEDGE OF ALLEGIANCE

 

Boy Scout Kent Laue led the Council members and audience in the Pledge of Allegiance.

 

RECOGNITION – KEARNEY VOLUNTEER FIREFIGHTERS

 

Mayor Blankenship and Council Members recognized the following Kearney Volunteer Firefighters for their service with the Kearney Volunteer Fire Department:  Terry Eirich – 15 years, Pat Garrelts – 15 years, Ken Tracy – 15 years, and L.D. Glatter – 10 years.  They were each presented an anniversary award.

 

ORAL COMMUNICATIONS – PRESENTATION OF BUFFALO COUNTY ECONOMIC DEVELOPMENT COUNCIL ANNUAL REPORT

 

Ron Tillery, President of the Buffalo County Economic Development Council, presented their annual report to the Council.  He stated that the partners in the Economic Development Council are the City of Kearney, the County of Buffalo and the Chamber of Commerce. Increasingly, they are working in partnership outside of the Kearney city limits and the borders of Buffalo County to foster economic activity and to grow the region. Examples would be the ethanol production facility in Buffalo County, and working on the plan to get one in the Ravenna community. This will provide economic strength and stability to small rural communities, as well as our entire region, especially the Ag community. 

 

Each of the organization partners appoints two members to serve on its board.   There was recently a reorganization meeting and the two representatives from the City are Mayor Blankenship and Ron Larsen.  Buffalo County’s representatives are Bill McMullen and Tim Loewenstein.  The Chamber’s representatives are Byron Hansen and Jon Abbeglan.   This group appoints a member-at-large, who is Dale Pullman, president of the Ravenna Bank and of the Ravenna Economic Development Council.  That group elects officers who facilitate and foster this spirit of partnerships, which enables them to get a lot of things done.  They are often able to get things done with fewer resources, which is a benefit to the taxpayers and complements private dollars to the effort. 

 

The priorities are, business retention and expansion; attracting new business; new business development plans; and asset development, which can include infrastructure, housing, and a range of things that must be present and ready in the market to serve the needs of business and opportunities as they arise.  Examples would be streets, utilities, power, and regulatory and policy issues that are important to the business community. 

 

Compared to the economy of the State and the nation, Kearney area has had a very successful year.  Kearney is outperforming the state in many key indicators.  Despite the fact that Kearney’s annual activity in many key areas of building is slowing, Kearney has seen some strength in single and multi family development.  Kearney retail sales outpaced the State’s by a wide margin.  Kearney retail sales through November, 2002, were 7.4 percent compared to 1.5 percent.  He believes that we can attribute this to Kearney’s diversified economy and Kearney’s growing prominence as a regional center.  Based on the early indicators of 2003, Kearney seems to still be growing and he believes that 2003 will be a stronger year than 2002.

 

Job creation is another area that is encouraging.  The growth in job opportunities in 2001 was the strongest job market growth that Kearney had experienced in the last 12 years.  In those 12 years, Kearney has added 1,485 homes, 1,478 multi-family homes, 201 commercial projects, 115 industrial projects, 642 commercial and industrial expansions.  There has been a trend of fewer large industrial kinds of projects, which diminished in the 90’s and continues to decline.  Emphasis is being focused on smaller industrial development and further diversification of the economy.  Pirating of existing businesses is becoming more common.  It will become increasingly difficult to rely solely on Kearney’s “great quality of life”. 

 

Mr. Tillery further stated that they must be competitive in that area.  They have relied less on incentives than some other areas.  They must be prepared for opportunities, where they are looking for infrastructure, streets, and lots already in place that fit their needs.  The timeline for development of these projects has tightened.  Rather than wait for these projects to be completed in six months, contractors are impatient and might seek other communities that have these available.  In order to be successful, they must continue with their strategy of improving the community and be prepared for those kinds of opportunities.

 

Kearney’s valuation is over one billion dollars. In Buffalo County, Kearney valuation exceeds two billion dollars. Overall, he stated that Kearney is well positioned for the future. There are a number of challenges ahead; however, Kearney has good leadership.

 

II.    UNFINISHED  BUSINESS

 

There was no Unfinished Business.

 

III.    PUBLIC  HEARINGS

 

CONDITIONAL USE PERMIT – BED & BREAKFAST, 520 HURON DRIVE

 

Moved by Zapata seconded by Blankenship that the public hearing on the Appeal from the decision by the Planning Commission to approve the Application submitted by Jaylene Bashore (Applicant and Owner) for a Conditional Use Permit to locate a Bed and Breakfast on property zoned “District ICMU, Interstate Corridor Mixed Use District” and described as Lot 9 of Block 4, Lake Villa Estates, an addition to the City of Kearney, Buffalo County, Nebraska (510 Huron Drive) remain on the table until March 11, 2003. Roll call resulted as follows: Aye: Blankenship, Kearney, Zapata, Hadley, Buschkoetter.  Nay: None.  Motion carried.

 

LIQUOR LICENSE – PARADISE COVE, 224 SOUTH 2ND AVENUE

 

Mayor Blankenship opened the public hearing on the Application for a Class “C” (Beer, Wine, and Distilled Spirits – On and Off Sale) Liquor License submitted by EXPRESSIONS CATERING, INC., dba “Paradise Cove” located at 224 South 2nd Avenue, approve Kirk Stoner as Corporate Manager, and to consider Resolution No. 2003-24.

 

The City Clerk provided the department with copies of the application by Stoner to obtain a liquor license for the Paradise Cove Bar/Nightclub and to operate as the Manager of the same.  The club will be in the 1st Inn Gold at 224 South 2nd Avenue here in Kearney. The club will replace another business that had been there, Castaways.

 

A background investigation was conducted on Mr. Stoner as to his suitability to operate the club and to have a license issued to him to dispense alcohol. Nothing in the background indicated that Mr. Stoner would not be suitable for this license. The area within the motel was previously a club and is being renovated for this purpose.  The business is acceptable and normal for the area. The City has the right to review and conduct an investigation on the issuance of a license to dispense alcohol and on the person who will operate the business. The City may then make a recommendation to the State of Nebraska Liquor Commission on the suitability of the license and the person who will manage the business.

 

There are no financial considerations on this request. The area is suitable for the purpose and zoned correctly. A previous similar establishment has been successfully operated at the location. The license is designed to replace a previous license and will not create any undue burden on City resources or services.

 

Kirk Stoner presented this matter to the Council. He stated that Paradise Cove is the name he has given to the former Castaway Lounge at the 1st Inn Gold hotel.  They have contracted with the hotel to provide banquet services and manage the lounge’s activities. Their focus is to do something different than has been done in the past. They want to become a consumer friendly, hotel type bar and lounge atmosphere. It will not have a full menu, just hamburgers and sandwiches.  During the week they will close at 8:00 or 9:00 in the evenings and open regular hours on the weekend and occasionally will have entertainment. 

 

He has been in the hospitality industry for the past 20 years. For most of that time, he has been in the management part of the business. He has had many years experience with lounge management. The most recent lounge he was associated with was helping Jim Gardner with the Habitaet’ Restaurant lounge shortly after opening “Expressions Catering”. 

 

They have had meetings with the Kearney Police Department regarding training of their staff. They will have training prior to and after opening as needed. The place is small, seating for about 120 people. The type of atmosphere they will promote will not be to attract the younger or underage crowd. It is always possible that a minor might try to order an alcoholic drink, but as the law requires, they will check ID’s to insure that all customers are of age. 

 

One of the main aspects of their liquor license will be applying for the designated license for catering in the future. This will be a big part of their business.

 

There was no one present in opposition to this hearing.

 

Moved by Blankenship seconded by Kearney to close the hearing and approve the Application for a Class “C” (Beer, Wine, and Distilled Spirits – On and Off Sale) Liquor License submitted by EXPRESSIONS CATERING, INC., dba “Paradise Cove” located at 224 South 2nd Avenue, approve Kirk Stoner as Corporate Manager, and approve Resolution No. 2003-24. Roll call resulted as follows:  Aye: Blankenship, Zapata, Hadley, Buschkoetter, Kearney. Nay: None. Motion carried.

 

RESOLUTION NO. 2003-24

 

            WHEREAS, EXPRESSIONS CATERING, INC., dba “Paradise Cove” has filed with the Nebraska Liquor Control Commission and the City Clerk of the City of Kearney, Nebraska, an application for a Class ‘C’ (Beer, Wine and Distilled Spirits – On and Off Sale) Liquor License to do business at 224 South 2nd Avenue, Kearney, Nebraska, and has paid all fees and done all things required by law as provided in the Nebraska Liquor Control Act; and

            WHEREAS, a hearing was held relating to said application on February 25, 2003.

            NOW, THEREFORE, BE IT RESOLVED that the President and City Council of the City of Kearney, Nebraska approve or recommend approval to the Nebraska Liquor Control Commission of the issuance of a Class ‘C’ (Beer, Wine, and Distilled Spirits – On and Off Sale) Liquor License to EXPRESSIONS CATERING, INC., dba “Paradise Cove” located at 224 South 2nd Avenue, Kearney, Nebraska.

            BE IT FURTHER RESOLVED that the City Clerk is hereby instructed to record the Council action favoring the issuance of said license in the Minute Record of the proceedings of the Council.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

IV.    CONSENT  AGENDA

 

Moved by Kearney seconded by Buschkoetter that Subsections 1 through 8 of Consent Agenda Item IV be approved.  Roll call resulted as follows:  Aye: Blankenship, Hadley, Buschkoetter, Kearney, Zapata.  Nay: None.  Motion carried.

 

1.         Approve Minutes of Regular Meeting held February 11, 2003.

 

2.         Alltel $442.11 Various; Amer Fence $33,534.18 Su; Anderson Brothers $384.42 Various; AT&T $66.34 Serv; Baker & Taylor $716.20 Bks; Bardon Data Systems $235.00 Serv; Barney Abstract $635.00 Serv; Bearcat Diner $1,050.00 Su; Beckenhauer, T $52.71 Tr; Blevins, D $194.40 Serv; Boersma, C $40.73 Cla; Bokenkamp, D $16.01 Ref; Books on Tape $403.20 Bks; Bosselman Oil $11,778.20 Inv; Bowman, R $19.23 Pc; Buffalo Co Reg of Deeds $25.50 Serv; Buffalo Co District Court $129.00 Ded; Burmood, L $8.81 Ref; Buss, R $19.00 Ref; Cash-Wa $579.60 Various; CDW-G $86.64 Su; Central Fire $901.90 Various; City of Ky $54,011.90 Various; Civic Plus $445.00 Serv; Clark Enersen Partners $4,874.90 Serv; CLH $309.00 Serv; College Savings Plan of NE $260.00 Ded; Consolidated Electric Dist $12.88 Rep; Corp Diversified Services $82,082.21 Claims; Culligan $66.80 Su; Dan Roeder Concrete $34,270.73 Serv; Dawson Co PPD $10,599.11 Serv; Dell $804.45 Equip; Depository Trust $14,282.00 Princ & Int; Development Council $170.00 Econ Dev; Diamond Vogel Paints $50.27 Su; Dutton Lainson $4,249.18 Various; Eakes Office Plus $31.82 Su; Econo-Clad Books $167.17 Bks; Elliott Equipment $8,131.21 Rep; Engels, D $965.00 Tr; Enterprise Electric $98.28 Rep; Envirotech $14,681.44 Su; Fastenal $106.88 Rep; Fedex $20.22 Pstg; Fremont Nat'l Bank $33,167.62 Ded; Frontier $193.56 Serv; Gardner, J $74.54 Su; Gray Supply $24.90 Su; Great Plains One-Call $174.62 Serv; Great Plains Safety, Health $2,300.00 Serv; Great Platte River Road Archway Monument $399,000.00 Grant; Grupe, B $125.00 Tr; H.T.E. $7,425.00 Serv; Hach $375.64 Rep; Heartland Coop $773.16 Su; Heiman Fire Equipment $221.20 Rep; HHS Regulation $6.00 Permits; Highland Park $1,145.50 Rep; Hurricane Fence of NE $1,260.00 Equip; ICMA RC $2,419.91 Ded; IntelliCom Computer Consulting $69.00 Serv; IRS $75,667.87 Ded; Interstate Structures $10,956.84 Serv; Jack Lederman Co $92.22 Containers; Johnson Service $953.55 Rep; Junkman's Recycling $45.27 Su; K&D Motor $110.00 Rep; Ky Area Solid Waste Agency $567.64 Tipping Fees; Ky Chamber of Commerce $41.00 Comm. Betterment; Ky Clinic $768.00 Serv; Ky Concrete $1,981.39 Su; Ky Hub $2,438.33 Serv; Ky Implement $844.00 Rep; Ky Winlectric $74.72 Su; Kirkham, Michael & Assoc $6,344.00 Serv; Klaus, M $175.26 Tr; Kneher, W $89.11 Ref; Kolar, J $69.00 Tr; Koster, B $19.00 Ref; Kotschwar, T $125.00 Tr; L&W Tires $726.63 Rep; Landmark Audiobooks $5.00 Bks; Lasertec of NE $92.00 Su; Linweld $289.73 Various; Luebbert, D $22.52 Ref; Lynaugh, J $432.00 Reim; Magic Cleaning $600.00 Serv; McCollister & Co $721.35 Inv; McDermott & Miller $15,975.00 Serv; Meier, S $19.64 Ref; Mid America Pay Phones $100.00 Serv; Mid America Pump $1,728.76 Rep; Midlands Contracting $283,622.69 Serv; Miller & Associates $10,638.50 Serv; Miller Signs $18.00 Su; Morris Press $27.50 Su; Nat'l Supply $72.14 Su; Nat'l Waterworks $2,997.00 Inv; NCL of Wisconsin $331.29 Serv; NE Child Support $1,027.09 Ded; NE Golf Assoc $24.73 Dues; NE Dept of Revenue $23,835.41 Taxes; NE Dept of Roads $151.42 Serv; NPPD $53,347.23 Serv; NE Section AWWA $100.00 Tr; NeRPA First Annual Acquatic Conf $30.00 Tr; Northstar Audio Books $5.00 Bks; Northwestern Energy $6,921.88 Serv; Northwestern University $3,151.00 Tr; ODV $106.75 Su; Officenet $200.00 Su; O'Keefe Elevator $285.00 Rep; Paramount Linen $227.35 Various; Paulsen $2,080.00 Serv; Payne Larson Furniture $3,190.13 Rep; Penner, M $19.00 Ref; Postmaster $320.00 Pstg; Preferred Mail $83.24 Pstg; Presto-X $55.00 Serv; Ready Mixed Concrete $2,990.38 Su; Recorded Books $162.30 Bks; Regional Books $56.40 Bks; Respond First Aid $37.50 Su; Schanou, J $127.62 Tr; Scurto, R $90.00 Reg; Skillpath Seminars $199.00 Tr; Snap on Tools $300.00 Tr; Splitter, M $438.69 Tr; Steffensmeier, J $51.75 Tr; Stocker, K $161.05 Su; Story, G $125.00 Tr; Super Shine Auto Care $20.00 Rep; Sweet, D $7.07 Ref; Third Party Environmental $175.00 Rep; Tollefsen-Elliott Lumber $13.65 Rep; Tool Doctor $63.50 Tools; Transit Works $59.00 Equip; Treadway Graphics $842.26 Su; Trembly, M $143.91 Tr; Unique Books $10.45 Bks; UPS $40.78 Rep; UNK $378.37 Serv; University of NE Water Center $25.00 Tr; University of NE Tree Care $40.00 Tr; Utility Equipment $172.17 Inv; Video Store Shopper $162.98 Su; Village Cleaners $218.10 Rep; Warrington, D $64.00 Tr; Wessels, W $250.00 Tr; West Group $615.40 Su; Westfall GMC Truck $1,254.90 Rep; Winter, J $19.00 Ref; WPCI $50.00 Serv; Xerox $266.90 Serv; Young, M $1.60 Tr; Zimmerman Printers $370.50 Su; Payroll Ending 02-08-2003 -- $220,367.64.  The foregoing schedule of claims is published in accordance with Section 19-1102 of the Revised Statutes of Nebraska, and is published at an expense of $_________ to the City of Kearney.

 

3.         Receive recommendations of Planning Commission and set March 11, 2003 at 7:30 P.M. as date and time for hearing on those applications where applicable.

 

4.         Ratify the action taken by the Kearney Municipal Airport Corporation on approving the Non-Owned Hangar Lease with Ola Criffield for the ground underlying Hangar T-924 and approve Resolution No. 2003-25.

 

RESOLUTION NO. 2003-25

 

BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the President be and is hereby authorized and directed to execute the Non-Owned Hangar Lease on behalf of the City of Kearney, Nebraska, with Ola Criffield for the ground underlying Hangar T-924, a copy of the Lease, marked Exhibit “1”, is attached hereto and made a part hereof by reference.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

5.         Approve the application for a Special Designated License submitted by STEVE AND JONI PAULSEN, dba "The Sand Bar" in connection with their Class C/K28462 Liquor License to dispense beer, wine and distilled spirits in the Exposition Building at the Buffalo County Fairgrounds, 3807 Avenue N, on March 7 and 8, 2003 from 5:00 p.m. until 1:00 for a rodeo.

 

6.         Approve the application for a Special Designated License submitted by STEVE AND JONI PAULSEN, dba "The Sand Bar" in connection with their Class C/K28462 Liquor License to dispense beer, wine and distilled spirits in the Exhibit Building at the Buffalo County Fairgrounds, 3807 Avenue N, on March 15, 2002 from 8:00 p.m. until 1:00 for a motorcycle show.

 

7.         Approve the request submitted by Carol Letcher to extend Conditional Use Permit No. 2001-03 for a resource extraction and stockpiling operation located ¾ mile north of 56th Street on west side of Avenue N for a period of two years.

 

8.         Approve the application for a Special Designated License submitted by CHICKEN BONES, LLC, dba “Chicken Coop Sports Bar & Grill” in connection with their Class I54354 Liquor License to dispense beer, wine, and distilled spirits in the Ag Pavilion located at the Buffalo County Fairgrounds, 3807 Avenue N, on March 22, 2003 from 4:00 p.m. until 1:00 a.m. for a wedding reception subject to the City receiving the required Certificate of Insurance.

 

V.    CONSENT  AGENDA  ORDINANCES

 

None.

 

VI.    REGULAR  AGENDA

 

ORDINANCE NO. 6937 – ISSUANCE OF $4,425,000 VARIOUS PURPOSE BONDS

 

Council Member Kearney vacated his chair and abstained from voting since he is president of the one of the banks involved.

 

The City has completed construction, made final payments on, and assessed the improvement costs according to benefits derived on the 2000 Part V Street Improvement Projects, the 2000 Part VI Street Improvement Projects, the 2001 Part I Street Improvement Projects, the 2001 Part III Street Improvement Projects, the 2001 Part IV Street Improvement Projects, the 2001 Part V Street Improvement Projects, and the 2001 Part VI Street Improvement Projects.

 

Prior to the construction of the above Street Improvement Projects, Series 2001 Bond Anticipation Notes were approved by the City Council to provide cash to pay contractors as “Applications and Certificates for Payment” were approved by the City’s Engineer and the City Council. The Series 2001 Bond Anticipation Notes, which are dated April 1, 2001, provided short term financing for the above Street Improvement Projects and mature on April 1, 2003. Therefore, it is necessary to approve the Series 2003 Various Purpose General Obligation Bonds to redeem the Bond Anticipation Notes dated April 1, 2001, and provide long-term financing for the above Street Improvement Projects.

 

The total amount of the outstanding Series 2001 Bond Anticipation Notes is $5,975,000.00. The total amount of the Series 2003 Various Purpose General Obligation Bonds will be $4,425,000.00.  The difference between the Series 2003 Various Purpose General Obligation Bonds and the outstanding Series 2001 Bond Anticipation Notes will be funded with developer deposit collections, special assessment collections, and unspent proceeds of the Series 2001 Bond Anticipation Notes. The term of the Series 2003 Various Purpose General Obligation Bonds will be twenty years with an interest rate of 1.15% on the one year bonds to 4.75% on the twenty year bonds. The annual payments on the Series 2003 Various Purpose General Obligation Bonds will be approximately $331,000.00 each year for twenty years.

 

Richard Pedersen, an attorney with the Baird Holm Law Firm located in Omaha, has drafted the proposed ordinance in accordance with state and federal laws governing such bonding arrangements. Mr. Pedersen is the City of Kearney’s bond counsel and is very familiar with State and Federal regulations regarding these matters.

 

The City will be required to budget approximately $331,000.00 annually over the next twenty years in order to make the annual principal and interest payments on the Series 2003 Various Purpose General Obligation Bonds.

 

Jim Fox from Ameritas presented this matter to the Council.   Two years ago for paving projects, they did $5,975,000 for a 2-year loan at 4.10 percent. They have netted through proceeds that were left over from those notes, (due to excellent construction bids) about $839,000 in special assessments that have been collected.  The amortization scheduled and the interest rates on the new loans are for 20 years. The overall, all-inclusive rate of interest is 4.38 percent. They are issuing these bonds for 20 years with level annual payments, with a 5-year par-call and replacing 2-year money that cost 4.10 percent with 20 year money costing 4.38 percent. On the source of uses, they have done something different. When issuing $3 million in bonds, they usually amortize over 10 years, and don’t look for a rating.  Since there was $4.4 million and the loan was for 20 years, they paid for a triple-A insured bond rating. It is a one-time deal; the $20,000 is paid up front in exchange for a triple-A bond rating. The differential between a non-rated piece of paper and a triple-A insured paper is about .02 of 1 percent. That is about $100,000 that means it costs about $20,000 to save $75,000. Everything else has been done as before, 5-year par-call and the notes mature on April 1, which is settlement date for these bonds. On these bonds, about 37 percent of the debt serviced will be serviced with special assessments. These are Various Purpose Bonds, and the breakdown is between general obligations of the streets and the general public. The split on the debt service is about 37 percent special assessments and 63 percent general public. 

 

Council Member Buschkoetter introduced Ordinance No. 6937, being Subsection 1 of Agenda Item VI to authorize the issuance Various Purpose Bonds of the City of Kearney, Nebraska, in the principal amount of Four Million Four Hundred Twenty-five Thousand Dollars ($4,425,000.00) for the purpose of paying the costs of improving streets and intersection in Paving Improvement District Nos. 2000-822, 2000-829, 2000-837, 2000-838, 2000-839, 2000-841, 2000-842, 2000-843, 2000-844, 2000-845, 2000-846, 2000-847, 2000-848, 2000-849, 2000-850, 2000-851, 2000-852, 2000-854, 2000-855, 2000-856, and 2000-857; directing the application of the proceeds of said bonds; prescribing the form of said bonds; providing for the levy and collection of taxes to pay the same; providing for the sale of the bonds; and authorizing the delivery of the bonds to the purchaser, and moved that the statutory rules requiring ordinances to be read by title on three different days be suspended and said ordinances be considered for passage on the same day upon reading by number only, and then placed on final passage and that the City Clerk be permitted to call out the number of the ordinance on its first reading and then upon its final passage.  Council Member Hadley seconded the motion to suspend the rules.  President of the Council asked for discussion or if anyone in the audience was interested in the ordinance.  No one responded.  Clerk called the roll which resulted as follows:  Aye: Blankenship, Zapata, Hadley, Buschkoetter.  Nay: None.  Kearney abstained.  Motion to suspend the rules having been concurred in by three-fourths of the City Council, said motion was declared passed and adopted.  City Clerk read Ordinance No. 6937 by number.  Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows:  Aye: Blankenship, Zapata, Hadley, Buschkoetter.  Nay: None.  Kearney abstained. Motion carried.  Ordinance was read by number.

 

Moved by Hadley seconded by Zapata that Ordinance No. 6937 be passed, approved and published as required by law.  Roll call resulted as follows:  Aye: Blankenship, Zapata, Hadley, Buschkoetter.  Nay: None.  Kearney abstained. Motion carried.

 

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 6937 is declared to be lawfully passed and adopted upon publication in pamphlet form and made available to the public at the Office of the City Clerk, the Kearney Police Department and the Kearney Public Library.

 

CRANES ON PARADE PROJECT

 

Mayor Blankenship opened for discussion the License Agreement between the City of Kearney and Kearney Dawn Rotary/Kearney Dawn Prism, Inc. to permit the placement and display of “Cranes on Parade Project” statues on public property such as in parks and on rights-of-way and to consider Resolution No. 2003-26.

 

“Cranes on Parade” is an event that is being sponsored by the Kearney Dawn Rotary Club. This event celebrates the annual migration of the sandhill crane to the Kearney area. Nationally renowned artist, Martha Pettigrew, has sculpted a prototype crane that local artists are decorating/painting. This project consists of the production, installation, and display of life size crane statues in public places.

 

The cranes from this event will be staged around the community. Some of the cranes will be displayed on public property. Members of the Kearney Dawn Rotary Club want to enter an Agreement that would allow them to display crane sculptures on City property. This would include, but not limited to, public parks and on public rights-a-way. The sponsors of this project would be responsible for securing the sculptures and they are planning to place each sculpture on a small concrete base.  Installation of the statues will take place in March 2003 where they will remain through summer and fall of 2003. Removal of all statues by members of the Kearney Dawn Rotary Club will happen no later than October 20, 2003.

 

This agreement will not have a fiscal impact on the City as the Cranes on Parade organization will cover the cost of installation and removal of the cranes. The Cranes on Parade organization will insure the cranes.

 

Dave Keiter and Pat Jones were present to address this matter.  Mr. Keiter stated the Kearney Rotary Club has established a non-profit corporation that is called “Kearney Dawn Prism”. Rotary International requires them to be a separate entity from the regular Kearney Rotary to do a project of this type. The agreement will be between Kearney Dawn Prism and the City of Kearney.

 

The concept of “Cranes on Parade” is not a new concept. This was presented to them about a year and half ago by one of the Noon Rotarians, Bill Ballou, as a possible fundraiser for one of their service projects. 

 

In order to make this possible, it takes a good team.  Sue Biggs has chaired the committee, and on that committee was Pat Jones and along with Pat came about 90 percent of the artists in Kearney, Nebraska. The other committee members are Dr. Karl Wardyn, Mike Kalb, and Stephanie Dicky. The concept is a take off of the parade of cows in Chicago and Kansas City and the Does project in Omaha. This has been a tried and true event in other cities. It takes something that is unique to the area, which in our case are the cranes. They hired Martha Pettigrew, who did the sculpture of the crane. The sculpture was then taken to Gibbon Fiberglass where Charlie Spenser made 31of the 6-foot renditions of the crane.

 

The committee worked with Public Works on placing the cranes throughout the community. The cranes will be unveiled after the ribbon cutting ceremony at the Rowe Sanctuary on Thursday at the multi-city mixer. Roger Jasnoch, with the Kearney Visitors Bureau, has been instrumental in allowing them to be involved in these activities. The public showing will be on March 1st and March 2nd at Rowe Sanctuary south of Gibbon. The cranes will be taken to the State Capital Building for a week in connection with the Nebraska Platte River Area Communities that will be doing a spring crane migration. Between March 7th and whenever spring arrives in Kearney, they will be placing these cranes in the rights-of-way.  In some cases, they will be in front of some of the sponsors’ businesses.

 

There are four that impact the City property, which will be placed at Meadowlark Golf Course, the Kearney Public Library, the Airport terminal, and the Spillway Park by the University. The remainder will be placed in front of the sponsor’s business or other businesses that would benefit from the exposure of the Cranes in front of their establishments. The goal is to bring tourism off the Interstate into our city to experience the creativity on these crane canvases. The plan is to try to bring them all together for Art in the Park in July. The auction will be at MONA on October 11th, where they will be auctioned and the funds will actually be raised. There is a list of 19 recipients that will receive these funds.     

 

Moved by Zapata seconded by Blankenship to approve the License Agreement between the City of Kearney and Kearney Dawn Rotary/Kearney Dawn Prism, Inc. to permit the placement and display of “Cranes on Parade Project” statues on public property such as in parks and on rights-of-way and approve Resolution No. 2003-26.  Roll call resulted as follows:  Aye: Blankenship, Hadley, Buschkoetter, Kearney, Zapata.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2003-26

 

BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the President be and is hereby authorized and directed to execute the License Agreement on behalf of the City of Kearney, Nebraska, with Kearney Dawn Rotary/Kearney Dawn Prism for the displaying of six-foot crane statues on designated public property as set forth in the Agreement, a copy of the License Agreement, marked Exhibit “1”, is attached hereto and made a part hereof by reference.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR ROOF REPLACEMENT AT MAINTENANCE FACILITY AT WASTEWATER TREATMENT PLANT

 

Mayor Blankenship opened for discussion the bids received for the Roof Replacement at the Maintenance Facility at the Wastewater Treatment Plant and to consider Resolution No. 2003-27 awarding the bid to Walker Roofing of Lexington, Nebraska in the amount of $12,997.00.

 

In this year’s budget the Wastewater Treatment Plant Division included $7,000.00 for the replacement of the roof on the Maintenance Building.  The roof has some leaks and is in need of replacement at this time.  In addition to the roof replacement an exterior roof access ladder was added to the project to improve safety when performing maintenance on roof mounted ventilating equipment.  Additionally, Miller and Associates, the City’s Engineer, recommended a higher quality roof than the roof quoted at budget time.

 

The Council approved the Plans and Specifications for this project at the January 14, 2003 Council meeting.

 

On February 6, 2003 the City received sealed bids for the Roof Replacement on the Maintenance Building at the Wastewater Treatment Plant.  A bid tabulation sheet and the architect’s letter recommending award of the bid are attached for your review.  Four bids were received.  Walker Roofing of Lexington submitted the low bid in the amount of $12,997.00.

 

$7,000.00 was included in this year’s budget for the Roof Replacement at the Maintenance Building at the Wastewater Treatment Plant.  The Engineer’s Estimate for the project was $24,200.00.  The low bid received in the amount of $12,997.00 is $11,203.00 below the Engineer’s Estimate and $5,997.00 above the amount budgeted. 

 

Because the roof is leaking and because the bid received is such a good value for the project, Administration has decided that the extension of the lawn irrigation system that was included in the budget in the amount of $5,000.00 can be delayed and that cumulative savings on other line items within the budget will be used for the roof replacement project.

 

Scott Sanders from Miller & Associates was present to answer any questions.  

 

Moved by Blankenship seconded by Kearney to approve the bids received for the Roof Replacement at the Maintenance Facility at the Wastewater Treatment Plant and approve Resolution No. 2003-27 awarding the bid to Walker Roofing of Lexington, Nebraska in the amount of $12,997.00.  Roll call resulted as follows:  Aye: Blankenship, Buschkoetter, Kearney, Zapata, Hadley.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2003-27

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 6, 2003, at 2:00 p.m. for the Roof Replacement at the Maintenance Facility at the Wastewater Treatment Plant; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $24,200.00; and

WHEREAS, the said engineers have recommended the bid offered by Walker Roofing of Lexington, Nebraska in the sum of $12,997.00 be accepted as the lowest responsible bid.  

            NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that Walker Roofing of Lexington, Nebraska be and is the lowest responsible bidder for the Roof Replacement at the Maintenance Facility at the Wastewater Treatment Plant to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Walker Roofing in the sum of $12,997.00 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the Roof Replacement at the Maintenance Facility at the Wastewater Treatment Plant in the amount of $24,200.00 be and is hereby accepted.

BE IT FURTHER RESOLVED that the President of the Council of the City of Kearney, Nebraska, be and is hereby authorized and directed to execute contracts for such improvements in accordance with the bid, plans, specifications, and general stipulations pertaining thereto.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR 11TH STREET PEDESTRIAN BRIDGE

 

Mayor Blankenship opened for discussion the bids received for the construction of the 11th Street Pedestrian Bridge and to consider Resolution No. 2003-28 awarding the bid to Simon Contractors of North Platte, Nebraska in the amount of $53,769.00.

 

When the City and County originally replaced the 11th Street Bridge we agreed to build it 48-foot wide to accommodate the future 11th Street as a 4-lane road. In the meantime, we have used the additional width on the bridge to accommodate the 2-lane road and the recently completed Hike Bike Trail. With the 4-lane extension of 11th Street to Kea West Road we can no longer accommodate the Hike Bike Trail on the existing bridge and must add an additional section to the south side for pedestrians.

 

Sealed bids for the Hike Bike Trail Improvements to the south side of the existing 11th Street Bridge were received on Tuesday, February 18, 2003 at 2:00 p.m.  The following three (3) bids were received:

 

                        Simon Contractors, Inc., North Platte                               $53,769.00

                        Midlands Contracting, Inc., Kearney, NE                          $67,442.50

                        Diamond Engineering Co., Grand Island                           $78,790.25

 

All proposals have been reviewed. No errors, omissions, or exceptions were noted.  The contractor’s completion date is July 25, 2003.

 

The Engineer’s Opinion of Probable Construction Cost was $74,275.00. The low bid from Simon Contractors, Inc., is 28% below the Engineer’s Opinion of Probable Construction Cost. Advertisements for Bids were transmitted to the attached list of Contractors, plan houses and suppliers in the area. The Engineer therefore recommended the bids be accepted and the contract awarded to Simon Contractors, Inc. in the amount of $53,769.00.

 

Kent Cordes from Miller & Associates presented this matter to the Council. They anticipate actual construction time should be about a month. The original date of completion was set for May 18th. Due to current concerns of some of the contractors not being able to get materials in time, the date has been extended to July 11th by addendum. Even though they are anticipating a later starting date, the actual construction should take about a month. When the double-T bridge is brought in and set on the abutments, they anticipate the possibility that 11th Street would be closed temporarily that day or for at least a few hours.

 

Moved by Kearney seconded by Buschkoetter to approve the bids received for the construction of the 11th Street Pedestrian Bridge and approve Resolution No. 2003-28 awarding the bid to Simon Contractors of North Platte, Nebraska in the amount of $53,769.00.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Zapata, Hadley, Buschkoetter.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2003-28

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 18, 2003, at 2:00 p.m. for the construction of the 11th Street Pedestrian Bridge; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $74,275.00; and

WHEREAS, the said engineers have recommended the bid offered by Simon Contractors of North Platte, Nebraska in the sum of $53,769.00 be accepted as the lowest responsible bid.  

            NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that Simon Contractors of North Platte, Nebraska be and is the lowest responsible bidder for the construction of the 11th Street Pedestrian Bridge to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Simon Contractors in the sum of $53,769.00 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the construction of the 11th Street Pedestrian Bridge in the amount of $74,275.00 be and is hereby accepted.

BE IT FURTHER RESOLVED that the President of the Council of the City of Kearney, Nebraska, be and is hereby authorized and directed to execute contracts for such improvements in accordance with the bid, plans, specifications, and general stipulations pertaining thereto.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR UTILITIES DEPARTMENT VEHICLE STORAGE FACILITY

 

Mayor Blankenship opened for discussion the bids received for the construction of the Vehicle Storage Facility for the Utilities Department located at 1220 East 26th Street and to consider Resolution No. 2003-29 awarding the bid to BD Construction of Kearney, Nebraska in the amount of $214,890.00.

 

In this year’s budget, the Water Distribution Division included funds for the construction of a Vehicle Storage Building. The proposed Vehicle Storage Building is to be constructed just west of the Utilities Department Administrative offices at 1220 East 26th Street.

 

The Vehicle Storage Building will house ten major pieces of equipment for the Water Distribution Division and three major pieces of equipment for the Sewer Collection Division. Several pieces of this equipment need to be stored inside during the winter because they carry water in tanks and pumps that must not be allowed to freeze. The other equipment should be kept inside in order that it will be available during all types of weather in case of emergencies such as broken water mains and stopped sewer mains.

 

At the January 28, 2003 City Council meeting, the Council approved the Plans and Specifications for the Vehicle Storage Building and set February 19, 2003 as the bid opening date.

 

On February 19, 2003 the City received eight bids for the Utilities Department Vehicle Storage Building. B-D Construction of Kearney submitted the low bid in the amount of $214,890.00. The bid was for the removal of the existing shop building at the site and for the construction of a 60 foot by 100 foot metal building with a brick wainscoting and colored roof and siding to match the Utilities Department office building. The building bid included infrared heating, a fire suppression system, a bathroom, break-room and an office within the building.  Paving and chain link fence were also included in the bid. 

 

Administration realized that after adding colored siding, roof and the brick wainscoting in addition to the infrared heat and fire sprinkler system that the cost of the building may approach the amount budgeted without the interior finishes.  Alternate bids were requested deducting the office, break-room and bathroom in Alternate Number One, the chain link fence in Alternate Number Two and the Paving in Alternate Number 3. The Engineer’s Estimate for the project was $185,000.00. The low bid with the Alternates deducted is $168,490.00 or $16,510.00 below the Engineer’s Estimate. Contingencies associated with the removal of the existing building, foundation and paving may be one of the main reasons for a higher bid than anticipated.

 

Administration believes receiving bids this early in the year insured that it would receive a competitive bid. This is reflected in the fact that eight bids for the project were received and that the range of the bids was so close.  It is believed that the low bid is an accurate representation of the cost of construction and that a better bid may not be received even if the project was re-bid at a later date. Additionally, Administration believes that the building will be an excellent asset to the site and be visually pleasing to the passing motorist and neighboring property.

 

$150,000.00 has been included in this year’s Water Distribution Division Budget for this project. The low bid is $168,490.00 with the Alternates deducted. The Sewer Collection Division and the Water Production Division will also benefit from this project and money from those budgets is available so that the entire cost of the building can be paid from this year’s budget. Administration proposes to construct the Alternates that were bid as deducts and deleted from the project in next year’s budget. Under this plan there are funds available in this budget to construct the building with infrared heat, brick wanes coating and the plumbing roughed in to allow for future improvements.

 

Dick Stacy from Miller & Associates presented this matter to the Council. The bid of $214,000.00 did exceed the engineer’s estimate, but they were expecting it to be higher due to the fact that the department had to have a building of a certain size to house the vehicles. When the budget is tight, there is the option of reducing the size of the building or reducing the amenities and they were not sure how close they would be. They asked for alternates that would allow a building to be constructed that meets the needs for the immediate future to get the trucks out of the weather and be completely heated. The building is a basic building; the alternates that were taken out were the interior office and a break room. Those facilities will be roughed in under this bid for future construction. They have a master plan to work from and also have the building for the vehicles. The recommendation was for the award of the contract to BD Construction in the amount of $168,490.00. The construction time will be approximately 150 days. 

 

Moved by Buschkoetter seconded by Hadley to approve the bids received for the construction of the Vehicle Storage Facility for the Utilities Department located at 1220 East 26th Street and approve Resolution No. 2003-29 awarding the bid to BD Construction of Kearney, Nebraska in the amount of $214,890.00.  Roll call resulted as follows:  Aye: Blankenship, Zapata, Hadley, Buschkoetter, Kearney.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2003-29

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 19, 2003, at 2:00 p.m. for the construction of the Vehicle Storage Facility for the Utilities Department located at 1220 East 26th Street; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $185,000.00; and

WHEREAS, the said engineers have recommended the bid offered by B-D Construction of Kearney, Nebraska in the sum of $168,490.00 be accepted as the lowest responsible bid.  

            NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that B-D Construction of Kearney, Nebraska be and is the lowest responsible bidder for the construction of the Vehicle Storage Facility for the Utilities Department located at 1220 East 26th Street to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of B-D Construction in the sum of $168,490.00 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the construction of the Vehicle Storage Facility for the Utilities Department located at 1220 East 26th Street in the amount of $185,000.00 be and is hereby accepted.

BE IT FURTHER RESOLVED that the President of the Council of the City of Kearney, Nebraska, be and is hereby authorized and directed to execute contracts for such improvements in accordance with the bid, plans, specifications, and general stipulations pertaining thereto.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR ROOF REPLACEMENT PROJECT FOR EAST HALF OF CITY HALL

 

Mayor Blankenship opened for discussion the bids received for the Roof Replacement Project for the East Half of City Hall and to consider Resolution No. 2003-30 awarding the bid to Weathercraft Co. of Grand Island, Nebraska in the amount of $47,617.00.

 

As part of the 2002 Long Range Goals and Budget process the City Council approved a reroofing project for a the east half of City Hall this year and the west half next year. On December 23, 2002, the Council approved the Plans and Specifications and set the bid opening date for January 16, 2003. The City received two bids:

 

                                                                                                            Add/Deduct

Bidder                                                   Base Bid                                   Unit Price/S.F.              

Dobberstein Roofing Company                $51,600.00                                $1.50

Weathercraft Co. of Grand Island             $58,916.00                                $0.35

 

Considering both bids were over the engineer’s estimate of $49,500.00, and the potential for the construction costs to be even greater because of the unit price for removing additional roofing, the Council rejected both bids and authorized Administration to re-bid the project. 

 

With the engineer’s estimate being $49,500.00 and by going out for additional bids, the City believes it can get a better price on the project and save the taxpayers some money.  The City also extended the completion date until July to leave it more open for contactors to bid on it. The completion date will be changed from May to July so that contractors can work it into their schedule and potentially provide a better bid to the City. In addition, the unit prices for removal of additional roofing will be eliminated. This is a contingency that could drive the cost of the project up.

 

Specifications will be modified to indicate that the contractor would be responsible for his own investigation of how much roofing material there is on each portion of the roof and provide a bid according to those results. Everyone would be bidding the same thing and after that, there should not be any contingencies at all for the project.

 

The City re-bid the project and sealed bids for the reroofing project for the east half of City Hall were received on Wednesday, February 19, 2003. The following three (3) bids were received:

 

Bidder                                                               Base Bid                                                          

Weathercraft Co., Grand Island                           $47,617.00

Ziemba Roofing Company, Hastings                    $51,480.00

Energy Roofing Technology                                 $67,547.67

 

All proposals have been reviewed. No errors, omissions, or exceptions were noted.  The contractor’s completion date is July 1, 2003.

 

The Engineer’s Opinion of Probable Construction Cost was $49,500.00. The low bid from Weathercraft Co., is 4% below the Engineer’s Opinion of Probable Construction Cost. Advertisements for Bids were transmitted to the attached list of Contractors, plan houses and suppliers in the area. The Engineer therefore recommended the bids be accepted and the contract awarded to Weathercraft Co., in the amount of $47,617.00.

 

Scott Sanders from Miller & Associates was present to answer any questions.

 

Moved by Hadley seconded by Zapata to approve the bids received for the Roof Replacement Project for the East Half of City Hall and approve Resolution No. 2003-30 awarding the bid to Weathercraft Co. of Grand Island, Nebraska in the amount of $47,617.00.  Roll call resulted as follows: Aye: Blankenship, Hadley, Buschkoetter, Kearney, Zapata. Nay: None. Motion carried.

 

RESOLUTION NO. 2003-30

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 19, 2003, at 2:00 p.m. for the Roof Replacement Project for the East Half of City Hall; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $49,500.00; and

WHEREAS, the said engineers have recommended the bid offered by Weathercraft Co. of Grand Island, Nebraska in the sum of $47,617.00 be accepted as the lowest responsible bid.  

            NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that Weathercraft Co. of Grand Island, Nebraska be and is the lowest responsible bidder for the Roof Replacement Project for the East Half of City Hall to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Weathercraft Co. in the sum of $47,617.00 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the Roof Replacement Project for the East Half of City Hall in the amount of $49,500.00 be and is hereby accepted.

BE IT FURTHER RESOLVED that the President of the Council of the City of Kearney, Nebraska, be and is hereby authorized and directed to execute contracts for such improvements in accordance with the bid, plans, specifications, and general stipulations pertaining thereto.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR RECYCLING CENTER AT 3007 EAST 39TH STREET

 

Mayor Blankenship opened for discussion the bids received for the construction of the Recycling Center located at 3007 East 39th Street and to consider Resolution No. 2003-31 awarding the bid to Interstate Structures of Kearney, Nebraska in the amount of $1,293,179.00.

 

In this year’s budget funds were included for the construction of the Kearney Area Recycling Center. At the January 14, 2003 City Council meeting the Council approved the Plans and Specifications for the construction of the Kearney Area Recycling Center. The Recycling Center will also house the Sanitation Division trucks and equipment. The building will be approximately 47,000 total square feet in area.  About 3,500 square feet of the building will be employee facilities such as the break room, locker room, meeting room and offices for the Sanitation Foreman. About 14,500 square feet of the building will be for truck and equipment storage.  The remaining 29,000 square feet will be used for recyclable processing, storage and shipping.

 

The building design and site plan were reviewed and approved by the Planning Commission and City Council. The site will be heavily landscaped under a separate contract after the building is completed. Recycling equipment is not included in the building contract. Existing recycling equipment will be moved from the existing building. Some new equipment is being considered in future budgets.  Office furniture and equipment will be purchased from next year’s Sanitation Fund budget.

 

On February 18, 2003 the City received sealed bids for the construction of the Kearney Area Recycling Center. Ten bids were received. Interstate Structures Inc. of Kearney submitted the low bid in the amount of $1,293,179.00 with a completion date of 180 days.

 

The low bid is $184,821.00 below the Engineer’s Estimate of $1,478,000.00. The low bid is $356,821.00 below the $1,650,000.00 included in the budget. The funds remaining will be used for landscaping and for possible change orders that may be required to finish the project.

 

The construction of the Kearney Area Recycling Center was included in this year’s budget.  The cost of construction will be funded by cash reserves in the Sanitation Division and the Kearney Area Solid Waste Agency Fund. The total amount included in this year’s budget for the construction of the recycling center is $1,650,000.00. The low bid is $356,821.00 below the amount budgeted and $184,821.00 below the Engineer’s Estimate.

 

Dick Stacy from Miller & Associates presented this matter to the Council. He did point out that the difference between the first, second, and third bidder was one half of one percent. They believe that they have chosen the best proposal for the City. It is a very large building and will be very significant in the future for the City for recycling for City Utilities. The proposal stated 180 days to completion.  Mr. Stacy believed that that was optimistic given the present delivery time of steel. They will discuss that with the contractor at the pre-bid conference, so that a realistic date can be established.

 

Moved by Zapata seconded by Blankenship to approve the bids received for the construction of the Recycling Center located at 3007 East 39th Street and approve Resolution No. 2003-31 awarding the bid to Interstate Structures of Kearney, Nebraska in the amount of $1,293,179.00.  Roll call resulted as follows:  Aye: Blankenship, Buschkoetter, Kearney, Zapata, Hadley.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2003-31

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 18, 2003, at 2:00 p.m. for the construction of the Recycling Center located at 3007 East 39th Street; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $1,478,000.00; and

WHEREAS, the said engineers have recommended the bid offered by Interstate Structures, Inc. of Kearney, Nebraska in the sum of $1,293,179.00 be accepted as the lowest responsible bid.  

            NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that Interstate Structures, Inc. of Kearney, Nebraska be and is the lowest responsible bidder for the construction of the Recycling Center located at 3007 East 39th Street to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Interstate Structures, Inc. in the sum of $1,293,179.00 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the construction of the Recycling Center located at 3007 East 39th Street in the amount of $1,478,000.00 be and is hereby accepted.

BE IT FURTHER RESOLVED that the President of the Council of the City of Kearney, Nebraska, be and is hereby authorized and directed to execute contracts for such improvements in accordance with the bid, plans, specifications, and general stipulations pertaining thereto.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

PLANS AND SPECIFICATIONS FOR 56TH STREET BOX CULVERT

 

Mayor Blankenship opened for discussion the Plans and Specifications for the construction of the 56th Street Box Culvert and set the bid opening date for March 18, 2003 at 2:00 p.m.

 

As part of the 2002 Long Range Goals, Budget process, and the current One and Six Year Street Plan, the City Council approved Paving Improvements for 56th Street from 2nd Avenue to Avenue N.  The first phase of this project is to replacethe galvanized culvert under 56th Street with a concrete box culvert that will allow the installation of a 4-lane road over the top in the next phase of this project.

 

The City is ready to advertise and receive bids for the construction of the Box Culvert Phase of the 56th Street project at this time.  Attached is a letter from Kent Cordes requesting approval of the plans and specifications and to set the bid opening date for March 18, 2003 at 2:00 p.m.

 

The Engineer’s Opinion of Probable Construction Cost ranges between $80,000 and $150,000.  The work involved will be substantially complete on or before May 30, 2003.

 

Kent Cordes from Miller & Associates presented this matter to the Council. The substantial completion date for the project is May 30th, which is a fairly ambitious schedule again, but they are trying to tie this in with some other work on the 56th Street widening project. They are anticipating closing the road between Avenue N and Avenue E for construction of the box culvert. While the culvert is under construction, the widening of the road will begin so the road will only be closed once. After the widening project is done, 56th Street will be four-lane.

 

Moved by Blankenship seconded by Kearney to approve the Plans and Specifications for the construction of the 56th Street Box Culvert and set the bid opening date for March 18, 2003 at 2:00 p.m.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Zapata, Hadley, Buschkoetter. Nay: None. Motion carried.

 

PLANS AND SPECIFICATIONS FOR 2003 PART I IMPROVEMENTS

 

Mayor Blankenship opened for discussion the Plans and Specifications for the 2003 Part I Improvements consisting of Paving Improvement District No. 2002-868 for 39th Street from 22nd Avenue to 30th Avenue and set the bid opening date for March 27, 2003 at 2:00 p.m.

 

As part of the 2002 Long Range Goals, the Budget process, and the current One and Six Year Street Plan, the City Council approved Paving Improvement District No. 2002-868 for 39th Street from 22nd Avenue to 30th Avenue.

 

The City is ready to advertise and receive bids for the construction of the aforementioned project and to set the bid opening date for March 27, 2003 at 2:00 p.m. The Engineer’s Opinion of Probable Construction Cost ranges between $500,000 and $1,000,000.  The work involved should be substantially complete within 150 days.  Additionally, all work will be substantially complete on or before November 1, 2003.

 

Dave Mead from Miller & Associates was present to answer any questions.

 

Moved by Kearney seconded by Buschkoetter to approve the Plans and Specifications for the 2003 Part I Improvements consisting of Paving Improvement District No. 2002-868 for 39th Street from 22nd Avenue to 30th Avenue and set the bid opening date for March 27, 2003 at 2:00 p.m.  Roll call resulted as follows: Aye: Blankenship, Zapata, Hadley, Buschkoetter, Kearney.  Nay: None. Motion carried.

 

GREAT PLATTE RIVER ROAD MEMORIAL ARCHWAY BOND SETTLEMENT

 

Mayor Blankenship opened for consideration approving and ratifying The Great Platte River Road Memorial Archway Bond Settlement Agreement subject to certain conditions and to consider Resolution No. 2003-32.

 

The Great Platte River Road Memorial Arch Foundation has struggled with payment of the bonds that were issued to construct the Arch. An “Event of Default” occurred under the Loan Agreement commencing as of July 1, 2002 when there were insufficient funds in the Debt Service Fund to pay the interest due on July 1, 2002. Wells Nebraska gave notice of the Event of Default to the City on July 15, 2002. On November 15, 2002, Wells Nebraska accelerated the bonds based on the Event of Default. Because it is unable to pay the bond payments required after acceleration, the Foundation proposed to compromise its obligation to repay the bonds, rather than to force the co-trustees into foreclosing on the Project. The majority of the holders of the bonds prefers to compromise the obligations under the bonds rather than to foreclose on the mortgage and directed the co-trustees to enter into the Settlement Agreement.

 

The Co-Trustees and Foundation propose to reissue “New Bonds” as described in Section 1.2, page 2 of the proposed Agreement. The rest of the terms of the agreement are self-explanatory.  Section 4.4, page 7 of the Agreement applies to the City’s obligations. The Co-Trustees (Wells Minnesota) has required that the City ratify and approve the Agreement. Kearney, in turn, have requested that certain conditions or provisions be included in the final documents to be presented to the Court, and in the required opinions of Counsel, including Bond Counsel, in order to ensure that the City does not incur any pecuniary responsibility or liability, or any new obligation by approving the Agreement. The parties to the Agreement have agreed to our requested amendments.

 

The City Attorney has drafted the appropriate provisions as part of Resolution No. 2003-32 to ensure that the City does not incur any new or additional pecuniary liability or responsibility for the bonds by virtue of having approved the Settlement Agreement, including responsibility or liability under the Securities Laws.

 

According to Section 13-1104 and all of the documents that have ever been issued with regard to these Series 1998 IDB bonds, the City does not and did not incur any pecuniary liability or any charge upon its general credit or against its taxing powers. The Settlement Agreement reduces the outstanding debt load obligated to be repaid by the Foundation however, and negates possible foreclosure on the project.

 

Mike Sumpter from the Great Platte River Road Memorial Arch presented this matter to the Council. He stated that they believe that this agreement buys them time which is the thing that they need most. It buys them time in an environment where they have an opportunity to achieve reasonable, conservative, operational projections. The journey they have had in 2002, which he considers to be more of a transitional year for the Archway, has been a time for learning a lot of good lessons. They have implemented new operational behaviors, new ways to project, ways to project for the future in terms of their marketing strategies, and development of infrastructure. He believes they have a very realistic chance for viability as they move forward with this development of process combined with this agreement. They are very excited about the alternatives they have now and with the help of the City they will continue that momentum. 

 

City Attorney Mike Kelley stated that the Settlement Agreement is between the parties who are creditors and the Foundation. It does not include the City as a party. The only reason that the Council has been asked to approve the agreement is because we were the issuing entity for the bonds. The law requires that they have the Council’s approval before they go ahead with the Settlement Agreement. Resolution 2003-32 expresses the Council’s approval of the Settlement Agreement subject to certain conditions that have been added through the work of Mr. Sumpter and the Bond Counsel, Richard Pedersen. Those conditions set forth are a result of their attempts to make sure that the City does not incur or assume any liability. The City did not have any monetary obligations when the bonds were issued and want to make sure that it do does not incur any by the simple act of approving the settlement so those conditions are set forth.  He pointed out that that condition is in the last paragraph, that the conditions that have been expressed there be included in all final approval documents presented to the courts.  This Settlement Agreement will have to be sent to the courts to be approved.  

 

Councilman Kearney stated that there has been considerable conversation that people have jumped to conclusions or assumed, as elected officials that would do something to obligate the City. He believed that the language used to phrase this resolution has been chosen very carefully through out this transition. Anyone who chooses to read this resolution should be able to clearly see that the City is under no monetary obligation for this agreement. A couple years ago, there were those people that asked if it would affect the City’s bond rating if something happened to the Archway’s bonds.  Tonight the report on the City bonds was that the City has a triple-A rating, which further verifies that the Council has been careful. He complimented Mr. Kelley for presenting a resolution with very clear language.

 

Councilman Hadley complimented the Great Platte River Foundation for working this out and making this work. He believed that everyone wants this to succeed and that this is a good solution. He stated he knows what hard work goes into getting a settlement of this kind approved and that it is a very positive thing for them.

 

Mayor Blankenship also stated that he is pleased with this agreement. This is an alternative that is going to help the Archway proceed with their original goal and mission. It protects the City, which had neither an obligation with the first issuance nor with this issuance.

 

Councilman Buschkoetter said he also felt comfortable with this. He was very happy with the possibility of the Arch going forward and putting some of these issues behind them. He believed that anyone that thinks about this situation rationally is rooting for it and for how this is going to work. He feels comfortable with how the City has been able to protect itself, and allowing the Archway to improve itself through this process.

 

Mr. Sumpter said that the response from Kearney and the region has been enormously positive. For example, they kick-started a volunteer program only sixty days ago, which is growing like a weed. They have been very excited about the reception that they have received as they attempt to reach out with the programs to their friends and neighbors. They plan to do more of that as they move forward.

 

Mr. Sumpter stated that regarding education, one of the things they have learned, is that they are mandated by their 501C status as a Foundation to deliver on the promise of their mission. That is really the ball that they are keeping their eyes on. A major component of that mission is educational, which leads them toward youth. 

 

In the near future, you will see evidence of a fairly aggressive effort to attempt to catch up in that area. This will be done by partnerships, outreach programs that they will initiate, fund raising efforts that will be kicked off later this spring for the purpose of generating dollars for grants and scholarships to assist Nebraska school teachers in focusing some of their students activities in the compelling historical story that Nebraska has to tell. That is irrespective of whether they attend the Archway or not.

 

They believe that they have a broader outreach scope in their mission than simply linking it to the building itself. Technically, the Foundation in terms of the mission is not tied to the building. The building is the major highest quality venue that they have to work with and are very proud of it. They believe that they should be attempting to reach further than that. There is not doubt that they need as much tourist related revenue that they can generate because it costs a lot of money to keep a building of that size and of that quality going. They are constrained greatly by their status. Even though they have been referred to as a “for profit enterprise”, and technically they are, their philosophical goal is to generate enough revenue to service their obligations including this debt. This is their only long-term debt to service to meet the needs of their mission. They will attempt to diversify those revenue screens as well by using their Foundation capabilities. There is no question that a large majority of the revenue is to come from Interstate-80. 

 

The Mayor asked how many original investors there were in the Archway project and if they were institutional in nature? Mr. Sumpter replied he believed there were seven houses originally and now there are five, which answers for 95 percent of the total investment.

 

Moved by Buschkoetter seconded by Hadley to approve and ratify The Great Platte River Road Memorial Archway Bond Settlement Agreement subject to certain conditions and approve Resolution No. 2003-32. Roll call resulted as follows: Aye: Blankenship, Hadley, Buschkoetter, Kearney, Zapata. Nay: None. Motion carried.

 

RESOLUTION NO. 2003-32

 

WHEREAS, Wells Fargo Bank Minnesota, National Association (“Wells Minnesota”), Wells Fargo Bank Nebraska, National Association (“Wells Nebraska” and together with Wells Minnesota, the “Co-Trustees”), the Great Platte River Road Memorial Foundation, a non-profit Corporation organized under the laws of the State of Nebraska (the “Foundation”), have requested the City of Kearney to approve a “Settlement Agreement”, marked Exhibit “A”, attached hereto and made a part hereof, and

            WHEREAS, the Administration and City Attorney have reviewed the Settlement Agreement and recommended that it is in the best interests of the City of Kearney and its citizens to ratify and approve the said Settlement Agreement, subject to certain conditions, which conditions are to be included in final documents to be presented to the Court for approval, including opinions of Counsel, including Bond Counsel, and

            WHEREAS, the parties to the Settlement Agreement have indicated by and through their various attorneys that such conditions and provisions are acceptable,

            NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the Settlement Agreement executed on the 3rd day of February, 2003, by and between Wells Minnesota, Wells Nebraska and together with the Wells Minnesota, the “Co-Trustees”, and the Foundation be and is hereby ratified and approved in accordance with the terms and provisions of Section 4.4 “Agreement of City”, page 7 of said Agreement, subject to the condition that the aforesaid parties to the Agreement specifically acknowledge and agree that the Series 1998 IDB Bonds (hereafter the “Bonds”) were issued by the City of Kearney in accordance with the Nebraska Industrial Development Act, Nebraska Revised Statute Section 13-1101 to 13-1110, inclusive; that the Bonds were issued in accordance with the terms and provisions of Section 13-1103 (1) of the Nebraska Revised Statutes, and did not and shall not impose any pecuniary or general obligations on the City of Kearney, or a charge against the general credit or taxing powers of the City of Kearney; that neither the City of Kearney nor any of its agents, officers or employees has participated in or provided information for the preparation of the Settlement Agreement, and that, by approving the Settlement Agreement, the City of Kearney, Nebraska, does not and shall not (i) assume or create any pecuniary or legal obligation with regard to the Settlement Agreement, the Bonds or the issuance and the status of the Bonds as remaining outstanding; (ii) incur or assume any liability, obligation or responsibility with respect to any information, disclosure or other requirements of state and federal securities laws and related regulations, with respect to the Bonds or the Settlement Agreement; (iii) incur or assume any obligations provided for or arising under the Settlement Agreement; (iv) incur or assume or any obligation or responsibility with respect to the tax-exempt status of interest on the Bonds, heretofore or hereafter, under the terms of the Settlement Agreement.

            BE IT FURTHER RESOLVED by the President and Council that the aforestated provisions shall be included in all appropriate final documents presented to the Court for approval of the settlement and any reissue of Bonds, resulting from the Settlement Agreement, including appropriate opinions of Counsel and Bond Counsel.

            PASSED AND APPROVED THIS 25TH DAY OF FEBRUARY, 2003.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

OPEN ACCOUNT CLAIMS --      NONE

 

There were no Open Account Claims.

 

VII.    REPORTS

 

City Manager stated that the Director of Finance, Wendell Wessels, and he would be traveling to Lincoln on Wednesday to testify on LB 462 which is the lid bill.

 

VIII.    ADJOURN

 

Moved by Zapata seconded by Kearney that Council adjourn at 9:02 p.m.  Roll call resulted as follows: Aye: Blankenship, Buschkoetter, Kearney, Zapata, Hadley. Nay: None. Motion carried.

 

 

                                                                        BRUCE L. BLANKENSHIP

                                                                        PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

ATTEST:

 

MICHAELLE E. TREMBLY

CITY CLERK