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Kearney, Nebraska

February 24, 2004

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 24, 2004 in the Council Chambers at City Hall.  This meeting adjourned at 7:36 p.m.  A meeting of the City Council of Kearney, Nebraska, was then convened in open and public session at 7:37 p.m. in the Council Chambers at City Hall.  Present were:  Bruce L. Blankenship, President of the Council; Michaelle Trembly, City Clerk; Council Members Randy Buschkoetter, Stan Clouse, Galen Hadley, Don Kearney.  Absent: None.  G. Allen Johnson, City Manager; Michael Kelley, City Attorney; John Prescott, Assistant City 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: Jay Lumbard, Judy Lumbard, Mary Kalb, Philena English, Mike Martinosky, Ken Tracy, Chris Vasquez, Mitch Humphrey, Kent Cordes, Travis Mason, Marvion Reichert, Bruce Lefler, Cole Spresser, Jeni Schaben, Paul Wice from KGFW Radio, Mike Konz from Kearney Hub.

 

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 Tom Hansen from St. Luke’s Episcopal Church provided the Invocation.

 

PLEDGE OF ALLEGIANCE

 

Boy Scout Matthew Brown led the Council members and audience in the Pledge of Allegiance.

 

RECOGNITION – JAY LUMBARD

 

Mayor Blankenship and Council Members recognized Jay Lumbard for 30 years of service with Public Works/Fleet Maintenance. He was presented a watch.

 

ORAL COMMUNICATIONS

 

There was no Oral Communications.

 

II.    UNFINISHED  BUSINESS

 

There was no Unfinished Business.

 

III.    PUBLIC  HEARINGS

 

THUNDERHEAD BREWING – CATERING LIQUOR LICENSE

 

Moved by Clouse seconded by Hadley to remove from the table the Catering Application submitted by THUNDERHEAD BREWING CO., dba “Thunderhead Brewing” in connection with their Class “L-47920” (Craft Brewery) Liquor License located at 18 East 21st Street and to consider Resolution No. 2004-21. Roll call resulted as follows:  Aye: Blankenship, Hadley, Clouse, Kearney, Buschkoetter.  Nay: None.  Motion carried.

 

The holder of a Class C, Class D, Class I, or a Class L license may obtain an annual catering license.  A catering license shall be issued for the same period and may be renewed in the same manner as the Class C, Class D, Class I, or Class L licenses.  The holder of a catering license may deliver, sell, or dispense alcoholic liquor, including beer, for consumption at a premises designated in a special designated license approved by the City Council. The holder of a catering license shall continue to come before the Council for approval of Special Designated Licenses for events off their licensed premise. The advantage of having a Catering License is to allow the catering of alcohol off the licensed premises several times a year. Without a catering license, a license holder will only be issued a special designated license for six calendar days in any one calendar year.

 

The Nebraska Liquor Control Commission has received an application from THUNDERHEAD BREWING CO., dba “Thunderhead Brewing” located at 18 East 21st Street for a Catering License in connection with their Class “L” (Craft Brewery) Liquor License.  This application has been forwarded by the Nebraska Liquor Control Commission to the City for approval by the governing body.

 

Jeni Schaben, 317 West 28th Street, presented this matter to the Council. She apologized to the Council for not being at the last Council meeting. She stated that one of the reasons that they want a catering license is for events such as for Cozad and Eustis city celebrations where they can cater the beer and they provide the security. Thunderhead will be partnering with the places they are catering and security for minors will be address in the Special Designated License that they will obtain for each event. 

 

There was no one present in opposition to this hearing.

 

Moved by Hadley seconded by Buschkoetter to close the hearing and approve the Catering Application submitted by THUNDERHEAD BREWING CO., dba “Thunderhead Brewing” in connection with their Class “L-47920” (Craft Brewery) Liquor License located at 18 East 21st Street and approve Resolution No. 2004-21.  Roll call resulted as follows:  Aye: Blankenship, Clouse, Kearney, Buschkoetter, Hadley.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2004-21

 

            WHEREAS, THUNDERHEAD BREWING CO., dba “Thunderhead Brewing” has filed with the City Clerk of the City of Kearney, Nebraska, an application for a Catering License in connection with their Class “L-47920” (Craft Brewery) Liquor License and doing business at 18 East 21st Street, 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 24, 2004.

            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 Catering License to THUNDERHEAD BREWING CO., dba “Thunderhead Brewing” in connection with their Class “L-47920” (Craft Brewery) Liquor License located at 18 East 21st Street.

            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 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

IV.    CONSENT  AGENDA

 

Moved by Buschkoetter seconded by Blankenship that Subsections 1 through 9 of Consent Agenda Item IV be approved.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Buschkoetter, Hadley, Clouse.  Nay: None.  Motion carried.

 

1.         Approve Minutes of Regular Meeting held February 10, 2004.

 

2.         Approve the following Claims: 3M MDY9704 $1,350.00 Su; A-1 Refrigeration $2,598.00 Rep; Adamson Industrial $66.95 Rep; Albert Whitman & Co $11.81 Bks; Al-Jon $388,919.00 Equip; Alltel $720.14 Serv; Ameri Backflow Prevention Assoc $40.00 Dues; Anderson Ford $59,997.00 Vehicle; Anderson Wrecking $480.00 Rep; AT&T $87.22 Serv; Baker & Taylor Books $2,080.74 Bks; Barney Abstract $810.00 Serv; Baye, S $15.97 Cla; BBC Audiobooks America $186.38 Bks; BD Construction $3,696.50 Serv; Beacon Consulting Group $50.00 Tr; Bearcat Diner $1,417.50 Serv; Beideck, J $57.00 Reim; Bennett, T $1,366.50 Serv; Berens-Tate Consulting $1,000.00 Serv; Big Flag $462.76 Inv; Big O Tires $128.85 Su; Blessing Construction $1,912.50 Serv; BlueCross BlueShield $61,044.07 Claims; Books on Tape $748.80 Bks; Broadfoot Sand $1,361.94 Su; Buffalo Co Reg of Deeds $7.50 Serv; Builders How to Warehouse $749.57 Various; Butler, Voigt & Stewart $56.00 Su; Career Track $10.00 Tr; CDW Gov't $286.20 Equip; Central Platte NRD $3,625.00 Serv; Central States Group $6,920.94 Rep; CHAD $4.00 Ded; Charter Media $59.00 Serv; Christensen, D $112.50 Serv; City Glass $62.85 Rep; City of Ky $41,769.12 Various; Clark Enersen Partners $334.79 Serv; College Savings Plan of NE $295.00 Ded; Computerized Fleet Analysis $2,245.00 Serv; Cook Construction $2,000.00 Serv; Crossroads Ford $99.38 Rep; Culligan $125.30 Various; Dawson Co PPD $13,029.45 Serv; Dell $3,966.68 Equip; Depository Trust $16,560.00 Int; DPC $3,901.15 Su; Dreyer, D $116.87 Reim; Eakes  $3,061.76 Various; Ehrhart Griffin & Assoc $3,457.81 Serv; Eickhoff, B $366.10 Serv; Farm Plan $319.51 Rep; Fedex $126.95 Pstg; Freburg, N $184.62 Ded; Fremont Nat'l Bank $34,814.05 Ded; Frontier $8,301.52 Serv; G Neil $25.72 Su; Galls $352.39 Su; Gangwish Turf $35.00 Serv; Garrett Tires $1,548.94 Rep; Gary's I-80 $726.30 Serv; Great Amer Outdoor $322.91 Rep; Great Plains One-Call $143.15 Serv; H&G Cleaners $264.67 Serv; Hach $157.00 Rep; Hometown Leasing $206.00 Serv; Hotsy Equipment $88.04 Equip; ICMA RC $2,951.58 Ded; IRS $90,338.50 Taxes; Interstate Structures $151,819.74 Serv; Island Supply $2,998.00 Equip; Jack Lederman Co $1,527.86 Containers; Johnson, J $80.00 Reim; K&K Parts $7.73 Rep; Ky Clinic $304.00 Serv; Ky Crete $2,691.75 Serv; Ky Hub $2,236.91 Serv; Ky Tire $350.00 Serv; Kirkham Michael $16,118.82 Serv; Kirkwood, M $69.45 Tr; Laser Art Design $152.00 Various; Laughlin, K $360.00 Ded; Law Enforcement Assoc $73.00 Su; Lawson Products $105.04 Rep; LCL Truck Equipment $5,609.00 Equip; Lerner Publications $12.56 Bks; Lindner, S $34.50 Tr; Linweld $359.54 Various; Lockmobile $6.50 Rep; Lorman Education $279.00 Tr; Lynn Peavey Co $76.85 Equip; Magic Cleaning $600.00 Rep; Marlatt Machine Shop $1,083.78 Various; McCarty, D $15.00 Inv; Midwest Lab $433.00 Serv; Miller & Associates $1,345.50 Serv; Municipal Supply $812.20 Inv; NAPA $55.81 Rep; Nat'l Paper Supply $214.16 Su; NWWA $2,269.22 Various; NCS Equipment $178.26 Rep; NE Child Support $978.49 Ded; NE Machinery $24,957.93 Various; NE Truck Center $78,228.00 Equip; Nickman Bros $2,455.00 Serv; Northwestern $3,102.95 Serv; NSFSI $135.00 Tr; Officenet $78.72 Su; Olsen, C $563.15 Tr; Ostrander, R $148.35 Tr; Paramount Linen $290.54 Various; Pat's Plumbing $700.03 Rep; Patterson, B $49.45 Tr; PepperBall Tech $705.17 Equip; Pfeiffer, D $148.35 Tr; Pike & Fisher $169.00 Dues; Platte Valley Communications $3,086.48 Serv; Power Plan $1,058.46 Rep; PPCT Mgt Systems $127.00 Tr; Preferred Mail $94.63 Pstg; Presto-X $48.00 Rep; Ready Mixed Concrete $1,650.25 Serv; Recorded Books $847.95 Bks; Rembolt, Ludtke & Berger $98.00 Serv; Rich, T $44.95 Reim; Riverside $738.50 Serv; Road Builders $241,582.24 Equip; Sagebrush $108.24 Equip; S-F Analytical Lab $170.00 Serv; Sheldon, S $55.00 License; Sherwin Williams $1,016.46 Rep; Snap On Tools $100.00 Su; Solid Waste Equipment $329.61 Su; Spencer Turbine $1,437.73 Rep; Standard & Poor's $268.00 Bks; State of NE Dept of Aeronautics $370.00 Loan; State of NE HHS Lab $15.00 Serv; Super Shine $7.00 Rep; T&B Cleaning $1,500.00 Serv; Thomas, P $35.63 Tr; Tracy, K $47.93 Tr; Underground Construction $5,488.50 Serv; Ward Lab $24.00 Serv; Washington State Support $102.01 Ded; Weathercraft $9,680.81 Serv; Wessels, W $83.25 Tr; West Group $647.59 Tr; Wilke-Donovan's $28.56 Rep; Payroll Ending 02-07-2003 -- $242,201.72.  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 9, 2004 at 7:30 P.M. as date and time for hearing on those applications where applicable.

 

4.         Approve the application for a Special Designated License submitted by JCB ENTERPRISES, INC., dba “Bill’s Liquor” in connection with their Class C/K-39105 Catering Liquor License to dispense beer, wine and distilled spirits in the Ag Pavilion at the Buffalo County Fairgrounds, 3807 Avenue N, on June 5, 2004 from 3:00 p.m. until 1:00 a.m. for a wedding reception and dance.

 

5.         Approve the recommendation by the Mayor on the reappointment of Ron Larsen and Bruce Blankenship to serve as the City representatives on the Buffalo County Economic Development Council.

 

6.         Approve setting March 9, 2004 at 7:30 p.m. as time and date for the Board of Equalization to determine a connection fee in the amount of special benefits accruing to the property in the district which fee shall be paid to the City at the time such property becomes connected to the water line for Water Connection District No. 2002-1 for Cherry Avenue from 11th Street north to the Union Pacific right-of-way, thence east to Airport Road, thence north to 39th Street; Water Connection District No. 2002-2 for Avenue N from the north lot line of Lot 1, Block 2, Eastbrooke Addition, north a distance of 1,890 feet; and Water Connection District No. 2002-3A for 30th Avenue from the south lot line of Lot 17, Block 3, Lighthouse Point 6th Addition, north a distance of 1,371 feet.

 

7.         Approve the Certificate of Substantial Completion submitted by Blessing, LLC and approved by Miller & Associates in connection with the 2003 Part I Improvements consisting of Paving Improvement District No. 2002-868 for 39th Street from 22nd Avenue to 30th Avenue and approve Resolution No. 2004-29.

 

RESOLUTION NO. 2004-29

 

WHEREAS, Blessing LLC has performed services in connection with the 2003 Part I Improvements consisting of Paving Improvement District No. 2002-868 for 39th Street from 22nd Avenue to 30th Avenue, and the City’s engineer, Miller & Associates, have now certified to the City Clerk that work is substantially completed as of December 15, 2003, as shown by Exhibit “A” attached hereto and made a part hereof by reference.

 

Original Contract Sum

$765,648.50

     Change Order No. 1 (09-23-2003)

+    4,530.00

     Change Order No. 2 (12-23-2003)

+  21,001.85

Contract Sum to Date

$791,180.35

 

 

Work Completed to Date

$756,560.30

 

            NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, and hereby find and determine that the Certificate of Substantial Completion be and is hereby accepted and approved.

            PASSED AND APPROVED THIS 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

8.         Approve the recommendation submitted by the Fire Chief to include the following as members of the Kearney Volunteer Fire Department: Loren Richards, Brad Roggie, Kully Thatcher, and Steve Watson and approve Resolution No. 2004-30.

 

RESOLUTION NO. 2004-30

 

            WHEREAS, Mike Martinosky, Chief of the Kearney Volunteer Fire Department, has forwarded several names of individuals desiring to serve as volunteers in the Kearney Volunteer Fire Department; and

            WHEREAS, based on the recommendation of Chief Martinosky, the City Council of the City of Kearney, Nebraska hereby finds and determines that said persons listed are fully capable and qualified to serve a membership in the Kearney Volunteer Fire Department; and

            WHEREAS, in order to be qualified for benefits in accordance with Neb. Rev. Stat. §48-115, et seq., said volunteer firefighters acting outside the corporate limits of the City must be officially directed to do so in order to be eligible.

            NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Kearney, Nebraska, that those persons recommended by the Chief of the Kearney Volunteer Fire Department for membership in the Kearney Volunteer Fire Department as set forth on the attached letter of recommendation, marked Exhibit “A,” attached hereto and made a part hereof by reference, are hereby confirmed as members of the Kearney Volunteer Fire Department for the purposes of and in accordance with Neb. Rev. Stat. §48-115, and that said members are fully entitled to benefits under the Workers’ Compensation Act.

            BE IT FURTHER RESOLVED that all of said volunteer firefighters named on Exhibit “A” are hereby specifically authorized and directed to serve outside the corporate limits of the municipality under the direction, orders and authority of the Chief of the Kearney Volunteer Fire Department in accordance with §4-204 of the Kearney City Code.

            PASSED AND APPROVED THIS 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

9.         Approve the Application for a Special Designated License submitted by KABB LLC, dba “Tri City Arena” in connection with their Class IK49859 liquor license to dispense beer and distilled spirits on March 12, 13 and 14, 2004 from 12:00 a.m. until 9:00 p.m. in an enclosed fenced area in front of the arena for a beer garden.

 

V.    CONSENT  AGENDA  ORDINANCES

 

None.

 

VI.    REGULAR  AGENDA

 

FINAL PLAT – HAMMER-McCARTY ADDITION

 

Moved by Blankenship seconded by Kearney to remove from the table the application submitted by Mitch Humphrey (Applicant) for Larry Nansel, President of the Buffalo County Historical Society (Owner) for final plat approval of “HAMMER–McCARTY ADDITION” to the City of Kearney, Buffalo County, Nebraska (between 10th Street and 11th Street and west of 7th Avenue) and to consider Resolution No. 2004-26. Roll call resulted as follows:  Aye: Blankenship, Hadley, Clouse, Kearney, Buschkoetter.  Nay: None.  Motion carried.

 

Planning Commission recommended approval considering that an instrument (an agreement or easement) be prepared identifying a detention cell and a drainage way to the North Channel of the Platte River and presented to the City before the City Council meeting.

 

At the last City Council meeting, the applicant requested rezoning of an eight-lot subdivision located south of 11th Street and west of Trails and Rails Museum which is owned by the Buffalo County Historical Society. The land was rezoned from District RR-1 on the west half and District R-1 on the east half to District R-2 on the west half and District R-1 on the remaining easterly portion. Lot 1 of Maurer Addition and Lots 18 through 21 of Block 1, Centennial Subdivision were vacated so that the land could be replatted as Hammer-McCarty Addition.

 

Approval of the final plat for Hammer-McCarty Addition was tabled at the last City Council meeting as a stormwater easement was not yet in place. The Public Works Plan demonstrates the feasibility of sanitary sewer and management of stormwater, including detection. The stormwater facilities will be reserved under separate instrument and will be filed at the time that the final plat is filed.

 

Mitch Humphrey presented this matter to the Council. He stated due to some technicalities with the storm sewer easement, this was tabled from the last meeting.  He stated that his understanding is that everything is now in place. Requirements have been met for formal approval so that this project can move forward. 

 

Moved by Kearney seconded by Clouse to approve the application submitted by Mitch Humphrey (Applicant) for Larry Nansel, President of the Buffalo County Historical Society (Owner) for final plat approval of “HAMMER–McCARTY ADDITION” to the City of Kearney, Buffalo County, Nebraska (between 10th Street and 11th Street and west of 7th Avenue) and approve Resolution No. 2004-26 subject to the Storm Sewer Easement being filed at the time the final plat is filed with the Register of Deeds.  Roll call resulted as follows:  Aye: Blankenship, Clouse, Kearney, Buschkoetter, Hadley.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2004-26

 

            BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of “HAMMER - McCARTY ADDITION”, an addition to the City of Kearney, Buffalo County, Nebraska, duly made out, acknowledged and certified, and the same hereby is approved and in accordance with the provisions and requirements of Section 19-916 of the Nebraska Revised Statutes, accepted and ordered filed and recorded in the Office of the Register of Deeds of Buffalo County, Nebraska; said addition is hereby included within the corporate limits of said City and shall be and become a part of said City for all purposes whatsoever, and the inhabits of such addition shall be entitled to all the rights and privileges and shall be subject to all laws, ordinances, rules and regulations of said City.

            BE IT FURTHER RESOLVED that the Storm Sewer Easement, a copy marked as Exhibit “A” is attached hereto and made a part hereof by reference, be filed at the same time the final plat is filed and recorded in the Office of the Register of Deeds of Buffalo County, Nebraska.

            BE IT FURTHER RESOLVED that the President of the Council be and is hereby authorized and directed to execute the final plat on behalf of the City of Kearney, Nebraska.

            PASSED AND APPROVED THIS 24TH DAY OF february, 2004.

 

ATTEST:                                                           PRESIDENT OF THE COUNCIL

                                                                        AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID FOR AERIAL LADDER FIRE APPARATUS

 

Mayor Blankenship opened for discussion the bids received for the purchase of a used Aerial Ladder Fire Apparatus and approve Administration’s recommendation on awarding the bid to Brindlee Mountain Fire Apparatus in the amount of $138,400.00.

 

It is the desire of the Kearney Volunteer Fire Department to lower the ISO (Insurance Services Office) rating in Kearney from a Class 5 rating.  In a recent study of our fire apparatus, equipment, and records one of the recommendations was to purchase an additional aerial apparatus as a backup ladder truck.  The Fire Department desires to purchase one used aerial ladder fire apparatus and chassis to be used for fire protection in the City of Kearney.  This additional aerial apparatus will enhance our fire protection capabilities and will be housed at Station 2 located at 3820 30th Avenue.

 

Notice of Bidding was let on January 16, 2004 and opened on February 2, 2004.  One bid was received from Brindlee Mountain Fire Apparatus in the amount of $138,400.  The purchase of this apparatus will bring the City of Kearney Volunteer Fire Department to ISO standards, along with additional equipment and large diameter hose added to current City of Kearney fire apparatus.

 

Funding for the aerial ladder truck or the equipment to equip the truck was not included in the 2003-2004 budget.  Therefore, the Fire Department is requesting that Public Safety Tax Anticipation Bonds be issued to finance the truck and the necessary equipment for the truck.

 

Fire Chief Mike Martinosky stated that the Insurance Services Offices out of Chicago, is a third party company that grades fire departments. ISO comes into a community every 10-15 years and grades the fire department.  The system is 1-10, 10 being the worst.  At present, the City of Kearney is a class 5.  They are proud of the class 5 that they have considering they are a volunteer fire department.

 

Some of the factors score as follows: 10 points for communications, 50 points on the fire department, and 40 points on water availability, fire hydrants, etc.  He has been on the Kearney fire department for 15 years and wanted to understand the ISO better.  He received permission from the City Manager and the Suburban Board to bring in a consultant.  This consultant has consulted with fire departments in New York, Buffalo, and numerous volunteer fire departments and has brought some from class 9 and 10 down to a Class 1. 

 

Since 1991, Kearney has had some substantial growth, made some great water improvements, and the communication system has been greatly advanced.  The consultant made a recommendation that the fire department change some record keeping, the way some of the training is performed, change the listing in the phone book, and getting a reserve ladder truck.  We have reserve pieces for the fire truck, but are missing reserve pieces for the ladder truck. He did state that they were aware that they needed a ladder truck when they purchased the new one but there was no place to store the old one.  When Station 2 was built, it was in the plan for a longer bay for that ladder truck, but due to the cost it was cut back.  Chief Martinosky and staff searched and found a used 1987 ladder truck in Arkansas, which was owned by Brindlee Mountain Fire Apparatus. He and Kearney’s two chief officers drove to Arkansas and checked it out. At that time a bid was advertised and Brindlee was the one that won the bid for $138,400.  Based on the consultant’s recommendation, the indication is that by doing the water improvements that they want to do, Kearney could move to a class 3 or possibly a 2.  Grand Island, Hastings, Lincoln, and Omaha are presently a class 3 and North Platte is a class 4. 

 

City Manager Allen Johnson stated that there are no guarantees of a better classification because it is a process.  He stated that Chief Martinosky is a volunteer and is not a paid full time City employee. The Chief with help from the men and women in his department have given of their own time and done an incredible job of looking at the assessment on this thing.  He believed that the consultant was a stroke of genius because he looked at everything from no cost items to significant cost items such as the ladder truck.  Since the old ladder truck would not fit in any of the bays, an incredible amount of research had to be done to find this used truck that fit the space.  Mike and the two assistant chiefs drove to Arkansas and spent the day checking it out. The only comment he made after that was to apologize because they spent the night there rather than drive back the same day. 

 

City Manager stated an email was received from a citizen questioning the impact of this purchase on property taxes.  Chief Martinsoky and Director of Finance Wendell Wessels would work on what the payback period will be on this.  Assuming that the KVFD obtains a class 3 rating, it would be a valid economic impact from that new classification. The City has done everything within their control to keep from increasing taxes.  The fact is that, as the writer acknowledges, the largest impact will be in the suburban district. 

 

Chief Martinosky commented that in the suburban area there are a lot of communities that are a class 9 and 10. They are addressing that subject with the Suburban Fire District.  There are some people that will benefit who are within a 5-mile radius of the Kearney fire stations.  He was referring to the two city stations and the one in Riverdale.  The people between Riverdale and Kearney are going to get the benefit.  It will be a minimal expense for residences, but commercial properties will probably see the impact of the savings.

 

Fire Chief stated the grading will be on three different levels.  There will be one for Kearney, one for Riverdale, and one for the fire district that serves the 272 square miles of the district.  This is not going to be an overnight fix, the equipment must be put in place, get it loaded, and then wait for a few things on the suburban side.  If the ISO does not notify us they are coming, then a letter from the Mayor will be sent letting them know that we are ready.  When the ISO does come they will evaluate the dispatch center, the fire department, and the water department.  They have a book compiled with all their procedures, pictures of all the trucks, and all applicable information ready for this inspection.

 

Council Member Kearney stated that the Volunteer Fire Department saves taxpayers in Kearney $2,000,000 a year.  He stated that the economy in the insurance by having a class 3 rating (although there is no guarantee) and being comparable with other cities, he believed that this is very small in comparison to the economy the Volunteer Fire Department provides the community and district.

 

Council Member Buschkoetter asked if this truck could be used for a catastrophic fire.  Chief Martinosky responded that this truck is going to get more use than the new one because most of the calls come out of the Station 1 area.  Another suggestion from the ISO consultant is that we respond with two engines and a ladder truck.  The result is that they have both stations responding to one structure.  This will provide a ladder truck at both ends of the City.  Regardless of the district it is in, that engine’s pumper will leave and that ladder truck will also go.  He does not see any down side to this because it saves money and is making things safer.

 

Council Member Hadley asked what a new truck would cost.  Chief Martinosky responded the cost of a new truck is $438,000.  The ladder truck that was previously purchased two years ago was between $600,000 and $700,000.  He also stated that the 1987 truck that was purchased meets the standard a little better than the older apparatus did. The equipment that is currently needed must have enclosed cabs for safety of firefighters.  They do have four pumper engines that are open cab but they do have crash bars and seatbelts.

 

Mayor Blankenship stated that he recognizes the concern of the person that sent the email regarding this purchase.  He stated that when we get the ISO rating back there will be people willing to take the difference from their insurance bill for one year and apply it to this purchase.  He understands that the grade is not guaranteed; he is confident after reading the ISO consultant’s report these changes are going to be made.  He expressed his appreciation to Chief Martinosky and his staff for the job they have done on a volunteer basis being comparable to a paid staff. 

 

Moved by Clouse seconded by Hadley to approve the bids received for the purchase of a used Aerial Ladder Fire Apparatus and approve Administration’s recommendation on awarding the bid to Brindlee Mountain Fire Apparatus in the amount of $138,400.00.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Buschkoetter, Hadley, Clouse.  Nay: None.  Motion carried.

 

ORDINANCE NO. 7031 – ISSUE PUBLIC SAFETY EQUIPMENT TAX ANTICIPATION BONDS

 

On February 24, 2004 the City Council awarded a bid to purchase a used an aerial ladder truck at a cost of $138,400.00.  Additionally, the Fire Department has requested $62,334.00 to purchase equipment to equip the aerial ladder truck and $28,145.00 to purchase equipment to better equip other trucks in order to maintain or improve the City’s ISO rating.

 

The City is permitted to issue Public Safety Tax Anticipation Bonds to pay the costs of purchasing the equipment as outlined above for the Fire Department.  Sections 18-1201 and 18-1202 of the Nebraska State Statutes allows any city to issue Tax Anticipation Bonds without an election for the purpose of “purchasing and maintaining public safety equipment, including, but not limited to, vehicles or rescue or emergency first-aid equipment for a fire or police department of such city or village, for purchasing real estate for fire or police quarters or facilities, for erecting, building, altering, or repairing fire or police quarters or facilities, for purchasing, installing, and equipping an emergency alarm or communication system, or for paying off bonds authorized by section 18-1202”.  These same statutes allow cities to levy a special tax each year of not more than five cents on each one hundred dollars upon the taxable value of all the taxable property in such city for the purposes set forth in the statutes.

 

The principal amount of the bonds is $235,000.00 and the use of the bond proceeds will be as follows:

 

            Aerial ladder truck                                 $138,400.00

            Equipment for ladder truck                       $62,334.00

            Equipment for other trucks                      $28,145.00

 

The bonds will have an eight-year maturity schedule with an estimated interest rate of 1.35% on the one-year bonds to 3.35% on the eight-year bonds.  The actual interest rate will be determined on February 24, 2004 and presented to the council by Jim Fox.  The estimated annual payment on the bonds will be approximately $33,000.00 each year for the eight years the bonds are outstanding.  Therefore, the property tax levy will be approximately .303 cents per one hundred dollars of valuation or $3.03 per year on a home valued at $100,000.00.

Richard Pedersen, an attorney with the Baird Holm Law Firm located in Omaha, has drafted the ordinance in accordance with state and federal laws governing such bonding arrangements. The City will be required to budget approximately $33,000.00 annually over the next eight years in order to make the annual principal and interest payments on the Series 2004 Public Safety Tax Anticipation Bonds.

 

Bruce Lefler from Ameritas presented this matter to the Council. He stated that this ordinance is for the issuance of $235,000 of Public Safety Equipment bonds to provide $230,000 of proceeds for the purchase of the truck and other equipment for the Fire Department.  Those bonds, as they are issued, will be repaid basically through eight years (on this particular project) through 2012.  The interest rates on this financing are 1.35 running through 3.35 percent.  This provides an average borrowing cost of 2.72 percent, which is an attractive interest rate from the borrowing standpoint. 

 

Council Member Hadley introduced Ordinance No. 7031, being Subsection 3 of Agenda Item VI an ordinance authorizing the issuance of Public Safety Equipment Tax Anticipation Bonds of the City of Kearney, Nebraska in the principal amount of $235,000 for the purpose of providing funds for purchasing and maintaining a public safety vehicle and equipment and miscellaneous costs associated therewith; 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; authorizing the delivery of the bonds to the purchaser; and ordering the ordinance published in pamphlet form, 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 Buschkoetter 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, Buschkoetter, Hadley, Clouse, Kearney.  Nay: None.  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. 7031 by number.  Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows:  Aye: Blankenship, Buschkoetter, Hadley, Clouse, Kearney.  Nay: None.  Motion carried.  Ordinance was read by number.

 

Moved by Buschkoetter seconded by Blankenship that Ordinance No. 7031 be passed, approved and published as required by law.  Roll call resulted as follows:  Aye: Blankenship, Hadley, Clouse, Kearney, Buschkoetter.  Nay: None.  Motion carried.

 

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7031 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.

 

ORDINANCE NO. 7032 – ISSUE VARIOUS PURPOSE BONDS

 

The City has completed construction, made final payments on, and assessed the improvement costs according to benefits derived on the 2001 Part II Street Improvement Projects, the 2002 Part I Street Improvement Projects, the 2002 Part III Street Improvement Projects, and the 2003 Part I Street Improvement Projects.

 

Prior to the construction of the above Street Improvement Projects, Series 2002 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 2002 Bond Anticipation Notes, which are dated April 1, 2002, provided short term financing for the above Street Improvement Projects and mature on April 1, 2004.  Therefore, it is necessary to approve the Series 2004 Various Purpose General Obligation Bonds to redeem the Bond Anticipation Notes dated April 1, 2002, and provide long-term financing for the above Street Improvement Projects.

 

The total amount of the outstanding Series 2002 Bond Anticipation Notes is $4,150,000.00.  The total amount of the Series 2004 Various Purpose General Obligation Bonds will be $3,500,000.00.  The difference between the Series 2004 Various Purpose General Obligation Bonds and the outstanding Series 2002 Bond Anticipation Notes will be funded with developer deposit collections, special assessment collections, and unspent proceeds of the Series 2002 Bond Anticipation Notes.  The term of the Series 2004 Various Purpose General Obligation Bonds will be twenty years with an interest rate of 1.10% on the one year bonds to 4.45% on the twenty year bonds.  The annual payments on the Series 2004 Various Purpose General Obligation Bonds will be approximately $253,000.00 each year for twenty years.

 

Richard Pedersen, an attorney with the Baird Holm Law Firm located in Omaha, has drafted the ordinance in accordance with state and federal laws governing such bonding arrangements. The City will be required to budget approximately $253,000.00 annually over the next twenty years in order to make the annual principal and interest payments on the Series 2004 Various Purpose General Obligation Bonds.

 

Bruce Lefler from Ameritas presented this matter to the Council. He stated for this issue they chose to have a bond insurance issued.  Ultimately what this means to investors is that this bond carries an AAA rating which is the highest rating categories.  The economics on these funds to the City is the gross bond insurance premium of about $16,675.  The economics to the City is the payment of that bond insurance premium to gather the AAA rating.   In turn, there is a related lower interest rate, which would reduce interest costs by approximately $80,000. The economic impact is paying $16,000 and getting $80,000 back on a lower borrowing cost over the term of the issue.   This particular issue amortized over a 20-year period with interest rates starting at 1.1 to 4.45 percent averages borrowing costs over that 20-year period of 3.86 percent.  This, in essence, pays off bond anticipation notes that were issued for these projects as listed in the ordinance and puts them into a permanent financing mode for the City. 

 

Council Member Blankenship introduced Ordinance No. 7032, being Subsection 4 of Agenda Item VI an ordinance authorizing the issuance of Various Purpose Bonds of the City of Kearney, Nebraska in the principal amount of $3,500,000 for the purpose of paying the costs of improving streets and intersections in Paving Improvement District Nos. 2000-835, 2001-861, 2001-862, 2001-863, 2001-865, 2001-866, and 2002-868 and Intersection Improvement District No. 2000-5; 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; authorizing the delivery of the bonds to the purchaser; and ordering the ordinance published in pamphlet form, 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 Kearney 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, Clouse, Kearney, Buschkoetter, Hadley.  Nay: None.  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. 7032 by number.  Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows:  Aye: Blankenship, Clouse, Kearney, Buschkoetter, Hadley.  Nay: None.  Motion carried.  Ordinance was read by number.

 

Moved by Kearney seconded by Clouse that Ordinance No. 7032 be passed, approved and published as required by law.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Buschkoetter, Hadley, Clouse.  Nay: None.  Motion carried.

 

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7032 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.

 

AWARD BID FOR 2004 PART II IMPROVEMENTS

 

Mayor Blankenship opened for discussion the bids received for the construction of the 2004 Part II Improvements consisting of Paving Improvement District No. 2003-871 for an alley between Central Avenue and 1st Avenue from 24th Street to 25th Street; Paving Improvement District No. 2003-877 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; Paving Improvement District No. 2003-878 for 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Paving Improvement District No. 2003-879 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Water District No. 2003-527 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place AND 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Water District No. 2003-528 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Sewer District No. 2003-469 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; and Sewer District No. 2003-470 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac and to consider Resolution No. 2004-31 awarding Bid A (Water and Sewer Districts) to Midlands Contracting in the amount of $80,397.00, and awarding Bid B (Paving Districts) to Blessing LLC in the amount of $239,603.00.

 

At the January 27, 2004, Council meeting, the City Council approved the plans and specifications for the 2004 Part II Improvements which included sewer, water and paving improvements in 17th Avenue, 14th Street and 15th Street Place.  The project also includes reconstruction of the alley between 24th Street and 25th Street from Central Avenue to 1st Avenue.

 

Sealed bids for the 2004 Part II Improvements were received on Tuesday, February 17, 2004 at 2:00 p.m. for Bid A (water and sewer) and for Bid B (paving). The following were the bids received:

 

Bidder

Bid A

Bid B

Midlands Contracting, Inc., Kearney, NE

$80,397.00

No Bid

General Excavating, Lincoln, NE

$125,467.50

No Bid

Blessing, LLC, Kearney, NE

No Bid

$239,603.00

Dan Roeder Construction, Kearney, NE

No Bid

$246,748.00

 

The Engineer’s Opinion of Probable Construction Cost was $395,859.50.  The low combined bids from Midlands Contracting for Bid A and Blessing, LLC for Bid B is 19% below the Engineer’s Opinion of Probable Construction Cost.  The contractor’s completion date for Bid A is April 15, 2004 and for Bid B is June 15, 2004.

 

Travis Mason from Miller & Associates was present to answer any questions.

 

Moved by Clouse seconded by Hadley to approve the bids received for the construction of the 2004 Part II Improvements consisting of Paving Improvement District No. 2003-871 for an alley between Central Avenue and 1st Avenue from 24th Street to 25th Street; Paving Improvement District No. 2003-877 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; Paving Improvement District No. 2003-878 for 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Paving Improvement District No. 2003-879 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Water District No. 2003-527 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place AND 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Water District No. 2003-528 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Sewer District No. 2003-469 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; and Sewer District No. 2003-470 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac and approve Resolution No. 2004-31 awarding Bid A (Water and Sewer Districts) to Midlands Contracting in the amount of $80,397.00, and awarding Bid B (Paving Districts) to Blessing LLC in the amount of $239,603.00.  Roll call resulted as follows:  Aye: Blankenship, Buschkoetter, Hadley, Clouse, Kearney.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2004-31

 

            WHEREAS, Miller & Associates of the City of Kearney have reviewed the sealed bids which were opened on February 17, 2004, at 2:00 p.m. for the 2004 Part II Improvements consisting of Paving Improvement District No. 2003-871 for an alley between Central Avenue and 1st Avenue from 24th Street to 25th Street; Paving Improvement District No. 2003-877 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; Paving Improvement District No. 2003-878 for 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Paving Improvement District No. 2003-879 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Water District No. 2003-527 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place AND 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Water District No. 2003-528 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Sewer District No. 2003-469 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; and Sewer District No. 2003-470 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $395,859.50; and

WHEREAS, the said engineers have recommended the bid offered by Midlands Contracting of Kearney, Nebraska in the sum of $80,397.00 for Bid A (Water and Sewer), and Blessing LLC of Kearney, Nebraska in the sum of $239,603.00 for Bid B (Paving) be accepted as the lowest responsible bids.  

            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 Midlands Contracting of Kearney, Nebraska be and is the lowest responsible bidder for the 2004 Part II Improvements – Bid A consisting of Water District No. 2003-527 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place AND 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Water District No. 2003-528 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac; Sewer District No. 2003-469 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; and Sewer District No. 2003-470 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Midlands Contracting of Kearney, Nebraska in the sum of $80,397.00 be and is hereby accepted for Bid A (Water and Sewer Districts).

            BE IT FURTHER RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Engineers recommendation is hereby accepted and approved, that Blessing LLC of Kearney, Nebraska be and is the lowest responsible bidder for the 2004 Part II Improvements – Bid B consisting of Paving Improvement District No. 2003-871 for an alley between Central Avenue and 1st Avenue from 24th Street to 25th Street; Paving Improvement District No. 2003-877 for 17th Avenue from 14th Street, north a distance of 137± feet north of 15th Street Place; Paving Improvement District No. 2003-878 for 14th Street from 17th Avenue, east a distance of 115± feet east of 17th Avenue; Paving Improvement District No. 2003-879 for 15th Street Place from 17th Avenue, west to its terminus in a cul-de-sac, to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Blessing LLC of Kearney, Nebraska in the sum of $239,603.00 be and is hereby accepted for Bid B (Paving Districts).

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for 2004 Part II Improvements in the amount of $395,859.50 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 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

AWARD BID – 30TH AVENUE BOX CULVERT

 

Mayor Blankenship opened for discussion the bids received for the 2004 Part I Improvements – Phase 1 (30th Avenue Box Culvert) and to consider Resolution No. 2004-32 awarding the bid to Strobel Construction in the amount of $105,837.06.

 

At the January 27, 2004, Council meeting, the City Council approved the plans and specifications for the 2004 Part I Improvements which included the reconstruction of the drainage structure which carries the 30th Avenue roadway over the Kearney Canal.  The proposed structure is a box culvert.

 

Sealed bids for the 2004 Part I Improvements were received on Tuesday, February 17, 2004 at 2:00 p.m.  The following were the bids received:

 

Bidder

Bid

Strobel Construction Unlimited, Inc., Clarks, NE

$105,837.06

Wilke Construction Corp., Kearney, NE

$124,141.20

Midlands Contracting, Inc., Kearney, NE

$126,899.75

Cement Products Inc., North Platte, NE

$131,843.80

Simon Contractors, North Platte, NE

$165,363.16

 

The Engineer’s Opinion of Probable Construction Cost was $155,446.10.  The low bid from Strobel Construction Unlimited, Inc. is 32% below the Engineer’s Opinion of Probable Construction Cost.  The contractor’s completion date for this contract is April 30, 2004.

 

Kent Cordes from Miller & Associates was present to answer any questions.

 

Moved by Hadley seconded by Buschkoetter to approve the bids received for the 2004 Part I Improvements – Phase 1 (30th Avenue Box Culvert) and approve Resolution No. 2004-32 awarding the bid to Strobel Construction in the amount of $105,837.06.  Roll call resulted as follows:  Aye: Blankenship, Hadley, Clouse, Kearney, Buschkoetter.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2004-32

 

            WHEREAS, Miller & Associates Consulting Engineers have reviewed the sealed bids which were opened on February 17, 2004, at 2:00 p.m. for the 30th Avenue Box Culvert; and

            WHEREAS, the Engineer’s Opinion of Probable Construction Cost for the project was $155,446.10; and

WHEREAS, the said engineers have recommended the bid offered by Strobel Construction Unlimited, Inc. of Clarks, Nebraska in the sum of $105,837.06 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 Strobel Construction Unlimited, Inc. of Clarks, Nebraska be and is the lowest responsible bidder for the 30th Avenue Box Culvert to be constructed in accordance with the plans and specifications on file with the City Clerk and that the bid of Strobel Construction Unlimited, Inc. in the sum of $105,837.06 be and is hereby accepted.

            BE IT FURTHER RESOLVED the Engineer’s Opinion of Probable Construction Cost for the construction of the 30th Avenue Box Culvert in the amount of $155,446.10 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 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

NPPD TO SERVE BEL-AIR FIRST ADDITION

 

Mayor Blankenship opened for discussion authorizing the City of Kearney to join with NPPD as a co-applicant to the Nebraska Power Review Board for an amendment to NPPD’s retail service area which includes the City to include the newly annexed land of Bel-Air First Addition to the City of Kearney, Buffalo County, Nebraska (north of 60th Street adjacent to 2nd Avenue to the east) and to consider Resolution No. 2004-33.

 

Council member Clouse vacated his chair and abstained from voting on this matter for the reason he is general manager of NPPD.

 

Director of Public Works Rod Wiederspan presented this matter to the Council. On July 11, 1989, the City Council passed Resolution No. 89-55 approving the Professional Retail Operations Agreement between NPPD and the City of Kearney. The City of Kearney owns an electric distribution system and NPPD leases and operates the City’s system. NPPD maintains the system and constructs any additions necessary for service to the extent such additions are within the established extension area.

 

At a previous Council meeting (January 13th) the Council included Bel-Air First Addition within the corporate boundaries of the City. In order for electrical service to be provided to the area, NPPD will need to apply to the Nebraska Power Review Board for an order amending its existing retail service area to include Bel-Air First Addition into the corporate boundaries. The City of Kearney has an interest in the outcome of such application by reason of its rights under the Professional Retail Operations Agreement and will be a co-applicant with NPPD to the Nebraska Power Review Board.

 

The City currently receives 12% electrical lease payment from NPPD pursuant to the Professional Retail Operations Agreement. Electrical services provided within the newly annexed land will be subject to the 12% electrical lease payments.

 

Moved by Buschkoetter seconded by Blankenship to authorize the City of Kearney to join with NPPD as a co-applicant to the Nebraska Power Review Board for an amendment to NPPD’s retail service area which includes the City to include the newly annexed land of Bel-Air First Addition to the City of Kearney, Buffalo County, Nebraska (north of 60th Street adjacent to 2nd Avenue to the east) and Resolution No. 2004-33.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Buschkoetter, Hadley.  Nay: None.  Clouse abstaining. Motion carried.

 

RESOLUTION NO. 2004-33

 

            WHEREAS, on January 13, 2004, the Kearney City Council passed and approved Resolution No. 2004-5 including “BEL-AIR FIRST ADDITION” within the corporate boundaries of the City of Kearney said property described as tract of land being of the Southeast Quarter of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska, more particularly described as follows.  Beginning at the southeast corner of the Northeast Quarter of said Section 24 and assuming the east line of said Northeast Quarter as bearing N00º08’04”E and all bearings contained herein are relative thereto: thence N00º08’04”E on said east line a distance of 210.0 feet; thence S89º52’46”W a distance of 200.0 feet; thence N00º08’04”E a distance of 150.0 feet; thence S89º52’46”W a distance of 881.0 feet; thence S00º09’12”W a distance of 360.0 feet to the south line of said Northeast Quarter; thence S89º52’46”E on said south line a distance of 1081.12 feet to the place of beginning, containing 8.24 acres, more or less, Buffalo County, Nebraska AND a tract of land being part of the Southeast Quarter of the Northeast Quarter of Section 24, Township 9 North Range 16 West of the 6th P.M., Buffalo County, Nebraska more particularly described as follows:  Referring to the southeast corner of the Northeast Quarter of said Section 24 and assuming the east line of said Northeast Quarter as bearing N00º08’04”E and all bearings contained herein are relative there to; thence N00º08’04”E on said east line a distance of 210.0 feet to the ACTUAL PLACE OF BEGINNING; thence continuing N00º08’04”E on the aforedescribed course a distance of 559.87 feet;  thence  N89º54’14” a distance of 350.01 feet; thence S00º08’50” a distance  of 240 feet; thence N89º54’38”W a distance of 731.1 feet; thence S00º91’12”W a distance of 170.0 feet; thence N89º52’46”E a distance of 881.0 feet; thence S00º08’04”W a distance of 150.0 feet; thence N89º52’46”E a distance of 200.0 feet to the place of beginning, containing 6.84 acres, more or less, Buffalo County, Nebraska (north of 63rd Street between Avenue K and Avenue N); and

            WHEREAS, the Nebraska Public Power District (NPPD) will apply to the Nebraska Power Review Board for an order amending its existing retail service area, which includes the City of Kearney, to include the above described property into the corporate boundaries of the City of Kearney, Nebraska; and

            WHEREAS, the City of Kearney has an interest in the outcome of such application by reason of its rights under the Professional Retail Operations Agreement with NPPD approved on July 11, 1989, pursuant to which NPPD operates and maintains the electric distribution system owned by the City of Kearney; and

            WHEREAS, it is determined by the City Council that it would be desirable and in the best interests of the City of Kearney to join with NPPD as a co-applicant to the Nebraska Power Review Board.

            NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the City of Kearney, Nebraska, be authorized to join with NPPD as a co-applicant to the Nebraska Power Review Board for an amendment to NPPD’s retail service area which includes the City to include the above described property into the corporate boundaries of the City of Kearney, Nebraska in said retail service area.

            BE IT FURTHER RESOLVED that the Mayor be and is hereby authorized to execute on behalf of the City of Kearney a joint application with NPPD to the Nebraska Power Review Board and to cooperate with NPPD in the prosecution of its application.

            BE IT FURTHER RESOLVED that such joint application shall be prosecuted at the sole cost and expense of NPPD.

            PASSED AND APPROVED THIS 24TH DAY OF FEBRUARY, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

REVISED FINAL PLAT FOR 3B DEVELOPMENT ADDITION

 

Mayor Blankenship opened for discussion repealing Resolution No. 2004-24 and approve the revised final plat of “3B DEVELOPMENT ADDITION” to the City of Kearney, Buffalo County, Nebraska (south of 1st Inn Gold Motel and west of Nebraska State Highway No. 44) and to consider Resolution No. 2004-34.

 

At the February 10, 2004 City Council meeting the applicant presented and received approvals for a three-lot subdivision to correspond with the preliminary plat.  Since that council meeting the applicant has been unsuccessful in receiving all the necessary signatures to file the final plat due to ownership conflicts on lot one as shown on the preliminary plat. The applicant is now requesting approval of a revised two-lot commercial subdivision located south of 1st Inn Gold Motel and west of Nebraska State Highway 44 along Platte Road, one of the roads leading to the Tri-City Arena.  This land is currently zoned C-3.

 

Planning Commission approved the Preliminary Plat consists of a three-lot subdivision on January 16, 2004.  The Revised Final Plat, a two-lot subdivision consists of the south two lots approved by the Planning Commission.  The frontage road that runs parallel to Highway 44 is a permanent roadway easement and not a City-owned street.  The City will not move snow or perform repairs on the frontage road.  If the City were ever offered the street it would need to be reconstructed to City standards.  The property can be served with municipal water and sanitary sewer.  City staff has received a stormwater management plan since the old Walker drainage channel traverses this site and during periods of heavy rain, can carry significant runoff.

 

Mitch Humphrey presented this matter to the Council. He stated that they want to repeal the resolution that was passed two weeks ago and amend it with a new resolution.  This would allow the project to go forward.  

 

Moved by Blankenship seconded by Kearney to approve repealing Resolution No. 2004-24 and approve the revised final plat of “3B DEVELOPMENT ADDITION” to the City of Kearney, Buffalo County, Nebraska (south of 1st Inn Gold Motel and west of Nebraska State Highway No. 44) and approve Resolution No. 2004-34.  Roll call resulted as follows:  Aye: Blankenship, Kearney, Buschkoetter, Hadley, Clouse.  Nay: None.  Motion carried.

 

RESOLUTION NO. 2004-34

 

            BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the revised plat of “3B DEVELOPMENT ADDITION”, an addition to the City of Kearney, Buffalo County, Nebraska, duly made out, acknowledged and certified, and the same hereby is approved and in accordance with the provisions and requirements of Section 19-916 of the Nebraska Revised Statutes, accepted and ordered filed and recorded in the Office of the Register of Deeds of Buffalo County, Nebraska; said addition is hereby included within the corporate limits of said City and shall be and become a part of said City for all purposes whatsoever, and the inhabits of such addition shall be entitled to all the rights and privileges and shall be subject to all laws, ordinances, rules and regulations of said City.

            BE IT FURTHER RESOLVED that the original plat for 3B Development Addition approved by Resolution No. 2004-24 passed on the 10th day of February, 2004 be and is hereby repealed in its entirety.

            BE IT FURTHER RESOLVED that the President of the Council be and is hereby authorized and directed to execute the revised final plat on behalf of the City of Kearney, Nebraska.

            PASSED AND APPROVED THIS 24TH DAY OF february, 2004.

 

ATTEST:                                                                       PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

CITY CLERK

 

2002-2003 AUDIT REPORT

 

Mayor Blankenship opened for discussion the 2002-2003 Fiscal Year City Audit Report prepared by the accounting firm of McDermott & Miller.

 

The Annual Financial Report has been prepared within the framework established for local government financial reporting by the Governmental Accounting Standards Board (GASB). The Council was previously given a copy of a publication entitled “An Elected Officials Guide to the New Governmental Financial Reporting Model”.

 

Mary Kalb from McDermott and Miller presented this matter to the Council. She stated before GASB 34 the general funds were reported on a cash basis at the City.  Finance Director Wendell Wessels had to reconstruct the budget for fiscal year ending September 30, 2002 for those funds and put them on the accrual basis and do the same for the fiscal year ending September 30, 2003.

 

Ms Kalb reported on the financial highlights of the Management’s Discussion and Analysis. (1) Assets exceeded liabilities at the close of 2003 by $100,493.971.   Unrestricted net assets amounted to $19,555,251.  (2) Total net assets increased by $6,382,300 in comparison with 2002. The statement of governmental activities and business activities shows a summarized report of Kearney’s net assets. These two categories are listed separately and then combined because all the City of Kearney is now on an accrual basis.  She noted that the component unit of the Community Redevelopment is listed on the Statement of Net Assets because even though that are their own entity, the City Council does assign their board so in essence they have some control.

 

On the report of Changes in Net Assets, there is no information for 2002 because the prior year would not have the accrual basis information that would need to go back two years to get that information.  Next year in the MDNA there will be comparative information for this report.  The increase of net assets was $6,300,000 of which 68% increase was in the governmental activities and 32 percent was in the business type activities.  The governmental activities are comprised of general government, public safety (police and fire), public works (streets), public health and social services, culture and recreation, and community development. In the governmental fund, the expenses normally exceed the revenue.  The streets are somewhat of an exception because they get the highway allocation, which is a large amount of funds.  Sources of governmental activities are as follows:  6% property tax, 25% sales tax, 21% operating grants and contributions (includes highway allocation).  In governmental activity, charges for services are 10% of the 100% and that is rather insignificant.

 

The business activity includes the proprietary funds, which should always have revenue in excess of expenses.  This was true for 2003 except for the airport, which generally does not have excess revenue and the sanitation fund.  In the business fund, charges for services are 88%.  Council Member Clouse asked if there is a concern about sanitation’s expenses for 2003.  Finance Director stated that there has been a lot of money spent in the last couple of years for the new recycling center so there will be some new depreciation with some of those kinds of things. He did not believe that this was a “red flag” for sanitation.

 

Ms. Kalb also reported on the major capital assets during the fiscal year as follows: building addition to the Law Enforcement Center, Centennial Pool Renovation Project, Cottonmill Trail Phase III Project, completion of the Avenue M/N Overpass, and many other ongoing projects throughout the City.  

 

Council Member Kearney pointed out that Kearney’s debt decreased by $4,183,296 or 9.3 percent from September 30, 2002 through September 30, 2003.  He also noted that there were no new bonds issued but only reissued bonds at a lower interest rate.  Ms. Kalb commented that this is stated in the MDNA that no new bonds were issued.  She believed that this was very remarkable. There were three refinancing of bonds during the year; the total savings over the refunding is in excess of $130,000 on two of them.

 

Ms. Kalb reported on the Statement of Activities.  This report includes expenses broken down by governmental and business type activities.  On the governmental, the charges for services are not significant in comparison to the expenses.  The charges for services for the business type activities are greater than the expenses, which is the way it should be.  Operating grants and expense amounts were large due mostly to the highway allocation funds for streets that flow into those accounts.  There is some governmental money that flows through there also (for example; federal money received by the airport through grants for improvement).  The net expense revenue and change in net assets shows the deficit for governmental activities. Expenses minus this revenue show a profit at this point in the business type activities.  This report shows property, sales, and occupation taxes and other types of revenue.  Ms. Kalb pointed out the large transfer amount of $2,864,358 was from Nebraska Public Power and is a significant number although the City receives funds from them each year.  The prior year’s sales tax was $5,288,000. This year it is showing a smaller amount of sales tax than last year; however, last year’s figure was based on cash we actually deposited.  By changing it to an accrual this year, it could have affected the amount to some degree.  She stated that the Finance Director went back to 2002 and constructed the accrual to come up with the number on the report and calculated the ending accrual for 2003.

 

The balance sheet for the governmental funds has footnotes that explain how the numbers were determined for this report.  She pointed out that pages 21-26 of the MDNA shows some of the funds compared to budget.  The Finance Director has several comments throughout the report explaining how the budget was not amended this year.  He also provided information in the report about different funds that might have spent more then budgeted, but also had more revenue than was budgeted.  Ms. Kalb stated there are no significant issues about this budget. 

 

Ms. Kalb reported on the Statement of New Assets Proprietary Funds.  The proprietary funds are golf, sanitation, solid waste, sanitary sewer, and airport.  This report is more like we have had in the past except for some different terminology.  This report flows to the Liability Report, which does balance.

 

The next report was on the Statement of Revenue, Expenses, and Changes in Fund Net Assets for the Proprietary Fund.  This report shows sales per fund, miscellaneous income, and operating expenses. Ms. Kalb commented that sanitation and airport were discussed earlier and the Finance Director expressed that he did not think Sanitation was an issue at this time.  The reports on the Proprietary Funds were prepared on the direct method, which are receipts from customers and users, payments to suppliers and employees, other cash flow financing and capital/investing to cash and cash equivalents.

 

Ms. Kalb provided an explanation of the Reconciliation of Government-Wide and Fund Finance Statements.  The breakdown on those bonds is as follows: bonds payable $19,005,000 (less deferred charge on refunding $160,808 and deferred charge for issuance costs $112,001), accrued interest payable $176,856, capital leases payable $64,449 and compensated balance $419,069 which net change to reduce fund balance on total governmental funds to arrive at net assets- governmental activities of $19,392,565.

 

Last year the Federal Financial Awards for the City were $7,300,000. This year the City received $2,799,246, which was significantly less.  $1,600,000 of that was received this year for the finishing of the Avenue M/N Overpass.  There was $3,700,000 less in loans for the water upgrade. These two things were the bulk of the differences that the City had this year. There were still some water loans this year, but the bulk occurred in the year before this.

 

City Manager Allen Johnson asked for a comparison of where other cities in the state are at this point on the transition to the GASB 34 because this is a very significant change in reporting. 

 

Ms. Kalb stated that GASB 34 would have applied to Lincoln and Omaha last year. This was the first year for the first class cities to comply.  She stated that this is a very new and complicated process.  GASB 34 will apply to the smaller communities next year.  Kearney is one of the forerunners of this format.  There are not many others out there. She believed that because this is a new report, it would need to be changed as it evolves.  The intent is to simplify it enough so that most people can be comfortable with what it says. She believed that Kearney ended up with a wonderful report.

 

Finance Director Wendell Wessels stated that this report is available on the City’s website. 

 

Moved by Kearney seconded by Clouse to approve the 2002-2003 Fiscal Year City Audit Report prepared by the accounting firm of McDermott & Miller.  Roll call resulted as follows:  Aye: Blankenship, Buschkoetter, Hadley, Clouse, Kearney.  Nay: None.  Motion carried.

 

OPEN ACCOUNT CLAIMS --      NPPD -- $52,347.02

 

Moved by Hadley seconded by Buschkoetter that Open Account Claims in the amount of $52,347.02 payable to NPPD be allowed.  Roll call resulted as follows:  Aye: Blankenship, Hadley, Kearney, Buschkoetter.  Nay: None.  Clouse abstained.  Motion carried.

 

VII.    REPORTS

 

None.

 

VIII.    ADJOURN

 

Moved by Buschkoetter seconded by Blankenship that Council adjourn at 9:10 p.m.  Roll call resulted as follows:  Aye: Blankenship, Clouse, Kearney, Buschkoetter, Hadley.  Nay: None.  Motion carried.

 

 

                                                                                    BRUCE L. BLANKENSHIP

                                                                                    PRESIDENT OF THE COUNCIL

                                                                                    AND EX-OFFICIO MAYOR

ATTEST:

 

MICHAELLE E. TREMBLY

CITY CLERK