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Kearney, Nebraska

June 13, 2006

7:00 p.m.

A meeting of the City Council of Kearney, Nebraska, was convened in open and public session at 7:00 p.m. on June 13, 2006, in the Council Chambers at City Hall. Present were: Galen D. Hadley, President of the Council; Michaelle Trembly, City Clerk; Council Members Randy Buschkoetter, Don Kearney, Stan Clouse, and Bruce Lear. Absent: None. Michael W. Morgan, City Manager; Michael Tye, City Attorney; Amber Brown, Assistant to 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: Bruce Lefler, Dan Lindstrom, Barry Sherman, Matt Williams, Marvion Reichert, Craig Bennett, Reed Miller, Mitch Humphrey, Gerry O’Rourke, Todd Herges, Ron Tillery, Paul Eurek, Donna Lux, Sheila Hollister, Betty Warren, Dan Bahensky, Kent Cordes, Jeff Sikes, Paul Brungardt, M.J. Schultz, Janis Schultz, Mike Konz from Kearney Hub, and Paul Wice from 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 Rick Tomlison from First Church of the Nazarene Church provided the Invocation.

PLEDGE OF ALLEGIANCE

The Council members led the audience in the Pledge of Allegiance.

ORAL COMMUNICATIONS

There was no Oral Communications.

II. UNFINISHED BUSINESS

There was no Unfinished Business.

III. PUBLIC HEARINGS

LAND USE MAP AMENDMENT – 570 FEET WEST OF THE INTERSECTION OF SWEETWATER AVENUE AND COAL CHUTE ROAD

The public hearing on the proposed amendment to the Land Use Map of the City of Kearney Comprehensive Development Plan from “Agricultural Preserve” to “Rural Estates” property described as a tract of land being part of Government Lot 4 located in Section 33, Township 9 North, Range 15 West of the 6th P.M., containing 3.099 acres, more or less, of which 0.227 acres, more or less, are presently being used for road purposes on the south side, all in Buffalo County, Nebraska (570 feet west of the intersection of Sweetwater Avenue and Coal Chute Road) will remain on the table until June 27, 2006. Therefore, no action was taken.

REZONING – 570 FEET WEST OF THE INTERSECTION OF SWEETWATER AVENUE AND COAL CHUTE ROAD

The public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Bobbie G. Vogt for Vogt Family Trust (Owner) to rezone from “District AG, Agricultural District” to “District RR-1, Rural Residential District (Rural Standards)” property described as a tract of land being part of Government Lot 4 located in Section 33, Township 9 North, Range 15 West of the 6th P.M., containing 3.099 acres, more or less, of which 0.227 acres, more or less, are presently being used for road purposes on the south side, all in Buffalo County, Nebraska (570 feet west of the intersection of Sweetwater Avenue and Coal Chute Road) will remain on the table until June 27, 2006. Therefore, no action was taken.

FINAL PLAT – VOGT SUBDIVISION

The public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Bobbie G. Vogt for Vogt Family Trust (Owner) for final plat approval and Subdivision Agreement for “VOGT SUBDIVISION” a subdivision being part of Government Lot 4 located in Section 33, Township 9 North, Range 15 West of the 6th P.M., containing 3.099 acres, more or less, of which 0.227 acres, more or less, are presently being used for road purposes on the south side, all in Buffalo County, Nebraska (570 feet west of the intersection of Sweetwater Avenue and Coal Chute Road) will remain on the table until June 27, 2006. Therefore, no action was taken.

CONDITIONAL USE PERMIT – 1308 WEST 24TH STREET

The Application submitted by Jeffrey Overturf for PABO, LLC (Applicant) and Bob Wilson (Owner) for a Conditional Use Permit to construct a building for a restaurant with a drive-thru on property zoned “District UC, Mixed Use Urban Corridor District” and described as Lots 1, 2, 3 and 4, of Block 3 and the vacated north half of 23rd Street lying adjacent to said Lots 2 and Lot 3 of Block 3; and the vacated south half of 23rd Street lying immediately north of and abutting on the north line of Lot 1 of Block 10, all in Kearney Land and Investment Company’s Second Addition to the City of Kearney, Buffalo County, Nebraska (1308 West 24th Street) was withdrawn by the applicant.

REZONING – 10.62 ACRES WEST OF THE INTERSECTIONS OF 67TH STREET AND AVENUE N AND 69TH STREET AND AVENUE N

Moved by Kearney seconded by Clouse to remove from the table the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 10.62 acres, more or less, of which 0.87 acres, more or less, are presently being used for road purposes on the east side, all in Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N). Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

Public Hearings 5, 6, 7, and 8 were discussed together but voted on separately.

Mayor Hadley opened for discussion the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 10.62 acres, more or less, of which 0.87 acres, more or less, are presently being used for road purposes on the east side, all in Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N).

This project was before the Planning Commission in April and was forwarded to City Council with a recommendation for approval of the rezoning and the subdivision platting. The annexation of this subdivision was not possible as it was not contiguous to the corporate limits of the city. Further discussions were held between the development team and staff regarding potential problems of not annexing the subdivision and a plan was formulated to pursue annexation. At the May 9, 2006 meeting of the City Council the rezoning request was tabled to the June 13 meeting and the Final Plat was withdrawn with the intent to send a new subdivision plat through Planning Commission with some additional land that would then make the subdivision contiguous and thus annexable.

So, now before the City Council is a revised submission that includes the original 10.62 acres of land area plus 6.68 acres of additional land that “bridges the gap” of non-annexable land and makes the subdivision annexable as an addition to the City of Kearney. The new application contains a tract of land that is approximately 17.3 acres in size for residential single-family development and duplexes. The land is part of the Bel Air property located west of the intersection of 67th Street and Avenue N and 69th Street and Avenue N.

The property is currently zoned Agricultural. The rezoning request for the 10.62 acre tract is for R-1 and the 6.68 acre tract is slated for R-2 zoning. The R-2 District allows duplexes and up to four-plex development if approved by Council. Single-family homes are also allowed in this district. In this manner, both the proposed R-1 and R-2 zonings (17.3 acres) are combined for the final subdivision. This rezoning request conforms to the Future Land Use Map of the City of Kearney Comprehensive Development Plan.

The Preliminary and Final Plat of Bel Air Third Addition consist of 37 lots on 17.3 acres. Twenty R-1 lots are arranged along both sides of Avenue M north of 67th Street culminating in a cul-de-sac north of 69th Street, and 17 R-2 lots wrapped around a cul-de-sac that angle southeast from 67th Street. The Preliminary Plat was approved by Planning Commission on May 19, 2006.

a) A Public Works Plan has been prepared for the overall Bel Air property, but staff has concerns about the storm drainage from these lots and requests a drainage plan. It appears that a drainage easement will be required and shall be shown on the plat. Coordinate drainage concerns with the City Engineer prior to the issuance of any building permits.

b) The Regional Master Plan for Hike/Bike Trails indicates that the developer is to provide connections from the subdivision to the hike/bike trail.

c) An Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

This property can be annexed into the city limits as it does abut the city limits and services are available.

Mitch Humphrey from Buffalo Surveying presented this matter to the Council. Initially, they started with a plan to develop the single family residential lots along the north/south streets to be known as Avenue M. It was discovered that it would be very difficult to annex this property. To make things easier the City worked together to enable a way to annex it in a much easier way. The plan follows the preliminary plat which was submitted and approved on a prior date by the Planning Commission. They are presenting to the Council that portion of the preliminary plat that was approved to rezone a portion of tract to R-1 and a portion of the tract to R-2. The portion being zoned R-2 is located just north of the NRD detention cell. They have completed a lot of the engineering on the project and the engineers work very well with the City. He believed they have complied with all of the requirements as far as storm water management, easements and other points that were in the proposed resolution.

There was no one present in opposition to this hearing.

Moved by Clouse seconded by Lear to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 10.62 acres, more or less, of which 0.87 acres, more or less, are presently being used for road purposes on the east side, all in Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N). Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

REZONING – 6.68 ACRES WEST OF THE INTERSECTIONS OF 67TH STREET AND AVENUE N AND 69TH STREET AND AVENUE N

Mayor Hadley opened the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) to rezone from “District AG, Agricultural District” to “District R-2, Urban Residential Mixed-Density District” property described as a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 6.68 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N).

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) to rezone from “District AG, Agricultural District” to “District R-2, Urban Residential Mixed-Density District” property described as a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 6.68 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N). Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

BEL AIR THIRD ADDITION FINAL PLAT

Mayor Hadley opened the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) for final plat and Subdivision Agreement approval for “BEL AIR THIRD ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 17.3 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N) and to consider approval of Resolution No. 2006-88.

Planning Commission and Staff recommend approval subject compliance with the following conditions: (1) the developer shall submit a drainage plan to the City and a drainage easement shall be required and shown on the plat; (2) the developer shall provide connections from the subdivision to the hike/bike trail; and (3) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Hadley to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) for final plat and Subdivision Agreement approval for “BEL AIR THIRD ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 17.3 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N) and approve Resolution No. 2006-88 subject to compliance with the following conditions: (1) the developer shall submit a drainage plan to the City and a drainage easement shall be required and shown on the plat; (2) the developer shall provide connections from the subdivision to the hike/bike trail; and (3) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

RESOLUTION NO. 2006-88

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of “BEL AIR THIRD ADDITION” a subdivision being a tract of land being part of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 17.3 acres, more or less, all in Buffalo County, Nebraska, 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 subject to compliance with the following conditions: (1) the developer shall submit a drainage plan to the City and a drainage easement shall be required and shown on the plat; (2) the developer shall provide connections from the subdivision to the hike/bike trail; and (3) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

BE IT FURTHER RESOLVED that the Subdivision Agreement, marked as Exhibit “A” attached hereto and made a part hereof by reference, be and is hereby approved and that the President of the Council be and is hereby authorized and directed to execute said agreement on behalf of the City of Kearney, Nebraska. Said Subdivision Agreement shall be filed with the final plat with the Buffalo County Register of Deeds.

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 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

BEL AIR THIRD ADDITION – INCLUDE TO CITY LIMITS

Mayor Hadley opened the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) for the inclusion into the City limits of “BEL AIR THIRD ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 17.3 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N) and to consider approval of Resolution No. 2006-89.

There was no one present in opposition to this hearing.

Moved by Hadley seconded by Kearney to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) for the inclusion into the City limits of “BEL AIR THIRD ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 17.3 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N) and approve Resolution No. 2006-89. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

RESOLUTION NO. 2006-89

WHEREAS, an Application has been submitted by Mitch Humphrey from Buffalo Surveying (Applicant) and Jeffrey Sikes for TWL, LLC (Owner) for the inclusion of “BEL AIR THIRD ADDITION” an addition within the corporate boundaries of the City of Kearney said property described as a tract of land being part of the Northeast 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 northeast corner of Section 24 and assuming the east line of the Northeast Quarter of Section 24 as bearing south and all bearings contained herein are relative thereto; thence south on the east line of the Northeast Quarter of Section 24 a distance of 1143.0 feet; thence leaving the east line of the Northeast Quarter of said Section 24, west a distance of 428.0 feet; thence north parallel with the east line of the Northeast Quarter of said Section 24 a distance of 186.0 feet; thence east a distance of 28.0 feet; thence north parallel with the east line of the Northeast Quarter of said Section 24 a distance of 957.23 feet to a point on the north line of the Northeast Quarter of said Section 24; thence S89º52’02”E and on the north line of the Northeast Quarter of said Section 24 a distance of 400.0 feet to the place of beginning, containing 10.62 acres, more or less, of which 0.87 acres, more or less, are presently being used for road purposes on the east side, all in Buffalo County, Nebraska AND a tract of land being part of the East Half 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 northeast corner of Section 24 and assuming the east line of the Northeast Quarter of Section 24 as bearing south and all bearings contained herein or relative thereto; thence south on the east line of the Northeast Quarter of Section 24 a distance of 1143.00 feet to THE ACTUAL PLACE OF BEGINNING; thence continuing south on the east line of the Northeast Quarter of said Section 24 a distance of 178.50 feet to the southeast corner of the Northeast Quarter of the Northeast Quarter of said Section 24; thence continuing south on the east line of the Northeast Quarter of Section 24 a distance of 320.00 feet; thence S89°59’00”W a distance of 196.00 feet; thence N51°03’37”W a distance of 723.50 feet; thence N40°53’52”E a distance of 216.67 feet; thence north a distance of 66.00 feet; thence east a distance of 189.03 feet; thence south a distance of 186.00 feet; thence east a distance of 428.00 feet, containing 6.68 acres, more or less, all in Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N); and

WHEREAS, the Kearney City Planning Commission has received and held a public hearing on April 21, 2006 and again on May 19, 2006 on the inclusion of “BEL AIR THIRD ADDITION” within the corporate limits and recommended the Kearney City Council approve said application; and

WHEREAS, said application to include the land within the corporate limits was duly signed by the owners of the land affected with the express intent of platting the land as “BEL AIR THIRD ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska;

WHEREAS, a public hearing was held by the Kearney City Council relating to said application on June 13, 2006 who deemed the said addition to be included within the corporate limits to be advantageous to and in the best interests of the City.

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the land to be platted as “BEL AIR THIRD ADDITION” shall be included within the corporate limits of the City of Kearney, Buffalo County, Nebraska, that the inhabitants of such addition shall be entitled to all the rights and privileges, and shall be subject to all the laws, ordinances, rules and regulations of the City of Kearney.

BE IT FURTHER RESOLVED that the inclusion of “BEL AIR THIRD ADDITION” within the corporate limits of the City of Kearney is subject to the final plat being filed with the Buffalo County Register of Deeds.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

REZONING BETWEEN CENTRAL AVENUE AND AVENUE A, NORTH OF 15TH STREET

Public Hearings 9 and 10 were discussed together but voted on separately.

Mayor Hadley opened the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for M.J. and Janis Schultz (Owner) to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (between Central Avenue and Avenue A, north of 15th Street).

The applicant is requesting approval to redevelop a parcel of land across Central Avenue from the Buffalo County Courthouse for a professional office building. This property is located in the Community Redevelopment Authority (CRA) Redevelopment Area # 2, which stretches from the south edge of downtown Kearney south to Talmadge Street on both sides of Central Avenue. This project requires approval of rezoning and redevelopment plans to meet the requirements of the CRA redevelopment statutes.

The property in question is currently zoned M-1, General Industry. The area to be rezoned includes the land that lies between Central Avenue and the existing alley to the east, north of 15th Street, but not including the auto body repair shop. The rezoning request is from M-1 to CBD, Kearney Center Mixed Use District. The Future Land Use Map of the Kearney Comprehensive Development Plan shows this parcel as “Kearney Gateway Mixed Use,” which will accommodate a number of different zoning categories. Staff believes that the proposed rezoning is in conformance with the land use designation and therefore supports the rezoning. This project will provide office space across the street from the courthouse and be an attractive addition to the surrounding neighborhood.

The Project will consist of the following:

a) The existing buildings on the site will be demolished and removed.

b) The proposed use of the property that is under redevelopment consideration is for a two-story office building facing south. There will be 5,500 square feet per floor for a total floor area of 11,000 square feet in this colonial style brick building.

c) No off-street parking is required by code in this zoning district; however, the applicant is providing 43 off-street parking spaces. The entire parking lot including access drives shall be bordered by concrete curb and gutter.

d) The existing north-south alley will be vacated from public use but will still be part of the circulation as a private drive and retained as a 20-foot wide utility easement as there is a sanitary sewer line located here.

e) An area inlet shall be constructed in the southwest corner of the parking lot and shall be tied into the existing storm drain manhole on the street corner.

f) A Landscape Plan is provided, however the size of the proposed plant material is not provided. The City requires certain minimum sizes. Also, all landscaped areas are to be irrigated with an underground sprinkler system. A note to this effect shall be added to the Landscape Plan.

g) Trash dumpster location is not shown on the plans. The location and size of the trash collection area shall be coordinated with the Utilities Department.

Staff and Planning Commission recommend approval of the rezoning and redevelopment project for this property.

Mitch Humphrey from Buffalo Surveying presented this matter to the Council. For many years, this area along Central Avenue has been zoned M-1. At this time, it seems practical to rezone it from M-1 to CBD to match the central business district zoning designations that are further to the north and presently in place along the downtown corridor. There are four lots located north of 15th Street and on the east side of Central Avenue to be rezoned. There are four lots to the east of this area that will become a future phase of this project, but are not included at this time. This property is located directly east of the Court House.

Barry Sherman, Executive Director of the Community Redevelopment Authority, stated this is the first TIF (Tax Increment Financing) project that the CRA has addressed for some time. Mr. and Mrs. Schultz brought their application to the April 20th meeting of the CRA. The project was unanimously approved by the CRA Board. Mr. and Mrs. Schultz addressed the need in their application and demonstrated the need for this in order to make it a viable project that will serve that neighborhood and south central area of Kearney for years to come. The CRA passed Resolution 2006-1.

The assistance provided will be for the removal of the existing buildings and site preparation for the new building project. They will make funds available for adequate lighting which is important for the safety and security of this area since it is located across the street from the Buffalo County Court House and the Detention Center. They also took into consideration that the Court House has plans for some expansion and changes to the Detention Center in the future. They will also be assisting with funds to put in some new sidewalks, new utilities and upgrading utilities to the facility. The CRA basically provides funds for infrastructure needs for projects like this.

Mayor Hadley asked for a brief description of TIF financing. Mr. Sherman stated that this total project will be approximately $2 million when it is completed. At this time those lots are valued at around $165,000-$170,000. The additional value created by this project will generate approximately $33,000 more real estate property tax annually in the future. This valuation and property tax is based on the current levy and the new value that is created. The $33,000 new valuation can be rebated proportionately to the developer to offset the qualifying costs presented. The developer pays the total real estate tax bill based on the valuation of $33,000 to the County Treasurer to be distributed to the other political subdivisions. That new valuation amount comes back to the CRA and they in turn rebate it back to the developer. In this case, with the amount of money that is being awarded to this development, it will take approximately 4½ years to satisfy this contract. After that the total amount of the new valuation will go on to the political subdivisions.

Council Member Clouse stated that he has heard comments around the community about this project and commended everyone who has been a part of it. He believed that it will really help that area and is a great asset to the community.

There was no one present in opposition to this hearing.

Moved by Kearney seconded by Clouse to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for M.J. and Janis Schultz (Owner) to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (between Central Avenue and Avenue A, north of 15th Street). Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

REDEVELOPMENT PROJECT FOR REDEVELOPMENT AREA #2 – 1507 CENTRAL AVENUE

Mayor Hadley opened the public hearing on the redevelopment project for Redevelopment Area #2 for an area described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (1507 Central Avenue) and to consider approval of Resolution No. 2006-90.

There was no one present in opposition to this hearing.

Moved by Clouse seconded by Lear to close the hearing and approve the redevelopment project for Redevelopment Area #2 for an area described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (1507 Central Avenue) and approve Resolution No. 2006-90. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

RESOLUTION NO. 2006-90

WHEREAS, the City of Kearney, Nebraska, a municipal corporation and city of the first class, has determined it be desirable to undertake and carry out urban redevelopment projects in areas of the City which are determined to be substandard and blighted and in need of redevelopment; and

WHEREAS, the Nebraska Community Development Law, Chapter 18, Article 21, Nebraska Reissue Revised Statutes of 1991, as amended (the “Act”), prescribes the requirements and procedures for the planning and implementation of redevelopment projects; and

WHEREAS, the City has previously declared an area of the City to be substandard and blighted and in need of redevelopment pursuant to the Act; and

WHEREAS, the Community Redevelopment Authority of the City of Kearney, Nebraska (the “Authority”), has prepared a Redevelopment Plan No. 2, as amended by Amendment #1, pursuant to Section 18-2111 of the Act (“Redevelopment Plan”), and recommended the Redevelopment Plan to the Planning Commission of the City; and

WHEREAS, the Planning Commission of the City reviewed the Redevelopment Plan pursuant to the Act and submitted its recommendations, if any, to the City, pursuant to Section 18-2114 of the Act; and

WHEREAS, following consideration of the recommendations of the Authority to the Planning Commission, the recommendations of the Planning Commission to the City, if any, and following the public hearing with respect to the Redevelopment Plan, this City approved the Plan; and

WHEREAS, there has been presented to the City by the Authority for approval pursuant to and in accordance with Section 18-2119 of the Act a specific Redevelopment Project within the Redevelopment Plan and as authorized in the Redevelopment Plan, as legally described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (1507 Central Avenue); and

WHEREAS, the City Council has determined that the proposed Redevelopment Project would not be economically feasible without the use of tax increment financing; that the proposed Redevelopment Project would not occur in the community without the use of tax increment financing, and; that the costs and benefits of the proposed Redevelopment Project have been found to be in the long-term best interests of the community.

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that:

1. The Redevelopment Plan of the City previously approved for the area described on the attached Exhibit “A”, including the Redevelopment Project legally described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska, is hereby determined to be feasible and in conformity with the general plan for the development of the City of Kearney as a whole and the Redevelopment Plan, including the Redevelopment Project identified on the attached Exhibit “A”, is in conformity with the legislative declarations and determinations set forth in the Act;

2. The City Council hereby determines that the proposed Redevelopment Project would not be economically feasible without the use of tax increment financing; that the proposed Redevelopment Project would not occur in the community without the use of tax increment financing, and; that the costs and benefits of the proposed Redevelopment Project are found to be in the long-term interests of the community.

3. Approval of the Redevelopment Plan is hereby ratified and reaffirmed, as amended by this Resolution, and the Authority is hereby directed to implement the Redevelopment Plan in accordance with the Act,

4. Pursuant to Section 18-2147 of the Act, ad valorem taxes levied upon real property in a redevelopment project for the benefit of any public body, included or authorized in the Plan which is legally described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska, shall be divided, for a period not to exceed 15 years after the effective date of the provision, which effective date shall be June 13, 2006, as follows:

a. That proportion of the ad valorem tax which is produced by the levy at the rate fixed each year by or for each public body upon the redevelopment project valuation (as defined in the Act) shall be paid into the funds of each such public body in the same proportion as are all other taxes collected by or for the body; and

b. That proportion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to be used solely to pay the principal of, the interest on, and any premiums due in connection with the bonds, loans, notes or advances of money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, the redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness, including interest and premiums due, have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon taxable real property in such a redevelopment project shall be paid into the funds of the respective public bodies.

c. Any interest and penalties due for delinquent taxes shall be paid into the funds of each public body in the same proportion as are all other taxes collected by or for the public body.

5. The Mayor and City Clerk are authorized and directed to execute and file with the Treasurer and Assessor of Buffalo County, Nebraska, an Allocation Agreement and Notice of Pledge of Taxes with respect to the Redevelopment Project substantially in the form attached hereto as Exhibit “B” with appropriate insertions.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY AND EX-OFFICIO MAYOR

CITY CLERK

REZONING – AVENUE A SOUTH OF 21ST STREET

Mayor Hadley opened the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Illride Enterprises, LLC (Owner) to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as all of Lot 539 and the south 20 feet of Lot 540, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (Avenue A, south of 21st Street).

The applicant is requesting approval to rezone an existing building that formerly housed the Kearney Area Children’s Museum located on the northeast edge of the downtown Central Business District. The current zoning is M-1, General Industry, and the proposed zoning is CBD, Kearney Center Mixed Use District. The owner is redeveloping the structure to serve as residential apartments. Staff supports the rezoning request since M-1 is a poor fit for downtown zoning. This area was most likely zoned M-1 years ago due to its proximity to the Union Pacific Railroad tracks. Residential use and M-1 zoning are generally incompatible – new residential uses are not allowed in M-1 zoning.

This building has some structural problems that are being corrected by the owner. A structural engineer provided the required improvements in a detailed report. Adaptive reuse of older buildings in the CBD Districts, especially for upper floor residential living units, is one of the goals of the current Comprehensive Plan.

Staff and Planning Commission recommend approval of the requested rezoning.

Mitch Humphrey from Buffalo Surveying presented this matter to the Council. This is similar to the other project that he presented asking for rezoning from M-1 to CDB to match what is going on downtown. This site is one business north of the intersection of Avenue A and north of Railroad Street. It is the old Children’s Museum site. The building’s history dates back about 100 years. The owners want to take this site and convert it to some apartments. They are renovating it and conforming to codes which will be completed after the rezoning is approved. There will be approximately 15 apartments.

Council member Lear asked where will the residents of those apartments park? Mr. Humphrey responded they are working on parking options. Many of the downtown apartments in the older neighborhoods of Omaha and redeveloped areas of Lincoln do not have a lot of parking because people do not want parking. What he has been told is that they do not want a lot of parking, but they will have to see how that pans out.

Council member Lear pointed out that most of the parking in that area is a 2-hour limit parking along the major streets. The Police Department is adjacent to it taking up most of the parking on that street. There is a City parking lot to the north of the Police Department. This is a unique project for Kearney and believes is great that someone wants to take this on. As parking occurs with these residents and future development of that area, his concern is how that will impact the future parking situation in that area.

Council member Kearney pointed out that it is within the downtown improvement district which has no more parking requirements. Mr. Humphrey responded he thinks by rezoning this district from M-1 to CDB is advantageous to the City and the detailed plans when they are presented to the Planning Commission that parking situation will have to be addressed.

Council member Buschkoetter stated he believed the difference between this project and the downtown “Old Market” areas is that they have a lot more accessibility to public transportation. He concluded that vehicles are more necessary in Kearney than they are in Lincoln and Omaha. Mr. Humphrey stated that some might argue that point by saying that it is possible to walk (if you want) to most anywhere in Kearney. He agreed that our lifestyle here is different from the bigger cities.

Council Member Lear stated that he has not objections to the project, but he thinks that if we were to do many projects of this nature, it might be a concern. The project on south Central Avenue is providing 43 parking spots although they were not required to and that could have created a real problem for that area. He believed they have enough problems with parking at the present time in terms of the mixed office use issue.

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing and approve the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Illride Enterprises, LLC (Owner) to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as all of Lot 539 and the south 20 feet of Lot 540, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (Avenue A, south of 21st Street). Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

REZONING – 145 FEET WEST OF THE INTERSECTION OF 22ND AVENUE AND 50TH STREET

Mayor Hadley stated the applicant has requested the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 0.656 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street) be tabled until June 27, 2006.

Moved by Buschkoetter seconded by Hadley to table until June 27, 2006 the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 0.656 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street). Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

CASTLE RIDGE THIRD FINAL PLAT

Mayor Hadley stated the applicant has requested the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) for final plat approval and Subdivision Agreement for “CASTLE RIDGE THIRD” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being Lot 1 of Block 4 (to be vacated), North Park, an addition to the City of Kearney, Buffalo County, Nebraska AND part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 1.004 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street) be tabled until June 27, 2006.

Moved by Buschkoetter seconded by Hadley to table until June 27, 2006 the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) for final plat approval and Subdivision Agreement for “CASTLE RIDGE THIRD” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being Lot 1 of Block 4 (to be vacated), North Park, an addition to the City of Kearney, Buffalo County, Nebraska AND part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 1.004 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street). Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

CASTLE RIDGE THIRD – INCLUDE TO CITY LIMITS

Mayor Hadley stated the applicant has requested the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) for the inclusion into the City limits of “CASTLE RIDGE THIRD” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being Lot 1 of Block 4 (to be vacated), North Park, an addition to the City of Kearney, Buffalo County, Nebraska AND part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 1.004 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street) be tabled until June 27, 2006.

Moved by Buschkoetter seconded by Hadley to table until June 27, 2006 the public hearing on the Application submitted by Mitch Humphrey from Buffalo Surveying (Applicant) for Denton Enterprises, Inc. (Owner) for the inclusion into the City limits of “CASTLE RIDGE THIRD” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being Lot 1 of Block 4 (to be vacated), North Park, an addition to the City of Kearney, Buffalo County, Nebraska AND part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 1.004 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street). Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

DEVELOPMENT PLAN APPROVAL – 3210 ANTELOPE AVENUE

Mayor Hadley opened the public hearing on the Application submitted by Richard Stacy from Miller & Associates and M-6 of Kearney, LLC (Applicant) for Blessing, LLC (Owner) for Planned District Development Plan Approval for the construction of a storage facility on property zoned “District M-1/PD, Limited Industrial District/Planned Development Overlay District” and described as a tract of land being part of Lot 1, part of Lot 2 and part of Lot 11, St. Luke’s Good Samaritan Village, an addition to the City of Kearney, Buffalo County, Nebraska (3210 Antelope Avenue) and to consider approval of Resolution No. 2006-93.

The applicant is requesting approval to develop a parcel of land on the west side of Antelope Avenue next to St. Luke’s Good Samaritan Village for industrial storage. Two large metal warehouse style buildings and associated outside yard storage will be used as contractor’s headquarters or a similar use. This project requires approval of development plans since it is zoned M-1/PD.

Staff has reviewed the Development Plans and offers the following comments:

a) The development proposes two buildings that are 100 feet by 350 feet or 35,000 square feet each. One has frontage lengthwise on Antelope Avenue and the second is located to the west.

b) Truck access and delivery is located between the two buildings.

c) The (east) building with frontage on Antelope Avenue features brick wainscoting on the east and south facades. The remainder of the building facades for both buildings is metal panel.

d) The east building features hard surfaced parking between Antelope Avenue and the building, while the remainder of the site parking, maneuvering, and outdoor storage will be gravel or crushed concrete.

e) Stormwater will be collected and detained in the landscape strip to the south of the buildings. Final design and computations for the stormwater detention must be submitted to the City Engineer and approved prior to any building permits being issued.

f) A Landscape Plan is provided; however, the size of the proposed Maple trees shall be increased from 1 ½-inch caliper to 2-inch caliper to meet the city size standards.

g) Each building shall be separately connected to municipal water and sanitary sewer.

h) The location and size of the trash collection area shall be coordinated with the Utilities Department.

Staff and Planning Commission recommend approval of the Development Plans for this property subject to compliance with the following conditions: (1) the developer shall submit to the City for approval the final design and computations for the stormwater detention prior to the issuance of any building permits; (2) the size of the proposed maple trees shall be 2-inch caliper; (3) each building shall be separately connected to municipal water and sanitary sewer; and (4) the location and size of the trash collection area shall be coordinated with the Utilities Department.

Craig Bennett from Miller & Associates presented this matter to the Council. He stated that across the street from this parcel it is zoned M-1. There is an existing concrete road that was put in privately to that area. There are existing trees of which some will remain as buffer to the land to the north. This development plan will consist of two buildings. The first building is 100’X350’ (35,000 sq. ft.) and will have a front facade of offices and storage in the back. There would be parking to facilitate traffic coming off of Antelope Avenue through this driveway to the various businesses or suites. It will have a split face and brick facade along the front. Essentially, it would be a metal building on the west, north and south side of the building. They are requesting one access off of Antelope Avenue and they will continue to utilize this as a private road which is also used to access St. Luke’s area where there are apartment complexes. The second building is more a utilitarian type of building that could be used for contractor shops not storefront type uses. On their plan they show a couple of semi-tractor trailers, in order to allow for this type of equipment although there would not be loading docks or any type of raised structures. This would be for slab on grate so that trucks could drive in big doors on the common area in between. There would have concrete parking on the east, detention cells on the south for storm water drainage and gravel open area in between to access the second building and the back of the first building. Part of the development plan is to put landscaping with trees and green spaces along Antelope Avenue and along the detention cell on the south. He assured the Mayor that compliance with the four conditions were not a problem.

There was no one present in opposition to this hearing.

Moved by Hadley seconded by Kearney to close the hearing and approve the Application submitted by Richard Stacy from Miller & Associates and M-6 of Kearney, LLC (Applicant) for Blessing, LLC (Owner) for Planned District Development Plan Approval for the construction of a storage facility on property zoned “District M-1/PD, Limited Industrial District/Planned Development Overlay District” and described as a tract of land being part of Lot 1, part of Lot 2 and part of Lot 11, St. Luke’s Good Samaritan Village, an addition to the City of Kearney, Buffalo County, Nebraska (3210 Antelope Avenue) and approve Resolution No. 2006-93 subject to compliance with the following conditions: (1) the developer shall submit to the City for approval the final design and computations for the stormwater detention prior to the issuance of any building permits; (2) the size of the proposed maple trees shall be 2-inch caliper; (3) each building shall be separately connected to municipal water and sanitary sewer; and (4) the location and size of the trash collection area shall be coordinated with the Utilities Department. Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

RESOLUTION NO. 2006-93

WHEREAS, Richard Stacy from Miller & Associates and M-6 of Kearney, LLC (Applicant) for Blessing, LLC (Owner) have applied for Planned District Development Plan Approval for the construction of a storage facility on property zoned “M-1/PD, Limited Industrial District/Planned Development Overlay District” and described as part of Lot 1, part of Lot 2 and part of Lot 11, St. Luke’s Good Samaritan Village, an addition to the City of Kearney, Buffalo County, Nebraska (3210 Antelope Avenue).

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the application of Richard Stacy from Miller & Associates and M-6 of Kearney, LLC (Applicant) for Blessing, LLC (Owner) for District Planned Development Plan Approval for the construction of a storage facility on property zoned “M-1/PD, Limited Industrial District/Planned Development Overlay District” and described as part of Lot 1, part of Lot 2 and part of Lot 11, St. Luke’s Good Samaritan Village, an addition to the City of Kearney, Buffalo County, Nebraska (3210 Antelope Avenue) be approved subject to compliance with the following conditions: (1) the developer shall submit to the City for approval the final design and computations for the stormwater detention prior to the issuance of any building permits; (2) the size of the proposed maple trees shall be 2-inch caliper; (3) each building shall be separately connected to municipal water and sanitary sewer; and (4) the location and size of the trash collection area shall be coordinated with the Utilities Department.

PASSED AND APPROVED THE 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

REZONING – SOUTH OF 48TH STREET AND WEST OF 6TH AVENUE

Public Hearings 16, 17 and 18 were discussed together but voted on separately.

Mayor Hadley opened the public hearing on the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue).

The applicant is requesting approval of a residential subdivision located west of 6th Avenue and south of 56th Street. This property will be developed in phases. The first phase consists of 35.80 acres on the south end of the tract taking access from 48th Street extended west.

The rezoning request is from District AG to District R-1, Urban Residential Single-Family District (Low Density). This rezoning request conforms to the Future Land Use Map of the City of Kearney Comprehensive Development Plan.

The Preliminary Plat of Fountain Hills Addition consists of 194.83 acres containing 266 lots. The area contained in the Preliminary Plat extends from 48th Street south to Honey Hills Estates and west from 6th Avenue to Brandt’s Subdivision. Not all the lots shown on the Preliminary Plat are single-family; some lots are reserved for future commercial, office and multi-family development. Outlots are reserved for drainage or easement purposes. The Preliminary Plat was approved by Planning Commission on May 19, 2006. The first phase of the proposed development as shown on the Final Plat of Fountain Hills First Addition is 35.80 acres containing 64 single-family lots and Outlot A to convey drainage and hike-bike trails.

a) A Public Works Plan has been prepared for the overall Fountain Hills property.

b) A wetlands delineation has been conducted by the Corps of Engineers. Wetlands are contained within the outlots.

c) Natural direction of overland flow is maintained through the use of outlots and open ditches. Some element of the drainage system will include stormdrain pipe where streets cross the outlots.

d) No building permits will be issued until final design and computation of the stormwater detention system is submitted and approved by the City Engineer.

e) All existing easements of record within the platted area shall be shown on the Final Plat.

f) The Owner will work with the Kearney Parks and Recreation Department to identify the best routes for a network of hike/bike trails to be planned internally, following the outlots and 100 year floodplain. The Trails Master Plan depicts a trail running east-west on a Kinder-Morgan pipeline easement traversing through this property. Staff requests that this trail be accommodated and the alignment of the trail can be adjusted to fit the subdivision layout if necessary. Interior outlots or easements associated with the trail system shall be identified as such on the Final Plat.

g) A Subdivision Agreement is not required for the first phase. An Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

h) Temporary turnarounds shall be constructed at the terminus of 9th Avenue and 11th Avenue.

This property can be annexed into the city limits as it does abut the city limits and services are available.

Staff and Planning Commission recommend approval of the rezoning, final plat and annexation subject to compliance with the following conditions: (1) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (2) all existing easements of record within the platted area shall be shown on the final plat; (3) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (4) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; (5) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure; and (6) temporary turnarounds shall be constructed at the terminus of 9th Avenue and 11th Avenue.

Craig Bennett from Miller & Associates presented this matter to the Council. He stated that a preliminary plat of about 200 acres was taken to Planning Commission. They are doing the first phase of which is about 35 acres. The site is basically agricultural with mainly alfalfa rolling hills and native ground that has been undisturbed. This 35-acre parcel will work around the existing wetlands that have some wildlife activity. The developer plans to enhance that wetlands area as opposed to removing or mitigating them. The wetlands will be tied in with their detention cell plan. The final plat includes a cul-de-sac that comes off 46th Street and ties into Honey Hills Subdivision which is currently undeveloped but platted at this time. They will accept circulation from Honey Hills, 11th Avenue, Palamino Road and Loveland Drive which currently terminate into this subdivision. In the overall development plan, they show how they will continue to accept those roads.

There will be single family low density planned use. Since there is an existing drainage way through there, they will utilize them as outlots which will be open areas with detention cells and also used for public access. It will not be a square where you walk to the waters edge. The developer wants a concept where it is pedestrian friendly where you could go out and visit these areas. At the end of each cul-de-sac, there is an open public access where pedestrians will be able to go through. This is not an easement; it is a public access that would be part of these outlots.

They will be accepting the hike/bike trail to connect into that green space. This plan is to develop a concept to fit with the master plan of the entire 200 acres. There is a potential for a school going into the area. They have done a lot in terms of how they laid out the subdivision’s road matrix and road alignments to make it safe around this potential area. There are few lots designed for commercial and an R-2/PD for possibly fourplexes. 54th Street would be a median boulevard type of look similar to the grass median at Light House Point. This would serve as a median from a low residential use to a more commercial use.

In a subdivision that is this large, they really had to look at traffic circulation. This final plat consists of a series of cul-de-sacs, one outlot or detention cell, a couple of eyebrows, some nice aesthetics by building the streets along that ridge to allow people to have the most attractive walkout basements on both sides. There are some large lots on the west side and similar lots to the east side of Parkwood which would be on the west side of 11th Avenue.

Council member Clouse asked if there is a homeowners association that would be responsible for the outlots. Mr. Bennett stated the outlots would be the responsibility of the homeowners association. The developer previously asked if the City would like to take it over but it was denied. Mayor Hadley asked for an explanation of an outlot. An outlot is sometimes shown on plats as a lot that would be taken over by an association or used as a common area for public access, but the most common use is for a detention cell.

In the master plan, the subdivision is known as Fountain Hills and on the very north end they plan to have a small body of water with a fountain. In the future phases, they will have some detained water with some type of permanent water collection and a fountain or two. The outlot will basically follow the existing wetlands area which has cattails and trees. The outlot itself is not part of the area where there is alfalfa. On the outlot there is also a man-made dam of which water goes around the west side where it traverses and settles and traverses northerly towards 56th Street. They are also looking at obtaining some conservation funds to preserve it since it is a habitat for ducks. They are looking at the possibility of the man-made dam being made a place to walk across with park benches. The outlot is designed into the wetlands area. Because it has a little bit of a dam it does detain water for a period of time. They plan to enhance that amount by utilizing it as a detention cell for this development phase for the increase run off from the single family residential land use.

Council member Buschkoetter asked if they can determine how much this would increase the amount of runoff, would it double the size of the wetlands area or be about the same. Mr. Bennett stated they would be looking at the elevation of the pond and perhaps making it deeper to contain the run off. They would not dig it below to make it deeper, but build it up around the sides to make it more of a pool and then releasing it and constricting the rate that it flows out. In that way it would pond up behind the outlet portion of the detention cell.

Council member Lear asked if enhancing means increasing the storage amount of the area. Mr. Bennett replied they would use it to enhance aesthetically because the developer wants to keep that native look there. If they remove wetlands then they have to mitigate so they have to be careful how they acquire detention for their development and also not disturb the wetlands. In addition, there is a detention in the middle of the quarter section and another to the north. If they do have to do some mitigation, they can allow those areas to couple mitigation with those if they cannot get all their detention without mitigating some of the wetland areas.

There was no one present in opposition to this hearing.

Moved by Kearney seconded by Clouse to close the hearing and approve the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue). Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

FOUNTAIN HILLS FIRST ADDITION FINAL PLAT

Mayor Hadley opened the public hearing on the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) for final plat approval for “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue) and to consider approval of Resolution No. 2006-94.

There was no one present in opposition to this hearing.

Moved by Clouse seconded by Lear to close the hearing and approve the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) for final plat approval for “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue) and approve Resolution No. 2006-94 subject to compliance with the following conditions: (1) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (2) all existing easements of record within the platted area shall be shown on the final plat; (3) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (4) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; (5) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure; and (6) temporary turnarounds shall be constructed at the terminus of 9th Avenue and 11th Avenue. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

RESOLUTION NO. 2006-94

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska, 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 subject to compliance with the following conditions: (1) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (2) all existing easements of record within the platted area shall be shown on the final plat; (3) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (4) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; (5) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure; and (6) temporary turnarounds shall be constructed at the terminus of 9th Avenue and 11th Avenue.

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 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

FOUNTAIN HILLS FIRST ADDITION – INCLUDE TO CITY LIMITS

Mayor Hadley opened the public hearing on the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) for the inclusion into the City limits of “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue) and to consider approval of Resolution No. 2006-95.

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing and approve the Application submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) for the inclusion into the City limits of “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue) and approve Resolution No. 2006-95. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

RESOLUTION NO. 2006-95

WHEREAS, an Application has been submitted by Craig Bennett from Miller & Associates for Grandwest, LLC (Applicant) and Norsworthy Company, a Nebraska Partnership (Owner) for the inclusion of “FOUNTAIN HILLS FIRST ADDITION” an addition within the corporate boundaries of the City of Kearney said property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska, more particularly described as follows: Referring to the northeast corner of said Southwest Quarter thence S00°21'57"E (an assumed bearing with all other bearings shown hereon relative thereto) along the east line of said Southwest Quarter a distance of 480.98 feet to the true point of beginning; thence continuing S00°21'57"E along said east line a distance of 841.87 feet to the southeast corner of said Northeast Quarter; thence S89°35'09"W along the south line of said Northeast Quarter a distance of 1322.52 feet to the southwest corner of said Northeast Quarter; thence N00°21'36"W along the west line of said Northeast Quarter a distance of 1320.63 feet to the north line of said Northeast Quarter; thence N89°38'19"E along said north line a distance of 240.76 feet; thence northeasterly along a non-tangent curve to the right having a central angle of 24°29'23", a radius of 217.00 feet an arc length of 58.88 feet and a chord bearing of N20°40'23"E; thence leaving said curve N41°42'27"E a distance of 95.69 feet; thence east-southeasterly along a non-tangent curve to the left having a central angle of 33°05'33", a radius of 533.00 feet, an arc length of 307.85 feet and a chord bearing of S68°35'02"E; thence leaving said curve S05°59'12"W a distance of 158.05 feet; thence S84°00'48"E a distance of 199.79 feet; thence S58°14'27"E a distance of 541.19 feet; thence S77°42'53"E a distance of 66.55 feet to the point of beginning, said tract containing 35.80 acres, more or less, all in Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue); and

WHEREAS, the Kearney City Planning Commission has received and held a public hearing on May 19, 2006 on the inclusion of “FOUNTAIN HILLS FIRST ADDITION” within the corporate limits and recommended the Kearney City Council approve said application; and

WHEREAS, said application to include the land within the corporate limits was duly signed by the owners of the land affected with the express intent of platting the land as “FOUNTAIN HILLS FIRST ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska;

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the land to be platted as “FOUNTAIN HILLS FIRST ADDITION” shall be included within the corporate limits of the City of Kearney, Buffalo County, Nebraska, that the inhabitants of such addition shall be entitled to all the rights and privileges, and shall be subject to all the laws, ordinances, rules and regulations of the City of Kearney.

BE IT FURTHER RESOLVED that the inclusion of “FOUNTAIN HILLS FIRST ADDITION” within the corporate limits of the City of Kearney is subject to the final plat being filed with the Buffalo County Register of Deeds.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

REZONING NORTH OF 56TH STREET AND WEST OF 4TH AVENUE

Public Hearings 19, 20 and 21 were discussed together but voted on separately.

Mayor Hadley opened the public hearing on the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue).

The applicant is requesting approval of a residential subdivision located west of 4th Avenue and north of 56th Street. This property will be developed in phases. The first phase consists of 28.17 acres on the east end of the tract taking access from 60th Street extended west.

The Preliminary Plat of Spruce Hollow Addition consists of 201.85 acres containing 221 lots. The area contained in the Preliminary Plat extends from 56th Street north ½ mile and from 17th Avenue east about ¾ mile. Not all the lots shown on the Preliminary Plat are single-family; some lots are reserved for future commercial, office and multi-family development. Ten outlots are reserved for drainage or easement purposes. The Preliminary Plat was approved by Planning Commission on May 19, 2006. The first phase of the proposed development as shown on the Final Plat of Spruce Hollow Estates Addition is 28.17 acres containing 20 single-family lots and four outlots to convey drainage, hike-bike trails and subdivision signage. The layout of the Preliminary and Final Plat have been revised somewhat from the original concept and staff is in agreement with the changes. 60th Street is now proposed as an eighty-foot wide right-of-way boulevard street with planted medians. Lots shown along the north side of the property on the Preliminary Plat have been revised into a series of “eyebrow” configurations to accommodate the median breaks.

a) A Public Works Plan has been prepared for the overall Spruce Hollow property; however, due to the previously mentioned revisions, the Public Works Plan must also be revised.

b) A floodplain amendment has been requested from FEMA. It appears that the amendment will be approved. The detailed drainage study allows the area of land impacted by the 100 year floodplain to be reduced. The floodplain is not an issue in Phase One.

c) Natural direction of overland flow is maintained through the use of outlots and open ditches. Some element of the drainage system will include stormdrain pipe where streets cross the outlots. The stormdrain in 60th Street needs to be extended to connect with 4th Avenue. A triangular outlot is also proposed to contain the entry signage for the subdivision on the north side of 60th Street.

d) No building permits will be issued until final design and computation of the stormwater detention system is submitted and approved by the City Engineer.

e) A twenty-foot utility easement shall be shown on the Final Plat centered on the common line between Lot 1 and Lot 2, Block 1 and Lots 5 and 6 to accommodate the sanitary sewer force main. Also, a twenty-foot wide ingress-egress easement is shown on the east side of the north outlot to allow vehicular access to the lift station for emergency and maintenance purposes.

f) The Regional Master Plan for Hike/Bike Trails shall be extended to the north side of 56th Street to include this subdivision. The Owner will work with the Kearney Parks and Recreation Department to identify the best alternative routes. A network of hike/bike trails is planned internally, following the outlots and 100 year floodplain. Interior outlots or easements associated with the trail system shall be identified as such on the Final Plat.

g) A Subdivision Agreement is required to address the rights and responsibilities of the owner and the City in regards to development improvements including a homeowner’s association, maintenance of roadway medians and outlots (common grounds),municipal water, sanitary sewer, storm sewer and paving. Sanitary sewer lift station(s) will be required. 60th Street will be constructed by improvement district method while other parts of the infrastructure will be constructed by the developer. An Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

h) Temporary access and circulation to Lot 1 of Tami Addition shall be maintained throughout construction via the existing driveway. This driveway will also serve as temporary emergency vehicle access during construction.

This property can be annexed into the city limits as it does abut the city limits and services are available.

Staff and Planning Commission recommend approval of the Rezoning, Subdivision Plats and Annexation subject to compliance with the following conditions: (1) a revised Public Works Plan must be filed with the City showing 60th Street is being an 80-foot wide right-of-way boulevard street with planted medians; the lots shown along the north side of the property on the Preliminary Plat have been revised into a series of “eyebrow” configurations to accommodate the median breaks; (2) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (3) the stormdrain in 60th Street shall be extended to connect with 4th Avenue; (4) a 20-foot utility easement shall be shown on the final plat centered on the common line between Lots 1 and 2, Block 1 and Lots 5 and 6 to accommodate the sanitary sewer force main; (5) a 20-foot wide ingress-egress easement is shown on the east side of the north outlot to allow vehicular access to the lift station for emergency and maintenance purposes; (6) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (7) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; and (8) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

Kent Cordes from Miller & Associates presented this matter to the Council. He will also refer to the overall development of the 200 acres. This parcel is bounded by 17th Avenue on the west and 56th Street on the south and they will show how this parcel fits in. Most of this area is unzoned because it is in a rural area. There is one large rural lot, one existing home that is essentially outside their plat and on the east side there is some C-1, R-3PD and a C-1/PD zoning. The most dominant feature is the green space which is a natural drainage way through the subdivision which happens to lie in a designated floodplain. The developer has submitted a letter of map revision to FEMA to try to reduce the amount of floodplain area within this site. The green space bounds essentially what would be the new floodplain if the request is approved. The developer has received some comments back which he is addressing and hopes to have a decision soon on how that revision is going. Since that is a floodplain it is not easily developed so they hope to use this for a trail system, open space and park as an amenity to the overall subdivision.

They emulated the circulation plan for traffic. There will be a street extending east through the subdivision and tie in at 56th Street at 17th Avenue which will also be a boulevard type of street with divided medians. 11th Avenue will be going through providing circulation to the north. They will plat 6th Avenue which when the future parcel develops will line up with the existing platted 6th Avenue.

This is the first portion of Spruce Hollow Estates that is being presented at this meeting. Their projected land use will be single family low density residential, medium density or R-2 type of development and plan for R-3 for higher density along the green space and some proposed commercial. Exact configuration depends on how development progresses in that area and what type of businesses might be interested. They have left them as large lots with the anticipation that smaller commercial lots might be desirable and could be subdivided or platted as smaller lots when they plat this area.

Spruce Hollow Estates will tie in with 60th Street coming off 4th Avenue and will have to build about a block of that across some existing platted lots. They will build 5th Avenue Place and 6th Avenue and a cul-de-sac. The large lots are one acre plus lots especially around the cul-de-sac. The developer is anticipating that this might be a gated community and so an area will be provided for someone who does not realize this to turn around which will be the same diameter as a cul-de-sac. There is an outlot which at one time was a farm pond with a dam across the north side but to his knowledge has not had water for the past 12 years. There is a potential that it would hold water if there were runoff and they will provide for detention on that site. There will be an additional two outlots once it is platted. They have some platted outlots for City trails to interconnect the green space in the overall development plan to that green space.

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Hadley to close the hearing and approve the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue). Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

SPRUCE HOLLOW ESTATES ADDITION FINAL PLAT

Mayor Hadley opened the public hearing on the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) for final plat approval and Subdivision Agreement for “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue) and to consider approval of Resolution No. 2006-96.

There was no one present in opposition to this hearing.

Moved by Hadley seconded by Kearney to close the hearing and approve the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) for final plat approval and Subdivision Agreement for “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue) and approve Resolution No. 2006-96 subject to compliance with the following conditions: (1) a revised Public Works Plan must be filed with the City showing 60th Street is being an 80-foot wide right-of-way boulevard street with planted medians; the lots shown along the north side of the property on the Preliminary Plat have been revised into a series of “eyebrow” configurations to accommodate the median breaks; (2) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (3) the stormdrain in 60th Street shall be extended to connect with 4th Avenue; (4) a 20-foot utility easement shall be shown on the final plat centered on the common line between Lots 1 and 2, Block 1 and Lots 5 and 6 to accommodate the sanitary sewer force main; (5) a 20-foot wide ingress-egress easement is shown on the east side of the north outlot to allow vehicular access to the lift station for emergency and maintenance purposes; (6) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (7) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; and (8) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

RESOLUTION NO. 2006-96

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska, 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 subject to compliance with the following conditions: (1) a revised Public Works Plan must be filed with the City showing 60th Street is being an 80-foot wide right-of-way boulevard street with planted medians; the lots shown along the north side of the property on the Preliminary Plat have been revised into a series of “eyebrow” configurations to accommodate the median breaks; (2) the final design and computation of the stormwater detention system shall be submitted and approved by the City prior to the issuance of any building permits; (3) the stormdrain in 60th Street shall be extended to connect with 4th Avenue; (4) a 20-foot utility easement shall be shown on the final plat centered on the common line between Lots 1 and 2, Block 1 and Lots 5 and 6 to accommodate the sanitary sewer force main; (5) a 20-foot wide ingress-egress easement is shown on the east side of the north outlot to allow vehicular access to the lift station for emergency and maintenance purposes; (6) developer shall work with the City to identify the best routes for a network of hike-bike trails to be planned internally, following the outlots and the 100-year floodplain; (7) all interior outlots and/or easement associated with the trail system shall be identified as such on the final plat; and (8) an Infrastructure Agreement shall be required if the developer chooses to design and construct the public infrastructure.

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 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY AND EX-OFFICIO MAYOR

CITY CLERK

SPRUCE HOLLOW ESTATES ADDITION – INCLUDE TO CITY LIMITS

Mayor Hadley opened the public hearing on the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) for the inclusion into the City limits of “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue) and to consider approval of Resolution No. 2006-97.

There was no one present in opposition to this hearing.

Moved by Kearney seconded by Clouse to close the hearing and approve the Application submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) for the inclusion into the City limits of “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska for property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue) and approve Resolution No. 2006-97. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

RESOLUTION NO. 2006-97

WHEREAS, an Application has been submitted by Kent Cordes from Miller & Associates for DT Development (Applicant) and Dwight B. Stewart and Tamara C. Stewart (Owners) for the inclusion of “SPRUCE HOLLOW ESTATES ADDITION” an addition within the corporate boundaries of the City of Kearney said property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska, and more particularly described as follows: Referring to the northwest corner of the Southeast Quarter of said Section 23 and assuming the north line of said Southeast Quarter as bearing N89°13'07"E and all bearings contained herein are relative thereto; thence N89°13'07"E and on said north line a distance of 755.76 feet to the ACTUAL PLACE OF BEGINNING, said place of beginning being the northeast corner of Lot 1, Tami Second Addition, a subdivision being part of the Northwest Quarter of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska; thence S00°43'20"E on the east line of said Tami Second Addition (if extended southerly) a distance of 300.12 feet; thence S89°14'W a distance of 757.4 feet to the west line of said Southeast Quarter; thence S00°24'34"E and on said west line a distance of 210.02 feet; thence N89°50'18"E a distance of 288.37 feet to the point of curvature; thence on a 467.0 foot radius curve to the right, forming a central angle of 29°46'13" a distance of 242.65 feet to the point of tangency; thence tangent S60°23'29"E a distance of 266.01 feet; thence S29°36'31"W a distance of 275.0 feet; thence S18°52'53"W a distance of 20.36 feet; thence S23°22'57"W a distance of 168.0 feet; thence S04°28'44"W a distance of 163.58 feet; thence S00°27'16"E a distance of 134.5 feet; thence N89°39'E a distance of 210.0 feet; thence N00°27'16"W a distance of 36.0 feet; thence N89°39'E a distance of 239.89 feet; thence S00°27'16"E a distance of 204.0 feet; thence N89°39'E a distance of 282.25 feet, to the west line of Buffalo Commons Retirement Village, an addition to the City of Kearney, Buffalo County, Nebraska; thence N0°23'31"E on the west line of said Buffalo Commons Retirement Village and the west line of North Acre Third, an addition to the City of Kearney, Buffalo County, Nebraska a distance of 265.25 feet; thence N08°45'41"E and continuing on said west line a distance of 282.85 feet; thence N07°20'15"W on said west line of North Acre Third a distance of 121.73 feet; thence N25°52'56"W continuing on said west line a distance of 128.83; thence N01°19'45"W continuing on said west line a distance of 208.47 feet; thence N65°28'01"E continuing on the west line of said North Acre Third and the west line of Lot 1, Block 2, North Acre Sixth, an addition to the City of Kearney, Buffalo County, Nebraska, a distance of 272.24 feet; thence N04°45'58"E on the west line of said North Acre Sixth a distance of 143.68 feet; thence N23°23'37"E a distance of 383.5 feet to the north line of said Southeast Quarter; thence S89°13'07"W and on said north line a distance of 892.36 feet to the place of beginning, containing 28.17 acres, more or less, all in Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue); and

WHEREAS, the Kearney City Planning Commission has received and held a public hearing on May 19, 2006 on the inclusion of “SPRUCE HOLLOW ESTATES ADDITION” within the corporate limits and recommended the Kearney City Council approve said application; and

WHEREAS, said application to include the land within the corporate limits was duly signed by the owners of the land affected with the express intent of platting the land as “SPRUCE HOLLOW ESTATES ADDITION” an addition to the City of Kearney, Buffalo County, Nebraska;

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the land to be platted as “SPRUCE HOLLOW ESTATES ADDITION” shall be included within the corporate limits of the City of Kearney, Buffalo County, Nebraska, that the inhabitants of such addition shall be entitled to all the rights and privileges, and shall be subject to all the laws, ordinances, rules and regulations of the City of Kearney.

BE IT FURTHER RESOLVED that the inclusion of “SPRUCE HOLLOW ESTATES ADDITION” within the corporate limits of the City of Kearney is subject to the final plat being filed with the Buffalo County Register of Deeds.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

PROPOSED ACQUISITION – SANITARY SEWER EASEMENT IN SKIVIEW ADDITION

Mayor Hadley opened the public hearing on the proposed acquisition of a Permanent Sanitary Sewer Easement on the west 15 feet of the east 25 feet of Lot 3 of Block 1, Skiview Addition to the City of Kearney, Buffalo County, Nebraska except the south 245 feet thereof and to consider approval of Resolution No. 2006-98.

Director of Utilities Kirk Stocker presented this matter to the Council. At the May 9, 2006 Council meeting the Council approved a Developer Constructed Infrastructure Agreement with W & S Investments LLC to construct a sanitary sewer main on part of Lot 3 of Block 1, Skiview Addition. The agreement allowed for the construction of a sanitary sewer main to serve a multi unit professional building on the property. The agreement required the developer to grant the City a 15-foot wide Permanent Sanitary Sewer Easement over the west 15 feet of the east 25 feet of Lot 3, Skiview Addition except the south 245 feet.

Section 18-1775 of the Nebraska Revised Statute requires that a City of the first class acquiring an interest in real property shall do so only after the governing body has authorized the acquisition by action taken in a public meeting after notice and a public hearing.

There was no one present in opposition to this hearing.

Moved by Clouse seconded by Lear to close the hearing and approve the proposed acquisition of a Permanent Sanitary Sewer Easement on the west 15 feet of the east 25 feet of Lot 3 of Block 1, Skiview Addition to the City of Kearney, Buffalo County, Nebraska except the south 245 feet thereof and approve Resolution No. 2006-98. Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

RESOLUTION NO. 2006-98

WHEREAS, Section 18-1755, R.R.S., authorizes a city acquiring an interest in real property by purchase or eminent domain to do so only after the City Council has authorized the acquisition by action taken in a public meeting after notice and public hearing; and

WHEREAS, the City Council has held a public hearing upon the proposed acquisition for sanitary sewer purposes and voted in favor to proceed with the acquisitions; and

WHEREAS, W & S Investments LLC, a Nebraska Limited Liability Corporation, has granted to the City of Kearney, Nebraska, a Permanent Sanitary Sewer Easement as follows:

Permanent Sanitary Sewer Easement

A tract of land being the west 15 feet of the east 25 feet of Lot 3 of Block 1, Skiview Addition to the City of Kearney, Buffalo County, Nebraska except the south 245 feet thereof.

NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the Permanent Sanitary Sewer Easement granted by W & S Investments LLC, a Nebraska Limited Liability Corporation, to the City of Kearney be and are hereby approved and accepted.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

SPECIAL SALES TAX CAPITAL IMPROVEMENT PLAN

Mayor Hadley opened the public hearing on the Special Sales Tax Capital Improvement Plan for the City of Kearney.

City Manager Michael Morgan presented this matter to the Council. The City Council has had the following public meetings relative to the new ½ cent capital improvement sales tax:

· February 14, 2006 – Public Hearing at regular City Council meeting on the use of the special sales tax.

· May 2, 2006 – Study session with the Library Advisory Board regarding the possible use of the special sales tax for a library building expansion.

· May 9, 2006 – Discussion at regular City Council meeting regarding the establishment of spending guidelines for the special sales tax.

· May 23, 2006 – Approval of special sales tax spending guideline policy at regular City Council meeting.

There has been considerable discussion so far this year regarding the use of the new ½ cent special sales tax. The purpose of this second public hearing is to receive public input on the use of the special sales tax and approve the Capital Improvement Plan so that Administration can prepare the 2006-2007 City of Budget document based on the approved Capital Improvement Plan.

The City has created a fund entitled “Special Sales Tax – Capital Improvements/ Equipment Fund” to place the proceeds of the ½ cent sales tax. The ½ cent sales tax will be used specifically for funding capital improvements/equipment included in the Special Sales Tax Capital Improvement Plan.

He wanted to review what was committed to the citizens of Kearney last year regarding the ½ cent sales tax that was effective on April 1, 2006. There were previous discussions about capital improvement needs throughout the community based on the suggestions that were received from the community. They estimated about $2.7 million per year. The Council had recommended that it does not expire. The sales tax proceeds will be designed for capital improvements and equipment such as; street and traffic, streets, bridges, traffic signals, signing, sidewalks, curbs and public facilities (library expansion, activity center, senior center, fire stations, outdoor park and recreation programs and ADA improvements). There are some additional large projects that possibly would require issuance of some bonds according to State law. The sales tax will also be applied to major equipment such as: public safety equipment, street and park equipment. The sales tax will be placed in a separate fund established by the finance director.

City Council will hold a separate public hearing during the annual budget process to review and prioritize these projects. They have already held one public hearing and decided on the policy adopted by Council to hold a public hearing anytime there is a change in the program. They have already held one public hearing. He stated that Capital Funds will not be used to fund the Cherry Avenue bypass, which a major question received. The plan has been on the City website for some time which is based on the guide lines passed previously.

There have been some changes: the Harmon Park Activity Center funding has been increased to $1.9 million from $1.7 million due to the original budget did not include the elevator. In order to be a good neighbor the City has provided for our own offstreet parking as we require of others. This will also allow the last park ADA restrooms at Dryden Park to be completed by 2007. The Library expansion which has been budgeted at $4 million over a five year period starting next year to set aside funds of $500,000, the next year $800,000 and the following two years $850,00 per year and finally $1 million to accumulate the necessary total. They are still within the established guidelines for fund balances and target fund balances for buildings at 25 percent and debt. These are the changes since the last meeting.

Council member Clouse stated it is a good plan to get a lot of things accomplished. Although there are many projects going on now, we will see more and more positive things in the future that will come from the sales tax. He commended City staff for the tremendous job they are doing putting this plan together that address everything they hear and need. The numbers are already coming in a little higher than the original sales tax projection. This plan is fairly conservative so we might see some additional dollars that will be used for these projects.

Council member Kearney stated that there were compromises and they worked with each other with respect to getting this accomplished. Their study session and the listening sessions were blended together for this result.

Council member Buschkoetter stated that he likes the process they have put in place with the public hearings to get as much input as possible. The Library Board expressed the need to work with the Council and he was excited they were able to work together. Making the parks ADA compliable has been an ongoing discussion for a long time and he is very excited about having the last park restrooms completed by next year.

Mayor Hadley stated that he recently traveled overseas where their tax was 20 percent automatically added to each item purchased. He believed that our 7½ percent pales in comparison to that tax. He also commended the input received from the community during the whole process. It is important that when government says they are going to do something that they do it. It is also important to stay as transparent in the budgeting and spending process.

Marvion Reichert, Rolling Hills, stated that he still does not agree with $500,000 - $1 million per year for the next five years. He thinks that the City should do something with the library and that $500,000 per year should be a sufficient amount. Sales tax money could be used in the years following to add to it if more funds are needed. He also believed that if they need a bigger library facility, they need to have a bond issue to allow the people to vote on it. He had told the Park Board that the Harmon Park Activity Center should be done right regardless of cost and should be a priority.

Council member Clouse commented that it is quite a bit of money being set aside for the library. He believed since the library is a City facility and we have to support it in some manner and still get our other projects done and still have a good workable base; it is the right thing to do. He compared this amount to the cost of the new Grand Island Library which is $5 million. He stated that this plan gives the Library Advisory Board a number to work with. If they determine that the facility needs more than this base line amount, they can do their private fund raising or other actions. He believed that using the sales tax in this manner is a prudent way to accomplish this. It is not taking so much money that other projects are not being done and is a good alternative to the $13-$15 million project that was proposed a couple of years ago. If the Library Board wants to get to that point, they know what they have to do, either come back and ask for a bond election or go out for private funding.

Mr. Reichert asked hypothetically what is going to happen in two years if there are some other buildings to be done? Council member Buschkoetter responded that everything the City owns is going to wear out eventually. That is why they have the process to conduct these public hearings. Council member Kearney stated this is not binding on future councils. He again stated that there were a lot of compromises made to reach this decision. There was not one item that got everything that was requested.

City Manager Morgan stated that there was some confusion about the an article in the Kearney Hub of a $7.4 million figure that was difficult to understand because three projects were added together. He pointed out that they do have funds for the Senior Center and it could be moved into the building category, but since it is not a City building they somewhat separated it. There is also going to be a $200,000 to $300,000 fund balance across future years that could be spent as well. These targets are provided at the present time, but other things could be included in the future. The Harmon Park Activity Center is a priority and doubles the size of the existing structure with 30 parking spaces. Fire Station III is a very large building project, which could possibly be extended depending on the needs of the community. Due to the fact that they moved some of these projects up such as Harmon Park and Dryden restrooms during this first year, some of the out years got a little higher because they took away from the first year. Before the changes, it was probably a little higher in the first year, so it was not really $500,000 but $600,000-$700,000 to accumulate over five years.

Dan Bahensky, President of the Library Advisory Board, stated they appreciate what the City Manager and Council has done in meeting with their Board and giving them an opportunity to present their side on this undertaking. After this meeting they will have a definite idea of what they are looking for, what to meet with the architects about and what plans they can put together. They hopefully have a few other avenues and will be taking to people in the community about adding to this amount if they feel that is a necessary part of their project.

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing and approve the Special Sales Tax Capital Improvement Plan for the City of Kearney as presented. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

CDBG BUFFALO COUNTY PROGRAM INCOME REUSE FUNDS - XPANXION

Mayor Hadley opened the public hearing on the authorization of Buffalo County Program Income Reuse Funds in the amount of $87,500.00 for a low interest loan to Xpanxion, LLC for working capital and inventory.

The City of Kearney and Buffalo County are involved in an aggressive economic development plan aimed at bringing a stronger economic base to the area. The City of Kearney, the Kearney Area Chamber of Commerce and Buffalo County established the Buffalo County Economic Development Council. A Business Plan for the Economic Development Council was established on January 1, 1987 and was revised on March 10, 1992. The plan of action includes the elements of recruitment, retention, expansion, generation, community development, and organization. The purpose of the Local Revolving Equity/Loan Fund is to provide equity capital and loan funds to be committed towards the accomplishment of the eligible economic and/or development activities in the area.

Xpanxion is an IT consulting and outsourcing company that provides software development and IT consulting services through the use of U.S. and India based resources. Xpanxion proposes to establish a third office in Kearney to conduct quality assurance and testing for its software development projects. Xpanxion is seeking funds that will be used for working capital, to support creation of 10 full-time equivalent jobs, of which 6 will be from low-moderate income households.

Ron TIllery, Buffalo County Economic Development Council, presented this matter to the Council. This public hearing is to extend a loan to a company that is proposing to set up an operation in Kearney to establish a software quality and assurance operation expansion. The Development Council has reviewed the loan application. The CDBG application has been submitted and earlier today the County approved their portion of the total loan package that will be extended to this company. It is a dual loan package in that they are using all of the available CDBG Program Income Funds available both on the City and County side as required by Department of Economic Development guidelines.

Paul Eurek, CEO of Xpanxion, addressed the Council. Xpanxion is a local company with a global strategy which means they are big proponents and supports of the globalization of the work force and the way they do business into the future. The company was founded in 1998 and has about eight years of off shore development projects under their belt. Since they have been in business for the past eight years, they are asking for an expansion of their business. Xpanxion is a Georgia limited liability corporation with a subsidiary corporation they own based in India which is a privately owned company with no outside investors. The management team and employees own the company. Their company focuses on customer software development solution for their Georgia companies. An abbreviated list of clients they work with are; Coca Cola, NRC Corporation, Home Depot, Georgia Pacific, Premier and other venture capital backed companies and large privately held companies.

The technologies that they work with for these companies include state of the art technologies, programming languages and platforms. They do not bring legacy type technologies to the market, but the latest and greatest state of the art technologies that these corporations are asking them to help build software products on. They are looking to engage the Kearney community under the quality assurance which requires a series of applications and programming skills they are looking for from the people that they hire. Every business opportunity usually has an underlying problem.

In utilizing their end of year resources they found one problem they have is simple communication skills. Sometimes the product they produce does not address the actual needs of their clients due to miscommunication sometime from both parties involved. Another problem they discovered was that products shipped to the states from India arrived here after their business hours and so the resolution of any problems found was delayed. Based on those issues, they modified their business model and created a model called “Cross Sourcing”. The definition of Cross Sourcing leverages the strengths of the multiple locations and workforces to balance and offset their individual weaknesses. This means they have taken the best of where they think global software development leads them.

In Atlanta, it is a customer facing and in the project management in India, it is the software management engineer and they believe in Kearney it is going to be the quality assurance and the testing staff. The way their model lays out, they have literally taken a global approach to developing software. They believe they have a plan and model that could put central Nebraska, the Kearney area, within the main stream of software development for global application. They plan to establish a separate office here in Kearney which will have responsibility for test planning, test reviews, advanced testing services, regression and performance testing and software deployment to their customers. This is the last stop before the software is sent to their clients. This is a positive step for their clients because they will know that someone in the United States has tested the product and will be available for troubleshooting in or near their time zone.

The testers in Kearney will work with the existing Quality Assurance and development teams in India to achieve the optimal balance. They are not closing their India branch or insinuating any derogatory statements about the work they have done there. The Nebraska press has given them great exposure and has helped them in the recruiting process. Some of the reasons they chose Kearney for their site is good employees, people that understand what their product is and the lower cost of labor and doing business versus a metro area. They believe they can bring to our area new technology jobs with competitive salaries and hope to retain some of the UNK technology graduates in the community.

They think that the community will benefit from their bringing outside revenue and contracts from their clients in the southeast. They believe there is potential to bring attention to Kearney and Central Nebraska as an alternative for overseas expansion of the technology business. Mr. Eurek said as in any business there are a few risks. Their risks are the inability to recruit quality software test engineers in the Nebraska region; skepticism of some of their corporate clients in Atlanta to send high tech work to Central Nebraska; increased cost of fuel makes air travel between Atlanta and Omaha more expensive than budgeted, even though they believe it will be a positive factor that they can visit their clients in Atlanta. They have had overwhelming support from the educational sector at UNK, the private sector and the community leaders.

Mayor Hadley stated that he was very happy that they decided on Kearney after looking at other areas in Nebraska. Council member Clouse stated that he believed that this is something that we as community need to be behind and keep our “brightest and smartest” here in Nebraska and is good step in the technology field.

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Hadley to close the hearing and approve the authorization of Buffalo County Program Income Reuse Funds in the amount of $87,500.00 for a low interest loan to Xpanxion, LLC for working capital and inventory. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

IV. CONSENT AGENDA

Council member Lear abstained from discussion and voting on Subsection 9 for the reason he is employed by Platte Valley State Bank, one of the property owners.

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

9. Approve Resolution No. 2006-100 accepting the following Deeds with regard to Phase I of the 39th Street Improvement Project: Chippewa Realty (Little Caesar’s Pizza); Goodwill Industries of Greater Nebraska, Inc.; KEI Building, LLC (Kearney Eye); The Eating Establishment – Kearney North, Ltd. (Runza); Dennis P. Sherrerd, Trustee of the Dennis P. Sherrerd Revocable Trust, Christine J. Sherrerd, Trustee of the Christine J. Sherrerd Revocable Trust; Samuel L. Schrock and Kerry B. Schrock; Nash-Finch Company (SunMart).

RESOLUTION NO. 2006-100

WHEREAS, City Council authorized the City Manager and City Attorney to acquire seven tracts of property for the construction of Phase I of the 39th Street Improvement Project along 39th Street from 2nd Avenue west to the east lot line of Lot 1, Block 1, Windsor Estates Fifth Addition for additional right-of-way purposes; and

WHEREAS, Chippewa Realty has granted to the City of Kearney a Warranty Deed for the south ten feet of Lot 1, Windsor Estates Ninth Addition, an addition to the City of Kearney, Buffalo County, Nebraska; and

WHEREAS, Goodwill Industries of Greater Nebraska, Inc. has granted to the City of Kearney a Warranty Deed for the south five feet of Lot 2, Windsor Estates Eighth Addition, an addition to the City of Kearney, Buffalo County, Nebraska; and

WHEREAS, KEI Building, LLC has granted to the City of Kearney a Warranty Deed for the south five feet of Lot 3, Windsor Estates Eighth Addition, an addition to the City of Kearney, Buffalo County, Nebraska; and

WHEREAS, The Eating Establishment – Kearney North, Ltd. has granted to the City of Kearney a Warranty Deed for the south ten feet of Lot 1, Block 1, Windsor Estates Fourth Addition, an addition to the City of Kearney, Buffalo County, Nebraska; and

WHEREAS, Dennis P. Sherrerd, Trustee of the Dennis P. Sherrerd Revocable Trust dated March 24, 1999, Christine J. Sherrerd, Trustee of the Christine J. Sherrerd Revocable Trust dated March 24, 1999; Samuel L. Schrock and Kerry B. Schrock have granted to the City of Kearney a Warranty Deed for a tract of land described as being part of Lot 2 and part of the East 2.5 feet of Lot 3, Block 3, Skyline Drive Subdivision, a subdivision in the City of Kearney, Buffalo County, Nebraska, and all being more particularly described as follows: Beginning at the northeast corner of Lot 2, Block 3; thence west on the north line of Lot 2 and Lot 3 a distance of 83.5 feet to a point 2.5 feet west of the northeast corner of Lot 3; thence southerly 4.05 feet parallel with the east line of said Lot 3; thence deflecting left 83°13' a distance of 84.1 feet to a point on the east line of said Lot 2, said point being 14.08 feet south of the northeast corner of said Lot 2; thence northerly 14.08 feet to the point of beginning, Buffalo County, Nebraska; and

WHEREAS, Nash-Finch Company has granted to the City of Kearney a Quitclaim Deed for a tract of land located in the Southeast Quarter of the Southeast Quarter of Section 26, 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 said Section 26; thence northerly on the east line of said Southeast Quarter of Section 26 a distance of 25 feet; thence westerly parallel with the south line of the Southeast Quarter of said Section 26 a distance of 102.58 feet to the ACTUAL PLACE OF BEGINNING; thence with a deflection angle to the right of 151°07' a distance of 49.6 feet; thence left 59°46' a distance of 110.67 feet; thence right 00°17' a distance of 127.57 feet; thence left 172°02'39" a distance of 72.57 feet; thence left 08°30'35" a distance of 135.98 feet; thence right 44°27' a distance of 42.83 to a point 50 feet north of the south line of said Southeast Quarter; thence westerly parallel with the south line of the Southeast Quarter of said Section 26 a distance of 340.44 feet to a point on the east line of Lot 1, Windsor Estates Ninth Addition, an addition to the City of Kearney, Buffalo County, Nebraska; thence southerly on the east line of said Lot 1 a distance of 10.0 feet to the southeast corner of said Lot 1; thence continuing southerly on the afore said east line (if extended) a distance of 15.0 feet to a point 25 feet north of the south line of said Southeast Quarter; thence easterly parallel with the south line of the Southeast Quarter of said Section 26 a distance of 336.32 feet to the place of beginning, Buffalo County, Nebraska.

NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the Deeds be and are hereby accepted and that the City Clerk be instructed to file said Deeds with the Buffalo County Register of Deeds. A copy of the said Deeds, marked as Exhibits “A”, “B”, “C”, “D”, “E”, and “F”, are attached hereto and made a part hereof by reference.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

Moved by Kearney seconded by Clouse that Subsections 1 through 8 and 10 through 13 of Consent Agenda Item IV be approved. Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

1. Approve Minutes of Regular Meeting held May 23, 2006.

2. Approve the following Claims: Ace Irrigation $312.50 smcs; Adams Co Sheriff $1,000.00 smcs; AFLAC $2,207.10 ps; Alltel $3,052.91 smcs; Almquist,R $45.00 smcs; Alpha Video $3,435.00 co; Amazing Arthur $200.00 smcs; Anderson Industrial $21.63 smcs; Arboleda,L $25.00 smcs; Authenticity Consulting $2,000.00 smcs; B&B Auto Glass $75.00 smcs; Baker & Taylor $4,864.67 smcs; Baltzell,K $19.76 smcs; Bamford $658.56 smcs,co; Baye,S $23.34 smcs; BBC Audiobooks $247.34 smcs; Bedrock Marble $350.00 smcs; Big Flag $102.40 smcs; Blessing $29,389.05 smcs; Bluecross Blueshield $22,557.27 smcs; Boersma,C $40.00 smcs; Bosselman $20,446.50 smcs; Boyd's Full Service Vending $42.20 smcs; Brown,K $500.00 smcs; Bruce Furniture $815.15 co; Buffalo Air Service $1,901.46 smcs; Buffalo Co Treasurer $91.50 smcs,co; Buffalo Co Weed District $878.65 smcs; Camera Doctor $205.00 smcs; CDBG Certification $60.00 smcs; Central Hydraulic $876.92 smcs; Central Platte NRD $450.00 co; CHAD $24.00 ps; Charlesworth & Associates $225.00 smcs; Charter $54.99 smcs; Charter Paging $22.46 smcs; City of Ky $182,596.43 smcs,ps; City of Salina $951.66 ps; College Saving Plan of NE $100.00 ps; Conseco Life Ins $29.00 ps; Construction Rental $5,441.80 co; Control Masters $1,437.00 smcs; Cook,R $1,200.00 smcs; Copycat Printing $764.02 smcs; Cottonmill Enterprises $300.00 co; Crossroads Ford $315.71 smcs; Culligan $201.50 smcs; D&D Industries $538.00 smcs; DARE $1,351.42 smcs; Dawson Co Public $13,404.66 smcs; Day,D $1,806.25 smcs; Defense Technology $716.00 smcs; Dell $2,145.52 co; Dent Popper $425.00 co; Depository Trust $641,375.00 ds; Dept of Aeronautics $995.00 ds; Deterding $10,832.93 smcs; Double M Farms $2,000.00 smcs; DPC Industries $5,201.00 smcs; Dutton-Lainson $217.63 smcs; Eakes $1,061.06 smcs; Ecolab $29.00 smcs; EDM Equipment $168.33 smcs; Eirich,T $50.00 smcs; Elliott,J $280.00 smcs; Eustis Body Shop $1,501.12 smcs; Faz,A $7.75 smcs; Fernandez,C $32.59 smcs; Forston & Associates $12,200.00 co; Frontier $8,621.56 smcs; Gallagher,A $15.03 smcs; Galls $93.93 smcs; Gangwish Turf $36.59 smcs,co; Gaylord Brothers $77.91 smcs; Gealy's Greenhouse $4,294.03 smcs; Golden Rule Creations $446.83 smcs; Good Samaritan Hospital $450.00 ps; Great Plains One-Call $525.60 smcs; Gullion,S $108.00 smcs; H&H Distributing $2,833.90 smcs; Highsmith $192.58 smcs; Hill,M $153.08 smcs; Hoehner Turf $555.33 smcs; Holiday $167.42 smcs; Hometown Leasing $248.23 smcs; ICMA RC $5,328.11 ps; IRS $184,767.78 ps; Iteris $3,407.50 co; Jack Lederman $79.98 smcs; James,D $1,050.34 smcs; Johnson,S $50.00 smcs; K&K Parts $18.99 smcs; Ky Area United Way $496.24 ps; Ky Clinic $2,835.00 ps; Ky Concrete $7,389.69 smcs,co; Ky Crete & Block $535.84 smcs,co; Ky Hub $8,263.77 smcs,co; Kelly Electric $270.71 smcs; Kirkham Michael $19,886.19 co; Kleeb,S $50.00 smcs; Kooyman,R $200.00 ps; Kyle,S $35.22 smcs; Land,D $80.00 smcs; Laughlin,K $720.00 ps; Law Enforcement Training $48.00 smcs; LCL Truck Equipment $596.00 smcs; League of NE Municipalities $405.60 smcs; Linweld $25.53 smcs; Logan Contractors Supply $318.43 co; Mac Tools $591.54 smcs; Magic Cleaning $910.00 smcs; Marlatt Machine $8,396.38 smcs,co; Medley,L $297.45 smcs; MES $578.48 smcs; Metlife $4,159.90 ps; Meyers,L $73.00 smcs; Mid America Pay Phones $100.00 smcs; Mid-America Pump $500.14 smcs; Mid-Kan Blueline $62.91 smcs; Midlands Contracting $98,632.00 co; Mid-State Units $120.00 smcs; Midwest Striping $12,590.00 smcs; Midwest Turf $259.45 smcs; Miller & Associates $28,693.50 smcs,co; Minitex $1,365.00 smcs; Mister Anderson's $24.85 smcs; Modern Methods $974.16 smcs; Mosbarger,B $200.00 ps; Moss & Barnett $2,761.79 smcs; Municipal Supply $2,588.92 smcs; Murphy Tractor $5,119.39 smcs; Napa $50.90 smcs; NWWA $12,609.97 smcs; NE APWA $450.00 smcs; NE Child Support $4,588.49 ps; NE Dept of Revenue $57,954.32 smcs,ps; NE Dept of Health $40.00 smcs; NE Dept of Insurance $30.00 smcs; NE Health Lab $5,514.00 smcs; NE Machinery $2,900.00 ds; NEland Distributors $2,158.80 smcs; Newman Traffic Signs $379.52 smcs; Norm's Plumbing $454.98 smcs; Northwest Electric $257.22 smcs; Northwestern Energy $2,909.25 smcs; Numara Software $1,143.75 smcs; Office Depot $730.45 smcs,co; Paramount $65.35 smcs; Paul A. Otto Curb Grinding $135.00 co; Paulsen $179,088.37 co; Payflex Systems $408.00 smcs,ps; Peterson,T $17.00 smcs; Platte Valley Comm $211.86 smcs; Platte Valley Medical Group $216.00 smcs; Pofahl,D $18.00 smcs; Portable Computer System $17,500.00 co; Powerplan $2,435.62 smcs; Presto-X $179.00 smcs; Price's Tree Service $450.00 smcs; QPR $1,217.39 smcs; Quality Books $3,898.27 smcs; Quinn,J $150.00 smcs; Random House $193.20 smcs; RCL Products $200.00 smcs; Ready Mixed Concrete $6,994.63 smcs,co; Recorded Books $846.85 smcs; Roesler,A $75.00 smcs; Root,M $46.00 smcs; Roper's Radiator $305.00 smcs; Sahling Kenworth $1,111.78 smcs; Sapp Brothers $5,376.00 smcs; Schwan's $1,069.90 smcs; See Clear Cleaning $1,900.00 smcs; Solid Waste Agency $63,134.06 smcs; Solid Waste Equipment $18,312.03 smcs; Southeast Library $15.00 smcs; State of NE/Credentialing $51.00 smcs; State of NE/DAS Comm $19.01 smcs; Stigge,D $145.00 smcs; Summit Heating $81.00 smcs; Sun Life Financial $40,743.18 smcs; Sydow,J $40.00 smcs; Tee's Plus $3,490.76 smcs; Theis,G $47.05 smcs; Thompson West $5,011.57 smcs; Thompson,K $8.54 smcs; Thompson,L $90.00 smcs; Thomson Gale $218.33 smcs; Time Center $21.00 smcs; Tincher Ford-Mercury $106,850.00 co; Tom Dinsdale Chevrolet $44,838.50 co; Trans-American $4,200.00 co; Tri-City Outdoor Power $1,057.77 smcs; Tye & Rademacher $8,886.30 smcs; U S Postmaster $648.00 smcs; UAP $125.95 smcs; Union Oil $3,077.74 smcs; Village Uniform $634.88 smcs; Viter,T $50.98 ps; Vulcan $8,726.45 smcs; Wagner Irrigation $9,635.00 co; Walters Electric $102.00 smcs; Warren-T $429.00 smcs; We Care Tree Service $1,005.00 smcs,co; Wells Fargo $16,258.60 ds; Werner Construction $305,798.17 co; Williams,M $185.15 smcs; Winfield Construction $1,099.80 smcs; Xerox $93.85 smcs; Young,M $33.74 smcs; Zimmerman Printing $219.00 smcs; Payroll Ending 5-27-2006 -- $287,206.61. 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. Approve the recommendation from Mayor Hadley on appointing Stan Clouse to serve as the City representative on the Great Platte River Road Memorial Foundation.

4. Approve the Development Agreement between the City of Kearney and Arram Equities, Inc. for Lot 1, Northeast Industrial Third Subdivision and Lot 1, Northeast Industrial Fourth Subdivision and approve Resolution No. 2006-99.

RESOLUTION NO. 2006-99

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the agreement entitled “Development Agreement for Lot 1, Northeast Industrial Third and Lot 1, Northeast Industrial Fourth Subdivision” for be and is hereby accepted and approved. A copy of said Agreement, marked as Exhibit 1 is attached hereto, negotiated by and between the City of Kearney, Nebraska and Arram Equities, Inc., a Nebraska Corporation.

BE IT FURTHER RESOLVED that the President of the Council be and is hereby authorized and directed to execute the same agreement on behalf of the City of Kearney.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

5. Approve the application submitted by Art Pierce to extend Conditional Use Permit No. 1986-04 to locate a calligraphy studio at 2202 Avenue B, Unit 3 for a period of two years.

6. Approve the Agreement between the City of Kearney and Mid-America Experimental Aircraft Association to host the Aviation Extravaganza III at the Kearney Municipal Airport on June 24 and 25, 2006.

7. Approve the Application for a Special Designated License submitted by EXPRESSIONS CATERING, INC., dba “Paradise Cove” in connection with their Class CK58433 liquor license to dispense beer, wine and distilled spirits in the Ag Pavilion located at the Buffalo County Fairgrounds, 3807 Avenue N, on July 1, 2006 from 4:00 p.m. until 1:00 a.m. for a wedding dance and reception subject to the City receiving the required Certificate of Insurance.

8. Approve the recommendation from the Public Works/Transportation Division on awarding the bid to Danielson Equipment Company in the amount of $14,190.10 for the purchase of a “Heavy Duty Truck” exhaust extraction system and in the amount of $11,010.00 for the purchase of an “Automotive” exhaust extraction system to be used in the Vehicle Maintenance Shop.

10. Approve Change Order No. 2 for an increase in the amount of $12,805.35, Application and Certificate for Payment No. 7-Final in the amount of $170,655.09, and the Certificate of Substantial Completion submitted by Paulsen, Inc. and approved by Miller & Associates for the 2004 Part VI Improvements consisting of Paving Improvement District No. 2005-899 for 11th Street from 1st Avenue to 7th Avenue and approve Resolution No. 2006-101.

RESOLUTION NO. 2006-101

WHEREAS, Paulsen, Inc. has performed services in connection with the 2004 Part VI Improvements consisting of Paving Improvement District No. 2005-899 for 11th Street from 1st Avenue to 7th Avenue, and the City's engineer, Miller & Associates, have filed with the City Clerk Change Order No. 2 showing an increase in the amount of $12,805.35 as shown on Exhibit “A”, attached hereto and made a part hereof by reference; and

WHEREAS, the Engineer and Contractor have filed with the City Clerk Application and Certificate for Payment No. 7-Final in the amount of $170,655.09 as shown on Exhibit “B” attached hereto and made a part hereof by reference and as follows:

Original Contract Sum	$1,036,342.20
Change Order No. 1 (9-27-2005)	+ 9,820.00
Change Order No. 2 (6-13-2006)	+ 12,805.35
Contract Sum To Date	1,058,967.55
Gross Amount Due	1,058,967.55
Retainage	.00
Amount Due to Date	1,058,967.55
Less Previous Certificates for Payment	888,312.46
Current Payment Due	$ 170,655.09

WHEREAS, the Engineer and Contractor have now certified to the City Clerk that work is completed as of May 31, 2006, as shown by Exhibit “C” attached hereto and made a part hereof by reference.

NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, and hereby find and determine that Change Order No. 2 as shown on Exhibit “A”, Application and Certificate of Payment No. 7-Final as shown on Exhibit “B”, and the Certificate of Substantial Completion as shown on Exhibit “C” be and are hereby accepted and approved.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

11. Approve the Application for a Special Designated License submitted by the Kearney Event Center in connection with their Class CK66275 catering liquor license to dispense beer, wine and distilled spirits in an enclosed fenced area in front of the arena in the parking lot of the Kearney Event Center, 609 Platte Road, for a temporary beer garden on July 3, 2006 (alternate date is July 4, 2006) from 5:00 p.m. until 1:00 a.m. for the July 4th Celebration.

12. Approve the Application for a Special Designated License submitted by JUAN LAZO, dba “El Tropico” in connection with their Class “IB37623” Liquor License to dispense beer and distilled spirits in the Exhibit Building located at the Buffalo County Fairgrounds, 3807 Avenue N, on July 2, 2006 from 6:00 p.m. until 12:00 a.m. for a Mexican dance.

13. Approve the Agreement between the City of Kearney and Wilkins Hinrichs Stober Architects to provide professional services for the design of the renovation of the Harvey Park Tennis Courts and the Dryden Park Restrooms and approve Resolution No. 2006-102.

RESOLUTION NO. 2006-102

BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the President be and is hereby authorized and directed to execute the Agreement for design services for Dryden Park Restrooms, on behalf of the City of Kearney, with Wilkins Hinrichs Stober Architects, a copy of the Agreement, marked Exhibit “1”, is attached hereto and made a part hereof by reference.

BE IT FURTHER RESOLVED by the President and Council of the City of Kearney, Nebraska, that the President be and is hereby authorized and directed to execute the Agreement for design services for Harvey Park Tennis Courts, on behalf of the City of Kearney, with Wilkins Hinrichs Stober Architects, a copy of the Agreement, marked Exhibit “2”, is attached hereto and made a part hereof by reference.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

V. CONSENT AGENDA ORDINANCES

ORDINANCE NO. 7262 – AMEND SECTION 7-301 “SALES OF LOTS; PURCHASE PRICE”

The foundation and footings are complete and the construction of the Mausoleum is set to begin on June 5, 2006. Charges need to be set so sales can begin when the building is complete. There has been interest by the public in purchasing space and the City would like to have the price set to inform the citizens of the cost. The following are the proposed fees for the mausoleum cremation niches and the mausoleum crypts:

Mausoleum Cremation Niches

Single Niche

Double Niche

850.00

1,200.00

Mausoleum Opening

250.00

Mausoleum Crypts

Level One Single Space

Level One Double Space

Level Two Single Space

Level Two Double Space

Level Three Single Space

Level Three Double Space

Level Four Single Space

Level Four Double Space

2,250.00

4,600.00

3,750.00

6,600.00

3,250.00

6,000.00

2,750.00

5,200.00

Council Member Clouse introduced Ordinance No. 7262, being Subsection 1 of Agenda Item V to amend Section 7-301 “Sales of Lots; Purchase Price” of Article 3 “Cemeteries” of Chapter 7 “Park and Recreation” of the Code of the City of Kearney to establish the fee for mausoleum niches, establish a fee for mausoleum opening, and establish a fee for mausoleum crypts, 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 Lear 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: Hadley, Clouse, Kearney, Buschkoetter, Lear. 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. 7262 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7262 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7262 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. 7263 – ADD SECTION 4-616 “USE OF INDOOR PYROTECHNIC SPECIAL EFFECTS MATERIAL”

Council Member Clouse introduced Ordinance No. 7263, being Subsection 2 of Agenda Item V to add a new section entitled Section 4-616 “Use of Indoor Pyrotechnic Special Effects Material” of Article 6 “Fireworks” of Chapter 4 “Fire Regulations” of the Code of the City of Kearney to prohibit the use of indoor pyrotechnic special effects materials and theatrical flammable material in any building not protected with an approved fire sprinkler system, 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 Lear 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: Hadley, Clouse, Kearney, Buschkoetter, Lear. 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. 7263 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7263 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7263 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. 7264 TO AMEND SECTION 1 OF ORDINANCE NO. 7247

Council Member Clouse introduced Ordinance No. 7264, being Subsection 3 of Agenda Item V to amend Section 1 of Ordinance No. 7247 creating Paving Improvement District No. 2006-908 for 39th Street from Pony Express Road west to the east lot line of Lot 1, Block 1, Windsor Estates Fifth Addition, 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 Lear 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: Hadley, Clouse, Kearney, Buschkoetter, Lear. 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. 7264 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7264 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7264 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.

VI. REGULAR AGENDA

ORDINANCE NO. 7258 – REZONING 570 FEET WEST OF THE INTERSECTION OF SWEETWATER AVENUE AND COAL CHUTE ROAD (PERTAINS TO PUBLIC HEARING 2)

Ordinance No. 7258 rezoning from “District AG, Agricultural District” to “District RR-1, Rural Residential District (Rural Standards)” property described as a tract of land being part of Government Lot 4 located in Section 33, Township 9 North, Range 15 West of the 6th P.M., containing 3.099 acres, more or less, of which 0.227 acres, more or less, are presently being used for road purposes on the south side, all in Buffalo County, Nebraska (570 feet west of the intersection of Sweetwater Avenue and Coal Chute Road) will remain on the table until June 27, 2006. Therefore, no action was taken.

ORDINANCE NO. 7256 – CONDITIONAL USE PERMIT; 1308 WEST 24TH STREET (PERTAINS TO PUBLIC HEARING 4)

Ordinance No. 7256 granting a Conditional Use Permit to Jeffrey Overturf for PABO, LLC (Applicant) and Bob Wilson (Owner) to construct a building for a restaurant with a drive-thru on property zoned “District UC, Mixed Use Urban Corridor District” and described as Lots 1, 2, 3 and 4, of Block 3 and the vacated north half of 23rd Street lying adjacent to said Lots 2 and Lot 3 of Block 3; and the vacated south half of 23rd Street lying immediately north of and abutting on the north line of Lot 1 of Block 10, all in Kearney Land and Investment Company’s Second Addition to the City of Kearney, Buffalo County, Nebraska (1308 West 24th Street) was withdrawn by the applicant. Therefore, no action was taken.

ORDINANCE NO. 7265 REZONE WEST OF THE INTERSECTIONS OF 67TH STREET AND AVENUE N AND 69TH STREET AND AVENUE N (PERTAINS TO PUBLIC HEARINGS 5 AND 6

Council Member Buschkoetter introduced Ordinance No. 7265, being Subsection 3 of Agenda Item VI to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 10.62 acres, more or less, of which 0.87 acres, more or less, are presently being used for road purposes on the east side, all in Buffalo County, Nebraska AND to rezone from “District AG, Agricultural District” to “District R-2, Urban Residential Mixed-Density District” property described as a tract of land being part of the East Half of the Northeast Quarter of Section 24, Township 9 North, Range 16 West of the 6th P.M., containing 6.68 acres, more or less, Buffalo County, Nebraska (west of the intersections of 67th Street and Avenue N and 69th Street and Avenue N), 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: Hadley, Buschkoetter, Lear, 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. 7265 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried. Ordinance was read by number.

Moved by Hadley seconded by Kearney that Ordinance No. 7265 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Lear, 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. 7265 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. 7266 REZONE BETWEEN CENTRAL AVENUE AND AVENUE A, NORTH OF 15TH STREET (PERTAINS TO PUBLIC HEARING 9)

Council Member Kearney introduced Ordinance No. 7266, being Subsection 4 of Agenda Item VI to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as Lots 1452, 1453, 1454, 1455, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (between Central Avenue and Avenue A, north of 15th Street), 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 Clouse 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: Hadley, Clouse, Kearney, Buschkoetter, Lear. 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. 7266 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried. Ordinance was read by number.

Moved by Clouse seconded by Lear that Ordinance No. 7266 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7266 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. 7267 – REZONE AVENUE A, SOUTH OF 21ST STREET (PERTAINS TO PUBLIC HEARING 11)

Council Member Lear introduced Ordinance No. 7267, being Subsection 5 of Agenda Item VI to rezone from “District M-1, Limited Industrial District” to “District CBD, Kearney Center Mixed Use District” property described as all of Lot 539 and the south 20 feet of Lot 540, Original Town of Kearney Junction now the City of Kearney, Buffalo County, Nebraska (Avenue A, south of 21st Street), 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: Hadley, Buschkoetter, Lear, 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. 7267 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried. Ordinance was read by number.

Moved by Buschkoetter seconded by Hadley that Ordinance No. 7267 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Lear, 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. 7267 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. 7268 – VACATE (PERTAINS TO PUBLIC HEARING 12)

Ordinance No. 7268 vacating Lot 1 of Block 4, North Park, an addition to the City of Kearney, Buffalo County, Nebraska (2204 West 50th Street) which pertains to Public Hearing 12 was requested to be tabled until June 27, 2006.

Moved by Hadley seconded by Kearney to table Ordinance No. 7268 until June 27, 2006. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

ORDINANCE NO. 7269 REZONE 145 FEET WEST OF THE INTERSECTION OF 22ND AVENUE AND 50TH STREET (PERTAINS TO PUBLIC HEARING 12)

Ordinance No. 7269 rezoning from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southwest Quarter of the Northeast Quarter of Section 27, Township 9 North, Range 16 West of the 6th P.M., containing 0.656 acres, more or less, Buffalo County, Nebraska (145 feet west of the intersection of 22nd Avenue and 50th Street) which pertains to Public Hearing 12 was requested to be tabled until June 27, 2006.

Moved by Hadley seconded by Kearney to table Ordinance No. 7269 until June 27, 2006. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

ORDINANCE NO. 7270 REZONE SOUTH OF 48TH STREET AND WEST OF 6TH AVENUE (PERTAINS TO PUBLIC HEARING 16)

Council Member Kearney introduced Ordinance No. 7270, being Subsection 8 of Agenda Item VI to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Northeast Quarter of the Southwest Quarter and part of the Southeast Quarter of the Northwest Quarter of Section 26, Township 9 North, Range 16 West of the 6th P.M., containing 35.80 acres, more or less, Buffalo County, Nebraska (south of 48th Street and west of 6th Avenue), 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 Clouse 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: Hadley, Kearney, Buschkoetter, Lear, Clouse. 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. 7270 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried. Ordinance was read by number.

Moved by Clouse seconded by Lear that Ordinance No. 7270 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7270 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. 7271 REZONE NORTH OF 56TH STREET AND WEST OF 4TH AVENUE (PERTAINS TO PUBLIC HEARING 19)

Council Member Lear introduced Ordinance No. 7271, being Subsection 9 of Agenda Item VI to rezone from “District AG, Agricultural District” to “District R-1, Urban Residential Single-Family District (Low Density)” property described as a tract of land being part of the Southeast Quarter of Section 23, Township 9 North, Range 16 West of the 6th P.M., containing 28.17 acres, more or less, Buffalo County, Nebraska (north of 56th Street and west of 4th Avenue), 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: Hadley, Lear, Clouse, Kearney, Buschkoetter. 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. 7271 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried. Ordinance was read by number.

Moved by Buschkoetter seconded by Hadley that Ordinance No. 7271 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7271 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. 7272 – SERIES 2006 GENERAL OBLIGATION VARIOUS PURPOSE BONDS

The City has completed construction, made final payments on, and assessed the improvement costs according to benefits derived on the 2004 Part I Street Improvement Project (30th Avenue), and the 2004 Part VI Street Improvement Project (11th Street). Prior to the construction of these Street Improvement Projects, Series 2004 Bond Anticipation Notes (Notes) and Series 2005 Bond Anticipation Notes (Notes) were approved by the City Council to provide funds to pay engineers and contractors. The Notes provided short term financing for the 2004 Part I Street Improvement Project and the 2004 Part VI Street Improvement Project and mature on July 15, 2006. Therefore, it is necessary to approve the Series 2006 Various Purpose General Obligation Bonds (Bonds) to redeem the Notes maturing on July 15, 2006, and provide long-term financing for these Street Improvement Projects.

The total amount of the outstanding short-term Notes is $4,455,000.00. The total amount of the long-term Bonds will be $3,715,000.00. The difference between the Notes and the Bonds will be funded with special assessment collections, and unspent proceeds of the Notes. The term of the Bonds will be twenty years with an interest rate of 3.50% on the one-year Bonds to 4.35% on the twenty-year Bonds. The annual payments on the Bonds will be approximately $277,000.00 each year for twenty years. The City will be required to budget approximately $277,000.00 annually over the next twenty years in order to make the annual principal and interest payments on the Bonds.

Bruce Lefler from Ameritas Investment Corporation addressed the Council. The series 2006 General Obligation various purpose bonds are to pay for the projects that were initially funded with bond anticipation notes done by the City in 2004 and 2005. The $3,715,000 will be amortized over a period of 20 years at what they think are very attractive interest rates relating to an average of 4.18 percent and including all the cost associated with the issuance bond of 20 year financing of less than 4.5 percent. They did take the opportunity to enhance this issue with bond insurance meaning that these bonds are AAA rated which is the highest rating on a bond. The economics involved in doing this was an expenditure of about $25,000 for the bond insurance premium which turns back to the City around $80,000-$100,000 of lower interest rate cost. It is a very economic benefit. They did have good participation from the local community on the sale of those bonds and the bond anticipation notes and believed they had a very successful sale overall for the City on these issues. The return is a flat yield curve and the long term rates are holding tight and the short term rates are making the funds on hand be worth a bit more than they were in the last two years.

Council Member Hadley introduced Ordinance No. 7272, being Subsection 10 of Agenda Item VI to authorize the issuance of General Obligation Various Purpose bonds of the City of Kearney, Nebraska in the principal amount of Three Million Seven Hundred Fifteen Dollars ($3,715,000) for the purpose of paying the costs of improving streets and intersections in Paving Improvement District Nos. 2004-885 and 2005-899; 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 providing for publication of this ordinance in pamphlet form by authority of the City Council and effective date of this ordinance, 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: Hadley, Kearney, Buschkoetter, Lear, Clouse. 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. 7272 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried. Ordinance was read by number.

Moved by Kearney seconded by Clouse that Ordinance No. 7272 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7272 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. 7273 – SERIES 2006 BOND ANTICIPATION NOTES

On February 14, 2006, the City Council approved the One and Six Year Plan for Kearney Street Improvements. This plan included a project that needs to be financed by the issuance of Series 2006 Bond Anticipation Notes. The Notes will provide short-term financing for the project. After the project is completed, the Notes will be redeemed at maturity with cash received from the issuance of Series 2008 Various Purpose General Obligation Bonds. The Bonds will provide long-term (twenty years) financing for the project. The project includes Paving Improvement District 2006-908 (39th Street from 2nd Avenue to 6th Avenue).

The Series 2006 Bond Anticipation Notes will be dated July 14, 2006 and will mature on July 1, 2008. The interest rate for the Notes is 3.75% and the total principal amount of the Notes will be $1,880,000.00.

As previously mentioned, the City will issue Series 2008 Various Purpose General Obligation Bonds to redeem the Series 2006 Bond Anticipation Notes when the Notes mature on July 1, 2008. It is anticipated that the term of the Bonds will be twenty years. The City will be required to include appropriate funding in its annual budget to pay the principal and interest on the Bonds during the twenty-year life of the Bonds. Funding to pay the principal and interest on the Bonds will come from sales taxes and/or property taxes.

Bruce Lefler from Ameritas Investment Corporation addressed the Council. These notes were done with a 2-year term over which time the City will construct the projects levied with the necessary assessment for those particular projects and collect those funds. They will look to do financing as they are doing on the various purpose bonds before that 2-year period of time. A good indication of the flatness of the yield curve is the interest note is 3.75 percent and the interest rate on the 20-year bonds is 4.5 percent.

Council Member Clouse introduced Ordinance No. 7273, being Subsection 11 of Agenda Item VI to authorize the issuance and sale of Bond Anticipation Notes of the City of Kearney, Nebraska, in the principal amount of One Million Eight Hundred Eighty Thousand Dollars ($1,880,000) for the purpose of providing interim financing for the costs of constructing street improvements in Paving Improvement District No. 2006-908 of said City pending the issuance of permanent General Obligation Various Purpose Bonds of the City; prescribing the form of said notes; agreeing to issue the City’s General Obligation Various Purpose Bonds to pay the notes at maturity or to pay the notes from other available funds; entering into a contract on behalf of the City with the holders of said notes; and providing for publication of this ordinance in pamphlet form by authority of the City Council and effective date of this ordinance, 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 Lear 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: Hadley, Lear, Clouse, Kearney, Buschkoetter. 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. 7273 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7273 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7273 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. 7274 – SERIES 2006 COMBINED UTILITIES REVENUE BONDS

Director of Finance and Administration Wendell Wessels presented this matter to the Council. The City is currently in the process of planning for the construction of an alternate wellfield site northwest of Kearney and a water transmission main between the wellfield site and Kearney. This project is eligible for financing by a Drinking Water State Revolving Fund Loan through the State of Nebraska Department of Environmental Quality. You may recall that Thomas Fuenning, with the Department of Environmental Quality made a presentation on this type of loan to the City Council at the May 9, 2006 City Council meeting. The following loan conditions and terms will apply to the loan:

· The amount of the loan will be for $8,176,025.00

· The term of the loan will be for 20 years.

· The interest rate on the loan will be 3.44% with an additional 1% administrative fee.

· The semi-annual payment on the loan will be $284,400.07 plus 1% of the outstanding balance for the administration fee.

This project has been included in the City’s 2006-2007 Capital Improvement Program. If the financing is approved by the City Council, the project will be included in the 2006-2007 City budget.

Council Member Buschkoetter introduced Ordinance No. 7274, being Subsection 12 of Agenda Item VI to authorize the issuance of Combined Utilities Revenue Bonds of the City of Kearney, Nebraska, in the aggregate principal amount of Eight Million One Hundred Seventy-six Thousand Twenty-five Dollars ($8,176,025) for the purpose of paying the costs of improvements to the City’s waterworks plant and water system; authorizing the issuance of said bonds in the form of a single promissory note to evidence a loan from the Nebraska Department of Environmental Quality; approving related documents with respect to said loan; prescribing the form, terms and details of said bonds; pledging and hypothecating the revenue and earnings of the waterworks plant and water system, sewage disposal plant and sanitary sewer system and electric distribution system of said City for the payment of said bonds and interest thereon; providing for the collection, segregation and application of the revenues of the City’s waterworks plant and water system, sewage disposal plant and sanitary sewer system and electric distribution system; approving execution of related documents; entering into a contract on behalf of the City with the holders of said bonds; and providing for publication of this ordinance in pamphlet form by authority of the City Council and effective date of this ordinance, 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: Hadley, Kearney, Buschkoetter, Lear, Clouse. 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. 7274 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried. Ordinance was read by number.

Moved by Hadley seconded by Kearney that Ordinance No. 7274 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7274 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.

PUMP & PANTRY MANAGER APPLICATION – DONNA LUX

Mayor Hadley opened for discussion the application for Corporate Manager of Donna Lux submitted by Bosselman, Inc., dba “Pump & Pantry #27” in connection with their Class D25700 (Beer, Wine, Distilled Spirits – Off Sale Only) Liquor License located at 4311 2nd Avenue.

An application was received from Pump & Pantry #27 located at 4311 2nd Avenue here in Kearney requesting that Donna R. Lux be named as the manager on the store’s liquor license. A background was conducted. Ms. Lux has an extensive background in operating and working in convenience stores and a solid knowledge of alcohol issues. The current license has no violations and is a suitable location for this type of business. Ms. Lux did have one violation in selling alcohol to a minor in 1997, but no other violations.

The City Council is concerned with the selling of alcohol to minors in our community, and wants to encourage all license holders to provide the necessary training to all employees that sell or dispense alcohol. Therefore, City staff has developed a form entitled “Liquor License Training Compliance” requiring applicants to document and verify training compliance of their employees. Corporate Office in Grand Island has returned the form with supporting documentation.

Donna Lux was present to answer any questions from the Council. Mayor Hadley stated that the application was very straight forward and he could see from their procedures that Bosselman’s takes selling alcohol very seriously.

Moved by Kearney seconded by Clouse to approve the application for Corporate Manager of Donna Lux submitted by Bosselman, Inc., dba “Pump & Pantry #27” in connection with their Class D25700 (Beer, Wine, Distilled Spirits – Off Sale Only) Liquor License located at 4311 2nd Avenue. Roll call resulted as follows: Aye: Hadley, Lear, Clouse, Kearney, Buschkoetter. Nay: None. Motion carried.

ORDINANCE NO. 7275 – NORTHWESTERN ENERGY FRANCHISE AGREEMENT

City Attorney Michael Tye presented this matter to the Council. Effective September 1, 1978 the Mayor and City Council of the City of Kearney granted a non-exclusive franchise agreement to Northwestern Public Service Company authorizing it to continue to erect, construct, operate and maintain all necessary gas mains and other equipment in, under, along and across the streets and public right-of-ways of the City of Kearney in order to provide natural gas services to the city. That franchise was for a period of 25 years, and expired on September 1, 2003. In 2003 the Legislature amended state law which completely restructured the regulation of gas services within the state. The City retained the services of Dahlen Berg consulting firm to assist the City in preparing the proposed terms and conditions of a new Ordinance in order to grant a new franchise right to Northwestern.

The Council passed Resolution No. 2003-142 authorizing the Northwestern Public Service Company to continue to provide gas services to the City of Kearney, subject to all the conditions and regulations set forth in the current franchise agreement, until further action is taken by the Mayor and Council.

NorthWestern Energy has signed a new franchise agreement with the City. The proposed ordinance is granting NorthWestern Corporation, dba NorthWestern Energy the non-exclusive right and privilege to construct, maintain and operate a system in the City of Kearney.

Council Member Clouse introduced Ordinance No. 7275, being Subsection 14 of Agenda Item VI to repeal Ordinance No. 5680 and to grant to Northwestern Corporation, doing business as Northwestern Energy, the non-exclusive right and privilege to construct, maintain and operate a system of mains, pipes, services and other appliances in, upon, over, across and along the streets, avenues, alleys, bridges and public places of the City of Kearney, Nebraska for the transmission, transportation, distribution, and sale of natural gas for domestic, commercial, industrial and other uses in the City, 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 Lear 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: Hadley, Clouse, Kearney, Buschkoetter, Lear. 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. 7275 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Hadley, Clouse, Kearney, Buschkoetter, Lear. Nay: None. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7275 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7275 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.

AMEND PAVING ASSESSMENT POLICY

Mayor Hadley opened for discussion the amending of the current Street Improvement Assessment Policy and to consider approval of Resolution No. 2006-103.

Director of Public Works Rod Wiederspan presented this matter to the Council. Nebraska law allows cities to assess the benefit of public improvements to the benefiting properties through the public improvement district process. On June 8, 2004 the City Council passed Resolution No. 2004-99 establishing the policy for assessment standards for paving districts. Street reconstruction was assessed at a prorated rate based on the roadway classification.

Also in the original policy, single family and duplex development along arterial streets are not assessed for paving improvements. The intent of the policy was to give developers an incentive to develop low density residential along the arterial street system in order to reduce the access points improving safety and traffic flow along our arterial street system. We believe this is still a very important part of the policy but to clarify the RR-1, RR-2, R-1 and R-2 density issues for both the property owner and city staff we have changed the title to now include townhouses. “Residential – Low Density” (single family, duplex & townhouse units only) Special Assessment Deferral Policy this policy will still allow the property owner to apply for a “Residential – Low Density” deferral of the special assessments similar to an “Agricultural” deferral.

With the creation and rejection of a reconstruction district for 11th Street, the City Council instructed staff to amend the key issues of concern in the policy.

Therefore, the Council passed Resolution No. 2005-124 providing that arterial street reconstruction projects will not be assessed back to the abutting property owner but will be funded through the general obligation of the City. Collector streets and local streets will be assessed back 50% of the reconstruction cost with alleys being assessed 75% of the reconstruction cost. Also, it was added that the ability for property zoned “District RR-1, Rural Residential District (Rural Standards)” and/or “District RR-2, Rural Residential (Intermediate Standards)” to take a total deferral if they do not have a curb cut and a partial deferral if they do have a single curb cut onto the arterial street.

Since this time, the City applied and received a Community Development Block Grant from the Nebraska Department of Economic Development for Community Revitalization. The purpose of this funding is to revitalize an entire neighborhood and community – recognizing that the entire neighborhood and community benefit from activities as opposed to single property owners.

The CR plan has a targeted census tract which spans an area east to west from Avenue M to 4th Avenue and north to south from 11th Street to 16th Street. This census tract is located in southeast Kearney. There are four streets in need of paving in the area. Paving all gravel streets in the community is a top priority for the City Council and staff. The area in Kearney with the largest number of gravel streets was one with residents who do not meet the LMI requirement. Therefore, attention to addressing gravel streets with this funding had to be moved to an income eligible area.

The City Council held a Study Session on May 16, 2006 to discuss the paving assessment policy regarding the graveled streets in Kearney. The streets identified in the targeted area for the CDBG will be paid by grant funds. However, the Council discussed amending our current policy to address the remaining graveled streets in southwest Kearney. Attached is Resolution No. 2006-103 amending our current paving assessment policy to address these graveled streets which would be considered street reconstruction. Street reconstruction includes, but is not limited to, upgrading any street from dirt, gravel, crushed rock, asphalt, and/or any other substandard street.

This revised policy will provide a policy for those residential properties that have graveled streets wherein the special assessments would be paid as follows: 50 percent by special sales tax funds and the other 50 percent would be assessed against the property in the district or available grant funds.

Director of Public Works Rod Wiederspan stated that this is a follow up to the Capital Improvement Program (CIP) hearing that was held earlier. One of the goals is to pave all of the gravel streets in Kearney. Those assessments will be covered with 50 percent of the sales tax money and the other 50 percent to be covered by the grant funds for the southeast area in the low to moderate income neighborhood and not assessing those back to the abutting single family homes. They are requesting to amend their paving assessment policy to include anyone who lives on a gravel street in the City of Kearney. Anyone living in a single family residence that abuts a gravel street could request a paving district, which would go through the normal process. When the project is finished, only 50 percent would be assessed back to the property owner and the sales tax would pay the remaining 50 percent.

Council member Kearney asked if we would solicit the property owners on gravel streets in order to get them paved. Director of Public Works stated that they have met with some of the property owners last month and would definitely make them aware of the change in policy. The City does have the option to do gap paving if there is 1,320 feet of gravel road that is connected on both ends by a paved street by State statutes which allows enforcement of gap paving. This is always an option that the Council has, but initially they like to allow the owners to come forward and try to get the streets paved on their own. City Manager stated by looking at the Capital Improvement Plan there is almost $1.8 million budgeted which in a 50 percent program represents a $3.6 million in potential street improvements over the next seven years.

Moved by Buschkoetter seconded by Hadley to approve repealing Resolution No. 2005-124 and approve Resolution No. 2006-103 setting forth the Street Improvement Assessment Policy. Roll call resulted as follows: Aye: Hadley, Buschkoetter, Lear, Clouse, Kearney. Nay: None. Motion carried.

RESOLUTION NO. 2006-103

WHEREAS, the City of Kearney is authorized by State statute to assess the benefit of public paving improvements to the benefited properties; and

WHEREAS, the Council of the City of Kearney desires to establish a policy for assessment standards, based on construction type, land use type, and street type; and

WHEREAS, the Council desires that such a policy provide equity and consistency in the assessment of improvement benefits; and

WHEREAS, the paving portion considered for assessment is represented by all labor, materials, and equipment required to pave a 36’ wide, 6” thick concrete street. Paving width/thickness oversizing and intersections are not subject to assessment; and

WHEREAS, “street reconstruction” includes, but is not limited to, upgrading any street from dirt, gravel, crushed rock, asphalt, and/or any other substandard street.

NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the City of Kearney street improvement assessment policy is as follows:

Paving Assessment Percentages – These percentages reflect the assessment applied to the property and are a proportionate amount of the cost of the improvements that benefit the properties.


New Street Construction
Land Use	Arterial	Collector	Local	Alleys
Residential – Low Density	100%	100%	100%	100%
Residential – High Density	100%	100%	100%	100%
Commercial	100%	100%	100%	100%
Industrial	100%	100%	100%	100%

Street Reconstruction
Land Use	Arterial	Collector	Local	Alleys
Residential – Low Density	0%	50%	50%	75%
Residential – High Density	0%	50%	50%	75%
Commercial	0%	50%	75%	75%
Industrial	0%	50%	75%	75%

“Residential – Low Density” (single family, duplex & townhouse units only) Special Assessment Deferral Policy - Whenever the City of Kearney creates a paving improvement district on or after August 9, 2005 for an arterial street, which includes property zoned RR-1, RR-2, R-1 or R-2, the owners of record title of such adjacent property may apply for a “Residential – Low Density” deferral from paving special assessments. The “Residential – Low Density” special assessment deferral shall apply only to property zoned RR-1, RR-2, R-1 or R-2 which is intended to be developed into single family, duplex or townhouse units only. Any owner of record title eligible for the “Residential – Low Density” deferral shall make application to the City of Kearney no later than thirty days prior to the date that the City Council sets as a Board of Equalization to assess the costs of the paving improvement district. No “Residential – Low Density” deferrals shall be granted by the City of Kearney to owners of record title of such adjacent property if said property has access to the arterial street via a private curb cut.

The “Residential – Low Density” deferral shall be terminated upon any of the following events: (1) written notification to the City of Kearney by the owner of record title to remove such deferral; (2) the property is developed but no longer used as “Residential – Low Density”; (3) change of rezoning to a higher use other than RR-1, RR-2, R-1 or R-2; (4) the owner of record title request, and is granted by the City of Kearney, a “curb cut” to the arterial street.

Whenever property which has received a “Residential – Low Density” deferral becomes disqualified for such deferral, the owner of record title of such property shall pay to the City of Kearney an amount equal to the total amount of special assessments which were deferred against the property. Interest upon the special assessments shall be deferred, and shall accrue from the time that the City of Kearney determines that the property becomes disqualified for deferral. The interest rate shall be the same as was charged to other property owners within the special assessment district in question, and shall be amortized over the term to coincide with the original amortization that was allowed to other property owners within the special assessment district in question.

BE IT FURTHER RESOLVED that whenever the City of Kearney creates a paving improvement district on or after August 9, 2005 which includes property zoned “District RR-1, Rural Residential District (Rural Standards)” and/or “District RR-2, Rural Residential District (Intermediate Standards)” the owners of record title of such adjacent property shall be assessed a front footage amount not to exceed 250 feet if said property has access to the arterial street via a private curb cut; the remainder of the property being considered agricultural, the owners of the land included in the said district may be entitled to an agricultural deferral of the remaining assessments. Owners of record title shall make application to the City of Kearney no later than thirty days prior to the date that the City Council sets as a Board of Equalization to assess the costs of the paving improvement district. The deferral of the special assessments shall continue unless terminated upon any of the following events: (1) notification by the owner of record title to the city council to remove such deferral; (2) sale or transfer to a new owner who does not make a new application within sixty days of the sale or transfer; (3) transfer by reason of death of a former owner to a new owner who does not make application within 125 days of the transfer; (4) the land is no longer being used as agricultural land and is being developed; or (5) the owner of record title request, and is granted by the City of Kearney, a “curb cut” to the arterial street

BE IT FURTHER RESOLVED that Resolution No. 2005-124 passed and approved on August 9, 2005, and all other resolutions or parts of resolutions in conflict herewith be and are hereby repealed.

PASSED AND APPROVED THIS 13TH DAY OF JUNE, 2006.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

OPEN ACCOUNT CLAIMS: NEBRASKA PUBLIC POWER DISTRICT - $51,686.48; FREMONT NATIONAL BANK - $78,078.71; SCHOOL DISTRICT #7 - $3,391.24; STAN CLOUSE - $43.65

Moved by Hadley seconded by Kearney that Open Account Claims in the amount of $51,686.48 payable to Nebraska Public Power District, in the amount of $78,078.71 payable to Fremont National Bank, and in the amount of $43.65 payable to Stan Clouse be allowed. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter. Nay: None. Clouse and Lear abstained. Motion carried.

Moved by Kearney seconded by Clouse that Open Account Claims in the amount of $3,391.24 payable to School District #7 be allowed. Roll call resulted as follows: Aye: Hadley, Clouse, Kearney, Lear. Nay: None. Buschkoetter abstained. Motion carried.

VII. REPORTS

UPDATE ON 39TH STREET CONSTRUCTION PROJECT

City Manager Michael Morgan thanked Mike Konz for an excellent article in the Kearney Hub following up on their press release on the construction projects. Each Monday or Tuesday they will issue a formal press release with an update on all the large capital projects that are going on, which is a new technique they are trying to keep the public informed. He expressed his appreciation for Blessing and his crew for an amazing job on getting a lot done on the 39th Street project. Getting this project done in a timely manner is minimizing the impact on many of the businesses along 39th Street. It looks like they will be pouring concrete this week.

COUNCIL CHAMBERS UPDATE

City Manager Michael Morgan stated the Council Chambers technology is changing and there will be even more changes at the next Council meeting. Charter Communication has been very helpful in assessing our needs and getting some things done.

OPENINGS ON BOARDS/COMMISSIONS

City Manager Michael Morgan reminded everyone that there are some advertisements out asking people to sign up for the various boards and commissions. Anyone can apply by contacting the City Clerk’s office or checking the listing for vacancies in the paper.

UPCOMING BUDGET SESSION

City Manager Michael Morgan stated that the budget workshop on July 6th is tentatively scheduled for 7:00 a.m. in the City Manager’s Conference Room at City Hall. He also thanked the City Clerk for compiling this long agenda because a tremendous amount of preparation has gone into it.

UPDATE ON DOWNTOWN IMPROVEMENT BOARD

Assistant to City Manager Amber Brown reported on the activities of the Downtown Improvement Board. They have recently restructured the Downtown Association. Previously they had a staff person who worked primarily on advertising and promotion of the downtown area. That position has been restructured and Suzanne Brodine, Downtown Coordinator, is now housed at City Hall. In this way, they can work closely on all of the downtown projects and coordinate them better.

The Board was also successful in securing grant funding from the CRA for a facade project which will be advertised on Friday. This will offer $30,000.00 to property owners or tenants to revive the historic architecture of their building or to reduce the signage on the building. The intent of this project is to revitalize the downtown area and restore it to its original look.

The Board is also going to approve an outside sidewalk permit system to allow merchants to have the sandwich boards and tables in front of their shops to create a more inviting atmosphere for customers to come into their place of business. They continue to look for ways to enhance the downtown through lighting, working on the entrances, and signage.

They are also working on the three summer events; sidewalk sales, Cruise Nite and Destination Downtown with UNK.

Council member Clouse commented on the number of projects discussed during this meeting. Obviously, the staff has worked hard with the developers on the behind the scenes stuff. He congratulated and thanked them for bringing these items to Council with things worked out for these great projects.

Council member Buschkoetter stated that if you total up the long term impacts of those two projects on 56th Street that were approved tonight, 120 different housing units will be added over the next few years which is incredible. He was privileged to be able to represent the City and speak at the grand opening of the two homes that were blitz built by the Kearney Area Habitat for Humanity and the West Central Nebraska Home Builders Association.

VIII. ADJOURN

Moved by Clouse seconded by Kearney that Council adjourn at 9:16 p.m. Roll call resulted as follows: Aye: Hadley, Kearney, Buschkoetter, Lear, Clouse. Nay: None. Motion carried.

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY

CITY CLERK

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

New Street Construction

ATTEST: GALEN D. HADLEY

PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY

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