KEARNEY CITY COUNCIL

AGENDA City Council Chambers, 18 East 22nd Street December 23, 2014 5:30 p.m.

I ROUTINE BUSINESS

1. Invocation/Moment of Silence.

2. Pledge of Allegiance.

3. Announcement on Open Meetings Act.

4. Roll call.

5. Oral Communication - Recognition of visitors.

II UNFINISHED BUSINESS

None.

III PUBLIC HEARINGS

1. Conduct a public hearing on the proposed acquisition for a Dedicated Utility Easement for a water line on property described as part of the north 240 feet of Lot 3, Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska and consider Resolution No. 2014-245.

2. Conduct a public hearing on the proposed acquisition for a Dedicated Utility Easement for a sanitary sewer line on property described as the north 240 feet of Lots 2, 3 and 4, Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska and consider Resolution No. 2014-246.

IV CONSENT AGENDA *

1. Approve Minutes of Regular Meeting held December 9, 2014.

2. Approve the Claims.

3. Receive recommendations of Planning Commission and set January 13, 2015 at 5:30 p.m. as date and time for hearing on those applications where applicable.

4. Adopt Resolution No. 2014-247 setting the interest rate, providing equal annual installments, providing the interest rate for delinquent installments for special assessments for 2015 with regard to the creation of paving, water and sanitary sewer districts; and to establish a policy on reimbursing developers for infrastructure costs for Developer Constructed Infrastructure Agreements. December 23, 2014 Page 2

5. Adopt Resolution No. 2014-248 amending the Money Accumulation Plan for Employees of the City of Kearney and authorize the Mayor and other appropriate officers of the City of Kearney to execute any document or amendment necessary to amend and administer the Plan.

6. Adopt Resolution No. 2014-249 approving the following Agricultural Leases at the Kearney Regional Airport from January 1, 2015 until December 31, 2015: David Fleming (364.36 non- irrigated acres and 276 irrigated acres); Gary Henderson (38 irrigated acres); Don Hendrickson (193.5 irrigated acres); Ron Hendrickson (75 dry land hay acres); and Lee Potter (62 irrigated acres).

7. Accept the bids received for the purchase of a hook lift truck used in the Utilities Department and award the bid to Nebraska Truck Center in the amount of $158,098.00.

8. Adopt Resolution No. 2014-250 approving Application and Certificate for Payment No. 6 in the amount of $92,861.32 submitted by Blessing, LLC and approved by Miller & Associates for the 2014 Part 2 Improvements consisting of Paving Improvement District No. 2014-964 for Central Avenue from 31st Street to a point 150 feet south of 26th Street and 26th Street from Central Avenue to Avenue C.

9. Adopt Resolution No. 2014-251 approving Application and Certificate for Payment No. 2 in the amount of $471,609.63 submitted by Midlands Contracting and approved by Miller & Associates for the 2014 Part 7 Improvements consisting of Paving Improvement District No. 2014-968 for 4th Street from 3rd Avenue to 6th Avenue and Sanitary Sewer Connection District No. 2014-1 commencing at a point near the Kearney RV Park located at 315 Avenue M, northward and westward in an easement, Landon Street if extended, thence northward through Riverside Addition and Kreutz Addition to 4th Street, thence westward to Central Avenue.

10. Adopt Resolution No. 2014-252 approving Application and Certificate for Payment No. 1 in the amount of $213,019.20 submitted by Midlands Contracting and approved by Miller & Associates for the 2014 Part 8 Improvements consisting of Water District No. 2014-574 and Sanitary Sewer District No. 2014-512 in 27th Avenue from 11th Street south 850 feet; and Water District No. 2014-575 and Sanitary Sewer District No. 2014-513 in 30th Avenue from 11th Street south 1,500 feet.

11. Approve the application for a Special Designated License submitted by Thunderhead Brewing in connection with their Class LK-047920 catering liquor license to dispense beer at Eustis Body Shop located at 720 Central Avenue on January 15, 2015 from 3:00 p.m. until 10:00 p.m. for a reception.

* Any item listed on the Consent Agenda may, by the request of any Council member, be considered as a separate item under the Regular Agenda Section of the Agenda.

V CONSENT AGENDA ORDINANCES *

1. Approve Ordinance No. 7954 amending Article 15 “Purchasing” of Chapter 1 “Administration” of the City Code as follows: Section 1-1503 “Office of Purchasing Agent; Appointment of Agent”, Section 1-1506 “Informal Purchasing”, Section 1-1507 “Professional Services”, Section 1-1510 Miscellaneous Expenditures”, and Section 1-1512 “Requisitions and Estimates” to clarify the language; Section 1-1505 “Formal Contract Procedure” to authorize the Purchasing Agent or his/her designee, to join with other units of government in December 23, 2014 Page 3

cooperative purchasing of supplies, equipment of services when the best interests of the City would be served.

2. Approve Ordinance No. 7955 creating Paving Improvement District No. 2014-969 for 11th Street from a point 109.74 feet west of 30th Avenue, thence east for a distance of 2,440.08 feet.

3. Approve Ordinance No. 7956 creating Paving Improvement District No. 2014-970 for 27th Avenue from 11th Street south a distance of 850± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska.

4. Approve Ordinance No. 7957 creating Paving Improvement District No. 2014-971 for 30th Avenue from 11th Street south a distance of 1,500± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska.

VI REGULAR AGENDA

1. Consider the manager application for Patrick Cabela submitted by Jersey’s Sports Bar & Grill, Inc. dba Jersey’s Sports Bar in connection with their Class I-070888 liquor license and located at 5012 3rd Avenue, Suite 120.

2. Consider the manager application for Misty McDaniel submitted by The Cigarette Store Corp., dba Smoker Friendly #017/SF Liquors in connection with their Class C-102050 liquor license and located at 620 East 25th Street, Suite F.

3. Open Account Claim to NPPD - $86,658.74.

VII REPORTS

VIII ADJOURN

Mayor Stanley Clouse Vice-President Randy Buschkoetter Council Member Bruce Lear 4907 Linden Drive Place 1110 13th Avenue 4803 Avenue L Place 627-6730 cell 234-5553 home 234-5354 home 238-5210 office 440-0358 cell 237-2724 office [email protected] [email protected] [email protected]

Council Member Bob Lammers Council Member Jonathan Nikkila City Manager Michael Morgan 8 Crestview Place 4 Regency Place 18 East 22nd Street 236-5273 home 224-4309 cell 233-3214 office 234-2577 office [email protected] [email protected] [email protected]

A current agenda is on file at the Office of the City Clerk at City Hall, 18 East 22nd Street, Kearney, Nebraska. For more information, call 233-3216 or visit our website at www.cityofkearney.org

COUNCIL AGENDA MEMO

ITEM NO. III - #1 & 2

FROM: Kirk Stocker, Director of Utilities

MEETING: December 23, 2014

SUBJECT: Acquisition of Permanent Water and Sanitary Sewer Easement

PRESENTER: Kirk Stocker

Discussion:

At the July 22, 2014 City Council meeting the Council approved a Developer Constructed Infrastructure Agreement for Logan View Apartments at 1818 West 24th Street.

The agreement required the owner to construct water and sanitary sewer mains meeting City specifications on the property to serve several residential duplex dwelling units that owner intended to build on the site. The agreement also required the developer to grant the City a permanent water and sanitary sewer easement over the water and sanitary sewer mains that were constructed.

The owner has completed the construction of the water and sanitary sewer mains. The owner has prepared easement documents which grant the City a Permanent Water and Sanitary Sewer Easement for the water and sanitary sewer mains located on the property.

Nebraska Revised Statute 18-1775 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. Therefore, before the City can accept the easements the Council must conduct a public hearing on the matter.

Fiscal Note:

There is no adverse financial impact to the City regarding the acquisition of the Permanent Water and Sanitary Sewer Easement.

Recommended Action:

Staff recommends approving the resolution authorizing the acquisition of the Permanent Water and Sanitary Sewer Easement, authorizing the Mayor to sign the easements on behalf of the City and authorizing Administration to file the easements at the Buffalo County Register of Deeds.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-245

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 a water line and voted in favor to proceed with the acquisition; and WHEREAS, Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee, have signed a Dedication of Utility Easement for a water line on property described as a tract of land being part of the north 240 feet of Lot 3, of Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska dedicated for Water Easement purposes. Said Water Easement to be 5 feet on each side of the following described centerline: Referring to the Northwest corner of the North 240 feet of Lot 4, of Lincoln Way Villa Plots and assuming the North line of said 4, and the South line of State Highway 30 as bearing N89°31’01” E and all bearings contained herein are relative thereto; thence N89°31’01” E on said North line of Lots 3 and 4 a distance of 174.42 feet to the ACTUAL POINT OF BEGINNING; thence S00°14’20” E a distance of 100.03 feet; thence S89°42’14” W a distance of 60.55 feet to the Point of Termination. Said 10 foot Water Easement contains 0.04 acres, more or less, Buffalo County, Nebraska. NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Dedication of Utility Easement signed by Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee, with the City of Kearney be and is hereby approved and accepted. BE IT FURTHER RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, that the Mayor be and is hereby authorized and directed to execute, on behalf of the City of Kearney, the Dedication of Utility Easement between the City of Kearney and Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee. The said Easement, marked Exhibit “A”, is attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

Exhibit "A"

The North 240 Feet of Lots 2, 3 and 4, Lincoln Way Villa Plots, an addition to the City of Kearney, Buffalo County, Nebraska.

Exhibit "B"

10.0’ WIDE WATER EASEMENT

A tract of land being part of the North 240 feet of Lot 3, of Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska dedicated for Water Easement purposes. Said Water Easement to be 5 feet on each side of the following described centerline: Referring to the Northwest corner of the North 240 feet of Lot 4, of Lincoln Way Villa Plots and assuming the North line of said 4, and the South line of State Highway 30 as bearing N 89°31'01" E and all bearings contained herein are relative thereto; thence N 89°31'01" E on said North line of Lots 3 and 4 a distance of 174.42 feet to the ACTUAL POINT OF BEGINNING; thence S 00°14'20" E a distance of 100.03 feet; thence S 89°42'14" W a distance of 60.55 feet to the Point of Termination. Said 10.00 foot Water Easement contains 0.04 acres, more or less.

RESOLUTION NO. 2014-246

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 a sanitary sewer line and voted in favor to proceed with the acquisition; and WHEREAS, Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee, has signed a Dedication of Utility Easement for a sanitary sewer line on property described as a tract of land being part of the North 240 feet of Lots 2, 3, and 4, of Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska dedicated for Sanitary Sewer Easement purposes. Said Sanitary Sewer Easement to be 10.00 feet in total width and more described as follows: Referring to the Southwest corner of North 240 feet of Lots 2, 3, and 4, of Lincoln Way Villa Plots and assuming the West line of said Lot 4 as bearing N 00"29'14" Wand all bearings contained herein are relative thereto; thence N 00"29'14" Won said West line of Lot 4 a distance of 6.23 feet to the ACTUAL POINT OF BEGINNING; thence N 00"29'14" W a distance of 10.01 feet; thence N 86"52'27" E a distance of 59.07 feet; thence N 00"29'22" W a distance of 96.03 feet; thence S 89"31'39" W a distance of 47.47 feet; thence N 00"28'21" W a distance of 10.00 feet; thence N 89"31'39" E a distance of 88.50 feet; thence S 00"28'21" E a distance of 10.00 feet; thence S 89"31'39" W a distance of 31.03 feet; thence S00"29'22" E a distance of 95.57 feet; thence N 86"52'27" E a distance of 88.59 feet; thence S 89"59'03" E a distance of 73.51feet; thence N 00"28'21" W a distance of 92.09 feet; thence S 89"31'39" W a distance of 31.00 feet; thence N 00"28'21" W a distance of 10.00 feet; thence N 89"31'39" E a distance of 88.50 feet; thence S 00"28'21" E a distance of 10.00 feet; thence S 89"31'39" W a distance of 47.50 feet; thence S 00"28'21" E a distance of 92.18 feet; thence S 89"59'03" E a distance of 59.18 feet to the East line of said Lot 2; thence S 00"31'37" E a distance of 10.00 feet on said East line of Lot 2; thence N89"59'03" W a distance of 142.52 feet; thence S 86"52'27" W a distance of 157.85 feet to the Point of Beginning. Said 10.00 foot Sanitary Sewer Easement contains 0.15 acres, more or less, Buffalo County, Nebraska. NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska that the Dedication of Utility Easement signed by Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee, with the City of Kearney be and is hereby Resolution No. 2014-246 Page 2

approved and accepted. BE IT FURTHER RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, that the Mayor be and is hereby authorized and directed to execute, on behalf of the City of Kearney, the Dedication of Utility Easement between the City of Kearney and Dan J. Wurtz, Trustee and Jean E. Wurtz, Trustee. The said Easement, marked Exhibit “A”, is attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

Exhibit "A"

The North 240 Feet of Lots, 2, 3, and 4 Lincoln Way Villa Plots, an Addition to the City of Kearney, Buffalo County, Nebraska

Exhibit "B"

10.00' WIDE SANITARY SEWER EASEMENT

A tract of land being part of the North Two hundred forty feet (240') of Lots 2, 3, and 4, of Lincoln Way Villa Plots, a subdivision of the City of Kearney, Buffalo County, Nebraska dedicated for Sanitary Sewer Easement purposes. Said Sanitary Sewer Easement to be 10.00 feet in total width and more described as follows: Referring to the Southwest corner of North 240 feet of Lots 2, 3, and 4, of Lincoln Way Villa Plots and assuming the West line of said Lot 4 as bearing N 00°29'14" W and all bearings contained herein are relative thereto; thence N 00°29'14" W on said West line of Lot 4 a distance of 6.23 feet to the ACTUAL POINT OF BEGINNING; thence N 00°29'14" W a distance of 10.01 feet; thence N 86°52'27" E a distance of 59.07 feet; thence N 00°29'22" W a distance of 96.03 feet; thence S 89°31'39" W a distance of 47.47 feet; thence N 00°28'21" W a distance of 10.00 feet; thence N 89°31'39" E a distance of 88.50 feet; thence S 00°28'21" E a distance of 10.00 feet; thence S 89°31'39" W a distance of 31.03 feet; thence S 00°29'22" E a distance of 95.57 feet; thence N 86°52'27" E a distance of 88.59 feet; thence S 89°59'03" E a distance of 73.51 feet; thence N 00°28'21" W a distance of 92.09 feet; thence S 89°31'39" W a distance of 31.00 feet; thence N 00°28'21" W a distance of 10.00 feet; thence N 89°31'39" E a distance of 88.50 feet; thence S 00°28'21" E a distance of 10.00 feet; thence S 89°31'39" W a distance of 47.50 feet; thence S 00°28'21" E a distance of 92.18 feet; thence S 89°59'03" E a distance of 59.18 feet to the East line of said Lot 2; thence S 00°31'37" E a distance of 10.00 feet on said East line of Lot 2; thence N 89°59'03" W a distance of 142.52 feet; thence S 86°52'27" W a distance of 157.85 feet to the Point of Beginning. Said 10.00 foot Sanitary Sewer Easement contains 0.15 acres, more or less.

Kearney, Nebraska December 9, 2014 5:30 p.m.

A meeting of the City Council of Kearney, Nebraska, was convened in open and public session at 5:30 p.m. on December 9, 2014, in the Council Chambers at City Hall. Present were: Stanley A. Clouse, President of the Council; Michaelle Trembly, City Clerk; Council Members Randy Buschkoetter, Bruce Lear, Bob Lammers and Jonathan Nikkila. Absent: None. Michael Morgan, City Manager; Michael Tye, City Attorney; Wendell Wessels, Director of Finance; Suzanne Brodine, Assistant City Manager/ Development Services Director; Kirk Stocker, Director of Utilities; Rod Wiederspan, Director of Public Works; Dan Lynch, Chief of Police; and Shawna Erbsen, Administrative Services Director were also present. Some of the citizens present in the audience included: Terry Eirich, Kelly Hardin, Jim Tacha, Jim Brooker, Tony Rich, John Sydow, Brian Wolfe, Sonny O’Connor, Dan Thompson, Matt Ullman, John Keeney, Alex Brush, Robert Cinatl, Cory Flaig, Jarrett Johnston, Jon Schroeder, Julie Spiers, Jerry Thompson, Barb Thompson, Gisel Theis, Jason Whalen, Bill Blake, Mitch Humphrey, Jeff Overturf, Craig Bennett, Shelley Dennis, Tehya Dennis, Joshua Rock, Adriane Juel, 5 UNK students, several volunteer firefighters, Steve Altmaier from KGFW Radio, Ashley White from Kearney Hub.

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

I. ROUTINE BUSINESS

INVOCATION/MOMENT OF SILENCE

With the absence of a minister, the Council held a moment of silence.

PLEDGE OF ALLEGIANCE

A Boy Scout from Troop 158 led the Council members and audience in the Pledge of Allegiance.

ANNOUNCEMENT

Mayor Clouse announced that in accordance with Section 84-1412 of the Nebraska Revised Statutes, a current copy of the Open Meetings Act is available for review and is posted on the wall of the Council Chambers.

December 9, 2014 Page 2

APPROVE MINUTES

Moved by Lammers seconded by Nikkila that the Minutes of Regular Council Meeting of November 25, 2014, and Minutes of the Kearney Area Solid Waste Agency Meeting of September 9, 2014 be approved. Roll call resulted as follows: Aye: Clouse, Lear, Nikkila, Lammers, Buschkoetter. Nay: None. Motion carried.

ADMINISTER THE OATH OF OFFICE

City Clerk administered the Oath of Office to Council Members Randy Buschkoetter and Bob Lammers.

NOMINATION FOR PRESIDENT/MAYOR

City Clerk stated that nominations would be received for President of the Council and Ex-Officio Mayor who will also serve as President of the Kearney Area Solid Waste Agency. Council Member Buschkoetter nominated Stanley Clouse for this position. Hearing no other nominations, nominations were closed. Stanley Clouse is nominated President of the Council and Ex-Officio Mayor who will also serve as President of the Kearney Area Solid Waste Agency. Roll call for those in favor of Stanley Clouse for President of the Council: Nikkila, Lammers, Buschkoetter, Lear, Clouse. City Clerk stated the ayes have it and Stanley Clouse is elected President of the Council and Ex- Officio Mayor who will also serve as President of the Kearney Area Solid Waste Agency.

NOMINATION FOR VICE-PRESIDENT

Mayor Clouse stated that nominations would be received for Vice-President of the Council. Mayor Clouse nominated Randy Buschkoetter for this position. Hearing no other nominations, nominations were closed. Randy Buschkoetter is nominated Vice- President of the Council. Roll call for those in favor of Randy Buschkoetter for Vice- President of the Council: Clouse, Lear, Nikkila, Lammers, Buschkoetter. Mayor Clouse stated the ayes have it and Randy Buschkoetter is elected Vice-President of the Council.

REAPPOINTMENT OF MICHAELLE TREMBLY AS CITY CLERK

Moved by Nikkila seconded by Lammers to reappoint Michaelle Trembly as City Clerk. Roll call resulted as follows: Aye: Clouse, Nikkila, Lammers, Buschkoetter, Lear. Nay: None. Motion carried.

RECOGNITION – KEARNEY VOLUNTEER FIRE DEPARTMENT SERVICE AWARDS

Mayor Clouse and Council Members recognized the following volunteer firefighters: Kelly Hardin, 30 years; Jim Brooker, 25 years; Tony Rich, 20 years; John Sydow, 20 years; Brian Wolfe, 20 years; Sonny O’Connor, 10 years; Dan Thompson, 10 years; Matt Ullman, 10 years; John Keeney, 5 years and Mark Panowicz, 5 years. Fire Chief Terry Eirich presented each with Service Awards.

December 9, 2014 Page 3

RECOGNITION – KEARNEY VOLUNTEER FIRE DEPARTMENT FIREFIGHTER COURSE I

Mayor Clouse and Council Members recognized the following volunteer firefighters for completing the Firefighter I Course: Alex Brush, Robert Cinatl, Cory Flaig, Jarrett Johnston, Shaun Mewes, Jon Schroeder and Honorary Kim “Pyro Chic” Schmidt. Fire Chief Terry Eirich presented each with a plaque.

In the absence of Kim Schmidt, Julie Spiers read the following letter from Kim into the record: Mayor Clouse and fellow council members: Please accept my sincerest apology for my absence from tonight’s presentation. I want to thank fire chief Terry Eirich, officers and firefighters for their acknowledgment, support and cooperation with the Pro Chick project. The training and experience was nothing like I ever imagined. Firefighters treated me with respect, encouragement, grace and dignity. I have never met a group of people more dedicated and passionate than those on the Kearney Volunteer Fire Department. They give a remarkable amount of time to protect the community and keep it, and each other, safe. And they do it with immense pride. You truly have remarkable people protecting the city, and a volunteer fire department you should be deeply proud of. Thank you. Kim Schmidt The Pyro Chic

II. UNFINISHED BUSINESS

There was no Unfinished Business.

Mayor Clouse stated he has a prior commitment and Vice-President Buschkoetter will preside over the remainder of the meeting (5:48p.m.).

III. PUBLIC HEARINGS

REZONING 501, 503, 507 AND 511 EAST 26TH STREET

Public Hearings 1 and 2 were discussed together but voted on separately.

Vice-President Buschkoetter opened the public hearing on the Application submitted by Essam Arram for Arram Equities, Inc. to rezone from District C-3, General Commercial District to District C-3/PD, General Commercial/Planned Development Overlay District property described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north (501, 503, 507 and 511 East 26th Street) and consider Ordinance No. 7946. Planning Commission recommended approval subject to approval of the requested deviation in a PD Overlay for a reduced setback along the east side and revising the tree size for columnar oaks to a minimum of 2-inch caliper. December 9, 2014 Page 4

The applicant is requesting approval of rezoning and development plans for a multi- family development on commercially zoned property. The developer is proposing two buildings with eight 1-bedroom apartments in each building for a total of 16 units to be used for elderly housing. The proposed site area is 267 feet by 160 feet for a total of 42,720 square feet of area. City Code requires 3,000 square feet of site area per housing unit in conventional multi-family development which would allow a maximum of 14 units on this parcel. Only 2,500 square feet of site area per housing unit is required in PD overlay for planned developments which would allow up to 17 units.

The property is currently zoned C-3 with the westerly lot the location of an existing ATM and an access lane for the ATM. The developer has included the 33.6 foot by 160 foot ATM parcel in the overall density calculations since this additional property is necessary to combine sufficient lot area to meet the 16-unit density that is desired by the developer. The housing project will not compromise the ATM location. The property must also be rezoned to C-3/PD to allow the higher density to achieve 16 units.

A 25-foot setback is required on the east side of the property and the site plans shows a 12-foot setback. The developer is requesting a deviation regarding the east setback under PD, Planned Development Overlay District consideration. The site plan shows an existing access lane for the East Town Mall along the south property line. There is ample room on the site to establish the building footprint and other required setbacks. A green area in excess of 50 feet will remain open along Avenue E to compensate for the reduced setback on the east side.

City code requires 1.5 parking spaces for efficiency and one-bed apartment units. A total of 24 parking spaces are required and 24 are proposed.

A Landscape Plan has been submitted. Street trees are proposed along the public street frontages. One large existing tree is to be saved on site. All plant material as shown on the plans meet minimum size requirements for commercial landscape standards except the columnar oaks. These trees are labeled as 1½-inch caliper but they need to be at least two-inch caliper. All landscaped areas will be irrigated by automatic underground sprinkler system.

Stormwater will surface flow across the lots and into the streets. On-site detention is not feasible at this location.

City water and sanitary sewer is available in 26th Street. A separate water and sanitary sewer service will be required for each building. The water use during winter months, January, February and March, is averaged to set the sanitary sewer use fees for the upcoming year beginning in April. There is no need to have landscape irrigation metered separately unless the developer finds it more convenient. Water meters must be purchased from the City. Refuse collection locations and screening are shown on the development plans, but are subject to final approval by the Utilities Department. Dumpsters/trash containers must be purchased from the City.

Proposed building elevations depicting architectural style and construction materials are also included in the PD Development Plan submittal as required by code.

December 9, 2014 Page 5

Essam Arram presented this matter to the Council. He stated their proposal is clear and simple. They are proposing to put two buildings, each building is 8 units of single bedrooms. The two buildings face each other and the parking is in the middle of the buildings. He was in agreement with the conditions.

There was no one present in opposition to this hearing.

Moved by Lear to close the public hearing on the Application submitted by Essam Arram for Arram Equities, Inc. to rezone from District C-3, General Commercial District to District C-3/PD, General Commercial/Planned Development Overlay District property described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north and introduced Ordinance No. 7946 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 close the hearing and suspend the rules for Ordinance No. 7946. 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: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. 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. 7946 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Buschkoetter seconded by Lammers that Ordinance No. 7946 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7946 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.

DEVELOPMENT PLANS FOR 16 SINGLE BEDROOM UNITS AT 501, 503, 507 AND 511 EAST 26TH STREET

Public Hearings 1 and 2 were discussed together but voted on separately.

Vice-President Buschkoetter opened the public hearing on the Application submitted by Essam Arram for Arram Equities, Inc. for Planned District Development Plan Approval to construct 16 single bedroom units on property to be zoned District C-3/PD, General Commercial/Planned Development Overlay District property described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north (501, 503, 507 and 511 East 26th Street) and consider Resolution No. 2014-236. December 9, 2014 Page 6

There was no one present in opposition to this hearing.

Moved by Lammers seconded by Nikkila to close the hearing and adopt Resolution No. 2014-236 approving the Application submitted by Essam Arram for Arram Equities, Inc. for Planned District Development Plan Approval to construct 16 single bedroom units on property to be zoned District C-3/PD, General Commercial/Planned Development Overlay District property described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north (501, 503, 507 and 511 East 26th Street) subject to (1) the tree size for columnar oaks shall be a minimum of 2-inch caliper and (2) allowing the deviation regarding the east setback under the Planned Development Overlay District to be 12-foot rather than the required 25-foot setback. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-236

WHEREAS, Essam Arram for Arram Equities, Inc. have applied for Planned District Development Plan Approval to construct 16 single bedroom units on property to be zoned District C-3/PD, General Commercial/Planned Development Overlay District and described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north (501, 503, 507 and 511 East 26th Street) more or less, Buffalo County, Nebraska. NOW, THEREFORE, BE IT RESOLVED by the President and City Council of the City of Kearney, Nebraska, that the application of Essam Arram for Arram Equities, Inc. for Planned District Development Plan Approval to construct 16 single bedroom units on property to be zoned District C-3/PD, General Commercial/Planned Development Overlay District and described as Lots 131 through 136 inclusive, Keen’s Park Addition to the City of Kearney, Buffalo County, Nebraska together with the vacated south 20 feet of 26th Street abutting said lots on the north (501, 503, 507 and 511 East 26th Street) more or less, Buffalo County, Nebraska be approved subject to (1) the tree size for columnar oaks shall be a minimum of 2-inch caliper and (2) allowing the deviation regarding the east setback under the Planned Development Overlay District to be 12- foot rather than the required 25-foot setback. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

VACATE LOT 12, WESTERN HILLS SUBDIVISION AND REZONING AT THE SOUTHWEST CORNER OF 56TH STREET AND 30TH AVENUE

Public Hearings 3 and 4 were discussed together but voted on separately.

Vice-President Buschkoetter opened the public hearing on the Applications submitted by Miller & Associates for Tracy and Jacqueline Burns to (1) vacate Lot 12, Western December 9, 2014 Page 7

Hills Subdivision, Buffalo County, Nebraska and consider Ordinance No. 7947; and (2) 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 the Northeast Quarter of the Northeast Quarter of Section 28, Township 9 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (southwest corner of 56th Street and 30th Avenue) and consider Ordinance No. 7948. Planning Commission recommended approval.

The applicant is seeking approval to rezone and subdivide a tract of land in the two-mile ETJ for rural residential purposes. The overall tract contains 14.36 acres and it is located at the intersection of two arterial streets, 56th Street and 30th Avenue, on the southwest corner. There is an existing house on the property. The owners would like to set this property up to retain the existing house and provide two additional rural residential lots.

12.85 acres of the property was originally platted as a single lot, Lot 12 of Western Hills Subdivision. An additional tract containing 1.51 acres located at the northwest corner of this area will also be included in the new subdivision but is not included in Lot 12. Lot 12 must now be vacated and the additional 1.51 acres added to provide an aggregate parcel of 14.36 acres to allow further subdivision into three new lots.

The current zoning of this property is primarily RR-1, Rural Residential District/Rural Standards except for the aforementioned 1.51 acre piece which is zoned AG, Agricultural. The 1.51 acre piece is proposed for RR-1 zoning so that all 14.36 acres will be appropriately zoned as RR-1. The Future Land Use Map of the City Comprehensive Development Plan shows this property designated for “Rural Estates” so there is no need to amend the Land Use Map.

The developer is proposing a three lot subdivision with two lots of about three plus acres fronting on 56th Street and one large lot of 7.82 acres that basically comprises the southern half of the overall tract. Both the Preliminary and Final plat contain three lots. The Preliminary Plat was approved by Planning Commission at the November 15, 2014 meeting. The larger lot is proposed as Lot 1. Lot 1 contains the existing house and associated outbuildings.

A 40-foot wide access easement is shown parallel to 56th Street to provide ingress and egress between Lots 2 and 3. Both lots shall take access from 56th Street via a shared drive on the west end of Lot 2 that lines up with the existing driveway on the north side of 56th Street. The shared access is required to reduce the number of access points onto the arterial roadways.

Easements are shown on the Final Plat for a fiber optic line that cuts through Lot 1 and a utility easement is shown for the existing underground electric line that runs along the west line of the proposed subdivision.

Additional right-of-way is being dedicated along both arterial streets for a total of fifty feet from centerline.

An Infrastructure Feasibility Plan is not required. If any of the homeowners would like to be connected to City water there is a water main available and water could be provided December 9, 2014 Page 8 by agreement with the Utilities Department. Connection to City water is not a requirement. Well and septic systems are allowed in RR-1 zones subject to DEQ approval.

Craig Bennett from Miller & Associates presented this matter to the Council. The property is located south of 56th Street and west of 30th Avenue in the northwest part of Kearney, just outside of corporate limits. There is currently one house and a building on it, the owners live there and it is their residence and they want to subdivide it into two additional residential lots. Comprehensive Plan shows that it is to be Low Density Residential so they are not asking to change the Land Use Map. The area they want to subdivide currently consists of one lot known as Lot 12, Western Hills and there is an area just outside of it of 1.51 acres that is currently zoned Ag so they are asking that it be rezoned to RR-1 which is what is contiguous and adjacent to it.

Currently there is a fiber optic line and underground electrical that goes through it but it does have public water available on the north although it is outside of City limits and they will not be utilizing City water there. There will be three lots and they will live and keep the south half as one lot and would subdivide the other two lots on the north which would be known as Lots 2 and 3 which would be available for residential development; there is just over three acres. They would have one common access located in the northwest corner and there would be an easement of ingress/egress for what will be known as Lot 3 to go across the north frontage to allow for proper separation from intersection of 56th Street and 30th Avenue.

Council Member Buschkoetter asked what the distance was and Mr. Bennett stated there is 1,000 feet of separation from the driveway access to the intersection.

There was no one present in opposition to this hearing.

Moved by Nikkila to close the public hearing on the Application submitted by Miller & Associates for Tracy and Jacqueline Burns for property located at the southwest corner of 56th Street and 30th Avenue and introduced Ordinance No. 7947 to vacate Lot 12, Western Hills Subdivision of Buffalo County, Nebraska and Ordinance No. 7948 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 the Northeast Quarter of the Northeast Quarter of Section 28, Township 9 North, Range 16 West of 6th P.M., Buffalo County, Nebraska 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 close the hearing and suspend the rules for Ordinance No. 7948. 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: Buschkoetter, Nikkila, Lammers, Lear. Nay: None. Clouse absent. 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 Nos. 7947 and 7948 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Nikkila, Lammers, Lear. Nay: None. December 9, 2014 Page 9

Clouse absent. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance Nos. 7947 and 7948 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance Nos . 7947 and 7948 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.

FINAL PLAT FOR WESTERN HILLS SECOND SUBDIVISION

Public Hearings 3 and 4 were discussed together but voted on separately.

Vice-President Buschkoetter opened the public hearing on the Application submitted by Miller & Associates for Tracy and Jacqueline Burns for the Final Plat for Western Hills Second Subdivision, Buffalo County, Nebraska, for property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 28, Township 9 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (southwest corner of 56th Street and 30th Avenue) and consider Resolution No. 2014-237.

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Lammers to close the hearing and adopt Resolution No. 2014-237 approving the Application submitted by Miller & Associates for Tracy and Jacqueline Burns for the Final Plat for Western Hills Second Subdivision, Buffalo County, Nebraska, for property described as a tract of land being part of the Northeast Quarter of the Northeast Quarter of Section 28, Township 9 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (southwest corner of 56th Street and 30th Avenue). Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-237

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of Western Hills Second Subdivision, a subdivision of Buffalo County, Nebraska for a tract of land being part of the Northeast Quarter of the Northeast Quarter, Section 28, Township 9 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska, and more particularly described as follows: Referring to a chiseled + at the Northeast Corner of the Northeast Quarter of Section 28 and assuming the East line of said Northeast Quarter as bearing S 00°06'25" E and all bearings contained herein are relative thereto; thence S 00°06'25" E on said East line a distance of 52.49 feet; thence S 89°41'35" W parallel with the North line of said Northeast Quarter a distance of 72.10 feet to a 5/8” rebar with cap at the intersection of the South line of 56th Street and the West line of 30th Avenue, as described in a Deed of Correction filed as instrument 1999-9178 in the Buffalo County, Nebraska, Register of Deeds Office and the ACTUAL POINT OF BEGINNING; thence S 05°04'06" E on said West line of 30th Avenue a distance of 378.41 feet to a 5/8” rebar with cap; thence S December 9, 2014 Page 10

00°06'25" E continuing on said West line of 30th Avenue and parallel to said East line of the Northeast Quarter a distance of 262.46 feet to a 5/8” rebar with cap; thence N 89°53'35" E continuing on said West line of 30th Avenue and perpendicular to said East line of the Northeast Quarter a distance of 6.37 feet to a 5/8” rebar with cap on the West line of 30th Avenue as dedicated in Western Hills Subdivision, Buffalo County, Nebraska; thence S 00°06'25" E on said West line of 30th Avenue and parallel to said East line of the Northeast Quarter a distance of 67.86 feet to a 5/8” rebar with cap at the Northeast Corner of Lot 11 of said Western Hills Subdivision; thence S 89°49'37" W on the North line of said Lot 11 a distance of 893.83 feet to a 5/8” rebar with cap at the Northwest corner of said Lot 11; thence N 00°06'25" W parallel with said East line of the Northeast Quarter a distance of 331.68 feet to a 5/8” rebar with cap; thence N 00°08'12" W a distance of 380.24 feet to a 5/8” rebar with cap on said South line of 56th Street; thence N 89°41'35" E on said South line of 56th Street and parallel to said North line of the Northeast Quarter a distance of 560.80 feet to a 5/8” rebar with cap; thence S 88°23'51" E continuing on said South line of 56th Street a distance of 196.88 feet to a 5/8” rebar with cap; thence N 89°41'35" E continuing on said South line of 56th Street and parallel to said North line of the Northeast Quarter a distance of 97.34 feet to the Point of Beginning, containing 14.36 acres more or less, all in Buffalo County, Nebraska, duly made out, acknowledged and certified, and the same hereby is approved in accordance with the terms and requirements of Sections 16-901 through 16-904 inclusive, R.R.S. 1943 (as amended) be accepted and ordered filed and recorded in the Office of the Register of Deeds, Buffalo County, Nebraska. BE IT FURTHER RESOLVED that the President of the Council be and is hereby authorized and directed to execute the final plat on behalf of the City of Kearney, Nebraska. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

REZONING BETWEEN 8TH STREET AND 11TH STREET ALONG 17TH AVENUE

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

Vice-President Buschkoetter opened the public hearing on the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp to rezone from District AG, Agricultural District to District R-1, Urban Residential Single-Family District (Low Density) and District R-2, Urban Residential Mixed-Density District property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue) and consider Ordinance No. 7949. Planning Commission recommended approval.

On September 19, 2014 Planning Commission approved a 29 lot subdivision between 17th Avenue and the Tailrace to be known as Parkview Estates Seventh Addition. Four lots at the north end towards 11th Street lots were zoned R-2 and the remaining 25 lots were zoned R-1 extending down both sides of 17th Avenue. The westerly lots will abut December 9, 2014 Page 11 the NPPD tailrace. The developer has since decided to reduce the number of lots to be platted by retaining the four R-2 lots and only platting nine additional lots to R-1. The developer withdrew his applications from the City Council Agenda in October and will have to go back through Planning Commission and City Council review for approval of the revised subdivision submittal depicting the reduced number of lots. This project requires rezoning, platting and annexation.

The property is currently zoned AG by default. The applicant would like to rezone Lots 1 and 2, Block 1 and Lots 1 and 2, Block 2 containing a total of 2.77 acres from AG to R-2 and the remaining nine lots from AG to R-1 (Lots 3- 7, Block 1; Lots 3-8, Block 2.) The R-1 lots comprise 3.96 acres in total. The Future Land Use Map of the Comprehensive Development Plan categorizes this area as “Low Density Residential.” The proposed development is in conformance with this land use designation.

The Preliminary Plat for this parcel was approved by Planning Commission December 18, 2009. The layout of the reduced number of lots shown on the Final Plat is in conformance with the corresponding lot layout approved on the Preliminary Plat. A high- pressure gas line easement traverses Lot 1, Block 1 which is a duplex lot. The Owner chose to develop this lot with a duplex approach to more effectively address the challenges that the gas line presents. The final plat will have a 20 foot pedestrian sidewalk easement between Lots 3 and 4. Owners of Lots 3 and 4 would own the sidewalk but it will be a dedicated easement for the public to use. There will need to be a “No Build” note put on the plat so property owners are not building structures over the easement, such as sheds, playgrounds or gardens.

Staff had some concerns regarding access points for the duplex lots. For comparison purposes, Lots 1 and 2 (proposed R-2) have 302.19 linear feet of frontage; the four lots south of Lots 1 and 2 (proposed R-1) exhibit a total of 300 linear feet of frontage. In either case, the number of driveways is the same over roughly 300 feet of frontage with two duplex units or four single family units. Staff wants to insure that no additional curb cuts are allowed for the duplex lots. A Public Works Plan was previously submitted and approved. Drainage and stormwater management was engineered and constructed for the subdivision with previous phases of platting and development. City water and sanitary sewer were constructed with the paving in 16th Avenue. The developer/owner took an agricultural deferral of water, sanitary sewer and paving assessments for this property. The agricultural deferral will be waived and assessments will be due when the zoning is changed from agricultural to residential.

Water and sanitary sewer services were stubbed into the proposed lots located on the west side of 16th Avenue according to the proposed lots shown on the preliminary plat. City Code requires that every separate premise be directly connected to City water and sanitary sewer. Only one water and sanitary sewer service were stubbed into each of the northern two lots in anticipation of single-family use. Now that these lots will be used for duplex units an additional water service will be required on each lot. The cost to construct the water service will be the developer’s/owner’s expense. The water main is located on the west side of the street making the construction of the additional water services more convenient.

December 9, 2014 Page 12

An additional sanitary sewer service will also be required on each lot to serve the duplexes. The cost to construct the additional sanitary sewer service will be the developer’s/owner’s expense. Since the sanitary sewer is located in the center of the street and since a manhole may not be properly located to bore a new sewer service into the Utilities Department will allow the developer/owner to install a sewer chamber over the existing sewer service and to construct a separate service from the sewer chamber to each unit of the duplex.

A Subdivision Agreement has been prepared to address the following issues:  Design and installation of public improvements through the improvement district process and creation of improvement districts.  Paving of the sidewalk within the northerly pedestrian easement will be tied to construction of 17h Avenue by Paving Improvement District.  Likewise, paving of the sidewalk along 11th Street will be also be tied to the paving districts for 17th Avenue.  Water connection fees are due for the 11th Street frontage.

This property abuts incorporated land and is already served with public infrastructure. As per the annexation policy approved by City Council a few years ago, no “islands” of un-annexed land are to remain as such. Therefore, this property will be annexed into the City limits by Final Plat as “an addition to the City of Kearney.”

Craig Bennett from Miller & Associates presented this matter to the Council. He stated this went through Planning Commission and went to Council and was withdrawn. The developer reduced the size that they wanted to plat. This will be known as Park View Estates Seventh. It is bordered on the north by 11th Street just west of Kenwood Elementary and it consists of approximately six acres. There is a component of rezoning and in this process he is choosing to rezone two parts of it which would basically line up with what he did on Park View Estates Sixth. The portion of R-2 would be consistent in distance off of 11th Street which would also be for duplexes and then it would come back for R-1, so there would be 2.77 acres of R-2 along the 11th Street corridor and 3.96 acres of R-1 just south of it.

The Preliminary Plat shows all the phases when the school was done. There have been portions of it that has not been final platted yet at this point of time. There are four lots of R-2 and nine lots of R-1. As a component of this part there will be a hike/bike in connectivity for pedestrian purposes which align up with the sidewalk access to the school and that is because when you look at the overall plan, the children accessing the school do not have to go clear up to the north.

Council Member Buschkoetter asked if there is some access to the south. Mr. Bennett stated the access south has been proposed as a pedestrian access that would be across the NPPD canal and then access Yanney Park. He would say there would be more discussion about what the bridge can look like.

Council Member Nikkila asked in reference having to go back to Planning Commission again was that just a reference to the southern portion and Mr. Bennett confirmed. Council Member Nikkila asked the southern portion will have to go back again. Mr. Bennett confirmed and stated if Mr. Rapp decides to final plat any of the L-shaped area December 9, 2014 Page 13 on the south which is what remains, he would do the same process they are doing today.

There was no one present in opposition to this hearing.

Moved by Lammers to close the public hearing on the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp to rezone from District AG, Agricultural District to District R-1, Urban Residential Single-Family District (Low Density) and District R-2, Urban Residential Mixed-Density District property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue) and introduced Ordinance No. 7949 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 Nikkila seconded the motion to close the hearing and suspend the rules for Ordinance No. 7949. 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: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. 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. 7949 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Nikkila seconded by Lear that Ordinance No. 7949 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Nikkila, Lammers, Lear. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7949 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.

FINAL PLAT FOR PARK VIEW ESTATES SEVENTH ADDITION

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

Vice-President Buschkoetter opened the public hearing on the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp for the Final Plat and Subdivision Agreement for Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska, for property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue) and consider Resolution No. 2014-238. December 9, 2014 Page 14

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing and adopt Resolution No. 2014-238 approving the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp for the Final Plat and Subdivision Agreement for Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska, for property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue). Roll call resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-238

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA, that the plat of Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska for a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11, and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska being more particularly described as follows: Referring to a mag nail at the Northwest Corner of the Northwest Quarter of Section 11 and assuming the North line of said Northwest Quarter as Bearing N 89°20'53" E and all other bearings contained herein are relative thereto; thence N 89°20'53" E on said North line a distance of 64.99 feet; thence S 00°11'46" W a distance of 25.31 feet to a 5/8" rebar at the intersection of the South line of 11th Street as platted in the City of Kearney, Buffalo County, Nebraska and the East line of a tract of land deeded to Nebraska Public Power District as Instrument No. 2008-8834 recorded in the Buffalo County, Nebraska Register of Deed Office and the ACTUAL POINT OF BEGINNING; thence N 82°09'52" E on said South line of 11th Street a distance of 430.74 feet to a 5/8" rebar with cap at the Northwest corner of Park View Estates Sixth Addition to the City of Kearney, Buffalo County, Nebraska; thence S 00°40'27" W on the West line of said Park View Estates Sixth Addition a distance of 172.30 feet to a 5/8" rebar with cap; thence S 16°37'25" W continuing on said West line a distance of 144.01 feet to a 5/8" rebar with cap; thence S 00°40'27" W continuing on said West line a distance of 470.00 feet to a 5/8" rebar with cap at the Southwest Corner of Lot 8, of said Park View Estates Sixth Addition; thence N 89°19'33" W perpendicular to said West line of Park View Estates Sixth a distance of 155.00 feet; thence continuing N 89°19'33" W a distance of 66.00 feet; thence N 00°40'27" E parallel to said West line a distance of 15.00 feet to a 5/8" rebar with cap; thence N 89°19'33" W perpendicular to said West line a distance of 159.57 feet to a 5/8" rebar with cap at a point on said East line of the Nebraska Public Power District tract; thence N 00°11'46" E on said East line a distance of 702.05 feet to the Point of Beginning, containing 6.73 acres, more or less, Buffalo County, Nebraska, duly made out, acknowledged and certified, and the same hereby is approved in accordance with the provisions and requirements of Section 19-916 of the Nebraska Revised Statutes, be 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 December 9, 2014 Page 15 such addition shall be entitled to all the rights and privileges and shall be subject to all laws, ordinances, rules and regulations of said City. BE IT FURTHER RESOLVED that the 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 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

ANNEXATION OF PARK VIEW ESTATES SEVENTH ADDITION

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

Vice-President Buschkoetter opened the public hearing on the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp for the annexation of Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska, for property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue) and consider Resolution No. 2014-239.

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Lammers to close the hearing and adopt Resolution No. 2014-239 approving the Application submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp for the annexation of Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska, for property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter of Section 11 and part of the Southwest Quarter of the Southwest Quarter of Section 2, Township 8 North, Range 16 West of 6th P.M., Buffalo County, Nebraska (between 8th Street and 11th Street along 17th Avenue). Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-239

WHEREAS, an Application has been submitted by Miller & Associates for Kelly Rapp and Laureen Striker-Rapp for the inclusion of Park View Estates Seventh Addition, an addition within the corporate boundaries of the City of Kearney said property described as a tract of land being part of the Northwest Quarter of the Northwest Quarter, of Section 11, and part of the Southwest Quarter of the Southwest December 9, 2014 Page 16

Quarter of Section 2, Township 8 North, Range 16 West of the Sixth P.M., Buffalo County, Nebraska being more particularly described as follows: Referring to a mag nail at the Northwest Corner of the Northwest Quarter of Section 11 and assuming the North line of said Northwest Quarter as Bearing N 89°20'53" E and all other bearings contained herein are relative thereto; thence N 89°20'53" E on said North line a distance of 64.99 feet; thence S 00°11'46" W a distance of 25.31 feet to a 5/8" rebar at the intersection of the South line of 11th Street as platted in the City of Kearney, Buffalo County, Nebraska and the East line of a tract of land deeded to Nebraska Public Power District as Instrument No. 2008-8834 recorded in the Buffalo County, Nebraska Register of Deed Office and the ACTUAL POINT OF BEGINNING; thence N 82°09'52" E on said South line of 11th Street a distance of 430.74 feet to a 5/8" rebar with cap at the Northwest corner of Park View Estates Sixth Addition to the City of Kearney, Buffalo County, Nebraska; thence S 00°40'27" W on the West line of said Park View Estates Sixth Addition a distance of 172.30 feet to a 5/8" rebar with cap; thence S 16°37'25" W continuing on said West line a distance of 144.01 feet to a 5/8" rebar with cap; thence S 00°40'27" W continuing on said West line a distance of 470.00 feet to a 5/8" rebar with cap at the Southwest Corner of Lot 8, of said Park View Estates Sixth Addition; thence N 89°19'33" W perpendicular to said West line of Park View Estates Sixth a distance of 155.00 feet; thence continuing N 89°19'33" W a distance of 66.00 feet; thence N 00°40'27" E parallel to said West line a distance of 15.00 feet to a 5/8" rebar with cap; thence N 89°19'33" W perpendicular to said West line a distance of 159.57 feet to a 5/8" rebar with cap at a point on said East line of the Nebraska Public Power District tract; thence N 00°11'46" E on said East line a distance of 702.05 feet to the Point of Beginning, containing 6.73 acres, more or less, Buffalo County, Nebraska; and WHEREAS, the Kearney City Planning Commission has received and held a public hearing on November 21, 2014 on the inclusion of Park View Estates Seventh 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 Park View Estates Seventh Addition, an addition to the City of Kearney, Buffalo County, Nebraska; and WHEREAS, a public hearing was held by the Kearney City Council relating to said application on December 9, 2014 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 Park View Estates Seventh 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 Park View Estates Seventh 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 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK December 9, 2014 Page 17

CONDITIONAL USE PERMIT GRANTED TO JEFF OVERTURF; 710 WEST 30TH AVENUE

Vice-President Buschkoetter opened the public hearing on the Application submitted by Jeffrey and Lisa Overturf for a Conditional Use Permit to haul gravel and sand off site to enable construction of a private lake on property zoned “District AG, Agricultural District” and described as being part of Government Lots 2 and 3, part of the North Half of the Northeast Quarter, all of Government Lot 4 and part of accretions in Section 9, Township 8 North, Range 16 West of the 6th P.M., all in Buffalo County, Nebraska (710 West 30th Avenue) and consider Ordinance No. 7950. Planning Commission recommended approval subject to compliance with the 10 conditions listed in the ordinance. The ordinance was provided to Mr. Overturf last week for review. He has signed and submitted the Acknowledgment agreeing to the conditions.

Attorney William Blake presented this matter to the Council. He stated the applicants have had a sand and gravel pumping operation to extract the resources under the Conditional Use Permit for the last five years. It has recently expired and they wish to renew for an additional three years or will expire December 2017. There are some conditions that were discussed with City staff, they worked out the conditions and have signed the acknowledgement agreeing to the conditions and they ask the Council to approve the operation so they can finish pumping that lake and turn it into a good development.

Council Member Buschkoetter asked about this process lasting longer than the original five years. Mr. Blake stated they expected to be completed in five years and have a much larger lake than they have but getting it started took a lot longer than they expected. It has picked up and they expect to get it done now at the current base in another three years.

Council Member Lammers asked about the accesses with regard the new high school. Mr. Blake stated the conditions provide that starting in August 2016, access to and from the property for gravel trucks and heavy equipment will need to use the south access point and go around to the south rather than have that conflict with the school’s main entrance.

Council Member Buschkoetter asked what is the methodology to enforce that to make sure that it is adhered to. Mr. Blake stated it is a condition of the permit and it could be monitored by law enforcement or City staff. The property owner risks his permit if there were violations of the conditions. City staff worked together with Mr. Overturf and the suggestion came from him that it would be better if the trucks went south. It is his understanding that they are heading west anyway ultimately and so it was his suggestion that they develop that south exit so they do not have conflict with the high school once it opens up. As a practical matter the sand and gravel operator who is pumping the pit will want to make sure the truck drivers do not get them into trouble, they want to finish the job.

There was no one present in opposition to this hearing.

December 9, 2014 Page 18

Moved by Lammers to close the public hearing on the Application submitted by Jeffrey and Lisa Overturf for a Conditional Use Permit to haul gravel and sand off site to enable construction of a private lake on property zoned “District AG, Agricultural District” and described as being part of Government Lots 2 and 3, part of the North Half of the Northeast Quarter, all of Government Lot 4 and part of accretions in Section 9, Township 8 North, Range 16 West of the 6th P.M., all in Buffalo County, Nebraska (710 West 30th Avenue) and introduced Ordinance No. 7950 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 Nikkila seconded the motion to close the hearing and suspend the rules for Ordinance No. 7950. 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: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. 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. 7950 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Nikkila seconded by Lear that Ordinance No. 7950 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Nikkila, Lammers, Lear. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7950 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.

BOARD OF EQUALIZATION

Vice-President Buschkoetter opened the public hearing for the Council to meet as the Board of Equalization to assess costs in connection with Water District No. 2014-573 and Sanitary Sewer District No. 2014-511 and consider Resolution No. 2014-240.

At the April 22, 2014 Council meeting the Council approved Ordinance No. 7886 creating Water District No 2014-573 in Avenue A from a point located at the south line of Lot 717, Original Town of Kearney Junction northward to the north line of South Railroad Street, then easterly in South Railroad Street to the west line of Avenue B. Also on April 22, 2014 Ordinance No. 7887 creating Sanitary Sewer District No. 2014- 511 in the easement located in Lot 1, Brown’s Second Addition beginning at a point 132 feet south of the south line of Lot 2, Big Boy Addition northward to the south line of Lot 2, Big Boy Addition, then west along the south line of Big Boy Addition in the easement to the west line of Lot 2, Big Boy Addition then north along the west line of Big Boy Addition in an easement to the north line of Big Boy Addition.

After completion of the construction project, the City hired a title company to complete property abstracts so that assessments could be levied. The costs of the improvements December 9, 2014 Page 19 shall be assessed against the property in said districts on a basis of special benefit to the property, if any, as provided by law.

There was no one present in opposition to this hearing.

Moved by Lear seconded by Buschkoetter to close the hearing meeting as the Board of Equalization and adopt Resolution No. 2014-240 assessing costs in connection with Water District No. 2014-573 and Sanitary Sewer District No. 2014-511. Roll call resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-240

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA: Section 1. The President and Council find and determine that the water main heretofore ordered installed in Water District No. 2014-573 have been installed, together with all incidental work thereto by the City Utilities Department, and that none of the properties listed, which is marked “Exhibit “A” and made a part hereof by reference, were damaged thereby and that the amounts shown in the attached schedule does not exceed the amounts which each of said lots and parcels of ground were specially benefited by said water main and the total amount of said special assessments does not exceed the costs of said improvements as heretofore determined by the Mayor and City Council. Section 2. The President and Council find and determine that the sanitary sewer main heretofore ordered installed in Sanitary Sewer District No. 2014-511 have been installed, together with all incidental work thereto by the City Utilities Department, and that none of the properties listed, which is marked “Exhibit “A” and made a part hereof by reference, were damaged thereby and that the amounts shown in the attached schedule does not exceed the amounts which each of said lots and parcels of ground were specially benefited by said sanitary sewer main and the total amount of said special assessments does not exceed the costs of said improvements as heretofore determined by the Mayor and City Council. Section 3. Notice of the time and purpose of hearing on special assessments for equalizing said special assessments has been published as provided by law in the Kearney Hub, and a copy of said notice mailed by certified mail to each party known to have a direct legal interest therein. Section 4. That there be and there is hereby levied against each lot and parcel of ground set out in Exhibit “A” the amount set opposite each lot and parcel of ground. Said assessments for Water District No. 2014-573 shall become delinquent as follows: 1/5th fifty days after date of this Resolution 1/5th one year after date of this Resolution 1/5th two years after date of this Resolution 1/5th three years after date of this Resolution 1/5th four years after date of this Resolution Each installment, except the first, shall draw interest at the rate of 5.5 per centum per annum from date of this Resolution until the same become delinquent and after they become delinquent at the rate of fourteen per centum per annum until paid. December 9, 2014 Page 20

Section 5. That there be and there is hereby levied against each lot and parcel of ground set out in Exhibit “A” the amount set opposite each lot and parcel of ground. Said assessments for Sanitary Sewer District No. 2014-511 shall become delinquent as follows: 1/5th fifty days after date of this Resolution 1/5th one year after date of this Resolution 1/5th two years after date of this Resolution 1/5th three years after date of this Resolution 1/5th four years after date of this Resolution Each installment, except the first, shall draw interest at the rate of 5.5 per centum per annum from date of this Resolution until the same become delinquent and after they become delinquent at the rate of fourteen per centum per annum until paid. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

LAND ACQUISITION FOR PROPOSED PARK IN NORTHEAST PARK

Vice-President Buschkoetter opened the public hearing on the proposed acquisition of Lots 3 through 7 inclusive, Block 3, Eastbrooke 14th Addition, an addition to the City of Kearney, Buffalo County, Nebraska for recreational purposes and consider Resolution No. 2014-241.

City Attorney Michael Tye presented this matter to the Council. A Purchase Agreement has been negotiated between the City of Kearney and Camron, Inc. who is the owner and developer of Eastbrooke 14th Addition in northeast Kearney. The Purchase Agreement is for five residential lots in the Eastbrooke Addition for the price of $250,000.00. If the Agreement is approved, this property will be purchased for the purpose of creating a City park on these lots. With the growth in this part of Kearney, there is not a neighborhood park that has been established and City staff would propose this purchase so that this neighborhood would have a City park.

Council Member Buschkoetter stated it’s his understanding that they will be talking with the neighborhood groups as well on what kind of amenities they would like to have in there as well. City Manager Mike Morgan stated they will use very similar process on which they used for Fountain Hills Park and have reached out to the neighborhood association and advised them of this and the timing and continue that conversation.

Council Member Bushkoetter stated it is an area that is under served by parks and it’s really designed for a nice neighborhood park and will be a nice amenity up there.

Council Member Nikkila stated he thinks if you look at a map of Kearney and how the neighborhood parks have developed over the years when City hit 39th Street that concept slowed down. He thinks the neighborhood park additions will be a great addition for that area and something the City needs to be financially conscious of, the City can’t put one everywhere but within reason and he hopes people will be patient with them that the City can’t build a big park instantly it will take time. December 9, 2014 Page 21

There was no one present in opposition to this hearing.

Moved by Buschkoetter seconded by Lammers to close the hearing and adopt Resolution No. 2014-241 approving the proposed acquisition of Lots 3 through 7 inclusive, Block 3, Eastbrooke 14th Addition, an addition to the City of Kearney, Buffalo County, Nebraska for recreational purposes. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

RESOLUTION NO. 2014-241

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 recreational purposes and voted in favor to proceed with the acquisition; and WHEREAS, Camron, Inc., a Nebraska Corporation, has signed a Purchase Agreement for the following tract of land for recreational purposes: Lots 3 through 7 inclusive, Block 3, Eastbrooke 14th 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 Purchase Agreement signed by Camron, Inc., a Nebraska Corporation, with the City of Kearney be and is hereby approved and accepted. BE IT FURTHER RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, that the Mayor be and is hereby authorized and directed to execute, on behalf of the City of Kearney, the Purchase Agreement between the City of Kearney and Camron, Inc., a Nebraska Corporation. The said Agreement, marked Exhibit “A”, is attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

IV. CONSENT AGENDA

Moved by Lammers seconded by Nikkila that Subsections 1 through 8 of Consent Agenda Item IV be approved. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

1. Approve the following Claims:

PS Personnel Services SMCS Supplies, Materials & Contractual Services ER Equipment Rental CO Capital Outlay DS Debt Service

December 9, 2014 Page 22

Agri Coop $1,839.59 smcs; Ahren,V $300.00 smcs; Alamar Uniforms $3,772.97 smcs, ps; Alfred Benesch $1,039.41 co; Amer First Aid $160.97 smcs; Anderson Bros $142.26 smcs; Anderson,B $40.00 smcs; Angry Cow Adventures $500.00 smcs; Artic Refrigeration $160.00 smcs; ASI $200.36 co; Aurora Coop $57.92 smcs; Baker & Taylor $2,404.30 smcs; Bamford $250.00 smcs; Blackstone Audio $532.47 smcs; Blessing $459,005.97 co; BlueCross BlueShield $133,454.88 smcs; Boersma,C $32.50 smcs; Bosselman $6,508.25 smcs; Breight,H $23.12 smcs; Broadfoot's $1,115.00 smcs,co; Buffalo Co Reg Deeds $46.00 smcs; Builders $521.60 smcs; Capital Business Systems $169.93 smcs; Capstone Press $5,633.18 smcs; Carquest $81.27 smcs; Cash-Wa $135.80 smcs; Center Point Publishing $123.80 smcs; Charter $274.75 smcs; Chief Supply $99.98 smcs; City of Ky $354,899.02 smcs,ps; Clipper-Herald $500.00 smcs; Coat All Painting $4,100.00 smcs; Community Action Partner $736.00 smcs; Consolidated Mgmt $194.50 smcs; Cook Construction $400.00 smcs; Cool Tech $78.50 smcs; Cooperative Producers $146.80 smcs; Copycat $359.79 smcs; Danko Emergency $396.95 co; Demco $101.37 smcs; Depository Trust $92,143.75 ds; Dish $95.00 smcs; DPC Industries $6,804.78 smcs; Dutton-Lainson $6,645.00 smcs; Eakes $75.03 smcs; Eggen,M $655.00 smcs; Eirich,T $50.00 smcs; Emergency Medical $1,344.70 co; Farmers Union $30.00 smcs; Fireguard $30.04 smcs; Frontier $77.56 smcs; Garrett Tires $4,925.42 smcs; Gear for Sports $462.00 smcs; General Traffic Controls $344.59 smcs; GPM $6,003.00 smcs; Gullion,E $45.77 smcs; HD Supply $12,155.22 smcs; Heggemeyer,L $60.00 smcs; Heinz,L $422.05 co; Hometown Leasing $157.20 smcs; ICMA RC $4,169.18 ps; IRS $135,097.73 ps; Jack Lederman $691.01 smcs; Jahn,E $144.00 smcs; Kalkowski,K $13.79 smcs; Fulton,K $94.00 smcs; Ky Chamber Comm. $1,544.00 smcs; Ky Concrete $6,116.10 co; Ky Crete & Block $458.00 smcs; Ky United Way $1,086.00 smcs; Ky Visitors Bureau $42,268.90 smcs; KHGI/KWNB $95.00 smcs; Krull Ins $1,950.00 smcs; Larue Distributing $88.60 smcs; Lawn Builders $350.00 smcs; LCL Truck Equipment $1,306.33 smcs; Leigh Enviro. Equip $468.00 smcs; Lerner Publications $24.95 smcs; Lewis,D $41.89 smcs; Librarica $907.35 smcs; Lincoln Winwater $854.55 smcs; Magic Cleaning $4,690.00 smcs; Matheson Tri Gas $34.22 smcs; McGee,A $400.00 smcs; Mead Lumber $345.02 smcs; Mellow D's $175.00 smcs; Menards $130.32 smcs; Metlife $8,370.00 ps; Middleton Electric $110.00 smcs; Midlands Contracting $126,616.44 co; Miller & Associates $10,150.00 smcs; Miller Signs $600.00 smcs; Municipal Supply $7,073.85 smcs; NLETC $50.00 smcs; NCS Equipment $195.60 smcs; NE Child Support $2,732.58 ps; NE Dept Revenue $38,920.32 ps; NE Public Health $1,151.00 smcs; NE Rural Water $50.00 smcs; NE State Fire Marshall $120.00 smcs; NE State Library $105.25 smcs; NE Truck Center $1,750.14 smcs; Northwestern Energy $2,625.23 smcs; O'Keefe Elevator $382.68 smcs; O'Reilly Auto $13.99 smcs; Paez,G $525.00 smcs; Paramount $268.90 smcs; Paulsen $150,945.94 co; Payflex Systems $565.25 smcs,ps; Peerless Machine $11,985.00 smcs; Petersen,R $31.00 smcs; Physio-Controls $552.00 smcs; Platte Valley Comm $491.54 smcs; Plinske,P $18.72 smcs; Pulliam,R $40.00 smcs; Quill $94.98 smcs; Rackevicius,J $42.29 smcs; Random House $90.00 smcs; Rasmussen Mechanical $1,306.37 smcs; Ready Mixed Concrete $10,806.79 smcs,co; Recorded Books $744.05 smcs; Reinke's Refrigeration $268.51 smcs; Rheome Tree $1,540.00 smcs; Sapp Bros $18,893.70 smcs; Schuck,E $1.15 smcs; Sedlacek,N $100.00 smcs; Snap-On Tools $32.85 smcs; Sonetics $366.64 smcs;SOS Portable Toilets $117.00 smcs; State of NE/AS Central $3,641.52 smcs; Steinbrink Landscaping $100.00 smcs; Sun Life Financial $61,475.20 smcs; Tacha,T $50.00 smcs; Titan Machinery $1,800.00 smcs; Tool Doctor $25.00 smcs; Trade Well Pallet $3,150.00 December 9, 2014 Page 23 smcs; Tye Law Firm $188.69 ps; Union Bank & Trust $65,253.21 ps; Verizon Wireless $1,205.48 smcs; Village Cleaners $448.71 smcs; Warren-T Plumbing $255.00 smcs; Weller,B $7.62 smcs; Williams,M $203.84 smcs; Payroll Ending 11-29-2014 -- $382,855.17 and Longevity Payroll Ending 12-12-2014 -- $62,875.41. 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.

2. Adopt Resolution No. 2014-242 appointing Kim Smith to serve on the Advisory Board of Park & Recreation Commissioners.

RESOLUTION NO. 2014-242

WHEREAS, Resolution No. 2005-96 calls for Citizen Board/Commission member appointments to be made by resolution submitted by the Mayor to the City Council for final approval; and WHEREAS, a vacancy currently exists on the Advisory Board of Park & Recreation Commissioners. NOW, THEREFORE, BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the following person, as proposed by the Mayor of the City of Kearney, Nebraska, is hereby appointed to the Advisory Board of Park & Recreation Commissioners for the term indicated:

ADVISORY BOARD OF PARK & RECREATION COMMISSIONERS Kim Smith appointed to fulfill the term of Mitchell Greenwall until July 31, 2016

BE IT FURTHER RESOLVED that this resolution shall be in full force and effect from and after its adoption. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

3. Approve the applications for deferral of special assessments submitted by David Terveen for TWL LLC and Tom and Julie Larsen and Theodore and Penalton Larsen with regard to Sanitary Sewer District No. 2014-510 with regard to the Northeast Trunk Sanitary Sewer project.

4. Adopt Resolution No. 2014-243 approving the Professional Service Consultant Agreement between the City of Kearney and Miller & Associates for the Community Revitalization 2015 Part 3 project.

RESOLUTION NO. 2014-243

BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the Mayor be and is hereby authorized and directed to execute the Professional Service Consultant Agreement for Community Revitalization 2015 Part 3 Project December 9, 2014 Page 24 between the City of Kearney and Miller & Associates. The said Agreement, marked as Exhibit “A”, is attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

5. Approve the application for a Special Designated License submitted by Night Life Concepts, Inc., dba Cunningham's Journal in connection with their Class CK-059311 catering liquor license to dispense beer, wine and distilled spirits inside the Ag Pavilion located at the Buffalo County Fairgrounds, 3807 Avenue N, on January 3, 2015 from 3:00 p.m. until 1:00 a.m. for a reception.

6. Approve the application for a Special Designated License submitted by Night Life Concepts, Inc., dba Cunningham's Journal in connection with their Class CK-059311 catering liquor license to dispense beer, wine and distilled spirits inside the Exhibit Building located at the Buffalo County Fairgrounds, 3807 Avenue N, on January 10, 2015 from 4:00 p.m. until 1:00 a.m. for a company Christmas party.

7. Approve the application for a Special Designated License submitted by Night Life Concepts, Inc., dba Cunningham's Journal in connection with their Class CK-059311 catering liquor license to dispense beer, wine and distilled spirits inside the Exhibit Building located at the Buffalo County Fairgrounds, 3807 Avenue N, on January 24, 2015 from 4:00 p.m. until 1:00 a.m. for a dance.

8. Adopt Resolution No. 2014-244 approving the Subordination Agreements between the City of Kearney and Nebraska Public Power District.

RESOLUTION NO. 2014-244

BE IT RESOLVED by the Vice-President and Council of the City of Kearney, Nebraska, that the Vice-President be and is hereby authorized and directed to execute the Subordination Agreements on behalf of the City of Kearney with Nebraska Public Power District pertaining to property described as: Lots 3, 4, 5 and 6 of the South Half less a strip 17 feet in width on the west side of Lot 3 of Section 7, Township 8 North, Range 15 West of the 6th P.M., Buffalo County, Nebraska and more particularly described in said Subordination Agreements. A copy of the Subordination Agreements, marked as Exhibits “A” and “B” are attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 9TH DAY OF DECEMBER, 2014.

ATTEST: RANDY BUSCHKOETTER MICHAELLE E. TREMBLY VICE-PRESIDENT OF THE COUNCIL CITY CLERK

December 9, 2014 Page 25

V. CONSENT AGENDA ORDINANCES

ORDINANCE NO. 7951 AMENDING SECTION 3-1206 “EXCESSIVE FALSE ALARMS” OF THE CITY CODE

In an effort to make billing for excessive false fire alarms easier for businesses and the Fire Department to track, the following amendments to Section 3-1206 “Excessive False Alarms” of the City Code is requested with a January 1, 2015 effective date: (1) increase allowable false alarms from 3 to 4; and (2) change the time period from 12 consecutive months to a calendar year, beginning each January.

Council Member Nikkila introduced Ordinance No. 7951 amending Section 3-1206 “Excessive False Alarms” of Article 12 “Alarm Systems” of Chapter 3 “Business Regulations” of the Code of the City of Kearney changing the number of false alarms allowed to four in a calendar year, 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: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. 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. 7951 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7951 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Lear, Lammers, Nikkila. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7951 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. 7952 REPEALING ORDINANCE NO. 7939 AND VACATE LOT 12, WESTERN HILLS SUBDIVISION

On November 11, 2014 the Council approved the development of Wise Estates. As part of that development, Ordinance No. 7939 was approved vacating Lot 1, Star View Acres. When Buffalo Surveying attempted to file the ordinance and final plat with the Register of Deeds, it was noted that there was an error in the legal description. Therefore, Ordinance No. 7952 will repeal Ordinance No. 7939 and will vacate Lot 1 with the correct legal description.

December 9, 2014 Page 26

Council Member Nikkila introduced Ordinance No. 7952 repealing Ordinance No. 7939 and to vacate Lot 1, Star View Acres, a subdivision of Buffalo County, Nebraska, 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: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. 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. 7952 by number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7952 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Lear, Lammers, Nikkila. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7952 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. 7953 SELLING SOUTH 10 FEET OF 19TH STREET TO GLEN MILLER

Back in July of 1985, the City vacated ten feet on both sides of 19th Street. At that time, the state law required abutting property owners to purchase the vacated right-of-way. The state law was amended in 2001 that allowed the vacation of public right-of-way to revert to the abutting property owners. Lots 785 and 786, Original Town of Kearney Junction was recently purchased and the new owner wants to acquire that vacated 10 feet abutting Lot 785. Therefore, Ordinance No. 7953 will sell the vacated right-of-way to the abutting property owner.

Council Member Nikkila introduced Ordinance No. 7953 selling the vacated south ten (10) feet of 19th Street abutting Lot 785 on the north, Original Town of Kearney Junction, now the City of Kearney, Buffalo County, Nebraska to Glen Miller and Austin Miller, 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: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. 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. 7953 by December 9, 2014 Page 27 number. Roll call of those in favor of the passage of said ordinance on the first reading resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried. Ordinance was read by number.

Moved by Lear seconded by Buschkoetter that Ordinance No. 7953 be passed, approved and published as required by law. Roll call resulted as follows: Aye: Buschkoetter, Lear, Lammers, Nikkila. Nay: None. Clouse absent. Motion carried.

By reason of the roll call voted on the first reading and final passage of the ordinance, Ordinance No. 7953 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

KEARNEY RAMADA INN MANAGER APPLICATION FOR ADRIANCE JUEL

Vice-President Buschkoetter opened for discussion the manager application for Adriane Juel submitted by Kearney Lodging, LLC, dba Ramada Kearney/Al Fresco in connection with their Class C-096499 liquor license and located at 301 South 2nd Avenue.

Adriane Juel presented this matter to the Council. She has worked for the Ramada just over a year and she is the catering manager. She is in charge of cash bars at the Ramada. They have recently made sure all the bartenders have gone through the Responsible Training or the TIPS training that the City requires. They also make sure that they have been trained to wristband and card anyone who looks under 30 and when they have college events they do make sure that they have an off duty officer.

Council Member Buschkoetter stated they have a few other situations that occur in a hotel environment that is a little different. Ms. Juel stated they do have the Elephant’s Eye which is the bar that is currently operated there, the bartenders there have all gone through the training so they wristband at the bar also.

Council Member Lammers asked about their policy in case somebody does serve to a minor. Ms. Juel stated with something like that it would be immediate dismissal, they have not had any and that does put the liquor license servers in jeopardy. They have not had that situation yet but she would advocate that it would go for immediate dismissal of the employee.

Chief Lynch stated everything is fine, the restaurant does a good job as it is. Everybody has done an appropriate job during the background completing the questions appropriately.

Moved by Buschkoetter seconded by Lammers to approve the manager application for Adriane Juel submitted by Kearney Lodging, LLC, dba Ramada Kearney/Al Fresco in connection with their Class C-096499 liquor license and located at 301 South 2nd Avenue. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

December 9, 2014 Page 28

PIZZA HUT MANAGER APPLICATION FOR JOSHUA ROCK

Vice-President Buschkoetter opened for discussion the manager application for Joshua Rock submitted by Peak Interests, LLC, dba Pizza Hut in connection with their Class A- 033603 liquor license and located at 1412 2nd Avenue.

Joshua Rock presented this matter to the Council. He just recently moved to general manager at Pizza Hut on 2nd Avenue. He was not aware of all the labor laws when it comes to drinking but he recently has taken a lot of extra courses. They have installed books that allow employees if they have any strange ID’s or out of state, they have a book for logging that. They have a Responsible Beverage Service Training that everybody is required to take that is older than 19. Nobody is allowed to serve under the age of 21 in his establishment. If they have anybody serving alcohol to a minor, they have all kinds of precautions for getting that. They have rules against that.

Council Member Buschkoetter asked about Mr. Rock’s training that he has had, referring to the TIPS training. Mr. Rock stated he and his employees have taken the Responsible Beverage Service Training.

Moved by Lammers seconded by Nikkila to approve the manager application for Joshua Rock submitted by Peak Interests, LLC, dba Pizza Hut in connection with their Class A- 033603 liquor license and located at 1412 2nd Avenue. Roll call resulted as follows: Aye: Clouse, Buschkoetter, Nikkila, Lammers, Lear. Nay: None. Clouse absent. Motion carried.

OPEN ACCOUNT CLAIMS

Moved by Nikkila seconded by Lear that the Open Account Claims in the amount of $200.58 payable to Stan Clouse and in the amount of $95,142.35 payable to Nebraska Public Power District be allowed. Roll call resulted as follows: Aye: Buschkoetter, Lammers, Lear, Nikkila. Nay: None. Clouse absent. Motion carried.

VII. REPORTS

Council Member Nikkila congratulated Randy and Bob for being re-elected. He commended Mayor Clouse; he really appreciates his leadership, not only his willingness to go out and speak to people in the community and talk to people from out of town and loves that side of promoting Kearney but he appreciates as a Councilman how he is willing to acknowledge all Council members whenever he speaks and sends a message that it is a group effort.

Council member also thank the Kearney Area Community Foundation for “Give Where You Live”. It is a unifying idea that the City can get behind. A person cannot donate to all of them but he learned a lot about non-profits in the town that he was not aware of. There are a few that apply to the City, the Archway Foundation, the White Water Park, Yanney and Heritage Park and Veterans First.

Council Member Lammers thanked the citizens of Kearney for the opportunity to serve another four years; he appreciates it very much and will do the best job for them. December 9, 2014 Page 29

Council Member Buschkoetter thanked the citizens also. He looks forward to the opportunity to serve another four years and grateful for the opportunity to do that. They look back at the last four years and look forward to the next four years and excited about the direction the City is heading and for the opportunity to be part of the team because it is an absolute team effort.

VIII. ADJOURN

Moved by Lear seconded by Buschkoetter that Council adjourn at 6:23 p.m. Roll call resulted as follows: Aye: Buschkoetter, Lear, Nikkila, Lammers. Nay: None. Clouse absent. Motion carried.

ATTEST: RANDY BUSCHKOETTER VICE-PRESIDENT OF THE COUNCIL

MICHAELLE E. TREMBLY CITY CLERK PS PERSONNEL SERVICES Claims SMCS SUPPLIES, MATERIALS, AND CONTRACTUAL SERVICES December 23, 2014 ER EQUIPMENT RENTAL Page 1 CO CAPITAL OUTLAY DS DEBT SERVICE

Vendor Amount Purpose Vendor Amount Purpose 4Imprint $569.69 smcs Cenex $19.46 smcs A-1 Refrigeration $1,701.75 smcs Center Point Publishing $123.05 smcs AAA Tarps $217.35 smcs Central Contracting $2,188.00 smcs Ace Hardware $156.43 smcs Central Hydraulics $2,519.27 smcs Affordable Plumbing $75.00 co Central NE Bobcat $6,198.03 smcs AFJ Multimedia $30.00 smcs Centurion Technologies $531.00 smcs Agri Coop $186.91 smcs Charter $904.26 smcs Alamar Uniforms $114.13 ps ChemSearch $1,712.47 smcs Albrecht, Helen $199.50 smcs Chesterman $243.25 smcs Alertshirt $1,330.90 smcs Chicken Coop $50.00 smcs All Makes Auto $2,028.71 smcs Cintas $234.62 smcs Allied Electronics $582.47 smcs City of Kearney $13,437.90 smcs,ps Ally B Designs $635.00 smcs,co Coast to Coast $555.25 smcs Amazon $3,755.13 smcs,co Coldspring $225.90 smcs American $274.41 smcs Compasscom $50.00 smcs American First Aid $254.64 smcs Conseco Life $19.00 ps American Public Works $876.00 smcs Consolidated Mgmt $176.50 smcs Amsan $1,308.73 smcs Construction Rental $650.14 smcs Arch, the $75,000.00 smcs Copycat $432.91 smcs ARFF Working Group $95.00 smcs Cracker Barrel $991.33 smcs Arrowhead Scientific $418.24 smcs Crossroads Ford $68.04 smcs Arvato Windows $299.97 co Cullen, Martin $18.72 smcs Ask Supply $1,896.08 smcs Cummins Central Power $411.97 smcs Aurora Coop $177.64 smcs Danko Emergency $1,736.01 smcs,co Baker & Taylor $6,367.55 smcs Dawson Public Power $21,455.97 smcs Baughman, Jeff $58.94 smcs Daylight Donuts $49.70 smcs Biggs, Chad $16.02 smcs Dell $14,571.93 smcs,co Bill's Trailer Sales $6,895.00 co Demco $74.42 smcs Blackburn Manufacturing $765.68 smcs Depository Trust Co. $1,206,210.19 ds Blinds.com $247.95 smcs Deshaun Hill Harvard $1.00 smcs BlueCross/BlueShield $191,895.96 smcs DHHS Online Licensing $150.00 smcs Bond, Sharon $43.43 smcs Dish $174.00 smcs Books Galore $560.64 smcs Dmilaco $623.96 smcs Bosselman $7,119.47 smcs Dollar General $14.45 smcs Breakfast Cart $468.16 smcs Dutton-Lainson $29.20 smcs Broadfoots $100.00 smcs Eakes $3,234.43 smcs Buffalo Co Treasurer $40.00 co Eileen's Cookies $25.50 smcs Buffalo Co Hwy Dept $5.00 smcs EMC Insurance $5,294.20 smcs Buffalo Outdoor Power $9,881.29 smcs,co Evers, Becki $292.50 smcs Buffalo Co Historical Soc $63.00 smcs Exhaust Pros $310.00 smcs Builders $1,962.27 smcs, co Experts Exchange $149.95 smcs Cabela's $318.73 smcs Fairbanks $944.57 smcs Capital Business Systems $146.60 smcs Fast Mart $77.03 smcs Carquest $1,694.31 smcs Fastenal $1,271.66 smcs Casey's $134.77 smcs Fedex $99.22 smcs Cash Wa $718.21 smcs,ps Felsburg Holt & Ullevig $814.88 smcs CDW Government $1,208.92 co Fire Engineering $67.00 smcs PS PERSONNEL SERVICES Claims SMCS SUPPLIES, MATERIALS, AND CONTRACTUAL SERVICES December 23, 2014 ER EQUIPMENT RENTAL Page 2 CO CAPITAL OUTLAY DS DEBT SERVICE

Fireguard $305.91 smcs Kearney Chamber Comm $375.00 smcs Firehouse Cygnus $44.95 smcs Kearney Clinic $2,027.00 ps Foley Belsaw Institute $167.90 smcs Kearney Concrete $3,238.23 smcs,co Foltz, Mary $28.77 smcs Kearney Crete & Block $57.66 co Friesen Chevrolet $1,784.98 smcs Kearney Hub $8,284.00 smcs Frontier $9,278.09 smcs Kearney Humane Society $7,166.25 smcs Fuel Tech $871.55 smcs Kearney Power Sports $1,304.88 smcs Fun Express $68.12 smcs Kearney Public Schools $2,994.00 smcs Furry, Harlan $690.46 smcs Kearney Quality $6.00 smcs Fyr-Tek $841.25 smcs Kearney Storytelling $300.00 smcs Gale $1,061.96 smcs Kearney Warehouse $1,042.17 smcs Galeton Gloves $678.30 smcs Kearney Winlectric $502.61 smcs Galls $125.98 co Kelly Supply $1,021.83 smcs Garrett Tires $5,165.03 smcs KHGI-TV $1,755.00 smcs Gempler $446.95 smcs Killion Motors $303.84 smcs Glock $170.00 smcs Kmart $41.27 smcs Goodner, Don $100.00 smcs Konica Minolta $859.19 smcs GPM $554.95 smcs Kowalek, Gabriel $17.50 smcs Graham Tire $864.60 smcs Kriha Fluid Power $74.08 smcs Grainger $523.27 smcs Landmark Implement $1,432.25 smcs Guevara, Diana $11.76 smcs Lawson Products $353.66 smcs H & H Distributing $18.02 smcs Lincoln Winwater Works $1,487.18 smcs Harshbarger, Kyle $834.05 smcs LogIn/IACP Net $1,100.00 smcs HD Supply $7,757.52 smcs Mail Express $7,557.60 smcs Heartland Strategy $5,000.00 smcs Marcontell, Curtis $33.78 smcs Hinrichs Photography $150.00 smcs Marlatt Machine Shop $613.93 smcs Hobby-Lobby $452.66 smcs Marsh, Melissa $200.00 smcs Hoff, Stephen $72.00 smcs Matheson $261.23 smcs Holmes Plumbing $317.84 smcs McCarty, Doug $36.83 smcs Hometown Leasing $279.21 smcs Menards $4,451.17 smcs Hotsy Equipment $292.46 smcs Michael Todd $1,698.78 smcs House of Cards $250.26 ps Mid-NE Garage Doors $385.00 smcs ICMA Retirement $4,167.62 ps Midway Chrysler $69.95 smcs Infogroup $2,968.00 smcs Midwest Laboratories $2,215.00 smcs Int'l Code Council $87.50 smcs Midwest Pump & Equip $1,315.39 smcs IPMA $418.00 smcs Midwest Turf $763.11 smcs IRS $153,157.51 ps Miller & Associates $130,410.00 smcs,co Jack Lederman $319.22 smcs Miller, Robert $1,890.00 smcs Janssen, Ruth $145.00 smcs Mindmixer.com $250.00 smcs JCB Enterprises $58.50 smcs Mirror Image $236.90 smcs Jibjab.com $18.00 smcs Monoprice $402.62 co John Deere Landscapes $74.78 smcs Moonlight Embroidery $1,560.00 smcs Johnson Controls $110.72 smcs Mueller, Joanell $624.00 smcs Johnstone Supply $448.35 smcs Municipal Supply $2,779.11 smcs Jrs Western $139.96 smcs Mycreativeshop.com $19.95 smcs K&K Parts $1,405.03 smcs Navigator Motorcoaches $350.00 smcs Kart-Man $998.11 smcs NCS Equipment $195.60 smcs Kearney Area Storytelling $600.00 smcs NE Child Support $2,732.58 ps PS PERSONNEL SERVICES Claims SMCS SUPPLIES, MATERIALS, AND CONTRACTUAL SERVICES December 23, 2014 ER EQUIPMENT RENTAL Page 3 CO CAPITAL OUTLAY DS DEBT SERVICE

NE Dept of Revenue $44,071.94 smcs RNDC-Falcon $404.90 smcs NE Environmental $422.35 smcs Roper's Radiator $80.00 smcs NE League Municipalities $409.00 smcs Rug Doctor $984.23 smcs NE Machinery $148.91 smcs S.A.F.E. Center $2,204.20 smcs NE Safety & Fire $345.00 smcs Sahling Kenworth $20.73 smcs NE Secretary of State $6.50 smcs Salter, Josh $308.36 smcs NE State Board Landscape $170.00 smcs Saltzgaber, Scott $60.70 smcs NE State Fire Marshall $480.00 smcs Sanitation Products $714.04 smcs NE State Library $105.25 smcs Sapp Brothers $21,732.50 smcs NE Truck Center $995.92 smcs School District 7 $3,837.90 smcs NE Turfgrass $298.00 smcs Schriner, Steve $100.00 smcs Neil, Judy $11.70 smcs Sears $53.00 smcs Newman Signs $65.40 smcs See Clear Cleaning $350.00 smcs North Central Air $29.00 smcs Select Sprayers $34.68 smcs Northern Safety $110.61 smcs Seton Identification $233.07 co Northwestern Energy $12,163.47 smcs Sherwin Williams $146.20 smcs NRG Media $2,234.00 smcs Shoplet.com $193.85 smcs OCLC $607.10 smcs Sirchie Finger Print Lab $395.64 smcs Office Max $2,053.58 smcs,co Sixel Consulting $20,082.78 smcs O'Hara Lindsay $2,002.24 smcs Slimdown $92.69 smcs One Call Concepts $272.00 smcs Smartsoft $411.96 co O'Reilly Auto $622.52 smcs Smeal Fire Apparatus $502,993.00 co Orscheln $655.41 smcs Snap-On Tools $2,395.00 smcs Oshkosh Corp. $137.21 smcs Sport Supply $350.64 smcs Paper and More $25.97 smcs Sportsmart.com $535.50 smcs Paramount $232.23 smcs Stamps.com $4.99 smcs Party America $8.97 smcs Staples $420.23 smcs Paypal $5,135.51 co State Electrical Division $96.00 smcs Pilot $217.67 smcs Steinbrink Landscaping $108.75 smcs Pioneer Industrial Corp $2,455.54 smcs Sterling Distributing $822.98 smcs Platte Valley Comm $2,770.56 smcs,co Sunmart $54.75 smcs Postage Refill $900.00 smcs Sutphen Corporation $45.20 smcs Presenta Plaque $117.87 ps Target $32.14 smcs Prestige Group $244.00 smcs Techsoup $8.00 co Presto-X $566.19 smcs Thompson Co $65.54 smcs PRIMA $385.00 smcs Thomson Reuters-West $277.08 smcs Provantage $2,450.44 smcs,co Tighton Tool $19,733.00 co Qisoft $1,562.00 smcs Titan Machinery $3,370.62 smcs Quality Craft Tools $120.00 smcs TM Sporting Goods $42.78 smcs Quill $1,123.00 smcs Tool Doctor $32.00 smcs RDO Truck Center $376.95 smcs Tractor-Supply $1,026.58 smcs Ready Mixed Concrete $4,914.60 smcs,co Trade Well Pallet $1,575.00 smcs Recognition Unlimited $746.45 ps Tye Law Firm $12,012.38 smcs,ps Recorded Books $365.15 smcs Underground Construction $585.00 smcs Redman's Shoes $404.67 smcs Union Bank & Trust $67,635.15 ps Reinke's Refrigeration $1,615.07 smcs Unique Management $250.60 smcs Rheome Tree $2,120.00 smcs University of NE at Kearney $3,000.00 smcs RNDC-Eagle $335.70 smcs UNL Marketplace $66.39 smcs PS PERSONNEL SERVICES Claims SMCS SUPPLIES, MATERIALS, AND CONTRACTUAL SERVICES December 23, 2014 ER EQUIPMENT RENTAL Page 4 CO CAPITAL OUTLAY DS DEBT SERVICE

UPS $135.14 smcs USA Blue Book $534.81 smcs USA Communications $189.32 smcs USPS $358.98 smcs Verizon $773.22 smcs Vermont Systems $1,137.12 smcs Vessco $5,000.00 smcs Wal-Mart $897.11 smcs Walters Electric $500.00 smcs Watchguard Video $55.00 co Wearguard $131.07 smcs Weller, Boyd $554.05 smcs Wilke's True Value $147.64 smcs Winchester, Susan $77.04 smcs Witmer Public Safety $902.33 smcs,co WPCI $160.50 ps Zazzle $104.03 smcs Zimmerman Printing $761.98 smcs

COUNCIL AGENDA MEMO

ITEM NO. IV - #4

FROM: Wendell Wessels, Director of Finance

MEETING: December 23, 2014

SUBJECT: Special Assessment Interest/Developer Reimbursements

PRESENTER: No Presenter – Consent Agenda

Discussion:

The attached resolution will set the special assessment interest rate for 2015. Section 57- 102(A) of the Kearney City Code requires that the special assessment interest rate be set at a rate two percent above the estimated interest rate of the bonds issued for the project, therefore, the estimated interest rate for 2015 is 5.0%. The interest rate is based on actual interest rates received on 2014 bond issues. The resolution also sets the installment schedule for special assessments.

The attached resolution also establishes the unit prices that will be used by the City Engineer to calculate reimbursements, if any, to developers who chose to use Developer Constructed Infrastructure Agreements. Section 9-1310 of the Kearney City Code requires the City Council to annually approve unit prices that will be used by the City Engineer to calculate infrastructure reimbursements to developers for the upcoming calendar year.

Fiscal Note:

The City of Kearney will pay for infrastructure costs considered the responsibility of the City pursuant to paragraphs 1, 2, 3, and 4 of Section 57-103(B) of the Kearney City Code regardless if the Developer choses to use the Developer Constructed Infrastructure Agreement or the Improvement District process.

Recommended Action:

Staff recommends the approval of the attached resolution.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-247

BE IT RESOLVED BY THE PRESIDENT AND COUNCIL OF THE CITY OF KEARNEY, NEBRASKA:

Section 1. Streets that have been improved by paving, curbing and guttering and incidental work, and/or the installation of water mains, and/or the installation of sanitary sewer mains shall be assessed to lots and parcels of ground where specially benefited by said improvements and the total amount of said special assessments does not exceed the costs of said improvements exclusive of the cost of the intersections and areas formed by the crossing of streets, avenues and alleys as heretofore determined by the Mayor and City Council. Section 2. All special assessments provided for by the laws of the state shall become due fifty (50) days after the date of levy and may be paid within that time without interest, but if not so paid, each installment, except the first, shall draw interest at the rate of 5.0 per centum per annum from the date the Board of Equalization convened until the same become delinquent. This interest rate is effective for the 2015 calendar year. Section 3. Such assessments shall become delinquent in equal annual installments as follows: Paving Water Sanitary Sewer 1/10th fifty days after date of 1/5th fifty days after date of 1/5th fifty days after date of Board of Equalization Board of Equalization Board of Equalization 1/10th one year after date of 1/5th one year after date of 1/5th one year after date of Board of Equalization Board of Equalization Board of Equalization 1/10th two year after date of 1/5th two year after date of 1/5th two year after date of Board of Equalization Board of Equalization Board of Equalization 1/10th three year after date of 1/5th three year after date of 1/5th three year after date of Board of Equalization Board of Equalization Board of Equalization 1/10th four year after date of 1/5th four year after date of 1/5th four year after date of Board of Equalization Board of Equalization Board of Equalization 1/10th five year after date of Board of Equalization 1/10th six year after date of Board of Equalization 1/10th seven year after date of Board of Equalization 1/10th eight year after date of Board of Equalization 1/10th nine year after date of Board of Equalization Resolution No. 2014-247 Page 2

Such assessments shall become delinquent in equal annual installments over such period of years as set forth above. Delinquent installments shall bear interest at the rate specified in Section 45-104.01 of the Nebraska Revised Statutes, which is currently set at fourteen percent, and such rate may from time to time be adjusted by the Legislature, until paid and shall be collected in the usual manner for the collection of general taxes and shall be subject to the same penalties. Section 4. Pursuant to Section 9-1310 of the Kearney City Code, the City will reimburse Developers for infrastructure costs considered the responsibility of the City as outlined in paragraphs 1, 2, 3, and 4 of Section 57-103(B) of the Kearney City Code based on the most recent unit price bids received by the City, and approved by the City Council, for similar projects. The attached schedule of unit price bids is hereby approved by the City Council and shall be used by the City Engineer to calculate infrastructure reimbursements to Developers for qualified Developer Constructed Infrastructure Agreements approved by the City Council during the 2015 calendar year. Developers will not be reimbursed for infrastructure items not included on the attached schedule of unit price bids. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

COUNCIL AGENDA MEMO

ITEM NO. IV - #5

FROM: Wendell Wessels, Director of Finance

MEETING: December 23, 2014

SUBJECT: Amendment to the Money Accumulation Plan for Employees of the City of Kearney

PRESENTER: None – Consent Agenda

Discussion:

The attached Amendment to the Money Accumulation Plan for Employees of the City of Kearney simply changes the “Entry Date” to the first day that an employee is employed by the City of Kearney from the current “Entry Date” which is the first day of the month following the hire date. This Amendment amends the Plan to match the current practice of the City. It is also less complicated using the hire date instead of the first day of the month following the hire date as the Plan “Entry Date”.

Fiscal Note:

There is no financial consideration regarding this matter.

Recommended Action:

Staff recommends approval the attached resolution authorizing the Mayor and other appropriate officers of the City of Kearney to execute any document or amendment necessary to amend and administer the Plan.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-248

Adoption of Amendment to Money Accumulation Plan for Employees of the City of Kearney

BE IT RESOLVED by the Mayor and Council of the City of Kearney, Nebraska that in order to conform the terms of the Plan with respect to the effective date of participation by eligible employees, the Plan shall be, and it hereby is, amended in the form of the Amendment document submitted at this meeting and by this reference made a part of this resolution. BE IT FURTHER RESOLVED that the Mayor and other appropriate elected officials and officers of the City of Kearney shall be, and they hereby are, authorized to do any and all things necessary to carry out and accomplish the foregoing Resolution, including the execution of the above-referenced Amendment to the Money Accumulation Plan for Employees of the City of Kearney, including such actions as may be necessary or appropriate to achieve and maintain tax qualification of the aforesaid Plan under Section 401(a) of the Internal Revenue Code of 1986, as amended. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

AMENDMENT TO THE MONEY ACCUMULATION PLAN FOR EMPLOYEES OF THE CITY OF KEARNEY

The Money Accumulation Plan for Employees of the City of Kearney (the “Plan”), as amended and restated effective January 1, 2015, is hereby further amended to conform the terms of the Plan to the consistent and uniformed applied entry date for participation.

I.

Section 1.12 of the Plan is hereby amended and replaced in its entirety to provide as follows:

"Section 1.12 "Entry Date" means the first day that an Employee is employed in a covered Employment Classification and has performed an Hour of Service for the Employer."

II.

The foregoing amendment to the Plan shall supersede the existing provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. The remaining terms and provisions of the Plan are hereby confirmed and ratified in all respects except insofar as the foregoing provisions of this Amendment amend the same.

IN WITNESS WHEREOF, the City of Kearney, Nebraska, as Employer, has caused this Amendment to the Plan to be executed by its duly authorized official, and the Trustee has caused this Amendment to be executed this ______day of ______, 20___.

THE CITY OF KEARNEY, NEBRASKA, Employer

By: ______OfficialTitle: ______

UNION BANK AND TRUST COMPANY, Trustee

By: ______Its: ______

DOCS/1349978.1

1

COUNCIL AGENDA MEMO

ITEM NO. IV - #6

FROM: Wendell Wessels, Director of Finance

MEETING: December 23, 2014

SUBJECT: Renewal of Agricultural Leases

PRESENTER: No Presenter – Consent Agenda

Discussion:

The City has leased Airport-owned farm ground to several local farmers dating back to the early 1980’s. Originally, the Kearney Regional Airport was responsible for the production of all farm lands which included providing manpower and machinery. The farm lands are leased locally to farmers saving the Airport money in overhead costs and establishing business relationships within the community.

The City has prepared the following Agricultural Leases with the following area farmers which will from January 1, 2015 through December 31, 2015:

 David R. Fleming (364.36 non-irrigated acres) – annual cash rent is $40,080;  David R. Fleming (276 irrigated acres) – annual cash rent is $72,222;  Gary Henderson (38 irrigated acres) – annual cash rent is $9,501;  Don Hendrickson, dba Agrident, Inc. (193.5 irrigated acres) – annual cash rent is $48,375;  Ron Hendrickson, dba Agrident, Inc. (75 acres dry land hay) – annual cash rent is $4,500;  Lee Potter (62 irrigated acres) – annual cash rent is $15,501;

In previous years, the City leased farm ground to Bendfeldt Farms and Tom and Ted Larsen. This land will be used for the new baseball/softball complex and the new Central Nebraska Veterans Home.

Fiscal Note:

The 2015 cash rent rates for airport farmland leases is based on the average cash rental rates for the Central District according to the UNL Department of Agriculture Economics Report No. 194 dated June 2014. The cash rental rate for center pivot irrigated cropland is $260/acre, gravity irrigated cropland is $250/acre, dryland cropland is $110/acre, and hay land is $60/acre.

The above Agriculture Leases will generate $190,179 of revenue in 2015 which will be used to operate the Kearney Regional Airport. This is a decrease from 2014 of $2,849.

Recommended Action:

Staff recommends adoption of the attached resolution approving the Ag Leases as set forth above for 2015.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-249

BE IT RESOLVED by the President and Council of the City of Kearney, Nebraska, that the President be and is hereby authorized and directed on behalf of the City of Kearney, Nebraska to execute the following Agriculture Lease Agreements on property located at the Kearney Regional Airport from January 1, 2015 until December 31, 2015:  David R. Fleming (364.36 non-irrigated acres) – annual cash rent is $40,080;

 David R. Fleming (276 irrigated acres) – annual cash rent is $77,222;

 Gary Henderson (38 irrigated acres) – annual cash rent is $9,501;

 Don Hendrickson, dba Agrident, Inc. (193.5 irrigated acres) – annual cash rent is $48,375;

 Ron Hendrickson, dba Agrident, Inc. (75 acres dry land hay) – annual cash rent is $4,500;

 Lee Potter (62 irrigated acres) – annual cash rent is $15,501;

A copy of the Agreements, marked Exhibits “1”, “2”, “3”, “4”, “5”, “6” are attached hereto and made a part hereof by reference. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and David R. Fleming, hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION OF FARM: LESSOR hereby leases to LESSEE 364.36 acres, more or less, of non-irrigated cropland, all in Buffalo County, Nebraska, located as follows: Parts of the Northeast Quarter and the Southeast Quarter of Section 21, Township 9 North, Range 15 West, parts of the Northwest Quarter, the Northeast Quarter and Southwest Quarter of Section 27, Township 9 North, Range 15 West, all lands located in Buffalo County, Nebraska as further shown on Exhibit “A” attached hereto and made a part hereof.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERMS: The term of this Lease shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. CROPPING PLAN: Land can be planted to corn, milo, soybeans, alfalfa or small grains. LESSEE shall secure approval from the Airport Manager before planting anything other than these crops.

5. RENTAL TERMS: LESSEE agrees to pay LESSOR annual cash rent in the amount of $40,080.00 due and payable as follows:

$13,360.00 due on March 1, 2015 $13,360.00 due on July 1, 2015 $13,360.00 due on November 1, 2015

6. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

7. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs,

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including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells, replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

8. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

9. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

10. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

11. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

12. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. Pasturing of cornstalks is allowed only in fields; Pivot 2, Fields 10, 11 and 12, Pivot 1 and Field 7. LESSEE agrees to use adequate electric fencing and take every precaution to prevent livestock straying from these fields. Due to the potential hazard to aviation, pasturing of any kind is not allowed in any of the other fields. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the

David R. Fleming (#1) 2015 2 of 8 approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

13. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops.

14. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

15. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

16. NON-DISCRIMINATION: LESSEE for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. LESSEE for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the ground of, race, color, or

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national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the LESSEE shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964), Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. That in the event of breach of any of the above non-discrimination covenants, LESSOR shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued.

17. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the end of the North/South Runway (18/36), or within 300 feet of the centerline or within 800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

18. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re-leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers

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of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

19. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

20. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

21. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as

David R. Fleming (#1) 2015 5 of 8 attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

22. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

23. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the

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United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

24. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements () Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

25. NOTICES: Whenever any notice or payment is required by this agreement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

David R. Fleming 4115 Avenue G Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

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CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A. Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: David R. Fleming, LESSEE

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CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and David R. Fleming, hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION OF FARM: LESSOR hereby leases to LESSEE 276 acres, more or less, of irrigated cropland (216 acres for gravity irrigated land at $253 per acre and 60 acres of pivot irrigated land at $288.75 per acre) all located in Buffalo County, Nebraska as follows: Fields 4 and 5 both located in part of the Northeast Quarter and in part of the Northwest Quarter of Section 22, Township 9 North, Range 15 West; Field 6 located in the Southwest Quarter of Section 15, Township 9 North, Range 15 West, also in part of the Northwest Quarter of Section 22, Township 9 North, Range 15 West; also in part of the Southeast Quarter of Section 16, Township 9 North, Range 15 West, and also in part of the Northeast Quarter of Section 21, Township 9 North, Range 15 West; Field 9 located in the North Half of the Northeast Quarter of Section 21, Township 9 North, Range 15 West, all lands located in Buffalo County, Nebraska as further shown on Exhibit “A” attached hereto and made a part hereof.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERM FOR 216 ACRES OF GRAVITY IRRIGATED LAND: The term of this Lease for the 216 acres of gravity irrigated land shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. RENTAL TERM FOR 216 ACRES OF GRAVITY IRRIGATED LAND: LESSEE agrees to pay LESSOR annual cash rent in the amount of $54,030.00 due and payable as follows:

$18,010.00 due on March 1, 2015 $18,010.00 due on July 1, 2015 $18,010.00 due on November 1, 2015

5. TERM FOR 60 ACRES OF PIVOT IRRIGATED LAND: LESSOR hereby further agrees to lease the 60 irrigated acres to LESSEE under the tenant-owned pivot irrigation system owned by David Fleming located in the Northeast Quarter of Section 22, Township 9 North, Range 15 West, Buffalo County, Nebraska shall be for a term of five (5) years but not later than December 31, 2017. LESSEE shall incur all expenses to the pivot system.

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The rate of $275 per acre shall remain in effect until December 30, 2013 at which time and at each yearly interval thereafter beginning January 1, 2014, LESSOR shall increase the rate five percent (5%).

6. RENTAL TERM FOR 60 ACRES OF PIVOT IRRIGATED LAND: LESSEE agrees to pay LESSOR annual cash rent in the amount of $18,192 .00 due and payable as follows:

$6,064.00 due on March 1, 2015 $6,064.00 due on July 1, 2015 $6,064.00 due on November 1, 2015

7. CROPPING PLAN: Land can be planted to corn, milo, soybeans, alfalfa or small grains. LESSEE shall secure approval from the Airport Manager before planting anything other than these crops.

8. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

9. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs, including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells, replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

10. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

11. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

12. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

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13. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

14. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. Pasturing of cornstalks is allowed only in fields; Pivot 2, Fields 10, 11 and 12, Pivot 1 and Field 7. LESSEE agrees to use adequate electric fencing and take every precaution to prevent livestock straying from these fields. Due to the potential hazard to aviation, pasturing of any kind is not allowed in any of the other fields. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

15. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops. The parties agree that the center pivot system located on the property is owned by LESSEE and LESSEE agrees to remove the pivot from the property when he vacates.

16. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the

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commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

17. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

18. NON-DISCRIMINATION: LESSEE for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. LESSEE for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the ground of, race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the LESSEE shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964), Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. That in the event of breach of any of the above non-discrimination covenants, LESSOR shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued.

19. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the end of the North/South Runway (18/36), or within 300 feet of the centerline or within

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800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

20. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re-leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

21. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

22. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of

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LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

23. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

24. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42

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U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

25. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

26. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status

David R. Fleming (#2) 2015 7 of 8 of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

27. NOTICES: Whenever any notice or payment is required by this agreement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

David R. Fleming 4115 Avenue G Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A. Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: David R. Fleming, LESSEE

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CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and Gary Henderson, hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION OF FARM: LESSOR hereby leases to LESSEE 38 acres, more or less, of irrigated cropland, all in Buffalo County, Nebraska, located as follows: Part of the North Half of the Southwest Quarter and in the South Half of the Northwest Quarter of Section 28, Township 9 North, Range 15 West, also described as Field 14, located in Buffalo County, Nebraska as further shown on Exhibit “A” attached hereto and made a part hereof.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERMS: The term of this Lease shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. CROPPING PLAN: Land can be planted to corn, milo, soybeans, alfalfa or small grains. LESSEE shall secure approval from the Airport Manager before planting anything other than these crops.

5. RENTAL TERMS: LESSEE agrees to pay LESSOR annual cash rent in the amount of $9,501.00 due and payable as follows:

$3,167.00 due on March 1, 2015 $3,167.00 due on July 1, 2015 $3,167.00 due on November 1, 2015

6. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

7. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs, including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells, replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to

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the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

8. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

9. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

10. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

11. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

12. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. Pasturing of cornstalks is allowed only in fields; Pivot 2, Fields 10, 11 and 12, Pivot 1 and Field 7. LESSEE agrees to use adequate electric fencing and take every precaution to prevent livestock straying from these fields. Due to the potential hazard to aviation, pasturing of any kind is not allowed in any of the other fields. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

13. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire

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excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops.

14. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

15. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

16. NON-DISCRIMINATION: LESSEE for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. LESSEE for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the ground of, race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the LESSEE shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964), Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. That in the event of breach of any of the above non-discrimination covenants, LESSOR shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued.

17. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the

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end of the North/South Runway (18/36), or within 300 feet of the centerline or within 800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

18. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re- leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

19. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

20. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the

Gary Henderson 2015 4 of 7 personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

21. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

22. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use,

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generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

23. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

24. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

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25. NOTICES: Whenever any notice or payment is required by this agreement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

Gary Henderson 9375 Cherry Avenue Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A. Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: Gary Henderson, LESSEE

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CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and Donald D. Hendrickson, dba Agrident, Inc., hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION OF FARM: LESSOR hereby leases to LESSEE 193.5 acres, more or less, of irrigated cropland described as Field #3 consisting of 100.19 acres of irrigated cropland located in part of the Southwest Quarter of Section 23, Township 9 North, Range 15 West and in part of the Northwest Quarter of Section 26, Township 9 North, Range 15 West; Field #3A consisting of 50.98 acres of irrigated cropland located in part of the Southeast Quarter of Section 22, Township 9 North, Range 15 West; Field #2 consisting of 42.33 acres of irrigated cropland located in the Northeast Quarter of Section 27, Township 9 North, Range 15 West, all lands located in Buffalo County, Nebraska as shown further on Exhibit “A” attached hereto and made a part hereof.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERMS: The term of this Lease shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. CROPPING PLAN: Land can be planted to corn, milo, soybeans, alfalfa or small grains. LESSEE shall secure approval from the Airport Manager before planting anything other than these crops.

5. RENTAL TERMS: LESSEE agrees to pay LESSOR annual cash rent in the amount of $48,375.00 due and payable as follows:

$16,125.00 due on March 1, 2015 $16,125.00 due on July 1, 2015 $16,125.00 due on November 1, 2015

6. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

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7. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs, including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells, replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

8. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

9. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

10. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

11. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

12. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further

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agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

13. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops.

14. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

15. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

16. NON-DISCRIMINATION: LESSEE for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. LESSEE for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the ground of, race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the LESSEE

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shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964), Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. That in the event of breach of any of the above non-discrimination covenants, LESSOR shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued.

17. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the end of the North/South Runway (18/36), or within 300 feet of the centerline or within 800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

18. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re-leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the

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parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

19. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

20. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

21. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are

Don Hendrickson 2015 5 of 8 canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

22. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

23. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and

Don Hendrickson 2015 6 of 8 every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

24. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

25. NOTICES: Whenever any notice or payment is required by this agreement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

Donald D. Hendrickson dba Agrident, Inc. 7830 East 78th Street Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

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CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: Donald D. Hendrickson, LESSEE

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CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and Ron Hendrickson, dba Agrident, Inc. hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION: LESSOR hereby leases to LESSEE 75 acres, more or less, of dry land hay, all in Buffalo County, Nebraska, Tract 1 consisting of 40 acres located on each side of the fence in the Southwest Quarter of Section 27, Township 9 North, Range 15 West; Tract 2 consisting of 6 acres located in the Southeast Quarter of Section 27, Township 9 North, Range 15 West continuing in the Northeast Quarter of Section 27, Township 9 North, Range 15 West; Tract 3 consisting of 11 acres located in the Northeast Quarter of Section 27, Township 9 North, Range 15 West; Tracts 4 and 5 consisting of 17 acres located in the Northwest Quarter of Section 22, Township 9 North, Range 15 West continuing into the Northeast Quarter of Section 21, Township 9 North, Range 15 West.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERMS: The term of this Lease shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. CROPPING PLAN: Land can be put up as hay during the lease. No livestock may occupy the land at any time.

5. RENTAL TERMS: LESSEE agrees to pay LESSOR annual cash rent in the amount of $4,500.00 due and payable as follows:

$1,500.00 due on March 1, 2015 $1,500.00 due on July 1, 2015 $1,500.00 due on November 1, 2015

6. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

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7. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs, including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells, replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

8. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

9. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

10. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

11. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

12. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further

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agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

13. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops.

14. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

15. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

16. NON-DISCRIMINATION: LESSEE will not, on the grounds of race, color or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Office of the Secretary of Transportation. LESSOR reserves the right to take such action as the United States Government may direct to enforce this covenant.

17. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the end of the North/South Runway (18/36), or within 300 feet of the centerline or within 800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

18. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and

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storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re-leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

19. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

20. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county

Ron Hendrickson 2015 4 of 7 assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

21. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

22. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of

Ron Hendrickson 2015 5 of 7 this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

23. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

24. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

25. NOTICES: Whenever any notice or payment is required by this agreement to

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be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

Ron Hendrickson dba Agrident, Inc. 4845 East 92nd Street Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A. Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: Ron Hendrickson, LESSEE

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CITY OF KEARNEY, NEBRASKA Agriculture Lease

THIS LEASE made this 23rd day of December, 2014, between the City of Kearney, Nebraska, hereinafter called “LESSOR”, and Lee Potter, hereinafter called “LESSEE”, upon the terms and conditions following:

1. DESCRIPTION OF FARM: LESSOR hereby leases to LESSEE 62 acres, more or less, of irrigated cropland, located in the Southwest Quarter of Section 27, Township 9 North, Range 15 West of the 6th P.M., Buffalo County, Nebraska, also described as Field 1, Buffalo County, Nebraska as further shown on Exhibit “A” attached hereto and made a part hereof.

2. AUTHORITY: It is agreed that this Lease is under and by virtue of the terms and provisions of a quitclaim deed of the United States of America, Grantor, to the City of Kearney, Nebraska, Grantee, recorded in Book 151, Page 47, in the Deed records of Buffalo County, Nebraska, which deed is made a part of this Lease.

3. TERMS: The term of this Lease shall be for one (1) crop season, commencing January 1, 2015 to the completion of the 2015 harvest season but no later than December 31, 2015.

4. CROPPING PLAN: Land can be planted to corn, milo, soybeans, alfalfa or small grains. LESSEE shall secure approval from the Airport Manager before planting anything other than these crops.

5. RENTAL TERMS: LESSEE agrees to pay LESSOR annual cash rent in the amount of $15,501.00 due and payable as follows:

$5,167.00 due on March 1, 2015 $5,167.00 due on July 1, 2015 $5,167.00 due on November 1, 2015

6. LETTER OF CREDIT: LESSEE hereby agrees to tender to LESSOR, no later than February 1, 2015, an irrevocable letter of credit issued for an amount equivalent to one hundred percent (100%) of the annual rental required by Paragraph 5 above. The said letter of credit is to be continuing and valid for the entire duration of the term of the Lease. In the event of failure to make timely payment of rentals or other default on the part of LESSEE, LESSEE hereby agrees, consents and grants permission to LESSOR to make demand upon the issuing bank or lending authority for appropriate payments owed, and the issuing bank or lending authority is hereby authorized and directed to make payment to LESSOR.

7. EXPENSES: LESSEE agrees to pay all expenses concerning the production and marketing of the above crops. LESSEE agrees to pay all irrigation electrical costs, including fixed charges, and to maintain irrigation equipment in good condition and perform normal service and maintenance such as lubrication and drop oil for all wells,

Lee Potter 2015 1 of 8 replace broken slide gates and rubber gaskets in irrigation pipe, and repair flat tires on center pivots and on pipe trailers. During the term of the Lease, LESSEE agrees to pay for damage done by or due to the negligence of himself, his employees or others to irrigation equipment under his control. Damage done by wind, hail or other acts of God is excluded. Except for the aforementioned conditions, which are the expense of LESSEE, LESSOR agrees to pay for needed repairs to irrigation wells and equipment.

8. STOCKS: LESSEE agrees not to burn or remove any stocks from the farm.

9. WEEDS: LESSEE agrees to keep the premises free from weeds, including the adjoining fence lines and highways.

10. FALL PLOWING AND SEEDING: LESSEE agrees not to fall plow any land, plant any crop or prepare the land for planting any crop which would not mature until after the expiration of this Lease.

11. ASSIGNMENT: LESSEE agrees not to assign this Lease nor sublet said premises or improvements of any part thereof without the written consent of LESSOR, under penalty of forfeiture at the option of LESSOR. Should LESSEE be adjudicated bankrupt, or should this Lease be assigned by operation of law during the term thereof, LESSOR may declare a forfeiture of this Lease, and may re-enter and repossess the premises, without notice to LESSEE or his assignees and upon the exercise of such option all rights of LESSEE and of all persons claiming by, through or under him shall immediately cease and terminate.

12. CARE OF PREMISES: LESSEE agrees that he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this Lease, that he will keep any fences in repair, LESSOR agrees to furnish posts and wire therefore. Pasturing of cornstalks is allowed only in fields; Pivot 2, Fields 10, 11 and 12, Pivot 1 and Field 7. LESSEE agrees to use adequate electric fencing and take every precaution to prevent livestock straying from these fields. Due to the potential hazard to aviation, pasturing of any kind is not allowed in any of the other fields. LESSEE further agrees to cultivate the land in accordance with best farming practices and to maintain acceptable fertility levels of all fields. After harvest each year, the LESSEE agrees to have soil tests taken of each field, by an independent agency, and furnish a copy of the results to the Airport Manager. LESSEE agrees to correct any soil deficiencies that occur during his Lease. LESSEE agrees to close and lock all gates, which he uses, when the gates are not in use. LESSEE agrees to travel only in authorized areas and agrees not to interfere with or present a hazard to aviation. Any farm machinery and equipment, when not in use, shall be kept a minimum of 500 feet away from the centerline of the North/South Runway (18/36), a minimum of 300 feet away from the centerline of the Northwest/Southeast Runway (13/31), and a minimum of 100 feet away from the centerline of any taxiway. No equipment shall be left at the end of any runway in the approach to said runway. For winter storage of irrigation pipe, LESSEE agrees to tie down all stacks of pipe and pipe trailers to prevent wind damage. LESSEE further

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agrees to use Airport irrigation pipe and equipment only in irrigating Airport crop lands and no Airport irrigation equipment, pipe or pipe trailers shall be removed from the Airport premises.

13. SURRENDER POSSESSION: LESSEE agrees that he will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease to LESSOR in as good repair as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by LESSEE for work or expenses incurred preparing for subsequent crops.

14. REVOCATION OF LEASE: In the event that this Lease is revoked by action of the President of the United States as provided by the quitclaim deed aforementioned, LESSEE shall vacate the leased property, remove his property therefrom and restore the leased property to as good order and condition as that existing at the date of the commencement of this Lease within such time as designated by the President or his agent in such action or revocation. That in case of such revocation, LESSEE does surrender all rights he may have in and to growing crops or grass upon said premises and releases LESSOR from any liability because of said termination.

15. SUBJECT TO LEASES: This Lease is made subject to all present and future oil and gas leases upon the premises and is further subject to all the reservations and provisions of Section 581 of the Atomic Energy Act of 1946. The right to permit the erection of any structures upon the premises, signs or advertising is expressly reserved to LESSOR.

16. NON-DISCRIMINATION: LESSEE for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. LESSEE for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the ground of, race, color, or national origin, sex, age, and disability/handicap, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the LESSEE

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shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964), Title 23 Code of Federal Regulations, Part 200, Title VI Program and Related Statutes – Implementation and Review Procedures, and as said Regulations may be amended. That in the event of breach of any of the above non-discrimination covenants, LESSOR shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued.

17. CROP GROWTH RESTRICTIONS: No crops shall be grown and no farm machinery shall be operated within 500 feet of the centerline or within 1,100 feet from the end of the North/South Runway (18/36), or within 300 feet of the centerline or within 800 feet from the end of the Northwest/Southeast Runway (13/31), nor in such a way as to obstruct the line of sight from any point on a runway to any point on any other runway.

18. RIGHT OF ENTRY: LESSOR hereby reserves the right to enter upon said premises at all times by its officers, employees, agents or assigns for the purpose of viewing the same or for making repairs, alterations or improvements thereon, including the placement and construction of water wells or test wells and appurtenances including lines thereto, or for the purpose of taking soil samples, if necessary. LESSOR hereby reserves the right to enter upon said premises at all necessary times for, by and through its officers, employees, agents or assigns for the purpose of viewing, conducting preliminary preparations such as clearing ground, trenching, laying or constructing, operating, using, replacing, repairing and maintaining sanitary and storm sewers, waterlines or other public utilities, which are determined to be necessary in the sole judgment and determination of LESSOR. LESSOR further reserves a right of entry to repossess any portion of the leased premises upon determination by the governing body of LESSOR that it is necessary for the public interest and welfare to re-enter and repossess the premises for the purpose of re-leasing or selling the property. In the event that LESSOR does re-enter the property to construct and maintain any utility it shall, as soon as practicable after construction of the said utility or line, and after all subsequent alterations and repairs thereto, restore the leased property to a neat and presentable condition. In the event of re-entry for utility construction purposes or for a partial or complete repossession of the premises for public interest purposes, LESSOR shall pay fair and reasonable compensation to LESSEE for losses which LESSEE sustains as a result of the re-entry or repossession. In the event the parties are unable to negotiate a mutually acceptable damage value, each of the parties shall select one disinterested reputable citizen of Buffalo County and the two (2) persons thus chosen shall select a third person who shall also be a disinterested and reputable citizen of Kearney or Buffalo County; and the persons thus chosen and selected first being duly sworn are affirmed for such purpose, shall value and appraise the damages, which valuation and appraisal by the appraisers of any two (2) of them, shall be reduced to writing and signed in duplicate by all the said appraisers or any two (2) of them; and one (1) copy shall be delivered to each of the

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parties or their legal representatives within ten (10) days after the appointment of the appraisers. Such appraised value shall be conclusive on LESSOR and LESSEE. LESSOR shall give LESSEE notice by mail fifteen (15) days prior to re-entry for construction or repossession.

19. REPOSSESSION IN CASE OF DEFAULT: That in addition to all other remedies provided by law or contained herein, LESSOR may, at its option, upon the failure to perform any of the agreements of this Lease by LESSEE, without formal notice or demand, enter upon said premises and repossess the same thenceforth the same as though this Lease had never been in effect.

20. LIABILITY OF LESSOR: LESSEE agrees to indemnify and hold LESSOR and the City of Kearney, Nebraska, their officers, directors, agents or employees harmless from and against all liability of whatever nature, including claims, loss and damage to which LESSOR may be subject by reason of any acts, omissions, or negligence of LESSEE causing damage to persons or property, or both, in connection with LESSEE’S use and occupancy of the demised premises; the legal status or classification of LESSEE shall not nullify, block, or render ineffective the obligations set forth herein, which shall be preserved as the personal obligations of LESSEE, provided, however, that LESSEE shall not be liable for any damage, injury or loss solely caused by the negligence of LESSOR their officers, directors, agents or employees; and provided further, that LESSOR shall give to LESSEE reasonable notice of any claim made or suit instituted, and LESSEE shall have the right to compromise and defend the same. LESSOR, or any of its agencies, will hold harmless or indemnify any respondent for any liability whatsoever. Pursuant to Section 77-202.11 of the Nebraska Revised Statutes, as amended, the county assessor may determine that the property identified in this Lease is not being used for a public purpose. Therefore, as LESSEE, you will be required by the county assessor to pay the real estates taxes on the property for calendar year 2014 due in 2015. The statute provides that LESSOR shall not be obligated to pay the taxes upon failure of LESSEE to pay. LESSEE shall be considered an independent contractor for all purposes. LESSEE shall not be considered the agent or employee of LESSOR for any purpose and shall not hold itself out as such.

21. INSURANCE REQUIRED OF LESSEE: LESSEE, at the expense of LESSEE, shall keep in full force and effect during the term of this Agreement, workers compensation insurance, if applicable to LESSEE’S farming operation, and commercial general liability insurance for not less than one million dollars ($1,000,000.00) bodily injury and property damage liability per occurrence and in the aggregate. All policies or endorsements thereto shall name the City of Kearney, Nebraska as an "additional insured" on the general liability policy. This inclusion shall not make the City a partner or joint venture with the LESSEE in its operations herein. Upon approval by LESSOR of all insurance required, in the forms, kinds and amounts directed to be procured, LESSEE shall deliver all certificates of insurance and endorsements thereto to LESSOR for incorporation within this Agreement as attachments thereto. Such certificates of insurance shall state that LESSOR shall receive written advance notice of a minimum of thirty (30) days before policies are

Lee Potter 2015 5 of 8 canceled or are subject to cancellation. In any event, LESSEE is not to commence to exercise any of the rights and privileges granted under this Agreement until such time as all insurance directed and required to be furnished by LESSEE is in full force and effect. LESSEE hereby agrees that all policies provided shall include a waiver of subrogation in favor of the City of Kearney, Nebraska.

22. HAZARDOUS MATERIAL: LESSEE hereby covenants and agrees not to generate, manufacture, store or dispose of, on, under or about said property or transport to or from said property any flammable explosives, radioactive materials, hazardous wastes, toxic substance or related materials (hereinafter called hazardous materials) in a manner that violates any applicable federal, state or local law. Hazardous materials shall include but not be limited to substances defined as Hazardous substances, hazardous materials, or toxic substances in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; and those substances defined as hazardous or toxic in the States or municipalities codes or ordinances where said property is located, and in the regulations adopted and publications promulgated pursuant to said laws. Should LESSEE breach the foregoing covenant, LESSEE hereby agrees to indemnify and hold harmless Landlord, his employees, and agents, and any successors to Landlords interest in said property from and against any and all liability (i) including all foreseeable and all unforeseeable consequential damages, directly or indirectly arising out of the use, generation, storage or disposal of hazardous materials by LESSEE, their agents or employees, and (ii) including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, whether such actions is required or necessary prior to or following termination of this Lease, for any reason, to the full extent that such action is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of hazardous materials by any person on said property during possession of said property by LESSEE. The terms of this section shall not include or pertain to lawfully parked automobiles and other vehicles, which normally carry gasoline and other flammable liquids. This agreement herein shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of LESSOR and LESSEE.

23. RESTRICTIONS AGAINST POLLUTION OF WATER: In the interest of public health and sanitation and welfare, and so that the leased premises and all of the land in the same locality may be benefited by a decrease in the hazards of ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, LESSEE agrees not to engage in any use of the leased premises for any purpose that would result in the pollution of the environment or of any waterway or ground water that is located or flows through, adjacent to or under the leased premises by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials that pollute the air or water of the premises or otherwise impair the ecological balance of the surrounding lands in violation of the laws of Nebraska or the United States. LESSEE shall indemnify, defend and hold harmless LESSOR against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and

Lee Potter 2015 6 of 8 every kind whatsoever (including, without limitation, court costs and attorneys fees) which at any time or from time to time may be paid, incurred or suffered by, or asserted against LESSOR as a direct or indirect result of a breach by LESSEE of the foregoing covenants, to the extent caused by LESSEE or any agent, employee, invitee or licensee of LESSEE. The indemnification in this paragraph shall survive the termination of this Lease, and shall be binding upon LESSEE forever.

24. NEW EMPLOYEE WORK ELIGIBILITY STATUS: LESSEE is required and hereby agrees to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If LESSEE is an individual or sole proprietorship, the following applies: 1. The LESSEE must complete the United States Citizenship Attestation Form, available on the Department of Administrative Services website at www.das.state.ne.us. 2. If the LESSEE indicates on such attestation form that he or she is a qualified alien, the LESSEE agrees to provide the US Citizenship and Immigration Services documentation required to verify the LESSEE'S lawful presence in the United States using the Systematic Alien Verification for Entitlements (SAVE) Program. 3. The LESSEE understands and agrees that lawful presence in the United States is required and the LESSEE may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. §4-108.

25. NOTICES: Whenever any notice or payment is required by this agreement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail, addressed to:

City of Kearney, Nebraska Finance Department P.O. Box 1180 Kearney, NE 68848-1180 and notices, consents and approvals to LESSEE addressed to:

Lee Potter 6985 Antelope Avenue Kearney, NE 68847

IN WITNESS WHEREOF, the parties have hereunto, set their hands the day and year first above written.

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CITY OF KEARNEY, NEBRASKA, LESSOR ATTEST:

By: Stanley A. Clouse, President of Michaelle E. Trembly, City Clerk the Council and Ex-Officio Mayor

By: Lee Potter, LESSEE

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COUNCIL AGENDA MEMO

ITEM NO. IV - #7

FROM: Kirk Stocker, Director of Utilities

MEETING: December 23, 2014

SUBJECT: Hook Lift Truck

PRESENTER: No Presenter – Consent Agenda

Discussion:

In this year’s budget the Kearney Area Solid Waste Agency Division of the Utilities Department included $180,000 for the purchase of a new hook lift truck for use at the landfill.

On December 9, 2014 the City Clerk received bids for the hook lift truck. Eight bids were received. A bid tabulation sheet is attached for your review summarizing the bids and the compliance with major specifications of the truck and equipment being proposed.

The low bid meeting specifications was submitted by Nebraska Truck Center of Grand island, Nebraska in the amount of $158,098.00.

A bid tabulation sheet was sent to all bidders with a letter stating the intention of City staff to recommend the award of the bid to Nebraska Truck Center of Grand Island.

The existing hook lift truck, a 2002 Freightliner, will be kept and used as a standby truck.

Fiscal Note:

$180,000 was included in the 2014-2015 Budget. The low bid is $21,902.00 below budget.

Recommended Action:

Staff recommends awarding the bid for the Kearney Area Solid waste Agency’s purchase of a new hook lift truck to Nebraska Truck Center of Grand Island, Nebraska in the amount of $158,098.00.

We provide services, solutions, and opportunities for our community. 2013-2014 Automated Truck Bids

Bidder/Company Elliott Sanitation Equipment Hanson International - G.I. Midway Freightliner Midway Western Star Cab/Chassis Mfg Western Star 4700 SBA: $112,817 International 7600 $116,892 Freightliner 114SD $106,849 Western Star 4700SB $115,640 Hook Lift Swap Loader SL-545 $40,000 Swap Loader 545 $50,008 Stellar Slide 50 $36,423 Stellar Slide 50 $ 36,423 Autotarp RollRite DC 350 $7,839 Donovan OX $Included swap loader Stellar $ 8,148 Stellar $ 8,148 Total bid $160,656 $166,900 $151,420 $160,211 4.1 12.8 L 410 HP 1800 RPM Yes Detroit DD13 12.8L Yes - Navigator Yes-Detroit DD13 Yes-Detroit DD13 4.2 Governed speed 65 MPH Yes Yes Yes Yes 4.4 Heavy duty cooling system -34 Yes Yes Yes Yes 4.5 1,500 inch Aluminum Radiator Yes Yes Yes Yes 4.11 Shut down system oil/coolant Yes Yes Yes Yes 5.1 60 gallon fuel tank Yes 60 gal. alum. LH Yes Yes Yes 6.1 Allison HD 4500 RDS - PTO provision Yes Yes Yes Yes 6.2 Water to oil trans. Cooler Yes Yes Yes Yes 7.1 160 Amp Alternator Yes Yes Yes - Alliance Yes 7.2 3,375 CCA Batteries Yes (Alliance) No - 2, 775 CCA Yes Yes 7.4 1,500 watt block heater Yes (Phillips-Temro) Yes Yes Yes 8.1 Air Cab Yes Yes Yes Yes 8.4 Tilt/telescoping steering Yes Yes Yes Yes 8.15 Additional side wall insulation Yes Yes Yes Yes 8.17 Bale shut off valves Yes Yes Yes Yes 8.22 Flush mounted utility lights Yes No Yes Yes 13.1 18,000 lb set back front axle Yes Yes Yes Yes 14.1 18,000 lb flat leaf Yes Yes Yes Yes 15.1 46,000 pound tandem Yes - RT-46-160 Yes Yes Yes 15.2 Driver controlled traction differential Yes Yes Yes Yes 16.1 Airliner 46,000 rear suspension Yes Yes Yes Yes 16.2 Manual dump valve Yes Yes Yes Yes 17.1 Hendrickson 1300 lb. steerable pusher Yes - 13,200 lb Yes Yes Yes 18.1 →18.3 wheels/tires Yes - Accuride-Michelin Yes Yes Yes - 50,000 lb. 1.1 Hook 50,000 lb capacity Yes - 54,000 lb. Yes Yes - 50,000 lb. Yes 1.2 Dual lift cylinders Yes Yes Yes Yes 1.4 57 degree dump angle Yes Yes No - 51° No - 51° 1.5 Dual rear rollers Yes Yes Yes Yes 1.7 Telescopic Jib Yes Yes Yes Yes 1.8 Dual rear pivot Yes Yes Yes Yes 1.11 Dump cylinders - double acting Yes Yes Yes Yes 1.16 Dual control levers Yes Yes No - no outside controls No - no outside controls 1.1 Auto tarping system Yes Yes Yes Yes 1.2 Sliding pivots Yes Yes Yes Yes 2013-2014 Automated Truck Bids

Bidder/Company Nebraska Truck Center G.I. Nebraska Truck Center G.I. RDO Truck Center - Lex Wick's Truck Inc. Cab/Chassis Mfg Freightliner 114SD $110, 259 Western Star 4700 $116,855 Mack GU713 $132,057 Western Star SBA $112,817 Hook Lift Swap Loader SL-545 $40,000 Swap Loader SL-545 $40,000 Swap Loader 400 $ 43,847 Galbreath $ 44,085 Autotarp RollRite DC 350 $7,839 RollRite DC 350 $7,839 Pioneer $ 5,900 Pioneer 450 $ 8,562 Total bid $158,098 $164,694 $182,163 $165,464 4.1 12.8 L 410 HP 1800 RPM Yes Yes Yes - Mack MP8-415C Yes - Detroit DD 4.2 Governed speed 65 MPH Yes Yes Yes Yes 4.4 Heavy duty cooling system -34 Yes Yes Yes Yes 4.5 1,500 inch Aluminum Radiator Yes Yes Yes Yes 4.11 Shut down system oil/coolant Yes Yes Yes Yes 5.1 60 gallon fuel tank Yes Yes Yes Yes 6.1 Allison HD 4500 RDS - PTO provision Yes Yes Yes Yes 6.2 Water to oil trans. Cooler Yes Yes Yes Yes 7.1 160 Amp Alternator Yes Yes Yes Yes 7.2 3,375 CCA Batteries Yes Yes Yes Yes 7.4 1,500 watt block heater Yes Yes Yes Yes 8.1 Air Cab Yes Yes Yes Yes 8.4 Tilt/telescoping steering Yes Yes Yes Yes 8.15 Additional side wall insulation Yes Yes Yes Yes 8.17 Bale shut off valves Yes Yes Yes Yes 8.22 Flush mounted utility lights Yes Yes Yes Yes 13.1 18,000 lb set back front axle Yes Yes Yes Yes 14.1 18,000 lb flat leaf Yes Yes Yes Yes 15.1 46,000 pound tandem Yes Yes Yes Yes 15.2 Driver controlled traction differential Yes Yes Yes Yes 16.1 Airliner 46,000 rear suspension Yes Yes Yes Yes 16.2 Manual dump valve Yes Yes Yes Yes 17.1 Hendrickson 1300 lb. steerable pusher Yes Yes Yes Yes 18.1 →18.3 wheels/tires Yes Yes Yes Yes 1.1 Hook 50,000 lb capacity Yes - 54,000 lb. Yes - 54,000 lb. Yes - 54,000 lb. Yes 1.2 Dual lift cylinders Yes Yes Yes Yes 1.4 57 degree dump angle Yes Yes Yes No - 54° 1.5 Dual rear rollers Yes Yes Yes Yes 1.7 Telescopic Jib Yes Yes Yes No 1.8 Dual rear pivot Yes Yes Yes Yes 1.11 Dump cylinders - double acting Yes Yes Yes Yes 1.16 Dual control levers Yes Yes Yes Yes - Air operated 1.1 Auto tarping system Yes Yes Yes Yes 1.2 Sliding pivots Yes Yes Yes No

COUNCIL AGENDA MEMO

ITEM NO. IV - #8

FROM: Bruce Grupe, City Engineer

MEETING: December 23, 2014

SUBJECT: 2014 Part 2 Improvements

PRESENTER: No Presenter – Consent Agenda

Discussion:

On April 22, 2014 the City Council awarded the 2014 Part 2 Improvements in the amount of $2,474,168.95 to Blessing, LLC. for the construction of water, storm sewer and paving within the Central Avenue and 26th Street improvement project.

The contractor has submitted the sixth payment request in the amount of $92,861.32. Including this payment the contractor will have been paid $1,256,298.87 and is approximately 51 percent complete. The City’s engineer, Miller & Associates recommend approval of the pay request.

Fiscal Note:

Funds necessary to pay for the construction of these improvements have been included in this year’s budget.

Recommended Action:

Administration recommends adoption of the resolution approving the payment in the amount of $92,861.32 to Blessing, LLC.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-250

WHEREAS, Blessing, LLC of Kearney, Nebraska has performed services in connection with the 2014 Part 2 Improvements consisting of Paving Improvement District No. 2014-964 for Central Avenue from 31st Street to a point 150 feet south of 26th Street and 26th Street from Central Avenue to Avenue C, and the City's engineer, Miller & Associates, have filed with the City Clerk Application and Certificate for Payment No. 6 in the amount of $92,861.32 as shown on Exhibit “A” attached hereto and made a part hereof by reference and as follows:

Original Contract Sum $2,474,168.95 Change Order No. 1 (8-26-2014) + 17,375.00 Change Order No. 2 (11-25-2014) + 11,757.75 Contract Sum To Date 2,503,301.70 Gross Amount Due 1,395,884.30 Retainage (10%) 139,588.43 Amount Due to Date 1,256,295.87 Less Previous Certificates for Payment 1,163,434.55 Current Payment Due $ 92,861.32

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, and hereby find and determine that Application and Certificate for Payment No. 6, as shown on Exhibit “A”, be and is hereby accepted and approved. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

COUNCIL AGENDA MEMO

ITEM NO. IV - #9

FROM: Kirk Stocker, Director of Utilities

MEETING: December 23, 2014

SUBJECT: 2014 Part 7 Improvements

PRESENTER: No Presenter – Consent Agenda

Discussion:

On September 23, 2014 the City Council awarded the bid for the 2014 Part 7 Improvements to Midlands Contracting Inc. in the amount of $5,513,218.10. The improvements include;  The 8th Street Bridge Replacement and paving replacement between 2nd Avenue and 3rd Avenue.  The South Sewer consisting of 1. Sanitary Sewer Connection District No. 2014-1, from Avenue M westward in proposed Landon Street, if extended, then northward to 4th Street and westward in 4th Street to Central Avenue. 2. 4th Street Sanitary Sewer Rehabilitation in 4th Street from Central Avenue to 6th Avenue.  4th Street Paving Rehabilitation from Central Avenue to Second Avenue.  4th Street Paving Rehabilitation, Paving District No. 2014-968, from 3rd Avenue to 6th Avenue.

Since being awarded the bid, Midlands Contracting has mobilized labor, equipment and materials and has been working on the project.

Midlands Contracting has submitted Application for Payment No. 2 in the amount of $471,609.63 for stored material and work completed to date. Miller and Associates, the City’s Engineer for the project has reviewed the application and recommends that it be paid.

Fiscal Note:

All of the projects in the 2014 Part 7 Improvements have been included in the 2014-2015 Budget.

Recommended Action:

Staff recommends approving Application for Payment No. 2 and authorize Administration to make payment to Midlands Contracting Inc. in the amount of $471,609.63.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-251

WHEREAS, Midlands Contracting of Kearney, Nebraska has performed services in connection with the 2014 Part 7 Improvements consisting of Paving Improvement District No. 2014-968 for 4th Street from 3rd Avenue to 6th Avenue and Sanitary Sewer Connection District No. 2014-1 commencing at a point near the Kearney RV Park located at 315 Avenue M, northward and westward in an easement, Landon Street if extended, thence northward through Riverside Addition and Kreutz Addition to 4th Street, thence westward to Central Avenue, and the City's engineer, Miller & Associates, have filed with the City Clerk Application and Certificate for Payment No. 2 in the amount of $471,609.63 as shown on Exhibit “A” attached hereto and made a part hereof by reference and as follows:

Original Contract Sum $5,513,218.10 Contract Sum To Date 5,513,218.10 Gross Amount Due 664,695.62 Retainage (10%) 66,469.56 Amount Due to Date 598,226.06 Less Previous Certificates for Payment 126,616.43 Current Payment Due $ 471,609.63

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, and hereby find and determine that Application and Certificate for Payment No. 2, as shown on Exhibit “A”, be and is hereby accepted and approved. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

COUNCIL AGENDA MEMO

ITEM NO. IV - #10

FROM: Kirk Stocker, Director of Utilities

MEETING: December 23, 2014

SUBJECT: 2014 Part 8 Improvements

PRESENTER: No Presenter – Consent Agenda

Discussion:

At the August 12, 2014 City Council meeting the Council awarded the bid for the 2014 Part 8 Improvements to Midlands Contracting in the amount of $749,062.00.

The 2014 Part 8 Improvements include water and sanitary sewer improvement districts to serve Bearcat Corner. The districts are Water District No. 2014–574 and Sanitary Sewer District 2014–512 in 27th Street from the south line of 11th Street southward 850 feet and Water District No. 2014–575 and Sanitary Sewer District No. 2014-513 in 30th Avenue from the south line of 11th Street southward 1,500 feet.

Since being awarded the bid, Midlands Contracting has mobilized labor, equipment and materials and have completed the water and sanitary sewer construction on 27th Avenue south of 11th Street and have recently begun work on 30th Avenue south of 11th Street.

Midlands Contracting has submitted Application for Payment No. 1 in the amount of $213,019.20 for stored materials and work completed as of the end of November 2014.

Miller and Associates the City’s engineer on the project has reviewed Application for Payment No. 1 and recommends that it be approved.

Fiscal Note:

The Utilities Department included funding for this project in the 2014-2015 Budget.

Recommended Action:

Staff recommends approving Application for Payment No. 1 and authorize Administration to make payment to Midlands Contracting Inc. in the amount of $213,019.20.

We provide services, solutions, and opportunities for our community. RESOLUTION NO. 2014-252

WHEREAS, Midlands Contracting of Kearney, Nebraska has performed services in connection with the 2014 Part 8 Improvements consisting of Water District No. 2014- 574 and Sanitary Sewer District No. 2014-512 in 27th Avenue from 11th Street south 850 feet; and Water District No. 2014-575 and Sanitary Sewer District No. 2014-513 in 30th Avenue from 11th Street south 1,500 feet, and the City's engineer, Miller & Associates, have filed with the City Clerk Application and Certificate for Payment No. 1 in the amount of $213,019.20 as shown on Exhibit “A” attached hereto and made a part hereof by reference and as follows:

Original Contract Sum $749,062.00 Contract Sum To Date 749,062.00 Gross Amount Due 236,688.00 Retainage (10%) 23,668.80 Amount Due to Date 213,019.20 Less Previous Certificates for Payment .00 Current Payment Due $213,019.20

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the City of Kearney, Nebraska, and hereby find and determine that Application and Certificate for Payment No. 1, as shown on Exhibit “A”, be and is hereby accepted and approved. PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

COUNCIL AGENDA MEMO

ITEM NO. IV - #11

FROM: Michaelle Trembly, City Clerk

MEETING: December 23, 2014

SUBJECT: Thunderhead Special Designated License for January 15, 2015

PRESENTER: No Presenter – Consent Agenda

Discussion:

The City has received an application for a Special Designated License submitted by Thunderhead Brewing Co. to cater beer at Eustis Body Shop located at 720 Central Avenue on January 15, 2015 for a reception. In reviewing the records at the Nebraska Liquor Control, Thunderhead has not had any violations. The Police Department has been notified of this event and did not foresee any problems.

The Council has the authority to review and either approve or deny the issuance of a special designated license for alcohol sales. If the Council chooses to approve the applications, it will be forwarded to the Nebraska Liquor Control Commission for further processing. If the Council chooses to deny the applications, that is the final decision and it is not forwarded to the Liquor Commission.

Fiscal Note:

There is no adverse fiscal impact on the City of Kearney.

Recommended Action:

Staff recommends approval of the application as submitted by Thunderhead.

We provide services, solutions, and opportunities for our community.

COUNCIL AGENDA MEMO

ITEM NO. V - #1

FROM: Wendell Wessels, Director of Finance

MEETING: December 23, 2014

SUBJECT: Amendment to Article 15 “Purchasing” of the City Code

PRESENTER: No Presenter – Consent Agenda Ordinance

Discussion:

The attached ordinance will amend section 1-1505 of the Kearney City Code to allow the Purchasing Agent, or his/her designee, the authority to join with other units of government in cooperative purchasing of supplies, equipment or services when the best interests of the city would be served. The attached ordinance also amends section 1-1510 of the Kearney City Code to allow the City Manager to designate other city employees, such as Department Heads, the authority to approve employee travel. Various other housekeeping changes are also included in the ordinance to clean up the Purchasing Code.

Fiscal Note:

There is no financial consideration regarding this matter.

Recommended Action:

Staff recommends approval the attached ordinance authorizing the Mayor to execute any document or amendment necessary to amend and administer the Plan.

We provide services, solutions, and opportunities for our community. ORDINANCE NO. 7954

AN ORDINANCE OF THE CITY OF KEARNEY, NEBRASKA TO AMEND SECTION 1- 1503 “OFFICE OF PURCHASING AGENT; APPOINTMENT OF AGENT” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO REMOVE THE REFERENCE “AND ADMINISTRATION”; TO AMEND SECTION 1-1505 “FORMAL CONTRACT PROCEDURE” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO AUTHORIZE THE PURCHASING AGENT OR HIS/HER DESIGNEE, TO JOIN WITH OTHER UNITS OF GOVERNMENT IN COOPERATIVE PURCHASING OF SUPPLIES, EQUIPMENT OF SERVICES WHEN THE BEST INTERESTS OF THE CITY WOULD BE SERVED; TO AMEND SECTION 1-1506 “INFORMAL PURCHASING” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO REMOVE THE REFERENCE “UTILIZING A LOCAL PURCHASE ORDER”; TO AMEND SECTION 1-1507 “PROFESSIONAL SERVICES” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO REMOVE THE REFERENCE “UTILIZING A LOCAL PURCHASE ORDER”; TO AMEND SECTION 1-1510 “MISCELLANEOUS EXPENDITURES” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO REMOVE THE REFERENCE “OR PURCHASE ORDER” AND TO ALLOW THE CITY MANAGER TO DESIGNATE OTHER CITY EMPLOYEES THE AUTHORITY TO APPROVE EMPLOYEE TRAVEL; TO AMEND SECTION 1-1512 “REQUISITIONS AND ESTIMATES” OF ARTICLE 15 “PURCHASING” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF THE CITY OF KEARNEY, NEBRASKA TO REMOVE THE REFERENCE “USE OF A LOCAL PURCHASE ORDER”; TO PROVIDE THAT THIS ORDINANCE SHALL BE MADE A PART OF THE CODE OF THE CITY OF KEARNEY; TO REPEAL ALL ORDINANCES AND RESOLUTIONS OR PARTS THEREOF IN CONFLICT HEREWITH AND TO PROVIDE FOR SEVERABILITY; AND TO PROVIDE FOR PUBLICATION IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL AND EFFECTIVE DATE OF THIS ORDINANCE.

BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF KEARNEY, NEBRASKA:

Section 1. That Section 1-1503 “Office of Purchasing Agent; Appointment of Agent” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1503 OFFICE OF PURCHASING AGENT; APPOINTMENT OF AGENT. There is hereby created and established an office of the Purchasing Agent. The Director of Finance and Administration shall be the Purchasing Agent of the City and shall be responsible to the City Manager for the efficient conduct of his/her office.

Ordinance No. 7954 Page 2

Section 2. That Section 1-1505 “Formal Contract Procedure” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1505 FORMAL CONTRACT PROCEDURE. A. When the estimated cost of supplies, equipment or contractual services exceeds thirty thousand dollars ($30,000.00), no formal contract for purchase shall be authorized until the contract has been reviewed by the City Attorney, and without prior approval of the City Council. All supplies, equipment, and contractual services in this category shall be purchased by formal written contract, from the lowest responsible and responsive bidder, after due notice inviting bids. B. Notice inviting bids shall be published once in at least one (1) official newspaper in the city and at least ten (10) days preceding the last day set for the receipt of bids. The notice shall include a general description of the items to be purchased, and shall state where bid blanks and specifications may be secured, and the date, time and place for opening bids. The Purchasing Agent, or his/her designee, shall also endeavor to distribute bid documents to responsible prospective suppliers of whom the Purchasing Agent, or his/her designee, may be aware. C. When deemed necessary by the Purchasing Agent, or his/her designee, bid deposits shall be prescribed in the public notice inviting bids. Unsuccessful bidders shall be entitled to a return of surety required by the Purchasing Agent, or his/her designee. The successful bidder shall forfeit his/her bid deposit upon failure on his/her part to enter a contract within ten (10) days after the award. D. Bids shall be submitted sealed to the City Clerk and shall be identified as bids on the envelope. Bids shall be opened in public on the date and at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection. 1. The City Council shall have the authority to reject all bids, parts of all bids, or all bids for any one (1) or more supplies or contractual services included in the proposed contract, when the public interest will be served thereby. 2. The City Council shall have the authority to not accept the bid of a contractor who is in default on the payment of taxes, licenses, or other monies due the City. E. Contracts shall be awarded to the lowest responsible and responsive bidder. In determining “lowest responsible bidder”, in addition to price, the City Council shall consider: 1. The ability, capacity, and skill of the bidder to perform the contract required; 2. The character, integrity, reputation, judgment, experience and efficiency of the bidder; 3. Whether the bidder can perform the contract within the time specified; 4. The quality of performance of previous contracts; 5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract; 6. The life-cost of the personal property in relation to the purchase price and specific use of the item; 7. The performance of the personal property, taking into consideration any commonly accepted tests and standards of product usability and user requirements; 8. Energy efficiency ratio as stated by the bidder for alternative choices of appliances or equipment; 9. The information furnished by each bidder when deemed applicable by the Purchasing Agent, or his/her designee, concerning life-cycle costs between alternatives for all classes of equipment, evidence of expected life, repair and maintenance costs, and energy consumption on a per-year basis; 10. Such other information as may be secured having a bearing on the decision to award the contract; 11. A “responsive bidder” shall be defined as a person or company who has submitted a bid that conforms in all material respects to the “Invitation for Bids”. F. When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the Purchasing Agent, or his/her designee, and filed with other papers relating to the transaction. G. No contract in excess of thirty thousand dollars ($30,000.00) for enlargements or general improvements, such as (by way of illustration, not limitation) water/sewer main extensions, street improvements, park improvements, or airport improvements, shall be awarded by the City Council until the plans/specifications and estimate of the cost are approved by the City Council.

Ordinance No. 7954 Page 3

H. Except in the case of tie bids, there shall be neither formal nor tacit local vendor’s preference policies. The City shall neither impose nor condone any bidding or procurement policies that result in exclusionary or anti-competitive bidding or violate state or federal antitrust laws. If all bids received are for the same total amount or unit price, quality and service being equal, the contract shall be awarded to a local bidder. Where there is no local bidder or when two (2) or more local bidders are equal, the Purchasing Agent, or his/her designee, shall award the contract to one (1) of the tie bidders by drawing lots in public. I. The City, whenever applicable, may, by the use of purchasing under a State of Nebraska contract, purchase supplies, equipment or services without the necessity of using the formal bid requirements as set forth in this section. J. The Purchasing Agent, or his/her designee, shall have the authority to join with other units of government in cooperative purchasing of supplies, equipment or services when the best interests of the City would be served thereby.

Section 3. That Section 1-1506 “Informal Purchasing” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1506 INFORMAL PURCHASING. A. When the estimated cost of supplies, equipment or contractual services is less than thirty thousand dollars ($30,000.00), the purchase shall be made in the open market, without newspaper advertisement and without observing the procedure prescribed for the award of formal contracts in this article and shall be referred to as open market purchases. All such purchases shall be awarded by the Purchasing Agent, or his/her designee. B. All open market purchases greater than one thousand dollars ($1,000.00) and not more than thirty thousand dollars ($30,000.00) shall be acquired after solicitation of two (2) quotations, if possible, and after being assigned a purchase order by the Purchasing Agent, or his/her designee. Purchases provided for under this subsection should be made from the “lowest responsible and responsive bidder”, in accordance with the same criteria established in this article for the formal contract procedure. C. All open market purchases of one thousand dollars ($1,000.00) or less may be made by utilizing a local purchase order or by utilizing a purchase card without the necessity of soliciting two (2 quotations). D. The Purchasing Agent, or his/her designee, may solicit open market quotes by direct mail request to prospective vendors, by public notice on the bulletin board at City Hall, by telephone, by facsimile transmission, by electronic mail or other electronic means.

Section 4. That Section 1-1507 “Professional Services” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1507 PROFESSIONAL SERVICES. For the purpose of procuring professional services, any using agency requiring such services may procure them on its own behalf, in accordance with the selection procedures specified in this section. A using agency procuring such services shall consult with the Purchasing Agent, or his/her designee. No contract for professional services exceeding thirty thousand dollars ($30,000.00) may be awarded until the contract has been reviewed by the City Attorney, and without the prior approval of the City Council. All using agencies shall follow the following selection procedure when procuring professional services exceeding thirty thousand dollars ($30,000.00): A. Persons engaged in providing the designated types of professional services may submit statements of qualifications and expressions of interest in providing such professional services. A using agency using such professional services may specify a uniform format for statements of qualifications. B. Adequate public notice of the need for such professional services shall be given by the using agency requiring professional services through a request for proposals. Such notice may include

Ordinance No. 7954 Page 4

publication in a newspaper of general circulation not less than ten (10) days prior to the final date of receipt of proposals. The request for proposals shall describe the services required, list the types of information and data required of each offeror, and state the relative importance of particular qualifications. C. The head of a using agency procuring the required professional services, or a designee of such officer, may conduct discussions with any offeror who has submitted a proposal to determine such offeror’s qualifications for further consideration. Discussions shall not disclose any information derived from proposals submitted by other offerors. D. Award shall be made to the offeror determined in writing by the head of the using agency procuring the required professional services, or a designee of such officer, to be best qualified offeror based on the evaluation factors set forth in the request for proposals, and negotiation of compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the best qualified offeror, then negotiations will be formally terminated with the selected offeror. If proposals were submitted by one (1) or more other offerors determined to be qualified, negotiations may be conducted with such other offeror or offerors, in the order of their respective qualification ranking, and the contract may be awarded to the offeror then ranked best qualified if the amount of compensation is determined to be fair and reasonable. E. All professional services costing one thousand dollars ($1,000.00) or less may be made by utilizing a local purchase order or by utilizing a purchase card without the necessity of a request for proposals.

Section 5. That Section 1-1510 “Miscellaneous Expenditures” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1510 MISCELLANEOUS EXPENDITURES. The expenditure of public funds is hereby subject, pursuant to the State of Nebraska Local Government Miscellaneous Expenditure Act, to the following: A. Authorized expenses may include: 1. Registration costs, tuition costs, fees, or charges; and 2. Mileage at the then current rate allowed by Section 81-1176 of the Nebraska Revised Statutes, or actual travel expense if travel is by commercial or charter means. When travel mode is optional, the lower of the reimbursable cost is authorized; and 3. Meals and incidental (M&I) expense at the then current rate of the applicable federal per diem for M&I when required to travel away from home overnight; and 4. When required to travel away from home overnight, and traveling includes a partial day on the departure day or a partial day on the return day, the federal per diem rate for meals and incidentals (M&I) will apply at the rate of twenty percent (20%) for breakfast, thirty percent (30%) for lunch, and fifty percent (50%) for supper. Departures must occur prior to 6:00 a.m. for breakfast per diem and return must be after 8:00 p.m. for supper per diem; and 5. Actual cost of meals (receipts required), not to exceed the applicable federal per diem rate for meals and incidentals (M&I), when not required to travel when away from home overnight: and 6. Actual lodging rate is allowed, but no additional transportation costs, such as car rentals, shall be paid for commuting during the lodging stay if lodging is at a location hosting the function. B. Authorized expenditures shall not include expenditures for meals of City Council members provided while attending a public meeting of the City Council unless such meeting is a joint meeting with one (1) or more other governing bodies. C. Authorized expenditures shall not include expenditures for any expenses incurred by a spouse of an elected or appointed official, employee, or volunteer unless the spouse is also an elected or appointed official, employee, or volunteer of the City.

The expenditure of public funds is hereby authorized, pursuant to the State of Nebraska Local Government Miscellaneous Expenditure Act, for the following purposes: A. Nonalcoholic beverages provided to individuals attending public meetings of the City Council. B. Nonalcoholic beverages and meals:

Ordinance No. 7954 Page 5

1. Provided for any individuals while performing or immediately after performing relief, assistance, or support activities in emergency situations, including but not limited to, tornado, severe storm, fire or accident; 2. Provided for any volunteers during or immediately following their participation in any activity approved by the City Council, including but not limited to, mowing parks, picking up litter, removing graffiti, or snow removal; 3. Provided at one (1) recognition dinner each year held for elected and appointed officials, employees, or volunteers. The maximum cost per person for such dinner shall not exceed twenty-five dollars ($25.00). The annual recognition dinner may be held separately for employees of each department or separately for volunteers, or any of them in combination. C. Plaques, certificates of achievement, or items of value awarded to elected or appointed officials, employees, or volunteers, including persons serving on local government boards or commissions, subject to the following dollar limit on value:

Volunteer Service $150.00 Board, Commission, Council Service $150.00 Award Ceremony/Farewell Tribute $150.00

The following procedures shall be used for business travel: A. Transportation Method: 1. When travel is by air, advance ticketing by purchase card or purchase order will be utilized whenever possible to obtain the lowest available coach fare. 2. All refunds, travel coupons, and other promotions in connection with business travel shall be returned to the City. B. Lodging: 1. Reimbursement for non-commercial lodging is not permitted. 2. When City personnel are accompanied by non-City personnel, only the costs attributed to the City personnel are reimbursable. C. Expenses: 1. The following expenses are reimbursable upon submission of paid receipts: parking fees; taxi fares; shuttle fares; bus fares; highway tolls; registration fees; lodging; tuition fees; supplies or equipment required for travel or training; rental cars; fees for official functions related to travel; and traveler’s checks fees. 2. The following expenses are not reimbursable: entertainment, including television rentals; personal expenses, e.g. hygiene items, laundry, magazines; travel insurance; and alcoholic beverages. D. Travel Advances: 1. Employees shall receive approval by the City Manager, or his/her designee, for any trip, and any travel advance, before departing and before incurring any expenses (including prepaid transportation, lodging expenses, and registration fees). Travel advances will only be authorized when employees are required to travel away from home overnight. 2. The use of purchase cards and advance purchase order payments of registration fees, lodging, and transportation expenses are encouraged. E. Expense Claims: 1. Personnel on authorized travel must submit expense claims to the Finance Department immediately upon return, but not later than ten (10) working days after return to duty. 2. All receipts, unexpended City funds, and funds due the City, shall be returned at that time. 3. All expenses (including prepaid expenses) shall be summarized and accounted for on a “Request for Travel and Statement of Expenses” form.

Section 6. That Section 1-1512 “Requisitions and Estimates” of Article 15 “Purchasing” of Chapter 1 “Administration” of the Code of the City of Kearney, Nebraska, is hereby amended to read as follows:

1-1512 REQUISITIONS AND ESTIMATES. A. All using agencies, departments or divisions, either by or with the authorization of the agency, department or division head under which they operate, shall file with the Purchasing Agent, or his/her

Ordinance No. 7954 Page 6

designee, detailed requisitions or estimates of their requirements for any supplies, equipment, or contractual services, in such manner, at such times, and for such future periods as the Purchasing Agent, or his/her designee, shall prescribe. B. A using agency, department or division shall not be prevented from filing in the same manner with the Purchasing Agent, or his/her designee, at any time, a requisition or estimate for any supplies, equipment, and contractual services, the need for which was not foreseen when the detailed estimates were filed. C. The Purchasing Agent, or his/her designee, shall examine such requisition or estimate and shall have the authority to revise it as to estimated cost; but revisions as to quality and quantity shall be directly approved by the City Manager. D. Purchases under one thousand dollars ($1,000.00), not involving supply needs that can be ordered in bulk, may be accomplished through the use of a local purchase order or the use of a purchase card.

Section 7. It is the intention of the City Council, and it is hereby ordained, that the provisions of this Ordinance shall become and be made part of the Code of the City of Kearney, Nebraska, and the sections of this Ordinance may be renumbered to accomplish such intention. Section 8. That all ordinances and resolutions or parts of ordinances and resolutions in conflict herewith are hereby repealed. Section 9. If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be unconstitutional or invalid, such unconstitutionality or invalidity shall not affect the validity of the remaining portions of this ordinance. The Mayor and City Council of the City of Kearney hereby declare that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or invalid. Section 10. This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law and shall be published in pamphlet form by authority of the City Council.

INTRODUCED BY COUNCIL MEMBER PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

COUNCIL AGENDA MEMO

ITEM NO. V - #2, 3, 4

FROM: Michaelle Trembly, City Clerk

MEETING: December 23, 2014

SUBJECT: Paving Districts for 11th Street, 27th Avenue and 30th Avenue

PRESENTER: No Presenter – Consent Agenda Ordinances

Discussion:

At the March 11, 2014 Council meeting the Council approved the Final Plat and Subdivision Agreement for Bearcat Corner. This property is located at the southeast corner of 30th Avenue and 11th Street. In the agreement the developer requested that the City create paving, water and sanitary sewer improvement districts to serve the development.

On June 10, 2014 the Council approved the creation of water and sanitary sewer districts. They are now requesting the creation of the following paving improvement districts:  Paving Improvement District No. 2014-969 for 11th Street from a point 109.74 feet west of 30th Avenue, thence east for a distance of 2,440.08 feet.  Paving Improvement District No. 2014-970 for 27th Avenue from 11th Street south a distance of 850± feet as platted in Lot 1, Bearcat Corner.  Paving Improvement District No. 2014-971 for 30th Avenue from 11th Street south a distance of 1,500± feet as platted in Lot 1, Bearcat Corner.

Chapter 16 of the Nebraska Revised Statutes sets out the rules by which water, sewer and paving districts may be created by public entities. The Council has the authority to create districts and make improvements and assess the costs to the property that is benefited by the improvements. The Mayor and Council, by ordinance, shall create districts according to Section 16-619 of the Nebraska Revised Statutes. At that time, the City must publish notice of the creation of the district one time each week for not less than 30 days in a daily or weekly newspaper of general circulation in the City. After publication, if the owners of record title representing more than 50 percent of the front footage of the property abutting or adjoining the any continuous or extending improvements objects in writing within 20 days from the first date of publication of said notice the work will not be done. If objections are not filed against the district in a timely manner that meets the law, the Mayor and Council shall proceed to construct such improvements.

Fiscal Note:

Funds are available in this year’s budget to construct the paving improvements for these streets.

Recommended Action:

Staff recommends adopting the Ordinances creating the paving improvement districts.

We provide services, solutions, and opportunities for our community. ORDINANCE NO. 7955

AN ORDINANCE TO CREATE PAVING IMPROVEMENT DISTRICT NO. 2014-969; TO PROVIDE FOR THE DEFINITION OF THE BOUNDARIES AND TO PROVIDE FOR THE IMPROVEMENT OF A CERTAIN STREET THEREIN; TO PROVIDE FOR THE CHARGING OF SAID IMPROVEMENTS TO THE PROPERTY ABUTTING THEREON IN SAID DISTRICT BENEFITED THEREBY; TO REPEAL ALL ORDINANCES AND RESOLUTIONS OR PARTS THEREOF IN CONFLICT HEREWITH; AND TO PROVIDE FOR PUBLICATION IN PAMPHLET FORM BY THE AUTHORITY OF THE CITY COUNCIL AND EFFECTIVE DATE OF THIS ORDINANCE.

BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF KEARNEY, NEBRASKA:

Section 1. Paving Improvement District No. 2014-969. There is hereby created within the City of Kearney, Nebraska, Paving Improvement District No. 2014-969 which shall consist of the following described real estate, to-wit: Commencing at a point on the centerline of 11th Street right-of-way and 109.74 feet west of the centerline intersection of 11th Street and 30th Avenue, City of Kearney, Buffalo County, Nebraska, thence east in and including all of 11th Street right-of-way for a distance of 109.74 feet to the centerline intersection of 11th Street and 30th Avenue, thence continuing on the centerline of 11th Street right-of-way and including all of 11th Street right-of-way for a distance of 2,440.08 feet, and including all lots and lands abutting thereon, more particularly described as the northerly 250 feet of Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska; and the southerly 250 feet of the northerly 300 feet of the westerly 840.02 feet of the easterly 1,083.74 feet of the Northeast Quarter of the Northwest Quarter of Section 10, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska; the northerly 250 feet of the southerly 300 feet of the westerly 2,440.08 feet of the Southwest Quarter of Section 3, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska; the east 59.74 feet of Lot 1, Tacha Addition, an addition to the City of Kearney, Buffalo County, Nebraska; the east 59.74 feet of the south 88.20 feet of Lot 2, Tacha Addition, an addition to the City of Kearney, Buffalo County, Nebraska; the westerly 59.74 feet of the easterly 108.81 feet of the southerly 250 feet of the northerly 300 feet of the Northeast Quarter of Northeast Quarter of Section 9, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska, as the same abuts 11th Street, as shown on Exhibit “A,” attached hereto and made a part hereof. Ordinance No. 7955 Page 2

The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 11th Street from a point 109.74 feet west of 30th Avenue, thence east for a distance of 2,440.08 feet, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. Section 2. The cost of improvements to be made in Paving Improvement District No. 2014-969 except street and alley intersections, shall be assessed upon the lots and lands in the district specially benefited thereby in proportion to such benefits as provided by law. Section 3. The public is also hereby notified that Ordinance No. 7955 is subject to limited referendum for a period of thirty (30) days after the first publication of this Ordinance and that, after the expiration of the said thirty (30) days, Ordinance No. 7955 and any measures related to it, will not be subject to any further right of referendum. Section 4. To repeal all ordinances and resolutions or parts of ordinances and resolutions in conflict herewith. Section 5. This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law and shall be published in pamphlet form by the authority of the Mayor and Council. Section 6. After the passage, approval and publication of this Ordinance, Notice of the Creation of said District shall be published one time each week for not less than twenty (20) days in the Kearney Hub, a legal newspaper of the City.

INTRODUCED BY COUNCIL MEMBER PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

NOTICE OF CREATION OF PAVING IMPROVEMENT DISTRICT NO. 2014-969 ORDINANCE NO. 7955

Notice is hereby given that the President and Council of the City of Kearney, Nebraska, have by Ordinance No. 7955 created Paving Improvement District No. 2014- 969 which shall consist of the following described real estate, to-wit: Commencing at a point on the centerline of 11th Street right-of-way and 109.74 feet west of the centerline intersection of 11th Street and 30th Avenue, City of Kearney, Buffalo County, Nebraska, thence east in and including all of 11th Street right-of-way for a distance of 109.74 feet to the centerline intersection of 11th Street and 30th Avenue, thence continuing on the centerline of 11th Street right-of-way and including all of 11th Street right-of-way for a distance of 2,440.08 feet, and including all lots and lands abutting thereon, more particularly described as the northerly 250 feet of Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska; and the southerly 250 feet of the northerly 300 feet of the westerly 840.02 feet of the easterly 1,083.74 feet of the Northeast Quarter of the Northwest Quarter of Section 10, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska; the northerly 250 feet of the southerly 300 feet of the westerly 2,440.08 feet of the Southwest Quarter of Section 3, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska; the east 59.74 feet of Lot 1, Tacha Addition, an addition to the City of Kearney, Buffalo County, Nebraska; the east 59.74 feet of the south 88.20 feet of Lot 2, Tacha Addition, an addition to the City of Kearney, Buffalo County, Nebraska; the westerly 59.74 feet of the easterly 108.81 feet of the southerly 250 feet of the northerly 300 feet of the Northeast Quarter of Northeast Quarter of Section 9, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska, as the same abuts 11th Street. The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 11th Street from a point 109.74 feet west of 30th Avenue, thence east for a distance of 2,440.08 feet, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. If the owners of record title representing more than fifty percent (50%) of the front footage of the property abutting any continuous or extended street, cul-de-sac or alley of the district and who were such owners at the time the ordinance creating such district was published, shall file with the City Clerk within twenty (20) days of the first publication of this Notice written objections to the improvements of said district, said work shall not be done in said district under said ordinance and said ordinance shall be Notice-Ordinance No. 7955 Page 2

repealed. If objections are not filed against said district in such time and manner, the President and Council shall forthwith proceed to construct the improvements. The public is also hereby notified that Paving Improvement District No. 2014-969, created by Ordinance No. 7955 is subject to limited referendum for a period of thirty (30) days after the first publication of this Notice and that, after the expiration of said thirty (30) days, Paving Improvement District No. 2014-969 and any measures related to it, will not be subject to any further right of referendum. This Notice is first published on December 29, 2014. Any owner of record title of land included in the said district which is zoned R-1 or R- 2 and intended to be developed into single family, duplex or townhouse units only may apply for a “Residential – Low Density” deferral to the City of Kearney no later than thirty (30) days prior to the date that the City Council sets as a Board of Equalization to assess the costs of the district. No “Residential – Low Density” deferrals shall be granted by the City of Kearney to owners of record title of such property if said property has access to the arterial street via a curb cut. The “Residential – Low Density” deferral shall be terminated in accordance with the terms and conditions set forth in Resolution No. 2006-103, passed and approved by the Kearney City Council on June 13, 2006. Owners of land included in the said district which is adjacent to, but not within the City limits, and which is (1) within an agricultural use zone and (2) used exclusively for agricultural use as those terms are defined by Nebraska Revised Statutes, Sections 19- 2428 through 19-2431 inclusive, and Section 77-1359 may be entitled to an agricultural deferral of assessments. Owners of record title must make application to the City Council within ninety (90) days after creation of this improvement district. Copies of the statutes are available to the public at the office of the City Clerk. Copies of Ordinance No. 7955, as published in pamphlet form by authority of the City Council, are available to the public at the Office of the City Clerk, City Hall, 18 East 22nd Street, Kearney, Nebraska.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

Publish: December 29, 2014, January 5, 12, 2015 2 Affidavits LEGEND

PAVING DISTRICT NO. 2014-969 ORDINANCE NO. 7956

AN ORDINANCE TO CREATE PAVING IMPROVEMENT DISTRICT NO. 2014-970; TO PROVIDE FOR THE DEFINITION OF THE BOUNDARIES AND TO PROVIDE FOR THE IMPROVEMENT OF A CERTAIN STREET THEREIN; TO PROVIDE FOR THE CHARGING OF SAID IMPROVEMENTS TO THE PROPERTY ABUTTING THEREON IN SAID DISTRICT BENEFITED THEREBY; TO REPEAL ALL ORDINANCES AND RESOLUTIONS OR PARTS THEREOF IN CONFLICT HEREWITH; AND TO PROVIDE FOR PUBLICATION IN PAMPHLET FORM BY THE AUTHORITY OF THE CITY COUNCIL AND EFFECTIVE DATE OF THIS ORDINANCE.

BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF KEARNEY, NEBRASKA:

Section 1. Paving Improvement District No. 2014-970. There is hereby created within the City of Kearney, Nebraska, Paving Improvement District No. 2014-970 which shall consist of the following described real estate, to-wit: Commencing at the south right-of-way line of 11th Street, thence south in and including all of 27th Avenue for a distance of 850± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, more particularly described as the northerly 850 feet of the easterly 250 feet of Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska; and the northerly 850 feet of the westerly 250 feet of the easterly 1,085.74 feet of the Northeast Quarter of the Northwest Quarter of Section 10, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska as the same abuts 27th Avenue, as shown on Exhibit “A,” attached hereto and made a part hereof. The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 27th Avenue from 11th Street south a distance of 850± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. Section 2. The cost of improvements to be made in Paving Improvement District No. 2014-970 except street and alley intersections, shall be assessed upon the lots and lands in the district specially benefited thereby in proportion to such benefits as provided by law. Section 3. The public is also hereby notified that Ordinance No. 7956 is subject to limited referendum for a period of thirty (30) days after the first publication of this Ordinance No. 7956 Page 2

Ordinance and that, after the expiration of the said thirty (30) days, Ordinance No. 7956 and any measures related to it, will not be subject to any further right of referendum. Section 4. To repeal all ordinances and resolutions or parts of ordinances and resolutions in conflict herewith. Section 5. This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law and shall be published in pamphlet form by the authority of the Mayor and Council. Section 6. After the passage, approval and publication of this Ordinance, Notice of the Creation of said District shall be published one time each week for not less than twenty (20) days in the Kearney Hub, a legal newspaper of the City.

INTRODUCED BY COUNCIL MEMBER PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

NOTICE OF CREATION OF PAVING IMPROVEMENT DISTRICT NO. 2014-970 ORDINANCE NO. 7956

Notice is hereby given that the President and Council of the City of Kearney, Nebraska, have by Ordinance No. 7956 created Paving Improvement District No. 2014- 970 which shall consist of the following described real estate, to-wit: Commencing at the south right-of-way line of 11th Street, thence south in and including all of 27th Avenue for a distance of 850± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, more particularly described as the northerly 850 feet of the easterly 250 feet of Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska; and the northerly 850 feet of the westerly 250 feet of the easterly 1,085.74 feet of the Northeast Quarter of the Northwest Quarter of Section 10, Township 8 North, Range 16 West of the 6th P.M., Buffalo County Nebraska as the same abuts 27th Avenue. The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 27th Avenue from 11th Street south a distance of 850± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. If the owners of record title representing more than fifty percent (50%) of the front footage of the property abutting any continuous or extended street, cul-de-sac or alley of the district and who were such owners at the time the ordinance creating such district was published, shall file with the City Clerk within twenty (20) days of the first publication of this Notice written objections to the improvements of said district, said work shall not be done in said district under said ordinance and said ordinance shall be repealed. If objections are not filed against said district in such time and manner, the President and Council shall forthwith proceed to construct the improvements. The public is also hereby notified that Paving Improvement District No. 2014-970, created by Ordinance No. 7956 is subject to limited referendum for a period of thirty (30) days after the first publication of this Notice and that, after the expiration of said thirty (30) days, Paving Improvement District No. 2014-970 and any measures related to it, will not be subject to any further right of referendum. This Notice is first published on December 29, 2014. Any owner of record title of land included in the said district which is zoned R-1 or R- 2 and intended to be developed into single family, duplex or townhouse units only may apply for a “Residential – Low Density” deferral to the City of Kearney no later than thirty Notice-Ordinance No. 7956 Page 2

(30) days prior to the date that the City Council sets as a Board of Equalization to assess the costs of the district. No “Residential – Low Density” deferrals shall be granted by the City of Kearney to owners of record title of such property if said property has access to the arterial street via a curb cut. The “Residential – Low Density” deferral shall be terminated in accordance with the terms and conditions set forth in Resolution No. 2006-103, passed and approved by the Kearney City Council on June 13, 2006. Owners of land included in the said district which is adjacent to, but not within the City limits, and which is (1) within an agricultural use zone and (2) used exclusively for agricultural use as those terms are defined by Nebraska Revised Statutes, Sections 19- 2428 through 19-2431 inclusive, and Section 77-1359 may be entitled to an agricultural deferral of assessments. Owners of record title must make application to the City Council within ninety (90) days after creation of this improvement district. Copies of the statutes are available to the public at the office of the City Clerk. Copies of Ordinance No. 7956, as published in pamphlet form by authority of the City Council, are available to the public at the Office of the City Clerk, City Hall, 18 East 22nd Street, Kearney, Nebraska.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

Publish: December 29, 2014, January 5, 12, 2015 2 Affidavits LEGEND

PAVING DISTRICT NO. 2014-970 ORDINANCE NO. 7957

AN ORDINANCE TO CREATE PAVING IMPROVEMENT DISTRICT NO. 2014-971; TO PROVIDE FOR THE DEFINITION OF THE BOUNDARIES AND TO PROVIDE FOR THE IMPROVEMENT OF A CERTAIN STREET THEREIN; TO PROVIDE FOR THE CHARGING OF SAID IMPROVEMENTS TO THE PROPERTY ABUTTING THEREON IN SAID DISTRICT BENEFITED THEREBY; TO REPEAL ALL ORDINANCES AND RESOLUTIONS OR PARTS THEREOF IN CONFLICT HEREWITH; AND TO PROVIDE FOR PUBLICATION IN PAMPHLET FORM BY THE AUTHORITY OF THE CITY COUNCIL AND EFFECTIVE DATE OF THIS ORDINANCE.

BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF KEARNEY, NEBRASKA:

Section 1. Paving Improvement District No. 2014-971. There is hereby created within the City of Kearney, Nebraska, Paving Improvement District No. 2014-971 which shall consist of the following described real estate, to-wit: Commencing at the south right-of-way line of 11th Street, thence south in and including all of 30th Avenue for a distance of 1,500± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, more particularly described as the northerly 1,500 feet of the westerly 250 feet of Lot 1, Bearcat Corner; AND the southerly 1,500 feet of the northerly 1,550 feet of the westerly 250 feet of the easterly 300 feet of the East Half of the Northeast Quarter of Section 9,Township 8 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska, as shown on Exhibit “A,” attached hereto and made a part hereof. The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 30th Avenue from 11th Street south a distance of 1,500± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. Section 2. The cost of improvements to be made in Paving Improvement District No. 2014-971 except street and alley intersections, shall be assessed upon the lots and lands in the district specially benefited thereby in proportion to such benefits as provided by law. Section 3. The public is also hereby notified that Ordinance No. 7957 is subject to limited referendum for a period of thirty (30) days after the first publication of this Ordinance and that, after the expiration of the said thirty (30) days, Ordinance No. 7957 and any measures related to it, will not be subject to any further right of referendum. Ordinance No. 7957 Page 2

Section 4. To repeal all ordinances and resolutions or parts of ordinances and resolutions in conflict herewith. Section 5. This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law and shall be published in pamphlet form by the authority of the Mayor and Council. Section 6. After the passage, approval and publication of this Ordinance, Notice of the Creation of said District shall be published one time each week for not less than twenty (20) days in the Kearney Hub, a legal newspaper of the City.

INTRODUCED BY COUNCIL MEMBER PASSED AND APPROVED THIS 23RD DAY OF DECEMBER, 2014.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

NOTICE OF CREATION OF PAVING IMPROVEMENT DISTRICT NO. 2014-971 ORDINANCE NO. 7957

Notice is hereby given that the President and Council of the City of Kearney, Nebraska, have by Ordinance No. 7957 created Paving Improvement District No. 2014- 971 which shall consist of the following described real estate, to-wit: Commencing at the south right-of-way line of 11th Street, thence south in and including all of 30th Avenue for a distance of 1,500± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, more particularly described as the northerly 1,500 feet of the westerly 250 feet of Lot 1, Bearcat Corner; AND the southerly 1,500 feet of the northerly 1,550 feet of the westerly 250 feet of the easterly 300 feet of the East Half of the Northeast Quarter of Section 9,Township 8 North, Range 16 West of the 6th P.M., Buffalo County, Nebraska. The street to be improved in said district by paving, curbing, draining, including storm sewers, and incidental work is all of 30th Avenue from 11th Street south a distance of 1,500± feet as platted in Lot 1, Bearcat Corner, an addition to the City of Kearney, Buffalo County, Nebraska, and including all lots and lands abutting thereon, all in Buffalo County, Nebraska. If the owners of record title representing more than fifty percent (50%) of the front footage of the property abutting any continuous or extended street, cul-de-sac or alley of the district and who were such owners at the time the ordinance creating such district was published, shall file with the City Clerk within twenty (20) days of the first publication of this Notice written objections to the improvements of said district, said work shall not be done in said district under said ordinance and said ordinance shall be repealed. If objections are not filed against said district in such time and manner, the President and Council shall forthwith proceed to construct the improvements. The public is also hereby notified that Paving Improvement District No. 2014-971, created by Ordinance No. 7957 is subject to limited referendum for a period of thirty (30) days after the first publication of this Notice and that, after the expiration of said thirty (30) days, Paving Improvement District No. 2014-971 and any measures related to it, will not be subject to any further right of referendum. This Notice is first published on December 29, 2014. Any owner of record title of land included in the said district which is zoned R-1 or R- 2 and intended to be developed into single family, duplex or townhouse units only may apply for a “Residential – Low Density” deferral to the City of Kearney no later than thirty (30) days prior to the date that the City Council sets as a Board of Equalization to Notice-Ordinance No. 7957 Page 2

assess the costs of the district. No “Residential – Low Density” deferrals shall be granted by the City of Kearney to owners of record title of such property if said property has access to the arterial street via a curb cut. The “Residential – Low Density” deferral shall be terminated in accordance with the terms and conditions set forth in Resolution No. 2006-103, passed and approved by the Kearney City Council on June 13, 2006. Owners of land included in the said district which is adjacent to, but not within the City limits, and which is (1) within an agricultural use zone and (2) used exclusively for agricultural use as those terms are defined by Nebraska Revised Statutes, Sections 19- 2428 through 19-2431 inclusive, and Section 77-1359 may be entitled to an agricultural deferral of assessments. Owners of record title must make application to the City Council within ninety (90) days after creation of this improvement district. Copies of the statutes are available to the public at the office of the City Clerk. Copies of Ordinance No. 7957, as published in pamphlet form by authority of the City Council, are available to the public at the Office of the City Clerk, City Hall, 18 East 22nd Street, Kearney, Nebraska.

ATTEST: STANLEY A. CLOUSE PRESIDENT OF THE COUNCIL AND EX-OFFICIO MAYOR

MICHAELLE E. TREMBLY CITY CLERK

Publish: December 29, 2014, January 5, 12, 2015 2 Affidavits LEGEND

PAVING DISTRICT NO. 2014-971

COUNCIL AGENDA MEMO

ITEM NO. VI - #1

FROM: Michaelle Trembly, City Clerk Daniel Lynch, Chief of Police

MEETING: December 23, 2014

SUBJECT: Manager Application for Jersey’s Sports Bar & Grill

PRESENTER: Patrick Cabela, Manager

Discussion:

The attached Application for Manager has been submitted by Jersey’s Sports Bar & Grill, Inc. dba Jersey’s Sports Bar in connection with their Class I-070888 liquor license and located at 5012 3rd Avenue, Suite 120. Jersey’s Sports Bar has held a liquor license since 2006. According to the Liquor Commission web site, they have not had a liquor violation since 2011. A background was conducted by the Police Department on Patrick Cabela as the applicant for Manager and nothing was found that would prohibit Mr. Cabela from functioning as the manager. He has a basic knowledge of the applicable laws and his plan for managing sales and staff seems appropriate.

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 Council adopted a Liquor License Policy on March 22, 2011. Mr. Cabela has completed the Liquor License Training Compliance Form and has indicated he and other employees have received training and their Certificates of Training are on file with the City Clerk’s Office.

Fiscal Note:

This manager application will not be an issue for the City or Police Department and will not pose a negative fiscal impact.

Recommended Action:

The Council has the right and obligation to review applications for manager applications. It appears that all of the paperwork has been submitted.

The Council has the following alternatives:  Recommend approval to the Liquor Commission.  Recommend denial to the Liquor Commission.  Submit to the Liquor Commission with no recommendation.

We provide services, solutions, and opportunities for our community.

COUNCIL AGENDA MEMO

ITEM NO. VI - #2

FROM: Michaelle Trembly, City Clerk Daniel Lynch, Chief of Police

MEETING: December 23, 2014

SUBJECT: Manager Application for Smoker Friendly #017/SF Liquors

PRESENTER: Misty McDaniel, Manager

Discussion:

The attached Application for Manager has been submitted by The Cigarette Store Corp., dba Smoker Friendly #017/SF Liquors in connection with their Class C-102050 liquor license and located at 620 East 25th Street, Suite F. Smoker Friendly #017/SF Liquors has held a liquor license since 2013. According to the Liquor Commission web site, they have not had any liquor violations. A background was conducted by the Police Department on Misty McDaniel as the applicant for Manager and nothing was found that would prohibit Ms. McDaniel from functioning as the manager. She has a basic knowledge of the applicable laws and her plan for managing sales and staff seems appropriate.

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 Council adopted a Liquor License Policy on March 22, 2011. Ms. McDaniel has completed the Liquor License Training Compliance Form and has indicated she and other employees have received training and their Certificates of Training are on file with the City Clerk’s Office.

Fiscal Note:

This manager application will not be an issue for the City or Police Department and will not pose a negative fiscal impact.

Recommended Action:

The Council has the right and obligation to review applications for manager applications. It appears that all of the paperwork has been submitted.

The Council has the following alternatives:  Recommend approval to the Liquor Commission.  Recommend denial to the Liquor Commission.  Submit to the Liquor Commission with no recommendation.

We provide services, solutions, and opportunities for our community.

PS PERSONNEL SERVICES Open Account Claims SMCS SUPPLIES, MATERIALS, AND CONTRACTUAL SERVICES December 23, 2014 ER EQUIPMENT RENTAL Page 1 CO CAPITAL OUTLAY DS DEBT SERVICE

Vendor Amount Purpose NPPD $86,658.74 smcs