2021-01-28 SID 427 Minutes MINUTES OF MEETING
OF
SANITARY AND IMPROVEMENT DISTRICT NO.427
OF DOUGLAS COUNTY, NEBRASKA
A meeting of the Board of Trustees of Sanitary and Improvement District No. 427 of Douglas
County, Nebraska, was convened in open and public session at 11:00 a.m. on the 28th day of January,
2021, at 10250 Regency Circle, Suite 300, Omaha, Nebraska.
Present were: Darrel J. Lahmann, Frederic A. Gottschalk, Robert J. Stock, Billy J. Leonard and
David Richardson. Also present was John Kuehl of D.A. Davidson &Co.
Absent: None.
Notice of the meeting was given in advance thereof by publication in The Daily Record on
January 25, 2021, a copy of the proof of publication being attached to these minutes. Notice of this meeting
was simultaneously given to all members of the Board of Trustees, and a copy of their acknowledgment of
receipt of notice is attached to these minutes. Availability of the agenda was communicated in the published
notice and in the notice to the Trustees of this meeting. All proceedings of the Board were taken while the
convened meeting was open to the attendance of the public. The agenda was at all times available at the
office for the District at 10250 Regency Circle, Suite 300, Omaha, Nebraska 68114.
The attorney for the District noted that the meeting was being conducted with one or more
individuals participating telephonically pursuant to Executive Orders 20-36 and 21-02 of the
Governor of the State of Nebraska, Pete Ricketts. The option to participate in the meeting
telephonically was provided to all individuals requesting such information and was posted at the
published location of the meeting at least one hour prior to the commencement of the meeting. It
was confirmed at the outset of the meeting that all telephone participants could hear and be heard
by those in physical attendance and those participating telephonically.
The meeting was called to order. Upon roll call, all of the above-referenced Trustees were present.
It was first publicly stated to all in attendance that a current copy of the Nebraska Open Meetings
Act was available for review and indicated the location of such copy in the room where the meeting was
being held.
There was next presented Change Order No. 1 with regard to Paving Reconstruction 2020 (Stone
Creek), which will result in an additional Six Thousand Three Hundred Fifty-Two and 60/100 Dollars
($6,352.60) being added to the contract granted to S&S Trenching, Inc. After discussion by the Board, the
following resolution was duly moved and seconded, and upon a roll call vote of the Trustees,
Darrel J. Lahmann, Frederic A. Gottschalk, Robert J. Stock, Billy J. Leonard and David Richardson voted
"Aye"with none voting "Nay"thereby passing and adopting the following resolution:
RESOLVED, by the Board of Trustees of Sanitary and Improvement
District No. 427 of Douglas County, Nebraska, that Change Order No. 1 to
the Paving Reconstruction 2020 (Stone Creek) project resulting in an
additional amount of $6,352.60 being added to the contract granted to
S&S Trenching, Inc., be accepted and approved and that the Chairman
and Clerk of the District be and they hereby are authorized and directed to
execute Change Order No. 1 for and on behalf of the District.
There were next presented miscellaneous bills, invoices, statements, and recommendations for the
Board's consideration.
The Clerk next presented to the Board the final estimate with regard to Paving Reconstruction 2020
(Stone Creek) and its installation by S&S Trenching, Inc., which recommended that a final and complete
payment be made in the total amount of Twenty-Nine Thousand Six Hundred Sixty-One and no/100 Dollars
($29,661.00) with such being final payment and the final estimate for work completed on such project. The
Clerk also presented the Certificate of Completion from the District's engineers, Lamp Rynearson,
recommending that final payment and acceptance of such project be made by the District. Upon a motion
duly made and seconded, and upon the following roll call vote, the Trustees, Darrel J. Lahmann,
Frederic A. Gottschalk, Robert J. Stock, Billy J. Leonard and David Richardson voted "Aye"with none voting
"Nay"thereby passing and adopting the following resolution:
RESOLVED, by the Board of Trustees of Sanitary and Improvement
District No. 427 of Douglas County, Nebraska, that the District's project
entitled Paving Reconstruction 2020 (Stone Creek) be accepted as
completed in accordance with recommendation of the District's engineers,
Lamp Rynearson and that final payment be made in the following
scheduled amount:
Contractor Amount
S&S Trenching, Inc. $29,661.00
There was next presented a statement from Lamp Rynearson, engineers for the District, for
services rendered for the project Paving Reconstruction 2020 (Stone Creek/Copper Ridge) through
December 12, 2020, Invoice #169, in the amount of Five Hundred Eighty-Two and 09/100 Dollars
($582.09).
There was next presented a statement from Pansing Hogan Ernst & Bachman LLP, attorneys for
the District, for legal services performed in construction-related matters, in the amount of One Thousand
Five Hundred Fifteen and no/100 Dollars($1,515.00).
There was next presented correspondence from Lamp Rynearson, engineers for the District,
presenting and recommending payment in favor of Commercial Seeding Contractors, for installation of snow
fence within the District, Invoice #23934, in the amount of One Thousand Nine Hundred Fifty-One and
75/100 Dollars ($1,951.75).
There was next presented correspondence from Lamp Rynearson, engineers for the District,
presenting and recommending payment in favor of Ron Steiner of Tom & Ron's Repair, for fence repair
within the District, Invoice#12251, in the amount of Nine Hundred Eighty-Two and no/100 Dollars ($982.00).
There was next presented correspondence from Lamp Rynearson, engineers for the District,
presenting and recommending payment in favor of Vierregger Electric Co., for entrance lighting
maintenance within the District, Invoice #6217, in the amount of One Hundred Twenty-Three and 44/100
Dollars ($123.44).
There were next presented statements from SunCo, for snow removal services, as follows: (i)
Invoice#0112962, in the amount of One Hundred Thirty-Nine and no/100 Dollars ($139.00), and (ii) Invoice
#0113020, in the amount of Three Hundred Two and 50/100 Dollars ($302.50); said statements being in the
aggregate amount of Four Hundred Forty-One and 50/100 Dollars ($441.50).
There were next presented statements from One Call Concepts, Inc., for line locates within the
District, as follows: (i) Invoice #0110605, in the amount of Eleven and 54/100 Dollars ($11.54), and (ii)
Invoice #0120607, in the amount of Six and 16/100 Dollars ($6.16); said statements being in the
aggregate amount of Seventeen and 70/100 Dollars ($17.70). The Board was next reminded that it
has a small credit balance in the amount of Twenty-One and 76/100 Dollars ($21.76). The Board
next directed advance payment to be made in the amount of Two Hundred and no/100 Dollars
($200.00).
There was next presented a statement from Lamp Rynearson, engineers for the District, for
services rendered in miscellaneous District maintenance matters through December 12, 2020, Invoice
#170, in the amount of Nine Hundred Twenty-One and 86/100 Dollars ($921.86).
There were next presented statements from Port-A-Johns, for restroom rental in November and
December, 2020, as follows: (i) Invoice #20-4372, in the amount of One Hundred Thirty-Seven and
15/100 Dollars ($137.15), and (ii) Invoice #20-4805, in the amount of One Hundred Thirty-Seven and
15/100 Dollars ($137.15); said statements being in the aggregate amount of Two Hundred Seventy-Four
and 30/100 Dollars ($274.30).
There was next presented a statement from Pansing Hogan Ernst & Bachman LLP, attorneys for
the District, for legal services performed in miscellaneous District matters through December 31, 2020, in
the amount of Three Thousand Three Hundred Fifteen and no/100 Dollars ($3,315.00), and costs
advanced in the amount of One Hundred Eleven and 70/100 Dollars ($111.70); said statement being in
the aggregate amount of Three Thousand Four Hundred Twenty-Six and 70/100 Dollars ($3,426.70).
There were next presented statements from Metropolitan Utilities District, for service at the location
of 5401 N. 163rd Street from October 29, 2020 through December 28, 2020, having a credit balance in
the amount of One Thousand Three Hundred Eighty-Four and 79/100 Dollars ($1,384.79), so no
payment is due at this time.
There were next presented statements from Metropolitan Utilities District, for sprinkler service at
the location of 15601 Curtis Avenue from October 28, 2020, through December 28, 2020, having a credit
balance in the amount of Nine Hundred Eighteen and 68/100 Dollars ($918.68), so no payment is
due at this time.
There were next presented statements from Metropolitan Utilities District, for service at the
location of 6161 N. 168th Street, Account #112000308653, in the amount of Ten and 06/100 Dollars
($10.06). The Board next directed advance payment to be made in the amount of Five Hundred and
no/100 Dollars($500.00).
There were next presented statements from Metropolitan Utilities District, for service at the
location of 15698 Hartman Avenue, Account#110000272757, having a credit balance in the amount of
Seven Hundred Ninety-Nine and 86/100 Dollars ($799.86), so no payment is due at this time).
There were next presented statements from Omaha Public Power District, for street lights at the
service location of 15600 Fort Street, from October 29, 2020, through December 30, 2020, in the aggregate
amount of Ten Thousand Two Hundred Seventy and no/100 Dollars ($10,270.00).
There were next presented statements from Omaha Public Power District, for entrance signs at the
service location of 15650 Curtis Avenue, 16798 Hartman Avenue and 16798 Kansas Avenue, Account
#1988976018, in the aggregate amount of Two Hundred Thirty-Seven and 17/100 Dollars($237.17).
The previously described bills, invoices, recommendations and statements having been presented
for the Board's consideration and after review and discussion of such items, the following resolution was
duly moved and passed:
RESOLVED, by the Board of Trustees of Sanitary and Improvement
District No. 427 of Douglas County, Nebraska, that the Chairman and
Clerk be and they hereby authorized and directed to execute and deliver
Warrant Nos. 4018 through 4025 of the District, dated the date of this
meeting, to the following payees and in the following amounts, said
Warrants to be drawn on the Construction Fund of the District and to draw
interest at the rate of seven percent (7%) per annum (interest to be
payable on February 10th of each year)and to be redeemed no later than
January 28, 2026, subject to extension of said maturity date by order of the
District Court of Douglas County, Nebraska, after notice is given as
required by law,to-wit:
Warrant Nos. 4018 through 4022, each for the amount of Five
Thousand and no/100 Dollars ($5,000.00), and Warrant No. 4023, for the
amount of Four Thousand Six Hundred Sixty-One and no/100 Dollars
($4,661.00), payable to S&S Trenching, Inc.
Warrant No. 4024, for the amount of Five Hundred Eighty-Two
and 09/100 Dollars($582.09), payable to Lamp Rynearson.
Warrant No. 4025, for the amount of One Thousand Five Hundred
Fifteen and no/100 Dollars ($1,515.00), payable to Pansing Hogan Ernst&
Bachman LLP.
FURTHER RESOLVED, by the Board of Trustees of Sanitary and
Improvement District No.427 of Douglas County, Nebraska, that the
Chairman and Clerk be and they hereby authorized and directed to
execute and deliver Warrant Nos. 4026 through 4038 of the District, dated
the date of this meeting, to the following payees and in the following
amounts, said Warrants to be drawn on the General Fund of the District
and to draw interest at the rate of six percent (6%) per annum and to be
redeemed no later than January 28, 2024, subject to extension of said
maturity date by order of the District Court of Douglas County, Nebraska,
after notice is given as required by law, to-wit:
Warrant No. 4026, for the amount of One Thousand Nine Hundred
Fifty-One and 75/100 Dollars ($1,951.75), payable to Commercial Seeding
Contractors.
Warrant No. 4027, for the amount of Nine Hundred Eighty-Two
and no/100 Dollars ($982.00), payable to Ron Steiner.
Warrant No. 4028, for the amount of One Hundred Twenty-Three
and 44/100 Dollars($123.44), payable to Vierregger Electric Co.
Warrant No. 4029, for the amount of Four Hundred Forty-One and
50/100 Dollars ($441.50), payable to SunCo.
Warrant No. 4030, for the amount of Two Hundred and no/100
Dollars($200.00), payable to One Call Concepts, Inc.
Warrant No. 4031, for the amount of Nine Hundred Twenty-One
and 86/100 Dollars ($921.86), payable to Lamp Rynearson.
Warrant No. 4032, for the amount of Two Hundred Seventy-Four
and 30/100 Dollars ($274.30), payable to Port-A-Johns.
Warrant No. 4033, for the amount of Three Thousand Four
Hundred Twenty-Six and 70/100 Dollars ($3,426.70), payable to Pansing
Hogan Ernst& Bachman LLP.
Warrant No. 4034, for the amount of Five Hundred and no/100
Dollars ($500.00), payable to Metropolitan Utilities District, Account
#112000308653.
Warrant Nos. 4035 and 4036, each for the amount of Five
Thousand and no/100 Dollars ($5,000.00), and Warrant No. 4037, for the
amount of Two Hundred Seventy and no/100 Dollars ($270.00), payable to
Omaha Public Power District,Account#7724100090.
Warrant No. 4038, for the amount of Two Hundred Thirty-Seven
and 17/100 Dollars ($237.17), payable to Omaha Public Power District,
Account#1988976018.
FURTHER RESOLVED by the Board of Trustees of Sanitary and
Improvement District No. 427 of Douglas County, Nebraska,that both they
and the district hereby find and determine and covenant, warrant and
agree as follows: the improvements and/or facilities being financed or
refinanced by the above Warrants are for essential governmental functions
and are designed to serve members of the general public on an equal
basis; all said improvements have from the time of their first acquisition
and construction been owned, are owned and are to be owned by the
District or another political subdivision; to the extent special assessments
have been or are to be levied for any of said improvements, such special
assessments have been or are to be levied under Nebraska law as a
matter of general application to all property specially benefited by said
improvements in the District; the development of the land in the District is
for residential or commercial use and the development of the land in the
District for sale and occupation by the general public has proceeded and is
proceeding with reasonable speed; other than any incidental use of said
improvements by a developer during the initial period of development of
said improvements, there have been, are and will be no persons with
rights to use such improvements other than as members of the general
public; none of the proceeds of said Bonds or any refinanced
indebtedness have been or will be loaned to any private person or entity;
the District hereby authorizes and directs the Chairperson or Clerk to file or
cause to be filed, when due, an information reporting form pursuant to
Section 149(e) of the Internal Revenue Code of 1986, as amended,
pertaining to the above Warrants; and the District does not reasonably
expect to sell or otherwise dispose of said improvements and/or facilities,
in whole or in part, prior to the last maturity of the above Warrants.
FURTHER RESOLVED by the Board of Trustees of Sanitary and
Improvement District No. 427 of Douglas County, Nebraska, that the
District hereby covenants, warrants and agrees as follows: (a) to take all
actions necessary under current federal law to maintain the tax exempt
status (as to taxpayers generally) of interest on the above Warrants; and
(b) to the extent that it may lawfully do so, the District hereby designates
the above Warrants as its "qualified tax exempt obligations" under
Section 265(b)(3)(B)(i)(III) of the Internal Revenue Code of 1986, as
amended, and covenants and warrants that the District does not
reasonably expect to issue warrants or bonds or other obligations
aggregating in the principal amount of more than $10,000,000 during the
calendar year in which the above Warrants are to be issued.
FURTHER RESOLVED, by the Board of Trustees of Sanitary and
Improvement District No. 427 of Douglas County, Nebraska, that this and
the preceding Resolutions are hereby adopted as the Certificate With
Respect to Arbitrage of the District pertaining to the above Warrants and
the District and the Chairman and Clerk of the District hereby further
certify, as of the date of the registration of the above Warrants with the
County Treasurer of Douglas County, Nebraska, as follows:
1. No separate reserve or replacement fund has been or will
be established with respect to the above Warrants. The District
reasonably anticipates that monies in its Bond Fund reasonably
attributable to the above Warrants in excess of the lesser of: (a) ten
percent (10%) of the net principal proceeds of the above Warrants, (b)the
maximum annual debt service due on the above Warrants, or (c) one
hundred twenty-five percent (125%) of average annual debt service due
on the above Warrants will be expended for payment of principal of and
interest on the above Warrants within thirteen (13) months after receipt of
such monies. That amount which is currently held in the District's Bond
Fund which exceeds the amount which is to be expended for payment of
principal and interest on the above Warrants within thirteen (13) months
after receipt of such monies, plus that amount arrived at pursuant to the
immediately preceding sentence, will not be invested in any securities or
any other investment obligations which bear a yield, as computed in
accordance with the actuarial method, in excess of the yield on the above
Warrants.
2. To the best of their knowledge, information and belief, the
above expectations are reasonable.
3. The District has not been notified of any listing of it by the
Internal Revenue Service as an issuer that may not certify its bonds.
4. This Certificate is being passed, executed and delivered
pursuant to Section 1.148-2(b)(2) of the Income Tax Regulations under
the Internal Revenue Code of 1986, as amended.
John Kuehl, of D.A. Davidson & Co, made a presentation regarding the debt of the District and in
particular, outstanding bonds of the District. Mr. Kuehl indicated that there are opportunities for the
Board, on the upcoming callable issues, to save almost $200,000.00 by refinancing such debt. The
Board directed at the conclusion of such discussion, counsel for the District as well as D.A. Davidson &
Co. to proceed with preparing the documentation for the refinancing with cash flow projections to be
forwarded to the Board in advance of its next meeting.
Mr. Kuehl also discussed with the Board the cash flow on the District's General Fund. It
appeared that during the current calendar year all outstanding General Fund Warrants could be retired
putting the District on a cash basis. The unusual expenditures in the General Fund were necessitated by
street repairs and other related capital improvements.
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The Clerk next reviewed the Agenda which had been available for public inspection in
accordance with the law prior to this meeting of the Board of Trustees and reported that all matters
considered by the Board at this meeting appeared on the Agenda.
Frederic A. Gottschalk, as Clerk for Sanitary and Improvement District No. 427 of Douglas County,
Nebraska (the "District") does hereby certify that the above proceedings are a true and accurate statement
of the proceedings had by the District at its January 28, 2021 meeting.
I
b Fes✓•.
Frederic A. Gottschalk, Clerk
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