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2021-10-19 SID 572 Minutes NOV 222'21 Am1O.10 City Clerk 0maha NE-man MINUTES OF MEETING OF SANITARY AND IMPROVEMENT DISTRICT NO. 572 OF DOUGLAS COUNTY, NEBRASKA A meeting of the Board of Trustees of Sanitary and Improvement District No. 572 of Douglas County, Nebraska, was convened in open and public session at 9:00 a.m. on the 19th day of October, 2021, at 10250 Regency Circle, Suite 300, Omaha, Nebraska. Present were: Christian Kloster, Nathan Bumgardner, Carri Owens, Zach Brown and Clint Poppe Jr. Also present: James D. Buser, attorney for the District, Ryan Bertucci of Kuehl Capital Corporation, municipal advisor for the District, and Bob Czerwinski of E & A Consulting Group, Inc., engineers for the District. Absent: None. Notice of the meeting was given in advance thereof by publication in The Daily Record on October 15, 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 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 in the room where the meeting was being held. Counsel for the District first presented the Certificate of Results of the Election from the Douglas County Election Commissioner with respect to the District's election of September 14, 2021. Such certificate indicated that Christian Kloster, Carri Owens, Zach Brown and Clnt Poppe Jr. had been elected to serve for a two (2) year term for the Board. It was indicated that each of such individuals were owners or designees of owners of real estate within the District boundaries (as defined by Section 31-727(3) Reissue Rev. Stat. of Neb. 1943) and, as a consequence, qualified to serve in such capacity. Each individual being in attendance at the meeting indicated a willingness to accept the position of Trustee on the Board. Discussion was next had with respect to the outstanding matters of the District and the powers and responsibilities of the Board in general. Discussion was also had concerning the fact that only four(4)Trustees were elected. Since the "All Property Owners" ballot only elected two (2) out of the three (3) allotted, the Board discussed the appointment of Nathan Bumgardner as Trustee to complete the five (5) member Board. Nathan Bumgardner was recommended and indicated a willingness to serve. Upon conclusion of such discussion, and upon a motion duly made and seconded and upon a roll call vote of the Trustees, Christian Kloster, Carri Owens, Zach Brown and Clint Poppe Jr. voted "Aye," with none voting "Nay," thereby adopting the following resolution: RESOLVED, by the Board of Trustees of Sanitary and Improvement District No. 572 of Douglas County, Nebraska, that Nathan Bumgardner be appointed to serve as Trustee to complete the five (5) member roster. Discussion was also had with respect to the powers and responsibilities of the positions of Chairman and Clerk of the District. Upon conclusion of all discussions concerning the election, the following roll call vote was taken during which the Trustees Christian Kloster, Nathan Bumgardner, Carri Owens, Zach Brown and Clint Poppe Jr. voting "Aye", with none voting "Nay", thereby adopting and approving the following resolution: RESOLVED, that Carrie Owens be hereby elected to serve in the capacity of Chairman for Sanitary and Improvement District No. 572 of Douglas County, Nebraska, until the next regularly scheduled election of the Board of Trustees. FURTHER RESOLVED, that Christian Kloster be hereby elected to serve in the capacity of Clerk for Sanitary and Improvement District No. 572 of Douglas County, Nebraska, until the next regularly scheduled election of the Board of Trustees. There was next presented the proof of publication of the Notice to Contractors for the construction of the improvements entitled 2021 Street Reconstruction(Grandview Ridge Estates). There was then presented the list of bids and bidders for such work specified within the Notice to Contractors with such bids having been taken on October 13, 2021, in accordance with the provisions of such Notice to Contractors. The bids having been individually reviewed by E &A Consulting Group, Inc., the District's engineers, and upon completion of such review, the engineers have submitted their Letter of Recommendation which the Clerk was directed to attach along with a copy of the bid tabulations to these minutes. After the Trustees had received the Letter of Recommendation directed to the District, it was reported that the recommendation of the engineers was the bid of B &W Co., Inc., for 2021 Street Reconstruction (Grandview Ridge Estates) in the amount of Sixty-Two Thousand Nine Hundred Sixty- Four and no/100 Dollars ($62,964.00) and that such amount be accepted. The Board was reminded that the Engineer's estimate of the construction cost of this project was Sixty-Eight Thousand Two Hundred and no/100 Dollars ($68,200.00). The District's engineers then indicated that it was their opinion that the rebidding of such project would yield no more beneficial pricing to the District than that presented by the previously specified bid and again recommended acceptance of such bid. It was further reported that the bid of B &W Co., Inc. was accompanied by the required bid bond, contract and maintenance bond in the amount of 100% of the contract price. After considerable discussion by the Board, the following resolution was duly moved and seconded upon a roll call vote of the Trustees, Christian Kloster, Nathan Bumgardner, Carri Owens, Zach Brown and Clint Poppe Jr., voted "Aye"with none voting "Nay"thereby adopting the following resolution: RESOLVED, by the Board of Trustees of Sanitary and Improvement District No. 572 of Douglas County, Nebraska, that the bid of B &W Co., Inc. in the total amount of$62,964.00 for the construction of 2021 Street Reconstruction (Grandview Ridge Estates) be accepted and approved and that the Clerk and Chairman of the District be and they hereby are authorized and directed to execute the contract of B &W Co., Inc., for and on behalf of the District. There were next presented miscellaneous bills, invoices, statements, and recommendations for the Board's consideration. fi I There was next presented Invoice #2771742 in favor of Kutak Rock LLP for bond counsel services rendered in connection with opinions on Construction Fund Warrant Nos. 695-955, in the amount of Four Thousand Two Hundred Thirty-Nine and 69/100 Dollars ($4,239.69). The attention of the Board of Trustees was next directed to the fact that Kuehl Capital Corporation, Financial Advisor of the District, for services in connection with CONSTRUCTION FUND warrants in the aggregate amount of Four Thousand Two Hundred Thirty-Nine and 69/100 Dollars ($4,239.69) and that the contracted financial advisor service fee is two and one-half percent (2.5%) or One Hundred Five and 99/100 Dollars ($105.99) in accordance with the agreement previously adopted by the Board. The Board recommended the issuance of a warrant for such amount to Kuehl Capital Corporation. The attention of the Board of Trustees was next directed to the fact that First National Capital Markets, Inc., as Underwriter for the District, will purchase CONSTRUCTION FUND warrants in the aggregate amount of Four Thousand Three Hundred Forty-Five and 68/100 Dollars ($4,345.68) and that the contracted charge for such purchase is two percent (2%) Eighty-Six and 91/100 Dollars ($86.91) in accordance with the agreement adopted by the Board. The Board recommended the issuance of a warrant for such amount to First National Capital Markets, Inc. There was next presented a statement from One Call Concepts, Inc., for line locates within the District, as follows: Invoice #1090652 in the amount of Thirty-Four and 25/100 Dollars ($34.25). The Board was next reminded that advance payment was made on March 25, 2021, in the amount of Seven Hundred Fifty and no/100 Dollars ($750.00)— there is a credit balance. There was next presented an invoice in favor of The Lawn Lion LLC for green area maintenance, as follows: Invoice #INV0037 in the amount of Three Thousand Two Hundred Sixty-Five and no/100 Dollars ($3,265.00). There were next presented invoices in favor of Turfbuilders Irrigation, Inc. for green area maintenance,as follows: (i) Invoice #1.9-385164 in the amount of Four Hundred Four and 94/100 Dollars • ($404.94), (ii) Invoice#19-385291 in the amount of One Hundred Ninety and no/100 Dollars ($190.00), (iii) Invoice #19-385316 in the amount of Two Hundred Forty-Four and 64/100 Dollars ($244.64), and (iv) Invoice#19-385447 in the amount of One Hundred Two and 64/100 Dollars ($102.64); such invoices being in the aggregate amount of Nine Hundred Forty-Two and 22/100 Dollars($942.22). There was next presented a statement from Pansinq Hogan Ernst & Bachman LLP, attorneys for the District, for legal services rendered, in miscellaneous district matters through September 30, 2021, in the amount of Two Thousand Nine Hundred Twenty-Nine and 50/100 Dollars ($2,929.50), and costs advanced in the amount of Five Hundred Thirty-Six and 86/100 Dollars ($536.86); such statement being in the aggregate amount of Three Thousand Four Hundred Sixty-Six and 36/100 Dollars ($3,466.36). There was next presented a statement from Omaha Public Power District, for street lights, Account #4118205607, from August 30, 2021, to September 29, 2021, in the amount of One Thousand Two Hundred Nine and 87/100 Dollars($1,209.87). The attention of the Board of Trustees was next directed to the fact that Kuehl Capital Corporation, as Financial Advisor for the District, will place Eight Thousand Eight Hundred Eighty-Three and 45/100 Dollars ($8,883.45), in GENERAL FUND warrants at this time and that the contracted charge for such placement of warrants is two and one-half percent (2.5%) or Two Hundred Twenty-Two and 09/100 Dollars ($222.09), in accordance with the financing agreement previously adopted by the Board. The Chairman recommended the issuance of a warrant for such amount to Kuehl Capital Corporation. The attention of the Board of Trustees was next directed to the fact that First National Capital Markets, Inc., as Underwriter for the District, purchased GENERAL FUND warrants in the aggregate amount of Nine Thousand One Hundred Five and 54/100 Dollars ($9,105.54), at this time, and that the contracted charge for such purchase is two percent (2%) or One Hundred Eighty-Two and 11/100 Dollars ($182.11) in accordance with the agreement adopted by the Board. The Board recommended the issuance of a warrant for such amount to First National Capital Markets, Inc. 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. 572 of Douglas County, Nebraska, that the Chairman and Clerk be and they hereby authorized and directed to execute and deliver Warrant Nos. 1338 through 1340 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 April 1 of each year) and to be redeemed no later than October 19, 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 No. 1338, for the amount of Four Thousand Two Hundred Thirty-Nine and 69/100 Dollars ($4,239.69), payable to Kutak Rock LLP. Warrant No. 1339, for the amount of One Hundred Five and 99/100 Dollars($105.99), payable to Kuehl Capital Corporation. Warrant No. 1340, for the amount of Eighty-Six and 91/100 Dollars($86.91), payable to First National Capital Markets, Inc. FURTHER RESOLVED, by the Board of Trustees of Sanitary and Improvement District No. 572 of Douglas County, Nebraska, that the Chairman and Clerk be and they hereby authorized and directed to execute and deliver Warrant No. 1341 through 1346 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 seven percent(7%) per annum and to be redeemed no later than October 19, 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. 1341, for the amount of Three Thousand Two Hundred Sixty-Five and no/100 Dollars ($3,265.00), payable to The Lawn Lion LLC. Warrant No. 1342, for the amount of Nine Hundred Forty-Two and 22/100 Dollars($942.22), payable to Turfbuilders Irrigation, Inc. Warrant No. 1343, for the amount of Three Thousand Four Hundred Sixty-Six and 36/100 Dollars ($3,466.36), payable to Pansinq Hogan Ernst& Bachman LLP. Warrant No. 1344, for the amount of One Thousand Two Hundred Nine and 87/100 Dollars ($1,209.87), payable to Omaha Public Power District, Account#4118205607. Warrant No. 1345, for the amount of Two Hundred Twenty-Two and 09/100 Dollars($222.09), payable to Kuehl Capital Corporation. Warrant No. 1346, for the amount of One Hundred Eighty-Two and 11/100 Dollars ($182.11), payable to First National Capital Markets, Inc. FURTHER RESOLVED by the Board of Trustees of Sanitary and Improvement District No. 572 of Douglas County, Nebraska, that both they and the District hereby find and determine and covenant, and warrant and agree that (a) the facilities for which the above Warrants are issued are for essential governmental functions and are designed to serve members of the general public on an equal basis; (b) there are no persons with rights to use said facilities other than as members of the general public; (c) ownership and operation of said facilities is within the District or another political subdivision; (d) none of the proceeds of the Warrants will be loaned to any person and to the extent that special assessments have been or are to be levied for any said facilities, 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 such facilities in the District; (e) the development of the land in the District is for residential or commercial use; (f) the development of the land in the District for sale and occupation by the general public is proceeding with reasonable speed; and (g) the District hereby authorizes and directs the Chairman or Clerk to file, when due, an information reporting form pursuant to Section 149(e) of the Internal Revenue Code of 1986 pertaining to the above Warrants. FURTHER RESOLVED by the Board of Trustees of Sanitary and Improvement District No. 572 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 $5,000,000 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. 572 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. Mr. Buser discussed, for the benefit of the newly elected Trustees, the processes and procedures for the operation of the District and introduced the new Board members to the other District consultants. There was a discussion led by Mr. Buser regarding the"F"Street Improvements project. The Board was briefed on the processes for the approval of the Interlocal Cooperation Agreement and there was discussion regarding the timing of the project for the 2022 calendar year. There was next a discussion led by Mr. Buser and Mr. Czerwinski regarding the existing siphon performance issues and the difficulty in determining the cause of the siphon defect. Mr. Czerwinski indicated that he would keep the Board informed as to the status of the investigation. Mr. Buser relayed that he would be sending letters to Thompson Construction and Olsson advising them of the on-going siphon issue and potential liability. Finally, Ms. Owens led a discussion regarding existing maintenance and landscaping issues within the District boundaries. Mr. Czerwinski agreed to investigate options for improving the condition of one of the District's detention basins to permit easier maintenance and there was discussion regarding a fence issue to be addressed by the Homeowners Association on the NRD property adjacent to the District. [THE BALANCE OF THIS PAGE LEFT INTENTIONALLY BLANK - SIGNATURES APPEAR ON THE FOLLOWING PAGE] 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. et). s-s , as Clerk for Sanitary and Improvement District No. 572 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 October 19, 2021, meeting. CPa.,s,s,ru,1 /< c -ez_ , Clerk