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2023-02-28 SID 572 Minutes 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 28th day of February, 2023, at 10250 Regency Circle, Suite 300, Omaha, Nebraska. Present were: Carri Czyz, Christian Kloster, and Clint Poppe, Jr. Also present: James D. Buser, attorney for the District, J.P. Platisha of Bluestem Capital Partners, municipal advisor for the District, and Bob Czerwinski of E &A Consulting Group, Inc., engineers for the District. Absent: Zach Brown and Nathan Bumgardner. Notice of the meeting was given in advance thereof by publication in The Daily Record on February 22, 2023, 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. The Board was next presented with correspondence from Bluestem Capital Partners, underwriters for the District, recommending the annual interest due on April 1, 2023, in the amount of$3,879.01 be paid with cash from the District's Construction Fund account, with Bluestem Capital Partners to coordinate the transfer of funds between the Douglas County Treasurer's office and SID Services prior to the interest date. The Board unanimously approved the recommendation of Bluestem Capital Partners. There were next presented miscellaneous bills, invoices, statements, and recommendations for the Board's consideration. There were next presented statements from One Call Concepts, Inc., for line locates within the District, as follows: (i) Invoice #2090659 in the amount of Twenty-Seven and 16/100 Dollars ($27.16), (ii) Invoice #2100661 in the amount of Twenty-Seven and 16/100 Dollars ($27.16), (iii) Invoice #2110662 in the amount of Twenty-Two and 32/100 Dollars ($22.32), (iv) Invoice#2120665 in the amount of Four and no/100 Dollars ($4.00), (v) Invoice #3010668 in the amount of Four and 80/100 Dollars ($4.80); such invoices being in the aggregate amount of Eighty-Five and 44/100 Dollars ($85.44). The Board next approved advance payment in the amount of Seven Hundred Fifty and no/100 Dollars($750.00). There was next presented an invoice dated December 12, 2022, in favor of Douglas County Engineer, for sign maintenance, in the amount of Two Hundred Ninety-One and no/100 Dollars($291.00). There was next presented and invoice in favor of Turfbuilders Irrigation, Inc. for green area maintenance, as follows: Invoice#19-388654 in the amount of One Hundred Sixty-Five and 25/100 Dollars ($165.25). There were next presented invoices in favor of Linear Lawn & Landscaping for green area maintenance, as follows: (i) Invoice#3802 in the amount of Seven Hundred Eighty-Five and no/100 Dollars ($785.00), (ii) Invoice#3805 in the amount of Seven Hundred Fifty and no/100 Dollars($750.00), (iii) Invoice #3838 in the amount of Four Hundred Sixty and no/100 Dollars ($460.00), (iv) Invoice #3841 in the amount of Seven Hundred Fifty and no/100 Dollars ($750.00); such invoices being in the aggregate amount of Two Thousand Seven Hundred Forty-Five and no/100 Dollars($2,745.00). There was next presented a statement from FNIC, as follows: Invoice#189907 for general liability insurance in the amount of One Thousand Three Hundred Fifty-Five and no/100 Dollars($1,355.00). There was next presented a statement from Lutz &Company, PC, for accounting services rendered in connection with final bill for completion of the 2022-23 budget and progress bill related to audited financial statements, as follows: Invoice #320612 in the amount of Four Thousand One Hundred Fifty and no/100 Dollars($4,150.00). There were next presented invoices from E & A Consulting Group, Inc., engineers for the District, for services rendered in miscellaneous matters, as follows: (i) Invoice #163624 in the amount of Five Thousand Six Hundred Fifty-Seven and 35/100 Dollars ($5,657.35), (ii) Invoice #164183 in the amount of Two Thousand Four Hundred Ninety-Six and 92/100 Dollars ($2,496.92), (iii) Invoice#164660 in the amount of Two Thousand Four Hundred Fourteen and 42/100 Dollars ($2,414.42), (iv) Invoice #165028 in the amount of Two Thousand Two Hundred Thirty and 79/100 Dollars ($2,230.79); such invoices being in the aggregate amount of Twelve Thousand Seven Hundred Ninety-Nine and 48/100 Dollars($12,799.48). There was next presented a statement from Pansing Hogan Ernst & Bachman LLP, attorneys for the District, for legal services rendered, in miscellaneous district matters, in the amount of Three Thousand Nine Hundred Thirty-Four and 50/100 Dollars ($3,934.50), and costs advanced in the amount of Two Hundred Sixty-Four and 30/100 Dollars ($264.30); such statement being in the aggregate amount of Four Thousand One Hundred Ninety-Eight and 80/100 Dollars ($4,198.80). There were next presented statements from Omaha Public Power District, for street lights, Account #4118205607, from August 29, 2022, to January 30, 2023, in the aggregate amount of Six Thousand Two Hundred Twenty-Two and 23/100 Dollars ($6,222.23). There were next presented invoices in favor of The Lawn Lion LLC for landscaping maintenance, as follows: (i) Invoice #INV0097 in the amount of Two Thousand One Hundred Seventy-Five and no/100 Dollars ($2,175.00), and (ii) Invoice #INV0091 in the amount of Four Thousand Five Hundred Ninety-Five and no/100 Dollars ($4,595.00); such invoices being in the aggregate amount of Six Thousand Seven Hundred Seventy and no/100 Dollars ($6,770.00). The Board was informed that according to the attached Annual Dues Statement dated February 23, 2023, the Grandview of Omaha Residential Owners Association had paid the contractor and was requesting reimbursement from the District. The Board approved payment in favor of Grandview of Omaha Residential Owners Association. 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 No. 1426 through 1439 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 February 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 No. 1426, for the amount of Seven Hundred Fifty and no/100 Dollars($750.00), payable to One Call Concepts, Inc. Warrant No. 1427, for the amount of Two Hundred Ninety-One and no/100 Dollars ($291.00), payable to Douglas County Engineer. Warrant No. 1428, for the amount of One Hundred Sixty-Five and 25/100 Dollars($165.25), payable to Turfbuilders Irrigation, Inc. Warrant No. 1429, for the amount of Two Thousand Seven Hundred Forty-Five and no/100 Dollars ($2,745.00), payable to Linear Lawn & Landscaping. Warrant No. 1430 for the amount of One Thousand Three Hundred Fifty-Five and no/100 Dollars ($1,355.00), payable to FNIC. Warrant No. 1431, for the amount of Four Thousand One Hundred Fifty and no/100 Dollars($4,150.00), payable to Lutz & Company, PC. Warrant Nos. 1432 and 1433, each for the amount of Five Thousand and no/100 Dollars ($5,000.00), and Warrant No. 1434, for the amount of Two Thousand Seven Hundred Ninety-Nine and 48/100 Dollars ($2,799.48), payable to E &A Consulting Group, Inc. Warrant No. 1435, for the amount of Four Thousand One Hundred Ninety-Eight and 80/100 Dollars ($4,198.80), payable to Pansinq Hogan Ernst& Bachman LLP. Warrant No. 1436, for the amount of Five Thousand and no/100 Dollars ($5,000.00), and Warrant No. 1437, for the amount of Six Thousand Two Hundred Twenty-Two and 23/100 Dollars ($6,222.23), payable to Omaha Public Power District, Account#4118205607. Warrant No. 1438, for the amount of Five Thousand and no/100 Dollars ($5,000.00), and Warrant No. 1439, for the amount of One Thousand Seven Hundred Seventy and no/100 Dollars ($1,770.00), payable to Grandview of Omaha Residential Owners Association. 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. There was next presented for the consideration of the Trustees the plans and specifications for 2023 Trash Removal (Grandview Ridge Estates) prepared by E&A Consulting Group, Inc., the consulting engineers for the District, for the cost of such improvement in the total amount of Sixty Thousand One Hundred Twelve and no/100 Dollars ($60,112.00). It was directed to attach a copy of the engineer's estimates of the costs to the minutes of these proceedings. After discussion, the resolution attached hereto and by this reference made a part hereof was duly introduced and upon a motion properly made and seconded, a roll call vote was had upon such motion during which the Trustees, Carri Czyz, Christian Kloster, 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 a hearing be had on the proposed Resolution of Advisability and Necessity for the construction of 2023 Trash Removal(Grandview Ridge Estates) at 10250 Regency Circle, Suite 300, Omaha, Nebraska, at 9:00 a.m. on April 13, 2023, at which time owners of the property within the District who might become subject to assessment for the improvement contemplated by the proposed Resolution of Advisability and Necessity may appear and make objections to the proposed improvement, and if a petition opposing the proposed resolution is signed by property owners representing the majority of the front footage which may be subject to assessment for the costs of improvements set out in the resolution is filed with the Clerk of the District within three days before the date set for hearing on such resolution, such resolution shall and will not be passed. FURTHER RESOLVED, that notice of such hearing be given by publication in The Daily Record of Omaha, Douglas County, Nebraska, for two (2) consecutive weeks beginning on the 30th day of March, 2023, and ending on the 6th day of April, 2023, which publication shall contain the entire wording of the proposed Resolution of Advisability and Necessity, and that notice shall be posted in three (3) conspicuous places within the District as required by Section 31-745, Reissue Rev. Stat. of Neb. 1943. J.P. Platisha of Bluestem Capital Partners next reviewed the Snapshot Report and financial condition of the District. There was discussion next led by Mr. Buser and Mr. Czerwinski regarding paving maintenance for the District. Mr. Czerwinski indicated that typically his office would conduct a street assessment following the spring street cleaning. After discussion by the Board, it was determined that Mr. Czerwinski should proceed with a survey of the District's streets and would report back to the Board once the review was complete. Mr. Czerwinski next reported that his office was in the process of securing bids for street sweeping, which he anticipated would be received within the next week. There was next discussion regarding ongoing construction by Valley Corp. on Outlot C to accommodate Iron Bluff sanitary sewer connection. Ms. Czyz asked Mr. Czerwinski to provide correspondence regarding such construction activities so that the neighbors could be advised of this issue. There was next discussion regarding mowing services for 2023. Following discussion, the Board determined that they would like to proceed with engaging Lawn Lion to provide mowing services on a month-to-month basis with any additional fertilization or weed control to be provided on an as-needed basis. Ms. Czyz indicated she would follow up with Lawn Lion and coordinate the arrangements with Mr. Czerwinski. There was next discussion regarding the F Street Improvement project. Mr. Buser led a historical discussion regarding the project and reminded the Board of prior correspondence indicating that the estimated project cost was now nearly double the original estimated project cost. Mr. Platisha then reviewed the impact which such additional costs would have on the District finances and that the District was not in a financial position to bear the increased cost of the project. After much discussion, the Board approved Mr. Buser communicating the District's position regarding the increased cost to the other stakeholders in the project. There was next discussion regarding an invoice submitted by E & A Consulting Group, Inc. for design fees for the F Street Improvement project. Mr. Buser communicated that the invoice was for design fees and services that were tied to the original project costs, as opposed to the increased project costs. Following discussion, it was determined that payment of such invoice would be addressed at the next meeting of the Board, but that the Board would be amenable to paying such invoice with the understanding that the District was not agreeing to pay any additional fees based on the increased project costs. Mr. Kloster next disclosed to the Board that his last lot within the District was under contract and he anticipated a closing at the end of March. He therefore indicated that he would need to resign from the Board as of the next meeting. Ms. Czyz indicated that she would work on identifying a replacement Board member. [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. Christian Kloster, 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 February 28, 2023, meeting. Christian Kloster, Clerk