2023-05-11 SID 494 Minutes MINUTES OF MEETING
OF
SANITARY AND IMPROVEMENT DISTRICT NO.494
OF DOUGLAS COUNTY, NEBRASKA
A meeting of the Board of Trustees of Sanitary and Improvement District No. 494 of Douglas
County, Nebraska, was convened in open and public session at 1:00 p.m. on the 11th day of May, 2023, at
10250 Regency Circle, Suite 300, Omaha, Nebraska.
Present were: Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and
Dean T. Hokanson, Ill. Also, in attendance was Mark LaPuzza, attorney for the District.
Absent: None.
Notice of the meeting was given in advance thereof by publication in The Daily Record, on May 5,
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.
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.
The next order of business was discussion regarding roads and culverts in the District. Corky
Buell noted that the last of currently scheduled work had been performed shortly before the meeting.
These areas will continue to be monitored.
The next order of business was discussion regarding the funds of the District held by the Douglas
County Treasurer's Office. Roger Motz noted that D.A. Davidson, the fiscal agent of the District, noted
certain reserve funds of the District relating to the District's previous Chapter 9 reorganization were being
held in a separate fund by the Douglas County Treasurer. The reorganization having been finalized and
closed, there is no reason for such funds to continue to be held separately. The Trustees discussed it
would be in the best interest of the District for such funds to be transferred to the general fund of the
District. After discussion and upon a motion duly made and seconded, and upon a roll call vote, the
Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and Dean T. Hokanson, III
voted "Aye"with none voting "Nay"with the following resolution being thereby adopted and approved:
RESOLVED, that the Board of Trustees of the District hereby directs the
Douglas County Treasurer to transition any funds being held in any
account related to the District reorganization into the general fund of the
District.
RESOLVED FURTHER that D.A. Davidson is hereby authorized and
directed to communicate with the Douglas County Treasurer as necessary
to request and complete the transfer.
The next order of business was discussion regarding four properties which are scheduled to be
sold at auction by the Douglas County Sheriff at the direction of the Omaha Municipal Landbank and
Douglas County Attorney's office. There was first a discussion regarding the effect of the auctions. The
Trustees were informed that, in the event the properties are purchased by a bidder, the District will be
made whole for all outstanding special assessments. However, if there are no bids, the properties will
transition to the control of the Land Reutilization Commission at which time the properties can be sold
without any payment to the District. The potential for this scenario had been discussed many times in the
past, but this was the first opportunity which the Trustees considered that the District might place a bid on
such properties.
The first two properties discussed were 2512 N. 138th Street and 2516 N. 138th Street. Corky
Buell presented that these lots were originally the location of the District water well and other operating
equipment related to the well. The Trustees discussed that the complexity of the history of the well lots
had an impact on the potential value and marketability such that the potential net income from such sales
was uncertain, after all sale expenses, to create substantive value to the District. After extensive
discussion among the Trustees, there was a general agreement that the District would not receive
significant benefit from the purchase of such properties. After a motion duly made and seconded, and upon
a roll call vote, the Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and
Dean T. Hokanson, Ill voted "Aye" with none voting "Nay" with the following resolution being thereby
adopted and approved:
RESOLVED, that the District shall not place any offer of purchase for the
auction of the properties located at 2512 N. 138th Street and 2516 N. 138th
Street.
The next order of business was discussion regarding the Sheriff's sale of the property located at
13612 Ohio Street. The Trustees discussed that this was a lot located on pavement and buildable based
upon all information by the Trustees. It was discussed that the opening bid for the property was expected
to be approximately $41,281.00. Of this amount, approximately $11,985.00 would be payable to parties
other than the District. As the District would be able to submit a credit for such property, the District would
be required, at a later time, to produce the difference between the District special assessments and the
bid price. Special assessments payable to the District, including principal and interest, total
approximately $29,295.94. The Trustees discussed it would be far preferable to the District that such lot
be sold to a third party at Sheriff's sale as such a sale would produce payment to the District in full of all
outstanding special assessments.
In the absence of such a bid, however, the District considered that the difference between the
out-of-pocket amount to the District and the fair market value of the property appeared to warrant
consideration of bidding. Although the value of the property is not specifically known at this time, the
Trustees discussed a general expectation that the fair market value of the property was approximately
$30,000.00 to $35,000.00. This was based upon recent sales of other similar properties in the District in
private sales not involving the District. The Trustees acknowledge that the true value of the lot is
unknown. However, the consensus of the Trustees was that the property could be sold for significantly
more than the out-of-pocket purchase price, allowing the Trustees the opportunity to protect the rights of
the District to payment. Roger Motz noted that he intended to abstain from voting with respect to this lot.
He noted that the lot was near his personal residence and other properties which he owns and he might,
in the future, have an interest in purchasing the property. In order to avoid the appearance of impropriety,
he would abstain from any vote on the purchase of the property by the District. After a motion duly made
and seconded, and upon a roll call vote, the Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson
and Dean T. Hokanson, Ill voted "Aye" with Roger Motz abstaining from the and none of Trustees voting
"Nay"with the following resolution being thereby adopted and approved:
RESOLVED, that the District hereby elects to place a minimum bid at the
Sheriffs sale of the property located at 13612 Ohio Street in the event that
there are no other bidders for the property.
RESOLVED FURTHER, that Mark LaPuzza is hereby authorized and
directed to place such bid on behalf of the District and take such further
action as reasonably necessary, following such bidding to arrange for
confirmation of the sale and obtain title to the property.
The next order of business was discussion regarding the property located at 12507 N. 138th
Street. The Trustees discussed that the opening bid for such property is expected to be approximately
$44,331.27, with the out-of-pocket cost to the District being approximately$15,718.73 after accounting for
special assessments due to the District in the approximate amount of$23,612.00. There was significant
discussion regarding the value of this property. It was specifically discussed that the size and orientation
of the lot was such that the viability of the lot for residential construction was a concern. Additionally, trees
on the property would need to be removed at significant expense. The Trustees generally discussed that
the value of the property likely exceeded the out-of-pocket cost to the District for the initial purchase, but
that the costs of sale and potential property improvements in preparations made the prospect of any net
recovery to the District uncertain. After a motion duly made and seconded, and upon a roll call vote, the
Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and Dean T. Hokanson, Ill
voted "Aye"with none voting "Nay"with the following resolution being thereby adopted and approved:
RESOLVED, that the District shall not place any offer of purchase for the
auction of the properties located at 12507 N. 138th Street.
The next order of business was discussion regarding the sale of two lots held in the inventory of
the Land Reutilization Commission (the "LRC"). The Trustees discussed that the property located at
13611 Ohio Street had approximately $34,334.00 in specials outstanding and payable to the District. The
District has tentatively been given the opportunity to purchase such lot for $5,000.00 out-of-pocket. An
offer has been received by the LRC which, if the District consented, would provide $15,000.00 in payment
to the District and an additional $6,000.00 in payment to the LRC. This offer was submitted by Pat Earl to
the LRC.
The next order of business was discussion regarding the property located at 2530 N. 137th Street
which the Trustees discussed had approximately $31,881.00 in specials outstanding and payable to the
District. The District has tentatively been given the opportunity to purchase such lot for $5,000.00 out-of-
pocket. An offer has been received by the LRC which, if the District consented, would provide
$15,000.00 in payment to the District and an additional $5,000.00 in payment to the LRC. This offer was
submitted by Mark Abboud to the LRC.
It was discussed that the foreclosure of these properties by previous Sheriff's sale had been
brought into question due to notice deficiencies and that the District had retained its rights to collect
special assessments. For this reason, the LRC has notified bidders that any bids for the purchase of the
property would require payment in full of outstanding special assessments to the District. Other lots have
sold under these requirements. However, for the two lots presently being considered for sale, the LRC
had received bids that would require the District to compromise the outstanding special assessments
owed in exchange for the discounted payment amounts in those offers.
There was then an extended discussion regarding the nature and use of the lots, the feasibility for
residential construction and other matters affecting the desirability and value of such lots. The Trustees
also discussed the process by which the sale of the lots would need to be contemplated including, without
limitation, building requirements, timing restrictions, penalties and repurchase rights. The Trustees also
•
discussed the expected use of the properties by the proposed purchasers. The offer received from Pat
Earl, if accepted, was likely to result in the landscaping and maintenance of the property but not
construction of a new residential structure, as the property was contiguous to other owned by Pat Earl.
The intended use of the lot sought by Mark Abboud was expected to be residential construction as he has
built and sold other houses within the development.
The Trustees discussed it would be necessary and appropriate for the Trustees to consider a
response to the offers received. The Trustees discussed that such matters involving negotiation and
strategy were best considered in an executive session. Upon a motion duly made and seconded and upon
a roll call vote, all the Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and
Dean T. Hokanson, III voted "Aye"with none voting "Nay"thereby adopting the following resolution:
RESOLVED that, as of 2:10 p.m., the meeting moved into executive
session for the express purpose of discussing a response to offers on
LRC lots.
At 2:23 p.m., the public meeting of the Board of Trustees of Sanitary and Improvement District
No. 494 of Douglas County, Nebraska was reconvened.
It was then 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. After the public session of the meeting was reopened, Mark LaPuzza exited the meeting
room to invite any members of the public to rejoin the meeting. Finding none, the meeting commenced.
The next order of business was discussion regarding the proposals from the LRC and bidders
related to 13611 Ohio Street and 2530 N. 137th Street. The Trustees discussed that neither offer of
compromise is acceptable in light of the value of the lots. After a motion duly made and seconded, and
upon a roll call vote, the Trustees, Charles W. Buell, Gary L. Shipley, Richard L. Wilson, Roger L Motz and
Dean T. Hokanson, III voted "Aye" with none voting "Nay" with the following resolution being thereby
adopted and approved:
RESOLVED, the District rejects the proposed offers of compromise from
the LRC related to the properties located at 13611 Ohio Street and 2530
N. 137th Street.
RESOLVED FURTHER that Mark LaPuzza is hereby authorized and
directed to notify the LRC of the decision of the District and to notify the
LRC that, in the absence of an offer of payment in full the District is ready,
willing, and able to purchase each property at the previously negotiated
purchase price of$5,000.00 per lot.
There were next presented miscellaneous bills, invoices, statements, and recommendations for the
Board's consideration.
There was next presented an invoice from Valley Corporation, Invoice #26781, in the amount of
Nine Hundred Ninety-Six and 07/100 Dollars ($996.07).
There was next presented an invoice from Lutz & Company, PC, for professional services
rendered, Invoice#322184, in the amount of Three Hundred Thirty and no/100 Dollars ($330.00).
There was next presented an invoice from One Call Concepts, Inc., for line locates within the
District, Invoice #3031023, in the amount of Four and no/100 Dollars ($4.00). The Board was next
reminded that it has a credit balance in the amount of Forty-Seven and 88/100 Dollars ($47.88), so
no payment is due at this time.
There were next presented invoices from Corky Buell, for maintenance of roads, as follows: (i)
Invoice#2639, in the amount of Two Hundred and no/100 Dollars ($200.00), and (ii) Invoice#2642, in the
amount of Seven Hundred Eighty-Seven and 50/100 Dollars ($787.50); said invoices being in the
aggregate amount of Nine Hundred Eighty-Seven and 50/100 Dollars ($987.50).
There was next discussion concerning Jeff Melies'work performed in clearing and removing trees
and brush. The Board received Invoice #1273, from Jeff Melies, in the amount of Fourteen Thousand
Four Hundred Fifty and no/100 Dollars ($14,450.00). The Board was next reminded that on
September 15, 2022, the District had prepared and approved General Fund Warrant Nos. 1532 through
1534, in the aggregate amount of Fourteen Thousand Three Hundred Seventy-Five and no/100 Dollars
($14,375.00). The Board requested that those Warrants be held until the work had been completed and
those warrants have since been released to D.A. Davidson & Co for processing and payment. With the
presentation of this invoice, the Board agrees that the additional Seventy-Five and no/100 Dollars
($75.00) is due to Jeff Melies.
There was next presented a statement from Pansing Hogan Ernst & Bachman LLP, attorneys for
the District, for legal service performed through April 30, 2023, in the amount of Six Thousand Four
Hundred Eighteen and no/100 Dollars ($6,418.00), and costs advanced in the amount of Fifty-Two and
40/100 Dollars ($52.40); said statement being in the aggregate amount of Six Thousand Four Hundred
Seventy and 40/100 Dollars ($6,470.40).
There was next presented an invoice from Moore's Concrete Construction, Inc., for road work
SRM and loader, Invoice#1-494-23, in the amount of Five Hundred Forty and no/100 Dollars ($540.00).
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. 494 of Douglas County, Nebraska, that the Chairman and
Clerk be and they hereby authorized and directed to execute and deliver
Warrant Nos. 1553 through 1559 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 May 11, 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. 1553, for the amount of Nine Hundred Ninety-Six and
07/100 Dollars($996.07), payable to Valley Corporation.
Warrant No. 1554, for the amount of Three Hundred Thirty and
no/100 Dollars($330.00), payable to Lutz&Company, PC.
Warrant No. 1555, for the amount of Nine Hundred Eighty-Seven
and 50/100 Dollars ($987.50), payable to Corky Buell.
Warrant No. 1556, for the amount of Seventy-Five and no/100
Dollars ($75.00), payable to Jeff Melies.
Warrant No. 1557, for the amount of Five Thousand and no/100
Dollars ($5,000.00), and Warrant No. 1558, for the amount of One
Thousand Four Hundred Seventy and 40/100 Dollars ($1,470.40), payable
to Pansing Hogan Ernst& Bachman LLP.
Warrant No. 1559, for the amount of Five Hundred Forty and
no/100 Dollars ($540.00), payable to Moore's Concrete Construction, Inc.
FURTHER RESOLVED by the Board of Trustees of Sanitary and
Improvement District No. 494 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. 494 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. 494 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.
[THE BALANCE OF THIS PAGE LEFT INTENTIONALLY BLANK—
SIGNATURES APPEAR ON THE FOLLOWING PAGE]
The Chairman 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.
Gary L. Shipley, as Clerk for Sanitary and Improvement District No. 494 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 May 11, 2023 meeting.
/ 7-7
Gary L.6.5hipley, Clerk 7- i