Kearney City Council Meeting - June 24, 2025

The Kearney City Council met on June 24, 2025, at 5:30 p.m. in City Council Chambers. The meeting featured a proclamation honoring retiring tourism leader Roger Jasnoch, the introduction of new Finance Director Brian Schultz, three public hearings for the McCaslin Subdivision (rezoning and final plat), and a contested regular agenda item on the selection of a new Keno lottery operator. Council also approved a consent agenda containing ten routine items. The Keno operator award generated extensive public comment and debate before the council voted to accept the committee's recommendation.

Consent Calendar

• Approved the minutes of the regular meeting held June 10, 2025.
• Approved the claims as presented.
• Received Planning Commission recommendations and set July 8, 2025 at 5:30 p.m. as the date for hearings on applicable applications.
• Authorized the Mayor to send a letter of no recommendation to the Nebraska Liquor Control Commission regarding the manager application for Christel Armstrong (Walmart Inc dba Walmart 598, 5411 2nd Avenue).
• Accepted the RFQ for Kearney Volunteer Fire Department Station No. 3 and adopted Resolution 2025-67 awarding the contract to Wilkins + Parkhill.
• Adopted Resolution 2025-68 approving a Developer Constructed Infrastructure Agreement for Elementary School Second Addition (water main to serve Lot 1).
• Adopted Resolution 2025-69 approving a Developer Constructed Infrastructure Agreement for The Meadows Second Addition (water, sewer, paving, and storm sewer).
• Approved plans and specifications for the Harmon Park Pool Tub Sandblasting and Painting Project and set the bid opening for July 15, 2025 at 2:00 p.m.
• Authorized disposal of a 2008 American LaFrance Condor Sideload Refuse Truck by the method most advantageous to the city.
• Approved annual renewal of manufactured home court licenses for East Lawn Mobile Homes Estates, Countryside Mobile Home Park, L & M Mobile Home Park, and Cornhusker Trailer Court, and granted an extension until July 16, 2025 for Valley View Mobile Home Court to correct deficiencies.

Public Comments & Testimony

• Keno Operator Award (Regular Agenda Item 1): Approximately ten members of the public spoke during the hearing. Speakers expressed strong preference for keeping Keno local, supporting either Kearney Gaming (the incumbent) or Community First Keno (a new consortium of local bar owners). Common concerns included: (1) loss of in-bar Keno writers, which could reduce service to patrons; (2) profits leaving the community if an out-of-town operator (Big Red Keno of Omaha) is chosen; (3) potential decline in Keno handle due to lower pay tables and removal of the live ball draw from the Chicken Coop; (4) the timing of the vote, with some requesting a delay to gather more public input. A petition with 232 signatures was presented. One speaker noted that Big Red Keno does not have contracts with existing satellite locations, unlike Kearney Gaming. The Chamber of Commerce president advocated for supporting local operators. No public speakers explicitly supported the committee's recommendation to award the contract to Big Red Keno.

Discussion Items

• Proclamation Honoring Roger Jasnoch: Mayor Nikkila read a proclamation recognizing Roger Jasnoch's nearly 40 years of service to Kearney's tourism and hospitality industry, including roles on the Nebraska Tourism Commission, work on the Kearney Welcome Center, and bringing numerous state and regional events to the city. The proclamation was dated June 24, 2025. Jasnoch accepted and encouraged the city to begin work on the next sports complex, Archway, and Yanney Park.
• Introduction of Finance Director Brian Schultz: City Manager Brenda Jensen introduced Brian Schultz, formerly of Grand Island, as the new Finance Director. Schultz had 10 years of municipal finance experience. Outgoing Finance Director Kayla James will remain through the end of the fiscal year to assist with the transition.
• Public Hearings 1-3 – McCaslin Subdivision: Craig Bennett of Miller & Associates presented the application for Keith L. McCaslin to rezone a vacant parcel north of 6740 North 2nd Avenue from AG (Agricultural) to C-O (Office District) and C-2 (Community Commercial District), and to approve the final plat and subdivision agreement. The property is located near 56th Street and 2nd Avenue, currently undeveloped. The subdivision will create four lots (three acres, three acres, 4.3 acres, and 4.17 acres). No immediate utility connections exist; development will rely on well/septic until water and sewer become available. The public hearings were opened and closed with no public testimony. All three items were approved unanimously.
• Keno Operator RFP Discussion: City Manager Brenda Jensen outlined the RFP process that began in 2022. A committee of nine members (four city staff, two council members, three citizens) evaluated three proposals using eight weighted criteria. Scores: Big Red Keno – 36.4; Kearney Gaming – 31.5; Community First – 22.5. Key factors in the recommendation: Big Red Keno's experience (operating 279 locations statewide), a guaranteed 8.75% of sales revenue (compared to the current minimum 5%, with actuals averaging 7.4%), inclusion in a larger Omaha prize pool allowing top prizes up to $250,000 (current max $50,000), a planned Keno app rolling out July 16, 2025, and a $200,000 contribution to the community betterment fund. The city currently receives approximately $850,000–$900,000 annually from Keno. Revenue has declined from $964,000 (FY2022) to $720,000 (FY2024). Council members who served on the committee stated they followed the scoring process objectively and could not disregard it. Several council members noted the importance of adhering to a fair RFP process to maintain integrity for future bids. Concerns were raised about potential loss of handle due to removal of the live ball draw and a less favorable pay table, but the app was seen as a potential offset. The $200,000 gift was clarified as being directed to the Keno community betterment fund, governed by state statute and distributed by a citizen committee to local nonprofits—not a personal benefit to council. Council also addressed a claim that the process was flawed, but found no evidence of impropriety.

Key Outcomes

• Resolution 2025-70 (Keno Operator): Following public testimony and discussion, the Council voted 4-0 (Mayor Nikkila, Vice-President Buschkoetter, Council Member Moore, Council Member Schmidt, Council Member Kotsiopulos all voted aye; one member abstained?) to adopt the resolution awarding the contract to EHPV Lottery Services, LLC dba Big Red Keno. The contract begins August 2025, with a short transition period anticipated.
• Ordinance 8748 (Rezone to C-O): Passed and approved for publication. (Vote: 5-0)
• Ordinance 8749 (Rezone to C-2): Passed and approved for publication. (Vote: 5-0)
• Resolution 2025-44 (McCaslin Final Plat): Approved. (Vote: 5-0)
• Consent Agenda Items 1–10: Approved unanimously.
• Open Account Claim (Regular Agenda Item 3): Approved (Mayor Nikkila abstained due to his employment with the University of Nebraska system). The claim is for $310.00 to the University of Nebraska Omaha.