City Council moved to stop seeking a grant to partially finance an upgrade of the UPRR underpass on Chestnut Street.  The motion passed 3-1 with Council Members Baliman, Schnell and Warner voting yes and Haun voting no.The discussion on the matter came about because the State kicked back the underpass bid specifications for further polishing. It is now necessary for the Nebraska Department of Roads to process the bid when Federal funds are involved. The Federal Government has ruled that bids for Nebraska municipal projects involving Federal funds must go through NDOR. Federal oversight groups have found some Nebraska projects to be inefficiently managed and has decreed that NDOR be the official bidder.Other Federal regulations state that trained and certified personnel on the municipal payroll oversee  these municipal projects.  The City of Kimball and Kiimball county have no such trained and certified personnel available in Nebraska now. So NDOR is the agent for all Nebraska governmental projects using Federal funds for two years while more personnel are trained.The consensus of council was to seek a lower cost approach to upgrading the underpass.Don Dye, an engineer with M. C. Schaaf, and City Attorney Darrel Huenergardt cautioned council that getting permission to do work on UPRR right-of-way is difficult and time-consuming. Dye said, “It’s not reasonable, it’s UPRR.”Mayor Dinges told councildropping the underpass project that has been ongoing since 2002, means the city will still spend $500,000 to do a minimum upgrade and will lose $600,000 in grant funding.A cost of $5,000, of which $2,000 would be paid by Kimball, is required to polish up the underpass specifications to NDOR standards. Council balked on this extra cost with the resulting motion to stop seeking grant money. On the issue of extending utilities to newly annexed of established  areas, Council Member Warner thought the city should pay the cost of getting utilities to the property line when established areas are annexed. Warner said the cost should be paid for in higher utility rates for customers in the city as it exists after the annexation - but the added tax base resulting from the annexation should lower city property tax requirements on each property owner.Steve Diemoz, resident in the proposed Phase II annexation area, said,”I don’t have a city sewer connection at my property line now.”Warner replied,” If you flush your toilet, it runs into the city waste water plant. We would not make a new connection,”City Manager Farrar said there were old situations, piggy-back connections, that would have to be clarified.Haun said he was uncomfortable with the Phase II annexation project. He spoke of feedback from constituents who favored the Phase I (rail spur) annexation and the Fair Grounds part of Phase II, but no more than that. Other council members voiced similar contacts.Several members of  the public then voiced opposition to the Phase II project.At this point, Haun moved that Ordinance 650, the Phase II annexation, be adopted on first reading.After a 30 second pause, Dinges ruled the motion dead for lack of a second.Council instructed Farrar to develop costs estimates and to draft a written policy for the utility extensions that would be part of Phase II annexation.The sidewalk cafe Ordinance 652 also came in for considerable discussion. Huenergardt was instructed to redraft the ordinance with modifications to fence heights and area rental fees. The ordinance provides for five feet of clear sidewalk passage, unless council acts to allow narrower passageway in answer to specific requests.Routine consent items and a budget work timeline were approved. The timeline includes budget workshops on August 19, 26 and 31, if needed. These sessions are open to the public.A sign permit for Steven Ransom at 1214 S. Oak St. and a Special Designated Liquor License for Greg’s Grubb were approved. The license permits a two night outdoor beer garden July 31 and August 1 behind Greg’s Grub.A $2,500 Keno grant was approved for the Farmer’s Day Committee.,Next council meeting is July 15.