08/19/2014 Minutes CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL SPECIAL MEETING
August 19, 2014
Pursuant to due call and notice thereof, a Special Meeting of the City Council of the City of
Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First
Street, on August 19, 2014. Notice of the meeting was given in the Grand Island Independent on
August 16, 2014.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following Councilmembers
were present: Vaughn Minton, Mike Paulick, Mark Stelk, John Gericke, Peg Gilbert, Mitch
Nickerson, Linna Dee Donaldson, Chuck Haase, Julie Hehnke, and Kent Mann. The following
City Officials were present: City Administrator Mary Lou Brown, City Clerk RaNae Edwards,
City Treasurer and Finance Director Jaye Monter, City Attorney Robert Sivick, and Public
Works Street Superintendent Shannon Callahan.
INVOCATION was given by Community Youth Council member Diego Tum-Monge followed
by the PLEDGE OF ALLEGIANCE.
Mayor Vavricek introduced Community Youth Council member Diego Tum-Monge and board
member Maria Lopez.
SPECIAL ITEMS:
CRA 2014-2015 Proposed Annual Budget. Regional Planning Director Chad Nabity gave an
overview of the Community Redevelopment Authority (CRA) budget. The CRA was requesting
property tax revenues of$686,119 with a proposed levy of$0.026.
The CRA budget highlights were: operating expenses - $88,550; façade improvement -
$200,000; property purchase - $200,000; Lincoln Pool, bond payment principal and interest -
$198,050; other projects - $175,000; and Fire, Life Safety and Infrastructure Grants - $200,000.
The following carry over projects were mentioned: Kaufman Park project; Life Safety Grant for
Tower 217; J Elizabeth Façade Grant; and Ryan Waind Chiropractic office.
Reviewed were the proposed Fire, Life Safety and Infrastructure Grant Program. The goal was to
add 50 additional upper story residential units in Downtown Grand Island within the next 5
years. Improvements needed would include but were not limited to: fire sprinklers, additional
exits, monitoring equipment, fire separation walls, and elevators to meet fire and building code
requirements. This 5 year program, beginning with the 2015 fiscal year, was proposed to be
funded by the City of Grand Island - $100,000 and the CRA - $100,000 to be match by private
funds from the developer. Funds would not be paid until Occupancy Certificates were obtained
for new residential units. The program would be reviewed by the CRA annually beginning with
the 2017 fiscal year budget and presented to Council with the CRA budget. The program could
be cancelled or suspended based on the results of the review.
The following people spoke in support of the Fire, Life Safety and Infrastructure Grant Program:
• Jeremiah Krance, 201 West 17th Street
Page 2,City Council Special Meeting,August 19,2014
- • Tom Ziller, 324 West 18th Street
• Amos Anson, 4234 Arizona Avenue
Comments were made by Council of the importance of revitalizing Downtown. Discussion was
held concerning the process for approving the grants.
Motion by Gilbert, second by Haase to approve the CRA budget as presented with the Fire, Life
Safety and Infrastructure Grant Program. Upon roll call vote, all voted aye. Motion adopted.
Motion by Donadlson, second by Gilbert to reduce the $250,000 item for the study of the Fire
Station and backup Emergency 911 Center be reduced to $50,000 to relocate the 911 Center.
Discussion was held regarding the appropriateness of this motion as this time. City Attorney Bob
Sivick stated due to the open meetings laws and this item not being on the agenda this should be
brought back at a later date.
Tracy Overstreet representing The Grand Island Independent spoke in opposition of the motion
and commented on filing a complaint with the City due to the number of changes of the agendas
less than 48 hours before the meetings.
Insurance Reserve Fund. Finance Director Jaye Monter updated the Council on the cash reserve
balances within the Insurance Reserve Fund. The Insurance Reserve Fund consisted of Worker's
Compensation, General Insurance, and Health Insurance funds. Total budgeted for 2015 was
$5,602,347. Claims had increased and $8,409,000 was budgeted for 2015. Proposed 2015 ending
cash balance for General Property was $713,835; Work Comp - $879,347; and Health Insurance
- $3,109.165.
RESOLUTIONS:
2014-231 Consideration of Approving Health Insurance Renewal with Blue Cross Blue Shield.
Human Resources Director Brenda Sutherland reported the City had a partially self-funded
health and dental benefits plan for its employees. Claims were paid by the premium dollars
generated through the plan to a specified limit and a third party, Blue Cross Blue Shield of
Nebraska, administered and paid claims and provided stop loss coverage.
Explained was the Health Savings Account (HSA) and the recommendation of increasing the
HSA contribution to $1,250 for single coverage and $2,500 for family coverage. Also
recommended was to adjust the contribution for new employees based on their starting date to be
calculated quarterly. The funding level for the 2014-2015 budget would remain the same as last
year at $7.2 million.
Councilmember Minton recused himself from this item.
Motion by Nickerson, second by Paulick to approve Resolution#2014-231.
Discussion was held regarding increasing the HSA Seed fund. Ms. Sutherland stated the goal
was to incentivize employees to move to the high deductible plan and continue to control rising
costs with increased consumerism. Explained was the transitional fee.
Page 3,City Council Special Meeting,August 19,2014
Motion by Gilbert, second by Paulick to leave the HAS contribution at the same level. Upon roll
call vote, Councilmembers Stelk, Gilbert, Hehnke, Haase, and Donaldson voted aye.
Councilmembers Paulick, Gericke, Nickerson, and Mann voted no. Mayor Vavricek cast the
sixth and deciding no vote. Motion failed.
Upon roll call vote of the main motion, Councilmembers Paulick, Stelk, Gericke, Nickerson,
Hehnke, Haase, Donaldson, and Mann voted aye. Councilmember Gilbert voted no. Motion
adopted.
#2014-232 - Consideration of Approving Voluntary Employee Vision Plan. Human Resources
Director Brenda Sutherland reported that as part of the City's comprehensive benefit package to
its employee, vision was not included. Request for proposals had been issued for a voluntary
employee vision plan with no funding from the City. Eye Med from Mason, OH had been
recommended to provide the voluntary vision plan.
Motion by Paulick, second by Minton to approve Resolution #2014-232. Upon roll call vote, all
voted aye. Motion adopted.
OTHER ITEMS:
Food and Beverage Occupation Tax Ballot Language. Finance Director Jaye Monter reported
that any ballot measure for voter consideration in the 2014 General Election would need to be
submitted to the Hall County Election Office no later than September 2, 2014. The current food
and beverage occupation tax would expire on December 31, 2015. Any new occupation tax or
rate increase would be subject to voter approval.
The following potential allocation of the tax proposed was:
• Provide a funding source for the Nebraska State Fair host city expense (2015 budget
amount is $425,000).
• Remainder of the revenue would be dedicated to the city's capital improvement projects.
The following people spoke in support of using part of this money for marketing the City of
Grand Island:
• Cindy Johnson, President of the Chamber of Commerce, 309 West 2nd Street
• Brad Mellema, Director of the Convention and Visitors Bureau
• Joseph McDermott, Executive Director of the Nebraska State Fair
• Steve Kunzman, President of Fonner Park, 2408 Riverside Drive
• Lewis Kent, 624 Meves Avenue
Comments were made concerning the importance of bringing events to the City. Mr. McDermott,
Ms. Johnson, and Mr. Mellema commented on incentives to bring events to Fonner Park. Mr.
Kunzman asked why this had to be decided now since this tax did not sunset until December 31,
2015. Comments were made by Council to take more time to discuss this issue.
Motion by Minton, second by Stelk to approve the ballot language as presented for the Food and
Beverage Occupation Ballot.
Comments were made concerning changes in the governing body and wanting to hear their
thoughts before this issue is decided.
Page 4,City Council Special Meeting,August 19,2014
Motion by Gilbert, second by Hehnke to postpone this matter until after the budget has been
completed after the first of October. Upon roll call vote, Councilmembers Minton, Paulick, Stelk,
Gericke, Gilbert, Hehnke, Haase, Donaldson, and Mann voted aye. Councilmember Nickerson
voted no. Motion adopted.
ADJOURN TO EXECUTIVE SESSION: Motion by Gilbert, second by Haase to adjourn to
Executive Session at 9:33 p.m. for the purpose of a strategy session with respect to labor
negotiations with IBEW- Utilities. Unanimously approved.
RETURN TO REGULAR SESSION: Motion by Paulick, second by Gilbert to return to Regular
Session at 10:28 p.m. Unanimously approved.
ADJOURNMENT: The meeting was adjourned at 10:28 p.m.
RaNae Edwards
City Clerk