08/15/2023 Minutes StudyC1TY OF
GRAND�ISLAND►
City Council Meeting Minutes
Council Chambers
City Hall
100 East First Street
Study Session (Budget) of August 15, 2023
6:00 PM
1.
CALL TO ORDER
Pursuant to due call and notice thereof, a Study Session (Budget) 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 July 18, 2023. Notice of the meeting was given in The Grand Island Independent on
August 9, 2023. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The following
City Council members were present: Bethany Guzinski, Chuck Haase, Jack Sheard, Mike
Paulick, Mark Stelk, Mitchell Nickerson, Doug Lanfear, and Jason Conley. Councilmembers
Maggie Mendoza and Michelle Fitzke were absent. The following City Officials were present:
City Administrator Laura McAloon, Deputy City Clerk Jill Granere, Assistant City
Administrator/Finance Director Patrick Brown, Assistant City Attorney Stacy Nonhof and
Interim Public Works Director Keith Kurz.
2.
ITEMS FOR DISCUSSION
a. Electric Budget Presentation
Interim Utilities Director Ryan Schmitz reported that the Electric personnel expenses would
increase 4%. There was no new FTE's being requested.
The Administration and operating expenses would increase by 4.6%:
• Administrative Cost increase of 10.6% (5% of requested budget)
• Cost of Power increase of 4.5% (62% of requested budget)
• Distribution O&M increase of 10.5% (6% of requested budget)
Schmitz mentioned the following Capital Projects:
• Substation Security Upgrades ($500,000)
• Motor Operated Disconnect Upgrades ($150,000)
• CIS & MDM ($150,000) — Going Live October 30th
Overhead Materials Capital Projects:
• New/Replaced Infrastructure ($1,850,000)
• AMI Meter Deployment ($950,000)
• LED Streetlight Upgrades ($200,000)
Page 2 of 8, City Council Study Session, August 15, 2023
Underground Materials Capital Projects
• New/Replaced Infrastructure ($3,250,000)
• Outside Contractors ($175,000)
Bottom Ash Upgrades:
• 10% Retainer on Upgrade Project ($200,000)
Solar Farm
• $11,916,381 (70% of Total Cost)
Mentioned were Capital Equipment for $1,145,000
• Dump Truck -$0 ($140k — Delivery in FY24-25)
• Utility Truck - $60,000 (Delivery FY23-24)
• Bucket Truck -$240,000 (Approved in FY21-22 Budget — Delivery in FY23-24)
• Digger Derrick -$435,000 (Approved in FY21-22 Budget — Delivery in FY23-24)
• Utility Truck -$60,000 (Approved in FY22-23 Budget — Delivery in FY23-24)
• Bucket Truck -$350,000 (Approved in FY22-23 Budget — Delivery in FY23-24)
• Bucket Truck -$0 ($225k Approved in FY21-22 Budget — Delivery in FY24-25)
Capital Equipment (Distribution Building Improvements)
• Rooftop HVAC Units - $40,000
• Purchase Building at 1204 W. North Front -$100,000
Mentioned were Reimbursements to General Fund
• Finance — 38%
• Information Technology — 35%
• Human Recourses — 23%
• City Hall Buildings — 20%
• Administration — 15%
• Legal —15%
• Clerk's Office —15%
Other Contributions to General Fund:
• Payment in Lieu of T� -%5 of Gross Retail Revenue of $3,318,000
• Customer Billing and O&M — City Use Tax Revenue of $794,000 (Anticipated additional
of $280,000 due to solar field construction in 2024)
Also mentioned were the pricing increased from 1.SX to 4.SX per transformer in the last 2 years.
Discussion was held on cash reserves and the benefits of owning our own utilities.
b. Water Budget Presentation
Interim Utilities Director Ryan Schmitz reported the personnel services would increase 11 %.
Two new FTE's are being requested. Administrative and Operating Expense would increase by
26.8%. Administrative cost increase of 17.6%, cost of pumping and treatment increase of 9.4%
and distribution O&M increase of 96.6%.
Page 3 of 8, City Council Study Session, August 15, 2o23
Mentioned were the following Capital Projects:
• CIS — Installation & Commissioning -$75,000 (Going Live Oct. 30tn)
• Info Water Model Updates - $60,000
• Water Main Districts — Unplanned Developments -$225,000
Distribution Improvement Projects:
• Howard (Capital to College) - $765,000
• Highway 30 Fire Hydrant Relocates -$30,000
• Ludlow Fire Hydrant Replacements - $75,000
Building Upgrades:
• Replace Roof on Old Fire Station No. 2-$100,000
• Seal Bricks on Water Shop -$75,000
Wellfield Improvements:
• Uranium System Upgrades - $200,000
• Wellfield PLC and Fiber Upgrades -$20,000
• High Pressure Well Controls Upgrades -$80,000
Pumping Station Improvements:
• Rogers Pumping Station PLC Upgrades -$67,000
Mentioned was Capital Equipment of a Hydro VAC Trailer in the amount of $130,000.
Mentioned was Reimbursements to General Fund:
• Finance — 20%
• Administration —10%
• Legal —10%
• Clerk's Office —10$
• City Hall Buildings — 9%
• Information Technology — 3%
• Human Resources — 2%
• Payment in lieu of Tax — 2% of Gross Retail Revenue in the amount of $138,000
• Customer Billing and O&M — City use of Tax Revenue in the amount of $29,000
• Building Department — Backflow in the amount of $75,000
Mentioned was the average increase in materials of 167% in the last 3 years.
Discussion was held on water resources and water testing.
c. Public Works Administration and Engineering Budget Presentation
Interim Public Works Director Keith Kurz reported personnel services would increase by 18.2%
($206,060) with Engineering increasing by 15.88% ($127,006) and Administration increasing by
Page 4 of 8, City Council Study Session, August 15, 2023
23.83% ($79,054). Operating Expenses would increase by 2.6%, engineering increasing by
6.37% ($7,500) attributed to vehicle maintenance and filing fees and administration decreasing
by 0.16% ($250) due to reduction in office supplies.
Mentioned was a 2014 F150 4X4 Pickup, which will replace older 2wd pickup that will be sold
at the Police Auction.
d. Solid Waste Division Budget Presentation
Solid Waste Superintendent Jeff Wattier reported the enterprise fund receives no funding from
the General Fund. All revenues generated from tipping fees, they are one of the few divisions
with competition and they serve residents and non-residents. Mentioned was the landfill site life
of 18 years in current area (cells 1, 2 and 3) and approximately 26 years left in total Phase I area
(cells 1, 2, 3 and 4). Ce114 engineering with start in FY2024 and construction was anticipated for
FY2025. This would allow them to eliminate the need for the current storm water pumps at the
landfill.
Mentioned were continued capital replacement schedule at the transfer station of a new truck-
tractor and a new dozer and UTV at the landfill.
Mentioned was the Transfer Station facility improvement to modify operations and facility so it
could better handle current and future traffic and tonnage. This would benefit customers and staff
in lowering time at the facility. Plans are completed and ready for bid with budget approval.
Project costs are up from the original estimate.
Mentioned was personnel expense took up 16% of the budget for $1,549,161, operations were
15% for $1,438,050 and capital expenses were 69% for $6,785,000.
Mentioned were Capital Expenditures:
• Landfill Ce114 - $2,500,000
• Transfer Station trailer - $125,000
• Transfer Station wheel loader - $220,000
• Transfer Station truck-tractor - $150,000
• Begin Transfer Station improvements - $6,000,000
Mentioned was an updated Cost of Service Study, which recommended a 2.75% rate increase for
10 years to pay for initial estimate of $4.2 million Transfer Station facility upgrades. Due to
inflation and supply issues, the transfer station cost was estimated at $6 million showing a cost
increase of $2.5 million. With that increase, now are proposing a 4.2% rate increase for 5 years.
Cash reserve will be used to service debt until rates catch up.
e. Wastewater Division Budget Presentation
Assistant Public Works Director Matt Walker reported FY2023 Capital Projects:
Clarifier Rehabilitation - $71,000
WWTP Building - $165
Page 5 of 8, City Council Study Session, August 15, 2023
• Facility Security - $50,000
• Flow Improvements - $5,014,200
• Makeup Air Unit Solids Handling -$51,975
• UV System Upgrade - $60,000
• SS Capital Outlay-Construction - $85,000
• Central NE Regional Airport Sanitary Sewer Rehab -$4,000,000
• Relocate Lift Station No. 17 -$1,280,000
• Lift Station No. 28 Equalization Tanks -$2,030,000
• Lift Station No. 1 Rehabilitation $160,000
• 2022 Sanitary Sewer Rehab - $762,000
Mentioned were proposed Capital Projects
• WWTP Flow Improvements - $2,385,000/$9,438,132
• Manhole Rehabilitation - $690,000
• Open-cut Main Repairs — 450,000
• Lift StationNo. - $544,000/$1,971,675
• Sewer Assessment District — Northview - $200,000/$1,700,000
I
I
• Septage Receiving Station - $113,300
• UV System Upgrades - $100,212
• Online Flow Monitoring - $94,719
• Sanitary Sewer Rehabilitation - $89,919/$1,252,984
� Collections Building Improvements - $25,750
Mentioned were Vehicle Purchases: (Replaced vehicles will be traded or auctioned)
• Service Locates Pickup - $50,000
• Engineering Tech Pickup - $50,000
• Biosolids Dump Truck - $175,000
Walker reported the following 2024 Funding Sources:
• Projected 2023 Ending Cash Balance -$7,333,156
• Revenue - $15,449,000
Total Revenue of $22,782,156
• Operating Costs - $10,226,505
• Loan/Bond Payments - $4,186,702
• Capital Expenses - $4,967,900
Total Expenditures of $19,381,107 with ending cash balance of $3,401,049.
Walker explained cost of service rate studies were completed in FY19 and FY23 with an
increase of 3%.
f. Street Division Budget Presentation
Street Superintendent Shannon Callahan reported the Street Division Office and Fleet Services at
1111 W. North Front was leased from the Union Pacific Railroad and the 22 year lease expires in
Page 6 of 8, City Council Study Session, August 15, 2023
2023. New lease begins November 1, 2023 in the amount of $14,300 which was an increase of
3%. Callahan stated a larger facility will be needed in the future.
Callahan mentioned programs by Spring, Summer, Fall and Winter.
Mentioned were continuous (non-seasonal) functions as follows:
• Sweeping Call-Outs (spills and accidents)
• Traffic Signal Call-Outs
• Adopt-A-Road Bag Collection
• Downtown & Special Event Street Sweeping
• Special Event Traffic Control
• Rezone & Conditional Use Sign Postings
• Underground Utility Locates (storm sewer & signals)
• Sign and Guardrail Repairs
• Curb Milling
• Alley Grading
• New Street Name Signs
Callahan mentioned Storm Sewer manholes, inlets and pipes and cleaning program.
Mentioned were pavement conditions and ratings.
Discussion was held on hiring outside agencies for line locating vs. a new FTE.
Callahan reported Proposed FY 2024 Budget as follows:
• Personnel - $2,824,402
• Operating - $2,831,820
• Non-Capital Projects - $1,842,400
• Capital Equipment -$1,187,379 ($371,850 is carried over from last FY)
Callahan mentioned the request for 1.0 FTE for an Equipment Operator.
Mentioned was the proposed increase in operating budget due to material costs and inflation for
concrete, asphalt, lumber, signs, road de-icing chemicals (salt), roadway striping pain and fuel.
Non-Capital Projects mentioned were:
• Asphalt Resurfacing Project
• Contracted Concrete Repair
Traffic Signal Infrastructure and Equipment Upgrades
Callahan reported funds carried from previous FY were as follows:
• Well/Hydrandt Install at West Yard
• Salt Spreader Truck (FY21/22 to arrive fall of 2023)
• 10 CY Dump Truck (FY22/23)
• Deck Over Tilt Top Trailer (FY 22/23)
Page 7 of 8, City Council Study Session, August 15, 2023
Requested for this FY are as follows:
• Building frame repair
• Skid Steer Buyback
• Sewer Vac/Flush Truck (payment 5 of 5)
• Snow Heaver Attachment (payment 3 of 5)
• Street Sweeper (payment 3 of 5)
• Skid Steer Trailer
• Salt Spreader Truck
• Street Sweeper
• Forklift
• Asphalt Reclaiming/Trenching Machine (down payment)
• 1/z Ton Pickup
Mentioned were Street Maintenance and Capital Roadway Projects.
Mentioned were sources obligated for roadway maintenance and construction as follows:
• Highway Allocation "Gas Tax"
• Motor Vehicle, Fees„ Property TaY & Local Sales Tax
• NDOT Maintenance Agreement
• Street Superintendent Incentive Payment
• Federal Fund Purchase Program, Surface Transportation & Bridge
� %2 Cent Sales Tax
• 410 Capital Equipment Fund
g. Fleet Division Budget Presentation
Street Superintendent Shannon Callahan reported the Fleet Services Office and Shop Garage at
1111 W. North Front would require larger bays in the future. The proposed FY2023 Budget were
personnel of $468,053, operating expense of $1,157,161 and revenue of $1,671,339. No
additional staffing would be requested. The operating and capital budget was proposed to
increase by 6.7% due to fuel and parts prices. No capital purchases were planned.
Mentioned were the following revenues:
• Light Duty Equipment -$118
• Heavy Duty Equipment - $145.50
• Parts Procurement and Sales — 25% Mark-Up
Fuel Procurement and Sales
h. Transit Division Budget Presentation
Transit Program Manager Charley Falmlen reported FY2022-2023 accomplishments included a
rollout of new software which included touch-free payment options, completion and published
the Transit Development Plan, Successful closeout of Federal Transit Administration's Triennial
Review and published a Request for Proposals for Transit Provider.
Page 8 of 8, City Council Study Session, August 15, 2023
Mentioned were FY2023/FY2024 Overview:
• Contract Services - $1,866,684
• Administration & Planning Services - $243,495
• Capital Vehicles - $732,227
For a total of $2,842,406.
Mentioned was continuing to purchase new vehicles as there is significant delays, lineate Hall
County and City services and a new 5 year contract award scheduled for September 2023.
Discussion was held on city bus system and a fixed route.
i. Budget Questions and Overview of New Budget Software
3.
ADJOURN
The meeting was adjourned at 9:32 p.m.
�yZLrL2 t•L,.>
J 1 Granere
Deputy City Clerk