08-19-2003 City Council Study Session PacketCity of Grand Island
Tuesday, August 19, 2003
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Marlan Ferguson
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Peg Gilbert
Joyce Haase
Margaret Hornady
Robert Meyer
Mitchell Nickerson
Don Pauly
Jackie Pielstick
Larry Seifert
Scott Walker
Fred Whitesides
City of Grand Island City Council
Call to Order
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future
Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council
action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date
will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to
speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
City of Grand Island City Council
Item -1
Discussion Concerning Interlocal Agreement with Hall County
Regarding SWAT Team
Earlier this year discussions took place between the City Attorney, County Attorney, Chief of
Police and County Sheriff regarding the need for an interlocal agreement between the City of
Grand Island and Hall County to define the relationship between the two governmental
entities who are involved with the SWAT team. The agreement is a draft prepared by the
Hall County Attorney for discussion purposes. The City Council has not had an opportunity
to discuss the various issues regarding the formation and use of a SWAT team and this
agreement is being submitted at this time to initiate that process.
Tuesday, August 19, 2003
Study Session
City of Grand Island
Staff Contact: Kyle Hetrick and Doug Walker
City of Grand Island City Council
Item -2
Future Power Supply
Differing fuel costs create a substantial difference in the cost of generation. Platte
Generating Station produces electricity with a fuel cost of about $10/MWh; Burdick Station
is fired by natural gas and produces power for a volatile $80/MWh. In 2002, Grand Island's
retail electric rate averaged $47.30/MWh. To maintain the present rate structure, production
from Burdick Station must be limited to peaking service only.
For the past two summers, peak demand has exceeded 150 MW. Platte Generating Station
can supply only 100 MW of the demand. The recently completed Combustion Turbine
installation will help to control fuel costs. Unlike the Burdick Station steam generation,
which must run for extended periods, combustion turbine operation can be restricted to peak
load periods only.
Peak demand is growing at a projected rate of 2.29%. Grand Island has generating
resources to satisfy peak demands for an extended period of time; this will require extensive
operation of the Burdick Station steam generation. The price of energy is determined by our
generation mix, which will grow more uneconomical as energy needs grow. Energy sales are
increasing 3.2% per year. By 2007 it is expected that the natural gas fired Burdick Station
will be needed for every month of the year. To remain competitive, Grand Island needs
additional base load capacity in the 2010 to 2012 time frame.
Therefore, the Utilities Department continues to explore a number of options to add low cost,
base load, coal fired resources to the current power generation mix. At present, there are
three coal plant projects being evaluated in Nebraska; 1) Omaha Public Power (OPPD), a
600 MW plant at Nebraska City. 2)Hastings Utilities and Nebraska Municipal Power Pool
(HU/NMPP), a 220 MW plant at Hastings and: 3)Nebraska Public Power District (NPPD), a
400 MW plant at the CHAAP or at a site in the northeast part of the state.
In order to put these options, and associated costs, in perspective, the following information
provides general information. It must be stressed that the tabulated figures are rough, round,
order of magnitude numbers intended for only general comparison of the capital costs of the
various options.
The table also shows a hypothetical addition to Grand Islands Platte Generating Station. A
PGS addition would be half the size of the HU/NMPP plant and have higher capital cost.
Additionally, higher than average coal costs decrease the competitive viability of the potential
addition to Platte Generating Station.
Tuesday, August 19, 2003
Study Session
City of Grand Island
City of Grand Island City Council
1. Option Comparisons: Project Sponsor: 1) OPPD, Date of Operation: 2009, Cost Per KW:
$1400, GI Share: 30MW, GI Total: $42,000,000, Annual Cost: $2,500,000, % of Revenue:
8.3%. 2) HU/NMPP, Date of Operation: 2009+, Cost per KW: $1600, GI Share: 15MW, GI
Total: $24,000,000, Annual Cost: $1,400,000, % of Revenue: 4.7%. 3) NPPD, Date of
Operation: 2012+, Cost Per KW: $1400, GI Share: 40MW, GI Total: $56,000,000, Annual
Cost: $3,300,000, % of Revenue: 11.0% and 4) GI, Date of Operation: 2011, Cost Per KW:
$1700, GI Share: 100MW, GI Total: $170,000,000, Annual Cost: $9,900,000, % of Revenue:
33.0%.
This assumes bonded debt at 5% interest, and compares the annual capital debt service
obligation to the Electric Department annual revenue.
2. Power Cost Risk:
PGS fuel cost @ $10 per MWH.
Non-firm purchase power markets in 2003:
May: $40 per MWh:
June: $44 per MWh:
July: $70 per MWh
Cost difference at 1500MWh per day.
May: $45,000/day, $1,350,000/month:
June: $51,000/day, $1,530,000/month:
July: $90,000/day, $2,700,000/month
3. Fuel Cost; Coal 2002, FERC Report 423
1) NPPD: $8.49 per ton,
2) OPPD: $10.48 per ton,
3) HU: $11.80 per ton,
4) GI: $12.79 per ton
State Weighted Average $10.00 per ton. GI fuel cost is 28% higher than the State Average at
400,000 tons per year/ $1,000,000 per year.
4. Miscellaneous Items to consider: Transmission Service, Debt Structure - a) Capitalize
interest during construction, b) Issuance costs, c) Gas Turbine debt paid in 2016.
Dispatching
Ancillary ¨C Voltage, Imbalance, Spinning Reserves, etc.
Staff Contact: Gary R. Mader
City of Grand Island City Council
Item -3
Discussion Concerning License Agreements
License Agreements can be approved administratively (by Staff) or encroachments in
easements, streets or alleys. Staff is reluctant to approve license agreements for fences. If a
request for a license agreement is denied by staff, the applicant can request that the license
agreement be considered by council.
Staff has a pending requests for a fence to be built in the Row in front of 229 Carey. We also
have a request for a license agreement for a fence that was replaced where the old fence was
and for a new playground, both of which encroach on the street ROW at 2103 W Koenig
Street.
If council directs, staff will come back with a item for approval of license agreements for
these encroachments at the August 26th Council Meeting.
Staff would also recommend that council approval is required for all structures and fences in
the ROW.
Tuesday, August 19, 2003
Study Session
City of Grand Island
Staff Contact: Steven P. Riehle, Public Works Director/City Engin
City of Grand Island City Council
1
Easements and ROW are for:
n Streets
n Alleys
n Electric Lines
n Water Mains
n Sanitary Sewer Mains
n Other Utilities
Street ROW
Alley ROWEasement
Vacated ROW
ConventionalSidewalk
Curb Sidewalk
80’ ROW
80’ ROW60’ ROW80’ ROW
2
City Responsibilities
n Maintenance of
uPublic streets
uStorm sewer system
uWater Mains
uSanitary sewer mains
uElectrical lines
Property Owner Responsibilities
n Maintenance of
u service lines
u driveways
u private streets, sewer, and water lines
u Area between street and property line
n Keep encroachments out of Right of Way and
Easements
n Installation and maintenance of sidewalks.
3
4
5
ROW Line
License Agreements
n Allows private use of
uPublic Right-of-Way
uEasements
n Filed at Register of Deeds
n Stays with the land through subsequent
ownership
n Can be repealed with 30 days notice
6
License Agreements Usually
approved for:
n Garages/Sheds that are 1’ into ROW or
alley
n Private sanitary sewer services
n Paving in an easement
n Paving of an alley
n Minor encroachments
Pending Requests
n 229 Carey
uFence in Front Yard
n 2103 W Koenig
uFence and
uPlayground Equipment
7
n y
229 Carey Property LineClay
n y
2103 W Koenig
Fence
Playground
8
Staff Recommendation
n Administrative License Agreements:
u Private Sanitary Sewer Services
u Paving in Alleys or Easements
u Other Minor Encroachments
n Council Approved License Agreements
u Structures in the ROW
t Fences
t Sheds
t Garages