10-07-2003 City Council Study Session PacketCity of Grand Island
Tuesday, October 07, 2003
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
David Springer (Interim)
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Carole Cornelius
Peg Gilbert
Joyce Haase
Margaret Hornady
Robert Meyer
Mitchell Nickerson
Don Pauly
Jackie Pielstick
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 Affinity Credit Cards
Affinity credit cards are credit cards which show an individual's affiliation to a group. These
cards are marketed by many types of organizations as a way to provide card holders with
rebates or gifts or to raise funds for the organization. The City of Hastings has utilized
affinity credit cards effectively through their Hometown Pride card to raise funds for City
projects. A review of the Hastings program will be provided. If a Grand Island program is
established, funds collected would be allocated as Council directs.
Tuesday, October 07, 2003
Study Session
City of Grand Island
Staff Contact: Jean Goss, Executive Assistant
City of Grand Island City Council
Affinity Credit CardsAffinity Credit Cards
Credit cards which show your Credit cards which show your
affiliation to a groupaffiliation to a group
Marketed by many types of Marketed by many types of
organizations:organizations:
nn SchoolsSchools
(UNL, Heartland (UNL, Heartland
Lutheran High Lutheran High
School)School)
nn NonNon--Profit Profit
OrganizationsOrganizations
(Pheasants Forever, (Pheasants Forever,
Ducks Unlimited)Ducks Unlimited)
n
n Hobby Hobby OrganizationsOrganizations((CabelasCabelas, Bass Pro , Bass Pro Shops)Shops)nn Government EntitiesGovernment Entities(Nebraska Game and (Nebraska Game and Parks Commission,Parks Commission,City of Hastings)City of Hastings)
How Affinity Cards Work:How Affinity Cards Work:
nn Use just like traditional credit cardsUse just like traditional credit cards
nn Issued by banks and utilize wellIssued by banks and utilize well--known known
credit companies such as Visa or credit companies such as Visa or MastercardMastercard
nn Provide a “kickback” to the card sponsor for Provide a “kickback” to the card sponsor for
each dollar of the total each dollar of the total purchasepurchase
City of Hastings ProgramCity of Hastings Program
nn Started the Hometown Pride Card in 1996 Started the Hometown Pride Card in 1996
nn License granted to Hastings State Bank for the License granted to Hastings State Bank for the
use of “The City of Hastings, Nebraska”use of “The City of Hastings, Nebraska”
nn City Council approves all graphics, logos and City Council approves all graphics, logos and
promotional materials used in the promotional materials used in the programprogram
Terms of the Hastings ProgramTerms of the Hastings Program
nn Three year agreement with provisions for Three year agreement with provisions for
renewalrenewal
nn The Bank pays the City one percent of The Bank pays the City one percent of
purchase purchase feesfees
nn License fees are paid to the City semiLicense fees are paid to the City semi--annuallyannually
Responsibilities of Responsibilities of
Hastings State BankHastings State Bank
nn Assumes all financial responsibilityAssumes all financial responsibility
nn Sets all conditions for use including:Sets all conditions for use including:
nn Credit worthinessCredit worthiness
nn IssuanceIssuance
nn Interest rateInterest rate
nn Annual feeAnnual fee
nn Provide all program related expensesProvide all program related expenses
nn Provide all advertising including radio, television, Provide all advertising including radio, television,
and newspaper advertising as neededand newspaper advertising as needed
Responsibilities of the Responsibilities of the
City of HastingsCity of Hastings
nn Inserts affinity card brochures with utility bills to Inserts affinity card brochures with utility bills to
customerscustomers
nn Markets the card Markets the card
nn PublicPublic MeetingsMeetings
nn City web siteCity web site
nn Provides space at public offices for applicationsProvides space at public offices for applications
Success of Hastings ProgramSuccess of Hastings Program
$232,193.61Total
$25,307.412002-03
$26,639.352001-02
$30,335.242000-01
$32,761.151999-2000
$34,930.841998-99
$38,147.881997-98
$35,269.731996-97
$8,802.011995-96
ReceiptsYear
Possible uses for Grand Island Possible uses for Grand Island
Affinity Card Funds?Affinity Card Funds?
As Council As Council Selects….Selects….
Next StepsNext Steps
nn Contact local banks for inputContact local banks for input
nn Draw up a Request for Proposals (RFP)Draw up a Request for Proposals (RFP)
nn Present options to CouncilPresent options to Council
Item -2
Discussion Concerning 1/2 Cent Sales Tax
The Mayor would like to open the discussion on the proposed sales tax initiative that has
been reserved for the May 11, 2004 ballot. Discussion will explore how a sales tax increase
could best serve the people of Grand Island.
Tuesday, October 07, 2003
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council
Item -3
Presentation of Future Power Supply - OPPD Project
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 a competitive 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 hours 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.
Of the three options, the OPPD project is moving toward the earliest completion. Utility and
Legal Staff, along with the City Administrator and outside Bond Counsel have met at length
with OPPD officials over the last two months to thoroughly review the proposed Power
Participation Agreement (PPA). That document is completed.
Tuesday, October 07, 2003
Study Session
City of Grand Island
City of Grand Island City Council
The Utilities Department believes that participation in the OPPD NC2 project is cost effective
for GI’s future power needs.
Staff Contact: Gary R. Mader
City of Grand Island City Council
Item -4
Discussion Concerning South Grand Island Water Contamination
Problem
Initial analysis of water samples tested by the state lab have shown numerous high to very
high readings on VOC contamination in the Mary Lane area of southwest Grand Island.
This street, while in the city limits, does not have a city water line. Making city water
available to these homes seems to be the only viable means to assure them of a safe source of
water, not just for drinking, but for bathing and other usage as well. Staff will present to
council options that could be implemented to bring city water to these residents.
Tuesday, October 07, 2003
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council