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04-13-2010 City Council Regular Meeting PacketCity of Grand Island Tuesday, April 13, 2010 Council Session Packet City Council:Mayor: Margaret Hornady City Administrator: Jeff Pederson City Clerk: RaNae Edwards T u 7:00:00 PM Council Chambers - City Hall 100 East First Street Larry Carney Scott Dugan John Gericke Peg Gilbert Chuck Haase Robert Meyer Mitchell Nickerson Bob Niemann Kirk Ramsey Jose Zapata Call to OrderCity of Grand Island City Council 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. MAYOR COMMUNICATION This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community. Call to Order Pledge of Allegiance Roll Call This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state law. The City Council may vote to go into Closed Session on any agenda item as allowed by state law. City of Grand Island City Council Item C1 Proclamation "Child Abuse Prevention Month" April, 2010 Because all children deserve love, comfortable homes, and tender care from parents and adults who make them feel safe, happy and loved and because many children were involved in substantiated cases of abuse and neglect in 2009, and because the effects of child abuse are felt by whole communities and need to be addressed by the entire community, the Mayor has proclaimed the month of April, 2010 as "Child Abuse Prevention Month". See attached PROCLAMATION. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mayor Hornady City of Grand Island City Council Item C2 Proclamation "Nebraska Public Health Month" April, 2010 Public health is about ensuring healthy living and working environments through controlling the spread of disease, maintaining safe food and drinking water, and providing maternal and child health services to prevent deaths and improve our quality of life. The Mayor has proclaimed the month of April, 2010 as "Nebraska Public Health Month". See attached PROCLAMATION. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mayor Hornady City of Grand Island City Council Item E1 Public Hearing on Request from Highway Motels of Nebraska, Inc. dba Holiday Inn Express, 3404 West Faidley Avenue for a Class “I” Liquor License Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: RaNae Edwards City of Grand Island City Council Council Agenda Memo From: RaNae Edwards, City Clerk Meeting: April 13, 2010 Subject: Public Hearing on Request from Highway Motels of Nebraska, Inc. dba Holiday Inn Express, 3404 West Faidley Avenue for a Class “I” Liquor License Item #’s: E-1 & I-1 Presenter(s): RaNae Edwards, City Clerk Background Section 4-2 of the Grand Island City Code declares the intent of the City Council regarding liquor licenses and the sale of alcohol. Declared Legislative Intent It is hereby declared to be the intent and purpose of the city council in adopting and administering the provisions of this chapter: (A) To express the community sentiment that the control of availability of alcoholic liquor to the public in general and to minors in particular promotes the public health, safety, and welfare; (B) To encourage temperance in the consumption of alcoholic liquor by sound and careful control and regulation of the sale and distribution thereof; and (C) To ensure that the number of retail outlets and the manner in which they are operated is such that they can be adequately policed by local law enforcement agencies so that the abuse of alcohol and the occurrence of alcohol-related crimes and offenses is kept to a minimum. Discussion Highway Motels of Nebraska, Inc. dba Holiday Inn Express, 3404 West Faidley Avenue has submitted an application for a Class “I” Liquor License. A Class “I” Liquor License allows for the sale of alcohol on sale only inside the corporate limits of the city. City Council action is required and forwarded to the Nebraska Liquor Control Commission for issuance of all licenses. This application has been reviewed by the Clerk, Building, Fire, Health, and Police Departments. Also included with this application is a Manager Designation request from Melvin Wic hman, 2518 Jan Street. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the application. 2. Forward to the Nebraska Liquor Control Commission with no recommendation. 3. Forward to the Nebraska Liquor Control Commission with recommendations. 4. Deny the application. Recommendation Based on the Nebraska Liquor Control Commission’s criteria for the approval of Liquor Licenses, City Administration recommends that the Council approve this application. Sample Motion Move to approve the application for Highway Motels of Nebraska, Inc. dba Holiday Inn Express, 3404 West Faidley Avenue for a Class “I” Liquor License contingent upon final inspections and Liquor Manager request from Melvin Wichman, 2518 Jan Street contingent upon Mr. Wichman completing a state approved alcohol server/seller training program. Item E2 Public Hearing on Utility Easement Located South Side of the Alley Between 4th Street and the UPRR Tracks, East of Cedar Street (Five Points Bank) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Steve Riehle City of Grand Island City Council Council Agenda Memo From: Steven Riehle, Public Works Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easement – Alley between 4th Street and UPRR Tracks, East of Cedar Street – Five Points Bank Item #’s: E-2 & G-15 Presenter(s): Steven Riehle, Public Works Director Background Nebraska State Law requires that acquisition of property must be approved by City Council. A public utility easement is needed relative to the property of Five Points Ba nk located through a part of Lot One (1) Hometown Subdivision (along the south side of the alley between 4th Street and the Union Pacific Railroad tracks, east of Cedar Street) in the City of Grand Island, Hall County, in order to have access to install, upgrade, maintain, and repair power appurtenances, including lines and transformers. Discussion The owner of lots three (3) and four (4), Block 39, Original Town (see attached plat) is planning to construct a new U-Save Pharmacy on those lots. As part of the construction, a drive-up window is planned on the east side of the building. The plan is to locate the new building on the alley property line to maximize the parking area north of the new building. It would be nearly impossible for a vehicle to make the turn (from the alley going east, then turning to the north) along the east side of the building. By purchasing a 20 foot wide strip of property immediately south of the alley and dedicating that strip as a public utility easement, the property owner will be able to relocate the driving area to enable a much easier turn from the alley to the drive-up window. The alley has been vacated by Council action on March 23, 2010, so the new owner will have a continuous piece of property. The existing alley has been retained as a utility easement so existing sewer, electric, cable TV and gas utilities do not have to be relocated. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for one dollar ($1.00). Sample Motion Move to approve acquisition of the Utility Easement. Item E3 Public Hearing for Neighborhood Stabilization Program Property Purchases Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Joni Kuzma City of Grand Island City Council Council Agenda Memo From: Joni Kuzma, Community Development Administrator Meeting: April 13, 2010 Subject: Consideration of the Purchase of 522 N. Beal Street and 2811 W. 4th Street Item #’s: E-3 & G-2 Presenter(s): Joni Kuzma, Community Development Administrator Background Community Development is proposing the purchase of the structures and properties at 522 N. Beal Street and 2811 W. 4th Street for demolition as a part of the Neighborhood Stabilization Program using Community Development Block Grant funds. The structures were inspected, deemed to be vacant, meet blighted criteria and are eligible for demolition. The Nebraska Department of Economic Development concurred with the blighted status of the structures and has given approval for the purchase and demolition of such. All structures on the properties are to be demolished and the lots redeveloped into new single-family homes to be sold to low-to-middle income first-time homebuyers. Discussion Third-party appraisals of the structures and properties were conducted by Alder Real Estate Appraisals who determined the market value of the properties. Per Neighborhood Stabilization Guidelines, property must be purchased at or below 1% below fair market value. The homeowners have accepted the offers of the City and signed Agreements for Sale of Real Estate. The structures will be demolished and the properties redeveloped by a non-profit housing developer as was set forth in the original grant contract between the City and the Department of Econo mic Development as approved by Council. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve the purchase of the identified properties and structures 2. Postpone the issue to a future date. 3. Take no action on the issue. Recommendation City Administration recommends that the Council approve the purchase of identified properties and structures. Sample Motion Move to approve the purchase of identified properties and structures. Item E4 Public Hearing on the Semi-Annual Report by the Citizens’ Review Committee on the Economic Development Program Plan Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Citizens' Review Committee City of Grand Island City Council Council Agenda Memo From: RaNae Edwards, City Clerk Meeting: April 13, 2010 Subject: Public Hearing Concerning the Semi-Annual Report by the Citizen’s Review Committee on the Economic Development Program Plan Item #’s: E-4 & G-17 Presenter(s): Dale M. Shotkoski, City Attorney Mark Stelk, Chairman, Citizen’s Advisory Review Committee Background The voters of the City of Grand Island approved an economic development plan at the May 6, 2003 election. Subsequent to the election, the city has adopted an ordinance that establishes the economic development plan and a Citizens’ Advisory Review Committee to oversee the process of approving applications for economic development incentives. The Citizens Advisory Review Committee is required by State Statute and the Grand Island City Code to make a semi-annual report to the City Council. Discussion The Citizens Advisory Review Committee has been conducting regular meetings during the last six months as required by the City Code and the Nebraska Statutes. The committee looks forward to receiving and reviewing meritorious applications for consideration in the future. The committee received the semi-annual report from the Economic Development Corporation at its meeting of March 31, 2010, and voted to forward it on to the City Council for its review and acceptance. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Accept the semi-annual report of the Citizens’ Advisory Review Committee. 2. Do not accept the semi-annual report of the Citizens’ Advisory Review Committee. Recommendation City Administration recommends that the Council accept the semi-annual report of the Citizens’ Advisory Review Committee. Sample Motion Move to accept the semi-annual report of the Citizens’ Advisory Review Committee. Item E5 Public Hearing on Request from Upper Plains Contracting, Inc. for a Conditional Use Permit for Concrete Batch Plant Site Located at 3860 South Locust Street Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Craig Lewis City of Grand Island City Council Council Agenda Memo From: Craig A. Lewis, Building Department Director Meeting: April 13, 2010 Subject: Request of Upper Plains Contracting, Inc. for Approval of a Conditional Use Permit to Allow a Portable Concrete Batch Plant at 3860 South Locust Street Item #’s: E-5 & H-1 Presenter(s): Craig Lewis – Building Department Director Background This request is for City Council approval to allow for the placement of a temporary concrete batch plant at 3860 South Locust Street. The temporary concrete batch plant will facilitate the reconstruction of South Locust Street. The property is zoned T-A or transitional agriculture. Batch plants are not a permitted principal use within that zoning classification. The proposal is to locate the plant on this site as a temporary location during May and June of 2010. Temporary uses are provided for in City Code Section 36- 89, if approved by the City Council in the form of a conditional use. Discussion This location has been the site of a sand and gravel operation operated by Hooker Brothers Sand & Gravel since 1994 and the current approval of the sand and gravel operation continues until June 8, 2014. There have been two approved temporary asphalt batch plants in the past at this site, one in February of 2001 and the second in October of 2003. The past operations appeared to have caused little disruption to the neighborhood, this proposal as another temporary operation of a concrete batch plant would not appear to create a negative influence on surrounding properties. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the conditional use permit finding that the proposed use as a temporary use will not be detrimental to public health, safety, and the general welfare of the community. 2. Disapprove or deny the conditional use permit, finding that the proposal does not conform to the purpose of the zoning regulation. 3. Modify the conditional use to meet the wishes of the Council 4. Refer the matter to a special committee for a determination of a finding of fact. 5. Table the issue. Recommendation City Staff recommends that the Council approve the request for a conditional use permit to operate a concrete batch plant at the site for a six months period starting in April of 2010, finding that the request does promote the health, safety, and general welfare of the community, protects against blight and depreciation, and is generally harmonious with the surrounding neighborhood as a temporary use. Sample Motion Move to approve the request for a conditional use permit as specified in the staff recommendation published in the Council packet and presented at the City Council meeting and finding that the application will conform with the purpose of the zoning regulations. Proposed Plant Site Item E6 Public Hearing on Acquisition of Utility Easement Located Between White Cloud and Abbot Roads, and Between Engleman and North Roads (Glen and Betty Weise) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easement – Between White Cloud and Abbot Roads, and Engleman and North Roads – Glen E. and Betty J. Wiese Item #’s: E-6 & G-9 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully implemented, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmission system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Substation System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the route of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire an easement relative to the property of Glen E. and Betty J. Wiese, located near the north/south section line between White Cloud Road and Abbot Road, and Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the City. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for One Thousand Seven Hundred Seventy and No/100 Dollars ($1,770.00). Sample Motion Move to approve acquisition of the Utility Easement. Item E7 Public Hearing on Acquisition of Utility Easement Located Between One R and Chapman Roads and Between North and Engleman Roads (Robert and Kay Fielding) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easement – Between One R Road and Chapman Road, and Engleman Road and North Road – Robert M. and Kay M. Fielding Item #’s: E-7 & G-10 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully implemented, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmission system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Substation System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the route of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire an easement relative to the property of Robert M. Fielding and Kay M. Fielding, located between One R Road and Chapman Road and between Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the City. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for Eighty and No/100 Dollars ($80.00). Sample Motion Move to approve acquisition of the Utility Easement. Item E8 Public Hearing on Acquisition of Utility Easement Located Between One R and Chapman Roads, and Between Engleman and North Roads (Parcel #1) (Thomas and Linda Atkins) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easements – Between One R Road and Chapman Road, and Engleman Road and North Road - Thomas and Linda Atkins Item #’s: E-8 & G-11 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully implemented, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmission system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Substation System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the rout e of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire two easements relative to the properties of Thomas M. Atkins, and Linda J. Atkins, located between One R Road and Chapman Road and between Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the Cit y. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolutions for the acquisition of the two easements in the amounts of Three Thousand One Hundred Twenty Three and 75/100 Dollars ($3,123.75), and Three Thousand Two Hundred Thirty and No/100 Dollars $(3,230.00), for a total of $6,353.75. Sample Motion Move to approve acquisition of the Utility Easements. Item E9 Public Hearing on Acquisition of Utility Easement Located Between One R and Chapman Roads, and Between Engleman and North Roads (Parcel #2) (Thomas and Linda Atkins) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easements – Between One R Road and Chapman Road, and Engleman Road and North Road - Thomas and Linda Atkins Item #’s: E-9 & G-12 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully impleme nted, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmission system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Substation System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the route of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire two easements relative to the properties of Thomas M. Atkins, and Linda J. Atkins, located between One R Road and Chapman Road and between Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the City. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolutions for the acquisition of the two easements in the amounts of Three Thousand One Hundred Twenty Three and 75/100 Dollars ($3,123.75), and Three Thousand Two Hundred Thirty and No/100 Dollars $(3,230.00), for a total of $6,353.75. Sample Motion Move to approve acquisition of the Utility Easements. Item E10 Public Hearing on Acquisition of Utility Easement Located Between Prairie and Chapman Roads, and Between Engleman and North Roads (Elmer E. Pollock) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easement – Between Prairie Road and Chapman Road, and Engleman Road and North Road – Elmer E. Pollock Item #’s: E-10 & G-13 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully implemented, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmissio n system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Substation System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the route of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire an easement relative to the property of Elmer E. Pollock, located between Prairie Road and Chapman Road and between Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the City. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for One Thousand Five Hundred Eight Four and No/100 Dollars ($1,584.00). Sample Motion Move to approve acquisition of the Utility Easement. Item E11 Public Hearing on Acquisition of Utility Easement Located Between White Cloud and One R Roads, and Between Engleman and North Roads (Jeff and Susan Koch) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Acquisition of Utility Easement – Between One R Road and White Cloud Road, and Engleman Road and North Road – Jeff and Susan Koch Item #’s: E-11 & G-14 Presenter(s): Gary R. Mader, Utilities Director Background The Electric Department has electric distribution substations connected at various distances along a 115 kV transmission loop. The loop generally runs along the outer edge of the urban area, providing power to the substations and providing power supply redundancy by use of the looped configuration. A map of the transmission system is attached for reference. Substations reduce voltage from the 115,000 volt level to 13,800 volts for distribution to individual customers across the City. Substations “E,” located north of Swift on the east side of the loop, and “F,” located north of Menards on the west side of the loop, are the newest substations. They were placed in initial service in 2001, and completed in 2007. Power Generation and regional interconnections to NPPD are concentrated on the south and east side of the transmission system loop. The northern portion of the transmission loop has no interconnections. And while it can sustain a single line segment loss contingency, any additional failure could result in loss of several major substations, resulting in power loss to major portions of the City. With power plant and regional grid interconnections, the southern portion of the transmission loop has more redundancy. Recognizing that the City is continuing to grow, that future transmission line construction will occur and that reliability improvement is always important, Substations “E” and “F” were constructed with provisions to accept additional 115 kV transmission interconnections. In the long range plan of the Electric Department, these substations are designed for new transmission interconnections as future load growth may require. Advantage Engineering (AE) was contracted in 2006 to perform a Transmission and Substation System Study for the City of Grand Island Utilities Department (GIUD). Various alternatives and solutions were analyzed for the logical and economic expansion of the GIUD’s 115 kV transmission loop, power interconnections with Nebraska Public Power District (NPPD), substations, distribution, and communications. The system study period was ten (10) years (2006-2016) taking into account projected City expansion and load growth. When fully implemented, the major substation and transmission requirements should be satisfied through 2027. The Transmission and Substation System Study was completed in 2007 and contained a detailed analysis of previous studies and reports; surrounding area power provider plans; state wide planned improvements; contractual obligations; the City’s comprehensive development plans; system capabilities and capacities; land use issues; and schedule related items. The study resulted in recommendations to expand the GIUD’s transmission system to serve load growth and assure reliability. The results of the Transmission and Substation System Study were presented to the Grand Island City Council on January 8, 2008. One of the system improvements identified in the Transmission and Sub station System Study was the need for providing an additional 115 kV power supply to GIUD’s Substation F. Discussion As work progressed, several presentations were made to the City Council. At the City Council Study Session of April 21, 2009, the route of the proposed transmission line was presented by Advantage Engineering, the consulting engineers for the project. The new line would provide a fifth connection, to the regional grid and increased reliability to the northern portion of the City. On April 28, 2009, City Council authorized the Utilities Department to proceed with transmission line easement acquisitions. And, as required by State Law, a Public Hearing was held on December 15, 2009, thirty days prior to beginning negotiations with landowners. Since Council authorization, easement acquisition is progressing. Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire an easement relative to the property of Jeff and Susan Koch, located between One R Road and White Cloud Road and between Engleman Road and North Road, in Hall County, in order to have access to install, upgrade, maintain and repair the new 115 kV transmission line to the northwest of the City. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Make a motion to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for One Thousand Four Hundred Fifty and No/100 Dollars ($1,450.00). Sample Motion Move to approve acquisition of the Utility Easement. Item F1 #9254 - Consideration of Annexation Request of a Tract of Land Being Platted as Shady Bend Subdivision and Adjacent Right of Way Located South of U.S. Highway 30 and West of the New Shady Bend Road (Second Reading) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Chad Nabity City of Grand Island City Council Council Agenda Memo From: Regional Planning Commission Meeting: April 13, 2010 Subject: Annexation (C-10-2010GI) Ordinance (Second Reading) Item #’s: F-1 Presenter(s): Chad Nabity AICP, Regional Planning Director Background Annexation of land, located at 3609 E US Hwy 30 and 803 N Shady Bend Road., into the Grand Island City Limits see the attached map. The owner of this property has submitted Shady Bend Subdivision as an addition to the City of Grand Island and by doing so asked Council to consider annexation of this property. Discussion On March 3, 2010 the Hall County Regional Planning Commission held a public hearing before considering this matter. O’Neill opened the Public Hearing. No members of the public testified at the hearing held by the Regional Planning Commission. Nabity explained this property is contiguous with the Grand Island City Limits. The owners have requested that Shady Bend Subdivision be approved as an addition to the City. These properties are within the Grand Island Utilities Electrical Service District. These properties are all within the Cedar Hollow/Northwest School District. These annexations will not impact the two-mile extraterritorial jurisdiction of Grand Island. Water is available to the property included in this annexation request. Sewer is available to the property. This property is within the Grand Island Utilities Electrical Service District. This property is within the Grand Island School District. Annexing this property will not impact the two mile extraterritorial jurisdiction of Grand Island. On March 27, 2010 Council held a public hearing on this matter and passed the annexation ordinance on first reading. This is the second reading of the ordinance to annex property. Alternatives It appears tha t the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the annexation as presented 2. Modify the annexation to meet the wishes of the Council 3. Table the issue Recommendation A motion was made by Haskins to approve the annexation request and seconded by Eriksen. A roll call vote was taken and the motion passed with 8 members present (Amick, O’Neill, Ruge, Eriksen, Haskins, Bredthauer, Snodgrass, Connelly) all voting in favor. Sample Motion Approve the annexation as Submitted. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney ORDINANCE NO. 9254 An ordinance to extend the boundaries and include within the corporate limits of, and to annex into the City of Grand Island, Nebraska, a tract of land at U.S. Highway 30 and Shady Bend Road being platted as Shady Bend Subdivision an Addition to the City of Grand Island along with all adjoin public Right-of-Way in Hall County, Nebraska as more particularly described hereinafter and as shown on Exhibit “A” attached hereto; to provide service benefits thereto; to repeal any ordinance or resolutions or parts of thereof in conflict herewith; to provide for publication in pamphlet form; and to provide the effective date of this ordinance. WHEREAS, after public hearing on March 3, 2010, the Regional Planning Commission recommended the approval of annexing into the City of Grand Island, the following tract of land in Hall County, Nebraska: A tract of land comprised of Lots One (1) and Two (2) of Shady Bend Subdivision an Addition to the City of Grand Island and all adjoining public Right-of-Way in Hall County, Nebraska, WHEREAS, after public hearing on March 23, 2010, the City Council of the City of Grand Island found and determined that such annexation be approved; and * This Space Reserved For Register of Deeds * ORDINANCE NO. 9254 (Cont.) - 2 - WHEREAS, on March 23, 2010, the City Council of the City of Grand Island approved such annexation on first reading. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. It is hereby found and determined that: (A) The above-described tracts of land are urban or suburban in character, and that the subject properties are contiguous or adjacent to the corporate limits of said City. (B) The subject lands will receive the material benefits and advantages currently provided to land within the City's corporate limits including, but not limited to police, fire, emergency services, street maintenance, and utilities services upon annexation to the City of Grand Island, Nebraska, and that City electric, water and sanitary sewer service is available, or will be made available, as provided by law. (C) The various zoning classifications of the land shown on the Official Zoning Map of the City of Grand Island, Nebraska, are hereby confirmed and that this annexation will have no impact on the extraterritorial zoning jurisdiction. (D) There is unity of interest in the use of the said tract of land, lots, tracts, highways and streets (lands) with the use of land in the City, and the community convenience and welfare and in the interests of the said City will be enhanced through incorporating the subject land within the corporate limits of the City of Grand Island. (E) The plan for extending City services adopted by the City Council by the passage and approval of Resolution No. 2010-69 is hereby approved and ratified as amended. ORDINANCE NO. 9254 (Cont.) - 3 - SECTION 2. The boundaries of the City of Grand Island, Nebraska, be and are hereby extended to include within the corporate limits of the said City the contiguous and adjacent tract of land located within the boundaries described above. SECTION 3. The subject tract of land is hereby annexed to the City of Grand Island, Hall County, Nebraska, and said land and the persons thereon shall thereafter be subject to all rules, regulations, ordinances, taxes and all other burdens and benefits of other persons and territory included within the City of Grand Island, Nebraska. SECTION 4. The owners of the land so brought within the corporate limits of the City of Grand Island, Nebraska, are hereby compelled to continue with the streets, alleys, easements, and public rights-of-way that are presently platted and laid out in and through said real estate in conformity with and continuous with the streets, alleys, easements and public rights-of-way of the City. SECTION 5. That a certified copy of this Ordinance shall be recorded in the office of the Register of Deeds of Hall County, Nebraska and indexed against the tracts of land. SECTION 6. Upon taking effect of this Ordinance, the services of said City shall be furnished to the lands and persons thereon as provided by law, in accordance with the Plan for Extension of City Services adopted herein. SECTION 7. That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed. SECTION 8. This ordinance shall be in full force and effect from and after its passage, approval and publication, in pamphlet form, as provided by law. Enacted: April 13, 2010. ORDINANCE NO. 9254 (Cont.) - 4 - ____________________________________ Margaret Hornady, Mayor Attest: ________________________________ RaNae Edwards, City Clerk ORDINANCE NO. 9254 (Cont.) - 5 - Item F2 #9258 - Consideration of the Conveyance of 522 N. Beal Street and 2811 W. 4th Street Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Joni Kuzma City of Grand Island City Council Council Agenda Memo From: Joni Kuzma, Community Development Administrator Meeting: April 13, 2010 Subject: Consideration of Conveyance of Property at 522 N. Beal Street and 1128 W. 4th Street Item #’s: F-2 Presenter(s): Joni Kuzma, Community Development Administrator Background The City purchased the structures and property at 522 N. Beal Street and 2811 W. 4th Street on April 13, 2010 as part of the Neighborhood Stabilization Program (NSP) using Community Development Block Grant funds. All structures on the property are to be demolished and the lot redeveloped into new single-family homes for sale to a low-to- middle income first-time homebuyer. The Housing Development Corporation and Habitat for Humanity, in compliance with the previously approved contract between the City and the Nebraska Department of Economic Development, will build new single-family homes according to NSP and City regulations. A Housing Development Agreement between the City and the Housing Development Corporation and the Grand Island Area Habitat for Humanity was approved by Council on December 15, 2009. Discussion Nebraska law requires Council to approve the conveyance of the property at 522 N. Beal Street to Habitat for Humanity and the property at 2811 W. 4th Street to the Housing Development Corporation by ordinance subject to remonstrance.. After the ordinance is passed it must be published for three consecutive weeks in the Grand Island Independent. The terms of the conveyance are contained in the housing development agreement which is incorporated by reference into the ordinance Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to adopt the ordinance to convey the property. 2. Postpone the issue to a future date. 3. Take no action on the issue and retain the property. Recommendation City Administration recommends that the Council move to convey the property to the Housing Development Corporation and begin the 30 day remonstrance period. Sample Motion Move to adopt the ordinance to convey 522 N. Beal Street to Habitat for Humanity and 2811 W. 4th to the Housing Development Corporation and begin the 30 day remonstrance period. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney ORDINANCE NO. 9258 An ordinance directing and authorizing the sale of real estate to the Housing Development Corporation and the Grand Island Area Habitat for Humanity; providing for the giving of notice of such conveyance and the terms thereof; providing for the right to file a remonstrance against such conveyance; providing for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. The City of Grand Island, Nebraska, will convey to the HOUSING DEVELOPMENT CORPORATION, a tract of land legally described as: Lot Forty Two (42) and East Thirty Feet (30’) of North One Hundred Thirty Feet (130’) of vacated Hancock Street in West Heights Addition to the City of Grand Island, Hall County, Nebraska (2811 W. 4th) and to the GRAND ISLAND AREA HABITAT FOR HUMANITY, a tract of land legally described as: Lots One (1) and Two (2), Block Four (4), Evans Addition to the City of Grand Island, Hall County, Nebraska (522 N. Beal St.) SECTION 2. In consideration for such conveyance the Grantee shall develop the property and abide by the terms of the Neighborhood Stabilization Program guidelines and the Housing Development Agreement between the City and the Housing Development Corporation. and the City and the Grand Island Area Habitat for Humanity. Conveyance of the real estate above described shall be by warranty deed. SECTION 3. As provided by law, notice of such conveyance and the terms thereof shall be published for three consecutive weeks in the Grand Island Independent, a newspaper published for general circulation in the City of Grand Island. Immediately after the ORDINANCE NO. 9258 (Cont.) - 2 - passage and publication of this ordinance, the City Clerk is hereby directed and instructed to prepare and publish said notice. SECTION 4. Authority is hereby granted to the electors of the City of Grand Island to file a remonstrance against the conveyance of such within described real estate; and if a remonstrance against such conveyance signed by registered voters of the City of Grand Island equal in number to thirty percent of the registered voters of the City of Grand Island voting at the last regular municipal election held in such City be filed with the City Council within thirty days of passage and publication of such ordinance, said property shall not then, nor within one year thereafter, be conveyed. SECTION 5. The conveyance of said real estate is hereby authorized, directed and confirmed; and if no remonstrance be filed against such conveyance, the Mayor shall make, execute and deliver to the Housing Development Corporation and to the Grand Island Area Habitat for Humanity, a warranty deed for identified parcels of said real estate, and the execution of such deeds are hereby authorized without further action on behalf of the City Council. SECTION 6. This ordinance shall be in force and take effect from and after its passage and publication, within fifteen days in one issue of the Grand Island Independent as provided by law. Enacted: April 13, 2010. ____________________________________ Margaret Hornady, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Item F3 #9259 - Consideration of Amending Chapter 31 of the Grand Island City Code Relative to Signs Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Craig Lewis City of Grand Island City Council Council Agenda Memo From: Craig A. Lewis, Building Department Director Meeting: April 13, 2010 Subject: Amending Chapter 31 of the Grand Island City Code to Modify Regulations Regarding Signs within the AC- Arterial Commercial Zone Item #’s: F-3 Presenter(s): Craig Lewis – Building Department Director Background The Grand Island City Code Chapter 31 regulates the installation of signage, specifically Section 31-35 regulates the installation of signage within the zoning classification AC- Arterial Commercial along South Locust Street corridor from Fonner Road south to Highway #34. The Building Department has received a request for modifications to those regulations from Fonner Park and Bus iness Improvement District #4. The request is to increase the allowable square footage for signage on tracts of land in excess of 350’ of frontage along Locust and allow for a maximum of 350 square feet for any one sign. The current regulations allow for 1 foot of sign for each one foot of frontage for the first 150 feet of frontage and .75 foot for each one foot of frontage there after, limiting any one sign to a maximum of 200 square feet. The proposed amendment would increase the total square footage of signage for tracts of land of 300 or more lineal feet of frontage to one square foot of sign for each one foot of frontage for the first 150 feet and 1.18 square foot of signage for each one foot of frontage thereafter, with a maximum of no single sign being larger than 350 square feet. Discussion This request was initiated because of an application to modify the existing Fonner Park sign at the Locust Street entrance. The proposal was to incorporate an existing message center from the State Fair signage in Lincoln which would increase the square footage of the sign from 215 square feet to 350 square feet. The existing sign was installed prior to the current A-C sign regulations an as such has legal nonconforming “grandfather” rights, however those nonconforming rights may not increase the degree nonconformity. The Business Improvement District #4 Board at its April 1, 2010 meeting approved in concept to increase the allowable square footage for properties with 300 feet or more of frontage and allow single signage to be increased to 350 square feet. The proposed ordinance will accomplish that concept by allowing the square footage of signage to be increased to 1.18 square foot of signage for each one foot of frontage in excess of the first 150 feet and allow any single sign square footage to be increase from 200 to 350 square feet. There currently appear to be 4 properties along the Locust Street A-C corridor from Fonner Park Road to Stolley Park Road that would benefit from this proposed increase. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Approve the ordinance. 2. Disapprove or /Deny the ordinance. 3. Modify the ordinance to meet the wishes of the Council 4. Table the issue Recommendation City Staff recommends that the Council approve the ordinance to modify Chapter 31. Sample Motion Move to approve Ordinance #9259 to amend Chapter 31 of the Grand Island City Code. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney ORDINANCE NO. 9259 An ordinance to amend Grand Island City Code Section 31-35, pertaining to the size of signage allowed for tracts of land with three hundred lineal feet or more of street frontage; to repeal any ordinance or parts of ordinances in conflict herewith; and to provide for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. Section 31-35, (B) of the Grand Island City Code, is hereby amended by adding the following; (3). For tracts of land with three hundred (300) lineal feet or more of street frontage the total allowable square footage of ground signage shall be one square foot of sign for each one foot of street frontage for the first one hundred and fifty (150) feet and one point one eight (1.18) square foot of signage for each lineal foot thereafter. No single sign shall exceed three hundred and fifty (350) square feet. This section applicable within the AC Zone from Fonner Park Road to Stolley Park Road. SECTION 2. The validity of any section, subsection, sentence, clause, or phrase of this ordinance shall not affect the validity or enforceability of any other section, subsection, sentence, clause, or phrase thereof. SECTION 3. That this ordinance shall be in force and take effect from and after its passage and publication and on May 10, 2010. Enacted: April 13, 2010. ____________________________________ Margaret Hornady, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Article II. Signs in AC-Arterial Commercial Zone §31-35. Authorized Signs In AC-Arterial Commercial Zone All signs placed in the AC-Arterial Commercial Zone shall be subject to the following requirements: (A) Signs Allowed. Ground signs, monument signs, roof signs, wall signs (flat or projecting), and freestanding ground signs. (Monument signs shall be those ground signs in which the base width is fifty percent (50%) or more of the width of the sign.) (B) Size. (1) Total ground signage allowed per tract of land shall be one square foot of sign for each one lineal foot of street frontage for the first one hundred fifty feet and .75 foot of signage for each lineal foot thereafter. The total ground signage on the property shall not exceed three hundred square feet. (The area of a double-faced sign is calculated on the largest face only). (2) No single ground sign shall exceed two hundred square feet. (3) For tracts of land with 300 lineal feet or more of street frontage the total allowable square footage of ground signage shall be one square foot of sign of each one foot of street frontage for the first one hundred and fifty feet and 1.18 square foot of signage for each lineal foot there after. No single sign shall exceed three hundred and fifty square feet. This section applicable within the AC Zone between Fonner Park Road to Stolley Park Road. (C) Location. (1) All signs shall be set back from the front property line a minimum of five feet, and a minimum of ten feet from all other property lines. Exception: the side property line adjacent to a public street shall have a minimum setback of five feet. Monument signs shall be set back from the front property line a minimum of twelve feet, and ten feet from all other property lines. (2) All ground and monument signs shall be set back from the side property line a distance equal to or greater than 25% of the lot frontage. Exception: the side lot line adjacent to a public street or City owner property legally described as Lot 1 Mil-Nic Second Subdivision ( 2515 S. Locust) and directional signs not exceeding four square feet with a maximum of forty inches (3’-4”) in height. (3) Ground signs on the same tract of land shall be separated by a minimum of fifty lineal feet. The one exception shall be directional signs not exceeding four square feet in size. (D) Height. (1) The maximum height of ground signs shall be thirty feet. (2) Signs shall maintain twelve feet of clearance above all adjacent walking or driving surfaces. (3) Signs may project over a sidewalk or drive on private property, but shall not extend beyond such surface. (E) All other provisions of the city code shall apply; the most restrictive requirement shall be enforced. (F) Billboards. (1) The maximum size of any billboard shall be three hundred square feet. (The area of double-faced, or back-to-back signs will be calculated on the largest face only). (2) The maximum height of any billboard shall be thirty feet. (3) Billboards shall not be located in the required front yard and shall maintain a ten foot setback from all other property lines. (4) Billboards shall maintain a 1,000 foot separation between other billboards located along the same side of the Locust Street right-of-way and shall be a minimum of fifty feet from any ground sign. (5) Billboards shall not be calculated in the maximum allowable on-site signage. (6) There currently exist five signs defined as billboards in the AC-Arterial Commercial Zone from Stolley Park Road south to U.S. Highway 34. Those signs shall be legal non-conforming signs and allowed to remain with the provisions as stated in section31-42. (7) No billboards shall be allowed within the AC-Arterial Commercial Zone within the area bounded by Stolley Park Road on the south and Fonner Park Road on the north. Amended by Ord. No. 8787, eff. 12-18-2002 Amended by Ord. No. 9177, eff. 07-22-2008 §36-36. Reserved §36-37. Reserved §36-38. Reserved §36-39. Reserved Item G1 Approving Minutes of March 23, 2010 City Council Regular Meeting Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: RaNae Edwards City of Grand Island City Council CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL REGULAR MEETING March 23, 2010 Pursuant to due call and notice thereof, a Regular 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 March 23, 2010. Notice of the meeting was given in The Grand Island Independent on March 17, 2010. Mayor Hornady called the meeting to order at 7:00 p.m. The following City Councilmember’s were present: Meyer, Niemann, Gilbert, Haase, Carney, Dugan, Ramsey, Zapata, Nickerson, and Gericke. The following City Officials were present: City Administrator Jeff Pederson, City Clerk RaNae Edwards , Finance Director Mary Lou Brown, and Public Works Director Steve Riehle. INVOCATION was given by Mayor Hornady followed by the PLEDGE OF ALLEGIANCE. MAYOR COMMUNICATION: Mayor Hornady introduced CYC members Ava Mackey and Aaron Oswald. Also mentioned was that City Clerk RaNae Edwards was honored at the Nebraska Municipal Clerk’s Association banquet last week with the 2010 Outstanding Clerk’s Award in the 1st Class and Larger cities category. PUBLIC HEARINGS: Public Hearing on Request from Balz Banquet and Reception Hall, Inc. dba Balz Banquet and Reception Hall, 211 North Sycamore Street for an Addition to Class “C-82906” Liquor License. RaNae Edwards, City Clerk reported that an application for an addition to Class “C-82906” Liquor License had been received from Balz Banquet and Reception Hall, Inc. dba Balz Banquet and Reception Hall, 211 North Sycamore Street. Ms. Edwards presented the following exhibits for the record: application submitted to the Liquor Control Commission and received by the City on March 1, 2010; notice to the general public of date, time, and place of hearing published on March 13, 2010; notice to the applicant of date, time, and place of hearing mailed on March 1, 2010; along with Chapter 4 of the City Code. The addition would cover the entire building. Staff recommended approval contingent upon final inspections. No public testimony was heard. Public Hearing on Request from Alpha Center, LLC dba Alpha Center Receptions & Banquets, 520 West 3rd Street for a Class “I” Liquor License. This item was pulled from the agenda at the request of the applicant. Public Hearing on Annexation of a Tract of Land Being Platted as Shady Bend Subdivision and Adjacent Right-of-Way Located South of U.S. Highway 30 and West of the New Shady Bend Road. Chad Nabity, Regional Planning Director reported that the owner of land located at 3609 East US Highway 30 and 803 North Shady Bend Road had submitted Shady Bend Subdivision as an addition to the City and requested annexation of this property. Staff recommended approval. Ron Miller, 704 South Cherry spoke in opposition. No further public testimony was heard. Public Hearing on Zoning Change for Land Located East of Stuhr Road between Seedling Mile Road and Swift Road from M1 – Light Manufacturing to M2 – Heavy Manufacturing. Chad Nabity, Regional Planning Director reported that JBS Swift had purchased the property at 435 Stuhr Road and planned to expand their current operation, which required a change in zoning. Staff recommended approval. No public testimony was heard. Page 2, City Council Regular Meeting, March 23, 2010 Public Hearing on Text Amendment to Chapter 36 of the Grand Island City Code Relative to Light Manufacturing, Heavy Manufacturing – Appendix A, and Landscaping Regulations. Chad Nabity, Regional Planning Director reported that the amendments pertained to; allowing parking lot as a permitted principal use in light and heavy manufacturing areas; landscaping along federal and state funded highways; and landscaping for parking lots with more than 500 spaces. Staff recommended approval. No public testimony was heard. Public Hearing on Acquisition of Ingress/Egress Easement Located at Fonner Park (Hall County Livestock Improvement Association). Steve Riehle, Public Works Director reported that a public ingress/egress easement was needed on the south side of the Fonner Park access road off of South Locust Street to accommodate public access to a piece of property owned by the Nebraska State Fair. Staff recommended approval. No public testimony was heard. Public Hearing #3 Concerning Community Revitalization Grant, Phase III and Contract Amendment. Barbara Quandt, Community Development Administrator reported that budget and contract extension amendments were needed to the current Community Development Block Grant (CDBG) received in 2008 from the Nebraska Department of Economic Development (DED) to recruit qualified applicants. The contract amendment would extend the project to March 31, 2011. Staff recommended approval. No public testimony was heard. ORDINANCES: #9254 – Consideration of Annexation Request of a Tract of Land Being Platted as Shady Bend Subdivision and Adjacent Right-of-Way Located South of U.S. Highway 30 and West of the New Shady Bend Road (First Reading) This item was related to the aforementioned Public Hearing. This was the first of three readings. Motion by Nickerson, second by Zapata to approve Ordinance #9254 on first reading. Upon roll call vote, all voted aye. Motion adopted. Councilmember Gilbert moved “that the statutory rules requiring ordinances to be read by title on three different days be suspended and that ordinances numbered: #9255 – Consideration of Zoning Change for Land Located East of Stuhr Road between Seedling Mile Road and Swift Road from M1 – Light Manufacturing to M2 – Heavy Manufacturing #9256 – Consideration of Text Amendment to Chapter 36 of the Grand Island City Code Relative to Light Manufacturing, Heavy Manufacturing – Appendix A, and Landscaping Regulations #9257 – Consideration of Vacation of a Portion of the Alley Right-of-Way South of 4th Street, from Cedar Street to Walnut Street (USave Pharmacy) #9258 – Consideration of the Conveyance of 522 N. Beal Street and 2811 West 4th Street (Ordinance #9258 item was pulled from the agenda.) be considered for passage on the same day upon reading by number only and that the City Clerk be permitted to call out the number of these ordinances on first reading and then upon final passage and call for a roll call vote on each reading and then upon final passage.” Councilmember Ramsey second the motion. Upon roll call vote, all voted aye. Motion adopted. Page 3, City Council Regular Meeting, March 23, 2010 #9255 – Consideration of Zoning change for Land Located East of Stuhr Road between Seedling Mile Road and Swift Road from M1 – Light Manufacturing to M2 – Heavy Manufacturing #9256 – Consideration of Text Amendment to Chapter 36 of the Grand Island City Code Relative to Light Manufacturing, Heavy Manufacturing – Appendix A, and Landscaping Regulations #9257 – Consideration of Vacation of a Portion of the Alley Right-of-Way South of 4th Street, from Cedar Street to walnut Street (USave Pharmacy) #9258 – Consideration of the Conveyance of 522 N. Beal Street and 2811 West 4th Street (Ordinance #9258 was pulled from the agenda) Ordinances #9255 and #9256 related to the aforementioned Public Hearings. Steve Riehle, Public Works Director reported that Ordinance #9257 was requested from USave Pharmacy to vacate a portion of the alley south of 4th Street, from Cedar Street to Walnut Street to allow adequate space for traffic using the drive thru. #9255 – Consideration of Zoning Change for Land Located East of Stuhr Road between Seedling Mile Road and Swift Road from M1 – Light Manufacturing to M2 – Heavy Manufacturing Discussion was held regarding Ordinance #9255 and odors from the JBS Swift plant. Motion by Meyer, second by Nickerson to approve Ordinance #9255. City Clerk: Ordinance #9255 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, Councilmember’s Meyer, Niemann, Carney, Dugan, Nickerson, and Gericke voted aye. Councilmember’s Gilbert, Haase, Ramsey, and Zapata voted no. Motion adopted. City Clerk: Ordinance #9255 on final passage. All those in favor of the passage of this ordinance on final passage, answer roll call vote. Upon roll call vote, Councilmember’s Meyer, Niemann, Carney, Dugan, Nickerson, and Gericke voted aye. Councilmember’s Gilbert, Haase, Ramsey, and Zapata voted no. Motion adopted. Mayor Hornady: By reason of the roll call votes on first reading and then upon final passage, Ordinance #9255 is declared to be lawfully adopted upon publication as required by law. #9256 – Consideration of Text Amendment to Chapter 36 of the Grand Island City Code Relative to Light Manufacturing, Heavy Manufacturing – Appendix A, and Landscaping Regulations Motion by Ramsey, second by Gilbert to approve Ordinance #9256. City Clerk: Ordinance #9256 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinance #9256 on final passage. All those in favor of the passage of this ordinance on final passage, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Page 4, City Council Regular Meeting, March 23, 2010 Mayor Hornady: By reason of the roll call votes on first reading and then upon final passage, Ordinance #9256 is declared to be lawfully adopted upon publication as required by law. #9257 – Consideration of Vacation of a Portion of the Alley Right-of-Way South of 4th Street, from Cedar Street to Walnut Street (USave Pharmacy) Bill Francis, 222 North Cedar Street spoke in support. Mr. Francis answered question about contacting the neighbors. Motion by Dugan, second by Gilbert to approve Ordinance #9257. City Clerk: Ordinance #9257 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinance #9257 on final passage. All those in favor of the passage of this ordinance on final passage, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Mayor Hornady: By reason of the roll call votes on first reading and then upon final passage, Ordinance #9257 is declared to be lawfully adopted upon publication as required by law. CONSENT AGENDA: Consent Agenda items G-21 and G-22 were pulled for further discussion. Motion by Zapata, second by Nickerson to approve the Consent Agenda excluding items G-21 and G-22. Upon roll call vote, all voted aye. Motion adopted. Receipt of Official Document – Tort Claim filed by Eric Steward. Approving Minutes of March 6, 2010 City Council Special Study Session (Retreat). Approving Minutes of March 9, 2010 City Council Regular Meeting. Approving Appointment of Derek Apfel to the Business Improvement District #6 Board. #2010-73 – Approving Final Plat and Subdivision Agreement for JBS Subdivision. It was noted that JBS USA LLC and Swift Beef Company, owners had submitted the Final Plat and Subdivision Agreement for JBS Subdivision for the purpose of creating 2 lots on a tract of land in part of the West Half (W1/2) of the Northwest Quarter (NW1/4) of Section 14-11-9 comprising of approximately 73 acres. #2010-74 – Approving Final Plat and Subdivision Agreement for Meadowlark West Eighth Subdivision. It was noted that Paul J. Younes, owner had submitted the Final Plat and Subdivision Agreement for Meadowlark West Eighth Subdivision for the purpose of creating 2 lots on a tract of land comprising all of Lot One (1), Meadowlark West Fifth Subdivision and comprising of approximately 3.69 acres. #2010-75 – Approving Setting Board of Equalization Hearing Date of April 27, 2010 to Determine Benefits – 2009 Weed/Nuisance Abatement Program. #2010-76 – Approving Bid Award for Replacing Concrete at Fire Station 2 with the Diamond Engineering Company of Grand Island, Nebraska in an Amount of $28,575.00. Page 5, City Council Regular Meeting, March 23, 2010 #2010-77 – Approving the Adoption of the Resolution to Comply with Title VI Requirements. #2010-78 – Approving the Adoption of the Resolution to Comply with American’s with Disability act (ADA) and Section 504 of the Rehabilitation Act. #2010-79 – Approving Bid Award for One (1) 2010 Model, 127 Cubic Yard Solid Waste Transfer Trailer with STECO of Morris, Minnesota in an Amount of $58,100.00 with a trade-in Amount of $19,500.00. #2010-80 – Approving Bid Award for Water Main Project 2010-W-1 – Poplar Street from 9th Street to 12th Street with the Diamond Engineering Company of Grand Island, Nebraska in an Amount of $89,287.08. #2010-81 – Approving the Agreement to allow Project for Invasive Plant Control and River Restoration between the City of Grand Island and the Platte Valley Weed Management Area. #2010-82 – Approving Issuance of Building Permit to the Nebraska State Fair Board for Two Storage Buildings Located at 1525 South Locust Street. #2010-83 – Approving Contract with US Cellular for Cellular Telephone Services for the Police Department. #2010-84 – Approving Acquisition of Ingress/Egress Easement Located at Fonner Park (Hall County Livestock Improvement Association). #2010-85 – Approving Community Revitalization Grant, Phase III and Contract Amendment. #2010-86 – Approving Bid Award Concurrence with the Nebraska Department of Roads (NDOR) on the Construction of the Northbound Lanes on South Locust Street North of I-80 with Upper Plains Contracting, Inc. of Aberdeen, South Dakota. #2010-87 – Approving Revised Agreement for Installation of Private Well by Goodwill Industries to Service HVAC System. #2010-88 – Approving Contract Extension to May 15, 2010 Installation of Utilities and Parking Lot at the Veterans Athletic Field Complex with the Diamond Engineering Company of Grand Island, Nebraska. #2010-91 – Approving Letter of Agreement with Nebraska Emergency Management Agency (NEMA) for Handling Hazardous Materials. #2010-89 – Approving Change Order #2 for Utility Improvements at the Veterans Athletic Field Complex with the Diamond Engineering Company of Grand Island, Nebraska for an Increase of $12,428.22 and a Revised Contract Amount of $212,266.60. Councilmember Meyer apologized to Steve Paustian, Parks and Recreation Director for an earlier comment regarding the Veterans Athletic Field Complex. Motion by Meyer, second by Dugan to approve Resolution #2010-89. Upon roll call vote, all voted aye. Motion adopted. Page 6, City Council Regular Meeting, March 23, 2010 #2010-90 – Approving Changes to the 2009-2010 Fee Schedule. Discussion was held regarding the Heartland Public Shooting Park (HPSP) fees and the reason for the increase. Mr. Paustian explained the use of the public and instructors at HPSP. Motion by Gericke to amend the motion to retain the fee of $10.00 and $15.00 for use of the range. Motion died due to lack of a second. Upon roll call vote on the main motion, all voted aye. Motion adopted. RESOLUTIONS: #2010-92 – Consideration of Request from Balz Banquet and Reception Hall, Inc. dba Balz Banquet and Reception Hall, 211 North Sycamore Street for an Addition to Class “C-82906” Liquor License. This item related to the aforementioned Public Hearing. Motion by Ramsey, second by Zapata to approve Resolution #2010-92 contingent upon final inspectio ns. Upon roll call vote, all voted aye. Motion adopted. #2010-93 – Consideration of Request from Alpha Center, LLC dba Alpha Center Receptions & Banquets, 520 West 3rd Street for a Class “I” Liquor License and Liquor Manager Designation for Nellie Ries, 3736 South Locust Street. This item was pulled from the agenda at the request of the applicant. PAYMENT OF CLAIMS: Motion by Dugan, second by Gericke to approve the Claims for the period of March 10, 2010 through March 23, 2010, for a total amount of $3,276,884.83. Unanimously approved. Motion by Dugan, second by Gericke to approve the Claims for the period of March 10, 2010 through March 23, 2010 for the State Fair Recreation Building for a total amount of $189,000.00. Unanimously approved. ADJOURNMENT: The meeting was adjourned at 7:50 p.m. RaNae Edwards City Clerk Item G2 #2010-94 - Approving the Purchase of 522 N. Beal Street and 2811 W. 4th Street This item relates to the aforementioned Public Hearing Item E-3. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Joni Kuzma City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-94 WHEREAS, the City of Grand Island, Nebraska was awarded a $993,000 Neighborhood Stabilization Program (NSP) grant from the Nebraska Department of Economic Development; and WHEREAS, the grant has enabled the city to purchase and demolish at least six (6) vacant, blighted structures and redevelop the lots into six (6) new homes, WHEREAS, the properties and structures at 522 N. Beal Street and 2811 W. 4th Street meet the vacant and blighted criteria as set by the Neighborhood Stabilization Program and the Nebraska Department of Economic Development and are eligible for demolition; WHEREAS, a public hearing was held on April 13, 2010 for the purpose of discussing the proposed acquisition of the following real estate for demolition: Lots One (1) and Two (2), Block Four (4), Evans Addition to the City of Grand Island, Hall County, Nebraska (522 N. Beal) Lot Forty Two (42) and East Thirty Feet (30’) of North One Hundred Thirty Feet (130’) of vacated Hancock Street in West Heights Addition to the City of Grand Island, Hall County, Nebraska (2811 W. 4th) NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: The City of Grand Island, Nebraska is hereby authorized to acquire the properties and structures at 522 N. Beal Street and 2811 W. 4th Street and the Mayor is hereby authorized and directed to execute such contracts. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Item G3 #2010-95 - Approving Interlocal Agreement for Compact for Apprehension of Narcotics Dealers and Offenders (CANDO) Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Steve Lamken City of Grand Island City Council Council Agenda Memo From: Steven Lamken, Police Chief Meeting: April 13, 2010 Subject: Compact for Apprehension of Narcotics Dealers and Offenders Interlocal Agreement Item #’s: G-3 Presenter(s): Steven Lamken, Police Chief Background The Police Department has been a member agency of the Compact for Apprehension of Narcotics Dealers and Offenders, CANDO, for over two decades. CANDO has served successfully as a regional effort in combating drug abuse and distribution in central Nebraska and in our City. Federal funding for the Compact has been increased and allowed us to contract with an agency for an investigator who will work mainly in the more rural areas of the Compact. The Interlocal agreement has been amended to reflect the contracted investigator as part of the Compact and needs the approval of the participating governing bodies. Discussion CANDO is a regional drug enforcement compact that has historically been supported by Federal Byrne grant funds. CANDO targets mid and lower level drug dealers for enforcement and works closely with the Tri City Drug Task Force. CANDO has historically used funding to contract for law enforcement officers to work as drug investigators for the compact. Byrne funding decreased in recent years to where the compact could no longer afford to contract for investigators. The compact used the funding that was received to support agency investigations with buy money and overtime support. The loss of the contract investigators left a void in enforcement in the more rural areas of the compact. This loss affects all areas of the region including Grand Island. There is no pressure on dealers living in the rural areas who are selling drugs in our cities. We also lose important intelligence about drug activity in these areas. The smaller member agencies do not have personnel the y can assign to drug investigations. This year Federal funding for Byrne grants was restored and CANDO received grant funding that allows for the contracting of one investigator who is a member of the Phelps County Sheriff’s Office. The restoration of this position will provide for more effective drug enforcement in our region. The Compact will support the investigator position so long as adequate Federal grant funding is available. The amending of the CANDO Interlocal and contracting for the investigator will not have an impact on City’s match funding being provided to the compact. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council ma y: 1. Move to approve 2. Postpone the issue to future date 3. Take no action on the issue Recommendation City Administration recommends that the Council approve the Compact for Apprehension of Narcotics Dealers and Offenders inter-local agreement. Sample Motion Move to approve the Compact for Apprehension of Narcotics Dealers and Offenders inter-local agreement. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010–95 WHEREAS, The City of Grand Island has been a member of the Compact for Apprehension of Narcotics Dealers and Offenders, CANDO, inter-local drug enforcement effort, and WHEREAS, CANDO has been an effective program in drug enforcement against mid and lower level drug dealers, and WHEREAS, CANDO has received restored Federal Bryne grant funding to provide for the contracting of a drug investigator, and WHEREAS, The Phelps County Sheriff’s Office has agreed to provide a deputy to serve as the contract drug investigator, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is, authorized and directed to execute the inter-local agreement with the Compact for Apprehension of Narcotics Dealers and Offenders. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. Margaret Hornady, Mayor Attest: RaNae Edwards, City Clerk Item G4 #2010-96 - Approving Contract for HIDTA Funding for 2010/2011 Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Steve Lamken City of Grand Island City Council Council Agenda Memo From: Steven Lamken, Police Chief Meeting: April 13, 2010 Subject: HIDTA Funds Item #’s: G-4 Presenter(s): Steven Lamken, Police Chief Background The Police Department has been a recipient of HIDTA funding to support the Tri City Drug Task Force for several years. The Department has received $53,692.00 in the 2010/2011 HIDTA award. The funding goes towards equipment for one Police Department investigator, operations of the Task Force offsite facility and funds for the purchase of drugs and payments to informants. Discussion The Police Department has received HIDTA funding for several years that is directed to support the Tri City Drug Task Force. The Department has been awarded $53,692 in HIDTA funds for the 2010/2011 year. The funds support a vehicle and cell phone for one Police Department drug investigator, the operation of the Task Force’s offsite facility and operational funds for the purchase of drugs and payments to informants. The Task Force is a valuable asset in our efforts to combat drug and violent crime in the Tri Cities areas. Grand Island receives significant benefit from the work and efforts of the Task Force. The HIDTA funding provides resources to the Task Force that would otherwise not be available. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Postpone the issue to future date 3. Take no action on the issue Recommendation City Administration recommends that the Counc il approve the contract for HIDTA funding for 2010/2011 to be used in support of the Tri City Drug Task Force. Sample Motion Move to approve the contract for HIDTA funding for 2010/2011 to be used in support of the Tri City Drug Task Force. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-96 WHEREAS, the Ti City Drug Task Force is a valuable asset in drug enforcement in the City of Grand Island, and WHEREAS, the Grand Island Police Department has received HIDTA grant funding to support the Tri City Drug Task Force for several years, and WHEREAS, the Grand Island Police Department has been awarded grant funding of $53,692 for the 2010/2011 operational year. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is, authorized and directed to execute the contract for HIDTA grant funding to be used to support the Tri City Drug Task Force with the Nebraska State Patrol for the 2010/2011 year. Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010 _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G5 #2010-97 - Approving E-Payment Services and Payment Card Industry Data Security Standards Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mary City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Meeting: April 13, 2010 Subject: PCI DSS Compliance and Electronic Payment Option Item #s: G-5 Presenter(s): Mary Lou Brown, Finance Director Background The Finance Department has two goals that it will accomplish through the implementation of the proposed recommendation at the end of this Memo. These two goals are as follows: · Become “Payment Card Industry Data Security Standards” (PCI DSS) compliant; and · Implement an electronic payment option for utility bills and other types of payment due to City departments. All credit card associations (Visa/MasterCard are the two accepted by the City) now require businesses accepting credit card payments to become PCI DSS compliant. The City of Grand Island currently does not meet the credit card data security standards. The PCI DSS is a set of comprehensive requirements for enhancing payment account data security and was developed by a group of organizations in the payment card industry. The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations proactively protect customer account data. The City needs to offer an internet based payment option to our utility customers. More and more people are using the internet to make their payments. Discussion PCI DSS Compliant The City of Grand Island is required to become PCI DSS compliant on or before June 1, 2010 or will be assessed a monthly fine. There are two ways in which compliance can be accomplished - 1) implement credit card security protection of customer credit card numbers housed on the City of Grand Island’s computer servers; or 2) contract with a vendor who would house customers’ credit card information on their own computer servers and thus assume the responsibility for being PCI DSS compliant. The Finance Department has researched both of these options. Electronic Payment Options Two state contracts exist with vendors who can implement an electronic payment option for the City. One of these contracts is with US Bank and the second is with First National Bank of Omaha. These vendors would provide for the acceptance of credit/debit cards and electronic checks over the internet. The fee structure for the electronic payment service can be structured in one of three ways: 100% of the cost is absorbed by the City; 100% of the cost is absorbed by the customer; or cost sharing by both the City and the customer. The costs that have been calculated on the attached sheets are based on January 2010 volumes; there is variability in the monthly amounts although January is indicative of the monthly costs that would be incurred. One of the options available is to share the costs between the City and the customer. Our scenario assumes that the customer pays a fee of $2.00 if they want to make a one time credit card payment. This fee is then kept by the City to partially offset the costs incurred. It is common for organizations to pass some or all of the costs associated with credit card processing on to its customers. It is our thought that the $2.00 fee is reasonable and it only applies to the one time payments. A customer can sign up for recurring credit card payment and incur no fee. The attached documents summarize the options that have been researched and identify the associated costs. As we researched the two goals independently, it became clear that the implementation of both the PCI DSS compliance and the electronic payment options could be accomplished at the same time and potentially with the same providers. The following is a discussion of the alternatives. US Bank State Contract 27775 04 The US Bank contract facilitates the accomplishment of both goals. The Bank has the ability to house customers’ credit card information on their servers and also can implement an electronic payment option for the City. On the US Bank attachment, the costs for each of the set-up options have been detailed. The recommended option which assumes that both the City and the customer absorb costs includes a one time set-up fee of $4,500.00 and monthly fees of $620.15. It is the recommended option due to its ability to meet both goals and it is the lowest cost alternative. Contacts at the State of Nebraska and the City of Kearney have spoken positively regarding their use of US Bank services. First National Bank of Omaha State Contract 35459 04 The First National Bank of Omaha contract also facilitates the accomplishment of both goals. The costs for this contract are solely transaction fees; these fees are approximately $600 higher than under the US Bank contract. There is no one time set up fee; however, it only takes about eight months before the higher fees more than offset the one time set up fee under the US Bank contract. Update credit card security on the City’s servers We have researched this option and estimate the associated cost of working with a third party to update credit card security at approximately $35,000. This work would be completed on our AS400 machine which is the utility billing computer. Our near term strategy is to move off this machine and implement a billing software package; making the changes on the current system would be a temporary fix as the changes would need to be made again with the new billing software. Also, this alternative does not facilitate the implementation of electronic payments. Remain non-compliant with PCI DSS It is possible to not implement any changes to our servers or move to a vendor who would be PCI DSS compliant. First National Bank of Omaha, our current credit card processer, has indicated that this is an option; the fee that would be levied against the City is $500 per month. The $500 per month is the amount First National Bank of Omaha is charging for them to be at risk to provide credit card services to the City when we do not have the required level of security on customer credit card information. Although this is the cheapest alternative today, an additional monthly amount of approximately $120 with US Bank, the City becomes PCI DSS compliant and can offer an electronic payment option without any future risks or costs associated when a breach of security with credit card information does occurs. Remove the option of paying by credit card Prior to June 1, 2010, the City would need to notify its customers that credit card payments were no longer an accepted payment option. The 1,573 customers who paid via credit card in the month of January 2010 and all of the walk-in customers who pay their utility bill as well as other city services would need to begin paying via another accepted method. Alternatives Alternatives to be addressed by the Council include the following: 1. Accept the recommended option of becoming PCI DSS compliant through US Bank and implement an electronic payment option in which the customer pays a $2.00 fee to make a one-time on-line or call-in credit card payment. 2. Approve a different option. Recommendation City Administration recommends that the Council approve the agreement with US Bank for PCI DSS compliance services and the implementation of an electronic payment option. Administration further recommends that the costs associated with the electronic option be shared between the City and the customer and that a $2.00 fee to make a one-time on-line or call in credit card payment be instituted. Sample Motion Move to approve the US Bank agreement for PCI DSS compliance services and the implementation of an electronic payment option. In addition, a $2.00 credit card fee to customers who make one-time on-line or call in credit card payments will be instituted. City of Grand Island Option Summary On-Line Utility Payments Visa/Master Card Fees PCI DSS Compliance Total Recommended Option US Bank Recommended Option One Time Set-Up 4,500.00 4,500.00 Monthly Costs 620.15 6,018.00 Included 6,638.15 Alternative Option FNB of Omaha Monthly fee 1,200.10 6,018.00 Included 7,218.10 Alternative Option Update security on the City's servers - no electronic payment option One Time Set-Up Not Included 35,000.00 35,000.00 Monthly Costs 6,018.00 6,018.00 Alternative Option Pay montly fee for not being PCI DSS compliant 6,018.00 500.00 6,518.00 Alternative Option No longer accept credit card payments No hard costs Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-97 WHEREAS, the City of Grand Island needs to become compliant with the “Payment Card Industry Data Security Standards” (PCI DSS) requirement before June 1, 2010; and WHEREAS, the City of Grand Island wants to implement on-line E-Payment services for customers to pay bills on-line through credit/debit cards and e-checks; and WHEREAS, the additional E-Payment monthly service costs will be approximately $620.15 per month depending on monthly volume and how many departments become involved with on- line payment services; and WHEREAS, the City of Grand Island will charge customers a $2.00 per credit/debit card user fee to process one time on-line or one time call in payments; and WHEREAS, the US Bank Treasury Management Service Agreement has been reviewed and approved by the City Attorney’s office; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, US Bank Treasury Management Service Agreement between the City and US Bank is hereby approved. BE IT FURTHER RESOLVED, that the mayor is hereby authorized and directed to execute such agreements on behalf of the City Of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G6 #2010-98 - Approving Bid Award - Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting Item #’s: G-6 Presenter(s): Gary R. Mader, Utilities Director Background The Utilities Department uses a number of large, steel storage reservoirs for power plant fuel storage and for water storage. Being of steel construction, periodic painting of the surfaces of these reservoirs is required as routine maintenance. The tanks are coated with specialized painting systems to prevent corrosion of the steel shells and the tank support structures, and are regularly inspected for the condition of paint coatings. During inspections last year, two of the storage tanks showed significant deterioration of the exterior surfaces. One of the tanks is at the Burdick Station Power Plant. It is a 460,000 gallon fuel oil storage tank that provides fuel storage for the Gas Turbine generating units there. That tank has not been painted in over 20 years. The second tank needing painting is a 3,000,000 water storage reservoir located at the Rogers Pumping Station on the west side of the City; at the intersection of Old Potash and North Road. That tank was last painted over 15 years ago. The repainting of these two large storage tanks is included in the current Electric and Water Budgets. Power plant staff developed bid specifications for the repainting of the tanks. Discussion The specifications for the Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting were advertised and issued for bid in accordance with the City purchasing code. Bids were publicly opened on March 23, 2010. Specifications were sent to 24 potential bidders and responses were received as listed below. The engineer’s estimate for this project was $190,000.00. Bidder Bid Price Mongan Painting Company $ 154,748.75 W.S. Bunch Company $ 161,217.00 J.R. Stelzer Company $ 163,300.00 F & H Coatings $ 168,125.38 Taylor’s Industrial Coatings $ 199,593.96 TMI Coatings $ 214,300.00 Superior Industrial Maintenance Co. $ 280,397.00 Maguire Iron $ 284,739.00 The bids were reviewed by Utility Engineering staff. The contract specification required that each bidder provide a number of administrative and certification documentations with their bid. The “as read” low bidder did not provide a number of those required submittals including; a project schedule, certification from the Steel Structure Painting Council (SSPC) for qualifications as a lead removal contractor (the old paint on the fuel oil tank contains lead), a lead abatement plan in accordance with SSPC standards, five references of like work scale including three with lead paint removal; and a manufacturers warranty for materials used. After several contacts, the required information was not received. Therefore, the “as read” bid from Mongan Painting Company is deemed non-compliant with the specifications. The second low bid from W.S. Bunch Company is compliant with specifications and less than the engineer’s estimate. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council award the Contract for Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting to W.S. Bunch Company of Omaha, Nebraska, as the low responsive bidder, in a contract amount of $161,217.00. Sample Motion Move to accept the bid of $161,217.00 from W. S. Bunch Company for the Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting contract. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Wes Nespor, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE: March 23, 2010 at 2:00 p.m. FOR: Burdick Station Diesel Fuel Tank & Rogers Reservoir 1 Painting DEPARTMENT: Utilities ESTIMATE: $190,000.00 FUND/ACCOUNT: 520 PUBLICATION DATE: March 5, 2010 NO. POTENTIAL BIDDERS: 24 SUMMARY Bidder: Superior Industrial Maintenance Co. Taylor’s Industrial Coatings Harrisburg, NC Lake Wales, FL Bid Security: Great American Ins. Co. Old Republic Surety Co. Exceptions: None None Bid Price: Material: $178,670.00 $115,689.84 Labor: $ 89,220.00 $ 76,072.64 Sales Tax: $ 12,507.00 $ 7,831.48 Total Bid: $280,397.00 $199,593.96 Bidder: F & H Coatings TMI Coatings Kechi, KS St. Paul, MN Bid Security: Nationwide Mutual Ins. Co. North American Specialty Ins. Co. Exceptions: None None Bid Price: Material: $ 35,500.00 $ 30,000.00 Labor: $132,625.38 $182,200.00 Sales Tax: ---____ $ 2,100.00 Total Bid: $168,125.38 $214,300.00 Bidder: Maguire Iron Mongan Painting Co. Sioux Falls, SD Cherokee, IA Bid Security: Great American Ins. Co. Merchants Bonding Co. Exceptions: None Noted Bid Price: Material: $ 73,682.80 $ 35,625.00 Labor: $211,056.20 $109,000.00 Sales Tax: ----____ $ 10,123.75 Total Bid: $284,739.00 $154,748.75 Bidder: J.R. Stelzer Co. W.S. Bunch Co. Lincoln, NE Omaha, NE Bid Security: Merchants Bonding Co. United Fire & Casualty Co. Exceptions: None None Bid Price: Material: $ 40,800.00 $ 62,107.00 Labor: $119,400.00 $ 94,940.00 Sales Tax: $ 3,100.00 $ 4,170.00 Total Bid: $163,300.00 $161,217.00 cc: Gary Mader, Utilities Director Bob Smith, Assist. Utilities Director Dale Shotkoski, City Attorney Pat Gericke, Utilities Admin. Assist. Jeff Pederson, City Administrator Larry Keown, Burdick Power Plant Supt. P1405 Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-98 WHEREAS, the Utilities Department invited sealed bids for Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting; and WHEREAS, on March 23, 2010, bids were received, opened and reviewed; and WHEREAS, W.S. Bunch Company of Omaha, Nebraska, submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $161,217.00; and WHEREAS, the bid of W. S. Bunch Company of Omaha, Nebraska, is less than the estimate for Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of W.S. Bunch Company of Omaha, Nebraska, in the amount of $161,217.00, for Burdick Station Diesel Fuel Tank and Rogers Reservoir #1 Painting is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G7 #2010-99 - Approving Bid Award - 2010 Truck with Digger Derrick Unit - Utilities Line Division Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: 2010 Truck with Digger Derrick Unit – Line Division Item #’s: G-7 Presenter(s): Gary R. Mader, Utilities Director Background The three construction crews of the Utilities Line Division maintain approximately 400 miles of overhead line in the Grand Island area; rebuilding older lines as needed, re- locating lines to accommodate projects such as the widening of Capital Avenue, and building new lines as the City expands and new development occurs. Each of these crews has a digger/derrick truck and a bucket truck as basic equipment. The digger/derrick units are heavy trucks used to dig the holes for power poles and to handle and place the poles for line construction and repair. The boom, hydraulic auger, outriggers and auxiliary equipment used for line construction are powered from the truck engine when the unit is in service. The Department currently has a 13 year old digger/derrick that is nearing the end of its reliable life. Unit #73 is a 1997 model. Since the truck engine provides the power for the hydraulic construction equipment on the truck, each truck is equipped with an hour meter to schedule maintenance and gage wear. Unit #73 has about 8,700 hours on it, which is the equivalent of about 260,000 miles at an average 30 mph engine speed. To ensure safe operation under heavy loads and near energized power lines, line construction trucks are tested and inspected annually to ensure structural integrity and to ensure dielectric strength is retained. These tests are conducted by firms specializing in this specific type of equipment. At the last inspection of Unit #73, the inspector noted that the boom rotation gear was worn and other components were showing their age. Because of concerns last year about the continued reliable operation of this unit, it was included for replacement in the current Electric Department budget. Discussion Specifications for replacement of Unit #73 were prepared by Department staff, advertised in accordance with the City Purchasing Code, sent to six potential bidders, and posted on the City’s Web Site. The bids were publically opened on March 23, 2010. Four bids were received as tabulated below. Terex Utilities – San Antonio, Texas Base Price $141,139.00 Terex digger Truck +$ 83,626.00 Four Star Freightliner Montgomery, AL - $ 16,000.00 Trade-In TOTAL BID $208,765.00 Terex Utilities – San Antonio, Texas Base Price $141,139.00 Terex digger Truck +$ 89,395.00 Hansen International, Grand Island, NE - $ 16,000.00 Trade-In TOTAL BID $214,534.00 Terex Utilities – San Antonio, Texas Base Price $141,139.00 Terex digger Truck +$ 90,645.00 Great Plains International, Sioux Falls, SD - $ 16,000.00 Trade-In TOTAL BID $215,784.00 Nebraska Truck Center – Grand Island, NE Base Price $225,212.00 Terex digger, Freightliner Truck - $ 16,000.00 Trade-In TOTAL BID $209,212.00 The bids were reviewed by Utility staff. All of the bids included some minor exceptions, but none that materially affect the ability of the bid equipment to meet the job requirements as specified. All bids are evaluated as in compliance with the specifications. The lowest bid is from Terex Utilities in the amount of $208,765.00 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the purchase of the 2010 Truck with Digger Derrick Unit from Terex Utilities of San Antonio, Texas, in the amount of $208,765.00, net price with trade-in of the old unit. Sample Motion Move to approve the purchase of a 2010 Truck with Digger Derrick Unit from Terex Utilities of San Antonio, Texas, in the amount of $208,765.00. Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Wes Nespor, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE: March 23, 2010 at 2:15 p.m. FOR: 2010 Truck with Digger Derrick Unit DEPARTMENT: Utilities ESTIMATE: $220,000.00 FUND/ACCOUNT: 520 PUBLICATION DATE: March 4, 2010 NO. POTENTIAL BIDDERS: 6 SUMMARY Bidder: TEREX Utilities Nebraska Truck Center, Inc. San Antonio, TX Grand Island, NE Bid Security: Westchester Fire Ins. Co. Universal Surety Co. Exceptions: Noted Noted Total Base Price: $141,139.00 $225,212.00 Less Trade-In: $ 16,000.00 $ 16,000.00 Total Cost: $125,139.00 + Chassis Option $209,212.00 Chassis Option: $83,626.00 (Freightliner) $89,395.00 (International - Hansen) $90,645.00 (International – Great Plains) cc: Gary Mader, Utilities Director Bob Smith, Assist. Utilities Director Dale Shotkoski, City Attorney Pat Gericke, Utilities Admin. Assist. Jeff Pederson, City Administrator Ray Micek, Elec. Dist. Supt. P1404 Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-99 WHEREAS, the Utilities Department invited sealed bids for a 2010 Truck with Digger Derrick Unit for the Line Division; and WHEREAS, on March 23, 2010, bids were received, opened and reviewed; and WHEREAS, Terex Utilities of San Antonio, Texas, submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $208,765.00; and WHEREAS, the bid of Terex Utilities of San Antonio, Texas, is less than the estimate for the 2010 Truck with Digger Derrick Unit. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of Terex Utilities of San Antonio, Texas, in the amount of $208,765.00, for a 2010 Truck with Digger Derrick Unit is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G8 #2010-100 - Approving Change Order #1 - On-Site Technical Advisor for GT3 Combustion Inspection - Burdick Station Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Council Agenda Memo From: Gary R. Mader, Utilities Director Dale Shotkoski, City Attorney Meeting: April 13, 2010 Subject: On-Site Technical Advisor for GT3 Combustion Inspection - Change Order #1 Item #’s: G-8 Presenter(s): Gary R. Mader, Utilities Director Background Burdick Generating Station utilizes three steam turbines and three gas turbines for electrical generation. Gas Turbine 3 (GT3) is a General Electric Frame 6 turbine generator and was commissioned in 2003. Based on the hours of operation and the number of unit starts, the manufacturer recommended performing a combustion inspection. A combustion inspection includes dismantling and inspection of combustion path components such as fuel nozzles and combustion chambers and is needed to properly ensure proper combustion for unit performance, efficiency, and emission control. It is also used to determine any future repair work based on the manufacturer’s recommendations. In performing turbine generator inspections of this scope, the Departme nt utilizes technical advisors specializing in these services. The advisors work with plant management to schedule work activities, order replacement parts, and provide technical guidance to plant maintenance staff during the inspection. Plant staff developed specifications to solicit bids for technical advisors for this work which included requirements of experience and factory training for General Electric Frame 6 gas turbine generator combustion inspections. These specifications required a firm bid based on an estimated project schedule of two weeks, with unit pricing to adjust the total cost based on actual project duration. General Electric International was awarded the contract for the On-Site Technical Advisor for GT3 Combustion Inspection at the Council Meeting of December 15, 2009 in the amount of $42,602.05. Discussion This was the first combustion inspection done on this unit and the initial contract time estimate of two weeks proved to be too optimistic. The combustion inspection of GT3 required an additional five days of technical advisor time to complete. The additional cost is $12,800.00, per the contract unit pricing, for a final contract cost of $55,402.05. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends authorizing Change Order #1 to the On-Site Technical Advisor for GT3 Combustion Inspection at the Burdick Generating Station for an addition to the contract price of $12,800.00 to GE International. Sample Motion Move to approve Change Order #1 with GE International for the On-Site Technical Advisor for GT3 Combustion Inspection for an additional amount of $12,800.00. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-100 WHEREAS, General Electric International was awarded the contract for On-Site Technical Inspection at the December 15, 2009 City Council meeting; and WHEREAS, the specifications required a firm bid based on an estimated project schedule of two weeks, with unit pricing to adjust the total cost based on actual project duration; and WHEREAS, the combustion inspection of GT3 required an additional five days of technical advisor time to complete, at an additional cost of $12,800.00 per the contract pricing, for a final contract cost of $55,402.05. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Change Order #1 with General Electric International resulting in an additional cost of $12,800.00 for a final contract price of $55,402.05, is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G9 #2010-101 - Approving Acquisition of Utility Easement Located Between White Cloud and Abbot Roads, and Between Engleman and North Roads (Glen and Betty Weise) This item relates to the aforementioned Public Hearing Item E-6. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-101 WHEREAS, a public utility easement is required by the City of Grand Island, from Glen E. and Betty J. Wiese to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: The easterly twenty-five (25) feet of the Northwest Quarter (NW¼) of Section Twenty-six (26), Township Twelve (12) North, Range Ten (10) West of the 6th P.M., Hall County, Nebraska. The above-described easement and right-of-way containing a total of 1.52 acres, more or less, as shown on the plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Glen E. and Betty J. Wiese, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G10 #2010-102 - Approving Acquisition of Utility Easement Located Between One R and Chapman Roads, and Between North and Engleman Roads (Robert and Kay Fielding) This item relates to the aforementioned Public Hearing Item E-7. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-102 WHEREAS, a public utility easement is required by the City of Grand Island, from Robert M. Fielding and Kay M. Fielding, to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: All of the Grantor’s interest in the West Twenty Five (25) feet of the Southwest Quarter of the Southeast Quarter (SW ¼ SE ¼) of Section Fourteen (14), Township Twelve (12) North, Range Ten (10) West of the 6th P.M., Hall County, Nebraska. The above-described easement and right-of-way containing a total of 0.05 acres, more or less, as shown on the plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Robert M. Fielding and Kay M. Fielding, on the above- described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G11 #2010-103 - Approving Acquisition of Utility Easement Located Between One R and Chapman Roads, and Between Engleman and North Roads (Parcel #1) (Thomas and Linda Atkins) This item relates to the aforementioned Public Hearing Item E-8. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-103 WHEREAS, a public utility easement is required by the City of Grand Island, from Thomas M. Atkins and Linda J. Atkins, to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: The westerly Twenty-five (25) feet of the Southeast Quarter (SE¼) of Section Fourteen (14), Township Twelve (12) North, Range Ten (10) West of the 6th P.M., Hall County, Nebraska except the southerly Forty-five (45) feet thereof and that part contained in a tract of land conveyed by a warranty deed recorded as instrument No. 200509318 in the Hall County Register of Deeds. The above-described easement and right-of-way containing a total of 1.47 acres, more or less, as shown on that plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Thomas M. and Linda J. Atkins, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G12 #2010-104 - Approving Acquisition of Utility Easement Located Between One R and Chapman Roads, and Between Engleman and North Roads (Parcel #2) (Thomas and Linda Atkins) This item relates to the aforementioned Public Hearing Item E-9. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-104 WHEREAS, a public utility easement is required by the City of Grand Island, from Thomas M. Atkins and Linda J. Atkins, to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: The easterly Twenty-five (25) feet of the Northwest Quarter (NW¼) of Section Fourteen (14), Township Twelve (12) North, Range Ten (10) West of the 6th P.M., Hall County, Nebraska. The above-described easement and right-of-way containing a total of 1.52 acres, more or less, as shown on the plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Thomas M. and Linda J. Atkins, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G13 #2010-105 -Approving Acquisition of Utility Easement Located Between Prairie and Chapman Roads, and between Engleman and North Roads (Elmer E. Pollock) This item relates to the aforementioned Public Hearing Item E-10. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-105 WHEREAS, a public utility easement is required by the City of Grand Island, from Elmer E. Pollock, to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: The southerly Twenty-Five (25) feet of the Northwest Quarter (NW1/4) of Section Eleven (11), Township Twelve (12) North, Range Ten (10) West of the 6th P.M., Hall County, Nebraska except the westerly Three Hundred Forty Four (344) feet thereof. The above described easement and right-of-way containing a total of 1.32 acres, more or less, as shown on the plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Elmer E. Pollock, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G14 #2010-106 - Approving Utility Easement Located Between White Cloud and One R Roads, and Between Engleman and North Roads (Jeff and Susan Koch) This item relates to the aforementioned Public Hearing Item E-11. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Gary R. Mader City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-106 WHEREAS, a public utility easement is required by the City of Grand Island, from Jeff and Susan Koch, to install, upgrade, maintain and repair, a 115 kV electric transmission line to the northwest of the City; and WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in Hall County, Nebraska; and more particularly described as follows: The westerly twenty-five (25) feet of the Northwest Quarter of the Southeast Quarter (NW¼SE¼) of Section Twenty-three (23), Township Twelve (12) North, Range Ten (10) West of the 6th P.M. Hall County, Nebraska and the westerly Twenty-five (25) feet of a tract of land in the Northeast Quarter (NE¼) of Section Twenty-three (23), Township Twelve (12) North, Range Ten (10) West of the 6th P.M. Hall County, Nebraska described as commencing at the Southeast corner of said Northeast Quarter, thence running northerly along the east line of said Northeast Quarter a distance of Thirteen and One-half (13½) rods, thence running westerly a distance of One Hundred Sixty (160) rods more or less to a point on the west line of said Northeast Quarter Fourteen and One-half (14½) rods north of the south line of said Northeast Quarter, thence southerly along the west line of said Northeast Quarter a distance of Fourteen and one-half (14½) rods to the south line of said Northeast Quarter, thence easterly along the south line of said Northeast Quarter One Hundred Sixty (160) rods more or less to the point of beginning. The above-described easement and right-of-way containing a total of 0.89 acres, more or less, as shown on the plat dated November 9, 2009, marked Exhibit “A”, attached hereto and incorporated herein by reference, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Jeff and Susan Koch, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G15 #2010-107 - Approving Acquisition of Utility Easement Located South Side of the Alley Between 4th Street and the UPRR Tracks, East of Cedar Street (Five Points Bank) This item relates to the aforementioned Public Hearing Item E-2. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Steve Riehle City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-107 WHEREAS, a public utility easement is required by the City of Grand Island, from Five Points Bank to survey, construct, inspect, maintain, repair, replace, relocate, extend, remove, and operate thereon, public utilities and appurtenances, including lines and transformers; and; WHEREAS, a public hearing was held on April 13, 2010, for the purpose of discussing the proposed acquisition of an easement located in the City of Grand, Hall County, Nebraska; and more particularly described as follows: . The northerly twenty (20.0) feet of the westerly one hundred thirty two (132.0) feet of Lot One (1) Hometown Subdivision. The above-described easement and right-of-way containing a total of 0.060 acres, more or less, as shown on the plat dated 3/11/2010, marked Exhibit "A", attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire public utility easements from Five Points Bank, on the above-described tracts of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item G16 #2010-108 - Approving Proposal for Professional Engineering Consulting Services Regarding Wastewater Treatment Capacity Analysis, Treatment Process Alternatives & Rate Model Work Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Steven P. Riehle City of Grand Island City Council Council Agenda Memo From: Steven P. Riehle, Public Works Director Meeting: April 13, 2010 Subject: Approving Proposal for Professional Engineering Consulting Services Regarding Wastewater Treatment Capacity Analysis, Treatment Process Alternatives & Rate Model Work Item #’s: G-16 Presenter(s): Steven P. Riehle, Public Works Director Background The Wastewater Division of the Public Works Department advertised on March 6, 2010 for proposals for professional engineering services to analyze the treatment plant capacity, review treatment process alternatives and perform rate model work at the Wastewater Treatment Plant. The City has also asked that presentations be made to the City, JBS and NDEQ. An analysis of proper soluble BOD and coordination and design of treatments recommended shall be included. Discussion The RFP was sent to 11 potential firms, with two proposals being received, opened and reviewed by the City of Grand Island’s Wastewater Division on March 30, 2010. Proposals were received from Black & Veatch of Kansas City, Missouri and CH2M Hill of Omaha, Nebraska. Black & Veatch of Kansas City, Missouri, with Olsson Associates of Grand Island, Nebraska as the sub-consultant submitted the highest scoring proposal in accordance with the criteria in the request for proposals. The agreement will follow the same format as the agreement with Black & Veatch for the Aeration Basin Improvement Project that was approved by the Council on October 13, 2009. The work is to be performed at actual costs with a maximum of $59,800.00. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1. Move to approve 2. Refer the issue to a Committee 3. Postpone the issue to future date 4. Take no action on the issue Recommendation Public Works Administration recommends that the Council approve the award of the proposal to Black & Veatch of Kansas City, Missouri. Sample Motion Move to approve the award of the proposal to Black & Veatch of Kansas City, Missouri. Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-108 WHEREAS, a Request for Proposals for professional engineering consulting services regarding treatment capacity, process alternatives and rate model work for City of Grand Island, Wastewater Division of the Public Works Department was published in the Grand Island Daily Independent on March 6, 2010; and WHEREAS, on March 30, 2010, two proposals were received, opened and reviewed; and WHEREAS, Black & Veatch of Kansas City, Missouri, with Olsson Associates of Grand Island, Nebraska as a sub-consultant, submitted a proposal in accordance with the selection criteria listed in the Request for Proposals and all other statutory requirements contained therein; and WHEREAS, the work will be performed at actual costs with a maximum of $59,800.00; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the proposal of Black & Veatch of Kansas City, Missouri, with Olsson Associates of Grand Island, Nebraska as a sub-consultant, in the maximum amount of $59,800.00 for professional engineering consulting services regarding wastewater treatment capacity, process alternatives and rate model work is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute an agreement for such project on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. Margaret Hornady, Mayor Attest: RaNae Edwards, City Clerk Item G17 #2010-109 - Approving Semi-Annual Report by the Citizens’ Review Committee on the Economic Development Program Plan This item relates to the aforementioned Public Hearing Item E-4. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Citizens' Review Committee City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-109 WHEREAS, Neb. Rev. Stat. §18-2715(3) and Grand Island City Code §2-110 require a report by the Citizens Advisory Review Committee to the City Council at least once every six months on its findings and suggestions on the administration of the Economic Development Plan; and WHEREAS, a public hearing on the report submitted by the Citizens’ Advisory Review Committee was held at a regular session of the Grand Island City Council on April 13, 2010; and WHEREAS, said report gave information about the activities of the past six months that have taken place pursuant to the Economic Development Plan. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the semi-annual report of the Citizens Advisory Review Committee is hereby accepted and approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item H1 Consideration of Request from Upper Plains Contracting, Inc. for a Conditional Use Permit for Concrete Batch Plant Site Located at 3860 South Locust Street This item relates to the aforementioned Public Hearing Item E-5. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Craig Lewis City of Grand Island City Council Item I1 #2010-110 - Consideration of Request from Highway Motels of Nebraska, Inc. dba Holiday Inn Express, 3404 West Faidley Avenue for a Class “I” Liquor License and Liquor Manager Designation for Melvin Wichman, 2518 Jan Street This item relates to the aforementioned Public Hearing Item E-1. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: RaNae Edwards City of Grand Island City Council Approved as to Form ¤ ___________ April 8, 2010 ¤ City Attorney R E S O L U T I O N 2010-110 WHEREAS, an application was filed by Highway Motels of Nebraska, Inc. doing business as Holiday Inn Express, 3404 West Faidley Avenue for a Class "I" Liquor License; and WHEREAS, a public hearing notice was published in the Grand Island Independent as required by state law on April 3, 2010; such publication cost being $15.18; and WHEREAS, a public hearing was held on April 13, 2010 for the purpose of discussing such liquor license application. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: ____ The City of Grand Island hereby recommends approval of the above-identified liquor license application contingent upon final inspections. ____ The City of Grand Island hereby makes no recommendation as to the above- identified liquor license application. ____ The City of Grand Island hereby makes no recommendation as to the above- identified liquor license application with the following stipulations: _________ _________________________________________________________ ____ The City of Grand Island hereby recommends denial of the above-identified liquor license application for the following reasons: ________________________ _________________________________________________________ ____ The City of Grand Island hereby recommends approval of Melvin Wichman, 2518 Jan Street as liquor manager of such business upon the completion of a state approved alcohol server/seller training program. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item I2 #2010-111 - Consideration of Premium Holidays Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Council Agenda Memo From: Mary Lou Brown, Finance Director Brenda Sutherland, Human Resources Director Meeting: April 13, 2010 Subject: Healthcare Premium Holidays Item #s: I-2 Presenter(s): Mary Lou Brown, Finance Director Background City Staff has been reviewing potential items that may be used to close the current fiscal year gap caused by declining receipts, primarily sales tax. The forecasted revenue shortfall is $1,935,000. Items ranging from the management of open positions to reductions in the General Fund Capital program have been identified. One of the items identified is the use of excess cash reserves in the General Insurance Fund, Fund 615. Discussion The General Insurance Fund maintains balances related to the City’s workers’ compensation, general insurance and health insurance programs. The cash balances related to each of these is separately tracked within the Fund. As of March 31, 2010, the cash balance related to the health insurance program is $4,352,748. It is appropriate to maintain a level of reserve related to the healthcare program. Projections show that normal activity in the program may reduce the cash balance by $300,000 to $400,000 by the end of the fiscal year. This would leave approximately $3,900,000 as a balance. This balance, which over the past four years has ranged from $2.2 million to $4.5 million, was addressed by Council during the 2009/2010 budget process. The suggestion was made that the cash balance be used to ease the budget concerns. City Staff agreed to review the situation and make a recommendation prior to, or during, the 2010/2011 budget process. It has been determined that an excess cash balance has been built up in the health insurance program. The balance has grown due to the following factors: · Charging City departments a rate higher than what actual experience would support; · Charging City employees a rate higher than what actual experience would support; and · The impact of the City wellness program. For the current year, employees have contributed 16% of the healthcare costs and the City the remaining 84%. Prior to this year, employees contributed 15% and the City 85%. The cash balance started to increase in the 2007/2008 timeframe which is also concurrent with the implementation of the City’s wellness program. The wellness program has directly contributed to a reduction in the number of healthcare claims and this reduction has been maintained over the past couple of years. As the City’s wellness program has played a large role in the reduction of claims and therefore the excess cash reserve, we would like to address the holidays in a fashion that keeps the wellness “drive alive” and tie them to promotions that encourage healthy lifestyle choices. Continued efforts to promote a healthy workforce will continue to serve the City with an able- bodied workforce and maintenance of claims growth that has been trending well below the national average. Since the cash balance is attributable to both the City and the City’s employees, the excess cash should be drawn back out of the program in a manner that benefits both parties. It is the recommendation of Staff that up to three healthcare premium holidays be implemented for the healthcare program in the current fiscal year. These premium holidays will result in an estimated reduction of the healthcare insurance cash balance of $420,000; the cash balance at the end of the fiscal year is projected to be at $3,480,000. The premium holidays will help close the budget shortfall since General Fund departments will see a reduction in the amount of costs they pay to the General Insurance Fund. Alternatives Alternatives to be addressed by the Council include the following: 1. Accept the recommendation of three healthcare premium holidays. 2. Modify the recommendatio n. 3. Deny the recommendation. Recommendation It is the recommendation of Staff that up to three healthcare premium holidays be implemented for both the City departments and the City employees for the healthcare program within the General Insurance Fund. Sample Motion Move to approve the recommendation that three healthcare premium holidays, observed by both the City departments and the employees, be implemented during the remaining months of the current fiscal year. Approved as to Form ¤ ___________ April 9, 2010 ¤ City Attorney R E S O L U T I O N 2010-111 WHEREAS, the City of Grand Island provides health and dental insurance to its employees; and WHEREAS, the City’s General Insurance Fund is amply funded; and WHEREAS, administration is recommending up to three premium holidays that will reduce the fund to an acceptable limit and assist with meeting the current budget year deficit; and WHEREAS, the premium holidays will be observed by both the City and the employees; and WHEREAS, the premium holiday will result in neither the City nor the employee paying a premium for said holiday; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, to approve up to three premium holidays for the City’s health and dental plan. - - - Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2010. _______________________________________ Margaret Hornady, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Item J1 Approving Payment of Claims for the Period of March 24, 2010 through April 13, 2010 The Claims for the period of March 24, 2010 through April 13, 2010 for a total amount of $5,428,264.49. A MOTION is in order. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Item J2 Approving Payment of Claims for the Period of February 24, 2010 through April 13, 2010 for the Veterans Athletic Field Complex The Claims for the Veterans Athletic Field Complex for the period of February 24, 2010 through April 13, 2010 for the following requisitions. #15 $56,207.00 A MOTION is in order. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council Item J3 Approving Payment of Claims for the Period of March 24, 2010 through April 13, 2010 for the State Fair Recreation Building The Claims for the Period of March 24, 2010 through April 13, 2010 for the State Fair Recreational Building for the following requisitions: #15 $3,474.99 A MOTION is in order. Tuesday, April 13, 2010 Council Session City of Grand Island Staff Contact: Mary Lou Brown City of Grand Island City Council