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12-01-2015 City Council Study Session Packet City of Grand Island Tuesday, December 1, 2015 Study Session Packet City Council: Linna Dee Donaldson Michelle Fitzke Chuck Haase Julie Hehnke Jeremy Jones Vaughn Minton Mitchell Nickerson Mike Paulick Roger Steele Mark Stelk Mayor: Jeremy L. Jensen City Administrator: Marlan Ferguson City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East 1st Street Grand Island Study Session - 12/1/2015 Page 1 / 47 City of Grand Island Tuesday, December 1, 2015 Call to Order 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. Invocation Pledge of Allegiance Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. Grand Island Study Session - 12/1/2015 Page 2 / 47 City of Grand Island Tuesday, December 1, 2015 Study Session Item -1 Discussion - Cemetery Expansion Staff Contact: Todd McCoy, Parks & Recreation Director Grand Island Study Session - 12/1/2015 Page 3 / 47 City of Grand Island Tuesday, December 1, 2015 Study Session Item -2 Presentation – Food and Beverage Tax Staff Contact: Marlan Ferguson Grand Island Study Session - 12/1/2015 Page 4 / 47 FOOD and BEVERAGE TAX Improving the Lives of our Families It’s Good for Grand Island Grand Island Study Session - 12/1/2015 Page 5 / 47 WHAT DO WE KNOW? The current food & beverage tax will end in July of 2016. Nebraska Legislature tells us that in order to continue the tax for an amount over $700,000 per year, it requires a vote of the people. The current tax is successful in part, because it’s a shared tax by Grand Island residents and all who visit Grand Island from out of town. The continuation of the tax will allow Grand Island to grow and prosper without being as dependent on the City’s general fund. That’s Good for Grand Island … Grand Island Study Session - 12/1/2015 Page 6 / 47 HISTORY: Year Significance 2008 A 1.5% occupation tax was initiated for the construction of the Community Field House which doubles as the 4-H, FFA Building during the Nebraska State Fair. 2009 Council added an additional $1.6 million for the Veteran’s Athletic Fields displaced by the Nebraska State Fair moving to Grand Island. 2011 State Law mandates that, as the home of the Nebraska State Fair, the City must contribute 10% of Nebraska Lottery funds received by the State Fair. (2014 = $350,223) 2012 The Legislature passes LB745 which prohibits communities to tax above $700,000/year without a vote of the people. Grand Island Study Session - 12/1/2015 Page 7 / 47 2016 Our goal is to put before the voters, a continuation of the existing 1.5% tax on all food and beverage, that begins following the sunset of the current tax. The Vote: May 10, 2016 We believe that the tax -- shared by residence and all who visit Grand Island to dine and drink -- will allow the City of Grand Island the resources necessary, to undertake needed community improvements that have a clear focus on the quality of life for our Grand Island families. Grand Island Study Session - 12/1/2015 Page 8 / 47 The primary differences between the current & the proposed tax: The new language includes taxing the sale of alcohol, along with food and non-alcoholic beverages. The current tax does not. Communities that tax the sale of alcohol as part of their food and beverage tax include: Omaha (2.5%) Lincoln (2%) Norfolk (2%) While the original tax was used to finance the fieldhouse, the continuation of the tax will be used to invest in projects, programs and events that are important to our families—while attracting more visitors to Grand Island  sharing the tax with folks from out of town. Grand Island Study Session - 12/1/2015 Page 9 / 47 Tuesday, May 10, 2016 -- A vote of the people Sample Ballot Language: Shall the City of Grand Island enact a tax of one and one half percent (1 ½%) on the sale of all food and beverages presently subject to sales tax in commercial establishments such as restaurants, bars and clubs? -FOR said proposal -AGAINST said proposal Grand Island Study Session - 12/1/2015 Page 10 / 47 Summary Detail … The proceeds from this tax shall be used for one or more of the following community enhancements: The annual financial commitment to the Nebraska State Fair as required by state law; ($350,223 in 2014) Grand Island Study Session - 12/1/2015 Page 11 / 47 Community Enhancements: Promote entertainment, agricultural and livestock shows, trade shows and similar events that will attract visitors to Grand Island; Grand Island Study Session - 12/1/2015 Page 12 / 47 Examples: The continuation of more livestock shows in the State Fair/Fonner Park buildings (7 shows/sales in 2015; 4 of which had an economic impact of $1.6M) The continuation of more agricultural and trade shows in the State Fair/Fonner Park buildings and Heartland Events Center An investment in more entertainment options, not only at the Heartland Events Center or Heartland Public Shooting Park, but throughout Grand Island All of these bring visitors to our community, which is good for Grand Island. Grand Island Study Session - 12/1/2015 Page 13 / 47 Community Enhancements: Ongoing enhancement and development of recreation and athletic facilities such as hike, bike and recreational trails, ball fields and other community activity needs; Grand Island Study Session - 12/1/2015 Page 14 / 47 Examples: Expansion of the Veterans Athletic Complex with additional baseball/softball & soccer fields Continued improvements at Island Oasis Water Park Continued development of City Parks Improve water quality at Pier Park & Sucks Lake Continued investment in hike, bike & recreational trail system Grand Island Study Session - 12/1/2015 Page 15 / 47 Community Enhancements: Invest in community development projects and activities that stimulate progress and growth for Grand Island. Grand Island Study Session - 12/1/2015 Page 16 / 47 Grow Grand Island: With the input of thousands, 5 pillars were identified (Existing Businesses, Entrepreneurs, Image, Workforce, Community Assets). The glue that holds the community's pillars together - collaborative, cooperative and effective partnerships, including 500+ volunteers, to date. Grand Island Study Session - 12/1/2015 Page 17 / 47 Summary Detail cont. The City of Grand Island is authorized to collect the tax, unless termination thereof is approved by the voters. Grand Island Study Session - 12/1/2015 Page 18 / 47 Shall the City of Grand Island enact a tax of one and one half percent (1 ½%) on the sale of all food and beverages presently subject to sales tax in commercial establishments such as restaurants, bars and clubs? -FOR said proposal -AGAINST said proposal SUMMARY DETAIL: The proceeds from this tax shall be used for the following community enhancements: The annual financial commitment to the Nebraska State Fair as required by state law; Promote entertainment, agricultural and livestock shows, trade shows and similar events that will attract visitors to Grand Island; Ongoing enhancement and development of recreation and athletic facilities such as hike, bike and recreational trails, ball fields and other community activity needs; Invest in community development projects and activities that stimulate progress and growth for Grand Island. The City of Grand Island is authorized to collect the tax, unless termination thereof is approved by the voters. Overview: Grand Island Study Session - 12/1/2015 Page 19 / 47 THOUGHTS??? Grand Island Study Session - 12/1/2015 Page 20 / 47 SAMPLE FOOD AND BEVERAGE TAX BALLOT LANGUAGE & SUMMARY DETAIL Shall the City of Grand Island enact a tax of one and one half percent (1½%) on the sale of all food and beverages presently subject to sales tax in commercial establishments such as restaurants, bars, and clubs? -FOR said proposal -AGAINST said proposal SUMMARY DETAIL: The proceeds from this tax shall be used for the following community enhancements: The annual financial commitment to the Nebraska State Fair as required by state law; Promote entertainment, agricultural and livestock shows, trade shows and similar events that will attract visitors to Grand Island; Ongoing enhancement and development of recreation and athletic facilities such as hike, bike and recreational trails, ball fields and other community activity needs; Invest in community development projects and activities that stimulate progress and growth for Grand Island. The City of Grand Island is authorized to collect the tax, unless termination thereof is approved by the voters. Updated 11/25/15 Grand Island Study Session - 12/1/2015 Page 21 / 47 City of Grand Island Tuesday, December 1, 2015 Study Session Item -3 Presentation – 911 – EOC Center Report Staff Contact: Jon Rosenlund Grand Island Study Session - 12/1/2015 Page 22 / 47 911 – EOC Center Report Study Session December 1, 2015 Grand Island Study Session - 12/1/2015 Page 23 / 47 Agenda •Report RFQ •Options –Full Scale Center –Alternate 911 –Costs –New Developments •Ongoing Costs •Recommendation Grand Island Study Session - 12/1/2015 Page 24 / 47 Report RFQ •Provide a series of options for: –Full Scale Center vs. Alternate –Various Locations •Station #1 •West Faidley Open Property •National Guard Armory Grand Island Study Session - 12/1/2015 Page 25 / 47 Full Scale Building •Plan for 30+ years of operation •Estimate growth of population & calls •Incorporate modern functions of Operations, Planning, Logistics, Public Information •Strength and durability of construction •Redundancy & options for future growth •Estimate 12,300 square feet (page 7) •Start with 911 Center & Radio Room Grand Island Study Session - 12/1/2015 Page 26 / 47 Conceptual Plans Grand Island Study Session - 12/1/2015 Page 27 / 47 Location Preferences •Distance from City Hall (1 mile preferred) •Out of the flood plain •Distance from Railroad & Major highways •Proximity to City/County Fiber Optics •Proximity to Electrical Substations •Buried utilities vs. overhead Grand Island Study Session - 12/1/2015 Page 28 / 47 Locations for Full Scale •West Faidley •Fire Station #1 •Industrial Park * *Not included in Report Grand Island Study Session - 12/1/2015 Page 29 / 47 West Faidley #1 Electrical Substation Land Estimate $ 300,000 Grand Island Study Session - 12/1/2015 Page 30 / 47 West Faidley #2 Electrical Substation Buried 1,100 Ft. Land Estimate $ 450,000 Grand Island Study Session - 12/1/2015 Page 31 / 47 Fire Station #1 Burdick Station Overhead 9,000 Ft. Grand Island Study Session - 12/1/2015 Page 32 / 47 Industrial Park Electrical Substation Buried 1,100 Ft. Land Estimate $ 30,000 Grand Island Study Session - 12/1/2015 Page 33 / 47 Cost of Full Scale Construction Category Estimated Cost Development costs (site purchase, etc.)Depends on Location Sitework $ 195,600 Construction $ 1,986,275 Project Expenses (Equipment, A/E Fees) ($810,000 is Equipment) $ 983,100 Contingency $ 316,500 Total (does not include land acquisition) $ 3,481,475 Grand Island Study Session - 12/1/2015 Page 34 / 47 Locations for Alternate •Fire Station #1 •National Guard Armory •City Hall Grand Island Study Session - 12/1/2015 Page 35 / 47 National Guard Armory Grand Island Study Session - 12/1/2015 Page 36 / 47 National Guard Armory Grand Island Study Session - 12/1/2015 Page 37 / 47 Cost of Armory Alternate 911 Category Estimated Cost Development costs (site purchase, etc.)Depends on Location Sitework $ 0 Renovation $ 280,900 Project Expenses (Equipment, A/E Fees) ($600,000 is Equipment) $ 627,500 Contingency $ 40,000 Total (does not include land acquisition & remediation) $ 948,400 Grand Island Study Session - 12/1/2015 Page 38 / 47 Alternate at Station #1 Grand Island Study Session - 12/1/2015 Page 39 / 47 Cost of Station #1 Alternate 911 Category Estimated Cost Development costs (site purchase, etc.)Depends on Location Sitework $ 47,000 Construction $ 416,500 Project Expenses (Equipment, A/E Fees) ($600,000 is Equipment) $ 647,000 Contingency $ 60,000 Total $ 1,170,500 Grand Island Study Session - 12/1/2015 Page 40 / 47 Land Acquisition Location Estimated Price West Faidley $ 300,000 - $ 450,000 13th Street $ 250,000 Industrial Park $ 30,000 National Guard Armory Unknown Station #1 $ 0 Grand Island Study Session - 12/1/2015 Page 41 / 47 Construction Comparisons Building Year Square Footage Cost Cost Per SF Law Enforcement Center 2008 43,931 $ 7.4 Million $ 168 Hall County Jail 2008 88,396 $ 14.3 Million $ 162 Fire Station #1 2008 13,092 $ 2.4 Million $ 183 New 911/EOC 11,400 $ 2.5 Million $ 219 New Alternate 911/EOC 1,477 $ 523,500 $ 354 Grand Island Study Session - 12/1/2015 Page 42 / 47 Increased Operating Costs •Existing Expenses –Telephone Lines –Maintenance Contracts –Repair/Maintenance Equipment, Machine •New Expenses –Utilities (Electrical & Natural Gas) –Sanitation –Janitorial/Exterior maintenance Grand Island Study Session - 12/1/2015 Page 43 / 47 Estimated Increase Category Current New Increase Maint Contracts $ 52,000 $ 83,000 $ 31,000 Phones $ 45,000 $ 55,000 $ 10,000 Repair (Machine)$ 25,000 $ 35,000 $ 10,000 New Building Expenses •Utilities $ 25,000 $ 25,000 •Repair (Building)$ 5,000 $ 5,000 •Sanitation $ 1,000 $ 1,000 •Cleaning supplies $ 2,000 $ 2,000 Total Estimate $ 84,000 Grand Island Study Session - 12/1/2015 Page 44 / 47 E911 Special Revenue Fund E911 Fund 2009 2010 2011 2012 2013 2014 Revenues 283,508 214,090 297,929 251,523 220,961 215,734 Expenses 186,562 123,404 165,151 366,359*183,505 189,790 Average Revenue: $ 247,291 Average Expenses: $ 169,682 Fund Balance Year End FY 2015: $ 717,754 * 2012 included $190,000 for a new 911 phone system Grand Island Study Session - 12/1/2015 Page 45 / 47 Summary Option Location Cost Estimate Ongoing Cons Full Center West Faidley $ 3.8 Million $ 84,000 Land Cost Full Center Industrial Park $ 3.5 Million $ 84,000 Distance from City Center Full Center Station #1 $ 3.5 Million $ 84,000 9000 ft to Utilities & Data Alternate Station #1 $ 1.5 Million $ 66,000 9000 ft to Utilities & Data Needs bigger redesign Alternate Armory $ 1 Million $ 66,000 Renovation costs, size too small Grand Island Study Session - 12/1/2015 Page 46 / 47 The Plan •Obtain from Council directions toward Alternate or Full Scale •Obtain from Council directions on location. •Begin RFP process to receive plans necessary for construction (Winter 2016) •Approve plans and proceed to land acquisition (if necessary) and construction (FY 2016-2017) Grand Island Study Session - 12/1/2015 Page 47 / 47