The URL can be used to link to this page

08-07-2018 City Council Study Session Packet City of Grand Island Tuesday, August 7, 2018 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 6:00 PM Council Chambers - City Hall 100 East 1st Street, Grand Island, NE 68801 Grand Island Study Session - 8/7/2018 Page 1 / 116 City of Grand Island Tuesday, August 7, 2018 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 - 8/7/2018 Page 2 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -1 Presentation of Utilities Budget for FY 2018-2019 and Cost of Service Study Staff Contact: Tim Luchsinger, Utilities Director Grand Island Study Session - 8/7/2018 Page 3 / 116 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:August 7, 2018 Subject: Electric and Water Budgets for 2018 - 2019 Presenter(s):Timothy Luchsinger, Utilities Director Background The proposed budgets for Electric Utility Enterprise Fund 520 and Water Utility Enterprise Fund 525 have been developed for the City’s Fiscal Year 2018-19 by Department management and financial staff. Discussion These budgets will be presented for preliminary discussion by Council. Conclusion This item is presented to the City Council in a Study Session to allow for any questions to be answered and to create a greater understanding of the issue at hand. It is the intent of City Administration to bring this issue to a future council meeting for the Council to take action on the item. Grand Island Study Session - 8/7/2018 Page 4 / 116 2016-2017 2017-2018 2017-2018 2018-2019 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ENTERPRISE DEPARTMENT 520 - ELECTRIC UTILITY ACCRUED EXPENSES METER READING EXPENSE 90200 274,154 280,000 290,000 300,000 RECORDS & COLLECTION 90300 696,263 800,000 725,000 750,000 RECORDS & COLLECTION-MIS 90301 428,368 442,500 420,000 575,000 CASH OVER & SHORT 90310 - - - - UNCOLLECTABLE ACCOUNTS 90400 99,815 95,000 75,000 85,000 ADMINISTRATIVE SALARIES 92000 483,426 450,000 520,000 540,000 OFFICE SUPPLIES & EXPENSE 92100 31,693 32,500 32,000 35,000 OUTSIDE SERVICES EMPLOYED 92300 1,229,286 1,250,000 1,335,000 1,375,000 INSURANCE 92400 355,581 450,000 361,000 370,000 INJURIES & DAMAGES 92500 97,303 150,000 127,000 135,000 EMPLOYEE BENEFITS 92600 1,262,516 1,560,000 1,410,000 1,600,000 MISCELLANEOUS GENERAL 93000 102,489 150,000 127,500 135,000 UTILITY OFFICE RENT 93101 7,370 7,370 7,370 7,370 MAINTENANCE OF GENERAL PROPERTY 93200 - 5,000 2,000 5,000 GENERAL ADMINISTRATIVE SERVICE EXPENSE 5,068,263 5,672,370 5,431,870 5,912,370 DEPRECIATION-PLANT 40310 7,222,764 7,375,000 7,365,000 7,380,000 DEPRECIATION-TRANSMISSION 40340 802,348 815,000 825,000 835,000 DEPRECIATION-DISTRIBUTION 40350 3,533,490 3,582,000 3,620,000 3,650,000 DEPRECIATION-GENERAL 40360 1,044,858 995,000 1,115,000 1,125,000 MERCHANDISE MATERIAL 41510 83,874 150,000 150,000 250,000 MERCHANDISE LABOR 41520 84,059 100,000 200,000 150,000 NON-UTILITY PROPERTY 41710 163 200 175 200 LOSS ON DISPOSITION OF PROPERTY 42120 187,481 25,000 150,000 150,000 INTEREST 2012 LONG TERM DEBT 42775 349,284 321,317 321,317 280,334 INTEREST 2013 LONG TERM DEBT 42785 1,473,375 1,433,050 1,433,050 1,394,800 AMORTIZATION OF DEBT EXPENSE 42800 - - - - DEPOSIT INTEREST EXPENSE 43100 1,482 2,500 2,250 1,500 OPER SUPERVISION & ENG - BURDICK STEAM 50010 187,308 - 130,000 - OPER SUPERVISION & ENG - PGS 50020 412,202 465,000 440,000 465,000 GENERATION FUEL - BURDICK STEAM 50110 53,701 - 1,000 - GENERATION FUEL - PGS 50120 7,191,376 9,100,000 7,500,000 10,000,000 STATION LABOR & MATERIAL - BURDICK STEAM 50210 277,555 - 40,000 - STATION LABOR & MATERIAL - PGS 50220 1,434,004 1,650,000 1,450,000 1,550,000 GENERATION PRODUCTION - BURDICK STEAM 50510 276,952 - 50,000 - GENERATION PRODUCTION - PGS 50520 1,170,676 1,200,000 1,200,000 1,250,000 GENERATION PRODUCTION - PGS LIME 50521 394,554 500,000 310,000 420,000 GENERATION PRODUCTION - PGS PAC 50522 140,228 225,000 122,000 150,000 OPERATION SUPPLIES - BURDICK STEAM 50610 134,223 - 75,000 - OPERATION SUPPLIES - PGS 50620 397,754 435,000 411,000 425,000 MAINT SUPER & ENG - BURDICK STEAM 51010 64,024 75,000 40,000 - MAINT SUPER & ENG - PGS 51020 205,150 237,500 218,000 225,000 MAINT OF STRUCTURES - BURDICK STEAM 51110 25,249 17,500 20,000 - MAINT OF STRUCTURES - PGS 51120 984,787 1,050,000 925,000 1,050,000 MAINT OF BOILER PLANT - BURDICK STEAM 51210 247,919 - 50,000 - MAINT OF BOILER PLANT - PGS 51220 4,258,582 3,750,000 3,525,000 3,750,000 MAINT OF GENERATION EQUIP - BURDICK STEAM 51310 14,773 110,000 6,500 - MAINT OF GENERATION EQUIP - PGS 51320 678,040 375,000 700,000 725,000 OPER SUPERVISION & ENG - BURDICK CT'S 54630 108,409 310,000 200,000 460,000 GENERATION FUEL - BURDICK CT'S 54730 317,009 103,000 336,000 235,000 GENERATION PRODUCTION - BURDICK CT'S 54830 397,654 525,000 630,000 930,000 OPERATION SUPPLIES - BURDICK CT'S 54930 53,899 60,000 119,000 205,000 MAINT SUPER & ENG - BURDICK CT'S 55130 - 750 24,000 75,000 MAINT OF STRUCTURES - BURDICK CT'S 55230 1,378 5,000 130,000 232,500 MAINT OF GENERATION EQUIP - BURDICK CT'S 55330 402,956 400,000 1,156,500 440,000 PURCHASED POWER-NPPD 55500 - - - - PURCHASED POWER-WAPA 55510 977,766 1,250,000 950,000 1,000,000 PURCHASED POWER-OPPD 55520 8,750,960 9,800,000 8,840,000 8,750,000 Grand Island Study Session - 8/7/2018 Page 5 / 116 2016-2017 2017-2018 2017-2018 2018-2019 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET PURCHASED POWER-PPGA 55530 4,447,266 4,800,000 4,450,000 4,500,000 PURCHASED POWER-WIND 55540 678,585 700,000 885,000 700,000 PURCHASED POWER-WIND / INVENERGY 55541 3,802,080 4,300,000 3,775,000 4,000,000 PURCHASED POWER-MEAN 55550 - - - - PURCHASED POWER-TENASKA 55560 16,134,144 17,500,000 16,600,000 16,500,000 PURCHASED POWER-SOLAR 55570 - 2,500 - 150,000 OPER SUPERVISION & ENG-TRANS 56000 575,721 1,520,000 800,000 900,000 LOAD DISPATCHING-TRANS 56100 4,809,408 4,500,000 400,000 450,000 PURCHASED POWER - TRANSMISSION 56110 - - 4,500,000 4,750,000 MAINT OF SUBSTATION-TRANS 57000 16,144 35,000 18,000 22,000 MARKET EXPENSE- TRANS 57500 192,674 210,000 200,000 215,000 OPER SUPERVISION & ENGINEERING-DIST 58000 110,435 125,000 187,000 345,000 LOAD DISPATCHING-DIST 58100 621,806 700,000 620,000 700,000 OPER OF SUBSTATION-DIST 58200 747 1,000 500 750 OVERHEAD LINE-DIST 58300 137,918 205,000 186,000 205,000 METER OPERATING-DIST 58600 489,754 255,000 150,000 175,000 MAINT OF SERV ON CUST PROP-DIST 58700 249,846 240,000 253,000 270,000 OFFICE SUPPLIES-DIST 58800 1,224,658 1,450,000 1,206,000 1,280,000 MAINT OF STATION EQUIP-DIST 59200 806,223 835,000 955,000 975,000 MAINT OF LINES-DIST 59300 782,094 900,000 792,000 825,000 MAINT OF UNDERGROUND LINES-DIST 59400 681,921 660,000 767,000 780,000 MAINT OF TRANSFORMER-DIST 59500 82,126 87,500 60,000 75,000 MAINT OF METERS-DIST 59700 - - - - MAINT OF MISC PLANT-DIST 59800 313,040 335,000 365,000 385,000 TOTAL OPERATING EXPENSE 80,498,857 85,803,817 81,950,292 85,757,084 ACCRUED ADMIN & OPERATING EXPENSES 85,567,120 91,476,187 87,382,162 91,669,454 TOTAL CAPITAL EXPENSES 10,371,716 9,990,000 9,180,000 11,745,000 ACCRUED & CAPITAL EXPENSE 95,938,836 101,466,187 96,562,162 103,414,454 OTHER USES OF FUNDS - IN LIEU OF TAX 40800 639,461 700,000 650,000 650,000 LESS DEPRECIATION (12,603,461) (12,767,000) (12,925,000) (12,990,000) FINAL ACCRUED EXPENSE 83,974,837 89,399,187 84,287,162 91,074,454 ACCRUAL RECONCILIATION 42,685 - - - TOTAL APPROPRIATION 84,017,522 89,399,187 84,287,162 91,074,454 Baseload Fuel (Coal) 11% Peaking Fuel & Power Purchases 35% Capital - Administration 3% Capital - Generation 4% Capital - Trans/Dist 6% Operating Expenses, Taxes, & Fees 41% Electric Department Appropriation Grand Island Study Session - 8/7/2018 Page 6 / 116 2016-2017 2017-2018 2017-2018 2018-2019 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ACCRUAL REVENUE MERCHANDISE SALES 41500 503,843 350,000 500,000 500,000 REVENUE NON-UTILITY PROPERTY 41700 - - - - INTEREST & DIVIDEND 41900 341,352 350,000 390,000 400,000 MISC NON-OPERATING 42100 15,320 15,000 12,500 12,500 GAIN ON DISPOSITION OF PROP 42110 100,905 15,000 50,000 25,000 AMORTIZATION OF DEBT PREMIUM 42900 436,163 418,927 418,927 397,540 RESIDENTIAL SALES 44000 20,434,391 20,390,000 21,210,000 21,250,000 DUSK TO DAWN SALES 44020 133,724 133,000 138,000 140,000 COMMERCIAL & INDUSTRIAL SALES 44200 42,159,145 41,800,000 43,600,000 44,000,000 WHOLESALE ENERGY - NPPD 44700 213,904 189,000 205,000 250,000 WHOLESALE ENERGY - OPPD 44710 - - - - WHOLESALE ENERGY - MEAN 44720 - - - - WHOLESALE ENERGY - TENASKA 44730 17,553,967 19,500,000 16,000,000 17,750,000 WHOLESALE ENERGY - HASTINGS 44740 - - - - WHOLESALE ENERGY - NE CITY 44750 291,631 295,000 315,000 300,000 WHOLESALE ENERGY - NELIGH 44760 83,320 84,000 90,000 85,000 WHOLESALE ENERGY - SPP 44770 803,247 700,000 800,000 825,000 INTERDEPARTMENTAL SALES 44800 1,801,327 1,800,000 1,825,000 1,850,000 FORFEITED DISCOUNTS 45000 179,315 182,000 185,000 190,000 SERVICE SALES 45100 14,100 15,500 12,500 15,000 RENT FROM PROPERTY 45400 73,197 80,000 55,000 60,000 TOTAL ACCRUAL REVENUE 85,138,851 86,317,427 85,806,927 88,050,040 ACCRUAL RECONCILIATION (436,163) (418,927) (418,927) (397,540) TOTAL REVENUE 84,702,688 85,898,500 85,388,000 87,652,500 BOND & LOAN PROCEEDS - - - - TOTAL REVENUE & BOND PROCEEDS 84,702,688 85,898,500 85,388,000 87,652,500 OPERATING EXCESS (DEFICIT)11,056,882 6,489,313 10,280,838 8,323,046 CAPITAL EXPENDITURES (10,371,716) (9,990,000) (9,180,000) (11,745,000) BEGINNING FUND BALANCE 48,235,634 48,920,800 48,920,800 50,021,638 ENDING UNRESTRICTED BALANCE 41,006,766 37,805,421 42,351,465 38,896,498 ENDING RESTRICTED BALANCE 7,914,034 7,614,692 7,670,173 7,703,186 Grand Island Study Session - 8/7/2018 Page 7 / 116 2016-2017 2017-2018 2017-2018 2018-2019 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ENTERPRISE DEPARTMENT 525 - WATER OPERATIONS ACCRUED EXPENSES METER READING 78100 101,844 105,000 105,000 110,000 CUSTOMER BILLING & ACCOUNTING 78200 284,540 330,000 290,000 330,000 DATA PROCESSING 78250 214,831 225,000 155,000 175,000 UNCOLLECTABLE ACCOUNTS 78400 6,694 5,000 6,500 7,000 ADMINISTRATIVE SALARY EXPENSE 79000 47,465 40,000 50,000 55,000 OFFICE SUPPLIES 79300 7,000 7,750 6,000 7,000 SPECIAL SERVICES 79500 130,297 115,000 133,000 140,000 INSURANCE 79800 10,997 15,000 12,000 15,000 INJURIES & DAMAGES 79900 2,480 15,000 2,500 5,000 EMPLOYEE BENEFITS 80010 167,430 200,000 170,000 200,000 PENSIONS 80020 21,545 29,000 22,500 25,000 MISCELLANEOUS 80100 23,263 25,000 25,000 27,500 MAINT OF GENERAL PROPERTY 80200 92,106 100,000 102,000 105,000 UTILITY OFFICE RENT 80300 3,630 3,630 3,630 3,630 BACKFLOW PROTECTION PROGRAM 81000 128,472 135,000 135,000 145,000 GENERAL ADMINISTRATIVE SERVICE EXPENSE 1,242,596 1,350,380 1,218,130 1,350,130 DEPRECIATION-SUPPLY 50310 69,598 80,000 71,000 80,000 DEPRECIATION-PUMPING EQUIP 50320 20,220 25,000 22,500 25,000 DEPRECIATION-TREATMENT PLANT 50330 151,452 165,000 154,000 165,000 DEPRECIATION-DISTRIBUTION 50340 658,430 680,000 680,000 745,000 DEPRECIATION-GENERAL 50350 182,510 190,000 188,000 200,000 INTEREST EXPENSE - 2012 BONDS 53000 46,436 - - - INTEREST EXPENSE - 2017 BONDS 53010 91,348 201,360 201,610 195,405 DEBT EXPENSE ON BONDS 53100 140,433 - - - MERCHANDISE-MATERIAL 61610 112,562 100,000 165,000 110,000 MERCHANDISE-LABOR 61620 84,877 70,000 70,000 80,000 OPERATION SUPPLIES 70300 22,429 17,500 20,000 25,000 MAINT OF WELLS & STRUCTURES 70500 43,811 47,750 42,250 60,000 OPERATION LABOR 72200 215,338 230,000 260,000 230,000 POWER FOR PUMPING 72300 518,966 535,000 525,000 590,000 MAINT OF PUMPING EQUIP 72700 299,658 215,000 310,000 230,000 PURIFICATION SUPPLIES 74300 938,242 975,000 950,000 1,000,000 MAINT OF PURIFICATION EQUIP 74600 13,902 35,000 18,000 30,000 OPERATION SUPERVISION & ENG 75100 197,977 225,000 225,000 260,000 OFFICE EXPENSE-DIST 75200 131,640 116,000 101,000 60,000 OPERATION OF MAINS 75300 235,266 250,000 265,000 275,000 OPERATION OF METERS 75400 117,148 120,000 122,000 130,000 MAINT OF DIST MAINS 75800 137,409 130,000 160,000 225,000 MAINT OF FIRE HYDRANTS 75900 169,701 160,000 180,000 180,000 OPERATIONS TOTAL 4,599,351 4,567,610 4,730,360 4,895,405 ACCRUED ADMIN & OPERATING EXPENSES 5,841,947 5,917,990 5,948,490 6,245,535 TOTAL CAPITAL EXPENSES 2,842,400 6,055,000 5,690,000 2,325,000 ADJUSTED ACCRUED EXPENSES 8,684,347 11,972,990 11,638,490 8,570,535 OTHER USES OF FUNDS - IN LIEU OF TAX 53300 83,520 65,000 70,000 70,000 LESS DEPRECIATION (1,082,210) (1,140,000) (1,115,500) (1,215,000) FINAL ACCRUED EXPENSE 7,685,658 10,897,990 10,592,990 7,425,535 ACCRUAL RECONCILIATION 2,400,971 - - - TOTAL APPROPRIATION 10,086,629 10,897,990 10,592,990 7,425,535 Grand Island Study Session - 8/7/2018 Page 8 / 116 2016-2017 2017-2018 2017-2018 2018-2019 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ACCRUAL REVENUE WATER TAP FEES 52000 56,500 - 1,000 - WATER MAIN CONTRIBUTIONS 52010 1,443,108 - 500,000 - RENT FROM PROPERTY 52200 - - - - INTEREST & DIVIDEND 52400 8,107 12,500 10,000 10,000 MISC NON-OPERATING 52600 127,427 128,000 125,000 125,000 GAIN ON DISPOSITION-PROP 52610 10,668 - - - METERED SALES 60100 6,207,643 6,000,000 6,250,000 6,275,000 PRIVATE FIRE PROTECTION 60400 75,990 52,000 75,000 75,000 INTERDEPARTMENTAL SALES 60800 176,619 170,000 175,000 175,000 SALE OF WATER SERVICES 61400 108 200 75 50 MERCHANDISE SALES 61600 245,853 200,000 265,000 225,000 TOTAL ACCRUAL REVENUE 8,352,023 6,562,700 7,401,075 6,885,050 ACCRUAL RECONCILIATION (1,443,108) - (500,000) - TOTAL REVENUE 6,908,915 6,562,700 6,901,075 6,885,050 BOND PROCEEDS 7,435,000 TOTAL REVENUE & BOND PROCEEDS 14,343,915 6,562,700 6,901,075 6,885,050 OPERATING EXCESS (DEFICIT)(335,314) 1,719,710 1,998,085 1,784,515 CAPITAL EXPENDITURES (2,842,400) (6,055,000) (5,690,000) (2,325,000) BEGINNING FUND BALANCE 5,768,510 10,025,797 10,025,797 6,333,882 ENDING UNRESTRICTED BALANCE 6,065,768 5,277,181 5,917,306 5,374,404 ENDING RESTRICTED BALANCE 3,960,029 413,326 416,576 418,993 Capital - Administration 4% Capital - Production 4% Capital - Distribution 23% Power for Pumping Water 8% Operating Expenses, Taxes, & Fees 61% Water Department Appropriation Grand Island Study Session - 8/7/2018 Page 9 / 116 CAPITAL IMPROVEMENTS BUDGET – June 1, 2018 ELECTRIC DEPARTMENT FISCAL YEAR 2018-19 Page 1 of 2 ADMINISTRATION 1. Administrative Capital Additions: $0 2. 2012 Revenue Bond Payment: $1,660,000 Anticipated debt service on Series 2012 Bonds. 3. 2013 Revenue Bond Payment: $1,450,000 Anticipated debt service on Series 2013 Bonds. TRANSMISSION 4. Transmission Line Improvements: $500,000 $500,000 – Fiber optic upgrades 5. Additional Substations: $0 6. Equipment & Vehicles: $25,000 Unit #1880, Replacement for a 2002 Chevy Malibu 7. PCC Improvements: $50,000 Phelps Control Center building improvements. 8. Substation Upgrades: $650,000 $400,000 – Substation B wall $250,000 – Transformer LTC maintenance DISTRIBUTION 9. Overhead Material: $2,000,000 $1,000,000 - This routine item includes pole-mounted transformers, conductors, poles, meters, streetlights, small tools, hardware and labor necessary for overhead electrical distribution. The budgeted amount is based on historical expenditures. $1,000,000 - for AMI Meters / LED Streetlights. 10. Underground Materials: $1,500,000 This is a routine item that includes the cable, pad-mounted transformers, conduit, small tools, hardware and labor necessary to supply underground electric service to new businesses and subdivisions. Cable nearing the end of its useful 30 year life is replaced from this line item. Most projects have a short lead-time, and the budgeted amount is based on the historic needs. Grand Island Study Session - 8/7/2018 Page 10 / 116 CAPITAL IMPROVEMENTS BUDGET – June 1, 2018 ELECTRIC DEPARTMENT FISCAL YEAR 2018-19 Page 2 of 2 11. Equipment & Vehicles: $515,000 $25,000 – Unit #1504. Replacement for a 1997 stump cutter $300,000 – Unit #1678. Replacement for a 2003 crane $155,000 – Unit #1605. Replacement for a 2003mini derrick $35,000 – Unit #1801. Replace Chevy Full Size pickup Ext Cab 4X4 for Engineering 12. Outside Contractors: $100,000 Contractors used for underground boring to install conduit for the Underground Department 13. Distribution Building Improvements: $100,000 14. Distribution Improvements: $10,000 Engineering computers and automated mapping. PRODUCTION 15. PGS Improvements: $950,000 $250,000 - Coal Mill Feeder Upgrade $200,000 - Turbine Overhaul Parts $200,000 - Rail Road Track Repairs $300,000 - Continuous Mercury Monitor 16. PGS Air Quality Control: $0 17. Equipment & Vehicles: $35,000 Unit #1208 Technician Truck 18. Burdick Steam Units: $500,000 $200,000 - #6 Fuel Oil Tank/Line Cleaning $100,000 - Sewer Isolation $200,000 - Water Isolation 19. Burdick Gas Turbines: $1,700,000 $150,000 - Air Compressor System $800,000 - Control System $750,000 - Air and Battery Enclosure Grand Island Study Session - 8/7/2018 Page 11 / 116 CAPITAL IMPROVEMENTS BUDGET – June 1, 2018 WATER DEPARTMENT FISCAL YEAR 2018-19 Page 1 of 1 ADMINISTRATION 1. Administrative Capital Additions: $0 2. 2017 Revenue Bond Payment: $300,000 Anticipated debt service on Series 2017 Bonds. DISTRIBUTION 3. Water Main Districts: $100,000 This item includes unplanned extensions of water mains into new subdivisions and developments. Compliance with Federal regulations, annexation, and aquifer contamination will continue to produce additional requests for water main extensions 4. Equipment & Vehicles: $150,000 Mini Excavator 5. Distribution Improvements: $1,475,000 $100,000 – Lincoln & Delta – Extension to the North $900,000 - Custer / State to Capital $100,000 – Ludlow Fire Hydrant Replacement $150,000 – 12th St & Broadwell Storm Sewer Conflict $75,000 - 20th & Wheeler $150,000 - Riverside & Hagge Ave Storm Sewer Conflict 6. Trunk Line Expansion: $0 PRODUCTION 7. Well Field Improvements: $200,000 Well Pump PLC Upgrade 8. Equipment & Vehicles: $0 9. Pumpstation Improvements: $100,000 Lining the inside of a transmission pipe at the Pine Street pumping station. Grand Island Study Session - 8/7/2018 Page 12 / 116 UTILITIES2018-19 BUDGET OVERVIEWElectric Department – Fund 520Water Department – Fund 525Grand IslandStudy Session - 8/7/2018Page 13 / 116 UTILITIESBudget GuidelinesConservative (low) revenue forecastWeather dependent Ensure debt service coverageConservative (high) operating costsGeneration fuel/purchased powerAllow potential production capacityMaintain adequate cash reservesManage controllable operating expenses and capital expendituresGrand IslandStudy Session - 8/7/2018Page 14 / 116 UTILITIESCash Reserve GuidelinesCash Reserve ConsiderationsWorking CapitalReplacement PowerAsset ReplacementCapital Improvement ReserveDebt Service ReserveElectric Fund - $36,655,000Water Fund - $4,123,000Grand IslandStudy Session - 8/7/2018Page 15 / 116 UTILITIESCapital Improvement BudgetsElectric and Water Master Plans recently completed5 and 20 Year System RequirementsTechnical EvaluationNo Financial EvaluationRecommendations included in 5 year capital improvement budget forecastsGrand IslandStudy Session - 8/7/2018Page 16 / 116 UTILITIESELECTRIC DEPARTMENTFUND 520Grand IslandStudy Session - 8/7/2018Page 17 / 116 UTILITIES$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000$100,000,0002017 2018 (Projected) 2019 (Budget)Electric Department - Fund 520Fuel, purchase power, debt serviceCapital ExpendituresAdmin and OperatingGrand IslandStudy Session - 8/7/2018Page 18 / 116 UTILITIESElectric Capital ImprovementsTotal Capital Budget - $11,475,000Transmission and Substation Upgrades - $1,150,000Bond payments - $3,110,000Distribution improvements - $4,225,000$1,000,000 Automated metering/LED lightingPower plant maintenance/improvements - $3,185,000$2,200,000 Burdick decommissioning/GT modificationsGrand IslandStudy Session - 8/7/2018Page 19 / 116 UTILITIESNoted ProposalsElectric Cost of Service StudyBurdick Steam Unit Retirement and Staff ReorganizationGrand IslandStudy Session - 8/7/2018Page 20 / 116 UTILITIESWATER DEPARTMENTFUND 525Grand IslandStudy Session - 8/7/2018Page 21 / 116 UTILITIES$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,0002017 2018 (Projected) 2019 (Budget)Water Department - Fund 525Capital ExpendituresUranium Removal Operation ExpenseAdmin and OperatingGrand IslandStudy Session - 8/7/2018Page 22 / 116 UTILITIESWater Capital ImprovementsTotal Capital Budget - $2,325,000Bond payments - $300,000Distribution improvements- $1,475,000Production improvements - $300,000Grand IslandStudy Session - 8/7/2018Page 23 / 116 UTILITIESQuestions?Grand IslandStudy Session - 8/7/2018Page 24 / 116 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:August 7, 2018 Subject: Electric Utility Cost of Service/Rate Design Study Update Presenter(s):Timothy Luchsinger, Utilities Director Background A Cost of Service/Rate Design Study for the electric utility has been completed. Discussion This study will be presented for preliminary discussion by Council. Conclusion This item is presented to the City Council in a Study Session to allow for any questions to be answered and to create a greater understanding of the issue at hand. It is the intent of City Administration to bring this issue to a future council meeting for the Council to take action on the item. Grand Island Study Session - 8/7/2018 Page 25 / 116 Energy Consulting LLC COST OF SERVICE / RATE DESIGN STUDY UPDATE CITY OF GRAND ISLAND UTILITIES DEPARTMENT CITY COUNCIL REVIEW DRAFT JULY 26, 2018 JK Energy Consulting, LLC 650 J Street, Suite 108 Lincoln, NE 68508 Phone: (402) 440-0227 www.jkenergyconsulting.com Email: jk@jkenergyconsulting.com © Copyright 2018 – All Rights Reserved JK Grand Island Study Session - 8/7/2018 Page 26 / 116 CITY COUNCIL REVIEW DRAFT Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC TABLE OF CONTENTS Executive Summary ........................................................................................................ 2 Purpose and Approach .................................................................................................... 4 Background ..................................................................................................................... 5 Projected Financial Results ............................................................................................. 5 Cost of Service .............................................................................................................. 14 Rate Design .................................................................................................................. 21 Conclusions ................................................................................................................... 27 Recommendations ........................................................................................................ 27 Appendix A - Rate Ordinance Grand Island Study Session - 8/7/2018 Page 27 / 116 CITY COUNCIL REVIEW DRAFT 2 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC EXECUTIVE SUMMARY This study was prepared by JK Energy Consulting, LLC for the City of Grand Island Utilities Department (GIUD or Utility). The purpose of the study was to review the electric rates for the Utility and ensure that electric rates are adequate to pay for projected expenses. Based on the analysis completed, it appears the existing rates are projected to collect sufficient revenue in fiscal year (FY) 2018 (Table 6, Line 22). Projected retail revenue for FY 2018 was approximately $64.9 million while projected revenue requirements (operating expenses, debt service and capital improvements less non-retail revenues) were approximately $64.9 million. This indicates no rate increase would be necessary in FY 2018 to ensure sufficient revenue to cover projected expenses and provide adequate return on rate base. Of the projected revenue requirements, approximately $54.5 million (Table 4, Line 22) was for local generation and purchased power, including transmission service to deliver these purchases. This represents approximately 84% of project revenue requirements. The analysis completed indicated that a rate increase would not be necessary in FY 2018. A series of 1.0% rate increases may be necessary in FY 2020 through 2022 to ensure positive cash flow through the end of the study period. An assessment of the Utility’s cash reserve policy was completed. It was recommended to add an additional amount to the cash reserve calculation to cover unexpected costs related to a “Catastrophic Event.” This was added to cover the costs related to damage from an event, such as a tornado or ice storm, that causes damage to a significant portion of the overhead distribution system. The proposed amount for this line item would be approximately $4.6 million, increasing the total cash reserve requirement to $36.7 million (Table 3). The proposed cash reserve amount represents approximately 200 days of liquidity, which is based on how many days of operating expenses current cash and unrestricted investments would be able to cover. Based on the Moody’s rating methodology for municipal utilities, current cash reserves are consistent with an Aa rating, which is one notch above the Utility’s current rate of A1 (stable). The cost of service analysis was completed to assess the amount that each rate class should be paying compared to the revenue that is being collected from existing rates (Table 6). The analysis also indicated how much revenue is collected in each season compared to the cost of service in the respective season (Table 7). In general, it appeared that future rate changes should be implemented by increasing Residential and Single Phase Commercial rates more than the rates for other rate classes. Summer season rates tend to be less than the cost of service while winter season rates are higher than the indicated cost of service. Customer charges are generally lower than the indicated cost of service and should be increased for all rate classes (Table 5). Grand Island Study Session - 8/7/2018 Page 28 / 116 CITY COUNCIL REVIEW DRAFT 3 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC The purpose of rate design is to develop rates that reflect the cost of service and accomplish other goals established by the Utility. Customer charges would be increased for Residential and Commercial customers. Rates would be simplified by reducing the number of blocks for Residential and Commercial customers. For demand-billed customers, demand rates were increased somewhat to more accurately reflect the cost of service. With the proposed rate changes, the change in the typical monthly bill for a Residential customer would be negligible. The proposed rate changes were consistent with the cost of service analysis. Two other rate design changes were proposed. The first would increase the Fuel Cost Adjustment base from 1.5¢/kWh to 3.8¢/kWh. This change would be accompanied by an increase in the energy cost for each block by a like amount. This proposed change would not have any effect on total revenue but would decrease the amount billed through the Fuel Cost Adjustment. The second change would be to modify the billing structure for Street Lighting and Area Lighting. The current rate structure is based on the wattage of the light fixture. In recent years, the rated wattage for new fixtures, such as LED lights, has decreased while the capital cost is higher than that of high pressure sodium fixtures that provide similar lighting patterns. This results in under-recovery using a wattage-based rate. It was recommended to modify the Street Lighting and Area Lighting rate to be based on the capital cost of the fixture, estimated O&M, and projected energy cost. The Street Lighting rate includes recovery of incremental energy costs, while the Area Lighting rate includes full recovery of demand-related costs. The proposed rates are comparable to the rates of the City’s peer group. Rates were compared to Nebraska Public Power District (NPPD), Lincoln Electric System (LES), Omaha Public Power District (OPPD), and the City of Hastings, which is a similarly-sized municipal utility located in central Nebraska. Hastings has comparable rates for similar Residential services. NPPD and OPPD tend to have higher rates. Most neighboring utilities are experiencing power supply and operating cost increases, which will help keep the Utility’s rates competitive. Conclusions The following conclusions were reached, based on the information provided and analyses completed: 1. The projected revenue requirement for FY 2018 was $64.9 million. 2. Projected revenues from existing rates are approximately $64.9 million. 3. The existing cash reserve policy does not include a category related to the cost of a catastrophic event, such as an ice storm or tornado, that causes significant damage to the distribution system. 4. The potential cost of a catastrophic event, consisting of destruction of 10% of the distribution system and loss of 20% of revenue for 15 days, is approximately $4.6 million. Grand Island Study Session - 8/7/2018 Page 29 / 116 CITY COUNCIL REVIEW DRAFT 4 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 5. Customer charges for Residential and Commercial customers are less than the calculated cost of service. 6. The existing rate structure for Residential and Commercial customers is relatively complicated, with three to six energy usage blocks and a declining block rate structure. In recent years, utilities have tended to reduce rate blocks and decrease use of declining block rate structures. 7. For demand-billed customers, the existing demand rate is somewhat less than the cost of service. 8. The existing billing methodology for Street Lighting and Area Lights does not properly recover the cost of newer high-efficiency fixtures, such as LED street lighting. 9. With the proposed rate changes in October 2018, the Utility’s rates would be comparable to the City’s peer group. Recommendations The following recommendations were developed based on the analyses completed and conclusions reached: 1. The Utility should adopt the rate ordinance included in Appendix A. 2. The Utility should consider 1.0% annual rate increases in FY 2020 through FY 2022 to ensure adequate revenues to cover projected operating expenses, debt service and capital improvements. 3. The cash reserve policy should be amended to include a reserve for a Catastrophic Event. The amount that should be included initially is approximately $4.6 million. 4. Customer charges should be increased for Residential and Commercial customers to reflect the cost of service. 5. Residential and Commercial rates should be simplified by reducing the number of rate blocks. The proposed rate structure would result in no more than three energy blocks for any rate class. 6. Demand rates should be increased for demand-billed customers. 7. The billing structure for Street Lighting and Area Lighting should be changed from a wattage-based structure to a fixture-based rate that considers capital cost, ongoing maintenance and energy cost. 8. The Utility should review its rates on a regular basis, particularly as fuel costs, off-system sales revenues and capital improvement expenses change in the future. PURPOSE AND APPROACH The purpose of this study was to review the electrical rates charged by the Utility and develop rates that were consistent with a number of goals. These goals included having rates that were competitive, providing sufficient revenues to cover projected operating expenses, and having rates that reflected the cost of service for each rate class. Grand Island Study Session - 8/7/2018 Page 30 / 116 CITY COUNCIL REVIEW DRAFT 5 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC The approach to the study involved completing several tasks. Retail sales, purchased power, operating expenses, capital project, and financial information was updated. Test year expenses for FY 2018 were projected and future revenues and expenses were projected through FY 2022. A rate plan was developed to meet the financial goals established by the Utility. The allocated cost of service for each rate class was calculated and compared to revenue from existing rates. Rates for each rate class were developed based on the cost of service and other goals established by the Utility. A rate ordinance for FY 2019 was developed, establishing new rates that would not increase overall rates, but would include adjustments based on the cost of service results. A written report was prepared and presented to the GIUD staff for review. BACKGROUND Grand Island Utilities Department – Electric Utility The Grand Island Utilities Department operates its electric utility, which serves customers located within the City and in some areas adjacent to the City. The Utility serves approximately 21,000 Residential customers, 5,600 Commercial customers, and 110 Large Power service customers, along with street lighting, private security lighting, and City-owned accounts. Power Supply The Utility owns and operates two power stations for a combined 181 MW of accredited generation, including 100 MW of coal-fired generation and 81 MW of combustion turbine capacity. GIUD also participates in several jointly utilized facilities, including Nebraska City Unit 2, Whelan Energy Center Unit 2 and various wind projects. Approximately 9 MW of capacity and energy is purchased from the Western Area Power Administration (Western) under long-term agreements. PROJECTED FINANCIAL RESULTS The purpose of preparing projected financial results is to compare projected revenues with projected expenses, and to determine the need for future rate increases. Projections were prepared for the period FY 2018 through FY 2022 based on information provided by the Utility. Grand Island Study Session - 8/7/2018 Page 31 / 116 CITY COUNCIL REVIEW DRAFT 6 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Parameters The following parameters were used to develop the projected financial results: 1. Historical and projected results were prepared based on the Utility’s fiscal year (October 1 through September 30). 2. The FY 2018 budget was used as the basis for the test year budget, with adjustments to ensure projected expenses were consistent with actual historical expenditures. 3. Western rates were projected to remain stable in FY 2019 through FY 2022. 4. Expenses associated with Tenaska purchases, Southwest Power Pool (SPP) transmission costs, and other purchased power expenses were projected to increase 3.0% annually. 5. O&M expenses, administrative costs, and other internal expenses were projected to increase at a rate of 3.0% annually. 6. Projected financial results were presented on a “cash basis” and an “accrual basis.” Cash basis accounting includes capital improvements and debt service principal as expenses but does not include depreciation expense. Rate of return on a “utility basis” was calculated for information purposes but was not a determining factor in calculating the necessary rate change. 7. Debt service costs were based on existing repayment schedules for the 2012 Series and 2013 Series bonds, and no additional debt would be issued during the study period. Projected Financial Results Tables 1a (see page 7) and 1b (see page 8) show the projected financial results for FY 2018 through FY 2022, on an accrual basis and cash basis, respectively, along with historical financial results for FY 2015 through FY 2017. The projected financial results do not include rate increases or use of available reserve funds. On an accrual basis, without a rate increase or use of reserve funds, the projected deficit would be approximately $781,000 in FY 2018, increasing to approximately $3.1 million by FY 2022 (Table 1a, Line 25). Existing rates would need to be increased by 4.8% between now and FY 2022 to cover the projected deficit (Table 1a, Line 26). On a cash basis, without a rate increase or use of reserve funds, the projected deficit would be approximately $16,000 in FY 2018, increasing to $1.3 million by FY 2022 (Table 1b, Line 24). Existing rates would need to be increased by approximately 2.0% between now and FY 2022 to cover the projected cash-basis deficit (Table 1b, Line 25). Grand Island Study Session - 8/7/2018 Page 32 / 116 CITY COUNCIL REVIEW DRAFT 7 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 1aGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Accrual BasisExisting RatesAcutalTest YearProjectedLineDescription20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 3Wholesale Revenue2,769,498 18,946,068 20,768,000 20,768,000 20,768,000 20,768,000 20,768,000 4Fuel Cost Adjustment- - 1,409,209 3,217,090 5,001,449 6,839,339 8,732,365 5Rate Changes- - - - - - 6Other Operating Revenue1,025,855 616,198 892,700 919,481 947,065 975,477 1,004,742 7Total Operating Revenue66,341,216$ 84,090,853$ 87,929,719$ 89,764,381$ 91,576,324$ 93,442,626$ 95,364,917$ 8Operating Expenses9Cost of Power36,386,482$ 54,439,616$ 57,746,250 59,478,638 61,262,997 63,100,887 64,993,913 10Operation & Maintenance of System5,194,186 5,500,569 5,668,875 5,838,941 6,014,109 6,194,533 6,380,369 11Customer Accounting / Collections1,498,808 1,498,600 1,536,625 1,582,724 1,630,205 1,679,112 1,729,485 12Administrative & General3,495,959 3,479,663 3,649,383 3,758,864 3,871,630 3,987,779 4,107,413 13Depreciation & Amortization11,385,645 12,603,461 12,767,000 13,150,010 13,544,510 13,950,846 14,369,371 14Total Operating Expenses57,961,080$ 77,521,909$ 81,368,133$ 83,809,177$ 86,323,452$ 88,913,156$ 91,580,551$ 15Operating Income8,380,136$ 6,568,944$ 6,561,586$ 5,955,204$ 5,252,872$ 4,529,470$ 3,784,367$ 16Non-Operating Expense/(Revenue)17Interest Income(405,413)$ (341,352)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ 18Loss/(Gain) on Sale of Assets222,647 86,576 (40,000) (40,000) (40,000) (40,000) (40,000) 19Allocated Debt on Power Purchases5,795,172 5,775,493 5,700,000 5,700,000 5,700,000 5,700,000 5,700,000 20Payments in Lieu of Taxes675,217 639,461 700,000 700,000 700,000 700,000 700,000 21Interest Expense1,880,397 1,822,659 1,751,867 1,693,450 1,583,550 1,454,550 1,320,750 22Bond Premium Amortization(451,059) (436,163) (418,927) (418,927) (418,927) (418,927) (418,927) 23Debt Service Interest - Proposed- - - - - - - 24Total Non-Operating - Accrual Basis7,716,961 7,546,674 7,342,940 7,284,523 7,174,623 7,045,623 6,911,823 25Net Income - Accrual Basis663,175$ (977,730)$ (781,354)$ (1,329,319)$ (1,921,751)$ (2,516,153)$ (3,127,456)$ 26Rate Change for Breakeven Accrual1.52%1.20%2.05%2.96%3.88%4.82%Grand Island Study Session - 8/7/2018 Page 33 / 116 CITY COUNCIL REVIEW DRAFT 8 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 1bGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Cash BasisExisting RatesAcutalTest YearProjectedLineDescription20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 3Wholesale Revenue2,769,498 18,946,068 20,768,000 20,768,000 20,768,000 20,768,000 20,768,000 4Fuel Cost Adjustment- - 1,409,209 3,141,597 4,925,956 6,763,846 8,656,872 5Rate Changes- - - - - - - 6Other Operating Revenue1,025,855 616,198 892,700 919,481 947,065 975,477 1,004,742 7Total Operating Revenue66,341,216$ 84,090,853$ 87,929,719$ 89,688,888$ 91,500,831$ 93,367,133$ 95,289,424$ 8Operating Expenses9Cost of Power42,181,654$ 60,215,109$ 63,446,250 65,178,638 66,962,997 68,800,887 70,693,913 10Operation & Maintenance of System5,194,186 5,500,569 5,668,875 5,838,941 6,014,109 6,194,533 6,380,369 11Customer Accounting / Collections1,498,808 1,498,600 1,536,625 1,582,724 1,630,205 1,679,112 1,729,485 12Administrative & General3,495,959 3,479,663 3,649,383 3,758,864 3,871,630 3,987,779 4,107,413 13Total Operating Expenses52,370,607$ 70,693,941$ 74,301,133$ 76,359,167$ 78,478,942$ 80,662,310$ 82,911,180$ 14Operating Income13,970,609$ 13,396,912$ 13,628,586$ 13,329,721$ 13,021,889$ 12,704,823$ 12,378,244$ 15Non-Operating Expense/(Revenue)16Interest Income(405,413)$ (341,352)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ 17Loss/(Gain) on Sale of Assets222,647 86,576 (40,000) (40,000) (40,000) (40,000) (40,000) 18Payments in Lieu of Taxes675,217 639,461 700,000 700,000 700,000 700,000 700,000 19Interest Expense1,880,397 1,822,659 1,751,867 1,693,450 1,583,550 1,454,550 1,320,750 20Debt Service Principal - Existing2,915,000 2,975,000 3,035,000 3,110,000 3,225,000 3,345,000 3,485,000 21Capital Improvements10,361,628 10,143,787 8,547,702 8,547,702 8,547,702 8,547,702 8,547,702 21Debt Service Interest - Proposed- - - - - - - 22Debt Service Principal - Proposed- - - - - - - 23Total Non-Operating - Cash Basis15,649,476 15,326,131 13,644,569 13,661,152 13,666,252 13,657,252 13,663,452 24Net Income - Cash Basis(1,678,867)$ (1,929,219)$ (15,983)$ (331,431)$ (644,363)$ (952,429)$ (1,285,208)$ 25Rate Change for Breakeven Cash Basis2.99%0.02%0.51%0.99%1.47%1.98%26Debt Service Coverage27Net Revenue13,478,158$ 13,012,227$ 13,318,586$ 13,019,721$ 12,711,889$ 12,394,823$ 12,068,244$ 28Debt Service4,795,397$ 4,797,659$ 4,786,867$ 4,803,450$ 4,808,550$ 4,799,550$ 4,805,750$ 29Calculated Debt Service Coverage2.81 2.71 2.78 2.71 2.64 2.58 2.51 Grand Island Study Session - 8/7/2018 Page 34 / 116 CITY COUNCIL REVIEW DRAFT 9 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Return on rate base is a measure of rate adequacy typically used by investor-owned utilities to demonstrate the rate of return the utility is collecting on its investments in facilities. For municipal utilities, an adequate return on rate base ensures that new customers are paying their fair share for previous investments made by the utility and its ratepayers. The target return on rate base is typically based on the weighted cost of equity and debt. For GIUD, the weighted cost of capital was 6.11%, based on 6.50% return on equity and 4.47% long-term interest cost. Without a rate increase, the return on rate base is below the targeted level of 6.11% (Table 1c, Line 9). Although a rate adjustment to increase the return on rate base to the targeted level is not proposed at this time, the Utility may want to consider this in the future. Future Rate Changes Tables 2a (see page 10) and 2b (see page 11) show projected financial results on an accrual and cash basis with the proposed rate design and no substantive rate change. Rate increases of 1.0% may be needed in 2020 through 2022 to fund increases in operating costs not covered by the fuel cost adjustment. These increases can be assessed in the future if cost increases materialize. The proposed rate design provides sufficient revenue to cover projected purchased power, O&M, debt service, and administrative and general costs while maintaining compliance with the Utility’s cash reserve policy and without issuing additional debt. Table 1c Grand Island Utilities Department 2018 Cost of Service Study Projected Financial Results - Return on Rate Base and Projected Cash on Hand Existing Rates Actual Test Year Projected Line 2017 2018 2019 2020 2021 1 Estimated Return on Rate Base 2 Revenue 84,090,853$ 87,929,719$ 89,764,381$ 91,576,324$ 93,442,626$ 3 Operating Expenses 77,521,909 81,368,133 83,809,177 86,323,452 88,913,156 4 Net Income (excluding Interest Expense)6,568,944$ 6,561,586$ 5,955,204$ 5,252,872$ 4,529,470$ 5 Rate Base 6 Net Plant in Service 148,019,548$ 148,019,548$ 148,019,548$ 148,019,548$ 148,019,548$ 7 Working Capital 8,836,743$ 9,287,642$ 9,544,896$ 9,809,868$ 10,082,789$ 8 Projected Rate Base 156,856,291$ 157,307,190$ 157,564,444$ 157,829,416$ 158,102,337$ 9 Return on Rate Base 4.19%4.17%3.78%3.33%2.86% 10 Target Return on Rate Base 6.11%6.11%6.11%6.11%6.11% 11 Rate Change to Achieve Target Return ($)3,014,838 3,049,745 3,671,845 4,390,367 5,130,444 12 (%)4.67%4.70%5.66%6.77%7.91% 13 Projected Cash on Hand 14 Starting Balance 41,235,711 41,219,728 40,888,297 40,243,934 15 Increase / Decrease (15,983) (331,431) (644,363) (952,429) 16 Ending Balance 41,219,728 40,888,297 40,243,934 39,291,505 17 Cash Operating Expenses 74,301,133 76,359,167 78,478,942 80,662,310 18 Days of Operating Expenses 202 195 187 178 Description Grand Island Study Session - 8/7/2018 Page 35 / 116 CITY COUNCIL REVIEW DRAFT 10 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 2aGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Accrual BasisProjected RatesActualTest YearProjectedLine20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 3Wholesale Revenue2,769,498 18,946,068 20,768,000 20,768,000 20,768,000 20,768,000 20,768,000 4Fuel Cost Adjustment- - 1,409,209 3,217,090 5,001,449 6,839,339 8,732,365 5Rate Changes- - 11,756 11,756 660,471 1,315,674 1,315,674 6Other Operating Revenue1,025,855 616,198 892,700 919,481 947,065 975,477 1,004,742 7Total Operating Revenue66,341,216$ 84,090,853$ 87,941,475$ 89,776,137$ 92,236,796$ 94,758,300$ 96,680,591$ 8Proposed Rate Change0.0%0.0%1.0%1.0%1.0%9Operating Expenses10Cost of Power36,386,482$ 54,439,616$ 57,746,250$ 59,478,638$ 61,262,997$ 63,100,887$ 64,993,913$ 11Operations & Maintenance of System5,194,186 5,500,569 5,668,875 5,838,941 6,014,109 6,194,533 6,380,369 12Customer Accounting / Collections1,498,808 1,498,600 1,536,625 1,582,724 1,630,205 1,679,112 1,729,485 13Administrative & General3,495,959 3,479,663 3,649,383 3,758,864 3,871,630 3,987,779 4,107,413 14Depreciation & Amortization11,385,645 12,603,461 12,767,000 13,150,010 13,544,510 13,950,846 14,369,371 15Total Operating Expenses57,961,080$ 77,521,909$ 81,368,133$ 83,809,177$ 86,323,452$ 88,913,156$ 91,580,551$ 16Operating Income8,380,136$ 6,568,944$ 6,573,342$ 5,966,960$ 5,913,343$ 5,845,145$ 5,100,041$ 17Non-Operating Expense/(Revenue)18Interest Income(405,413)$ (341,352)$ (350,000) (350,000) (350,000) (350,000) (350,000) 19Loss/(Gain) on Sale of Assets222,647 86,576 (40,000) (40,000) (40,000) (40,000) (40,000) 20Allocated Debt on Power Purchases5,795,172 5,775,493 5,700,000 5,700,000 5,700,000 5,700,000 5,700,000 21Payments in Lieu of Taxes675,217 639,461 700,000 700,000 700,000 700,000 700,000 22Interest Expense1,880,397 1,822,659 1,751,867 1,693,450 1,583,550 1,454,550 1,320,750 23Bond Premium Amortizaton(451,059) (436,163) (419,003) (419,003) (423,193) (427,425) (427,425) 24Debt Service Interest - Proposed- - - - - - - 25Total Expenses - Accrual Basis7,716,961 7,546,674 7,342,940 7,284,523 7,174,623 7,045,623 6,911,823 26Net Income - Accrual Basis663,175$ (977,730)$ (769,598)$ (1,317,563)$ (1,261,280)$ (1,200,478)$ (1,811,782)$ 27Rate Change for Breakeven1.52%1.19%2.03%1.94%1.85%2.79%DescriptionGrand Island Study Session - 8/7/2018 Page 36 / 116 CITY COUNCIL REVIEW DRAFT 11 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 2bGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Cash BasisProjected RatesActualTest YearProjectedLine20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 64,859,810$ 3Wholesale Revenue2,769,498 18,946,068 20,768,000 20,768,000 20,768,000 20,768,000 20,768,000 4Fuel Cost Adjustment- - 1,409,209 3,217,090 5,001,449 6,839,339 8,732,365 5Rate Changes- - 11,756 11,756 660,471 1,315,674 1,315,674 6Other Operating Revenue1,025,855 616,198 892,700 919,481 947,065 975,477 1,004,742 7Total Operating Revenue66,341,216$ 84,090,853$ 87,941,475$ 89,776,137$ 92,236,796$ 94,758,300$ 96,680,591$ 8Proposed Rate Change0.0%0.0%1.0%1.0%1.0%9Operating Expenses10Cost of Power42,181,654$ 60,215,109$ 63,446,250$ 65,178,638$ 66,962,997$ 68,800,887$ 70,693,913$ 11Operations & Maintenance of System5,194,186 5,500,569 5,668,875 5,838,941 6,014,109 6,194,533 6,380,369 12Customer Accounting / Collections1,498,808 1,498,600 1,536,625 1,582,724 1,630,205 1,679,112 1,729,485 13Administrative & General3,495,959 3,479,663 3,649,383 3,758,864 3,871,630 3,987,779 4,107,413 14Total Operating Expenses52,370,607$ 70,693,941$ 74,301,133$ 76,359,167$ 78,478,942$ 80,662,310$ 82,911,180$ 15Operating Income13,970,609$ 13,396,912$ 13,640,342$ 13,416,970$ 13,757,854$ 14,095,990$ 13,769,412$ 16Non-Operating Expense/(Revenue)17Interest Income(405,413)$ (341,352)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ (350,000)$ 18Loss/(Gain) on Sale of Assets222,647 86,576 (40,000) (40,000) (40,000) (40,000) (40,000) 19Payments in Lieu of Taxes675,217 639,461 700,000 700,000 700,000 700,000 700,000 20Interest Expense1,880,397 1,822,659 1,751,867 1,693,450 1,583,550 1,454,550 1,320,750 21Debt Service Principal - Existing2,915,000 2,975,000 3,035,000 3,110,000 3,225,000 3,345,000 3,485,000 22Capital Improvements10,361,628 10,143,787 8,547,702 8,547,702 8,547,702 8,547,702 8,547,702 23Debt Service Interest - Proposed- - - - - - - 24Debt Service Principal - Proposed- - - - - - - 25Total Expenses - Cash Basis15,649,476 15,326,131 13,644,569 13,661,152 13,666,252 13,657,252 13,663,452 26Net Income - Cash Basis(1,678,867)$ (1,929,219)$ (4,227)$ (244,182)$ 91,602$ 438,738$ 105,960$ 27Rate Change for Breakeven Cash Basis2.99%0.01%0.38%-0.14%-0.68%-0.16%28Debt Service Coverage29Net Revenue13,478,158$ 13,012,227$ 13,330,342$ 13,106,970$ 13,447,854$ 13,785,990$ 13,459,412$ 30Debt Service4,795,397$ 4,797,659$ 4,786,867$ 4,803,450$ 4,808,550$ 4,799,550$ 4,805,750$ 31Calculated Debt Service Coverage2.812.712.782.732.802.872.80DescriptionGrand Island Study Session - 8/7/2018 Page 37 / 116 CITY COUNCIL REVIEW DRAFT 12 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC The Utility is required to maintain debt service coverage of at least 1.30 under the terms of its bond indenture. As shown in Table 2b (see page 11), debt service coverage is above 2.0 through 2022. The primary cause of the proposed rate change is the need to maintain positive cash flow to fund O&M expenses along with capital improvements necessary to maintain the existing system. Table 2c shows the projected return on rate base and cash on hand with the proposed rate design. The projected return on rate base would decrease to 4.18% in 2018, which is less than the targeted level. An additional rate increase of 4.68% would be necessary to increase the return on rate base to the targeted level (see Table 2c, Line 12). Minimum Cash Reserve Policy The Utility has developed a minimum cash reserve policy that consists of several components. The current policy includes amounts for the following five categories, with the minimum cash reserve calculated as the total: 1. Operational: Based on operating expenses and lag in revenue collection compared to expenditures of 45 days. Excludes power costs. 2. Power Cost: Based on power costs and lag in revenue collection compared to expenditures of 45 days. 3. Asset: Based on risk that Utility will need to replace given assets, calculated by multiplying total plant assets by a risk factor. 4. Capital Improvement: Based on capital improvements for a projected 5-year period. Table 2c Grand Island Utilities Department 2018 Cost of Service Study Projected Financial Results - Return on Rate Base and Projected Cash on Hand Projected Rates Actual Test Year Projected Line 2017 2018 2019 2020 2021 1 Estimated Return on Rate Base 2 Revenue 84,090,853$ 87,941,475$ 89,776,137$ 92,236,796$ 94,758,300$ 3 Operating Expenses 77,521,909 81,368,133 83,809,177 86,323,452 88,913,156 4 Net Income (excluding Interest Expense)6,568,944$ 6,573,342$ 5,966,960$ 5,913,343$ 5,845,145$ 5 Rate Base 6 Net Plant in Service 148,019,548$ 148,019,548$ 148,019,548$ 148,019,548$ 148,019,548$ 7 Working Capital 8,836,743 9,287,642 9,544,896 9,809,868 10,082,789 8 Projected Rate Base 156,856,291$ 157,307,190$ 157,564,444$ 157,829,416$ 158,102,337$ 9 Return on Rate Base 4.19%4.18%3.79%3.75%3.70% 10 Target Return on Rate Base 6.11%6.11%6.11%6.11%6.11% 11 Rate Change to Achieve Target Return ($)3,014,838 3,037,989 3,660,090 3,729,895 3,814,769 12 (%)4.67%4.68%5.64%5.75%5.88% 13 Projected Cash on Hand 14 Starting Balance 41,235,711 41,231,484 40,987,302 41,078,903 15 Increase / Decrease (4,227) (244,182) 91,602 438,738 16 Ending Balance 41,231,484 40,987,302 41,078,903 41,517,641 17 Cash Operating Expenses 74,301,133 76,359,167 78,478,942 80,662,310 18 Days of Operating Expenses 203 196 191 188 Description Grand Island Study Session - 8/7/2018 Page 38 / 116 CITY COUNCIL REVIEW DRAFT 13 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 5. Debt Service: Based on largest debt service payment, net of sinking funds available to make debt service payment. These proposed categories of cash reserves are reasonable and prudent for the Utility’s risk profile. The current calculation results in a minimum cash reserve requirement of $31.9 million. One potential improvement to the cash reserve policy would be to add a catastrophic risk component. The component would cover the cost of an unexpected event, such as a tornado or ice storm, that causes damage to a significant portion of the Utility’s distribution system without having to borrow funds. The analysis consisted of the following components: 1. Loss of Revenue: Loss of retail revenue associated with 20% of Utility’s retail customers for a period of 15 days, net of a reduction in variable energy costs for a similar period. The cost of this component was $387,000. 2. Cost of System Replacement: Assumed need to completely replace 10% of Utility’s overhead three phase and single phase distribution system, based on new construction cost of $120,000 per mile for three phase lines and $80,000 per mile for single phase lines. The cost of this component was $4.29 million. The sum of the two components was $4.67 million. Because this potential cost is not incorporated into any of the existing cash reserve components, it would be added to the current calculation as a separate line item. The proposed calculation for the new category will be forwarded to Utility staff upon completion of the study. Table 3 (see page 14) shows the proposed cash reserve requirement with the new Catastrophic Event category included. The revised minimum cash reserve requirement would increase to $41.2 million. As of December 31, 2017, the Utility had sufficient cash reserves to meet this revised requirement. [Intentionally left blank.] Grand Island Study Session - 8/7/2018 Page 39 / 116 CITY COUNCIL REVIEW DRAFT 14 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC COST OF SERVICE The purpose of the cost of service analysis is to identify the costs related to serving each class of customers. Several steps were completed to prepare the cost of service analysis. A test year budget was prepared based on the FY 2018 operating budget with adjustments for known changes. Each expense item was identified and assigned to a utility function, and further classified as a demand, energy or customer related expense. This process is called “functionalization” and “classification.” Costs related to each function were then allocated to customer classes based on generally accepted cost allocation principles for municipal electric utilities. The allocated costs were compared to revenues based on existing rates. The comparison of the cost of service to revenue from existing rates was considered in designing rates. Test Year Budget The FY 2018 operating budget was used as the basis for the test year budget. The purpose of preparing a test year budget is to create a scenario that is as close to “normal” operating conditions as possible, reflecting known changes for the utility. The test year budget included the following adjustments from the FY 2018 operating budget: 1. Revenue for each rate class was based on sales in FY 2017 from provided billing data. Table 3 Grand Island Utilities Department 2018 Cost of Service Study Minimum Cash Reserve Test Year Line 2018 1 Risk Reserve 2 Operational 1,303,007$ 3 Power Cost 7,423,781 4 Asset 11,488,530 5 Capital Improvement 8,652,800 6 Debt Service 3,112,458 7 Catastrophic Event 4,674,536 8 Minimum Cash Reserved Needed 36,655,111$ 9 10 Total Unrestricted Cash Available 41,235,711$ 11 Minimum Cash Reserved Needed 36,655,111 12 13 Excess Over Minimum Required 4,580,600$ Grand Island Study Session - 8/7/2018 Page 40 / 116 CITY COUNCIL REVIEW DRAFT 15 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 2. Internal transmission and distribution O&M expenses were reduced to a level consistent with recent actual expenditures to ensure that a normalized budget was used. 3. Revenues were increased to reflect the projected fuel cost adjustment for FY 2018, based on the increase in fuel and purchased power costs between FY 2017 and FY 2018. The test year budget for FY 2018 was approximately $64.9 million and is summarized in Table 4. This figure represents the amount that needs to be collected from retail rates. It includes all operating expenses, debt service payments, capital improvements funded from rates and is reduced for revenue from wholesale revenue, interest income and other non-retail revenue. Grand Island Utilities Department 2018 Cost of Service Study Production /Subtrans/Customer/ Line Rate Class Transmission Distribution Admin Total 1 E10 Residential 15,740,355$ 3,721,933$ 1,108,758$ 20,571,046$ 2 E30 Single Phase Commercial 1,816,732 373,264 93,476 2,283,472 3 E50 Three Phase Commercial 12,112,006 2,187,547 246,440 14,545,993 4 E00 Three Phase Power 8,627,180 953,431 6,946 9,587,557 5 Interdepartmental - - - - 6 E20 Residential Suburb 3,089 720 175 3,983 7 ENM Net Meter, Residential 6,976 1,420 144 8,540 8 E35 Single Phase Commercial 299,372 76,971 29,682 406,025 9 E34 Single Phase Commercial 46,353 17,978 8,206 72,536 10 E51 Three Phase Commercial 1%239,404 42,413 2,868 284,684 11 E33 Single Phase Commercial 5%11,057 1,657 57 12,770 12 E59 Three Phase Comm Service 78,348 16,897 2,350 97,596 13 E52 Three Phase Commercial 2%356,340 48,897 396 405,634 14 E54 Three Phase Commercial 5%32,840 2,730 113 35,683 15 E01 Three Phase Power 3%11,432,675 764,007 1,141 12,197,823 16 E03 Three Phase Power 3%2,320,879 172,226 570 2,493,675 17 IE1 Three Phase Power (ID)90,529 8,845 143 99,517 18 IE2 Three Phase Power (ID) - 750 461,185 53,777 143 515,104 19 Area Flood Lighting 96,193 26,525 47,871 170,588 20 Street Lights 228,356 42,974 267,956 539,286 21 IE3 Three Phase Power (ID) - 3%500,715 43,422 143 544,279 22 Total 54,500,583$ 8,557,633$ 1,817,577$ 64,875,793$ 23 Percentage 84.01%13.19%2.80%100.00% Table 4 Test Year Budget by Function Annual Grand Island Study Session - 8/7/2018 Page 41 / 116 CITY COUNCIL REVIEW DRAFT 16 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Functionalization and Classification Functionalization and classification involves assigning the expense items to a function and classifying those expenses by allocation method. Functions vary by utility and are based on power supply arrangements, size, and type of utility. The following functions were used for the Utility: 1. Production and purchased power a. Demand b. Energy 2. Transmission and sub-transmission service 3. Distribution (primary and secondary) 4. Services 5. Meter reading 6. Billing and customer accounting Expenses were classified into demand-related, energy-related, and customer-related classifications. Some costs are allocated solely to a single classification. For example, transmission service is classified as demand-related. Other functions, including primary distribution, were spread between the demand-related and customer-related classifications. The classifications were based on cost causation and the appropriate way to recover the costs under the Utility’s retail rate structure. Table 5 (see page 17) summarizes the classification of test year expenses, including the allocation to the various retail rate classes. Approximately $3.8 million is customer- related, $20.4 million is energy-related, and $40.7 million is demand-related expense. Based on this classification, 5.9% of the Utility’s test year budget is customer-related, 31.4% is energy-related, and 62.7% is demand-related. [Intentionally left blank.] Grand Island Study Session - 8/7/2018 Page 42 / 116 CITY COUNCIL REVIEW DRAFT 17 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC One of the key findings shown in Table 5 is related to the customer component of the projected cost of service. This represents the cost of service for a customer that uses no energy. It includes costs such as meter reading, meter O&M, the service, a portion of the service transformer, and a portion of other distribution facilities necessary to ensure minimal service is available. For Residential customers, the estimated customer-related cost is $10.14 per month. This is double the current customer charge of $5.00 per month. Similarly, the customer charge for Single and Three Phase Commercial customers is lower than the calculated cost of service. The Utility should consider a plan to increase the customer charge over time to recover the calculated cost of service. The proposed rate ordinance includes an increase in the monthly customer charge for Residential and Commercial customers. Grand Island Utilities Department 2018 Cost of Service Study Customer Energy Demand Line Rate Class ($)($/mon)($)(¢/kWh)($)($/kW)¢/kWh 1 E10 Residential 2,576,064$ 10.14$ 5,945,255$ 2.86 12,049,727$ 5.80 2 E30 Single Phase Commercial 216,126 10.91 620,025 2.78 1,447,321 6.49 3 E50 Three Phase Commercial 575,610 14.35 4,210,240 2.87 9,760,143 6.66 4 E00 Three Phase Power 16,225 14.35 3,273,079 2.85 6,298,253 5.49 5 Interdepartmental - - - - - - 6 E20 Residential Suburb 405 10.14 1,146 2.95 2,432 6.26 7 ENM Net Meter, Residential 335 10.14 2,130 2.55 6,075 7.26 8 E35 Single Phase Commercial 68,627 10.91 98,725 2.74 238,673 6.61 9 E34 Single Phase Commercial 18,973 10.91 15,690 2.92 37,873 7.05 10 E51 Three Phase Commercial 1%6,699 14.35 86,235 2.95 191,750 6.55 11 E33 Single Phase Commercial 5%131 10.91 2,914 2.25 9,726 7.49 12 E59 Three Phase Comm Service 6,435 12.92 27,271 2.97 63,889 6.96 13 E52 Three Phase Commercial 2%1,085 12.92 128,083 2.73 276,465 5.89 14 E54 Three Phase Commercial 5%310 12.92 10,731 2.63 24,642 6.03 15 Not Used - - - - - - 15 E01 Three Phase Power 3%2,523 26.28 4,640,547 2.74 7,554,752 23.57 4.47 16 E03 Three Phase Power 3%1,262 26.28 760,907 2.76 1,731,507 24.01 6.28 17 IE1 Three Phase Power (ID)315 26.28 34,593 2.57 64,609 24.27 4.80 18 IE2 Three Phase Power (ID) - 750 315 26.28 198,513 2.85 316,276 35.14 4.54 19 Area Flood Lighting 61,667 2.89 41,080 2.85 67,841 20 Street Lights 280,714 4.64 97,522 2.85 161,050 21 IE3 Three Phase Power (ID) - 3%315 26.28 184,866 2.72 359,097 28.00 5.29 22 Total 3,834,139$ 20,379,553$ 40,662,102$ 23 Percentage 5.9%31.4%62.7% Table 5 Classification of Expenses Annual Grand Island Study Session - 8/7/2018 Page 43 / 116 CITY COUNCIL REVIEW DRAFT 18 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Cost Allocation The functionalized costs were allocated to the various rate classes using generally accepted methods for preparing embedded cost of service studies. There is no standard cost of service methodology set by a regulatory agency that the Utility is required to follow. There are several guidelines that municipal utilities typically follow, including publications and guidelines from the American Public Power Association, the National Association of Regulatory Utility Commissioners, and the Federal Energy Regulatory Commission. Demand-related costs were allocated on the basis of coincident or non-coincident demands, depending on the function, and adjusted for losses. Energy-related costs were allocated on the basis of energy sales, adjusted for losses. Customer-related costs were allocated on the basis of the weighted number of customers within each rate class, with weighting factors determined based on the cost of metering, customer billing or services. Costs were further allocated into summer season and winter season related costs to assist in rate design. Some expenses are not easily assigned to a particular function. Examples of expenses that are not easily assigned include interest income, general administrative expenses, and miscellaneous operating revenue. These expenses were assigned to functions based on net plant in service, which is one of several generally accepted methods for assigning these costs to the appropriate function. Comparison of Revenues to Cost of Service Revenues collected from existing rates were compared to the allocated cost of service. The purpose of this comparison was to provide guidance on the adequacy of existing rates for each rate class. This comparison can be used to assess the general magnitude of rate changes needed for each rate class and is one factor in determining the need for rate adjustments for individual rate classes. Table 6 (see page 19) compares the revenue from existing rates to the calculated cost of service. Overall, the cost of service indicated rates would not need to increase in FY 2018. The cost of service indicated that individual rate classes would require rate changes ranging from 0.9% to 7.8% to recover the cost of service (excluding net metering). Some rate classes, including Single Phase Commercial, some Three Phase Commercial rate classes, and Area Lighting are paying more than the cost of service. [Intentionally left blank.] Grand Island Study Session - 8/7/2018 Page 44 / 116 CITY COUNCIL REVIEW DRAFT 19 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 7 (see page 20) shows the calculated cost of service for the summer and winter seasons. To fully recover the cost of service, summer season rates would require an increase of 4.0% while winter season rates would need to decrease 3.6%. In general, this indicates that rates in the summer are less than the cost of service while rates in the winter are greater than the cost of service. [Intentionally left blank.] Grand Island Utilities Department 2018 Cost of Service Study Revenue Existing Cost of Line Rate Class Rates Service $% 1 E10 Residential 20,380,759$ 20,571,046$ 190,288$ 0.9% 2 E30 Single Phase Commercial 2,399,484 2,283,472 (116,012) -4.8% 3 E50 Three Phase Commercial 14,259,402 14,545,993 286,591 2.0% 4 E00 Three Phase Power 9,408,767 9,587,557 178,790 1.9% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 3,696 3,983 288 7.8% 7 ENM Net Meter, Residential 6,664 8,540 1,876 28.1% 8 E35 Single Phase Commercial 425,375 406,025 (19,350) -4.5% 9 E34 Single Phase Commercial 69,635 72,536 2,901 4.2% 10 E51 Three Phase Commercial 1%279,425 284,684 5,259 1.9% 11 E33 Single Phase Commercial 5%11,862 12,770 909 7.7% 12 E59 Three Phase Comm Service 95,369 97,596 2,226 2.3% 13 E52 Three Phase Commercial 2%421,727 405,634 (16,093) -3.8% 14 E54 Three Phase Commercial 5%37,814 35,683 (2,130) -5.6% 15 E01 Three Phase Power 3%12,774,616 12,197,823 (576,793) -4.5% 16 E03 Three Phase Power 3%2,623,038 2,493,675 (129,363) -4.9% 17 IE1 Three Phase Power (ID)106,813 99,517 (7,296) -6.8% 18 IE2 Three Phase Power (ID) - 750 483,495 515,104 31,609 6.5% 19 Area Flood Lighting 254,320 170,588 (83,732) -32.9% 20 Street Lights 301,870 539,286 237,416 78.6% 21 IE3 Three Phase Power (ID) - 3%515,677 544,279 28,602 5.5% 22 Total 64,859,810$ 64,875,793$ 15,983$ 0.0% Difference Table 6 Comparison of Cost of Service to Revenue from Existing Rates Annual Grand Island Study Session - 8/7/2018 Page 45 / 116 CITY COUNCIL REVIEW DRAFT 20 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Grand Island Utilities Department 2018 Cost of Service Study Revenue Existing Cost of Line Rate Class Rates Service $% 1 E10 Residential 9,873,432$ 10,313,401$ 439,968$ 4.5% 2 E30 Single Phase Commercial 1,026,517 1,098,203 71,687 7.0% 3 E50 Three Phase Commercial 7,049,613 7,610,732 561,119 8.0% 4 E00 Three Phase Power 4,429,989 4,524,523 94,534 2.1% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 2,037 2,206 169 8.3% 7 ENM Net Meter, Residential 2,312 3,379 1,067 46.2% 8 E35 Single Phase Commercial 171,907 181,545 9,638 5.6% 9 E34 Single Phase Commercial 34,239 36,920 2,681 7.8% 10 E51 Three Phase Commercial 1%150,564 160,795 10,231 6.8% 11 E33 Single Phase Commercial 5%2,009 2,658 649 32.3% 12 E59 Three Phase Comm Service 51,939 54,658 2,719 5.2% 13 E52 Three Phase Commercial 2%196,403 202,380 5,977 3.0% 14 E54 Three Phase Commercial 5%15,310 15,384 74 0.5% 15 E01 Three Phase Power 3%5,862,204 5,907,118 44,914 0.8% 16 E03 Three Phase Power 3%1,202,271 1,153,822 (48,449) -4.0% 17 IE1 Three Phase Power (ID)39,626 42,712 3,086 7.8% 18 IE2 Three Phase Power (ID) - 750 244,330 286,650 42,321 17.3% 19 Area Flood Lighting 105,967 56,971 (48,996) -46.2% 20 Street Lights 125,779 191,212 65,433 52.0% 21 IE3 Three Phase Power (ID) - 3%237,066 225,620 (11,445) -4.8% 22 Total 30,823,513$ 32,070,889$ 1,247,376$ 4.0% Revenue Existing Cost of Line Rate Class Rates Service $% 1 E10 Residential 10,507,326$ 10,257,646$ (249,681)$ -2.4% 2 E30 Single Phase Commercial 1,372,968 1,185,269 (187,699) -13.7% 3 E50 Three Phase Commercial 7,209,789 6,935,261 (274,529) -3.8% 4 E00 Three Phase Power 4,978,778 5,063,034 84,256 1.7% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 1,658 1,777 119 7.2% 7 ENM Net Meter, Residential 4,353 5,162 809 18.6% 8 E35 Single Phase Commercial 253,468 224,480 (28,988) -11.4% 9 E34 Single Phase Commercial 35,396 35,616 220 0.6% 10 E51 Three Phase Commercial 1%128,862 123,890 (4,972) -3.9% 11 E33 Single Phase Commercial 5%9,853 10,113 260 2.6% 12 E59 Three Phase Comm Service 43,430 42,938 (492) -1.1% 13 E52 Three Phase Commercial 2%225,324 203,254 (22,070) -9.8% 14 E54 Three Phase Commercial 5%22,504 20,299 (2,204) -9.8% 15 E01 Three Phase Power 3%6,912,412 6,290,705 (621,707) -9.0% 16 E03 Three Phase Power 3%1,420,767 1,339,853 (80,914) -5.7% 17 IE1 Three Phase Power (ID)67,188 56,805 (10,382) -15.5% 18 IE2 Three Phase Power (ID) - 750 239,165 228,454 (10,711) -4.5% 19 Area Flood Lighting 148,354 113,617 (34,736) -23.4% 20 Street Lights 176,091 348,074 171,983 97.7% 21 IE3 Three Phase Power (ID) - 3%278,611 318,658 40,047 14.4% 22 Total 34,036,297$ 32,804,904$ (1,231,394)$ -3.6% Table 7 Comparison of Cost of Service to Revenue from Existing Rates Difference Summer Winter Difference Grand Island Study Session - 8/7/2018 Page 46 / 116 CITY COUNCIL REVIEW DRAFT 21 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC RATE DESIGN The purpose of rate design is to develop rates that help achieve established revenue and financial performance goals while balancing other rate goals established by the Utility. This process involves meeting goals that sometimes conflict with each other. For example, a goal to have competitive rates may conflict with the need to have rates that recover sufficient revenue to pay for projected expenses. The rates were designed to best meet several goals that were established by the Utility and its consultant. These goals included: 1. Ensuring the long-term financial integrity of the utility. 2. Establishing rates that are fair, reasonable and non-discriminatory. 3. Developing rates that are competitive. 4. Encouraging usage during low cost time periods, while discouraging usage during high cost periods. 5. Recognizing the cost of service for rate classes and seasons. 6. Phasing in large rate increases to minimize rate impacts to customers. Summary of Rate Changes The proposed rate ordinance, included as Appendix A, would implement the proposed rate design changes on October 1, 2018 resulting in negligible rate changes on an overall basis. The proposed rate changes are consistent with the cost of service results. The proposed changes by rate class are shown in Table 8 (see page 22) on an annual basis and Table 9 (see page 23) on a seasonal basis. The proposed rate changes would be negligible for a Residential customer. [Intentionally left blank.] Grand Island Study Session - 8/7/2018 Page 47 / 116 CITY COUNCIL REVIEW DRAFT 22 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 8 Grand Island Utilities Department 2018 Cost of Service Study Proposed Rate Change by Rate Class - October 2018 Annual Revenue Revenue Existing Proposed Line Rate Class Rates Rates $% 1 E10 Residential 20,380,759$ 20,385,874$ 5,115$ 0.0% 2 E30 Single Phase Commercial 2,399,484 2,393,734 (5,750) -0.2% 3 E50 Three Phase Commercial 14,259,402 14,293,530 34,128 0.2% 4 E00 Three Phase Power 9,408,767 9,497,139 88,372 0.9% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 3,696 3,692 (3) -0.1% 7 ENM Net Meter, Residential 6,664 6,471 (193) -2.9% 8 E35 Single Phase Commercial 425,375 446,214 20,839 4.9% 9 E34 Single Phase Commercial 69,635 76,073 6,438 9.2% 10 E51 Three Phase Commercial 1%279,425 278,822 (603) -0.2% 11 E33 Single Phase Commercial 5%11,862 11,349 (513) -4.3% 12 E59 Three Phase Comm Service 95,369 96,780 1,411 1.5% 13 E52 Three Phase Commercial 2%421,727 421,727 - 0.0% 14 E54 Three Phase Commercial 5%37,814 37,386 (428) -1.1% 15 E01 Three Phase Power 3%12,774,616 12,624,373 (150,243) -1.2% 16 E03 Three Phase Power 3%2,623,038 2,671,406 48,367 1.8% 17 IE1 Three Phase Power (ID)106,813 105,454 (1,359) -1.3% 18 IE2 Three Phase Power (ID) - 750 483,495 460,466 (23,029) -4.8% 19 Area Flood Lighting 254,320 197,644 (56,677) -22.3% 20 Street Lights 301,870 351,046 49,176 16.3% 21 IE3 Three Phase Power (ID) - 3%515,677 512,387 (3,290) -0.6% 22 Total 64,859,810$ 64,871,566$ 11,756$ 0.0% Difference Grand Island Study Session - 8/7/2018 Page 48 / 116 CITY COUNCIL REVIEW DRAFT 23 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Grand Island Utilities Department 2018 Cost of Service Study Revenue Revenue Existing Proposed Line Rate Class Rates Rates $% 1 E10 Residential 9,873,432$ 10,247,313$ 373,881$ 3.8% 2 E30 Single Phase Commercial 1,026,517 1,022,522 (3,995) -0.4% 3 E50 Three Phase Commercial 7,049,613 7,081,769 32,157 0.5% 4 E00 Three Phase Power 4,429,989 4,880,673 450,684 10.2% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 2,037 2,110 73 3.6% 7 ENM Net Meter, Residential 2,312 2,317 5 0.2% 8 E35 Single Phase Commercial 171,907 180,860 8,953 5.2% 9 E34 Single Phase Commercial 34,239 36,624 2,384 7.0% 10 E51 Three Phase Commercial 1%150,564 150,846 282 0.2% 11 E33 Single Phase Commercial 5%2,009 1,876 (133) -6.6% 12 E59 Three Phase Comm Service 51,939 52,860 921 1.8% 13 E52 Three Phase Commercial 2%196,403 196,403 - 0.0% 14 E54 Three Phase Commercial 5%15,310 15,198 (112) -0.7% 15 E01 Three Phase Power 3%5,862,204 6,302,516 440,312 7.5% 16 E03 Three Phase Power 3%1,202,271 1,329,106 126,835 10.5% 17 IE1 Three Phase Power (ID)39,626 43,900 4,275 10.8% 18 IE2 Three Phase Power (ID) - 750 244,330 244,942 612 0.3% 19 Area Flood Lighting 105,967 82,352 (23,615) -22.3% 20 Street Lights 125,779 146,269 20,490 16.3% 21 IE3 Three Phase Power (ID) - 3%237,066 259,013 21,947 9.3% 22 Total 30,823,513$ 32,279,468$ 1,455,955$ 4.7% Revenue Revenue Existing Proposed Line Rate Class Rates Rates $% 1 E10 Residential 10,507,326$ 10,138,561$ (368,766)$ -3.5% 2 E30 Single Phase Commercial 1,372,968 1,371,212 (1,755) -0.1% 3 E50 Three Phase Commercial 7,209,789 7,211,760 1,971 0.0% 4 E00 Three Phase Power 4,978,778 4,616,466 (362,312) -7.3% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 1,658 1,582 (76) -4.6% 7 ENM Net Meter, Residential 4,353 4,154 (198) -4.6% 8 E35 Single Phase Commercial 253,468 265,354 11,885 4.7% 9 E34 Single Phase Commercial 35,396 39,450 4,053 11.5% 10 E51 Three Phase Commercial 1%128,862 127,977 (885) -0.7% 11 E33 Single Phase Commercial 5%9,853 9,473 (380) -3.9% 12 E59 Three Phase Comm Service 43,430 43,920 490 1.1% 13 E52 Three Phase Commercial 2%225,324 225,324 - 0.0% 14 E54 Three Phase Commercial 5%22,504 22,188 (316) -1.4% 15 E01 Three Phase Power 3%6,912,412 6,321,857 (590,555) -8.5% 16 E03 Three Phase Power 3%1,420,767 1,342,299 (78,468) -5.5% 17 IE1 Three Phase Power (ID)67,188 61,554 (5,634) -8.4% 18 IE2 Three Phase Power (ID) - 750 239,165 215,524 (23,642) -9.9% 19 Area Flood Lighting 148,354 115,292 (33,061) -22.3% 20 Street Lights 176,091 204,840 28,749 16.3% 21 IE3 Three Phase Power (ID) - 3%278,611 253,374 (25,238) -9.1% 22 Total 34,036,297$ 32,592,161$ (1,444,136)$ -4.2% Difference Winter Table 9 Proposed Rate Change by Rate Class - October 2018 Summer Difference Grand Island Study Session - 8/7/2018 Page 49 / 116 CITY COUNCIL REVIEW DRAFT 24 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Specific Rate Design Issues In general, the Utility’s rate structure is reasonable for its size and customer base. Offering discounts for primary metering, ownership of transformation or both is common and consistent with cost of service principles. A number of specific rate design issues were identified based on the cost of service results, a review of the existing rate structure, and industry trends in ratemaking. Specifically, the following rate design changes are recommended and included in the rate ordinance included in Attachment A. 1. Increase Customer Charges for Residential and Commercial Customers: The cost of service analysis indicated that the customer-related costs for Residential and Commercial customers is greater than the customer charge. This indicates that a very low usage customer, such as a net-metering customer or someone who leaves a residence unattended for a length of time, may be paying less than what its costs the Utility to provide service. It is recommended that Residential and Commercial customer charges be increased. 2. Increase Demand Charges: For customers with a demand rate component, the demand charge is currently less than the cost of service. It is proposed to increase the rate somewhat to more accurately reflect the cost of service. 3. Simplify Energy Blocks: In recent years, many utilities have attempted to reduce the number of rate blocks. Multiple rate blocks are difficult for customers to understand and can be more difficult to administer. Multiple rate blocks can sometimes result in mixed signals to customers, particularly when there is a decrease in rates from one block to the next, followed by an increase in a later block. In general, when it was practical, the number of rate blocks was reduced in the proposed rate ordinance, particularly with Commercial customers. 4. Change to Fixture-based Lighting Rates: The current rate structure for Street Lighting and Area Lighting is based on the wattage of the light fixture. In recent years, the rated wattage for new fixtures, such as LED lights, has decreased while the capital cost is higher than that of high pressure sodium fixtures that provide similar lighting patterns. The current structure does not adequately address these differences in capital costs. It was recommended to modify the Street Lighting and Area Lighting rates to be based on the capital cost of the fixture, estimated O&M, and projected energy cost. A different fixed rate was developed for each common size of mercury vapor, high pressure sodium metal halide, and LED fixture. 5. Increase Base Power Cost: The Power Cost Adjustment is designed to cover the cost of increases in fuel and purchased power cost. In recent years, the cost of power has steadily increased to where the average cost of fuel and Grand Island Study Session - 8/7/2018 Page 50 / 116 CITY COUNCIL REVIEW DRAFT 25 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC purchased power is typically approximately 3.8¢/kWh. The base power cost used to calculate the Power Cost Adjustment is 1.5¢/kWh. This results in Power Cost Adjustment charges that are more than 2.3¢/kWh, which means the Utility is recovering more from the Power Cost Adjustment than from the base power cost already included in rates. It was recommended to increase the base power cost to 3.8¢/kWh and to increase the amount of fuel and purchased power recovered from base rates by 2.3¢/kWh. This should result in the Power Cost Adjustment line on customer bills being closer to zero upon implementation of the change. Rate Comparisons Rate comparisons with the City’s peer group, consisting of NPPD, LES, OPPD and the City of Hastings, were prepared for Residential and Single Phase Commercial customers. These four utilities have a similar customer make-up, own and operate the vast majority of generating resources used to supply retail customers, and operate transmission (> 100 kV) facilities. For the Residential rate class (see Table 10), GIUD has either the lowest or second- lowest rates among the peer group. There are differences between seasons and usage levels, but these trends tend to be consistent for the Residential class. Table 10 Grand Island Utilities Department 2018 Cost of Service Study Typical Bill Comparison Rate Comparisons - October 2018 Proposed E10 Residential Summer Comparisons Utility 500 kWh Utility 1,000 kWh Utility 2,500 kWh Hastings 55.81 GIUD 104.71 LES 234.50 GIUD 59.66 LES 105.80 GIUD 239.88 LES 62.90 Hastings 106.79 Hastings 259.73 OPPD 67.02 OPPD 117.32 OPPD 268.22 NPPD 72.55 NPPD 124.35 NPPD 279.75 Winter Comparisons Utility 500 kWh Utility 1,000 kWh Utility 2,500 kWh LES 49.30 LES 78.60 LES 166.50 GIUD 52.47 GIUD 82.54 GIUD 172.75 Hastings 55.81 NPPD 99.08 OPPD 191.61 NPPD 62.60 Hastings 100.49 NPPD 192.38 OPPD 66.41 OPPD 106.56 Hastings 210.03 Grand Island Study Session - 8/7/2018 Page 51 / 116 CITY COUNCIL REVIEW DRAFT 26 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC For Commercial customers (see Table 11), summer season rates are the lowest with the peer group. Winter season rates are at the midpoint among the peer group. Commercial rate comparisons have a tendency to vary widely based on usage patterns, seasonal factors and the cost structure of the utility. GIUD has Commercial rates that are reasonable compared to its peer group. Rate comparisons are important but cannot take into account other factors that cause rate differences. For example, transfers and discounted services to municipal accounts would not be available if NPPD or OPPD served the Utility’s retail customers. Municipally- owned utilities may transfer funds to the City as an in-lieu-of tax payment, as is currently done for economic development funding, or provide free or discounted labor and equipment to the City. Rate comparisons were based on existing rate schedules for 2018 and do not consider future rate changes that may be implemented by other utilities. The four utilities used in the rate comparisons are experiencing similar cost pressures related to new resources, fuel and purchased power cost increases, and general cost escalation. Table 11 Grand Island Utilities Department 2018 Cost of Service Study Typical Bill Comparison Rate Comparisons - October 2018 Proposed E30 Single Phase Commercial Summer Comparisons Utility 5,000 kWh Utility 10,000 kWh Utility 20,000 kWh LES 477.10 GIUD 910.10 GIUD 1,345.65 GIUD 474.55 LES 931.10 LES 1,839.10 Hastings 485.74 Hastings 939.04 Hastings 1,845.64 OPPD 503.48 OPPD 969.68 OPPD 1,902.08 NPPD 639.49 NPPD 1,247.56 NPPD 2,463.68 Winter Comparisons Utility 5,000 kWh Utility 10,000 kWh Utility 20,000 kWh LES 326.10 LES 629.10 LES 1,235.10 OPPD 403.73 OPPD 683.55 OPPD 1,243.20 GIUD 454.70 GIUD 870.40 GIUD 1,286.10 Hastings 485.74 Hastings 939.04 Hastings 1,845.64 NPPD 488.51 NPPD 945.58 NPPD 1,859.73 Grand Island Study Session - 8/7/2018 Page 52 / 116 CITY COUNCIL REVIEW DRAFT 27 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC CONCLUSIONS The following conclusions were reached, based on the information provided and analyses completed: 1. The projected revenue requirement for FY 2018 was $64.9 million. 2. Projected revenues from existing rates are approximately $64.9 million. 3. The existing cash reserve policy does not include a category related to the cost of a catastrophic event, such as an ice storm or tornado, that causes significant damage to the distribution system. 4. The potential cost of a catastrophic event, consisting of destruction of 10% of the distribution system and loss of 20% of revenue for 15 days, is approximately $4.6 million. 5. Customer charges for Residential and Commercial customers are less than the calculated cost of service. 6. The existing rate structure for Residential and Commercial customers is relatively complicated, with three to six energy usage blocks and a declining block rate structure. In recent years, utilities have tended to reduce rate blocks and decrease use of declining block rate structures. 7. For demand-billed customers, the existing demand rate is somewhat less than the cost of service. 8. The existing billing methodology for Street Lighting and Area Lights does not properly recover the cost of newer high-efficiency fixtures, such as LED street lighting. 9. With the proposed rate changes in October 2018, the Utility’s rates would be comparable to the City’s peer group. RECOMMENDATIONS The following recommendations were developed based on the analyses completed and conclusions reached: 1. The Utility should adopt the rate ordinance included in Appendix A. 2. The Utility should consider 1.0% annual rate increases in FY 2020 through FY 2022 to ensure adequate revenues to cover projected operating expenses, debt service and capital improvements. 3. The cash reserve policy should be amended to include a reserve for a Catastrophic Event. The amount that should be included initially is approximately $4.6 million. 4. Customer charges should be increased for Residential and Commercial customers to reflect the cost of service. 5. Residential and Commercial rates should be simplified by reducing the number of rate blocks. The proposed rate structure would result in no more than three energy blocks for any rate class. 6. Demand rates should be increased for demand-billed customers. Grand Island Study Session - 8/7/2018 Page 53 / 116 CITY COUNCIL REVIEW DRAFT 28 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 7. The billing structure for Street Lighting and Area Lighting should be changed from a wattage-based structure to a fixture-based rate that considers capital cost, ongoing maintenance and energy cost. 8. The Utility should review its rates on a regular basis, particularly as fuel costs, off-system sales revenues and capital improvement expenses change in the future. Grand Island Study Session - 8/7/2018 Page 54 / 116 CITY COUNCIL REVIEW DRAFT Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC APPENDIX A – RATE ORDINANCE Grand Island Study Session - 8/7/2018 Page 55 / 116 ORDINANCE NO. ______ Page 1 An ordinance to amend the Grand Island City Code; Sections 15-55, 15-57, 15-60, 15-63, 15-68, 15-70 and 15-74, pertaining to electric utility rates; to repeal Sections 15-55, 15-57, 15-60, 15-63, 15-68, 15-70 and 15-74, as now existing, and 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 15-55 of the Grand Island City Code is hereby amended to read as follows: §15-55. 010 Residential Service Applicable in urban and rural distribution areas. Available at single phase, through a single meter, to residential consumers for domestic use in a single-family dwelling unit; but is not available for commercial or non-domestic use. Individual single-phase motors, not to exceed 10 HP each, may be connected; however, the City Utilities Department must be notified in writing, if a motor over 5 HP is installed. This schedule has two sets of rates: one for the summer period of five months, beginning with the June billing; and the second for the winter season of seven months, beginning with the November billing. Rate: Effective Date: October 1, 2018 Summer (June-October) Winter (November-May) Customer Charge, per month $8.00 $8.00 Energy Charge First 300 kWh, per kWh $0.108 $0.108 Next 700 kWh, per kWh 0.086 0.067 All additional kWh, per kWh 0.086 0.060 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge prior to the Power Cost Adjustment. Grand Island Study Session - 8/7/2018 Page 56 / 116 Page 2 SECTION 2. Section 15-57 of the Grand Island City Code is hereby amended to read as follows: §15-57. 030 Single-Phase Commercial Service Applicable in urban and rural distribution areas. Available for commercial customers, for lighting and small appliances. Available for single meter apartment units, and combined residential-commercial use, where the Residential Rate is not applicable. Service shall be through a single meter. Individual single-phase motors, not to exceed 10 HP each, may be connected; however, the City Utilities Department must be notified in writing if a motor over 5 HP is installed. Rate: Effective Date: October 1, 2018 Customer Charge, per month $12.00 Energy Charge First 1,000 kWh, per kWh $0.110 All additional kWh, per kWh 0.083 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge prior to the Power Cost Adjustment. SECTION 3. Section 15-60 of the Grand Island City Code is hereby amended to read as follows: §15-60. 050 Three-Phase Commercial Service Applicable in the territory served by the City of Grand Island; and is available through a single meter at three-phase for any electric service uses where three-phase service is available. This schedule has two sets of rates: one for the summer period of five months, beginning with the June billing; and the second for the winter season of seven months, beginning with the November billing. Grand Island Study Session - 8/7/2018 Page 57 / 116 Page 3 Rate: Effective Date: October 1, 2018 Summer (June-October) Winter (November-May) Customer Charge, per month $16.00 $16.00 Energy Charge First 1,000 kWh, per kWh $0.110 Next 4,000 kWh, per kWh 0.098 All additional kWh, per kWh 0.090 First 500 kWh, per kWh $ 0.110 Next 1,000 kWh, per kWh 0.098 All additional kWh, per kWh 0.085 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be no less than the monthly customer charge. The minimum bill shall in no event less than $0.070 per month per connected horsepower (HP). The billing HP shall be determined as follows: 1. Total connected HP, if total connected HP is less than 20 HP. 2. If total connected HP exceeds 20 HP, then the billing HP shall be the larger of 20 HP or the largest single connected motor. 3. If questions arise as to the actual billing HP, the City Utilities Department may, at its option, install demand meters. The kilowatt reading shall determine the HP on the basis of 0.75 kilowatt = 1.0 HP. It is the reasonability of the customer to inform the City Utilities Department of changes that may affect minimum billings. SECTION 4. Section 15-56 of the Grand Island City Code is hereby amended to read as follows: §15-63. 100 Three-Phase Power Service Applicable in the territory served by the City of Grand Island, available through a single meter at three-phase. Available for any commercial or industrial use of energy. Grand Island Study Session - 8/7/2018 Page 58 / 116 Page 4 Rate: Effective Date: October 1, 2018 Summer (June-October) Winter (November-May) Customer Charge, per month $300.00 $300.00 Demand Charge, per kW 14.30 9.70 Energy Charge First 450 hours, per kWh $0.054 $0.050 All additional hours, per kWh 0.045 0.042 Plus the applicable Power Cost Adjustment charge (applied to energy consumption only). Minimum Bill: The minimum monthly bill shall be no less than $700. SECTION 5. Section 15-68 of the Grand Island City Code is hereby amended to read as follows: §15-68. Rate 114 Area Floodlighting Applicable in the territory served by the City of Grand Island; and is available for any outdoor area floodlighting of consumer’s property from dusk to dawn, where such service can be rendered directly from existing secondary distribution lines of the City. Luminaire will be selected by Utilities Department and provided from Utilities Department stock. Installation will be on an existing wood pole and connected to existing secondary conductors on such pole. If installed lamp is not listed on the rate schedule, the rate for the nearest sized lamp of the same type shall be charged. Monthly Rate per Lamp: Effective Date: October 1, 2018 Mercury Vapor: 175 watt lamp $8.41 400 watt lamp $14.32 1,000 watt lamp $28.19 High Pressure Sodium: 100 watt lamp $7.50 250 watt lamp $10.03 400 watt lamp $11.10 Metal Halide: 100 watt lamp $9.33 400 watt lamp $16.98 1,000 watt lamp $31.26 Grand Island Study Session - 8/7/2018 Page 59 / 116 Page 5 LED: 25 watt lamp $4.60 50 watt lamp $5.70 100 watt lamp $7.37 Halogen: 500 watt lamp $19.26 SECTION 6. Section 15-70 of the Grand Island City Code is hereby amended to read as follows: §15-70. Power Cost Adjustment The rates set out are predicated upon a base power cost of 38.00 mills per kilowatt-hour. When the City’s cost of energy per kilowatt-hour shall temporarily be greater than 38.00 mills per kilowatt-hour, there shall be added to the consumer’s monthly charge for electricity used an amount equal to the number of kilowatt-hours used during the month to which the consumer’s charge applies, multiplied by the amount by which the cost of energy for kilowatt-hour shall be greater than 38.00 mills per kilowatt-hour. Cost of energy per kilowatt-hour as determined for any month shall be applicable to all charges rendered to consumers after the last day of the following month, without any City Council action. The cost of energy per kilowatt-hour applied to the consumer’s monthly charge shall be an average of the previous six-months cost of energy per kilowatt-hour. For purposes of this section, the following words shall have the following meanings: Cost of Energy shall mean the power cost for the generating plants owned by the City, consisting of the monthly natural gas cost and the cost of any fuel oil consumed; the cost of coal and air quality reagents consumed, including freight and handling charges; plus costs of payments by the City for power and energy purchased from other power suppliers, less receipts from energy sold to other electric utilities. Cost of Energy per Kilowatt-Hour shall mean “Cost of Energy” as above defined, divided by 95 percent (95%) of the total kilowatt-hours; consisting of the kilowatt-hour output of the City’s electric generating plants, plus the kilowatt-hours purchased from other power suppliers, less the kilowatt hours of energy sold to other electric utilities. Grand Island Study Session - 8/7/2018 Page 60 / 116 Page 6 SECTION 7. Section 15-74 of the Grand Island City Code is hereby amended to read as follows: §15-74. Rate 116; Interdepartmental; Streetlights Applicable for various size lights used for public street lighting and public parks lighting, whether City or privately-owned. Monthly Rate per Lamp: Effective Date: October 1, 2018 Mercury Vapor: 175 watt lamp $5.24 400 watt lamp $9.39 1,000 watt lamp $18.55 High Pressure Sodium: 100 watt lamp $4.92 250 watt lamp $6.67 400 watt lamp $7.34 Metal Halide: 100 watt lamp $6.75 400 watt lamp $12.05 1,000 watt lamp $21.63 LED: 50 watt lamp $3.50 100 watt lamp $4.78 Power Cost Adjustment is not applicable to the Interdepartmental Streetlights rate. SECTION 8. Those portions of Sections 15-55; 15-57; 15-60; 15-63, 15-68, 15-70 and 15- 74 as now existing, and any ordinances or parts of ordinances in conflict herewith be, and hereby are, repealed. SECTION 9. 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. Grand Island Study Session - 8/7/2018 Page 61 / 116 Page 7 SECTION 10. That this ordinance shall be in force and take effect from and after its passage and publication, in pamphlet form, with fifteen (15) days in one issue of the Grand Island Independent as provided by law. Enacted: Jeremy Jensen, Mayor ATTEST: RaNae Edwards, City Clerk Grand Island Study Session - 8/7/2018 Page 62 / 116 UTILITIESElectric System Cost of Service Study DiscussionStudy SessionAugust 7, 2018Grand IslandStudy Session - 8/7/2018Page 63 / 116 UTILITIESCost of Service StudyUtility rates are required to be non-discriminatory and reflect actual cost of serviceLast electric system study implemented in 2004Grand IslandStudy Session - 8/7/2018Page 64 / 116 Presented by:John A. Krajewski, P.E.JKEnergyConsultingLLCElectric Cost of Service / Rate Design Study Grand Island Utilities DepartmentAugust 10, 2018Grand IslandStudy Session - 8/7/2018Page 65 / 116 Overview of PresentationIntroductionProjected Financial ResultsCost of ServiceRate DesignComparisons to City’s Peer GroupRecommendations4Grand IslandStudy Session - 8/7/2018Page 66 / 116 BackgroundGrand Island Utilities Department (GIUD or Utility) last completed full Electric Cost of Service / Rate Design Study in 2004Changes since last rate studyoSignificant capital improvements to comply with stricter emissions limits for coal-fired generationoReduction in off-system sales revenueoSPP Integrated MarketplaceoFuel cost changes5Grand IslandStudy Session - 8/7/2018Page 67 / 116 Purpose of StudyReview financial performanceDevelop rates that reflect the cost of service and accomplish other goals established by the UtilityoRates that are competitiveoRates that provide sufficient revenues to cover projected operating expensesoRates that reflect the cost of service for each rate class6Grand IslandStudy Session - 8/7/2018Page 68 / 116 Projected Financial ResultsPurposeoCompare revenues and expenses for current budget and future years through FY 2022oDetermine need for future rate increasesOn a cash basis, deficits are projected to increase from $16,000 in FY 2018 to $1.3 million by FY 20227Grand IslandStudy Session - 8/7/2018Page 69 / 116 Projected Financial ResultsProjections are subject to uncertaintyoFuture energy-related legislation, including greenhouse gas legislation and renewable energy requirementsWithout rate increase, return on rate base remains below the target of 6.11% through FY 20228Grand IslandStudy Session - 8/7/2018Page 70 / 116 Cash Reserve PolicyCash Reserve Policy includes five componentsoOperationaloPower CostoAssetoCapital ImprovementoDebt ServiceExisting minimum cash: $32 million9Grand IslandStudy Session - 8/7/2018Page 71 / 116 Cash Reserve PolicyImprove Cash Reserve Policy by adding catastrophic risk componentoLoss of RevenueoCost of System ReplacementoAdditional $4.7 millionRevised minimum cash: $36.7 million10Grand IslandStudy Session - 8/7/2018Page 72 / 116 Cost of ServicePurposeoDetermine which rate classes cause the Utility to incur costsoCompare cost of service to revenue under existing ratesoDetermine need for rate changesoBy rate classoBy season11Grand IslandStudy Session - 8/7/2018Page 73 / 116 Cost of ServiceFindingsoCustomer-related costs are higher than existing customer chargeoRates collected in the summer season are less than the cost of service while winter season rates are greater than the cost of service12Grand IslandStudy Session - 8/7/2018Page 74 / 116 Rate DesignGoalsoLong-term financial integrityoFair, reasonable and non-discriminatory ratesoCompetitive rates compared to City’s peer groupoEncourage use during low cost periodsoDiscourage use during high cost periodsoRecognize cost of service for each rate class and season13Grand IslandStudy Session - 8/7/2018Page 75 / 116 Rate DesignProposed changes to rate designoIncrease customer charges for Residential and Commercial customersoIncrease demand chargesoSimplify energy blocksoChange to fixture-based Lighting ratesoIncrease base power cost14Grand IslandStudy Session - 8/7/2018Page 76 / 116 Rate ComparisonsWith proposed rate changes, City’s rates are still competitive with peer group, including NPPD, LES, OPPD and the City of HastingsoSimilar customer make-upoOwn and operate vast majority of generating resources to supply retail customersoOperate transmission (>100 kV) facilities15Grand IslandStudy Session - 8/7/2018Page 77 / 116 Rate Comparisons - Residential16Grand IslandStudy Session - 8/7/2018Page 78 / 116 Rate Comparisons - Commercial17Grand IslandStudy Session - 8/7/2018Page 79 / 116 ConclusionsExisting Cash Reserve Policy should include category for potential catastrophic eventCustomer charges for Residential and Commercial customers are less than cost of serviceSimplify rate structure for Residential and Customer customers18Grand IslandStudy Session - 8/7/2018Page 80 / 116 ConclusionsMost demand-billed customers (excluding Power) are paying less than cost of serviceStreet Lighting and Area Lights do not recover the higher capital costs associated with newer high-efficiency fixtures19Grand IslandStudy Session - 8/7/2018Page 81 / 116 RecommendationsAdopt the rate ordinance as presentedoIncrease customer charges for Residential and Commercial customersoSimplify Residential and Commercial rate blocksAmend Cash Reserve Policy to include a reserve for a catastrophic event20Grand IslandStudy Session - 8/7/2018Page 82 / 116 John KrajewskiJK Energy Consulting, LLC650 J Street, Suite 108Lincoln, Nebraska 68508Phone: 402-440-0227Email: jk@jkenergyconsulting.comContact Information21Grand IslandStudy Session - 8/7/2018Page 83 / 116 UTILITIESNoted RecommendationsNeutral to overall income Increase monthly customer chargeRevise basis of power cost adjustment calculationEliminate of redundant rate blocksRevise streetlight rateIncrease minimum cash reserveGrand IslandStudy Session - 8/7/2018Page 84 / 116 UTILITIESElectric Rate StructureCustomer Charge Energy ChargeDemand Charge Some Commercial/Industrial rate classesPower Cost Adjustment Actual fuel/purchase costs – 6 month rolling averageGrand IslandStudy Session - 8/7/2018Page 85 / 116 UTILITIES $‐ $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.002015 2016 2017 2018 ProposedAverage Residential Monthly CostPCA avg costBase avg costCustomer chargeGrand IslandStudy Session - 8/7/2018Page 86 / 116 UTILITIES02004006008001,0001,2001,4001,6002003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018kWhYearAverage Residential Monthly Electric ConsumptionGrand IslandStudy Session - 8/7/2018Page 87 / 116 UTILITIESJanuary February March April May June July August September October November DecemberUtility Budget PlanActual UseBudget AmountGrand IslandStudy Session - 8/7/2018Page 88 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -2 Review Electrical Enterprise Fund Staff Contact: Tim Luchsinger Grand Island Study Session - 8/7/2018 Page 89 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -3 Review Water Enterprise Fund Staff Contact: Tim Luchsinger Grand Island Study Session - 8/7/2018 Page 90 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -4 Discuss Utility Deposit Staff Contact: Tim Luchsinger, Patrick Brown Grand Island Study Session - 8/7/2018 Page 91 / 116 Council Agenda Memo From:Patrick Brown, Finance Director Meeting:August 7, 2018 Subject:Utility Deposits Presenter(s):Patrick Brown, Finance Director Background Currently only commercial accounts are being asked for a utility deposit (no less than $200 and no more than $2,000) and those deposits accrue interest based on the three (3) month LIBOR (London Interbank Offered Rate). These deposits are refunded with interest if the customer finals out their account or if they have had a good payment history for two years. In 2017 we sent 941 accounts totaling $245,233 to our collections agency and received $60,416 in return (a 24.6% return). The average utility bill sent to collections was $261. So far in 2018, we have sent 405 accounts totaling $100,972 to collections and received $10,581 in return (a 10.5% return). The average utility bill sent to collections was $249. Discussion The following changes are proposed for Utility deposits: The City of Grand Island will charge a utility deposit of $250 to new residential customers or residential customers who are transferring service to a new address that do not have two (2) years of good payment history. Utility deposits for residential customers will be credited back to customer accounts when either: o The residential customer has one (1) year of good paying history (no returns) using auto-pay or o The residential customer has two (2) years of good payment history The City of Grand Island will not pay interest on any deposits going forward. Currently, no other utility provider in the area is paying interest to customers on their utility deposits. If the city elects to stop paying interest then the commercial accounts currently with deposits would be paid interest up to the new ordinance effective date. Grand Island Study Session - 8/7/2018 Page 92 / 116 Recommendation Since this is a study session, no action will be taken on this item. Any necessary action will come at a later City Council Session. Grand Island Study Session - 8/7/2018 Page 93 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -5 Review Fee Schedule Staff Contact: Patrick Brown Grand Island Study Session - 8/7/2018 Page 94 / 116 2017 2018 2019 Administration Board of Adjustment Prior to Construction 200.00 200.00 200.00 Board of Adjustment After Construction/No Building Permit 350.00 350.00 350.00 Board of Adjustment After Construction/Not Conform 500.00 500.00 500.00 Conditional Use Permit 1000.00 1000.00 1000.00 Election Filing Fees - City Council 1% of salary 1% of salary 1% of salary Election Filing Fees - Mayor 1% of salary 1% of salary 1% of salary Haulers Permit (annual) Garbage 225.00 225.00 225.00 Haulers Permit (annual) Refuse 75.00 75.00 75.00 Pawnbroker License (annual)100.00 100.00 100.00 Pawnbroker Occupational Tax (annual)100.00 100.00 100.00 Blight Study Adoption 1100.00 1100.00 1100.00 Redevelopment Plan Adoption 1100.00 1100.00 1100.00 Redevelopment Plan Amendment 1100.00 1100.00 1100.00 Register of Deeds Filing fee 10.00 first page 6.00 each add'l page 10.00 first page 6.00 each add'l page 10.00 first page 6.00 each add'l page Liquor Licenses - Occupational Tax (annual) Class A Retail beer, on sale 200.00 200.00 200.00 Class B Retail beer, off sale 200.00 200.00 200.00 Class C Retail liquor, on/off sale 600.00 600.00 600.00 Class D Retail liquor/beer, off sale 400.00 400.00 400.00 Class I Retail liquor, on sale 500.00 500.00 500.00 Class L Brew Pub 500.00 500.00 500.00 Class Z Micro Distiller LB-549 500.00 500.00 500.00 Catering Fee 200.00 200.00 Liquor License - School Fees (annual) Class A Retail beer, on sale 100.00 100.00 100.00 Class B Retail beer, off sale 100.00 100.00 100.00 Class C Retail liquor, on/off sale 300.00 300.00 300.00 Class D Retail Liquor, Off sale 200.00 200.00 200.00 Class I Retail Liquor, on sale 250.00 250.00 250.00 Advertising Fee 10.00 10.00 10.00 Special Designated Liquor License 80.00 80.00 80.00 Natural Gas Company Rate Filing Fee 500.00 500.00 500.00 Certified copy 1.50 1.50 1.50 ANIMAL CONTROL SERVICES Pet License Fee - Un-neutered/un-spayed (if licensed by January 31)41.00 41.00 41.00 Pet License Fee - Neutered/Spayed (if licensed by January 31)16.00 16.00 16.00 Licensed After January 31 add $10.00 to above fees add $10.00 to above fees **$5.00 per license retained by registered veterinarian making sale Pet License Replacement Fee 5.00 5.00 5.00 License Fees-late fee of $10.00 after Feb 1 10.00 10.00 Impoundment Fee - 1st Offense*25.00 25.00 Impoundment Fee - 2nd Offense*50.00 50.00 Impoundment Fee - 3rd Offense*75.00 75.00 Impoundment Fee - 4th Offense*100.00 100.00 *Impoundment includes a per day boarding fee Boarding Fee - Impoundment 15.00+tax/day 15.00+tax/day Boarding Fee - Rabies observation 17.00+tax/day 17.00+tax/day Rabies Testing - There is no charge when Animal Control is dealing with a bite case or wildlife that is required to be tested. If the public is requesting an animal to be tested that is on the required testing list and AC/Cnhs is not involved with the incident there is a charge. 45.00 45.00 Rabies observation transportation fee 25.00 25.00 Legal Proceeding holding fee 20.00+tax per day 20.00+tax per day 20.00+tax per day Deemed "Potentially Dangerous" fee 100.00 100.00 100.00 Fee Schedule for 2019 Grand Island Study Session - 8/7/2018 Page 95 / 116 2017 2018 2019 Fee Schedule for 2019 Micro chip 25.00 per animal Live trap rental $50.00 deposit per trap. When trap is returned in working order, there is a refund of $40.00 50.00 deposit 40.00 refund when returned 50.00 deposit 40.00 refund when returned Adoptions: Neutered/spayed Adoption fees can be lower depending on length of stay, age and color of pet. This is for both cats and dogs. Average fee is $100.00 Dogs 100.00 + tax 100.00 + tax Cats & Kittens 100.00 + tax 100.00 + tax Pickup and disposal of dead animals at owner's request 25.00 25.00 Removal of wildlife from the home, garage or yard at home owner's request During business hours N/C N/C (No charge for removing skunks or bats) BUILDING DEPARTMENT Building Permit Fee, Electrical Permit Fee, Gas Permit Fee, Plumbing Permit Fee, Sign Permit Fee: Based on Valuation Estimated Valuations: 1.00 - 1,600.00 35.00 35.00 35.00 1,601.00 - 1,700.00 37.00 37.00 37.00 1,701.00 - 1,800.00 39.00 39.00 39.00 1,801.00 - 1,900.00 41.00 41.00 41.00 1,901.00 - 2,000.00 43.00 43.00 43.00 2,001 - 25,000 For each additional 1,000 or fraction, to and including 25,000 43.00 plus 7.40 43.00 plus 7.40 43.00 plus 7.40 25,001 - 50,000 For each additional 1,000 or fraction, to and including 50,000 218.35 plus 5.15 218.35 plus 5.15 218.35 plus 5.15 50,001 - 100,000 For each additional 1,000 or fraction, to and including 100,000 345.80 plus 3.85 345.80 plus 3.85 345.80 plus 3.85 100,001 and up For each additional 1,000 or fraction 537.80 plus 3.35 537.80 plus 3.35 537.80 plus 3.35 Plan Review Fee, Commercial (percentage of building permit fee)50% 50% 50% Plan Review Fee, Residential (percentage of building permit fee)10% 10% 10% Inspections outside of normal business hours* 75.00 75.00 75.00 Reinspection Fee* 50.00 50.00 50.00 Inspection for which no fee is specifically indicated* 50.00 50.00 50.00 Additional plan review required by changes, additions or revisions to approve plans (minimum charge, one hour)*100.00 100.00 100.00 *Or the hourly cost to the jurisdiction, whichever is greater. The cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of all the employees involved Contractor Registration - New and Renewal for Electrical, Mechanical, Plumbing, Sign, Soft Water, Mover and Wrecker 100.00 100.00 100.00 New Contractor Set up fee 100.00 100.00 100.00 Registration card - Electrical, Mechanical, Plumbing: Master or Journeyman 20.00 20.00 20.00 License: Mechanical, Plumbing, Soft Water - Master 50.00 50.00 50.00 License: Mechanical, Plumbing, Soft Water - Journeyman 25.00 25.00 25.00 License: Mechanical, Plumbing, Soft Water - Apprentice 0.00 0.00 0.00 Board of Appeals application: Building, Electrical, Mechanical, Plumbing 50.00 50.00 50.00 Board of Appeals - Review of Decision/Test Fees: Building, Electrical, Mechanical, Plumbing 50.00 50.00 50.00 Investigation Fee 50.00 or cost of permit 50.00 or cost of permit 50.00 or cost of permit Grand Island Study Session - 8/7/2018 Page 96 / 116 2017 2018 2019 Fee Schedule for 2019 Mobile Home Park Registration (annual) Park with Facilities for 2 - 3 Mobile Homes 100.00 100.00 100.00 Park with Facilities for 4 - 15 Mobile Homes 125.00 125.00 125.00 Park with Facilities for 16 - 25 Mobile Homes 150.00 150.00 150.00 Park with Facilities for 26 - 50 Mobile Homes 175.00 175.00 175.00 Park with Facilities for 51 - 100 Mobile Homes 225.00 225.00 225.00 Park with Facilities for over 100 Mobile Homes 250.00 250.00 250.00 Mobile Sign Permit Fee for Special Event N/C N/C 100.00 Mobile Sign Permit Fee for 45 days N/C N/C 150.00 Temporary Buildings N/C N/C 100.00 Water Well Registration (Groundwater Control Area Only)N/C N/C 50.00 License Agreement SEE PUBLIC SEE PUBLIC SEE PUBLIC Denial of application for license agreement WORKS WORKS WORKS EMERGENCY MANAGEMENT Alarm Registration Fee (yearly)110.00 110.00 110.00 Digital Alarm Monitoring Fee (yearly-registration fee included)275.00 275.00 275.00 False Alarms (each)115.00 115.00 115.00 Audio Tapes (per tape, includes search costs)28.00 28.00 28.00 Video Alarm Monitor 1750.00 1750.00 1750.00 Emergency Medical Dispatch Protocol included in billing 36.00 36.00 36.00 Alarm Activity Report Fee 10.00 10.00 10.00 FINANCE DEPARTMENT FEES Returned Check Charge (All City Departments) 50.00 50.00 50.00 FIRE DEPARTMENT FEES Gas leak calls that originate from Northwestern Energy which are found not to be an interior leak and with no threat to life or property 165.00 190.00/hr 190.00/hr Heavy rescue response (extrication)250.00/hr 250.00/hr Collision Response Fee (engine company)500.00/hr 500.00/hr False Alarm fee for commercial alarm systems of more than three in 12 consecutive months 165.00 165.00 165.00 Site inspection and fee for open burn 100.00 200.00 200.00 Special display fireworks permit fee 100.00 200.00 200.00 Pyrotechnics fee 200.00 200.00 200.00 Environmental site assessment fee 25.00 25.00 25.00 Inspection callback fee for code violation requiring three or more visits 50.00 50.00 50.00 Nuisance Engine company run fee 100.00 190.00 190.00 Copy of Fire Report 10.00 10.00 10.00 Open Burning Permits 10.00 10.00 10.00 Underground tank installation and/or closure fee per tank 75.00 75.00 75.00 Underground tank inspection (once every 3 years)200.00 200.00 Grand Island Study Session - 8/7/2018 Page 97 / 116 2017 2018 2019 Fee Schedule for 2019 Education Fees Fire Extinguisher Class 50.00 minimum (up to 5 students) + 10.00 for each additional student 50.00 minimum (up to 5 students) + 10.00 for each additional student 50.00 minimum (up to 5 students) + 10.00 for each additional student CPR BLS Health Care Provider New (per 6 people, books not included) Books are 12.00 each 184.00 184.00 184.00 CPR Class Recertification (per 6 people, books are not included) Books are 12.00 each 134.00 134.00 134.00 HeartSaver AED (per 6 people, books not included) Books are 12.00 each 151.00 151.00 151.00 CPR for family/friends: All ages (per 6 people, books not included) Books are 7.50/5 books 84.00 84.00 84.00 HeartSaver CPR, AED and First Aid (per 6 people, books not included) Books are 13.95 each 284.00 284.00 284.00 Temporary Structures Tents over 200 sq ft 50.00 100.00 100.00 Canopies over 400 sq ft 50.00 100.00 100.00 Child Care Inspection* Consultation N/A 50.00 50.00 0-8 people N/A 40.00 40.00 0-12 people 50.00 50.00 50.00 13 + people 100.00 75.00 75.00 Fire Department Patch Request Fee 5.00 5.00 5.00 Fire Safety Inspection Fees Major Event Life Safety Inspection Fee 100.00 per event 100.00 per event 100.00 per event State Fair Inspection Fee 1000.00/yr 1500.00/yr 1500.00/yr Hall County Fair Inspection Fee 250.00/yr 250.00/yr 250.00/yr Occupancy Use Permit Fee (once every three years) Refer to fire dept graduated scale Refer to fire dept graduated scale Liquor Inspection (each)* Consumption 100.00 100.00 100.00 Non-consumption 50.00 50.00 50.00 Hospital, Nursing Home, Health Care (each inspection)* 50 beds or less*50.00 50.00 51-100 beds* 100.00 100.00 100.00 101 or more beds* 150.00 150.00 150.00 Foster Care Homes* 50.00 40.00 40.00 Building Department Fee Blue Print Review, Commercial Fire Safety (each review)25% 50% 50% For duplicate building plans submitted within one (1) year of the review of the original plans 20% 20% 20% Alarm System Review 75.00 100.00 100.00 Sprinkler System Review $50.00/Riser +25.00/design area $100.00/Riser +50.00/design area $100.00/Riser +50.00/design area Hood System Review 50.00 100.00 100.00 Suppression System (other)50.00 100.00 100.00 Fireworks Permit 550.00 550.00 550.00 *Fees regulated by State of Nebraska Grand Island Study Session - 8/7/2018 Page 98 / 116 2017 2018 2019 Fee Schedule for 2019 Standby Fees Fire Engine//Rescue Company (3 employees + truck)190.00/hr 2 hour minimum 195.00/hr 2 hour minimum 195.00/hr 2 hour minimum Fire Safety Standby 75.00/hr 75.00/hr 75.00/hr Provide emergency services at planned event without Ambulance 75.00 per hour 2 hour minimum 75.00 per hour 2 hour minimum 75.00 per hour 2 hour minimum Ambulance (2 employees + ambulance)125.00 per hour 2 hour minimum 125.00 per hour 2 hour minimum 125.00 per hour 2 hour minimum AMBULANCE DIVISION Per call BLS (Basic Life Support) for non-emergency transportation, one way, 14.00 per mile 462.00 504.00 504.00 Per call for BLS emergency transportation, plus mileage, one way. 14.00 per mile 740.00 807.00 807.00 Per call for ALS (Advanced Life Support) Level 1 (ALS 1) non-emergency service, plus mileage. One way, 14.00 per mile 555.00 605.00 605.00 Per call for ALS Level 1 (ALS 1) emergency service, plus mileage, one way. 14.00 per mile 878.00 958.00 958.00 Per call for ALS Level 2 (ALS 2) Advanced care, emergency service, plus mileage, one way. 14.00 per mile 1271.00 1386.00 1386.00 Per call for ALS emergency service when patient is not transported but some service is rendered; (plus supplies)365.00 365.00 365.00 Additional Attendant 221.00 221.00 221.00 Specialty Care Transport 803.00 N/A N/A Mileage Fee, per patient mile 14.00 17.00 17.00 Lift Assist call to Care Facility 85.00 85.00 85.00 Transportation for Flight Crew from Airport to Hospital and Back 300.00 Per Round Trip 300.00 Per Round Trip 300.00 Per Round Trip Mayor and Council have established fees for certain medical supplies used for ambulance calls based on prices currently charged by Saint Francis Medical Center. The Fire Chief is authorized to adjust prices and add or delete products as necessary. PARAMEDIC SERVICE RATES Oxygen 53.00 53.00 53.00 O.B. Kits 17.00 17.00 17.00 Splints (air and/or hare traction)22.00 22.00 22.00 Spinal Immobilization 86.00 86.00 86.00 Advanced Airway 131.00 131.00 131.00 IV1 (if single IV is started)51.00 51.00 51.00 IV2 (multiple IV's started)86.00 86.00 86.00 Bandages 12.00 12.00 12.00 Combo Pad 46.00 46.00 46.00 Resq Pod 100.00 N/A N/A Bone drill 110.00 110.00 110.00 Suction 12.00 12.00 12.00 LIBRARY Overdue charge on Library Materials (per item per day).15 Juvenile .30 Adult .15 Juvenile .30 Adult .15 Juvenile .30 Adult Interlibrary loan per item (plus postage)2.00 2.00 2.00 Photocopy/Computer Print (mono, 8 1/2"x11" or 14")0.10 0.10 0.10 Photocopy/Computer Print (mono, 11"x17")0.25 0.25 0.25 Photocopy/Computer Print (color, 8 1/2"x11")0.75 0.75 0.75 Photocopy/Computer Print (color, 8 1/2"x14")1.00 1.00 1.00 Photocopy/Computer Print (color, 11"x17")1.50 1.50 1.50 Microform Reader-printer copy 0.50 0.50 0.50 Replacement Fee for Lost ID Card 1.00/card 1.00/card 1.00/card Processing Fee for Lost Material Replacement Cost Replacement Cost Replacement Cost Grand Island Study Session - 8/7/2018 Page 99 / 116 2017 2018 2019 Fee Schedule for 2019 FAX Services Outgoing - Staff assisted - U.S. only 1st page 3.00 1st page 3.00 1st page 3.00 additional pages 1.50 additional pages 1.50 additional pages 1.50 Incoming - Staff assisted 1st page 2.00 1st page 2.00 1st page 2.00 additional pages 1.00 additional pages 1.00 additional pages 1.00 Outgoing - Self service (Credit/Debit) - U.S. 1st page 1.75 1st page 1.75 1st page 1.75 additional pages 1.00 additional pages 1.00 additional pages 1.00 Outgoing - Self service (Credit/Debit) - International 1st page 3.95 1st page 3.95 1st page 3.95 additional pages 3.45 additional pages 3.45 additional pages 3.45 Non-Resident Annual Card Fee 40.00 40.00 40.00 Non Resident 3 Month Card Fee 10.00 10.00 10.00 Purchase of computer disk 1.00/disk N/A N/A Purchase of computer thumb drive 10.00 5.00 5.00 Purchase of computer head phones 1.00 1.00 1.00 PARKS AND RECREATION DEPARTMENT CEMETERY DIVISION Open/Close Grave (per burial) **oversize vault - add $150.00** Urn Vault over 16" x 16" - Add $50.00 Adult 700.00 750.00 750.00 Child 300.00 310.00 310.00 Ashes 250.00 260.00 260.00 Columbarium 200.00 205.00 205.00 Saturday Open/Close (per burial) Adult 800.00 850.00 850.00 Child 340.00 350.00 350.00 Ashes 285.00 300.00 300.00 Columbarium 230.00 235.00 235.00 Burial Space One 700.00 750.00 750.00 Two 1400.00 1500.00 1500.00 One-Half Lot (4 or 5 spaces)2800.00 3000.00 3000.00 Full Lot (8 or 10 spaces)5600.00 6000.00 6000.00 Babyland 150.00 155.00 155.00 Cremation Space - Section J 300.00 350.00 350.00 Transfer Deed (each new deed)50.00 50.00 50.00 Columbarium 12x12 Niche - Single 600.00 625.00 625.00 Columbarium 12x12 Niche - Double 800.00 825.00 825.00 Burial Space w/flat markers in Section J One 600.00 625.00 625.00 Two 1200.00 1250.00 1250.00 One-half lot (4-5 spaces)2400.00 2500.00 2500.00 Full lot (8-10 spaces)4800.00 5000.00 5000.00 Cremation Space 300.00 325.00 325.00 Headstone Flagging Fee 25.00 35.00 35.00 Grand Island Study Session - 8/7/2018 Page 100 / 116 2017 2018 2019 Fee Schedule for 2019 RECREATION DIVISION The Parks and Recreation Director shall establish fees for miscellaneous merchandise sales, tournament and league play and special events and promotions Sports Leagues/Tournaments - Per Team $100.00 - 550.00 per session $100.00 - 650.00 per session $100.00 - 650.00 per session Playground & miscellaneous Programs & camps 0-100.00 0-100.00 0-100.00 Kinder camp & Playground Pals 10.00 per participant 10.00 per participant 10.00 per participant Authorized Provider Red Cross Courses $25 - $200 $25 - $200 $25 - $200 Stolley Park Picnic Shelter (1/2 day)25.00 25.00 30.00 Stolley Park Picnic Shelter (all day)50.00 50.00 60.00 Stolley Park Kitchen (1/2 day)25.00 25.00 30.00 Stolley Park Kitchen (all day)50.00 50.00 60.00 Athletic Field Rental (per field)50.00 50.00 50.00 Athletic Field Preparation (1 time) per field 50.00 50.00 50.00 Athletic Field Preparation Additional services per field 25.00-200.00 25.00-200.00 25.00-200.00 Youth league per field per day 30.00 30.00 15.00 Adult/Select team league per field per day 50.00 50.00 35.00 Online reservation practice time per field 10.00/hour 10.00/hour 10.00/hour Soccer Recreational League Field Setup Fee per field 90.00 Soccer Select and Adult League Field Setup Fee per field 150.00 AQUATICS The Parks and Recreation Director shall establish fees for miscellaneous merchandise sales, tournament and league play and special events and promotions Lincoln Pool Daily Fees - ages 4 & under w/paying adult Free Free Free Daily Fees - ages 5 to 15 3.00 3.00 3.00 Daily Fees - ages 16 to 54 4.00 4.00 4.00 Daily Fees - ages 55 & Over 3.00 3.00 3.00 Lincoln Swimming Lessons per person/per session 30.00 30.00 30.00 Season Passes Ages 4 and under free free free Youth ages 5-15 40.00 40.00 40.00 Adult ages 16-54 50.00 50.00 50.00 Senior age 55+40.00 40.00 40.00 Single parent family 90.00 90.00 90.00 Family 115.00 115.00 115.00 Private Pool Rental 150.00 per hour 150.00 per hour 150.00 per hour Grand Island Study Session - 8/7/2018 Page 101 / 116 2017 2018 2019 Fee Schedule for 2019 WATER PARK Locker/Life Jacket Rental 2.00/daily 3.00 deposit or driver's license 2.00/daily 3.00 deposit or driver's license 2.00/daily 3.00 deposit or driver's license Inner Tube Rental - Single 3.00/daily 1.00 deposit 3.00/daily 1.00 deposit 3.00/daily 1.00 deposit Inner Tube Rental - Double 4.00/daily 1.00 deposit 4.00/daily 1.00 deposit 4.00/daily 1.00 deposit Daily Fees Children age 4 & under w/paying adult Free Free Free Children ages 5 to 15 7.00 7.00 7.00 Adults ages 16 to 54 8.00 8.00 8.00 Adults age 55 and over 7.00 7.00 7.00 Family One Day Pass (Family includes two adults and up to four children)24.00 24.00 24.00 Season Passes Children ages 5 to 15 75.00 75.00 75.00 Adults ages 16 to 54 85.00 85.00 85.00 Adults age 55 and over 75.00 75.00 75.00 Husband or Wife and Family 160.00 160.00 160.00 Family 190.00 190.00 190.00 Replace Season Pass 5.00 5.00 5.00 Gold Season Passes Children ages 5 - 15 95.00 95.00 95.00 Adults age 16 to 54 105.00 105.00 105.00 Adults age 55 and over 95.00 95.00 95.00 Husband or Wife and Family 200.00 200.00 200.00 Family 235.00 235.00 235.00 Group Fees - Age Group 10-29 people 5 to 15 6.75 6.75 6.75 10-29 people 16 to 54 7.75 7.75 7.75 10-29 people 55 and over 6.75 6.75 6.75 30-59 people 5 to 15 6.50 6.50 6.50 30-59 people 16 to 54 7.50 7.50 7.50 30-59 people 55 and over 6.50 6.50 6.50 60+ people 5 to 15 6.25 6.25 6.25 60+ people 16 to 54 7.25 7.25 7.25 60+ people 55 and over 6.25 6.25 6.25 Consignment Program - Island Oasis Age 5-15 5.50 5.50 5.50 Age 16-55 6.50 6.50 6.50 55 - Over 5.50 5.50 5.50 Family 22.00 22.00 22.00 Pool Rental 475.00/1 hr includes use of inner tubes 475.00/1 hr includes use of inner tubes 475.00/1 hr includes use of inner tubes All day facility rental 12:00 - 9:00 pm 15000.00 15000.00 15000.00 Swimming Lessons 30.00 per session 30.00 per session 30.00 per session Souvenir Stand items 1.00-20.00 1.00-20.00 1.00-20.00 Concession Stand Items .50-15.00 .50-15.00 .50-15.00 Grand Island Study Session - 8/7/2018 Page 102 / 116 2017 2018 2019 Fee Schedule for 2019 GOLF COURSE The Parks and Recreation Director shall establish fees for miscellaneous merchandise sales, tournament and league play and special events and promotions. Weekday Golfing 9 holes - Seniors 55 and older (weekdays & after 1:00 on weekends)13.50 14.00 14.00 18 holes - Seniors 55 and older (weekdays & after 1:00 on weekends)19.75 20.50 20.50 9 holes 15.50 16.00 16.00 Additional 9 holes weekdays 6.25 6.50 6.50 Additional 9 holes weekends 6.25 6.50 18 holes 21.75 22.50 22.50 Junior Golf-9 holes (weekdays & after 1:00 on weekends)10.50 11.00 11.00 Junior Golf-18 holes (weekdays & after 1:00 on weekends)16.75 17.50 17.50 Weekend/Holiday Golfing 9 holes weekend/holidays 17.75 18.50 18.50 18 holes weekend/holidays 24.00 25.00 25.00 Ages 15 and under w/ a paying adult 2.80 2.80 2.80 9 Hole Twilight Rate w/ cart 15.00 15.00 Passes (annual) Purchased from December 1 through January 31 Adult Seven Day 510.00 530.00 530.00 Additional Family Member 224.00 233.00 233.00 Family Pass 733.00 762.00 762.00 Adult Five Day Pass (Mon-Fri only)385.00 400.00 400.00 Junior/Student 7 day pass includes full time college students 161.00 192.00 192.00 Senior 7 Pass day (55 & older)296.00 333.00 333.00 Passes (annual) Purchased from February 1 through June 30 Adult Seven Day 567.00 590.00 590.00 Additional Family Member 250.00 260.00 260.00 Family Pass 816.00 849.00 849.00 Adult Five Day Pass (Mon-Fri only)426.00 443.00 443.00 Junior/Student 7 day pass includes full time college students 177.00 209.00 209.00 Senior 7 day Pass (55 & older)328.00 366.00 366.00 Golf Car Pass, per rider 495.00 515.00 515.00 Passes (annual) Purchased from July 1 through November 30 Adult Seven Day 283.00 295.00 295.00 Additional Family Member 125.00 130.00 130.00 Family Pass 408.00 424.00 424.00 Adult Five Day Pass (Mon-Fri only)213.00 222.00 222.00 Junior/Student 7 day pass includes full time college students 88.00 117.00 117.00 Senior 7 day Pass (55 & older)163.00 195.00 195.00 Golf Car Pass, per rider 258.00 258.00 Capital Maintenance Fee (included in daily green fee)(collected from each player per round played by an individual possessing a season pass)2.80 2.80 2.80 Cart Rental 9 holes, per rider 10.50 11.00 11.00 18 holes, per rider 15.50 16.00 16.00 Golf Cart Punch Cards - 9 holes 130.00 135.00 135.00 Golf Cart Punch Cards - 18 holes 203.00 211.00 211.00 Ages 15 and under w/ a paying adult No Cost No Cost No Cost Group Fees/Discount Booklets 25 - Rounds 442.00 460.00 460.00 50 - Rounds 832.00 865.00 865.00 Grand Island Study Session - 8/7/2018 Page 103 / 116 2017 2018 2019 Fee Schedule for 2019 Green Fee Discounts for large groups 25-49 people 5% 5% 5% 50-100 people 10% 10% 10% Over 100 people 15% 15% 15% HEARTLAND PUBLIC SHOOTING PARK The Parks & Recreation Director shall establish fees for miscellaneous merchandise sales, tournament and league play and special events and promotions. Archery (Adult) Practice range 5.00 7.50 7.50 Archery (Youth) Practice range 2.50 5.00 5.00 Archery (Adult) 3D Short Course 15.00 15.00 15.00 Archery (Adult) 3D Long Course 20.00 20.00 Archery (Youth) 3D Short Course 8.00 8.00 8.00 Archery (Youth) 3D Long Course 10.00 10.00 Archery Family Annual Pass 225.00 225.00 225.00 Archery Adult Annual Pass 130.00 130.00 130.00 Archery Youth Annual Pass 70.00 70.00 70.00 Archery Punch Card: 6 visits short course 75.00 75.00 Archery Punch Card: 6 visits long course 100.00 100.00 Adult Skeet/trap per round (25 targets/round) 6.50 6.75 6.75 Skeet/Trap - Youth Rate (age 18 & under) 5.00 5.25 5.25 Skeet/Trap Punch Card rate - 12 rounds @ 6.06/round 72.75 75.75 75.75 Adult Sporting Clays per round (50 targets/round) 18.50 19.00 19.00 Adult Sporting Clays per round (100 targets/round) 33.50 34.50 34.50 Sporting Clays - Punch Card rate - 6 rounds @ 16.67/round 100.00 103.00 103.00 Youth Sporting Clays per round (50 target/round)13.50 14.00 14.00 Youth Sporting Clays per round (100 target/round)27.00 28.00 28.00 Counters - Trap/Skeet (per target)0.20 0.21 0.21 Counters - Sporting clays (per target)0.30 0.31 0.31 Adults 5 Stand per round (25 targets/round)7.25 7.50 7.50 Youth 5 Stand per round (25 targets/round)5.25 5.50 5.50 Daily fee Rifle/Handgun Adult per hour 11.00 12.00 12.00 Daily fee Rifle/Handgun Adult per day 15.00 15.00 Daily fee Rifle/Handgun Youth per day 6.00 7.50 7.50 3D Archery Short Range Punch Card (6 days)51.00 75.00 75.00 3D Archery Long Range Punch Cards (6 days)100.00 100.00 Family Pass Rifle/Handgun (12 months)175.00 195.00 195.00 Rifle Range Rental w/o RSO (Law Enforcement per day)100.00 105.00 105.00 Rifle Range Rental with RSO (Law Enforcement per day)200.00 210.00 210.00 Rifle Range Rental w/o RSO (Business Rate per day)500.00 525.00 525.00 Rifle Range Rental with RSO (Business Rate per day)600.00 630.00 630.00 Golf Cart Rental per round (per rider)5.00 7.00 7.00 Golf Cart Rental per half day 25.00 25.00 25.00 Golf Cart Rental per day (4 rider limit)50.00 50.00 50.00 Range time for Instructors with staff 5 per student minimum charge 20.00 21.00 21.00 Range time for Instructors without staff per student with no minimum 15.00 15.75 15.75 Classroom Rental (Shooting Sports Educational per day)100.00 105.00 105.00 Classroom Rental (Business Rate per day)200.00 210.00 210.00 Classroom Rental with associated shooting event N/C N/C N/C Camping with electricity/water (per night)30.00 35.00 35.00 Camping during events (per night)45.00 45.00 Camping for Youth no water/electricty (per night)5.00 5.00 Camping no water/electricity (per night)5.00 10.00 10.00 Off hours Law enforcement training (annual)1700.00 1785.00 1785.00 High School team practice (per target)0.14 0.15 0.15 **HPSP reserves the right to adjust trap, skeet and sporting clay fee's in relation to clay target costs** Grand Island Study Session - 8/7/2018 Page 104 / 116 2017 2018 2019 Fee Schedule for 2019 Stolley Park Train Individual Rates Ages 1 2 and under w/paying adult Free Free Free Ages 2 & 3 w/paying adult 1.00 1.00 Single rider (3 and over)2.00 2.00 3.00 10 Ride Punch Card (savings of 2.50)17.50 17.50 17.50 25 Ride Punch Card (savings of 12.50)37.50 37.50 37.50 50 Ride Punch Card (savings of 37.50)62.50 62.50 62.50 Unlimited rides 100.00/hour 100.00/hour 100.00/hour Halloween/Christmas Train Ride Special Event Train Ride 3.00 3.00 4.00 Group Rates 10 to 24 Riders 1.75 each 1.75 each 1.75 each 25 - 49 Riders 1.50 each 1.50 each 1.50 each 50 + Riders 1.25 each 1.25 each 1.25 each Community Fieldhouse Admission & Rental Prices Drop In: Children under 2 Free Free Free Children (2-4)2.00 2.00 2.00 Youth (5-15) & Seniors (55 & older)4.00 4.00 4.00 Adults (16-54)6.00 6.00 6.00 Student Pass (Ages 16 and over w/student ID)5.00 5.00 5.00 City League Families "Game Night" & Before 5 pm Mon - Fri Children under 2 Free Free Free Children (2-4)1.00 1.00 1.00 Youth (5-18) & Seniors (55 & older)3.00 3.00 3.00 Student Pass (Ages 16 and over w/student ID)4.00 4.00 4.00 Adults 5.00 5.00 5.00 (use of entire facility as long as area not previously reserved) Rental (Hourly) Full Turf Field (Primary hours)110.00 110.00 110.00 Full Turf Field (Non primary hours) M-F 2:00 pm-5:00 pm Sat 8:00 - 12:00 80.00 82.00 82.00 Full Turf Field Tournament (6 hour minimum)70.00/hr 72.00/hr 72.00/hr Half Turf Field (Primary hours)60.00 60.00 60.00 Half Turf Field Tournament (6 hour minimum)35.00/hr 39.00/hr 39.00/hr Half Turf Field (Non primary hours) M-F 2:00 pm-5:00 pm Sat 8:00-12:00 40.00 45.00 45.00 Basketball Court (Primary hours)30.00 30.00 30.00 Basketball Court (Non primary hours) M-F 2:00 pm-5:00 pm Sat 8:00-12:00 20.00 22.00 22.00 Basketball Court Tournament (6 hour minimum)15.00/hr 19.00/hr 19.00/hr Volleyball Court (Primary hours)20.00 20.00 20.00 Volleyball Court (Non primary hours) M-F 2:00 pm-5:00 pm Sat 8:00-12:00 15.00 15.00 15.00 Volleyball Court Tournament (6 hour minimum)10.00/hr 13.00/hr 13.00/hr Batting Cage Rental Hour 25.00 25.00 25.00 League Fees: Per Individual Leagues 15.00-120.00 15.00-120.00 15.00-120.00 Per Team Leagues 100.00-600.00 100.00-650.00 100.00-650.00 Small meeting room 15.00/hr 15.00/hr 15.00/hr Kitchen/large room 30.00/hour 30.00/hour 30.00/hour Birthday Party pkg 80.00-250.00 80.00-250.00 80.00-250.00 Bouncer rental for group of up to 20 ($3.00 per additional child)20.00/hour 20.00/hour 20.00/hour Facility rental (before or after hours)150.00/hour 150.00/hour 150.00/hour Overnight Lock in Package 600.00 600.00 600.00 Clinics/camps/tournaments 10.00 - 600.00 10.00 - 600.00 10.00 - 600.00 Grand Island Study Session - 8/7/2018 Page 105 / 116 2017 2018 2019 Fee Schedule for 2019 Season Passes for Fieldhouse (October thru April) Toddler Pass (ages 2-4)46.00 46.00 46.00 Youth Pass (5-15)70.00 70.00 70.00 Student Pass (Ages 16 and over w/student ID)92.00 92.00 92.00 Adult Pass (16-54)115.00 115.00 115.00 Senior (55+)70.00 70.00 70.00 Season Passes for Fieldhouse (January thru April) Toddler Pass (ages 2-4)29.00 29.00 29.00 Youth Pass (ages 5-15)41.00 41.00 41.00 Student Pass (ages 16 and over w/student ID)52.00 52.00 52.00 Adult Pass (ages 16-54)64.00 64.00 64.00 Senior (55+)41.00 41.00 41.00 10 Visit Punch Card Toddler (age 2-4) with a supervising adult Free Free Youth (age 5-15)35.00 35.00 35.00 Student (ages 16 and over w/student ID)45.00 45.00 45.00 Adult (ages 16-54)55.00 55.00 55.00 Senior (age 55+)35.00 35.00 35.00 Planning Zoning Zoning Map Amendment: Grand Island 800.00 850.00 850.00 Ordinance Amendment 800.00 850.00 850.00 CD, RD, TD Rezoning, Grand Island 800.00 850.00 850.00 Subdivisions Preliminary Plat 400.00 plus 15.00/lot 400.00 plus 15.00/lot 400.00 plus 15.00/lot Final Plat - Administrative Approval Grand Island 50.00 50.00 50.00 Final Plat Grand Island Jurisdiction 420.00 plus 10.00/lot 420.00 plus 10.00/lot 420.00 plus 10.00/lot Vacation of Plat 250.00 250.00 250.00 Lots more than 10 acres Comprehensive Plan Map Amendment 800.00 850.00 850.00 Text Amendment 800.00 850.00 850.00 Publications Grand Island Street Directory 15.00 15.00 15.00 Comprehensive Plan Grand Island 85.00 85.00 85.00 Other Municipalities 60.00 60.00 60.00 Zoning Ordinances Grand Island 30.00 30.00 30.00 Other Municipalities 30.00 30.00 30.00 Subdivision regulations Grand Island 20.00 30.00 30.00 Other Municipalities 20.00 30.00 30.00 Grand Island 800 Scale Zoning Map Unassembled 125.00 125.00 125.00 Generalized Zoning Map 60.00 60.00 60.00 Future Land Use Map 60.00 60.00 60.00 Grand Island Street Map 15.00 15.00 15.00 Hall County Zoning Map Generalized 60.00 60.00 60.00 Zoning Map 2" = 1 mile 90.00 90.00 90.00 Road Map 15.00 15.00 15.00 Wood River, Cairo, Doniphan, Alda Basemap 10.00 10.00 10.00 Zoning Map 60.00 60.00 60.00 Grand Island Study Session - 8/7/2018 Page 106 / 116 2017 2018 2019 Fee Schedule for 2019 Other Maps School District Maps 60.00 60.00 60.00 Election District Maps 60.00 60.00 60.00 Fire District Maps 60.00 60.00 60.00 Custom Printed Maps 15.00/sq ft in 15.00/sq ft in 15.00/sq ft in Electronic Publications GIS Data CD 100.00 100.00 100.00 Aerial Photograph CD (MrSID Format)100.00 100.00 100.00 Comprehensive Plans All Jurisdictions 100.00 100.00 100.00 Zoning and Subdivision Regulations All Jurisdictions 50.00 50.00 50.00 Custom PDF Map 25.00/ 1/2 hr 25.00/ 1/2 hr 25.00/ 1/2 hr Research & Documentation Fee 150.00/hr Minimum 2 hr 150.00/hr Minimum 2 hr 150.00/hr Minimum 2 hr Flood Plain Letter of Map Interpretation 20.00 20.00 20.00 Review and Submission of LOMR 50.00 50.00 50.00 POLICE DEPARTMENT Copy of Public Record Reports/Walk in 2.00/1-5 pages, 1.00 each add'l 5 pages in 5 page increments 3.00/1-5 pages, 1.00 each add'l 5 pages in 5 page increments 3.00/1-5 pages, 1.00 each add'l 5 pages in 5 page increments Copy of Public Record Reports/Mail or Fax 4.00/1-5 pages, 1.00 for each add'l 5 pages in 5 page increments 5.00/1-5 pages, 1.00 for each add'l 5 pages in 5 page increments 5.00/1-5 pages, 1.00 for each add'l 5 pages in 5 page increments Copy of Complete Records Mail/Fax/Email 5.00/ 1-5 pages, 1.00 for each add'l 5 pages in 5 page increments 5.00/ 1-5 pages, 1.00 for each add'l 5 pages in 5 page increments Firearms Permit 5.00 5.00 5.00 Towing Fee - Day Actual Cost Actual Cost Actual Cost Towing Fee - Night Actual Cost Actual Cost Actual Cost Impoundment Fee for TOWED Vehicle 30.00 30.00 30.00 Storage Fee for Impounded Vehicle (per day)10.00 10.00 11.00 Alcohol Test for DUI (each time)149.15 149.15 149.15 Solicitor's Permit (30 day permit) 25.00 25.00 25.00 Solicitor's Permit - Application Fee (Nonrefundable)25.00 25.00 25.00 Street Vendor's Permit - Application Fee (Nonrefundable)25.00 25.00 25.00 Street Vendor's Permit - 30 days 25.00 25.00 25.00 Street Vendor's Permit - 90 days 60.00 60.00 60.00 Street Vendor's Permit - 365 days 200.00 200.00 200.00 Traffic Control Request for House/Building Move within City Limits of Grand Island Overtime Retail Rate for each Officer involved, 2 hr minimum Overtime Retail Rate for each Officer involved, 2 hr minimum Parking Ramp Permit Fees: Lower Level: "Reserved Monthly" 25.00/month 25.00/month 25.00/month Middle & Upper levels: "Reserved Monthly" 15.00/month 15.00/month 15.00/month Downtown Metered Parking 20.00 per 120 to 180 minutes 20.00 per 120 to 180 minutes 20.00 per 120 to 180 minutes Additional 60 minutes or fraction thereof 20.00 20.00 20.00 Downtown Express Zone Parking 25.00 per 21 to 40 minutes 25.00 per 21 to 40 minutes 25.00 per 21 to 40 minutes Additional 20 minutes or fraction thereof 25.00 25.00 25.00 Police Issued Parking Tickets (tickets issued away from downtown)20.00 20.00 20.00 Vehicle Auction Bid Fee (per event)10.00 10.00 10.00 Photographs/E-mail 10.00 10.00 10.00 Photographs/CD 15.00 15.00 15.00 Grand Island Study Session - 8/7/2018 Page 107 / 116 2017 2018 2019 Fee Schedule for 2019 PUBLIC INFORMATION GITV DVD (per segment)25.00 25.00 25.00 PUBLIC WORKS DEPARTMENT ENGINEERING Cut and/or Opening Permit 20.00 20.00 20.00 Sidewalk and/or Driveway permit 20.00 20.00 20.00 Sewer Tap Permit (Breakdown: PW 28.90, Building 56.10)85.00 85.00 85.00 GIS CD Aerial photos on CD or DVD 50.00 50.00 50.00 s.f. Paper Prints s.f. Mylar Sepia 2.25 2.25 2.25 Traffic Count Map 10.00 10.00 10.00 Aerial Photos - Individuals, businesses and consultants working for profit 3.50/sq. ft. 3.50/sq. ft. 3.50/sq. ft. Aerial Photos - City Depts, Hall County Depts, other non-profit organizations .50/sf .50/sf .50/sf Directory Map Planning sells Planning sells Planning sells Quarter Section or any part thereof 5.00 5.00 5.00 Photo Mosaic (dependent upon number of sections) Minimum of two (2)15.00 15.00 15.00 License Agreement Application (Non-refundable)125.00 175.00 175.00 License Agreement Appeal 75.00 100.00 100.00 Sanitary Sewer Engineering Plan Review 1% of project cost 1% of project cost Storm Sewer Engineering Plan Review (if no paving in project)1% of project cost 1% of project cost Paving Engineering Plan Review 50.00 plus 0.07 per ft based on project length 0.15% of project cost 0.15% of project cost Large copy prints (minimum $3.00 charge).50/sf 1.00/sf 1.00/sf Application for vacation of Right-of-Way or Easement (Non-refundable)125.00 175.00 175.00 Investigation Fee (per Section 30-28 of City Code)85.00 100.00 100.00 Late Charge (payment not received within 30 days)35.00 35.00 STREETS DIVISION Pavement cut (sawed), whether bituminous or concrete 5.50/lf + 30.00 callout 5.50/lf + 30.00 callout 5.50/lf + 30.00 callout Curb section milling for driveways 9.00/lf + 40.00 callout & permits 9.00/lf + 40.00 callout & permits 9.00/lf + 40.00 callout & permits Block party closure (waived for "National Night Out")75.00 75.00 Public Event Closure- per day/event 75.00 Rolloff/Shipping Container Placement in Public Right-of-Way 25.00 per week, or any part thereof Storm Sewer Cleaning 250.00/hr 250.00/hr 250.00/hr WASTEWATER TREATMENT (as Approved by Ordinance) Sewer Tap Permit (See engineering fees) Unauthorized connections/re-connections 375.00 375.00 375.00 Sewer Service Charge per month 8.24 8.24 8.24 Monthly sewer bill for customers without metered water usage 19.84 30.00 30.00 Monthly sewer bill for commercial/industrial customers without metered City water (cost per 100 cubic feet of sewage flow)3.5200 3.5200 3.5200 TV Inspection of Sanitary Sewer (minimum $100.00 charge)1.00/ft 1.25/ft 1.25/ft TV Inspection of Sanitary Sewer Service Line (minimum 1 hour) -Televising Equipment 200.00/hr 200.00/hr 200.00/hr -Sanitary Sewer Collection Crew (2 employees)80.00/hr 80.00/hr 80.00/hr Sewer Cleaning 250.00/hr 250.00/hr 250.00/hr SEPTIC TANK CHARGES Charges for Septic Tank Sludge minimum fee 8.40 8.40 8.40 Charges for Septic Tank Sludge per 100 gallons 7.40 7.40 7.40 Charges for High Strength Septic Sludge per 1,000 gallons 420.00 420.00 420.00 Grand Island Study Session - 8/7/2018 Page 108 / 116 2017 2018 2019 Fee Schedule for 2019 FLOW CHARGES (Changes effective 1-1-2012) * Cost per 100 Cubic feet of Flow (customers discharging directly into City's Treatment Plant)1.1800 1.1800 1.1800 Cost per 100 Cubic feet of Flow (customers using City's collection system)3.5200 3.5200 3.5200 Cost per 100 Cubic feet of Flow (low strength customers using City's collection system)2.4700 2.4700 2.4700 Non-resident wastewater customers shall be charged 120% of the above flow charges 120% 120% 120% INDUSTRIAL WASTE SURCHARGES BOD Charge $/lb over 250 mg/l 0.3248 0.3248 0.3248 SS Charge $/lb over 250 mg/l 0.2177 0.2177 0.2177 Oil & Grease $/lb over 100 mg/l 0.1519 0.1519 0.1519 Total Kjeldahl Nitrogen (TKN) ($/lb over 30 mg/l)0.0395 0.0395 0.0395 Ammonia (over 30 mg/l) Nitrates (over 25 mg/l)1.0299 1.0299 1.0299 BULK INDUSTRIAL WASTE DISCHARGE (per gallon) [negotiated]0.062 0.062 0.062 SUMP PUMP WASTE DISPOSAL (per gallon)0.19 0.19 0.19 LABORATORY ANALYSIS BOD 36.96 40.00 40.00 CBOD 36.96 40.00 40.00 Chloride 12.32 15.00 15.00 Conductivity 9.24 9.24 9.24 Nitrogen, Ammonia 11.09 12.00 12.00 Nitrogen, TKN 16.63 26.00 26.00 Oil and Grease 61.60 75.00 75.00 pH 6.16 10.00 10.00 Total Suspended Solids 24.64 24.64 24.64 Alkalinity 12.32 12.32 12.32 Chlorine, Free 12.32 12.32 12.32 COD 55.44 55.44 55.44 Nitrogen, Nitrate 24.64 24.64 24.64 Phosphorus, Total 24.64 24.64 24.64 SAMPLE COLLECTION FEE 36.96 40.00 40.00 Grand Island Study Session - 8/7/2018 Page 109 / 116 2017 2018 2019 Fee Schedule for 2019 LOW STRENGTH INDUSTRIAL SERVICE FOUR-PART CHARGES BOD Charge ($/lb over 0 mg/l)0.3248 0.3248 0.3248 SS Charge ($/lb over 0 mg/l)0.2177 0.2177 0.2177 Oil & Grease ($/lb over 0 mg/l)0.1519 0.1519 0.1519 Total Kjeldahl Nitrogen (TKN) ($/lb over 30 mg/l)0.0395 0.0395 0.0395 Nitrates (over 25 mg/l)1.0299 1.0299 1.0299 EXCESSIVE POLLUTANT PENALTY If a person discharges amounts of permissible pollutants in excess of the amounts permitted in the discharge permit, a penalty of $1,000.00 per day of violation shall be imposed and paid by the person discharging wastes in violation of the permit 1,000.00 1,000.00 1,000.00 HYDROGEN SULFIDE CHARGES SOLID WASTE Minimum Charge (Landfill) (up to 280 pounds)5.00 5.00 5.00 Minimum Charge (Transfer Station) (up to 240 pounds)5.00 5.00 5.00 Passenger tire 3.25/tire 3.25/tire 3.25/tire Passenger tire on rim 13.25/tire 13.25/tire 13.25/tire Truck tire 10.00/tire 10.00/tire 10.00/tire Truck tire on rim 25.00/tire 25.00/tire 25.00/tire Implement tire 25.00/tire 25.00/tire 25.00/tire Implement tire on rim 50.00/tire 50.00/tire 50.00/tire Special Waste (as designated by Superintendent)* Fee set by Superintendent based on product received Double the applicable rate Double the applicable rate Double the applicable rate Drive Off Fees 25.00 25.00 25.00 Appliances 10.00 10.00 10.00 Special Event Actual costs Actual costs Actual costs LANDFILL SITE Asbestos, contaminated soils and other wastes requiring special handling may require Nebraska Department of Environmental Quality pre-approval and notification to landfill. General Refuse, solid waste (Residential Packer Truck)28.33/ton 29.46/ton 29.46/ton General Refuse, solid waste-+ and demolition material (Commercial/Rolloffs)32.14/ton 33.43/ton 33.43/ton Petroleum Contaminated Soil 15.45/ton 16.07/ton 16.07/ton Street Sweepings 4.12/ton 4.29/ton 4.29/ton Liquid waste not accepted not accepted not accepted Friable Asbestos 87.55/ton 1 ton minimum 91.05/ton 1 ton minimum 91.05/ton 1 ton minimum Tails & by-products 35.43/ton 36.85/ton 36.85/ton Automotive Fluff 20.60/ton 21.43/ton 21.43/ton Late load fee 25.00/load 25.00/load 25.00/load Set pricing for special projects with the approval of the Public Works Director and City Administrator Uncovered Load 10.00/load 10.00/load TRANSFER STATION General Refuse, solid waste (Residential Packer Truck)30.75/ton 31.98/ton 31.98/ton General refuse, solid waste and demolition materials (Commercial/roll-offs and small vehicles)38.21/ton 39.74/ton 39.74/ton Uncovered Load 10.00/load 10.00/load Grand Island Study Session - 8/7/2018 Page 110 / 116 2017 2018 2019 Fee Schedule for 2019 COMPOST SITE All materials received at the compost site shall be clean of trash and debris. Plastic bags shall be removed by the hauler Grand Island Primary Residential Dwellings - clean grass, leaves or other compostable yard and garden waste, tree limbs/branches No Charge No Charge No Charge Commercial Hauler Yard Waste - clean grass, leaves or other Compostable yard and garden waste 38.21/ton 39.74/ton 39.74/ton Commercial Hauler - tree limbs/branches 38.21/ton 39.74/ton 39.74/ton Compost 5.00/cy 10.00/cy 10.00/cy Wood chips/mulch 1.50/cy 3.00/cy 3.00/cy UTILITY SERVICE FEES Late Charge (charged after the due date of the current bill) 2.00/plus 1% unpaid over 5.00 2.00/plus 1% unpaid over 5.00 2.00/plus 1% unpaid over 5.00 Return Check Charge 50.00 50.00 50.00 Turn on Charge (electric and water for any reason)50.00 50.00 50.00 Disconnect fee (electric and water for any reason)50.00 50.00 50.00 Backflow Processing Fee 2.00/month 2.00/month 2.00/month Temporary Commercial Electric Service 150.00 150.00 150.00 Service Charge (new connections, transfer service)20.00 20.00 20.00 Fire Sprinkler System Connection Fee 127.50/yr 127.50/yr 127.50/yr Temporary Water Meter on Fire Hydrant 100.00 100.00 100.00 Locate Stop Box 40.00 40.00 40.00 Pole Attachment Fee 6.00/yr 6.00/yr 6.00/yr Bill and collect Sewer (monthly charge)10450.00 10450.00 10450.00 Unauthorized connections/re-connections, meter tampering 375.00 375.00 375.00 Engineering Plan Review 1% Project Cost 1% Project Cost 1% Project Cost Water Main Taps - 2" or less 125.00 125.00 125.00 Grand Island Study Session - 8/7/2018 Page 111 / 116 City of Grand Island Tuesday, August 7, 2018 Study Session Item -6 Review Full Time Equivalents (FTE) and Salary Adjustments – Non-Union Staff Contact: Marlan Ferguson Grand Island Study Session - 8/7/2018 Page 112 / 116 Council Agenda Memo From:Marlan Ferguson, City Administrator Meeting:August 7, 2018 Subject:2019 FTE Changes, Salary Review, and Hiring Practices Presenter(s):Aaron Schmid, Human Resources Director Marlan Ferguson, City Administrator Background A Salary Ordinance is presented each year as a part of the budget process. Wages for City employees are presented to the City Council for approval in the form of a salary ordinance. Some wages are set as a part of negotiated labor agreements and others through salary surveys that are conducted. The Salary Ordinance will be presented at a later date, however tonight we will discuss salaries as well as FTE’s. Discussion Wage changes presented in here are for bargaining units according to their respective labor agreements and negotiated wages and included changes to the non-union positions. The following information shows the average increases for each respective group. The averages are based on movement at the top step of the pay scale. Furthermore, some positions were higher and lower than the average. FOP Labor Agreement will increase on average by 2.5% AFSCME Labor Agreement will increase on average by 3% IAFF Labor Agreement will increase on an average by 0% IBEW Finance Labor Agreement will increase on an average by 3% IBEW Service/Clerical Labor Agreement will increase on an average by 3% IBEW Utilities Labor Agreement will increase on an average by 3% IBEW WWT Labor Agreement will increase on an average by 3% Non-Union will increase on an average by 1.5% plus 1.5% increase in retirement compensation. The wages represented here are included in the proposed 2018/2019 fiscal year budget. Full Time Equivalents (FTE’s) are also part of the budgeting process. Administration is proposing the FTE increases based on needs and request from Council members. (See Grand Island Study Session - 8/7/2018 Page 113 / 116 Attachment) These include one Office Clerk at the Heartland Shooting Park, one full time and three seasonal Maintenance Workers for the New Veterans Sports Complex, four (4) part time Airport Police Officers, and authorizing two additional sworn police officers utilizing the COPS Grant. Administration is currently in the process of developing a lateral transfer program for the Police Department. This program will assist in expediting the hiring process of certified Officers. Recommendation It is recommended that offsetting reductions in the General Fund are made to compensate for these increased FTE’s or additional funding is such as any increase in property tax based on increase in valuations. Since this is a study session no action will be taken on this item. Any necessary action will come at a later City Council Session. Grand Island Study Session - 8/7/2018 Page 114 / 116 Full Time Equivalent Increase 2019 Airport Police Officers: We currently receive reimbursement from the airport at $30 per hour. Our actual average costs, covering flights with on-duty personnel as we currently do, is estimated to be $35.29 per hour. We billed 1414 hours in calendar year 2017 resulting in $42,420. Our cost based on our estimates with 1414 hours was $49,900. The Airport Authority gets reimbursed $20.00 per hour from the FAA and adds the addition $10.00 per hour based on our agreement. The estimated time does not include time the officer needs to wrap up current activity in time to be at the airport. The positive is that it allows and forces us to have a presence on the Airport property which is inside the City limits. Using part time officers the start-up cost for year one would be about $33.58 per hour. We would need at least four part time staff to cover the flights. An officer that has been retired or resigned for two or more years and hasn’t been working in law enforcement during that time, their certification with the state expires. This would require all of those employees to go through a process called Reactivation, which wouldn’t mean attending the training center for 15 weeks, but it would take a process of about three to four weeks, possibly at a cost to us. Part time law enforcement officers are also still required to have the 20+ hours of continuing education per year that a full time officer has. We recommend using part time non-union Police Officers if available beginning January 1, 2019 following the renewal of the agreement with the Airport Authority. We would anticipate asking for an increase in funding to better match our costs. Police Department Staffing Level: Much has been said about the reduction of two officers from last year. I don’t believe that had as much of an impact on the community as not having authorized positions filled which is a management issue we hope to address. Typically, the police department has two or three open spots at any given time due to turnover. They also tend to have a couple of officers either going through the police academy or in field training as a new officer. Also, there tends to be at least one officer on light duty because of injury. So, if you add that up, that is 6 or 7 officers not on the street. We can’t predict loosing officers to other agencies or leaving the Department for various reasons, but we can generally predict the retirement of officers. You could look at it as two funds, the operational fund and the authorized fund. If we authorize 87 sworn officers we would hope to have at least 85 on the payroll at any given time. The other issues that hinder timely hires is the Civil Service testing and getting new hires in the academy. These are things the management team is Grand Island Study Session - 8/7/2018 Page 115 / 116 addressing. Lateral Transfers might be a way to get officers on the street sooner and the Staff has drafted a program for that. Grand Island Police Department Lateral Transfer Hiring Program: Description: The Grand Island Police Department Lateral Transfer Program is a program intended to attract applicants with law enforcement certification for employment with the Grand Island Police Department by providing them incentive in adjusting the administration of wages based on years of law enforcement experience. This program applies to applicants with Nebraska Law Enforcement Certification or an equivalent law enforcement certification from another state that would alleviate the need for full Nebraska Law Enforcement Training Center attendance. These applicants will hereafter be referred to as ‘Certified’. Requirements: Certified applicants are required to complete all phases of the testing and hiring process the same as all other applicants, and will not receive preference in the civil service process. Proof of certification and years of service will be required. Scope: The Grand Island Police Department’s Lateral Transfer Program applies to the administration of wages, and does not apply toward retirement, benefits, or issues of seniority within the agency; with the exception of experience for purpose of promotion. Consideration will be made for certified applicants at the time of hire. Application of the lateral transfer program will be made at the time of hire in the following manner: Lateral Transfer Benefit: Two options are being considered in regards to starting salaries. 1)Will be based on years of law enforcement experience taking into consideration the size of the previous agency. 2)Will be started in the first pay step equal to or above their last rate of pay at their most recent sworn law enforcement position. Additional compensation for specialized training may be considered at the time of hiring. HEARTLAND SHOOTING PARK: The proposal is to add one full time office clerk. PARKS AND RECREATION: With the new Veterans Sports Complex being completed for the spring activities additional maintenance staff will be required. We are proposing one full time and three seasonal employees to handle Grand Island Study Session - 8/7/2018 Page 116 / 116