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08-28-2018 City Council Regular Meeting Packet City of Grand Island Tuesday, August 28, 2018 Council Session Packet City Council: Linna Dee Donaldson Michelle Fitzke Chuck Haase Julie Hehnke Jeremy Jones Vaughn Minton Mitchell Nickerson Mike Paulick Roger Steele Mark Stelk Mayor: Jeremy L. Jensen City Administrator: Marlan Ferguson City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East 1st Street, Grand Island, NE 68801 Grand Island Council Session - 8/28/2018 Page 1 / 202 City of Grand Island Tuesday, August 28, 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 - Pastor Dick Birr, New Life Community Church, 301 West 2nd Street 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 Council Session - 8/28/2018 Page 2 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item E-1 Public Hearing to Vacate Prairie Commons Subdivision Council action will take place under Ordinances item F-1. Staff Contact: Chad Nabity Grand Island Council Session - 8/28/2018 Page 3 / 202 Council Agenda Memo From:Regional Planning Commission Meeting:August 28, 2018 Subject:Request to Vacate Prairie Commons Subdivision Presenter(s):Chad Nabity AICP, Regional Planning Director Background The owners of Prairie Commons Subdivision have requested that the City vacate the Prairie Commons Subdivision to aid the replatting and approval of Prairie Commons Second Subdivision. Prairie Commons Subdivision, approved on August 23, 2016. This is the site of the new hospital and associated development at the southwest corner of U.S. Highway 281 and Husker Highway. Discussion This request was made to facilitate the replatting of this property into Prairie Commons Second Subdivision. Vacating and replatting these lots and easements resolve issues with public utilities and utility services as they were installed. It will not create any conflicts with installed utilities or approved streets. New easements and right of way will be dedicated for streets and utilities with the approval of Prairie Commons Second Subdivision on the agenda at this meeting. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Grand Island Council Session - 8/28/2018 Page 4 / 202 Recommendation City Administration recommends that the Council approve the ordinance to vacate Prairie Commons Subdivision as requested. Sample Motion Move to approve as recommended. Grand Island Council Session - 8/28/2018 Page 5 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item E-2 Public Hearing on Request to Rezone Property located South of Capital Avenue and East of Beal Street and North of the Intersection of 12th Street and Lambert Street from R2-Low Density Residential to R3-SL (The Orchard, LLC.) Council action will take place under Ordinances item F-4. Staff Contact: Chad Nabity Grand Island Council Session - 8/28/2018 Page 6 / 202 Council Agenda Memo From:Regional Planning Commission Meeting:August 28, 2018 Subject:Rezone from R-2 Low Density Residential and LLR Large Lot Residential to R-3SL Medium Density Residential Small Lot Presenter(s):Chad Nabity AICP, Regional Planning Director Background The request is to rezone approximately 25 acres of land south of Capital Avenue and the outfall ditch and west of the Ord Line Railroad operated by Central Nebraska Railroad. The property is located in the City of Grand Island. The applicant is asking that the zoning on this property be changed from R-2-Low Density Residential Zone and LLR Large Lot Residential to R-3SL Medium Density Residential Small Lot. This is an extension of the R-3SL zoning district that was approved on the north side of the outfall ditch last year. A small portion of this property is currently zoned LLR and it is the east end of small farmettes that front onto St. Paul Road almost ¼ mile to the west. The proposed development would allow a combination of townhomes and row houses to be developed on this site and provide for potential development of the property between St. Paul Road and western edge of this development on the south side of the outfall ditch.. The applicant, for this change is Fred Hoppe with Hoppe Homes. He has submitted a preliminary plat for consideration based on the proposed change. Discussion At the regular meeting of the Regional Planning Commission, held August 1, 2018, the above item was considered following a public hearing. O’Neill opened the public hearing Nabity stated since 1995 there have been 4 applications on this property. The proposal is to rezone the property from an R-2 to an R3-SL Medium Small Lot Residential. This would extend south to the Lincoln Heights subdivision that would allow for additional development on this property and some additional density. The area is planned for low medium density residential district it is consistent with the Future Land use map and Comprehensive Plan to go to the R2, R3-SL. The preliminary plat is set to go to council for the September meeting. Grand Island Council Session - 8/28/2018 Page 7 / 202 The property in question does include all the property that Mr. Hoppe owns with the Orchard LLC and about 70 foot of a back piece of some property owned by Bill and Julie Ziller. Nabity recommend approval for a zone change. Nabity went on to go over details on how the preliminary plat lays out and ties into Habitat Subdivision to the north. It would be developed in 3 phases. The first phase is an extension of what is being called 17th Street (not 17th that will be changed), will bring 17th Street in and bring Peach Street down to 14th Street. Second Phase will extend Apple Street down to 14th Street. The third phase will be the southern end connecting Peach Street Apple Street and 13th Street. They are talking 32 foot streets with offsets with driveways so there is parking on both sides. One issue is the townhouse lots were set at the same square footage as the other lots and more depth is needed. Zach Butz, 308 N. Locust Item #5. Representing Fred Hoppe was available for questions. Ruge asked if the changes that Nabity talked about would affect the zone change. Nabity clarified that it would not affect the zone change but changes would have to be made on the preliminary plat before being approved. Nabity said he would recommend to amend it. Christine Musich, 921 E. 14th St. Item #5. Christine stated she lived on 14th street right by the dead end. She asked if the intention is solely for homes or if churches would be allowed. Chad said zoning would allow churches in the area. No commercial businesses. He also said they are looking at a park for the residence and a community center for the residence. Christine wanted to know what the projected time frame would be. Nabity said they would like to get started on building homes within the next year. Christine also had concerns with traffic and asked if they would widen the street. Nabity explained it would stay the same and the street would continue on and have access to Capital Avenue. William Marshalek, 922 E. 14th, Mr. Marshalek stated his property is at the dead end up to 17th Street. He wanted to know if his property would be affected. Mr. Marshalek did not know if for sure if this on his property or not. Nabity explained if he did not own the property, then he needed to talk to Mr. Hoppe to settle. Christine Musich, 921 E. 14th St. Christine asked with this development is there a plan to connect the Hike and Bike trail to that side of the city. Nabity pointed out not with this development but the Master Hike and Bike plans will be considering in a couple of weeks will help identify those opportunities. This subdivision is planning a sidewalk between the southern end of the subdivision and Lambert Street that will serve children attending Lincoln School. O’Neill advised for Christine to watch the news because they have struggled to get people to comment on the master plan. Grand Island Council Session - 8/28/2018 Page 8 / 202 O’Neill closed the public hearing. A motion was made by Ruge and seconded by Apfel to approve the rezone property proposed for platting as The Orchard Subdivision located south of Capital Avenue, east of Beal Street north of the intersection of 12th Street and Lambert Avenue and west of the railroad tracks from LLR Large Lot Residential and R2-Low Density Residential to R3-SL Medium Density Small Lot Residential. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the rezoning request as presented 2.Modify the rezoning request to meet the wishes of the Council 3.Postpone the issue Recommendation City Administration recommends that the Council approve the proposed changes as recommended. Sample Motion Move to approve the ordinance and development plan as presented. Grand Island Council Session - 8/28/2018 Page 9 / 202 Grand Island Council Session - 8/28/2018 Page 10 / 202 Agenda Item #6, PLANNING DIRECTOR RECOMMENDATION TO REGIONAL PLANNING COMMISSION: July 25, 2018 SUBJECT:Change of Zoning for property, proposed for platting as The Orchard Subdivision, located in the E ½ NW ¼ of 10-11-9 located South of Capital Avenue, and East of Saint Paul Road north of the intersection of 12th and Lambert Streets, from LLR Large Lot Residential and R2 Low Density Residential to R3-SL Medium Density- Small Lot Residential (C-25-2018GI) PROPOSAL:This proposed development would create 160 lots for single-family attached dwellings (duplexes or townhomes) in Northeast Grand Island. The developer is proposing a residential development with lots designed for the construction of more affordable housing. The project would be developed in multiple phases. This property was rezoned to RD Residential Development Zone in 2003 with 115 lots and duplexes proposed on each lot. The current proposal would take advantage of the R3-SL zoning district to allow smaller lot sizes (minimum 3000 square feet and 24’ wide for townhouse lots). The subdivision was approved by Council provided that the developer build 37’ wide streets. No action was ever taken on the subdivision and RD zoning district was removed and changed to an R2 Low Density Residential. The internal streets will be 32’ wide back of curb to back of curb and are proposed as public streets. All of the lots will be served by public sewer and water. Due to the development of the sewer trunk line to the along the north side a portion of the drainage way has been filled in and the streets can connect through the Lassonde Subdiivison to Capital Avenue. OVERVIEW: Site Analysis Current zoning designation:R-2-Low Density Residential and LLR Large Lot Residential. Permitted and conditional uses:R-2: To provide for residential neighborhoods at a maximum density of seven dwelling units per acre with supporting community facilities. LLR- Agricultural uses, recreational uses and residential uses at a density of 2 dwelling units per acre. Minimum lot size 20,000 square feet. Comprehensive Plan Designation:Designated for future low to medium residential development. Existing land uses.Vacant Adjacent Properties Analysis Current zoning designations:North: R3-SL-Medium Density Small Lot Residential, South, R2 Low Density Residential and R4 High Density Residential East, R2- Low Density Residential Grand Island Council Session - 8/28/2018 Page 11 / 202 and West:. LLR-Large Lot Residential and R2 Low Density Residential Permitted and conditional uses:LLR- Agricultural uses, recreational uses and residential uses at a density of 2 dwelling units per acre. Minimum lot size 20,000 square feet. R2 residential uses at a density of 7 units per acre. Minimum lot size 6,000 square feet. R-3SL: Residential uses with a density of 1 unit per 3,000 square feet of property. Minimum lot size of 3,000 square feet. R4 residential uses at a density of 43 units per acre. Minimum Lot size 6,000 square feet. Comprehensive Plan Designation:North, South, East and West: Designated for future low to medium density residential development and or medium density residential to to office uses. Existing land uses:North,: Drainage ROW and vacant property recently resubdivided and rezoned for residential development. East, Agricultural land, Railroad ROW West: Some acreage development along St. Paul Road. Typical urban scale residential along the south and west. South: Typical urban scale residential EVALUATION: Positive Implications: Consistent with the City’s Comprehensive Land Use Plan: The subject property is designated for long term low to medium density residential redevelopment. This development would allow 160 dwellings on a 23.813 acre parcel. This is an average of 6.71 units an acre or slightly less than the 7 units per acre permitted in the current R2 zoning district the R3-SL does allow for smaller lot sizes though. The proposed development would be considered between low and suburban density development. Provides additional housing opportunities in Northeast Grand Island. This would be the largest residential subdivision in this area in more than 50 years. Most of the new development and housing in this part of the community has been done by Habitat for Humanity. Provides for new construction housing in a lower price range than is available across most of Grand Island. This development will provide for new construction housing in a price range that is very hard to meet with the current costs of development. The smaller lot sizes, attached single-family construction, and standardized floor plans all make this project a more efficient (less costly) development. Is infill development. This development is using property that is within the existing functional and legal boundaries of the City of Grand Island. Accessible to Existing Municipal Infrastructure: City water and sewer services are available to service the rezoning area. Monetary Benefit to Applicant: Would allow the applicant to develop and sell this property. Grand Island Council Session - 8/28/2018 Page 12 / 202 Narrower Streets lower development and maintenance costs: Narrower streets do not cost as much as wider streets. These lower costs can be passed on to the homeowner. With this development, the narrower streets also increase the amount of greenspace available in this subdivision. Negative Implications: Additional development in this part of town will likely increase the school age population: Grand Island public schools will have to deal with additional students at Lincoln elementary school. This development will be phased so not all of the units will come online at the same time. Other Considerations This particular property has been the subject of three RD zones since 1995. The first RD was approved for apartments on the entire tract with 120 units on the smaller southern tract (south of 14th Street) additional units were expected in the northern portion. Nothing happened within the 18 month time frame after approval of the RD zone. The applicant requested that the time frame be extended for the southern portion of the project and this was approved. In January of 2000, that extension was reversed due to the passage of another 18 months without any development. In 2003 an RD zone was approved for 115 duplex units contingent on the developer building 37’ public streets to serve the subdivision. After 18 months without any development the RD zoning was reversed. No action has been taken on the property between 2003 and 2018. RECOMMENDATION: That the Regional Planning Commission recommend that the Grand Island City Council approve the preliminary plat for The Orchard Subdivision and approve the change of zoning from R2-Low Density Residential to R3-SL – Medium Density Small Lot Residential. ___________________ Chad Nabity AICP, Planning Director Grand Island Council Session - 8/28/2018 Page 13 / 202 Grand Island Council Session - 8/28/2018 Page 14 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item E-3 Public Hearing on Acquisition of Utility Easement West of U.S. Highway 34 & 281 and North of Schimmer Drive - Ponderosa Lake Estates Homeowners Association Council action will take place under Consent Agenda item G-9. Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 15 / 202 Council Agenda Memo From:Tim Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:August 28, 2018 Subject:Acquisition of Utility Easement – West of U.S. Highway 34 & 281 and north of Schimmer Drive – Ponderosa Lake Estates Homeowners Association, Inc. Presenter(s):Timothy Luchsinger, Utilities Director Background Nebraska State Law requires that acquisition of property must be approved by City Council. The Utilities Department needs to acquire utility easement relative to the property of Ponderosa Lake Estates Homeowners Association, Inc., located through a part of Outlot “C1” and Outlot “C3”, Ponderosa Lake Estates Fourth Subdivision, an addition to the City of Grand Island, Hall County, Nebraska (West of U.S. Highway 34 & 281 and north of Schimmer Drive), in order to have access to install, upgrade, maintain, and repair appurtenances, including water lines. Discussion The City has an existing water line located across the referenced property. This easement provides the Utilities Department the rights to access, operate and maintain public utility infrastructure which provides service to the Ponderosa Estates area. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Make a motion to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4. Take no action on the issue Recommendation City Administration recommends that the Council approve the resolution for the acquisition of the easement for one dollar ($1.00). Sample Motion Move to approve acquisition of the Utility Easement. Grand Island Council Session - 8/28/2018 Page 16 / 202 Grand Island Council Session - 8/28/2018 Page 17 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item F-1 #9702 - Consideration of Vacating Prairie Commons Subdivision This item relates to the aforementioned Public Hearing item E-1. Staff Contact: Chad Nabity Grand Island Council Session - 8/28/2018 Page 18 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney ORDINANCE NO. 9702 An ordinance to vacate the plat for Prairie Commons Subdivision; to provide for the recording of this ordinance in the office of the Register of Deeds of Hall County, Nebraska; to repeal any ordinance or parts of ordinances in conflict herewith; and to provide for publication and the effective date of this ordinance. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. That the plat dated and approved by the City of Grand Island, Nebraska, on August 23, 2016 for Prairie Commons Subdivision is hereby vacated, excepting and reserving to the City of Grand Island the existing easements as described in Utilities Easement, Doc. #92-103358, filed 4/21/1992 and Public Utility Easement Doc. #92-110912, filed 12/22/1992, all at the Hall County Register of Deeds. SECTION 2. This ordinance is directed to be filed in the office of the Register of Deeds of Hall County, Nebraska. * This Space Reserved for Register of Deeds * Grand Island Council Session - 8/28/2018 Page 19 / 202 ORDINANCE NO. 9702 (Cont.) - 2 - SECTION 3. Any ordinances or parts of ordinances in conflict herewith be, and hereby are, repealed. SECTION 4. This ordinance shall be in force and take effect from and after its passage and publication, within fifteen days in one issue of the Grand Island Independent as provided by law. Enacted August 28, 2018. ____________________________________ Jeremy L. Jensen, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 20 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item F-2 #9703 - Consideration of Vacation of Utility Easement - South of Capital Avenue and just West of the Burlington Northern Railroad Tracks - Lassonde 3rd Subdivision Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 21 / 202 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:August 28, 2018 Subject:Ordinance #9703 - Consideration of Vacation of Utility Easement – South of Capital Avenue & Just to the west of the Union Pacific Railroad tracks – Lassonde 3rd Subdivision Presenter(s):Timothy Luchsinger, Utilities Director Background There is an existing utility easement located south of Capital Avenue and just to the west of the Union Pacific Railroad tracks in Lassonde Third Subdivision, in the City of Grand Island, Hall County, Nebraska. The existing electrical easement was acquired in 1981. It was dedicated for the original development of Lassonde Subdivision. Subsequently, the area has been re-subdivided, and the planned layout of the area has changed. Discussion All existing electrical infrastructure has been removed or relocated. By vacating the easement, it will allow for construction of single family housing by Habitat for Humanity. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Grand Island Council Session - 8/28/2018 Page 22 / 202 Recommendation City Administration recommends that the Council approve the Ordinance, and that the above described easement be vacated. Sample Motion Move to approve the Ordinance and vacate the utility easement in part of the original part of Lot Two (2) Lassonde Subdivision, currently shown as an existing Electrical Easement on the plat of Lassonde Third Subdivision, in the City of Grand Island, Hall County, Nebraska. Grand Island Council Session - 8/28/2018 Page 23 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney ORDINANCE No. 9703 An ordinance to vacate a utility easement in part of Lot Two (2), Lassonde Subdivision, and as currently shown as an existing Electrical Easement on the plat of Lassonde Third Subdivision, in the City of Grand Island, Hall County, Nebraska, and to provide for filing this ordinance in the office of the Register of Deeds of Hall County, Nebraska; and to provide for the publication and the effective date of this ordinance. WHEREAS, the City of Grand Island has removed all electrical infrastructure from the Electrical Easement area; WHEREAS, the City of Grand Island deems it advantageous and in everyone’s best interest to vacate such easement; NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA; SECTION 1.That the Electrical Easement recorded in the Register of Deeds Office, Hall County, Nebraska as Document 81-004756, and originally being located in part of Lot Two (2) Lassonde Subdivision, Grand Island, Hall County, Nebraska, and as currently shown as an existing Electrical Easement on the plat of Lassonde Third Subdivision, Grand Island, Hall County, Nebraska, be and hereby is vacated and returned to the current owner of record. THIS SPACE RESERVED FOR REGISTER OF DEEDS Grand Island Council Session - 8/28/2018 Page 24 / 202 2 ORDINANCE No. 9703 (Cont.) SECTION 2. This Ordinance is hereby directed to be recorded in the office of the Register of Deeds of Hall County, Nebraska. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4. This Ordinance shall be in force and take effect from and after its passage and publication within fifteen (15) days in one issue of the Grand Island Daily Independent as provided by law. Enacted:August 28, 2018. _________________________________ Jeremy L. Jensen, Mayor Attest: ___________________________________ RaNae Edwards, City Clerk Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney Grand Island Council Session - 8/28/2018 Page 25 / 202 Grand Island Council Session - 8/28/2018 Page 26 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item F-3 #9704 - Consideration of Updating Chapter 15 of the Grand Island City Code Relative to Electricity including Electrical Rates Staff Contact: Tim Luchsinger, Jerry Janulewicz Grand Island Council Session - 8/28/2018 Page 27 / 202 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Jerry Janulewicz, City Attorney Meeting:August 28, 2018 Subject:Ordinance #9704 - Consideration of Updating Chapter 15 of the City Code – Electricity Presenter(s):Timothy Luchsinger, Utilities Director Background The City is required by statute to set rates for its utility customers that are non- discriminatory and reflect the actual cost of of service. Cost of service/rate design studies for a utility of the size of Grand Island are recommended to be conducted every three to five years. The last competed study was performed in 2004, but because of power capacity additions through the partnership of construction of new power plants and of major changes to the regional power grid operation, dynamic economic conditions did not provide for a stable review of the utility’s rate structure. On December 12, 2017 council authorized an agreement with JK Energy Consulting Services which included the preparation of a cost of services/rate structure study, which was presented to council at a study session on August 7, 2018. Discussion The recommendations of the study have been incorporated as revisions to Chapter 15, Electricity, as indicated in the attached markup. Noted revisions include the following. Raising the monthly residential customer service charge from $5.00 to $8.00. Increasing demand rates for large commercial/industrial customers based on current cost of service. Simplifying energy rate blocks and eliminating redundant blocks. Changing the power cost adjustment basis to reallocate energy costs to the base rates and minimize the power cost adjustment. Revising the winter and summer rates to better reflect the cost of service for these periods. Changing the streetlight rates from a wattage basis to a fixture basis to promote the use of energy saving LED lights. Grand Island Council Session - 8/28/2018 Page 28 / 202 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve Ordinance #9704 revising Chapter 15, Electricity, of the City Code regarding electric rate changes. Sample Motion Move to approve Ordinance #9704 revising Chapter 15, Electricity, of the City Code regarding electric rate changes. Grand Island Council Session - 8/28/2018 Page 29 / 202 JOHN A. KRAJEWSKI, P.E. Cell: 402-440-0227 Fax: 402-435-4244 E-mail: jk@jkenergyconsulting.com www.jkenergyconsulting.com 650 J Street, Suite 108 Lincoln, Nebraska 68508 JK Energy Consulting LLC August 23, 2018 Mr. Ryan Schmitz Assistant Utility Director City of Grand Island Utilities Department 100 E. First Street Grand Island, NE 68801 RE: Revisions to Proposed Rate Ordinance Dear Ryan: On July 26, 2018, JK Energy Consulting, LLC (JKEC) submitted the 2018 Cost of Service and Rate Design Study (COS/RDS), including the proposed rate ordinance, in draft review format. The City Council is scheduled to review the COS/RDS and approve the proposed rate ordinance at their meeting on August 28. Over the past three weeks, we have had various conversations regarding the rate ordinance. Based on those conversations, the rate ordinance that will be presented to the City Council for approval was revised accordingly. Attached is the most current version of the proposed rate ordinance for submittal to the City Council. It is also included in the revised draft report that is being submitted concurrently with this letter. Following is a recap of the changes made to the rate ordinance since it was originally submitted on July 26: • 050 Three-Phase Commercial (see Section 3 of attachment) o JKEC and GIUD staff discussed simplification of the Minimum Bill section. This change will reduce workload for City staff and simplify the billing process without a material impact on revenue from this rate class. The following is the revised section: Minimum Bill: The minimum monthly bill shall be the larger of the following: 1. Customer Charge, or 2. Total connected HP x $0.70 Grand Island Council Session - 8/28/2018 Page 30 / 202 Mr. Ryan Schmitz August 23, 2018 Page 2 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 responsibility of the customer to inform the City Utilities Department of changes that may affect minimum billings. • 100 Three-Phase Power Service (see Section 4 of attachment) o JKEC recommended a minor wording change to reflect actual billing practices. The energy charge is based on kWh per kW of demand, and the wording change reflects this practice. • Demand Billing (see Section 5 of attachment) o GIUD staff asked if the language for billing demand could be simplified, as there have been some rate implementation issues with the current language in the customer billing system. The prior version of the rate ordinance proposed no changes to §15-64. After reviewing data and the cost of service analysis, the following change to the existing rate schedule was recommended: §15-64. Billing Demand The Monthly Demand shall be the highest integrated demand (in kW) during a 15-minute time interval in the billing period. For purposes of this section, Summer Months shall be June through October. Winter Months shall be November through May. The Billing Demand shall be the greater of: 1. The Monthly Demand 2. 65% of the Monthly Demand in the five (5) most recent Summer Months • Power Cost Adjustment (see Section 7 of attached document) o The PCA was adjusted from 38 mills per kWh to 35 mills per kWh based on power supply costs over the last three months. This information was unavailable to the consultant when the original analysis was completed. This change is accompanied by a corresponding change in all energy rates and results in no change in total revenue from customers. Grand Island Council Session - 8/28/2018 Page 31 / 202 Mr. Ryan Schmitz August 23, 2018 Page 2 • Interdepartmental; Streetlights (see Section 8 of attachment) o GIUD staff suggested clarifying the applicability language by including the following: If installed lamp is not listed on the rate schedule, the rate for the nearest sized lamp of the same type shall be charged. o There was a question regarding the increase in revenue attributable to street lighting and how it may affect costs for the City’s general fund. After discussions with GIUD staff, it was decided to reduce the rate for several fixtures to ensure no rate increase for street lighting. The proposed rate changes were as follows: ▪ Mercury Vapor • 175 watt lamp from $5.24 to $5.00 ▪ High Pressure Sodium • 100 watt lamp from $4.92 to $3.75 • 250 watt lamp from $6.67 to $6.19 ▪ Metal Halide • 100 watt lamp from $6.75 to $4.50 The accompanying revised draft report includes the effect of these proposed changes. In the professional opinion of JKEC, these changes are necessary and will help ensure that GIUD’s rates are fair, reasonable and non-discriminatory. Further, the changes will make the rates simpler to administer and address the concern about the previously- proposed rate increase for street lighting. Also, with regard to rate comparisons (see pages 25-27 of the revised draft report), the previous draft report was based on a single month analysis: July for summer and January for winter. The revised draft report uses the average projected Power Cost Adjustment over the full summer or winter season. This change does not have a material impact on the rate comparison tables. If you have any questions, please feel free to contact me. Sincerely yours, John A. Krajewski, P.E. JK Energy Consulting, LLC Attachments Grand Island Council Session - 8/28/2018 Page 32 / 202 Energy Consulting LLC COST OF SERVICE / RATE DESIGN STUDY UPDATE CITY OF GRAND ISLAND UTILITIES DEPARTMENT CITY COUNCIL FINAL DRAFT - REVISED AUGUST 23, 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 Council Session - 8/28/2018 Page 33 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 ........................................................................................................ 28 Appendix A - Rate Ordinance Grand Island Council Session - 8/28/2018 Page 34 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 Council Session - 8/28/2018 Page 35 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 3.5¢/kWh. This change would be accompanied by an increase in the energy cost for each block of 2.0¢/kWh. 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 Council Session - 8/28/2018 Page 36 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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. The recommended Street Lighting rate would be revenue neutral. 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 Council Session - 8/28/2018 Page 37 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 Council Session - 8/28/2018 Page 38 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 $1.3 million by FY 2022 (Table 1b, Line 24). Existing rates would need to be increased by approximately 2.0% between now and FY 2022 to cover the projected cash-basis deficit (Table 1b, Line 25). Grand Island Council Session - 8/28/2018 Page 39 / 202 CITY COUNCIL FINAL DRAFT - REVISED 7 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 1aGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Accrual BasisExisting RatesAcutalTest YearProjectedLineDescription20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 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$ 87,929,685$ 89,764,347$ 91,576,290$ 93,442,592$ 95,364,883$ 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$ 6,561,552$ 5,955,170$ 5,252,838$ 4,529,436$ 3,784,333$ 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)$ (781,388)$ (1,329,353)$ (1,921,785)$ (2,516,187)$ (3,127,490)$ 26Rate Change for Breakeven Accrual1.52%1.20%2.05%2.96%3.88%4.82%Grand Island Council Session - 8/28/2018 Page 40 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 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$ 87,929,685$ 89,688,854$ 91,500,797$ 93,367,099$ 95,289,390$ 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$ 13,628,552$ 13,329,687$ 13,021,855$ 12,704,789$ 12,378,211$ 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)$ (16,017)$ (331,465)$ (644,397)$ (952,463)$ (1,285,241)$ 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$ 13,318,552$ 13,019,687$ 12,711,855$ 12,394,789$ 12,068,211$ 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 Council Session - 8/28/2018 Page 41 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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, which includes no substantive revenue 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$ 87,929,685$ 89,764,347$ 91,576,290$ 93,442,592$ 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$ 6,561,552$ 5,955,170$ 5,252,838$ 4,529,436$ 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 ($)3,014,838 3,049,779 3,671,879 4,390,401 5,130,478 12 (%)4.67%4.70%5.66%6.77%7.91% 13 Projected Cash on Hand 14 Starting Balance 41,235,711 41,219,694 40,888,229 40,243,832 15 Increase / Decrease (16,017) (331,465) (644,397) (952,463) 16 Ending Balance 41,219,694 40,888,229 40,243,832 39,291,369 17 Cash Operating Expenses 74,301,133 76,359,167 78,478,942 80,662,310 18 Days of Operating Expenses 202 195 187 178 Description Grand Island Council Session - 8/28/2018 Page 42 / 202 CITY COUNCIL FINAL DRAFT - REVISED 10 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC Table 2aGrand Island Utilities Department2018 Cost of Service StudyProjected Financial Results - Accrual BasisProjected RatesActualTest YearProjectedLine20162017201820192020202120221Operating Revenues2Retail Sales - Existing Rates62,545,863$ 64,528,587$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 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- - (41,639) (41,639) 606,543 1,261,206 1,261,206 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$ 87,888,047$ 89,722,708$ 92,182,833$ 94,703,798$ 96,626,089$ 8Proposed Rate Change-0.1%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$ 6,519,914$ 5,913,531$ 5,859,381$ 5,790,642$ 5,045,539$ 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) (418,658) (418,658) (422,845) (427,073) (427,073) 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)$ (823,026)$ (1,370,992)$ (1,315,242)$ (1,254,981)$ (1,866,284)$ 27Rate Change for Breakeven1.52%1.27%2.11%2.03%1.93%2.88%DescriptionGrand Island Council Session - 8/28/2018 Page 43 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 64,859,776$ 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- - (41,639) (41,639) 606,543 1,261,206 1,261,206 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$ 87,888,047$ 89,722,708$ 92,182,833$ 94,703,798$ 96,626,089$ 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$ 13,586,914$ 13,363,541$ 13,703,891$ 14,041,488$ 13,714,910$ 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)$ (57,655)$ (297,611)$ 37,639$ 384,236$ 51,458$ 27Rate Change for Breakeven Cash Basis2.99%0.09%0.46%-0.06%-0.59%-0.08%28Debt Service Coverage29Net Revenue13,478,158$ 13,012,227$ 13,276,914$ 13,053,541$ 13,393,891$ 13,731,488$ 13,404,910$ 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 Coverage2.812.712.772.722.792.862.79DescriptionGrand Island Council Session - 8/28/2018 Page 44 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 4.14% in 2018, which is less than the targeted level (see Table 2c, Line 9). An additional rate increase of 4.77% 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$ 87,888,047$ 89,722,708$ 92,182,833$ 94,703,798$ 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$ 6,519,914$ 5,913,531$ 5,859,381$ 5,790,642$ 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%4.14%3.75%3.71%3.66% 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 3,091,417 3,713,518 3,783,858 3,869,272 12 (%)4.67%4.77%5.73%5.83%5.97% 13 Projected Cash on Hand 14 Starting Balance 41,235,711 41,178,056 40,880,445 40,918,084 15 Increase / Decrease (57,655) (297,611) 37,639 384,236 16 Ending Balance 41,178,056 40,880,445 40,918,084 41,302,320 17 Cash Operating Expenses 74,301,133 76,359,167 78,478,942 80,662,310 18 Days of Operating Expenses 202 195 190 187 Description Grand Island Council Session - 8/28/2018 Page 45 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 $41.2 million. As of December 31, 2017, the Utility had sufficient cash reserves to meet this revised requirement. [Intentionally left blank.] Grand Island Council Session - 8/28/2018 Page 46 / 202 CITY COUNCIL FINAL DRAFT - REVISED 14 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC COST OF SERVICE The purpose of the cost of service analysis is to identify the costs related to serving each class of customers. Several steps were completed to prepare the cost of service analysis. A test year budget was prepared based on the FY 2018 operating budget with adjustments for known changes. Each expense item was identified and assigned to a utility function, and further classified as a demand, energy or customer related expense. This process is called “functionalization” and “classification.” Costs related to each function were then allocated to customer classes based on generally accepted cost allocation principles for municipal electric utilities. The allocated costs were compared to revenues based on existing rates. The comparison of the cost of service to revenue from existing rates was considered in designing rates. Test Year Budget The FY 2018 operating budget was used as the basis for the test year budget. The purpose of preparing a test year budget is to create a scenario that is as close to “normal” operating conditions as possible, reflecting known changes for the utility. The test year budget included the following adjustments from the FY 2018 operating budget: 1. Revenue for each rate class was based on sales in FY 2017 from provided billing data. Table 3 Grand Island Utilities Department 2018 Cost of Service Study Minimum Cash Reserve Test Year Line 2018 1 Risk Reserve 2 Operational 1,303,007$ 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 Council Session - 8/28/2018 Page 47 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 Council Session - 8/28/2018 Page 48 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 Council Session - 8/28/2018 Page 49 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 (see Table 5, Line 1). This is double the current customer charge of $5.00 per month. Similarly, the customer charge for Single and Three Phase Commercial customers is lower than the calculated cost of service. The Utility should consider a plan to increase the customer charge over time to recover the calculated cost of service. The proposed rate ordinance includes an increase in the monthly customer charge for Residential and Commercial customers. Cost Allocation The functionalized costs were allocated to the various rate classes using generally accepted methods for preparing embedded cost of service studies. There is no standard cost of service methodology set by a regulatory agency that the Utility is required to follow. There are several guidelines that municipal utilities typically follow, including publications Grand Island Utilities Department 2018 Cost of Service Study Customer Energy Demand Line Rate Class ($)($/mon)($)(¢/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 Council Session - 8/28/2018 Page 50 / 202 CITY COUNCIL FINAL DRAFT - REVISED 18 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 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 Street Lighting are paying more than the cost of service. [Intentionally left blank.] Grand Island Council Session - 8/28/2018 Page 51 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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%421,693 405,634 (16,059) -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 64,859,776$ 64,875,793$ 16,017$ 0.0% Difference Table 6 Comparison of Cost of Service to Revenue from Existing Rates Annual Grand Island Council Session - 8/28/2018 Page 52 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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%225,290 203,254 (22,036) -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 34,036,263$ 32,804,904$ (1,231,360)$ -3.6% Table 7 Comparison of Cost of Service to Revenue from Existing Rates Difference Summer Winter Difference Grand Island Council Session - 8/28/2018 Page 53 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 revenue 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 Council Session - 8/28/2018 Page 54 / 202 CITY COUNCIL FINAL DRAFT - REVISED 22 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC [Intentionally left blank.] 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 $% 1 E10 Residential 20,380,759$ 20,384,372$ 3,614$ 0.0% 2 E30 Single Phase Commercial 2,399,484 2,393,574 (5,910) -0.2% 3 E50 Three Phase Commercial 14,259,402 14,292,663 33,261 0.2% 4 E00 Three Phase Power 9,408,767 9,496,504 87,737 0.9% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 3,696 3,692 (4) -0.1% 7 ENM Net Meter, Residential 6,664 6,470 (194) -2.9% 8 E35 Single Phase Commercial 425,375 446,184 20,808 4.9% 9 E34 Single Phase Commercial 69,635 76,070 6,435 9.2% 10 E51 Three Phase Commercial 1%279,425 278,805 (621) -0.2% 11 E33 Single Phase Commercial 5%11,862 11,346 (516) -4.4% 12 E59 Three Phase Comm Service 95,369 96,776 1,407 1.5% 13 E52 Three Phase Commercial 2%421,693 421,693 - 0.0% 14 E54 Three Phase Commercial 5%37,814 37,383 (431) -1.1% 15 E01 Three Phase Power 3%12,774,616 12,623,481 (151,136) -1.2% 16 E03 Three Phase Power 3%2,623,038 2,671,309 48,271 1.8% 17 IE1 Three Phase Power (ID)106,813 105,441 (1,372) -1.3% 18 IE2 Three Phase Power (ID) - 750 483,495 460,434 (23,061) -4.8% 19 Area Flood Lighting 254,320 197,644 (56,677) -22.3% 20 Street Lights 301,870 301,953 83 0.0% 21 IE3 Three Phase Power (ID) - 3%515,677 512,345 (3,333) -0.6% 22 Total 64,859,776$ 64,818,138$ (41,639)$ -0.1% Difference Grand Island Council Session - 8/28/2018 Page 55 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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 125,779 125,814 35 0.0% 21 IE3 Three Phase Power (ID) - 3%237,066 259,013 21,947 9.3% 22 Total 30,823,513$ 32,259,013$ 1,435,500$ 4.7% Revenue Revenue Existing Proposed Line Rate Class Rates Rates $% 1 E10 Residential 10,507,326$ 10,137,059$ (370,267)$ -3.5% 2 E30 Single Phase Commercial 1,372,968 1,371,053 (1,915) -0.1% 3 E50 Three Phase Commercial 7,209,789 7,210,894 1,104 0.0% 4 E00 Three Phase Power 4,978,778 4,615,831 (362,947) -7.3% 5 Interdepartmental - - - 0.0% 6 E20 Residential Suburb 1,658 1,582 (77) -4.6% 7 ENM Net Meter, Residential 4,353 4,153 (199) -4.6% 8 E35 Single Phase Commercial 253,468 265,324 11,855 4.7% 9 E34 Single Phase Commercial 35,396 39,447 4,050 11.4% 10 E51 Three Phase Commercial 1%128,862 127,959 (903) -0.7% 11 E33 Single Phase Commercial 5%9,853 9,470 (383) -3.9% 12 E59 Three Phase Comm Service 43,430 43,916 486 1.1% 13 E52 Three Phase Commercial 2%225,290 225,290 - 0.0% 14 E54 Three Phase Commercial 5%22,504 22,185 (319) -1.4% 15 E01 Three Phase Power 3%6,912,412 6,320,965 (591,448) -8.6% 16 E03 Three Phase Power 3%1,420,767 1,342,203 (78,564) -5.5% 17 IE1 Three Phase Power (ID)67,188 61,541 (5,647) -8.4% 18 IE2 Three Phase Power (ID) - 750 239,165 215,492 (23,673) -9.9% 19 Area Flood Lighting 148,354 115,292 (33,061) -22.3% 20 Street Lights 176,091 176,139 48 0.0% 21 IE3 Three Phase Power (ID) - 3%278,611 253,332 (25,280) -9.1% 22 Total 34,036,263$ 32,559,125$ (1,477,139)$ -4.3% Difference Winter Table 9 Proposed Rate Change by Rate Class - October 2018 Summer Difference Grand Island Council Session - 8/28/2018 Page 56 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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. The proposed rate would be revenue neutral while helping to ensure adequate revenue recovery, particularly for LED fixtures that are predominantly used in new installations. Grand Island Council Session - 8/28/2018 Page 57 / 202 CITY COUNCIL FINAL DRAFT - REVISED 25 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 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 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 3.5¢/kWh and to increase the amount of fuel and purchased power recovered from base rates by 2.0¢/kWh. This should result in the Power Cost Adjustment line on customer bills being closer to zero upon implementation of the change. 6. Simplify Billing Demand Calculation: Staff indicated there have been issues with implementing the current billing demand methodology. It is recommended to simplify the billing demand calculation to the higher of (a) current month billing demand or (b) 65% of the highest summer season peak during the previous 12 months. This approach is consistent with neighboring utilities and will have minimal effect on demand revenues. 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, page 26), 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. [Intentionally left blank.] Grand Island Council Session - 8/28/2018 Page 58 / 202 CITY COUNCIL FINAL DRAFT - REVISED 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. [Intentionally left blank.] 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 103.66 LES 234.50 GIUD 59.13 LES 105.80 GIUD 237.26 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 54.22 GIUD 88.13 GIUD 179.38 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 Council Session - 8/28/2018 Page 59 / 202 CITY COUNCIL FINAL DRAFT - REVISED 27 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 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. 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. 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 GIUD 469.32 GIUD 899.64 GIUD 1,329.96 LES 477.10 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 458.16 GIUD 877.31 GIUD 1,296.47 Hastings 485.74 Hastings 939.04 Hastings 1,845.64 NPPD 488.51 NPPD 945.58 NPPD 1,859.73 Grand Island Council Session - 8/28/2018 Page 60 / 202 CITY COUNCIL FINAL DRAFT - REVISED 28 Grand Island Utilities Department Cost of Service / Rate Design Study JK Energy Consulting LLC 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. 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. The recommended Street Lighting rate would be revenue neutral. 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 Council Session - 8/28/2018 Page 61 / 202 CHAPTER 15 ELECTRICITY Article I. Licenses; Installations; Inspections Division 1. Generally §15-1. Applicability of Article This article shall apply to all structures, constructed, assembled or placed within the City zoning jurisdiction, and provides standards for electrical wiring as identified in the Nebraska State Electrical Act. Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9578, effective 03-29-2016 §15-2. National Electrical Code Adopted (A) There is hereby adopted by the City of Grand Island for the purpose of safeguarding persons and buildings from hazards arising from the use of electricity for light, heat, power, radio, signaling, and other purposes, that certain code known as the National Electrical Code, 2017 Edition, recommended by the National Fire Protection Association, except as modified by this section. (B) The National Electrical Code is modified by deleting Article 210-52C Subsection 2 and 3. Articles 320 and 330 are amended by §15-3 of the Grand Island City Code. (C) One copy of the National Electrical Code, 2017 Edition, shall be on file in the City Clerk's office for public use and inspection as provided by law. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9194, effective 11-01-2008 Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9508, effective 12-31-2014 Amended by Ordinance No. 9578, effective 03-29-2016 Amended by Ordinance No. 9667, effective 01-01-2018 §15-3. Amendments to National Electrical Code, 2017 Edition The following sections are adopted as amendments to the same numbered sections of the National Electrical Code, 2017 Edition: Article 210.11(C)(3) Shall be limited to two bathrooms. Article 320 – Armored cable (type AC) Anti short bushings shall be used. Article 330 - Metal-Clad Cable (Type MC) Anti short bushings shall be used. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9194, effective 11-01-2008 Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9508, effective 12-31-2014 Amended by Ordinance No. 9578, effective 03-29-2016 Amended by Ordinance No. 9667, effective 01-01-2018 §15-4. Electrical Plans Wherever the Building Code of the City requires that plans be filed with the Building Department for the construction and alteration of dwellings and all other buildings and structures in the City, there shall also be filed a detailed plan of the electrical work to be done on such structures which plan shall show the outlets, connections, and Grand Island Council Session - 8/28/2018 Page 62 / 202 all fixtures and appliances to be installed. If deviations are made from an approved set of plans, then the changes shall be submitted for approval. When the electrical work to be done is for additional wiring only, the Electrical Inspector may approve the same without plans therefor. Amended by Ordinance No. 9578, effective 03-29-2016 §15-5. Installation of Service Conductors All electrical service conductors shall be installed according to the National Electrical Code with the following additional requirements. The point of entrance in all cases shall be determined by the Grand Island Utilities Department: Overhead Service Where the service mast is used for the sole support of the service drop, the minimum size shall be two-inch intermediate or galvanized rigid metal conduit. The service mast shall be continuous with no interruptions. The point of attachment shall be a minimum height of twelve (12) feet. Underground Service The service conductors shall be installed in a continuous approved conduit system from the service head, transformer or secondary tap box to the main meter socket or service disconnect. The first ten feet of conduit out of the ground attaching to a utility pole shall be schedule 40 G.R.C. conduit. Amended by Ordinance No. 9578, effective 03-29-2016 §15-6. Service Entrances Each service entrance with 2,000 amperes capacity or less shall be provided with a readily accessible main disconnecting device with appropriate overcurrent protection; provided, each service entrance larger than 2,000 amperes capacity shall comply with the provisions of the National Electric Code. The device shall disconnect all ungrounded conductors from the source of supply in one motion or operation of the hand. For overhead services, said overcurrent protection shall be installed within twenty-five (25) feet from the weatherhead, and within ten (10) feet from where the conductors enter the building. For underground services, said overcurrent protection shall be installed within ten (10) feet from where the conductors enter the building. (A) Provisions for Metering. The meter socket shall be the “ring type” meter socket for 200 amp services and below. Meter sockets shall be mounted on the outside of a building with the centerline located between five (5) and six (6) feet above finished grade unless prior approval is given by the Utilities Department and Building Department. Additional provisions for metering can be found in the Metering Standards set out by the Grand Island Utilities Department. (B) Single family switches shall be grouped to disconnect them with one motion of the hand. (C) Multiple Family Units. New multiple family units constructed in compliance with Chapter 8 of the Grand Island Code may be allowed up to 6 switches, one switch per unit. All switches shall be grouped together in one listed and approved assembly. (D) Number of Services. One electrical service shall be provided for each tract or parcel of land, except upon written request and approval by the Utilities Director and Building Department Director, and/or their respective designee, and in conformance with this Code. (E) Electric Meter Location. The electric meter shall be located on the property that it is supplying power to, unless prior approval by the Utilities Department and Building Department. (F) Meter Tampering. Pursuant to Nebraska Revised Statute 25-21,275, tampering or bypassing a meter is strictly prohibited and will result in immediate disconnection. (F) Grade Changes. The property owner shall be responsible for any repairs or modifications to City owned equipment damaged or deemed unsafe due to grade changes, settlement or erosion. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9194, effective 11-01-2008 Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9578, effective 03-29-2016 §15-7. Wiring In Commercial Buildings (A) Nonmetallic cable shall not be used for the installation of wiring for lights, heat, air conditioning power, or power in all commercial buildings. These include, but are not limited to, asylums, hospitals, hotels, motels, theaters, schools, factories, churches, warehouses, mills, grain elevators, food stores, office buildings, retail sales, stables, garages, meeting halls, buildings of fireproof or mill construction. Exception: Tray cable systems installed in accordance with Article 392 NEC and permission of the Electrical Inspector. Grand Island Council Session - 8/28/2018 Page 63 / 202 (B) All dwelling units located within any commercial type building shall be wired to the same commercial standard. (C) Wiring above suspended ceilings – all permanent raceways, boxes, cabinets, and fittings shall be securely fastened to the building structure. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9194, effective 11-01-2008 Amended by Ordinance No. 9578, effective 03-29-2016 §15-8. Wiring In Single and Multiple-Family Units (A) Multiple family units may have branch circuits in individual units wired with nonmetallic sheathed cable if construction complies with Chapter 8 of the Grand Island City Code. (B) Existing residential buildings containing more than six family units not having a two-hour fire wall rating separation as provided in Chapter 8 of the Grand Island City Code shall not be wired with nonmetallic cable. (C) No wiring in basements below the floor joist on exterior walls shall be wired with unprotected nonmetallic cable. (D) Smoke alarms shall be installed to comply with Section R314 of the 2015 International Residential Code. (E) Carbon monoxide alarms shall be installed to comply with Section R315 of the 2015 International Residential Code. Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9508, effective 12-31-2014 Amended by Ordinance No. 9578, effective 03-29-2016 Amended by Ordinance No. 9667, effective 01-01-2018 §15-9. Repairs In Building Damaged by Fire Whenever the wiring of any building in the City has been damaged by fire, the Electrical Inspector shall be notified before permanent repairs to this wiring are started. In replacing such wiring, all the rules of this article shall be observed. §15-10. Existing Electrical Installations (A) Extensions to Existing Installations. Extensions to existing installations shall not be made, attached or connected to any existing wiring where the existing wiring does not conform to the minimum requirements as set forth by this article. (B) Removal of Unused Electrical Wiring. All unused and abandoned electrical equipment, wiring, conduits, and devices shall be removed from all buildings and structures. (C) Existing Electrical Wiring. All existing electrical wiring, conduits, equipment, and devices in existing buildings shall be compliant with the code at the time of installation. Remodeled areas of buildings shall comply with the current code. Amended by Ordinance No. 9578, effective 03-29-2016 §15-11. Requirements for Electrical Installations (A) Aluminum Conductors – aluminum conductors may be used for service entrance and feeders only. (B) Equipment grounding conductors – an equipment grounding conductor will be required in all conduit systems except for rigid metal conduit systems with threaded hubs, couplings or fittings. (C) CSST gas piping shall be bonded to comply with section 1312.2 of the 2015 Uniform Mechanical Code. (D) Non-grounding receptacles shall not be installed, either in new work or for replacement, after December 31, 2014. Amended by Ordinance No. 9194, effective 11-01-2008 Amended by Ordinance No. 9508, effective 12-31-2014 Amended by Ordinance No. 9667, effective 01-01-2018 §15-12. Reserved. §15-13. Reserved. Grand Island Council Session - 8/28/2018 Page 64 / 202 Division 2. Permits §15-14. Permit for Work; Required No electrical wiring work, unless excepted in this section, shall be undertaken prior to the issuance of a permit therefor by the Building Department. Such permit shall be issued only to a registered contracting electrician. No permit shall be required for minor repair work such as repairing flush and snap switches, replacing fuses, changing lamp sockets and receptacles, taping bare wires and joints, and repairing drop cords. Amended by Ordinance No. 9578, effective 03-29-2016 §15-15. Permit; Application (A) No permit shall be issued to any person to do or cause to be done any work regulated by this Code, except to a person holding a valid unexpired and unrevoked registration as required by this chapter, except when and as otherwise hereinafter provided in this section. (B) A permit may be issued to a properly registered person not acting in violation of any current contractor licensing law. (C) Any permit by this Code may be issued to any person to do any work regulated by this Code in a single family dwelling used exclusively for living purposes, including the usual accessory buildings and quarters in connection with such buildings in the event that any such person is the bona fide owner of any such dwelling and accessory buildings and quarters, and that the same is currently occupied by said owner, provided, that said owner shall personally purchase all material and shall personally perform all labor in connection therein. No permit shall be issued to said owner for the installation of a new electrical service and panel. (D) If work is done by other than said owner the permit will be voided and said owner will be subject to possible legal action. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9578, effective 03-29-2016 §15-16. Permit Fees Upon the granting of a permit for electrical work requiring an inspection, the applicant shall pay a fee to the City in accordance with the City of Grand Island Fee Schedule. §15-17. Electrical Work; Permit Required; Fee The person to whom such registration is issued under this division shall be required to first secure permits to do any electrical work on the premises of such registration as required by ordinances of the City. Fees for the issuance of such permit shall be the same as now in force and required by ordinance. Amended by Ordinance No. 9578, effective 03-29-2016 §15-18. Investigation Fees; Work Without a Permit (A) Whenever any work for which a permit is required by this Code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. (B) An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be in accordance with the City of Grand Island Fee Schedule. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this Code, nor from penalty prescribed by law. (C) This provision shall not apply to emergency work when it shall be proven to the satisfaction of the Building Department Director that such work was urgently necessary and that it was not practical to obtain a permit before the commencement of the work. In such cases, a permit must be obtained as soon as it is practical to do so. Amended by Ordinance No. 9578, effective 03-29-2016 §15-19. Reinspection; Fees A reinspection fee in accordance with the City of Grand Island Fee Schedule may be assessed for each inspection when such portion of work for which inspection is called is not complete or when required corrections have not been made. Amended by Ordinance No. 9194, effective 11-1-2008 §15-20. Reserved. §15-21. Reserved. Grand Island Council Session - 8/28/2018 Page 65 / 202 Division 3. Electrical Inspections; Electrical Board §15-22. Inspections; Required All electric apparatus, wires or conduits that are to be hidden from view shall be inspected before concealment, and any person installing such wires shall notify the Electrical Inspector, giving him twenty-four hours in which to make the required inspection before such wires are concealed. For residential installations not exceeding four units per structure, power shall be permitted to be connected under the terms of a Temporary Electrical Hookup Agreement. This permit shall be obtained from the Building Department before a request is made to connect power. Amended by Ordinance No. 8990, effective 08-10-2005 Amended by Ordinance No. 9578, effective 03-29-2016 §15-23. Inspection of Electrical Work Any electrical work performed under the provisions of this division shall be inspected by the Electrical Inspector if the ordinances of the City provide for inspections. §15-24. Violations Any electrician, agent, or owner who shall construct, or cause to be constructed, wiring in any building, or part of such building or structure or device, in violation of any of the provisions of this article, and any architect, or other person, designing, drawing plans for, or having charge of such building, or part of such building or structure or device, who shall permit it to be so constructed, shall be deemed guilty of a misdemeanor. §15-25. Designation of Electrical Inspector Electrical inspections shall be under the supervision of the Building Department Director. The inspector in charge of these inspections shall be referred to in this article as the Electrical Inspector. Amended by Ordinance No. 9578, effective 03-29-2016 §15-26. Records The Electrical Inspector shall keep complete records of all permits issued and inspections made and other official work performed under the provisions of this article. §15-27. Review of Decisions; Electrical Board When the Electrical Inspector condemns all or part of any electrical installation, the owner may, within five days after receiving written notice from the electrical inspector, file a petition for review of such action of the Electrical Inspector with the City Electrical Board, on receipt of which the Board shall at once proceed to determine whether such electrical installation complies with this article, and within three days shall make a decision in accordance with its findings. §15-28. Right of Entry; Inspections; Disconnection The Electrical Inspector shall have the right, during reasonable hours, to enter any building in the discharge of official duties, or for the purpose of making any inspection or test of the installation of electric wiring, electric device, or electric material contained therein, and the electrical inspector shall have the authority to cause the turning off of all electrical currents and to cut or disconnect, in case of emergency, any wire where such electrical currents are dangerous to life or property. If electrical wiring is found to be hazardous, it shall be the responsibility of the property owner to have the needed repair work started as soon as possible or within forty-eight (48) hours. Extended time may be given by the Electrical Inspector. If the service is disconnected for six (6) months or longer, an inspection shall be performed prior to reconnection. The City of Grand Island shall not be responsible for any damage to customer’s property as a result of disconnection or reconnection. Amended by Ordinance No. 9578, effective 03-29-2016 §15-29. Disconnection or Removal During Fire The Chief of the Fire Department or the Electrical Inspector, or a competent person delegated by them, or either of them, shall have the power to at once cause the removal of all wires or the turning off of all electrical currents Grand Island Council Session - 8/28/2018 Page 66 / 202 where such wires or current interfere with the work of the Fire Department during the progress of a fire. Any reconnection of a disconnected service shall be inspected by the Electrical Inspector prior to reconnection. Amended by Ordinance No. 9578, effective 03-29-2016 §15-30. Electrical Board; Appointment The Electrical Board shall be appointed by the Mayor annually, with the approval of the City Council, and shall consist of a master electrician, a journeyman electrician, a representative of the Grand Island Utilities Department, a representative of the public at large, and the Building Department Director or delegated Electrical Inspector, who shall act as ex officio chairman of such Board. Three members of the Electrical Board shall constitute a quorum. Amended by Ordinance No. 9578, effective 03-29-2016 §15-31. Electrical Board; Duties The Electrical Board shall establish standards and procedures for the qualification and registration of master electricians and journeyman electricians and shall issue an appropriate registration to each person who meets the qualifications therefor. The Board shall keep an official record of all its transactions and registrations. Amended by Ordinance No. 9578, effective 03-29-2016 §15-32. Reserved. §15-33. Reserved. Division 4. Electrical Contractors; Licenses, Registration §15-34. Intent of Division It is the intent of this division that no person shall engage in the business of installing, repairing or altering electrical wiring unless the work performed in the course of such business is under the direct supervision of a contracting or master electrician licensed by the State of Nebraska and registered with the City of Grand Island. Amended by Ordinance No. 9578, effective 03-29-2016 §15-35. Registration Required No person shall engage in the business of installing, altering, or repairing any electrical wiring, fixtures, or apparatus for any purpose whatsoever in the City of Grand Island without first obtaining a Certificate of Registration as an electrical contractor. Amended by Ordinance No. 9265, effective 08-17-2010 §15-36. Registration and Insurance Required (1) Every registrant shall maintain in full force and effect insurance policies written by a company or companies authorized to do business in the State of Nebraska, with the following coverages, amounts, and provisions: (a) Comprehensive General Liability Insurance covering the operations of the registrant, including coverage for completed operations, with limits of not less than $1,000,000 per occurrence for bodily injury and property damage. (b) A provision making the City of Grand Island an additional insured for any third party claims for bodily injury or property damage based upon occurrences in connection with the registrant's operations, including completed operations, within the City's zoning jurisdiction. (c) The registrant shall furnish the City of Grand Island Building Department a certificate or certificates of insurance for the above insurance coverage. (d) Any registration certificate issued under the provisions of this chapter shall be revoked should the registrant permit the insurance policy herein required to expire or lapse. Amended by Ordinance No. 9144, effective 01-01-2008 Amended by Ordinance No. 9265, effective 08-17-2010 Grand Island Council Session - 8/28/2018 Page 67 / 202 §15-37. Reserved Deleted by Ordinance No. 9578, effective 03-29-2016 §15-38. Use of Name; Change of Address No person or concern who has obtained a contracting electrician's registration shall allow his name to be used by another person or concern, either for the purpose of obtaining permits, or for doing business or work under such registration. Every person registered pursuant to this article shall notify the Electrical Board of any change to their street address. Amended by Ordinance No. 9578, effective 03-29-2016 §15-39. Reserved §15-40. Reserved Division 5. Master, Journeyman, Apprentice; Electricians §15-41. Registration; Required No person shall be engaged in the installation of any electrical wiring, fixtures, equipment, or devices for any purpose whatsoever in the City without having registered in the office of the Building Department. (A) Required. Any applicant for a registration certificate shall be the holder of a valid State of Nebraska Electricians License. (B) Renewal. All journeyman electrician's and master electrician's certificates of registration issued by the Electrical Board shall expire on December 31 of the year in which such certificates are issued, but such certificates may be renewed within thirty days thereafter upon application and payment of fees in accordance with the City of Grand Island Fee Schedule. Any master electrician or journeyman electrician who does not renew his or her certificate of registration pursuant to this article within the thirty day grace period provided by this section shall automatically forfeit such certificate. Amended by Ordinance No. 9366, effective 03-30-2012 Amended by Ordinance No. 9578, effective 03-29-2016 §15-42. Reserved Deleted by Ordinance No. 9578, effective 03-29-2016 §15-43. Apprentice Electrician Apprentice electricians shall be required to have a valid State of Nebraska registration and work under the direct supervision of a contracting, master, or journeyman electrician. Amended by Ordinance No. 9578, effective 03-29-2016 §15-44. Reserved. §15-45. Reserved. Division 6. Registration Certificate Revocation §15-46. Registration Certificate; Revocation (A) Registration Certificate; Revocation. The City Council, by a majority vote, shall have the power to revoke the certificate of any contracting, master, or journeyman electrician issued pursuant to this article, upon the recommendation of the Electrical Board, if such registration was obtained through error or fraud, or if the recipient thereof is shown to be grossly incompetent, or has a second time willfully violated any of the provisions of this article. This penalty shall be cumulative and in addition to the penalties prescribed for the violation of the provisions of this article. (B) Registration; Revocation. If any person's qualifications for a registration certificate under this article shall fail at any time during the term thereof, such certificate shall be revoked and canceled immediately by the Building Department Director, who shall serve notice of such action by registered mail to the holder of the certificate. (C) Registration Certificate; Notice and Hearing. Before a registration issued pursuant to this article may be revoked, the registrant shall have notice in writing, enumerating the reasons for revocation, and shall be entitled to Grand Island Council Session - 8/28/2018 Page 68 / 202 a hearing before the City Council not sooner than five days from the date of receipt of the notice. The registrant shall be given an opportunity to present testimony, oral or written, and shall have the right of cross-examination. All such testimony before the City Council shall be given under oath. The City Council shall have the power to administer oaths, issue subpoenas, and compel the attendance of witnesses in such cases. (D) Decision of Council Final; Reapplication. The decision of the City Council relative to the revocation of a registration issued pursuant to this article shall be based upon the evidence produced at the hearing, and such decision shall be final. A person whose registration has been revoked shall not be permitted to reapply for another such registration within one year from the date of such revocation. Amended by Ordinance No. 9578, effective 03-29-2016 §15-47. Reserved §15-48. Reserved Article II. Municipal Service Division 1. Generally §15-49. Interconnection Devices Any energy conservation device generating electricity to be used for domestic purposes shall be interconnected with the electrical supply of the household, business, or industry finished by the Grand Island Utilities Department in accordance with plans, specifications, rules and regulations approved by the Utilities Director or his designated representative and subject to the inspection of the Grand Island Utilities Department prior to the conservation device being energized and put into operation. A customer that has a generation facility (or facilities) that uses as its energy source methane, wind, solar, biomass, hydropower, or geothermal resources and is interconnected behind their service meter with and aggregate nameplate of 25 kW or less may be considered as a Qualified Facility (QF) and eligible for participation in a net metering program. The program will be available for QF customers until the aggregate nameplate capacity of the participating QF customers meets one percent (1%) of the peak annual demand of the Utilities Department. The installation of equipment by the QF customer must meet all applicable safety, interconnection, and reliability standards established by the National Electrical Code filed with the Secretary of State and adopted by the State Electrical Board under subdivision (5) of section 81-2104, the National Electrical safety Code, the Institute of Electrical and Electronics Engineers, and the Underwriters Laboratories; and must be equipped to automatically isolate the QF from the electrical system in the event of an electrical power outage or other conditions where the line is de-energized. An outside- mounted visible device shall be installed on the customer’s side of the point of delivery/receipt that must be capable of preventing energizing the Utilities Department’s service line and provide for a means for the Department to operate and lock in place. The Utilities Department will provide a bi-directional meter for measurement of the flow of electricity in both directions. Energy produced by the QF during the billing period will be credited at the applicable retail rate for the customer, not including the customer charge. Energy produced by the QF in excess of the customer’s usage will applied as a credit to the customer’s account at the current month cost of energy per kilowatt-hour as defined in Division 6. At the end of the calendar year, any excess credits may be paid to the customer. It shall be unlawful for any person to connect an electric generating source to a system supplied electricity by the Grand Island Utilities Department without obtaining the aforesaid approval and inspection. Amended by Ordinance No. 9578, effective 03-29-2016 §15-50. Deposit Requirements (A) Except as provided below, all electric service accounts established under the commercial rate structure shall be required to maintain a deposit in an amount to be determined by the Utilities Department as set forth in this section. (B) Deposits for accounts in existence before September 1, 1983, shall be maintained in the amount established under the ordinances in effect at the time of the initial deposit, unless said deposit has been distributed under the provisions of this section. (C) Deposits for any account created on or after September 1, 1983, and deposits for all accounts for which service has been reinstated after being disconnected for nonpayment shall be maintained in an amount of not less than Two Hundred Dollars ($200), nor more than Two Thousand Dollars ($2,000), as determined by the Utilities Department. The amount of the deposit required shall be equal to two times the highest billed period of the last 12 billing periods, not to exceed Two Thousand Dollars ($2,000). For new construction or properties that have been Grand Island Council Session - 8/28/2018 Page 69 / 202 unoccupied for the last 12 billing periods, a similar property from an identically zoned business shall be used in establishing the required deposit amount. (D) From and after October 1, 2010, all deposits required herein shall accrue interest at the annually adjusted interest rate based on the 3 month LIBOR as of October 1, or the next business day. Interest shall be payable to the customer only at the time the deposit is refundable as provided in subsection E below. (E) The deposit required herein shall be refunded to the customer as follows: (1) When the electric service has been disconnected, whether at the request of the customer or for nonpayment of the customer's electric bill, or a new account has been created for said service with a different customer, and a final reading has been taken, any deposit on hand plus the accrued interest thereon, and minus the amount of any unpaid billing statement and other charges, shall be refunded to the customer; or (2) After at least two years of continuous service to the customer, if the monthly payments for the account have been made promptly, with no more than two delinquent payments during the twenty-four (24) month period immediately preceding the request, the customer may request the Utilities Department in writing to refund the deposit. Upon receipt of the request, and if the above conditions of prompt payment have been met, the Utilities Department shall refund any deposit on hand, plus the accrued interest to the customer. For the purposes of this subsection, a payment shall be deemed delinquent if made more than fifteen (15) days after the date set forth on the monthly billing statement. Amended by Ordinance No. 9275, effective 09-29-2010 Amended by Ordinance No. 9523, effective 03-17-2015 Amended by Ordinance No. 9578, effective 03-29-2016 §15-51. Payment Conditions (1) All bills are due when received. (2) If full payment is not received by the due date stated on the bill, a late payment charge shall be assessed in accordance with the City of Grand Island Fee Schedule. (3) A service charge shall be collected before reconnection, in each instance of disconnection for nonpayment of billing. If reconnection is demanded after business hours, an additional fee shall apply. The charges for reconnection shall be in accordance with the City of Grand Island Fee Schedule. (4) A service charge in accordance with the City of Grand Island Fee Schedule will be assessed for each check returned for insufficient funds. This charge is in addition to any other charges. (5) A service charge in accordance to the City of Grand Island Fee Schedule shall be collected, before all new connections are made by the Utilities Department. (6) A service charge in accordance with the City of Grand Island Fee Schedule shall be collected, to transfer service from one occupant to another occupant at the same location. (7) Service periods are normally for periods of one year or longer. If it appears that services are being disconnected and reconnected within a twelve-month period, in order to avoid minimum billing charges; an amount equivalent to the minimum billings for the disconnected period (not to exceed eleven months) must be paid before the service is reconnected. This is in addition to the normal connection charges. Amended by Ordinance No. 9523, effective 3-17-2015 §15-52. Rate Assignment The Grand Island Utilities Department will attempt to assign customers to the lowest applicable rate. It is the customer's responsibility to inform the Utilities Department of any changes that may affect the assignment or billing conditions within a given rate. The customer is in a better position than the Utilities Department to analyze electric usage. When more than one rate assignment is applicable, the customer may select the rate considered the most beneficial. Customer-requested rate re-assignments will not be made more frequently than once every twelve months. In no event will the Utilities Department be responsible for losses incurred due to improper rate assignment. At customer request, demand metering will be installed by the Utilities Department. The Utilities Department may, at its option, assess a one-time charge of $200.00 to pay the additional metering facilities. §15-53. Power Factor The customer shall install power-factor correction equipment, if necessary, to ensure a power factor of no less than 90%, lagging or leading. Grand Island Council Session - 8/28/2018 Page 70 / 202 §15-54. Arc Welders and X-Ray Units Electric transformer type arc welders or x-ray units shall not be used on Residential or Single Phase Commercial Services. When used on Three Phase Services, the welder or x-ray unit KVA may be converted to horsepower for determination of connected horsepower at the rate of 746 watts per horsepower, minimum connection five horsepower. Division 2. Residential Service §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 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 meter reading; and the second for the winter season of seven months, beginning with the November meter reading. Summer Rate Beginning October 1, 2007 Kilowatt-Hours Used Per Month (June – October) First 300 KWH……………………………………….$0.085 per KWH Next 700 KWH………………………………………$0.060 per KWH All additional KWH………………………………….$0.067 per KWH Plus a customer charge of $5.00 per month, in addition to that charged for the 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 $0.105 $0.105 Next 700 kWh, per kWh 0.083 0.064 All additional kWh, per kWh 0.083 0.057 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge. electrical energy used, plus the applicable Power Cost Adjustment charge. The minimum monthly bill shall be $5.00 prior to the Power Cost Adjustment. Winter Rate Beginning October 1, 2007 Kilowatt-Hours Used Per Month (November - May) First 300 KWH………………………………………. $0.085 per KWH Next 700 KWH……………………………………… $0.060 per KWH Additional KWH…………………………………….. $0.039 per KWH Plus a customer charge of $5.00 per month, in addition to that charged for the electrical energy used, plus the applicable Power Cost Adjustment charge. The minimum monthly bill shall be $5.00 prior to the Power Cost Adjustment. Grand Island Council Session - 8/28/2018 Page 71 / 202 Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ord. No. 9133, effective 09-18-2007 Amended by Ord. No. 9523, effective 03-17-2015 §15-56. Service Specifications Residential Service shall be supplied at a nominal voltage of 120/240 Volts or 120/208 Volts single phase. Amended by Ordinance No. 9578, effective 03-29-2016 Division 3. Commercial Service §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 Utilities Department must be notified in writing, if a motor over 5 HP is installed. Kilowatt-Hours Used Per Month Rates Beginning October 1, 2007 First 350 KWH…………………………………….$0.090 per KWH Next 650 KWH…………………………………….$0.080 per KWH Next 1,500 KWH…………………………………..$0.074 per KWH Next 2,500 KWH…………………………………..$0.070 per KWH Next 5,000 KWH…………………………………..$0.064 per KWH Over 10,000 KWH………………………………...$0.061 per KWH Plus a customer charge of $7.00 per month, in addition to that charged for the electrical energy used, plus the applicable Power Adjustment charge. The minimum monthly bill shall be $7.00 prior to the Power Adjustment. Rate: Effective Date: October 1, 2018 Customer Charge, per month $12.00 Energy Charge First 1,000 kWh, per kWh $0.107 All additional kWh, per kWh 0.080 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 9133, effective 09-18-2007 §15-58. Service Specifications Single-Phase Commercial service shall be supplied at a nominal voltage of 120/240 Volts or 120/208 Volts single phase. Amended by Ordinance No. 9578, effective 03-29-2016 §15-59. Discounts for Primary Service If the Single-Phase Commercial user owns and maintains all necessary transformation equipment and Grand Island Council Session - 8/28/2018 Page 72 / 202 structures, a 3% reduction will be made in the energy billed. If energy is metered on the primary side (7.2 KV or above) of the service, a 2% reduction will be made in the energy billed. These discounts, however, do not apply to the minimum stated. §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 meter reading; and the second for the winter season of seven months, beginning with the November meter reading. Summer Rate Beginning October 1, 2007 Kilowatt-Hours Used Per Month (June - October) First 1,000 KWH………………………… $0.087 per KWH Next 1,500 KWH………………………... $0.079 per KWH Next 2,500 KWH………………………... $0.075 per KWH Next 15,000 KWH………………………. $0.069 per KWH Over 20,000 KWH……………………….$0.066 per KWH Plus a customer charge of $10.00 per month, in addition to that charged for the electrical energy used, plus the applicable Power Cost Adjustment charge. Winter Rate Beginning October 1, 2007 Kilowatt-Hours Used Per Month (November - May) First 500 KWH…………………………... $0.087 per KWH Next 1,000 KWH………………………... 0.079 per KWH Next 2,500 KWH………………………... $0.066 per KWH Over 4,000 KWH………………………...$0.063 per KWH Plus a customer charge of $10.00 per month, in addition to that charged for the electrical energy used, plus the applicable Power Cost Adjustment charge. Minimum The minimum monthly charge shall be no less than $10.00. The minimum shall in no event be less than $0.70 per month per connected horsepower. The billing horsepower shall be determined as follows: 1. Total connected horsepower, if total connected horsepower is less than 20 HP. 2. If total connected horsepower exceeds 20 HP, then the billing horsepower shall be the larger of 20 HP, or the largest single connected motor. 3. If questions arise as to the actual billing horsepower, the Utilities Department may, at its option, install demand meters. The Kilowatt reading shall determine the billing horsepower on the basis of 0.75 Kilowatt = 1.0 HP.Rate: 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 $0.107 Next 4,000 kWh, per kWh 0.095 All additional kWh, per kWh 0.087 First 500 kWh, per kWh $ 0.107 Next 1,000 kWh, per kWh 0.095 All additional kWh, per kWh 0.082 Grand Island Council Session - 8/28/2018 Page 73 / 202 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the larger of the following: 1. Customer Charge, or 2. Total connected HP x $0.70 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 responsibility of the customer, to inform the Utilities Department of changes that may affect minimum billings. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ord. No. 9133, effective 09-18-2007 Amended by Ord. No. 9523, effective 03-17-2015 §15-61. Service Specifications New Three-Phase Commercial Services are supplied at three phase, four wire wye, at 120/208 Volts or 277/480 Volts. Delta services must operate ungrounded, unless prior written approval is obtained by the customer from the City Utilities Department. Current unbalance between phases should not exceed 15%. Amended by Ordinance No. 9578, effective 03-29-2016 §15-62. Discounts for Primary Service If the Three-Phase Commercial user owns and maintains all necessary transformation equipment and structures, a 3% reduction will be made in the energy billed. If energy is metered on the primary side (7.2 KV or above) of the service, a 2% reduction will be made in the energy billed. These discounts, however, do not apply to the minimum stated. Division 4. Power Service §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. Beginning October 1, 2007 Demand Charge $8.50 per KW of billing demand Energy Charge $0.0355 per KWH for the first 450 hours of monthly demand Grand Island Council Session - 8/28/2018 Page 74 / 202 $0.0290 per KWH for all additional usage; plus applicable Power Cost Adjustment charge. Customer Charge $300.00 per month. The minimum monthly bill shall be no less than $700. The Power Cost Adjustment charge is applied to energy consumption only. 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, per kWh First 450 kWh per kW of demand $0.051 $0.047 All additional energy 0.042 0.039 Plus the applicable Power Cost Adjustment charge (applied to energy consumption only). Minimum Bill: The minimum monthly bill shall be no less than $700. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ord. No. 9133, effective 09-18-2007 §15-64. Billing Demand During the months of June through October, the Billing Demand shall be the Summer Demand. During the months of November through May, the Billing Demand shall be the measured Monthly Demand, but not more than the Summer Demand nor less than 65% of the Summer Demand. The Monthly Demand shall be the highest rate of use in KW during a time interval of the meter reading period as established by the Utilities Department, based upon the nature of the business of the customer. In no event shall the Monthly Demand be less than 50 KW. The Summer Demand shall be defined as the maximum of the Monthly Demands established during June through October but not less than the Summer Demand established during the previous eleven months. The Monthly Demand shall be the highest integrated demand (in kW) during a 15-minute time interval in the billing period. For purposes of this section, Summer Months shall be June through October. Winter Months shall be November through May. The Billing Demand shall be the greater of: 1. The Monthly Demand Grand Island Council Session - 8/28/2018 Page 75 / 202 2. 65% of the Monthly Demand in the five (5) most recent Summer Months Amended by Ord. No. 9523, effective 03-17-2015 §15-65. Service Specifications Any standard, nationally recognized, three-phase voltage will be supplied if transformation is available. §15-66. Discounts for Primary Service If Three-Phase Power energy is metered on the primary side (7.2 KV or above) of the service, a 3% reduction will be made in the energy billed. In addition, if the user owns and maintains all necessary transformation equipment and structures, a 5% reduction will be made in the demand billed. These discounts, however, do not apply to the minimum stated. §15-67. Waiver of Demand Charge For customers developing a new site or significantly expanding an existing facility, the Utilities Department may waive the charge on the incremental demand for the first twelve months of service. Customers developing a new site must have an anticipated load of at least 500 KW; these customers will have the entire demand charge waived for the twelve month period. An expansion must result in at least 300 KW additional load, based on largest historical Summer Demand at the facility. During the months from June through October, the demand charge in excess of this historical Summer Demand will be waived. During the months from November through May, the Billing Demand for the corresponding month of the previous year will be used as the Billing Demand. Customers applying for this waiver must remain on Rate 100 for at least twelve months after resumption of full demand billing. For the twelve months after resumption of full demand billing, the Summer Demand will reflect the waived demand. The Summer Demand for new customers will be not less than 500 KW. The Summer Demand for plant expansions will be not less than 300 KW above the historical Summer Demand. Written application for waiver of demand charge must be made prior to connection of such new load to the City electric system, and shall be subject to the approval of the Utilities Director. Amended by Ordinance No. 9578, effective 03-29-2016 Division 5. Area Flood Lighting §15-68. 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. Luminare will be selected by Utilities Department and provided from Utilities Department stock. For installation on an existing wood pole, and connected to existing overhead secondary conductors on such pole, the rate is $0.76 per watt per year billed on a monthly basis beginning October 1, 2006. Power Cost Adjustment is not applicable to the Area Floodlighting Rate. 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. Grand Island Council Session - 8/28/2018 Page 76 / 202 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 LED: 25 watt lamp $4.60 50 watt lamp $5.70 100 watt lamp $7.37 Halogen: 500 watt lamp $19.26 Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ord. No. 9064, effective 9-6-2006 Amended by Ordinance No. 9578, effective 03-29-2016 §15-69. Contract Period and Conditions Service under Rate 114 is available for a minimum period of 24 months and thereafter until terminated by thirty (30) days notice in writing. The City of Grand Island will install, own, and operate and maintain all area lighting equipment under this schedule. If underground service is desired, approval of the City must be obtained and the additional cost therefor shall be paid in advance to the City by the consumer on a nonrefundable basis. The burning of the lamps shall be controlled by automatic control equipment installed by the City and burning time shall be approximately thirty minutes after sunset to approximately thirty minutes before sunrise. The City shall be notified by the consumer of any operational failure of lamps. Lamp replacement or repairs will be performed only during regular working hours. Non-Standard Installations: If underground service is desired or extension of overhead secondary facilities is required or special materials are requested, approval of the City must be obtained. All additional cost for materials and labor shall be paid in advance to the City, by the consumer, on a nonrefundable basis. Amended by Ord. No. 8940, effective 1-1-2005 Division 6. Power Cost Adjustment §15-70. Power Cost Adjustment The rates set out in this chapter are predicated upon a base power cost of 15.00 mills per kilowatt-hour. When the City's cost of energy per kilowatt-hour shall temporarily be greater than 15.00 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 15.00 mills per kilowatt-hour. The rates set out are predicated upon a base power cost of 3835.00 mills per kilowatt-hour. When the City’s cost of energy per kilowatt-hour shall temporarily be greater than 3835.00 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 Grand Island Council Session - 8/28/2018 Page 77 / 202 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 3835.00 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. If a permanent increase in the contract cost of energy to the City occurs, beginning with the month that the cost increase becomes effective, the six-month average of the cost of energy per kilowatt-hour may be recalculated; using the new increased cost of energy, to compute the affected components of the cost of energy for the previous six months. This revised six-month average of the cost of energy per kilowatt hour shall then be applied to the consumer's monthly charge for electricity used without any City Council action. 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 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. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ordinance No. 9578, effective 03-29-2016 Division 7. Interdepartmental Rates §15-71. Interdepartmental Rates Municipal accounts shall be assigned to standard retail Rate 30 or Rate 50 as appropriate. An Interdepartmental discount shall be assigned to non-enterprise accounts. The discount for calendar year 2005 is $0.01 per kWh for Rate 50 Interdepartmental accounts and $0.03 per kWh for Rate 30 Interdepartmental accounts. The discount beginning calendar year 2006 is $0.003 per kWh for both Rate 50 and Rate 30 Interdepartmental accounts. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 §15-72. Reserved Deleted by Ord. No. 8940, effective 1-1-2005 §15-73. Reserved Deleted by Ord. No. 8940, effective 1-1-2005 §15-74. Rate 116; Interdepartmental; Streetlights The monthly charge for various size lights used for public street lighting and public parks lighting, whether City or privately-owned shall be $0.38 per watt per year billed on a monthly basis beginning October 1, 2007. Power Cost Adjustment is not applicable to the Interdepartmental Streetlights Rate. Applicable for various size lights used for public street lighting and public parks lighting, whether City or privately- owned. 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: Grand Island Council Session - 8/28/2018 Page 78 / 202 175 watt lamp $5.00 400 watt lamp $9.39 1,000 watt lamp $18.55 High Pressure Sodium: 100 watt lamp $3.75 250 watt lamp $6.19 400 watt lamp $7.34 Metal Halide: 100 watt lamp $4.50 400 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. Amended by Ord. No. 8940, effective 1-1-2005 Amended by Ord. No. 8946, effective 1-5-2005 Amended by Ord. No. 9133, effective 09-18-2007 §15-75. Reserved Deleted by Ord. No. 8940, effective 1-1-2005 §15-76. Reserved Grand Island Council Session - 8/28/2018 Page 79 / 202 ORDINANCE NO. 9704 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney An ordinance to amend the Grand Island City Code; Sections 15-55, 15-57, 15-60, 15-63, 15-64, 15-68, 15-70 and 15-74, pertaining to electric utility rates; to repeal Sections 15-55, 15- 57, 15-60, 15-63, 15-64, 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 $0.105 $0.105 Next 700 kWh, per kWh 0.083 0.064 All additional kWh, per kWh 0.083 0.057 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge. Grand Island Council Session - 8/28/2018 Page 80 / 202 ORDINANCE NO. 9704 (Cont.) 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 $0.107 All additional kWh, per kWh 0.080 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the monthly customer charge. 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 Council Session - 8/28/2018 Page 81 / 202 ORDINANCE NO. 9704 (Cont.) 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 $0.107 Next 4,000 kWh, per kWh 0.095 All additional kWh, per kWh 0.087 First 500 kWh, per kWh $ 0.107 Next 1,000 kWh, per kWh 0.095 All additional kWh, per kWh 0.082 Plus the applicable Power Cost Adjustment charge. Minimum Bill: The minimum monthly bill shall be the larger of the following: 1.Customer Charge, or 2.Total connected HP x $0.70 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 responsibility of the customer to inform the City Utilities Department of changes that may affect minimum billings. SECTION 4. Section 15-63 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 Council Session - 8/28/2018 Page 82 / 202 ORDINANCE NO. 9704 (Cont.) 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, per kWh First 450 kWh per kW of demand $0.051 $0.047 All additional energy 0.042 0.039 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 15-64 of the Grand Island City Code is hereby amended to read as follows: §15-64. Billing Demand The Monthly Demand shall be the highest integrated demand (in kW) during a 15-minute time interval in the billing period. For purposes of this section, Summer Months shall be June through October. Winter Months shall be November through May. The Billing Demand shall be the greater of: 1. The Monthly Demand 2. 65% of the Monthly Demand in the five (5) most recent Summer Months SECTION 6. 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. Grand Island Council Session - 8/28/2018 Page 83 / 202 ORDINANCE NO. 9704 (Cont.) 5 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 LED: 25 watt lamp $4.60 50 watt lamp $5.70 100 watt lamp $7.37 Halogen: 500 watt lamp $19.26 SECTION 7. 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 35.00 mills per kilowatt-hour. When the City’s cost of energy per kilowatt-hour shall temporarily be greater than 35.00 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 35.00 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: Grand Island Council Session - 8/28/2018 Page 84 / 202 ORDINANCE NO. 9704 (Cont.) 6 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, energy, and transmission 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. SECTION 8. 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. 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 $5.00 400 watt lamp $9.39 1,000 watt lamp $18.55 High Pressure Sodium: 100 watt lamp $3.75 250 watt lamp $6.19 400 watt lamp $7.34 Metal Halide: 100 watt lamp $4.50 400 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. Grand Island Council Session - 8/28/2018 Page 85 / 202 ORDINANCE NO. 9704 (Cont.) 7 SECTION 9. Those portions of Sections 15-55; 15-57; 15-60; 15-63, 15-64, 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 10. The validity of any section, subsection, sentence, clause or phrase of this ordinance shall not affect the validity or enforceability of any other section, subsection, sentence, clause or phrase thereof. SECTION 11. 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: August 28, 2018 _______________________________ Jeremy L. Jensen, Mayor ATTEST: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 86 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item F-4 #9705 - Consideration of Request to Rezone Property located South of Capital Avenue and East of Beal Street and North of the Intersection of 12th Street and Lambert Street from R2-Low Density Residential to R3-SL (The Orchard, LLC.) This item relates to the aforementioned Public Hearing item E-2. Staff Contact: Chad Nabity Grand Island Council Session - 8/28/2018 Page 87 / 202 Approved as to Form ¤ ___________ October 18, 2006 ¤ City Attorney ORDINANCE NO. 9705 An ordinance rezoning a certain tract of land within the zoning jurisdiction of the City of Grand Island; changing the land use classification of a part of the east half (E ½) of the northwest quarter (NW ¼) of Section Ten (10), Township Eleven (11) north, Range Nine (9) west of the 6th P.M. in the City of Grand Island, Hall County, Nebraska as more particularly described below, from R-3 Low Density Residential and LLR Large Lot Residential to R-3SL Medium Density Small Lot Residential Zone; directing that such zoning change and classification be shown on the Official Zoning Map of the City of Grand Island; and providing for publication and an effective date of this ordinance. WHEREAS, the Regional Planning Commission on August 1, 2018, held a public hearing on the proposed zoning of such area; and WHEREAS, notice as required by Section 19-923, R.R.S. 1943, has been given to the Boards of Education of the school districts in Hall County, Nebraska; and WHEREAS, after public hearing on August 28, 2018, the City Council found and determined the change in zoning be approved and made. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA: SECTION 1. The following tracts of land are hereby rezoned, reclassified and changed from R-2 Low Density Residential and LLR Large Lot Residential to R-3SL Medium Density Small Lot Residential Zone; R2 to R-3SL: BEGINNING AT THE SOUTHEAST CORNER OF LOT 8, BLOCK 4, GEORGE LOAN'S SUBDIVISION, SAID CORNER ALSO BEING THE SOUTHWEST CORNER OF THE REFERENCED PARCEL; SAID CORNER ALSO BEING THE POINT OF BEGINNING: THENCE NORTHERLY ON AN ASSUMED BEARING OF N 00°48'02" W, 618.98 FEET TO A FOUND 1" PIPE, THENCE EASTERLY N 88°53'18" E, 47.89 FEET TO A FOUND 1" PIPE, Grand Island Council Session - 8/28/2018 Page 88 / 202 ORDINANCE NO. 9705 (Cont.) - 2 - THENCE NORTHERLY N 00°02'43" W, 58.16 FEET TO A FOUND 1" PIPE, THENCE WESTERLY N 88°34'08" W, 35.11 FEET TO A FOUND 1" PIPE, THENCE NORTHERLY N 00°35'34" W, 575.81 FEET TO A FOUND 1" PIPE, THENCE EASTERLY N 89°52'08" E, 34.94 FEET, TO A FOUND 1" PIPE, THENCE NORTHERLY N 00°35'21" W, 217.37 FEET, TO A FOUND 1" PIPE, THENCE WESTERLY S 90°00'00" W, 75.00 FEET TO A FOUND 1" PIPE, THENCE NORTHERLY N 00°35'21" W, 556.18 FEET TO A FOUND 1" PIPE, THENCE EASTERLY S 90°00'00" E, 75.00 FEET TO A FOUND 1" PIPE, THENCE CONTINUING EASTERLY N 89°39'54" E, 403.78 FEET TO A POINT OF INTERSECTION ON THE WESTERLY RIGHT-OF-WAY LINE OF THE UNION PACIFIC RAILROAD, TO A FOUND 1" PIPE, THENCE SOUTHERLY S 03°40'02" E, ON SAID RIGHT-OF-WAY LINE, 2072.09 FEET TO A FOUND 1" PIPE, THENCE WESTERLY S 89°41'12" W, 403.53 FEET TO A FOUND 1" PIPE, THENCE NORTHERLY N 28°52'34" W, 45.36 FEET TO A FOUND 1" PIPE, THENCE WESTERLY S 89°52'45" W, 136.00 FEET TO THE POINT OF BEGINNING. LLR to R-3SL: THE EASTERLY SEVENTY-FIVE (75) FEET OF LOTS TWO (2) AND THREE (3) OF NORWOOD SUBDIVISION IN THE CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA SECTION 2. That the Official Zoning Map of the City of Grand Island, Nebraska, as established by Section 36-51 of the Grand Island City Code be, and the same is, hereby ordered to be changed, amended, and completed in accordance with this ordinance. SECTION 3. That this ordinance shall be in force and take effect from and after its passage and publication, within fifteen days in one issue of the Grand Island Independent as provided by law. Enacted: August 28, 2018 ____________________________________ Jeremy L. Jensen, Mayor Attest: ________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 89 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-1 Approving Minutes of August 21, 2018 City Council Special Meeting Staff Contact: RaNae Edwards Grand Island Council Session - 8/28/2018 Page 90 / 202 CITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL SPECIAL MEETING August 21, 2018 Pursuant to due call and notice thereof, a Special Meeting of the City Council of the City of Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on August 21, 2018. Notice of the meeting was given in The Grand Island Independent on August 15, 2018. Mayor Jeremy L. Jensen called the meeting to order at 6:00 p.m. The following City Council members were present: Mitch Nickerson, Mark Stelk, Jeremy Jones, Chuck Haase, Julie Hehnke, Linna Dee Donaldson, Vaughn Minton, Roger Steele and Mike Paulick. Councilmember Michelle Fitzke was absent. The following City Officials were present: City Administrator Marlan Ferguson, City Clerk RaNae Edwards, Finance Director Patrick Brown, City Attorney Jerry Janulewicz, and Public Works Director John Collins. PLEDGE OF ALLEGIANCE was said. CONSENT AGENDA: Motion by Donaldson, second by Hehnke to approve the Consent Agenda. Upon roll call vote, all voted aye. Motion adopted. Approving Minutes of August 14, 2018 City Council Regular Meeting. #2018-241 - Approving 2018 GIPD and HCSO Justice Assistance Grant (JAG) Application and Funding. Councilmember Jones abstained. RESOLUTIONS: #2018-242 - Consideration of Approving FTE’s for FY 2018-2019. Assistant Finance Director William Clingman reported that every year during the budget approval, administration reviews the FTE changes they had incorporated into the budget. The following proposed FTE’s were presented: Addition of one HPSP Office Clerk Reduction of one Senior Accounting Clerk Addition of .75 of an FTE for Solid Waste for a full-time employee Reallocation of the Accounting Technician – Streets, moving .40 of the cost of an FTE from Fleet Services to the 210 Fund (Streets) Mr. Clingman reviewed the ending cash balance through 2028. Discussion was held concerning adding more FTE’s. Police Chief Robert Falldorf answered questions regarding overtime and part-time officers at the Airport. He stated having part-time officers at the airport would not reduce the overtime budget. Lateral transfers would allow the Police Department to have officers on the street sooner. Motion by Minton, second by Donaldson to approve Resolution #2018-242. Grand Island Council Session - 8/28/2018 Page 91 / 202 Page 2, City Council Special Meeting, August 21, 2018 Comments were made concerning hiring more Police Officers instead of an addition of one HPSP Office Clerk. Parks & Recreation Director Todd McCoy explained the need for the HPSP Office Clerk. He stated the Heartland Public Shooting Park was a growing facility and brought in a lot of events which had an economic impact in our community. Motion by Nickerson to hire 4 part-time Police officers for Airport security. Motion died due to a lack of a second. Discussion was held regarding the on-line sales tax. Comments were made concerning looking at the FTE’s after the election of the 1/2 cent sales tax. Motion by Paulick, second by Steele to delete the addition of one HPSP Office Clerk to the FTE’s. Upon roll call vote, Councilmembers Paulick, Steele, Minton, Donaldson, Hehnke, Haase, and Stelk voted aye. Councilmember Jones and Nickerson voted no. Motion adopted. Discussion was held concerning the Airport security issue and hiring 4 part-time Police Officers to allow one full-time officer to stay on the street. A lengthy discussion was held regarding what to cut to pay for the extra officers. Chief Falldorf stated it would be hard to cut any from his operating budget. Fire Chief Cory Schmidt commented on the future needs of his department. He stated they were having more re-calls in order to cover the calls which showed the need for more employees. They were at their max capacity most days. They were trying to do more with less but by doing that they were less effective. He explained why the engine company responded to calls along with the ambulance. Motion by Jones, second by Nickerson to add 4 part-time Police Officers for Airport security. Upon roll call vote, Councilmembers Donaldson, Jones, and Nickerson voted aye. Councilmembers Paulick, Steele, Minton, Hehnke, Haase, and Stelk voted no. Motion failed. Upon roll call vote of the main motion to approve Resolution #2018-242, Councilmembers Paulick, Steele, Minton, Donaldson, Hehnke, Haase, Jones, and Stelk voted aye. Councilmember Nickerson voted no. Motion adopted. #2018-243 - Consideration of Approving Labor Agreement between the City of Grand Island and the International Brotherhood of Electrical Workers (IBEW), Local 1597 Service/Clerical/Finance. Human Resources Director Aaron Schmid reported that the International Brotherhood of Electrical Workers (IBEW), Local 1597 Service/Clerical and the International Brotherhood of Electrical Workers (IBEW), Local 1597 Finance had negotiated terms of a new agreement and agreed to combine the two labor contracts into one agreement. Mr. Schmid reviewed the changes to the contract which would begin October 1, 2018 and run through September 30, 2021. Staff recommended approval. Motion by Paulick, second by Minton to approve Resolution #2018-243. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 8/28/2018 Page 92 / 202 Page 3, City Council Special Meeting, August 21, 2018 #2018-244 - Consideration of Approving Revisions to the Personnel Rules and Regulations. Assistant Finance Director William Clingman reviewed the following proposed Personnel Rules and Regulations changes: 1.Testing for “opiates” will be replaced with “opioids” to account for synthetic varieties of the drug. 2.Tobacco use shall now include e-cigarettes. 3.Employees will be allowed to donate annual leave in addition vacation leave to the Community Leave Bank. 4.Clarification is provided to Community Leave that leave periods include consecutive and intermittent leave. 5.“Accepting and/or” was added to, “soliciting favors, gifts, services, or bribes in the conduct of City business.” Clarification is provided that employees must be in an active status on their final day of employment (i.e. cannot “vacation out”). 6.Retirement distribution information will now be referenced by the current plan documents. 7.The City Government Computer Network policy and the Reimbursable Business Travel Expenses policy will be located on the City’s Performance Pro website. This move will reduce the length of the Personnel Rules and Regulations. Council will still have authority over these policies and employees will still acknowledge review of these policies. 8.Temporary and Seasonal employment categories are individually defined as they are separate categories. 9.Promotional step placement is further defined. 10.Leave request language has been updated to reflect the use of MUNIS. 11.Vacation leave has been converted from days to hours. “Years 20 through 24” have been increased to 180 hours and “Year 25 and beyond” has been increased to 200 hours. The increase in hours is an internal equity adjustment to match a union contract. 12.Clarification is provided that part-time employees who work at least 30 hours per week will accrue vacation at a prorated amount. 13.The maximum amount of medical leave has been adjusted to 1,106 hours. Compensation for unused medical leave at retirement has been adjusted to 53%. The changes are an internal equity adjustment to match a union contract. 14.Extended use of medical leave is allowed for immediate family members provided the terms of Family Medical Leave are met. 15.A section on dental insurance was added. In the past health and dental were under one plan. Currently they are separate plans. 16.A section on vision insurance was added. Eligible employees may participate in the plan and pay the full premium. 17.Clarifying language was added to life/accidental death insurance regarding coverage for spouses and children. 18.The terms of the retirement savings plan has been defined. The contributions have been increase to 7.5%. The changes are an internal equity adjustment to match two union contracts. Grand Island Council Session - 8/28/2018 Page 93 / 202 Page 4, City Council Special Meeting, August 21, 2018 19.The terms of the retirement savings plan has been defined. The contributions have been increase to 7.5%. The changes are an internal equity adjustment to match two union contracts. Motion by Stelk, second by Hehnke to approve Resolution #2018-244. Discussion was held regarding the non-union pension increase. Motion by Haase, second by Paulick to remove the non-union pension increase of 1.5%. Upon roll call vote, Councilmembers Paulick, Steele, Donaldson, Hehnke, Haase, and Stelk voted aye. Councilmembers Minton, Jones and Nickerson voted no. Motion adopted. Upon roll call vote of the main motion to approve Resolution #2018-244, Councilmembers Paulick, Steele, Minton, Donaldson, Hehnke, Haase, Jones, and Stelk voted aye. Councilmember Nickerson voted no. Motion adopted. ORDINANCES: Councilmember Minton moved “that the statutory rules requiring ordinances to be read by title on three different days are suspended and that ordinance numbered: #9701 - Consideration of Approving Salary Ordinance be considered for passage on the same day upon reading by number only and that the City Clerk be permitted to call out the number of this ordinance on second reading and then upon final passage and call for a roll call vote on each reading and then upon final passage.” Councilmember Nickerson seconded the motion. Upon roll call vote, Councilmembers Paulick, Steele, Minton, Donaldson, Hehnke, Jones, Stelk, and Nickerson voted aye. Councilmember Haase voted no. Motion adopted. City Administrator Marlan Ferguson reported that each year during the budget process a salary ordinance was presented. Wage changes were presented for bargaining units according to their respective labor agreements and non-union positions. Staff recommended approval. Motion by Minton, second by Stelk to approve Ordinance No. 9701. Motion by Haase, second by Steele to remove the HPSP Clerk position. Upon roll call vote, Councilmembers Paulick, Steele, Donaldson, Hehnke, Haase, Jones, Stelk, and Nickerson voted aye. Councilmember Minton voted no. Motion adopted. City Clerk: Ordinance #9701 on first reading. All those in favor of the passage of this ordinance on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. City Clerk: Ordinance #9701 on second and final reading. All those in favor of the passage of this ordinance on second and final reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted. Grand Island Council Session - 8/28/2018 Page 94 / 202 Page 5, City Council Special Meeting, August 21, 2018 Mayor Jensen: By reason of the roll call votes on first reading and then upon second and final readings, Ordinance #9701 is declared to be lawfully adopted upon publication as required by law. SPECIAL ITEMS: Discussion Concerning Proposed Fiscal Year 2018-2019 City of Grand Island Budget. City Administrator Marlan Ferguson commented on the budget being online through OpenGov. The rest of the budget would be available in the next couple of days. ADJOURNMENT: The meeting was adjourned at 7:49 p.m. RaNae Edwards City Clerk Grand Island Council Session - 8/28/2018 Page 95 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-2 Approving Appointment of Patrick Brown to the Firefighters and Police Pension Committees Mayor Jensen has submitted the appointment of Finance Director Patrick Brown to the Firefighters and Police Pension Committees to replace Assistant Finance Director William Clingman. The appointment would become effective immediately upon approval by the City Council and would expire on December 31, 2020. Staff Contact: Mayor Jeremy Jensen Grand Island Council Session - 8/28/2018 Page 96 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-3 Approving Request from Jennifer Hansen, 502 West Egypt, Cairo, Nebraska for Liquor Manager Designation with Applebee’s Neighborhood Bar & Grill, 721 Diers Avenue Staff Contact: RaNae Edwards Grand Island Council Session - 8/28/2018 Page 97 / 202 Council Agenda Memo From:RaNae Edwards, City Clerk Meeting:August 28, 2018 Subject:Request from Jennifer Hansen, 502 West Egypt, Cairo, Nebraska for Liquor Manager Designation with Applebee’s Neighborhood Bar & Grill, 721 Diers Avenue Presenter(s):RaNae Edwards, City Clerk Background Jennifer Hansen, 502 West Egypt, Cairo, Nebraska has submitted an application with the City Clerk’s Office for a Liquor Manager Designation in conjunction with Applebee’s Neighborhood Bar & Grill, 721 Diers Avenue. This application has been reviewed by the Police Department and City Clerk’s Office. See Police Department report attached. Discussion City Council action is required and forwarded to the Nebraska Liquor Control Commission for issuance of all liquor manager designations. All departmental reports have been received. Staff recommends approval contingent upon completion of a state approved alcohol server/seller training program. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Approve the requests. 2.Forward the requests with no recommendation. 3.Take no action on the requests. Grand Island Council Session - 8/28/2018 Page 98 / 202 Recommendation City Administration recommends that the Council approve the request for Liquor Manager Designation. Sample Motion Move to approve the request from Jennifer Hansen, 502 West Egypt, Cairo, Nebraska for Liquor Manager Designation in conjunction with the Class “I-101516” Liquor License for Applebee’s Neighborhood Bar & Grill, 721 Diers Avenue with the stipulation that Ms. Hansen complete a state approved alcohol server/seller training program. Grand Island Council Session - 8/28/2018 Page 99 / 202 Grand Island Council Session - 8/28/2018 Page 100 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-4 #2018-245 - Approving License Agreement with Southern Public Power District for Overhead Power Line at Heartland Public Shooting Park Staff Contact: Jerry Janulewicz Grand Island Council Session - 8/28/2018 Page 101 / 202 Council Agenda Memo From:Jerry Janulewicz, City Attorney Meeting:August 28, 2018 Subject:License Agreement with Southern Public Power District for Overhead Power Line at Heartland Public Shooting Park Presenter(s):Jerry Janulewicz, City Attorney Background Southern Public Power District (“Southern”) proposes to erect a new overhead electric line at the location of the Heartland Public Shooting Park. The line would be at a new area 10 feet west and 15 feet east of the present overhead transmission line centerline. Removal of the existing line would be scheduled to allow the fire department to burn the existing building near the northwest corner of the property. Discussion Southern originally asked that the city grant to it an easement for the location of the power line. Through discussions with the City’s legal department, Southern agreed that the proposed license agreement would be sufficient to meet its needs for placement of the overhead power line. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the License Agreement with Southern Public Power District. Sample Motion Move to approve the License Agreement with Southern Public Power District. Grand Island Council Session - 8/28/2018 Page 102 / 202 ELECTRIC TRANSMISSION LICENSE AGREEMENT SOUTHERN PUBLIC POWER DISTRICT PO BOX 1687, GRAND ISLAND NE 68802-1687 The undersigned City of Grand Island, Nebraska (hereinafter the Grantor), a political subdivision of the State of Nebraska for and in consideration of one dollar ($1.00) agreement, does hereby grant unto Southern Public Power District (hereinafter the District); a public corporation whose post office address is Grand Island, Nebraska, and to its successors or assigns; license to enter upon the lands of the undersigned, situated in the County of Hall, State of Nebraska and more particularly described as follows: SEE EXHIBIT “A” ATTACHED HERETO AND BY THIS REFERENCE PART HEREOF The District shall have the right to ingress and egress across and along the grantors property for any purpose in connection with its survey, construction, operation, maintenance, inspection, repair, removal, alteration, relocation, and reconstruction of said overhead electric facilities and related equipment. The District shall have the right at any time to trim or remove such trees and underbrush as may in any way endanger or interfere with the safe construction, operation, maintenance, alteration, or reconstruction of its overhead electric facilities and equipment used in connection therewith. It is understood that at pole locations, only a single pole will be used, and that the location of the poles will be such as to form the least possible interference to Grantors operations, so long as it does not materially increase the cost of construction. Compensation for the license granted hereby shall be in the amount of $25.00 per pole and/or anchor placed on the lands of the Grantor. Payment will be made after construction plans are final and number of poles and/or anchors can be determined. Grantor will be reimbursed for all crop damage caused during construction of the line. IN WITNESS WHEREOF, the undersigned has set his hand this______day of __________, 2018. CITY OF GRAND ISLAND By:____________________________________ Jeremy L. Jensen, Mayor * This Space Reserved for Register of Deeds * Grand Island Council Session - 8/28/2018 Page 103 / 202 - 2 - ACKNOWLEDGEMENT STATE OF NEBRASKA ) ) ss COUNTY OF HALL ) On _________________________, 2018, before me, the undersigned,, a Notary Public in and for said County and State, personally came Jeremy L. Jensen, Mayor of the City of Grand Island, Nebraska, a municipal corporation, known to me to be such officer and the identical person who signed the foregoing instrument, and acknowledged the same to be his voluntary act and deed on behalf of the City of Grand Island. WITNESS my hand and notarial seal the date above written. ______________________________________________ Notary Public My commission expires: ____________________ Accepted and agreed to this _________________, 2018. Southern Public Power District BY __________________________________ Grand Island Council Session - 8/28/2018 Page 104 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-245 WHEREAS, the Southern Public Power District desires to erect and maintain a new overhead power line at Heartland Public Shooting Park and is requesting the City grant it a license to use an area of the park for this purpose; and WHEREAS, removal of the existing overhead power line and its replacement at a new location will facilitate the city’s ability to remove a badly dilapidated building at the park. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand hereby approves the license agreement authorizing Southern Public Power District to place an overhead power line at the Heartland Public Shooting Park within an area. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 105 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-5 #2018-246 - Approving Final Plat and Subdivision Agreement for Prairie Commons 2nd Subdivision Staff Contact: Chad Nabity Grand Island Council Session - 8/28/2018 Page 106 / 202 Council Agenda Memo From:Regional Planning Commission Meeting:August 28, 2018 Subject:Prairie Commons Second Subdivision – Final Plat Presenter(s):Chad Nabity, AICP, Regional Planning Director Background This property is located south of Husker Highway and west of U.S. Highway 281 (8 lots, 1 outlot, 95.32 acres). This property is zoned CD Commercial Development Zone, B-2 General Business and RO Residential Office. Discussion The final plat for Prairie Commons Second Subdivision was considered by the Regional Planning Commission at the August 1, 2018 meeting. A motion was made by Robin Hendricksen and seconded by Greg Robb to approve the final plat as presented. A roll call vote was taken and the motion passed with 8 members present and voting in favor (O’Neill, Ruge, Robb, Mauer, Rainforth, Rubio, Hendricksen, and Randone) and no members present voting no. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that Council approve the final plat as presented. Sample Motion Move to approve as recommended. Grand Island Council Session - 8/28/2018 Page 107 / 202 Grand Island Council Session - 8/28/2018 Page 108 / 202 Developer/Owner Prataria Ventures, LLC PO Box 2078 Grand Island, NE 68802 To create 8 lots and one Outlot south of Husker Highway and west of U.S. Highway 281, in the City of Grand Island, in Hall County, Nebraska. Size: 95.32 acres Zoning: CD Commercial Development, B-2 General Business, and RO Residential Office Road Access: Public Streets are available and will be extended and built to city standards. Water Public: City water is available. Sewer Public: City sewer is available. Grand Island Council Session - 8/28/2018 Page 109 / 202 S02°24'14"E 1468.91'(M&R1) 1468.77'(P) 1469.1'(R)S88°13'51"W 827.64'(M&R1) 827.63'(P) 827.61'(R)N02°03'02"W 1278.91'(M&R1) 1279.01'(P) 1278.84'(R)N88°19'49"E 997.64'(M&R1) 997.68'(P) 998.22'(R) 287.28'(P) 288.75'(R) N88°21'52"E 289.93'(M&R1) N88°20'35"E 35.49'(M,R1&P) 35.5'(R) N01°39'25"W 12.00'(M,R1&P) 431.92'(P) 4 3 1 . 8 ' ( R ) S82°02'36"E 4 3 1 . 8 5 ' ( M & R 1 ) 287.28'(P) 288.75'(R) N88°21'27"E 287.27'(M&R1) LOT 1 LOT 2 LOT 3 LOT 4 LOT 5 OUTLOT 1 PRAIR IEV IEW STREETEWOLDT STREETFAX 308.384.8752 TEL 308.384.8750 Grand Island, NE 68802-1072 P.O. Box 1072 201 East 2nd Street POBPRAIRIEVIEWSTREETJAMESROADLANGENHE D E R S T R E E T Grand Island Council Session - 8/28/2018 Page 110 / 202 S01°30'13"E 1025.38'(M&R1)S43°06'49"W 28.28'(M&R1)N02°02'46"W 1291.84'(M&R1)S88°13'51"W 827.64'(M&R1) 827.63'(P) 827.61'(R) S88°06'49"W 754.09'(M&R1) S88°06'49"W 260.61'(M&R1) N80°11'30"W 49.34'(M&R1) S88°06'49"W 124.36'(M&R1) LOT 8LOT 7 LOT 6 PRAIRIEVIEW STREETCURVE TABLE FAX 308.384.8752 TEL 308.384.8750 Grand Island, NE 68802-1072 P.O. Box 1072 201 East 2nd Street Grand Island Council Session - 8/28/2018 Page 111 / 202 CURVE TABLE CURVE TABLE FAX 308.384.8752 TEL 308.384.8750 Grand Island, NE 68802-1072 P.O. Box 1072 201 East 2nd Street HUSKER HIGHWAY HIGHWAY 281PRAIRIEVIEW STREETHIGHWAY 281 PRAIRIEVIEW S T . LOT 1LOT 2 OUTLOT 1 LOT 8 LOT 1 OUTLOT 1 OUTLOT 1 OUTLOT 1 Grand Island Council Session - 8/28/2018 Page 112 / 202 FAX 308.384.8752 TEL 308.384.8750 Grand Island, NE 68802-1072 P.O. Box 1072 201 East 2nd Street Grand Island Council Session - 8/28/2018 Page 113 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-246 WHEREAS Prataria Ventures, LLC, A Nebraska Limited Liability Company, being and GI Hospital Real Estate LLC, A Nebraska Limited Liability Company, the said owners of the land described hereon, have caused the same to be surveyed, subdivided, platted and designated as “PRAIRIE COMMONS SECOND SUBDIVISION”, a subdivision on a tract of land comprising part of the Northeast Quarter (NE1/4) of Section Thirty-six (36), Township Eleven (11) North, Range Ten (10) West of the 6th P.M., in the City of Grand Island, Hall County, Nebraska, and has caused a plat thereof to be acknowledged by it; and WHEREAS, a copy of the plat of such subdivision has been presented to the Boards of Education of the various school districts in Grand Island, Hall County, Nebraska, as required by Section 19-923, R.R.S. 1943; and WHEREAS, a form of subdivision agreement has been agreed to between the owner of the property and the City of Grand Island. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the form of subdivision agreement herein before described is hereby approved, and the Mayor is hereby authorized to execute such agreement on behalf of the City of Grand Island. BE IT FURTHER RESOLVED that the final plat of PRAIRIE COMMONS SECOND SUBDIVISION, as made out, acknowledged, and certified, is hereby approved by the City Council of the City of Grand Island, Nebraska, and the Mayor is hereby authorized to execute the approval and acceptance of such plat by the City of Grand Island, Nebraska. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 114 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-6 #2018-247 - Approving Change Order #3 with General Electric International for Gas Turbine #3 Modified Hot Gas Path Inspection Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 115 / 202 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting Date:August 28, 2018 Subject:Gas Turbine #3 Modified Hot Gas Path Inspection at Burdick Generating Station - Change Order #3 Presenter(s):Timothy G. Luchsinger, Utilities Director Background Gas Turbine #3 is located at the Burdick Generating Station. The unit was commissioned in 2003 and is used for electrical power generation, primarily operating as a peaking unit for the City. A Borescope inspection performed in September of 2017 revealed that a compressor blade had come loose. An additional borescope inspection was done to find the liberated blade, but it was not located. Without knowing where the blade was located in the unit, it could move and cause further damage in the unit. A Modified Hot Gas Path Inspection was approved by Council on February 27, 2018, in the amount of $494,261.00. The Hot Gas Path Inspection commenced on May 21, 2018. Change Orders #1 and #2 were approved by Council on June 26, 2018 for a net increase to the contract of $50,878.83; for a contract cost of $545,139.83. Change Order #3 During the Hot Gas Path inspection, the ten primary and ten secondary fuel nozzles, and the combustion liners were sent to the repair facility for inspections. During the inspection process, flow test and visual inspections were completed. Several fuel nozzles did not meet the flow specifications and the combustion liners need repairs to maintain their function during operation. The repairs while in the facility will cost $132,090.13. New gaskets are needed to reassemble the fuel nozzles, those materials totaled $1,870.83. Grand Island Utilities supplemented the labor during disassembly and a credit was given in the amount of $5,037.92. The total of these repairs, parts, and credit increases the final contract to $674,062.87. Discussion The Modified Hot Gas Path inspection of GT3 Change Order #3 requires a net additional cost of $128,923.04 for a final contract cost of $674,062.87. Grand Island Council Session - 8/28/2018 Page 116 / 202 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends authorizing Change Order #3 to the GT3 Modified Hot Gas Path Inspection at Burdick Generating Station for an addition to the contract price of $128,923.04, to General Electric International, Inc., of Omaha, Nebraska. Sample Motion Move to approve Change Order #3 with General Electric International, Inc,. in the amount of $128,923.04, for the GT3 Modified Hot Gas Path Inspection at Burdick Generating Station. Grand Island Council Session - 8/28/2018 Page 117 / 202 DATE:August 28, 2018 CHANGE ORDER #3 TO:General Electric International, Inc.Contract:2018-51 11640 Arabor Street, Suite 200 Omaha, NE 68144 John Kottmann PROJECT:Gas Turbine #3 Modified Hot Gas Path Inspection You are hereby directed to make the following change in your contract: 1 Additional payment per the attached spreadsheet. ADD: The original Contract Sum 494,261.00$ Previous Change Order Amounts (Change Order #1 & #2)50,878.83$ The Contract Sum is increased by this Change Order 128,923.04$ The Contract Sum is decreased by this Change Order $ The total modified Contract Sum to date 674,062.87$ Approval and acceptance of this Change Order acknowledges understanding and agreement that the cost and time adjustments included represent the complete values arising out of and/or incidental to the work described therein. APPROVED:CITY OF GRAND ISLAND By:_________________________________Date ________________________ Attest: ___________________________________________________________ Approved as to Form, City Attorney ACCEPTED:General Electric International, Inc. By: _________________________________Date _________________________ $128,923.04 INTEROFFICE MEMORANDUM Grand Island Council Session - 8/28/2018 Page 118 / 202 City of Grand Island Utilities Department General Work Contract - Change Order #3 520.10710 Gas Turbine #3 Modified Hot Gas Path Inspection at Burdick Generating Station Comments:Additional work required due to inspection process Contractor: General Electric International, Inc.$494,261.00 Change Order Request Description Amount 001 Change Order #3: 002 Repairs while in facility 132,090.13$ 003 New gaskets to reassemble fuel nozzles 1,870.83$ 004 CREDIT-GI Utilities supplemented labor (5,037.92)$ 005 006 007 008 009 010 011 012 013 014 015 017 018 019 020 021 023 024 028 029 030 Total 128,923.04$ Grand Island Council Session - 8/28/2018 Page 119 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-247 WHEREAS, on February 27, 2018, Council approved a contract with General Electric International, in., in the amount of $494,261.00 for Gas Turbine #3 Modified Hot Gas Path Inspection at Burdick Generating Station; and WHEREAS, at the June 26, 2018 Council meeting, Council approved Change Orders #1 and #2 for the Hot Gas Path Inspection in the amount of $50,878.83; and WHEREAS, during the Hot Gas Path Inspection, the fuel nozzles and combustion liners were sent to the GI repair facility inspections; and WHEREAS, during the inspection process, several fuel nozzles did not meet the flow specifications and the combustion liners need repairs to maintain their function during operation; and WHEREAS, the repairs while in the facility will cost $132,090.13 and new gaskets needed to reassemble the fuel nozzles will cost $1,870.83; and WHEREAS, Grand Island Utilities supplemented the labor during disassembly and a credit was given in the amount of $5,037.92; and WHEREAS, the total of these repairs, parts, and the credit received amount to an net increase in the contract of $128,923.04, for a final contract cost of $674,062.87. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Change Order #3 for the Modified Hot Gas Path Inspection at Burdick Generating Station in the amount of $128,923.04, is hereby approved and the Mayor is authorized to sign the Change Order on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 120 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-7 #2018-248 - Approving Bid Award - Precipitator, Bottom Ash & Boiler Industrial Cleaning at Platte Generating Station - Fall 2018 Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 121 / 202 Council Agenda Memo From:Timothy G. Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting Date:August 28, 2018 Subject:Precipitator, Bottom Ash and Boiler Industrial Cleaning – Fall 2018 Outage Presenter(s):Timothy G. Luchsinger, Utilities Director The electrostatic precipitator at the Platte Generating Station is the air quality control equipment used to remove coal ash particulates from the plant’s boiler flue gas stream. Proper performance of this equipment is required as part of the plant’s operating permit. Due to volume and characteristics of the coal ash, the precipitator must be grit blasted twice a year to remove ash build-up to allow the plant to remain below permitted emission levels. In addition to maintaining performance, removal of the ash deposits also allows an inspection of the precipitator internal surfaces and components. The next outage is scheduled for October of this year. Specifications were developed by the plant maintenance staff for the removal of ash deposits throughout the precipitator and boiler including grit blasting of the electrostatic precipitator, bulk vacuuming of the associated ductwork and hoppers, and high-pressure water wash of the bottom ash system. Discussion The specifications for the Precipitator, Bottom Ash and Boiler Industrial Cleaning - Fall 2018 Outage were advertised and issued for bid in accordance with the City Purchasing Code. Bids were publicly opened on August 14, 2018. Specifications were sent to seven potential bidders and responses were received as listed below. The engineer’s estimate for this project was $160,000.00. Bidder Bid Amount W-S Industrial Services, Inc. Council Bluffs, Iowa $112,804.00 Meylan Enterprises, Inc. Omaha, Nebraska $123,121.10 Grand Island Council Session - 8/28/2018 Page 122 / 202 The bids were reviewed by Utility Engineering staff. All bids were in compliance with the specifications and had no exceptions. The bid from W-S Industrial Services, Inc., is compliant with specifications and less than the engineer’s estimate. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the bid of W-S Industrial Services, Inc., of Council Bluffs, Iowa, as the low responsive bidder, with a bid in the amount of $112,804.00. Sample Motion Move to approve the bid in the amount of $112,804.00, from W-S Industrial Services, Inc., for the Precipitator, Bottom Ash and Boiler Industrial Cleaning – Fall 2018 Outage. Grand Island Council Session - 8/28/2018 Page 123 / 202 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:August 14, 2018 at 2:00 p.m. FOR:Precipitator, Bottom Ash & Boiler Industrial Cleaning – Fall 2018 Outage DEPARTMENT:Utilities ESTIMATE:$160,000.00 FUND/ACCOUNT:520 PUBLICATION DATE:August 1, 2018 NO. POTENTIAL BIDDERS:7 SUMMARY Bidder:W-S Industrial Services, Inc. Council Bluffs, IA Bid Security:Merchants Bonding Company (Mutual) Exceptions:None Bid Price: Precipitator Abrasive Vacuum Hydro-blast Cleaning Services Services Material:$18,267.64 $12,844.58 $18,781.00 Labor:$13,265.00 $27,022.68 $15,243.40 Sales Tax:$ 2,207.28 $ 2,790.71 $ 2,381.71 Base Bid:$33,739.92 $42,657.97 $36,406.11 Total Base Bid $112,804.00 Grand Island Council Session - 8/28/2018 Page 124 / 202 Bidder:Meylan Enterprises, Inc. Omaha, NE Bid Security:Universal Surety Company Exceptions:None Bid Price: Precipitator Abrasive Vacuum Hydro-blast Cleaning Services Services Material:$ 5,119.80 $23,545.00 $21,510.00 Labor:$30,043.65 $24,360.00 $10,488.00 Sales Tax:$ 2,461.44 $ 3,353.35 $ 2,239.86 Base Bid:$37,624.89 $51,258.35 $34,237.86 Total Bid $123,121.10 cc:Tim Luchsinger, Utilities Director Darrell Dorsey, PGS Plant Superintendent Patrick Brown, Finance Director Stacy Nonhof, Purchasing Agent Pat Gericke, Utilities Admin. Assist.Karen Nagel, Utilities Secretary P2060 Grand Island Council Session - 8/28/2018 Page 125 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-248 WHEREAS, the City of Grand Island invited sealed bids for Precipitator, Bottom Ash and Boiler Industrial Cleaning at Platte Generating Station – Fall 2018, according to plans and specifications on file with the Utilities Department; and WHEREAS, on August 14, 2018, bids were received, opened and reviewed; and WHEREAS, W-S Industrial Services, Inc., of Council Bluffs, Iowa, submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $112,804.00; and WHEREAS, the bid of W-S Industrial Services, Inc., is less than the estimate for Precipitator, Bottom Ash and Boiler Industrial Cleaning at Platte Generating Station – Fall 2018. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of W-S Industrial Services, Inc., in the amount of $112,804.00 for the Precipitator, Bottom Ash and Boiler Industrial Cleaning at Platte Generating Station – Fall 2018, is hereby approved as the lowest responsible bid. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________ Jeremy L. Jensen, Mayor Attest: ___________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 126 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-8 #2018-249 - Approving Renewal of Machinery, Property Peril, Fire and Terrorism Insurance with FM Global for 2018-2019 - Utilities Department Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 127 / 202 Council Agenda Memo From:Tim Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:August 28, 2018 Subject:Renewal of Machinery Property Peril, Fire and Terrorism Insurance with FM Global for 2018 - 2019 Presenter(s):Tim Luchsinger, Utilities Director Background The Utilities Department Boiler and Machinery Property Peril and Fire insurance is specifically designed for Electric Utility and is readily adaptable to the Water Utility, which is also included in the coverage. The standard policy excludes losses due to acts of terrorism unless the optional Terrorism Insurance is accepted. The Utilities Department’s insurance provider, FM Global, provided the attached proposal for renewal of the present coverage. The complete policy is available in the Utilities office for review, along with a Policy Holder Disclosure form for execution by the City, either accepting or rejecting terrorism coverage. The renewal proposal and proposed policy have been reviewed by the Legal Department. Discussion Key provisions included in the proposed renewal are a decrease in the insured valuation from $500,864,016.00 to $504,619,891.00 which results in an annual all-risk premium change from $387,475.00 for the current year to $410,425.00 for the 2018-2019 year, and an annual Terrorism Insurance premium change from $21,067.00 for the current year to $22,249.00 for the 2018-2019 year. The insured valuation of assets was reviewed by Utilities Department staff and is in line with replacement costs seen in the utility industry, as well as the resulting policy premium change. The probability that a relatively remote location in the central part of the nation would be targeted for a terrorist attack may be very unlikely, but the determination of a terrorist attack is not clearly defined, such as an attack similar to the Oklahoma City Federal Grand Island Council Session - 8/28/2018 Page 128 / 202 Building. Regardless of the cause, the loss of a high valued asset as the Platte Generating Station must be protected from risk, and the acceptance of Terrorism Insurance is recommended. Execution of the Notice of Terrorism Insurance Coverage form is required annually and is recommended by the Utilities Department for approval. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve renewal of the Utilities Department’s Terrorism Insurance with FM Global with execution of the Notice of Terrorism Insurance Coverage form to accept that coverage. Sample Motion Move to approve acceptance of the FM Global Terrorism Insurance for the Utilities Department. Grand Island Council Session - 8/28/2018 Page 129 / 202 Grand Island Council Session - 8/28/2018 Page 130 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-249 WHEREAS, the City’s Utility Department subscribes to insurance for boiler and machinery, property, peril and fire coverage; and WHEREAS, the boiler and machinery, property, peril and fire coverage insurance term expires October 1, 2018; and WHEREAS, the insurance of electric and water utilities facilities is a specialized market with a limited number of potential providers; and WHEREAS, the total insured value of property increased from $500,864,016.00 to $504,619,891.0016.00; and WHEREAS, a proposal to renew insurance for the 2018 – 2019 fiscal year was received from the current provider, Factory Mutual Insurance Company of St. Louis, Missouri, for a renewal premium of $432,674.00, including the terrorism coverage; and WHEREAS, the City has opted to accept the optional Terrorism Insurance Coverage; and WHEREAS, the insurance provider requires that the City either except or reject Terrorism Insurance Coverage by executing the form provided. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the proposal of Factory Mutual Insurance Company of St. Louis, Missouri, with premium in the amount of $410,425.00 to execute the form to accept Terrorism Insurance Coverage, with a premium in the amount of $22,249.00, for a total of $432,674.00. The Mayor is hereby authorized to sign the acceptance form for the Terrorism Insurance on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. ___________________________________ Jeremy L. Jensen, Mayor Attest: ______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 131 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-9 #2018-250 - Approving Acquisition of Utility Easement - West of U.S. Highway 34 & 281 and North of Schimmer Drive - Ponderosa Lake Estates Homeowners Association This item relates to the aforementioned Public Hearing item E-3. Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 132 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-250 WHEREAS, a public utility easement is required by the City of Grand Island from Ponderosa Lake Estates Homeowners Association, to survey, construct, inspect, maintain, repair, replace, relocate, extend, remove, and operate thereon, public utilities and appurtenances, including lines and transformers; and; WHEREAS, a public hearing was held on August 28, 2018, for the purpose of discussing the proposed acquisition of a twenty (20.0) foot utility easement located through a part of Outlot “C1” and Outlot “C3”, Ponderosa Lake Estates 4th Subdivision, an addition to the City of Grand Island, Hall County, Nebraska; and more particularly described as follows: The northerly twenty (20.0) feet of Outlot “C1”, and the northerly twenty (20.0) feet of Outlot “C3”, Ponderosa Lake Estates Fourth Subdivision, Grand Island, Hall County, Nebraska. The above-described easement and right-of-way containing 0.11 acres, more or less, as shown on the plat dated 7/23/2018, marked Exhibit “A” attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the City of Grand Island be, and hereby is, authorized to acquire a public utility easement from Ponderosa Lake Estates Homeowners Association, on the above-described tract of land. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018 __________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 133 / 202 Grand Island Council Session - 8/28/2018 Page 134 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-10 #2018-251 - Approving Change Order #1 with Myers Construction Inc., for Water Distribution System Improvements - 2017 Staff Contact: Tim Luchsinger, Stacy Nonhof Grand Island Council Session - 8/28/2018 Page 135 / 202 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Stacy Nonhof, Assistant City Attorney Meeting:August 28, 2018 Subject:Change Order #1 with Myers Construction for Water Distribution System Improvements - 2017 Presenter(s):Timothy Luchsinger, Utilities Director Background Water Distribution System Improvements, 2017, involved the installation of water main, water service connections, pavement removal and restoration and drainage improvements in five project areas throughout the City. The completed work replaced old mains, resolved maintenance issues, provided proper clearances between water mains and storm sewers, improved system capacity and supplemented fire protection in existing parts of the City. Discussion The original contract was awarded by City Council on June 13, 2017, in the amount of $678,685.23 to Myers Construction, Inc., of Broken Bow, Nebraska. The following scope alterations were encountered: 1)Change #1: Utility sizes differing from sizes of record were encountered on the Third Street redevelopment project. An unknown service was also found that needed to be properly abandoned. In addition, a hydrant was required to be relocated due to clearance conflicts. This request also included the removal of a tree on the 16th Street and Locust Street Project. The total additional cost for this work is $14,892.30. 2)Change #2: A storm sewer curb inlet for a Street Department repair at State Street and Cleburn Street was replaced for a cost of $5,440.00. During the process of constructing the five-project area contract, materials were added or deducted to complete the work due to unknown utilities, reconfiguration to resolve unforeseen conflicts and utility sizes differing from sizes of record. A significant portion of quantity overage is due to additional pavement and storm sewer restoration requested Grand Island Council Session - 8/28/2018 Page 136 / 202 by the Public Works’ Street Department. Since our contractor was working in the area, this was the most cost-effective measure. The contract’s amount needs to be modified due to adjustments in actual quantities installed versus estimated quantities for the project. This total is $54,351.46. The original Engineer’s estimate was $945,000.00. The original contract was for $678,685.23. The total changes to the contract amount to $74,683.76. This results in a final contract cost of $753,368.99. The Street Department will reimburse the Utilities Department $84,767.02 for their requested work. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve Change Order #1 to the Water Distribution System Improvements, 2017 Contract in the amount of $74,683.76, for a final contract amount of $753,368.99. Sample Motion Move to approve Change Order #1 with Myers Construction, Inc., to the Water Distribution System Improvements 2017 Contract in the amount of $74,683.76, for a final contract amount of $753,368.99. Grand Island Council Session - 8/28/2018 Page 137 / 202 Grand Island Council Session - 8/28/2018 Page 138 / 202 Grand Island Council Session - 8/28/2018 Page 139 / 202 Grand Island Council Session - 8/28/2018 Page 140 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-251 WHEREAS, at the June 13, 2017 meeting Council awarded the contract for Water Distribution System Improvements -2017 in the amount of $678,685.23 to Myers Construction, Inc., of Broken Bow, Nebraska; and WHEREAS, during construction, the following required alterations were encountered; 1)Change #1: Utility sizes differing from sizes of record were encountered on the Third Street redevelopment project. An unknown service was also found that needed to be properly abandoned. In addition, a hydrant was required to be relocated due to clearance conflicts. This request also included the removal of a tree on the 16th Street and Locust Street Project. The total additional cost for this work was $14,892.30. 2)Change #2: A storm sewer curb inlet for a Street Department repair at State Street and Cleburn Street was replaced for a cost of $5,440.00. WHEREAS, during the process of constructing the five-project area contract, materials were added or deducted to complete the work due to unknown utilities, reconfiguration to resolve unforeseen conflicts and utility sizes differing from sizes of record; and WHEREAS, the contract’s amount needs to be modified due to adjustments in quantities installed versus estimated quantities for the project in the amount of $54,351.46; and WHEREAS, a significant portion of quantity overage is due to additional pavement and storm sewer restoration requested by the Public Works Department, and the Utilities Department contractor was working in the area, which made this the most cost-effective measure; and WHEREAS, these changes resulted in an additional $74,683.76 altogether for a final contract amount of $753,368.99 and the Public Works Department will reimburse the Utilities Department for $84,767.02 for the work that was requested by them. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that Change Order #1 with Myers Construction Inc., for Water Distribution System Improvements – 2017 is approved in the amount of $74,683.76, and the Mayor is hereby authorized to sign the Change Order on behalf of the City of Grand Island. - - - Grand Island Council Session - 8/28/2018 Page 141 / 202 - 2 - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 142 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-11 #2018-252 - Approving Bid Award for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1 Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 8/28/2018 Page 143 / 202 Council Agenda Memo From:Keith Kurz PE, Assistant Public Works Director Meeting:August 28, 2018 Subject:Approving Bid Award for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1 Presenter(s):John Collins PE, Public Works Director Background The Sycamore Street underpass was built in 1950 and engineering analysis has identified a number of repairs and replacements which must be implemented to preserve the structure. This includes a number of issues related to the retaining walls, the South Front Street Bridge, and the storm sewer pumping system. On July 26, 2018 the Engineering Division of the Public Works Department advertised for bids for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1. There were twenty (20) potential bidders for this project. Discussion Two (2) bids were received and opened on August 16, 2018. The bids were submitted in compliance with the contract, plans and specifications. A summary of the bids is shown below. Bidder Exceptions Base Bid The Diamond Engineering Co. of Grand Island, Nebraska None $1,794,404.38 Starostka Group Unlimited, Inc. of Grand Island, Nebraska None $2,521,598.39* *corrected bid figure There are sufficient funds in Account No. 21000001-2100-40012 to fund this project. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: Grand Island Council Session - 8/28/2018 Page 144 / 202 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve awarding the contract for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1 to The Diamond Engineering Company of Grand Island, Nebraska in the amount of $1,794,404.38 as the low compliant bid that meets specifications. Sample Motion Move to approve the bid award. Grand Island Council Session - 8/28/2018 Page 145 / 202 Purchasing Division of Legal Department INTEROFFICE MEMORANDUM Stacy Nonhof, Purchasing Agent Working Together for a Better Tomorrow, Today BID OPENING BID OPENING DATE:August 16, 2018 at 2:00 p.m. FOR:Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1 DEPARTMENT:Public Works ESTIMATE:$2,200,000.00 FUND/ACCOUNT:21000001-2100-40012 PUBLICATION DATE:July 26, 2018 NO. POTENTIAL BIDDERS:20 SUMMARY Bidder:Diamond Engineering Co.Starostka Group Unlimited, Inc. Grand Island, NE Grand Island, NE Bid Security:Universal Surety Company Universal Surety Company Exceptions:None None Bid Price:$1,794,404.38 $2,524,640.57 cc:John Collins, Public Works Director Catrina DeLosh, PW Admin. Assist. Marlan Ferguson, City Administrator Patrick Brown, Finance Director Stacy Nonhof, Purchasing Agent Keith Kurz, Assist. PW Director P2059 Grand Island Council Session - 8/28/2018 Page 146 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-252 WHEREAS, the City of Grand Island invited sealed bids for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1, according to plans and specifications on file with the City Engineer/Public Works Director; and WHEREAS, on August 16, 2018 bids were received, opened, and reviewed; and WHEREAS, The Diamond Engineering Company of Grand Island, Nebraska submitted a bid in accordance with the terms of the advertisement of bids and plans and specifications and all other statutory requirements contained therein, such bid being in the amount of $1,794,404.38; and WHEREAS, The Diamond Engineering Company’s bid was below the engineer’s estimate for the project: and WHEREAS, funds are available in the Fiscal Year 2017/2018 budget for this project. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the bid of The Diamond Engineering Company of Grand Island, Nebraska in the amount of $1,794,404.38 for Sycamore Street Underpass Rehabilitation; Project No. 2017-U-1 is hereby approved as the lowest responsible bid. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute a contract with such contractor for such project on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 147 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-12 #2018-253 - Approving State Bid Award for One (1) 2018 or Current Production Year Ford Explorer 4x4 and One (1) 2018 or Current Production Year Jeep Cherokee 4x4 for the Wastewater Division of the Public Works Department Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 8/28/2018 Page 148 / 202 Council Agenda Memo From:Jon Menough PE, Wastewater Plant Engineer Meeting:August 28, 2018 Subject:Approving State Bid Award for One (1) 2018 or Current Production Year Ford Explorer 4x4 and One (1) 2018 or Current Production Year Jeep Cherokee 4x4 for the Wastewater Division of the Public Works Department Presenter(s):John Collins PE, Public Works Director Background The Wastewater Division of the Public Works Department budgeted for one (1) locate vehicle and one (1) field vehicle. Funds are available in the approved FY 2017/2018 budget for this purchase. Discussion The Wastewater Division, within the Public Works Department is one vehicle short of accommodating all staff resulting in fielding one crew less than otherwise possible. Reassigning the current pickup used for sanitary sewer locates, and purchasing a sport utility vehicle for locate work will provide sufficient vehicles for all crews to operate. The vehicle specifications awarded under State of Nebraska Contract #14884 OC for a 2018 or current production year Ford Explorer 4x4 meets all of the requirements for the Wastewater Division locate vehicle. Anderson Auto Group of Lincoln, Nebraska submitted a bid with no exceptions in the amount of $29,167.00. There are sufficient funds for this purchase in Account No. 53030054-85625. The Wastewater Division is also requesting to replace the 1999 Ford F350 currently used for field project inspections, which has 100,067 miles and life to date repair costs of $14,226.32. Such replacement is suggested to be a Jeep Cherokee 4x4. The current pickup will be offered to other City departments and if there is no interest it will be sold at public auction. The vehicle specifications awarded under State of Nebraska Contract #14875 OC for a 2018 or current production year Jeep Cherokee 4x4 meets all of the requirements for the Wastewater Division vehicle. Gene Steffy Auto Group of Fremont, Nebraska submitted a bid with no exceptions in the amount of $24,629.00. There are sufficient funds for this purchase in Account No. 53030054-85625. Grand Island Council Session - 8/28/2018 Page 149 / 202 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the State Bid Award to Anderson Auto Group of Lincoln, Nebraska in the total amount of $29,167.00 for one (1) 2018 or current production year Ford Explorer 4x4 and to Gene Steffy Auto Group of Fremont, Nebraska in the total amount of $24,629.00 for one (1) 2018 or current production year Jeep Cherokee 4x4 for the Wastewater Division of the Public Works Department. Sample Motion Move to approve the resolution. Grand Island Council Session - 8/28/2018 Page 150 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-253 WHEREAS, the Wastewater Division of the Public Works Department for the City of Grand Island, budgeted for one (1) new locate vehicle for the collection area and one (1) new vehicle for the engineering section in the 2017/2018 fiscal year; and WHEREAS, said vehicles, one (1) 2018 or current production year Ford Explorer 4x4 and one (1) 2018 or current production year Jeep Cherokee 4x4 can be obtained from the State Contract holder; and WHEREAS, purchasing the vehicles from the State Contract holder meets all statutory bidding requirements; and WHEREAS, the funding for such vehicles is provided in the 2017/2018 budget. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the purchase of one (1) 2018 or current production year Ford Explorer 4x4 in the amount of $29,167.00 from the State Contract holder, Anderson Auto Group of Lincoln, Nebraska, is hereby approved. BE IT FURTHER RESOLVED, that the purchase of one (1) 2018 or current production year Jeep Cherokee 4x4 in the amount of $24,629.00 from the State Contract holder, Gene Steffy Auto Group of Fremont, Nebraska is hereby approved. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 151 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-13 #2018-254 - Approving Certificate of Final Completion for the 2018 Asphalt Resurfacing Project No. 2018-AC-2 Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 8/28/2018 Page 152 / 202 Council Agenda Memo From:Keith Kurz PE, Assistant Public Works Director Meeting:August 28, 2018 Subject:Approving Certificate of Final Completion for the 2018 Asphalt Resurfacing Project No. 2018-AC-2 Presenter(s):John Collins PE, Public Works Director Background Vontz Paving, Inc. of Hastings, Nebraska was awarded a $101,075.50 contract by the City Council on June 12, 2018, via Resolution No. 2018-163, for the second 2018 Annual Asphalt Resurfacing project. This work involved resurfacing the section of Old Highway 2 from Broadwell Avenue to just west of Webb Road, which was used as the detour route for the Nebraska Department of Transportation (NDOT) improvements to US Highway 281; south of US Highway 30, north to Chapman Road. Discussion The project was completed in accordance with the terms, conditions and stipulations of the contract, plans and specifications. Construction was completed at a total cost of $97,583.48, resulting in an underrun of $3,492.02. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve the Certificate of Final Completion for Asphalt Resurfacing Project No. 2018-AC-2. Sample Motion Move to approve the Certificate of Final Completion for Asphalt Resurfacing Project No. 2018-AC-2. Grand Island Council Session - 8/28/2018 Page 153 / 202 ENGINEER’S CERTIFICATE OF FINAL COMPLETION Asphalt Resurfacing Project No. 2018-AC-2 CITY OF GRAND ISLAND, NEBRASKA August 14, 2018 TO THE MEMBERS OF THE COUNCIL CITY OF GRAND ISLAND GRAND ISLAND, NEBRASKA This is to certify that Asphalt Resurfacing Project No. 2018-AC-2 has been fully completed by Vontz Paving, Inc. of Hastings, Nebraska under the contract dated June 21, 2018. The work has been completed in accordance with the terms, conditions, and stipulations of said contract and complies with the contract, the plans and specifications. The work is hereby accepted for the City of Grand Island, Nebraska, by me as Public Works Director in accordance with the provisions of Section 16-650 R.R.S., 1943. Asphalt Resurfacing Project No. 2018-AC-2 Item Item No. Description Total Quantity Unit Unit Price Total Cost Base Bid Section- Old Highway 2 1 Cold Milling, Class 3 10,842.66 SY $3.25 $35,238.65 2 Asphaltic Concrete, Type SPR (2")1,293.51 TON $33.00 $42,685.83 3 PG Binder (58V-34)38.22 TON $450.00 $17,199.00 4 Tack Coat 1,230.00 GAL $2.00 $2,460.00 Total Bid Section #1A =$97,583.48 Construction Grand Total =$97,583.48 Asphalt Resurfacing Project No. 2017-AC-1 Project Total = $97,583.48 I hereby recommend that the Engineer’s Certificate of Final Completion for Asphalt Resurfacing Project No. 2018-AC-2 be approved. _______________________________________________________________________________ John Collins, PE - City Engineer/Public Works Director Jeremy L. Jensen – Mayor Grand Island Council Session - 8/28/2018 Page 154 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-254 WHEREAS, the City Engineer/Public Works Director for the City Of Grand Island has issued a Certificate of Completion for Project No. 2018-AC-2, Asphalt Resurfacing, certifying that Vontz Paving, Inc. of Hastings, Nebraska, under contract, has completed the asphalt resurfacing; and WHEREAS, the City Engineer/Public Works Director recommends the acceptance of the project; and WHEREAS, the Mayor concurs with the recommendation of the City Engineer/Public Works Director. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Certificate of Final Completion, attached as Exhibit “A” for Project No. 2018-AC-2, Asphalt Resurfacing, in the amount of $97,583.48, is hereby confirmed. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 155 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-14 #2018-255 - Approving Change Order No. 1 for the 2018 Asphalt Resurfacing Project No. 2018-AC-1 Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 8/28/2018 Page 156 / 202 Council Agenda Memo From:Keith Kurz PE, Assistant Public Works Director Meeting:August 28, 2018 Subject:Approving Change Order No. 1 for the 2018 Asphalt Resurfacing Project No. 2018-AC-1 Presenter(s):John Collins PE, Public Works Director Background Gary Smith Construction Co., Inc. of Grand Island, Nebraska was awarded a $537,015.05 contract on February 13, 2018, via Resolution No. 2018-35, for the 2018 Asphalt Resurfacing Project No. 2018-AC-1. This year’s work involves asphalt resurfacing on the following City streets. Section #1 - Webb Road; Capital Avenue to US Highway 281 Section #2 - Webb Road; Woodridge Boulevard to Stolley Park Road Section #3 – Old Highway 30; US Highway 30 (West end) to US Highway 30 (East end) Section #4 – Webb Road; 2nd Street to Island Circle Discussion Coordination is necessary for sections near railroad crossings, which has required more time than originally planned for. A time extension is being requested from September 15, 2018 to October 31, 2018. There will be no cost associated with Change Order No. 1, leaving the contract agreement amount of $537,015.05. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve Grand Island Council Session - 8/28/2018 Page 157 / 202 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve Change Order No. 1 for the 2018 Asphalt Resurfacing Project No. 2018-AC-1 with Gary Smith Construction Co., Inc. of Grand Island, Nebraska. Sample Motion Move to approve the resolution. Grand Island Council Session - 8/28/2018 Page 158 / 202 CHANGE ORDER NO. 1 PROJECT:2018 Asphalt Resurfacing Project No. 2018-AC-1 CONTRACTOR:Gary Smith Construction Co., Inc. AMOUNT OF CONTRACT: $537,015.05 CONTRACT DATE: February 28, 2018 Contract Price Prior to this Change Order…………………………………$ 537,015.05 Net Increase Resulting from this Change Order……………………………$ 0 Revised Contract Price Including this Change Order………………………$ 537,015.05 Notice to Proceed Date ------------------------------------------------------------------------------ March 2, 2018 Original Completion Date ---------------------------------------------------------------------------September 15, 2018 First Revised Completion Date -------------------------------------------------------------------- October 31, 2018 The Above Change Order Accepted: Gary Smith Construction Co., Inc. By____________________________________Date_______________________ Approval Recommended: By______________________________________________Date________________ John Collins PE, Public Works Director/City Engineer Approved for the City of Grand Island, Nebraska By____________________________________Date________________________ Mayor Attest_________________________________ City Clerk Grand Island Council Session - 8/28/2018 Page 159 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-255 WHEREAS, on February 13, 2018, via Resolution No.2018-35, the City of Grand Island awarded Gary Smith Construction Co., Inc. of Grand Island, Nebraska the bid in the amount of $537,015.05 for Asphalt Resurfacing Project No. 2018-AC-1; and WHEREAS, it has been determined that additional time is necessary to complete such project; and WHEREAS, such modifications have been incorporated into Change Order No. 1; and WHEREAS, there will be no cost associated with such time extension, leaving the contract agreement amount of $537,015.05; and WHEREAS, the project completion date will be extended from September 15, 2018 to October 31, 2018. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is, authorized and directed to execute Change Order No. 1, at no additional cost, between the City of Grand Island and Gary Smith Construction Co., Inc. of Grand Island, Nebraska to provide the modifications. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 160 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-15 #2018-256 - Approving Change Order No. 1 for 13th Street Paving Improvements; Project No. 2018-P-1 and 13th Street Water Main Improvements; Project No. 2018-W-5 Staff Contact: John Collins, P.E. - Public Works Director Grand Island Council Session - 8/28/2018 Page 161 / 202 Council Agenda Memo From:Keith Kurz PE, Assistant Public Works Director Meeting:August 28, 2018 Subject:Approving Change Order No. 1 for 13th Street Paving Improvements; Project No. 2018-P-1 and 13th Street Water Main Improvements; Project No. 2018-W-5 Presenter(s):John Collins PE, Public Works Director Background Blessing Construction of Kearney, Nebraska was awarded a $1,975,887.43 contract on February 27, 2018, via Resolution No. 2018-58, for the roadway improvements along 13th Street from North Road to Moores Creek, as well as intersection improvements at 13th Street and North Road. Discussion Change Order No. 1 for 13th Street improvements is being requested due to necessary changes that have arisen in the field during construction. Such work includes lowering the waterline near Sagewood Avenue, a new tee for the fire hydrant in the northwest corner of 13th Street and North Road, installation of new fire hydrant near Summerfield Estates, plugs for 18” storm sewer piping extensions in the northeast corner of 13th Street and North Road, excavating and backfilling for the water valve at Sagewood Avenue, potholing for unknown utility conflicts with proposed design utility installation, as well as adding crushed concrete in over-excavated areas where suitable fill had previously been attempted to correct the subgrade issued and failed. The cost associated with Change Order No. 1 is a total of $25,247.12, resulting in a revised contract amount of $2,001,134.55. Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee Grand Island Council Session - 8/28/2018 Page 162 / 202 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve Change Order No. 1 for the 13th Street Paving Improvements; Project No. 2018-P-1 and 13th Street Water Main Improvements; Project No. 2018-W-5 with Blessing Construction of Kearney, Nebraska. Sample Motion Move to approve the resolution. Grand Island Council Session - 8/28/2018 Page 163 / 202 CHANGE ORDER NO. 1 PROJECT:13th Street Paving Improvements; Project No. 2018-P-1 and 13th Street Water Main Improvements; Project No. 2018-W-5 CONTRACTOR:Blessing Construction AMOUNT OF CONTRACT: $1,975,887.43 CONTRACT DATE: March 8, 2018 Address waterline lowering near Sagewood Avenue, new tee for the fire hydrant in the northwest corner of 13th Street & North Road, suitable hydrant at Summerfield Estates, plugs for 18” storm sewer piping extensions in the northeast corner of 13th Street & North Road, excavating and backfilling for the City cut in valve at Sagewood Avenue, potholing for unknown utility conflicts with proposed design utility installation, as well as installation of crushed concrete in over-excavated areas where suitable fill had previously been attempted to correct the subgrade issue and failed. Item No.Description Quantity Unit Unit Price Total Price CO1-1 Furnish & Install 12” DIP Waterline 30.00 LF $ 86.25 $2,587.50 CO1-2 Furnish & Install 12” DI Fittings 5.00 EA $ 339.25 $1,696.25 CO1-3 Furnish & Install 12” Retainer Glands 10.00 EA $ 118.45 $1,184.50 CO1-4 Furnish & Install 8” DI Fittings 4.00 EA $ 224.25 $ 897.00 CO1-5 Furnish & Install 16” DI Tee (CIP) at Roundabout for fire hydrant 1.00 LS $1,518.00 $1,518.00 CO1-6 Potholing Existing Utilities Due to Unknown Locations 13.00 EA $ 395.60 $5,142.80 CO1-7 Replaced 5.5’ bury hydrant at Summerfield & 13th with proper depth 1.00 LS $ 759.00 $ 759.00 CO1-8 Excavate/Backfill for City to cut in valve at Sagewood Avenue 1.00 EA $3,352.25 $3,352.25 CO1-9 Furnish & Install 18” Concrete Plug 2.00 EA $ 350.00 $ 700.00 CO1-10 Furnish & Install Crushed Concrete for Over Excavation Areas 200.00 CY $ 35.00 $7,000.00 CO1-11 Additional Bond Premium 1.65%1.00 LS $ 409.82 $ 409.82 Change Order No. 1 Total = $ 25,247.12 Contract Price Prior to this Change Order…………………………………$1,975,887.43 Net Increase Resulting from this Change Order……………………………$ 25,247.12 Revised Contract Price Including this Change Order……………………… $2,001,134.55 The Above Change Order Accepted: Blessing Construction By____________________________________Date_______________________ Grand Island Council Session - 8/28/2018 Page 164 / 202 2 | Page City of Grand Island | Change Order No. 1 13th Street Paving Improvements; Project No. 2018-P-1 & 13th Street Water Main Improvements; Project No. 2018-W-5 Approval Recommended: By______________________________________________Date________________ John Collins PE, Public Works Director/City Engineer Approved for the City of Grand Island, Nebraska By____________________________________Date________________________ Mayor Attest_________________________________ City Clerk Grand Island Council Session - 8/28/2018 Page 165 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-256 WHEREAS, on February 27, 2018, via Resolution No.2018-58, the City of Grand Island awarded Blessing Construction of Kearney, Nebraska the bid in the amount of $1,975,887.43 for 13th Street Paving Improvements; Project No. 2018-P-1 and 13th Street Water Main Improvements; Project No. 2018-W-5; and WHEREAS, it has been determined that modifications are necessary to complete such project; and WHEREAS, such modifications have been incorporated into Change Order No. 1; and WHEREAS, the cost associated with such change order is $25,247.12, resulting in a revised contract amount of $2,001,134.55. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that the Mayor be, and hereby is, authorized and directed to execute Change Order No. 1, at a cost of $25,247.12, between the City of Grand Island and Blessing Construction of Kearney, Nebraska to provide the modifications. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 166 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item G-16 #2018-257 - Approving Change Order #2 with Chief Industries for EM911 Driveway Staff Contact: Jon Rosenlund Grand Island Council Session - 8/28/2018 Page 167 / 202 Council Agenda Memo From:Jon Rosenlund, Director of Emergency Management Meeting:August 28, 2018 Subject:Approving EM911 Construction Change Order 002 Presenter(s):Jon Rosenlund, Director of Emergency Management Background The City Council awarded the bid for construction of an Emergency Management and 911 Communications Facility to Chief Construction of Grand Island, Nebraska on December 19, 2017 for $3,122,701.00. Any changes to the contract require council approval. With the anticipated construction of the new Fire Station #4, and the lowering of the North Road elevation, the driveway requires regrading and a concrete depth increased to 10 inches thick. Cost of this Change Order is $13,553.00. Discussion The City Council awarded the bid for construction of an Emergency Management and 911 Communications Facility to Chief Construction of Grand Island, Nebraska on December 19, 2017 for $3,122,701.00. Construction began in March. During discussions with engineers regarding the changes to the new intersection and also the shared use of the driveway for the EM911 building and the new Fire Station #4, it was recommended by City Engineering to regrade the driveway to match the lower elevation of the new North Road construction, and also to increase the thickness of the concrete in the driveway increased from 6 inches to 10 inches, in order to accommodate the heavier fire apparatus. Any changes to the contract require Council approval and the Department respectfully submits this Change Order #002 for approval. Total cost for all three items was $13,553.00. Grand Island Council Session - 8/28/2018 Page 168 / 202 Alternatives It appears that the Council has the following alternatives concerning the issue at hand. The Council may: 1.Move to approve 2.Refer the issue to a Committee 3.Postpone the issue to future date 4.Take no action on the issue Recommendation City Administration recommends that the Council approve Change Order #2 for the EM911 Shared Driveway for a total cost of $13,553.00. Sample Motion Move to approve Change Order #2. Grand Island Council Session - 8/28/2018 Page 169 / 202 To:Project: CITY OF GRAND ISLAND P.O. BOX 1968 GRAND ISLAND NE 68802 Hall County Emergency- 911 Center DIV20 1210 N North Road Grand Island NE 68801 Description of Change: ! " #$ %#&!$ ’ !%&$$$( )% #&% #&) Proposed Contract Amount of this Change Order 13,553.00 Accepting this Change Order Request indicates that it should be converted to an Owner Change Order and incorporated as part of the original contract. Accepted By: Owner By Printed Name Date *&%" +,-))./0121345 6#3* !)))7)) + &)7&)7$$ 8 &)7&)7$% &%&$9: +,-)./0121345 41#3* !))7) + &)7&)%7 8 &)7&)%7&%& ;<< = + Change Order Request COR Number: Date: 004 8/10/2018 1/16/2018Contract Date: Project Number:18LJ008 0’1>1"1,3,8?1*813’@"A:1*"#13 ’*"143-@12’+:,8*""1,302" Grand Island Council Session - 8/28/2018 Page 170 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-257 WHEREAS, on December 19, 2017, by Resolution 2017-364, the City Council of the City of Grand Island approved the bid of Chief Construction of Grand Island, Nebraska for $3,122,701.00 for the construction of a new Emergency Management-911 Facility; and WHEREAS, work on North Road will reduce the elevation of the driveway entrance; and WHEREAS, the shared driveway needs to be 10 inches thick to accommodate the heavier fire apparatus who will be using that driveway to return to the station; and WHEREAS, regrade and thickening of the driveway will cost and additional $13,553.00, as documented in the Change Order Request 002; and WHEREAS, any changes to the original contract require Council approval. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, to approve the payment to Chief Construction of $13,553.00for debris and septic tank removal, as documented in Change Order 002. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to execute such contract modification on behalf of the City of Grand Island. - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy Jenson, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 171 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item I-1 #2018-258 - Consideration of Approving FY 2018-2019 Annual Budget for Railside Business Improvement District and Setting Date for Board of Equalization Staff Contact: Patrick Brown Grand Island Council Session - 8/28/2018 Page 172 / 202 #RAILSIDE ROAD MAPPING FOR THE FUTURE Grand Island Council Session - 8/28/2018 Page 173 / 202 STUDIES Grand Island Council Session - 8/28/2018 Page 174 / 202 Community Housing Study with Strategies for Affordable Housing –2019 July, 2014 Action Step 12: Several Downtown commercial buildings could be adaptively reused for upper level housing, to diversify the local housing market and emphasize the Downtown as a vibrant commercial and residential center. A total of 138 units, 48 owner and 90 rental units, should be developed in Downtown Grand Island, by 2019. Illustration 2 identifies several Downtown buildings targeted for residential development, as per the 2012 Downtown Housing & Development Study to target upper level housing. Action Step 13: Downtown housing should be targeted for both owner and rental units for all age and income sectors of the Community. Mixed income/age sectors of housing are encouraged. The Grand Island Housing Partnership, under the direction of the GIAEDC and GICRA should plan and implement a comprehensive Downtown Housing & Redevelopment Initiative that strategically matches local housing development activities with the development of additional commercial services and entertainment businesses. Action Step 14: Combine the efforts and funding resources of the Grand Island Community Redevelopment Authority, the Downtown Business Improvement District, as well as the Downtown Main Street Organization to expand the development of residential development in the Downtown. The availability of Tax Increment Financing (TIF) and Historical Preservation Tax Credits, in combination with the resources of property owners in Downtown Grand Island should be marketed to area developers to expand housing efforts throughout the Downtown. An example of this process is currently being utilized to redevelop the former Masonic Temple Building, renamed Tower 217. Grand Island Council Session - 8/28/2018 Page 175 / 202 Downtown Buildings Targeted for Residential Development, 2014 Grand Island Council Session - 8/28/2018 Page 176 / 202 Grow Grand Island Implementation Plan -January 2015 Community Assets –5.10 Support reinvestment in the downtown area by implementing the recommendations of the Grand Island Downtown Redevelopment Study, focusing on the advancement of the three catalytic projects identified in the Study: residential conversions, a boutique hotel, and reuse of the Kauffman Plaza/Park. Grand Island Council Session - 8/28/2018 Page 177 / 202 Grander Vision Nourishing the Hopes and Dreams of the Heartland – November 2014 Priority 7: Develop economic development strategies for key areas Potential Key Players: Local governments, downtown associations, and property owners and tenants in the vicinity of focus areas Timeline: 1 –5 years Action Steps: •Strengthen the local downtowns / Main Street areas in the communities Grand Island Council Session - 8/28/2018 Page 178 / 202 Grow Grand Island/Grand Vision Combined Plan Community Assets –5.10 / #7 Work Support reinvestment in the downtown area by implementing the recommendations of the Grand Island Downtown Redevelopment Study, focusing on the advancement of the three catalytic projects identified in the Study: residential conversions, a boutique hotel, and reuse of the Kauffman Plaza/Park. Grand Island Council Session - 8/28/2018 Page 179 / 202 Grand Island Downtown Redevelopment Study March 12, 2013 Investing in downtown can: •Protect and increase the existing property tax base •Maximize existing building stock, decreasing life safety concerns and future life safety issues •Retain and attract entrepreneurs and businesses •Provide for new businesses without green field development and the additional infrastructure it requires •Regenerate surrounding neighborhoods •Help retain young professionals •Create a regional attraction •Improved community pride and self-image •Preserve the historic assets of the community Grand Island Council Session - 8/28/2018 Page 180 / 202 Grand Island Downtown Redevelopment Study March 12, 2013 Recommended Actions: •Produce and maintain a building inventory and actively recruit businesses to downtown. •Support the renovation and redevelopment of existing buildings into housing and commercial uses through supplemental funding sources. •Implement a downtown zoning overlay district and associated design guidelines. •Invest in public improvements which enhance the users’ spatial, visual and physical experiences within the downtown district. •Create a strong brand and market Downtown Grand Island as a destination. •Promote and program downtown as a venue for city-wide events. •Support the development of a speculative building. •Establish partnerships with key community organizations. Grand Island Council Session - 8/28/2018 Page 181 / 202 Grow Grand Island Area Partnership –Downtown/Railside 2017 Action Plan: •Embrace Community Redevelopment Authority (CRA) and Downtown Business Improvement District (DBID) as partners in the Grow Grand Island Area Partnership with particular focus on leveraging EDC capabilities. •Support new DBID Master Plans and parking study, including possible designation of an “entertainment & Innovation District” similar to Railyard at Haymarket in Lincoln. •Dedicate staff to market downtown real estate to new hotel, fine dining, entertainment and non- retail commercial establishments, which attract spending from communities outside Grand Island. •Explore capitalizing on the unique blend of international cultures for food, entertainment and commerce. GOAL: Elevate Railside with Effective Organizing & Development Planning. Note: A total of $100,000 is needed to support the Downtown Business Improvement District Master Plan and Parking study. Grand Island Council Session - 8/28/2018 Page 182 / 202 Inventory of Past Downtown Goals Grand Island Council Session - 8/28/2018 Page 183 / 202 1983 -Grand Island CDB Development Plan •Walkway Plaza from Cedar to Sycamore •Clearance of Deteriorated Buildings •Restoration of the Yancey •Restoration of the Capital Theater –Theater has been lost •Restoration of Housing East of Sycamore 1993 -PLANNING & DESIGN STUDY •Marketing and Advertising -ongoing •Strengthen Personal Service of Businesses •Upper Level Housing -in progress •Upper Level Office –in progress •Strengthen Retail, Restaurants and Entertainment –in progress •Old City Hall converted to a Hotel –Converted into Offices •Brown Hotel Renovation –in progress •Bartenbach Hotel Renovation –planning stages •Grand Island Optical Housing Renovation –3 units completed •Trees Downtown –Completed, Management system in progress •Park Benches -Completed •Public Art Projects -Completed •Preservation of Facades –Program Created •Alley Improvements -Completed •Street Signage –In progress •Parking –In Progress •New Movie Theater •Entryways into downtown improved -Completed •Downtown Civic Center Grand Island Council Session - 8/28/2018 Page 184 / 202 2000 -TOWARD A GRAND CENTER •Old City Hall Renovation -Completed •Create a Government Center Downtown •Front Street Development (Extend Plaza to north) •Parking Development (Front Street) –In Progress •Diagonal Parking -Completed •Plaza Renovation -Completed •Alley Improvements -Completed •Branding -Completed •Wayfinding -Completed •Residential Development -Completed •Parking Management –In Progress •Parking Lot Enhancement –In Progress •Improve Regular Communications -Ongoing •Downtown Learning Center •Downtown Partnership 2004 -TOWARD A GRAND CENTER UPDATE •Intersection Bump outs & Streetscape –In Progress •Plaza Redesign -Completed •Upper level Housing –In Progress Grand Island Council Session - 8/28/2018 Page 185 / 202 2012 Housing Study •8 Building Renovation Plans –In Progress •Revolving Loan Fund •District Marketing Plan -Ongoing •Historic Tax District -Completed •Entertainment District •Expand or modify Facade Grant to include fire sprinklers –Developed new grant program 2013 -DOWNTOWN REDEVELOPMENT STUDY •Actively recruit businesses downtown –Rental Assistance Program •More downtown residential units (Goal is 50 by 2020) –On Goal •Invest in public improvements –Bike Racks, Plaza, Ongoing •Increase Entertainment Options for All Ages –In Progress •Increase Specialty Retail –In Progress •Create new funding programs –Life Safety, RAP •Hedde Building –Planning Stages •Labor Temple -Residential Conversion -Completed •Kaufmann Plaza Renovation -Completed •Commercial Incubator •Regional Tourism –In Progress •Branding -Ongoing •Move In Ready Spaces –In Progress •Update Design Guidelines-Completed •Downtown Zoning Overlay District Grand Island Council Session - 8/28/2018 Page 186 / 202 SURVEY MONKEY DATA Grand Island Council Session - 8/28/2018 Page 187 / 202 Grand Island Council Session - 8/28/2018 Page 188 / 202 ACTION ITEMS Grand Island Council Session - 8/28/2018 Page 189 / 202 Grand Island Council Session - 8/28/2018 Page 190 / 202 Grand Island Council Session - 8/28/2018 Page 191 / 202 Grand Island Council Session - 8/28/2018 Page 192 / 202 Grand Island Council Session - 8/28/2018 Page 193 / 202 Grand Island Council Session - 8/28/2018 Page 194 / 202 Grand Island Council Session - 8/28/2018 Page 195 / 202 ” “Railside is the epicenter of Grand Island with vibrant entertainment, restaurants and shopping that celebrates the rich culture of the grandness of the Grand Island Community featuring local flavors, talent, entrepreneurs, entertainers and artists. Grand Island Council Session - 8/28/2018 Page 196 / 202 GOALS Grand Island Council Session - 8/28/2018 Page 197 / 202 #GOALS Short Term Clean up and Revamp Green Spaces, Streetscapes and Parking Lots in Railside •Create a comprehensive plan for upkeep and cleaning of current problematic areas in Railside •Create a 3 year plan to upgrade the Aesthetic Appearance of Railside •Additional lighting options for upgrading appearance and safety •Revamp services that keep streets/sidewalks clean •Trash Control and Gardening Services Establish Key Partnerships •Develop Key Partnerships with the CVB, CRA and Grow Grand Island •Continue to Develop a sound and productive relationship with the City of Grand Island Marketing •Establish a three phased Marketing plan to improve the perception of Railside •Launch Phase I •Launch a marketing campaign to drive business into Railside Mid –Range Goals Assess upkeep and cleaning plans Enter into Phase III of Marketing Plan Recruitment of Key Business Types •Recruit High End Options –Dining, Shopping, Sleeping •Quick Dine Out/Shopping Options •Recruiting New Business to offer a variety of experiences •Continue to recruit diverse employers while retaining our current employee base Events/Activities •Continue to develop the Railside Brand through Railside Branded Events and Activities Historic Building/Railside Redevelopment •Continued Development of Historic Buildings •Fill current spaces •Encourage current buildings/businesses to revitalize storefronts/buildings to assist in the improvement of the overall appearance of Railside. Grand Island Council Session - 8/28/2018 Page 198 / 202 THANK YOU Grand Island Council Session - 8/28/2018 Page 199 / 202 Approved as to Form ¤ ___________ August 23, 2018 ¤ City Attorney R E S O L U T I O N 2018-258 WHEREAS, the City Council has considered the proposed budget of the Railside Business Improvement District for the fiscal year 2018-2019; and WHEREAS, the City has received the assessed values of the individual properties within the Railside Business Improvement District as shown in the office of the Hall County Assessor in effect on the first day of January, 2018. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND, NEBRASKA, that: 1.The budget for the Railside Business Improvement District is hereby considered. 2.A proposed assessment schedule shall be prepared. 3.A hearing before the City Council sitting as a Board of Equalization on the proposed assessments shall be held on September 25, 2018 at 7:00 p.m. in the City Council chambers of City Hall 100 East First Street, Grand Island NE. 4.Notice of hearing shall be published once each week for three consecutive weeks in accordance with the Business Improvement District Act. 5.Notice of hearing shall be mailed to all property owners of the Railside Business Improvement District by U.S. Mail, postage prepaid - - - Adopted by the City Council of the City of Grand Island, Nebraska, August 28, 2018. _______________________________________ Jeremy L. Jensen, Mayor Attest: _______________________________________ RaNae Edwards, City Clerk Grand Island Council Session - 8/28/2018 Page 200 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item J-1 Approving Payment of Claims for the Period of August 15, 2018 through August 28, 2018 The Claims for the period of August 15, 2018 through August 28, 2018 for a total amount of $5,147,603.54. A MOTION is in order. Staff Contact: Patrick Brown Grand Island Council Session - 8/28/2018 Page 201 / 202 City of Grand Island Tuesday, August 28, 2018 Council Session Item S-1 Discussion Concerning General Property, Downtown Improvement Parking District #2 (Ramp) and Community Redevelopment Authority (CRA) Tax Request for FY 2018-2019 This is an opportunity for the City Council to discuss the proposed FY 2018-2019 budget. Staff Contact: Marlan Ferguson Grand Island Council Session - 8/28/2018 Page 202 / 202