5/21/2024 Minutes CITY OF
GrRAND ISLAND
Iit
City Council Meeting Minutes
Council Chambers
City Hall
100 East First Street
May 21, 2024
7:00 PM
1. CALL TO ORDER
Mayor Roger Steele called the meeting to order at 7:00 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
The following City Officials were present: City Administrator Laura McAloon, Deputy City
Clerk Sonya Cisneros,Assistant City Administrator/CFO Patrick Brown, Finance Director Matt
Gleason, City Attorney Kari Fisk, Assistant City Attorney Stacy Nonhof and Public Works
Director Keith Kurz.
The following City Council Members were present: Maggie Mendoza,Bethany Guzinski, Chuck
Haase, Jack Sheard, Michelle Fitzke, Mark Stelk, Mitchell Nickerson, Doug Lanfear and Jason
Conley. Mike Paulick was absent.
4. SUBMITTAL OF REQUESTS FOR FUTURE AGENDA ITEMS
5. RESERVE TIME TO SPEAK ON AGENDA ITEMS
PUBLIC HEARING:
8.c) Public Hearing to Consider Changes to Grand Island Chapter 36-99 Home
Occupations
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Appliction
Information Presented to Planning Commission Received via Email prior to
meeting on 5-1-24
All Correspondence Received before or at May 1 Meeting
Documents Submitted by Alicia Glaser on May 16, 2024
Document Submitted by Brian Glaser on May 17, 2024
Document Submitted by Patti Panowicz on May 19 ,2024
Ordinance
#9976 - Consideration of Approving Changes to Grand Island Chapter 36-99 Home
Occupations
Page 2 of 10,City Council Regular Meeting,May 21,2024
Community Development Director Chad Nabity reported applicants Brian & Alicia Glaser have
requested changes to 36-99 Home Occupation as they apply to music lessons. The request would
allow for music instructors to teach up to 8 pupils at a time. The Regional Planning Commission
after a public hearing on the matter recommended an alternate version of the regulations that would
treat music lessons the same as cultural, art and dance lesson and limit the number of pupils to 4.
The following people spoke in favor:
Alicia and Brian Glaser discussed their business in their home and the importance to them in
keeping it in their home.
• Kush Budler
• Michelle Brisnehan
• Steve Fosselman
• Amanda Wilson
• Jared Noorlander
• Sharon Klanecky
• Heather Fucile
• Janae Liberty
• Mitchell Stehlik
• Ryan Erb
The following spoke in opposition:
• Tracy Gillespie
• John Gillespie
• Kelsy Kline
• Gerald Polls
Motion by Chuck Haase, second by Bethany Guzinski to suspend the rules #9976 - Consideration
of Approving Changes to Grand Island Chapter 36-99 Home Occupations. Roll Call: Ayes:
Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Mike Paulick, Michelle Fitzke,
Mark Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
Motion by Chuck Haase, second by Jack Sheard to approve #9976 - Consideration of Approving
Changes to Grand Island Chapter 36-99 Home Occupations. Roll Call: Ayes: Maggie Mendoza,
Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark Stelk, Mitchell Nickerson,
Doug Lanfear. Jason Conley voted no. Motion adopted.
6. PRESENTATIONS
6.a)Presentation by John Krajewski,P.E. of JK Energy Consulting, LLC on Cost of Service/Rate
Design Study for Electric, Water and Wastewater
Cover Page
Presentation
2024 Electric COS Report
2023 Water COS Report
Page 3 of 10,City Council Regular Meeting,May 21,2024
2023 Wastewater COS Report
John Krajewski with JK Energy Consulting, LLC presented a Cost of Service and Rate Design
Study and Integrated Resource Plan for electric, water, and sanitary sewer.
Electric Results:
The last completed electric cost of service and rate study was done in 2021 and deferred taking
action on the recommended 3% rate increase in FY21/22. An additional rate increase of 3% in
FY24/25 were recommended to maintain sufficient revenue to cover projected expenses. Without
rate changes, cash reserves would be completely exhausted by FY2031. The results and return on
rate base measures indicate rate increases are needed.
Proposed Rate Plan:
• October 1, 2024: 6%increase
• October 1, 2025: 3%increase
• Future rate increases of 3%annually likely necessary through FY2029
• Uncertainty related to financing costs, electric generation resource plans and regulatory/legal
factors may affect future rates.
The findings for cost of service for customer-related service was higher than existing customer
charges. Rates in summer are more than the cost of service while rates in the winter are less than
the cost of service. All rate classes within reasonable bandwidth around overall rate changes,
however, residential rates have largest under-recovery (rates too low) while three-phase power
rates have small over-recovery(rates too high).
Rate Design Goals:
• Long-term financial integrity
• Fair,reasonable and non-discriminatory rates
• Competitive rates compared to neighboring utilities
• Encourage use during low-cost periods
• Discourage use during high-cost periods
• Recognize the cost of service for each rate class and season
• Phase in large rate increases to minimize rate impacts to customers
Proposed Rate Plan:
• 6%rate increase in FY2025
• 3%rate increases in FY2026
• Additional 3%rate increase in FY2027 through FY2029
Proposed Rate Design Changes:
Increase customer charge for all rate classes:
• Existing charge: $8 per month
• Proposed charge: $11 per month in October 2024,increasing to$14 per month in October
2025
Page 4 of 10,City Council Regular Meeting,May 21,2024
Overall changes for residential customers:
• October 2024: $5.02 per month increase
• October 2025: $2.69 per month increase
• Develop stand-by rate class.
• Update Economic Development Rate.
• Offer interruptible rate.
• Separate payment-in-lieu-of tax (PILOT) payment into separate line item on customer
bill.
• Update power factor clause.
• Modify Power Cost Adjustment(PCA)calculation.
Electric Results:
Proposed Rate Design Changes:
• Update power factor clause.
• Modify Power Cost Adjustment(PCA) (Cost of energy per kWh applied to customer's monthly
charge will transition from 6-month average to 12-month average.
Conclusions:
• Rate increases of 6%in FY2025 and 3%in FY2026 are necessary to ensure adequate revenue to
cover projected expenses.
• Additional rate increases of 3%may be necessary in FY2027 through FY2029.
Recommendations:
• Implements a 6%rate increase,effective October 2024,and a 3%rate increase,effective October
2025.
• Addresses the various issues outlined in the report.
Water Results:
Projected Rate Plan:
• FY2025: 7.4%
• FY2026: 7%
• FY2027: 5%
• FY2028: 3%
• FY2029: 3%
• FY2030: 3%
Proposed Rate Design Changes:
• Increase the unfunded federal mandates fee
• FY2025—increase from $.070/month to $0.83/month
• FY2026—increase from $0.83/month to $0.89/month
• Change name of"monthly fee"to "service fee"
Page 5 of 10,City Council Regular Meeting,May 21,2024
• Increase Service Fee for meters of 1" or less
• Service fee would be increased for larger service size by similar percentages
• Modify language in rate schedule to use 100 cf or $/100 cf to eliminate inconsistency
• Increase revenue from the volume charge and simplify block structure
• Increase revenue from fire hydrants from 9% by increasing the service charge and
inspection fees
• Separate PILOR payment into separate line item on customer bill
• Proposed rate changes would increase the average inside city customer water bull by
$1.82 per month in FY2025
Recommendations:
• Increase water rates by 7.4% in FY2025 and 7.0% in FY2026
• Utility should consider additional rate increases of 5% in FY2027 and 3% in FY2028
through FY2030
Wastewater Results
Funding of future capital improvements is key parameter/factor in analysis.
Financing Parameters:
• $100 million project cost
• $26 million funding from accumulated reserves
• Capitalize interest costs through 2038 to eliminate overlap with existing bonds
• 30-year repayment schedule
• 4.5% interest rate
Financial Results:
• Over long term, most significant factor was debt service for South Intercept project
• Estimated debt service for South Intercept is more than $5 million
Proposed Rate Plan:
• 6% in FY2025 through FY2028
• 3% in FY2029 through FY2031
• 2% in FY2032 and FY2033
• Increasing all rates by 6% in FY2025, 2026, and 2027 would be reasonable and justified
based on cost of service analysis
• High-strength surcharges reviewed as part of study
• Increasing surcharge rates the same percentage as the overall rate changes would result
in reasonable rates
Proposed Rate Design Changes:
• Daily fines and lab fees should be increased by an amount at least equal to the overall
rate change being proposed each year
• City collected more than $500,000 in fines and fees
Page 6 of 10,City Council Regular Meeting,May 21,2024
Recommendations:
• Adopt the 6%rate increase for FY2025
• Increase lab fees and daily fines and amount equal to or greater to or greater than the
overall rate increase of 6% in FY2025
• Plan to increase rates 6% in FY2026 and FY2027
• Increase lab fees
• Review rates after BY2027
Typical residential rate increase per month FY2025:
• Electric $5.02
• Water $1.82
• Wastewater $1.73
7. CONSENT AGENDA
Motion by Bethany Guzinski, second by Doug Lanfear to approve 7) CONSENT AGENDA
excluding item 7.b. Roll Call: Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack
Sheard, Michelle Fitzke, Mark Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion
adopted.
7.a) Approving Minutes of the May 7, 2024 City Council Regular Meeting.
Cover Page
Minutes
7.b) Approving Payment of Claims for the Period of May 8, 2024 through May 21,
2024 for a total amount of$6,060,608.71.
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Discussion was presented on the new amount of claims to be paid in an amount of
$6,048,079.58.
Motion by Mitchell Nickerson, second by Bethany Guzinski to approve 7) CONSENT AGENDA
item 7.b. Roll Call: Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard,
Michelle Fitzke, Mark Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
7.c) #2024-121 -Approving Final Plat and Subdivision Agreement for GI Acres 2nd
Subdivision.
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Overview
Aerial Map
Plat
Application
Subdivision Agreement
Resolution
7.d) #2024-122 - Approving Final Plat and Subdivision Agreement for Webb Road
Third Subdivision.
Page 7 of 10,City Council Regular Meeting,May 21,2024
Cover Page
Overview
Application
Plat
Subdivision Agreement
Resolution
7.e) #2024-123 -Approving Bid Award- Steam Coil Air Heater.
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Bid Summary
Resolution
With Tei Construction Services of Duncan, South Carolina in an amount of$194,004.00.
7.f) #2024-124 - Approving Award of Professional Engineering Consulting Services
for 2024 Sanitary Sewer Rehabilitation; Project No. 2024-S-3.
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Bid Summary
Letter Agreement
Exhibit
Resolution
With Olsson, Inc. of Grand Island, Nebraska in an amount not to exceed $158,750.00.
7.g) #2024-125 - Approving Bid Award for Automated Oil & Grease Solid Phase
Extraction (SPE) System for the Wastewater Division of the Public Works Department.
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Bid Summary
Resolution
With Biotage, LLC of Charlotte,North Carolina in an amount of$60,200.03.
7.h) #2024-126 - Approving Amendment to Resolution No. 2022-246 on Section 5339
Agreement for the Transit Division of the Public Works Department.
Cover Page
Original Grant Application
Agreement
Resolution
7.i) #2024-127-Approving Temporary Construction Easements for Tri Street Drainage
Improvements;Project No. 2023-D-(Hochen, RS Wheel,LLC,R2S2, LLC and Gark Homes SHV
3V, LLC).
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Hochen Temporary Easement
RS Wheel, LLC Temporary Easement
R2S2, LLC Temporary Easement
Gark Homes SHV 3V, LLC Temporary Easement
Resolution
Page 8 of 10,City Council Regular Meeting,May 21,2024
8. PUBLIC HEARINGS
8.a) Public Hearing on Request from Hooker Bros. Sand & Gravel for a renewal of their
Conditional Use Permit to Operate Accessory Uses for Sand and Gravel Operation located
at 3860 South Locust Street
#2024-128 -Approving Request from Hooker Bros. Sand & Gravel for a renewal of their
Conditional Use Permit to Operate Accessory Uses for a Sand and Gravel Operation
located at 3860 South Locust Street
Community Development Director Chad Nabity reported this request is for council to allow for
the continued operation of maintenance equipment, storage and stock piling of product and
aggregate accessory to the operation of a sand and gravel facility at 3947 S. Locust Street. Staff
recommended approval.
Ken Clausen spoke about concerns on drainage.
Jeff Hooker spoke in favor.
Motion by Chuck Haase, second by Bethany Guzinski to approve#2024-128 -Approving Request
from Hooker Bros. Sand & Gravel for a renewal of their Conditional Use Permit to Operate
Accessory Uses for a Sand and Gravel Operation located at 3860 South Locust Street. Roll Call:
Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark
Stelk, Mitchell Nickerson, Doub Lanfear, Jason Conley. Motion adopted.
8.b) Public Hearing on Acquisition of Permanent Drainage Easement for Tri Street
Drainage Improvements; Project No. 2023-D-1 (Hochen, RS Wheel, LLC, & Gark Homes SHV
3V, LLC)
#2024-129- Approving Acquisition of Permanent Drainage Easement for Tri Street
Drainage Improvements; Project No. 2023-D-1 (Hochen,RS Wheel, LLC, & Gark Homes
SHV 3V, LLC)
Public Works Director Kieth Kurz reported that this project would address drainage concerns on
Tri Street and US Highway 34. Permanent drainage easements are needed to accommodate the Tri
Street Drainage Improvements. Engineering staff of Public Works negotiated with the property
owner for such purpose resulting in an amount of$1,449.00 to be paid by the City.
Motion by Bethany Guzinski, second by Jack Sheard to approve #2024-129- Approving
Acquisition of Permanent Drainage Easement for Tri Street Drainage Improvements; Project No.
2023-D-1 (Hochen, RS Wheel, LLC, & Gark Homes SHV 3V, LLC). Roll Call: Ayes: Maggie
Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark Stelk, Mitchell
Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
Page 9 of 10,City Council Regular Meeting,May 21,2024
9. ORDINANCES
9.a) #9974 - Consideration of Amending Chapter 26 Plumbing Article 26-I1 of Grand
Island City Code; to Amend Section 26-34 to Clarify and Define the Term "Employee" For The
Purposes of Chapter 26.
Cover Page
Ordinance
Chief Building Official Ed Klimek reported the City of Grand Island required plumbing work to
be performed by licensed plumbing contractors under the supervision of a registered Contracting
Master Plumber. The City Code states that Master, Journeyman, and Apprentice Plumbers must
be an employee of a registered Contracting Plumber. Occasionally, projects have involved
Contracting Master Plumbers sub-contracting labor of other pluming companies to provide
additional labor. The purpose of the amendment would provide language in the code to define the
term "employee" as it pertains to the relationship to the contracting master plumber to include
employees, agents, contractors, subcontractors, and independent contractors.
Motion by Bethany Guzinski, second by Doug Lanfear to suspend the rules#9974 - Consideration
of Amending Chapter 26 Plumbing Article 26-11 of Grand Island City Code; to Amend Section
26-34 to Clarify and Define the Term "Employee" For The Purposes of Chapter 26.1. Roll Call:
Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Mike Paulick, Michelle
Fitzke, Mark Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
Motion by Bethany Guzinski, second by Mark Stelk to approve #9974 - Consideration of
Amending Chapter 26 Plumbing Article 26-II of Grand Island City Code; to Amend Section 26-
34 to Clarify and Define the Term"Employee"For The Purposes of Chapter 26.1.Roll Call:Ayes:
Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark Stelk,
Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
9.b) #9975 - Consideration of Amending Chapter 18 Mechanical Article 18-III of Grand
Island City Code; to Amend Section 18-25 to Clarify and Define the Term "Employee"
For The Purposes of Chapter 18.
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Ordinance
Chief Building Official Ed Klimek reported The City of Grand Island required mechanical work
to be performed by licensed mechanical contractors under the supervision of a registered
Contracting Master Mechanical Fitter. The City Code states that Master, Journeyman, and
Apprentice Mechanical Fitters must be an employee of a registered Contracting Mechanical Fitter.
Occasionally,projects have involved Contracting Master Mechanical Fitters sub-contracting labor
of other mechanical companies to provide additional labor. The purpose of the amendment would
provide language in the code to define the term "employee" as it pertains to the relationship to the
contracting master plumber to include employees, agents, contractors, subcontractors, and
independent contractors.
Page 10 of 10,City Council Regular Meeting,May 21,2024
Motion by Bethany Guzinski, second by Chuck Haase to suspend the rules #9975 - Consideration
of Amending Chapter 18 Mechanical Article 18-III of Grand Island City Code; to Amend Section
18-25 to Clarify and Define the Term "Employee" For The Purposes of Chapter 18. Roll Call:
Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark
Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
Motion by Chuck Haase, second by Bethany Guzinski to approve #9975 - Consideration of
Amending Chapter 18 Mechanical Article 18-III of Grand Island City Code; to Amend Section
18-25 to Clarify and Define the Term "Employee" For The Purposes of Chapter 18. Roll Call:
Ayes: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Michelle Fitzke, Mark
Stelk, Mitchell Nickerson, Doug Lanfear, Jason Conley. Motion adopted.
11. ADJOURMENT
The meeting was adjourned at 10:17 p.m.
SonyaCisneros
Deputy City Clerk
i