07/16/2002 Minutes
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OFFICIAL PROCEEDINGS
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
July 16,2002
Pursuant to due call and notice thereof, a Study Session 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 July
16,2002. Notice of the meeting was given in the Grand Island Independent on July 10, 2002.
Council President Larry Seifert called the meeting to order at 7:00 p.m. The following members were
present: Councilmembers Pielstick, Larson, Hornady, Whitesides, Haase, Murray and Walker.
Councilmembers Sorensen and Ward were absent. The following City Officials were present: City
Administrator MarIan Ferguson, City Clerk RaNae Edwards, City Attorney Charlie Cuypers, Public
Works Director Steve Riehle and Finance Director David Springer.
PLEDGE OF ALLEGIANCE was said followed by the INVOCATION given by Councilmember
Pielstick.
RESERVE TIME TO SPEAK ON AGENDA ITEMS: Nine individuals reserved time to speak on
agenda items.
Presentation of Public Works Annual Report. Steve Riehle, Public Works Director, reviewed the
Public Works Annual Report, which included fleet services, engineering, solid waste landfill, street
and transportation, and the wastewater treatment plant.
Final Report for the Platte Valley Industrial Park Drainage. Steve Riehle, Public Works Director,
reported that the engineering consulting firm of Olsson Associates of Grand Island was hired to study
the storm water drainage for the Platte Valley Industrial Park. The drainage system within the Park
was part of the platting/subdividing of the property. An outlet for the ditch and detention cell system
was needed.
Kevin Prior representing Olsson Associates presented two alternatives for carrying the storm water to
an outlet. Staff felt it was appropriate to brief the Council on the results of the study before beginning
discussions with property owners downstream of the Industrial Park. When more precise details of
the plan as well as Right-of-Way requirements are known, another presentation would be made. Mr.
Riehle stated a Public Hearing would be held to acquire Right-of-Way by Resolution so that
discussions on acquisition of Right-of-Way could begin
Review of Proposed Changes to the Procurement Code. Marlan Ferguson, City Administrator,
reported that a staff committee had been charged with reviewing the current Procurement Code and
suggested areas for improvement. A comprehensive review of the Procurement Code had not been
undertaken since the Code was significantly overhauled in 1991.
The Procurement Code provides for the fair and equitable treatment of all persons involved in public
purchasing by the City, to maximize the purchasing value of public funds in procurement, and to
provide safeguards for maintaining a procurement system of quality and integrity.
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Page 2, City Council Study Session, July 16,2002
Over the course of the last three months, the Committee had reviewed not only the Procurement
Code (Chapter 27 of City Code) but also associated policies and procedures that were established at
the Administration level. The goal of the Committee was to identify what changes, if any, could be
made to streamline the purchasing process and, at the same time, retain the integrity of the City's
procurement processes. To assist in this effort, procurement policies from other first class cities were
obtained and analyzed. Results demonstrated no consistent standards. Some cities did not have a
formalized or centralized bidding process; each department handled purchases independently and in
many cases differently than others. Others, like Grand Island, were quite structured in their bidding
processes. As a result of this review and discussions with management, it was recommended that the
Procurement Code be amended as follows:
Section 27-6 and 27-7 (Responsibility) Re-assign supervision of the purchasing policies from the
Mayor and City Council to the City Administrator. This change clarifies that Department Directors
are responsible to the City Administrator for purchasing decisions and any deviations to the
Procurement Code would be addressed by the City Administrator and the Department Director, with
the assistance of the purchasing agent.
Section 27-8 and 27-10 (Advertising Time) Reduce the length of time required between formal
publication of invitation for sealed bids and bid opening from 15 days to 7 days. This same time
frame would be established for the request for proposals for professional services such as
accountants, clergy, physicians, lawyers, and dentists. These requests were generally mailed to
potential bidders/proposals, in addition to the formal public announcement. This time frame maintains
adequate notice for response and allows for more efficient and timely purchasing. These timeframes
were the minimum required and could be increased at the discretion of the Department Director
depending upon the size or complexity of the project.
Section 27-9 (Advertising Time) Reduce the length of time required for publication for
advertisements for competitive sealed proposals and the opening for these proposals from 30 days to
15 days. Again, this allowed adequate notice for offerors while expediting procurement process. It
should be noted that requests for competitive sealed proposals are mailed to potential proposors who
might have an interest (companies listed in Yellow Pages, for instance) or those who have previously
expressed interest, in addition to the public announcement. These timeframes were the minimum
required and could be increased at the discretion of the Department Director depending upon the size
and complexity of the project.
Section 27-11 (Small Purchases) Set the dollar limit for small purchases at $2,500. Small purchases
such as materials, supplies, and equipment purchases that were under $2,500 could be purchased
without obtaining three quotations. Materials, supplies and equipment purchases over $2,500 would
require the solicitation of three confidential quotations.
Section 27-1 1 (Materials/Services) Increase the dollar limit for joint material/services from $5,000 to
$7,500. These increases reflected real increases in service costs over the course of the last decade.
Section 27-11 (Formal Contracts) Align the contract amount for small purchases with those required
for public works improvement projects. This change required all contracts exceeding $20,000 to be
considered by the City Council. Currently, the Procurement Code required contracts of$10,000 to be
brought before the Council, except for public works improvement projects ($20,000) or purchases for
the enlargement or improvement of the electric system ($40,000).
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Page 3, City Council Study Session, July 16,2002
Section 27-31 (Bidder Security) Adjust the dollar limit for when bid security was required for
construction projects. Local Miscellaneous Expenditure Act Review of the Local Miscellaneous
Expenditure Act had also taken place. The Legislature adopted the Expenditure Act to address issues
relating to the purchase of meals, flowers, gifts and other similar expenditures. The City Council
adopted the Local Miscellaneous Expenditure Act in its entirety. The Act addresses when the
expenditures of public funds for meals, hotels, etc. are authorized. The Act allowed for the
expenditure of public funds for meals, hotels, traveling and similar expenditures for officials,
employees, or volunteers when they are conducting public business, if the government body had
given prior approval for these expenditures. It was recommended that a line item be included in next
year's budget for those types of expenditures. In order to ensure compliance with the intent of the
Act, all requests would require the prior approval of the City Administrator.
Councilmember Pielstick expressed concerns about the advertising time. She felt that by giving
companies plenty of time to work on their bids there might not be as many change orders.
Councilmember Larson stated that most companies wait until the last minute to work on their bids
anyway and most change orders where at the request of the City. Councilmember Haase questioned
the change in responsibility. Mr. Ferguson stated this would align with what was being done.
Councilmember Whitesides stated he felt the wording of Section 27-6 should include the mayor and
city council.
Review of Proposed Fiscal Year 2002-2003 Annual Budget. The following outside agencies were
present to request funding needs.
Donna Douglas, Community Humanitarian Resource Center, requested $4,500 the same as last year.
Renee' Seifert, Grand Island/Hall County Convention and Visitors Bureau, requested $10,000 the
same as last year.
Doyle Holme, Council for International Visitors, requested $1,000 the same as last year.
Councilmember Murray questioned the total budget which was $2,400.
Lauri Shultis, Crisis Center, requested $13,000 for FY2002-2003. Last years request was $10,000.
Councilmember Larson asked if the Crisis Center worked with other organizations. Ms. Shultis stated
that several organizations are associated with the United Way and they try not to duplicate services.
Family Violence Coalition of Central NE, Inc. requested $20,000 for FY2002-2003. Last years
request was $10,000. No one was present from the organization.
Jerry Murphy, Grand Island Dive and Rescue Team, requested $9,772. This was the first year a
request was submitted. The money requested would be used for the purchase of a trailer.
Councilmember Walker asked if they had received money from the County. Mr. Murphy stated they
received money from Keno funds and where ever they could get it. All services were volunteered.
Councilmember Pielstick asked how long they had been organized. Mr. Murphy stated they started in
1989. Councilmember Seifert asked if they were reimbursed for their services. Mr. Murphy stated
they were not. Brad Loeb, member of the Grand Island Dive and Rescue Team spoke in support of
the funding. Councilmember Hornady asked if this was a one-time request. Mr. Loeb stated the
amount of $9,772 would be a one-time request, but would like the opportunity to come back next
year as an outside agency. Councilmember Pielstick suggested the City fund $10,000.
Marilyn Mueller, Retired and Senior Volunteer Program, requested $10,000 the same as last year.
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Page 4, City Council Study Session, July 16, 2002
Lois Steinike, Senior Citizens Industries, Inc., requested $10,000 the same as last year. Discussion
was had concerning transportation. Councilmember Haase commented about the meals-on-wheels
and what a valuable program it was.
Jill Hornady and Quiten Hooker, Central Nebraska Humane Society, requested $172,000 for
FY2002-2003. Last years request was $121,000. Ms. Hornady explained the increase in budget
request was due to increased animal intake and a need for a bigger and better facility.
Councilmember Walker asked what their funding sources were. Ms. Hornady stated license fees and
donations. Councilmember Pielstick stated concerns about the bad publicity and at this time a
$51,000 increase was too much. Councilmember Larson asked if this was the only humane society in
central Nebraska. Ms. Hornady stated that is was. Mr. Larson asked whether other counties were part
of the funding source. Ms. Hornady stated currently they were not but would be contacted.
Councilmember Walker asked who received the money for licensing fees and fines. Ms. Hornady
stated the Humane Society received those monies. Councilmember Pielstick questioned the cost of
adopting an animal. Ms. Hornady stated it ranged between $65 to $95. Councilmember Hornady
mentioned the service of disposing wild dead animals. It was mentioned that approximately 28,000
animals go through the Humane Society a year and 42% to 50% of those would have to be
euthanized because there was not enough room to board them.
Steve Riehle, Public Works Director spoke for Betty Curtis, Clean Community Systems. Requested
was $18,000 the same as last year.
It was a consensus of the Council that all outside agencies needed to hold the line.
400 Fund and General Capital Funds: David Springer, Finance Director, reported on the 400 Fund
and General Capital Funds. Parks and Recreation Department and Public Works Departments were
reviewed with regards to the upcoming projects in the 400 Fund. Councilmember Murray questioned
the water park expansion. Steve Paustian, Parks and Recreation Director explained the future plans
for the water park. Councilmember Larson questioned the sales tax revenues. Mr. Springer stated we
were ahead oflast year's collections.
ADJOURNMENT: The meeting was adjourned at 10:05 p.m.
Respectfully submitted,
Qof\QL rn~
RaN ae Edwards
City Clerk