08/26/2003 Minutes
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OFFICIAL PROCEEDINGS
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL REGULAR MEETING
August 26, 2003
Pursuant to due call and notice thereof, a Regular 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 26,2003. Notice of the meeting was given in the Grand Island Independent on
August 20,2003.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following members were
present: Councilmembers Meyer, Whitesides, Pielstick, Gilbert, Nickerson, Seifert, Pauly,
Hornady, Walker and Haase. The following City Officials were present: City Administrator
Marlan Ferguson, City Clerk RaNae Edwards, Public Works Director Steve Riehle, City
Attorney Doug Walker and Finance Director David Springer.
PLEDGE OF ALLEGIANCE was said followed by the INVOCATION given by Father Walt
Phelan, St. Mary's Catholic Church, 204 South Cedar Street.
RESERVE TIME TO SPEAK ON AGENDA ITEMS: Three individuals reserved time to speak
on agenda items.
PRESENTATIONS AND PROCLAMATIONS:
Mayor Jay Vavricek recognized candidates Rod Foley and Jose Zapata by presenting them with a
Certificate of Appreciation for submitting their names for Councilmember to Ward 1.
Parting Comments from City Administrator Marlan Ferguson Reflecting on His Years of Service
with the City. City Administrator Marlan Ferguson commented on his four years of service with
the City. A power point presentation was presented listing the following 10 successes among
others during his service with the City: 1) Heartland Events Center fund-raising, 2) South Locust
widening and Interstate 80 interchange, 3) retaining CNH manufacturing in our community, 4)
the passage of a Local Option Municipal Economic Development Plan LB-840, 5) Upgrading
water and electric utilities, 6) the Apache Helicopter project, 7) the redevelopment of old City
Hall, 8) the creation of the Workforce Development One-Stop Center, 9) the Downtown Alleys,
and 10) The Wood River flood control project. Mr. Ferguson thanked his family, staff, and the
citizens of Grand Island.
PUBLIC HEARINGS:
Public Hearing on Request of Carl Mettenbrink, 2200 East One-R Road for a Conditional Use
Permit for a Used Car Lot Located at 2809 West Old Highway 30. Craig Lewis, Building
Department Director reported that Carl Mettenbrink representing Grand Island Farm Supply had
submitted a request for a conditional use permit to allow for the continued operation of a used
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Page 2, City Council Regular Meeting, August 26, 2003
car and truck sales establishment at 2809 West Old Highway #30. The City Council earlier this
year amended the City Code to require that existing vehicle sales establishments without
improved hard surfaced lots receive approval in the form of a conditional use permit from the
City Council. Section 36-49(A) allows for a waiver approved by the City Council for businesses
that were operating at the same location prior to March 9,1999. No public testimony was heard.
Public Hearing on Acquisition of Utility Easement Located at 4704 Seedling Mile Road.
(Lanzendorf Holdings). Gary Mader, Utility Director reported that acquisition of a utility
easement located at 4704 Seedling Mile Road, was required in order to have access to install,
upgrade, maintain, and repair power appurtenances. This easement would be used to provide
electrical service to a newly established lot in the Subdivision. No public testimony was heard.
Public Hearing on Proposed Amendments to FY 2002-2003 Annual Budget. David Springer,
Finance Director reported on August 27,2002, City Council approved the FY2002-2003 Annual
Budget with Addendum #1 by Ordinance #8761. Amendment #1 was being submitted for
Council consideration. This amendment would increase the appropriation for the Waste Water
Treatment Plant (WWTP) Fund by $16,281,165 for the retirement of the 1994 series bonds and
related expenses. The WWTP budgeted revenues would increase by $15,970,000 for bond
proceeds. The revision would also increase budgeted appropriation for the Downtown Business
Improvement District by $48,000 to enable the District to dissolve. No public testimony was
heard.
ORDINANCES:
Councilmember Pielstick made the motion that the statutory rules requiring ordinances to be read
by title on three different days be suspended and that ordinances numbered
#8835 - Consideration of Approving FY 2003-2004 Annual Single City Budget, The
Annual Appropriations Bill Including Addendum #1
#8836 - Consideration of Approving Salary Ordinance Pertaining to IBEW
#8837 - Consideration of Amendments to FY 2002-2003 Annual Budget
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 these ordinances on their first reading and then upon final
passage and call for a roll call vote on each reading and then upon final passage. Councilmember
Seifert seconded the motion. Upon roll call vote, all voted aye. Motion adopted.
Mayor: Is there anyone in the audience interested in these Ordinances? No public comment was
heard.
City Clerk: Ordinances #8835, #8836, and #8837 on first reading. All those in favor of the
passage of these ordinances on first reading, answer roll call vote. Upon roll call vote, all voted
aye. It was noted that Councilmember Pielstick voted no on Ordinances #8835 and #8837.
Councilmember Haase voted no on Ordinance #8835. Motion adopted.
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Page 3, City Council Regular Meeting, August 26, 2003
City Clerk: Ordinances #8835, #8836, and #8837 on final passage. All those in favor of the
passage of these ordinances on final passage, answer roll call vote. Upon roll call vote, all voted
aye. It was noted that Councilmember Pielstick voted no on Ordinances #8835 and #8837.
Councilmember Haase voted no on Ordinance #8835. Motion adopted.
Mayor: By reason of the roll call votes on first reading and then upon final passage, Ordinances
#8835, #8836, and #8837 are declared to be lawfully passed and adopted upon publication as
required by law.
CONSENT AGENDA: Councilmember Pielstick requested item G-4 be removed from the
Consent Agenda. Councilmember Meyer requested item G-19 be removed from the Consent
Agenda. Motion by Homady, second by Seifert, carried unanimously to approve the Consent
Agenda, with the exceptions of G-4 and G-19. Upon roll call vote, all voted aye. Motion
adopted.
Receipt of Official Document - Civil Service Minutes of July 22,2003.
Approving Minutes of August 12,2003 City Council Regular Meeting.
Approving Minutes of August 19,2003 City Council Study Session. Councilmembers Haase and
Whitesides abstained.
Approving Appointments of Al Avery, Beckie Bixby, Dianne Miller, and Mike Nolan to the
Zoning Board of Adjustment.
Approving Appointments of Ed Armstrong, Dan Eakes, Matt Shonsey, Dr. W.J. Thiemann, Tom
Ward, Tim White, and Lisa Willman to the Economic Development Program Citizens Advisory
Committee. Councilmember Walker voted no.
Approving Request of Carl Mettenbrink, 2200 East One-R Road for a Conditional Use Permit
for a Used Car Lot Located at 2809 West Old Highway 30.
#2003-236 - Approving Authorization of Business Improvement Board to Administer Funds
Collected for BID #5.
#2003-237 - Approving Acquisition of Utility Easement Located at 4704 Seedling Mile Road.
(Lanzendorf Ho ldings)
#2003-238 - Approving Bid Award for Kimball Street Reservoir Rehabilitation and Pine Street
Reservoir Demolition with Diamond Engineering Company of Grand Island, Nebraska in an
Amount of$712,930.00.
#2003-239 - Approving Bid Award for Storage Building at Fire Station #3 with Roger Krzycki
Construction of Grand Island, Nebraska in an Amount of$59,972.00.
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Page 4, City Council Regular Meeting, August 26, 2003
#2003-240 - Approving Changes to the By-Laws of the Community Development Advisory
Committee.
#2003-241 - Approving Amendment to the City of Grand Island Homeownership Opportunity
Program (HOP) Guidelines for New Housing and Existing Housing.
#2003-242 - Approving Changes to the Owner-Occupied Rehabilitation Program Guidelines.
#2003-243 - Approving Certificate of Final Completion for Asphalt Maintenance Proiect 2002-
AC-1 with l.LL. Asphalt Paving Company of Grand Island. Nebraska.
#2003-244 - Approving Certificate of Final Completion for Sanitary Sewer District #500.
Seedling Mile Road with Starostka Group Co. of Grand Island. Nebraska.
#2003-245 - Approving Certificate of Final Completion for Sanitary Sewer District #501.
Freedom Acres with The Diamond Engineering Company of Grand Island. Nebraska.
#2003-246 - Approving Bid Award for Utility Tractor for Street & Transportation Division of
the Public Works Department with Fairbanks of Grand Island. Nebraska in an Amount of
$24.995.00.
#2003-248 - Approving Grant Application to the Nebraska State Historical Society Foundation
for Interior Finish Materials for the Stolley House.
Approving Appointments of Sue Pirnie and Lee Elliott to the Community Redevelopment
Authority Board. Motion was made by Hornady, second by Walker to approve the appointments
to the Community Redevelopment Authority Board. Councilmember Pielstick mentioned
concerns to approving appointments to a board that was no longer a part of the City. City
Administrator Marlan Ferguson stated CRA was still authorized by Council and the Chamber
proyided administratiye services. Upon roll call vote, Councilmembers Meyer, Whitesides,
Gilbert, Nickerson, Seifert, Pauly, Hornady, Walker, and Haase (Haase voted no for Lee Elliott)
voted aye. Councilmember Pielstick voted no. Motion adopted.
#2003-247 - Approving Changes to the Human Resources Handbook. Motion was made by
Seifert, second by Hornady to approve Resolution #2003-247. Brenda Sutherland, Human
Resources Director reported that changes being made to the Handbook. Clarification was made
to personal days, numbering of step changes, and hours worked to calculate overtime pay.
Councilmember Meyer commented on hours worked and felt we should keep it the way is was
which included holidays and vacation hours. Councilmember Whitesides stated we needed to
clarify what was being done.
Upon roll call vote, Councilmembers Whitesides, Pielstick, Gilbert, Nickerson, Seifert, Pauly,
Hornady, Walker, and Haase voted aye. Councilmember Meyer voted no. Motion adopted.
I REQUESTS AND REFERRALS:
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Page 5, City Council Regular Meeting, August 26, 2003
Request by Pheasant's Forever to Serve Alcohol at CAAP Skeet Range. City Clerk RaNae
Edwards reported that the City Clerk's Office had received a letter from Pheasant's Forever to
hold its annual Appreciation Banquet at the Grand Island Skeet Club and were requesting to
serve alcoholic beverages. As this was City owned property, it had been the policy of the City to
have Council approval. If approval was given they would be required to obtain a Special
Designated Liquor License.
Councilmember Pielstick voiced concerns about having guns present when alcohol was being
served and Councilmember Gilbert questioned what safe guards would be used with regards to
minors in attendance. Steve Groeteke, 20 Lillian Lane, Doniphan answered questions of the
council.
Motion was made by Hornady, second by Whitesides, to approve the request from Pheasant's
Forever. Upon roll call vote, Councilmembers Meyer, Whitesides, Gilbert, Nickerson, Seifert,
Pauly, Hornady, Walker, and Haase voted aye. Councilmember Pielstick voted no. Motion
adopted.
RESOLUTIONS:
#2003-249 - Approving Addendum to Lease Purchase Agreement with Fonner Park. Doug
Walker, City Attorney reported that on October 9, 2001 the City of Grand Island entered into a
Lease Purchase Agreement with Fonner Park Exposition and Events Center ("Heartland") to
develop an exposition and events center that would be owned be the City when all of the lease
payments had been made.
Heartland was required to obtain commitments for all of the funds to be used for the construction
of the events center other than the City portion which would consist of lease payments made over
a ten year period. The original agreement required Heartland to have all of the fundraising
complete by October 9, 2003. Heartland has raised approximately 86% of the funding to
construct the event center; however, it would not be able to meet the deadline in the original
agreement for having 100% of the funds raised.
One of the provisions of the addendum to paragraph three of the original purchase agreement
was to give Heartland until October 9, 2005 to complete the fundraising requirements. Another
issue addressed by the addendum to the lease purchase agreement was that of obtaining a sales
tax exemption for the supplies and materials used to construct the events center.
The addendum contains changes to paragraph number six to the original agreement which
enhances the city's position for seeking and obtaining a ruling from the Nebraska Department of
Revenue that would exempt the project from sales taxes. If the city was successful in obtaining
an exemption this could result in significant savings on the original estimated cost of the project.
Another development that had occurred since the original Lease Purchase Agreement was signed
is that the Nebraska Department of Economic Development has promulgated rules for
municipalities to apply for grants pursuant to the Local Civic, Cultural and Convention Center
Financing Act. The addendum to the purchase agreement states that the City would seek a grant
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Page 6, City Council Regular Meeting, August 26, 2003
to help provide some of the construction costs of the event center. If Grand Island was successful
in obtaining a grant it would be eligible to receive up to $500,000 for this project.
Motion was made by Seifert, second by Walker, to approve Resolution #2003-249. Upon roll
call voted, all voted aye. Motion adopted.
#2003-250 - Consideration of Approving 1 % Increase to the Lid Limit. David Springer, Finance
Director reported that in 1998 the Nebraska State Legislature passed LB989, which put a cap on
the amount of restricted revenues a political subdivision could budget for.
The restricted revenues that the City of Grand Island included in the budget were Property Taxes,
Payments in Lieu of Property Tax, Local Option Sales Tax, Motor Vehicle Tax and State Aid. Of
these restricted revenues, property tax was the only revenue that the City could control.
The increase in restricted funds authority using the 1 % additional amount and the population
growth (when available) was not an increase in budgeted revenues. It only provided the ability to
increase restricted revenues, particularly property tax, in a future year if necessary, if council so
decides.
Discussion was had concerning taxes and unused restricted funds.
Motion was made by Whitesides, second by Meyer, to approve Resolution #2003-250. Upon roll
call vote, Councilmembers Meyer, Whitesides, Gilbert, Nickerson, Seifert, Pauly, Hornady, and
Walker voted aye. Councilmembers Haase and Pielstick voted no. Motion adopted.
#2003-251 - Approving IBEW Contract. Brenda Sutherland, Human Resources Director
reported that the City and the IBEW Union (International Brotherhood of Electrical Workers)
had been involved in contract negotiations to replace the current contract which would expire on
September 30, 2003.
Employees represented by the IBEW were found in the Utilities department, the Finance
department, and the Information Technology department. A red-lined copy of the current
contracts with the proposed changes were available in the Human Resources Department.
The proposed contract would run for five years with wage changes as follows: Year 1 - survey
plus 2% COLA, Year 2 - 2.5% COLA, Year 3 - 3% COLA, Year 4 - survey and Year 5 - 3%
COLA. The salary changes in the first year ranged between 2.5% and 5% per the survey with an
additional 2% COLA.
Motion was made by Pielstick, second by Hornady, to approve Resolution #2003-251. Upon roll
call vote, all voted aye. Motion adopted.
#2003-252 - Approving Bid Award for Sludge Handling Improvements Proiect at the
Wastewater Treatment Plant (Proiect 2003-WWTP-l) with John T. Jones Construction of Fargo,
North Dakota in an Amount of $8,462,000.00. Steve Riehle, Public Works Director reported that
the Wastewater Division of the Public Works Department advertised for bids for this project on
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Page 7, City Council Regular Meeting, August 26, 2003
July 1, 2003 and opened bids on August 7, 2003. The Public Works Department, Wastewater
Division, and the Purchasing Division of the City Attorney's Office had reviewed all bids
received.
Four bids were received with base bids ranging from $8,041,000 to $9,950,000. The engineer's
opinion of costs for the base bid was $7,800,000. The additive alternate bids ranged from
$421,000 to $533,000. The engineer's opinion of costs for the alternate was $371,000. The
estimate was considered within the range of accuracy for an estimate of costs for this type of
proj ect.
Consulting Engineering Firm CH2MHill had reviewed the bids to see where differences exist
between the estimate and the bid. The major difference lies in the structural and architectural
bids. The estimate was developed on the basis of a cost per square foot whereas the contractor's
bid was based on detailed quantity take-offs. The contractor's bid for the structural and
architectural was higher then the estimate because of the heavy mechanical equipment needing
support in the second floor of the facility.
Staff recommended that the bid be awarded to John T Jones Construction of Fargo, North Dakota
with a base bid of $8,041,000 plus $421,000 for the additive alternate bid for a total bid of
$8,462,000 as the lowest responsible bid. Reference checks with the Engineer and staff with the
City of Omaha's Wastewater Division were very favorable.
Staff recommended against rejecting all bids and re-advertising because all of the bidders had
shown their numbers and the bids the second time around would almost always be higher unless
the project could be scaled back. Mr. Riehle stated we could not scale back the operations
portions of this project and keep pace with increasing wastewater flows. They also do not want
to eliminate the odor control measures that are part of this project.
Discussion was had concerning the time frame and odor control issues. Mr. Riehle stated he
thought this would be completed some time next fall.
Motion was made by Meyer, second by Whitesides, to approve Resolution #2003-252. Upon roll
call vote, all voted aye. Motion adopted.
PAYMENT OF CLAIMS:
Motion by Seifert, second by Walker, carried unanimously to approve the Claims for the period
of August 13, 2003 through August 26, 2003, for a total amount of $3,529,762.79. Motion
adopted.
SPECIAL ITEMS:
Councilmember Larry Seifert commented on his 13 years of service. He thanked his family,
current and previous council members, and city staff. Mayor Jay Vavricek presented
Councilmember Seifert with a plaque and certificate.
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Page 8, City Council Regular Meeting, August 26, 2003
Mayor's Appointment of ward I Councilmember. Mayor Jay Vavricek recommended to the City
Council his appointment of Carole Cornelius for the position vacated on August 26, 2003 by
Larry Seifert for City Councilmember Ward 1.
Council Approval of Ward 1 Councilmember. Motion was made by Seifert, second by Walker,
to approve the appointment of Carole Cornelius to the position of Councilmember of Ward 1.
Upon roll call vote, all voted aye. Motion adopted.
Administration of Oath to Carole Cornelius for Ward 1 Councilmember. RaNae Edwards, City
Clerk administered the Oath of Office to Carole Cornelius for Councilmember Ward 1.
ADJOURNMENT: The meeting was adjourned at 8:45 p.m.
Respectfully submitted,
Q~CCQ~
RaN ae Edwards
City Clerk