06/21/2005 Minutes
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OFFICIAL PROCEEDINGS
CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
June 21, 2005
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
June 21, 2005. Notice of the meeting was given in the Grand Is/and Independent on June 15,
2005.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following members were
present: Councilmember's Meyer, Whitesides, Pielstick, Gilbert, Nickerson, Cornelius, Pauly,
Hornady, and Walker. Councilmember Haase was absent. The following City Officials were
present: City Administrator Gary Greer, City Clerk RaNae Edwards, Finance Director David
Springer, and City Attorney Doug Walker
Mayor Communication: Mayor Vavricek commented on the following:
. Informal Meet and Great Event on Friday, June 23, 2005 at 11:15 a.m. to meet Lela
Lowry and Andrew Hills - candidates for the Emergency Management Director
. Introduced Wendy Meyer-Jerke, Public Information Officer
Presentation of Water Department Financial Status Report. Gary Mader, Utilities Department
Director reported that the Water Department was an equipment and facilities intensive enterprise
where a large percentage of revenue must be used for Capital Projects to meet growth and
Operations and Maintenance costs of existing infrastructure. The philosophy of the department
had been limit long term debt and "pay as you go" for operations, maintenance, and normal and
routine system expansions. The last major increase was in 1994.
The following financial requirements were presented and discussed over the last five years:
Capital Proiects
. Overall System Improvements
. Water Department Projects
. System Extensions for new subdivisions
Operation and Maintenance Costs
. Production Expenses
. Operating Expenses
Also presented were several immediate future projects such as expansion of the Well Field,
replace motor on Burdick Pump Station Pump 1, extensions of major trunk lines, addition of a
second water storage reservoir in west Grand Island, replacement of old electric switchgear at
Well Field pumping station, construction of Water Mains, replacement of older fire hydrants,
continued upgrade of older Well Field wells piping and closures, and regulation and control of
the Platte River.
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Page 2, City Council Study Session, June 21, 2005
Mr. Mader recommended adding $0.10 per 100 cubic feet which would increase revenue by
$500,000 per year covering the immediate shortfall. Presented were water rate comparisons with
North Platte, Hastings, Kearney, Lincoln, and Omaha.
Discussion was held with regards to different rate structures. The following water rates were
proposed:
Residential: 1.500 cubic ft. (11.220 gallons)
. GI Present: $11.77
. GI Proposed: $13.27
Commercial: 50,000 cubic ft. (374,000 gallons)
. GI Present: $208.06
. GI Proposed: $258.06
Commercial/Industrial:
. GI Present:
. GI Proposed:
1.500,000 cubic ft. (11.220,000 gallons)
$4,306.06
$5,806.06
Large Industrial:
. GI Present:
. GI Proposed:
6,000,000 cubic ft. (44,880,000 gallons)
$16,726.06
$22,726.06
The Council requested more information be brought back to them on different rate structures
before they make a decision. City Administrator Gary Greer commented on the importance of
increasing the rates this fiscal year because of the short-fall in revenues instead of through the
budget process which would start in October.
ADJOURNMENT: The meeting was adjourned at 8:20 p.m.
RcS\~ W~
RaNae Edwards
City Clerk