Grand Island City Council Regular Meeting - September 10, 2024

The Grand Island City Council held its regular meeting on September 10, 2024 at 7:00 PM at Council Chambers. The meeting included a presentation from ALLO Communications, two Board of Equalization hearings, approval of a consent agenda (with one item pulled for discussion), multiple public hearings on utility easements and a right-of-way acquisition, resolutions on budgets and tax requests, and several ordinances including the annual budget and salary ordinance. Key decisions maintained the property tax ask at the same level for the sixth consecutive year, approved a $36.6 million fiber investment by ALLO, and adopted a 1% increase to the restricted revenues lid limit to hedge against potential state legislative changes.

Presentations and Proclamations

• ALLO Communications (Dave Miller, General Manager) presented the completion of their fiber optic network construction in Grand Island. Key statistics: $36.6 million capital investment, 740 miles of fiber (58% aerial, 42% buried), 39 local employees, and a “Smart Town” initiative providing community Wi-Fi. ALLO presented a certificate naming Grand Island a “100% Fiber Connected Community.”

Board of Equalization

• #2024-BE-2 – Railside Business Improvement District: Approved a total special assessment of $151,478.18 (6% increase). Eligible owner-occupied reductions totaled $839.55, reducing the request to $150,638.63. (Motion by Gazinski, second by Hawsey; unanimously approved via voice vote.)
• #2024-BE-3 – 4th St Business Improvement District: Approved a total special assessment of $40,000 (0% increase). Eligible owner-occupied reductions totaled $211.81, reducing the request to $39,788.19. (Motion by Pollock, second by Gazinski; unanimously approved.)

Consent Calendar

• Approved items 8A through 8O, with the exception of 8H (APPA Mutual Aid Agreement) which was pulled for discussion. Items included minutes, claims ($4,179,827.83), equipment replacement, bid awards, change orders, and certificates of final completion for various projects. (Motion by Stelk, second by Sheard; approved.)

Discussion Item: APPA Mutual Aid Agreement (Item 8H)

• Ryan Schmitz (Utility Director) presented the agreement through the American Public Power Association allowing Grand Island to assist with hurricane relief and other emergencies. He noted that a crew of six is currently staged to assist with Storm Francine in Louisiana, and that the city had previously sent crews to help Lincoln and Omaha after windstorms in August 2024. Council members commended the utility department’s mutual aid efforts. (Motion by Sheard, second by Nickerson; approved.)

Public Hearings

• 9A – Utility Easement at 3135 W. Schimmer Dr (Precision AG Industries): For a 20-foot easement to serve a 500 KVA transformer. (Resolution #2024-212; motion by Gazinski, second by Hawsey; approved.)
• 9B – Utility Easement at 3550 Prairieview St (Chief Industries): Two easements for loop-fed power to Chief’s new headquarters. (Resolution #2024-213; motion by Hawsey, second by Sheard; approved.)
• 9C – Utility Easement at 608 Ravenwood Dr (Scott and Terri Bilslend): Eight-foot easement for loop feeding. (Resolution #2024-214; motion by Pollock, second by Fitzke; approved.)
• 9D – Utility Easement at 777 E. Fonner Park Rd (Hall County Livestock Improvement Association): 20-foot easement to serve three transformers (22500 KVA and 1500 KVA) for the new casino. (Resolution #2024-215; motion by Lanfear, second by Stelk; approved.)
• 9E – Public Right-of-Way for Claude Road (McCloud Super 8 Motel, Inc.): Acquisition of a small right-of-way to reconfigure Deers Avenue and improve traffic flow, including eliminating a stop sign on Deers Avenue and realigning driveways. (Resolution #2024-216; motion by Sheard, second by Pollock; approved with discussion.)

Resolutions

• 10A – South Locust BID Budget: Approved FY2024-2025 budget with $104,617 in revenue (0% increase, $10.60 per front foot). (Resolution #2024-217; motion by Sheard, second by Lanfear; approved.)
• 10B – Property Tax Request (General and CRA): Approved same property tax ask as FY2023-2024: $12,207,540 for City General (mill levy reduced to 0.261049) and $798,990 for CRA (mill levy reduced to 0.017086). Combined total $13,650. Former Mayor Vavricek spoke in support of maintaining the tax ask but questioned reductions in CRA tax asking, advocating for more redevelopment funding. Councilmember Nickerson noted the demand for CRA facade grants. (Resolution #2024-218; motion by Fitzke, second by Conley; approved.)
• 10C – Parking District #2 (Ramp) Tax Request: Approved same tax ask of $9,090. (Resolution #2024-219; motion by Hawsey, second by Gazinski; approved.)
• 10D – 1% Increase to Restricted Revenues Lid Limit: Approved a 1% increase to the restricted revenues lid limit, adding approximately $436,000 in spending authority. Administration argued it was a hedge against possible state legislation (e.g., increased administrative fee on sales tax, zero growth lid). After significant discussion, Councilmember Hawsey voted no, stating he preferred property tax relief; Councilmember Kaczynski initially expressed confusion but later supported the measure, noting expert advice. The motion passed (7-2 or otherwise; voice vote indicated adoption). (Resolution #2024-220; motion by Lanfear, second by Nickerson; approved.)
• 10E – Emergency Procurement of Generator Repair (PGS): Authorized emergency repair of a hydrogen leak at the Platte Generation Station. A contractor from Georgia/New York will perform the work during a two-week outage. (Resolution #2024-221; motion by Gazinski, second by Sheard; approved.)

Ordinances

• 11A – Water Chapter 35 Revisions (#9977): Amended language to clean up terms (e.g., “monthly fee” to “service fee”) and improve clarity after the rate increase. (Motion to suspend rules by Lanfear, second by Stelk; then motion to approve by Sheard, second by Gazinski; adopted.)
• 11B – Electric Chapter 15 Revisions (#9978): Language cleanup, clarification of city dividend fee and power factor, and added protections for the interruptible rate tariff. (Motion to suspend by Fitzke, second by Lanfear; motion to approve by Stelk, second by Fitzke; adopted.)
• 11C – Salary Ordinance (#9983): Annual salary ordinance setting wages for FY2024-2025, including union and non-union rates, adding a mechanical inspector classification, and removing obsolete positions. Excludes utilities and service/clerical which will come later. Former Mayor Vavricek spoke, noting that compensation for elected officials is not in this ordinance but suggested future review of mayoral compensation. (Motion to suspend by Gazinski, second by Lanfear; motion to approve by Sheard, second by Fitzke; adopted.)
• 11D – Vacation of Easement (#9984): Vacated a portion of an easement in Springdale subdivisions affecting 10 properties on Westgate Road. After research, no utility needs were found. Resident Kathy Day spoke in support, citing fence line concerns. (Motion to suspend by Gazinski, second by Pollock; motion to approve by Sheard, second by Fitzke; adopted.)
• 11E – Annual Budget and Appropriations Bill (#9985): Approved the FY2024-2025 single city budget with estimated disbursements of $40.3 million (14.3% increase) and revenues of $21.3 million (8.1% increase). Capital requests total $84.6 million, including fire and police facilities, parks, streets, electric utility, and public works. Property tax ask remains level for sixth year. Former Mayor Vavricek praised the budget and noted historic capital improvements. Councilmember Nickerson commended the budget process and the decision to use cash rather than bonds. (Motion to suspend by Lanfear, second by Stelk; motion to approve by Gazinski, second by Fitzke; adopted.)
• 11F – Railside BID Assessments (#9986): Approved assessments as determined by the Board of Equalization. (Motion to suspend by Lanfear, second by Pollock; motion to approve by Gazinski, second by Lanfear; adopted.)
• 11G – 4th St BID Assessments (#9987): Approved assessments for the 4th Street BID. (Motion to suspend by Sheard, second by Lanfear; motion to approve by Pollock, second by Fitzke; adopted.)

Key Outcomes

• ALLO Communications completed its fiber network with a $36.6 million investment.
• Property tax ask held flat for the sixth consecutive year; mill levy reduced.
• 1% lid limit increase approved (Resolution 2024-220) to preserve future revenue authority.
• Emergency generator repair authorized for Platte Generation Station.
• FY2024-2025 budget adopted with $84.6 million in capital projects.
• All other resolutions and ordinances passed unanimously or with minimal opposition (lid limit had notable dissent from Councilmember Hawsey).
• The meeting adjourned at approximately 9:30 PM (approximate; no exact time recorded).

The council recognized the completion of Custer Avenue street improvements and thanked staff and contractors.