City Council Study Session – Honeywell Facility Audit Presentation – September 30, 2025
City Council Study Session – Honeywell Facility Audit Presentation
This was a study session of the Grand Island City Council held on September 30, 2025, beginning at 6:00 PM. The sole agenda item was a presentation by Honeywell International detailing the results of an investment-grade audit of four city facilities: City Hall, the Heartland Events Center, the Law Enforcement Center, and the Library. The presentation covered recommended energy efficiency and capital improvement projects, associated costs, savings, and three financing scenarios. An extended discussion focused on the potential revival of the ice rink at the Heartland Events Center, including a potential grant and revenue from a hockey team. No formal votes were taken.
Consent Calendar
- None. The meeting was a study session with no consent agenda.
Public Comments & Testimony
- No members of the public spoke. The sign-up sheet for public input was available but no one came forward.
Discussion Items
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Honeywell Presentation (Jordan, Account Executive; Don, Technical Expert):
- Presented results of an investment-grade audit of City Hall, Heartland Events Center, Law Enforcement Center, and Library. The Library was eliminated from the original six facilities due to low energy use.
- Provided a baseline utility analysis from 2024, showing each facility's energy use intensity (EUI) compared to national averages. The Heartland Events Center had an EUI nearly 200% above the national average for indoor arenas, indicating significant room for improvement.
- Listed 12 recommended projects, totaling approximately $12.5 million. Key projects included:
- Lighting upgrades at the Heartland Events Center (concourse, offices, etc.) – $700,000, 26-year payback.
- Boiler replacements at the Heartland Events Center – only 2 of 5 boilers operational; replacing 3 non-operational units with high-efficiency units to restore redundancy. Councilmember Nickerson noted urgency; Honeywell said new boilers would not be ready for winter 2025-2026 without standalone procurement. Councilmember Hode expressed that the two existing boilers (5 years old) could last another 10 years, reducing urgency.
- City Hall humidifier replacements (no ROI, only occupant comfort).
- Air handler unit refurbishments at City Hall.
- Rooftop unit replacements at the Law Enforcement Center – unit #1 (50-ton, serving 24/7 operations) is critical; load calculations require a 60-ton unit.
- Building controls upgrades across all four facilities – full rip-and-replace at the Heartland Events Center, minor reprogramming at Library and Law Enforcement Center.
- Building envelope improvements (weather stripping, seals) at Heartland, City Hall, and Law Enforcement Center.
- Mechanical insulation at Heartland and City Hall.
- Window film (3M Prestige 40 exterior solar film) at City Hall front entryway to reduce solar heat gain and glare.
- Roof repairs at Heartland Events Center – comprehensive recoding (not rip-and-replace) to extend roof life 20 years, 15-year warranty.
- Invasive building envelope scope at Law Enforcement Center – addressing 17-year water infiltration problem by repairing flashing and lower roof.
- Arena lighting replacement at Heartland Events Center – LED fixtures with full color spectrum, 10-year warranty, improved foot-candles from 41 to 100, uniformity ratio from 6.5:1 to <2:1.
- Sound system upgrade at Heartland Events Center – full replacement with Danley Labs equipment, improving clarity for spoken word and local events (not typically used by touring concerts).
- Water conservation fixtures (low-flow, hands-free) at Heartland.
- New vestibule at Heartland Events Center (replacing damage from car crash) – energy savings offset by added square footage.
- Ice rink revival – $2 million project to replace the chiller (original ammonia system) with a new 513A refrigerant system. The ice rink floor is in good condition. No energy savings; community benefit. Potential grant from Community and Civic Center Financing Funds (CCCF) up to $1.125 million, requiring 50% city match. The FPHL (Federal Prospects Hockey League) has expressed 100% commitment to bring an expansion team to Grand Island if ice is installed, with 28 home games per season, rental revenue estimated at $150,000–$250,000 annually. Additional revenue from public skate, Disney on Ice, etc. Councilmembers expressed interest but also caution about the $2 million cost and need for a solid business plan.
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Three Scenarios Presented:
- All-in scenario: $12.5 million, includes all projects.
- Priority projects scenario: $10.6 million, excludes humidifier replacements, mechanical insulation, vestibule, and two of the three rooftop units at Law Enforcement Center.
- Priority projects without ice rink: $8.6 million.
- All scenarios assumed 20-year financing at 4.25% interest, no down payment, 16-month construction period. Annual net cash flow negative (shortfall of $588,000–$700,000 per year) even with $4.5–$5 million in total savings (energy, O&M, capital cost avoidance). The analysis did not include potential ice rink revenue or grant.
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Discussion on Financing and Timeline:
- City Administrator Patrick Brown noted the city has a lodging occupation tax (2% currently, expiring in December) that could be renewed and increased to fund projects. Councilmember Sherard asked for a clear picture of financing options.
- Next steps: Honeywell requested a decision on a project scenario by the October 14 City Council meeting to proceed with contract development and financing. However, councilmembers indicated more time was needed, noting the requirement for a third-party independent audit of the savings guarantees (required by Nebraska law) which could take at least a month. City Attorney Carrie Fisk confirmed the procurement of an independent auditor would take time.
- Councilmember Nickerson suggested a special meeting within two weeks, but City Administrator Brown said two weeks was too aggressive given other priorities (e.g., Good Life District application). The council agreed to continue discussions at future meetings.
Key Outcomes
- No formal decisions or votes were taken. The council received the Honeywell presentation and will review the detailed report.
- The council will hold further discussions to determine which projects to prioritize and how to finance them. A special meeting or study session may be scheduled in October or November.
- The next steps identified by Honeywell include: council selection of a project scenario, development of an Energy Savings Performance Contract (ESPC), financing development with the city's municipal advisor, and third-party independent audit of savings guarantees. Target vote on the ESPC contract by November 18, 2025, if possible.
- Councilmembers expressed interest in the ice rink revival, contingent on the grant and a clearer revenue projection. Councilmember Sherard requested more data on potential draw from the community.
- Councilmember Hodge suggested the city consider hiring a centralized facility manager to better manage ongoing maintenance and capital planning, rather than relying on a decentralized approach that leads to large, one-time expenditures.
Meeting Transcript
Thank you. So I can just go off on the center floor. Welcome to our meeting. The date is September 30, 2025. The time is 6 p.m. This is an open meeting of the Grand Island City Council. The city of Grand Island abides by the Open Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state law. I ask that you stand and join us in the Pledge of Allegiance. And to the Republic for which it stands. The clerk will now perform roll call. Council President Sheridan. Present. Councilmember Stelk. Present. Councilmember Conley. Present. Councilmember Nickerson. Present. Councilmember Brown. Present. Council Member Hodse. Present. Council Member Mendoza. Present. Councilmember O'Neill. Present. Councilmember Pollack. Present. Councilmember Lanfair will be absent. And Mayor Steele. Present. Also present are Jill Grenier, the City Clerk, Patrick Brown, the City Administrator, Carrie Fisk, the city attorney, and Keith Kurtz, the public works director. A sign-up sheet was available in the lobby for individuals wishing to provide input on any of tonight's agenda items. If you did not sign up to speak on an agenda item, please come forward, state your name, and the agenda topic on which you will be speaking. The first item on our agenda is 5A Honeywell presentation. Mr. Brown. Thank you, Mayor. Good evening, Council. Tonight we have a presentation from Honeywell International. They have in the last several months looked at some facilities here at the city, namely City Hall Library, Law Enforcement Center, and in particular Heartland Event Center. So tonight's presentation is overview on what they found, some costs associated with that. And with that, Jordan is doing the presentation. As you may know, I'm Jordan, your uh local account executive here for Honeywell. So uh very happy to be here, very happy to be uh finally sharing uh the conclusion of our investment grade audit with you all. Uh this has been a process that's been several months in the making. Uh a lot of stakeholders involved from Honeywell, from uh our third-party partners as well, a lot of input from the city, so we're we're very excited to be sharing all this with you tonight. As you may recall, um, we were initially asked to investigate six different facilities as part of our preliminary assessment. Uh two of those were eliminated from the investment grade audit just due to lower energy use, uh less need.
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