HomeMy WebLinkAbout1994-12-06 Agenda
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IOWA CITY CITY COUNCIL
AGENDA
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. .REGULAR COUNCIL MEETING OF DECEMBER 6, 1994
7:30 P.M.
COUNCIL CHAMBERS, CIVIC CENTER
410 EAST WASHINGTON
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AGENDA ~
IOWA CITY CITY COUNCIL /()~
REGULAR COUNCIL MEETING. DECEMBER 6,1994 W
7:30 P.M.
COUNCIL CHAMBERS
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ITEM NO.1. CALL TO ORDER.
ROLL CALL.
ITEM NO.2. SPECIAL PRESENTATIONS.
a. Presentation by Peg Fraser, Executive Race Director, of the Annuallo~..Ai1....J
City Road Races, Inc., Award to the City of Iowa City. "I f"'"'r'-'
ITEM NO.3. MAYOR'S PROCLAMATION.
ITEM NO.4.
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a. "Pass the Buck. Shop Local Month" 0
b, C""serv<L\-'..~ fllr",..r AppreC:.aio", LV...~ I IV~ r~
CONSIDER ADOPTION OF THE CONSENT CALEN'DAR AS PRESENTED OR
AMENDED.
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a. Approval of Official Council actions of the special Council meeting of
November 21, 1994, and of the regular meeting of November 22, 1994,
as published, subject to corrections, as recommended by the City Clerk.
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b. Minutes of Boards and Commissions.
(1) Design Review Committee meeting of October 17, 1994.
(21 Design Review Committee meeting of November 28, 1994.
..... (3) Broadband Telecommunications Commission meeting of October
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~~\ 24, 1994.
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\ (41 Charter Review Commission meeting of November 16, 1994.
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;,'~ (5) Planning and Zoning Commission meeting of November 17, 1994.
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! (6) Board of Adjustment meeting of November 9, 1994.
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(7) Mayor's Youth Employment Board meeting of September 13, 1994.
(8) Mayor's Youth Employment Board meeting of October 11, 1994.
c. Permit Motions and Resolutions as Recommended by the City Clerk. '
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(1) Consider a motion approving a Class "C" Liquor License for Yen
Ching Restaurant, Inc., dba Yen Ching Restaurant, 1803 Boyrum
St. (Renewal)
(2) Consider a motion approving a Class "C" Liquor License for Carlos
O'Kelley's of Iowa City, Inc., dba Carlos O'Kelley's Mexican Cafe,
1411 S. Waterfront. (Renewal)
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 2
(3) Consider a motion approving a Class "S" Seer Permit for Pizza Hut
of America, Inc" dba Pizza Hut #402005, 1921 Keokuk St.
IRenewal)
(41 Consider motion approving a Special Class "C" Liquor License for
Magnifico Inc" dba India Cafe II, 227 E, Washington Street. (Newl
94-~ 3'+"
(51 Consider a resolution to issue Cigarette Permit to Fareway Stores,
2530 Westwinds Drive,
d. Setting Public Hearings.
~4 / 34-~
(11 CONSIDER A RESOLUTION SETTING PUBLIC HEARING FOR
DECEMBER 20, 1994, ON PLANS, SPECIFICATIONS, FORM OF
CONTRACT AND ESTIMATE OF COST FOR CONSTRUCTION OF
THE IOWA RIVER FLOOD REPAIRS PROJECT,
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Comment: This project involves the installation of rip rap and the
planting of trees on eroded Iowa River banks located adjacent to
Crandic Park, City Park, Terrill Mill Park, Rocky Shore Drive and
North Dubuque Street; repairs to the emergency spillway of the
Iowa River Power Dam; sediment removal from drainage structures
and grading of drainageways. The estimated cost of construction
is $500,000, This project will be funded in part by the Soil
Conservation Service 1$427,0001 and the Federal Emergency
Management Agency 1 $47,0001, The City's portion of the cost
will be funded with General Funds,
Q
e, Resolutions
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(1) CONSIDER RESOLUTION ACCEPTING THE WORK FOR THE
SANITARY SEWER. STORM SEWER, WATER MAIN AND PAVING
PUBLIC IMPROVEMENTS FOR WillOW CREEK SUBDIVISION.
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Comment: See Engineer's Report.
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121 CONSIDER RESOLUTION ACCEPTING THE WORK FOR THE
SANITARY SEWER, STORM SEWER, TilE LINE, WATER MAIN,
AND PAVING PUBLIC IMPROVEMENTS FOR SOUTH POINTE
ADDITION. PART 5.
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Comment: See Engineer's Report.
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 3
--11 ~ .352
. (3) CONSIDER RESOLUTION ACCEPTING WORK FOR THE HIGHWAY
1/MORMON TREK INTERSECTION IMPROVEMENT PROJECT,
Comment: See Engineer's Report.
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(4) CONSIDER RESOLUTION ACCEPTING THE WORK FOR THE
SANITARY SEWER IMPROVEMENTS FOR 753 W. BENTON
STREET.
Comment: See Engineer's Report.
CONSIDER RESOLUTION AUTHORIZING THE MAYOR TO SIGN
AND THE CITY CLERK TO ATTEST TWO 121 SANITARY SEWER
EASEMENT AGREEMENTS RELATIVE TO THE SANITARY SEWER
CONSTRUCTED FOR 753 W. BENTON STREET.
Comment: Pursuant to Section 14-5H-2 of the City Code of the
City of Iowa City, Iowa, Tom Lepic submitted a site plan for the
construction of a 12-unit apartment building addressed 753 W.
Benton Street. City staff approved the site plan subject to Lepic I " ,',
and the adjacent property owner entering into sanitary sewer
easement agreements with the City of Iowa City. The Resolution
authorizes the execution of the necessary easement agreements.
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Correspondence.
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(1) Letterfrom Jim Loukota of Kirkwood Community College regarding
the proposed commercial urban revitalization plan.
(2) Letter from Betty McKray regarding various subjects,
(3) Memoranda from the Traffic Engineer regarding:
(a) Stop sign installation on Village Road at its intersection with
Chamberlain Drive,
(b) Left turn control for Menard's access at Iowa Highway 1.
(c) Parking prohibition on both sides of Ruppert Road from its
intersection with Highway$South to the end of the public
right-of-way. '
(d) Traffic signal installation at the intersection of Melrose
Avenue/West High School Drive,
(e) Bus stop location on North Dubuque Street at the Mayflow-
er Apartments.
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City of Iowa City
MEMORANDUM
To: Mayor, City Council and General Public
From: City Clerk
Date: December 6, 1994
Re: Addition to the Consent Calendar
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Item #4f(41 Letter from Carol Thompson, Chairperson, Free Medical Clinic, regarding the
Clinic's request for funds from the City of Iowa City.
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 4
g. Applications for City Plaza Use Permits.
111 Application from the Old Capitol Merchants for the use of City
Plaza for the arrival of Santa and a parade to the Old Capitol Mall
on November 20, 1994, (approvedl
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END OF CONSENT CALENDAR ~ A '
PUBLIC DISCUSSION (ITEMS NOT ON THE AGENDA). f' '
ITEM NO. 5-
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a, Consider setting a public hearing for December 20, 1994, to vacate a
portion of Waterfront Drive located south of Highway 6 and west of the
CRANDIC Railroad right-of-way. (V AC94-00071
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ITEM NO.6 - PLANNING AND ZONING MATTERS,
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Comment: At its November 17, 1994, meeting, the Planning and Zoning
Commission, by a vote of 6-0, recommended approval of VAC94-0007,
a City-initiated proposal to vacate a portion of Waterfront Drive located
south of Highway 6 and west of the CRANDIC Railroad right-of-way,
subject to retention of utility easements over the entire vacated right-of-
way, and the said vacation taking affect at such time as Stevens Drive
and Waterfront Drive are reconstructed, The Commission's recommen-
dation is consistent with the staff recommendation,
Action: Jl!! / ~
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Consent Calendar page 1
ITEM NO. 4 - CONSIDER ADOPTION OF THE CONSENT CALENDAR AS
PRESENTED OR AMElmED. (4d (l))
Horow/ Moved by Nov, seconded by Lehman. Discussion.
Kubby/ I have a question for Wayne since he is here about the grant
proposal for soil erosion control and I know that I have
talked to you and to some other people about not wanting all
of that money used just for rip rap but to come up with the
possibility of using some vegetative control. Is that going to
be at least looked into?
Wayne Peterson/ I don't know if I can answer definitively but I
know that concern has been passed along and discussed and I
know that the consulting engineers that the city has hired
have taken a look at it and I believe that it is being
discussed.
Kubby/ As long as it is an option.
Peterson/ I think it is still alive.
Kubby/ Okay, great.
Horow/ (Reads agenda) It has been moved and seconded. Any further
discussion. Roll call- (Yes). Okay, it passed.
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This represents only e reesonably accurate transcrIption of tho lowe City council mooting of Dacembar 6, 1994,
F120694
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#5 page 1
ITEM NO. 5 - PUBLIC DISCUSSION (ITEMS NOT ON THE AGENDA).
Horowl I would ask you to sign in, state your name and limit your
comments to five minutes.
John Rummelhart/ Good evening. I have got three questions. First of
all, all different items, I don't know if this can be-the
proposed ordinance can be voted on this evening or not. But
at the last council meeting I did give to Linda-
Horowl Do you want to explain what proposal you are talking about?
Rummelhartl This is the ordinance which reads as follows concerning
collection of the water fees and how it can be used. I am
trying to have you guys vote on it. Now I don't know exactly
what I need to do with this piece of parer. This is-
Horow/ I would rather you address this under p.h. on the proposed
rate increase under item #7.
Rummelhartl Okay. That is fine. Let me do that. One other thing I
would like to mention is just late this afternoon on file with
the City Clerk's Office I filed a referendum petition in which
we are trying to gather the 2500 signatures, Iowa city
resident signatures, to put the current rate-city water
treatment rate increase resolutions repealed as they now- as
it now stands and I just want to urge the citizens of Iowa
city to contact me concerning getting that signed.
KubbYI So, Linda, can something like that happen if we haven't-if
they are not law yet.
Woitol No. I think and John, correct me if I am wrong, The
affidavit I have is challenging the resolution authorizing us
to condemn property. Or are you talking about another one.
Rummelhartl Was this-
Woitol This has nothing to do with fees which is-
Rummelhartl Well, maybe I am stating that wrong. What you have got
in front of you is what-
Woitol This is a resolution authorizing condemnation that you are
trying to challenge.
Rummelhartl Okay, that is correct.
ThIs represents only a raasonably accurata transcription of the Iowa City council meatlng of December 6. 1994,
F120694
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#5 page 2
Kubby/ And that is what the signatures are for?
Rummelhart/ Correct.
Horow/ So is this possible to do this?
Woito/ Sure. A problem with the timeliness of it. Since the
resolution was passed in July and the Charter limits
referendum only to challenging ordinances which is broadly
defined to 60 days or else you have to wait more than two
years.
Rummelhart/ okay, can that be requested the term of 60 days to be
extended.
Woito/ The Charter would have to be amended and you can do that
either by petition, the council can change it. Well, those are
the only two ways to change it, By petition and election or
the council can change it.
Rummelhart/ I will talk to you tomorrow about that perhaps. Great.
And the last item that I am concerned about is on the- I don't
know if I need to talk about it or try to talk about it now
but it is item-It is in reference to item #22. Do people get
a chance to get back up if we get to this item 'tonight and
speak about it or not? On the impact fees.
Woito/ Sure.
Rummelhart/ okay. That is fine. If we get to it I will be back.
Woito/ He can do it now or later.
Horow/ Go ahead and do it now.
Rummelhart/ That would be fine, yeah. I do appreciate it. In
reference to-Well, I have got some property in this Near South
Side property or neighborhood and I just want to be sure that
I have got this correct that under the current language for
this Near South Side parking impact fee, that the maximum
amount of onsite parking allowed on any any site is 25%. Is
that the way that currently reads.
Woito/ For commercial?
Horow/ For commercial.
This represents only a reasonably accurate transcription of tha Iowa City council meatlng of December 6. 1994,
F120694
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#5 page 3
Rummelhart/ And what about residential?
Woito/ 50%.
Rummelhart/ Okay, depending on the mix.
Kubby/ But currently for commercial we don't allow parking.
NoV/ No.
Rummelhart/ My question-
Kubby/ Or that you don't have to.
Woito/ Previously there was not requirement for parking, Now there
is a requirement but it is no more than 25% on site.
Rummelhart/ It is a maximum of 25% allowed on site for commercial.
Just trying to be as straight forward as I can. If all of the
conditions and requirements on a specific piece of privately
held development ground in this Near South Side neighborhood
can be met as it is proposed, why should they have to pay an
impact fee. If everything-If the congestion problem, if all
the-this ordinance is long winded to say the least. It is-If
all the requirements in the ordinance can be satisfied by a
private individual why should they have to pay an impact fee.
Horow/ If they don't want the tax abatement.
Woito/ No, they are not tied.
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Nov/ If they are not tied.
Horow/ If they are not tied but you don't have to-
Nov/ It has nothing to do with tax abatement. It is because-
Kubby/ It is because parking will have to be provided in a publicly
owned piece of infrastructure that costs lots of money. That
the amount of impact fee is $2,000 per space. The amount that
it will cost the city to provide that space is at least five
times that amount of money.
Rummelhart/ Now is the $2,000 figure for residential.
Kubby/ It is $4,000 for residential.
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F120694
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#5 page 4
Rummelhart/ Okay. Does the city of Iowa city on their parking ramps
hold their own as far as debt financing? Do they make money on
those parking ramps?
NOV/ No.
Kubby/ The whole parking system in total has a positive balance.
Isn't that correct?
Atkinsl Yes.
Kubby/ But different ramps come in at different levels of paying
for themselves. So we look at this system as a whole.
Nov/ Which includes all of the parking meters?
Rummelhart/ How many blocks encompass the Near South Side?
Horow/ John, you are way over the five minutes. These questions are
ones that I wish we could talk with you about.
Rummelhart/ Well, they need to be talked about because it is
ridiculous.
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have already had the p.h. on this.
Rummelhart/ I know. I was never notified as a property owner on
this. I never got any mailing.
Horow/ I can't refute that but I find that difficult to believe.
Rummelhart/ Well, it is not the first time.
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Horow/ John, your questions are good ones. They need to be answered
but you are over your five minutes.
Rummelhart/ Can I request someone else's time?
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Baker/ I suggest that this is on the agenda for later. Let him wait
and we will talk about it on item #22.
Rummelhart/ If we get to it, thank you.
Horow/ All right. Anybody else that wishes to address council on
something that is not on the agenda.
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Bruce Glasgow/ Don't get your hopes up.
Horow/ You don't have your stamp?
Glasgow/ I will still be around for a long time. This hasn't slowed
me down. Yeah, I will be around for quite a few years, I hope.
I got a letter for the federal government the other day and
they said I had 17 more years to go and if you believe that
and you believe that you have to put up a water plant because
they say so why we are going to visit for many many more
years. Tonight I want to talk to you about Virginia Drive.
virginia Drive goes from Oak lawn street over to the Shimek
School. It is a 60 foot Iowa city city street. It was given to
us by the Hendershots, the Ball Addition, years and years ago
and Sam Whiting gave two pieces and now we have a 60 foot
street there but it is impassable. It has grown up like some
of our city parks. There are trees growing right in the middle
of it and dead trees and junk and everything else in that. So
what I did in April 29 of this year, I wrote to the city
manager and asked that virginia Drive be opened and made
passable for vehicular traffic and the reason for that is that
I own 3.89 acres back there and Virginia Drive is my street.
On June 29 I received a three line message from Planning
Department stating that they were tracking the documentation
concerning the city's obligation to improve this street. Well,
this is politically correct language to state that the city
has not found any way to refuse this request but they will
continue to look until they find one. I know that. It's now
December 7, 193 days, after I put that request in and I guess
the research continues. I purchased this land way back in
1969. So, I really can't say that I am in a hurry I guess.
Horow/ Is this the property where all of your trees are? You showed
me all of your trees.
Glasgow/ I don't know if we got up that far or not.
Horow/ No, they were the buckeyes.
Glasgow! No. This is at Oaklawn. Where we were I think was on
KimbalL There is no immediate need, I suppose, for this
street opening. However, other city events that are now
taking place puts a little priority, I think, on this
particular site. So, would you please keep the city staff
researching.
Horow/ You would like us to apply some pressure, right?
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Glasgow/ Put on the pressure. Turn on the screws, yes.
Horow/ Okay. Anyone else who would like to address council on any
issue that is not in the agenda.
Carolyn Dierterle/ I am here on a matter that is also on the agenda
but I would also like to say something about the fact that the
last item, not this current item, but the last time which I
think was about two years ago that we had a tragedy of
somebody dying in the river fromm going over the Iowa River
Power Plant dam. I happen to be in Wisconsin buying a canoe
and the company that sold me my canoe in Cadot, Wisconsin I
have found out when I went up there to pick it up was also in
the business of making devices to keep people from going over
dams. These things were bright orange plastic and they looked
like large pillows and they had a patented method of fastening
these things together so that the water could rise and fall
and debris could go down the river without disturbing this but
anybody who was in the water presumably would have a good
chance to grasp it because they had handles on them and they
were large enough that if a person could grab on to it they
could probably pull themselves on to it long enough so there
would be a reasonable time for the person to be rescued. And I, "',.,.
they Qad pictures of these devices installed on several rivers \J
in Wisconsin and I was impressed with this and I took a whole
folder of material about this and brought it home and gave it
to the Riverfront Commission. At least I gave it to the staff
in the city. I did not give it to somebody who was on the
Riverfront Commission which is what I probably should have
done but I was in a hurry. And they promised that they would
bring this to the attention of whomever. I never heard
anything more about it. I assumed that that had been done and
that for whatever reason people had decided not to do anything
about it. When we recently had the current tragedy I went to
the Riverfront Commission offices and asked if that had ever
been presented because I had read in the paper that you had
been considering actually doing something about it. And the
method from the Cadot Company was supposedly a relatively low
cost solution. The people at the Riverfront commission said
they remembered me coming in and that they did not know where
my material was and they would look for it. And I have not
heard anything more about that and I would simply urge you
that if you haven't made a decision about this to try to prod
staff into finding this and if you cannot, notify me because
I will give you the name of the company in Cadot.
Horow/ Thank you, Carol.
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F120694
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#5 page 7
Kubby / You know what would be great if you could e-mail Marian Karr
at Blue with the address and phone number and maybe she would
forward it to the Riverfront staff and Commission.
Dierterle/ The name and address of what.
Kubby/ Of the company so that we can write or call to get
information.
Dierterle/ Okay,
Horow/ Thanks, Carol. Anybody else wish to address council? okay.
Karr/ Madam Mayor, could we have a motion to accept correspondence?
Horow/ Moved by Pigott, seconded by Throg to accept correspondence.
Any discussion. All those in favor signify by saying aye
(ayes).
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 5
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b, Public hearing on an amendment to the Zoning Ordinance changing the
use regulations of RM-12 zoned properties located generally along
Fairchild and Davenport Streets between Dubuque Street and Dodge
Street, and in the 200 block along Bloomington Street from RM-12, Low
Density Multi-Family Residential to RNC.12, Neighborhood Conservation
Residential.
c.
Comment: At its November 3, 1994, meeting, the Planning and Zoning
Commission, by a vote of 4-0, recommended approval of rezoning an
area located generally along Fairchild and Davenport Streets between
Dubuque Street and Dodge Street, and in the 200 block along Blooming-
ton Street, excepting RM-44 zoned properties along Dubuque Street,
from RM-12 to RNC-12, The Commissio~'s re;,~:n~ation is
consistent with the staff recommendation, ~ ~
Action: _ ' , e~111.MItr7~
Consider an amendment to City Code Section 14-6E-7, to regulate ~
location of parking spaces in the Central Business Support Zone (CB-5),
(First consideration)
Comment: At its October 20, 1994, meeting, the Planning and Zoning
Commission, by a vote of 6-0, recommended amendments to the Zoning
Ordinance to prohibit access to parking areas from the street in the CB-5
zone, and to require that at least 50 percent of the ground floor area be
used for commercial use. No comments were received from the public
at the November 22, 1994, public hearing on this item.
Action:
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Consider an ordinance amending the Zoning Ordinance to ch nge the use
regulations of a 5,52 acre property located east of Waterfront Drive and
the CRANDIC Railroad right-of-way from CI-1, Intensive Commercial, to
CC-2, Community Commercial. (REZ94-00 1 01 (Second considerationl
Comment: At its September 1, 1994, meeting, by a vote of 6-0, the
Planning and Zoning Commission recommended approval of rezoning a
5,52 acre property located east of Waterfront Drive and the CRANDIC
Railroad right-of-way from CI-1 to CC-2, subject to certain conditions,
The Commission's recommendation is consistent with the staff
recommendation contained in the staff report dated July 21, 1994, No
comments were received from the public at the November 22, 1994,
public hearing on the revised plan and Conditional Zoning Agreement for
this item, The applicant has requested expedited consideration of this
item,
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#6b page 1
ITEM NO. 6 b. Public hearing on an amendment to the zoning
Ordinance changing the use regulations of RH-12
zoned properties located generally along Fairchild
and Davenport streets between Dubuque street and
Dodge street, and in the 200 block along
Bloomington street from RH-12, Low Density Multi-
Family Residential to RNC-12, Neighborhood
Conservation Residential.
Horow/ P.h. is open.
Al Sochek/ 801 Brown street. And I am one of the founding members
of the North Side Neighborhood Association, formerly the vice
president and currently an active member and I respectively
request that you give favorable action to the zoning request
in the Fairchild/Davenport area from RM-12 to RNC-12. Thank
you very much.
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Horow/ Thank you.
Beth Gauger/ 414 North Van Buren Street in Iowa city which happens
to be in the middle of the area that is considering to be
rezoned and I just wanted to stop and address the council
personally to say that I am very much in favor of this
rezoning. I know a lot of my personal neighbors are, although
they haven't appeared tonight to speak for themselves. I see
the rezoning as a very positive thing. It allows the integrity
and the continuity of one of Iowa city's wonderful and
historic neighborhoods to remain intact as well as not
interfering or penalizing property owners in owning property
in whatever means they choose to use that property. I kind of
see it as a win win situation and I hope that it is a rezoning
issue that the city council will also see in that capacity and
I hope that you will support it. Thanks for listening.
Horow/ Thank you. Anyone else wish to address council about this?
Joni Kinsley/ I live at 423 Church Street. I have been here before
because I was the petitioner for the rezoning to RNC-12, the
same zone that is being considered here for Church Street last
spring and it was approved in July. I am mainly here just to
reiterate my love of this neighborhood and my wish and hope
that you all will continue to support the preservation of this
North Side area. The Church Street is now safely in the hands
of its property owners and I suspect I can say safe from
ravishment by future apartment buildings and developing in
mind with in keeping the integrity of the neighborhood as it
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#6b page 2
is and I think that this new extension of the same zone south
will simply further support that integrity of the neighborhood
and keep it as nice as it has always been, So, I hope you
support it. Thank you.
Horow/ okay. Anyone else wish to address council? Declare the p.h.
closed.
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Karr/ A motion to accept correspondence.
Horow/ Moved by pigott, seconded by Kubby to accept correspondence.
Any discussion. All those in favor signify by saying aye
(ayes) .
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#6c page 1
ITEM NO. 6 c. Consider an amendment to city Code section 14-6E-7,
to regulate the location of parking spaces in the
Central Business support Zone (CB-5). (First
consideration)
Horow! Moved by Nov, seconded by Baker. Discussion.
Kubby! somebody convince me. I would like to hear some discussion
about this because I am not sure how I feel about it.
Nov! Well, I will start a little bit anyway. I think that if we do
not have a higher requirement than 20%, I think 50% is a
reasonable number, we can possibly have an empty commercial
space just because it is not large enough to be usable. So, I
can understand this limit of parking versus commercial space
on ground level. Now people can certainly put in more parking
if they want to on the second floor or below ground. So this
limits just what is on the ground and I think it is
reasonable.
pigott! I agree.
Lehman! I really don't, I think it will hamper development and also
this access from the street. I have no problem with it in some
locations because of topography being able to access a parking
area in the rear of a building from the street instead of
having to access from the alley. And in particular I guess I
am thinking of the Hieronymous Property. She wants us to close
that alley. How is she going to get to her parking spaces
under her building. It will have to access from Burlington
Street.
Horow! Didn't see ask for closing just the north part of that
alley?
Pigott/ That is right.
Baker! She still wants to use that alley.
pigott! She wants to use it. I think she doesn't want to-
Nov! I think she wants to use the east-west alley.
Lehman! will that access her parking?
Nov! I don't know.
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Pigott/ I bet it will.
Horow/ That is what I understood. That she would have the access of
parking off of the alley.
Lehman/ I still think it inhibits development. It is just another
reason why you don't want to develop.
Pigott/ Why is that Ernie? Because it requires-
Lehman/ You know, we are talking about the area from Gilbert to
Clinton basically. There is a large difference in topography
in that area. Some places might be very appropriate for
underground parking. Some may not be. And the requirement of
50% just may not work and we are requiring 50% for commercial.
That means that is the only kind of development that can take
place.
Nov/ We really want commercial on the main floor.
Pigott/ That is what we want in that area is commercial.
Nov/ We don1t want this to be residential on the main floor. It
seems like a reasonable way to do it.
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development in that area.
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commercial, lots of dense commercial development, in between
Burlington and Court and then more dense residential oriented
redevelopment south of Court.
pigott/ That is correct.
Throg/ And Ernie, imagine what Washington Street might be like
between Clinton and Dubuque street if every other building had
a large driveway leading into the building. Then you wouldn't
have the kind of active streetscape and all of that that it
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condition is going to drive that of that. Not all the
driveways but as far as the commercial versus residential. And
I agree this isn't an area where we really want to see a lot
of residential development. I think it is an area where we
want to see some residential development. I think this will
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#6c page 3
hinder development.
Horowl It is a gamble.
pigottl I think the other side of the coin is I think then is waste
good space that could be used for commercial in that area on
what turns out to be parking and I would rather see that
intensive commercial development.
KUbbYI A viable economic activity on the streetscape.
pigottl That is right.
LehmanI I would like to see that too but I don't see that-I don't
see them out there waiting to build.
Novl That is true but this is kind of an interim zone. If you are
in CB-10 you are not required to put in any parking at all. If
you are in CB-2 you are required to put in parking. here you
are required to put in some parking but not as much as. It is
sort of an interim kind of development and I could see more
compromise on where the parking could go underground. Maybe
this particular property couldn't put parking underground so,
therefore, we have to let them put some of it on site on
ground level. But I think if they can put it underground and
if they can develop the entire property as commercial, that is
the way they should do it.
LehmanI I don't disagree with that.
Horowl Okay, any further discussion. Roll call- First consideration
passes, 6/1, Lehman voting no.
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F120694
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Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 6
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e, Consider an amendment to City Code Section 14-6E-2, Neighborhood
Commercial Zone (CN-1), to allow restaurants as provisional uses or by
special exception with specific restrictions, and car washes by special
exception with specific restrictions, (Second considerationl
Comment: At its October 6, 1994, meeting, the Planning and Zoning
Commission, by a vote of 4-0, recommended that in the CN-1 zone: 11
dwelling units continue to be permitted by special exception, 2)
restaurant uses of 2,500 square feet or less be permitted as provisional
uses, 31 restaurant uses of more than 2,500 square feet be permitted
only by special exception, 41 in no case would restaurant floor area
usage exceed 20 percent of the total commercial floor area within a
CN-1 ,zone, and 5) car washes be permitted by special exception,
provided the car wash is restricted to one bay and is an accessory use
to a filling station. The Commission's recommendation is consistent
with the staff recommendation contained in the staff memorandum
dated October 6, 1994. No comments were received at the November
8, 1994, public hearing on this item,
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f. Consider amendments to City Code Section 14-6B-2 and Section 14~6E-
8 to permit restaurant carry-out uses in the CB-10 zone; (Second
consideration)
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Comment: At its meeting on November 3, 1994, the Planning and
Zoning Commission, by a vote of 5-0, recommended approval of an
ordinance to amend City Code Sections 14-6B-2 and 14-6E-8 to permit
restaurant carryout uses in the CB-1 0 zone. This recommendation was
consistent with the proposed amendments presented in the staff
memorandum dated October 28, 1994. No comments were received at
the November 8, 1994, public hearing on this item. A developer of a
downtown restaurant has requested expedited consideration of this
item,
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 7
g. Consider a letter to the ,Johnson County Board of Supervisors recom-
mending approval, with conditions, of an application submitted by
William Frees to rezone 107 acres from A 1, Rural, to RS3, Suburban
Residential, for property located partially in Fringe Area 4 on the south
side of Dingleberry Road NE approximately .6 mile east of its intersection
with Highway 1. (CZ94491
Comment: At its November 17, 1994, meeting, the Planning and Zoning
Commission, by a vote of 6-0, recommended that the City Council
forward a comment to the Johnson County Board of Supervisors stating
that CZ9449, an application submitted to Johnson County by William
Frees to rezone 107 acres from A 1, Rural, to RS3, Suburban Residential,
is consistent with the standards specified in the mutually agreed upon
Fringe Area policy for Fringe Area 4, subject to the condition that no lots
within the rezoning area be allowed access to Fox Lane until Fox Lane
has been improved, or the Fox Lane intersection with Highway 1 is
closed and a safe alternative route to Highway 1 has been provided,
The Commission's recommendation is consistent with the staff
recommendation.
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h, Consider a letter to the Johnson County Board of Supervisors recom-
mending approval of an application submitted by Vincent and Betty
Dalton to rezone 1.5 acres of a 3,5 acre tract from County A 1, Rural, to
RS, Suburban Residential, for property located in Fringe Area 3 on the
north side of Newport Road approximately one-half mile east of its
intersection with Prairie du Chien Road. (CZ94541
Comment: At its November 17, 1994, meeting, the Planning and Zoning
Commission, by a vote of 6-0, recommended that the City Council
forward a comment to the Johnson County Board of Supervisors stating
that CZ9454, an application submitted to Johnson County by Vincent
and Betty Dalton to rezone 1.5 acres of the 3,5 acre tract is consistent
with the mutually agreed upon Fringe Area Policy for Fringe Area 3 and
should be approved, The Commission's recommendation is consistent
with the staff recommendation,
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ITEM NO. 6 g. consider a letter to the Johnson county Board of
Supervisors recommending approval, with conditions,
of an application submitted hy William Frees to
rezone 107 acres from Al, Rural, to RSa, Suburban
Residential, for property located partially in
Fringe Area << on the south side of Dingleberry Road
HE approximately .6 mile east of its intersection
with Highway 1. (CZ94<<9)
Horow/ Moved by Nov, seconded by Throg. Any discussion.
Kubby/ Will this end up coming back to us, the plat?
Pigott/ I bet it will.
Throg/ Karin is nodding her head yes.
Kubby/ You can nod, yes it will, My concern with this is this is a
pretty specific condition and with the rezonings we don It
really have any-I mean it is just a recommendation and they
can listen to it or not? Is there a way on the plat when it
comes back to us to enforce these conditions? You are shaking
your head yes. I want to make sure that we do that through the
platting process.
Horow/ okay. Okay, any further discussion. All those in favor
signify by saying aye (ayes). Great.
This represento only a reesonably accurate transcription of the Iowa City council maatlng of Decembar 6. 1994.
F120694
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 8
ITEM NO, 7 - PUBLIC HEARING ON THE PROPOSED RATE INCREASE FOR WATER AND
WASTEWATER FEES.
Comment: This public hearing is being continued from the City Council
meetin~of November 8 and 22, 1994 and is to receive public comment for
or against the proposed water and wastewater fee rate increase. Water fees
are proposed to increase by 40% and 75% for bills issued on or after March
1, 1995 and 1996, respectively. Wastewater fees are proposed to increase
by 35% and 40% for bills issued on or after March 1, 1995 and 1996,
respectively.
Water and wastewater rates were last increased in 1991. The proposed
increases are needed to comply with existing federal standards and in
planning to construct a new water treatment facility at a cost of $50 million
and make improvements to double the treatment capacity of the existing
south wastewater treatment plant at a cost of $16,4 million and construct
a sewer line to connect the two wastewater treatment plants at a cost of
$25.7 million.
The impact to the average residential user (750 cubic feet usage per month I@
_ includes water, wastewater, refuse/recycling and state sales tax on water
only) is to increase from $38 per month to $48 per month in the first year
and an increase to $ 70 per month in the second year. The minimum bill
currently is $23 per month and will increase to $27 per month and $39 per
month in the first and second years, respectively,
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ITEM NO.8. CONSIDER AN ORDINANCE AMENDING TITLE 3, CITY FINANCES TAXA- I//At4
TION AND FEES, CHAPTER 4, SCHEDULE OF FEES, RATES, CHARGES, <I
BONDS, FINES AND PENALTIES, SECTION 3-4.4 WASTEWATER TREAT-
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Comment: The proposed ordinance increases rates for wastewater by 35%
the first year and 40% the second year, effective for bills issued on or after
March 1/ 1995 and March 1, 1996 respectively, The rate increases as
proposed will be applied as a flat increase across-the-board to all existing rate
blocks and minimum charges. l/:l 41/ ~~
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#7 page 1
ITEM NO. 7 - PUBLIC BEARING ON THE PROPOSED RATE INCREASE FOR
WATER AND WASTEWATER FEES.
Horow/ Once again I will ask you to limit your comments to no more
than five minutes. There will be no yielding of time on this
one. I will be timing you. One minute before your time is up
I will let you know. Please state your name and sign in.
Declare the p.h. open.
Kubby / And when everyone is done speaking if you have further
things to say that haven't been said, you can come back up.
woito/ You might want to clarify that the two ordinances for water
and wastewater have been-have been separated into two
ordinances. One for water and one for wastewater.
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Throg/ But comments made during the p.h. apply to either.
Woito/ I don't think everyone realizes that.
Pigott/ Could I just ask one quick question too? I don It know
whether the public knows about all the different ideas that we
have talked about in the informal meeting and maybe, before
people talk, a sketchy outline of that sort of thing.
Horow/ Council? Mr. Atkins would you like to briefly outline.
Atkins/ Now. What do you want me to outline?
Horow/ In other words the break up and the sequence of the-
Nov/ Sequencing rather than doing it all at once.
Atkins/ At the informal session the council discussed an option
that was presented to them which had the affect of taking the
proposed rates that we have and the project and spreading them
over a period of about eight years. The effect that this would
have is rather than the short term dramatic increase in rates
that those rates would be spread over a period of time. The
project would then would also be constructed during that same
period of time. The initial proposal was that the wastewater
project would be constructed and completed sometime during
1998. Then the water project or what remains of the water
project would be constructed during 1998. The construction
project runs about 30 months of construction time. Then
allowing a year to shut down the older plant, the rate
structure would be in place that would satisfy the capital
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F120694
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financing need. This would also require the borrowing to occur
over a protracted period of time, raising the capital as
necessary of financing the project. That the rates, at least
the preliminary proposal we gave them, would be sufficient to
cover the capital financing. Does that do it?
Throg/ Could I clarify one point? The wastewater would be the same
the first two years for the most part. And the water, the rate
increase would be stretched over five years in terms of the
rate increase itself.
Atkins/ Yes, that 'is correct.
Dick Hupfield/ I am president of the Greater Iowa city Apartment
Association. My comments regard a position statement of our
apartment association on the proposed wastetwater and water
projects. (Reads statement). Thank you.
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Art Kistler/ Perry Court. There's a vast amount of misinformation
being spread by local citizens and news media. I've come here
tonight to offer my support for the proposed rate increase and
try to separate fact from fiction about the proposed
$91,000,000 cost for the new water treatment plant and
improvements to the wastewater treatment plant. Most of the
fopus has been on the wastewater treatment plant. Let me take
that back, the water treatment plant. And nobody's looking at
the wastewater plant. Now we've separated these two which I
feel is a good idea. Half this rate increase is wastewater.
Don't forget that. But before I get to the water treatment
plant I want to talk about the existing water treatment plant.
This is where I'm coming from. The existing water treatment
plant was built in 1882 originally and in 1961 was taken over
by the city. Prior to 1963 the city expanded the water plant,
added just about doubled the capacity of the plant. At that
time some new pumps and services installed. And it was
adequate for many years then in 1972 it was added on again,
and that's been the last addition to the water plant, over 20
years ago. Most of the equipment in the plant is over 20 years
old and in need of desperate need of replacement. Rarely a day
goes by without something in the plant needing repair or
replacement. Twenty years of growth since this addition's put
quite a strain on that existing plant and I don't think it's
going to handle any more years of growth. You know we're right
at maximum capacity of that plant. There was a gentleman last
time came up and made a comparison about the city wanting to
buy a Lexus and we should buy a Geo. Well we're driving a
Model T right now and the thing'S got a 1963 motor in it and
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F120694
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some parts from 1972 and it's constantly under repair. The
employees of the Iowa city water department are a hardworking
dedicated group and they struggle everyday to meet the present
federal standards and produce good safe drinking water. As an
outside contract employee I have personally been involved in
the upkeep of the plant and have witnessed a daily struggle to
operate it. 1993 was a trying year for the water plant.
Everybody remembers that, we almost lost our water plant that
year. All the water department employees that deserve a lot of
praise for efforts to keep the water flowing to our homes and
businesses. There's a lot of talk about the $50,000,000 cost
for the waste treatment or water treatment plant and a lot of
people don't understand exactly what that cost is. I've down
to the library. There's a copy of the engineering report now.
It's available for anybody to go down and look at it and read
it. It breaks down these costs. There's been comparisons to
Cedar Rapids water treatment plant thinking why can't we build
a plant for $22,000,000 or whatever. Well we're not just
building a water treatment plant. Our whole distribution
system is messed up. It needs improvement. Originally when
these- we used to have four satellite pumping stations. We
lost the northside pumping station a few years ago on Dodge
street. There's been- when they built these pumping sites they
were on the outskirts of town. Now there's a lot of
development on the outside of that and these people are
experiencing severe pressure problems, fluctuations in
pressure. This new plant, a lot of this cost, approximately
$7,000,000 something in there or more, is going into that
distribution system to upgrade some of these satellite pumping
stations. We also have a strain on fire protection because of
low pressure problems. There- when this new plant is being
built, the existing water treatment plant, the old part I
understand is going to be demolitioned and that present site
will be turned into strictly a pumping plant and reservoir
just, like the other satellite.
Horow/ Your time is up.
Kistler/ Okay. Thank you.
Throg/ You can come back up after everybody else is done. It would
be great,
Ed Barker/ I hope I can complete mine by the third round. We're
dealing with a situation where there's no right and wrong
answers. There's solutions to problems and each version, each
group of people have various solutions to these problems. I'd
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F120694
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page 4
like just to put a little into perspective to why I think
these p.h.'s and continuation of them were a good idea. For
example we heard tonight just before me a position supporting
the present position of the council and I think you should
hear that too. But to put the $90,000,000 a little bit in
perspective, the largest bond issue that the school has ever
issued is 7.9, they've never had more than $10,000,000
indebtedness and they have a much larger tax base than the
city does. Theirs- ours is request is about eleven times what
the school district was and sometimes over big deals in the
community, so we're talking about a major, major expense. So
I think it does need ample debate. And you as council members
want to accept and follow as much as you can the
recommendations of your administrative staff and that is as it
should be. I suspect you do that 99% of the time. And on the
other hand they want you to accept and respect their
recommendations as well. And I know that from experiences as
a principal dealing with school boards. We want them to accept
our decisions. But in sometimes there are other alternatives
that are reasonable and worth exploring. And I want to explore
some of those with you. And I want to tell you what I learned
the last several days. And I told Steve the other day I hoped
tomorrow I could forget half of what I know about water. I'm
told that our water quality has never been better. And I think
that reflects what the gentleman beiore me said is- what the
staff is able to do. I'd like to refer to the 19993 water
analysis and it has five pages of things you have to test for
and we are in- there are only three that even has a question.
When you look at those for example turbidity, there was only
two or three days when it was above the .5 allowed during 1993
and it has to be by standards 95% of the time above that and
it was. Some of these- there I s one of them that was just
slightly below and I won't even mention that, but the other
one falls in the same category, was quite a bit, we were quite
a bit ahead, higher than what is allowed according to these
numbers~ However when I checked with the water plant people,
I was told that the people who do the testing and they test
for a lot of municipalities, can only test for a certain level
which doesn't go down near what the state requires. Which
means that it seems to me at least a lay person, that there
are a lot of requirements that are getting to be more
stringent and more stringent as we go along. I would like to
say in conjunction with what the man said before me that every
time- several places where I talked was the DNR people in
various locations, had praise for both your water plant
director and your wastewater plant director as to what they
can do and how well they follow regulations and so on and so
This represents only e reesonobly accurate trenscrlptlon of the Iowa City council meeting of December 6. 1994.
F120694
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forth. A couple of things that I want to bring up before I get
into some of the other part and that is providing the public
with as much possible information as you have. For example I
suspect 90-95% of the people in Iowa City feel the intent of
the council is to build the water plant on the Glasgow's
properties period. And then in reading the reports from the
Green people which is available to everybody, it shows wells
along Interstate 80 but it also, and those have been abandoned
at least temporarily but also indicates- the report doesn't
but I've been told that we're also considering wells on the
Meardon property? I don't know if those costs are built in to
what is proposed or not but I don't think many people will
know that the intent is to have not only a water source on the
Glasgow property but a water source on the Meardon property as
well and pump it up I assume to the water treatment plant. And
I don't think people know about that.
Nov/ I have to say it also includes storage and transportation.'
Barker/ In the Meardon property?
Nov/ No. In the overall cost.
Barker/ I don't know. Since these cost figures in the Green report
have no mention of any wells on the Meardon property I would
assume they're not in that, However the wells on the
Interstate are in that. And so you know, but the concept I
don't think is well known.
Horow/ Ed can you close now.
Barker/ Oh. I'll mark where I am.
Horow/ Okay.
vincent Neary/ I'm currently a graduate student in the civil and
Environmental Engineering Department at the University of Iowa
as well as a member of the water resources committee in the
Environmental Advocates. This committee has been reviewing the
engineer's proposal for the new water treatment plant and we
had some criticisms which we had relayed over to the city
staff as well as the city council in some previous meetings.
I am against the proposed water rate increases until the city
can first of all demonstrate that they have seriously
demonstrated that they have investigated less expensive
alternatives and secondly factored in the effects of the
Energy Policy Act as well your own program for water
This represents only a reasonably accurate transcription of the Iowa City council meeting of December 6, 1994.
F120694
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conservation into the projected water usage rates. In terms of
less expensive alternatives, one that we handed over to city
staff about eight months ago is a technology called aquifer
storage recovery and this first overhead kind of illustrates
how this works. What aquifer storage recovery allows you to do
is design a treatment plant for the average or near average
capacity as opposed to the peak capacity or peak demand which
is currently being done in the engineer's proposal for the
Iowa ci,ty plan so the basic concept is that you run the
treatment plant continuously and when the- I should go back a
little bit and explain what this is- a typical operating year
for a water treatment plant. So you see the variation in
demands throughout the year where you typically have less
demand, below average demand, during the winter months and
higher demand in the summer months when it's drier. So the
strategy here with aquifer storage recovery is to store the
water in ground water aquifers when you're below average
demand and then when you go into the drier periods of the year
you rely on those reserves to provide the demands to the city.
And you know this is demonstrated up there with that ,view
graph. Now what does that mean for Iowa city. Well for the
design year 2015 the design capacity based on the peak is 16.7
million gallons/day. the average capacity is 11.15. So you
were to- if this AQS- I'm sorry AQ or whatever aquifer storage
recovery, ASR- if that were to be implemented, if that was
held some potential for Iowa city, we could save 33% right
there in the capacity of the treatment plant. And that of
course would translate into some serious savings I would think
with the capital costs of the treatment plant. So the next
view g+aph. Okay the other thing is water conservation. This
is another thing that we were very critical of in the
engineer's proposal mainly because it wasn't factored into the
projected water usage. Now I want to try to be simplistic as
possible. I know' there's a lot of numbers up there and
everything, but the top line starts with 123 and goes to 162,
the numbers in parentheses, is what the engineer projected the
water usage in Iowa City would be increasing at over the forty
year p~riod that we're looking at. Now this- these numbers are
the water usage per person per day, and' they don't only
include residential water users but also commercial and
industrial users. They're projecting that water usage in our
community is going to go up by a gallon per year, and what you
have to keep in mind is this increase is not due to
residential use increasing at all. In fact they're 'estimating,
I mean they assume that basically stays level. This is all
based on growth in our commercial and industrial sectors. Now
this 46 which continues from present day which is '93 to 2035
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which is the forty year design time, that is roughly what
residential use i. So right now that residential water users
use about 35% of the total, 123 gallons. So what I want to get
across here is that okay with our discussions with some city
staff, we again wanted to reflect some of these conservation
programs in the projected water use. They told us you know
it's too difficult. You know that it's very uncertain.
People's habits cannot be predicted etc. One definite thing is
the Energy Policy Act of 1993 to require all new buildings
have water saving fixtures. And water experts, water
conservation experts, predict that what this is going to mean
is that residential water usage is going to drop by about 55%.
They also predict that by 2026, all the pre-generation
fixtures are going to be replaced completely by post '94
stock. So this is going to be not only new homes but also all
the older homes by that time are going to have these water
fixtures, these water saving fixtures. So based on that the
residential water usage, we can be almost assured that we're
going to go from 46 gallons/person/day to 21. And that's going
to be translated also in the total water usage, so instead of
what the engineers are projecting for the year 2026, 154
gallons/person/day. It should be 129 for the design year 2035
it should be 137, not 162.
Horow/ vince, you have one more minute.
Neary/ Okay. I'm almost done. So basically right there, 137, that's
15% reduction. That's just looking at the Energy Policy Act.
From now until the year 2026, how quickly we approach the
reduction in residential water usage depends on how aggressive
our water conservation is. But that could be looked into I
think. So to conclude, I think we could realize significant
reductions in the treatment plant capacity which would
translate into some significant savings and these have been
passed on to the city council at former meetings way back in
February. They've been addressed at the water forum held by
the League of Women Voters, and like I said, we've been
discussing with the engineer and city staff about this, but I
don't understand why nothing is being done.
Horow/ I have one question. I know the question about the water
storage was already raised. If Ed or Mr. Schmadeke would like
to address this, it's my understanding that our geology
precludes us from that idea. Ed, would you like to address it?
I think what you are referring to is similar to what they are
doing in Des Moines, storing the water in an aquifer.
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#7 page 8
Moreno/ Yeah, we've just discussed this a little. In fact I really
appreciate the articles that were sent to us. The aquifer
storage and recovery system is utilized across in certain
parts of the nation: Florida" California. And it is being
explored here in the Midwest, There's an article recently. The
Des Moines Water Works is looking at it and I also know that
Keokuk is exploring it. And we have been in conversation with
a consulting firm, , actually right in the water plant
site discussing this. So it's known to us, and we've discussed
it. And as far as it being part of the project, it is not.
However it's a possibility.
Neary/ Okay, can I just say something. In response to that, why's
it a possibility. At this stage you're voting on increases in
the water rate. What does that $46,500,000 mean? I mean if we
go to aquifer storage recovery, it could be $30,000,000. So
shouldn't we be accelerating or doing, something, maybe
getting- Actually I spoke to this expert at and he
said the city's never gotten back to him since his visit here,
I mean I have to wonder how serious, that's how I started, how
serious are we at looking at the alternatives, not whether
you're going to consider them and then just think about them,
I just think that given that you're going to- the burden that
you're going to put on the city taxpayers, that should be one
of the key things that should be looked at. Thank you.
Moreno/ Sue, can I follow up with the question you asked me?
Neary/ Yes.
Baker/ Again, you're going to have to help us out here a little
bit. I think Sue started to ask a question about geological
question. This kind of process, does it require a certain kind
of land or can it be done anywhere?
Neary/ I think that what I want to make clear is that I think it's
a possibility to be looked at. There are certain 'conditions
that have to me checked out first. The certain characteristics
of the aquifer. And I'm not, even though I'm an engineering
student, I'm no expert on ASR. However there is this expert
for who would know what all the constraints are, what
you have to check out before you know whether it's a serious
alternative to go with.
Baker / Okay, but do you- you'd like to do what Ed has said,
consider it further.
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#7 page 9
Neary/ Well, I just- I have nothing against Ed. I don't want to get
him cross. The thing is I've just been frustrated because this
was presented to the city staff eight months ago and I had a
recent conversation with Ed and I just get the impression
that- I was told that well it's a thing that we'll consider
maybe for the future. This is something that ASR, the whole
thing about using ASR the whole advantage is to bring down the
size of the treatment plant, reduce capital costs. I should
mention here that the expert from wi th his vast
experience on other jobs where he's used this technology,
they've been reducing the capital costs by at least 50%. So,
I,mean, let's say we don't have 50%. what about 30 or 40%. I
can't imagine that when it translates into serious-
Horow/ This is a situation where what you are saying to us, we are
going to have to exactly get back before we let the public
feel that this is a reality. I know that I asked L. D.
McMullen about this specific situation because Des Moines is
going into that, 'He went into long describing of-to me,
described the geological foundation under our river, our area,
and said that it was not the same that was under Des Moines.
Neary/ This isn't Alluvial aquifers. I think this can be somewhere
else nearby. I mean of course that comes into the costs.
Horow/ I am saying the costs has to be looked into as well.
Neary/ Yeah, see, one thing I ~lould propose is call ,
forget H. R. Green for the ASR. They are good engineers but
call some experts who have done this work, like this David Pun
from C. H. . Get him in here and pay him, I don't
know, $1 million to save us $15 million. Isn't that money well
spent as well as the water conservation effort? Maybe you
could get more aggressive on that.
Horow/ Thank you very much.
Ed Moreno/ I just want to help clarify some of the ASR
conversation. The aquifer that would be explored for would be
the Jordan and the concept-deep aquifer and the concept would
be storing water into an aquifer for an extended period of
time and the issues related to it are regulatory in a sense
because the impact on that aquifer is unknown and there are a
lot of issues that need to be addressed before it could be a
reality, so we're in inquiry just like much of the project and
that's been kind of the scope of the project anyhow, kind of
an iterative process. So I just want to-
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#7 page 10
Neary/ The city staff has had this information for eight months.
How long do we just investigate it? I mean-
Horow/ We're talking about four years. Let's not worry about eighth
months.
Neary/ Well but you're talking- I mean, steve Atkins is constantly
telling us that oh the federal government, we have to get this
thing designed because we're going to get fined if we don't do
it. And you know time is pressing. Well if time's pressing,
let's go ahead and start seriously looking at this type of
stuff.
Horow/ I think we have been looking at it seriously. I think what
you've raised this evening is vital, but keep on going.
Baker/ Ken, before you start, can I ask Ed a question. Ed don't go
away. I don't know if you were the person to ask this for
clarification or steve or Don or somebody else, but in the
present proposal we have built in some assumptions about cost
of the plant and excess capacity that we would expect to
generate and how this would affect the capital cost of the
plant. If we did 12,000,000 gallons vs. 16,000,000 gallons,
what's the difference in the present proposal costs?
Moreno/ The specific number I don't have in mind however this was
part of our response to' downsizing the plant in response to a
conservation effort that was predicted. I can't remember the
exact percentage. Maybe it was fifteen like Vince said. I
think it was less.
Atkins/ We had ~ 20% proposal, a savings of 2.5 million.
Baker/ 'So if we went from what to what, we would save 2.5 million.
Atkins/ If we downsized 'the plant by a factor of 20%.
Neary/ I guess I'd like to suggest that that presumes the same'kind
of plant and if there's some way to reduce the plant's
capacity, while also only drawing water from the Alluvial
aquifers and deeper wells, then there might be a way to really
significantly saving capital costs with regard the plan itself
by avoiding presedimentation and a couple of other things. I'm
not saying that's true, you know a heck of a lot more about
this than I do.
Baker/ Let me also ask a further clarification question here. Even
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if this process turns out to be feasible, viable, is the site
that we're looking at appropriate for it or is it indeed
better for it? Do you have any sense of that?
Moreno! I don't. You know, based on the fact that our neighboring
communities are in the Jordan, in the silurian, I think that
the evaluation of it would be extensive as what we're going to
have to go through probably bringing up the water from the
Silurian or Jordan. I'm not sure whether it could work here.
And I know others in the inquiry and that's all I know.
Atkins! I think let's go back historically and recall that just a
few years ago we were south of town dealing with the and
the Alluvial and did extensive studies. I don't understand
this concept but it seems to be a storage of water off site.
Off site I assume theoretically can be anywhere because then
all' you have to do is pump the water to the site of the
treatment. But remember when we were doing those studies south
of town, we were talking about an extensive, very gentle
aquifer that we didn't think would produce sufficient
quantities of water for us. Now whether that can serve as some
ASR, I don't know, but you all will remember that we abandoned
that site because of land use decisions and a number of other
issues that in fact would have been a less expensive
alternative for us. So let's keep in mind that there have
been extensive reviews of the geology of all of the immediate
Iowa city area that Ed has not arrived at his sense of this
issue without extensive review and study.
Baker! Let me just sort of clarify, give clarification on something
you just said. This proposed- this idea, this aquifer storage
does not require it, to be stored on the same site.
Atkins! I can't imagine why it would. storage is storage.
Baker! If it works, we could store it anywhere.
Atkins! That's my impression.
Baker! And so what we're looking at here is the best site for a
source of water.
Atkins! That's what we believe. Yes.
Moreno! That is correct. That is a distinction. Yes.
Kenneth Wessels! Tonight I'd like to speak with the council and the
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#7 page 12
concerned citizens' groups like Environmental Advocates and
people passing the petitions around. Residents watching about
the macroeconomics of this situation with the essentially the
doubling of the water and sewer over the next biennium, The
ironies are starting to pop up. As I covered the editorial
page today of the Press-Citizen, story in the Daily Iowa, I
of the gentleman from Environmental Advocates is speaking.
Ways to conserve water by retrofitting, etc from the 11,000 or
so residents and the renters, essentially the people who would
be paying the bills. The political irony I see tonight is that
the council voted for the second time to install a car wash
and make car washes accessible.
Pigott/ That's not true, Ken.
Wessels/ Well, I don't know. I heard two zoning matters pass that
involved car washes.
Baker / We voted to allow car options as an option in certain
commercial zones.
Wessels/ Well, that's what I ,just said.
Pigott/ No you did not.
Wessels/ To allow car washes in some commercial zones. You'passed
it.
Horow/ It would have to go through special exception.
Wessels/ Well it would. But the general theory you're operating on
or haven't reached this level of understanding is conservation
should- car washes are as wasteful as it can get for water.
I'm not saying you're bad or did anything wrong. I think we're
all raising our consciousness about this and I find it ironic
but I want to get to what I want to say is we should finance
this matter with a 1% sales tax in this community. There are
so many people benefitting from this community. The workers,
certainly a large percentage of the workers in Iowa City, the
contractors, come here from williamsburg, Riverside, Tipton,
Cedar Rapids, they benefit from this community. The students
benefit. The patients at the hospital. They all use our roads.
They're not going to be paying this essentially what is
essentially a tax. My calculations based on my water bill for
a family of four come out to a $450 annual increase. Now if
that were 1% of a non-food purchase, that would be $45,000 in
non-food purchases for our family. That's three new cars for
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#7 page 13
a family of four is the magnitude of this billing system that
the city has proposed and I'd like to let the other people
talk about the aquifers. I've watched with interest the
presentations the staff has given on public access and it's
very interesting. The fact of the matter' is, we need a 1%
sales tax increase and I hope the people passing the petitions
around can see that. As you think about this over time, the
benefits outside people are getting from this community is
enormous. And of course we'd,be paying that 1% increase too.
Tanger Outlet Mall in williamsburg has this 1%. If you go to
Tanger to buy a coat or a suit or luggage, you will pay 6% not
5% and the city of Williamsburg is certainly not raising any
fees for its people. And I know a lot of them come here to
work. Arid so it's the, macroeconomics, laundromat fees are
going to double in this town. The subsidized housing the
federal government has to pay is going to go way up. The
average rents are going to go up. The rents for people who pay
their own water bills are going to go up as the years go on.
So it's a macroeconomic effect. It's not just me coming before
the council saying look we can't stretch our budget any
further and neither can the other people. What I'm saying is
we have to do this like other cities have in Iowa. Add the 1%
sales tax. Think about it as the weeks go on and whether that
goes to payoff the municipal boding and the pay as you go
method. I think you know what the county auditor said in his
guest opinion today is that the present price tag half of
which the 180,000,000 will be interest is simply out of the
question.
Horow/ You've got one more minute.
Wessels/ Okay. One more minute. I'd like to congratulate the
minority on the council of Karen, Bruno, and Jim for trying to
help the low income, elderly, and fixed income people out. But
I think that the reality is such a large increase is not going
to be fixable, and let me say to that the passage of NAFTA,
GATT, and Most Favored nation status for China cost- the
purchasing power is really going to increase in this community
and I think the arguments against this 1% sales tax are going
to come from the same people who didn't want Wal-Mart in this
town. And the thousands and tens of thousands of people you
know are going to have more purchasing power even with this 1%
and so-
Horow/ Your time's up.
Throg/ Can I ask Ken a question? A quick question, Ken. Just help
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#7 page 14
me understand this one thing. A lot of people have suggested
we should adopt the sales tax and there's merit in the idea
but I'm wondering who would, who would oppose the sales tax?
You know all we've heard is people proposing it.
Wessels/ People who are opposing this historically are the d. t.
merchants because they think it will drive people away. And
like I say, you go to Tanger you go hey I thought Iowa had a
5% sales tax, and they go no. Williamsburg has a extra 1%. So
I go hromm, an extra 1% well it's a dollar a hundred but you
can get better prices but you know who opposes it. The d.t.
merchants. The same people who didn't want WalMart in town.
Horow / But if you're going to Tanger, why wouldn't the d. t,
merchants oppose it?
Wessels/ Well, all I'm saying is new cars. I don't know why. Let me
get that-
Horow/ You're telling me you're going to Tanger Outlet. That's not
in this county. So I'm not getting you-
Wessels/ Well, yeah. I'm not obligated to keep d.t. merchants you
know going when I can go-
Horow/ You are if we want to capture the 1%. I thought that was
your point.
Wessels/ What I'm getting at, Sue, think of new cars, not Christmas
gifts. Every new car that goes for say Winebrenner sells three
new cars in one day. That's going to be $450 coming into the
cities- You have to think in terms of cars.
Atkins/ Can I help you Ken? The sales tax is not applicable to
automobiles. Local option. Sorry.
Wessels/ Well at any rate. I think the figure I heard was
$4,500,000. And that in a pay as you go system I think that
the finance people would get back to the citizens and the
council and say yes we can do this as opposed to this fee
increase on the city water bills.
Horow/ Thank you.
Baker/ Just for the record. There'S, seven people on this council
who've made the commitment to help low income people and their
problems with any increases in the water bill. There's seven
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F120694
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#7 page, 15
people on this council who made that commitment.
Wessels! okay. I'm going by what I read in the paper, Larry. I'm
glad to hear that.
Baker/ I want to- the idea of the sales tax is very important and
I'm glad you brought this up because I think a lot of people
are talking about that. And I think it's something that this
council will certainly come back and look at. The problem
right now with the sales tax is, it has to pass first and you
can't go out and sell bonds on a supposition. Now you could
say, well and wait until the election and see how it goes.
What we can do and talk about this is, if we do impose some
sort of higher rate structure we can have that in place and
then look at a sales tax to help roll back or defray future
increases. That's a very real possibility and I think the
council' sgoing to come back and give that some serious
consideration.
Throg/ I think I also understand, you can help me out here, that a
sales tax would require a referendum and the citizens of
Coralville and U, Heights would take part in even though they
don't benefit from our city water.
r
,
Horow/ Right.
Throg/ They'd probably oppose it.
Nov/ Those cities can put it on their own ballot for their own-
Baker/ They can designate the money anyway they want to.
Phil ThompsonI' 428 1/2 E. Jefferson st. (reads statement) Thank
you.
Horow/ Dave, Mr. Elias. Would you be able to address the diffuser
and the break point aspect of it?
Ii:
Baker/ ,And Susan, as a matter of procedure, I'm wondering if the
staff is operating under the assumption we're not to talk
unless we call on them, that they feel they should-
Kubby/ If we',re not asking you to to talk and it's something really
important to be said I guess I want to see you squirming back
there.
Baker/ We don't want to get into too much of a technical debate or
\
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#7 page 16
we'll lose this audience, probably we need to explain some
assumptions of wastewater plan as proposed and maybe steve can
talk about the guidelines that we're working under.
Elias/ Yes. We are intending to utilize break point chlorination at
the north treatment plant in order to keep the capital
investment low there because that there is basically not
enough room for any other type of physical expansion there. So
we will be using break point chlorination, treating half of
the flow that the current plant is taking. We looked at using
a diffusion pipe there at the north plant and basically ruled
that out because we feel that the chlorination ,process will be
able to easily get us down to the limits and we'll be able to
control that process very precisely and to dial in essentially
a rate of treatment and blending. We don't even anticipate
having to chlorinate all of the water going through the north
plant but to blend it down to a specific number that DNR will
require in the limit which is very low limit that's
approximately 3 three or four milligrams per liter, parts per
million. At the south plant, we have evaluated break point
chlorination and we feel that would be a contingency that
might need to come into play in the future depending on the
growth of flows at the south plant if we experience an
increase in the flows before current bonds are retired or
before we have available money again and of course that would
be a low cost capital investment. But for long range treatment
we've determined that it would probably be wiser to go with
biological treatment as opposed to strictly chemical because
it would be a large, very large volume of chlorine that we
would be applying on it on a regular basis. The diffuser pipe
has also been looked at for the south plant and that also is-
has been put into our plan after the design outline was
presented to DNR and in our discussions with DNR we have held
our potential for a diffuser pipe sort of put it their as a
last stage in the process if as things develop at the end of
construction and we need additional treatment to make
standards in the river and the diffuser pipe would be put in
then. It looks like for construction of biological facilities,
CHANGE TAPE TO 94-137 SIDE 2
Elias/ Be adequate because the downsizing of that tank does not
save that much in construction. You are going to dig the same
amount of holes basically and have the same amount of pipe and
you are just saving a little bit on concrete.
Thompson/ You have pointed out that you are not going to use the
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#7 page 17
diffuser at the north plant because you are going to divert
over half the flow to the south plant which is already
underloaded. It is only about 40% to capacity right now. Now,
what I am saying is that if you had a diffuser at the North
Plant as well and you didn't have the extend~d aeration tank
at the South Plant you obviously wouldn't have the capacity to
convert 4.5 million gallons a day to the South Plant from the
North Plant. So you would be treating more at the North Plant,
more than what you are estimating and in order to meet the
requirements then you would need a diffuser in addition to the
break point chlorinatibn? Now, two diffusers cost $1 million.
To build the extended aeration tank costs $10.8 million and
the 0 & M is kind of debatable but I am giving you guys $5
million on the 0 & M, on the break point chlorination because
because of the projections. So basically I am saying don't
build the extended aeration. Don't build the extra 5 million
gallon tank. When the year 2010 comes incorporate, that 5
million gallons into that expansion which as we know from
earlier tonight the costs of economies of size you can fit in
that extra 5 million gallons.
Elias/ That is certainly another scheme that we can look at it.
We've evaluated and balanced those out.
Thompson/ That is all I am saying. You should really just look at
it before you all make a decision tonight. That is all I am
saying is that this isn't the place to decide that-
Elias/ The other issue to really be considered in there is the
safety involved in operating that type of facility because it
is a large volume of hazardous gas.
Thompson/ In the plan that I have come up with I am suggesting that
you put $1 million towards upgrading the chlorination facility
which includes safety precautions. Because of the use of the
diffusers Green estimated break point chlorination by itself
would use 640 tons of chlorine a year. Using the diffusers
that number would be cut in half. So essentially we would be
using a little less than a ton on chlorine a day and you ask
yourself, well, what does that mean. What kind of hazards are
involved in that. Right. Well, the two water plants in town
here currently use on a daily basis approximately a third of
a ton. So you would be using more but there are cities across
the country that are more densely populated that use chlorine
for drinking water and more than the 100 ton increments on a
daily basis.
This represents only a r~asonably accurate transcription of tha Iowa City council maetlng of Decembor 6, 1994,
F120694
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#7 page 18
Horow! We have gone way beyond your time.
Pigott! Do you have copies of what you wrote, Phil?
Thompson! Yeah.
pigott! If you could pass them out.
Baker! Sue, I want to make a general comment because there is a
pattern developing here about options, options, options and I
want to make sure the public understands until the ground is
dug up and the pipes are put in we are constantly reviewing
options. That goes without saying and if options come to us
for us to consider in this process we will look at those
options. Whatever we do tonight doesn't translate into a
finished product tomorrow and we have lots of time, That is in
the best of all possible worlds and when there is no
controversy we would still be reviewing options. So, bring us
as many options as you can. We start with a premise and work
from there.
Doug Jones! 816 Park Road, Iowa city. And before I deliver in on
the issues I would like to congratulate Jim Glasgow on this
beautiful cartoon he commissioned. I think it qualifies him
for being designated as a patron of the arts and while I
disagree very much with his message I really appreciate the
way he has taken to carry it on and I think Iowa city politics
in general would be greatly aided if more people would take
this approach to making their points. I think it is great. But
now to the point. I am going to speak as a strong supporter of
the general tenor of the proposals before the council and I am
also going to oppose the proposed sales tax. I think the
council has to face the fact that in addition to being
government you are running a utility company. If this was an
electric rate increase we were talking about, would people
seriously consider having a government imposed sales tax to
help fund the electric utility. Say funding IIGE. I' don't
think so. I think that with all utilities the fairest way to
deal with the costs of that utility are to pass them on to the
consumers of the product that the utility delivers and to do
that equitably which is to make peo~le pay for what they use.
Further more the EA figures make it very clear that the
greatest elasticity and water demand is at the residential
level where conservation fixtures can make what appears to be
on the order of a 50% reduction in demand. If the city has to
make an abrupt rate increase I believe that it would b~ quite
appropriate for the city to put in place a program to aid low
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#7 page 19
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income residents in putting in conservation measures in order
to make back their money. I think this could be quite
effective and have exactly the impact required. But now to the
big point. I have heard too many people complaining that we
have a water plant which is being forced on us by the federal
government. That this is an unfunded mandate and I really
question the whole idea. The federal government is aSking us
to accept responsibility for what we do. We have a
responsibility to all the people and all of the wildlife
downstream of Iowa city, not to poison the people or the
wildlife downstream and as we learn more about the nature of
the impact of what we are putting into the river, on the river
community, and on people all the way down to the Gulf of
mexico, we are learning that that impact is not negligible. I
don't believe that we have any choice is we want to live as
moral people but to pay the price of cleaning up what we ,dump
into the river so that it doesn't cause people in New Orleans
to get ill. Their water taste is worse than ours. believe me,
I have been there. And so that it doesn't cause fish kills
downstream of the plant because the ammonia levels are too
high. That is a serious issue and no amount of federal
regulation removes our personal responsibility for that issue.
The federal government is merely telling us to do what we
ought to be doing and we probably have been remiss in not
hurrying a little bit more than we have. The same is true for
drinking water. We have a responsibility to the residents of
Iowa City, to those of us who drink that water, including all
of ourselves for those of us who are residents. We have an
obligation to our children because growing children are far
more sensitive to the contaminants ~n the water than we adults
are and that obligation has to be met. We are the fastest
growing community in the state and based on that we have to
anticipate that growth and deal with it by providing utilities
that meet the needs of 20-30 years from now. I see no choice
but to replace an outmoded model T of a water treatment plant
with something new. Now much of the talk here has been on
details of that replacement. Can we do it with ground water
storage? Can we do it with a diffuser in the river? Can we cut
costs? Absolutely. We must look at very opportunity to cut
those costs. Can we phase in the rate increase? Can we phase
in the construction? Absolutely. We have to look at those
alternatives. But when it comes right down to it within the
bounds of fiscal responsibility and careful development we
have to build these plants and we have to pay for them. We
shouldn't be looking for someone else to pay us for what we
are ultimately responsible for ourselves. And so, with that,
I thank you for your time.
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#7 page 20
Horow/ Thank you.
Throg/ Thanks, Doug.
Harvey Wehde/ Iowa city. I have two different versions here, and I
want to get through them all before any questions are asked
since we are limited to five minutes. First of all I just want
to ask is the Throg/Kubby uniform rate increase proposal still
under consideration.
Throg/ It will be brought up tonight.
Woito/ But it is not in the present ordinance.
Wehde/ Okay. I will address that one first and then I will go on to
my second part and then if there are any questions if I have
time I will take them. (Reads statement:Throgmorton, Kubby
Uniform Rate Increase Proposal December 6,1994).
Part 2 the water plant. (Reads statement: The simple truth the
water plant is....)
Horow/ I would like to address the issue about the Cedar Rapids
land once and for all. The Cedar Rapids facility is going to
be addressing wells and not the treatment of river water. It
is my understanding and Mr. Schmadeke can correct me, the cost
that has been estimated on this is just for the treatment
plant along. Not the distribution, not the storage which is
within our costs for the water plant. So that the comparison
of the two areas are not really apples and apples.
Wehde/ But it still is quite a big of difference.
pigott/ Sue, I would like to also address the parkland issue. First
there is no proposal in the rate increase or anywhere to put
in a park. There is no official proposal to do so. So, there
may never be a bike path. There may never be a park in that
area. It was an idea. It was not a proposal. There is nothing
on in any resolution we are voting on tonight that would
create one. So, just to clear that up. That is in fact true
that not one cent of any rate increase money will go toward
parkland or bilce path and we may not have parkland or we may
not have a bike path on there. It is up to us, the council, to
decide that and the voters to tell us what they think about
that. But that is a separate and distinct issue.
Wehde/ You have been kind of changing your little viewpoints on
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#7 page 21
that though since this started from the beginning.
Pigott{ No we haven't. No we haven't.
Wehde{ First you said you are going to include it in the rates, it
is legal to do that.
Horow{ Never. We looked into this with a citizens group talking to
us about how to use public land that would be there empty. In
other words nothing on top of it. This was in a method of
getting citizen input in terms of how you would use public
land. Some of the suggestions that came up included trails,
nature trail, something that would be non polluting, non-
disturbing the area. But even then that would never have been
with the use of water money.
Wehde/ So there are no short term plans to put a park and trails in
this-That is not what I am talking about.
Horow/ I am not going to get into that bag. If we, the citizens ask
for-.
Wehde/ It is the same thing.
Horo~l/ No it is not. If the citizens, enough citizens, through
boards and commissions want to use public land similar to the
waste water treatment facility where there is empty land there
and in that' case they are using it for soccer fields with
funds that have been raised privately. If the citizens wanted
to use the land up by the water plant that is not being used,
those moneys would have to come from another source. They
would not be used with the water rate.
Kubby/ And it is not being used on the top. Some of that land may
be used as the Alluvial wells or we need to have control of
those. It is not just empty that we are burying extra land.
Horow/ No, I meant empty on the top. Obviously there is stuff
underneath but that- I want to get that changed in-
Wehde/ I understand that now you have got it in a position where
the rates aren't going for a park.
Horow/ And they never have been.
Wehde/ If it does happen, if it does, the tax payer is going to be
paying for it one way or the other.
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#7 page 22
Pigott/ Pay,for a park anywhere in the city. If we build a park on
the south end of town for some other reason, yes, the tax
payers are going to pay for it. That is clear. There is no
question about that. The question is whether or not we are
going to pay' for one with city water rate increases. Quick
answer is simply put, no.
Wehde/ I understand that.
pigott/ Okay. That is the issue here.
Wehde/ I just wanted to get the other point across. If it does
happen we will be paying for it in tax dollars?
Throg/ Harvey, can I ask you two clarifying questions please. I
think you make a very valuable point with regard to what you
refer to as unfunded mandates. Like Doug Jones I wouldn I t
really talk about it that way. still I have heard the same
kind of statements on cable t.v. and on the radio and so on
from Newt Gingerich and Bob Dole. Right, so I think you are
making a very importnat point. So the clarifying question is
do those statements apply to the new regulations or to the
existing. '
Wehde/ New.
Throg/ There are existing regulations that we would have to comply
with already.
Horow/ But we are complying with existing regulations now.
Wehde/ We haven't passed anything yet, have we? What we are holding
this hearing on is for a law that already exists that is an
unfunded mandate.
Kubby/ That will not get repealed.
Throg/ It is the Safe Drinking Water Act of 1986.
Wehde/ After January what they are saying is -
Horow/ No new unfunded mandates.
Wehde/ will be putting money in.
Horow/ Right, but that has nothing to do with this.
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#7 page 23
Pigott/ By building this plant we are addressing the old federal
mandates is what they are trying to say.
Throg/ Another clarifying question with regard to renters. I take
your point very seriously because I do not want to be part of
anything that really harms low income people who happen to
rent, right. But I was talking with Ed Barker at lunch a few
days ago and what I heard Ed say was that on an average the
average renter will pay $3.00 a month more as a result of the
proposal that Karen and I made than would the average renter
under the staff's original proposal. $3.00 a month difference.
I also understood him to say that 35% of the renters pay less
as a result of our proposal and the other 65 would pay more.
Does that sound reasonable?
Wehde/ The point that I want to make is remember that the tax base
here is a big consideration because we are in a competitive
market and the tax base pays for a lot of this lower income
people that you are going to end up subsidizing because of
these water rates.
Throg/ Okay, I am just trying to distinguish between renters and
the businesses. I understand your point about businesses.
Wehde/ And I am real concerned about the students.
Throg/ Sure, me too. I think we all are.
Wehde/ That is why I think the other cities go the way they are and
I think the council will end up going that way also, I hope.
Horowl Thank you.
Baker/ Sue, we need to get some clarification. I want to go back
because it is a very important issue. The difference between
our project and Cedar Rapids. You alluded to some of them. I
really wish some member from the staff will go into a little
bit more detail about why these are different projects and
have to be looked at differently and cannot be evaluated the
same way.
Horow/ Ed Moreno, would you like to address this?
Karr/ Can we recess with (can't hear).
Horow/ Recess with power failure.
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Karr/ Recess for five minutes so they can get back on air.
Horow/ Recess for five minutes. RECESS
CHANGE TAPE TO REEL 94-138 SIDE 1
Horow/ You are all right. The tape isn't. All right. Can we start?
Ed, when we last saw you we were about to discuss Cedar Rapids
and the information that has been getting around about that
proposal. Would you please explain that?
Ed Moreno/ Yeah, what you are requesting is to distinguish our
project from their recent-
Horow/ The cost and the amount of land.
Moreno/ with Cedar Rapids project and ours there is several
distinctions and I will kind of outline them. with our project
what we are looking at is developing sources: the Alluvial
sources, the silurian sources, the Jordan sources and the
river source. In addition we are looking at building a brand
new water treatment plant and that plant will include
administrative offices and other areas for staffing. In
addition to that we are looking at major distribution projects
that will improve pressures in those areas around town that
are experiencing low pressures right now.
pigott/ Ed could you in English talk about what distribution means?
To some people maybe it is a weird concept-
Moreno/ Right. What we are talking about is the water mains that
are in town. We are in what they call the 100 year club which
means that we have water mains underground that are over 100
years old and the outskirts of our city, on the west end and
on the north end by Lower West Branch Road and ACT area we
experience low pressure at certain times and we also have, as
was described by Art Kistler earlier, we build storage tanks
that have 2 million gallon storage. We have three of them that
have independent control systems at them and we are proposing
in this project is to upgrade that system in addition to
creating a new source which I would assert is the break
through in the project and a new water treatment plant and
with the Cedar Rapids project, what we are hearing about and
what is being discussed is basically a water treatment plant
and that is it. And that plant is going to be treating a
source that is a Alluvial source like one portion that we are
looking at and that is it. And so it is a plant that will be
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designed with lime softening, rapid sand filtration, aeration,
lime softening, rapid sand filtration and chlorination as a
disinfection. Our treatment plant will be much more extensive
than that because a portion of our source is the Iowa River.
It is a very dynamic source and we need several stages more of
treatment to do that. The first being a pre-sedimentation
clarification which is actually all we do right now at our
existing plant and in addition to that we also have granular
activated carbon filtration is the filtration step and so
those are big distinctions and big treatment processes and
extra levels of treatment that are necessary to treat a source
like the Iowa River. So we are talking distinctions between
sources. We are talking distinctions between the overall
project as far as distribution and source and treatment and
even the specific unit processes that are in the plant. In
addition, even the plant is different. We are looking at
administrative offices and that type of thing.
Horow/ Those administrative offices are now down at the current
water plant.
Moreno/ That is correct.
KUbby/ So when you say the Iowa River is dynamic, you mean that the
chemistry of the river is constantly changing on a seasonal
basis?
Moreno/ Not only the chemistry, the temperature, the sediment that
is in the water, the organic content that is in the water. It
is very dynamic and just in the last seven years we have gone
through a drought, we have gone through a flood, we have seen
all kinds of changes occur. We have seen excessive nitrates in
the river and I would assert that this Alluvial source will
greatly help us to provide a more stable water and consistent
water and so kind of the outlook of our project is it is much
more extensive than that portion of Cedar Rapids. They are not
talking about the source. They are not talking about the
distribution. If you look at what they are proposing in the
next five years you would be looking at upwards of $68 million
in capital improvement costs and we are just looking at a
piece here. So when you say, Mayor, that it is apples and
oranges. Yes, that is exactly what it is and I don't think
that has been distinguished very well.
Kubby/ That is only part of the apple in their case and all of the
apple in our-
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#7 page 26
Moreno! Right, exactly. I just want to add two more comments
quickly. with respect to the ASR we had discussed, as you were
saying, councilor Baker, the first step for us is to produce
a high quality water and I believe that is the tract that we
are on right now. And then following that it is possible to
look at ASR. We are on track in our schedule and I believe
that it is appropriate right now to do that first. And then
the other comment that I had, I guess, with respect to the
mandates and the concerns about enforcement. I would assert
that if we are in a compliance schedule pending enforcement,
we are already putting our consumers at risk. We are beyond
where we really want to be. So to steer off of whether or not
we are going to get a court order I would say is inappropriate
because that would mean that we have already put all of our
consumers at risk and our continuing to do that until we can
get something in place that can address that. So this is a
little bit different, a different way to look at things and
that is how we should be.
Pigott! One quick question. One of the people who got up said water
quality today has never been better. Address that.
Moreno! I would love to. In fact, I brought some graphs with me.
What we are seeing here we put in numerous improvements at the
water treatment plant that were not being heard about also. So
each item that we have incidence like the drought of '88 & '89
we respond appropriately and accordingly. We have nitrate
problems, we respond. So what you will see at the water
treatment plant is the introduction of chlorine dioxide to
assist with the color and the organics in the water. You will
see a nitrate testing procedure that we can do everyday that
is certified or that was certified. You will see the
introduction of Silurian water. We have negotiated with the
University of Iowa to introduce into our flows so that we can
dilute better those contaminants that are coming off the
river. You will see operational parameters that are much much
tighter than they have ever been at the water treatment plant.
So our staff and I am very proud of them for what we are doing
down there right now and it will not be enough. So as you look
at what at risk there. One contaminant that I will point out
is cryptosperidium and as was stated by Mr. Barker the limit
is .5 ntu 95% of the time. Well, the most recent research that
is coming out is pointing to the fact that .1 would be
actually where we need to be to remove that size of cyst. We
are talking 4 microns in size and currently we have improved
so that we are under .5 and we are feeling fairly comfortable
right now but as you know, come spring tie, with the changes
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in the river water that we normally experience every year and
depending on what happens the season before could be worse
than the year before, we are expecting that difficulty at that
time. And so .5 although is the limit for the federal
government it has been shown through the incidence in
Milwaukee that it is inadequate. That is why it talked about
the compliance. If you want to go to compliance for those
contaminants I would say that we would be at risk if we do
that or wait for that.
Kubby! Will the new plant get us .1?
Moreno! Yes. It is going to be less than .1.
Kubby! Will it be possible that some of these ideas about aquifer
storage could be, if looked at and is feasible, could be used
as a way of not having to spend so much on any increased
capacity in 20-40 years, whenever we deal with this issue?
Moreno! It is a possibility and I would assume that we are on the
right track now in the sense that we have acquired a site and
a source that is naturally filtered that we can improve. I
don't think the DNR would appreciate us throwing river water
down into the Jordan aquifer or anything that is very low
quality. So we need to get our plant in place and treat our
water good now before we even think about that. That is the
timing that we are on right now. Like, we do listen to every
option, like you were saying. But we need to decide the timing
of they need to be in place.
Nov! Isn't the Jordan Aquifer the one that has taste and odor
problems and therefore we are not using it very much? What
happens if we store water in it. Doesn't it then acquire those
problems?
Moreno} The Jordan aquifer is about 1600 feet deep in this area. It
is very hard water. It has hydrogen sulfide normally in it.
Aesthetically it is not very pleasing. Why it is attractive to
us is it has virtually zero contaminants that the river has
problems with: nitrates, atrazine, alecore, trizine that we
are hearing about. So we use it to dilute with. I guess one
concern that would come up with the ASR would be putting a
chemistry of water that is so different down into an aquifer
that would have water that would be so different chemistry
wise. There would be concerns about that, flooding the
aquifer, upsetting the aquifer. So going into something like
that would take c~nsiderable study before hand and the
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regulatory agreement to be able to do it in the first place.
So again, I think it is a possibility but we need to get this
in place first before we can even think about that.
,
Horow! okay, thank you very much Ed.
Chuck Denninger! And I have done some investigation since our last
public meeting. And a couple of things that I would like to
indicate to you. First of all, as a citizen, I would like to
tell you we need a a rate increase. We needed a rate increase
seven years. We are going to debate how much that increase
should be. Secondly, I am here to tell you that it doesn't
'matter if you are a Republican or a Democrat, we want clean
water or other. Anyway, as far as unfunded mandates are
concerned. There are a couple and one of them we referred to
at our last meeting and that is testing for chemicals that are
only used in Hawaii, Florida, California, etc., etc. There was
a bill in the Senate this last year and fortunately it wasn't
approved. But one of the things that it did was eliminating
our having to test for chemicals that simply don't exist here.
Do we foresee that possibility of passing this next year. Yes.
Do we foresee a lessening in the health standards of fresh
water. No. We do not see any major changes there. A couple of
things that I would suggest to you. We have been talking here,
through this meeting and last meeting, about construction
options, about the cost of the facility being so large. When
in fact what we are really talking about here is a water rate
increase. We are not talking about a specific construction
proposal. I would suggest to you that we implement something.
I was very pleased with the \~ork session this evening and
Councilman Baker, I think you had some great ideas.
Baker! Well, I feel like Tom Slocket now.
Denninger! Well, what can I tell you? When you are right, you are
right. Implementing a flat one year increase I think is very
appropriate. In addition to that and I know our Mayor, Susan
Horowitz, has talked to Jim Leach and I have done so also
along with Senator Grassley. Both of them this evening, as a
matter of fact, before I came here. And I would like to give
you a statement from the Senator. The Senator is willing to
facilitate a meeting between the council, EPA and DNR. And the
reason for the meeting would be to help to determine the
effective implementation of the Clean Water Standards and that
goes for both the wastewater treatment facility and those
requirements as well as the water treatment facility. The last
issue I would like to address is the flat rate structure which
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#7 page 29
initially I thought was a pretty good idea. But I have some
concerns about it and the major concern is the reason for it
pay for 'what you use. If we are going to look at the apartment
dweller. How are we' to determine which apartment dweller uses
how much water. What you 'are in essence doing is taking each
apartment dweller and assuming you are all equal and
therefore, you are all going to split the water rate. Or you
are going to force the apartment owner to put in separate
water meters for each apartment. That doesn't seem too
practical to me in either case. I had a problem with that. So
I think we need to take a look at that a little closer.
maintain the existing rate structure for right now. Buying us,
again, time to look at that possibility in how to handle the
problems of that nature and similar ones. That is all I got to
say right now.
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Throg/ Chuck, wouldn't your last point apply to the current and the
currently proposed rate structure, too? If I understood you
correctly.
Denninger/ No. The proposed flat rate, pay for what you use, that
was discussed at the last meeting I thought initially was a
good idea. But I am having troubles figuring out how to
implement that.
Throg/ But that applies to the way the water is paid for now in
larger multi family units. It is divided up all around.
Denninger/ It also applies that way but, again, the magnitude. We
are talking about a 40% rate increase here. The magnitude,of
the water bill right now really isn I t that bad. I would
anticipate it having a little larger impact.
Horow/ Thank you.
Michael Tavel Clarke/ I am a graduate student at the University of
Iowa. I moved here about two years ago from Massachusetts. I
have been following the water quality issues ever since then.
In Massachusetts I worked as an environmental consultant in
precisely these issues of water quality and water pollution
issues. Let me say first of all that I understand that we need
a new water treatment facility and wastewater facility. I
understand that federal EPA requirements on pollutants are
changing and will continue to change and this is a problem
that we are not just facing in Iowa city but cities are facing
allover the country. Second of all I also understand that we
have an outdated system right now and that we need to replace
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#7 page 30
it from what I have heard tonight and from what I have read, in
the papers. I am very much in support of efforts to decrease
the impact on low income residents of Iowa city and fixed
income folks and I would encourage people who are working for
that on the council to continue working toward those efforts.
This isn't my main point but one additional comment I would
like to make. I hope that efforts to do that, if for instance
they include conservation measures, continue to aggressively
target renters. I know that the rent population here is
transitory, in part because they are students, and often one
of the problems that renters face is that they don't want to
make improvements to the places they live because they have to
pay for that rather than the apartment owners and there is a
question about who should pay for it and who gets the benefit
of it and so forth. I rented for a couple of years when I
moved here at a place that seemed to me to have insufficient
insulation but I didn't want to' put out the cost to pay for
the insulation when I was only going to live there for a short
period of time. But, you know, it would of course of benefits
naturally in terms of energy and also for me personally in
reducing my bills. So, I would encourage you to do that. But
the main point that I want to make that it seems to me
abundantly clear that from what I have heard tonight that we
spent a lot of time and money investigating all kinds of
options for plant construction. But I am wondering whether we
have investigate all the options for rate structures. When I
heard that this council meeting was coming I called the
company that I use to work for in Massachusetts to see if they
had experts and environmental consultants who dealt with these
issues and they said they don't see much but there are
companies in this area and they gave me one name of a woman in
Ohio at Ohio University who does do precisely that. She gives
alternative rate structures to clients who are requesting that
information. So I would encourage the city council, if you
haven't done this already, to investigate alt~rnative rate
structur~s. I would be happy to give you that name of the
consultant if you would like that and a phone number.
Novl Before you go can you define alternative rates structures?
Tavel Clarkel I wish I could. When I called my environmental
consulting company I used to work for I asked them what
alternatives existed because I thought that we did work in
that area and it turns out that we didn't do work in that
area. I can't give you a list of what alternatives there are.
Novl Can you define the terms so that we in the general audience
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#7 page 31
know what you mean?
Tavel Clarke{ Well, it seems like we are considering just two
options, either flat rate or decreasing rate with increasing
usage. My guess is that there are other options and I am
wondering if we considered those or are aware of'those.
Horow{ Thank you.
Jim Glasgow{ I hope you all have the top ten list I left for you.
I would like to go through as many points on that list as I
can. I am not here really to argue the rate structure or
anything else, I mean I don't particularly address the issue
about rate structure. My feeling is that this plant should be
built for less money. Now, one of the things that I would like
to discuss first is the gasoline and fuel oil pipeline on the
site. I have brought this up a couple of months ago and maybe
at this time you can tell me if the pipeline is going to stay
on the site or if it will be removed.
Horow{ Mr. Glasgow, at this point I would either have Mr. Schmadeke
step forward or I will read the memo that we received from him
about it because it has helped me a great deal and those
people-
Glasgow{ I would like to hear it.
Horow{ (Reads Schmadeke1s December 2 memo re: Conversation with
Wilson,Busby of Williams Brothers Pipeline)
This helped me a great deal and other people that I talked
with. So I think that is as much right now that I can help you
with your question.
Glasgow{ I have also talked to Mr. Busby and okay, so really what
you are saying is the pipeline is going to stay in place at
th,is point?
Horow{ At this point.
Woito{ Not necessarily. The option is open.
Horow{ At this point, though, that is what the memo said.
Woito{ Howard R. Green says that is may be removed.
Glasgow{ Well, the only point I have is if it going to be removed
that is probably a fairly expensive process and it really
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#7 page 32
should be added into the cost of the site and if it is going
to stay then we have a hazard there on the site that is going
to be a permanent fixture with our Alluvial water source. That
is the point that I am making. And there is a couple of things
that I would like to address as far as you called the
interference with the pipeline. Well, two thirds of the
explosions are caused by human interference. The main cause of
leaks in pipelines is corrosion. Now, Linda, you mis-stated
that last council meeting because that was-
woito/ I claim perfection but seldom attain it, Jim.
Glasgow/ Iowa Illinois corrected that for me and you can find that
out from the Houston Center of Health and Safety. They do
studies on pipelines. But I think you have to look at what you
are doing on this site. When you put in four high capacity
walls on this site and you start pulling the water from
underneath the surface you are going to create a cavity
underneath this ground and you are going to have consolidation
of the soils above this cavity and that means this ground is
going to shift. Now, you have got the pipeline in'place. That
pipeline could be stressed by this consolidation of soils and
what you need to do really, is have some type of risk
assessment study done.
Horow/ Excuse me a minute but if we are creating a cavity why would
be be sinking a well? Wouldn't the cavity be re-
Glasgow/ The well will create the cavity or drop the water table in
this area. '
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Horow/ Ed, could you address this in any manner? I apologize, Jim,
I broke in and I said I wasn't going to do that.
loioreno/ The site that we are talking about here. What we are
looking at is Alluvial type wells and the installation of what
they call a ranny system. It ,is a caisson that is
approximately 12 feet in diameter that goes down to the
bedrock. And from there laterals extend out towards the river
that are like well casings, slotted well casing so that if
they need to be rejuvenates they could be by purging them. The
source that is recharging these is the river and as far as
there being a settling I don't believe that will happen.
Glasgow/ I am specifically speaking about the silurian and the
Jordan. I am not talking about the Alluvial source. I am just
talking about the Jordan. I am talking about the cone of
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#7 page 33
depression created by your deep wells, not the shallow wells.
The deep wells are ones that are down at the 400 foot level
and potentially the 1600 foot level. But really it is the ones
in the silurian aquifer that I am speaking of and this drop in
the water table is what would create the consolida,tion of
soils above that water table and that is where you would get
a potential shift in the soil which may be imperceptible to
the human eye but this can stress that pipe and that is what
I am saying. That study has not been done and the risk
assessment has not been done and Mr. Busby, I talked to him.
I know he is a lawyer and he does speak for Williams Brothers
Pipeline. I didn't get the jest of that conversation when I
talked to him. I mean, that this was a safe procedure or a
save thing to have in your Alluvial well systems. I got kind
of exactly the opposite that this would not be acceptable in
an Alluvial source and I think the DNR would be a good outfit
to question on this particular matter, too. As long as Ed is
here, do you have DNR approval for this site. Has the site,
itself, been improved by the DNR for a water treatment plant?
Do you know that Ed?
Moreno! Right now the reports that we have been generating have
been submitted to he DNR for their approvals. The review has
not been completed at this time. As far as that is concerned.
As far as the Silurian and the Jordan aquifers, currently we
are working with a group of like a committee. It includes the
Iowa Geological Bureau which is the branch of the DNR; the
U.S.G.S.; Johnson county Health Department; ourselves; and our
consultant to look at the Silurian and doing some pump tests
and through that we are also in communication with residents
up north who have contacted us and others who have contacted
them to keep them apprised of our activities and we would be
submitting to them and have had numerous meetings with them
telling them of our concerns as you spoke, Jim, and the need
for us to step into this aquifer gradually and to do the pump
testing that will be required to verify the impacts and we
have been very straight with them about that and will continue
to be and to utilize this group to continue on our inquiry of
that. So we also have those concerns and that is how we are
addressing them.
Baker! Ed, can I ask you a question about the same thing? A
clarification. How much do you know about the Williams
pipeline that runs by the Coralville wells and what has been
the history of that relationship or proximity?
Moreno! My understanding is the same pipeline runs by those wells,
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#7 page 34
their wells and I guess my opinion about it is I guess it
would be how we deal with all safety issues. The first thing
you would look at is to remove the hazard and even though it
may be a minimal risk I think we should seriously consider
that because we don't even want a minimal risk. The second
thing you would do is look at engineering devices which could
be a slurry wall and all kinds of monitoring wells that would
let us know if something is going wrong and then the third one
would be to outfit everybody with protective equipment. I
don't think we want to do that. So, I would recommend first
and I think we are on the inquiry of that.
Baker! My question is do you know of any history that Coralville
has had with problems with the same pipeline going by their
water wells?
Moreno! No, there have not been any problems.
Glasgow! Larry, Those are not Alluvial wells.
Horow! You are not talking about alluvian. You are talking about
Silurian.
Glasgow! Those are two different things. The cone of depression
created by the deep cells causes the rupture to the pipe which
destroys your Alluvial wells.
Horow! But Coralville has what-silurian and Jordan? Those are the
very same types of wells we are talking about.
Glasgow! That is right. The pipeline-It is the Alluvial water
source that I am talking about that will be destroyed if this
thing ruptures. That is what I am talking about. But the
rupture potentially would be caused by the shifting in soil
caused by the pumping frClm the deep wells. Everything that you
are doing out there. You have got three different-you got
silurian, you have Jordan, you got Alluvial and water intakes.
So there are really four water sources but they are all
interacting.
Horow! Thank you, Ed. You have got about two more minutes.
Glasgow! So this is a danger or hazard or whatever you want to call
it that I think you really better think about before you pick
this site b~cause there are some costs involved related to
either removing the pipe, keeping it there and monitoring it,
and potential damages in the future. Now, in Coralville last
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#7 page 35
year a pipeline got struck by lightning. It wasn't a gasoline
pipeline or a fuel oil pipeline like this. It was a natural
gas pipeline. Now, that is just one way this pipeline can get
ruptured! I mean it can get ruptured by human interference
which would be the construction on this site. You guys almost
ruptured it yourself .when you were out there drilling. I mean
you drilled five feet way from the pipeline without any-no
markings on the pipeline or anything else. So those are the
things that can happen. I think it is a bad situation to have
that in,with your Alluvial sources. My other point really is
you can save $3 million right now by taking this site over to
the other side of the interstate. Now, in the cost of this
particular piece of ground you got $4.4 million. Now you said
Cedar Rapids was just the plant site. Well this is the plant
site and maybe a little bit more but you haven't included the
cost of the land that you are purchasing from Meardon. I don't
assume that is in that $4.4 million.
Horow/ Correct.
Glasgow/ So you still have more land costs to come down the road
here. You have got Meardon's site, you have got transmission
lines, easements, things like that. So we are not done
purchasing land here either. So I guess the main thing is if
you really want to reduce your rates, take a look at going
across the interstate, look at this other site. I don't know
why it was discounted in the first place. You save yourselves
$3 million in land. Y~u save yourself a lot of money in
transmission lines. You don't have a gas pipeline over there.
You have got good park ground. So, why eliminate this site? Is
there an answer to that? '
Horow/ Jim, you have got like one more minute. You have already
asked this question on other situations. We can answer this
but then that is it. Ed, would you like to answer this
question?
Moreno/ Our investigation of the Alluvial sands entailed borings
from north of Butler Bridge on down into city Park, Terrill
Mill Park, and those areas. The peninsula is also a source of
Alluvial water based on the sands and gravels that are in that
area. And yes, our intention is to utilize those sands and
gravels to be a source of our water. Looking at the sites the
one that we are looking at, we identified our preferred site
based on the sand and gravels, based on location that is north
of the interstate, it would preclude contamination from a
spill on that. So when we are looking at these we are kind of
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#7 page 36
looking through eyes that would kind of gage the vulnerability
of the site and access off of that is also in our decision. In
addition we are looking at a river intake that is north of the
interstate there that would be valuable to have above that
potential contamination source and that when into our decision
making. That was our preferred site.
Horow/ Also how would you get the chemicals from I-BO to that site?
It would have to be up over by the Elks Club and then down.
Moreno/ That is correct, yes. So the access of of the interstate
for chemicals that we would use at the treatment plant.
Coagulants, chlorine, those types, lime for the lime softening
process could easily come of the interstate into that site
versus going into town, through the Elks Club or-
Baker/ So as far as accessibility safety and a source of water, you
looked at both sites. The site north of I-BO is a better site
than the peninsula site?
Moreno/ It is our preferred site, yes.
Baker/ I assume that means it is better.
Moreno/ That is correct. Based on that criteria and vulnerability
of the site. That is what we decided.
Glasgow/ Tell them which has better Alluvial sands and soils?
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intending to bring up water from the peninsula that has
probably a larger capacity than on that site.
Baker/ But as far as all the factors put together, the north'site
is a better site?
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Pigott/ Thank you.
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Kubby/ Steve, will you outline because I don't know if I have seen
these specific figures about how we are going to get access to
that Alluvial water south of I-BO and on the peninsula. Is it
easements, is it buying property, what is the cost?
Atkins/ It is yet to be determined.
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#7 page 37
Moreno/ It is being negotiated.
Atkins/ We have met with Mr. Meardon. In fact we met with him this
afternoon to discuss that very issue. And there is a variety
of options. The owners of the property are interested in
selling. They have a perspective developer. The golf course
needs to relocate from my knowledge two of the golf holes. And
our interest is securing the Alluvial site because of
potential for the amount of water that we could get and we
have talked with their representatives and indicated that an
easement would be satisfactory for us. The purchase of the
land might be satisfactory. Just a variety of issues. It is
still very much open. That is how we left it with them.
Kubby/ And part of this is this whole issue is evolving and as more
input is gathered from the public, as the consultant looks at
more options, the proposal is evolving over time.
Atkins/ As you produce options and you pursue the source, as I had
mentioned to you in passing, if that Alluvial system produces
the kind of water that we think it might, it has a direct
affect upon the treatment process and capacity of the plant.
So you end up making a tradeoff there. So there are certain
economies of scale that we trying to get.
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Kubby/ As this is changing all of the time it would be great to as
soon as there is any change in direction to be notified about
it. People are asking us questions.
Horow/ Jim, can you-
Glasgow/ Susan, I have an answer to everyone of those questions.
#l-if you want to take your raw water source above I-SO, run
a pipe up there and take it. It is not a major problem. #2-if
you want to access to the peninsula site, put a bridge across
to Coralville at sixth Street. It will cost you approximately
$1.1 million, They just did a bridge in front of my house last
year, the county did for $1 million. You could save that much
money just by not buying the sand plant out there. Also it
would give you secondary access to Foster Road which Karin
Franklin has been wanting for a long time. It will get you so
you don I t have this tie up up there. This will give you
another outlet to that whole peninsula. Now, those things that
you mentioned can all be addressed. You are not really looking
at this as an alternative site. And what I am saying is if you
look at it as an alternative site right now you will save
probably $3-4 million.
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#7 page 38
Horowl Thank you.
Rusty Martini I Ii ve in Iowa city. And it is an honor to be
following Jim Glasgow since he has basically driven this
debate and I think moved it some direction which are in some
ways unfortunate to the citizens of Iowa city. The site is not
the most important thing here. I think in the minds of a lot
of people when you talk about raising $180 million, the
largest capital expense I am sure the city has ever
undertaken. How you raise that money and what you spend it on
is certainly should be upper most in our minds. I am ,here to
advocate tonight that you do pass a rate increase. I favor a
flat rate increase. When we think about who should get the
benefit of the economies of scale I think it should go to the
people who provide that economy of scale and in this case that
is the residence and homeowners of Iowa city. The other people
who are providing the most of the money that is going into
this and using the most water. A flat rate means everybody
pays the same per unit of water. So it is an incentive for
everybody to conserve and businesses as reported in many
places can save a lot of water. They have the ability to save
more water in some places than others. Iowa City'S economic
development should not be based on being cheaper than other
places. I don't think we can compete on that level. We will
have to try to be' better, Have better schools, better
community, better services. There is always going to be some
town that is willing to make a deal for some community to come
in and are willing to give away a lot. I think it makes sense
for us to move to a flat rate on water. I think it is
interesting to see the landlords here trying to pit homeowners
against tenants. The city council and anyone who rents in Iowa
city as I do is well aware that Iowa city rents are not based
on how much it costs to provide housing. We have the most
expensive housing market in the state. Our rents are
artificially high. If landlords wanted to lower their rent
they certainly could. They can raise it. It is at the level
right now not because they have to maintain a minimum cost to
provide that unit because it is what the market will bear. And
as it has been mentioned it is not going to be a large impact
on tenants. And even if you do choose to stick with the
declining rates you have no knowledge that that was going to
be passed onto tenants. I said the landlords in this community
do not have that incentive. They are not forced to compete
because we have such a tight housing market. As far as trying
to decide what kind of plant to build and gain we are not
talking just about the water plant so much as you have seen
articles in the paper. We are set to go. This is a $50 million
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#7 page 39
water plant. The paper says we should go and vote on it. We
have heard all we can possibly hear about it. But then of
course there is the other $50 million that is the bonding,
maybe there is some way to save money on that. And there is
the $90 million wastewater plant we have to construct and have
to pay for it. I don't think we have had a full enough debate
on this. Think about all the time that goes into say a school
bond issue. I don't think we have had that kind of debate
here. So I would encourage you not to make any more of a
commitment than just passing say a 20% flat rate increase, We
need to start raising the money. It is criminal that we didn't
raise the money before and I know that many of you were not on
the council that made that decision but we can act on it now
and start to set that money aside since we know it is going to
happen. It will save us money later. But as far as figuring
our what to do. Rather than have this debate between the city
council folks like myself who come up and I sort of half
understand some of the technical point and maybe you half
understand some technical point. why not get together
questions from the audience and we hear a lot of the same
questions. Let's get the 10-15 questions, group it together
and then have a meeting where you go through it point by
point. Don't have Carol sweeting do it. She has been doing a
great job. She had been running allover but let's get the
people from Howard Green. Let's get the real experts there,
people who can speak authoritatively on these issues and have
the agenda published in the paper in advanced. Spend some
money on it. Spend some money on it. Get a full page add and
put the answers in the paper. Try to combat some of this
misinformation. otherwise we are going to continue to be
focused on side issues, not the main issues. I would hope that
you would do that, consider that. I think we have to have that
public debate. Either we are going to do it now or we may end
up doing it after. Another thing about doing some sort of a
limited question sort of motif, you could say we are only
going to do this for an hour and a half. I don't know how much
of the audience is listening now. I don't know how much the
audience is going to be around as at the last p.h. when you
finally get a chance to talk about it. I think the p.h. format
is not really the most constructive way to reach some
resolution of it. So I know you have a tough job and I
encourage you to keep on working.
Atkinsl Susan, may I make a comment please? Last week members of
the staff and the mayor met with the Press citizen, Rusty, to
do just what you are suggesting. I understand they are going
to run an extensive kind of a Q & A format in about a week to
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#7 page 40
ten days. I am not so sure of the exact schedule. So hopefully
that format, where we answered questions from the reporters,
will do some of the same things you are suggesting.
Martin/ That is great along with public, education to make it aware
of where the city's current proposal is. But I think people
are really interested in having some dialogue that would go
back and forth. I understand.
Atkins/ I am not disagreeing with you. I just want to say that I
think that to the Press's credit and this was their idea to
put something together.
Martin/ Well, I am glad they are doing that.
KUbby/ And I 'think I appreciate the multi media type of thing that
you are talking about, Not everybody reads the newspaper or
has cable to watch cable that we need a place to be face to
face with people.
Martin/ And try several different ways to do it.
Baker/ Sue, I just want to say that Rusty is aware that a lot of
that has been done and a lot of it hasn't gotten through.
Different formats have been tried. We have done cable, we have
done neighborhood meetings and you are right, we can always to
more. So go ahead.
Martin/ And I know that you have been working on it and I have been
working with some of your-and coming to these meetings for the
last year and I am finding that I am continually finding out
new things. The Meardon land situation, I didn't know that
until sunday night. It is just a very complex issue and it is
not a small matter and I think this can be a tremendous
benefit to us because there are a lot of complex issues that
deal with other things that we are dealing with down the road
and if people are paying attention, this is an opportunity to
go with it.
Horow/ We have go to-
Baker/ Rusty is one of the few people that brought up-focused in on
the sewer issue as well and I noticed we haven't so far
discussed the sense of urgency on the sewer as opposed to the
water plant.
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Atkins/ That permit has certain limitations spelled out in the
permit. We are now working with the DNR to have that permit
renewed and in renewing the permit we must meet new ammonia
standards as a part of the Clean Water Act. Part of the
permitting process is such that we need to meet their new
standards which we cannot do immediately. But in the
permitting process we then will negotiate with the DNR and
have a schedule of activities that allows us to continue
operating our plant. We will construct the new facilities in
order to accommodate the change in regulation and thereby they
will grant us a new permit. If they do not grant us a permit
and ewe continue to discharge then we are in violation of the
federal law. Does that do it, Linda. Okay.
Baker/ So, are you saying that there is a greater sense of urgency
for wastewater than water?
Atkins/ Absolutely, yes.
Horow / Anna.
Anna BUss/ One point of clarification as a property manager in Iowa
city, not all of us charge what the traffic can bear. Some of
us are on very tight budgets contrary to what some people
believe and the other thing is that this is one issue where
for once the tenants and the landlords seem to be kind of
trying to work together. That said. In the last few weeks I
have talked to a lot of people. I found out, like a lot of
other people, more about water than I probably care to. And
although that a lot of us recognize the need for water and
sewer, both improvements, and we talk about them as one, there
seems to be a great deal of confusion by the citizens as well
as the officials about the best way to proceed on the issue.
Some of the issues that have been brought up are financing,
rate increases, the impact on the citizens, the size of the
project and the land that has been brought into play. Many
different options have been presented on how to pay for this.
The pay as you go as been an issue, gradual rate increases,
the 75% hit all at one time, and a city tax option. Please
consider that when a homeowner or a person in business or a
manufacturer has a major project to accomplish they plan ahead
and they set aside the money for it, they consider aU the
financing resources available to them and the cost of those
resources. Money costs money to borrow. The cost of borrowing
$91 million boggles the mind. The interest rate on this, no
matter how low it is, is unbelievable. When you buy a home,
the home that is maybe $50,000 is, by you are done paying for
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it, is three times that cost. If you take $91 million times
three the bottom line is that is a big payment every month or
however you want to make your pa~ent. That has to be added to
the bottom line of the water and the sewer project. Both of
them. Another thing to consider might be that what we save in
interest on the pay as you go plan will offset the costs of
inflation. To build in segments might allow us to benefit from
future technologies because things are always changing. We
learned that when the mandates were changed on our 1990 sewer
project. That was suppose to take us well into the year 2000.
The changes, the government changed their mind and those
changes are now costing us'a lot of money. what will future
changes cost us for the two projects, water and sewer. This is
a project for all the citizens of Iowa city to benefit from
and the people who visit us. It is not meant to bankrupt us.
A lot of the things that have been talked about are helping
t~e low income, helping the elderly and people on fixed
incomes. But please keep in mind there is still a segment of
the population that is in the middle. We are average citizens.
We are not of great income nor are we of low income. And we
are feeling overburdened by this a little here and a little
there. So, please, when you start to look at this, consider
all of the options. Thank you.
pigott! Thanks, Anna.
Jim Freeman! I am still a resident of 1802 Winston Drive, Iowa
city, Iowa. I am not going to take much of your time tonight
because everything that I wanted to say is just about said.
There are a couple of questions I would like to ask and then
I am going to sit down and then you can ridicule me if you
wish. I came to this meeting last week also. And I heard of
$10,000 fines being possibly set against us and after calling
Washington, D.C., Kansas city, Des Moines, and talking to a
lot of people which I think the city council should have done
or someone should have done, I didn't find out that the most
fines that were levied at ~Iere $1,000 and $100 a day. ,So I
think it was wrong information. They have gone up to five-now
wait until I get done, please, Susan. This is my five minutes.
Horow! I really don't like wrong information or misinformation. So
I would like to confirrn,it.
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about this. Okay and I will give it to you after I get done.
All right?
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Horow/ No. I can't take that. Because what you would give me I
would see but the public who is watching this would not have
the benefit of it.
Freeman/ What would you like me to do, Ms. Horow?
Horow/ To who were you speaking and then I would like to ask our
legal department of our city manager where we got our figures.
I think that would be very helpful.
Freeman/ Okay. Just one minute. A woman who I had helping me with
this, who name is Mrs. Grimm. On November 30 at 9:00 she spoke
with Mr. Joe Zerfas, I don't know if I am pronouncing this
right, at the EPA in Des Moines. She also spoke to, that was
on the date that I told you, she talked to Carol Sweeting
here-no, wait a minute, let me get down the fact. Just one
minute please. She also talked to you Ernie. Okay, at
Washington, D.C. she was told to go back to Kansas city. Okay,
so I don't know who she talked with in Washington, D.C. And
she went back to Kansas city and ,she did talk to-you have got
me totally confused here which I should have had these all
done.
Throg/ But she talked to somebody in EPA as well?
Freeman/ Yeah, she did. She talked to somebody in the EPA office in
Des Moines. Let's put it that way. I have the dates and I can
figure this out for you if you wish Jim. But we did hear the
$10,000 fine and I felt like we were being pushed and to you,
Mr. Baker, I would like to ask you one question. You say you
are for the low income people. Have you talked to many low
income people? Have you? How are they going to pay this bill?
Can you answer me that?
Baker/ Do you want a quantitative number? I talk to them all of the
time.
Baker/ I work with a lot of low income students in-
Freeman/ Can you answer me sir? Can you answer me sir? How are they
going to pay for this? Are we, the middle class or upper
class, going to pay for them? It that how it'is going to be
done?
Baker/ We are going to look at all sorts of ways. We already have
programs in place that help low income families. Not just on
water.
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Freeman/ Yeah, but who is going to pay for this?
Baker/ We are going to look at the rate structure being affected
probably. The numbers involved I can't tell you right now. But
you tell me sir, would you prefer that we do nothing on the
low income people. On helping low income people.
Freeman/ I am for the low income people, Mr. Baker, I deal with
them all of the time. But I just wondered who is going to pay
for it? Is the city of Iowa city, are the tax payers of Iowa
city going to pay it? Or are we going to pay additional? I am
for them, believe me. I know probably more than you do.
Baker/ Then you want us to do something to help them but you don't
want to be involved in that solution?
Freeman/ Oh yes, I want to be involved in that solution.
Horow/ Any suggestions that you have got are fine. At this point-
Freeman/ I have no suggestions but I have been listening to people
here tonight and last week and I think you are totally
confused up there on what is being done here for the water
bill and the sewage. I think you are totally confused. I think
the total cost of $51 million could be $100 million by the
time you get done with it. Because you start building a
property, even when I was building a house, I was about $15-
20,000 off my house and I thought I could have built for a lot
less but I couldn't. Things were added here and there and it
got up to an awful lot of money. Can you guarantee that this
building is only going to be $51 million or the water plant.
Can you guarantee that with our sewage. That is only going to
be another 40- I am not talking about interest. Can you
guarantee that? Any of you?
Horow/ I don't think that is possible.
Freeman/ You can't do it so we might be talking instead of $95
million or $90 million we might be talking about $150 million
by the time we get done. Might, I said. Is that r.ight?
Horow/ How can I quote something is we are talking mights.
Freeman/ I am just wondering. It could cost that much, couldn't it?
Baker/ Sure, it might even cost less.
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#7 page 45
Throg! I guess I would like to respond. I think we have really
outstanding staff and I think Ed Moreno has demonstrated that
by the way he spoke before the public tonight. Really
admirable people. When we had the water flood a summer a year
ago, Ed and his staff did a fantastic job to this city. The
same is true with regard to Dave Elias and the sewage
treatment staff. They are really good people. Chuck Schmadeke
is really a fine engineer. I think he does a good job of
trying to bring in costs of projects on cost. So, sure, we
can't guarantee that it is going to be $50 plus $41 million
dollars. But they are good people and they are going to do the
best job they can and it will be as close to as whatever the
target dollar amount. They will as close to it as they can get
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Freeman! I don't disagree with you one bit. I was just wondering.
You know, we are already about $3-4 million above costs now
and if we buy some more property it is going to be more. What
about the wells north of 80? Are they going to go dry? Is that
figured in? Who is going to pay for those if it happens and I
would be a betting man, I think it would happen. I don't know.
I don't think the people have had enough information on what
you really want to do. I mean you went out and condemned the
property and paid plenty for it in between the two 'meetings.
Our input meant nothing to you, really.
Throg! Of course that was because there was a condemnation hearing
that had already started before had and the jury just happened
to go between the two meetings and they made their decisions
between the two meetings.
Freeman! Everything seems just to happen. But you wanted the input
from the people of Iowa city and really I don't think it makes
much difference what input you get.
Kubby! Also the p.h. is about the rate structure and not about the
specific proposal. It is how to implement the proposal that a
majority of council or all council has agreed to. It is
constantly evolving and there are some things that we are
going to have some control on like adding new things on later
that we could say no to. Some of the things like the cost of
land was because the condemnation and the amount the city
offered was refuted by the property owners. So it is the
property owners who caused the increased in the cost of land,
not the city.
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Freeman! It must not have been a very fair price to offer.
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Kubby/ Of course they are going to fight it because they want to
get what they can from a deep pocket. I mean that is just the
process we go through and citizens stood on the jury committee
and made a decision. But it wasn't something-
Horow/ Mr. Freeman, your time is almost up. If you have got any
suggestions on the assisting us, please call us.
Woito/ Susan, do you want me to respond to the penalties?
Horow/ Yes, I would. Mr. Freeman, could you wait a minute?
Woito/ Mr. Freeman. My staff did some research into whether cities
in Iowa had ever been subjected to penalties and I have a memo
here I would be happy to give you a copy. The city of
winterset and the city engineer and their city administer and
their former mayor were in fact subjected to criminal
sanctions and the city itself as well as civil sanctions and
the criminal sanctions were over $100,000. Not a day.
Freeman/ (can't hear).
woito/ That is the potential penalty. I don't think we ever meant
to imply that that in fact happened. It is in the law and it
is a possibility and if we all keep on track, God forbid that
we should ever be there. It has happened in winterset.
Freeman/ (Can't hear).
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Phyllis Tucker/ I have been a resident in the Iowa City area since
1963. So I have been here for over 30 years. I am one of your
long time residents. I am professionally employed in Iowa city
and I am on a fixed income. I have recently acquired and own
one rental property, a 12-plex, and the rental property
currently shows an operating loss and that is also not
counting depreciation. And what'I just want to very quickly
and briefly share with you is my concern about the rate of
increase and in particular the speed in which you plan to
implement this rate increase. Looking at my most current water
bills, water and sewage bills, August 3 through october 5 bill
for me was $248.99. The bill from June 6 through August 2 was
$296.98 and my bills are averaging between $25-300 per time
period. with an increase, looking at the increases, if we loo]e
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#7 page 47
at the increase of what that $248.99 bill would be as of
February 1995 that would increase to $341.33, Looking at that
hill again in February of '96 that $248.99 bill would be
$528.80. So the difference between that bill today, December
1994, and February 1995 which is three months from now is
$92.34 and this reflects a 37% increase. The difference
between that same bill and February '96 would be $279.81 and
that shows an increase of 112%, So we are looking at an
increase for tenants of $10-30 per month, quite a bit more
than what I have been hearing and this would be an increase in
rent for these people just considering the water sewer
increase. All, of course, operating expenses, taxes and
insurances, all of those things will continually increase and
one of the problems that I have is the rent that I am now
currently collecting will stay that way until August '95 due
to those leases that are in place. In August the rent must go
up to cover all of the other expenses as well, the taxes and
insurance and all of those things. So by increasing this rate
all at one time, I don't think I can make it to be very
honest. The tenants in the 12-plex are graduate students and
also young people that are at an entry level income and they
are all on fixed incomes as well. So what I really see for all
of us, both myself as landlord and tenant, is that we are in
a catch 22 in this situation. I, as a landlord can't do it and
neither can the tenants. And we are really the people that we
think are the ones that make, support and promote, this
community. So we hope that you please are able to find a way
to work this out for us, for all of us, and I am encouraged by
what I am hearing tonight about your consideration of other
kinds of plans. That is it. Do you have any questions. Okay.
Thank you very much.
Pigott/ Thanks for coming down.
carolyn Dieterle/ I live on Walnut Street and cutting right to this
chase. Assuming, which is risky, that my taxes. don't go 'up
significantly, my property taxes, it occurred to me the other
day that if this rate increase goes into affect that the net
result will be that I will be paying as much for my water bill
as I am per month on my property taxes which is a Ii ttle
extreme. I use about 150 cubic feet a month and this is
because I have instituted low usage in my house and I am very
careful about conserving water and my main-I guess I wouldn't
even mind paying that much provided I thought I was getting
value for the money. The problem with this is that I don't
think that we are taking a really global view of what the
problem is. Iowa city has grown faster than anybody ever
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#7 page 48
predicted and I don't see any end to it in,sight in spite of
all of the discussions there have been about controlling and
limiting growth. I don't see it happening. And, you know,
there are people who argue that the biggest shortage that will
confront the human race will not be energy sources like gas
but will be water, potable water, and that will be limiting
factor on us first. And for us to be talking about softening
and filtering the amount of water that we are talking about
for this price even that will then be turned around and used
for watering lawns, washing cars, flushing toilets, doing
laundry. If you look at that you see the obvious
ineffectiveness and inefficiency of such a system. We are
living mentally several decades behind where we are going
weather we like it or not. We are not going to be able to
think of ourselves as being above the condition of third world
countries for the water that comes out of the tap is not
potable water. How many people in this community who can
afford it drink water out of the tap right now. They don't.
They buy it. And in a way it makes a more sense that way. It
would make more sense for the city to make a system of reverse
osmosis water that for the cost of your rate you would be able
to take your own container and get the water that you drink
and don't bother to try to treat all the water that we use. If
you only look at the problems of chlorine and the carbon and
what is going to happen with the water softening process
residues you have to start wondering about it. What are we
going to soften the water to. How many grains of hardness?
Horow/ Ed?
Moreno/ The proposal or target would be about 140 parts per million
because calcium carbonate which is about 7-8 grains.
Dieterle/ Well, at 7-8 grains of hardness we are still going to
have to use detergents. It is not going to be what is commonly
considered soft water?
Nov/ However it is going to be a lot softer than what the current-
Dieterle/ We went through this whole argument back in 1969.
Nov/ I want Ed to say what the current hardness is so we have an
idea of what is going on.
Moreno/ You are accurate. The softening process is designed in the
treatment plant to assist us with more than just hardness
reduction. It is in there as a second stage to allow us to
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#7 page 49
remove organics and to' stabilize the water because we are
obtaining it from these multitude of different sources. So,
currently at the existing water treatment plant, if you looked
at the chemistry and looked at the total dissolved solids you
are talking about here, it is really very high, very low, very
high, very low. And so we will be addressing that as well as
what is going to be coming, which is enhance the surface water
treatment rules that will require us to remove levels of total
organic carbon that we ill find in our water to certain low
levels that will allow us to utilize chlorine that will not
create the taste and odors that we experience now due to our
elevated levels of total organic carbon. It is a process to
allow us to remove more organics.
Dieterle! That is because we are intending to drink it, is that not
correct. That is why you want the chlorinated hydrocarbons. So
that because we don't want to be drinking them.
Moreno! Yes, it will be potable water.
Dieterle! What I am saying is that -
pigott! I think there is a underlying question there maybe Ed you
can address which is why don't we just have one pot of water
that we just use for drinking and treat to the high standards
and then let the other stuff that we water lawns with and Ed,
may be you address why we have to do that or someone can?
Dieterle! The thing is if you are saying that it is the federal
government. The federal government is living in la la land for
the last 75 years anyway and all you have to do is look at HUD
and CIA and 9!10's of the rest of it. The point is is that if
we are going to soften it to 8 grains of hardness, even if it
to reduce the carbon so that you can use chlorine on it, it
still bothers me because they are talking in the more
forethought journals about outlawing the use, of chlorine
because of its environmental affect and when we are talking
about using carbon filtration what happens to the spent carbon
and we are talking about softening the water. #l-what do we do
with the lime residues afterward and #2-what is the ph going
to be of the water, If the ph of the water is significantly
higher than 7 we are looking at gradual deterioration of the
piping and we are looking at the idea that we aren't going to
be able to use it anymore on watering our lawns or our
flowers.
Horow! Carolyn, your time is up but Ed, I would like you 'to at
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least address a couple of the questions.
Morenol Yeah, these are excellent questions and issues. The water
chemistry will be changing somewhat significantly. The
residual solids is what they call them and the sludge Will be
land applied on farm land. It can be used as a soil
conditioner and to raise the ph. The ph of the water will be
higher than what we have right now and concerns about what
will happen when you change the chemistry in our system are
our concerns also and that is why you look at the stability of
the water and you adjust things accordingly and what I could
see for us is kind of backing into the shift in water quality
with respect to hardness to make sure we have a foundation in
our distribution water main so that we are not cutting lose on
anything and introducing lots of information about the change
in ph and s 'O,l.ids and other issues related to the change of
water quality.
Horowl carolyn, you are out of time.
Novl Well, one of your qUestions concerns the idea, of two
distinctions between the water we drink and the water we don't
drink and as far as I know they test water as it leaves the
water plant, not as it comes into your house and every drop of
water that leaves the water plant meet the current standard.
Dieterlel I understand that but I am saying that in the main, you
know of us are going to be pushing up daisies by the time you
know we get this thing paid off and I am saying that by then
it is going to be inadequate and we are going to be farther
down the road toward the realistic view that I just espoused
earlier that we cannot hold ourselves above everyone else in
the world and think that every drop of water that goes through
our pipes has got to be potable water. It is just not a
tenable solution.
Novl Maybe some day.
Horow I We are going to end this at 11: 00 whether everyone has
spoken or not. This is getting-we are getting too much. Hey
folks, come on.
Pigottl It is a big issue, Sue. It is huge.
Horowl Do I have four votes to keep this going?
KubbYI Yes.
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Horow/ okay, I got out voted. Go ahead Gary.
Gary Sanders/ I know that it has been a long night and you know
that I know so little about geology that when I hear the term
Jordan Aquifer I think they are talking about something over
on the border between Israel and Jordan, Really I am
completely lost but I will tell you what I do know a little
something about and that is politics and a little something
about history and you guys are in a pickle and it's not of
your own making. You know you don't have an unfunded mandate,
you have an unfunded responsibility. And the responsibility is
to provide clean water for the City of Iowa City to drink and
cleaner water as effluent into the city so we are not
poisoning everybody downstream. Now, the unfortunate part is
there is a couple of facts here that have never been brought
out. First of all our present rates put us down near the
bottom in the state of Iowa. This is a chart provided by the
City comparison of current monthly and sewer water charges
average residential users. We are down near the bottom and we
have been down near the bottom for some time. I would like to
refer to a chart on the wall. The first one is our growth over
the last 25 years and I know you folks can't see it but the
t.v. can see it and that is all that counts, right. The
population growth has been phenomenal here the past 25 years.
Then we turn to the left, okay. That is our sewer and water
rates and this is where the history comes in. That from 1965
to 1985 while this city was growing the sewer and water rates
remained flat. And it is due to previous city councils not
making provisions financially that we are in the mess that we
are in today. We let the era go by when we could have money to
build a water treatment plant with federal money. Gone. We let
that one go. Even more recently since that. I have got a memo
here from May 7, 1991 from Stev~ Atkins which advocated
preparing-he wanted to prepare information relating to water
rate adjustments so we could be prepared for this. Well, the
people on the council that basically were in the majority for
most of the 80's, Ambrisco , Courtney, and McD ,they never
raised these rates. Now, this is something that must be
brought out. It i snot fair and believe me I haven't voted for
all of you. But it is not fair, it is not fair that you seven
take the brunt of this. These people should be brought up here
and asked to explain this. I am sorry. Why did they-I think
they abdicated their responsibility. Steve, I think, fulfilled
his responsibility and I publicly disagreed with him in the
past. So, you know, this is not anything except pointing out
that this one fact that he advocated that this be raised years
ago and he was ignored. Political decisions were made and I
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#7 page 52
think mis-made. It is unfortunate that you people are taking
the brunt of it. I would like to see those three gentlemen
come up in front of the city council if there is a
continuation of the p.h. to explain themselves. I think they
woe the city an explanation. Finally, politically, it is
obvious you guys haven't sold this, okay. So what do we do? We
need these, all right. We need these badly. All I can suggest
and this is just off the top of my head what I have not heard
is any concerted public health officials at a meeting getting
together without talking about land issues' and these issues
and all of this and telling the citizens of this city that
this is a pUblic health issue. That is what this boils down
to. People died in Milwaukee from crytosperidium from the
drinking water. Does that not mean anything to people. I don't
know. Obviously it doesn't mean as much as you know the cost
which I can understand. So we have to come up with a rate
structure. So how? But I am calling for an emergency public
health meeting in this city. You folks could do that. An
emergency public health meeting where only public health
people, environmental engineers are allowed to speak so we
don I t have you know a lot of peripheral questions/People
could come, they could be in the audience but I think it is
imperative that public health officials and experts give their
view in a televised forum to the city to explain why this is
necessary. And in terms of the rate structure, again, it was
flat for 20 years. We have to pay the price now. And it is
perhaps impossible to find a rate structure that is fair. I
think that immediately we have to have a 20% increase, at a
minimum while other possibilities are considered. But tonight,
even, you could possibly pass this unless you are so driven
for this 40%. If you are so driven to the 40% then possibly
Larry'S suggestion that a one year while every other avenue is
explored. But even if you choose a cheaper option. Maybe
somebody, is going to come forward in some public meeting of
the environmental engineers that we heard a lot of good ideas
tonight. You know, maybe, who knows, put water purifiers on
everybody's faucet. I don't know. Dumb idea, okay, forget that
one. But we have heard a lot of interesting things from a
p.h.d. students, environmental engineering, you know, that
take time for people to sift through. But let's get some kind
of a rate hike which Steve proposed years ago so that we can
get going on this. Otherwise we are going to be even in worse
shape down the road. Thank you,
Joe Donatti/ Good evening. I live at 1514 Buresh Avenue. I work at
United Technologies, a major manufacture here in Iowa city. I
would like to thank Susan Horow. and Ed for coming over to our
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plant last week. She came over, took some time, take her own
time, to talk to some of our people who consisted of a broad
mix of people. We had automobile production people there who
are working for lower rates than some of the managers and
engineers are and we had engineers and we had managers. We
also had some representatives from Proctor and Gamble and also
Release International. I think everybody in our meeting kind
of realized that there really isn't any option about the water
issue. It is coming, it is facing us, we have got to react to
it. I think the question was how are we going to pay for it.
That is a big issue and I think that really the big issue in
most people who come to these meetings is not that it is not
good for us, It will probably be better than we have now. But
how is everyone going to pay for it. I would ask the council
to look at what options we have for basically paying for this
increase in the water rates and the sewer rates. At the plant
there I have been quoted some numbers and these are real
numbers. Our water rate and' sewer rate run about $10,000-
12,000 a month. Actually the sewer rate is twice the water
rate as far as the cost goes. I am not sure if that is
particular because of the plant or if that is the way it is
with our homes. But the sewer rate equals your water rate it
costs so they are both equally expensive. If we go to a flat
rate we figure it would cost us some where and this is just
approximate numbers, maybe $25,000 a month. currently our
utilities run $180,000-$200,000. So you are looking at maybe
10-12% total utility cost. So water and sewer is not the big
impact on our operation. It is there but it is not a major
impact. There are ways and I am not quite sure if it will
happen, we could conserve water in our plant. Put in equipment
and recycle it but if we do that what happens then with the
money you are depending on receiving. Does that mean the rates
have to go higher. So conservation doesn't seem to be the
answer to part of the problem here. Homeowners can conserve,
businesses can conserve, so conservation may not be the
answer. So I guess the question is I don't have an answer but
what are the alternatives do we have for reducing the impact
of cost to the homeowners and to the business. Can it be
spread out over several years like I read in the paper
tonight, the Press citizen. It seemed like not too bad of an
idea. So I think really the bottom line is basically how can
we pay for it and minimized the cost to the citizens, Thank
you.
Throg/ Joe, may I ask you a question, a clarifying question? I
understood you to say that you are currently paying something
like $10,000-12,000 per month for water and sewer and that
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#7 page 54
with the flat rate, I guess two years stay down, but the flat
rate would be about $25,OOO?
Donatti/ We are' estimating and I didn I t really sit down and
calculate it. I was talking to one of our environmental
engineers here and he said that if you double the rate now we
would go to $24,000 or maybe $20,000 so a flat rate would add
another $5,000 per month on top of that.
Throg/ That is what I was wondering. So it would be about 25 for
the staff's proposal and then maybe another 5 for-
Donatti/ Don't forget, we can conserve water. So we can put in
systems in the plant to reuse the water. Now what is that
going to do to the city rates. I mean I am sure proctor and
Gamble can do the same thing or Release or Oral B, you know.
And I don't know how much you are depending on our funding of
the system, you know.
Throg/ The real question is the affect on revenues and so if you
increased-if you shift to a flat rate and couple that with
conservation for the larger user we might still end up with
more revenues at the end. I am not sure because we haven't
done the calculations.
Donatti/ You will get more money with a flat rate, no doubt about
it. But what happens if we start using half the amount of
water that 'we are using now?
Kubby/ Right and what we have built into the rate structure is a 5%
decrease in water usage.
Donatti/ I guess the question is the business has to see some kind
of an incentive too. I mean, let's face it, we have to make
money. We don't get money given to us. So any expenses we have
to payout of our pocket whether it is utilities or taxes, we
have to overcome this somewhere in the operation so that we
can continue to make the profit margin that we have to operate
with. So, but I guess the question in mind and we can conserve
water. I was talking with one of our engineers last week after
Susan was here and I said we might start a program to look at
what we can do in the plant to conserve water usage and sewage
usage. So what is that going to do to what we are looking at
here, you know. Is it going to raise the rates for other
people in the city as well as ourself. The conservation which
is suppose to be what we are trying to do is not the answer.
It is not going to help us.
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#7 page 55
Horow/ We have figured that if it does, a high response to
conservation measures, more than what we have planned for,
indeed the costs could go up.
Donatti/ The question is how can we afford this without hurting the
people who are making $8.00 an hour or people who are making
$6.00 and even some of us who are making a lot more because I
hear from my wife all the time, you know, even though you make
a fairly good salary, it is never enough you know. So
somewhere the money has got to, come to pay the bills
especially at Christmas time. But the thing is I figure my
water and sewer bill and I don't know if it is average. It is
about $80 to $100 every two months. That is with a family of
four and my kids run the water until the hot water turns cold
in the shower. Even though you tell them to turn it off and
don't take long shower, they still take long shower. So, I
mean, I am looking at maybe $200 a month, every two months,
$200-$250 a two months of water and sewer rates. I mean mine
will double like everybody else's in Iowa City will probably
double.
Pigott/ Joe, can I just say something about the conservation issue?
You mentioned that conservation is not the answer but it is
important to note that the city has taken into account some
measure of conservation. I think the question is how much will
occur. '
Donatti/ But if you took in 5%, let's say you based you rate
structure, and let's say we saved 20%.
Pigott/ I understand that. Point well taken.
Donatti/ Then the other 15% or whatever the dollar equation is has
got to come back in higher rates.
Baker/ So is it your feeling that your company would conserve water
regardless of which rate structure we adopt.
Donatti/ We probably wilL with any kind of operation of a company,
you have to look at the capital outlay versus what you save.
And we work normally on roughly a maximum two year payback. We
try to get on less than that. If we have to put out $100,000,
we expect that would come back within two years for capital
equipment. So, I mean it would be worth us to come up with
some conservation for water.
Baker/ Even the declining rate is going to be a substantial hike
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#7 page 56
for you.
Donatti{ The flat rate I can tell you in talking to some of our
plant manager and some Of the other people and I am one of the
staff managers there they are not to encouraged by your flat
rate. They think that is putting a big penalty on business. I
can understand homeowners. I mean, I am a homeowner too. You
don't want to absorb all the rate increases either. Business
operates and provides jobs so I think you have to take it all
in consideration. That is all I have to say.
Horow{ Thanks, Joe.
Throg/ Thanks, Joe.
Kubby/ I think the conservation issue causing rates to go up, it is
important to realize and remind ourselves that 68% of the
revenue generated from water bills come from residential
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Pigott{ So they bear the brunt, is that what you are-
Kubby/ That if all businesses in town conserve lots of water, it
won't have as big of effect on that issue as if residences do
those conservation measures. So and all of the studies that we
have looked at and all of the paths is that people, there is
a dip in water usage right after the rate increase and then it
starts to creep back up. This may be different depending on
the magnitude of the actual rate increase though. I think it
is really hard for us to say we had to pull teeth to get the
5% conservation in the rate structure. I am very glad that it
is there.
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Wayne Peterson{ It is past 11:00 so I promise to be the shortest
commentator. Three things. I think you should reject criticism
for not doing enough on this issue. I support the plan that
you have evolved to and after you have finalized your decision
and the smoke gets settled I would encourage and ask you to
pursue water shed management on into the future and that will
take a multi city, multi county, urban-rural coalition and I
would like to offer my assistance, Thank you.
Horowl Thank you very much.
pigott{ Thank you, Wayne.
Dave Ressler{ lam going to add a little bit to what Jim Freeman
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#7 page 57
said earlier. I personally talked with Joe Zerfas, he is in
the water supply section at the DNR in Des Moines. Not the EPA
as Jim said. I talked to him this last Monday. He told me that
at present there is no administrative order for the DNR to the
city regarding the water and to his knowledge there is no
pending legal action against the city. And that is an exact
quote from him. He did say that if' at some time in the future
an administrative order is issued there is certainly adequate
time for the city to comply, fines are unlikely and would only
be used as the last resort if the city was 'not making a good
faith effort to comply. He said, and again this is his own
words, this is a very slow, bureaucratic process and it is
certainly not done over night. Also I talked with Jim Leach's
Office today and on several occasions previously and they said
that the city is basically what they are saying what they have
found out from the EPA is that the city is not really under
the gun. So I guess What I would urge the council to do is if
we could just go a little bit slower on this process. If we
could possibly postpone some action on this for 6-9 months to
see with the reauthorization of the Clean Water Act coming up
in 1995 by the new Congress. Maybe the new Congress will relax
some of these rules. It is a possibility. Maybe they won't.
Maybe we will have to go ahead with what they are discussing.
But I think with this large amount of money that we are
considering spending we do have the new Congress coming up.
This is certainly worth our time and consideration to slow
this process down and see what happens in the political
process in Washington. Thank you.
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Pigott/ Thanks, Dave.
John Rummelhart/ I am back. You couldn't get rid of me. I will try
to make my points short, too. It is a long evening I know for
all of us and I think do want to say I do appreciate the
effort that is going into the thought process here by
everybody involved
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Rummelhart/ Talk about shifting these increased costs in different
ways and flat rates and increased rates. My concern is the
cost of this plan. I don't care how the rates have to be
adjusted to finance it, the cost of this plant is at this
point is my concern and I want to suggest to all of you and
the engineering department that we look at reducing the
estimated costs of whatever type plant we end up with a fine
tooth comb. I'd like to go one step further than that in that
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#7 page 58
you might even consider allowing some lay people perhaps Mr.
Freeman, perhaps Mr. Barker, maybe even Jimmy Glasgow. Get in
on some of these meetings where the costs and the bidding's
taking place, because I can tell you what you get the right
group of people there, you're going to have some good
information from the city' to help reduce the cost of this
thing. I just know it because we're ones concerned about those
costs. So that's just a suggestion. Perhaps, I don't know how
that would be worked out. Perhaps it could be. But currently
we're over budget from two weeks ago about 4%. Just on the
ground, the cost of the ground. And that was what I was trying
to make my point. I'm concerned about these increased cost.
~ight now they're estimates. I would just like the council to
remember that your expert appraisers you have been relying on
in good faith throughout this whole thing have already steered
all of us astray by $2,400,000. This is just coming out of the
chutes. I hope that, I plead with you to question these people
as they continue to give you these rosy projections on what
stuff is going to cost. It's not costing them. they're making
money. It's costing us and it's costing all of us here. Just
keep that in mind when you're talking to these purported
experts. And one last point, karen if I may say, I take
offense at your comment I think about property owners looking
for deep pockets on the price of this ground. I just want to
remind everybody that there's a totally independent I think
it's county board, Condemnation Board, set up to come up with
those values, and just because maybe they've got some
different ways of looking at things than these appraisers that
we're hiring and costing all of us, maybe they've got some
common sense. Hopefully we continue with the process the
common sense theme will hold and we'll have some continues
feedback with some of the private citizens. It's our plant as
well as yours. That's all I'd like to say.
Throg/ John, can I ask you a question please? Your point about the
appraisal, the factual statement you made about the appraisal
turning out to be less than the Condemnation Jury awarded is
clearly true. But what I wanted to know is what did the
landowners estimate the cost of that land to be and how
accurate were they?
Rummelhart/ Well as I- I think it was six plus million, and as far
as how accurate, I would say, I can't, well I will speak for
them, If, this is the point I made at the condemnation
hearing, if somebody's getting penalized today, that round two
day could easily be valued by your appraisers at $6,000,000.
And that's if the current owners would have been in the
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process, in a faster motivational stage of putting their
concept plan into reality on that piece of ground. People have
different theories on how to develop different pieces of
ground. There's no doubt they were getting penalized for
developing it along the time frame they decided to develop it
in. The appraisers come in. They take a knife. They stop that
process dead in its tracks. Give it a few more years and bring
those same appraisers back with different facilities on that
piece of property, what's it going to do. It's going to have
a higher value.
Kubby/ Well just because apartment buildings or a golf course it's
worth more but that's not what the state of the property is
now.
Throg/ What is the marketable value of the land at the present
time?
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Rummelhart/ Well that's true. AII- I mean there- I guess I would
say- I think there's some- I mean- there's motivation on all
party sides, you're going to get some extremes. Somebody
comes- with appraisals coming in at $1,500,000 and the
condemnation board's price at 3.25, right there there's a wide
range. There's a range on the other side of the stick also.
They didn't- it wasn't awarded to be $6,000,000, but it wad
considerably more than the appraisals were. I'm just saying,
the plant's going to go and just be wary of what people are
telling you.
Baker/ Sue, I'm a little reluctant to talk about condemnation
proceedings right now because I actually have a lot to say
about that condemnation proceeding but it's not actually over
yet, and there may be some additional discussion about whether
the city might want to appeal those or not. But when it is
resolved, I would like to come back and say a few more things.
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Ed Barker/ You need two ingredients when you buy land. A willing
buyer and a willing seller. You did not have a willing seller
when you bought this property down south I understand you had
three willing sellers, therefore you got a pretty good deal.
And that's how it works. Anyway I'm going to go rather quickly
I hope. I had a lot I wanted to say but it's late and I won't
do that. One of the things I do want to say though is
following up on Jim Freeman and the other fellow. I talked to
Joe Surface. As a matter of fact I called one person and I
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#7 page 60
forgot to identify myself and when I started asking questions,
he asked are you from the Iowa city area. So they've been
busy. When I talked to Joe and I talked to Charles Furie and
I talked to the Washington Field Office and I talked to Mike
Murphy who is one of their legal people. Now steve Atkins,
your city manager is fulfilling his responsibility when he
gives you the risk factor. And in'some of these things that's
what he's doing. His risk factor position. And sometimes way
beyond what is really going to really happen. Same way with
the pipeline. You have a risk factor, maybe insignificant.
Probably no truck going down the interstate will spill water
in your south area is probably a risk factor that won't happen
and so forth. And so there are these risk factors. I know one
person went into surgery and the doctor is required by state
law to tell you the risk factors. You might die. And so forth.
And so that's his job, giving these risks and you've got to
weigh them. I think what you need to do and maybe you are as
city officials, is to work closely with the League of Iowa
Municipalities, the American Water Works Association, put
pressure on the EPA to be more reasonable which they're
beginning to do according, to the people who belong to the
American Water Works Association. And I think that Chuck
Deninger understated the message he received today from
Grassley and Leaches office. He was talking to me about it in
the hallway. I think they were too modest in what they might
be able to do. But I want to emphasize that thread that came
through in talking to all these people and in talking to you
individually some of you, have indicated that you thought you
were not given this kind of information. And I'm not saying
that- I have to qualify what I say with how I interpreted what
I heard. That has to be kept in mind, but this thread went
through it, and I won't take as much time as I was going to,
is, everything is negotiable: the length of time, time frame
and what has to be done, including the wastewater plant.
Everything is negotiable. We are not in violation in the
wastewater plant now according to the people that I talked to.
And the people in the Washington office were close to it and
so on and so forth. That's my interpretation of what I heard
these people say. Okay, now, when I got one bit of
information that I wrote, key key key information. You can
always enter into negotiations and tell this state how we're
going to proceed and negotiate a plan that is reasonable and
shows promise of being fulfilled. And so I say there is time
to do these things and again I emphasize that all these people
said that our people in charge of these plants, both of them
are superb people. They're doing an excellent job. They are
not really worried. In the little survey that I gave you that
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#7 page 61
we haven't talked about and we don't need to do that, the
thread that went through that, that they're not having
significant problems with the DNR and EPA on their water
quality. That doesn't mean they don't have to work. And work
hard. But they're not having real difficulties in meeting
those. That in mind, let's get through the thing that I wanted
to bring up that I have shared with you I think all of you got
your copies ahead of time.
Nov/ That was a kind offer to send us copies ahead of time.
Barker/ Pardon?
Nov/ That was kind of you to offer to send us copies ahead of time.
It's a big help.
Barker/ okay. Thank you. It wasn't out of the computer until this
morning so that's why it didn't get to you until today. In
theory you know what it is. Delay the wastewater treatment
plant two years. Delay the water treatment plant five years.
Construct a fee schedule of 11%. Increase annually through the
year 2001 on the water revenues. And by so doing, with your
base revenue thing, you'll have an $11,000,000 down payment
and it's like the guy who wants to remodel his 100 year old
house or buy a new one. We have a 100 year old water plant and
he certainly doesn't go to his employer and ask for 115%
raise. He gets a plan. The bank works with him to do that. So
in essence we've plugged in an inflation factor. We've plugged
in an interest rate f~r the bonds, I mean the CD's and I got
that from three local banks. We got the interest rate for the
water bond from the Wall Street Journal for water bonds. And
it comes in that when it's time to retire the bonds, there is
enough to make those bond payments and in the second year in
each category there is a $200,000 surplus to replenish escrow
funds that you've drawn on to buy the land, to operate the
plants, for inflation and so forth. Now I've presented these
materials to Don. We have not had a- I said shoot holes in it,
whatever you want. We have not had time to get his reaction
because we just got it to him the other day, but I think if
you study this plan, and have Don give you advice as to
whether it works or not, making the assumption that you can
postpone two years and five years, as to whether thes~ are
realistic figures. In think they are, and I urge you to give
these considerations, therefore the thing that I'm urging you
to do, to postpone a large increase. I think 11% rates
annually, bing bing bing, can do it. Now history on the
raises. I see in you materials that you talk about that we
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#7 page 62
haven't had a raise since 1991. All right that's true. I don't
argue that fact here, but it's not going to say that the year
previous to that the water rates went up 25%. And that the
year before that it went up, I forgot to bring that sheet with
me, but for a five year period t~ere was a 25- two 25% raises,
there's a 15% raise, there was a zero raise one year, we're
talking about just water rates, not sewer. And so there have
been raises periodically. I was told that one of those 25%
raises was to pay for the exploring of water down south of
town. And you have to do those things. And so forth but there
have been raises except during- after '91. But I say put them
in now at the modest rate of 11%, and you'll have your money.
It's a pay as you go plan. And it's workable in my judgement
and we- I would certainly not suggest you not go on this
without negotiations with DNR and getting their approval for
a reasonable plan. I also suggest that you have a couple of
people- lay people participate in those negotiations so that
they know that real people back there are affected by these
things, and I think it's a workable solution and I'd be glad
to answer any questions.
Horow/ You're saying 11% annually?
Barker/ Annually.
Horow/ 11% every year increase.
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2002, then not reduce rates after that but for construction at
least they would be leveled off. Now this does not take into
account, like let's say we did not have to do anything.
Everything's hunkey dory and we don't have to do anything.
This does not account for normal increases in operating cost.
We think that the amount of money involved here is probably
more. We think we've been conservative, because we haven't
subtracted out the cost of the land and if you continue to
borrow from your escrow and not pay it back for two or three
years, and I don't know if that's workable or not. Rely on Don
and steve's advice on that, that you could be able to do that.
So yes it's every year, then it levels off and there's surplus
of 400,000 a year to build up which could be used later on for
other things I mentioned: escrow replenishing and kind of
like recharging your wells I guess, putting the money back.
And to replace the north plant eventually which I'm sure is in
the back of your mind, no doubt is.
Throg/ And when would construction of the sewage plant or the
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#7 page 63
sewage investments and water plant begin according to your
proposal?
Barker! Okay. According to what I'm suggesting, it would start
exactly the same time it would now except two years later and
five years later. I mean, the beauty of this also is that I'm
not a scientist or water geologist or whatever and so I've
gone through those reports and I have no place to argue with
them. I'm willing to accept that as a reasonable plan, but if
in the mean time you find a better alternative and Howard
Green report says that you should 'keep in mind these two
alternatives, I think there's one over by 1-80 and Hwy 1. Both
seem to be reasonable satisfactory from the water and
geological standpoint. They're worried about this truck coming
down the highway and crashing into the bridge and spilling the
water into the river. It's about like the pipeline thing
probably. And they say keep those two sites in mind if this
north site north of the interstate doesn't work out. That's
what the report says, I have a copy of it right here. And so
the other part of it is, this will give- I understand that
there are reasonably significant talks going back and forth
between the city and university. The university's going to
have to replace their water plant, but they're in a little
trouble because they spent $7,000,000 recently. They hate to
see that be lost. But if they know we're going to come on line
five years later than we had planned, there may be some real
opportunity for discussion with the university because it's
kind of silly. They use our sewer now, do they not.
Horow! Yes.
Barker! They put their mercury and so forth down there. That's what
one of the guys in Des Moines told me. So they just as well
help us on the water then.
Baker! Ed, I ask you again, you use the word, assumptions. And
that's with a capital A. .If your assumptions are correct this
financing makes sense. I don't necessarily disagree with that
if your assumptions are correct than indeed we have time. Now
I want to get clear what I think your position is. That you do
or do not agree that we need a new water plant some time.
Barker! Yes, I do agree.
Baker! We need it sometime.
Barker! But I'm willing to, accept that because I have no way to
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#7 page 64
judge otherwise and Ed Moreno has been helpful in convincing
me. There is not room and all of that.
Baker/ But you feel that there is a very great likelihood that the
schedule that we are looking at right now is unnecessarily
harsh on the city right now.
Barker/ Financially, yes.
Baker/ Financially, yes. I am talking about legally as well.
Barker/ I don't think-From what I hear from the DNR if I can rely
on what they told me and the thread that came through in
everyone that talked to, that we are not on their list.
Baker/ We got a lot of people quoting the DNR and offices here and
there and one of the things obviously that the city staff is
going to have to do is get, if possible, on record somebody
telling the city these things and then let us evaluate it.
Barker/ Absolutely.
Kubby/ Like the FAA.
Baker/ That is what I had in mind. They loolc at their audience and
they will tell you what you want to hear and it is not a
reflection on you at all. So we do make that effort, if
possible, to put them on record with us and not with you and
not with anybody else. So you are assuming that we can do it
and this rate structure will take care of the plans in the
future.
Barker/ I am assuming there is a reasonable possibility that
negotiations can be successful. This is not a guarantee. I
can't speak for anybody.
Baker/ And we are not negotiating for no p'lant, we are not
negotiating for less restrictive standards. We are negotiating
time.
Barker / I am saying what we are doing is we are taking into
consideration the health, which we have to do, the
environment, which we have to do. We haven It taken into
consideration the financial viability of the people involved
which I think we have to do.
Baker/ It is an intriguing idea.
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#7 page 65
Horow/ Thank you.
Nov/ It is similar to the idea that steve had which is start now
and now be slowly.
Chuck Denninger/To clarify I think that is what I have been
alluding to when I indicated that the federal official would
be happy, not happy but would be willing, okay, to facilitate
a meeting between the EPA, DNR and ourselves. That is exactly
what I was alluding to, get everything out on the table, look
at what we are dealing with and then figure out how to
practically sell it.
Baker/ Thank you.
Art Kistler/ I just have a couple of comments and questions about-
The article in the paper today, the Press citizen, with your
comments from yesterday and I thought that it was quite
interesting. One thing I wanted to go over. Ernie, you made a
comment about saying we can change the future rate increase
any time we want. Is that,a true statement? If we go ahead and
vote on this increase at this time maybe by '96 we don't have
to have-We could change this?
Lehman/ Change it in January. Change it any time.
Kistler / I am looking at the example I made before about the
condition of the plant now and I think it is very crucial that
we need to get plant :;;tarted now to replace this existing
plant because in my opinion I don't think this plant is going
to last another five years and we are looking at construction
completion in late '96 or '98. Okay, so if we delay
construction two years we are looking at completion year 2000.
We are going to have to put some lot of money into the
existing plant just to keep it running those years and so I
would like to stress the importance of getting the ball
rolling now and don't delay this any longer. Yes, it is going
to be a hardship for everybody. You know, like the one
gentleman stated the previous councils have just kind of put
off any kind of a rate increase and now we got to pay for it
and so the sooner we get this going the better it is going to
be for everybody.
Horow/ Thank you.
Art Kistler/ I guess one comment I didn't make was construction
delays might increase construction costs. One point, as a
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#7 page 66
construction employee, construction delays increase
construction costs. You delay two years you got blo years
inflation. It could be $55 million instead of $50 or $100
million instead of $90-
Doug Jones/ 816 Park Road, Iowa City. I have heard a few things say
things which were dangerously close to let's see what we can
get away with in terms of negotiating standards. I don't
object to negotiating delays on construction so long as the
old plant can be preserved. But if we talk about negotiating
standards that sound an awful lot like industries that I
wouldn't be proud to emulate saying what can we get away with.
How low of quality can we get away with. How much can we
expose the consumer to risks without feeling any liability I
really feel that is a representable-a reprehensible point of
view and we should avoid it like the plague. There are some
other issues that have been brought up that are significant.
One of them is the land area required for the plant and the
land area required for the well fields. The actual amount of
land that we are talking about is very small by comparison.
For example, with the Cedar Rapids plant which keeps being
pointed to as a paragon of economy. Cedar rapids has purchased
a green belt along the Cedar River up stream of Cedar Rapids
that runs as near as I can tell for miles to protect their
well field. They have the wonderful advantage that they aren I t
dealing with the north corridor when they are going up stream
from their town. land along the bottom land upstream from
Cedar Rapids is pretty cheap. Land along the bottom lands
upstream of Iowa city isn't. If you look at that there are an
awful lot of places that might have been appealing that are
developed. The only site that I know of-there are two sites
upstream of the Glasgow property in question that I know of
that are appropriate. One of them is the Ox Bow immediately
beyond Butler Bridge upstream and the other one is the place
where rapid creek flows into the Iowa River which is also a
large alluvial area. The Rapid Creek site might be interesting
but you would pay a lot for pipelines to get water from that
far away. And with regard to the cost. Criticizing the
appraisal process seems down right wrong. The city's appraiser
told us the price we ought to be offering for the land and as
is quite appropriate they told us the lowest price we ought to
offer and jim'S appraisers told him how much he ought to ask
for it and they told him the highest sensible 'price he could
hope to get. that is normal. That is the way the real estate
market works. I know that is how it works when 'I bought my
house. To criticize the appraiser for the buyer for suggesting
the lowest reasonable price and the appraiser for the seller
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to suggest the highest reasonable price is silly. What
happened was exactly the way the process ought to work except
that we weren I t in free market. We were dealing with a
condemnation jury and the condemnation jury seems to have come
to a reasonable conclusion. with regard to the risk of the
water site, Jim has talked about the possibility of subsidence
which is something that I don't really concern myself too much
with because Coralville is pumping the same aquifer and hasn't
caused subsidence declines that have broken pipelines.
However, the flood of last year broke a pipeline that crosses
the Iowa River. An 8 inch diameter pipeline crossing just
north of where Clear Creek flows into the river. It is an
abandoned pipeline. As near as I can tell it was either empty
or whatever was in it was diluted to much by the break that
nothing was involved. It was a three pipe pipeline, One of the
three pipes broke. The other three are still there and I wish
someone would take them out because there are in'the way of
navigation. I canoe on that river and I run into them. The
broken one is now on the river bottom and out of the way. We
do have to worry about the possibility of pipeline breaks
specifically at river crossings. This is amply illustrated by
the,massive fires in the south. That makes it very important
I think that our water intake be upstream of locations where
pipes could break. specifically upstream of here Williams
Pipeline crossing just north of the interstate. The large
alluvial area on the peninsula is qefinitely threatened by
upstream breaks and things that could seep into the alluvial
from an upstream break and so we have to look up stream at
Williams Pipeline Company. My time is up.
Horow/ Thanks.
Tom Werderitsch/ I live at 3 Evergreen Place, Iowa city. At least
I hope I still have a house to go home to. I told my wife I
would be home by 10:30. I will try to be short. A question for
I think Linda probably. And then four quick points which I
hope you will listen to. First is I want to make it straight
the a lot of people being upset here. They feel that the
council doesn I t listen. well, that is not true. The mayor
called me. I wrote a letter after the last meeting and I don't
want to really bring up the postage too high but-I really
goofed that one up so I owe the council and the city about 29
cents a letter but that being being besides the point, mayor
Susan took about an hour of her time to call me today and try
to answer with some information that I probably should have
know and that I was remiss in not knowing and I appreciate
that. You folks, and I am sure anyone of you could have
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called. I think sometimes in the heat of things people don't
give you enough credit. So that is the short thank you. The
question I have I want to address it to Linda because I think
it has legal implications. If for any reason there was through
this process a better site, could the city now at this
condemnation cancel the deal on the current property. Is that
legally possible?
woito/,we can abandon it. Yes.
Werder its chi You can abandon it with no- not too much problem
legally for the city.
Woitol Hopefully. I hadn't really considered it. It's certainly
legally possible.
Werderitschl Okay. Good. Well then to my four short comments, in
listening to a lot of things in the last two meetings. All
good discussions, some of which I agree with some of which I
don't. I came up with four possible things I think I as a
citizen here and businessman would come out of this whole
process feeling good about if . Number 1, I think if
you can at all moderate the rates, I think it's senseless not
to do anything but we need the wastewater treatment plant. We
need the water plant. If you could moderate it for the first
few years to see where you're going and how much money we can
save up before we actually start construction, I think that
would help everybody. Second would be once that is
accomplished, if we could define through the federal
authorities or back through your planning process the time
lines on how long do we actually have to have each plant for
sure in place. And being construction I know there's a time
frame just before that to build the building. Before there's
a legal process of accepting the plans and getting the bids.
Before that's the planning, session with the engineers and
before that is now. So somewhere in there I hope that there
would be time for the council to look at other possible
alternatives to this. At least investigations in to that and
if that whole time track comes back to next month, let us
know. We might not like it, but we have to accept it. If that
time line comes back to a year and a half from now, I'd like
to and I think we all would like to know that too. And if
there is a reasonable amount of time, six months or a year and
a half, that we don I t have to push past the process of
starting the rate. My third point I would like you to really
investigate some other alternatives. Not only the technologies
that were brought up tonight but perhaps even other sites. I
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know it's redundant but the airport site perhaps. I has a
nice, again I'm not a geologist, but again it has a quarry
site for filtering purposes. Surely from the FFA- That's
farmers- FAA they say we can't develop high rise buildings or
anything like that, maybe we can on some of that south land
use that as a possible site. I don't know. Maybe it's a dumb
idea. Also I think maybe we ought to look into a
regionalization again if we have time. Coralville and North
Liberty are going to face the same thing and it's been brought
up that maybe in ten years, maybe in twenty years. I don't
know the time line. But certainly maybe if we have the time we
ought to enter into discussions with them and fine, if they're
agreeable find a site that's mutually advantageous to all of
the communities and do this on a modular basis. Get our needs
and our projected needs for ten years designed to put in and
have an agreement so as their needs increase and ours do and
North Liberty's do we build the next module on and everybody
chips into it. As a thought.
Horow/ Tom, I have spoken to Kelly Hayworth about this and after I
talked to you. Two things are factored in here. Number 1,
Coralville just went out on the bond market for upgrading
their plant. In other words, that's already fait accompli as
far as they're concerned. But the second thing is that North
Liberty and Coralville do not use as much water a we do and so
it will take a while in a political spirit among everyone
concerned before they would be apt to think sharing with us
the cost that we have to take on for our way of producing
water. In other words our way of- our need of water, the
value, and the way it is produced are more expensive and
larger amounts than North Liberty and Coralville need at this
point.
Werderitsch/ Correct.
Horow/ And I think some of the future of talking about this is
something that we will continue to do. But it is not feasible
right now for the next- within the next decade.
Werderitsch/ Right. My suggestion was, perhaps I wasn't clear,
perhaps . But that we have to take care of our
own needs as I understand that. Maybe part of the plan as I
understand it was to build some growth potential into it to
and not just take care of maybe the next ten year's needs.
What I'm saying, maybe that can be scaled back a little bit.
Take care of the next five to six year's needs you know with
the next expansion being a cooperative venture. But take care
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#7 page 70
of needs for the near future.
Horowl okay.
Werderitsch/ Then the last quick point I have is I would encourage
you to, if it comes up on the floor tonight later on to reject
the idea of the flat rate that has been proposed. I know
Councilman Throgmorton and Councillor Kubby both endorse this.
I know there were several speakers who endorse it but, on the
surface it sounds well that's just fairness. You know, let the
people who can't afford it, give them a break by charging the
bigger users. But to me what is fair about the possibility, I
didn't say probability, about curtailing business expansion,
driving existing high using business away, then what's the
fairness. The rest who stay here, including the people who are
poorer will have to pay more in the long run. I really think
that is a very serious scenario. And quite frankly, it raises
suspicions in my mind about a no-growth policy of certain
members and of the community. And as you well know, I'm not in
that vein. So I would ask you to seriously consider, you know,
keep a declining rate. Keep people employed. Get more people
employed. Give them opportunities to upgrade their conditions.
Thank you.
Pigott/ Could I just say something real quickly?
Werderitsch/ Yes.
pigott/ I disagree with you about the no-growth issue. You know, I
think that the reason that I disagree is that if there were
truly a no-growth policy, you might see these people who
propose don't build a plant with any more existing capacity.
You know, I think that this isn't an issue of no-growth. It is
an issue of where do you distribute the cost. So I think
that's not a semantic difference, but a real difference. And
I'd like us to move beyond the rhetoric of growth/anti-growth
into a real substantive discussion about where we distribute
costs. I really don't think it's a matter of growth versus no
growth. I don't mean that as offensive, just really talk about
it in the terms in which supposed to be talked about.
Werderitsch/ Well, my concern is that being in business-
pigott/ I understand that.
Werderitsch/ Something comes and raises my cost that'll force me to
shut down, that's no-growth policy.
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#7 page 71
Pigott/ I understand.
Werderitsch/ Whether it's intended that way or not. that's the net
result. That's what I fear will happen.
Horow/ Thanks, Tom.
Werderitsch/ Thanks.
Pigott/ Thanks, Tom.
Harvey Wehde/ I agree with Tom totally. This is my other point I
wanted to make, that I read earlier with Jim. And in my
situation, Jim, I own an insulation company and our ~later
costs and sewer costs are $30 or $40 every two months. I
would- being a home owner I would be a lot better off by the
uniform rate in my own situation. But a lot of businesses
don't have that. I don't want to lose these jobs. We need the
higher paying jobs. We have over qualified people here in Iowa
City now that are doing jobs they shouldn't be doing because
there aren't really good paying jobs that they can get. Also
I don't want to lose the tax money that will be to help pay
for this plant going elsewhere. So this is my problem with the
uniform rate. I would benefit individually from the uniform
rate but I think the city itself and what just talked about is
my reason against it. For me it's come out better.
pigott/,Thanks, Harvey.
Ed Barker/ I am not sure. I want a point of clarification. I am not
sure if his remarks were directed to what I had said about
negotiation. My Objective on negotiations, particularly with
the wastewater treatment plant is time line.
Audience/ I was agreeing with that.
Barker/ Okay. It would be irresponsible to build a plant not to
standards and I have no intentions of saying negotiations
should be on that part. I failed to mention also in regard to
the fine thing and again, Steve is giving you the risk factor
and what he needs to tell you is far possible. But the $10,000
fine per day in Iowa has never been done. Susan, I believe,
told me that there was a $5,000 a day fine on the-
Horow/ We have had fines, correct me if I am wrong Chuck, $5,000
out at the landfill.
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#7 page 72
Barker! Was that per day or was that total?
Atkins! No, we were fined $10,000, a one time fine. Then in the
consent decree the schedule, if we did not comply, is $15,500
per incident.
Barker! Okay. It got your attention and you complied.
Atkins! Oh yeah, we complied. There is no doubt. It could my
attention a lot earlier than that. It was just to bad.
Barker! That is their point. When they are going to go to these
$10,000 a day thing, it is really flagrant and you generally
correct it, before that. There have been, in fairness to this
issue, there have been $1,000 to $5,000 fines given to cities
in total. Iowa city, I believe, was fined $10,000 on the
wastewater thing in total. So they are-they do exist. Not the
$10,000 per day and even if they do that there is a provision
for a citizens group appeal. So we would trip trop down to
appeal that for you. And one last thing, Steve, it is a 11:45
and in 15 minutes we will forget half of what I know about
water.
Atkins! You have got a deal.
Kubby! Is there anyone here representing the Chamber of Commerce?
We had requested that the Chamber give us a position two weeks
ago and even if they couldn't come up with a unified position
to talk about the issues that were raised during the
discussion. I have heard nothing on the phone, nothing in the
paper, nothing here tonight and I feel very frustrated by that
lack of response from the Chamber who should be speaking out
about this big.
Barker! I am a member of the Chamber of Commerce but I am not an
active member in these things but I do understand that they
are going to be discussing it later this week. Whether they
will take a position or not I have no idea. But it is on their
agenda to discuss within a group that has been assigned to
discuss this issue.
Atkins! Karen, I did meet with the Chamber Executive Committee to
take them through all the issues and Don met with-He and I
went to the Chamber together Thursday. He may have to go to
Local Government Affairs bec~use I don't know if I can.
Nov! Ed Moreno was on the agenda for Local Government.
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#7 page 73
Kubby/ It doesn't-we may be making a decision tonight and without
the benefit of a very important group of people who tend on
important issues to give a position and have a position.
Tom Werderitsch/ If I could comment somewhat on that? I happen to
be a member on the Board of Directors of the Chamber and there
are two things. The business people who are members of the
Chamber are in no way avoiding the issue or not trying to come
up with a-You got to understand a couple of things. #l-The
process of any large group is that first of all the committee
which is in charge which is the Local Government Affairs has
to set this up and they set it up for Thursday. Then they will
take a position very quickly. They will come to the Board of
Directors and the Board will call a special meeting. I am not
sure, that is the president's duty to'call that and the Board
will consider it and will publish that as soon as possible,
The other mitigating factor as you well may have know is the
last eight months we have been trying to get a new Chamber
executive. A lot of energy has been spent on that. Plus,
without a leader in the executive position something are not
reacted upon. So, I hope you will bear with us. Believe me
that members of the Chamber are very interested and want their
voice to be heard.
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Throg/ Interesting topic. Part of what I hear you saying is that it
is quite difficult for a group of private businessmen to make
decisions quickly. We have often been told how we flounder
around making decisions and I think the point is sometimes
decisions are difficult.
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Baker/ Can I ask a point of clarification? We had several people
who identified themselves as members of EA subcommittee. Does
that constitute a position of EA or it is an individual
position?
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Throg/ I don't know,
KUbby/ Well, I think that suggestions that were made to us months
ago were from the Water Resources Subcommittee of EA and they
present not the whole organization. But their subcommittee is
an interesting structure of organization. But we haven't heard
anything from the organization as a whole. And it wasn't
requested either and maybe that was a downfall.
Horow/ Jim, anything else that hasn't been already said?
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#7 page 74
Jim Glasgow/ Can I just make one point now? You are not looking at
alternative sites. I don't-that statement from Linda Woito
that this isn't a done deal doesn't mean we are looking at-
This is the only site that you are looking at right now and we
are not going to assess any alternatives. So I think-
Nov/ Her comment was that it is not le~ally impossible.
Glasgow/ Okay.
Nov/ But we are not doing it.
Glasgow/ But you are not going to take the fact that you could save
$3 million on an alternative site and you would really look at
that. That is what I am saying.
Woito! Not right now.
Glasgow! All right. There is only one other point that I didn't get
to make and that is the current site that'you are on would
produce tax revenues somewhere in the range of $900,000 a
year. So, not only are you going to pay a substantial amount
for this particular piece of ground but over the next however
many years you are there you are going to be losing tax
revenues of over $1 million a year which will result in
millions of dollars of lost revenue.
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Throg! It is also not within the city limits. It is not within the
ci ty limits.
Glasgow/ Well, you are going to annex it.
Throg/ If we annex it. You know, there is a lot of things about
that site that we could possibly-
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it?
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Kubby/ But any site we chose we will lose tax revenue. I mean that
would be true of any site.
Glasgow/ That is true but I am saying this is a commercial site
which is a little bit different than some residential sites.
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Karr/ Can we accept correspondence?
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Horowl Moved by Nov, seconded by Throg to accept correspondence.
Any discussion.
CHANGE TAPE TO REEL 94-139 SIDE 2
Kubby I Because we have been presented with lots of technical
options. Over the last three years we have come to a
conclusion about the proposal. We really were only given one
financial option for rate structure that included three
different variations on that and that option was to borrow all
the money, have two bug rate increase in two years and the
difference was what were those increases in rates. We jiggled
the numbers around. So we really didn't look at some of these
phasing in and I think we owe it to ourselves to take some
time to look at those options. One of which is to continue to
borrow 100% of the money and pay it back over a longer period
of time and the other one is to raise some money on the front
end so we don't have to borrow so much money and I think it is
really important to look at those issues and conscientiously
accept or reject them before we move on to making decisions
about the rates.
Novl I think we can do that without continuing the p.h. I really
don't believe \~e are going to hear anything new that we
haven't already heard.
Kubby I It hasn't really been out there except for today in the
newspaper. So I don't know that that is a fair assessment.
Throgl I would like to ask a legal variation of Karen's question or
one that gets to the legality. Steve has presented us with a
memo about a different rate structure or phasing in of the
rate structure for the water part of this. If we chose,
collectively, chose to adopt that would that constitute a
substantive change of the rate structure that we had a public
hearing on. In other words would we have to either hold a ph.
or would we have the responsibility of continuing the p.h. in
the face of maybe adopting something different.
Woito/ I would think that my memo on if you decide to go with a
flat rate structure would be the same. only in this case it
would actually be less onerous if you are going to do the
phasing. However, if you are going to change the phasing I
would suggest that continue it, announce that you are going to
change the ordinance, direct staff and us to clean up the
ordinance, get it on file in the city Clerk's Office so that
the next time people come in here they will have a copy of
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what you are talking about in front of them. So it would be,
in my scenario, continue it to your next meeting if you want
to keep it on a fast, track or you could vote it down. We don't
have to start over.
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pigott/ If you continued it-I mean if we are talking about Steve's
proposal, the 40% increase, can we just don't have an increase
beyond that. That would require continuing the p.h?
Woito/ No, it would not.
Nov/ I think we can just eliminate the 1996 increase tonight-
Woito/ But you would have to amend it on the floor before you voted
on it.
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Pigott/ You know, my feeling is the discussion here tonight has
been really valuable. It has reaffirmed my support for the
water and wastewater plant and for the most part with the way
we are doing it. I think Ed Moreno, Dave Elias, Chuck
Schmadeke were just incredibly good under fire, constantly
under fire tonight, and handled the questions without qualm
and I really thank you for doing that. You know how good you
do that. But-and so all the technical issues I think we can
work those through without needing to continue a p.h. The
question I have is about the rate structure. I don't know
enough about the rate structure aspect of it to feel
comfortable voting without-I mean, I would like to continue
the p.h. in face of the radical change. What I see as a
radical change in structure. But as far as the plant goes, I
am ready.
Horow/ My comment and understand I gyrate with this business about
the technical aspect of this. In terms of the rate structure,
I feel that we need to start the clock ticking for the credit
history to begin and that the subsequent rate structure can
certainly be worked with at a little bit more leisure. Get
started now.
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Kubby/ And how does your concern not be met if we waited a month or
waited two months? Because of the magnitude of this decision
whether we go a phased in, whether we do a pay as you go,
whether we do it all at once, the magnitude and the affect of
this on individuals and businesses is incredible. And so two
months. What we are deciding on is the beginning of a series
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of decisions that is going to last us 100 years. And I think
that we owe it to ourselves and to everybody out there to make
sure that we know on the front end of the decision where we
are going to end up in the next ten years with rate structure
or at least until year 2000 which is fastly approaching. And
two months is worth that. Or whatever agreed upon period of
time.
Baker/ Let me say this. I agree with Bruno that the value of these
p.h:s has been to bring us all sorts of ideas about
engineering options, timing options on the construction. I
heard nothing tonight that led me to change my mind that we
are irrevocably and inevitably headed towards a substantial
rate increase. What that is in the long run is still open for
debate depending on the project as it is finally put together.
I think putting the first phase of that rate increase into
affect as soon as possible is financially responsible in this
respect. 1-It is a 40% increase whether we do the whole
project all at once as we have been talking about it for three
months. steve has proposed a phased in project which if there
is a way to do it without costing us substantial amount of
money in the long run, it is certainly something that I think
we have got to give serious consideration to. But even steve's
phased in plan is based upon a rate increase for the first
year. We can p[ass this 40% increase tonight, start the credit
process. We have several months to grapple with all sorts of
other engineering and financial options. I'll be the first
person on the wagon in July if there is a way that we discover
in the next seven months that proves that that 40% increase is
inappropriate. We owe that much to the public. But if we don't
approve that 40% increase for the first increase for the first
year only and you know one of the comments made was we don't
hear the public when they talk to us. You know, I am going to
point out the obvious here. For us to say that we have backed
off from the second year commitment to that 75% increase
indicates a very genuine commitment to finding other options
as well. That we are not going to obligate ourselves to that
until the last possible moment. It is a substantial change
from the process that we began. You put the 40% into effect
now. At the end of 6-7 months you have preserved your first
option, which is what we talked about to begin with,. There
may indeed be absolutely appropriate reasons that this project
as we discussed it, this site, this size, this timing, those
other options may not fall into place. If they do more power
to us and to the public.
LehmanI Larry, we are preserving all options.
.
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#7 page 78
Baker/ That is what the 40% does.
LehmanI The 40% is not nailed to any particular plan.
Bakerl No, it is not. That is a misunderstanding. It doesn't it say
we do this 40%, we just bought the staff's plan.
LehmanI No, it doesn't say that at all.
Bakerl If someone in the public tries to present that argument then
they are wrong and they are misleading the residents.
Pigott/ But what it does commit us to is 40% right away. That is
just the fact.
LehmanI Right and we haven't had increases. We really should not
find ourselves in this situation. \tIe are going out to buy
something 'with no down payment. The sooner we start collecting
the increased rates, the lower the top rate will have to be
and that is just plain arithmetic.
KubbYI And I disagree with none of what you said. I am talking
about starting those discussion a little more soon, a little
more quickly than seven months.
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KubbY/, We are going to start getting too schematic late at night.
But have two months to make sure that we know more clearly
what direction we are going to end up in. So that we make sure
that we get comments from people who have had less than 24
hours to give me any feedback about the idea of phasing. That
what does-how does that two months negatively affect the
overall process with this. And the benefits that we derive
from those two months. You have to calculate that into it. On
public perception no matter how clear we are tonight, public
perception, process of democracy and doing as much as we can
on the front end of even a beginning rate without knowing that
the final conclusion but getting closer to knowing what the
end product is going to be.
Bakerl I don't want to like abdicate my interest in the process of
democracy. Your question how does the two month delay hurt us.
The parallel question is how does this hurt us. Voting for
this increase tonight hurt us in the long run. Maybe-
Throgl I would like to hop in here for a second. I think it is
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#7 page 79
clear the we need to invest in new water and sewer facilities.
It is clear to us and I think clear to the public. That is
really terrific. And I think that means we got to pay for it
and that means we have to do a rate increase of some kind. I
think there's not much disagreement about that at all. But I
think it would be irresponsible of us to adopt a significant
rate increase tonight, at this moment in time after what's
been said with regard to the possibilities of negotiating a
different schedule and the possibility of adopting an
alternative financing plan that would begin with a different
rate increase. So how can we vote on something that differs
from what's been proposed by people in the public that kind of
makes sense and you can see some merit in it. I don't know if
it's right, but it's got some merit.
Pigottl In other words, voting tonight might rule out some option
that exists today which is different from-
Nov/ If you vote tonight, and if you choose tonight to adopt a 70%
increase instead of a 40% increase you have obviously not paid
attention to what people are telling you. If you adopt a 20%
increase instead of a 40% increase, at least you've proceeded
down the road. You've heard the people tell you we've got to
start putting away money for this. I don't see any need to
delay.
Throgl Why? Why? Staff hasn't had an opportunity to respond to Ed
Barker's financing proposal, and if they have, say one month
to do that and along with the other things we've been given in
the last two public hearings, then we adopt a rate increase
one month from now. What's the substantive difference?
Bakerl Let me ask just a bookkeeping question. You know we
adopt this- bookkeepers- We adopt any increase tonight.
It's not- It's figured starting from January 1, but
people don't get their bills until March the first. So at
what point does the process of the billing actually
begin. Where the rate actually goes into the works and
things go out?
Yucuis/ The bills that go out after a March 1, that's the earliest
if all three readings are done in December and the ordinance
is published in December. The earliest would be March 1.
Nov/ If the ordinance is published the rate increase takes effect
immediately. Not on March 1.
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F120694
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Woito/ But it's not collected until after a billing cycle has run.
Yucuis/ But it's for usage from JanuarY/February which is billed
March 1.
Baker/ So is it technically possible in the middle of February that
if we discover that Mr. Barker's plan is golden, I don't mean
that condescendingly, is more appropriate for us to rescind or
lower that rate increase. Is it possible to do that?
Yucuis/ Anything's possible. Any financial plan you want us to work
on is possible. We've been basing the proposal on, we're doing
these things starting next summer. Based on that assumption
which hasn't changed.
Bakerl That's exactly my point. That base 40% increase tonight.
You've got seven months, actually two from one perspective,
seven months for sure, to say look, can we reach some
agreement about what the alternatives are. And we don't have
to sell $50,000,000 worth of bonds in July. And rates can be
adjusted.
Yucuis/ You couldn't. There's many alternatives but the one
alternative of issuing $50,000,000 worth of bonds in July is
not one of them.
Bakerl Is it true that if we don't begin the process of raising the
rates substantially now, that handicaps or somehow alters our
ability to sell those bonds in July based upon the lack of a
track record? Alters-
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Bakerl This proposal at 40% now maintains our first option. Is that
right? Anything different than this present proposal alters
our ability to do the first option.
Throgl Depending on the construction schedule.
Horowl But it also helps-
Throgl Which we have learned could be negotiated.
Atkins/ options, remember, I hear you talking about that is both
construction schedule and financing. It fits together.
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Bakerl But the bonding -
Horowl Larry, in my point of view it is more important that it
helps-
KubbYI There is not only like two windows of opportunity.
Yucuis/ No, what I am saying Karen is you will have less than a
years worth of track record when we go to issue bonds but it
could be December. It could be anytime after that but you are
talking rates starting March 1. You are starting your track
from then on and it is a short window to go out to issue the
kind of bonds that we are talking about. It is just-
Kubbyl What is that window?
Yucuis/ You have your March through whenever, through August of
rate increase history and then depending on what size of bonds
you want to issue, they are going to look at what have your
rates been, what is your track record of revenues been.
Kubby I What is the difference if we go to this window in July or we
go in this window in September?
Yucuisl None. July is not a magical month of when you would issue
bonds.
Horow/ I would like to ask a question though. If we set this rate
increase as of this evening, are you able to then work on some
sort of a schedule we have been talking about in terms of a
sliding scale for low income?
Atkins/ We need to have an expression of your rate policy before I
c~n do a low income policy for you. I have nothing to work
with right now. Whatever you adopt and I Imow I can begin
doing some work for you.
Horowl There is a motion on the floor to continue you this.
Woito/ Can I get some clarification on is there consensus on the
wastewater to at least move ahead on that?
Throgl We haven't talked about wastewater.
Woito/ We are only on water.
Horowl I want to find out if we are going to continue the p.h. or
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#7 page 82
close it. There is a motion on the floor to continue the p.h.
All those in favor signify by saying aye (ayes: Throg, Kubby,
Pigott). Those opposed same sign (ayes: Horow, Lehman, Nov,
Baker). okay we close the p.h. Well, shall I get the-
Nov/ You had better count-
Horow/ To close the p.h.
Kubby/ No, the vote was to defer.
Woito/ It was a vote to defer or to continue.
KubbYI Right, to continue.
Horow/ And it failed. Do you want to make a positive vote to close
't?
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Kubby/ No, you just close it.
Horow/ Okay, the p.h. is closed.
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ITEM NO. 8 - CONSIDER AN ORDINANCE AMENDING TITLE 3, CITY
FINANCES TAXATION AND FEES, CHAPTER 4, SCHEDULE OF
FEES, RATES, CHARGES, BONDS, FINES AND PENALTIES,
SECTION 3-4-4 WASTEWATER TREATMENT WORKS USER
CHARGES (FIRST CONSIDERATION).
Pigottl Move to defer the ordinance to let's say-what is today.
Karrl Today is the 7th. We started the 6th.
Pigott/ One month from today.
Horow/ You want to defer this for a month?
Pigottl Sure.
Horow/ You want to defer the ,vote on the rate increase for a month.
Throg/ Second.
Nov/ But this is the sewer increase. This is the sewer increase.
This is the one we really have to start sooner.
Horowl All right. okay. There is a motion on the floor to defer
this ordinance-
Karr/ Can I get a clarification? A month or the January 3 is your
next-
Pigott/ The first meeting in January. January 3, thank you.
Horow/ Okay. All those in favor signify by saying aye- I am sorry,
discussion.
Throg/ Yeah, well, we have heard already discussion or presentation
that suggest that it might be quite feasible to negotiate an
alternative schedule with regard to compliance with the
ammonia treatment standards. I don't know that that is true
but we have heard it tonight and I do know I had an extended
conversation with Ralph Terkel at the DNR a few days ago,
yesterday I guess. And now he didn't tell me the same thing
but I didn't ask him that question either. But he caused me to
ask several questions about possible ways of avoiding
connecting the plants in the short run. In other words,
achieving ammonia treatment compliance without having to
connect the plants in the short run and my gosh, I got a bunch
of notes here about that that I was hoping to talk about and
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#8 page 2
I am looking at the clock and it is 12:15 and we have a long
meeting yet to go through and I am wondering how can we
possibly talk about this and then talk about the water and the
amendments to the water proposal that Karen and I are going to
propose. How can we do that and still get through the meeting?
So-
Horow/ You can have to either pass this deferral until January 3 or
we could have a special meeting, a couple of special meetings
working towards December 20. You know, you have got any sorts
of options. But any other discussion?
NoV/ I agree about the hour.
Kubbyl These are too big of decisions to make at this hour. These
are huge decisions to be made and Jim has questions about
things. There are lots of them. How are we going to have fair
discussion on these issues?
NoV/ I understand that and I certainly sympathize with that. But
there is a certain ability to get things going here and we
have passed up the chance to do that more than once. Maybe we
should go ahead with first consideration for just 1995 and
then amend it later if you really think we cannot live with
it.
Baker/ I find it much easier to amend down than to amend up as far
as rate structures go. .
LehmanI I have got lots of concern about the sewer plant, too. One
concern I don't have is that we are going to have to pay for
it. I know that. I know that we have to build it. I know that
we can't pay for it without money and the sooner we get the
rate increases going the lower the top rate will be. I don't
think we are doing our citizens any favor by procrastinating.
Kubby/ But I don't see it as procrastinating. I guess I just-
Lehman/ We know that we have to do it.
Throgl I guess that means I should proceed to raise questions that
I have and propose amendments that I need to propose.
LehmanI We have lots of time for that.
Throg/ I am ready to do it right now because we are adopting a rate
increase tonight and the proposals I have would amend the rate
This represents only a reesonebly accurete transcrIption of tho Iowa City council meeting of December 6, 1994.
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#8 page 3
increase.
Bakerl For sewer.
Throg/ For sewer. One proposal would amend the rate increase for
sewer, you bet.
KUbbYI Go for it Jim.
Bakerl I am quite willing to hear those.
Nov/ I need to stand up.
Kubby/ Can we first vote on the deferral?
Horow/ All right, let's vote on the deferral question. All those in
favor signify by saying aye (ayes: Throg, pigott, Kubby).
Those oppose same sign (ayes: Lehman, Nov, Baker, Horow). We
don't defer. Take a vote on this.
Throg/ Okay, well, that means I should propose an amendment.
Horow/ I have to get it. I need a motion for adoption of this
ordinance.
Baker/ If we are going to amend the years involved do we put it up
first and then amend it.
Horow/ It has been moved by Baker, seconded by Lehman. Discussion.
Throg/ This is really irritating to tell you the truth. I have lots
of questions about the ammonia treatment standard that we are
required to meet. Okay. I don't think we, on the council, know
what the standard is that we ,are suppose to meet. Most of us
probably think and I am guessing and correct me if I am wrong.
We probably think that it is an effluent standard having to do
with discharge coming out of the sewage treatment pipe. And in
a sense that is true but it is not true also because it is
connected to the flow of the water in the river. It has to do
with toxic and acute and chronic discharge zones and there are
standards that are back calculated by DNR to tell us what to
do and my understanding from talking to this fellow Terkel
that it would be at least conceivable and remotely and I don't
want to say that he is telling us to do this. I don't mean it
at all but I understand that it might be possible to achieve
the ammonia treatment standard over the next few years through
a combination of free' action. First flow variable limits.
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Second break point chlorination. And third, sampling our
ammonia discharge more frequently which, for complicated
statistical reasons, has the affect of raising the standard
without doing any harm to the receiving. So, I feel
frustration there because it seems to me I would really want
to see some DNR official here explaining to us what that
standard is and what is this combination of factors that I
just suggested might do with regard to what our requirements
for meeting ammonia treatment standards within the next few
years. All which leads me to conclude that part of what we
trying to do is phase out the north plant and expand the south
plant. That is a good idea and it is a needed thing to do. But
the trigger for doing it right away, hence the $41 million, is
the ammonia treatment standard and we don't know what that
standard is, the seven of us up here, and so we don't have any
sense as to what is required to meet it.
Novl We do have that information. If you would like to borrow it it
is about so thick. Mr. Terkel was here in town, had a p,h, on
ammonia standards and on our ability to meet the standards.
I attended the p.h. The only people there were two scientists
for th~ University and I.
Throgl Good. Good.
Novl I can't say that I can explain it to you but I can certainly
let you read the materials. He did not seem really anxious at
that moment to bend any reg~lations.
Throgl I am not saying bend regulations. I am not saying weakening
regulations. I am saying that the number that we have to meet
in terms of ammonia discharge can vary depending upon our use
of these other three factors that I just talked about.
Nov/ It can also vary on the amount of ammonia that happens to be
in the water from other sources.
Bakerl My frustration is this 11th hour discussion of
technicalities is lost. But it doesn't affect my thinking on
the rate increase. See, I don't see anything inconsistently
here, Jim, between being financially responsible and taking
this approach now and indeed, if what you say at this 11th
hour is true and the process-
Throg/ Don't get on me for the 11th hour. We haven't had a chance
to talk about this.
This represents only a reasonebly accurate transcription of the Iowa City council meeting of Decomber 6, 1994.
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Baker/ This thing has-we have been going for months on this thing
and we are now at the point where we're scheduled to vote on
a schedule that we all agreed to, I thought. If, indeed, those
things are right, I don't see anything that precludes us and
they alter the cost of the plant. I don't see anything that
precludes us from altering the structure down, the rate
structure down. The problem is if all of these other things
don't change our opinion we will want to have,had in place
this rate structure.
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Novl I agree with that. I think we should just remove the 1996
increase and when we have all of the technicalities resolved
we can amend that to something less or we can eliminate it all
together.
Horow/ Do you wish to make a motion to do that.
Nov/ Yes.
Horowl All right.
Bakerl Have we finished discussing the other- We got things flowing
here. Nothing else is up for a vote right now, is it.
Horowl Right.
Baker/ So you are to the amendment just eliminate the 1996 rate
increase. I will second that.
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it is all so often that we, you know, make a decision to
increase the rates, say that it is a good idea that we
investigate alternatives and you get rolling on something and
some process and some of the other questions just sort of get
lost because we have decided on it. You know what I mean and
I think what happens is often times you get some of the other
stuff falls by the way side. Not on purpose and not that
people are thinking or we lose some of it. So what I guess I
hear you saying is we can certainly adjust for anything we
discover in the future and I understand that. At the same time
I think that hearing those concerns up front and considering
that in the beginning before voting for a rate increase gives
us all that opportunity to see that process of consideration
and really forces us to consider it before we do the voting
which is a good thing.
Bakerl What I am saying is that I have heard nothing-I have heard
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a lot of very interesting information. I have heard nothing in
the p.h.s and this whole year long process enough to make me
change my mind about the overall direction that we are going
and the fact that this substantial rate increase is necessary.
To me, I am trying to be as neutral here, the financially
responsible thing to do is to set in process this rate
increase and which time it does not preclude any other
alteration in the technical aspects of the plans And, indeed,
I don't believe-I haven't heard anything to lead me to believe
well, I think that this is a better idea. I don't know enough
right now to say that that is a better idea. I don't know
enough right now to say that is a better idea. In other words,
to make me jump back and say stop the process. The message
that I think the majority is sending out is we are beginning
to make the financial commitment to make substantial changes
in the system and if indeed there are other options,
engineering and technical options, out there to alter that
financial obligation in the long. run, we will be the first in
line to make those changes. But we will want to be able to
pursue a course on a schedule that we think is in the best
interest of the people of Iowa city. That is basically what we
are trying to say. We disagree about this concept about what
is responsible. Jim, I think your position is responsible. I
think my position is equally responsible. And I am working on
my position under the assumption that in the long run were are
going to be closer to that rate increase than we would like to
admit.
Throg/ I didn't mean to jump on you a minute ago. I was just tired.
So let me make one point and then we can move on. The one
point is we have discussed the sewage investment on this
council, I think, one time on May 10 and that was a very brief
discussion. At that time I voted against the-there were two
votes on the sewage thing. I voted against the first one
basically because we have had no-we had not involved local
experts of other kinds outside of staff and consultants. That
we had not had made any effort to involve the public in
helping them understand what we were proposing to do and why
and I thought that was a mistake then. I think it is a mistake
now and so I would support the deferral. I also want to
propose and amendment.
Horow/ I would only ask one question. Did the material that you
found out, have you talked with the staff about it in terms of
getting your reaction to their reaction?
Throg/ I talked to Ralph Terkel yesterday afternoon.
ThIs represonts only a reasonably accurate transcription of the Iowa CIty council meetIng of December 6, 1994.
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Horow/ But he is not our staff.
Throgl I know. I talked to him yesterday. Your point is well taken.
I talked to him yesterday afternoon and I have been busy all
day.
Horow/ Would you like to make a motion that you were talking about
to amend it on the floor?
Nov/ There was also a motion to defer which we have to-
Karr/ No, that was defeated.
Nov/ Okay, excuse me.
Horow/ Is there a motion on the floor to amend this?
Karr/ Yes.
Horowl Who made it.
Karr/ Novick-Baker.
Baker/ I seconded it to eliminate the 1996 increase.
Nov/ I would like to comment a little bit on this before we
actually vote. When I looked at the graph that was in our
packet I compared us in the future, our 1995 rates, with
current rates with both North Liberty and Coralville and if
you compare the water rates to North Liberty it is very close
because North Liberty just put in a new water treatment
system. If you compare our new potential sewer rate to
Coralville, it is very close because Coralville just put in a
new sewer system. They have put in a new wastewater treatment
plant. So what we are talking about here is the fact that all
of these comparisons that we have been given back and forth
are out of line because we are doing these two things at once.
Phasing in will change the appearance of a graph like this and
I think that is a good option. I think that is the kind of
thing that we should do so that our increases after 1995 will
be much smaller.
Horow/ Any other discussion. This is the amendment to eliminate the
1996 increase and just go with the first year 40% issued on
March-
Baker/ 35%-
This represents only a reesonably accurate transcription of the Iowa City council meeting of December 6, 1994.
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Horow/ 35%, I am sorry.
Pigottl This is the vote on the amendment to-
Nov/ An amendment to delete the second increase.
Horowl That is right. Okay, all those in favor signify by saying
aye (ayes). That passed. We go back to the main motion.
Throgl I would like to propose and amendment to the main motion. I
think it is extremely important to insure that new growth pay
for its fair share of the cost of the new sewage investment.
I don't know the technical details of this but it is my
understanding that the piping connecting the north and, south
plant is being oversized. As well it should be to account for
future growth. That the size of the new pump facility, to pump
the water through the pipe, has been oversized to account for
new growth. And that the total capacity in the North and South
Plant when this project is finished will be 7% larger than it
currently is which I assume is to account for future growth.
I have no problem with doing that but my suggestion is that we
adopt, as an amendment, instructions to the staff to devise a
special tap on fee for new wastewater users that recovers the
cost that are directly attributable to growth.
Horowl Is there a second to this amendment? Baker? okay.
Woitol Can I make a suggestion. The question hasn't been thoroughly
reviewed yet, as Jim well knows. There is still a lot of
things to look at. I would suggest that you request the staff
report back to you on a proposed ordinance and the legal
ramifications.
Baker/ Is that the same thing that you are asking for?
Woitol I mean it is basically the same.
Throgl It is very similar, of course, but what it does is have us
adopt a rate increase and then consider doing a tap on fee in
the future and it seemed to me to be wise to adopt a rate
increase that has a tap on fee built into it. So that is one
of the reasons I wanted to defer the vote on the rate
increase.
Woitol You can't put anything as substantial as the impact fee in
this ordinance.
This represents only a reasonably accurata transcription of the Iowa City council meeting of December 6, 1994.
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Throgl Then it could be adopted contemporaneously, simultaneously.
And I am saying that it is import to me that they be bundled.
Woitol Right, exactly and you are frustrated.
Baker/ And I agree with you on this issue and I will support
something.
Woitol I would be more than happy to look into it but steve and I
have a lot of work to do on it.
Novl Can you look into the tap on fee in water rates?
Woitol Yes.
pigottl So what you are saying is you can't have it in either. You
can't amend either of these to include tap-
Woitol Not without continuing-Well, what Jim wanted to do is
continue the p.h. so that you would be able to then later
possibly amend it.
Pigottl I understand that but you are saying without doing that we
can't.
Woitol No, it is a major substantive change that the public should
have comment on.
Kubby / Since the p. h. has been closed and this really isn't a
viable thing in terms of saying they are going to do it. The
most or the closest we can get to that is to direct staff to
come back to us with a proposed ordinance.
Woitol Yes. It is-
Kubbyl Is that acceptable to you, Steve, in terms of the-?
Throgl I would be willing to withdraw the proposed amendment if-I
mean I understand that there are four people, I, think, that
would instruct staff to devise that kind of draft tap on fee.
I think that I would still vote against the ordinance for
reasons I think I have tried to elaborate but I admire the
effort to look into the tap on fee.
Bakerl For water and sewer both. So we are directing staff to do
both.
This represents only a reasonebly accurate transcrIption of the Iowa City council meeting of Dacember 6, 1994.
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#8 page 10
Kubbyl We should talk separately about each.
Baker! It is just a direction so we don't need to wait until-
Throgl I was going to propose the same amendment-
Horowl To explore this for both water and-
Woitol Are you going to withdraw your amendment.
Throgl I just withdrew my amendment to.
Horowl will the second withdraw it?
Bakerl Yes.
woitol Yes.
Horowl Okay, we go back to the main motion.
Kubbyl I have another amendment and that is about the delinquency
deposit fee. We are assuming in all these discussions that we
are going to go to monthly billing. Is that correct?
Atkins/ (Can't hear).
KUbbYI The amount, as outlined in the ordinance, is an amount equal
to twice the average months billing for the delinquent account
which is the billing period. It would seem only fair to reduce
that to an average monthly billing delinquent so that we are
not charging a deposit that is twice what somebody owes in a
billing period. So my-do people understand? The amendment
would be to change on page 2 under amount of fee charged
final penalty on the very last section to read, "an amount
equal to the average month's billing for delinquent account."
So that you would strike the word "twice."
Nov/ Okay.
KUbbYI Or "twice."
Nov/ Just "twice" would come out.
Kubbyl picky but substantial for a new person coming into the
community not able to pay the thousands of deposits.
Horowl Right, got you. Okay. It has been moved by Kubby, seconded
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#8 page 11
by Pigott to amend this, the delinquency fee, the delinquency
account fee structure. Any other further discussion. All those
in fav.or signify by saying aye (ayes). Back to the. main
motion. All right. The motion is on the floor to adopt the
ordinance as amended. All those in favor signify by saying
aye-
Woito/ No, I need roll call on this one.
Horowl Roll call-(No:Throg, Kubby).
Karr/ Madam Mayor, a quick question?
woito/ Are you going to meet on the 19th for your second reading?
Karrl If you are going to do that you might want to read that into
the record at this time so that people would know that there
would be a special meeting.
Horow/ We have a meeting on the 19th which is an informal meeting
but we would also have a special meeting as a formal meeting
to give this a second consideration and then third
consideration on the 20th. Does council have any problem with
this?
KUbbYI Yes.
Horow/ You have a problem with this?
Woito/ It would be at 6:30.
Novl All right, why do you have a problem with that?
Kubby / Because of everything that we have already stated about
deference and continuance of the p.h., deferences of
ordinances. I just think this process is so important that we
get as much time to think about these issues without negating
our responsibility. I am quite willing to vote rate increases
in when I know that people have had a chance to comment on
some of the viable options that we have been given.
Nov/ Put in the third reading on January 3?
Horowl The third reading would be December 20. The second would be
on the 19th. The third would be on the 20th. '
Novl I have an objection to this second reading on the 19th when we
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#8 page 12
are really not in public so to speak. There are very few
people who will come on the 19th. I think it is much more open
and honest to collapse and vote twice on the 20th.
Horow/ Could the rest of you live with that?
Bakerl It tales 6 votes to do that, doesn't it?
Horow/ No.
Nov/ It does. That is why I am saying maybe we should go for the
third. (January)
Baker/ I would but we don't have six votes to do that.
Horow/ Jim just said yes.
Throg/ But I wasn't thinking about that.
Baker/ If not we have to have two separate meetings.
Horow/ Come on people, what do you want to do?
Baker/ I am willing to have two meetings.
Horow/ I am willing to have it.
Kubby/ Two meetings whether it is the 19th or 20th and the 20th and
something else. Naomi's point is still there.
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Nov/ I think that if we are going to collapse this, let's not hide
it by doing it on the 19th. And if we are going to give it
three full-
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Novl I know. That is why I am saying that this is' a way to collapse
it without really collapsing it. And there aren't six votes
for collapsing it.
Kubby/ You have to choose as to whether you are willing to go to
January 3 or whether you are willing to go on the 19th to do
the formal meetings or to do the informal meetings.
Baker/ Do a special formal meeting next Tuesday for one item.
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Kubby/ Because it has the same actual affect.
Bakerl It is a formal meeting and then a week after that we take a
third vote. I thought the purpose was to have this voted on
before January 1?
Horow/ That is right.
Throg/ So the intent would be to come in, meet for 5-10 minutes or
whatever, do the vote and leave.
,
Horowl Right.
Nov/ It isn't just procedural because there are all kinds of other
things that if we meet next Tuesday we didn't have to do
tonight or this morning I should say.
Bakerl That is true.
Horow/ All right, is the 13th okay as far as you are concerned?
Nov/ I didn't even look at a calendar.
Woito/ I am not here.
Horow/ The special meeting was proposed on the 15th. That we have
joint human resource-Joint Human Services Review.
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Karrl That scenario proposal was with a different p.h. That 15th is
another possibility but that was with a different situation.
Horow/ What about the 13th? I the feasible?
Karr/ As far as I know we can do it.
Horowl Is there anyone who cannot make the 13th? All right.
Karr/ What time do you wish to do it? 6:30 or 7:30?
Baker/ Can we throw some other stuff on there? Is that what we are
doing?
KUbby/ We had talked about deferring the South Side.
Nov/ I would not really mind deferring the rest of the agenda if we
have to.
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Kubby/ But I am concerned that if we do South Side and water plant
stuff at a special meeting, even though it is a formal
meeting, these are final votes and the interim vote Qn some of
the biggest issues this council has wrestled with since
.
Horowl We don't have to take the South Side then if you don't want
to. We are trying to work towards the 20TH
CHANGE TAPE TO 94-140 SIDE 2
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 9
ITEM NO.9 - CONSIDER AN ORDINANCE AMENDING TITLE 3. CITY FINANCES TAXA-
TION AND FEES, CHAPTER 4, SCHEDULE OF FEES, RATES, CHARGES,
BONDS, FINES AND PENALTIES, SECTION 3-4-3 POTABLE USE (FIRST
CONSIDERATION).
Comment: The proposed ordinance increases rates for water by 40% the
first year and 75% the second year, effective for bills issued on or after
March 1, 1995 and March 1, 1996 respectively. The 'rate increases as
proposed will be applied as a flat increase across-the-board to all existing rate
blocks and minimum charges, 1st C lilt % ~~
Action: 1/;/)uAJ ! ~UItJ ~ ;J~"'-~/~ ~ ~ t~
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ITEM NOt, ANNOUNCEMENT OF VACANCIES, b<-
It a, Current Vacancies.
(1) Airport Commission - One vacancy for a six-year term ending
March 1, 2001. (John Ockenfels' term ends.l
(2) Broadband Telecommunications Commission - One vacancy for a
three-year term ending March 13, 1998. (Trey Stevens' term
ends.l
These appointments will be made at the January 17, 1994, meeting of
10 the City Council.
ITEM No.1- CITY COUNCIL APPOINTMENTS
a. Consider an appointment to the Housing Commission to fill an unexpired
term ending May 1, 1996. (Robin Paetzold-Durumeric resigned.)
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Action:
b. Consider an appointment to the Committee on Community Needs to fill
an unexpired term ending April 1 , 1998 (Marc Libants has resignedl.
'.
Action:
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#9 page 1
ITEM NO. 9 - CONSIDER AN ORDINANCE AMENDING TITLE 3, CITY
FINANCES TAXATION AND FEES, CHAPTER 4, SCHEDULE OF
FEES, RATES, CHARGES, BONDS, FINES AND PENALTIES,
SECTION 3-4-3 POTABLE USE (FIRST CONSIDERATION).
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Baker/ Move we adopt the ordinance
Novl Second.
Throg/ And I would like to offer the amendment that we delete the
1996 increase. '
Horow/ Okay. Am I to understand that we, by doing this steve, we
have split the wastewater and the water but we have also
agreed to go along with the flat increase. This is Jim's
proposal.
Woito/ No, you can't do that.
Atkins/ Each block.
Horow/ Each block, okay.
Atkins/ In fact I think it is probably better if you want to refer
to what Karen and Jim were talking about. More of a uniform
rate than a declining rate. Flat is really kind of a-
Horow/ All right, great. Uniform is what you are talking about.
Woito/ Sue, you can't do it anyway because the p.h. is closed.
10
Horowl Well, I just wanted a clarification.
Woitol Unless you start over.
Horowl There is an amendment on the floor to eliminate the second
year. Is there any discussion?
Kubby/ Let's just eliminate the whole year.
Horow/ The rate increase for 75% for the second year. Is there any
discussion? All those in favor signify by saying aye (ayes).
Throg/ You know, I meant to move to defer. We have already gone
through that. It is a good thing that I forgot.
Horow/ Did you mean to vote against this?
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F120694
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#9 page 2
Pigottl No, he did not.
Horowl You voted for it, okay.
Throg/ But at this point I think I would like to propose a couple
of amendments and I don't know how this will play out but the
two amendments are verbally, anyhow, to adopt a small increase
in the minimum monthly charge and to shift from a declining
rate structure to a uniform rate structure and the numbers
behind that are in a document that steve gave us a week or two
ago.
Baker/ Can we talk about the-What was the first thing you said.
Throg/ The smaller minimum monthly charge. Basically what that
would do would be to cut in half, correct me if I am wrong
steve, cut in half the increase in the monthly minimum. I
mean, between what it is now and-
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Throg/ It would otherwise be in the structure we had before.
Kubby/ Can you talk numbers? The charge as outlined for the monthly
minimum user with a 5/8 inch meter size is $7.42. What would
that change do?
Atkins/ Sorry, Karen, I didn't catch that.
Kubby/ What would the 5/8 inch monthly charge change to on that
chart?
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about right now?
Nov/ No, based on Jim's proposal of a smaller increase than the
minimums.
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Throg/ I think the answer is this and it might prove to be wrong.
But I think the answer is that instead of going from $5.30 to
$6.57 that it would go from $5.30-No, that is wrong. That is
not right. Instead of going from $5.30 to $7.42, it would go
from $5.30 to $6.57.
Kubby/ okay, that is the number that I am looking for-the $6.57.
Baker/ Jim, help me out here, why?
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Throg/ Why? You know the answer to that. The answer is because we
have heard plenty of people talking about the big hit that
lower income, low to moderate income households and fixed
income households would take as a result of raising these.
Baker/ My question is what does this have to do with the ability to
pay?
Horow/ This was something that I thought steve was going to start
looking into as soon as we set the rate increase.
Baker/ Low use or high use. I mean a lower minimum use. You got
University professors living by themselves versus-
Throgl The only reasonable answer I can give to that question is
that we don't have any data on it. We don't have any numbers
about the distribution of households by income or by water
use. Now we could but we don't. I can't generate that data. I
have got a life to live, right. So, all I can do is say there
are a bunch of people who live in s.f. homes and in apartment
nits of seven units or less that would end up paying less as
a result these proposed amendments than would be the case if
we adopted the original proposal.
Kubby/ The other reason is that the minimum charge will go down for
everyone including the large users such as businesses and
larger apartment complexes. The reason that that is
interesting to me is that everybody needs clean water and so
we need to have some minimum amount of water available to
people that is of high quality. If people can't afford to pay
for larger volumes of water, they can change their behavior.
But we need to get people at the lowest cost possible a
minimum amount of water into their homes.
Bakerl So, are we changing the rate or the gallons that constitute
the minimum?
Throg/ The rate.
Bakerl So, what is the gallon mi.nimum right now?
pigott/ 200-
Atkinsl Cubic feet.
Kubby/ We have heard from people saying they don't-like we heard
from Caroline Dieterle and I have heard from a lot of elderly
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#9 page 4
people who said I just use the minimum.
Bakerl I understand-again. But that has nothing to do with-My
problem is I can't see the connection between that and the
ability to pay. And Jim is right, we don't have the
information but we are rewarding low consumption regardless of
the ability to pay.
Kubby/ Yeah, and that is exactly what we should be doing. Rewarding
less use of a resource that is very contaminated. It is only
going to get worse in the short run and costs a lot to clean
up.
Bakerl Where individually a person will make decisions about using
less water is for their self interest and we can-I don't know
if that is an incentive or not to have the lower minimum for
someone to keep it down close to that figure. That is an
individual benefit but I am not sure of the community benefit
from that. Do you see the distinction I am making? That
individual may benefit but there is a point in this. whole
illogical water production cost structure where-There is a
point where conservation is counter productive and that is
what I am having a hard time with.
Pigottl It is going to help and you are distinguishing between the
person who needs help and the person who maybe doesn't need
help and I am not so sure that that-you know I heard a lot of
people come in here tonight and say I don't care that I am not
low income, I am moderate income and I need help with these
increasing bills. Whether you are moderate income or low
income you are going to need help with these rates and the
minimum might help with people who do not spend as much or I
mean use so much water.
Nov/ We are getting very passionate about $.85 here.
pigott/ So let's give them a break.
Baker/ Does this mean that somebody else picks up the difference?
Throg/ It has more bearing if we had the second-
Lehman/ Can we address this with our approach to abatements for low
income people?
KubbYI What that does is it ends up doing things at the end of the
process instead of the beginning of the process. People have
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F120694
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to come and show how poor they are and we may end up doing
that. The most we can mitigate it the better so that fewer
people have to go through that process.
Bakerl But we have nothing to connect right now water usage with
income. That is my hangup right now.
Kubby/ And I am not attached to that. I think everyone should
benefit from this and that is good because everybody needs to
have that water flowing through their pipes whether you are
rich or poor and that we should have that minimum charge be as
low as possible even though in actuality that is the-the
highest cost is that first gallon, getting it to your house.
Bakerl I am being persuaded here but I have one last question. We
reduce the rate at the lowest end, the consumption rate, all
rates are predicted on a total figure. Do we have to make up
that difference somewhere else?
Kubbyl Then you make it up in your rates for the ne~t 2800, the
next 17,000 and the next 20,000.
Throgl That is right. It would have to be made up.
KubbYI charging more if you use more.
Bakerl You are charging more to other 'people who use more.
KUbbYI And that is why these two proposals are together.
Bakerl Income irrelevant. A family of six, low income.
Throgl I think your point is true. We don't have data connecting
income. I take that as being true.
Bakerl You know, this is one of those things that quite honestly I
could flip a coin and feel good either way. I would feel
better at seeing the logical connection between this proposal
and who it is going to benefit.
KubbYI It is going to benefit everyone who is a water ratepayer in
Iowa city. Small users and big users at all income levels.
Bakerl It is certainly benefiting-I will tell you what. I want
quibble on this one. It is the next one that I will argue
about.
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F120694
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Karrl Was that a motion, Mr. Throg., that you made to do two
things? And was there a second to that?
Throgl I believe I made a motion to both of those.
Pigott/ Second.
Karrl And was there a second?
Karrl We may need to separate them because people may be voting
differently on different-
Bakerl Does that affect the rates sUbstantially enough that we have
to start this process over again.
woito/ What was the second one?
Throgl Hold on, if there was no second, let me state it this way.
Horow/ He just seconded it.
Pigott/ I did second.
Horow/ It was smaller increase in the minimum monthly charge and
shift from declining uniform-
Throgl What I wanted to do-
NOV/ Let's do two separate motions.
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Throgl I withdraw the second part.
pigott/ And I will second it.
Horow/ All right. Any further discussion. All those in favor
signify by saying aye (ayes). That was passed. The next
amendment.
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rate structure to a uniform rate structure. Again, with the
numbers given in the documents we got from Steve before.
Horow/ From declining rate structure to uniform ,rate structure.
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memo that if they were going to change that they would have
continued the hearing and it means that a majority doesn't
want that, right?
Baker / But this is a softening of the rate structure, not an
increase.
Woito/ My memo said clearly if you are going to switch the
structure you needed to continue the hearing. Was that not
clear?
Nov/ It is clear.
Baker/ Okay. Then I will withdraw my-
Horow/ Do you wish to continue this amendment?
Baker/ Let's go back to the other amendment. The other amendment
cannot stand stand unless we re-open the p.h. Is that what
you are saying?
Horow/ No, just this one.
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Throg/ All right. I guess the only point I would like to make is
there has been quite a bit of concern expressed with regard to
renters and I think quite appropriately and I have no desire
whatsoever to harm renters as a result of this. My
understanding from what Ed Barkers and my conversation is that
the average renter would pay $3.00 a month more and this is
after both rate increases, if I remember rightly, as a result
of doing the monthly minimum and the uniform rate structure.
$3.00 more according to those two amendments relative to the
staff's original proposal. So, and 35% of renters would, in
fact, end up paying less. So, I take that to be a pretty small
amount of money and not one that would actually harm renters
and if you connect it with the tap on fee they would be better
off.
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Woito/ Of course, you could move to set a p.h. on whatever you are
proposing now and start it over.
Horow/ That would leave the main motion dangling, right?
Novl It would. I would like to propose that we discuss changes in
rate structure at a future date and continue the declining
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structure for this particular vote. I spoke to somebody last
weekend from Portland, Oregon. He says they are very concerned
about conservation of water and they built an increasing
structure in their fees so that your first gallon costs less
than your last gallon and when I asked him about how did this
work and what do you do for business and industry, he said oh
no, this is just for residential use. We have a different
system for business and industry. And then I ask him if the
apartment dwellings were considered a part of residential or
are they considered commercial and he lost me at that point.
He just didn't have that information at his finger tips. So he
will send us this information. We will have the Portland
rates.
Throg/, That is a very interesting point. That is precisely the
point that Michael Carr, a graduate student at the University
of Iowa, made. The guy who was a consultant in Massachusetts.
He said there are alternative rate structures out there and we
could consider those alternative rate structures.
Nov/ I just would like us to postpone that consideration for today.
Throgl Oh, why don't we just vote it down.
Horowl All right, there is an amendment on the-It hasn't been
seconded.
10
KubbYI Brought back in a new form.
Horowl I need a second for this.
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Pigottl Second.
Horow/ Great.
Bakerl I just want to clarify why I am voting it down at this
moment. Not what we do in the future. It is my understanding
that the benefit to residential users would be an average of
$5.00 a month savings. Is that right?
Throgl Approximately.
Lehman/ $4.30.
Bakerl All right but then under the-what are we calling it now-
Uniform rate structure, renters would go up $3.00. So,
homeowners would save $4-5.00 and then that would be traded
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off with renters paying $3-4 more which seems like at least a
tradeoff. Whether it is fair or not for people who rent versus
people who own their homes is another story. But the real hit
is on large users who where we are already going to hit them
with one increase and this would constitute, in a sense,
another increase over what they have anticipated. That is my
primary concern and I see that as a disincentive to a lot of
things and you know, it is a question of fairness. Overall I
just see the declining structure as a more fair rate
structure. Unless there are benefits greater than $3-4.00 a
month at the one end versus thousands of dollars at the other
end for businesses. It doesn't seem like a fair tradeoff.
Horowl Anybody have anything. Them there is a motion on the floor
for an amendment to shift from declining rate structure to
uniform rate structure. All those in favor signify by saying
aye (ayes:Throg, Pigott, Kubby). Opposed (ayes:Nov, Horow,
Lehman, Baker). So it fails. Going back to the main amendment
made by Baker and seconded by pigott.
Kubby/ I want to go back and I can't find it right now to that
$5.00 charge for late bills. Where is that?
Yucuis/ Top of page 3.
KUbby/ Top of page 3. I would like to move that the Delinquent
Water Service Account Fee be changed from the proposed $5.00
to $3.00.
Yucuisl Not change it at all is what you want?
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pigott/ Second.
Horowl You seconded it, okay. Questions. Discussion. Is that
reflecting the administration of this account?
Yucuisl If I remember right, we were talking less than $2,500 a
year. That is the dollar amount that we are talking about.
LehmanI We are getting $3.00 now?
Yucuisl Yes. So that would be just stricken from the new ordinance.
Woito/ No, we would change the $5.00 to $3.00. We got it.
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Kubby/ I think it is important to look at what percentage we charge
for delinquent accounts compared to the total amount of the
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unreasonable to go for $3.00.
Horow/ On this amendment. All those in favor signify by saying aye
(ayes). Great, back to the main motion which was, as you
remember, amended to only include the first year of 40%.
Throg/ I would like to see if we all agree that we have instructed
staff to devise a draft tap on fee for new water users to
account for, the same kind of language I used before, to
account for the portion of plant capacity and distribution
system, that is directly attributable-
Horowl There is agreement for staff to come back with an ordinance
for water and sewer, both tap on fees, for the purposes of
discussion. okay.
Kubby/ When someone pays a deposit they are paying it for the whole
utility bill. But is there a separate deposit section in the
water rate ordinance. I want to make sure that we are specific
and I didn't propose that going from $5.00 to $3.00 fee on the
sewer bill which I want us to be consistent with that and I
don't know if it is possible to go back. But we should be
charging $3.00 if we just made a decision on the water bill to
charge $3.00 and the same is true of the deposit but I don't
think there is a deposit charge mentioned in the water rate
ordinance. So we are okay there.
Novl The deposit be for both and we have this delinquent fee on
both to be $5.00 each.
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Horow/ So your amendment really went for both water and wastewater.
Kubby/ Linda, do you agree?
Woito/ Yeah, that is-
Kubby/ Otherwise we can move to reconsider before-
Woitol At this point it is the scribbener's-
Horow/ Anything else?
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#9 page 11
Throg/ On a different topic.
Horow/ No, we are back in the main amendment. The main motion has
been amended.
Throg/ I know that staff is preparing a special water efficiency
program. None of us have really seen it but I know you have
done work on it. I guess I would like to see if council would
support the idea of instructing staff to have that program
reviewed and modified after consultation with a committee of
apartment owners, renters and s.f. homeowners.
Horowl Don't we already have that committee?
Atkins/ That is the recycling one.
Pigott/ I think it is a great idea.
Throg/ I think I want to stress that it is not just the owners of
the apartment but renters and some of the family homeowners.
Atkinsl Just some kind of a committee. Give you some ideas on that.
I can prepare that.
Kubby/ Great.
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Horow/ Good idea.
Kubby/ Before we do this last vote and get off of this issue. I
know that we have asked for tons of information from staff and
people have really worked hard to not only inform the public
but spending Saturdays and Sundays on t.v. and all of this
stuff but answering our multitudes of questions and we have
put pressure on staff to get us stuff quickly and just a big
thank you to them.
Novl Absolutely.
Kubby/ We will always want more.
Novl That is right. I have already asked for more today. I have
asked for the reports on the history of water research and
sewer research to be available at the public library along
with that beautiful graph.
Horow/ There is a motion on the floor. The amendment. Roll call-
. "
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#9 page 12
Bakerl wait a minute. What are we voting on now?
Horow/ The main option has been amended for the 40% only for the
first year.
Bakerl Slow down. I am sorry folks.
Horowl Do you have any comments about this motion?
Novl About the ordinance.
Woitol This is it.
Bakerl This is the vote on increasing the water rates?
pigott/ Correct.
LehmanI I feel the same way I did about the sewer. We got to do it.
Horowl Great.
Kubbyl I feel that we need to do it but I feel that we have a huge
obligation to make sure we explore the rate structures a
little more before we even vote on an initial rate structure.
It may have been-maybe I should make another amendment to
lower it from 40 to 20 to see what people think about that
since we are not looking at the whole picture. Maybe I will
just do that. I move that we change the rate from 40% to 20%
for 1995.
LehmanI Can we do that?
Woitol Yeah.
LehmanI That is a major change.
Baker/ But it is down.
Woito/ It is less onerous.
Nov/ Okay, we could change it to 30% or any other number so long
that it is nothing more than 40%.
Horow/ Remember we are giving the staff this ability to work on the
process of a sliding scale if that is what need be or
something to deal with the low income and elderly.
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#9 page 13
Kubby/ That is not at all what I am talking about. I am talking
about process.
Pigott/ Right.
Horowl I know that you are talking about process. I am just trying
to have us remember-
KubbYI Hey, there has not been a second so it dies.
Horow/ It died.
Throg/ In general I would want to support you but I think it is a
moot point.
Horowl Okay, well, it just died-
Pigott/ Well, wait a second. I support the idea for, purposes of
discussion. I mean, if we are talking about just doing the 40%
now then why not 20 and why don't we talk it out a little bit.
Baker/ I will just say is the reason I was support a 40% increase
is that in my opinion its financially responsible to maintain
every possible option including the option that we began with
and 40% allows us to do that and 20 doesn't.
Kubbyl And the reason I made the motion was because I can't support
40 but I agree with the need to begin raising rates so that we
can do these projects. it was a way for me to be able to act
on that third value that I have with all of the council.
Bakerl So you would have voted for 20% tonight.
Horow/ Were you seconding it.
Pigottl I did second it.
Horow I okay. Any further discussion. All those in favor signify by
.
saYlng aye-
Bakerl This is the amendment-
Horow/ The amendment to change from 40% to 20%- (ayes). It failed.
okay. Back to the main amendment-motion. The proposed
ordinance increase rate for water by 40% the first year.
Novl Do it. It is time to get it done.
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#9 page 14
Throg/ Much like Karen put it, I strongly support the need to make
an investment in water but I really believe that we need to
address the question that the public has raised and we should
do that before we adopt a rate increase. I guess the way I
like to think about it is that I got the words wrong here but
it is something like governments rule by consent of the
government and I don't think the people of Iowa city are at
that point yet. I think they could well be at that point in a
short period of time but we aren't there now. So-
pigottl Well, I guess, yeah I have a lot to say. One of the things,
though, is I think Doug Jones was pretty eloquent tonight with
his comments about the need for this. That we must accept
responsibility for what we have done in the past and what we
are doing to our water system. As we learn about the nature of
the impact about what we do we have to pay for what we do in
the future as well as now. I mean I voted in a strange series
of ways which may be hard to understand. I voted to defer. I
voted to delay the decision. That is because I thought we
needed more information about the possible outcomes and I
think that was important. Once we got past that though I
decided to vote for the increase and I will vote for this
increase because I think despite the fact that I would like to
take time to consider the different proposals out there that
the amended proposal we are voting on will be better than the
proposal that was in front of us before amendment tonight. And
it makes it more acceptable. clearly not perfect or even close
to it. I wish we had taken the time to consider before voting
on it but now that it is in front of me I am going to vote on
it. It is just because of it is just the first year rate.
Baker/ It is five hours and forty minutes into this hearing. I need
to know that because when I tell my children when to look at
me I will tell them to wait five hours and forty minutes and
then come back. I apologize. I have a statement here. I think
it is extremely important that on this issue a thoughtful
presentation of how I feel is important to the public. So bear
with me. I have actually edited out a whole page here, the
page that talked about self serving lies, half truths and
distortions. I have edited that out. I make that reference in
passing. All right. Before I discuss how I am going to vote on
this issue and the reasons why I plan to vote, I would like to
take a few minutes to thank everybody who is still here, that
was here and that was at home who participated in the process.
In particular, I want to thank people like Mary DUdsiak, Tom
, people who have taken the time and effort to write
lengthy and thoughtful letters which detail their concerns and
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#9 page 15
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suggestions about this process. I would like to thank people
like Larry Perkins who called me and were willing to talk at
length about their concerns and listen to me as I tried to
offer some background information that more than had been
available to them. I wasn't able to make Mr. Perkins and many
other people happy. I probably still will not be able to do
that and I was not able to soften many of their objections
but, again, those others who talked to me did so with genuine
concern and respect for the efforts of this council and I
appreciate that very much. I would like to than all of you who
were here, still here, can't name all of you and might have
been at previous council meetings. You have taken seriously
your responsibility as citizens to make your views known to us
and the public. Ed Barker, in particular, has to be commended
for his efforts to bring not only his opinion but also I think
additional useful information and I appreciate very much your
efforts that you have made. I thank all of you because this is
probably the most important issue this council will face.
Important not only because of the magnitude of its cost but
also its affect on the health and economic prosperity of
future generations living in Iowa city. I say this with a
certain amount of irony because ten years ago, about ten years
ago, I voted on a bond issue for a sewer plant and was told at
that time that would be the largest bond issue, the largest
expense ever in Iowa city history and I was on record as
having voted for that and I don't know whether it is a dubious
record or not to vote the three largest or not. I am
emphasizing my gratitude to all of those people now because I
don't want my following statement to be misunderstood and I
don't want the public at large to feel themselves the object
of this criticism, criticism which I am now going to abridge,
amend and shorten and just talk about the fact that I think
part of the problem that the public and this council had to
deal with is not just information but misinformation. That in
this p.h. process, the public debate process, there have been
a microscopic number of people who, in my opinion, have made
this issue much mire difficult. In particular, with questions
about the location of the plant, the size of the plant. In
fact, they have warped this debate and I will just say this
once, I think there was a certain amount of half truths,
distortions, and untruths made and that is part of the process
that we had to encounter and go through and I think that one
of the affects of that misinformation was to turn public
concern into public hostility and I regret that. And I don't
think that in many ways their effort was to inform the public
as to incite the public and in many ways that has been
accomplished. I have actually folks, with those statements,
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#9 page 16
softened up a lot of what I had to say. I will skip to the
real meat of this discussion. To the very large number of
people out there who have tried-this council has tried to
respond to, I am going to say that in fair and open debate the
necessity and logic of our actions will hopefully became more
apparent. It is a slow process, a disappointing process. A lot
of times what happens is you come to understand the lack of
options available to all of us. All sorts of questions I will
not go through all of them. Do we need a new plant? yes. Look
at numerous options? Yes. will the rates go up? Yes. will the
federal government help us pay for it? No. will they back off?
No and we shouldn't ask them to back off from those mandates.
Can we build a cheaper plant? Possibly and we will be looking
at that in the next few months and if we can, those savings
will be passed along. Can we phase in the schedule? Yes,
possibly and we will be looking at that as well. Can we delay
a decision indefinitely? Sure if you are willing to pay more
in the long run and I think that is the inappropriate way to
go. Does a decision tonight to raise rates for the immediate
year mean this council is committed to only one plan and that
pUblic input has been irrelevant? That is absolutely not true.
But a decision tonight to raise rates is, I believe, the most
financially most responsible course of action that we can take
and you elected us to make in our judgement, our best
judgement, the responsible decisions which are sometimes not
popular but if we truly believe in those decisions we have to
make them. Two questions about options and I want to say this
very slowly. Are we building Disneyland? Sorry folks, of all
the distortions about this project, this has been the most
insidious and the most laughable and I suppose that one
requirement for any elected official is to have a sense of
humor about himself or herself. I do, my colleagues do but
that collective sense of humor has been certainly strained in
the last few months. And there are other cities building
cheaper plants? Sure. Look at the details and you will see
those are different plants with different problems and are not
comparable. So, we begin the last phase of this process. We
will amend it as we go along. Look for alternatives. If we can
do this project more efficiently, we have seven more months to
find out. Possibly more but I believe that we have to start
and in the future we are going to look for ways to lessen the
impact on low income families and look for methods to pass
some of that cost along to new development and look more
closely at the possibility of a local option sale tax to
soften the burden. All of those things are still to come. I
think tonight I am comfortable making the decision to begin
this process and we will amend it and if there is any possible
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#9 page 17
way you will see seven people making those decisions with your
help and input and once again I thank this council. I thank
the public and the city staff and I certainly hope that we
will continue a good debate. I think we have an excellent
council.
Horow/ I appreciate that Larry. You have made my position easier
because I don't want to repeat all of the aspects that you
brought out. But I do think that it does come down to this
council having to make a decision and we have worked with
people and listened. We do have to make a decision.
Kubbyl Sue, I had two last comments. One is that whatever rates
end up happening we need to begin to think about adding the
increased rate in water and sewer onto our food bills as
reflecting the true cost of the artificially cheap cost of
providing food. Whether that corn. Whether that's cows or
pigs. And a lot of what we're having to deal with is because
of the non-sustainable form of not just, of industry. Not just
of agricultural industry but other kinds of products. You
know, in some idealistic sense, I hope that someday I'd rather
have my food prices actually reflect the cost of my food and
have the prevention of the pollution and pay for it on the
front end than to pay for it in a much harder process,
intensive resource use process and expensive process. So add
it on to your food bill and that more accurately reflects the
price of food. Not comforting enough but-
Horow/ Any other discussion.
Nov/ Part of what I was .saying about the effluent, ammonia count,
depends on what is already in the river. They measure it 100
feet or 500 feet out and it depends on what else is there.
Horow / okay. Let's take this roll call- Ordinance as amended
passed, 5-2 (Throg and Kubby voting no).
Baker I I was going to ask if there is anything we can defer to
another meeting here.
Kubby/ What can't we defer.
Woitol The Stanley Muscatine-
Nov/ We can certainly do city council appointments quickly enough
and we can defer most everything else.
This represants only a reasonebly accurate transcription of tho Iowa City council meeting of December 6, 1994.
F120694
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 10
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ITEM NO. 12 - CITY COUNCIL INFORMATION.
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ITEM NO. 13 - REPORT ON ITEMS FROM THE CITY MANAGER AND CITY ATTORNEY.
a. City Manager.
b. City Attorney.
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ITEM NO. 14 - RECOMMENDATIONS OF BOARDS AND COMMISSIONS.
a. Consider recommendations of the Design Review Committee:
(1) REGARDING MEMBERSHIP REQUIREMENTS FOR THE DESIGN
REVIEW COMMITTEE.
Comment: At its November 28, 1994, meeting, by a vote of 6-1
(Nagle voting no), the Design Review Committee recommended
that the Design Review Committee membership requirements
remain unchanged. That is that the enabling resolution and by-
laws should continue to state that "At least two-thirds of the
Committee members must be eligible electors of Iowa City, and
the remaining one-third may be eligible electors of Johnson
County." This recommendation is in response to a request from
the City Council.
Action: 1~ 1/11
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 11
(2) REGARDING MAINTENANCE OF CITY PLAZA.
Comment: At its November 28, 1994, meeting, by a vote of 8-0,
the Design Review Committee recommended that during the
Council's upcoming budget discussions that the Council give
special consideration to budget requests for the maintenance and
replacement of items within City Plaza, Given the age of City
Plaza, the Plaza requires more than the past general maintenance
expenditures; it requires significant expenditures for repair and
replacement of items in the Plaza.
Action:
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ITEM NO. 15. CONSIDER RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND CITY
q4- 35" CLERK TO ATTEST AN AGREEMENT BETWEEN STANLEY CONSULTANTS,
INC. OF MUSCATINE, IOWA, AND THE CITY OF IOWA CITY TO PROVIDE
CONSULTING SERVICES TO PERFORM VALUE ENGINEERING STUDIES ON
THE IOWA CITY WATER FACILITIES IMPROVEMENT PROJECT.
Comment: This value engineering study by Stanley Consultants will analyze
the water facility design work completed by Howard R. Green Company in an
attempt to reduce the overall cost of the project. The study will be restricted
to facility design and construction. The work will be divided into two phases
with the first phase conducted upon completion of the design outline and the
second phase conducted at approximately sixty-five (65%) per cent of final
design. The total cost of the value engineering study is $56,000. Public
Works recommends approval of this agreement. This item was deferred from
the November 22, 1994, Council meeting.
Action:
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ITEM NO. 15 - CONSIDER RESOLUTION AUTHORIZING 'THE MAYOR TO SIGN
AND CITY CLERR TO ATTEST AN AGREEMENT BETWEEN
STANLEY CONSULTANTS, INC. OF MUSCATINE, IOWA, AND
THE CITY OF IOWA CITY TO PROVIDE CONSULTING
SERVICES TO PERFORM VALUE ENGINEERING STUDIES ON
THE IOWA CITY WATER FACILITIES IMPROVEMENT PROJECT.
Horow/ Moved by Throg, seconded by Pigott. Any discussion.
KUbby/ So this is for whatever final design proposal that we are
going to move forward on. This engineering firm will come and
say this is the strategy you are using. This is how you can do
it more cheaply. And so at this point it is not concerned with
what that specific is but when we get the specific.
Throg/ It is not really the overall strategy. It is like the design
of the plant and looking for efficiencies in the design of the
plant.
Baker/ will it look at the other options that we went through.
Atkinsl We're talking about that. This contract will not. Chuck and
I have talked about that. So we may come back with an
amendment. We just haven't decided that yet.
Nov/ So why don't we defer this.
Atkins/ Get this work underway. This is pretty intense.
KUbby/ How can work get underway if we don't know what we are going
to end up with.
Atkinsl They are going to be reviewing the design proposal that I
will have in hand and that the question was raised whether we
wanted to do something similar to this-Larry, if I am reading
what you are saying on what the other options were. They don't
involve the formal design but they do invo~ve an intense of
what that particular option was. Correct, Chuck?
KUbbYI Isn't that kind of backwards. Shouldn't we, if we are going
to look at paying someone to look at options. Shouldn't we do
that first, decide on the option and then employ someone to
look at the option we have chosen to find out hovl to most
efficiently make that-
Atkinsl We have a number of options that we have reviewed and
rejected.
ThIs reprasents only a raasonably accurata transcription of the Iowa City council meeting of Dacember 6, 1994.
F120694
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Schmadeke/ We are not looking at options any more.
KubbYI Didn't I just hear that we have been exploring possibilities
of hiring somebody to look at other options.
Atkins/ No-to look at options that we reviewed. There was a
question raised as a matter of information. We were going to
go back and take another look at those.
KUbby/ New options.
Atkins/ Unless, well-I do want to take another look at that ASR and
a couple of other things. Things that got raised tonight we
will go through but we will do that internally.
Baker/ Specific suggestions that ought to be looked at in some
review.
Atkins/ We had proposals that came up this evening such as ASR and
other folks who bring items to the microphone. We will review
those internally before we want to commit to any additional
engineering. Technically, Chuck and his folks will look at it
and decide whether it has some merit. otherwise every time
somebody gives you an idea you would be spending engineering
work on it. I assume you don't want to do that.
Horow/ Okay. Roll call- (yes) Item 15 passed.
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F120694
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 12
ITEM NO. 16 - CONSIDER A RESOLUTION AUTHORIZING THE HISTORIC PRESERVATION
Cf4 ~ 554- COMMISSION TO FILE AN APPLICATION FOR A CERTIFIED LOCAL GOVERN-
MENT /CLG) GRANT FOR THE PURPOSE OF PREPARING A NATIONAL
REGISTER NOMINATION FOR COLLEGE GREEN AND EAST COLLEGE
STREET.
Comment: The CLG program administered by the State Historical Society of
Iowa, provides local governments with matching funds to conduct historic
preservation projects. The Historic Preservation Commission has prepared a
grant application for the purpose of nominating College Green and East
College Street to the National Register of Historic Places, If the Commission
is awarded the $3,300 grant a local match of $2,200 will be required. The
Commission proposes to provide this match through volunteer work and
through funds allocated in this year's budget for historic preservation
activities.
Action:
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ITEM NO. 17 - CONSIDER A RESOLUTION AUTHORIZING THE HISTORIC PRESERVATION
'1Lf- 355 COMMISSION TO FILE AN APPLICATION FOR A CERTIFIED LOCAL GOVERN-
MENT (CLG) GRANT FOR THE PURPOSE OF CONDUCTING A SURVEY AND
EVALUATION OF ARCHITECTURAL AND HISTORICAL RESOURCES IN THE
NORTH DUBUQUE STREET CORRIDOR.
Comment: The Commission has prepared a second CLG grant application for
a professional survey and evaluation of historic resources in the North
Dubuque Street Corridor. The purpose of the survey is to identify architec-
tural and/or historically significant structures or areas which may at a later
point be considered for the National Register of Historic Places or as local
historic districts, conservation districts, or landmarks. If the Commission is
awarded the $12,400 grant, a local match of $8,332 will be required. The
Commission proposes to provide this match with volunteer work, through
funds allocated for historic preservation activities, and through private
donations.
Action: ~/ 71wJ
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 13
ITEM NO. 18 - CONSIDER A RESOLUTION DECLARING AN OFFICIAL INTENT UNDER
94 ~ :!IS/' TREASURY REGULATION 1.150-2 TO ISSUE DEBT TO REIMBURSE THE
CITY FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH
SPECIFIED PROJECTS.
Comment: This resolution declares official intent under Treasury Regulation
1.150-2 that the City of Iowa City will issue debt to reimburse itself for
expenditures paid out in connection with land acquisition related to the new
Water Treatment Facility. The total estimated cost of the project is
$46,000,000 (plus four million for one year's debt service reservel. The City
reasonably expects to reimburse itself no later than eighteen months after the
actual expenses are made, The following funds advances $4,396,100 and
will be reimbursed at the time bonds are sold: Water Depreciation, Extension
and Improvement Reserve - $1,146,100; Landfill Replacement Reserve -
$1,500,000; Equipment Replacement Reserve. $550,000; General Risk Loss
Reserve - $400,000 and Health Insurance Reserve - $800,000,
Action: ~/1(~
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ITEM NO. 19 - CONSIDER A RESOLUTION APPROVING THE NEAR SOUTHS IDE COMMER-
CIAL URBAN REVITALIZATION PLAN
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Comment: The Urban Revitalization Plan outlines the improvements which
qualify for property tax exemption in the proposed Near Souths ide Commer-
cial Urban Revitalization Area. The Urban Revitalization Area includes the
area zoned Central Business Support Zone, generally located between
Burlington and Court Streets and along Gilbert Street.
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ITEM NO. 20 - CONSIDER A RESOLUTION A PROVING THE NEAR SOUTHSIDE RESIDEN-
TIAL URBAN REVITALIZATION PLAN
Action:
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Comment: The Urban Revitalization Plan outlines the improvements which
qualify for property tax exemption in the proposed Near Southside Residential
Urban Revitalization Area. The Urban Revitalization Area includes an area
zoned Planned High Density Multi-Family Residential Zone and Central
Business Service Zone, generally located south of Court Street along Linn,
Dubuque, Clinton, Capitol and Prentiss Streets.
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#18 page 1
ITEM NO. 18 - CONSIDER A RESOLUTION DECLARING AN OFFICIAL INTENT
UNDER TREASURY REGULATION 1.150-2 TO ISSUE DEBT TO
REIMBURSE THE CITY FOR CERTAIN ORIGINAL
EXPENDITURES PAID IN CONNECTION WITH SPECIFIED
PROJECTS.
Horowl This is to reimburse ourself for expenditures paid in
connection with land acquisition related to the new Water
Treatment Facility. Moved by Lehman, seconded by Nov.
Discussion.
Kubbyl This is only about the $4.396-
Atkins/ Yes.
Horowl Exactly right.
Throgl Given the preceding votes it seems to make sense to.
Bakerl Are we going to have, this is sort of related to this, a
discussion about condemnation proceeding in executive session
sometime.
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Atkins/ I think Linda talked about that.
Woitol' Yes. .
Bakerl Did I miss that.
Woitol It was in my partial litigation. One of my memos on the
update on the condemnation. I said that we would be talking to
you later in this month, namely the 19th or the 20th.
Bakerl No date specific that I missed.
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This reprasents only 8 reasonebly accurate transcription of the Iowa City council moetlng of December 6, 1994.
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F120694
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#19 page 1
ITEM NO. 19 - CONSIDER A RESOLUTION APPROVING THE NEAR SOUTHSIDE
COMMERCIAL URBAN REVITALIZATION PLAN
Horowl Moved by Kubby, seconded by Pigott to defer items 19-27 to
December 13.
CHANGE TAPE TO REEL 94-140 SIDE 1
Throgl Durability.
Baker/ We are not voting tonight but we are listening.
Horow/ Did you defer #27 as well.
KubbYI Yes.
John Rummelhart/ Thanks for holding up and listening to my
comments. I will make it extremely brief. I hope you are
familiar with this ordinance 14-9a-1 and bottom line is if all
of the different paragraphs that are referred to concerning
the off street parking can be met by a private developer on a
piece of ground, why should they have to pay an impact fee to
the city. If underground parking-
Woitol Because we are trying to discourage the use of the land for
private parking.
Rummelhartl Okay, can it be-can somehow some language be worded in
this that if the-if underground parking package can be put
together. None of the large parcels of ground for parking lots
is taken up. There again, what I said at first, if all of
these requirements which are needed in the ordinance can be
met, why should a private individual have to pay an impact
fee. It-I mean, this is, I hate to say but almost a joke as I
read it. Meet adequate off street parking. Such development,
the development and redevelopment would create undo traffic
congestion and generally be contrary to the health, safety,
and welfare of the citizens of Iowa city. And then the next
paragraph but it is in the pUblic's best interest to develop
land now available in this neighborhood for more intensive
residential and commercial uses. I mean, what are we saying.
Is it-everybody is trying to have it all ways. I can see the
point in small parcels of ground that don't have the parking
possibilities as perhaps other larger privately held parcels
could have on site and this is in the right direction for
that. I am for that and that would help the development.
This represents only a raasonably accurata transcrIption of the Iowa City council maetlng of December 6, 1994.
F120694
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Horow/ It would be helpful if you could give me an example. Would
your parcel that you hold right now be capable of having
underground parking for all of this.
Rummelhart/ Yes, yeah, I said it before. Before w~ bought that site
we had a preliminary engineering study done on the feasibility
of going underground and I believe depending on if you go, how
the building would be put together, we got the possibility of
one to two levels of parking totally on site on a 90 by 150
site, with 60-65 spaces available. In turn that would depend
on what you did with the building above that if it supported
its own parking. And what is wrong with that.
Nov/ If you have the space available to put in 1 parking space for
each 1200 square feet of' development underground, you would
like to be able to do it?
Rummelhart/ Correct and not be penalized-
Nov/ It is also possible that if you build upwards, three stories,
four or five, you may not have all of this parking available
underground.
Rummelhart/ That is correct.
Nov/ In that case you would pay an impact fee for whatever you did
not put on site.
Rummelhart/ That is agreeable, yes.
Nov/ I just want to understand. okay.
Rummelhart/ Is the limitation being placed upon-again, I believe it
is a 25% maximum on site allowable parking requirement. If I
can get 100% I am being-losing 75%. I am enhancing, I will
talk about our parcel of ground if I could do it on my parcel
of ground, I am enhancing the salability of that property. I
am enhancing the possibilities for tenants who are going to
want that facility because they got parking right there. We
talk about congestion, where is the congestion going to be if
the only place you can park is a new parking facility. Where
is the parking congestion going to be. It is going to be at
the facility. If you are spreading it out over this whole Near
South side, it would seem to make more sense to me that you
have less congestion. And that is the point. I somehow if that
can get amended in this, that would be great. Thank you.
ThIs represents only a reesonebly accurate transcription of the Iowa City council meeting of December 6, 1994.
F120694
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#19 page 3
Horow/ Okay, thank you very much.
Rummelhartl And those sites shouldn't have to subsidize anything
with this impact fee. I mean and I don't see any reason why
they should.
Horow/ This has been deferred until December 13.
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Karr/ You have a motion on the floor, no vote.
Horowl There is a motion on the floor.
Bakerl Before we do it, this has nothing to do with John. Karin,
thank you for staying and if we had known earlier we could
have sent you home.
Atkins/ How about Dale.
Novl Dale and you and everybody. And also the council.
Horowl Do you want to ask Karin to come up and answer this. There
is a motion on the floor. all those in favor signify by saying
aye (ayes).
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F120694
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 14
ITEM NO. 21 . CONSIDER A RESOLUTION AUTHORIZING THE PREPARATION OF A DESIGN
PLAN FOR THE NEAR SOUTHS IDE NEIGHBORHOOD AND DECLARING THE
COUNCIL'S INTENT ON THE ALLOCATION OF INCREMENTAL PROPERTY
TAX REVENUES.
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Comment: This resolution outlines the urban design elements the City
Council wishes to incorporate into a design plan for the Near Souths ide
Neighborhood. In addition, the resolution states the Council's intent of
allocating future incremental property taxes to fund public improvements in .
the Neighborhood.
Action:
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ITEM NO. 22. CONSIDER AN ORDINANCE AMENDING TITLE 14. "UNIFIED DEVELOPMENT
CODE," OF THE CITY CODE, BY AMENDING CHAPTER 9, ARTICLE A,
ENTITLED "PARKING FACILITY IMPACT FEE," TO INCLUDE COMMERCIAL
DEVELOPMENT. (PASS AND ADOPT)
Comment: These ordinance amendments would require new commercial
developments in the Near Southside Neighborhood to pay a parking facility
impact fee. Adoption of this ordinance should only occur if the Council
intends to adopt the amendments to the Zoning Ordinance to require parking
spaces for commercial uses in the Central Business Support Zone.
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ITEM NO. 23. CONSIDER AMENDMENTS TOTHEZONING ORDINANCE, SECTION 14.6N.1,
OFF-STREET PARKING REQUIREMENTS, TO REQUIRE PARKING SPACES
FOR COMMERCIAL USES IN THE CENTRAL BUSINESS SUPPORT ZONE (CB.
51. (PASS AND ADOPT)
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Comment: At its October 6, 1994, meeting, the Planning and Zoning
Commission, by a vote of 4-0, recommended amendments to the Zoning
Ordinance to require parking spaces for commercial uses in the CB.5 zone at
the rate of one parking space per 1200 square feet of floor area. No
comments were received at the Council's October 25, 1994, public hearing
on this item.
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 15
ITEM NO. 24 - CONSIDER AN ORDINANCE DESIGNATING AN AREA OFTHE CITY OF IOWA
CITY, IOWA, AS AN URBAN REVITALIZATION AREA WHICH SHALL BE
KNOWN AS THE NEAR SOUTHS IDE COMMERCIAL URBAN REVITALIZATION
AREA. (PASS AND ADOPT)
Comment: Adoption of this. ordinance designating the proposed Urban
Revitalization Area is required to implement the Near Souths ide Commercial
Urban Revitalization Plan; therefore, final passage should occur only after the
Council's adoption of the Plan.
Action:
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ITEM NO. 25. CONSIDER AN ORDINANCE DESIGNATING AN AREA OF THE CITY OF IOWA
CITY, IOWA, AS AN URBAN REVITALIZATION AREA WHICH SHALL BE
KNOWN AS THE NEAR SOUTHS IDE RESIDENTIAL URBAN REVITALIZATION
AREA. (PASS AND ADOPT)
Comment: Adoption of this ordinance designating the proposed Urban I 0,1, .
Revitalization Area is required to implement the Near Souths ide Residential
Urban Revitalization Plan; therefore, final passage should occur only after the
Council's adoption of the Plan.
Action:
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ITEM NO. 26 - CONSIDER AN ORDINANCE ESTABLISHING AND REGULATING THE
LOCATION OF ENTRANCE DRIVES TO PRIVATE PROPERTY ALONG AND
ADJACENT TO U.S. HIGHWAY NO.6 FROM THE WESTERLY CITY LIMITS
TO ROCKY SHORE DRIVE IN IOWA CITY, JOHNSON COUNTY, IOWA.
(SECOND CONSIDERATION)
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Comment: This ordinance regulates the location of entrance drives along
U.S. Highway No. 6 between Rocky Shore Drive in Iowa City and First
Avenue in Coralville in conjunction with the Highway No. 6 Fifth Lane
Improvements Project, and as required by the Iowa Department of Transpor-
tation. The City Attorney and the City Engineer recommend approval.
Action:
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Agenda
Iowa City City Council
Regular Council Meeting
December 6, 1994
Page 16
ITEM NO. 27 - CONSIDER AN ORDINANCE AMENDING TITLE 9, ENTITLED "TRAFFIC,"
CHAPTER 9, ENTITLED "DEFINITIONS, ADMINISTRATION AND ENFORCE-
MENT OF TRAFFIC PROVISIONS," SECTION 6, ENTITLED " APPLICATION OF
PROVISIONS" OF THE CITY CODE BY ADDING A NEW PARAGRAPH
APPLYING THE PROVISIONS OF THE TRAFFIC TITLE TO BICYCLISTS. (PASS
AND ADOPT)
Comment: This amendment applies the traffic regulations to bicyclists, and
requires individuals riding bicycles to follow the "rules of the road" applied to
other vehicles. This action makes clear that bicyclists must follow the rules
of the road, and tracks state law. Staff recommends approval.
Action:
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ITEM NO. 28 - ADJOURNMENT.
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City of Iowa City
MEMORANDUM
DATE: December 2, 1994
TO: City Council
FROM: City Manager
RE: Work Session Agenda and Meeting Schedule
December 5, 1994
NO CITY COUNCIL WORK SESSION
Monday
December 6, 1994
6:00 P.M.
6:00 P.M.
6:15 P.M.
6:45 P.M.
7:00 P.M.
Tuesday
- City Council Work Session - Council Chambers
- Near South Side
- Review zoning matters
- Council agenda, Council time, Council committee reports
- Consider appointments to the Housing Commission and
Committee on Community Needs
7:30 P.M. - Regular City Council Meeting - Council Chambers
December 19, 1994 Monday
6:30 P.M. - City Council Work Session - Council Chambers
December 20, 1994 Tuesday
7:30 P.M. - Regular City Council Meeting - Council Chambers
December 23, 1994
HOLIDAY - CITY OFFICES CLOSED
Friday
December 26, 1994
HOLIDAY - CITY OFFICES CLOSED
Monday
January 2, 1995 Monday
HOLIDAY - CITY OFFICES CLOSED
6:30 P.M. - City Council Work Session - Council ,Chambers
Agenda pending (Meeting may be rescheduled)
January 3, 1995 Tuesday
7:30 P.M. - Regular City Council Meeting - Council Chambers
PENDING LIST
Appointments to the Airport Commission and Broadband Telecommunications
Commission - January 17, 1995
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