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Home My WebLink About2007-09-20 Info Packet I;;;; 1 -~= -4... ~~-q~~ ~... ~1IIJ.l\t'___ ....~ ~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET September 20, 2007 MISCELLANEOUS IP1 Tentative Council Meetings and Work Session Agenda IP2 Memorandum from the Director of Planning and Community Development: Iowa 'City Zoning Ordinance Regulation of MidAmerican Energy facilities . IP3 Letter from the Transportation Planner to Property Owners abutting Mormon Trek Boulevard south of Highway 1: Request for street name change IP4 Iowa City Police Department P.A.U.L.A. Report - August 2007 IPS Approved Minutes: Economic Development Committee: July 24, 2007 DRAFT MINUTES IP6 Telecommunications Commission: July 23,2007 COUNCIL CANDIDATE REQUESTED MATERIALS (Mailed to Candidates on 9/21) Memorandum from Assistant City Attorney: Cable TV Litigation I;;;; 1 ~~~~it ~... ~1IIJ.m___ --.~ ~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET September 20,2007 MISCELLANEOUS IP1 .ve Council Meetings and Work Session Agenda from the Director of Planning and Communit nce Regulation of MidAmerican Energy faci . les Iowa City IP2 IP3 Letter from the ransportation Planner to Property Owners abutting Mormon Trek Boulevard south of HI way 1: Request for street nam change IPS Approved Minutes: Economic July 24, 2007 IP4 Iowa City Police Departm t P.A.U.L.A. Report - ugust 2007 IP6 I;; j ~~=-sQ... ~~.w!='"!. ~ -_.~ -........ - CITY OF IOWA CITY City Council Meeting Schedule and Work Session Agendas DEJ September 20, 2007 www.icgov.org TENTATIVE FUTURE MEETINGS AND AGENDAS I . MONDAY, OCTOBER 1 Emma J. Harvat Hall 6:30p Council Work Session . TUESDAY, OCTOBER 2 7:00p Formal Council Meeting Emma J. Harvat Hall . MONDAY, OCTOBER 15 6:30p Council Work Session Emma J. Harvat Hall . TUESDAY,OCTOBER16 7:00p Formal Council Meeting Emma J. Harvat Hall . MONDAY, NOVEMBER 5 TBA Council Work Session 7:00p Special Formal Council Meeting Emma J. Harvat Hall . MONDAY, NOVEMBER 12 Veterans' Day - Offices closed . THURSDAY, NOVEMBER 22 Thanksgiving Day - Offices closed . FRIDAY, NOVEMBER 23 Thanksgiving Day Holiday - Offices closed . MONDAY, NOVEMBER 26 6:30p Special Council Work Session Emma J. Harvat Hall . TUESDAY, NOVEMBER 27 7:00p Special Formal Council Meeting Emma J. Harvat Hall . MONDAY, DECEMBER 10 6:30p Special Council Work Session Emma J. Harvat Hall . TUESDAY, DECEMBER 11 7:00p Special Formal Council Meeting Emma J. Harvat Hall . WEDNESDAY,DECEMBER19 4:30p Joint Meeting Coralville . MONDAY, DECEMBER 24 Christmas Holiday - Offices closed . TUESDAY, DECEMBER 25 Christmas Day- Offices closed ,~ ! -~= -....!t ,....--..... ;t~W!i ~ ~lIIn' -.: CITY OF IOWA CITY MEMORANDUM CiW Date: September 19, 2007 To: City Council From: Jeff Davidson, Director of Planning and Community Development 7P( Re: Iowa City Zoning Ordinance Regulation of MidAmerican Energy facilities At your September 17 work session discussion on the MidAmerican Energy franchise, you asked how MidAmerican facilities are regulated through the zoning ordinance. The zoning ordinance categorizes MidAmerican facilities as "basic utility uses." Utility substations are allowed in all industrial, commercial, and research zones. They are not allowed in residential zones. Substations located in an industrial zone must be set back at least 200 feet from any residential zone and screened from public view with appropriate landscaping. For public safety purposes, the City may also require the substation to be fenced. If the 200 foot setback cannot be met, there is an option to apply for a special exception from the Board of Adjustment. Basic Utility Uses are allowed only by special exception in commercial zones and research zones, so that each location and proposed facility can be considered on a case by case basis and appropriate screening and setbacks from adjacent uses established. Research zones require minimum lot sizes of an acre or more, which give these zones their campus-like settings. Since a large acreage is not typically necessary for a utility substation, there is an option to request a special exception to reduce the minimum lot size for Basic Utility Uses when located in a research zone. Let me know if you have any questions. cc: Dale Helling Bob Miklo Karen Howard ppddir/mem/midam-facilities9-18.doc c;:] ,~ ! -~= -....!t ,....--.... ;t~~!i ~ ~1IIJ.i\f~ ..../.;,. CITY OF IOWA CITY September 17, 2007 410 East Washington Street Iowa City. Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www.i(gov.org Property Owners abutting Mormon Trek Boulevard south of Highway 1 Re: Request for street name change Dear Property Owner: Last month we forwarded a survey to you asking your opinion of changing the name of Mormon Trek Boulevard to McCollister Boulevard between Highway 1 and Old Highway 218. This proposal to change the name of Mormon Trek Boulevard was requested by a property owner in the vicinity, and the survey was sent to all property owners abutting Mormon Trek Boulevard south of Highway 1. Of the eight surveys sent out, six were returned. One respondent is in favor of the name change; four respondents are against the .name change; and one has no preference. The most consistent response we had from those against changing the name of Mormon Trek Boulevard to McCollister Boulevard is due to the investment they have made into the current street name on their advertising, stationery, and other documents. Based on this response from property owners abutting Mormon Trek Boulevard, staff is not forwarding the street name change proposal to the City Council. The City Council will be made aware of this by copy of this letter. Please contact me atjohn-yapp@iowa-city.org or 356-5252 with any questions. . Sincerely, 7J/~ John Yapp Transportation Planner cc: Dale Helling Jeff Davidson Rick Fosse Ron Knoche City Council jccogadm/ltrs/mccollister9-14. doc ~ Iowa City Police Department P .A. U. L.A. Report - August 2007 (Possession of Alcohol Under Legal Age) Monthly Totals Year-to-Date Totals PAULA per Visit Business Name [occupancy] visits arrests visits arrests (year-ta-date) Airliner [265] 3 0 19 1 0.053 American Legion [140] Aoeshe Restaurant [156] Atlas World Grill [165] 6 0 0.000 Baldy's Wraps [47] B.P.O. Elks #590 [205] Bob's Your Uncle (Dodge) [#] Bob's Your Uncle (M.Trek) [204*] Bo-James [111] 1 0 12 0 0.000 [It's] Brothers Bar & Grill [456] 7 7 60 44 0.733 Brown Bottle [289] Buffalo Wild Wings Grill & Bar [179] 1 0 1 0 0.000 Cafe Z [56] Carlos O'Kelly's [299] Club Car[56] 1 0 0.000 College St Billiard Club [250] 1 0 13 1 0.077 Colonial Lanes ,{502] 1 0 9 0 0.000 Cottage Bakery & Cafe [156] Dave's Fox Head Tavern [87] 1 0 0.000 David's Place [#] Deadwood Tavern [218] 2 0 5 0 0.000 Devotay [45] Diamond Dave's (Old Capitol) [203] Diamond Dave's (Sycamore) 1104] Donnelly's [#] (MAR: new owner) 3 1 0.333 Dublin Underground [57] 808 Restaurant & Nightclub [176] 4 1 27 20 0.741 EI Ranchero [161] Englert Theatre [#] ETC [178] 2 0 22 15 0.682 Farra's 2 0 9 1 0.111 [The] Fieldhouse [420] 8 12 78 94 1.205 First Avenue Club [500] 1 0 0.000 Fitzpatrick's [116] 1 0 0.000 Formosa Asian Cuisine [#] 3 1 0.333 Fraternal Order of Eagle's [315] 1 0 0.000 George's Buffet [75] Givanni's [187] Godfather's Pizza [170] Graze [49] (MAR: new) Grizzly's South Side [265] 3 0 0.000 Ground Round Restaurant [192] Hilltop Lounge [90] 3 0 5 0 0.000 IC Ugly's [72] 1 0 0.000 India Cafe [100] Iowa City Yacht Club [119] 3 0 0.000 Jimmy Jack's Rib Shack [#] Joe's Place [161] 1 0 9 0 0.000 Joseph's Steak House [#] Kandy Land [120] 3 0 0.000 La Casa [300] Linn Street Cafe [80] Los Portales [161] Loyal Order of Moose [476] Martini's [166] 2 0 25 3 0.120 MasaJa [46] Mclnnerney's [154] 1 0 0.000 Micky's [70] 1 0 0.000 Mill Restaurant [325] Motley Cow Cafe [25] Okoboji Grill [222] Old Capitol Brew Works [394*] 1 2 2.000 One-Eyed Jake's [355] 2 2 39 38 0.974 One- Twenty-Six/Loft [105] Oyama Restaurant [87] Pagliai's Pizza [113] Panchero's (Clinton St) [62] Panchero's (Riverside Dr) [95] Piano Lounge [65] 1 0 5 0 0.000 Picador [339] 4 1 0.250 Pit Smokehouse [#] Pizza Hut 1681 Quality Inn/Highlander [971] Que Bar [458] 1 0 13 2 0.154 Quinton's Bar & Deli [149] 8 0 0.000 Rick's Grille & Spirits [120] Riverside Theatre [#] Saloon [#] (MAY: new) Sam's Pizza [94] 1 1 1.000 Sanctuary Restaurant & Pub [132] Shakespeare's [120] 1 0 6 0 0.000 SheratonNetro/Morgan's [214] 1 1 1.000 Skybox [47] 3 0 0.000 Speakeasy [#] 2 0 20 1 0.050 Sports Column [249] 8 11 56 72 1.286 Studio 13 [230] 2 0 12 2 0.167 Summit 14841 5 8 45 55 1.222 Tait's Natural Foods [#] Takanami [148] Thai Flavors [60] Thai Spice [91] Union Bar [725] 8 6 72 44 0.611 VFW Post #3949 [197] 5 0 0.000 Verde [144?] 1 0 0.000 Vine Tavern [170] 3 0 0.000 Vito's [235] 3 0 35 25 0.714 Wig & Pen Pizza Pub [203*] Zio Johno's Spaghetti House [94] Z'Mariks Noodle Cafe [47] Totals: 71 47 653 425 0.651 Other PAULA at non-business locations: 30 77 PAULA Totals: 77 current month 502 year..fo-date [*includes outdoor area] MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE July 24, 2007 CITY HALL, LOBBY CONFERENCE ROOM APPROVED Members Present: Regenia Bailey, Connie Champion, Bob Elliott Members Absent: none Staff Present: Wendy Ford, Jeff Davidson, Tracy Hightshoe, Steve Long. Others Present: Nancy Quellhorst, Mark Nolte, Joe Raso, Anna Sobaski and Darin Vig with Gluten Evolution, IIham B. Mohamed with Nile Valley RECOMMENDATIONS TO CITY COUNCIL: Champion moved, seconded by Elliott, that the Alpla Expansion TIF application be recommended for Council approval: Motion passed 3-0. Elliott moved, seconded by Champion, that the following recommendation regarding Gluten Evolution LLC be forwarded to Council for the August meeting: $50,000, partially secured by a mortgage on the private residence. Deferred payment would be allowed, not to exceed 6 months. Term would remain at 7 years, 3% interest rate. Motion passed 3-0. CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 8:30 AM. APPROVAL OF MINUTES FROM July 10. Minutes were approved as amended. ALPLA EXPANSION TIF APPLICATION Ford reviewed the City's positive history with Alpla and details of the current proposed development agreement - a 4 year 100% TIF rebate capped 'at $600,000. Alpla would expand into an 82,200 square foot addition to the old General Mills building, and agree to maintain 180 permanent full time positions and add 25 additional positions, at an average of $14.00 per hour or greater, plus benefits. Ford further noted that they could not specifically deal with old noise problems in the new agreement, but included noise issues in Article 2f of the agreement as such: Developer will fully cooperate with the City in resolution of any traffic, parking, trash removal, excessive noise or public safety problems which may arise in connection with the construction and operation of the Minimum Improvements. Alpla has invested improvements on the noise issues on the older buildings. Marcia Klingaman had had made some neighborhood calls on the issue, and found that perceptions of the noise output ranged from no issue to very annoying. Champion moved, seconded by Elliott, that the Alpla Expansion TIF application be recommended for council approval: Motion passed. GLUTEN EVOLUTION CDBG ECONOMIC DEVELOPMENT FUNDS REQUEST Hightshoe reviewed the staff recommendation and rationale included in the packet. Staff recommendation is to provide a $50,000 loan, partially secured by a mortgage on the private w Economic Development Committee July 24, 2007 Page 2 residence. Job creation would require 1.5 FTEs. Additionally, she noted that she would not advise creating additional jobs until cash flow improves. Deferred payment would be allowed, however not to exceed 6 months. Term would remain at 7 years, 3% interest rate. Elliott noted that the initial request was for $105,000, and inquired whether $50,000 would be enough to address their financial needs. Anna Sobaski, owner, responded that it will allow the hiring of one person, and the purchase of a much needed forklift in the warehouse. Darin Vig said $50,000 addresses the short-term need; at present, staff is just Sobaski and her sister. The new position would provide part-time help with marketing, support for PR and sales. Bailey inquired about profit/loss. Vig responded that they purchase their raw materials from a copacker, so their cost per items sold is very constant. Cost is about 40% of the selling price. Sales are going up; Sobaski noted that as they sell more, the cost should come down because they will qualify for volume discounts. Bailey asked about sales volume. Volume has increased from 50,000 in 2004 to 200,000 units today. Market penetration is national (they are in all 50 states), and international; they ship to Canada and the UK regularly. They are in the national chain Wild Oats, which is merging with Hall Foods. Elliott moved, seconded by Champion, that the following recommendation be forwarded to Council for the August meeting: $50,000, partially secured by a mortgage on the private residence. Deferred payment would be allowed, not to exceed 6 months. Term would remain at 7 years, 3% interest rate. Motion passed. NILE VALLEY RESTAURANT. Hightshoe introduced this application for a new restaurant serving Middle Eastern/Mediterranean food and gourmet coffee, beginning in September. They have a location on the ground floor of a multi-unit complex at 335 S Gilbert Street. They are requesting funds for working capital, construction, and inventory. The applicant initially requested $110,000, but has re-submitted the request at $50,000. As a startup business, this is more risky, and there is no collateral for the loan. The applicant disclosed that the co-owner filed for bankruptcy in 1997. However, the credit report indicates no past due amounts, and demonstrates that the applicants have a current history of paying loan obligations. The owner is willing to make a significant personal financial investment in the business, up to about $70,000. Any funds used for construction would require payment of union wages, whether they used union workers or not. This is likely to limit available contractors and increase the price of the work. Staff therefore recommends $25,000 for working capital only, 5 year term (maximum of 7 years) at 4% interest. Regarding competition, Hightshoe noted that the City did fund Oasis Falafel with CDBG- Economic Development Funds. That loan was for $25,000, 4% interest, 5-year term. Elliott inquired about the lack of collateral. IIham Mohamed, the applicant, responded that she had no house to put up, and US Bank is securing their loan by having the applicant purchase the equipment through the bank. Bailey asked what other communities do with these kinds of loans and securities. Hightshoe mentioned the city of Dubuque has an economic development fund, but no specific policies on its distribution. The city of Des Moines has more detailed rules. Bailey voiced a few concerns, noting that restaurants are always a challenge. Comparison to Oasis is good, a comparable situation; however, noted, that they had done some marketing and had a following before their opening. When asked what she saw as her market base, or her following, Mohamed replied that she has done some vending in Iowa City; at the cultural fair in the Field House and RAGBRAI in Coralville last year, for example. Economic Development Committee July 24, 2007 Page 3 Bailey stated that the cash sales projections look very ambitious. Asked if she thought it was realistic, Mohamed said they figured on $6 average sales per person, breakfast, lunch, and dinner; and doesn't see it as a difficult thing to accomplish. Her goal is to reach 150 sales per day for the first 6 months, and that would clear $100,000 for the first year. She is planning to deliver, also. Proposed hours are 6 a.m. to 9 p.m., 7 days a week at the beginning, with 10 employees. Bailey noted 150 people a day seems ambitious, noting that there are down days and months. Elliott has concerns about providing an unsecured loan with taxpayers' money; saying its neat to have this type of business in that location, but starting from scratch with no following is risky. He is concerned that projected sales cannot be met. Bailey added that most of the expenses are fixed; and there is not a lot of "wiggle room" in the projections. Elliott also noted the lack of a resume in her materials. He questioned her business experience, noting the past tells a lot about the future. Mohamed responded that they are immigrants from Sudan and had done many different things since that time. She had been an air hostess for 10 years for Saudi Air Lines and Sudan Airways. They came to the U.S. in 1993; since then they have worked in many different jobs, and both got higher education. Her husband, Bedrelddin Ahmed got a PhD and is a United Nations translator in Iraq currently; Mohamed graduated from Kirkwood Community College and got a job at the Neighborhood Centers. Elliott inquired whether she had food service experience or experience running a business, or managing a payroll, or other management experience. Mohamed answered that she did not. Bailey asked whether she had worked with the Small Business Development Center. Mohamed responded yes, and also with the Cedar Rapids Business Center, and that she is also planning to take more business classes. Bailey asked whether she had developed different sales scenarios, or, if they don't make projected sales, how they would deal with the shortfall. Mohamed noted that she would create a plan addressing different revenue scenarios. Champion asked where the projection of 150 customers per day came from and what they absolutely needed to survive. Mohamed replied that she got the number by studying other similar restaurants. She did her own observational survey during the last days of May, when business was very slow, and counted an average of 16 an hour; she felt she could do much better. Bailey indicated interest in going ahead but would like to see different revenue scenarios along with a marketing plan. $25,000 is an appropriate figure. Bailey noted that it would be nice to have something other than liquor stores in that area. Champion also indicated that she was not against the project, but would like to see a marketing plan. Quellhorst asked if she had catering plans. Mohamed replied yes; she plans to purchase a bicycle for close-by deliveries. She doesn't know how much of that she can do until she starts. Bailey reiterated the need to see a marketing plan. Elliott repeated his problem with no collateral, and the lack of person-power to handle both operational marketing and other kinds, such as catering. Bailey asked Mohamed to bring back a marketing plan and cash flow scenarios based strictly on student basis to see ups and downs. Nolte suggested Mohamed also check the USAID programs to aid refugees; noting that even though she is now a U.S. citizen, she still qualifies. Bailey stated that the request will be revisited at the next meeting, which will be' scheduled early August in order to get it on Council's August agenda. STAFF TIME Ford provided new wording for the bankruptcy question on CDBG loan applications: Has the company or any officer of your company been involved in bankruptcy or insolvency proceedings Economic Development Committee July 24, 2007 Page 4 during the past 7 years from the date of this application? If so, provide the details. The wording was accepted by majority agreement. Ford mentioned that Hightshoe had done some research about how other communities distribute their CDSG loan proceeds. We are going to continue this research to determine proper distribution and also to define the most efficient way to have a CDBG loan fund portfolio. Hightshoe then provided a spreadsheet showing the history of all Iowa City CDBG Economic Development Fund applications and status from July 1, 2002 (FY03) to present. Ford announced that in September the National Development Council will be providing a three- day class in St Louis that Hightshoe will attend. Elliott complimented Hightshoe's work. COMMITTEE TIME The committee scheduled their next meeting: Monday, August 13, at 8:30 a.m. ADJOURNMENT Champion moved and Elliott seconded adjournment at 9:31 AM. Motion passed. Next meeting is scheduled for Monday, August 13,8:30 AM, in the City Hall Lobby Conference Room. Council Economic Development Committee Attendance Record 2007 Name Term 1/23 2/09 2/20 2127 3/06 3/12 4/06 4/12 5/29 5/31 6/21 7/10 7/24 Expires Regenia Bailey 01/02/08 X X X X X X X X X X X X X Bob Elliott 01/02/08 X X X X X X X X X X X X X Connie Champion 01/02/08 X X X X X X X X X OlE X X X Key: X = Present o = Absent OlE = Absent/Excused Absent/Excused I O~;61 I IOWA CITY TELECOMMUNICATIONS COMMISSION DRAFT MONDAY, JULY 23, 2007--5:30 P.M. CITY CABLE TV OFFICE, 10 S. LINN ST.-TOWER PLACE PARKING FACILITY MEMBERS PRESENT: Saul Mekies, Gary Hagen, Brett Gordon, Margaret Wieting MEMBERS ABSENT: Hans Hoerschelman STAFF PRESENT: Drew Shaffer, Dale Helling, Bob Hardy, Mike Brau OTHERS PRESENT: Lee Grassley, Josh Goding, Laura Lowe, Betty McKray RECOMMENDATIONS TO CITY COUNCIL None at this time. SUMMARY OF DISCUSSION Grassley said the state rules implementing SF 554 will be finalized soon. Mediacom will be submitting comments to the Iowa Utilities Board seeking clarification on areas they view as vague. Some of the premium movie channels west coast feeds will be eliminated. The west coast feeds had allowed consumers to view movies at different times but with the video on demand service consumers could start a movie at any time. Dropping those feeds will allow Mediacom to use that bandwidth to ease the transition to all digital transmission. Mediacom and the Big Ten Network (BTN) are continuing carriage negotiations. Mediacom wishes to place it in a digital sports tier so consumers who don't desire the programming don't have to pay for it. The BTN is demanding to be placed on the family package and at greater fees than Mediacom believes is justified. Goding reported that P A TV would be sending most of their staff to the National Alliance for Community Media conference the last week in July. P A TV will be closed July 24-29 for the conference, Programs will be cablecast as usual. Perry Ross, Kevin Hoyland and Lowe met to discuss the direction for channel 21. Webcasting the channel's programming is being considered. The schools will be preparing a proposal for CTG funding for a tricaster pro to improve production capacity. Also under consideration is funding for a teacher to oversee an organization to involve students in creating programming for channel 21. Shaffer distributed a schedule for the Video Voter Project. The program will start with the school board candidates, proceed to the city council primaries, the city council general election and then to the presidential caucuses. Shaffer reported that the Iowa Utilities Board will be releasing their proposed rules implementing SF 554 on August 21. There will be a public hearing on the rules Sept. 20. The City is preparing written comments and Shaffer and Brau will likely attend the public hearing. APPROV AL OF MINUTES Hagen moved and Wieting seconded a motion to approve the June 25, 2007 minutes. The minutes were approved unanimously. ANNOUNCEMENTS OF COMMISSIONERS Mekies asked if the Commissioners wished to hold an August meeting given vacation schedules. Wieting moved and Hagen seconded a motion to cancel the August meeting. The motion passed unanimously. Mekies distributed a memo regarding the Community Television Group (CTG) funding allocations. Hagen asked about funds carried over from the previous year. Hardy said that there is a $2,500 allocation for channel promotion that has not yet been spent. Public service announcements are currently being shot. The CTG typically presents their funding request in May but have not met yet this year. Hardy said he will write a memo for the next meeting and include the criteria used to determine funding requests. SHORT PUBLIC ANNOUNCEMENTS Grassley reported that Jon Koebrick has left Mediacom to attend law school. CONSUMER ISSUES Shaffer referred to the complaint report in the meeting packet and noted that the number of complaints was down a bit to four. All the complaints that could be resolved have been resolved. MEDIACOM REPORT Grassley said the state rules implementing SF 554 will be finalized soon. Mediacom will be submitting comments to the Iowa Utilities Board seeking clarification on areas they view as vague. Some of the premium movie channels west coast feeds will be eliminated. The west coast feeds had allowed consumers to view movies at different times but with the video on demand service consumers could start a movie at any time. Dropping those feeds will allow Mediacom to use that bandwidth to ease the transition to all digital transmission. Mediacom and the Big Ten Network (BTN) are continuing carriage negotiations. Mediacom wishes to place it in a digital sports tier so consumers who don't desire the programming don't have to pay for it. The BTN is demanding to be placed on the family package and at greater fees than Mediacom believes is justified. The disagreement is reflected nationally with other major college conferences, which also have formed television networks not being able to negotiate carriage agreements with other cable providers. UNIVERSITY OF IOWA REPORT No representative was present. P A TV REPORT Goding reported that P A TV would be sending most of their staff to the National Alliance for Community Media conference the last week in July. PATV will be closed July 24-29 for the conference. Programs will be cablecast as usual. KIRKWOOD COMMUNITY COLLEGE REPORT No representative was present. SENIOR CENTER REPORT No representative was present. Betty McKray who volunteers at SCTV said that things continue to go well at SCTV. IOWA CITY COMMUNITY SCHOOLS REPORT Lowe reported two new music concert programs have been produced. Perry Ross, Kevin Hoyland and Lowe met to discuss the direction for channel 21. Webcasting the channel's programming is being considered. The schools will be preparing a proposal for CTG funding for a tricaster pro to improve production capacity. Also under consideration is funding for a teacher to oversee an organization to involve students in creating programming for channel 21. LIBRARY REPORT No representative was present. CITY MEDIA UNIT REPORT Hardy reported that requests for programming from the City has been down a bit but the Community Television Service requests continue to be high. The Media Unit has been using the Cable TV Division's slower production schedule to catch up on the backlog of editing. Work on promotional public service announcements for all the access channels is continuing. The Video V oter Project and campaign related productions will pick up in the coming months. CABLE ADMINISTRATOR REPORT Shaffer said interviews for the Special Projects Coordinator position for the Avatar Project have been completed but an offer has not yet been made. Shaffer distributed a schedule for the Video V oter Project. The program will start with the school board candidates, proceed to the city council primaries, the city council general election and then to the presidential caucuses. Shaffer distributed an email from Grassley showing the decline in basic tier cable rates over the past few years. Shaffer said he and Hardy will be attending the Alliance for Community Media conference and will prepare a written report for the Commission. LEGISLA nON AND FCC UPDATE Shaffer reported that the Iowa Utilities Board will be releasing their proposed rules implementing SF 554 on August 21. There will be a public hearing on the rules Sept. 20. The City is preparing written comments and Shaffer and Brau will likely attend the public hearing. ALLIANCE FOR COMMUNITY MEDIA CONFERENCE Shaffer said he will prepare a report for the Commission on the conference. WIFI Shaffer said he has been in contact with representatives from CFreewireless. CFree would like their free wi-fi service to College Green Park but an equipment upgrade, which was believed to make that possible likely, would not work. They will be talking with the Fire Department to see if equipment, which would require a power source, could be placed in the park. CFree continues to explore costs for equipment upgrades and will be preparing a proposal that could come before the Commission. ADJOURNMENT Hagen moved and Wieting seconded a motion to adjourn. The motion passed unanimously. Adjournment was at 6:37. Respectfully submitted, Drew Shaffer Cable TV Administrator j ~ 1 -~= -4 ;t~W~'t ~ ~IIII.' _:.. htllikd ..jo Cc;tln.aj ., eallcl,'dales C I T Y 0 F lOW A C I T Y 9/;;./ MEMORANDUM DATE: TO: FROM: RE: 9/21/2007 CITY COUNCIL (~ SUSAN DULEK, ASS'T. CITY A TTORNE~ CABLE TV UTIGA TION Introduction In light of recent press accounts of litigation over cable TV franchise fees, the City Attorney's Office thought it would be helpful to provide you with information on the nature of the lawsuits and their potential impact on Iowa City. In early September 2006, various individuals filed separate class action lawsuits against the cities of Bettendorf, Des Moines, Sioux City, Cedar Rapids, Davenport, Waterloo, and Dubuque. In each case, the plaintiff alleged that the local cable franchise fee is illegal based on Kracnes v. City of Des Moines, 714 N.W.2d 632 (Iowa 2006) and requested that the cities refund the fees. Kracnes The plaintiff in Kracnes argued that the franchise fee charged for gas and electric utilities by the City of Des Moines, 5% of the utility company's gross receipts, was an illegal tax. The Iowa Supreme Court ruled that the franchise fee cannot be greater than the cost to administer the franchise agreement, which is the cost to regulate, supervise, and enforce the franchise agreement. Because the administrative costs were not in the record, the Supreme Court could not determine if Des Moines' fees were illegal. The Supreme Court remanded the case back to the district court to determine the actual administrative cost. It is very important to note that the Supreme Court did not rule that all franchise fees are illegal, but rather that they must be "reasonably related to the City's administrative costs." In other words, cites cannot generate revenue, but they can cover their expenses. There are additional legal wrinkles, so to speak, that distinguish the cable cases from Kracnes, namely the federal cable communication law and the state-wide cable franchise bill passed this spring. One of those wrinkles, the new cable franchise law, was the basis of a district court judge ruling last week in Lindstrom v. City of Des Moines. Senate File 554 Senate File ("SF") 554, often referred to as the "statewide cable franchise bill," includes two key franchise fee provisions that were designed to address the Kracnes holding that fees must reflect actual costs. One provision in S.F. 554 provides that a "franchise fee may be assessed or imposed by a municipality without regard to the municipality's cost of inspecting, supervising, or otherwise regulating the franchise...." Another provision in S.F.554 states that fees paid in the past pursuant to a franchise agreement are "deemed and declared to be authorized and legally assessed...." In short, future fees need not be based on reasonable actual costs and all fees paid in the past, even if not based on actual costs, are deemed to be legal. These two provisions are codified at sections 477A.7(4) and (5) of the Iowa Code. Lindstrom v. City of Des Moines Plaintiff in Lindstrom argued that the provision in S.F. 554 that legalizes all previously paid franchise fees is unconstitutional, and the district court agreed. Plaintiff conceded that the provision for fees paid after the effective date of S.F. 554,May 29,2007, is constitutional. Because not all the issues raised in the Lindstrom case have been resolved, the City of Des Moines will likely apply for an interlocutory appeal to the Iowa Supreme Court. An interlocutory appeal is an appeal of a decision in the middle of the case, as opposed to a final decision when the case is fully complete. The Supreme Court grants very few interlocutory appeals, but it likely will grant this one. If so, then it will be 2008 at the earliest before a decision is made. If an interlocutory appeal is not granted, then the remaining issues in Lindstrom will be considered by the district court, and at that time, the City of Des Moines then has the right to appeal the constitutional issue, and as well as any other decision. . When the Iowa Supreme Court finds a state law unconstitutional under either the Iowa Constitution or under the US Constitution, the law is of no effect. Presently, the district court's decision in the Lindstrom that part of SF 554 is unconstitutional only applies to the City of Des Moines, and it is not precedent in any other case. If Lindstrom case is accepted for interlocutory appeal, then the Supreme Court's decision will be precedent for other similarly situated cities. If the Supreme Court upholds the Lindstrom decision and rules that the retroactive legalization of fees is unconstitutional, it probably means that those seven cities will have to be prepared to prove their cable franchise fees prior to this past May reflect actual costs. Even at that, the cities will presumably assert that the plaintiffs cannot recover an overpayment of franchise fees prior to the time they filed their lawsuits. If the cities win on that issue (and that issue inevitably will go to the Supreme Court as well), then the plaintiffs would only be able to recover an overpayment of fees between the time they filed their lawsuits and May 29,2007, the effective date of S.F. 554, and then only to the extent the court determines their franchise fees exceed what was the reasonable cost to those cities to regulate the franchisees. Impact on Iowa City Even if the Supreme Court affirms the district court decision in Lindstrom, that should not affect the retroactive legalization of franchise fees in any city where such a lawsuit was not on file when S.F. 554 was passed, such as Iowa City. Furthermore, even if affirmed, the Lindstrom holding would not affect the provision of S.F. 554 which legalized franchise fees prospectively. As a result, the Lindstrom case should not impact cities such as Iowa City, where a lawsuit challenging franchise fees was not on file when S.F. 554 went into effect. If you have questions, please contact the City Attorney's Office. Copy to: Dale E. Helling, Interim City Manager Eleanor M. Dilkes, City Attorney Marian K. Karr, City Clerk Drew Shaffer, Cable TV Administrator 2