HomeMy WebLinkAbout2007-10-02 Transcription
#2
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ITEM 2
PROCLAMATIONS.
b) National Physician Assistant Week: October 6-12, 2007
Wilburn:
(reads proclamation)
Karr:
Here to accept the proclamation is Luke Hammer, Kerstin Burtiner,
Melissa Opsahl, and Nicki Johnson. (applause)
Wilburn:
Thanks for coming down. Thank you.
Hammer:
Thank you to the City Council for, uh, approving this, and uh, October 6th
through the lih, uh, we're going to have an information booth at the
hospital, so if anybody wants to stop by and see what a physician assistant
does, urn, you're more than welcome to stop by. It will be in the fountain
entrance, near Java House. Thank you.
Wilburn:
Thank you.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#3
ITEM 3
Wilburn:
Donta:
Mellecker:
Donta:
Wilburn:
Page 2
OUTSTANDING STUDENT CITIZENSHIP AWARDS - Roosevelt
Elementary
Will the students from Roosevelt Elementary please step forward. Well,
good evening, and thank you for coming down. Guess you have to stay a
little bit longer than you thought tonight, huh? All right. This is, uh, urn,
noises outside, uh, this is the time ofthe Council that we really look
forward to. It's been a while since we've done some of these, but, urn, it's
very important for us to hear what you all have been up to, and why
you've been recognized as Outstanding Student Citizens, or why you think
you have, but uh, we really appreciate the work that you all have been
doing, and why don't we go ahead and let the rest of the. . .rest of the town
know.
My name is Max Donta, and I go to Roosevelt Elementary, Our school
was remodeling the library this summer, and I helped by helping to install
and wire the computers, by creating a new way to organize books-on-tape
collection, and by shelving books. I also flattened boxes left over when
the books were shelved. Thank you. (applause)
Hello. My name is.. .thank you for allowing me to be here tonight. I am
honored to accept this award for citizenship. My name is Morgan
Mellecker. I am 11 years old and I am in 6th grade at Roosevelt. To me,
being a good citizen is all about helping others. At Roosevelt, I am
currently in Texperts, and have a 1 st grade Reading Buddy. I am also
willing to help any teacher or person who would need help. I have served
as a Peer Assistance team member, and as a Student Council member.
V olunteerism is a very large and important part of my life. In the
following is a quote that I want to read that I really believe in: If you want
to be happy for an hour, go watch TV. If you want to be happy for a day,
go to an amusement park. If you want to be happy for a lifetime, go out
and help others. Again, thank you for allowing me to be here tonight.
(applause)
Hello, my name is Nik Donta, and I go to Roosevelt Elementary. This
summer the school library was being remodeled. I helped for part of the
summer by setting up the new computers, cleaning the keyboards,
organizing books, and folding up boxes. I enjoyed helping out at the
library. Thank you. ( applause)
Well, thank you so much. Again, it's very exciting to hear about the work
that you all have done, and the fact that you've shown leadership by
stepping forward and volunteering in the way that you have, and I'm very
confident that the three of you will continue showing leadership in this
community. We've got a Citizenship Award for all three of you, and they
all have your name on them, but I'll read what this says so that you know.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#3
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Citizenship Award - for their outstanding qualities ofleadership within
Roosevelt Elementary, as well as the community, and for their sense of
responsibility and helpfulness to others, we recognize you as an
Outstanding Student Citizen. Your community is proud of you. Presented
by the Iowa City City Council, and Max, congratulations (applause) and
Morgan and Nik (applause continues).
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#6 Page 4
ITEM 6 PLANNING AND ZONING MATTERS.
b) CONSIDER AN ORDINANCE CONDITIONALLY REZONING
APPROXIMATELY 45.04 ACRES OF PROPERTY LOCATED
EAST OF CAMP CARDINAL BOULEVARD AND SOUTH OF
KENNEDY P ARKW A Y FROM INTERIM DEVELOPMENT -
OFFICE RESEARCH PARK (ID-ORP) ZONE TO MEDIUM
DENSITY SINGLE FAMILY RESIDENTIAL (RS-8) ZONE
WITH A PLANNED DEVELOPMENT OVERLAY (OPD-8)
ZONE FOR APPROXIMATELY 33.69 ACRES; INTERIM
DEVELOPMENT SINGLE-FAMILY RESIDENTIAL (ID-RS)
ZONE FOR APPROXIMATELY 9.32 ACRES, AND INTERIM
DEVELOPMENT OFFICE COMMERCIAL (ID-COt) ZONE
FOR APPROXIMATELY 2.03 ACRES. (REZ07-00011)
(SECOND CONSIDERATION)
Bailey: Move second consideration.
Vanderhoef: Second.
Wilburn: It's been moved by Bailey, seconded by Vanderhoef. Discussion? I'm
having difficulty speaking this evening (laughter), it's all the tornado and
all that stuffthrew me for a loop. That's why I'm laughing at myself.
Discussion? Roll call. Oh, thank you. Are there any Council Members
who need to disclose any Ex-Parte communications related to this item?
No? Roll call. Item carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
~ P~5
ITEM 6 PLANNING AND ZONING MATTERS.
c) CONSIDER AN ORDINANCE REZONING APPROXIMATELY
0.95 ACRES OF LAND LOCATED AT 805 & 817 SOUTH
GILBERT STREET FROM INTENSIVE COMMERCIAL (CI-l)
ZONE TO COMMUNITY COMMERCIAL (CC-2) ZONE.
(REZ07-00012) (SECOND CONSIDERATION)
Wilburn: Expedited action has been requested.
Vanderhoef: I move that the rule requiring that ordinances must be considered and
voted on for passage at two Council meetings prior to the meeting at
which it is to be finally passed be suspended, that the second consideration
and vote be waived, and that the ordinance be voted on for final passage at
this time.
Wilburn: Moved by Vanderhoef to expedite.
Champion: Second.
Wilburn: Seconded by Champion. Discussion? Should I do Ex-Parte.. . okay, all
right. Roll call. Item carries 7-0.
Vanderhoef: I move that the ordinance be finally adopted at this time.
O'Donnell: Second.
Wilburn: Moved by Vanderhoef, seconded by O'Donnell. Discussion? Now, Ex-
Parte communications. Any Council Members any Ex-Parte
communications on this item? No? Roll call. Item carries 7-0.
Karr: Motion to accept correspondence.
Champion: So moved.
Vanderhoef: So moved.
Wilburn: Moved by Champion, seconded by Vanderhoef. All those in favor say
aye, opposed same sign. Carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#6 Page 6
ITEM 6 PLANNING AND ZONING MATTERS.
d) CONSIDER A RESOLUTION AUTHORIZING THE MAYOR
TO SIGN AND CITY CLERK TO ATTEST AN ACCESS
EASEMENT AND PARKING AGREEMENT WITH
HIERONYMUS SQUARE ASSOCIATES FOR THE
DEVELOPMENT OF CERTAIN LOTS ON BLOCK 102, IOWA
CITY, IOWA.
Bailey: Move the resolution,
Wilburn: Moved by Bailey.
Correia: Second.
Wilburn: Seconded by Correia. Discussion?
Vanderhoef: Uh, I did talk to staff this morning, so I understand the traffic flow down
there better.
Wilburn: Okay. Any other discussion? Roll call. Item carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#6 Page 7
ITEM 6 PLANNING AND ZONING MATTERS.
e) CONSIDER A LETTER TO THE JOHNSON COUNTY BOARD
OF SUPERVISORS RECOMMENDING DENIAL OF A
REZONING FROM COUNTY AGRICULTURE (A) TO
COUNTY RESIDENTIAL (R) ZONE FOR APPROXIMATELY
4.99 ACRES OF PROPERTY LOCATED ON THE NORTH
SIDE OF ROHRET ROAD SW, APPROXIMATELY .5 MILE
WEST OF ITS INTERSECTION WITH LANDON AVENUE SW
IN UNION TWP.
Champion: Move to send the letter.
Bailey: Second.
Wilburn: Moved by Champion, seconded by Bailey. Discussion? Is this an Ex-
Parte communication.. . any Council Members have any Ex-Parte
communications they need to disclose? Uh, this a motion.. . all those in
favor say aye. Opposed same sign. Carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#6
ITEM 6
Wilburn:
Bailey:
Correia:
Wilburn:
Correia:
Helling:
Correia:
Wilburn:
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PLANNING AND ZONING MATTERS.
1) AUTHORIZING CONVEYANCE OF A STORM WATER
MANAGEMENT DRAINAGE EASEMENT AND A STORM
SEWER PIPE EASEMENT ALONG THE SOUTHWEST
CORNER OF THE IOWA CITY MUNICIPAL AIRPORT TO
HAROLD JOHN DANE, ALLEGRA DANE, JAN ELLEN
SMITH, ROBERT A. DAVIS AND JAMES R. DAVIS.
1. PUBLIC HEARING
This is a public hearing. (pounds gavel) Public hearing is open. (pounds
gavel) Public hearing is closed.
2. CONSIDER A RESOLUTION
Move the resolution.
Second.
Moved by Bailey, seconded by Correia. Discussion?
Is this.. .the $14,100 that will go, the payment for that easement goes to
the Airport. Does that go to pay down debt?
It goes to the Airport, uh, for their use. I'm not sure what they, what plans
they have for that.
Okay.
Any other discussion? Roll call. Item carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#6 Page 9
ITEM 6 PLANNING AND ZONING MATTERS.
g) CONSIDER A RESOLUTION APPROVING THE FINAL PLAT
OF JJR DAVIS FOURTH ADDITION, IOWA CITY, IOWA.
(S UB05-0002 7)
Champion: Move the resolution.
O'Donnell: Second.
Wilburn: Moved by Champion, seconded by O'Donnell. Discussion?
Davidson: One item, Mr. Mayor, at the meeting last night r was unable to answer one
question. r will quickly answer that question right now. There was a
question about this portion of Dane Road, and whether or not it would be
reconstructed in conjunction with this plat. It will not necessarily be, uh,
reconstructed with this plat. rfthe developer chose to have access directly
on to Dane Road, uh, then it would, we would call for it to be
reconstructed; however, it is more likely that with the development of the
property to the east - this is private property here that (unable to hear,
coughing) is redeveloped, is likely when, uh, Dane Road will be
reconstructed and have access to it. Both lot 2 and lot 3, uh, can have
access to the other interior roads of the subdivision, so it's not necessary to
pave Dane Road. It will remain an existing chip sealed road.
Wilburn: Okay, thank you.
Davidson: Thank you.
Vanderhoef: Thank you.
Wilburn: Further discussion? Roll call. Item carries 7-0.
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#7 and 8
ITEM 7
ITEM 8
Wilburn:
Dilkes:
Wilburn:
Smith:
Page 10
ON AN ORDINANCE GRANTING TO MIDAMERICAN ENERGY
COMP ANY, ITS SUCCESSORS AND ASSIGNS, THE RIGHT AND
FRANCHISE TO ACQUIRE, CONSTRUCT, ERECT, MAINTAIN
AND OPERATE IN THE CITY OF IOWA CITY, A NATURAL GAS
SYSTEM FOR A PERIOD OF TEN YEARS, WITH A TEN YEAR
AND FIVE YEAR RENEWAL THEREAFTER, TO FURNISH,
DELIVER AND SELL NATURAL GAS TO SAID CITY AND ITS
INHABIT ANTS.
ON AN ORDINANCE GRANTING TO MIDAMERICAN ENERGY
COMP ANY, ITS SUCCESSORS AND ASSIGNS, THE RIGHT AND
FRANCHISE TO ACQUIRE, CONSTRUCT, ERECT, MAINTAIN
AND OPERATE IN THE CITY OF IOWA CITY, AN ELECTRIC
LIGHT AND POWER SYSTEM FOR A PERIOD OF TEN YEARS,
WITH A TEN YEAR AND FIVE YEAR RENEWAL
THEREAFTER, TO FURNISH, AND SELL ELECTRIC ENERGY
TO SAID CITY AND ITS INHABITANTS.
PUBLIC HEARING
(starts reading Item 7)
Mr. Mayor, can r suggest that you combine Items 7 and 8. The public
hearings for those, the gas franchise and the electric franchise, and do
them at the same time.
That okay with the Council? (several responding) Okay. Uh, let's see
(reads Item 7 and Item 8) This is a public hearing. (pounds gavel) Public
hearing is open. We do have, uh, just for the benefit of the public, uh,
there was a majority of Council that, uh, did not wish to have first
consideration of these ordinance this evening, so that we could have the
public hearing to listen to the comments and have time to digest the
comments from the public. Uh, any Council Members.. .we do have our
attorney representing with us if there's any questions that you have of him,
or if you'd like a quick overview for the public, uh, Council Members may
go ahead and speak. Otherwise we'll go right to the public hearing. Also,
just for the benefit of the public, urn, the attorney that we have
representing us through the negotiations and the negotiating team is up
here to answer any questions for.. . for Council. rfyou have any general
questions about the agreement, ask that you direct those to Council. Go
ahead.
Thank you. My name is Terry Smith. I'm here tonight on behalf of
MidAmerican Energy as our Director of our Community Relations. r have
just a few slides to kind of highlight some of the key points in the
franchise agreement here. So, contrary to some discussion downstairs,
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Council meeting of October 2, 2007.
#7 and 8
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I'm not actually going to read both documents from cover to cover here.
(laughter) Few things to, uh, make sure that we're all clear about, if we
talk about franchise agreements, number one is that MidAmerican is a
state regulated utility, and therefore, the Iowa Utilities Board in the State
of Iowa has jurisdiction over much of our operations. That includes the
rates, the service territory, policies, energy efficiency programs, and low-
income assistance programs. So, those are all under the purview of the
Iowa Utilities Board and therefore outside of the franchise agreements, per
se. Some of the key points that, uh, just highlight from the franchise
agreements, and uh, I'll...in Section 2 is the language covering the term.
As indicated in the reading of this ordinance, the franchise runs for a
period of ten years, and the City has the right to terminate that agreement
at the end often years. There is a one-year window - basically between
year eight and year nine where Council can consider that option. Uh, if
the City does not exercise that right, then the franchise agreement will
then continue on for another ten year period of time. Again, there is that
window for one year, between year 18 and 19 of the agreement, where
Council can on its own terminate the agreement, and uh, if it does not
terminate on, during that window, then it will continue on for a five year
period of time. Under Section 5, there's language covering right-of-way,
and uh, these are the key issues for MidAmerican in that the company has
the right to erect poles, wires, uh, and other appurtenances necessary to
serve the community, and some of the discussion at your last, uh, work
session surrounded this other point, being that the company must secure
the City approval prior to placing any substation or transmission line, uh,
operating above 15,000 volts. So 15,000 volts is our standard distribution
line that we routinely install. Ifwe're looking to build any substation
facilities or other things, we obviously have to come before you for that
approval to do that type of work. Uh, in Section 7, we talk about customer
notification. Here you can see MidAmerican, according to the franchise
agreement, is obligated to undertake, before we undertake any significant
construction or maintenance projects, that the company shall use its best
efforts to notify the affected customers, and those, uh, methods may
include door hangers, telephone calls, direct mail, postcards and letters.
We do many of these things today, of course, but this agreement kind of
codifies that responsibility on. . . for MidAmerican to execute. Section 8
talks about the protection of trees, and within the agreement it says the
company must follow the nationally accepted tree trimming standards.
Again, we do this as a routine regulation, but the agreement, uh, requires
us to continue that policy, and the company cannot remove any tree on
public grounds without prior permission from the City, and the company
shall not dig or trench under the canopy of any tree, either, unless of
course using directional or trenchless technologies, so that we don't hurt
the root system of the tree, and we can protect the life of the tree. Section
9 is a key point in the agreement for the City of indemnification, and the
company shall indemnify and protect the City from claims and damages
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Council meeting of October 2,2007.
#7 and 8
Page 12
caused by the company's negligence. Section 14 covers community
support. This is a new item in this agreement where the company will
continue to support the quality of life issues in our community, and we
will also disclose and provide an annual report to Council, uh, I believe
the timing was by the end of the first quarter after the fiscal year, uh, and
ours is a calendar year, so by the end of March of each year we will come
to you with a report of not only our current year's activities, but the prior
three years, as well. So you'll see a four-year history at that point of
the.. .ofthe community support activities for MidAmerican. These could
include some things such as our energy efficiency programs, of which in
2006,2007, excuse me, was $1.9 million. Our global days of service,
which our employees participate in, and the organizations they donate
their time to, earn money based on the hours that the employees
volunteered to, as well as philanthropic giving that the community, or
philanthropic donations that the company provides within the community.
Section 15 is another key, urn, language for the City. This addresses pole
attachments, where the City has the right to, uh, within, with advanced
notice, to attach their facilities to the MidAmerican poles, located within
those public right-of-ways. We've continued as a status quo up to this
point, in the absence of agreement, but this, again, covers that right for the
City at no cost. Section 16, uh, addresses franchise fees, and the clause
itself provides the City the right to implement franchise fees; however, this
agreement, there are no franchise fees included within the agreement
itself, and if the City were to enact a franchise fee, it would provide 90-
day notice to MidAmerican before it would take effect. Of course,
MidAmerican would have the responsibility to collect those and then pay
them to the City. Section 20, uh, is regarding disaster and emergency
response preparedness. The company is agreeing to participate in the
disaster and emergency response communication task force under a
separate agreement. It's our understanding that the City wants to go to
that next level of preparedness and achievement in that program, and
you're looking for other entities to partner with you, and that included the
utilities, and we're proud to do so. Finally, my last point here tonight is
Section 21 on renewable energy, and the company agrees to participate
with, uh, in a City task force to identify and utilize City-generated
renewable energy options, subject to statutory and regulatory
requirements, of course, and I'm very pleased to report that we have
already put forward a proposal to staff to install, own, and maintain
electric generation out at the landfill site, and utilize the methane gas
produced from the landfill as a source of electric generation.
MidAmerican would incur all costs up front associated with that, along
with all ongoing operation and maintenance of the generation, and we
would provide, uh, payment to the City, according to our proposal, for the
gas that was consumed by that generator. So, it's a no-cost obligation for
the City, and a new revenue source for the City at the same time. So I'm
sure staff, I know staff is considering that option, along with another
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#7 and 8
Bailey:
Smith:
Webber:
Smith:
Wilburn:
Bailey:
Wilburn:
Di1kes:
Wilburn:
Page 13
option, that they've been presented with, and they will probably be
reporting to you at some point in time with their recommendation. So,
obviously that's a type of agreement, or type of a project that
MidAmerican is able to take into a number of locations and we've chosen
as a part of our commitment in long-term business relationships with the
City ofIowa City, to bring it to this community. Are there any questions?
I would like to clarify something. Urn, you said in Section 14 that the
franchise agreement, urn, continues the support of quality of life items in
Iowa City, and the agreement doesn't cull out that MidAmerican will
actually continue that support. I think that that's just assumed. The
requirement is really to provide an annual report. If there was continued
support required, I'm sure I would have tried to attach a dollar amount to
it. So, I just wanted to clarify that.
Yeah, good point. Other questions? Did I misspeak at all, Ivan, on any of
those issues? (laughter)
I hate to be terribly picky, but what you ran through is the electric
franchise. The gas franchise is parallel. There is one terribly picky, truly
picky, there is no state regulation of service territory for gas, and since you
had it on your list I thought I'd point out it doesn't exist in gas, only
electric.
That's true, and I meant to cover that up front, that I've covered this
basically, uh, from the electric franchise perspective. The gas, as you can
see, mirrors that, uh, in most parts. The section number do deviate just
slightly because tree trimming is typically not an issue for gas and other
such items.
I've got a question for you, Eleanor. The, uh, urn, it was item, or Section
21 that Terry had put up, talked about participation in a City renewable
energy.. .energy efficient task force. Urn, we've been having some loose
discussions with the County, uh, about possibly some type of county-wide
entity rather than having two going on at.. .if that comes to fruition, is
there need to change the language of that to reflect that, or. . .
You were referring to the Cool Cities Task Force (unable to hear).
Yeah. They're willing to participate with the City. . .
Task force.. . (unable to hear)
County, yeah. . .
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2, 2007.
#7 and 8
Webber:
Wilburn:
Dilkes:
Wilburn:
Bailey:
Dilkes:
Wilburn:
Smith:
Hansen:
Page 14
We would agree to participate in the county task force. It's not a problem
for us.
Yeah, I figured you would, yeah.
(unable to hear)
Okay.
Well, if the City task force were taken care of through a county-wide, it
would seem to make sense.
(unable to hear)
Okay, all right.
Thank you.
My name is Peter Hansen, and I'm here to raise the question, does Iowa
City need a franchise agreement? Uh, since November 2001, Iowa City
has not had a franchise agreement, nearly six years, and uh, during that
time we've had probably the worst tornado that's ever struck our city, a
major ice storms and so forth. And the electricity was brought back in
short order and so forth. Uh' Keokuk, Iowa, this summer started working
on a franchise agreement. They had not had a franchise agreement since
1970 - 37 years with no franchise agreement, and I think the electrons
flow in Keokuk just like they do in the other cities in Iowa. A couple of
weeks ago, uh, Ivan Webber, the City's negotiating attorney, uh,
mentioned that franchise agreements date back to the middle ages, but I
would hope that we're not renewing a franchise agreement simply because
that's the way it's always been done, that the.. .we think about the real
need for one. Attorney Webber also reviewed for the Council, uh, some of
the high points or major points of the franchise agreements from the
perspective of the City. He mentioned the pruning of trees and shrubs, uh,
must comply with national standards and advance notice must be given
and so forth, and I would say "fair enough," but what are the last six
years? We haven't had a franchise agreement. I haven't heard any
complaints about MidArnerican butchering the trees of our city. Uh, their
employees are professionals and do the best job they can. So, uh, it
doesn't really seem like that, uh, is all that strong a point. Second point he
made was that, uh, MidAmerican's use of public right-of-way is restricted.
For example, it doesn't extend to public parks. Well, again, what about
the last six years? Things seem to have moved along quite nicely. I'm not
aware that MidArnerican has put any utility poles in the middle of a
swimming pool or anything like that, uh, they're a pretty responsible
organization. Third point, uh, Attorney Webber mentioned the, uh, the
This represents only a reasonably accurate transcription of the Iowa City City
Council meeting of October 2,2007.
#7 and 8
Page 15
City reserves the right to impose a franchise fee, uh, but that doesn't really
mean that much, particularly since the Iowa Supreme Court ruled, uh, I
don't recall if it was this year or last year in a case involving the City of
Des Moines that franchise fees are highly restricted. They can't simply be
a source of revenue. They're imposition is only with the purpose of
covering administrative costs of the franchise itself, and that to me is a
pretty small amount and pretty limited. So I would be surprised if Iowa
City would impose a franchise fee. So when I looked at the franchise
agreement, it's rather puzzling. Many of you are old enough to remember,
uh, the Wendy commercial back in the 1980's where three elderly women
looked at this big fluffy hamburger, and they raised the question,
"Where's the beef?" And when I look at the six-page franchise
agreement, I too say, "Where's the beef?" There just doesn't seem to be
that much in it for the City. The Press-Citizen editorial board wrote in
July of2006, the burden of proof remains on the company, meaning
MidAmerican, to explain the benefits to the City. And I just don't see that
many benefits to the City. MidAmerican has also stated that their future
investments in infrastructure and their future philanthropic giving will
depend upon whether or not a franchised agreement is signed. Well, we
have many good corporate citizens in Iowa City - Press-Citizen,
Technographics, Iowa State Bank and Trust, and so forth. Do they require
a promise from the City of any sort before they make philanthropic
donations? I think not. Art Festival, Jazz Festival, and so forth - I think
MidAmerican should be ashamed making an implied threat of that nature.
And as to infrastructure investment, uh, MidAmerican.. . excuse me, let me
have a little drink of water here. As to infrastructure investment,
MidAmerican seems to be suggesting that if they don't have a franchise
agreement, there's no point in investing in their infrastructure. But with or
without a franchise agreement, if they invest in their infrastructure, they
will have a more efficient system, operate more efficiently. And in the
event the system is ever purchased by another utility or by the City, the
value of the system will be greater and the selling price will be higher.
And that's true whether or not they have a franchise agreement. So the
argument that they need a franchise agreement before, uh, building their
infrastructure and making philanthropic, uh, donations, uh, I think that's
rather without base. Uh, also I'm.. .I wish the Councilors or perhaps the
City Attorney would address the issue that, uh, Section 364.2, Item 4.B.,
states that such an ordinance shall not become effective unless approved at
an election, and I guess I wasn't aware of that, and I'm wondering if the
City Council has thought about that, or addressed that.
Dilkes:
Whether the franchise ordinance.. .no, I think that section allows you to
do, have a public hearing and approve it after a public hearing.
Hansen:
Well, the City Council can ask for an election, or by petition the citizens
can, can request the, uh, election.
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#7 and 8 Page 16
Dilkes: You want to go ahead and answer that...
Webber: Yeah, that's true. The City.. .the City could require an election, or a
petition could require an election, but the preference of the Code is that it
be approved as a regular ordinance.
Hansen: In any case, my bottom line is, I ask you to vote "no" on these ordinances.
Thank you.
Wilburn: Thank you.
Ginsberg: Hi, I'm Mark Ginsberg, uh, I'm going to represent, uh, the interests of the
Summer of the Arts, the Iowa City Jazz Festival, the Friday Night Concert
Series, Iowa Arts Festival, the Saturday Night Film Series, and a few other
things as well. I've been here since 69, and I don't remember ever
missing, uh, too much power for any period of time, so I just want to lay
that out there. Before we succeed in socializing this entire community, I
just want to make a few comments. Urn, since 90.. .89,90, Hoogerwerf
has invested his dollars through MidAmerican into the Iowa City Jazz
Festival with a seed grant, uh, and continued to invest those dollars into
festivals like the Iowa Arts Festival, subsequently the Friday Night
Concert Series, subsequent to that Saturday Night Film Series, the gallery
walks with, uh, the power infrastructure, the power during the staging, the
power during the events, and I would argue through (can't hear),
Economic Development, Convention and Visitors, that we have seen
hundreds of thousands of people and hundreds of thousands and perhaps
millions of dollars reinvested back into this community at no expense to
our taxpayers. So I just want that to be on the record, and let you know
that the corporate citizenry of MidAmerican has existed without a
franchise agreement, and those thousands of dollars, thousands.. .hundreds
of thousands of.. .of dollars invested into the power equipment, thousands
of man hours over the last 20 years has gone unrecognized with very little
fanfare, so before we squash a good corporate citizen, I want to make sure
that these private contributions to the public good are not overlooked. So
that's all I have to say.
Champion: That was pretty short for you, Mark. (laughter)
Ginsberg: Yeah, I know. Do you have some questions? (laughter) That was to the
point, wasn't it? (several responding)
Madden: Urn, my name's Henry Madden. Nobody's asking you to squash a good
corporate citizen, but I would like to speak on the subject, uh, the six-
page, uh, perspective agreement franchise gives a 25-year monopoly, and
these are all the, the six pages are all directed towards what MidAmerican
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will receive, and I'm wondering what Iowa City will receive. Iowa City
has the highest residential rates in the MEC-Iowa system. It's been that
way for years. MEC keeps saying that they won't raise rates until 2010,
and they use the term "equalization" or equalizing rates when they talk to
the Iowa Utilities Board, but it's evident to everyone who's followed the
growth ofMEC as they purchase the smaller electric utilities in Iowa that
they are equalizing rates by raising the rates of the smaller utilities they
buy to bring it up to the Iowa-Illinois rate they bought a few years ago.
There's no reducing of rates to equalize rates. It's here's our rate and the
rest of them are catching up, and it's pretty difficult to go to the IUB and
say we're equalizing rates, but we want to raise rates in Iowa City. Of
course they can say we won't raise rates until 2010. They won't be
finished with their equalizing until then. As a consumer, I am, like I
presume you are and I think everybody in this room is, and the people that
are on television watching, are interested in lower rates. During the 2005
public power campaign, in which MEC spent over a half million dollars to
defend their lucrative IC, Iowa City, franchise. Terry Smith, the person
who spoke here just a little while ago, Public Relations Manager for MEC
stated in a letter to voters, dated August 5, 2005, we filed with the IUB,
the Iowa Utilities Board, to lower rates further and are committed to no
rate increases until 2011, and in the MEC brochure, dated March 22,2005,
question, this is a quotation, I'm reading directly from the brochure, 'Has
MEC really committed to not raising electric rates? Answer: Yes.
Through at least 2010, in addition, MEC has proposed through the Iowa
Utilities Board that it lower rates in two-thirds of its service territory,
including Iowa City, and keep rates at that lower level through 2011.' Our
rates have not been lowered since 2005. Maybe yours have, mine haven't.
Maybe I'm missing out on something. And I wonder why MEC has not
pressed the IUB to approve the lower rates. This is two years have gone
by. We all know there's politics involved. We're not naIve. We know
there's politics involved. Who appoints the ruB? Where does the money
come from? Who donates to whose campaign? I believe that you, as our
representatives, should press MEC to carry out their promises before you
give them a 25-year monopoly.
Wilburn:
Thanks for your comments.
Dieterle:
1'11 be very brief. I'm Caroline Dieterle. It disturbs me very much that
you would consider seriously, uh, a potentially 25-year franchise. Urn, it
makes it very difficult, uh, for the citizens to come up with any kind of
alternatives when you're locked in that way. Urn, and you know,
essentially if you're giving them 25 years, why aren't you just doing it in
perpetuity? Because, uh, the inertia is such in government affairs that
when the eight or nine years go by, urn, virtually no one will have the time
and the energy to prod the Council sitting at that time to do anything other
than simply let the thing go ahead for another ten years. The same thing
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Wilburn:
Carsner:
Wilburn:
Page 18
will happen in the 18th and 19th year. And it seems to me that. . . that the
preceding speaks who talked about the fact that we've gotten along just
fine without a franchise have been very, very correct, and that the, urn, the
statements that, urn, Mr. Madden just gave you are things that you should
pay a good deal of attention to before you sign us all into a contract
basically that is going to go on for that length of time. It just doesn't seem
like there's much sense to it. Thank you.
Thank you.
My name's Tom Carsner. Iowa City should be on the cutting edge of
alternative and renewable energy, uh, in volume and in variety. Urn, this
came this summer in my energy bill, and on the back it shows the percent
of generation mix from MidAmerican, uh, coal 51 %, nuclear 15%, natural
gas 2.5%, for alternative energy, 4.1 for wind. . .4.1 % for wind, 0.1 % for
hydropower, 0.3% for biomass. Uh, rounding it up, that's 4.5%, uh, of,
uh, renewable and alternative energy. I think that we can do better. I
think the point is that, urn, a privately owned utility, Warren Buffet sitting
in Omaha, urn, will never, ever move much further ahead than what
Federal or State mandates call for, or what the balance sheet calls for. I
think that a municipal utility that's one of the major reasons I supported it
would be pushing the edge, would be always on the look out for ways to
bring in alternative energy, and renewable energy. That would be the first
concern of a municipal utility. Having a franchise, obviously, forbids us
from having a municipal utility. It takes away all the leverage we have.
Once you sign that document, we lose all of our leverage to try to create
new, uh, alternative energies and renewable energies. I ask you to not
give away that power. Don't give that away. Coal, natural gas, nuclear
power are all of the past. That's a broken technology. We need to be on
the cutting edge of new technologies. The only leverage we'll have is in
this agreement. If you must create a new franchise agreement, I ask that
you mandate that, let's ~ay within five years that 4,5 alternative renewable
energy go to 10%. Five years later, let's double that - 20%. If.. . again, as
Hank said, what's in it for Iowa City? There's nothing in this franchise
agreement of substance in it for us, the citizens. It's all in it for
MidAmerican. Let's get something in this agreement for us, if we have to
have an agreement. I'm not saying we should. I'm a fan personally, of
course, of a municipal utility, but if you insist on an agreement, let's put
something in there for us. Let's put in standards for renewable and
alternative energy, uh, that, uh, mandate this utility to provide that for us,
then Iowa City can be on the cutting edge of the new frontier of renewable
and alternative energy. Thank you.
Thank you.
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Baker:
Raso:
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Good evening, my name is Jim Baker. I serve as the Conservation Chair
of the local Iowa City Area Group of the Sierra Club, and I'm honored to
testify this evening on behalf of our 1,500 members in Iowa City. I should
first point out that neither the Sierra Club nor I personally endorsed or
worked for the passage ofthe public utility referendum two years ago.
Please don't do this. It is simply not in the public interest. The City is
under no obligation whatsoever to grant a franchise to MidAmerican
Energy. There is no requirement in the law. The public power
referendum said nothing, up or down, about a franchise agreement. Defeat
of the public power referendum, by any voter margin, large or small, does
not entitle MidAmerican to a franchise. The company does not need a
franchise to shield it from other public power referendum, because state
law already provides that protection. All parties have done just fine, thank
you very much, without a franchise in place over the last six years. And
they will continue to do just fine without one for the foreseeable future.
Franchise agreements are fundamentally and obsolete anachronism from
the 20th century. It's time to do business differently. A franchise is bad
business for the City and its citizens. Franchise puts the...a franchise
agreement would put the Iowa Utilities Board completely in charge of
regulating MidAmerican with little or no role for the City. Except at
anniversary dates, the City also looses significant leverage or influence
over the company to suppress rates and to advance conservation and
renewable energy sources. If MidAmerican Energy performs well, the
City, under this franchise agreement, the City would receive no significant
benefit, other than the company's gratitude. But if the
com.. ,MidAmerican does not perform well, the City and its citizens are
stuck with whatever goes wrong, for up to at least a decade. And a lot can
go wrong. Turmoil in the energy industry is predicted as the world
responds to the crises of global warming, and more prosaic aside,
MidAmerican's current freeze on electricity rates will thaw in 2010.
Don't take it from me, however. Every independent expert who has
advised the City Council in the past seven years has strongly urged against
ever granting another franchise to MidAmerican or another utility. Why
Iowa City does not want this franchise agreement can be summed up in
one word: Mediacom. Thank you.
Good evening, everyone. My name is Joe Raso. I'm President oflowa
City Area Development Group. Two years ago this month, ICAD's Board
of Directors recommended a "no" vote on the municipal utility
referendum, and a month after that, 71 % of those casting a ballot here in
this community agreed with that recommendation. The central, and really
the only reason that ICAD Group took a position on this issue was because
our Iowa City base client, not our investors. We have 170 investors - our
clients - those basic sector companies requested we do so. Why?
Because so many companies across the country and around the world,
including our own, know the importance of reliable, cost competitive
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electric and gas service. In fact, energy availability, reliability, and cost,
not just one but all three, continues to rank as one of the top ten factors in
the site selection process. As a result, ICAD Group does not take lightly
our clients' opinions of their existing utility service. In fact, for nearly
seven years, ICAD Group has conducted dozens of interviews with our
basic sector businesses here in Iowa City. During this time, we've used
sophisticated surveying tools, as well as informal visits, with company
executives to ascertain the pros and cons of doing business in the
community. The companies represented in these surveys and interviews
employ more than 6,000 residents here in our area, and annually provide
tens of millions of dollars of economic impact to the local economy. This
past year, during formal interviews with just 25 of these Iowa City
employers, we discussed electric and gas service. Unlike past interviews,
what we heard were comment after comment on the exceptional service
they receive from MidAmerican, before, during and after the referendum
vote took place. The only concern on this issue since the beginning of
2006 when we spoke to the executives was this: what about the franchise
agreement? When is it going to be completed? Speaking for ICAD
Group, we're pleased to see this day arrive. Our Board and clients
commend MidAmerican, and the City, for the many hours of work needed
to bring this ordinance forward tonight. I want to just take a quick couple
minutes and talk about two sections from the electric ordinance, um, 14,
which has been talked about a little already, uh, I think it good and
important to share with the citizens of Iowa City the support MidAmerican
is providing to area organizations that benefit our community and region.
Not only does MidAmerican provide a direct financial investment into
ICAD Group, but they also provide us and other communities in their
service territory the sophisticated existing industry program we use to
collect data on our companies. They provide the web-based system we
use to share building site and community data that we use to track
perspective companies and workers, and they provide matching dollars to
assist us in marketing trips and to attract the thousands of workers this
area will need over the coming few years, and Ijust want to point out, uh,
because I'm mentioning the support that MidAmerican provides to us.
MidAmerican does have one Board member on our Board. The City of
Iowa City has two. And as a City, the City ofIowa City is the largest
investor in ICAD Group. This is not an opinion or recommendation on
our Board based on the relationship. Rather it's a focus on what our client
wants, and our client has told us time and time again they like the
reliability, the cost and the service that they're receiving. So I think it's
important the Council and citizens be aware of these types of investment,
and we believe it's really important to see that, uh, in the proposed
ordinance. The second item is number 19, which is the operating energy
and efficiency and conservation programs, uh, in the City. It's not only
important, we believe, to the citizens, but I know it's important to the
clients that we serve here in Iowa City. Just in the last year, I've been at
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meetings with companies such as ACT, whose building, as many of you
know, their new Lead Data Center here in town, uh, Proctor and Gamble,
International Automotive Components, formerly Lear, been in meetings
with their staff and the staff from MidAmerican Energy talking about
energy efficiency programs, that not only save costs for the companies,
but also, uh, save us all energy and investment in new energy sources.
Again, it's good to see this language in the ordinance. Want to again
congratulate both the City and MidAmerican. It's really these types of
private, public partnerships that will continue to make our area the
economic success that we see and the type of quality of life that we really
have, uh, come to covet and expect from a community like Iowa City.
Thank you.
Wilburn: Thank you.
Quellhorst: Nancy Quellhorst, President and CEO of Iowa City Area Chamber of
Commerce - good evening! The Chamber would like to express our
appreciation to the Council subcommittee, and to MidAmerican officials
for crafting the agreement before you. As Joe indicated, the public has
spoken. To businesses that are considering expanding or relocating, the
stability of the core competencies of utilities is critical, that they have a
cost and price and reliability are very, very important, so for this reason,
the Iowa City Area Chamber of Commerce asks that you grant this
franchise agreement. Thank you.
Wilburn: Thank you.
Hart: Hi, my name is Holly Hart and some have said some things I was.. .some
of what I was planning to say tonight, but I wanted to reinforce a couple
things, uh, that struck me as I was looking over this, uh, agreement.
Recently during the time of our franchiseless era, we were debating
whether or not to have a publicly owned utility, to have MidAmerican run
the utility and whether or not that should be with a franchise. At that time,
some were suggesting that perhaps a relatively short franchise period, and
the usual number I was hearing was five years. We see now in this
agreement the City of Iowa City will be, uh, that will provide electrical
light and power system for a period often years, with a ten-year and five-
year renewable, renewal thereafter, and which may be terminated by
resolution adopted, etc., etc., by the 10th anniversary, and ifnot then, the
20th anniversary, and then after the 5th anniversary after that. Essentially,
with the substantial bit of activity involved to opt out of what is basically a
25-year franchise. My math is not great, but I can count to 25. This is a
25-year agreement. I don't think that the citizens, when the voted on the
public power referendum, were voting for a 25-year franchise when they
were thinking, I think, mostly in terms of five and maybe ten years. To
me, a ten-year contract, uh, is rather disconcerting, but 25 years seems
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Wilburn:
Ponto:
Wilburn:
Spaziani:
Page 22
very misguided. During that same era, particularly MidAmerican was
emphasizing that there was a great deal of change involved currently, and
a lot of flux in terms of electronic, or electric production, generation,
distribution systems, resources and options that would be available. Let's
assume we will be looking at transitioning from a more oil-based system
to renewables, clean energy. Twenty-five year contract locks us in to, as
it's been made. . . whatever is set before us. We sign away and close a door
on our, uh, ability to consider options and opportunities. I also want to
make, uh, I don't know if it's been noted or not, but in just a month I
believe, later in October, the Iowa Utilities Board review of five
municipalities applications for public power review. That is... the results
of that review are going to become known, That's just next month, and
we'll be able to see and compare how we might fare under such a system,
uh, in two or three years, if they go down that road, we're going to see
concrete evidence of whether or not we would be signing away possible
savings and what opportunities are available. It seems to me that this is
not a good time to sign a franchise, particularly one that locks us into a 25-
year commitment. Thank you.
Thank you.
Good evening, my name is Jim Ponto. I'm not representing any group or
anything. I'm just here as a citizen. I came, uh, I didn't really have any
preconceived notions for or against this. I've just been kind of listening,
but I am concerned about the use of fossil fuels to generate electricity and
global warming and stuff. So, um, things that I can do is to use energy
wisely, obviously, use fluorescent bulbs and so on. That really doesn't do
very much - a little bit. The City can do a little bit more by using LED
street lamps and traffic signals and so on, but to really make an impact, it
requires that the utilities change how they produce electricity. And I
really liked the idea of the earlier presenter that there should be some
built-in, um, things in the...in any such franchise where the amount of
electricity produced from alternatives, whether its wind or whatever, uh,
be at elevating levels in each period, five years or two years or whatever,
so that we, as a community, are forcing the utilities to go more towards
alternative energy. Um, I think that's the only way that there will be a
significant impact in our environment. Thank you.
Thank you.
Hi, my name is Carol Spaziani. Um, I'm dealing with Section 12, 119, of
the Electric Ordinance, proposed ordinance. Um, and Dale's summary of
it, I believe, is not much shorter than what's in the ordinance, so I'll read
that. Company agrees to maintain, administer and operate energy
efficiency and/or conservation programs as approved by the Iowa Utilities
Board. From personal, recent experience, I note that MidAmerican
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Page 23
electric (unable to hear, sneezing) offers fewer customer rebate programs
for energy saving home appliances than does Alliant Energy. Presumably,
both companies are regulated by the same Iowa Utilities Board, and even
though Terry pointed out in his presentation, that our ordinance can't deal
with this because it's State law, how then do we have such differing rebate
programs with two utilities that are both regulated by the Iowa Utilities
Board? It must be that the offer those proposals to the Board for approval,
and evidently are approved. Uh, recently, uh, in an effort to stay living in
Iowa City with a cost of housing that I can afford - I have an older house
- in the last five years I have replaced seventeen windows. Uh, the
window installer explained to me that if I lived in Alliant Energy territory,
there would be a rebate, but with MidAmerican there is none, and indeed,
I did some research on the webs of both companies today, and have found
that if I lived in an Alliant territory, I would have received $25 for each
window, or a total of$425 on maybe a $10,000 investment, which is
something, but MidAmerican offers none on window replacement. Uh, I
also had to buy a new refrigerator because the one in the house I bought,
urn, was deficient. However, it was still operating, and I find on the
Alliant web site that actually would have paid me, if I lived in their
territory, $35 to, for them to carry away my working, old refrigerator
(laughter) rather than keep it working at a low efficiency level. In addition
to that, if I bought the energy star refrigerator to replace it, I would have
received another $50 rebate. MidAmerican gives no rebates for
refrigerators. Urn, another advantage in the Alliant schedule is lighting
fixtures, and which they allow $20 per fixture, up to a maximum of five.
MidAmerican offers none. For a washing machine, which I also had to
buy when I moved in because the previous owners took theirs away, uh,
they offer $50 to $100, depending on the energy efficiency level of the
model you bought. Urn, I would like to suggest that franchise negotiations
be reopened or at least suspended for a while, before you vote on this,
even though you may not be able to negotiate this in a local franchise. If
you withhold the approval of this franchise, you may be able to encourage
MidAmerican to apply for a better rebate schedule to the Iowa Utilities
Board. Thank you.
Wilburn:
Thank you.
Horton:
My name is LaVonn Horton, and I would like to read excerpts from an
Iowa City Press-Citizen editorial, dated July 20 of 07 that is pertinent to
this question, and it was a consensus of the Press-Citizen editorial board,
the title of which is "Franchise Would Benefit Company More Than City."
There are two ways to view Terry Smith's suggestion that MidAmerican is
"looking for direction" from the Iowa City Council to determine the level
of 'discretionary and philanthropic' money the company will continue to
invest in the city." Number one, the statement describes business reality.
As Smith said to the Council, "If we know we're a long-term community
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Page 24
partner, we'll take the goal of investing into the community." Number
two, the statement is a threat. No matter how politely the terms are
couched, the bottom line is that MidAmerican wants the City Council to
approve a long-term franchise agreement, or else the company will cut the
money it invests in the City's economic development, social service
agencies, and storm recovery efforts. MidAmerican, in fact, is
overplaying its hand. Terry Smith suggests that the most important
question should be, 'Why shouldn't the City give MidAmerican a
franchise?' Let the burden of proof remains on the company to explain
the benefits to the City. By law, MidAmerican has to provide energy
service to Iowa City, The lights aren't going to be shut off, and necessary
improvements are going to be made. By law, Iowa City can only severe
its relationship with MidAmerican by developing its own municipal
utility. Even ifIowa City were to pass a power, public power proposal,
and that's a very big if, if MidAmerican would recoup any infrastructure
investment by increasing the price the City would have to pay to take over
the company's. facilities. With its revenue freeze until 2011,
MidAmerican might make the case for a five-year franchise, but it's still
not clear what the City benefits by taking the threat of public power off the
table for ten to fifteen years. Although we editorialized against last
November's public power proposal, this is the Iowa City newspaper
editorial, we recognize that Iowa City seems to have a better relationship
with MidAmerican when that threat remains a possibility, no matter how
improbable. In the five years since the last franchise agreement expired in
November 2001, MidAmerican has either maintained or improved its
service to Iowa City customers, Rather than decrease the company's
interest in good public relations, those five franchiseless years have seen
MidAmerican performing as a model corporate citizen. Because such a
high level of involvement should be what every corporation strives
toward, MidAmerican shouldn't allow its corporate citizenship to be just
one more item on the negotiating table. The issue is that MidAmerican
Energy is asking the Iowa City Council for a long-term franchise
agreement between the City and the company. The editorial board
suggests, we're happy that MidAmerican has become such a good
corporate citizen, but its community involvement shouldn't depend on
whether it has a contract with the City or not. Thank you very much.
Wilburn:
Thank you. Before the next person goes, just by a show of hands, how
many folks are here to speak to this item tonight? I'm just trying to get an
idea on when Council should take a break, or not. Okay. I'm just trying
to get an idea on when Council should take a break. I just wanted to see
how many people are going to speak to this item. Okay. Go ahead, go
ahead. .
Carter:
My name is Jeanette Carter, and several people have spoken to what I'm
going to say, but I'd like to, uh, give a little more detail. I'm here to speak
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Wilburn:
Bailey:
Webber:
Page 25
to Section 12,212, of the franchise agreement. It states in part, the
company shall make an annual written report to the City Council,
summarizing community contributions which benefit the people of Iowa
City, which have been made by the company or its foundation. The
written report shall include the name of each entity to which such
contributions have been made, etc., etc. The rest of the paragraph
discusses how and when such a report shall be made. Terry Smith,
Director of Municipal Relations for the company has said having a
franchise agreement in place gives the company the security to allow it to
establish a relationship with the City on issues like economic development
and cultural activities, and this is his statement. "If we know we're a long-
term community partner, we'll take the goal of investing into the
community." Does this mean that without a franchise, MidAmerican
would be unwilling to support such community cultural activities? No
other generous corporate sponsor of community events, such as the Press-
Citizen, KXIC, Ginsberg's, Technographics, all the local banks, and
numerous others expects or demands arrangements that give them security
to sponsor events. They do it because they're dedicated to providing Iowa
City with funds that improve and enhance the local cultural scene. The
City should inquire before going further with approval of the ordinance
why MidAmerican alone among corporate citizens requires a legal
agreement to guarantee continuation of their generosity. Thank you for
your time.
Thank you. We're going to take a, uh, ten-minute break here. Back at
9:25. (BREAK) Before we take a few comments, uh, more comments
from the public, I think there are a few more who wanted to speak, uh,
want to give Council a chance to, um, follow up with Ivan about a couple
points that were brought up, um...
Well, I was on the subcommittee that negotiated this, and we did talk
about alternative energy, and I think it would be helpful to understand the
parameters, um, by which we can, uh, govern how the company uses
alternative energy, and what that mix is.
You can't. It's exclusive jurisdiction of the State. Uh, both the
Legislature has held some power to itself. That is, it's provided by statute
in an increasing tier, and I'm sorry, I see MidAmerican's attorney is
shaking her head yes. I don't remember how the tier goes up, but it does
go up, as to the percentage which the companies must meet in alternative
energy, that's mandated by statute. You have no authority to. . . to change
that mandate or add an additional mandate. It's monitored by the Utilities
Board, and that jurisdiction of the Utilities Board is exclusive, so you are
prohibited from getting into that area.
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Bailey: And then I think we also discussed a little bit about the Alliant rebate
program, and a MidAmerican rebate program, because those were kinds of
things we were tossing around about differences we'd like to see,
and.. . can you talk a little bit about that?
Webber: One of the problems you have is that all this stuff is mandated, or comes
out ofthe franchise. See, it comes out of the system for controlling rates.
It's controlled, again, exclusively by the Utilities Board, and when you
talk about rebates and you talk about programs, all of those go in to the
cost base of the various companies in some fashion, and then are
recovered by the rates charges to rate payers. Alliant, as I recall, still has
four separate rates in Iowa, and you would have to be able to trace out
which rate which rebates go into, and how those are recovered, and then
compare those to the rates and recovery rebates of MidAmerican to see
who is getting a "better deal" out of the rebate and rate system, because
without that sort of rather complicated mathematical comparison, you
can't really tell who is getting the ultimately "better" deal from the rate
base, or even from the rebate.
Bailey: So, I think that there were some really good ideas presented, but I think
some of this discussion is obviously more appropriate with the Iowa
Utilities Board.
Wilburn: Well, I'm going to ask, just so we make sure we get, give the public a
chance to address, finish addressing the Council on the public hearing, uh,
just keep it at any clarification or follow up questions, and we can
comment at our leisure when the, uh, readings of the ordinance come up.
Any other questions of Ivan?
Dilkes: Well, I just want to make sure. . .Ivan is here tonight, so if you have
questions of him tonight, you need to ask those.
Wilburn: Okay, thank you.
Champion: Well, I mentioned to Dee, who was on the negotiation team, did you talk
about renewable energy, and she said yes, and now it's been further
explained, but could we put in a franchise agreement that we want a
certain percentage of our energy to be renewable, or non-fossil fuel,
whatever.
Webber: Basically, no. That's even a more complicated issue, because you not
only get into state jurisdiction, but you're getting into some federal
jurisdiction about the transmission and how the large grid, the map, the
MidAmerican public, the MidAmerican power pool works in its
distribution of electricity, and that actually gets under federal jurisdiction,
the Federal Energy Regulatory Commission.
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Champion: We could make all of our lines green. No?
Webber: Reminds me of an old joke about we're going to paint our electrons so we
know where they go, but (laughter)...
Champion: Well, never mind. Well, that's disappointing.
Wilburn: Okay, why don't we continue with the public hearing.
Ross: Hi, I'm Brandon Ross, and uh, I think it's shameful to even consider this
agreement. You're supposed to negotiate for us as a Council. We're the
people, you're supposed to protect us, and I think this agreement is like
giving Manhattan, you know, to the settlers. Uh, it's one of those
giveaways. I think that MidAmerican Energy has comported themselves
well. That's not the issue. I think that MidAmerican adds to our
community. Not the issue. The issue is simply, why do we need a
franchise? I think that it's interesting that.. .that this comes up, uh, after
the MidAmerican, uh, public power vote, which, uh, was an interesting
time, and I think that there is some concern, perhaps on MidAmerican's
part, that they are not going to get a long-term franchise or that we are
going to fire them, uh, whether.. .ifwe're going to fire them, I think that's
not an issue. But I think it would be a shame to let us down, to let your
community down, by just giving what is basically a no-cut contract to
somebody. There's no need to do that. You know, in sports they offer no-
cut contract when it's the last possible, possible thing. Uh, the players
playing well. He looks good. He wants to sign. His agent says we're
only going to sign with this team if you say no-cut, and ifhe doesn't, he's
going to go to the other team. It's the last.. .it's the last option. I respect,
uh, MidAmerican for doing the good work. That's not the issue. Should
we have a franchise? A, that's the issue, Should we have a franchise of
five years? That's B, another issue. But to give 25 years like this, it's a
shame. It's a shame! Don't do this! Don't do this for our sake.
Boos: Several people have made...
Wilburn: Please.. .I'm sorry, please...
Boos: I'm sorry, my name is William Boos.
Wilburn: Thank you.
Boos: Several people have made principled arguments about ecology. I'm going
to make some remarks on a somewhat lower plain. In 2005, when the
municipal proposal was defeated, the... the company we're talking about
tonight deployed its resources to do various things - quite effectively, very
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effectively. One of them was to raise indirectly some sort of specter of
municipal socialism. Another, however, much more straightforward and
very effective, was simply to point to the status quo, and that's what
people voted for. For wheel or woe, as William Sloane Coffin once put it,
my status is quo. Yet two years later, we're being asked to change that
status quo. Why? I think politically the reason seems plausibly to go
something like this. They're driving the point home. Speaking as
someone who has a good deal admittedly of skepticism, perhaps even
cynicism about public-private partnerships, they often seem to be public-
private cooptations. I think that all the people here have said, what's
being asked for is a, an extensive concession which they think they can get
away with now, which they may not be able to get away with a few years
from now, and therefore, the long term. I also want to make an even
crasser comment, that I think somebody has to make here tonight. You're
being asked to approve a 25-year-old, 25 year, excuse me, contract, to use
Brandon's terminology. On the basis of a presentation given by someone
who's running for one of your jobs, this is an unusual situation, and I think
you ought to consider nothing legal, but simply the extent to which a
natural response to this on the part of other people and me, would be a
deepening of the cynicism that Ijust referred to. I urge you not to do this,
or if you must, that you do it with a great deal of hedging and with a
considerable cut in the length, as has been suggested, of that contract.
Thank you.
Wilburn: Thank you.
Champion: I'd like to see us not get personal with Mr. Smith. He's been not only, uh,
a candidate for the City Council, but he himself has been an incredible,
good Iowa City city citizen. So, I think we need to leave the fact that he's
running for City Council out of this.
Frantz: Hi, I'm Kara Frantz. I'm a two-generations Iowa City each side. I am
against this franchise. I will be 65 years old when this contract's over.
How old will you be? That's what I have to say. Thank you.
Wilburn: Thank you.
Smith: Good evening. My name is Dan Smith. I live at 905 Wylde Green Road,
Iowa City, Iowa. I'm here tonight on behalf of the Land Development
Council, a collaborative effort between the Greater Iowa City
Homebuilder's Association and the Iowa City Area Realtors Association.
I would like to first say and commend the City Council for their leadership
in this issue. You've shown initiative and you've taken the lead on a very
important matter before this community. I'm not going to look back and
say what elections meant, or did not mean. I think it's, at this stage,
almost irrelevant. I think what is important is that the Council and
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Wilburn:
Phillips:
Page 29
MidAmerican officials have worked together for at least the past year to
come together on a compromise and agreement that they can find
agreeable. MidAmerican has been a standup corporate citizen, an active
member of the Iowa City community for many, many years. Along with
their participation in civic and volunteer associations, MidAmerican has
partnered with the Homebuilder's specifically to promote energy efficient
home by awarding builders, our members, with financial awards totaling
more than $1.5 million since its inception in 1997. MidAmerican provides
reliable energy services, and has agreed to hold rates steady, I believe it is,
to the year 2010. We would encourage the Council to continue leading on
this issue, show Iowa City is a business-friendly community, and go ahead
and adopt this franchise agreement. Thank you very much.
Thank you.
My name is Mark Phillips, and I'm a 30-year plus citizen ofIowa City and
MidAmerican customer all that time. I am not an employee of
MidAmerican, nor do I do any work for MidAmerican Energy. I did work
actively last. . . two years ago for the "no" vote against the public
referendum though, so.. .I'm a little perplexed by the people standing up
here, opposing a franchise agreement. Many of them are the same people
that I would see, that would be actively promoting the unionization of
employers. Opposing this franchise agreement either publicly or as a vote
as a Council Member, I think a "no" vote on the franchise agreement is a
direct vote against union and workers. If you. . .if you don't make some
kind of a commitment to MidAmerican Energy, I think you could see a
loss of jobs and union jobs in Iowa City that would either move,
potentially to Davenport where they have a larger corporate presence and
commitment from Davenport, and/or even worse, you know, the dreaded
word of outsourcing. You know, if we don't have. . . if we as a community
do not show some kind of backbone to committing to a good corporate
citizen like MidAmerican, I just don't understand why they would make a
commitment to us on a long-term basis. The agreement, you know, does
give a ten-year out. The only.. .the only rational reason to oppose a
franchise agreement would be if you thought there could be another public
power referendum, ifthere was some reasonable proposal by the public
power group. Even if that did come up, there's nothing today, even if
something came up in the next year or two, it would take several years
before anything concrete or relevant could ever be made as a proposal to
the.. .to the people. A ten...a nine to ten-year out, which MidAmerican
is...is got in the agreement, is clearly enough...it gives the public power
people time to corne up with some logical approach, ifits.. .if they can
come up with something that does have concrete validity, the Council in
that time period, can make a decision to void the contract. There's no real,
uh, there's no cost to the City to void it, there's no.. .there's no real cost to
the City to give a franchise agreement. So, I don't see how, it's not a 25-
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Wilburn:
Kubby:
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year agreement. It's really just a commitment on our part as a community
that we want them here. I'll give you a small analogy and.. . and uh, you
know, I analogized a franchise agreement a little bit as an engagement
versus a marriage. You know, Iowa City needs to engage, uh,
MidAmerican in a monogamous relationship, commitment, for a nine to
ten-year period. At that time you can reevaluate it. No one, MidAmerican
or no one else is asking for a permanent, life-time commitment or
wedding, uh, from the City ofIowa City. We're really just talking about
giving some kind of a monogamous commitment for nine years so that
they can invest in the community, and be able to feel free to invest in the
community, jobs, infrastructure, you know, provide services to companies
that might potentially want to come here, and bring other jobs. A no vote
on this franchise agreement is a vote against union jobs, and against
economic development. Thank you.
Thank you.
Good evening. My name's Karen Kubby. Urn, I'm also a 30-some year
resident of Iowa City. That always seems to be relevant somehow at
public hearings. Urn, and I happen to be a union member (laughter) who
has mixed feelings about this whole issue. Urn, one of the things I find
myself frustrated with is that, uh, because I've been following some of
these issues that I understand that the alternative energy amounts, the
percentages, and the conservation programs are regulated by the IUB. So
my question I would ask you to ask your consultant is, what is the
relevance of those two sections in this agreement? What is it that the City
gets? The only things that 1... well, I really don't see anything that the
City gets, urn, from those two particular sections, because we can go to the
IUB for ask.. .to put pressure on different, on those two issues. Urn, if the
City should generate its own energy, there are state laws that dictate if we
generate excess energy how the utility has to buy that back. So I guess I
really would like to hear some explanation as to what is it that the
citizenry gets, or that the City of Iowa City gets, in those two particular
sections, if everything that's been talked about is really under the purview
ofIUB. What is.. .why are they in there? So I would love to hear that.
Urn, the other thing that I've been thinking about, because I'm a real
proponent of good government, and what does that mean, and that's really
keeping public interest in mind. And so I want to make two very concrete
suggestions that even though the agreement would not be agreeable to me,
urn, if these two things were made, but it would make the agreement more
livable to me. And the first one is to change the language that at those
benchmark times, that the City "may continue" the agreement, versus the
current language which is "may terminate." And here's why I think that's
better government. With the language "may terminate," it can be a very
passive approach to continue the relationship. And I'm not going to get
into marriage analogies. Urn, I think that's pretty dangerous! (laughter)
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But, uh, if you have the words "may continue" it creates a very conscious
relationship between the utility and the city, to decide whether or not
you're going to go forward, and whether or not certain sections of the
agreement should be changed, and we heard during the public power
campaign that the utility had some big concerns about the ever, the
quickly changing landscape around energy issues, and could a new player
come in and deal with those issues. Well, I think the same is true for long-
term entities in those issues who aren't used to the new landscape. It's an
ever-changing thing, and so having that shorter term, um, uh, or having
that positive proactive yes we want to continue, versus a passive well,
there's no reason to terminate so we'll keep going. So, that's my first
request is that there be a change in language from "may terminate" to
"may continue." The second suggestion I have is about the timeframe.
Um, and Holly Hart brought up that on, the actual date is November 26th,
that the five cities who did have public power pass in their communities
will be going in front of the ruB to begin making their case, and the utility
Alliant Energy for all of those five cities, will make their case about how,
what the economic framework should be for deciding, um, the cost of
buying out the private utility for the public municipal utility. We won't
know for a while what that framework is. They are blazing a trail in this
era of public power in Iowa, and we don't know ifit's going to be in the
favor of cities or not, but if we want to preserve the public interest on this
issue, I think if we can change the timeframe from ten-ten-five as the
openers to 5-10-10, it lets you have an opportunity sooner to see if the
public interest might be served by exploring, um, public utility again. It's
in the public interest, it affects, uh, industrial, uh, commercial, and
residential rates, and ifit's, the framework is the right way, it could be
millions of dollars for economic development that people can keep in their
own pockets, that companies don't have to payout in utility bills that they
can then pay workers. If that's the ideal world, that's.. .if that's where
companies would put their money. So, um, I really think that these two
things in tandem can help create a better agreement that better serves the
public interest. So again, changing from "may terminate" to "may
continue" and going from ten-ten-five to five-ten-ten. So I would ask you
to think about those changes that may not seem significant, but I think it
creates a different emotional atmosphere and political atmosphere that is
better government and is in the public interest. Thanks.
Wilburn:
Thank you.
Urlis:
Mayor, Council Members, my name's Allan Urlis, and I'm the Director of
Media Relations for MidAmerican Energy, and I hadn't planned on
making any remarks tonight, and I just want to make one comment, and
it's a clarification for accuracy. Uh, there's been, uh, dates tossed around
as far as rate stability, and rate freezes, and the current rate agreement with
the Iowa Utilities Board for MidAmerican Energy's rates is through at
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Neades:
Page 32
least 2013, and that's because of a Utilities Board order in July, approving
MidAmerican's plan to more than double the amount of wind turbines that
MidAmerican has in the State of Iowa, and MidAmerican already owns
more wind turbines than any other regulated utility in the country, which
really is a good example of the commitment that MidAmerican has to
renewable energy, and one final point, when the wind expansion plan that
was approved, that kept rates stable through 2013, what that means is
when those wind turbines are finished by the end of next year, uh,
approximately 18% of MidAmerican's energy capacity will come from
renewable energy, and that's the equivalent of removing 682,000 cars
from the road and the emissions that the place into the air, and that's
approximately 43% of the cars in Iowa that are registered. So, just an
important point on rate stability is 2013, and uh, the evidence does support
MidArnerican's commitment to renewable energy. Thank you.
Hi there, Rebecca Neades, Iowa City Area Chamber of Commerce, and I
win so far because I've lived here over 40 years so (laughter), and of
course you could say I'm a winner because I love Iowa City. I have just
three quick clarification points that I want to make. The first is the
contract, the 25-year contract that I've heard over and over again tonight.
I think that it's really important to clarify and distinguish between a 25-
year contract and a ten-year with a reup often and a reup of five. We all
know contracts, and urn, Karen suggested maybe we could change the
language from "may terminate" to "may continue," and I'll tell you, I'm
really happy that my husband doesn't have that clause in our marriage,
because (laughter) although he loves me (laughter) you know, I wouldn't
want to give a "may continue" option there. I know, Regenia, she loves
my husband, but, you know, I think there is a level of commitment
sometimes that we make when we're, when we have partnerships, and so I
really do like that "may terminate" language. Urn, second of all, I really
think that it is important - I heard tonight from some that the vote two
years ago was not, it was a vote for the status quo. And I don't agree.
There were too many people that came out to the election that night. That
wasn't a vote for status quo. That was a vote against, or people raising
strong concerns against the other alternative at the time. And so, urn, you
know, I think that vote sent a very strong message, and Ijust want to
remind you that that was not a, that wasn't a, you know, squeak by vote.
That was a very strong vote, and urn, support of our local utility company
and what they've done for us, and the third clarification point is,
MidArnerican, it's been talked about tonight, have used, urn, discussions
and their reinvestment in the community as, urn, maybe not something as
positive, and I challenge you to find another corporate citizen that's
required to provide service. That's, again, a long-term commitment.
They're required to do that for us, and for that, if I were them, and this is
me personally speaking, I would want someone to be a good corporate
citizen back and have faith in, you know, urn, a contract that I proposed.
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Wilburn:
Sehnert:
Page 33
So, urn, I guess I just, those are my three points, and I want to leave you
with that, and to remind you, uh, because we heard from some other
organizations, the Chamber represents over a thousand businesses. Urn,
our mailing list is 2,700 and that just goes to the CEO's or the top, you
know, management people, or anyone who actually wants to be on it that
belongs to the Chamber of Commerce. So we represent a lot of people in
this community that felt very strongly when we came out and opposed the
vote, urn, in 2004 now, and so I want to remind you they really had their,
they thought they spoke that day in support of Mid American and hoped
that you sign a franchise. Thank you.
Thank you.
Good evening. I'm John Sehnert, the Franchise Manager for
MidAmerican Energy, and I wanted to visit with the Council a little bit
tonight. Uh, there were a lot of subjects covered, uh, I served on the
negotiations team with Terry Smith and Karen Huzinga from
MidAmerican Energy, and the City was represented by Ivan Webber, uh,
Regenia, and Dee, and Eleanor, and they represented the City very well in
the negotiations. Our typical franchise agreement between cities is twelve
sections long. Iowa City's is twenty-five, and there are many terms and
provisions in the franchise agreement that our beneficial to the City,
although we've heard tonight several times that the franchise does not
benefit Iowa City. That's not the case. I put my glasses on so I can see
what I've jotted down here. But, uh, there's lot of provisions for the City
for the benefit: indemnification is one; urn, we've agreed to serve on an
energy task force to find renewable energy sources to use in Iowa City;
no-cost relocations if the City has a public works project and our facilities
are in the way, we voluntarily agree to move at no charge to the City; uh,
we have notification standards that were requested by Regenia; if we're
working in someone's neighborhood, we would let the people know we've
got crews working in the neighborhood so that the people are aware of
what's going on, that we're not just going on people's property to do work
or reconstruction work; we acknowledge in our franchise agreement the
regulational, regulation authority of the City. So you can regulate how we
enjoy our rights on the right-of-way through city ordinances and other
regulations. It's not just what we chose to do. Urn, in the event that the
electric utility industry is deregulated, which occurred a few years ago.
You recall, it happened in California, but in the even the electric industry
is deregulated, nothing in this ordinance precludes the citizens and the
businesses ofIowa City from enjoying those benefits. So, uh, if that
occurs in a more fruitful manner than occurred in California, you wouldn't
be precluded from participating in that process. Pole attachments, that
was mentioned. We have a lot of, the City has a lot of facilities attached
to our poles in Iowa City. We don't charge the City for any of that. Urn,
that's a benefit that isn't a standard in our franchise agreements. We have
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a few cities, Bettendorfhas that, Iowa City had it in their former
agreement, and the City will have it in this new agreement. Eminent
domain, you're all as elected officials familiar with what happened with
eminent domain a year ago when the Governor vetoed eminent domain,
and some legislature.. .some eminent domain language, and the
Legislature came back and dealt with that. In the event that MidAmerican
Energy should need to use eminent domain, but we have to come to you,
and ask your permission to use that in the city. So you have some
protections there, that aren't necessarily granted in other cities. Urn, some
of the cities were just granted the right of eminent domain without any city
council oversight. You have oversight. And that's very good. If we
should breach any of the provisions of the franchise, you have the right to
terminate the franchise. That also is not in most of our franchise
agreements. So you've got a lot of controls that your bargaining team put
into the franchise that don't exist in other franchise agreements. One last
item that I'd like to mention, uh, on the terms and conditions, the franchise
binds successor in the signs. So in the event that our industry or our
company should restructure, uh, maybe the new owners, if that ever
occurs, don't want to do all these things. They don't want to do no-cost
relocation. They don't want to voluntarily indemnify the City. They don't
want to work with you on renewable energy sources. You can say, we've
got an agreement, and we expect you to live up to this agreement because
the agreement we signed with MidAmerican Energy binds you. So the 25
years, you know, provides some protection to the City. It isn't just a one-
way street, uh, it's really an insurance policy for the City. You know, we
hope that no one ever has to enforce the provisions of the franchise
agreement. That everybody is adhering to what's been agreed to, but
you've got some teeth in this agreement. And, uh, you know, we expect to
live up to the agreement, just as the City lives up to the agreement. We've
heard a lot about the 25-years, that that's a very long time. Now I would
ask Dale, as Interim City Manager, when you design a street or a water
system or a water plant, you don't design it for ten years. You look out
and you're hoping that facility and that infrastructure are in place for 25,
50, 75 years. That's what we want to do with our electric system and our
gas system. We want to design a system and put it in place that's going to
serve the needs ofIowa City for decades. So that's part of the importance
of a 25-year franchise agreement, but the agreement language as was
proposed, uh, is.. .as two ten year windows and a five year window. Now
I have every confidence that if MidAmerican Energy is not living up to the
terms of the agreement, or if there are other opportunities for the City of
Iowa City to do something else, I have every confidence in this Council
that you will exercise your options. Urn, that's why they're in there. So,
urn, we're very pleased to work with you to extend the franchise
agreement. We worked eleven months with Regenia and Dee and Eleanor
and Dale and Ivan, and a lot ofthe provisions that are in this agreement
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came from the City. And we hope that you will renew the agreement.
Thank you.
Wilburn: Thank you. Anyone else?
Spaziani: Ifno one else, I forgot to give you these. These are the pages from the
web sites, two pages on rebates from MidAmerican. Twenty from Alliant.
Wilburn: That was Carol Spaziani for the recorder.
Spaziani: Thank you. Carol Spaziani for the record.
Wilburn: Anyone else? Okay, urn, sure, I was going to ask if any other questions
for Ivan.
Vanderhoef: Okay, Ivan, urn, something I don't recall talking about, and I suspect it's
governed by the IUB, but I want to be sure. Any excess energy that we
may produce here in the city that they have agreed to buy from us, at what
rate do they buy it? Is it kilowatt for kilowatt or is it some other. . .
Webber: You'll have to do that by contract, in any purchase, so that's a negotiated
rate, and until you know what your costs are and the cost of the inter-
connection, you're not going to know that rate. So that's a matter that's
not, that'll be settled at a future date.
Correia: That'd be a future contract we have to negotiate.
Webber: Yes. Now, the one...I was going to say, okay, we can talk about your...
Smith: I was just going to confirm that, uh, that would be part of a inter-connect
agreement, those rates would be determined at that time, but just for
clarity, the proposal that MidAmerican has put before staff at this point is
that MidAmerican would own, operate and install the electric generation
at the landfill. So what we would be purchasing from the City is the
methane gas produced from the landfill. So the generation of that
electricity would be MidAmerican's product and we would be buying the
gas.
Vanderhoef: On that project?
Smith: On that project, correct.
Vanderhoef: If we put up a wind turbine, uh, and. generated some electricity, then at
what rate we would buy and we have to make a contract. I understand to
do that.
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Smith:
Bailey:
Smith:
Correia:
Webber:
Correia:
Bailey:
Correia:
Bailey:
Webber:
Correia:
Page 36
It would depend on how it's inter-connected with the City. You could
chose to connect it directly to the City's facilities and supply that electric
service to yourself, in which case you would have the full avoided cost of
what you generate and use for yourself. Any generation that is produced
and sent back out onto MidAmerican's system would be part ofthe
separate inter-connect agreement. So that rate would be determined at a
separate time.
And the methane arrangement, at what rate? Have you determined that?
I'm sorry. I can't remember exactly what the...I can't remember the unit
for which we measure that rate. (laughter) I believe it was about, urn,
$50,000 a year in revenue that the City would.. .would secure from that,
but at this point, we have put forth terms that could be considered for a
final agreement and so our expectation is that if the City decides to move
forward with that agreement, then we would sit down with staff and
negotiate the final terms and agreements, specific costs associated or
payments.
If we were interested, or if some of us were interested in making
modifications to the ordinance that is before us, I'm thinking of
specifically the "may continue" and the "may terminate" and the changing
the ten-ten-five to five-ten-ten, what are we, can we simply amend that,
does that need to go back to negotiating team, how. . . would that work?
It would have to be renegotiated. You'd have to reopen negotiations.
Okay.
I'm real interested in the language of "may continue." 1...1 like
intentional relationships, rather than those that just passively flow by.
W ell, it seems to me like better public policy that you would take the time
to analyze how, and how this contract, urn, and the services and
relationships have been going, rather than the passive.
I wish we would have thought of it in negotiations. That language.
Actually, I think it was raised by MidAmerican and they wanted the
stability of the present language.
I understand, and 1.. .you know, in my day job I work on contracts
with.. .with the State and all of those are renewals, when they are
renewals, that you have to go back and continue. You can't just
automatically, they're not automatically renewed. I mean, these are
smaller contracts, but it just seems like there are benefits, I think, to all
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Webber:
Correia:
Webber:
Correia:
Webber:
Correia:
Webber:
Correia:
Bailey:
Correia:
Webber:
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parties, urn, and certainly to the public interest. I have...I just want to go
back. I know I brought this up at the, uh, work session about the energy
assistance programs, and I appreciate Terry did provide me with some
information on how much comes back to the community from the ICARE
program, which is a state-wide match from.. . MidAmerican provides a
match to customer donations, urn, so those types of programs are regulated
by the Iowa Utilities Board, so we can't, there can't be any additional
investment to, uh, low income utility bill assistance programs.
It is a matter regulated by the Utilities Board. It's within their jurisdiction.
So you, you can't...
Can't do more, but just...
It's not a home rule matter. Normally you can do more than the State, but
you can't do less.
Uh-huh.
Unless the State has occupied the entire field of the regulation, and what's
happened with Chapter 476, that is the Utilities Board's jurisdiction, is
except as excluded, the Utilities Board has complete jurisdiction.
So the utility is allowed to donate to events in the community or other
non-profits, but they're not allowed to donate into a low income consumer
assistance program?
You will notice that the company added the Foundation in its list of
contributions. Those are not regulated, but they're also not something
you're going to regulate, because you don't really have a contract with
them. The contract is with the company.
Okay.
And we just have a reporting relationship with (unable to hear), not a
required.. . any level of requirement.
It's a concern...I mean, it's a concern I have because energy, we all know
energy costs are going up and there are folks who, you know, work hard in
the community at wages that make it difficult to be able to afford the
rising energy costs, and so with shrinking, urn, dollars available to help get
folks over those hurdles, urn...
I would note that it might not be the opportunity to do so, but by statute,
cities have a right and automatic standing any time one oftheir utilities
has a petition on its fees, pending before the Utilities Board. Cities have
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an automatic right to standing before the Utilities Board and you can, not
to give Eleanor more work. You can intervene at any of those rate cases.
You can hire me again (laughter).
Correia: Thank you.
Wilburn: Other questions for Ivan?
Dilkes: I would ask, uh, Ivan, that you clarify...I believe there was a change in
the, uh, regulations with respect to the utilities requirement to buy back
excess.
Webber: Mandatory buy back statute was sunset, it sunset on June 30th of this year,
so the mandatory buy back statute is no longer mandatory.
Correia: Can you explain what that means?
Webber: It means they don't have to buy the electricity back. You have to work out
a contract with them.
Wilburn: Other questions for Ivan?
Bailey: So, is there any interest in looking at this language? May continue?
O'Donnell: I'm not interested.
Champion: I'm half interested.
Bailey: Intentional relationships, Connie. It's very important.
Champion: I know. I'm just, urn, I've heard so many things, I can't...I can't think
about it tonight.
Wilburn: Well, and that was part of the reason, part of the reason I thought, that we
decided not to take a vote, is that we wanted to hear the public input, uh,
mull over it as, think of further questions to ask, and though Ivan will not
be here, urn, we can always submit something in writing or get a phone
call off to Ivan.
Champion: I think it was interesting to hear the public. I think it's also interesting to
hear things from MidAmerican, and I'm glad to see that they're
expanding, urn, in, what was that called, renewable fuels or out of the
coal- fossil burning stuff.
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Wilburn: Urn, just a procedural question, and urn, a question for the Council. Uh,
this is the public hearing, urn, does the Council wish to continue the public
hearing? Does the Council wish to close the public hearing?
Bailey: I move to continue the public hearing.
Wilburn: Can I finish my thought first before you...
Bailey: Sure, I just thought 1'd move things along.
Wilburn: .. . (laughter) urn, or if we were to close the public hearing, urn, urn, I can
allow comments similar to what we usually do with, urn, certain items, if
something comes up. Obviously, ifthere's agreement by enough Council
Members to send this back to the negotiating team for either language or
any other terms, urn, then I presume we would need to have another public
hearing.
Elliott: Ross, I told someone in the hall, I forget with whom I was speaking, but
they asked if the public hearing would be held again, and I said I don't, I
think I said I don't know, but it's my recollection that no Mayor in recent
years even has had an agenda item come before the Council where if a
member of the public wanted to speak to it, that public person hasn't been
able to speak. Am I correct on that?
O'Donnell: Exactly right.
Wilburn: With few exceptions.
Elliott: Yeah.
Wilburn: So, uh, having said that. Regenia has put a motion on the floor to continue
the public hearing.
Correia: Second.
Wilburn: I presume you wanted to continue to the...
Bailey: To October, whatever that is.
Wilburn: 16th, and so moved by Bailey, seconded by Correia. Discussion?
Dilkes: Can Ijust interject one thing. If you're interested in making changes to
the, uh, agreement, then you probably want to keep the public hearing
open. If you're not, go ahead and close it.
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Wilburn: Okay. Thank you, Eleanor. All those in favor of continuing the public
hearing, signify by saying aye. Urn, those opposed same sign. It carries 5
to 2, O'Donnell and Elliot in the negative. So we will continue the public
hearing to October. . . what day did you say?
Karr: 16th.
Wilburn: 16th, thank you very much.
Karr: Motion to accept correspondence.
Bailey: So moved.
Correia: Second.
Wilburn: Moved by Bailey, seconded by Correia to accept correspondence. All
those in favor say aye. Opposed same sign. Carries 7-0. Thank you all
for coming to the public hearing tonight.
Webber: Mayor, Members of the Council, thank you. I hope I am excused at this
point.
Wilburn: Thank you.
Bailey: Thank you, Ivan.
Vanderhoef: Drive safely! (several talking) Would you like a cup of coffee for the
road?
Wilburn: Take a break.
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ITEM 9 CONSIDER AN ORDINANCE AMENDING TITLE 17, CHAPTER
1, BUILDING CODE, BY ADOPTING THE INTERNATIONAL
BUILDING CODE, 2006 EDITION, AND THE INTERNATIONAL
RESIDENTIAL CODE, INCLUDING APPENDIX F RADON
CONTROL METHODS, 2006 EDITION, PUBLISHED BY THE
INTERNATIONAL CODE COUNCIL AND PROVIDING FOR
CERTAIN AMENDMENTS THEREOF; TO PROVIDE FOR THE
PROTECTION OF THE HEALTH, WELFARE AND SAFETY OF
THE CITIZENS OF IOWA CITY, IOWA. (SECOND
CONSIDERATION)
Bailey: Move second consideration.
O'Donnell: Second.
Wilburn: Moved by Bailey, seconded by O'Donnell. Discussion?
Correia: I'd like to move an amendment to this that would require new dwelling
units meet the usability standards of wider doors and switch, outlet
locations, and include a provision to allow a homeowner to waive the
requirements for a custom-built horne, but not the contractor for homes
built on speculation.
Wilburn: Moved by Correia. Item dies for lack of a second.
Champion: I know, urn, that the Homebuilder's Association is working on some
possible ways to get some of this done, so this is not going to be a dead
subject.
O'Donnell: It really isn't, and you know we all mentioned incentives when this carne
about, and I'm really uncomfortable when it's not required for a split level
or a split foyer, but urn, it is for every other house. I'm also
uncomfortable with.. .with the idea that if you're purchasing the horne,
that it's not required, or you can sign off. It needs to be an option and
there needs to be incentives.
Correia: I'm just. . .I mean, I'm not going to beat a dead horse here, it's late. Urn,
but, (laughter) but, urn, there are certain things that feel like "it's just the
way it is," where the outlets are, where the switches are, urn, how wide the
doorways are, you know. A hundred years ago doorways were narrower,
now they're wider, and I think: there's increasing evidence to suggest that
with our changing demographic, demographics in our population that
make sense to change the way things always are, to this new way things
should be in these two areas, and I'm very much, urn, excited with
working with the Homebuilder's and others in the community about
expanding incentives for more universal design, which is much broader
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than these two smaller items, which I think changes just the way it always
has been to the way it could be, and then the way it always will be. So, I
mean, with these two I think they're much smaller, urn, usability items
that.. . that, you know, frankly I don't see how it affects the design of a
home two inches on a doorway. I mean, I looked at the doorways in my
home, in a hallway, two inches is not going to make a huge difference in
that design, but would increase the usability if ever needed to use a walker
or, you know, had other restrictive, urn, health issues, or had a family
member or a visitor, and so that's why I think these two items have a place
here and that what we're talking about incentivizing, if that's a word, is
something that is bigger and maybe doesn't have a place in all homes
because of choice and design, but that we want to see in more homes
because of our changing demographic and wanting to be prepared for that.
Wilburn: I agree that it died for lack of a second.
Bailey: Well, I (several talking).. .go ahead, Dee.
Vanderhoef: I agree, but when I didn't hear another second from a potential fourth vote,
I just thought we should just let it go at this point in time, and uh, see what
new strides can be made by the individual contractors, because there are a
number of contractors that are doing these voluntarily right now. So, let's
keep encouraging them to do them.
Bailey: Well, and we're going to talk a lot about housing, as Connie point out, and
I think one of the things that this Councilor I guess it will probably be
next year's Council has to get clear on is what are our goals for housing in
this community, and I think that this needs to be incorporated into that
broader discussion. I mean, without losing sight of, sight of affordabi1ity
issues, I think we have to begin to envision what we want our community
to be in so far as housing, and this has to fall into that discussion, rather
than be something that we talk about now and then we talk about
something else later. Let's be more comprehensive in our visioning,
is.. .wou1d be my suggestion. So I don't.. .this will corne up again, as
Connie said.
Elliott: My suggestion's we not discuss a moot item. (several talking) No! But
we've had enough discussion on action items. (laughter)
Wilburn: Roll call. (person speaking from audience) Oh, go ahead. Go ahead.
Welsh: My name is Bob Welsh. Uh, I hope you, I realize you don't all get paid
for overtime, and (laughter) but I don't get paid for anything,
so.. . (laughter). I guess my hope is between the second and third reading,
uh, some of you will seriously consider, uh, the demographic changes
taking place. Uh, my vision is that Iowa City is recognized as a very
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desirable place to live and retire. I don't think Iowa City should rest on its
laurels. I think you always need to take steps forward, and I think that, uh,
the provision for waiving has the advantage of forcing an educational
program. I also am of the strong conviction, you had people, I got a kick
out of people saying I've been here 20 years, and one person said I can top
everybody, I've been here 40 years. Uh, I'm proud to tell you I've been
here 42 years, which is now over half of my life. Uh, just. . .I can tell you,
I'll be 81 the end of this week, so I've been here over half my life, and I
have a real passion to make sure that this community and this county is the
most desirable place for seniors to live, and to reach that goal, you all are
going to have to take actions, because it's not going to happen otherwise.
I have lived long enough to know that education is important, but that it
basically takes, at some point, rules and regulations. And uh, so I will
keep bugging you for as long as I'm a resident, which means as long as
I'm breathing, to take actions that will make this dog-gone best place in
the United States for people to live.
Wilburn: Thank you. Happy Birthday, and many more! (laughter)
O'Donnell: You know, I hear a lot of talk about how long people have been in the
community. They're a bunch of kids! I've been here 61 years! (laughter)
Wilburn: Did they have electricity back then?
O'Donnell: Urn, one house did.
Young: My name is Louise Young, and uh, I would have liked to have seen the
original amend.. .proposal that was made last week voted in. This
proposal though, does give us a foot in the door for some of the areas that
are needed, for affordable housing, and please remember, it isn't just those
who are disabled or elderly that are helped by us. It's everybody. Uh,
think about what it was like, all of you have had small kids. Getting a
stroller in through the door sometimes, or getting your groceries in
through the door when shopping. Doesn't a wider door make that easier?
And also, being able to readily reach those plug-ins, and have them out of
reach of small kids on the floor, for instance. This is a help for mothers of
small kids, as well as the grandmothers when the small kids are visiting
them. We do need to have some of these provisions in housing, and this
does allow if somebody chooses that they don't want to have any of these
in, that they can make that decision not to, but it's good to have the basic
provision there, that unless a person says no, the modifications should be
wider doors, the plug-ins up higher up the wall.
Wilburn: Thank you.
Brown: I would. . .
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Wilburn:
Brown:
Wilburn:
Karr:
Bailey:
Correia:
Wilburn:
Page 44
I'm sorry. I need you to state your name for the record.
I'm Mark Brown. I would not be here to...I did want to speak but Iowa
City (unable to understand) live in the community, and if you would have
Iowa City with all kind of people want to live and (unable to understand)
You may have.. . something may go wrong, and.. .but (unable to
understand). You may be a normal person but you have to have a housing
code in place. Thank you.
Thank you. Roll call. Item carries 7-0.
Motion to accept correspondence.
So moved.
So moved.
Moved by Bailey, seconded by Correia. All those in favor say aye.
Opposed same sign. Carries 7-0.
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ITEM 10 CONSIDER AN ORDINANCE AMENDING TITLE 17, CHAPTER
2, OF THE IOWA CITY CODE OF ORDINANCES, BY ADOPTING
THE 2006 EDITION OF THE UNIFORM PLUMBING CODE,
WITH CERTAIN AMENDMENTS, TO REGULATE THE
PRACTICE, MATERIALS AND FIXTURES USED IN THE
INSTALLATION, MAINTENANCE, EXTENSION AND
ALTERATION OF ALL PIPING, FIXTURES, APPLIANCES AND
APPURTENANCES IN CONNECTION WITH VARIOUS
PLUMBING SYSTEMS; TO PROVIDE FOR THE ISSUANCE OF
PERMITS AND INSPECTION OF PLUMBING INSTALLATIONS
AND THE COLLECTION OF FEES, AND TO PROVIDE
PENALTIES FOR VIOLATIONS. (SECOND CONSIDERATION)
Bailey: Move second consideration.
Wilburn: Moved by Bailey.
Champion: Second.
Wilburn: Seconded by Champion. Discussion?
Elliott: I think they devised that word just to bug us! (laughter)
Wilburn: Well, I'm not even going to promise I'll get it next time. (laughter and
several talking) I did too! Roll call. Item carries 7-0.
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ITEM 15 CONSIDER AN ORDINANCE AMENDING TITLE 8 OF THE
CITY CODE, ENTITLED "POLICE REGULATIONS," CHAPTER
8, ENTITLED, "POLICE CITIZENS REVIEW BOARD," ARTICLE
10, ENTITLED "COUNCIL REVIEW," TO DELETE THE 2-YEAR
CITY COUNCIL REVIEW (FIRST CONSIDERATION)
Bailey: Move first consideration.
Correia: Second.
Wilburn: Moved by Bailey, seconded by Correia. Discussion?
Vanderhoef: Uh, I was the one who originally put the sunset clause or brought it up,
and I also asked for the two-year review. At this point in time, I think it is
time to remove it. I am perfectly satisfied with how the PCRB is working
and we get our annual reports and I think that's adequate.
Wilburn: Okay. Roll call. Item carries 7-0.
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ITEM 16 CONSIDER A RESOLUTION APPROVING FUNDING FOR
SUMMA ENTERPRISES, LLC D/B/A NILE VALLEY
RESTAURANT FROM IOWA CITY'S COMMUNITY
DEVELOPMENT BLOCK GRANT - ECONOMIC
DEVELOPMENT FUND AND AUTHORIZING THE CITY
MANAGER TO ACT AS CHIEF ADMINISTRATIVE OFFICER
AND SUBMIT ALL NECESSARY DOCUMENTATION TO THE
U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT.
Wilburn: I have a conflict of interest because it involves community development
block grant and/or home funds, and I work for an organization that
receives such funding and cannot participate in the discussions or
deliberations.
Bailey: (reads Item 16)
Correia: Move the resolution.
O'Donnell: Second.
Bailey: Moved by Correia, seconded by O'Donnell. Discussion?
Correia: Sounds like a great project.
Bailey: It'd be a great restaurant.
Champion: Going to have belly dancing!
Elliott: I'll not support this. I think the people who have brought this to our
attention are very good people. I like everything I've heard about them,
the project they're doing, wish them success. I cannot use taxpayers'
money to make loans when there is no experience and no collateral. I
wish them the best.
Bailey: Roll call. Item carries 5-1, Elliott in the negative and Wilburn abstained
due to conflict of interest.
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ITEM 17 CONSIDER A RESOLUTION AWARDING CONTRACT AND
AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE
FIRE STATION #2 DEMOLITION AND CONSTRUCTION
PROJECT.
Wilburn: Uh, Engineer's estimate was $2,070,300, urn, Public Works and
Engineering recommend award of the contract, including alternates 1, 2
and 3 to Miron Construction ofIowa City, for uh, $2,053,291 base bid,
and the alternates 1,2 and 3, $8,359.
Elliott: I think that's of Cedar Rapids, isn't it?
Helling: Of Cedar Rapids. That's a misprint.
Elliott: No, that was just a misprint.
Wilburn: No problem.
Correia: Move the resolution.
Champion: Second.
Wilburn: Moved by Correia, seconded by Champion. Discussion?
Correia: When will that happen, the demolition? Do we know? When the
demolition will happen?
Morris: Pending on the signed agreement, urn, we're looking at October 15th as a
start date.
Bailey: Well, and just for the public's information, I mean, when we talk about
demolishing a fire station, I think it's important to note that renovation
wasn't possible with this fire station, and this is the most appropriate way
to proceed with this. (several talking) It still is, it's still there.
Champion: Beyond restoration, and as a historic preservationist, I can tell you, it was
beyond it! (laughter)
Wilburn: Roll call. Item carries 7-0.
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ITEM 18 CONSIDER A RESOLUTION AWARDING CONTRACT AND
AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE
SENIOR CENTER ADA RESTROOM RENOVATION PROJECT.
O'Donnell: Move the resolution.
Champion: Second.
Wilburn: Moved by O'Donnell, seconded by Champion. Discussion?
Correia: Can we just get the final number.. .there's eleven bathrooms. That's not
stalls, that's bathrooms?
Champion: Bath rooms.
Correia: Bathrooms.
Morris: Let's see, we have eleven total restrooms that are being renovated. Urn,
two that are staff ones that are not, so there's thirteen total that are
required by code. Urn, and then we have the number of stalls is seventeen
actual stalls, and four urinals, and they will be, each.. . all of those eleven
restrooms will be ADA accessible.
Correia: Okay, and currently they have, how many restrooms are not usable? The
ones on the ground floor.
Morris: That's correct. The ground floor is closed.
Correia: Are there any bathrooms then on the ground floor for the public?
Morris: No.
Correia: No, okay, so...
Champion: And how many of them are not ADA accessible.. . compliant?
Morris: I guess it would be eleven,
Champion: Oh, wow.
O'Donnell: This project is long overdue.
Morris: That's correct.
Champion: It makes it sound cheaper to me now. (laughter)
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Elliott: I asked Kumi earlier about the, uh, eleven separate rooms, and with four
floors and why that is, and it's because of the size of the rooms and the
required number of fixtures that we are required to have that. So there's
nothing we can do about that. This is required. We're meeting those
kinds of situations. We gotta get on with it.
Wilburn: Passage of this awards it to McComas-Lacina Construction ofIowa City
for $299,700.
Vanderhoef: Move the resolution.
Wilburn: It's already been...I just didn't get a chance to say it. Uh, roll call. Item
carries 7-0.
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ITEM 23 CITY COUNCIL INFORMATION.
Wilburn: Amy? Connie?
Champion: Nothing.
Wilburn: Mike?
O'Donnell: Marian, thank you for assuming control tonight during the tornado.
(laughter)
Wilburn: Keeping us safe!
O'Donnell: That's it.
Wilburn: Dee?
Vanderhoef: Real quickly, I was going to give you a long report. I won't. Uh,
conference League of Cities conference in Dubuque last week had a
record number of, uh, elected officials. It was a fabulous conference. I
passed the gavel to my friend and colleague from next door. Jim Fausett
is the new President oflowa League of Cities, and I'm sure he will
continue on with a fine program. And the housing, uh, part ofthe
conference went really well, and we have permission to continue, uh, the
committee and add people to it for this coming year, because it's going to
be an ongoing committee for League of Cities, which I'm very pleased
about.
Wilburn: Very good. Regenia?
Bailey: Just a reminder there's a gallery walk in downtown Iowa City this Friday
October 5th and I encourage everybody to get out and enjoy the art, and
enjoy the great company, and there's typically pretty great food at the
gallery walk.
Elliott: I had several exciting and somewhat titillating adventures to describe, but
the hour is late so it'll wait till next time. (laughter)
O'Donnell: Thank you.
Wilburn: Uh, just a reminder for the public that, uh, next Tuesday, October 9th, is
the primary election. Good luck to all the candidates.
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