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HomeMy WebLinkAbout1983-09-13 Bd Comm minutes0 (" I MINUTES OF THE IOWA CITY MUNICIPAL AIRPORT COMMISSION August 24, 1983 Iowa City Civic Center Members Present: George, Saeugling, Schmeiser, Tiffany, Lewis Staff Present: Zehr, Brown, Jansen, Overman Chairman George called the meeting to order at 7:30 p.m, and indicated that the guests present would be noted as they speak. Chairman George gave a brief introduction to the purpose of the meeting and that was to discuss alternatives to get the Iowa City Airport back into a status of compliance with the FAA. Schmeiser then gave a detailed description of the alternative that seemed to be the most logical approach to the problem. It was to relocate the threshold to runway 17 by 430 feet to remove all the FAA objections in the clear zone to that runway and proceed with the lengthening Of runway 24, with the city acquiring the required land for the extension at their expense. There followed a short discussion by the commission members about the proposal. The meeting was then opened to the public for discusssion of other possible alternatives. Mr. John Dane, E.K. Jones, Robert Byers(representing Hansen,Lind, Meyer P.C.);Richard Benjamin, Elliot Full, Dr. Howe, and Dick Blum all addressed the Commission with similar concerns that they did not feel that extending runway 24 was the best solution and that a closer analysis of runway 17/35 be made before further consideration be made on the runway 24 proposal. The majority of the speakers felt it would be safer and more'cost effective to extend 17 to the south rather than extend runway 24. Dr. Howe presented Chairman George with a Notice and Petition seeking Declaratory Relief from the Airport Commission, The City Legal staff will reply to the petition. There was no other public input and the public hearing was closed. Saeugling made a motion to table further consideration of the committees proposal and reopen the master plan for a detailed analysis of runway 17/35. There was no second. Saeugling amended his motion to table further consideration of the committees proposal and to investigate the feasibility of extending runway 17 to the south and to determine if the FAA would consider that an acceptable solution. Seconded by Tiffany, a7.1 voted aye. It was decided to continue discussion of the, proposal at the next commission meeting after we have recieved input from the FAA. Meeting adjourned at 9:50 P.M. ..._....111CROFILIIED.BY._..._.... JORM MICR+LAS i - CEOAR kA P705 DES MOINES f j}I /797 MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. CIVIC CENTER CONFERENCE ROOM Suu,IecL Eo approvai Dy'biL r - MEMBERS PRESENT: Ehninger, Madsen, Sigrin, Terry MEMBERS ABSENT: Johnson MEMBERS EXCUSED: Johnson OTHERS PRESENT: Susan McGuire of Access Iowa City; Dewey McGuire of the Iowa City Public Library; Irene Murphy, Blough and Kalergis of Hawkeye CableVision STAFF PRESENT: Shaffer, Brown RECOMMENDATION TO COUNCIL: The Broadband Telecommunications Commission unanimously approved a recommendation for a policy regarding the required extension of cable service to newly annexed and new housing areas. MATTERS PENDING COUNCIL -COMMISSION DISPOSITION: Hawkeye CableVision's rate increase request. MEETING CALLED TO ORDER: i Meeting called to order at 4:10 p.m. MINUTES: Moved by Madsen, seconded by Ehninger, to accept the minutes of May 24, 1983. Unanimously approved. SUMMARY OF DISCUSSION AND FORMAL ACTION TAKEN: i The First Annual Local Access Programming Awards and Banquet will be held August j 4 to recognize local Iowa City producers. Dewey McGuire is replacing Susan DePringer in the AV lab position now funded by the franchise fee. Access Iowa City appeared to announce they are doing a local program called Community Forum the first Monday of each month at 6:30 p.m. and that they are roasting Drew Shaffer on September 29th. Irene Murphy spoke to complain about the loss of WQAD on the Iowa City cable system. It was determined because of recent federal Copyright Tribunal rulings the raise in fees by Hawkeye meant some service had to be dropped. Hawkeye replaced WQAD with CNN. The BTC unanimously adopted a policy recommendation regarding the required extension of cable service to newly annexed and new housing areas. This policy recommendation includes timeframes within which new areas must be wired and will be forwarded to the City Council. Ehninger and Sigrin will form a subcommittee to research alternative management and operational structures for the public access channel. Johnson will be asked to chair a subcommittee to study the BTC priority involving the development and i I r... ......._. MICROFILMED -BY ........... .�. t JORM MICR#LAB E -CEDAR RPPIOS • DE- MOINES i f IN BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. PAGE 2 applications of the institutional network in Iowa City. Shaffer reported the passage of Senate Bill 66, a cable deregulation bill to the Senate. House hearings will start in September. Shaffer reported on 13 complaints over the last month. Kalergis discussed setting up criteria for the use of the TVOM (portable switcher) and on doing a live program or a series. This was brought up as a result of complaints about some local programming. The criteria will be worked on by Hawkeye and Access Iowa City and brought back to the BTC. A refundable deposit fee for the access video workshops was discussed to try to curb "no-shows" ANNOUNCEMENTS: The first Annual Local Access Programming Awards Ceremony and Banquet will be held August 4 at 6:30 p.m. at 10 South Gilbert. Shaffer distributed an announcement from Tiffany that Dewey McGuire will be replacing Susan DePringer as the person responsible for access related equipment and training in the AV lab. This position is supported by the franchise fee. Shaffer introduced Dewey McGuire as a long time, hardworking supporter and producer of access programming in Iowa City. Sigrin gave Kalergis an article describing the current financial difficulties of the foreign language channel TeleFrance. Sigrin suggested Bravo as an alternative to TeleFrance. Kalergis said Teleculture has been one Spanish programming service she has been investigating. PUBLIC DISCUSSION: Susan McGuire of Access Iowa City announced a Roast of Drew Shaffer on September 29. She also announced the next two meetings of Access Iowa City, which the BTC ! is welcome to attend. She inquired if Nicholas Johnson was still the BTC II representative to Access Iowa City and Terry responded that Mr. Johnson is the BTC representative. McGuire also let the BTC know that Access Iowa City has. been sponsoring Community Forum each Monday of every month at 6:30 p.m. She said they .have 'had some technical difficulties in.doing this program and that they are keeping a record of these problems which are being discussed with Kalergis. The record of these problems is being kept in the BTS office. Irene Murphy spoke to complain that channel 8, WQAD, had been deleted from the current i service offerings in Iowa City and that there had been no advance warning to subscribers about this change. Blough explained he was sorry to lose WQAD and hoped that CNN would be a good replacement. WQAD was dropped because of a raise in fees charged for distant signal carriage. This raise in fees has amounted to i a 350% increase due to a recent moving of the federal Copyright Tribunal. Because Hawkeye has another ABC duplicate, and Hawkeye felt financially something had to go, that WQAD was the best choice. Hawkeye wanted to keep WGN and WTBS services in Iowa City. Blough said 'if the fees for distant signals are lowered to a more equitable level or if WQAD is determined to be more significantly viewed and wanted by Iowa Citians, Hawkeye will bring WQAD back. Shaffer commented the local franchise did call for the provisions of certain program services, such as WQAD. But in the case of the loss of the signals that are due to circumstances beyond the company's control, such as in this instance, an equal substitute for the loss of service must be provided. Madsen asked how much the copyrights fees for WGN and WTBS would cost Havikeye. Blough said the costs for each of those would cost two and a half to three times more than before, or about $40,000. Madsen asked if Sigrin had attended the Coralville Cable Commission meeting as discussed by the BTC to answer questions about the _ ...... 141CROFILIIED BY JORM MICR+LA9 l 1 7 CEDAR RAPIDS • DES MOINES f ! I 1. � BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. PAGE 3 sharing of the franchise fees from Coralville to defray costs of the Iowa City Access Center that is used by Coralville residents. Sigrin said he had not attended that meeting on the advise of Terry and Shaffer, who informed him the Coralville Cable Commission had not yet addressed this issue and to send someone from BTC before their Commission initially discussed the topic should not happen. SUBCOMMITTEE REPORT ON REQUIRED EXTENSION POLICY TO NEW HOUSING AREAS AND NEWLY ANNEXED AREAS: Madsen, speaking for the subcommittee of Madsen and Ehninger, reviewed the action taken by the BTC at their last meeting to rescind the earlier recommendation of October 19, 1982, regarding the required extension policy. This was done in the light of the view that the policy had to be legally defensible from the Legal Department and the City's perspective. To do this she said major concerns and considerations involved the inclusion of a density clause, definite timeframes and adequate definitions of all words and phrases used in the policy. Madsen said the subcommittee is aware that the cable company wants a fair return on investment but at the same time the BTC wants to insure that as the city expands, those persons who want to get•the cable service can receive it. She said she believes Hawkeye Cablevision has been responsible about planning to expand because of Blough's stated capital expenditures in this area amounting to seven miles of plant in 1983, four miles of plant in 1984- 1985, and three miles of plant in 1985-1986. She said a density clause is a reasonable method to consider given that the City Council and City policy has tried to discourage non-contiguous development in the city. The average density in Iowa City is approximately 115 potential subscribers per mile. There are certainly areas with much higher density and some with a much lower density. These are some of the considerations taken into account by the subcommittee. Madsen moved that the motions regarding the required extension.policy to newly annexed areas and new housing areas that were passed by the BTC at their May 11, 1982, meeting be rescinded. Seconded by Ehninger. Unanimously approved. Madsen moved the subcommittee proposed required 'extension policy to newly annexed areas and new housing areas be passed by the BTC as a policy recommendation to Council which if accepted by Council will become an ordinance amendment. Seconded by Ehninger. The substance of the proposed recommendation is as follows (for full recommendation see policy recommendation filed with the City Clerk): Section 14-78(b)(1) Conditions of Required Extension: The grantee shall at its expense extend its broadband telecommunications network so as to provide full network service to all potential subscribers in: a. Newly annexed areas of the city contiguous with an area served by or required to be served by an existing network as soon as possible but in no event later than six months after the first request for service. b. Newly annexed areas of the city non-contiguous with an area served by or required to be served by an existing network as soon as possible but in no event later than six months after the first request for service when the annexed area contains at least 20 potential subscribers per plant mile including interconnecting trunk. r- --- ..._... _ . __.. y , MICROFILMED BY I� t JORM MICR+LAFJ I.CEDAR RAPIDS • DES MOINES I �� 7 BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. PAGE 4 C. New housing areas developed within the city limits and contiguous with an area served by or required to be served by an existing network as soon as possible but in no event later than six months after the first request for service. d. New housing areas developed within the city limits and non-contiguous with an area served by or required to be served by an existing network as soon as possible but in no event later than six months after the first request for service when the housing area contains at least 20 potential subscribers per plant mile including interconnecting trunk. e. Any resident dwelling within -the city limits and within 200 feet of an existing network as soon as possible but in no event later than 30 days after the first request for service. Section 14-61. Definitions. "Contiguous" shall mean abutting or within 200 feet. rehabilitated,Yarea" "shall e area orrestoredres dencontaining tial orcommery newly unitconstructed, h didnot exist prior to April 18, 1982. i The BTC noted that the phrase potential subscriber was •meant to refer to an occupied dwelling unit. The phrase interconnecting trunk used in this recommendation in part determines the density needed in an area to be wired. For example, if Hawkeye has to build one mile of interconnecting trunk to reach an area and then one mile to get to the potential subscribers, that is a total of two miles needed and therefore 40 potential subscribers would be needed to trigger this policy. Sigrin asked about whether there should be a procedure or mechanism as a back-up when a subscriber request for service is made in order to avoid potential conflicts about whether the subscriber does actually make the request for' service. Slough stated Hawkeye would keep a record of when all requests for service are made. Sigrin asked if a postcard with a date sent by Hawkeye with a date when the subscriber requested service could be sent by Hawkeye to the subscriber. Slough agreed that Hawkeye could comply with this idea. The BTC felt this procedure would be adequate. The subcommittee recommendation was unanimously approved. Terry asked Ehninger and Sigrin to serve on a subcommittee with Shaffer to• research this subject. Kalergis mentioned that she wanted to have input into this subcommittee and that she disagreed with the letters sent by Terry and Shaffer and that she does not see Hawkeye moving away from acting support of access in Iowa City. McGuire asked if she or Access Iowa City representatives could also have input into this subcommittee. Terry said input from Kalergis and McGuire would be welcome. ti .. ._..14]CROFILIIED.BY. _... ._..� t JORM MICR+LAB 1 t CEDAR RAPIDS • OEC MOINES 1 � L _ BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. PAGE 5 I The institutional network is a top priority in the list developed by the BTC over the last few months. Terry expressed an interest in having Nicholas Johnson chair this subcommittee. Terry will request this of Johnson when he returns. Shaffer will work with Johnson, or w subject. homever, on researching this ES REPORT: The BTS will finalize the STC Annual Report. Shaffer received a letter from Kalergis sent by the Cable TV Association of Iowa. This cable association will be producing programs involving state Congress persons and legislators, which they will make available to the government channel in Iowa City. Senate Bill ch did pass through the Senate and will be taken up in the House in September. Th66 e National League of Cities held six hours of discussion on the substance of this bill, which indicates its controversial nature. Shaffer, Kalergis,, Oregon. tSusan and Dewey McGuire attended the National NFL CT conference in Portland Shaffer received 13 complaints; five were requests for have answers if the required extension policy is pavice, which will now ssed seerCouncil, since they fall into the category of new housing areas. Shaffer reported receiving a letter from the local Amateur Radio Club reporting interference with their frequencies showing up on channel 17. The letter requested no action from the BTC, but said further discussions with Blough would be held. Shaffer said he received a complaint about the local program "Probe" and some obscenity that was spoken on the program. In addition, a complaint was registered about the loss Of WQAD on the Iowa City, cable system. Another complaint was registered from Hafor Drive. The subscribers said their TV set and Betamax had been completely destroyed twice as a result of lightning and believed that cable was the problem. Blough said they had talked -to this subscriber, had checked their own ground lines and found that these lines were adequate and that the converter boxes hooked up to destroyed TV sets were in perfect condition. This, according to Blough, proved to him that cable was not the source of -the problem. Blough suggested the powers lines originally attracted and carried those electrical charges. Blough said there was nothing he knew of that could be done to correct and thebshortestuPossiblelirouteng Inllfollow addit on,thBlough oaidleast thatresistance Hawkeye considers this to be an act of God. Shaffer asked Blough about the need for a cable TV line to be buried in Cardiff Circle. Blough said this particular line would be buried when the landscaping in the area is completed which should be shortly. HAWKEYES REPORT: Blough thanked the BTC and staff for helping complete the required extension Policy. This, he said, will make it easier to plan for his company and that he can live with the policy as recommended. Kalergis said in light of complaints regarding some local programming, she is having her staff draw up some suggested criteria for use of the PCOM or portable switcher, for a live show and for a series. The BTC suggested sharing this criteria with Access Iowa City and then bringing the results to the BTC. Kalergis discussed the problem of having people who have signed up for workshops cancel without any notice. She /79oo ti �_..'. { _. ... MICROFILMED. BY t JORM MICR+LAO i CEDAR RAPIDS • DE: MOINES E i 1 BROADBAND TELECOMMUNICATIONS COMMISSION TUESDAY, JULY 19, 1983 4:00 P.M. PAGE 6 suggested placing a refundable deposit of $5 from workshop participants. Also, if persons gave adequate notice of not being able to attend for a workshop, their money would still be refunded. It was decided this was an important topic that needs to be addressed further, it will be an agenda item at the next BTC meeting. Sigrin complimented Hawkeye for their coverage of the Mary Adell Talk Show at Old Brick. Kalergis announced two job vacancies at Hawkeye as a result of Rick Hindman and Todd Yoder both leaving Hawkeye this month. NEW BUSINESS: The subject of the University's interest in leasing two cable channels was briefly discussed., The University has indicated they are interested in leasing two cable channels for data purposes in the community. Hawkeye will update the BTS as talks progress and the BTC will become more involved in these discussions at some point as this could potentially limit the channel availability on the cable system in Iowa City. ADJOURN: Moved by Sigrin, seconded by Terry, to adjourn. Unanimously approved. Adjournment at 6:15 p.m. I Respectfully submitted, William Drew Shaffer Broadband Telecommunications Specialist _..__.,MICROFILMED..aY.__._.._...._.. .... t DORM MICR+LAS f -CEDAR RAPIDS • OEC MOINES li I i I i .. . E e i r Subject to approval by BTC MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 20, 1983, 5:00 PM CIVIC CENTER CONFERENCE ROOM MEMBERS PRESENT: Ehninger, Madsen, Sigrin, Terry MEMBERS ABSENT: Johnson MEMBERS EXCUSED: Johnson• OTHERS PRESENT: John Campbell, Press -citizen; Bill Blough and Karen Kalergis of Hawkeye Cablevision; Kathy Cance, Regional Manager for ATC STAFF PRESENT: Shaffer, Monica Bieri, Dave Brown RECOMMENDATIONS TO COUNCIL: None. MATTERS PENDING COUNCIL -COMMISSION DISPOSITION: 1 Hawkeye's rate increase request for basic service. { MEETING CALLED TO ORDER: Meeting called to order at 5:15 PM. f SUMMARY OF DISCUSSION AND FORMAL ACTION TAKEN: The BTC initiated discussion regarding Hawkeye CableVision's rate increase request. Bieri of Finance Department highlighted areas of her I analysis of the financial information presented by Hawkeye. Bieri noted lower ROIs received by Hawkeye during 1979 and 1980 were probably,due to high costs during the heaviest construction period. She said there does not appear to be a cash flow problem for Hawkeye at this time. Bieri said she had not received an amortization schedule so she could not comment on the comparatively large interest line item payments made by Hawkeye to ATC and whether and how much this item may decrease in future years. The projected 8.3% ROI for 1983 included in Hawkeye's financial information does include the increase in pay channel revenues and an assumption of a $2 basic rate increase effective October 1, 1983. Current penetration levels are 52 to 53% for basic service, 60% for HBO and 40% for Cinemax. It was not determined at the meeting how much of the 'pay channel rate increase is kept by Hawkeye. The decisions to raise HBO and Cinemax rates in July 1983 were made by ATC. Ehninger pointed out the high volume of construction going on in Iowa City may be a good potential of new revenue for Hawkeye. Hawkeye stated that most current construction involves apartment complexes and that is where Hawkeye's penetration rates have traditionally been the lowest (32-33%). i / 79� ---------_ - - - ._._.__.MICROFILMED BY. t JORM MIC R(LAB I CEDAR R41DS • DES MOINES { I BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 2 Several Commissioners pointed out this is a 15 year franchise agreement and to reach a double digit ROI this soon may be premature. Cance from ATC pointed out she believed the BTC should note Hawkeye is less then halfway to their financial goal at this point and that the ROI will not continue to increase as it did in 1981 and 1982. The ROI for Hawkeye has been -3%, 1.8%, 5.3% for 1979-1980, 1981 and 1982 respectively . Bieri pointed out the substantial growth in 1981 and 1982. Blough said those two years represent the largest growth the system will ever experience, and a plateau effect in subscriber growth and revenue is already occurring. The viability of cable advertising as a revenue activity for Hawkeye was discussed and the BTC requested Shaffer further research this subject. The factors of unregulated completion in the form of Low Power TV (LPN), Direct Broadcast Satellite (DBS) and others, and their effect on Hawkeye were discussed. Ehninger inquired if Hawkeye had obtained basic service rate increases in Coralville and University Heights. Blough stated Coralville and University Heights' rates are tied to Iowa City's, and that their rates would -automatically be raised if Iowa City allowed basic rates to increase. It was determined the financial information presented by Hawkeye to the BTC incorporated the revenues and expenses for Iowa City, Coralville and University Heights. Terry stated he did not like this approach of compiling different cities' figures. Hawkeye pointed out costs for building the Iowa City system were much higher than originally anticipated partly due to having built 160 miles of plant instead of the originally projected 120 miles. ' Management fee. payments to ATC from Hawkeye were discussed. It was determined these fees are a set contract amount - either 5% of Hawkeye's gross revenues•ior $2,000 per month, whichever is greater. Bieri was asked, in light of the discussion at the meeting, what her opinion of the rate increase was. Bieri stated she believed there is not enough history to support an increase, especially a $2 increase. Madsen requested a further breakdown of the operating origination and administration line items. Terry asked for a debt reduction schedule for the rates Hawkeye owes up to the current $4.4 million spent on the Iowa City system. ANNOUNCEMENTS: This meeting will be adjourned after 1h hours and will be continued at 5:00 PM on Tuesday, July 26, 1983. PUBLIC DISCUSSION: MICROFILMED. BY. JORM MICR#LAB -CEDAR RRPIDS • DE-- 1101NES I 1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 3 None. S The primary purpose of this meeting of the BTC is the consideration and/or recommendation by the Commission regarding Hawkeye CableVision's rate increase request for basic service in Iowa City, which was submitted on June 7 to the City Clerk's office. Shaffer distributed copies of Section 14-76 of Ordinance 78-2917 which pertains specifically to the matter of rate increase consideration. Shaffer also distributed copies of the page from Hawkeye CableVision's franchise proposal from which Hawkeye Cablevision drew its justification for a rate increase request (i.e. the financial goals stated by Hawkeye CableVision of attaining an average of 13-17% return on investment over the first ten years of the franchise). Terry called upon Monica Bieri of the City's Finance Department for her appraisal of Hawkeye's request and the financial statements and justifications submitted by Hawkeye. Bieri commented on the significance of the timeframes involved in this rate increase request, in particular, that in 1979-1980 operating revenues were down due to this being a construction period without any subscribers. These revenues are a key in calculating the rate of return. During construction, revenues are most always down, making the rate of return look bad and it will not look good until the system is at full operational level. Bieri noted that in her estimation there does not appear to be a cash flow problem at this time. This is because without the depreciation expense item, which is a non-cash expense item on the operating statement, Hawkeye is showing a net income. Revenues have increased considerably from 1981 to 1982. Bieri stated that these are the two true operating periods (1981 and 1982) and the Commission should consider these more significant than the 1979-1980 period. Finally, Bieri noted that she had not seen an amortization schedule and so she could not comment on what the. Commission should anticipate in regard to the interest expense line item on the operating statement which is significant in size. Theoretically, she said, the principal amount should start decreasing and, in turn, the interest payments would also start to decrease. This would, therefore, increase the net income as well as increase the rate of return. Sigrin requested for the record the origin of the information on which Bieri had based her comments. Bieri stated she had reviewed the financial reports filed by Hawkeye with the City Clerk's office for calendar years 1981 and 1982 and the information submitted by Hawkeye as justification for the rate increase request. Sigrin asked whether Bieri had an opportunity to observe Hawkeye's books herself and Bieri stated she had not. Blough remarked that these financial reports are audited by one of the largest ten firms in the country and that the auditing firm's credibility is on the line if inaccurate statements are presented. Blough explained the methods by which the financial information is put together and substantiated. Ehninger brought up a question of an apparent discrepancy between the franchise fee received by the City of Iowa City and the total revenue recorded in the financial statements presented by ..MICROFILMED BY l JORM MICR+LAB -CEDAR RAPIDS DEC MDIIIES t.. 1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 4 Hawkeye. Although Slough stated that this information was prepared by ATC, he did attempt to clarify what was represented by the amounts. Terry stated the question was an important one and should be discussed at length at a later meeting. The immediate question of the discrepancy between the franchise fee amount and the total revenue reported in Hawkeye's financials was left unresolved. Madsen asked whether the Hawkeye financial statements are showing a reduction in principal of the loan debt accrued by Hawkeye. Bieri replied she did not believe that such information would affect the 'operating expense statement, and that no debt repayment schedule or amortization schedule was available so that any reduction in the principal is not a known factor. Terry asked whether the 8.3% return on investment projected for 1983 mentioned by Slough includes the HBO and Cinemax increases which Hawkeye instituted on July 1, 1983. Blough stated that the projection does include those increases and also represents an assumption of a granting of a $2.00 increase in basic service rates from October 1 through December 31, 1983. Terry then asked Blough what the ROI for 1983 would be without the $2.00 rate increase. Blough replied he was unsure what that amount would be. Terry inquired how much of the increase in the rates for HBO and Cinemax are direct costs to Hawkeye from the suppliers of HBO and Cinemax. 'Slough said he was unsure of the exact figures and that the extra charges are split between the program' supplier and Hawkeye. Hawkeye uses the funds from these pay channels to cover their costs such as the purchase and installation of traps to filter out the pay services to 'those not subscribing -to them, inother words, for security purposes. Shaffer asked if such costs were increases in costs to Hawkeye. Blough responded that these are not increased costs. Blough. said it is the pay channels that enable the basic service cost to remain low and even for over 12 channel cable systems to exist. Madsen inquired about the overall -changes in pay channel subscriber costs. Slough responded HBO was first sold for $6.95 and is now selling for $9.95 and that Cinemax started at $8.95 and is now selling for $10.45. Sigrin asked if charges for these services were set by Hawkeye's parent company, ATC. Cance responded that such charges are set by HBO and Cinemax, 'which are subsidiaries of Time, Inc., and ATC is a separate subsidiary of Time, Inc. When asked who decided to raise the pay channel rates in July, Cance responded that was an ATC decision. Ehninger commented there is a lot of new construction going on in the city which appears to be close to the existing network that will only require drops and that this situation should assist Hawkeye's financial situation. Slough responded that there is an investment cost involved in wiring such buildings and that apartment buildings average only 32-33% penetration. Cance said the high turnover of residents in apartment buildings does not make these units the moneymakers they would appear to be. Cance stressed that even if Hawkeye had a $2.00 increase for all of 1983, their return on investment would have only been about 10%. %7ly t. .. .14ICROFILIIEO.,BY. E_ S_ JORM MICR+LAB \ i CEDAR RAPT OS • OEC MOINES1 3 1 L_ ... 1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 5 Cance described why there was a need for a 15% return on investment, citing the business investor risks involved, technical obsolescence, competition in the form of radio and television stations, noting that cable is simply an entertainment medium like those competitors. interjected that whether cable TV is an entertainment medium only aShaffer nd what real competition means to cable TV is being debated in state legislatures and in Congress right now. Madsen asked whether it was reasonable to expect a 13-17% return on investment at such an early point in franchise, with 100% of the City being served for only a little more than one year. Cance said no, and that's why they are only requesting a $2.00 increase in basic rates, bringing the return on investment from 1983 to 8.3%. Also that because such a $2.00 increase would mean a 3% jump from 1982 to 1983 in return an investment (from 5.3% to 8.3% respectively) that a 3% jump for 1984 to 11.3% does not necessarily follow. Shaffer requested what the return on investment for 1983 would be given no rate increase was granted. Cance said this could be supplied. Terry requested information regarding how much of the pay channel rate increases Hawkeye gets to keep. Cance said they do have confidential agreements with their suppliers but that she could probably supply the total cost and revenue figures that would lead to the information he requests. Terry asked whether the 8.3% return on investment projected for 1983 mentioned by Blough includes the HBO and Cinemax increases which Hawkeye instituted on July 1, 1983, Blough stated that the projection does include those increases and also represents an assumption of a granting of a $2.00 increase in basic service rates from October 1 through December 31, 1983. i Terry then asked Blough what the ROI ,for 1983 would be without the $2.00 rate increase. Blough replied he was unsure what that amount would be. Terry inquired how much of the increase in the rates for HBO and Cinemax are direct costs to Hawkeye from the suppliers of HBO and Cinemax. Blough said he was unsure of the exact figures and that the extra charges are split between the program supplier and Hawkeye. Hawkeye uses the funds from 'these pay channels to cover their costs such as the purchase and installation of traps to filter out the pay services to those not if subscribing to them, in other words, for security purposes. Shaffer asked such . sts were increases n kiteeuPra these arenot increased costs. 81ugh saicosts to d istBlough ychnnels that enable the basic service cost to remain low and even for over 12 channel cable systems to exist. Madsen inquired about the overall changes in pay channel subscriber costs. Blough responded HBO was first sold for $6.95 and is now selling for $9.95 and that Cinemax started at $8,95 and is now selling for $10.45. Sigrin asked if charges for these services were set by Hawkeye's parent company, ATC. Cance responded that such charges are set by HBO and Cinemax, which are subsidiaries of Time, Inc., and ATC is a separate subsidiary of Time, Inc. When asked who decided to raise the pay channel rates in July, Cance responded that was an ATC decision. lenf .MICROFILMEO•BY'_ JORM MICR+LAFJ • CEDAR RAPIDS • OEC MOINES j ' 1 ro- BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 6 Ehninger commented there is a lot of new construction going on in the city which appears to be close to the existing network that will only require drops and that this situation should assist Hawkeye's financial situation. Blough responded that there is an investment cost involved in wiring such buildings and that apartment buildings average only 32-33% penetration. Cance said the high turnover of residents in apartment buildings does not make these units the moneymakers they would appear to be. Cance stressed that even if Hawkeye had a $2.00 increase for all of 1983, their return on investment would have only been about 10%. Cance described why there was a need for a 15% return on investment, citing the business investor risks involved, technical obsolescence, competition in the form of radio and television stations, noting that cable is simply an entertainment medium like those competitors. Shaffer interjected that whether cable TV is an entertainment medium only and what real competition means to cable TV is being debated in state legislatures and in Congress right now. Madsen asked whether it was reasonable to expect a 13-17% return on investment at such an early point in franchise, with 100% of the City being served for only a little more than one year. Cance said no, and that's why they are only requesting a $2.00 increase in basic rates, bringing the return on investment from 1983 to 8.3%. Also that because such a $2.00 increase would mean a 3% jump from 1982 to 1983 in return on investment (from 5.3% to 8.3% respectively) that a 3% jump for 1984 to 11.3% does not necessarily follow. Shaffer requested what the return on investment for 1983 would be given no rate increase was granted. Cance said this could be supplied. ' Terry requested information regarding how much of the pay channel rate increases Hawkeye gets to keep. Cance said they do have confidential agreements with their suppliers but that she could probably supply the total cost and revenue figures that would lead to the information he requests. Madsen and Bieri questioned the need to reach double digit return on investment figures this soon in the franchise given this is a long term proposal of 15 years, even though ATC had set out goals, in their initial proposal, of an average of 13-17% return on investment over the first ten years of operation. Bieri suggested the BTC was voicing doubts that a need to raise rates to get to double digits by next year seems too fast. Cance says she doesn't understand the concern about speed here, since they are four years into the franchise and only half way to where they want to be. She felt the concern should be whether Hawkeye is making too much money or that they are not doing something that they should be doing in the community and that neither of those things are occurring. Bieri pointed out the substantial growth in the last two years of the franchise. Blough said that such increases will not occur again, and that there will be a plateau of growth reached soon. Since all new growth has to be built underground, this is a very expensive endeavor and will not add greatly to the return on investment. 4 � MICROFILMED. BY. ...t� t JORM MICR#LAB ( - CEDAR RAPIDS - DEC MDINES� ' 1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 7 Sigrin asked if Hawkeye has been or is considering local advertising as a future source of revenue. Blough and Cance responded negatively stating local advertising operations for cable systems were not yet a proven business, although they are still open to this idea. Blough mentioned his fear of unregulated services, such as LPTV (Low Power TV), DBS (Direct Broadcast Satellite) and others that will provide strong competition for Hawkeye and the cable industry. Shaffer responded.to points made by Cance and Blough. Shaffer said that although there are a number of media choices in Iowa City, there are no TV stations here, and therefore cable is the most viable visual advertising form, given its rates will be more comparable to radio than to TV. Already local companies have provided funds to back access programs, indicating a willingness and interest to advertise through cable. Shaffer said Blough's point of competition is well taken, although cable can do things those competitors can't, such as a multiplicity of channel offerings, local programming services, bundling of services including leased access, data services, radio FM services, institutional network services plus the satellite and local broadcast network services. Blough responded that these other services like DBS will be selling the bread and butter of cable TV - the pay services, which can offer those services just as easily as cable. Shaffer agreed that they will and that may be why Earl Haydt of ATC is working so hard to experiment with and get local serI integrated into communities. vices by cable Madsen said certainly these forms of competition were foreseen by ATC. j Cance said yes, but ATC also anticipated that if they came to Iowa City With their financials and these were not showing a reasonable rate of return and that their rates are not out of line, in fact they are low, that Iowa City would grant an increase. Terry asked what the national average for basic service rates are. Cance said she didn't know and didn't think that would be applicable anyway because of the wide variance in numbers of channels and services in each system. Terry quoted Cance as saying a 17% rate of return is an average for the cable industry. Cance said this has nothing to do with the basic rate but is rather the cost of capital which includes what interest is paid and what busine s aid in Iowa City and got eretur siofi1.8%f he were an investor startina , 5.3% and 8.3% in respective years he'd be happy. Cance said that there is also a great debt yet that will take years to be paid off. Madsen said that no large business expects to pay off their debts right awa franchise. ay, nd this is a 15 year 141CROF1 LIIED,BY _ �I1 ` JORM MICR+LAB f CEDAR RAPIDS DEQ MOINES �1 ' I BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 8 Ehninger asked if rate increases had been obtained in Coralville or University Heights. Blough said rate increases for those communities would be automatic with Iowa City's rates because they included that stipulation in their ordinances. Blough said he thought when considering rate increases that financial realities rather than future possibilities or hypotheticals need to be taken into account. Terry inquired if the financials submitted by Hawkeye includes all three systems. Blough said yes, and that may be the reason for the franchise fee discrepancy noted. Blough stated that the effect of building the three systems together was a cost benefit to all concerned. Madsen O has 60% Penetration, Cion maxhhasa40%h penetration, penetration.annel basic servicessis�52 to 53% penetration and all three services are showing signs of leveling off for maintenance and new construction has to be taken into account too. Madsen said those capital expenditures would have been foreseen by ATC. Blough said 120 miles were originally planned and 160 miles of plant have actually been built. Blough said the original investment in Iowa City has been much higher than anticipated by ATC. Shaffer asked for a clarification of Blough's projected penetration leveling off percentages, since earlier projections were up to 65% penetration of the basic service. Blough said initially he thought penetration of basic may go that high, but that it now looks as if it is beginning to level off in the 50 to 55% range. Terry asked about the management fees to ATC. Cance said that covers services ATC provides such as payroll, income tax reports, FCC reports, etc. Terry brought up the statements Blough told the BTC about the decentralization of the decision making process in ATC, so more decisions are made locally. Blough said he was referring to the clustering concept with those statements. Shaffer stated then the decentralization statements and shift of regional manager Gerry Yutkin in Omaha to Kathy Cance in Denver was not of cost benefit to ATC. The management fees include both services performed by ATC for Hawkeye and management decisions which take time. Some of this time may be saved now that Blough has more decision making control on the local level, while the services performed by ATC (such as accounting) will remain the same. Sigrin asked Shaffer if he had any first hand knowledge of advertising experiments in other communities this size that are showing a profit. Shaffer said he was unsure of this but could certainly collect such information from the Cable TV Advertising Bureau and his other contacts in the industry. Blough said his information has led him to believe most such advertising endeavors have break even propositions. Cance pointed out the fast growth depicted in Hawkeye's financials is an unrealistic projection for the year ahead because, as Blough said, penetration rates are leveling and there will be additional capital expenditure costs. Madsen inquired if the management fee is a contract and set amount between ATC and Hawkeye. Cance said ATC has an agreement with the shareholders /2w / 1 .. MICROFILMED BY l JORM MICR LAB CEDAR RAPIDS • DEC MOINES 1 1 { 1-1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 9 that ATC will provide these management services for 5% of the annual gross revenues or $2,000 per month whichever is greater. Madsen inquired about the differences between the audited statements and the rate financial information supplied. Cance said the audited statements reflect contract figures and the rate financials show actual costs of doing business. She added the interest cost reflected in the rate financials have been "adjusted down because in fact we have incurred less actual interest expense than we are allowed by contract to charge and put in the audited financials so that is favorable for you. For the management fees, except for the first year, the other two years shown, we have actually incurred higher management fees than we are allowed to charge by contract as far as the corporation is concerned." Overall, Cance said, the resulting effect is favorable to Iowa City. Madsen said the BTC could recommend any increase up to $2 or no increase. Madsen asked when Hawkey could come back and ask for another rate increase. Terry said the earliest Hawkeye could request an increase is 12 months from their last increase request (which would be June 7, 1984). Sigrin asked Bieri if she would still agree with the opinion she expressed in her report, that Hawkeye's current rates are adequate. Bieri said because of her approach to interpreting Hawkeye's financial statements (which is an emphasis on cash flow and trends) she believes there is not enough history here to support an increase, especially a $2 increase in rates. She said she was unsure when and how much revenues would level off at. Even if they do level off, the interest expense line item, which is such a large item, should decrease and the principal should start to be paid off. Cance said the City is seeing giant steps in the first few years, but that this is beginning to and will level off. The company feels, as a result, it is reasonable to'cdme in at this time and ask for a $2 increase for continued growth. Blough said the cable industry looks at patterns and growth in a different way than a city would. Bieri said she just didn't see there is a pattern in these financials that says the company is not going to make their financial goals. Cance said yes, but as the interest goes down the depreciation schedule will go up. Bieri said no that is not true with the straight line depreciation method used here. Cance agreed. Terry said he had trouble with Iowa City, Coralville and University Heights figures all put together in the financials received, and in the fact that an increase in other communities would be automatic if one is granted in Iowa City. Cance said that is the only logical way to do business and keep records in such a setting as this one. Blough added that Coralville and University Heights decided to put the stipulations in their ordinances that said their increases would follow Iowa City's, so it was their choice. 1 ---- -- �_. ..._ _14ICROFILI1E6 BY t DORM MICR#LAB 11 .CEDAR RKHOS • DES MOIRES l t 3 1 BROADBAND TELECOMMUNICATIONS COMMISSION JULY 20, 1983 PAGE 10 Terry said he has no problem with the company receiving a 13 to 17% average return on investment, but he does have a problem seeing the company reach a double digit return on investment after three or four years of operation. Terry said he is afraid of the company reaching 20 to 22% at the ten year period. Cance said that if they did reach such a ROI it would be a reflection of good business and good management and that is what the City should want to see. Terry said he did not wish to see the company making 22% ROI. Ehninger said she was working here for the citizens of Iowa City.and wished to see the rates remain as low as possible. Madsen asked for more of a breakdown in the Operating and Origination and Administration and Selling line items in Hawkeye's financials. Cance said the operating and origination lines woudl include all technical help, vehicles, workshops for teaching video, equipment, etc. Selling would include all marketing and advertising costs. Administration refers to management and customer service representatives. Terry and Bieri asked for a debt reduction schedule for the current debt up to the current $4.4 million spent on the system in Iowa City. Cance said she would do her best to obtain that information before the next Tuesday, July 26, meeting. ADJOURN: Moved by Madsen, seconded by Ehninger, to adjourn. Adjournment at 7:15 p.m. Respectfully submitted, William Drew Shaffer Broadband Telecommunications Specialist __,MICROFILMED •BY. •�... JORM MICR+LAB •CEDAR RAPIDS < DES MOINES I -1! 1 /7 9P i r Subject to approval by BTC MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26,1 983 5:00 P.M. CIVIC CENTER CONFERENCE ROOM MEMBERS PRESENT: Ehninger, Madsen, Sigrin, Terry MEMBERS ABSENT: Johnson MEMBERS EXCUSED: Johnson OTHERS PRESENT: Blough of Hawkeye CableVision; Mavis Dooley, accountant from ATC; John Campbell of the Press - Citizen STAFF PRESENT: Shaffer, Bieri RECOMMENDATIONS TO CITY COUNCIL: None. MATTERS PENDING COUNCIL -COMMISSION DISPOSITION: Hawkeye's rate increase request. MEETING CALLED TO ORDER: Meeting called to order at. 5: 03 p.m. SUMMARY OF DISCUSSION AND FORMAL ACTION TAKEN: The BTC annual report was accepted, Document was distributed that contains the timeframes by which Hawkeye intends to have wired many of the new housing areas in Iowa City. Discussion with Hawkeye's rate increase request continued, with Shaffer reporting back to the BTC on several issues raised. Shaffer said the University Heights rates are automatically adjusted to Iowa City's but there is still some question as to whether Iowa City's rates will effect Coralville's basic service rates. In response to Sigrin's regarding any precedence being set involving successful company advertising programs, Shaffer said that some initial research indicates there are precedents in this area. Successful cable advertising programs generating additional revenue for the cable companies in Chapel Hill, North Carolina, and Doylestown, Pennsylvania, are two examples of such success in systems and communities of similar size to Iowa City. Shaffer queried the Cable Television Information Center (CTIC) about average Return On Investments (ROI) being given cable companies in the United States. CTIC responded that 13 to 17 percent is about average. Shaffer was asked to research any data pertaining to average service rates across the nation. Shaffer cited a study done by 17 9I ....MICROFILMED BY. ... �1 l JORM MICR+LAB S -CEDAR 116I0S • DES MOINES MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 2 CTIC in 1981 showing an average of $9.08 per month for basic service with an average of 62 activated channels. Dooley of ATC presented information requested by the BTC which included data projection charts for the 15 year franchise. This chart estimated an 11 percent ROI average over 15 years if the $2 rate increase was granted (with additional rate increase requests of $1 projected for approximately every three years after 1983). Hawkeye has used as a justification for their rate increase request the goals stated by ATC in their original proposal of attaining a 13 to 17 percent average ROI over the first ten years of the franchise. Hawkeye contends without the basic service rate increase that this average will not be attainable. The BTC had requested an amortization schedule and a debt retirement schedule from Hawkeye or ATC. Dooley said neither schedule exists because ATC does not expect the principle on the payable due them from Hawkeey to be reduced over the length of the franchise and this payable varies from month to month. Hawkeye said they had to build in Iowa City 160 miles of plant rather than the initially proposed 120 miles and that construction and other costs, including inflation were much higher than anticipated. Madsen pointed out the company's original proposal which indicated that they should be doing very well at this time given the projected penetration rates and the current penetration rates of Hawkeye. She pointed out the basic service rate was projected to be $7.95 in years one through four; $8.25 in years four to six; and $8.95 in years seven through ten. Bieri's memo to the BTC was discussed. Bieri said her concern was that it seems the interest payments to ATC will remain high throughout the life of the franchise; that the interest payments will continue to climb; that the increases in ROI for 1981 and 1982 have been healthy; the cash flow for Hawkeye looks all right; and the management fees to ATC are quite large. Bieri said she does not feel comfortable using the rate of return analysis because of the lack of history and trends with the cable company here in Iowa City. She added the cost of doing business locally has gone up, and that this is another way of approaching any rate increase request. Blough said he thought he would lose very few subscribers, possibly 50 or 60, if the $2 rate increase were granted. i Terry suggested using a standard of living increase cost approach to the rate increase request, so that the BTC .would concentrate on Hawkeye's local operational, origination and administration costs. Terry moved the BTC recommend to Council a rate increase of 95 cents representing an 11.9% in increased operational, origination and administration costs to Hawkeye from 1981 to 1982. Terry and Ehninger voted aye; Madsen and Sigrin voted nay. Motion did not carry. Shaffer distributed several documents for BTC perusal, including the BTC Annual Report and some of the financial information from Hawkeye Cable - Vision's original proposal. 4 MICROFILMED BY l JORM MICR+LAB 1 f •CEDAR RPPIDS • DEE MOINES £ 1 L MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 3 Terry distributed a document from Slough. This document outlined all of the new areas in Iowa City and the timeframe within which Hawkeye is planning to provide cable service to them. Slough also stated to avoid any confusion in the future regarding when a new dwelling or new housing area will get cable, all such questions will be routed to him personally. PUBLIC DISCUSSION: None. ANNUAL REPORT OF THE BTC: Moved by Madsen, seconded by Ehninger, to accept the BTC annual report as written. Unanimously approved. CLARIFICATIONS AND/OR ADDITIONS TO THE REQUIRE D_ EXTENSION POLICY REGARDI Terry said the date of April 18, 1982, mentioned in the definition of new housing area of the required extension policy.as recommended by the BTC should have read April 18, 1979. Madsen moved that the date in the definition of new housing areas be changed to April 18, 1979. Seconded by Ehninger. Unanimously approved. Madsen inquired if this recommended policy would go to Council with the other BTC recommended amendments to the ordinance. Shfafer said that there were six such recommended amendments and that all of these would go to Council at the same time. These recommended policies and amendments will not•be in effect until or if the Council approves of them. BY THE BTC OF HAWKEYE CABLEVISION' Terry said the BTC has been discussing the rate increase as per their mandate in Section 14-76 of the ordinance. The last meeting the BTC discussed Hawkeye's justification for the rate increase in detail and ATC regional manager Kathy Cance attended this meeting to make a presentation and to help answer any questions. The BTC had more questions and needed more time to digest the material, so the discussion is proceeding today. Mavis Dooley, ATC accountant, is present to answer questions and present other information the BTC has asked for. Shaffer presented some information the BTC requested him to research. Pertaining to the question of whether or not Coralville and University Heights basic service rates will automatically follow Iowa City's, Shaffer said Brown has been on vacation so a legal opinion has not been available. But, Shaffer said, after looking at the two communities' franchise agreements, it appears University Heights' rates do follow Iowa City, while it is still questionable if Coralville does. He added that he felt this does not have to be a factor in the making of the BTC's recommendation, because a legal opinion on this matter will be given to Council if they desire one and 17W . ;r MILkOFILMED BY l JORM MICR#LAB -CEDAR RP PIDS • DES MOINES I i L 1 r MINUTES BROADBAND 'TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 4 each of the communities is responsible for its own franchises. Shaffer said he had some information regarding questions that were asked of him by the BTC about advertising potential, in cable systems. Most of the systems pointed out to him in his calls were larger systems, as Viacom in San Francisco and Cox in Omaha. However, two of the systems were of comparable size to Iowa City. These were Chapel Hill in North Carolina and Doylestown in Pennsylvania. Both of these systems have been quite successful in their cable advertising revenue generating programs. Shaffer said at least these two systems of comparable size had very successful advertising programs, and were making heavy use on satellite ad availability time. Shaffer said he had checked with CTIC about whether 13 to 17 percent is realistic in terms of a cable company's ROI. CTIC responded that 13 to 17 percent is about average, with 13 percent being a little on the low end. This is information the BTC may use, if they desire to try to base their decision on a return on investment percentage basis. Shaffer was also asked about an average basic service rate or the average basic service rate being charged across the country. Shaffer said he located a survey done in 1971 by CTIC and Brian Owens. This survey encompassed 31 cities. The average basic service rates for those 31 cities, for an average of 62 channels offered was $9.08. When the too low and too high rates were not included in this average (the too lows were approximately $5 for basic service while the two highs were $25 for basic service, these costs were significantly different than those in the rest of the cities) the average basic service rate was $8.74 per month. Madsen said she knew of an FCC study done in 1981 which indicated the average basic service rate was approximately $7.95. Terry asked Dooley if she had any answers to the questions asked of Kathy Cance from ATC, such as an amortization schedule, a debt retirement schedule and a projection of what Hawkeye would get as a ROI over the 15 year franchise if no rate increase is granted. Dooley said Cance had asked her for an amortization schedule and Dooley said she was not sure what was meant by this which is one of the reasons she came to the BTC today. Dooley met earlier in the day with Bieri and Shaffer to discuss the requested information. Dooley said the interest paid by Hawkeye is calculated on the payable due to ATC. This payable is a loan from ATC to Hawkeye CableVision. The interest that is calculated and paid by Hawkeye is an interest payment only, and does not include any of the principal. So, in that sense there is no amortization schedule to reduce the principal because the principal changes all the time. For instance, every time Hawkeye adds something to the plant or buys a piece of equipment, the payable increases and the interest increases. The interest is figured monthly at 1.5 percent over prime divided by 12 to come up with the monthly interest due. ATC does not expect the payable to be reduced over the life of the franchise. Terry interjected then that ATC is not showing any debt retirement schedule or amortization schedule. Dooley agreed. Madsen inquired about the loan and loan repayment schedule in Hawkeye CableVision's original proposal, which projected an eight year retirement /,7V 5 t . MICROFILMED BY , l JORM MICR+LAB ` { CEDAR RPP!05 • DE-- MOINES I l l 1 MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 5 or pay off period, and why that varies so much from the current financial figures provided by Hawkeye and ATC. Dooley said ATC disregards or does not take into account the interest expense on their ROI statements. For instance, when taking a look at 1982 actual costs and revenues, Hawkeye CableVision's actual expenses were $118,000 more than the revenue it generated. But, in the ROI statements provided, the interest payment is figured back in and therefore Hawkeye is showing a profit of 5.3 percent or a net revenue of $238,000. Madsen said she didn't see any way they could continue making payments of $600,000 a year for the length of the franchise and consider that this was a viable operation. Dooley said the interest payments or debt will be reduced some every year. Bieri said that the debt would only be reduced if the amount of net income is more than the amount of capital expenditures on plant,. equipment, etc. Only then would the debt decrease. Bieri said she believed the debt would remain high as Madsen suggested because of this fact. The more capital expenditures go up for Hawkeye, the more interest payments will increase. Terry asked Bieri if a fair approach to this rate increase request would be to base the BTC's recommendations on any increases in expenses related to the local company, such as operational, origination and administrative processes. Bieri said she thought that would be a fair approach and up to the BTC to decide if that is what they want to do. Madsen suggested taking a closer look at the $1,566,000 it listed in the operational, orignation and administrative cost categories. She felt those expenses were high for a system of this size. Madsen also said that she finds it unfathomable that a company the size of ATC could be so far off from their original proposal. The proposal stated that inflation was taken into account in their projection; that a 48 to 53 percent penetration rate was projected for basic service and that Iowa City's basic service penetration rate is about 52 percent now; the one pay channel of HBO was projected to be at 43 percent penetration and Iowa City's two pay channels have a'60% and 40% penetration rate; and the basic service rates in the original proposal were projected to be $7.95 from years one through four, $8.25 in years four through six, and $8.95 in years seven through ten. Yet, ATC and Hawkeye now say at year four they need a $2 increase. Dooley said that proposal is one that was put together in 1978, and that there has been unprecedented inflation since then; that the original proposal anticipated 12.0 miles of plant being built when in fact 160 miles of plant had to be built (or 194 miles of plant for all three communities University Heights and Coralville) and that those construction costs were much higher than anticipated. Madsen said ATC is essentially saying because of their miscalculations on what it would take to build the system the BTC is being asked to cover this and at the rate of return ATC or Hawkeye originally set as their goal. Dooley agreed that there were substantially cost differences than what was originally projected. Ehninger asked how much of the pay cost increase stays in Iowa City. Dooley said this is a private contractual agreement with HBO and this information cannot be given out in a public meeting. She did say that Hawkeye gets the best possible cost for HBO and Cinemax even though these N_MICROFILMED BY ... JORM MICR+LAB ` CEDAR RAPIDS • DES MOINES f MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 6 are separate subsidiaries of Time Inc. She said that the information requested by the BTC could be made available under some kind of confidential agreement to avoid trouble with their competitors. Terry said the BTC is a public body and all information given to them is public, so that this kind of an arrangement could not be accomplished.. It was made clear the BTC has no control over the pay channel costs, yet those revenues are figured in the overall financial picture of Hawkeye. Madsen asked about the large net revenue made from the pay channels and what happens to this money. Blough said that this money is used to offset Hawkeye's other costs. Terry pointed out some figures from Bieri's memo of July 11, 1983. He said there has been an increase in operating, origination and administration costs of about 11.9 percent. Terry asked the other Commissioners how they felt about approaching the analysis of the rate request in this way. Sigrin said he wanted to ask Bieri to review the status of this request as she sees it from a financial perspective. He said he thinks there seems to be two issues involved here. One issue being that ATC and Hawkeye greatly underestimated their expenses in billing the system and the other deals with the financial* information presented and the varying interpretation of that information. Bieri said she based her opinions in' her memo on conventional accounting methods. Therefore, she anticipated a reduction in interest payments at some point, which ATC says will not necessarily be the case. Her concern is that there has to. be a substantial growth in revenue or rate increases in order to see any reduction in the payable to ATC. The debt or interest payments in her estimation will continue to climb. Also she pointed out that 1979 to 1980 were heavy construction periods where costs would normally be high and revenue could not be expected to be high, so the -3% ROI makes the overall financial picture look worse than it really is. Bieri also pointed out the high management fees paid to ATC. Bieri looks atitinterms of history and cash flow. Cash flow does not look bad for Hawkeye. However, she said the cost of doing business has gone up and that is one way to approach this rate request. She said she is still uncomfortable with the rate of return analysis because there are a lot of hills and valleys and no trends yet can be established with the cable company in Iowa City. Therefore, approaching this question from the standpoint of increased operating costs to the local companies is one viable alternative. Dooley presented a 15 year projection including ROI figures in response to a request from Shaffer. This projection shows a one dollar increase in HBO and every two years after July 1, 1983; a fifty cent increase in Cinemax as of July 1 and every two years after July 1, 1983; an assumption of a two dollar basic service rate increase in October of 1983 and a raise in basic service rates of approximately one dollar every three years thereafter. This projection chart went to year 1994 and indicates an average of 11 percent ROI. Sigrin asked if there were any possible ti . MICROFILMED BY. _. t JORM MICR4�1-AB _ ; • CEDAR RAP! OEC MOINES 1 MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 7 revenue associated with advertising possibilities on this chart. Dooley responded no. Blough said he thought the risk of the investment to start such an advertising program in Iowa City would be great. Sigrin asked Shaffer if there were precedents for such an advertising program and Shaffer said that there were. Ehninger asked Blough how many subscribers he thought he would lose if they were to get a $2 increase. Blough said he thought very few, maybe 50 or 60 subscribers, but that he thought those people would come back and subscribe again at a later date. Terry said he has leaned towards the approach Bieri suggested, which takes into account the increases in local operation, origination and administration costs. Terry moved that the BTC recommend to Council a rate increase be granted to Hawkeye of 95 cents, or representing an 11.9 percent increase in Hawkeye's operation, origination and administration costs for 1981 to 1982. Seconded by Ehninger. Madsen asked how those figures were'arrived at. Bieri pointed out the figures in her memo and how the 11.9 percent inflationary increases from 1981 to 1982 in those cost categories were determined. Bieri did not include any consideration of the 1979 to 1980 period. Terry said that the BTC recommendation to Council on this• matter should include a justification as to how the recommendation was reached and that this method seems fair and best at this point. Sigrin asked Bieri if that was her recommendation to the BTC. Bieri said the decision was up to the BTC. Madsen inquired if any other costs or considerations would be taken into account in this recommen- dation. Blough said Hawkeye and ATC tried to use a rate return analysis for their rate increase request justification. Dooley said a shortcoming of, approaching the rate increase as Terry has suggested is. that for example if ATC had built a slipshod kind of system for much less money than it has, it could be showing a high ROI, but the system would be having a lot of problems. ATC chooses not to build systems that way. Terry said he would rather take this approach, maybe just for this year, then next year or whenever Hawkeye comes in again for another rate increase request there will be more of a history to base the rate of return analysis on. Motion called to question: voting aye on the motion made by Terry were Terry and Ehninger. Voting nay were Madsen and Sigrin. Motion did not carry. Sigrin said he would like to have more time to digest all of the information given the BTC. Also he said there seems to be a variety of approaches to this issue and that he would like to study it further. Madsen agreed. The next BTC meeting is set for 4:00 p.m. Thursday, July 28, 1983. ti ..MICROFILIIED BY _ _.. _...�. JORM MICR+LAB •CEDAR RA FIDS - DE: MOINES 1 l 17/'f MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING - JULY 26, 1983 5:00 P.M. PAGE 8 ADJOURN: Moved by Madsen, seconded by Ehninger, to adjourn. Unanimously approved. Adjournment at 6:47 p.m. Respectfully submitted, , j William Drew Shaffer I Broadband Telecommunications Specialist I .n_._.j ..a ,111ERDFILMED.aY.,_ l JORM M I C R + L AO - .CEDAR RXIDS • DES MOINES I I j i I .n_._.j ..a ,111ERDFILMED.aY.,_ l JORM M I C R + L AO - .CEDAR RXIDS • DES MOINES I t Subject to approval by BTC MINUTES BROADBAND TELECOMMUNICATIONS COMMISSION SPECIAL MEETING JULY 28, 1983 4:00 P.M. CIVIC CENTER CONFERENCE ROOM MEMBERS PRESENT: Terry, Madsen, Sigrin, Ehninger MEMBERS ABSENT: Johnson MEMBERS EXCUSED: Johnson 1 i OTHERS PRESENT: Blough of Hawkeye Cablevision; John Campbell of the Press-Citizen;.Meryn of the Daily Iowan STAFF PRESENT: Shaffer, Bieri RECOMMENDATIONS TO COUNCIL: Terry moved and Ehninger seconded, that the BTC recommend the City Council grant Hawkeye Cablevision a 954 increase in basic service rates, or an 11.9% increase, based on an average of the increase in operational, origination and administration costs incurred by Hawkeye from 1981 to 1982. j MATTERS PENDING COUNCIL -COMMISSION DISPOSITION: fHawkeye's rate increase request for basic service. 1 MEETING CALLED TO ORDER: Meeting called to order at 4:00 p.m, j SUMMARY•OF DISCUSSION AND FORMAL ACTION TAKEN: Terry read a statement prepared by Shaffer and himself, which attempted to synopsize the discussion to date on the rate increase request and to point out alternate directions the BTC could take. The BTC agreed there was not enough of a basis or history to grant Hawkeye an increase based on a projected return on investment over a ten or fifteen year period of the franchise. The BTC did recognize several areas of increase cost to Hawkeye, including: a) increased operational, origination and administration expenses; b) building approximately 68 more plant miles It is than anticipated; and c) higher construction costs than were anticipated. recommendation on category a' above that the Commission based their suggested the standard Sof living increasC increas ? in e approach, sic cbut also suggese rates. The ted future rate increase requests should not necessarily be determined by this method. Each BTC member expressed concerns about a regarding these proceedings and abovariety of factors ut the company in general, including: the originally projected basic rate structure, which was to reach $8.95 by year ten of the franchise; the apparent change in interest payments and reduction schedule from Hawkeye's originally -projected debt completion by • I Mf .._.�......._..,.111CROFILMED.aY...._._.:..�. . �I JORM MICR¢LAB t CEDAR RAPIDS • DES MOINES Broadband Telecommunications Commission July 28, 1983 Page 2 .year eight to the current plan where substantial interest payments are to continue throughout the life of the franchise; the lack of time in determining a recommendation for Council on this matter; the inclusion of other matters in the consideration of a rate increase request, such as the company's support of access, management efficiency, and overall franchise compliance; the continued need for a foreigh language channel and a better weather channel; the difficulty in sorting the financial information regandaTimegInc.; est the needefor amthirdmpartyeconsultaneent fes t inaa processchnnel costssuchATC as this. The BTC also noted that there have been new programming services offered in Iowa City such as CNN, SNC and MTV; that the cooperation on the local level regarding the resolution of the extension of cable to new areas has been good and that the company's support of access related activities has been far above average. The BTC asked Hawkeye to file with the City Clerk their extension policy; to continue to upgrade the system and access equipment with the state of the art; and to ensure no further disparate or varying information comes from Hawkeye to citizens. There was also discussion of how City cable related funds should be spent and how more funds for this area may be obtained. ANNOUNCEMENTS: Terry asked for a holiday in August so that no regular BTC meeting would be held. The BTC agreed to this. He did request the subcommittees to meet in August. PUBLIC DISCUSSION: None. Terry read a statement of status prepared by Shaffer and himself. The statement read as follows: As an advisory Commission to City Council, the BTC is charged with the responsibility of making a recommendation to the Council on the matter of Hawkeye Cablevision's request for an increase in basic service $2. The BTC has 60 days in which to make this recommen- dation from the time of the request filing, which was June 7, 1983. As per ordinance 78-2917, Section 1476, Hawkeye has filed the rate increase request and justified their request by stating their goal, as quoted from their original proposal to Iowa City, of reaching an average of 13-17% return on investment (ROI) over the first ten years of the franchise will not be reached if an increase of $2 is not granted. Hawkeye and ATC project an 11% average ROI over the 15 year franchise without an increase in basic rates. From the financial information supplied the City, and that requested by the BTC, the BTC finds that the evidence presented by Hawkeye to justify their rate increase request to be inconclusive. This is primarily due to the facts that Hawkeye has: 1) only been in operation for three years and 100% operational for only 15 months, therefore it has been difficult for the BTC to see how a 15 year projection could be made based on this limited /79P 14ICROFILMEO BY. _......� JORM MICR+LAB t CEDAR RAPIDS • OEC Id01NES A I Broadband Telecommunications Commission July 28, 1983 Page 3 track record; 2) Hawkeye has continued to grow in terms of subscribers and rate of return every year at a rate of three to four percent although this rate of growth has slowed down somewhat. It is still unclear and difficult to attempt to project a leveling off or plan to effect subscriber levels and thus gross income for the company. Such a plateau effect normally does occur in cable systems, and Hawkeye has argued that effect is starting tooccur now; 3) it became clear that Hawkeye's financial status and growth as a company is interwoven with ATC and -Time, Inc's finances, through the interest payments, management fees and pay channel costs returned to ATC and to Time, I6c. The BTC has been unable to determine exactly to what extent this relationship does or should affect Hawkeye's ROI. Therefore the BTC has found there is not enough of a basis or historical information upon which to decide a projected rate of return calculation using traditional ROI procedures. The BTC does not find an adequate basis for a recommendation of an increase in basic rates based upon this method. However, it is recognized that: A) Hawkeye has had to build considerably more cable plant than originally anticipated (approximately 60 miles more plant); B) that construction costs have been higher than anticipated; C) and that there have been increased costs on the local level categorized as operational, origination and administration costs. One alternative the BTC has is to recommend a standard of living increase based upon an average of the local increases in costs in C. above from 1982 to 1983. This increase would amount to 954 per month more in the basic service rate, or an 11.9% increase. This is not to say more traditional ROI procedures should not be used in r the future, or that this method of computing an increase should be used henceforth. This next* year should give the, City an indication of how close Hawkeye's projections are, so that any future rate increase' considerations will have more history and a company projection on which to more money than the average 13 be based. It was noted that if at any point Hawkeye appears to be making -17% ROI, the Commission can recommend and the City Council can reduce basic service rates accordingly. There were several concerns expressed by the BTC during their considera- tions. In the financial area, ATC and Hawkeye's original proposal projected a basic service rate of $8.95 through year ten of the franchise. The $2 requested increase at this time would mean a $9.95 rate at year four of the franchise. Also that the interest payments from Hawkeye to ATC and Time, Inc., will continue to be substantial throughout the life of the franchise, when the original proposal projected a repayment of loans at year eight of the franchise. There was also mention by the BTC of the potential growth in revenue in the other areas Hawkeye may become involved in, such as advertising, data services, marketing or security services and increases in the pay chagnel costs and/or additional pay channels. While considering the rate increase request, the City 'does not have to confine itself to financial analyses only. The City may include in its review, but is not limited to, overall franchise compliance, management efficiency, services provided, and upgrading of the system. In that vein, some Commissioners expressed concern about the specific amount and uses of �. _. _- NICROEILMED. BY. ` JORM MICR41 LAB 1 CEDAR RAPIDS • DEC MOINES f i L_. _.. Broadband Telecommunications Commission July 28, 1983 Page 4 the management fees to ATC, and management cooperation of ATC in conjunction with the BTC in the form of a lack of responsiveness on the part of ATC in providing letters back to the BTC involving the extension policy, financial information and the provision of requested programming services such as a foreign language channel and a better weather channel. However, it was noted that there have been new programming services offered on the Iowa City system such as CNN, SNC and MTV; that cooperation on the 'local level regarding the resolution of the extension to new areas has been good and that company support of access related activities has been far above average. There has been no weighting system devised to evaluate such points in regard to a rate increase request, yet such points can, and the BTC believe should, figure in such a determination. Finally, because of the magnitude of the task of rate regulation, the bulk of material to be processed, a need to determine precisely the right questions to ask in such a process and the relatively short time frame within which the BTC must come to a recommendation (60 days), it is suggested that for this process it would have been extremely helpful to have the assistance of a third party consultant to make such determi- nations as fair and efficient as possible. Terry said he hoped that this statement helps to bring some of the points raised in previous meetings to the foreground for further discussion today. Madsen said she had written down several of the same points mentioned in the statment that was read. She added that she has felt frustrated in this process and has found things difficult to sort out because of the way ATC and Hawkeye has answered some of the financial questions. She questioned in particular the interest payments to ATC, management fees to ATC, the revenues kept over expenses by ATC and Hawkeye regarding the pay channels, and the ability to write off losses or cross subsidize one system with' another. Those ares, she said, are of legitimate concern and she felt it was too bad the BTC had to confine its recommendation based on operational, origination and administration expenses - but that this is what needs to be done at this time due to the deadline stipulation of the ordinance. Madsen said that in future rate increase request proceedings hopefully very specific breakdowns of the operational, origination and administration expenses would be available. Madsen stressed the need for ATC to provide timely information, including a prompt and quick filing of the extension policy with the City Clerk. She saw the need to continue to monitor the availability of access equipment, although she was pleased with the maintenance and repair contract for the access equipment that Hawkeye has obtained and the fact that Hawkeye has purchased several thousands of dollars in additional equipment for access use. The BTC had to work hard to get that contract in place and should continue to monitor it. Madsen was pleased CNN and SNC are now in Iowa City. She mentioned the continued need for a foreign language channel and another better weather channel, and that the data channels should still be compiled as discussed in previous BTC meetings. She felt sure Hawkeye would: 1) keep the time and weather channel accurate and 2) that differing messages regarding the status of cable extension to homes would not continue to occur to come out of Hawkeye. Finally, she wished to see MICROFILMED BY ... _! 1 JORM MICR+LAE3 1 �1 CEDAR RAMS • OEC 1401NES f ! i . Broadband Telecommunications Commission July 28, 1983 Page 5 Hawkeye continue to upgrade the equipment and systems so that it is kept to a standard of the state of the art. There was some question as to when Hawkeye Cablevision may next approach the City for another rate increase request. Some Commissioners believed Hawkeye cablevision may approach the City as early as next January 1, 1984, while others believed the company would have to wait a minimum of one year, making the earliest possible date June 7, 1984. Shaffer said that an .opinion on this would be requested from Brown in the legal department. Ehninger said the BTC has discussed Telefrance specifically as a foreign language channel in Iowa City. Blough said it appears TeleFrance may be going broke and may not be available soon. Blough said CNN may also be in financial difficulty. HBO is going strong though. Ehninger questioned whether MTV would be charging next year. Blough said that MTV would be charging up to 104 per subscriber next year from the cable operator. Ehninger said she saw the cable company going to more and more pay channels. Blough expressed an advantage of having ATC as a cable company in that hardware and software items can be purchased less expensively due to their ability to buy in volume. Sigrin said the statement read earlier expressed much of what he was going to say. He added though, that he felt it would have been extremely helpful if the.BTC had more time to consider a rate increase request and I that he would also like to see a third party consultant involved in the process. Any recommendation reached today, he stated, would now have to be based on certain assumptions rather than having researched all the financial aspects that could have been studied, had there been time. �. Terry entered a motion recommending that City Council grant a 954 increase in basic service rates charged by Hawkeye Cablevision, representing an 11.9% increase, based on an increased Hawkeye and operational, origination and administration costs in 1981 to 1982. Seconded by Ehninger. Unanimously approved. Terry said if an increase were to be granted by Council that he would like to see those funds used to raise the BTS salary and further support access related activities. Madsen suggested another route would be to hire other help that would assist in some of the BTS responsibilities, cutting down his direct workload. Madsen pointed out the Triannual Review contained a plan whereby additional access equipment was identified as a need, and this should be addressed at some point so that the additional equipment can be obtained as necessary. Sigrin inquired if Shaffer was aware of other means of obtaining funds for cable/access use. Shaffer said although he had not studied the possibilities, grants may be obtainable for certain projects the City may want to undertake. In addition, the 3% franchise fee could be increased anywhere up to 5%. Ehninger suggested approaching the Committee on Community Needs for funds. �.. �., .. .... MICRDFILWEO BY .._.. I, JORM MICR+LAB S CEDAR RAPIDS • DES MOINES i i Broadband Telecommunications Commission July 28, 1983 Page 6 Blough thanked the BTC for their consideration and cooperation in this rate increase request process. ADJOURN: Moved by Ehninger, seconded by Madsen, to adjourn. Adjournment at 4:50 p.m. Respectfully submitted, William Drew Shaffer Broadband Telecommunications Commission Specialist 111URUr.1U1LU. tit_..: `JORM MICR(�LAB CEDAR RkP1D5 • US. MOINES' �; 06-) h I MINUTES SUb100t f0 qpp� IOWA CITY PLANNING & ZONING COMMISSION AUGUST 8, 1983 - 7:35 PM MEMBERS PRESENT: Baker, Perry, Blank, Scott, Jordan MEMBERS ABSENT: Seward, Jakobsen ACTION TAKEN: Baker moved and Jordan seconded a motion to set a public hearing for August 25, 1983, on the 1983 zoning ordinance and map. The staff was requested to notify all interested parties. The motion carried 5-0. Blank moved and Perry seconded a motion to adjourn; vote, 5-0. Meeting adjourned to informal session at 7:42 PM. Minutes submitted by Tom Scott. Approved by.: .��'- X C Horst Jordan, Secretary., Planning & ZoninFCommission ,.__.....__..EILMED.BY____:__� . t1ICR0 JORM MICR+LAES CEDAR RdPIDS DE: MOINES I i I I 1 I i ,I ; j I h I MINUTES SUb100t f0 qpp� IOWA CITY PLANNING & ZONING COMMISSION AUGUST 8, 1983 - 7:35 PM MEMBERS PRESENT: Baker, Perry, Blank, Scott, Jordan MEMBERS ABSENT: Seward, Jakobsen ACTION TAKEN: Baker moved and Jordan seconded a motion to set a public hearing for August 25, 1983, on the 1983 zoning ordinance and map. The staff was requested to notify all interested parties. The motion carried 5-0. Blank moved and Perry seconded a motion to adjourn; vote, 5-0. Meeting adjourned to informal session at 7:42 PM. Minutes submitted by Tom Scott. Approved by.: .��'- X C Horst Jordan, Secretary., Planning & ZoninFCommission ,.__.....__..EILMED.BY____:__� . t1ICR0 JORM MICR+LAES CEDAR RdPIDS DE: MOINES I i I I 1 I ■ MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION Subject to Approval AUGUST 25, 1983 7:30 P.M. CIVIC CENTER COUNCIL CHAMBERS MEMBERS PRESENT: Scott, Jordan, Perry, Seward, Jakobsen, Blank MEMBERS ABSENT: None STAFF PRESENT: Schmeiser, Boothroy SUMMARY OF DISCUSSION: Meeting called to order 7:30 p.m. Seward stated that the purpose of tonight's meeting was public discussion of the draft of the proposed zoning ordinance for the City of Iowa City. He further continued that the Commission presented the Zoning Ordinance in the format of public hearing in April of this year and has been meeting with various interested groups and people to review their concerns and make modifications in the ordinance. Seward stated that since there was a substantial amount. of modifications being proposed to the ordinance, that it was the Commission's desire to re -expose these modifications in the format of public hearing tonight. Seward then addressed the members of fraternities and sororities from the University of Iowa who were present to protest the proposed zoning ordinance as it affects them. He stated at this time the Commission could not resolve the issues before the ordinance goes to the City Council as pertains to the fraternities, sororities and University housing in general. Seward assured them that the issues were not being ignored and meetings with University officials were planned in the future. However, he welcomed their opinion at this time tonight. The floor was then opened to public discussion. 1. Kate Head, 906 East College, spoke in behalf of the members of the Fraternities and Sororities of the University of Iowa. She requested that the Commission re-evaluate their position on fraternities and sororities as being classified as rooming houses. She asked that the density of members be determined not by the number of square feet as suggested in the zoning ordinance but be determined by the University housing and fire code standards or the square feet of the structure itself. 2. Mary Skourup, 619 East Market, #3, Program Assistant for the University of -Iowa, stated that the sororities and fraternities should not be classified as rooming houses because they provide an educational environment for the students at the University of Iowa. She is required by the University to do educational environmental audits every other year on these chapters. The chapters are also required to turn in monthly reports stating their progress as far as adhering to University policies and regulations. Skourup added that she could see the University adding 2-4 new chapters within the next 10-20 years before the University planes out in enrollment. She continued with the fact that these chapters would not be adding to the MICROFILMED aY... _. JORM MICR+LA6 1 CEDAR RAPIDS • OE' MOINES 1 1 c p ff 4 �. . Planning & Zoning Commission August 25, 1983 Page 2 number of students already living in these structures as it would make living conditions physically uncomfortable. 3. Jim Schwab, 1027 Sheridan Avenue, spoke as a graduate student for the fraternities and sororities. He stated they (the chapters) are asking to stabilize their membership as it is without asking for any special consideration so they could expand without coming before this or some other body in the future. Schwab added that the chapters have shown themselves to be responsible and willing to communicate over this issue. He stated that he felt a compromise was possible to help the chapters get what they wanted. 4. Dick Brown, 1123 North Dodge, owner of Hilltop DX Carwash, expressed concern as to the change of zoning in his area from highway commercial to the Neighborhood Commercial zone. In order for his business to prosper, he needs to make changes, if the zoning ordinance passes as it stands, those changes will not be possible. He requested that the Commission leave the zoning in his area Highway Commercial so he can run his business the way he wishes. 5. Nora Roy, 727 Grant, Director of Community Coordinated Childcare, asked reconsideration of RS5 sections 1-6 and #3 of zoning ordinance. She asked that childcare be allowed in one RS5 zone in schools and residences when fewer than 16 children are provided care. Roy expressed particular reconsideration as far as school daycare in the RS5 zone due to the before and after school programs which are badly needed. She also requested the Commission consider childcare in residences with limited enrollment. She added that family daycare homes provide care for no more than six preschoolers. Another type of residence daycare is a group daycare home in which there are 11 children in residence with no more than six preschoolers. Roy continued these group homes must be licensed. She added that 75% of the childcare in Iowa City is family and group daycare - if they are not allowed in an RS5 zone these children will not have a place to go. Roy asked to reconsider to allow childcare to exist in religious institutions, schools, homes in the RS5 zone and to lower the limit from 16 to 12. Jakobsen asked Roy if she envisioned that these programs would be sponsored by the schools or sponsored privately. Roy answered that they would have to be sponsored by the schools, in particular the PTO. 6. Max Yocum, RFD #6, Iowa City, stated his main concern was the percentage of non -conformities and the amount the taxes would be raised. He stated the students need a place to live. He felt supply and demand should govern the amount of persons allowed to live in a residence. 7. Dick Parrott, 803 Market Street, stated his main concern with the new restrictions was the location of health care clinics/offices. Currently health clinics/offices can be located in an R3 or higher zone he continued. Under the new zoning ordinance these clinics/offices will be eliminated from these areas. Parrott stated that in order to relocate in higher zones it will eventually cost the patient more dollars to visit a clinic/office. He added that by having these clinics/offices in the present zones, access is easier for patients. Parrott asked again that the Commission reconsider allowing the practice of the health arts in the present zones. /7106 17 -.., MICROFILIIEO DY l JORM MICR+LAB i CEDAR WHOS • DE: MOINES )I : ' I i Planning & Zoning Commission August 25, 1983 Page 3 apartment Angela Ryan, 122 South Linn Street, representative for the er submitd in Aril of 13. association, asked the Commission to reread a lett of t wn.teEven though some of Her main concern was with the older developed p restrictions have been lowered, the cost to redevelop these areas will make it very difficult espaec the rto ent.olShe der addednin add tios who own neto redevelopmentse homes and dcosts, roomers to help pay taxes would increase as well as the assessments in these areas. Ryan read the 2 provision which was inserted in the df raft section 1-76. Her concern was how the the proptoert b 10-0 years ago. Ryan stated current owners could trace the use obuilding e4Jes will be a great again that to make these older homes come up burden on the owners. ordinance Nick Johnson, Box 1876, expressed concern with that part of the zoning placing that has to do with the location ofantennas. ereatellH ngtpers nsated a they p cannot receive yard, y is moving very fast an antenna in the front y would be a mistake. communications. Johnson went on to state that technology and to regulate, for example, the size of satellite dish, Jakobsen asked if Johnson was Baring as a member of officially representing the Broadband Telecommunications Commission. Johnson stated he was app the Commission on his own. ommending that the Commission limit the dish Seward asked Johnson if he was rec size. Johnson requested the Commission leave the subject alone. Seward closed the public hearing at 8:25. He stated that commentsthe theyhenext informal cuss Monday night meeting the Commission will opinions received.Seward informed tonight and any additional information, p everyone the next formal meeting will be September 1, 1983, at 7:30. Taken by: Approved ,.fir• ...... ._._...MICROFILMEO.aY.,.__._..� .. JORM MICR+LAB CEDAR RAMOS • DES MOINES + 1 /799 to pRg.�bARY Subject to APP10Val MINUTES PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 7:30 P.M. CIVIC CENTER COUNCIL CHAMBERS MEMBERS PRESENT: Blank, Jordan, Perry, Scott, Jakobsen, Baker MEMBERS ABSENT: Seward STAFF PRESENT: Franklin, Knight, Boyle, Behrman RECOMMENDATIONS TO CITY COUNCIL: 1. 5-8323. That the application submitted by McConnell Construction Company for approval of an amended preliminary and final PAD and LSRD Plan of Lots 94 and 95, Ty'n Cae Subdivision, Part 2, located at the end of Cambria Court be approved subject to the following: 1) vacation of the existing walkway easement; 2) waiver of the parking design standards for Lot 94; 3) waiver of the parking design standards for side yards in Lot 95; and 4) approval of legal papers. 2. The Planning & Zoning Commission recommends that the parking problems on Cambria Court be referred to staff for assistance, the concerns being: 1) not enough parking at Willow Creek Park during soccer games; 2) parking should be limited to one side of the street; 3) no parking should be allowed in the cul-de-sac; and 4) consideration should be given to the placement of a stop sign at the intersection of Cambria Court and Cae Drive. 3. That the request submitted by Haywood Bell of Amerex Corporation to open a dedicated street right-of-way located south of Haywood Drive for use as a city street be approved. 4. Z-8317. That the application submitted by Plaza Street Investors for the rezoning of property at 404-406 South Dubuque Street from R38 to CBS be approved. 5. The Planning & Zoning Commission recommends that the parking problems in the area between the public alley and Dubuque Street on the south side of Court Street be referred to the staff for examination. SUMMARY OF DISCUSSION: Scott called the meeting to order. There was no public discussion of any item not.included on the agenda. Moved by Jakobsen and seconded by Baker to approve the minutes of July 21, 1983, as circulated. The motion carried unanimously. _... �.� ...,..._.MICROFILMED -BY ._.._..._..'. .. l JORM MICR+LAB f CEDAR RAPIDS • OEC MOINES i i I I I ttt 1 f' I PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 2 The minutes of August 4, 1983, were amended as follows: Page 3, second paragraph: The motion carried 5-0-2; Baker stated that he was not comfortable voting at this time and Perry abstained on this and all further action by the Commission as it was his first meeting. Page 3, first paragraph, regarding the zero lot line ordinance: "Scott stated that he empathized with the complaint about the fire wall requirements, agreeing that it added cost. Scott suggested that the ordinance be adopted, stating that he would support amendments to it if problems were found after its adoption." Page 2, third paragraph: The minutes of June 9, 1983, were amended as follows: Page 2: Baker proposed... five feet for the first 24 feet of height and one additional foot if it exceeds 24 feet in height." Moved by Jakobsen and'seconded by Blank to approve the minutes of August 4, 1983, as amended. The motion carried unanimously. SUBDIVISION ITEMS: 1. 5-8323. Public discussion of an application submitted by McConnell Construction Company for approval of an amended preliminary and final PAD and LSRD Plan of Lots 94 and 95, Ty'n Cae Subdivision, Part 2, located at the end of Cambria Court; 45 -day limitation period: 9/2/.83. Knight referred to his memo dated August 26, 1983, stating that all discrepancies and deficiencies other than legal papers had been corrected. James Buck, 2353 Cae Drive, stated that he was satisfied with the new parking' configurations; however, Buck stated that he would have preferred to see more parking provided for the four-plexes. Judith Shorton, 1162 Cambria Court, expressed concern over the lack of parking provided for the two four-plexes. Jakobsen explained that it was difficult to impose restrictions on a new development which have not been imposed on an existing development. Shorton stated that the potential for parking problems in this area was very real, particularly as there was the possibility that the new units would be rental units rather than condominiums. Blank asked the developer if it would be feasible to place another parking lot in the area should parking problems arise. The developer indicated that this was a possibility, and further stated that it has not yet been decided whether these units would be condominiums or rental units. Blank pointed out that the developer would have an economic incentive to respond to the need for parking, particularly in light of the fact that there was no bus line nearby. ti ._.141CROFILMED.OY. _..._I. 1 JORM MICR+LAB r fCEDAR RATIOS - DES MOINES II PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 3 David Shorton, 1162 Cambria Court, expressed his intention to request that more parking be made available on the other side of Willow Creek Park. Shorton mentioned the difficulty in finding parking in the area, particularly during soccer games. John Roskam, 2341 Cae Drive, expressed concern over parking problems in the area, especially during soccer games. Roskam further stated that the present configuration of drives on the cul-de-sac consumed approximately 95% of the frontage as driveway, while residents in the single-family area were restricted to 33% of their frontage for driveway area. Roskam stated that the configuration of the four- plexes did not leave much room fora sidewalk or room for children to play. Roskam also stated that he did not see that there would be much opportunity to add further parking after construction. Roskam asked if all restrictive covenants in this area have been checked. Boyle replied that the City was not responsible for reviewing the restrictive covenants, that the covenants were between private parties and suggested that the neighbors check the records at the Courthouse. Baker expressed concern over the lack of window space on the building design proposed. Moved by Jakobsen and seconded by Jordan to approve item 5-8323 subject to the following conditions: 1) vacation of the walkway, 2) waiver of the parking design standards for Lot 94, 3) waiver of the parking design standards for side yards in Lot 95, and 4) approval of legal papers. Jakobsen stated that she would vote in favor of this motion and thanked the developer for his cooperation and the neighbors for their input. Perry stated that he would vote in favor of the motion and commented that a cul-de-sac configuration would bring two driveways of single-family residences close together as well and that he did not perceive this to be any more of a problem here than in any other area. Blank stated that it would be important to limit the parking around the cul-de-sac. Scott stated that the amended PAD was an improvement over the original plan and that the additional parking spaces were an improvement over the original amendment. Baker stated that although parking had been improved, he still had reservations about the lack of window space. The motion carried unanimously. Moved by Jakobsen and seconded by Blank, that the Commission recom- mend to the City Council that the parking problems in the area be referred to staff for assistance. Jakobsen stated the problems as follows: there is not enough parking in Willow Creek Park during soccer games, parking should be limited to one side of the street, no Parking should be allowed in the cul-de-sacs and consideration should be given to the stop sign at the intersection of Cambria Court and Cae Drive. She also requested that the mailbox situation be examined. The motion carried unanimously. /m 4 _.. MICROFILMED BY 7 - JORM MICR+LAB i i CEDAR Rh!os • DC' MOINES PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 4 Public discussion of a request submitted by Richard Ziock for the designation of South Riverside Court as an officially approved place. Franklin reviewed her memo dated September 1 as well as the memo dated September 1 from Ziock. Franklin discussed the differences between the two recommendations. Richard Ziock, 207 Myrtle Avenue, reviewed his counter proposal. Ziock stated that it would cost $25,000 in additional costs to comply with the staff's recommendation regarding the paving width and new paving. Ziock further stated that the provision of curbing would create problems for the commercial establishments, suggesting instead that a yellow stripe be drawn. Ziock disagreed with the necessity of integrating Lot C with Lots A and 8, stating that there were different owners involved. Boyle suggested that any recommendations be drafted in the form of an. agreement between the City and Ziock, similar to a "subdivider's agreement." Francis Hogan, 219 South Riverside Court, stated that curbing should be provided to prevent stormwater runoff. Hogan stated that new asphalt was also needed. Hogan stated that a safety hazard existed with the commercial establishments using 'South Riverside Court and stated that curbing was needed to delineate the parking area from the street. Hogan further stated that she would like to see an LSRO in the area to review traffic and sewer plans. Franklin changed her recommendation in Item 3, stating that the City would not be expected to provide services beyond those currently provided. Franklin stated that asphalt could be replaced at. the proper depth When Lots A and B were developed, as the surface will probably be broken up at that time. Baker questioned whether the area could be developed if a street was not designated an officially approved place. Franklin explained that development could take place if the lots without frontage were integrated with the developed lot with frontage on Myrtle Avenue. Blank commented that if the Commission did not approve this request, there would be no assurances that standards would be met nor would there be any control of how the street could be developed without the designation of an officially ,approved place. Perry asked who would be responsible for the maintenance of the street if the parcels were sold. Franklin stated that the owner of South Riverside Court would be responsible. Scott stated that he was not satisfied with either the staff or the developer's recommendation. Scott suggested that the City require that the street be "paved with 8� inches of asphalt upon demand of the City when the conditions warrant." Scott stated that curbing should be required and that a stop sign should be installed at the intersection of Highway 6 and 218 at South Riverside Court. Scott further stated that a yellow stripe be painted on the street to indicate two-way traffic. Scott expressed a preference for Ziock's I ! MICROFILMED, BY ._ JORM MICR+LAB I I CEDAR RAPIDS • OEC MOINES 1 PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 5 recommendation with his additional two suggestions. Scott stated that he did not feel that given the provision of access easements, the LSRD for Lots A and B needed to be integrated with Lot C. Moved by Jakobsen and seconded by Baker to approve the designation of South Riverside Court as an offially approved place contingent upon Ziock's recommendations now numbered 1 through 8. Boyle suggested that prior to any final decision legal staff have the opportunity to work out a legal document. Boyle stated that this decision would be a precedent setting matter and if conditioned, these conditions should be on record at the Courthouse. Scott took a non-binding poll of the motion. Perry emphasized the importance of tying the ownership of South Riverside Court to Lot A or B. Moved by Jakobsen and seconded by Perry to defer this item to the next regular meeting on September 15. The motion carried 5-1; Baker voted no, stating that he was willing to vote at the present time on this item. 3. Public discussion of a request submitted by Haywood Bell. of Amerex Corporation to open a dedicated street right-of-way located south of Haywood Drive for use as a city street. Knight stated that the staff recommended in favor of this item. There was no public discussion. Moved by Blank and seconded by Perry to recommend for approval the opening of a dedicated street right-of-way located south of Haywood Drive for use as a city street. The motion carried unanimously. 4. Public discussion of an amendment to Chapter 32, the Subdivision Code, of the Iowa City Code of Ordinances to require compliance with Chapter 32 upon a division of a separate tract into two or more parcels. Moved by Blank and seconded by Baker to defer this item to September 22, 1983. The motion carried unanimously. ZONING ITEMS: 1. Z-8317. Public discussion of an application submitted by Plaza Suite Investors for the rezoning of property at 404-406 South Dubuque Street from R38 to CBS; 45 -day ,limitation period: 9/2/83. Sister Jean Marie Brady, 11 South Seventh Avenue, Principal of Regina Elementary School, stated that she was neither for nor against this rezoning. Brady stated that she was concerned about the safety of the children in the area, particularly as the development would probably exacerbate the existing traffic problems in the area. Brady stated that parking problems now exist due to the parking allowed by the City. /799 _...MICROFILMED .BY. .__.....� t JORM MICR�!_A® +S CEDAR RAMOS . DEC MOIRES 1 � I PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 6 Tom Kriz, 831 Southlawn Drive, representing St. Patrick's Church, stated that the rezoning to CBS would be a problem because of the lack of parking requirements for commercial uses in that zone. Kriz suggested that rezoning to C82 or RM -80 would be more practical. Kriz stated that St. Patrick's Church provided the only off-street parking in the area and expressed concern'that that parking lot would be used illegally by the development's residents. John Hayek, 110 East Washington Street, attorney for Plaza Suite Investors, stated that there were two separate issues: 1) concern about parking and 2) concern about traffic. Hayek stated that the traffic problem already exists and suggested that perhaps a fence or barrier to inhibit the flow of traffic through the alley be considered. Hayek stated that the development would provide an underground parking facility and would not significantly affect traffic movement in the area. Regarding the parking problem, Hayek stated that there would be no substantial impact made by the develop- ment as public parking existed within one block of the site. Hayek suggested that the present zoning would have a more adverse effect on parking than a rezoning to the CBS zone. Hayek emphasized that the rezoning was consistent with the comprehensive plan and expressed agreement with the staff report. Moved by Baker and seconded by Jordan to approve the rezoning of item Z-8317. Baker stated that while he was concerned about the potential parking Problems with the rezoning, he was more concerned about the potential Problems of parking with the'present zoning. Baker stated that CBS was a better zone for this area. The motion carried 5-0-1; Blank abstained. Moved by Jakobsen and seconded by Baker to recommend that the City Council request staff assistance to examine the parking problems between the public alley and Dubuque Street on the south side of Court Street. The motion carried unanimously. OTHER BUSINESS: 1. Public discussion of a request submitted by Dr. William Dull for a proposed amendment to the, zoning ordinance to permit medical clinics in the RNC -20 zone. Moved by Jakobsen and seconded by Jordan to defer this item to the informal meeting of September 8, 1983. The motion carried unanimously. 2. Planning & Zoning Commission Information: Baker questioned the fee change for applications to the Board of Adjustment. Boyle explained that these were adopted by resolution and did not require any Planning & Zoning Commission input. Scott /t799 �.•. ....141CROFILIIED.BY JORM MICR#LAB I .I -CEDAR RAPIDS • DES MOINES 1 ■ PLANNING & ZONING COMMISSION SEPTEMBER 1, 1983 PAGE 7 commented that he had not received his City Council materials in time to attend the meeting. Franklin set the next informal meeting to deal with the 1983 Zoning Ordinance for September 8, 1983. The meeting adjourned at 9:37 p.m. Minutes submitted by Sara Behrman, Minute -Taker. Approved by: Horst Jordan, Secretary i I _.....,.._._....MICROFILMEO.BY_...._:___i.. JORM MICR+LA9 •CEDAR RAPIDS •DES MOINES i I j i 1. 1 . ~t i 1 ' 1 _.....,.._._....MICROFILMEO.BY_...._:___i.. JORM MICR+LA9 •CEDAR RAPIDS •DES MOINES i I j i 1. 1 . ~t MINUTES IOWA CITY BOARD OF ADJUSTMENT JULY 13, 1983 4:30 P.M. CIVIC CENTER COUNCIL CHAMBERS MEMBERS PRESENT: Fisher, Barker, VanderVelde MEMBERS ABSENT: Slager, Randall STAFF PRESENT: Franklin, Knight, Siders, Boyle, Behrman FINAL ACTION TAKEN: I. V-8330. The application submitted by Darrell Roberts for a variance to the sign regulations for the American Legion Post 17 at 3016 American Legion Road was granted. SUMMARY OF DISCUSSION: Barker called the meeting to order. Behrman called the roll. VARIANCE ITEMS: 1. V-8313. Public hearing on a request submitted by Andrew Isserman and Anthony Frey appealing the issuance of a building permit to Home Town Dairies at 1109 North Dodge Street. Franklin stated that the applicants were agreeable to the Board's deferring this item. Barker stated that the reason for deferral was the fact that one of the applicants was on vacation, that the Board members present wished to have -a full 'Board hearing on this matter, and that more time was required to decide the conflict of interest question raised at the previous hearing. Moved by. VanderVelde and seconded by Fisher to grant the applicants' request for a deferral of item V-8317 until July 27, 1983. The motion carried unanimously. V-8318. Public hearing on a request submitted by Harry Hinckley appealing an nterpretation regarding nonconforming lots and rooming house density requirements for certain property located at 520 Ernest Street. There was no one present to speak on this item. Boyle stated that he had spoken to the applicant and his attorney that afternoon and they requested one further deferral; the applicant is planning to file a new application for a building permit. Barker stated that he had no objection to deferring until July 27, but that the Board would not be disposed to defer after that time. This item was deferred until July 27, 1983. V-8329. Public discussion of an application submitted by William Dull for a variance to the tree regulations and for a special use permit for parking along the bank of Ralston Creek for property at 19 Evans Street. .MICROFILMED BY..._ JORM MICR#LAB r - CEDAR RAPIDS • DES MOINES l� A 4 Board of Adjustment July 13, 1983 Page 2 No one spoke on this item. Knight stated that the application was not complete and it was impossible to determine the applicant's need at this time. A meeting with the applicant had been held on July 11 and further information was forthcoming. Knight suggested that this item be deferred. Barker asked for additional background information about this application. Knight stated that the application had been filed on June 13, 1983, with the Board but correspon- dence between City staff and the applicant dated back approximately a year. Knight stated that it was the staff's concern that this issue be resolved either by the Board or through legal action and recommended that the Board put the applicant on notice that unnecessary deferrals would .not be granted. Barker stated that deferrals should be considered based on the merits of each case and that he felt it would be a mistake to have a specific policy regarding deferrals. Barker moved that a deferral until July 27, 1983, be granted on the condition that if the applicant wished to have an application deferred again, then he or his representative be present at the meeting to request a further deferral. Seconded by VanderVelde. The motion carried unanimously. Barker outlined the procedures to be followed by the Board. V-8330. Public discussion of an application submitted by Darrell Roberts fora variance to the sign regulations for the American Legion Post 17 at 3016 American Legion Road. Franklin reviewed the staff report. VanderVelde asked if restaurants would be allowed in an R1A zone and Franklin replied only as a non -conforming use in an R1A zone. VanderVelde asked 'if the sign was a non -conforming sign and Franklin replied yes. VanderVelde asked if this non -conformity predated the ordinance and Franklin replied yes; but clarified that an amortization section had been written into the ordinance and the sign should have been removed by September of 1981. VanderVelde' asked if an eating and drinking establishment was a non -conforming use. Franklin replied that she didn't know if the post served drinks and meals prior to 1962; a membAr of the Post replied that they did. Barker commented that the American Legion Post was there prior to the adoption of the sign regulations. Fisher asked if the same sign now used by the post would be legal as a free standing sign. Siders clarified that there were no provisionsfor any signage in the RIA zone. The Board was referred to Sections 8.10.35 and 8.10.35.5.82 of the Code. Barker stated that if the Board was to grant a variance to allow the Post to have the same signage allowed for permitted uses in an RIA, RIB or R2 zone, the sign would not be inconsistent with the sign ordinance. Franklin agreed, stating that clubs are allowed in R2, R3 and C zones and that the ordinance states in Section 8.10.19II that clubs should conform to R2 and R3 ,zone regulations; presumably those regulations would include sign regulations. Franklin explained that it was the projecting quality of the sign, which was not allowed in any zone, that was also an issue. The members discussed the possibility of using the same sign as a free standing 7micR*or]Li.�E�YCR+LAEI DES MOINES i Board of Adjustment July 13, 1983 Page 3 sign. Siders referred to 8.10.35.5 and pointed out the limitations of such a free standing sign. VanderVelde asked what the Moose Lodge and the funeral home in the same area were allowed. Siders stated that a facia sign was used by the Moose Lodge but that it was in an R2 zone; the funeral home was in a CZ zone. The following persons spoke in favor of the variance: 1. Emil Trott, 331 South Summit, attorney for and member of the Post, stated that it would be a hardship to remove the sign. Trott stated that the post engaged in a limited amount of commercial activity and the sign was needed as a location identifier for the post. Trott stated that the commercial activities were an integral part of the post and the sign was needed to notify out-of-town Legion members as well as local members of the post's location. •Trott stated that the post could not afford the expense of changing the sign. 2. Darrell Roberts, 521 First Avenue, out -going commander of the Post, stated that it would be costly to move the sign and the sign was needed. Roberts stated that the post was a non-profit organization and helped a great many people. Roberts pointed out that the location of the VA Hospital in Iowa City resulted in a great many out-of-town members utilizing the facilities. Roberts stated that these members needed the sign to identify the location of the post. Barker asked if the presence of the Veterans Administration Hospital generated more out-of-town visitors than other posts might experience. Roberts stated that it did not. VanderVelde asked if a facia sign like the Moose Lodge used would be sufficient. Roberts stated that it would be sufficient but the post could not afford the expense of such a sign. 3. Thomas Murch, 31 Greenview Drive, West Branch, incoming commander of the post, stated that a facia sign would be adequate but it.•would be 'difficult to see such a sign from the street due to the setback. Murch suggested that a traffic hazard would be created with the use of a facia sign. Fisher asked which alternative would be preferable: a variance specifying a free standing sign or a facia sign. Murch stated that the club would benefit more from a free standing sign. No one spoke in opposition to this item. VanderVelde asked the staff to describe the zoning of the surrounding areas. Franklin complied. Franklin explained that a projecting sign would not be a permitted sign in any zone. Barker asked for an explanation of the difference between a free standing sign and a monument sign. Siders complied. VanderVelde agreed that some sort of sign should be allowed the Legion for informational purposes, but expressed concern at the commercial look of its lighted sign in an R1 zone. VanderVelde stated that she would favor a less prominent sign such as a facia sign, stating that she was not sure a monument sign would be appropriate. Barker stated that this was a unique type of RIA zone and asked that a historical perspective be taken to this variance request. Barker pointed out that there were no neighbors present t .. .... MICROFILMED BY _... JORM MICR¢LAB I CEDAR dNDS • DES MOINES I. 1 l Board of Adjustment July 13, 1983 Page 4 expressing opposition to the request, commenting that the Post's compatibility with the neighborhood points to the uniqueness of the request. Barker further stated that the Legion was a public service organization and a hardship could be found in that it was a non-profit organization which could not afford a new sign. Barker stated that he was in favor of the Board rendering as much assistance as possible. Barker commented that if the sign were changed to a free-standing sign, it might be more noticeable than the present projecting sign. Fisher expressed reluctance at placing more restrictions on the post in granting signage than those placed on churches in the same zone; Fisher stated that he would prefer to leave the sign as is rather than allow the Post to erect a free-standing sign. VanderVelde still expressed concern over the commercial look of the sign. Barker commented that it would not be fair to restrict the American Legion Post more than other facilities and suggested that the sign be left as is. Barker stated that he would be in favor of limiting the variance to allow only the existing sign in its present location. VanderVelde asked if the sign could be flattened against the wall rather than left projecting. Siders suggested that a lighted sign flattened against building could create a fire hazard and in addition could be difficult to see. Siders pointed out the restrictions on a facia sign. Franklin stated that it was the staff's recommendation to allow the applicant signage as if it were a club in an R2 area, ie.e not allo projecting sign but permit facia signs, free-standing and monument signs. Barker commented that it would not be fair not to give the applicant all the options of signage in an R2 zone. Barker stated that he would not support any motion that would force the applicant to remove the sign and not permit them the freedom of choice of any signage permitted in an R2 zone. VanderVelde stated that the extent of the hardship was in not allowing the. post to identify themselves with a sign. Barker stated that the sign made no reference to the commdreial use but just identified the facility as the American Legion Post. Siders pointed out that country clubs and golf courses were permitted signage in an R1A zone. VanderVelde stated that if that was the case, she was persuaded that the post be allowed the present signage. Moved by Fisher that a variance for item V-8330 be granted to the sign regulations of the zoning ordinance permitting the American Legion Post 17 to retain the existing sign in its existing location. Seconded by VanderVelde. The motion carried unanimously. Barker advised the applicant of the appeal procedures. The minutes of June 8, 22 and 27, 1983, were not reviewed because they remained unsigned. The meeting adjourned at 5:54 p.m. �. r..... __.... MICROFILMED BY.. _._..i t JORMMICR+LAB l S CEDAR RAP10S - DES MOINES f r j 1. IFDO 1 ."-. _...__,.MICROFILMED BY JORM wCRI LAB • CEDAR WPIDS • DES MOINES I 0 -"r MINUTES IOWA CITY BOARD OF ADJUSTMENT JULY 27, 1983 -- 4:30 PM CIVIC CENTER COUNCIL CHAMBERS MEMBERS PRESENT: VanderVelde, Fisher, Barker, Slager MEMBERS ABSENT: Randall -STAFF PRESENT: Knight, Siders, Boyle, Behrman FINAL ACTION TAKEN 1. V-8317. The request submitted by Andrew Isserman and Anthony Frey appealing the issuance of a building permit to Home Town Dairy at 1109 N. Dodge Street was denied; the building permit was not revoked. 2. V-8318. The request submitted by Harry Hinckley appealing an' interpretation regarding nonconforming lots and rooming house density requirements for certain property located at 520 Ernest Street was dismissed. i SUMMARY OF DISCUSSION: L Barker called the meeting to order. Knight called the roll. VARIANCE ITEMS: 1 V-8318. Public hearing on a request submitted by Harry Hinckley appealing { an interpretation regarding nonconforming lots and rooming house density i requirements for certain property located at 520 Ernest Street. Barker referred to the memo by Knight dated July 27, 1983, indicating that no further action had been taken by the applicant to pursue this item. 4 Moved by VanderVelde and seconded by Slager to dismiss this item. The motion carried uananimously. V-8329. Public discussion of an application submitted by William Bull for a variance to the tree regulations and for a special use permit for parking along the bank of Ralston Creek for property at 19 Evans Street. Knight recommended that this item be deferred pending a decision by the Zoning Code Interpretation Panel regarding the legality of the clinic use now located at 19 Evans Street. Moved by Slager and seconded by VanderVelde to defer item V-8329 until August 10, 1983. The motion carried unanimously. V-8317. Public hearing on a request submitted by Andrew Isserman and Anthony Frey appealing the issuance of a building permit to Home Town Dairy at 1109 North Dodge Street. _...•.,...__._,.MICROFILMEO.OY_ I JORM MICR+LA9 { i -CEDAR RAPIDS • DES MOINES I 11. IOWA'CITY BOARD OF ADJUSTMENT JULY 27, 1983 PAGE 2 Knight presented a summation of the case. Boyle reviewed the procedural aspect of this item, advising the Board to allow cross examination and asked Barker to announce his decision regarding the applicant's request that the stated that, upon disqualifyir uponre iewelhadldeterminedf due to cthatFhe did not have anyBarker of conflict or anything involving his family owned property that would sway or influence his vote in this matter. Boyle pointed out that his memo dated July 8, 1983 was available regarding the request for disqualification. The following person was sworn in by the chairperson Andrew Isserman, 9 Caroline Court, briefly outlined his presentation which consisted of: 1) new issues being raised regarding the type of use Home Town Dairies represented, 2) a clarification of the conditions under which to rescind the building permit, and 3) present evidence on how the activities of Home Town Dairy have changed since 1962. Isserman argued that the dairy was no longer a creamery, that the land use does not conform with the present zoning ordinance, and that the dairy is conducting illegal activity on the premises. To substantiate his arguments, Isserman submitted the following exhibits: Exhibit "L" which dealt with the land use issue, Exhibit "B", which dealt with land acquisitions and the dairy's output, Exhibit "C", which reviewed how other dairies in Iowa are classified in the respective applicable zoning ordinances and Exhibit "D", which defined creamery as producing both butter and cheese. He argued that Home Town Dairy is not a creamery as it does not produce butter or cheese. This finding was based on an inspection of permit numbers on Home Town Dairy's argued that Home Town Dairies was engaged in illeuc galnonconformiing I activity with the production of bottled fruit drinks and noted that bottling plants are not permitted in a CH zone. Isserman therefore aruged that allowing an expansion of Home Town Dairies would, in essence, allow the expansion of this illegal activity. Isserman argued that another illegal activity could be found in the existence of a truck terminal on Home Town Dairy proproperty. Isserman argued that the truck terminal was only in existence due to a change in the nature of Home Town Dairy from a creamery to an industrial activity. Isserman submitted Exhibit "A" which summarized all aspects of his argument that Home Town Dairy was no longer a retail creamery but rather a large scale manufacturing plant that distributes its products over a large area. Isserman urged that the Board revoke the building permit on the basis that Home Town Dairies was a nonconforming use which was not permitted to expand. Fisher asked for a definition of accessory use and Siders referred to Section 8.10.26. VanderVelde asked if it was Isserman's contention that, once a dairy ceases to produce creamery products, it creates greater interference in neighborhoods, and if it was Isserman's contention that bottling fruit juice was causing an interference with the neighborhood. Isserman stated that that was not entirely the case; however, inadequate storage space for milk products had led to Home Town Dairy's request for expansion and bottling fruit juice did interfere with the milk storage space. VanderVelde pointed out that many of Isserman's concerns could be remedied under the noise ordinance. Boyle noted that Home Town Dairy is subject to the noise ordinance and had not been in violation when checked. prigd �. ... . MICROFILFIED BY �. .. JORM MICR+LAB ( CEDAR WPM RAPIDS - DE_ MOINES IOWA CITY BOARD OF ADJUSTMENT JULY 27, 1983 PAGE 3 VanderVelde questioned whether the Board could deny the building permit to Home Town Dairy if they found Home Town Dairy was engaging in some nonconforming activities. Boyle stated that the question before the Board was whether the entire activity of Home Town Dairy was an illegal or nonconforming use. The individual nonconforming aspects can be barred but Boyle stated he was not sure whether those were grounds for revoking the building permit. Roger Colton, attorney for the applicant, stated that the Board must consider whether the building permit would allow expansion of those illegal uses as well. Fisher questioned the location of the truck terminal operations. Isserman stated that the truck terminal existed on parcels separate from the building, some of which were not owned in 1962. Isserman argued that the truck terminal is a dominant use of the land. Barker asked if Isserman was suggesting that the truck terminal was being used as an organization for staging activities for products not being produced at that location. Isserman stated that he had no proof of that. Barker stated that, to his knowledge, milk products have always arrived at the dairy by truck and that the trucking activities were, therfore, incidental to the primary use. Isserman argued that the trucks often sit there for many days hooked up to electrical outlets and that this was a truck terminal due to its active nature and large scope. Isserman also argued that this truck terminal was an extension of the cold storage system. Barker asked if it was IssermanIscontention that expansion would cut down on that extension of cold storage. Isserman replied affirmatively, but stated that the number of trucks would not be reduced. Isserman stated that in 1974-1975, Frey had attempted to purchase milk at that location and had been told that it had ceased its retail activities a couple of years previously. The meeting recessed at 6:00 and reconvened at 6:10. The following person was sworn in by the chairperson. Anthony Frey, 15 Caroline Court, stated that he had moved into the neighborhood in August, 1975. Frey stated he had asked the dairy if he could purchase milk at that location and had been told that that had not been possible for a year or two. Frey noted that he lived in a'duplex located in an RIB area and he was unable to expand his nonconforming use. He contended that Hometown Dairies also should not be able to expand. No one spoke in opposition to the appeal: Colton pointed out that the representatives of the dairy had been present at the hearing and have been present throughout. Colton stated that the issues raised by the applicant were fivefold: 1) the conformance of the diary in a CH zone; 2) whether the CH zone is designed for retail establishment and whether Home Town Dairies is a retail establishment; 3) does a creamery necessary entail the production of cream or butter and does Home Town Dairy produce either of those products; 4) does Home Town Dairy produce bottled fruit drinks and is this allowed; and 5) does Home Town Dairy include a use specifically designed for the overlay parking of trailer trucks and is this a permissable activity in this zone. Colton J� ....MICROFILMED BY. 7 ` t JORM MIC R+LAB l � t� CEDAR RAPIDS • DEC MOINES ( 1 t � 1 -° IOWA CITY BOARD uF ADJUSTMENT JULY 27, 1983 PAGE 4 submitted that it was the applicant's contention that, since no evidence to counter the substantial evidence of the applicant had been presented, the Board as a matter of law must base its decision on the evidence before the Board and must grant the appeal. Boyle disagreed, stating that, regardless of whether opposition was presented, the Board can weigh the evidence. Boyle stated that it was his opinion that a great deal of the information introduced was hearsay. Slager asked for an explanation of the. process "writ of certiorari". Boyle explained. Slager asked whether the Board's decision could nullify a decision made in a previous hearing. Boyle explained that discussion of illegal use had expressly been excluded from prior hearings. Slager questioned whether the courts could have overruled the Board's decision because it had expressly excluded a discussion on illegal uses.* Boyle stated that that was theoretically correct. Slager stated that the applicant's have had an opportunity to be heard, both at the previous Board hearing and in District Court. VanderVelde stated that, as the issues had been split at the previous hearing, this was the first opportunityby the Board to hear the issues presented at this hearing. Siders clarified the previous proceedings and the rationale for treating the issues separately. Slager referred to the letter dated June 22, 1983 from the attorney for Home Town Dairies and read the letter into the record. Colton stated that that letter had not been served to the counsel of record for the appellants in this case. With regard to the letter from Meardon, Home Town Dairy's attorney, Boyle stated that it disagreed with the jurisdictional question. Boyle added that, if the Board rules that the building permit should be revoked, the City would have to ask the court to enforce the order. Colton noted disagreement with all Meardon's legal conclusions, stating that he disagreed that failure of the dairy to present evidence in opposition to that presented by the applicants, did not constitute a waiver. Colton argued that it did constitute a waiver. VanderVelde stated that the Board had no evidence to suggest that there is cream or cheese made at the dai thatry, while there is some evidence to suggest - those products are not made. She expressed the opinion that conclusion can be reached by the Board that there is no cream or cheese made at the Iowa City dairy bottled fruit . Fisher stated that an assertion existed that drinks are produced at the dairy. Isserman stated that the City's staff report had stated that fruit juice is bottled at the dairy. VanderVelde remarked that evidence also exists that the bottles are made on the premises for the fruit juice. Isserman stated that the creation of the bottles on the premises is incidental and that they do not consider it to be an illegal activity; however, the question remains whether this is a juice bottling plant as opposed to a creamery. VanderVelde stated that substantial evidence has been submitted to suggest that the dairy has grown although the legal relevance of that issue is not known. VanderVelde stated that the basic question before the Board was whether or not Home Town Dairies ceasing to be a retail function due to its lonlargeness, longer Possible a has toclassinfy ditvassif a creamery. Slagerustated it no was still part of the business conducted at Home Town Dairy and that was still _ 111CROFILMED BY JORM MICR+LAE3 l \ CEDAR RAPIDS • DE-- MOINES 1 AFD e IOWA CITY BOARD OF ADJUSTMENT JULY 27, 1983 PAGE 5 part of being a creamery. VanderVelde expressed curiousity at how other city ordinances have handled definitions of creameries and wondered at the justification for locating a creamery near residential areas. VanderVelde questioned whether a creamery implied a small scale partially retail operation or whether it implied anything that involved processing and bottling of milk. Barker pointed out that the issue before the Board was whether or not to revoke a building permit; the Board must review a specific act by the City staff, the contention being that a building permit had been issued wrongfully. VanderVelde observed that the previous Board had ruled that the issue of nonconformity could only be raised before the Board after a permit had been issued. Slager questioned the time limit available to appeal the building permit. Siders stated that a "reasonable period of time" was allowed, the permit being issued on March 22, 1983 and the appeal filed within 30 days on April 21,, 1983. Siders pointed out that Home Town Dairies had to comply with the LSNRD plan review process which required a site plan review by the Planning and Zoning Commission. Siders stated that the applicants have challenged the legality of the use, not his interpretation. Siders stated that the use of the structure was examined by the City staff, the City Council and the Planning and Zoning Commission. Siders remarked that the facility had a parking lot and not a truck terminal; parking lots being a permitted use in this zone. Slager asked the staff's opinion on the use aspects. Siders noted that the staff considers the dairy to be a legal use; the property had been rezoned for Home Town Dairy specifically with the dairy in mind. Siders explained the LSNRD plan review process, emphasizing that public hearings had been held. Knight explained that the intent of the process was to give an additional review for large scale developments to ensure that all zoning code regulations are being met. Isserman stated that he had not been part of that process and pointed out that the dairy had also argued that they were not governed by the process. Isserman statedthat he did not participate in the LSNRD process as it had been held in November and he found out about in January. Knight stated that notice had been published and signs posted and pointed out that Frey had been present at the hearing. Frey stated that he had been at a Planning and Zoning meeting when the LSNRD had been discussed and had objected and spoke in opposition. Knight stated that, during the LSNRD process, the assumption had been made that the dairy was a conforming use. Fisher asked how the bottling plant issue had been handled. Knight stated that specific types of activities had not been discussed but rather the Commission had discussed tree regulations, parking, etc. Barker stated that the question is whether Siders' action should be revoked; and questioned whether the City staff should be held responsible for checking the industrial standards. Knight remarked that the issue was whether or not the dairy was a creamery; trucking was not the issue. VanderVelde stated that trucking was incidental to the growth of the business. VanderVelde observed that the applicants are claiming that the building permit should not have been issued because the building official did not know that Home Town Dairies was not a creamery. VanderVelde pointed out the similarities between this case and the issuance of building permits in Manville Heights. Barker stated that the Board must balance the true facts presented at this hearing as to what a creamery is versus the building officials decision to issue the permit. Barker stated that the builder god . MICROFIEnEo BY JORM MICR+LA13 l �i i CEDAR RAPIDS • DE: MOINES 1 � 1 i IOWA CITY BOARD OF ADJUSTMENT JULY 27, 1963 PAGE 6 had been subjected to a significant amount of review by the City staff and at some point in the process, the builder has to be assured that he can complete what he's doing. VanderVelde pointed out that Home Town Dairies expressly knew that the issue of whether it was a nonconforming use would arise again. Slager stated that she thought Home Town Dairies was a creamery because it produced milk products. VanderVelde stated that the making of juice products is not normal creamery function and observed that that use was nonconforming; VanderVelde stated that the dairy seemed to be a mixed nonconforming and conforming use. Slager agreed that the bottling of juice is part of the process today that was not part of the process in the past. However, Slager stated that Home Town Dairies does fall within the creamery description although they have gone beyond that description in some areas. VanderVelde stated that the limits of that definition of creamery were stretched by making juice and engaging in wholesale distribution. Barker stated that the issue was whether or not Home Town Dairies should be allowed to grow and keep up with the changes in the milking industry. VanderVelde stated that Home Town Dairies does not seem to be able to limit itself; VanderVelde pointed out that there had been no answer to her question in a previous hearing about when Home Town Dairies will stop expanding. VanderVeldestated that there.is some point when the dairy changed out of its definition of creamery into something else. Slager pointed out the similarities between an evolving definition of creamery and "institution." VanderVelde stated that if the Board found that a particular use had some I elements of both the nonconforming and conforming use, the Board must decide how best to proceed to enforce the intent of the statute. VanderVelde stated that the question was how to stop the nonconfomring use and yet maintain the conforming use. Boyle stated that there is a presumption of regularity when a building permit is issued and the burden of proof is on the applicant to convince the Board that the building permit was wrongly issued. VanderVelde• stated that the applicant had met the burden of proof by establishing that the dairy was part a nonconforming and part a conforming use; VanderVelde questioned the legal relevance of such a finding. Boyle suggested that that be considered in relation to how it affects the building permit. VanderVelde stated she did not know that relation. Boyle stated that the applicant had not established the burden of proof. VanderVelde asked if the building inspector could enforce the stopping of a nonconforming use. Boyle stated that the building inspector can stop illegal uses. The members discussed the question of illegal uses. Slager stated that the building permit was the central issue before the Board and remarked that she felt it was issued legally. Slager stated that the dairy does, in her opinion, fall within the creamery definition. VanderVelde asked if the Board could condition the issuance of a building permit based on the stopping of certain illegal uses. Barker stated that the Board could point out to the City staff that they had received evidence of illegal activity and that the staff could then enforce the Code. Slager reiterated that Home Town Dairies is a creamery due to the milk production aspect of its business; however, Slager stated that she 4 '. MICRDFILMED.BY •� JORM MICR( LAE3 { 1 CEDAR RANDS RAIDS • DEC MOINES � i IOWA CITY BOARD OF ADJUSTMENT JULY 27, 1983 PAGE 7 did agree that juice bottling falls outside the creamery definition. VanderVelde stated that a building permit cannot be granted to expand a non -conforming use; if illegal uses are taking place at the dairy, the building permit should be conditioned upon the cessation of those illegal uses. Slager stated that she did not know if the Board could revoke the building permit due to the production of juices because she was not sure it was not part of how the creamery evolved. Fisher noted that earlier definitions of creameries had not included any non-dairy products.' Fisher stated that he felt Home Town Dairies is an industrial and not a retail activity. The Board decided to place two motions on the floor; if motion one fails, a vote on motion two would take place; if motion one passes, motion two would be withdrawn. Motion one: Moved by VanderVelde and seconded by Fisher that the building permit, which is the subject of item V-8317, be revoked so long as the dairy continues the bottling of juice on the premises, which is found to be a nonconforming use. Motion two: Moved by VanderVelde and seconded by Slager to revoke the building permit which is the subject of V-8317. The vote on motion one was as follows: 2-2; Barker and Slager voted no. The vote on motion two was as follows: 2-2; Barker and Slager voted no. j Both motions were defeated. Isserman asked for an explanation for the negative votes on the motion. Barker stated that his negative votes were primarily a function of reviewing the action of a staff member granting a permit given the information he had. Slager offered no comments on her negative votes. The minutes from June 8, 1983, were approved, pending telephone corrections received by the end of June 9, 1983. The Board discussed which items they wished placed on the agenda for the meeting with the Planning and Zoning Commmission. The meeting adjourned at 8:15 p.m. Taken by: Submitted Approved b .MILROFILt9ED.aY'. I � l JORM MICR+LAB CEDAR RP PIDS • DES MOINES i 1 avn i MINUTES BOARD OF ADJUSTMENT AUGUST 10, 1983 4:30 P.M. CIVIC CENTER COUNCIL CHAMBERS MEMBERS PRESENT: Randall, Barker, VanderVelde, 51 ager MEMBERS ABSENT: Fisher STAFF PRESENT: Franklin, Siders, Moen, Boyle, Behrman FINAL ACTION TAKEN: 1. V-8329. The application submitted by William Dull for a variance to the tree regulations and for a special use permit for parking along the banks of Ralston Creek for property at 19 Evans Street and ' amended to appeal the decision of the Zoning Code Interpretation Panel regarding the clinic at 19 Evans Street being an illegal use was denied. The Board upheld the decision of the Zoning Code Interpretation Panel. 2. V-8332. The request submitted by John Oaks for a variance to the off-street parking regulations for property located at 701-703 Perry Court was denied. SUMMARY OF DISCUSSION: i Barker called the meeting to order. Franklin called the roll, i M330. Public discussion of a request submitted by Faye Strayer for a i variance to the nonconforming building regulations for the Alpha,Phi House ; at 906 E. College Street. ' Staff recommended that this item be deferred since more detailed f information was required from the applicant. 1 Moved by VanderVelde and seconded by Slager to defer item V-8330 until next placed on the agenda by staff. The motion carried unanimously. V-8329. Public discussion of an application submitted by William Dull for a variance to the tree regulations and for a special use permit for parking along the banks of Ralston Creek for property at 19 Evans Street j and amended to appeal the decision of the Zoning Code Interpretation Panel regarding the illegal use of the property at 19 Evans Street as a clinic. i VanderVelde stated that she would withdraw from consideration of this item as she lived two houses away from this location. Barker outlined the procedure to be followed by the Board. Franklin reviewed the staff report and the use history of the property. Franklin referred to.Knight's memo dated August 4, 1983, which outlined the Zoning Code Interpretation Panel's decision regarding the illegal use of this property. Franklin stated that the staff supported the Zoning Code Interpretation Panel's decision. ...•,.. .. MICROFILMED BY_� l JORM MICR+LAB � CEDAR R410S • DEC MOINES 1 BOARD OF ADJUSTMENT AUGUST 10, 1983 PAGE 2 Boyle explained that the proper procedure of the Board would be to consider first the question of the interpretation by the Zoning Code Interpretation Panel; if the Board finds that that decision is not correct, they should then consider the question of a variance to the tree regulations and for a special use permit for parking. Boyle suggested that the staff mention the relevant dates in the history of this application for a variance. Siders complied, stating that on May 3, 1982, the City Council had set a date for a public hearing to consider imposing a moratorium in theCollege Hill area for any development at a density greater than R3; clinics are a permitted use in R3 zones. A building permit was applied for to convert the property into a clinic on August 16, 1982. On October 15, 1982, as a result of a complaint, an inspection was made and it was found that the conversion had been completed without a permit. In December of 1982 the property was rezoned. In February of 1983 a certificate of occupancy for the clinic was applied for; this certificate of occupancy has not been issued. Siders stated that since a building permit was never issued, the conversion of the property was made illegally. William Dull, 19 Evans Street, stated that he found that the decision made by the Zoning Code Interpretation Panel was fair. Dull stated that the Property in question was on the National Register of Historic Places and he had purchased it in August with the intent to convert it into a medical clinic. Dull. stated that he was ignorant of the other regulations of the City, but that he did not disagree with the decision of theZoning Code Interpretation Panel that an illegal use was being made of the property. Moved by Slager and seconded by Randall, that the findings of the Zoning Code Interpretation Panel in the matter of 19 Evans Street as set out in item V-8329 be affirmed. The motion carried unanimously (3-0). Franklin stated that the only remedy before the Board for the applicant was to obtain a use variance; Franklin stated that it was the view of the staff that such an action is legislative in nature rather thanjudicial and is, therefore, outside the Board's purview. the Board dismiss this item on that basis. Staff recommended that Dull stated that he was confused by that interpretation, stating that it was his belief that the Board has the right to grant a use variance. Barker explained the limits of the Board's powers to vary requirements of the ordinance but not to permit illegal actions. Dull explained that there were extenuating circumstances in this case. Barker stated that if the use is illegal, there is nothing for the Board of Adjustment to "adjust." Barker stated that the Board could not grant a use variance. Dull stated that it was unfair not to be allowed a clinic based on a law which was not in effect when the clinic was established; Dull stated that his only recourse seemed to be in the courts. Boyle pointed out that the applicant could request a legislative action by the Planning & Zoning Commission and request an amendment to the RNC -20 use regulations to allow medical clinics. Barker then outlined the District Court appeal procedure. Siders questioned whether further action was required by the Board to dismiss the rest of the application for a variance. Boyle stated that the letter dated August 10, 1983, from the applicant can be 4 � _,.= r+ � .... NILROFILMED BY JORM MICR+LAB R CEDAR RAPIDS • DEC MOINES r BOARD OF ADJUSTMENT AUGUST 10, 1983 PAGE 3 considered to be an amendment of the application and the decision of the Board regarding the Panel's decision concluded the matter. V-8332. Public discussion of a request submitted by John Oaks for a variance to the off-street parking regulations for property located at 701-703 Perry Court. Barker excused himself from the proceedings and VanderVelde assumed the position of acting chairperson. Moen presented the staff report. Moen reviewed the alternatives available to the applicant which would not require a variance; these alternatives were based on an interpretation of the Zoning Code Interpretation Panel regarding the regulations pertaining to the front yards of a corner lot. Randall questioned whether the 18 foot width of the drive was acceptable. Siders reviewed the definition of "drive," "aisle," and concrete pads and regulations pertaining to them. Randall stated that it was his understanding that although the concrete pads could accommodate four cars in size, those spaces were not counted for the purposes of off-street parking requirements. Siders reviewed the decision of the Zoning Code Interpretation Panel regarding the placement of parking spaces in the front yard. Siders stated that the applicant still needed to provide one additional parking space. Scott Barker, representing the applicant, submitted Exhibit A (copy attached) and asked that the staff mark the recommended alternatives on that item. The Board reviewed Exhibit A. John Oaks, the applicant, spoke in favor of the variance request. Oaks stated that it had been his intention to provide two -parking spaces per unit; however, the terrain prohibited the additional space. In addition, Oaks stated that the stormwater management easement reduced the amount of available space for parking and an Iowa -Illinois Gas & Electric terminal box prohibited the availability of parking space on the side yard.; Oaks explained that he currently was providing enough actual space to park five cars, although the City would only consider that space as being three legal spaces. Randall asked if the provision of parking had been reviewed at the time the building permit was issued. Siders stated that it had and the garage on the west unit had been removed and the plan noted that four spaces could not be provided in the front yard; however, Siders stated that he had not been aware of the severity of the terrain and had not insisted on an amended plot plan. Randall questioned why a concrete pad could not be provided on Dover Street. Oaks explained that that location would be inconvenient; in addition, he had not been aware of that alternative until 36 hours prior to the meeting and the concrete had already been poured. Siders stated that a concrete slab on Dover Street would be considered to be legal under the recent interpretation of the Panel. RandalT expressed preference for that alternative. Oaks explained that that alternative had not been available and the slabs had been poured in early July; Oaks stated that had he known that alternative had existed, he would have used Dover Street. Siders explained that the Zoning Code Interpretation 111CROFILRED BY. t JORM MICR+LA6 CEDAR RA PIGS - DE- MOVIES 1 � i BOARD OF ADJUSTMENT AUGUST 10, 1983 PAGE 4 Panel's decision had overturned his interpretation concerning the use of Dover Street; Siders agreed that Oaks' options had been limited. Randall stated that it seemed that the only reason for the variance request was to save the cost of pouring the concrete slab on Dover Street. Oaks agreed, but stated it was impractical to pour that slab as it would not be used and would in addition take away more green space on the property. VanderVelde expressed concern about persons who "pour first" and then come to the Board to request a variance. Barker stated that the applicant had only brought this hardship on himself by "an excess of caution." Barker explained that the curb cuts had already been made and as there were no regulations about the maximum width of the drive, he had advised the applicant to pour the drive wide. Barker stated that the slab and drive had beeh poured to prevent the loss of dirt should it rain. VanderVelde questioned why parking had not been considered prior to the construction of the house. Oaks stated that he had been told that he could not pour concrete slabs on Dover Street. Randall stated that the applicant had known he would be required four parking spaces. Oaks stated that he had not known that his yards would be considered to be two front yards. Randall stated that the pouring of the concrete on Perry Street had seemed to assume a variance. Oaks pointed out that in reality he was providing five parking spaces. Slager stated that the applicant did have an option now to place a parking slab on Dover Street and expressed concerns about the precedential implications of now granting a variance. Oaks reviewed the unique circumstances regarding this item. Randall stated that it was his opinion that those circumstances were to some extent self-imposed, as the applicant knew of the Iowa -Illinois terminal box location and the stormwater easement problem. Slager agreed that the circumstances were unique. VanderVelde stated that requiring the extra slab would almost be worthless as no one would park on it. Barker stated that not only would the addition of the slab be'worthless and ugly, in addition it would be unsafe. Barker explained that those using the parking space on Dover Street would be forced to back out too close to the corner, creating a safety hazard. Randall disagreed, pointing out that the parking space could be placed farther south near the door of the building, off Dover Street. Siders stated that the staff would be recommending an amendment to the ordinance to uphold his earlier interpretation, the intent being to allow only two parking stalls in the total front yard. Slager asked why the fact that the area in question was physically adequate to park the number of required cars was not considered when determining the legality of spaces. Siders explained. The members discussed the restrictions of parking in the front yard. Randall asked for an estimate regarding the cost of providing the slab on Dover Street. Oaks stated that the cost of concrete was approximately $3- $4 per square feet; in addition the cost of cutting curbs, pouring the approach and drive needed to be considered. W, J 1 �.. _.. ._ MICROFILMED BY JORM MIC R#L AB I CEDAR RiN DS • BES NOINES I 111 BOARD OF ADJUSTMENT AUGUST 10, 1983 PAGE 5 Moved by Slager and seconded by Randall to grant the variance to Section 8.10.25.D.1b to permit three off-street parking spaces in the side yard of a corner lot subject to front yard regulations. Slager agreed there were extenuating circumstances but questioned the hardship factor. Randall agreed that hardship was very questionable. VanderVelde stated that she would have been prepared to grant this variance because she did not believe complying with the loss serves a worthwhile purpose; however, VanderVelde stated that in a recent meeting with the Planning & Zoning Commission and Legal staff, the Board had been advised to grant variances only when the degree of hardship was such as to prevent all reasonable return from the property. VanderVelde further expressed a concern about the precedential implications of granting a variance in this case. Oaks again pointed out that he had not been advised of this alternative until 36 hours prior to the meeting; had he known of this alternative, he would have poured the cement in a different manner. The motion failed 0-3. Oaks asked if he could use the drive on Perry Court to access a parking space on Dover Street. Barker stated that the Board had.made its decision based on the assumption that the parking slab could be poured off the existing .drive and this was germane to the hardship issue. VanderVelde stated that the Board of Adjustment had based its decision in part on the staff's presentation that according to the Zoning Code Interpretation Panel, it was permissible for another parking stall to be placed in one of three places on Dover Street. VanderVelde pointed out that these alternatives were now marked on Exhibit A. Siders stated that the Zoning Code Interpretation Panel's decision was to allow two stalls on Perry Court and two stalls on Dover Street; if the applicant wants to cut the curb and put a drive on Dover Street, then two spaces could be placed there. The minutes of June 22 and June 27, 1983, were approved pending corrections received by staff within 24 hours. The meetinc Taken by: Submitted h Approved by 5 MICROFILMED. BY JORM MICR+LAB CEDAR RAPIDS • DE= MOINES 1 � .w Tug lyw WC 1 4iw¢• I ' • S � • WLsgFa j 65f V � V-5 F/-4 a rr PIAL WC L& u %INR' I ." .. ,....._.,MICROFILMEO.DY_..._ JORM MICR¢LAB CEDAR R41DS • DES MOINES