HomeMy WebLinkAbout2008-07-03 TranscriptionJuly 3, 2008 Special City Council Work Session Page 1
July 3, 2008 Special City Council Work Session 7:55 A.M.
Council Present: Bailey, Champion, Correia, Hayek, O'Donnell, Wilburn, Wright
Staff: Karr, Helling, Dilkes, Lombardo, Rocca, Davidson, Fosse, O'Malley
Lobbying Talking Points:
Bailey/ The first item on our work session this morning is "lobbying talking points." I
provided some information regarding the funding of what we know, and Eleanor
reported the...the 90% that has been approved for our public assistance. Um,
some of the discussion that I've heard from other entities have been considering
asking the Governor to, um, talk to the...to the Federal government about
increasing the percentage for the buyout program. As you know, it's typically a
75/25, with, uh, 15% expected by local and 10% expected by State. Additionally,
people have talked about the possibility of having the State pick up, um, that 25%,
or the difference between whatever the Federal government, um (noise on mic,
unable to hear) that we could easily take and advocate for. Um, so that's what
I've heard mostly in discussion this week. Michael, did you have any comments
regarding this?
Lombardo/ In addition, we may want to consider asking for multi-year funding if...if
there're not adequate funds to...to do this all in one year, that there's a
commitment up front, uh, to make the funds available.
Bailey/ Okay. I think that makes a lot of sense.
Champion/ Is there any idea, Regenia, because you've talked to a lot of people, that there
will be a second dedication of dollars, for this disaster?
Bailey/ I tried to get some clarification about the FEMA Hazard Mitigation, and perhaps
Jeff knows this. If it's a regular grant program for which we could get a
commitment for this particular disaster over a period of years, and yet if we had a
mitigation program that would stretch longer, if we could simply apply for that
grant program, year after year, and I'm not getting a clear answer. Do you know
anything about that?
Davidson/ The buyout program is a ongoing program, uh, it's been accessed in eastern
Iowa on...for smaller scale projects most recently in 2000, I believe, Central City
I think it was had a project. Um, but clearly the scope of the event that we've just
been through leads to the need for the...for the special action by...by Congress,
and, um, similar to the Mayor, I've received indications that there will be a
second go-round, Connie, but you know until...until it happens, we don't know
for sure.
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Champion/ It didn't seem like a lot of money to me, when you think about the scope of
this disaster.
Bailey/ Well, and that's something we can also simply do is advocate for more funding,
which I think our, um, our Federal delegation would be interested in advocating
for, whether that happens or not.
Champion/ Maybe we could rename Iowa City "Iraq." (laughter)
Wright/ Probably get a lot of money thrown at.. .
Champion/ ...a lot of money!
Correia/ I know we've been focused a lot on the FEMA buyout, which I think is
absolutely appropriate. We have people coming to us, um, but I also wanted to
talk about other long-term recovery strategies, and I see in this memo, or press
release, about the Economic Development Administration...administering
economic development disaster assistance grants, um, and so I wonder,
(mumbled) been thinking about the needs of our small businesses and other
business, a $5,000 loan is going to be great, but I know it's not going to
even...there's going to be additional resources that our businesses are going to
need, um, if it costs a home $25,000 to mitigate mold, it's probably on the scale,
of some businesses...I'mthmking in the Stevens Drive area. I know there's a lot
of small businesses impacted, so are we developing recovery strategies beyond,
um, or in addition to the residential, um, residential hazard mitigation buyout to
what's our recovery strategy for those areas of, um, business activity?
Lombardo/ This whole process I see is, you know, running information through a funnel,
and at the end of this we'll have a stream of...of, uh, qualitative data and
information that we can use to structure a program, um, there are a lot of different
ways to approach this, and so much hinges on how much funding will be
available and for how long. Um, until we know how deep funding goes, you
know, we are looking into all of the options that are available at this point.
Correia/ So in terms of, I wonder if the...the Committee for the, sort of the multi-agency
committee for the...our small business loan could be identifying or working on a
businesses recovery strategy, so that we can get a sense of the impact, broad
impact, on business activity in the City, and what it might take for businesses to
remain, to thrive, to open, that sort of thing, and that we would have that one tool
of our loan fund, but then have a sense of what are the unmet needs, to then be
able to take those to Loebsack, or whomever, um, be in a good position to apply
for these economic development disaster grants.
Lombardo/ That's a great idea.
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Bailey/ That would be really helpful.
Wilburn/ I think on the tail end of that, too, some of the strategies might not be, uh, even
just, uh, fiscal matters, for example, um, you know, we've supported and the
Chamber has promoted the "shop local" effort, and those type of efforts. Uh,
once they get back on their feet, we'll continue to be important to them, assist
them, uh, nothing better than channeling our local dollars through local businesses
to assist with their recovery and...and sustainability.
Hayek/ It seems to me that our...our bullet points as we develop them might want to be
structured under the various category headings. Whether it's block grant funds
that we can press for additional inputs on, or you know, the disaster assistance
grants, or...or any of the number of other, uh, resources out there, but make them,
um, budget-specific or category-specific. It'll help us coalesce, I think, around
something we can all live with, and it'll clarify the message we're taking to, uh,
the delegation. Um, and I would also, uh, throw out the idea that we...we
advocate for, um, a more comprehensive federal examination of the river corridor
and river management, um, I mean, I have to think that the Corps of Engineers
and comparable entities are...are, uh, wondering when the shoe's going to drop
and...and when there will be pressure on them to...to look at rivers more
comprehensively. Um, and I would certainly think we'd want to add that. It
doesn't mean dollars coming to Iowa City, but it means, uh, funding and analysis
supplied to the source of the problem.
Wright/ And I think dovetailing into that too, Matt, we need as a city, uh, government we
need to take a comprehensive look at our management and use of flood plains,
going into the future. Uh, this has been an issue on and off, uh, for some time, in
various parts of the community, not just Normandy Drive, and there's been kind
of a cavalier attitude toward our use of flood plains, and I think that's something
we need to pay close attention to.
Bailey/ Other considerations? The local delegation seems to believe that there will be a
special session at the State in August, and one of the other questions that they are
asking, and I'm sure you've all heard it as well, are there, um, are there laws in
the way of recovery, and I think you saw that with the UI bidding procedures
being changed at the State level, and so I'm assuming that the various
departments are looking at that, but that's another way -it's not fiscal, but are
there...are there barriers to quick recovery that we can ask them to remove,
temporarily or permanently, and that's something that they would be interested in
hearing from us. I think with the consideration that the fiscal approach is not
going to be the only one and it's going to be very challenging for the State.
Correia/ Michael, have you identified any barriers, legal barriers, for quick recovery?
Lombardo/ Just...just our entire process for raising revenues and issuing bonds. There's
a lot of different limits, and they're there for good reasons, but in times like this,
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uh, they also limit your ability to react quickly. Um, we were having discussion
about just even for general City projects. You add to that the complexity of these
issues and the funds, the magnitude of funds that are needed, and uh, just the
ability to...to act, uh, to attain either grant funds or...or bond funds, or change our
revenue structure is really a limiting factor.
Bailey/ Any other thoughts at this point regarding lobbying or talking points?
Correia/ So is that something to prepare for identifying areas of interest for the session, to
have...staff come back to us, identify...
Lombardo/ Yeah, we'll pull together a memo with...with some broad recommendations
on some of these things we just talked briefly about.
Bailey/ I think that would be helpful, and then use the categories that Matt suggested so
we can sort of group them and speak to them. I think that would be good.
Anything else on this topic? Okay. Um, the next topic is furniture project and
donations of large amounts. Amy, this was something that you brought up, um,
do you have any additional information?
Furniture Project and Donations of Lame Amounts:
Correia/ Well, um, I...basically, I wanted to talk about, we have the Furniture Project as a
resource that the City provides, um, it has been on hiatus for a number of months,
um, and I think that there had been a plan to kind of get it back up and running to,
um, former processes in the very near future, um, and so I'm wondering, given,
um, the situation of being in flood recovery, and the need moving forward
potentially for folks as they're relocating, either temporarily or permanently,
without, um, furniture and other household items, if we can utilize our resource of
the Furniture Project in a...in a flood recovery way, suspending the old rules, um,
and being able to utilize Habitat Restore, um, to help with large donations. Um, I
know that they have been approached by outside...potential outside donors, um,
but needing to have (noise on mic, unable to hear) needing to house furniture and
distribute it in a different way from the Furniture Project process when it's
working, um, pre-flood time.
Bailey/ So, Rick, you have some information for us on the Furniture Project?
Fosse/ Yes, I do.
Bailey/ Great!
Fosse/ We are back up and running, and that's something that was in the works prior to
the flooding, and we are partnering with Restore on that, so ReStore's providing
the component, the picking it up, getting it to the storage facility, and then the
City staff is working to meet with people to get it out to people in need. Um, but
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that...that doesn't get at the large donation aspect of it, and uh, to...to address that
issue I need to review the...the two purposes that the Furniture Project exists.
One is to provide that human service that we're all looking at, and the second is to
divert waste from our landfill, and...and it's that component, uh, that we need to
examine here because it's never been a part of our vision for this to...to be a
regional collector for, um, stuff from other communities. If we divert stuff from
the Des Moines landfill or the Chicago landfill, for instance, to our area, uh, not
everything that we get will...will go out. There'll be some of it that ends up in
our landfill, uh, some of what goes out into the community, there'll be for short-
term use and then end up in our landfill. So the net benefit for landfill space
would be a negative one, if we become a regional, uh, player in this. So that's
something that we need to look at carefully, if we want to go that route.
Bailey/ Questions for Rick, regarding operations? But it is up and working, and what are
the hours, and those sorts of things, just that basic sort of availability. Is it up to
full speed?
Fosse/ Yes. We, uh, let me find the stuff here...uh, Restore is collecting...they take
donations Tuesday through Saturday, from 9:00 A.M. to 4:00 P.M., and they take
that right at their store there on Scott Boulevard, or they'll go out and pick it up at
your place, but there's a $10 pick-up fee for that. And then, uh, we have two days
a month where we'll be available where people can come in and pick up the
furniture, and if...if because of the flood we have a bigger need than that, uh,
we'll certainly work to accommodate that. That's something we can do, but
absence of the flood, the two days a month works pretty well.
Bailey/ Okay. All right, any...you had some concerns about receiving large items, it
seems like we're not necessarily set up for that. Did you want further discussion,
or...or are you in your capacity at the County going to look for other options?
Correia/ Yeah, I mean, I understand the philosophy of the...of the Furniture Project,
um...so I guess I just need to speak with folks...I mean, I think that we do have
the potential to have some real usable furniture coming in, and at this point,
there's a capacity issue.
Bailey/ Uh-huh.
Correia/ ...for folks, so was trying to figure out a way to increase capacity to be able to
do that, and respond to what the needs are in the recovery phase.
Wright/ Capacity, for storage capacity?
Correia/ Yeah, storage and, um, just the staffing. I know Habitat staff are willing to do
that, but are constrained in the current...current structure.
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Bailey/ So perhaps that's another route, it seems like. And there's a task force that,
there's a flood response task force that perhaps could undertake this.
Correia/ Potentially, yeah.
Bailey/ Okay.
Correia/ But the idea with that is that, to figure out where there is capacity, I mean,
Habitat's part of that task force, and I mean, I think that...if...if there isn't the
ability to do that, I mean, we potentially lose the ability to accept those types of
donations that we will need.
Bailey/ And perhaps what would be helpful is if the task force identifies some options,
and if the City...if they want to appeal to the City, just bring that back to us.
Maybe that's the best way to proceed, um, with some community brainstorming.
Okay, any other comments on the Furniture Project or questions? Thank you,
Rick.
Wright/ This isn't a comment on the Furniture Project, but it's germane. Could you
move your mic more to the center, because if you turn, you drop out.
Flood Mitigation -FEMA Buyout Program:
Bailey/ Um, okay, the next item is flood mitigation FEMA buyout program. Do we have
additional information on that?
Davidson/ Yes we do, Madame Mayor. Uh, at your meeting last Monday, uh, we began
discussion about the buyout program, and basically what we know about it...what
we knew about it at that time. There were several questions raised at the meeting.
LJh, we have attempted over the last couple days to get as many answers as
possible, um, up until, um, yesterday evening, in fact, we were receiving
information. You didn't have anything in your packets because we were literally
receiving information up to yesterday evening. I just have some handwritten
notes to go through with you here. Um, just to refamiliarize everyone - we are
attempting to decide if we wish to access a Federal program. This is not our
program, but we would be accessing a Federal program, which is administered
through the State. So, obviously there are some complications in terms of the
mechanics of doing that, but I think we have some answers to specific questions.
Um, I also wanted to point out, Doug Jones, uh, reminded me and I just have a
vague recollection of it that the City has, uh, accessed this program before.
Doug...Doug recalled, and I have a vague recollection of a single, uh, home along
Ralston Creek that was acquired after the 93 flood. The one I'm more familiar
with, and I think all of you are familiar with as well, is the...the Peninsula
property. The lower portion of the Peninsula, where the dog park and the Frisbee
golf course and the trail system is, uh, that was acquired through this program
after the 93 flood, and I think is really a poster child for good flood plain
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management in that area. We were able to do a density transfer and locate the
housing up on top of the hill at a higher density than it might have otherwise had,
and then keep the lower area open, uh, and that's really a good...a good flood
plain strategy for that area. Um, the first question that came out of the meeting
Monday was how extensive is the Notice of Interest process, and do we have to
identify specific properties. The Notice of Interest, remember, is the document
that we will file, and the deadline for that is September 12th. By September 12Th
we have to file that document, and that is just what the name says - a notice of
our interest to FEMA and State Homeland Security, that we are interested in
accessing the program. We do need to identify specific properties at that time,
and there has to be some type of damage estimation made of each property that is
filed with a data sheet that goes in with that Notice of Interest. Um, we're trying
to get our hands on that data sheet so we can...I can't imagine it's very extensive,
but it's just a general indication of the status of the property, but we will try and
get our hands on that form, and that would have to be filed for each property.
So...so that's obviously key. We have to know basically the properties that we at
least have some interest in acquiring at the time we express the Notice of Interest.
Um, the State will then receive those Notices of Interest from everyone in the
state by that deadline, and they will, uh, review all of those, and I think most
importantly, determine what the demand, statewide, is for the program. They will
at that time at least have a pretty clear notion, I think, of what the availability of
funding is going to be, on a statewide basis, so they can compare that availability
of funding that they have with the demand for the program, and in October then,
they will send out basically "invitations" to communities that they feel have
appropriate projects and "invite" us to apply formally to the program.
That's...that's the process of how that works, and so I think what we're all
assuming is that based on the demand for the program, they will probably set
some ground rules at that time, um, have no idea exactly what those would be, but
one might imagine that they could limit it to floodway, 100-year flood plain, 500-
year flood plain, that that would be one mechanism that they would have of
focusing, uh, the applications on where they feel they would do the most good,
given the resources that they're going to have to work with. Um, second question
was, let me make sure I...yeah, uh, can the City set a cap on individual
reimbursement amounts? Uh, the indication that we've received from, uh,
ECCOG, which is the regional council of governments that I mentioned has done
a few of these smaller scale projects, is that the answer is "no." That
reimbursement must be at the set percentages for either the appraised or the
assessed, uh, value. Uh, the specific FEMA language that they quoted was
purchase price for properties and buildings must be at their pre-flood fair market
value. And I think you'll recall that the way that they do that is either if you've
had an appraisal made within a year of the event, they will use that 110% of that
appraised amount, or if you haven't, they will use 125% of the assessed amount,
and assessments are updated every...every two years. Uh, the third question was
is in-kind local match acceptable? Meaning the City's 15% is in-kind local
match, and as far, uh, ECCOG was aware that is not acceptable, that it is a cash
local match, that basically at the...the closing for the acquisition of the property,
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the uh, 75%, 10%, 15% is...is essentially a cash amount that's presented to the
property owner. Uh, the fourth question was is foregoing local match allowed?
In other words, is a property owner...can a property owner agree to take 85 cents
on the dollar, thereby sparing the City the expense of that 15%. Um, it maybe
possible to do that. Not specifically by waiving the 15%. Those percentages and
the compensation to the property owner has to remain at that fair market value.
However, the property...East Central Council of Governments feels that a
property owner could basically agree to put up the 15%, which...which in effect
has the same effect as waiving the City's 15%, but a property owner that...that as
far as they're aware, the State and the Feds don't care where the 15% comes from.
So hypothetically it could come from the property owner. Now, we're going to
attempt to confirm that, uh, there is a public meeting Monday morning...can
anybody remember when the time is? Is it...I think it's, well, at any rate, City
staff is going to be there, and it's open to the public, that's why I'm announcing it.
Anybody can attend. It's for asix-county area...pardon, Michael?
Lombardo/ I think it's 9:00.
Davidson/ 9:00 is what sticks in my mind, too, um, it's asix-county, um, meeting,
information meeting. FEMA's going to be present, and...and that's a question
we're going to attempt to get some confirmation of from the FEMA people, uh, at
that meeting. Uh, next question -what other City related incidental costs are
associated with the program? Uh, and there are I think a couple key things.
Obviously one is the lost property tax revenue from any property that's acquired.
IJh, second would be the cost to, uh, there maybe some expense that is not
reimbursed through the Federal grant for demolition. Demolition is an eligible
cost, but there maybe some additional, uh, demolition costs that the City would
have to pick up. Uh, obviously constructing what your open space is going to be.
If it's going to be a park, or if it's going to be ball fields or whatever it happens to
be (noise on mic, unable to hear) perpetually maintain it, and perpetually is the
key word, uh, they want to make sure that this remains open space in perpetuity.
So those would be additional expenses, really, to the program. Um, next question
was how is the risk assessment done for properties proposed for buyout? As I
explained, that's a key, that's really a key evaluation thing. They want to reduce
as much vulnerability to flood damage as possible with the program, so they do an
assessment of the vulnerability of each property. Um, the Notice of Interest that
we will file must indicate for the individual projects that they are cost-effective,
environmentally sound, and provide a beneficial impact from the State, and that
sounds like something straight from, uh, program guideline, and we'll have to
figure out more specifically what is meant by that, but, it is clear that the program
is aimed at properties that are destroyed, condemned, or substantially damaged,
and the Notice of Interest requires us to provide information about the extent of
that damage for each property. And then a key thing we were able to find out,
properties are prioritized as follows: number one is owner-occupied homes that
are substantially damaged or condemned; second is occupied rental property,
substantially damaged or condemned; third is secondary residences. That is to
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say residences that aren't occupied all year long; and/or recreational property,
third priority, and commercial property is the fourth priority. There was a
question of whether or not commercial property is eligible. It is eligible, but it's a
much lower priority than property which is inhabited by people, because that
clearly would have a higher risk associated with it, in terms of loss of life. The
next question was can we...can we use needs-based local criteria to target those
who help...who need help the most? I.E., this would be targeting for example
lower income people for the program. Um, it's not clear that we can do that, but
the State apparently does it through the regulations that they use, and the
explanation that I received was that the State mitigation plan basically takes cost-
effectiveness into, uh, their evaluation, and obviously the cost per unit acquire a
lower income property is less than for a higher income property. An example was
given to me that for example buying out one $1 million house, a house that's
worth $1 million, that has two people in it is not as cost-effective as buying out
ten $100,000 houses with a total of 40 people in it, in them, that you can reduce a
lot more risk from the State's perspective by buying the ten-house scenario than
the one-house scenario. Um, so the lower income homes would rate higher under
that scenario in the State's vulnerability analysis. Um, it was also pointed out that
specific goal of the buyout program is to permanently reduce local government
costs for emergency rescue, infrastructure repair, debris removal, and emergency
shelters, and that lower income people require more of those services. So, again,
the...the, apparently the State's administrative rules will take that into
consideration. Now we will attempt to get clarification (noise on mic, unable to
hear) as to whether or not we can impose any, any, uh, rules that way, but it's not
clear.
Champion/ Um, what about, since...I mean, I understand the scenario of the $100,000
house versus the million dollar house, but does the State take into consideration,
um, local economies, like some of these smaller towns that were literally wiped
out, um, they probably, their housing values are probably a whole lot less than
Iowa City. Do they, do they consider that at all?
Davidson/ I think.. .
Champion/ I mean, our land is more expensive.
Davidson/ I think they consider it, not in terms of necessarily the economy of the town,
but for a specific property, you know, the...if it's less expensive to acquire than a
house in another, uh, town that would be more expensive that the cost benefit is
basically better, uh, and so I think from that perspective they take it into
consideration, Connie.
O'Donnell/ So the cost-effective approach would actually work within a city too. One
area versus another.
Davidson/ Right, and...and I'm hesitant to go any further...
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Champion/ Right!
Davidson/ ...with the specifics of how they evaluate cost benefit, because obviously
they're the ones doing it, and...and we're just speculating on how they might do
it. Uh, just a couple of other things. Oh, there was a specific question about
deadline for filing the Notice of Interest, and I explained that's September 12,
2008. Uh, there was a question about potential local match options, and I'm sure
the City Manager's going to want to address that specifically with you, should
you decide to pursue the buyout program. Um, ones that we have...have tossed
around, I guess, are, uh, obviously bonding is one that's available, oh, and there
was, Kevin O'Malley was able to, um, let's see...there was a question about, uh,
whether or not bonds sold for local match for a buyout would be considered a
general corporate purpose or an essential corporate purpose, and Kevin, correct
me if I'm not saying this accurately, but the key thing there is whether or not it
would require a referendum, um, essential corporate purpose does not. You can
enact that by your own action; uh, a general corporate purpose would require a
referendum of the community. Um, the Ahlers Law Firm let us know that, um,
the buyout program, because it is considered a nuisance abatement, is considered
a...an essential corporate purpose, so that basically something you could decide to
enact yourselves. Did I say that accurately, Kevin? Okay. Um, back to the local
match options then, we did discuss that apparently there's a, there maybe a
provision for a homeowner, individual homeowner, to provide the 15% local
match. Um, another one that we're investigating is the use of CDBG funds,
Community Development Block Grant funds. It is likely that we're going to
receive a special allocation of those, uh, we're not sure of the amount - could be
as high maybe as one, two, three million, uh, a lot of times those special
allocations come with a lot of the strings attached to them, uh, waived, and so that
is a possibility, um, that we have. Another one that the City Manager and I
discussed is...I think most of you are aware that the County is, uh, has got a
special open space levy, uh, that they are attempting to get on the ballot for this
fall, and that may be a possibility. Obviously what we would be doing with the
buyout program is attempting to acquire property for open space, and so there
maybe an angle there, as well. So, a number of possibilities out there. Michael, I
assume, you intend to put all those together for discussion if Council decides to
proceed.
Correia/ So can I just confirm that you...did you confirm that we could use CDBG
because I know in some cases you can't use Federal to match, and so...
Davidson/ It is...at this point what we know, Amy, is that there are occasionally special
provisions made that you can use it, as local match.
Correia/ Okay.
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Davidson/ We're not certain yet that we're going to be able to. (noise on mic, unable to
hear) possibility. It would require a special ruling to do that.
Correia! Right, got ya! Okay.
Davidson/ And then there was a question, do buyouts apply to commercial property, and
the answer is yes, but they are a lower priority than residential properties. Just a
couple more, um, oh, can...in pursuing buyouts, can the City match be satisfied
through bonds. The answer is yes. Um, let's see, I think we've been through
most of this. Oh, what would be the estimated hit to our tax base in the event of a
buyout? Um, you know, the simple answer to that is the number of residential
dwelling units times the tax rate times the rollback, um, times the City's share,
which is what, Kevin, 33%? Roughly, something like that. So we'd need to
know the number of units before we could...and the (noise on mic, unable to
hear). Uh, there was a question if buyout dollars could be reinvested in Iowa
City. It does not appear that we can require that, that basically that compensation
is paid to the property owner without strings attached to it. And then there was a
question about, uh, this hazard mitigation plan, which by the way, we did receive
a grant to prepare our plan, and it was approved. So we have basically
commenced preparing our plan. Uh, that is a 24-month process, which means that
we and all the other people in the state that are in the same boat as we are will
need to get a waiver, uh, for that if we do attempt to get buyout funds, but it does
not sound like there's going to be any issue with doing that. Um, you know, there
was a question of sort of how the buyout program would fit into an overall
strategy for managing the river corridor flood plain, and...and I think there's
going to be some activity in the next several months that...that essentially if
that's...if it's something that you decide you do want to pursue for the City that
we will incorporate that into our planning and subsequent discussion that we
have, including the University and Coralville, about management of the flood
plain. So I don't think there's anything right now that we need to decide about
that, but...but clearly if it's something that you end up wanting to pursue, we'll
then roll that into our strategy for managing the river corridor, uh, flood plain.
That was all the information I had. As I mentioned, there will be the meeting
Monday in Shueyville, uh, at the church there, the Methodist Church, and uh,
we'll attempt to get confirmation of...of a couple of the things that we were a
little fuzzy on, but otherwise, are there any other questions?
Bailey/ Are there questions for Jeff?
O'Donnell/ Jeff, the soonest we can apply is September 12th, right?
Davidson/ That's not really an application, Mike. That's an expression of interest.
O'Donnell/ That's an expression of interest, and they will come back to us, and um, set
the ground rules in October, if...
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Davidson/ Yeah, and basically indicate, Mike, if they're interested in receiving an
application from us at that time.
O'Donnell/ Okay.
Davidson/ That'd be mid...they're indicating mid-October.
Bailey/ So they have some priorities, but it also sounds like once we submit and they look
at all the other, and, um, Notices of Intent, um, that they will also set some
additional ground rules. Is that...
Davidson/ It does appear that way, yes, based on the demand for the program.
Bailey/ So these priorities could be further refined. Okay.
Correia/ It seems like the immediate thing to me is we have a deadline of September 12t''
to just have our notice in, with the properties listed, which isn't a ton of time,
given that you have to have information about each property, and that
doesn't...that doesn't require that property to continue, but in order for that
property to be considered, we need to know by September 12tH
Davidson/ Right.
Correia/ So, is...have, has there been talk about that process of, I mean, I know we've
received letters and petitions, um, but I don't know what we've received from
Taft Speedway. I know we have a couple of emails from folks that live along
that, um, street. So, are we going to send letters to all residences in the 100-year
flood plain that were impacted in this event, with, you know, a deadline for them
to get back to us so that then we can get all that information - how...how do we
propose...
Davidson/ Yeah, hopefully, Amy, within the next couple of days we'll be able to get our
hands on the data sheet, so we know exactly what it is that has to go with the
Notice of Interest. At that point then if there's a majority of Council that's
interested in submitting the Notice of Interest, I assume we'll have to have some
official action, um, on...on your next formal meeting agenda, and then work up
some strategy, as you're alluding to, to...to basically determining what properties
we would want to submit with the Notice of Interest.
Bailey/ Michael?
Lombardo/ We're pulling together a matrix of all the data that...that we're going to need
to make these decisions, and um, I should have a better handle on that in the next
day or two. We're going to pull together a meeting specific to discuss an action
plan, and who's going to collect what so that we know in-house, you know, what
we need to get through this.
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Bailey/ Matt?
Hayek/ Jeff, a couple questions on...first, with respect to the Notice of Interest and the
September deadline, if you're a house that's not on that list, but.. .
Davidson/ Which list, Michael, or, uh, Matt?
Hayek/ As I understand it, the City's going to bundle a list, or create a list, of interested
property owners and submit that along, if we choose to go that route to the State,
right, and that's our deadline to start that process. Say, uh, I have a home in one
of the affected areas but I've been out of the country for two years and I get back
in October and learn about this and decide I'd be interested as well. Does that
deadline foreclose the possibility of people to jump on board.. .
Davidson/ I don't know. We'll have to find out, Matt.
Hayek/ Okay. And then the second question is, trying to understand how...how the
funding and ultimate decision making works. If we're...if we're putting
together...if we go forward and we put together a list of affected properties, and
we submit it to the State, it goes up to FEMA, and then along with a bunch of
other municipal applications, and then comes back down to the State, uh, with a
big bag of money attached, it...was is the State actually deciding if it approves
Iowa City? Does it approve our suggested plan en masse, or does it look at
individual properties from the perspective of an office in Des Moines, and decide
which ones get funding?
Bailey/ Does it just give us a funding amount and say, `Have at.' (several talking)
Davidson/ Yeah, and I have to confess, you know, we don't know just exactly.
What...what they have indicated to us is that they want to fund properties based
on a risk assessment of loss of life and property damage, being able to avoid that
in the future, that they want to do that on the most...in the most cost-effective
way possible, and so my impression is that there will be basically a ranking, and
that they will fund as many properties as they can, based on that ranking, and then
if additional money becomes available, they'll continue to fund, based on that.
Hayek/ Well, yeah, and the follow up would be, let's say they go through that analysis
and they score it, and that results in a certain dollar amount. My question would
be, and I guess you'll have to look into this, do we just get one lump sum based
on their scoring and analysis that we can then use locally as we see fit, or are
those, is that lump sum divided up on a per property basis so that we have to do
with those funds as they tell us?
Davidson/ We'll see what we can find out, Matt. Yeah.
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Lombardo/ You raise a good point, and I think this ties into talking points for future
lobbying efforts. It doesn't make a lot of sense if we have a particular area and
we're only to achieve half the goal that we would set towards, uh, a buyout
program. If we're restoring open...if open space, but yet there are houses dotting,
um, the landscape based on their elevation, you know, how effective truly is that,
and so that's where I think this gets a little bit tricky and where we're going to
need to make sure that we're working at a lot of different angles in terms of the
dollars, but also the flexibility in how we approach the buyout program.
Wilburn/ In that case, the talking point might be to not...to encourage them to not block
grant this approach, because there, the typical response is if there's an issue out
there, uh, well, we'll block grant it, and you know, here maybe the need, but
here's how much you get, it's...block granting approach is a, uh, cost saving, um,
lower financial risk for the larger government entities to do, so it would be to, you
know, to push for here's our damage. Based on high risk, here's the funding
needed to accomplish that buyout, in my opinion, in terms of a talking point.
Dilkes/ Just based on the criteria that they've given us so far, it's hard to see that they
could do on a city by city basis, because if you're, you know, each city is going to
have some higher priorities and some lower priorities, so just based on the criteria
I would be surprised if it works in that fashion.
Wilburn/ I...I agree, but they don't have the total dollar estimate yet. I mean, if they...if
it looks like this, they may try and reduce their financial burden. To be
determined, I guess.
Davidson/ Any other questions?
Correia/ I guess the only other question I have, and I think this is just something to keep
updated on is the, um, potential folks just walking away from their property and
going through foreclosure, you know, if there's that September 12th deadline, who
do we work with -the bank? How does that.. .
Bailey/ I know that some people are calling their financial institutions about those kinds
of things, and that could be something that the neighborhoods encouraged them to
check into, if they can have some of that, um, interest only for a couple of months.
I know some local institutions, I've heard, are doing that for some homeowners.
Hayek/ I...I do though think it's...it's important for the City not to inject itself in the
relationship between a homeowner and his or her lender, um, I defer to our Legal
Department, but I, in my experience, that seems very risky and we're looking at a
very long time period here, um, and that's really a separate matter.
Dilkes/ I don't see that we have a role in...in that relationship. Where our role would
ultimately come in if there was an abandonment of a property, that was...that
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became a nuisance property, then we would have authority to, um, condemn that,
for instance.
Correia/ So if we don't hear from property owners then we don't hear from them, even
if...
Davidson/ Yeah, and I think, you know, this is something we'll have to...to discuss, I
guess, a little bit more, but I think it is possible for the City to indicate an
expression of interest about acquisition of the property, without knowing clearly
at this time whether or not the property owner will agree to voluntarily be
acquired during the program. Ultimately it comes down to that. No property
owner is forced to sell, but for example, hypothetically you could say, all
properties in the floodway, whether or not we can find that property owner or not,
at this time, you know, maybe they've walked away from it, and we don't even
know where they're at, we could still put in an expression of interest about all
properties in the floodway, and then do the follow-up with the property owner at
some point subsequent, and if it came down to when we finally located the
property owner they weren't willing to sell, well then that would be the end of
that.
Dilkes/ Yeah, I agree with that. I think that we probably would want to be over-inclusive
rather than under-inclusive on the...on the Notice of Interest. Um, because the
property owner always has the right to decline.
Wilburn/ Jeff, I have a question, and maybe this is just a get back to me later, or any staff
member, I guess, because I'm just trying to put this, uh, mull this over in my
mind. Um, the question came up about possibly, uh, you know, mitigating or
lowering essentially what the City's cost will be in terms of a buyout, should we
decide to go...go that route -excuse me - and I understand the State in the
example you gave figures out ways to, you know, um, differences in property
values or low income and all that, but if the purpose of this is to, um, essentially
get up all these properties so that, um, you're lowering risk, life, etc., etc., so that,
uh, you're essentially pulling residential/commercial out of those flooded areas,
uh, so that no future, in perpetuity, you know, it stays as open space, if you're...it
just seems to me on some level if you...if you're looking to reduce or...or, um,
lower the cost to the City by essentially saying, uh, homeowner, business owner,
um, for 85, you know, 85% and 95% of the value of your property, you know,
you can voluntarily buyout...that's, isn't that incentive, and if you lower the, if
you lower that amount aren't you taking the incentive for them to move out of the
flood plain? Does that make sense to anybody, or anybody have any gut reaction
to that?
Champion/ I don't think so.
Dilkes/ I'm not sure I understand the question.
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Wilburn/ If...if we, if we...the question came up about, um, you know, the Feds can pay
this, the State will pay this, the City will pay a lower percentage.
Dilkes/ Uh-huh.
Wilburn/ Am I less...are we potentially taking the incentive away for the voluntary...for
voluntary participating in the program? It's...
Dilkes/ I think what we've been told though is that that's not an option for us. That that
would be solely within the control of the property owner.
Wright/ So that the property owner could choose...
Dilkes/ Property owner could choose to...
Wright/ ...take that 15%.
Dilkes/ Right.
Wright/ But we could not require it.
Dilkes/ That's my....my sense so far.
Bailey/ There is another...I don't know if we've explored this yet, because it's not very
formed, but the, uh, what's it called? The philanthropy effort - is it Embrace
Iowa? Um, the Fred Hubbell and Mary Griswold and the Governor, um,
this...they're raising money from throughout the country, and that would also be
another funding source potentially. They haven't set priorities of how they're
going to use that fund. Um, if it goes down the way of sort of typical community
foundation sort of thing, I mean, perhaps using it for demolition and construction
of green space would be the more appropriate, but there may be an option there,
too, that we should probably explore as that's forming. Does anybody know
additional details about that particular fund? Ross, are you familiar....
Wilburn/ No.
Bailey/ ...okay.
Correia/ Well, I know they've given money locally already.
Bailey/ Right, they've given to the Community Foundation.
Correia/ And the Red Cross and the Salvation Army and, yep.
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Bailey/ I think we should also keep that on our radar screen for this, um, I mean, I think
the likelihood is something longer...longer term and down the road, but I think it
might be an option as well.
Wilburn/ Well, anything we can do to...if we participate in the program, to try and, um,
generate some revenue, donations, etc., even just the fact that you said we
received a grant to put together the mitigation plan. I mean, those
things...looking for those types of revenue to help assist, I think, are important.
Bailey/ Okay. Other questions, comments about this?
Champion/ I guess I would feel like I need to get a grip on what we're talking about
money-wise. When you get a copy of that form, could you give us one -one that
you fill out? I'd like to know whether they ask property value or the person has
insurance or not, what...what are actual....what we're talking about actual money
here. It would be really, I mean...
Dilkes/ Well, you're going to have to be involved before that form is even filled out,
because we're going to have to get a decision from you all as to which properties
we're going to apply.. .
Champion/ Oh, okay!
Davidson/ Yeah, I mean, once we understand the extent of that property information
form, I mean, I think decision making on your part, sooner than later, we'll make
sure we have enough time to get everything submitted then...by September 12th,
if that's the direction you want to go.
Bailey/ So, I'm generally hearing that we want to continue to get answers about this
program, and continue to step into this. Any concerns, or information, that
anybody needs at this juncture, as we move in this direction, um, it doesn't mean
that it can't stop at any time, but as Amy pointed out, the deadline is coming up. I
mean, it feels pretty close actually. We're into July (several talking) so...
Champion/ Well, I think we ought to go for it. I mean, we're not obligated, if we find out
in the end (noise on mic, unable to hear) can we also step out at any time?
Davidson/ Eleanor, what do you think?
Dilkes/ Well, as I understand the process, we submit the Notice of Interest, and then there
is an invitation given to us to apply for certain properties. Then at that point we
make a decision whether to submit that formal application.
O'Donnell/ I think the one that can step out is the property owner, and they can step out
at any time, up till the final moment. Is that right?
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Dilkes/ They can, but it's...I don't believe submitting -correct me if you think I'm
wrong, Jeff - but I don't think submitting the Notice of Interest obligates you to
anything. (several talking)
Hayek/ So the point of commitment for the City is the submission of the application.
Dilkes/ That's how I see it.
Davidson/ Well, at the earliest, I would think. It may not be until the property closing,
ultimately, you know....
Dilkes/ But in terms of our decision point.
Bailey/ But if they come back, for example, we submit the Notice of Interest. We submit
an application and they come back for funding for specific properties that doesn't
broadly meet what we want to do in our community, it also seems because it's
similar to a grant contract. It's got to be a meeting of the minds, that we could
also not enter into that agreement at that point. Do you think?
Dilkes/ No, no that's what I'm...well, I don't know exactly how the process works
beyond that point. I don't know with the application is basically saying yes, if
you approve it we want it, um, but my sense is that it's at that point where you
really have to be pretty clear about what you're wanting to do.
Davidson/ And the other piece of information we'll try and have for you is that once you
all decide...let's say you were to decide you want to pursue the program. We got
together then the information for the Notice of Interest about the individual
properties. We will be able to take the assessed values, times 125% for each of
those properties that we're going to submit with a Notice of Interest. We'll be
able to calculate what the City's exposure is going to be in terms of that 15% local
match, and that's ultimately when, as Connie put it, you decide whether or not
you can afford to do this.
Lombardo/ We're going to proceed with getting the information as if, uh, you intend to
file the Notice of Interest, um, where...where the decision points will come in
after that will depend largely on what's available, and then are we able to meet
local match, and so there's going to be some additional kind of strategies that are
going to have to be developed for how to approach this, based on...on what's
available, and then how we might be able to meet the match, and that'll probably
come at the point of application because I'm going to presume that once we apply
we're committed to at least that piece of the program, and those are some of the
details we'll work out and in subsequent workshops, or work sessions, we'll be
able to walk it forward.
Bailey/ Okay. Any other items to discuss regarding the buyout program, questions?
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Hayek/ This probably goes without saying, but I assume all of these wonderful answers
you've provided over like a 48-hour mad rush to research we'll get that in written
form in the near future.
Davidson/ Yeah. We'll probably try and wait until we really feel like we have good solid
information after the meeting on Monday.
Hayek/ Okay.
Dilkes/ Yeah, I want to be able to make sure I've satisfied myself that the answers are
correct, as opposed to just relying on what we get from other governmental
entities. So...
Wilburn/ I was going to say as opposed to relying on Jeff, but (laughter) I would rely on
Jeff!
Future Meeting Schedule Items:
Bailey/ Okay, thank you, Jeff. Um, all right, the next item is future meeting schedule
items. You can see on our list below for the Thursday, July 10th, we have the
flood mitigation plan, river corridor update, update on lobbying strategy, animal
shelter update, and um, are there other topics that should be included in this
discussion?
Hayek/ Just for...
Dilkes/ Can I interrupt, I'm sorry, can I interrupt for a minute. I believe Kevin has a
matter that he needs to address with you on the flood related issues.
O'Malley/ Honorable Mayor, Esteemed Council, we've been talking amongst Public
Works and Finance about possibility of waiving utility fees for these affected
properties for two or three months, and if that is in your interest, we'd like to
pursue a resolution to that affect.
Correia/ Yeah, I was actually going to ask if we could talk about tax abatement and the
utility bills too. So...
Bailey/ Are others interested in talking about tax abatement?
Karr/ So do we...if there's a majority, we could look at a formal on the 10th, as well.
Bailey/ (several talking) for waiving utility fees? (several talking) Okay, let's start with
that. Are we interested in...in looking at that, putting it on a formal on the 10th, or
putting it on the formal on the, we have a formal on the 15th, if...if you feel like
you need discussion to think about it.
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Champion/ I don't have any problems with utilities.
Correia/ Yeah, and is that for residential, or residential and...
O'Malley/ It's all affected parties.
Correia/ All affected.
O'Malley/ Would be, uh, water, refuse, and sewer.
Correia/ Okay. So for business and.. .
O'Malley/ Right.
Correia/ ...residential. Okay.
Bailey/ So, what would you prefer? To discuss it at a formal on the 10th, or to put it on a
formal on the 15th
Wilburn/ I would be interested in discussing it, um, and at this point feel I would support
it. I will be at a training seminar on the 10th, and so I'm just curious if there's
enough interested that I wouldn't have to worry about asking for it to be on the
15t". (several responding)
Champion/ ...very interested in it.
Hayek/ I'm open to it. I need to see specifics, I mean, I can't (several talking)
Bailey/ So we want a formal...
Dilkes/ There's no harm inputting it on, on the 10th, and if you want to defer it, you can
defer it.
Bailey/ Okay, so we'll have a formal on the 10th, next Thursday, a week from today. All
right. Tax abatement, are others interested in talking about tax abatement?
Correia/ I know they're talking about it at the County level. I don't know what...I
imagine we'd have their minutes or be able to talk to, so see what they've been
talking about. I don't know if other governmental bodies are talking about it.
Hayek/ I didn't catch that, Amy. Who was talking about it?
Correia/ The County, I know the County has had it on their agenda. I don't know
what...what they're saying about it or what they're going to do, but I think it was
brought before them.
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O'Donnell/ I'd be interested in talking about it.
Champion/ But taxes are paid, I've never understood this. I'm really paying my taxes in
September.. .
Correia/ Should we talk.. .
Dilkes/ Let's just clarify one thing first. This is...tax abatement can only be done by the
County Board of Supervisors. (several talking) We would have to make a
request to the County Board of Supervisors to do that, which is, of course is
complicated because only a part of the tax bill is ours, etc. My understanding is
that the County has talked about tax abatement, and is not pursuing it.
Bailey/ That's my understanding, as well.
Correia/ Okay.
Karr/ I did talk to the Treasurer, Tom Kriz, after his presentation, and um, again, it is a
percentage of the bill. It is a back-bill, the portion that you are taxed now is for a
portion that you did live in a house, all but two weeks, uh, versus the next bill
would reflect more of the flooding. Secondly, the impact on other entities who
rely on it. I believe the recommendation he gave, and there was tentative
approval, was to go ahead and do the tax, uh, billing, accept it, and then take a
look within each jurisdiction of potentially the use of that tax money and maybe
setting aside a percentage of it for relief in other ways. But at this point the
recommendation was to proceed with the taxing.
Lombardo/ I haven't made any formal recommendation. I've been information gathering
and kind of waiting to see where the County was headed with this, but given
the...the amount of unbudgeted expenditures that we're incurring just battling the
flood and...and what's going to come byway of reduced property taxes, my
recommendation would be that we do not pursue it, but I've been holding off on a
formal memo to outline those things, and it seems like the Board is not pursuing
it. I'm happy to give you something in writing, but...but it's a terribly slippery
slope and, um, our funding is going to be very tight.
Dilkes/ I think it's really important to remember too how we pay taxes in Iowa, which is
what Marian was...the taxes that we pay in September, this coming September,
are for the first half of Fiscal Year 07. So, that...the tax payment that'll be made
in September is for a time when there was no flood impact.
Hayek/ They're nine months in arrears, and really (several talking)
Karr/ (several talking) One of the biggest, um, entities that use the property tax and rely
on it are our schools. So the impact is also felt more than in the City's and in the
County budgets, as well as the school's.
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Wilburn/ Maybe we can just wait on the memo from Mike to see if there's further interest
and more information after that.
Bailey/ Well, I was hearing that there's not necessarily interest in pursuing it at this time.
I mean, do we want to see a memo from Michael regarding this?
Champion/ Well, I think there certainly will be a downgrade of these properties with
their, by the time the next tax bill comes around.
Dilkes/ Next assessment is January, um, 09, so that assessment will reflect the condition
of the property at that time.
Wilburn/ I was just presuming that you were putting...you said you hadn't made a formal
recommendation, so I was just presuming that you were, but if you're not, that's
fine.
Bailey/ Yeah...
Lombardo/ I had intended to, but the Board of Supervisors were acting much more
quickly than what we had.. .
Bailey/ Okay, other topics that we would like to add to the work session list specifically,
and to, I'm asking for that in case there's need for staff preparation. It's good to
have a list. Otherwise we'll have just a, um, again, sort of general sort of things,
but if there's information that you need, make sure that you're communicating
that to Michael for sure. Okay? All right. Hearing any other items?
Champion/ Um, I just, when we were talking about legislative things before, um, I don't
know if the State has thought about increasing the sales tax to cover all this
disaster stuff, since most communities have extra percent tax. I think we're one
of very few who don't. Whether they've considered that, like now, everybody has
to pay the 1 % school tax, right? That's...because I don't know where the State's
going to come up with the money for this disaster either. It's a lot of money.
Wright/ The State and there's also the Federal share. Obviously the Federal government
is borrowing the cash to pay for all of this.
Champion/ They're making it, they're manufacturing it.
Correia/ I think I did hear from a legislator yesterday that the State had more receipts than
they had (mumbled)
Bailey/ And we can certainly ask if they're looking at other tax (mumbled). Any other
items?
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Wright/ Just a question. Is the flood hotline still operating for homeowners who are
looking for information and guidance in the cleanup and recovery process?
Bailey/ I believe it is, during business hours, but Rick can confirm.
Fosse/ Yes, that is still operational during business hours, and then also the United Way
has their line that's matching volunteers with needs out there.
Bailey/ And I, um, got an update about the United Way line and will have that in an info
packet, um, or...
Karr/ It's in today's handouts.
Bailey/ Oh, okay, it's in today's handout about what they're doing, with the United Way
volunteer line. Okay, any other items? Thank you very much.
Hayek/ What we...meeting schedule? I think that's still...
Bailey/ The 10tH
Hayek/ I saw it on the agenda, I thought we might talk about future meetings.
Bailey/ Future meeting schedule items, you want to add additional meetings?
Hayek/ Ah, I guess I looked at it as future meeting schedule, and I didn't see that items
where (several talking). We've got...we've got a meeting a week from today on
flood issues, but that seems to be the last specifically scheduled meeting on
floods. Do we want to add something...
Bailey/ Marian can look at people's availability, um, in the last half of July, if people feel
like we need another, um...
Wright/ ...future meeting scheduled item could be talking about future meetings.
Dilkes/ I think, Matt, you also have the your regularly scheduled meetings July 14th and
15th, which we can (several talking)
Bailey/ ...the week of the 21St and the 28th
Hayek/ Well, I'm not, I mean, I'm not proposing that we...
Bailey/ Meet if we don't need to, but.. .
Hayek/ Right, but, I do...I think it's important that we show the public that we are
dedicating time throughout the summer on this issue, whether it's in a special
This represents only a reasonably accurate transcription of the Iowa City City
Council special work session meeting of July 3, 2008.
July 3, 2008 Special City Council Work Session Page 24
meeting like this morning, or a specifically allocated portion of a regular meeting.
I think that's critical.
Karr/ I believe.. .
Bailey/ I anticipate that if we are going ahead with this Notice of Intent we will probably
need some kind of session in the last half of July. So Marian can look at our
schedules. She...make sure that she has your updated summer schedule and your
availability, and we can work out something for that...that time. We can always
cancel if we don't need it. So we'll get something on the schedule for the last half
of July.
Hayek/ Okay.
Bailey/ All right?
O'Donnell/ Yeah, and if you look at who was here this morning, people are interested in
if, when and how long it's going to take, and to have a meeting to, you know, we
talk about furniture, but you know, that's great, but if you don't have a living
room to put the couch in, you have a problem. So I think we need to have a
meeting when we can have more information on if, when and how long it's going
to take.
Bailey/ I think we'll have more buyout information the last half of July.
O'Donnell/ And we're doing a great job. Jeff, you're being a master getting this
information for us, and I really appreciate it, but, you know, I understand there's a
great deal of stress out in the community today, and uh, we're doing all we can to
relieve it.
Bailey/ So, um, there's a holiday tomorrow, so I encourage all of you to reduce your
stress by attending the Jazz Festival and we have the fireworks, and that'll be a
nice community celebration. So, thank you all for being here, and thank you,
good morning, and...
This represents only a reasonably accurate transcription of the Iowa City City
Council special work session meeting of July 3, 2008.