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Home My WebLink About2003-02-06 Info Packet CITY COUNCIL INFORMATION PACKET CiTY OF IOWA CITY February 6, 2003 www.icgov.org I FEBRUARY 10 WORK SESSION ITEMS IP1 Agenda: Joint Meeting of Iowa City City Council and Airport Commission IP2 Memorandum from Council Member Kanner: February 10 City Council/Airport Commission Meeting I MISCELLANEOUS ITEMS IP3 City Council Meeting Schedule and Work Session Agendas IP4 Memorandum from City Engineer to City Manager: Iowa Avenue Streetscape Electrical Services IP5 Memorandum from Finance Management Assistant to City Manager: FY2002 State and Federal Funding Correction IP6 Memorandum from Assistant City Manager: Triennial Review of Cable TV Franchisee IP7 Memorandum from City Clerk: January 27 Council Work Session IP8 Memorandum from City Clerk: Creative Economy Unconference IP9 Memorandum from Community and Economic Development Coordinator: Interest Rate Policy for CDBG\HOME Funded Housing Projects IP10 Memorandum from Community and Economic Development Coordinator: Policy for the Recapture of CDBG\HOME Funding IPll Memorandum from Assistant City Attorney Matthews: Joint Feasibility Study for Municipal Electric Power IP12 Memorandum from Parks and Recreation Director to City Manager: Employee Award IP13 Emails between Transit Manager and Aletia Morgan: Southwest lC Bus Service IP14 Invitation: February 8 February 9 Annual National Salute to Hospitalized Veterans IP15 Article: Cities Consider New Municipal Utilities (Cityscape) [Kanner] IP16 Article: Cities Edge into Telecom Business (Daily Iowan) [Kanner] IP17 Release (National League of Cities): Stimulate Growth and Jobs by Targeting Social and Infrastructure Needs, Nation's City Leaders Say [Vanderhoet] IP18 Minutes: December 16 City Council Economic Development Committee IP19 Building Permit Information - January 2003 I PRELIMINARY/DRAFT MINUTES IP20 Housing and Community Development Commission: January 16 IP21 Planning and Zoning Commission: January 16 JOINT MEETING IOWA CITY CITY COUNCIL & AIRPORT COMMISSION 6:30-8:00 PM, February 10, 2003 Airport Meeting Room 1801 S. Riverside Dr. AGENDA 1. Introductions 2. Business/Strategic Planning Process 3. Airport Financial self-sufficiency (no tax subsidy) a. Establish a goal b. No tax support for operations c. No tax support for capital investment d. Repay previous tax supported debt 4. Sale/Lease of Aviation Commerce Park (ACP) a. Sale/lease process b. Repay capital investment at ACP c. Policy in distribution of sale/lease proceeds 5. Market Airport Services a. How to: b. Increase airport income c. Increase community support and greater public understanding of the airport as a municipal service 6. Project Updates a. Improving internal controls b. Runway extension c. North/South runway closure d. Out to bid on Mormon Trek extended e. Annexation/development issues in and around airport 7. Role of Commission and its relationship to Council and City Manager 8. Other Business U:jtairportmt.doc To: City Council From Steven Kanner Re: 2/10/03 City Council/Airport Commission Meeting Date: 2/6/03, 8:30 AM Estimated General Obligation Debt Payments at the Airport (from 2002, does not include Aviation Commerce Park): FY '03 - $175,859 FY '04 - $181,588 FY '05 - $180,188 Estimated General Obligation Debt Payments at Airport for Aviation Commerce Park (on a straight 20 year repayment for $1.6 mill. loan): FY '03 - $121,756 FY '04 - $124,514 FY '05 - $127,047 Estimated repayment to Landfill for Hanger Loans $85,440 per year for 20 years Estimated Transfers from City General Levy to Airport: FY '03 - $166,700 FY '04 - $183,000 FY '05 - $166,000 Fy '06 - $166,000 Items for 2/10 Agenda: I) Make a schedule of Airport repayment to City to begin covering all above debt within three years and for future years. II) Show how Airport will bring transfer of funds from General Levy to Airport down to $0 within three years. III) Show how Airport will accomplish the above - Some possible means to accomplish the above: raise hanger rents; charge landing fees; increase gas fees; cut back on expenditures; fundraise; ask business community that benefits to make donations; etc. 1V) Talk to UI (and others) about possible partnership in operating/running airport. City Council Meeting Schedule and February6,2003 C,TY Or iOW^ c,~ Work Session A. ,~.~=~en....... www.icgov.org · MONDAY, FEBRUARY 10 Airport Meeting Room 6:30p Special Council Work Session Joint Meeting with Airport Commission · Separate Agenda Posted · MONDAY, FEBRUARY 17 Presidents' Day Holiday - City Offices Closed TENTATIVE FUTURE MEETINGS AND AGENDAS I · TUESDAY, FEBRUARY 18 Emma J. Harvat Hall TBD Special Council Work Session 6:30p City Conference Board 7:00p Council Formal Meeting · TUESDAY, MARCH 11 Emma J. Harvat Hall TBD Special Council Work Session 7:00p Special Council Formal Meeting · MONDAY, APRIL 7 Emma J. Ha/vat Hall 6:30p Special Council Work Session · TUESDAY, APRIL 8 Emma J. Harvat Hall 7:00p Special Council Work Session · MONDAY, APRIL 21 Emma J. Harvat Hall 6:30p Special Council Work Session · TUESDAY, APRIL 22 Emma J. HarvatHall 7:00p Special Council Work Session Meeting dates/times/topics subject to change FUTURE WORK SESSION ITEMS Regulation of Downtown Dumpsters Downtown Historic Preservation Neighborhood Art Program Age of 21 Entrance to Bars Neighborhood Housing Nuisance Ordinance City of Iowa City MEMORANDUM TO: Steve Atkins, City Manager FROM: Rick Fosse, City Engineer ~ DATE: February 6, 2003 RE: Iowa Avenue Streetscape Electrical Services The 2002 Arts Fest revealed that the electrical outlets along Iowa Avenue did not supply enough power to meet the needs of the various street vendors, especially those preparing food. Since that time, the electrical outlets in the 100 block have been modified to increase both the number of circuits and amps within the circuits. The electrical system in the 200 block does not lend itself to easy modification. If you desire, we can evaluate options and costs for an upgrade to the 200 block. A color-coded map is being developed for both blocks that will show the outlets on each circuit and the amps available to each circuit. This will help event organizers manage where venders can be located based on their power needs. Even with the improvements, there will be vendors that need more power than can be supplied by the outlets along the street. In these cases, external power supplies such as portable generators or temporary circuits wired directly into the transformers on Iowa Avenue must be provided. The organizers of the Jazz Fest are adept at this and have had their electricians work with MidAmerican to do this for a number of years. We are also working to improve event protocol to provide electricians hired by event organizers easier access to electrical panels. This will allow quicker response when a circuit breaker trips. In the past, it was necessary to contact the Traffic Engineering on- call person to reset the breaker. City of Iowa City MEMORANDUM DATE: February 5, 2003 /' ~.~ TO: Stephen Atkins FROM: Leigh Lewis, Managament Assistant / Finance RE: FY2002 State and Federal Funding Correction Attached is a corrected listing of state and federal grant revenue for fiscal years 2001- 2002, with corrections noted in bold. Total funding for General Fund and the Capital Improvement Program remains unchanged. Corrections to previously reported CDBG and HUD funding increases FY2002 Other Funds grant receipts by $2,815,686, bringing total state and federal grant revenue to $16,841,000 in FY2002. Corrections within Police Department grant receipts were clerical in nature and did not change their total grant dollars received. General Fund: $ 919,034 Capital Improvements Program (CIP): 7,787,343 Other Funds: 8,134,623 Total State & Federal Grants - FY2002: $16.841.000 I apologize for the inconvenience. If you have any questions regarding this material, please contact me at 356-5053. City of Iowa City State and Federal Grant Receipts General Fund - FY2002 POLICE DEPARTMENT: Police Traffic Services Grant $ 23,751 $ 17,188 Edward Byrne Memorial - State and Local Law 48,377 48,711 Enforcement Assistance Grant Program Iowa's STOP Violence Against Women (VAWA) Grant 38,188 37,376 Bullet Proof Vest Partnership / US Dept of Justice 2,639 2,695 Federal Crime Grant / US Dept of Justice 242,071 48,682 $ 355,026 $154,651 LIBRARY: Open Access / Access Plus Grants 58,345 37,397 Enrich Iowa 20,515 32,042 $ 78,860 $ 69,439 TRANSIT: State Transit Assistance (STA) 365,591 301,416 Urbanized Area Formula Program - Federal 347,568 360,209 Capital Grants Program - State 4,091 Capital Grants Program - FTA 19,736 $ 717,250 $681,361 MISC. OTHER GENERAL FUND ACTIVITY: Forestry Division: A Million More by 2004 / Iowa DNR 5,000 4,000 Public Works: IDOT 19,500 9.583 $ 24,500 $ 13,583 City of Iowa City State and Federal Grant Funding Capital Improvement Program (CIP) - FY2002 34835 MORMON TREK-MELROSE/IAIS RR Federal Surface Transportation Program (STP) $ 1,980,000 34610 HWY 6-VIDEO TRAFFIC SIGNAL Urban-State Traffic Engineering Program (U- 54,203 STEP) STREETS & TRAFFIC ENGINEERING: 40,128 2~034~203 36925 BUS SHELTERS IDOT Capital Grant 22,020 36930 TRANSIT PARKING LOT RESURFACE IDOT Capital Grant 3,146 100,297 36925 BUS SHELTERS FTA Capital Grant 31,425 36915 TRANSIT OFFICES FURNISHINGS FTA Capital Grant 23,722 36960 COURT ST TRANSPORTATION CTR FTA Grant 2,603,627 TRANSIT FUNDING: 333~344 2,78t,09t 37110 AIRPORT LAYOUT & MASTER PLAN IDOT 19,600 37340 BEACON TOWER REPAINTING State Aviation Improvement Program 15,212 37370 AIRPORT HANGAR 'D' REHAB IDOT Vertical Structures Grant 50,000 37480 MASTER PLAN-LAND ACQUISITION FAA Airport Improvement Program 18,702 1,059,539 AIRPORT FUNDING: 18~702 1~144~351 34130 HWY 6 DRAINAGE Federal Surface Transportation Program (STP) 977,523 34130 HWY 6 DRAINAGE IDOT Primary Road Funds 301,723 34160 SNYDER CREEK WATERSHED State / Tribal Wetlands Protection Grant 83,340 (3,801) Program 34290 S SYCAMORE REG STRMWTR DET. Resource Enhancement and Protection Grant 200,000 (REAP) / Iowa DNR 34710 IA RIVER TRAIL-BURL/NAPOLEON 1) Federal Surface Transportation Program 10,000 (STP) 2) Transportation Enhancement Funds 38635 CITY PARK STAGE Recreation Infrastructure Grant / DNR 81,175 38681 LONGFELLOW/PINE ST PED TUNNEL Statewide Enhancement Funding Program 193,801 38826 HARDWARE/SOFTWARE UPGRADE Department of Justice Block Grant 67,277 MISC OTHER CAPITAL PROJECT FUNDING: 238,159 1,827,698 City of Iowa City State and Federal Grant Funding Other Funds - FY2002 WATER SYSTEM ADMIN & SUPPORT Iowa DNR 20,000 JCCOG Iowa DOT 100,291 107,272 MISC. COMMUNITY DEVELOPMENT HOME Program Grant / HUD 579,293 648,368 PUBLIC HOUSING FUNCTION Dept of Housing & Urban Dev. (HUD) Grant 5,193,513 5,779,064 CDBG METRO ENTITLEMENT Comm Dev Block Grant (CDBG) 8`15,802 1,204,89'1 CDBG HOUSING REHAB Corem Dev Block Grant (CDBG) 97305 297,423 EMERGENCY SHELTER GRANT Emergency Shelter Grant Program (ESGP) / 139,266 97,605 Iowa Economic Development Program City of Iowa City IP6 MEMORANDUM TO: City Council FROM: Assistant City Manager DATE: February 5, 2003 RE: Triennial Review of Cable TV Franchisee Attached please find a copy of the recently completed Triennial Review report from the Iowa City Telecommunications Commission (ICTC). The repod addresses the Cable TV franchisee's performance in the delivery of services and compliance with the Cable Ordinance and the Franchise Agreement. The triennial review is conducted as set forth in Chapter 12-4-4(C.) of the enabling ordinance. Completion of the review does not require formal City Council action. It is one of numerous resources that the City will use in addressing renewal of the current franchise. Any questions you have should be directed to me or to Drew Shaffer, Cable TV Administrator. cc. Iowa City Telecommunications Commission Drew Shaffer TRIENNIAL REVIEW By the Iowa City Telecommunications Commission (ICTC) Chair Betty McKray Vice Chair Cathy Weingeis°e Terry Smith James P. Pusack Kemhrew McLeo~l TABLE OF CONTENTS PAGE 1. EXECilTIVE SIJMMARY. ............................................................................. 1 ,Z. RECOMMENDED FRANCBISE RENEWAL CONSIDERATIONS .......................... 3. TECHNICAL REPORL ................................................................................ 4. FINANCIAL REPORT. ................................................................................ S. PROGRAMMING REPORT. ......................................................................... 7 6. SERVICE REPORT. ..................................................................................... 7. APPENDIX l - CABLE COMPANY REVENIIES AND FRANCHISE FEES ............ 13 8. APPENDIX II - CABLE 11' RATES .............................................................. 14 9. APPENDIX III- SETTLEMENT AGREEMENT. .............................................. 15 Page I TRIENNIAL REVIEW REPORT EXECUTIVE SUMMARY This Triennial Review Report concentrates on the last few years up to 2003, and thus is crucial in preparing for the franchise renewal process. The window for this franchise renewal process opens 36 months prior to the end of franchise, which is February of 2006. Therefore this report and the ICTC recommended franchise renewal considerations are most valuable. The last several years of this Triennial Review Report period have been notable for several things. One is a trend of ownership changeovers, from TCI to AT&T to Mediacom. Another is relative stability in subscriber penetration and growth of cable company revenues, accompanied by increasing cable TV rates. The cable industry has continued to offer new services and packages, most prominently the cable modem services. In some places telephone services are bundled in as well. The regulation of these services, particularly the cable modem services, remains an ambiguous area being contested in the courts at this time. The cable industry image nationally as well as locally has not been a positive one for several years. Cable industry relations with subscribers have been strained for a variety of reasons. Ongoing customer education and understanding concerning cable company services, prices, and packages and any corresponding changes are one way of helping to improve relations with subscribers. The Iowa City cable franchise has emphasized support for local access channels since its inception in 1979. In order to determine their value to the community the City with the ICTC's recommendation hired the U. of Iowa Social Science Institute to conduct a survey in 2000. This survey indicated the local access channels are watched and valued by the community. Page 2 The need for cable TV competition has been a frequent complaint by Iowa City subscribers. The City and ICTC have attempted to bring competition to Iowa City by sending packets of information to all over- builders that could be identified in the U.S., by negotiating a franchise with McLeod USA, an over-builder and by conducting a study of municipally owned cable systems. Little response was obtained from the packet mailings - none after the stock market decline, McLeod declined to sign the franchise agreement without explanation and the study indicated that overwhelmingly only cities with municipally owned electric utilities have been successful as municipal cable operators. RECOMMENDED FRANCHTSE RENEWAL CONSTDERATZON$ A random survey of overhead cable TV drops indicates that a number of NEC violations may still exist. Proof that the required audit, as specified in Section VIll. E of the franchise (95% of the cable TV drops are to be audited by two years after completion of the rebuild, which would be Feb of 2000), was completed should be requested from the franchisee. Spot audits should be conducted by staff, to verify compliance. The City and Mediacom are currently attempting to negotiate a resolution to address this matter. There is a need for all subscribers to be educated on an ongoing basis with regard to Mediacom's services, packages and costs. Franchise renewal negotiations should take this into account. The City should consider requiring major outage reports in a new franchise agreement more frequently than annually, which is what is required in the current ordinance. Busy phone signal studies should be required of the franchisee on an occasional, random basis. Franchisee is required to ensure cable is buried at a depth of twelve inches (12"). The specific wording of the appropriate section of the ordinance should likely be reviewed upon renegotiations. A minimum depth of 12" appears to have been the intent. Page 3 Based on the results of final court proceedings classifying cable modem or high speed internet service over a cable network, changes to the next franchise may be required. Provisions in the next franchise agreement should be considered regarding automatic rebates to subscribers when problems occur rather than relying on customers complaining and explicitly requesting refunds. There should be reports from Medicom to the TCTC on a regular basis concerning the frequency and nature of complaints they receive from subscribers. This will assist the TCTC in gaining a more comprehensive view of the status of the cable system. This should be considered being made a part of the franchise agreement. Requiring longer notice periods when the franchisee changes services, programming or costs should be considered when renegotiating the franchise. Technical Report General: It is important to note that the technical requirements of digital cable and cable modem services have raised the technical standards necessary for delivery of these products beyond any specific contractual requirements. Standby Power: Standby power appears adequate and exceedsfranchise requirements by 50%. Outaqes: The average duration for outages on a monthly basis is 1.74 hours from time of reported outage to time of repair. This does not include outages or interruptions associated with the most recent .]an., 2002, cutover period and digital upgrade. Page 4 Records of major outages specific to the City of Iowa City are required to be maintained and available to the City during normal business hours. Previously provided reports were not limited to the City of Iowa City, and include outages not defined as major. Misconception: Advertising materials and pricing schedules of grantee appeared to lead subscribers to believe they must subscribe to digital service in order to receive premium channels. There is no technical reason for this implied requirement. Furthermore, prior to the recent channel lineup changes in _lan. and Feb. of 2002, it appears that it was implied that premium channel access was not available with broadcast basic service. Rather, a minimum of family cable or digital service appeared to be required in order to receive premium movie channels. Again, there is no technical reason for this implied requirement. This matter has been resolved as a result of a settlement agreement between the City and Mediacom, which is attached as Appendix III and was approved by City Council on December :~0th, 2002. Cable Modem Service: The franchise is specific to the purpose of operating and maintaining a cable television system in the City. Rights and privileges for use of public right-of-way to deliver services other than cable television are not addressed by the franchise. The expanded service of high speed internet or cable modem service is clouded in its legal definition as to which jurisdiction has ruling authority over this type of new media service. Legal proceedings continue to complicate this issue. Page 5 Service Area: The Franchisee is required to offer service to all residences that are within the City limits that meet specified density requirements. Old Capitol Center and City Block 81 were to be provided service at completion of the rebuild and as soon as easements could be obtained. Individual drop service has recently been provided to the Old Capitol Center to satisfy contractual requirements, although service availability appears to have been delayed beyond a reasonable timeframe. Additional requests for service in this area should be closely monitored to ensure reasonable efforts are made to provide timely service. City Block 8:~ was provided service in :~999. The Showers addition and Camp Cardinal Road are also listed as areas for service offerings. The timing for this expansion should be completed within 6 months after the expansion of City services to this area. Drop Audit: Within two years after the completion of the rebuild, the Franchisee is required to have audited and tested 95% of the subscriber drops to ensure they meet the standards of the National Electrical Code (NEC), as provided in Section VIII.E. of the franchise. No evidence has been provided to the City to indicate this audit has been performed. A random survey of overhead drops indicates that a number of NEC violations may still exist. Proof that such an audit has been conducted should be requested from the franchisee; spot audits should be conducted to verify compliance. Construction Practices; Franchisee is required to ensure cable is buried at a depth of twelve inches (:~2"). The specific wording of this section should likely be reviewed upon renegotiations. A minimum depth of 12" appears to have been the intent here. Page 6 Free Cable Service: The Franchisee currently provides free monthly basic and family cable service to all schools, and a number of specified City facilities including the new Cable Television Offices. The Public Works building, Water Treatment plant, and Pollution Control Plant have not been provided service at this time. A justifiable need for cable television service at these locations is marginal for proper and safe operations of the City. Cost to extend to these locations would be significant and would be imbedded in future rate increases passed on to subscribers. Access Channels: The number of dedicated access channels required in the franchise agreement are: three (3) channels for government access; two (2) channels for education access; and one (1) channel for public access. l~n addition, one (1) channel for community programming and/or one (1) channel for educational access are also required to be provided, whenever documented proof of performance to specified cablecast measurements can be met. These metrics do not appear to be met at this time to require additional access channels. Financial Report How Cable Rates Have Changed: The basic rate has grown from $11.05 in 1996 to $13.35 at the end of 2002. (See Appendix ]~I). The basic rate is the only rate the City has control over so most increases in cable company revenue are due to other services, such as the premium packages. The cost per channel has not increased dramatically. However, feedback from subscribers indicates that they would prefer fewer channels on each tier except the basic tier, or an ability to select channels and be able to pay less. Rate Challenges That Have Been Brought By The City and What The Results Were: The City challenged TCI's rates in 1996 and AT&T's rates in 1998, taking both challenges to the Federal Communications Commission (FCC), resulting in subscriber refunds totaling $162,223.61. Page 7 In addition, because of IvlpR filings and adjustments made by the City, the subscribers could save as much as $966,284.43 based on how much the cable company could have charged in the future, but now cannot, based on the City's filings. Revenue and Franchise Fee Tncreases Since the Franchise Agreement Went Into Effect: Franchise fees and total cable company revenues have doubled from 1995 through 2001. Franchise fees have gone from $76,600 to $155,500 per quarter, while cable company revenues have gone from $1.5 million to $2.8 million per year. The number of subscriptions has remained surprisingly stable at :~7,000 to 18,000, while the revenue per subscriber has increased about 75%. Tnflation from 1995 through 2000 was from 1% to a high of 2.7%, so this increase cannot be attributed to inflation. (See Appendix T). Recent FCC: and Court Rulinqs and Their Effect on the City's Ability to Regulate and Collect Fees from Broadband Services: Recent court and FCC rulings have left much ambiguity in the area of the City's regulatory authority in the area of broadband services. The cable industry has stopped payment of franchise fees on services such as cable modem internet services. The City has put the company on notice that they should keep track of such revenues and contends that the City still has regulatory authority in this area. Programming Report There are three pressing issues regarding programming that will continue to be relevant over the coming years: Maintenance of community access channels; the addition or subtraction of networks from the cable lineup; and procedures for more smoothly communicating lineup changes to subscribers. Page 8 Access Channels: fn the Iowa City Telecommunications Survey produced by the University of Iowa Social Science fnstitute in June of 2000, it was discovered that a majority of respondents could name at least one access channel, and when given a description of the channels, the recognition levels were even higher, fn response to an open-ended question, about one quarter to one half of respondents said that they had viewed each of the channels. PATV and the Government channel were viewed the most, and all five of the access channels were highly valued by respondents. The respondents felt that these channels were fulfilling their function in the community (although there were many suggestions given about how to improve the quality of these channels given by the respondents). Because there were few differences in viewing habits among demographic groups, it appears that the local cable access channels have succeeded in providing a diverse array of programming for a wide variety of people in the Iowa City community, rather than focusing on only a small subset of the community. This is in part due to the fact that we have numerous individual local access channels, compared to other communities, that focus on education, government affairs, the library, public access, etc. Also, ]~nfovision has its own channel now, which opens up space for more programming on the government channel. The work that has been done in the past 6 months in improving the digital listings for local access channel programming has gone a long way in communicating to the public the programming on these channels that might appeal to them. The fCTC supported the decision to put the program schedules of the access channels on the digital tier TV Guide at a cost of $3,120 per year, which will be paid for through the pass-through funds. After the cable company changed the channel lineup in February, 2002, several of the local access channel listings on the digital TV Guide and on the Channel 19 TV Guide were still incorrect, t4ediacom has worked with the City for several months to resolve these issues and now the local access channels appear to have correct listings on both cable TV guides. Page 9 Channel Lineups: Mediacom underwent a significant channel lineup change at the beginning of 2002. This involved removing the premium channel HBO from the Basic Tier and into the Digital Tier, the addition of new channels and the subtraction of other channels from the Basic and Digital Tiers. This was the result of a consolidation of head-ends in the region, which will make Iowa City, Coralville, North Liberty and roughly 16 other towns have the same channel lineup. An examination of the summary of networks offered, and not offered, by TCI, AT&T and, now, Mediacom shows that--in terms of national viewership--the number of networks available through the Basic tier has decreased while the number of networks on the digital lineup has increased. Networks like C-SPAN2, Court TV and the History Channel, which were not offered previous to 1999, are now offered in either the Basic or Expanded Basic packages. However, channels that were offered on the Basic tier in the past, like Univision and the Weather Channel, are no longer offered on the Basic tier. A viewership of 20 million subscribers is the national median for the top 134 networks. There are a handful of networks with over 20 million subscribers that we still do not receive in Iowa City. Bandwidth space has expanded, giving us more opportunities for placing new channels on the cable lineup, alleviating some of the pressures when space was limited in analog. However, the number of channels that can be placed on the Basic tier is finite and this tier is now filled. This kind of situation led to a controversy a few years ago when the Spanish language channel, Univision, was going to be pulled off the basic service tier because it had a relatively small number of viewers. It served a small but important subsection of the community, raising the issue of maintaining diversity versus serving the needs of the majority of cable subscribers. We would argue for diversity, which also affects the local access channels, which don't bring in the same amount of viewers as, say, Comedy Central, but which have an important function in the community. Page l0 Communication of Channel Lineups: Lastly, there were difficulties in switching over to a new cable lineup in 3anuary of 2002 in Iowa City, wherein many subscribers felt that the changes weren't effectively communicated. Some of this confusion may have been the result of the inevitable byproduct of change, but there are a few instances where Mediacom did not effectively communicate the changes, such as sending out new lineup cards that had incorrect listings or publishing the changes in only one of the three local papers. Some of these matters have been dealt with in the attached settlement agreement (see Appendix III). Service Introduction: Given the radical changes in service introduced in early 2002, it would appear fairly meaningless to review service issues going back three or more years. In addition, Mediacom has asserted that the service bottlenecks that arose thanks to the unforeseen demise of the @home service amounted to a unique situation not likely to be replicated. Current concerns in this area can be grouped into four categories: ease of access to service representatives; effectiveness in responding to valid complaints; quality and accuracy of information provided to current and potential customers; and effectiveness and franchise compliance in dealings with Iowa City cable administrators and ICTC. Much of this material is dealt with in the Helling memo of March 22, 2002, the Koebrick memo of April 26, 2002, the Helling memo of June 13, 2002 and the July 16, 2002 Koebrick response to that memo. Ease of Access to Service Representatives: After considerable busy phone signal problems and related subscriber complaints, as of fall 2002, telephone access to local service representatives appears to be good and scheduling of repairs within 24 hours is being offered. Page 1l Effectiveness in Resoondinq to Valid Complaints: The issue of customers receiving rebates for lost service remains open. The Commission needs to consider revision of the next franchise agreement along lines that require Mediacom to provide rebates automatically, rather than relying on customer complaints. Or, as a minimum, we need regular, comprehensible reports from Mediacom concerning the frequency and nature of complaints. It is likely that this data would provide a more accurate view than the picture we now must paint for ourselves based on customers who reach the Cable Television Office. Monitoring of complaints concerning cable modem service should be included. Quality and Accuracy of Information Provided to Current and Potential Customers: Whatever the legal technicalities of Mediacom's compliance with the franchise's requirements regarding changes in service, it is apparent that Mediacom did not communicate effectively with its customers regarding several changes in service, especially during the January through Plarch, 2002 period. In addition, customers were not offered any clear rationale for increased costs for what was widely perceived to be a reduction in service at the basic level. The next franchise agreement needs to require longer notice periods if this kind of problem is to be avoided. In the interest of clarity and simplicity, the Commission welcomes Mediacom's planned conversion to a single combined bill for both modem and cable television service, beginning in December 2002. Service representatives now allow customers to request premium service in combination with Broadcast Basic if a converter is leased, although this service package is not explicitly promoted. Effectiveness in Dealings with :Iowa City Cable Administrator and ICTC: The Commission appreciates Mediacom's quick response resulting in the retention of the position of City Channel 4 and the creation of the additional Infovision Channel in December 2002. Page 12 Setting the legal requirements aside, however, it is apparent to the Commission that abrupt changes in channel lineup$ create service problems both for the City and for Mediacom. Fvery effort should be made to plan such changes in consultation with the City and the Commission and to publicize them widely. Planning should includea significant degree of advance consultation with the Commission, rather than notification that then necessitates quick responses when problems are identified. The Commission desires that the City and Mediacom work together to create a consistent naming system for the six public access channels both in the digital menus and the on-screen scrolling TV Guide found on channel :[9. We recognize that fees and efforts are required to create program listings, but contend that wherever this is possible the additional information will make our offerings much more useful. As of September 2002, Mediacom had not provided the busy phone signal study that was "currently underway" in July and for which a monthly report was promised. Other: The Emergency Alert System (EAS) was worked out with Emergency Alert Coordinator Tom Hanson, who worked with the Johnson County Sheriff's Office. The Sheriff's Office, who had operated the EAS in the past, declined to do so at this time and in the future. The Towa City Police Dept. has expressed interest in operating the EAS and is exploring this possibility. I Jun-961 Jun-97 Jun-98 Jun-99 Jun-00 Jun~01I Feb-02I 18as~c I j I $ :1.05] $ 11.70t $ 11.511 $ lZ.40J $ 13.0zl $ 13.351 $ 13.351 Expanded Basic $ 14.78 $ 13.23 $ 16.42 $ 18.36 $ 20.96 $ 20.96 $ £3.60 Total $ 25.83 $ 24.93 $ 27.93 $ 30.76 $ 33.98 $ 34.31 $ 36.95 Bas4c cost per channel $ 0.61 $ 0.78 $ 0.77 $ 0.73 $ 0.59 $ 0.56 $ 0.61 Expanded cost per channel $ 0.82 $ 0.66 $ 0.78 $ 0.92 $ 1.00 $ 1.05 $ 0.55 I HBO $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 $ 23.95 Cinemax $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00 $ 21.95 Showtime $ 11.00 $ 11.00 $ 12.00' $ 12.00 $ 21.95 STARZ $ 6.75 $ 6.75 $ 7.10 $ 7.10 n/a Encore $ 1.75 $ 1.75 $ 1.75 $ 2.10 $ 2.10 n/a TMC(digital) $ 8.5C $ 8.50 $ 9.50 $ 9.50 $ 21.95 STARZ+Encore $ 6.99 $ 6.99 $ 7.69 $ 7.69 $ 21.95 ATT Package prices include basic, expanded basic, STARZ, Encore, Cable Guide, Converter, Remote Package 1 1 choice: HBO, Cinemax, Showtime, DMX $ 47.30 $ 47.30 I Package 2 2 choices: HBO, Cinemax, Showtime, DMX $ 53.30 $ 53.30 t Package 3 3 choices: HBO, Cinemax, Showtime, DMX $ 57.30 $ 53.30 I Package 4 4 choices: HBO, Cinemax, Showtime, DMX $ 62.30 $ 62.30 Digital I digital packages includes basic, expanded basic, variety package, STARZ t&£, Encore (4 screens), digital cable, converter and Package remote package~ I I I I I $ 47.9s[ $ 47.95 I Package £ I Choose One: HBO (3 screens), Showtime (2 screens), Cinemax, The Movie Channel $ 54.95 $ 54.95 Package 3 Choose Two: HBO (3 screens), Showtime (Z screens), Cinemax, The Movie Channel $ 61.95 $ 61.95 Package 4 HBO (3 screens), Showtime (2 screens), C nemax, The Move Channel $ 67.95 $ 67.95 Mediacom [ Package Description Choice Digital Access, PPV, DMX, one premium (HBO $3 extra) Z0 or 23 Value [ Digital Access, PPV, DMX, two premium (HBO $3 extra) 29 or 32 Value Plus Digital Access, PPV, DMX, three premium (HBO $3 extra) 35 or 38 Total Digital Access, PPV, DMX, four premium (HBO $3 extra) 43 or 46 I I I Variety 26 channets added to any digitg package $ 5.95 Period CATV Total Revenue Pass Through Subs CATV I Inflation Inflation Inflation Franchise Fees At Home Franchise Fees Revenue Adjusted Annua Adjusted with Modemn Franchise per sub Franchise Fees, Per Sub Fees ~er month January 1995 Per Month base Revenue First 1995 $76,610.69 $1,532,213.76 $76,610.69 Second 1995 $73,77;~.1 4 $1,475,44Z.86 $73,772.14 Third 1995 $72,529.48 $1,450,589.6C 2.22% $72,529.48 Fourth 1995 $77,537.47 $1,550,749.45 2.22% $293,779.80 $77,537.47 First 1996 $85,492.85 $1,709,857.05 $12,973.50 2.39% $85,492.85 Second 1996 $78,477.06 $1,569,541.11 $26,559.00 17706 $29.55 2.22% $78,477.06 Third 1996 $84,004.70 $1,680,094.0C $26,981.00 17987 $31.13 2.10% $84,004.70 Fourth 1 996 $83,606.16 $1,672,123.25 $26,659.00 17773 $31.36 1.83% $3Z4,501.52 $30.47 $83,606.16 First 1997 $86,334.72 $1,726,694.4C $26,352.50 17568 $32.76 2.70% $86,334.72 Second 1997 $83,577.05 $1,671,540.9C $26,309.50 17540 $31.77 1.77% $83,577.05 Third 1997 $89,520.89 $1,790,417.84 $25,997.61 17332 $34.43 1.43% $89,520.89 Fourth 1997 $89,626.48 $1,792,529.62 $26,321.52 17548 $34.05 1.43% $342,134.68 $32.59 $89,626.48 First 1998 $86,593.37 $1,731,867.42 $26,214.46 17476 $33.03 1.14% $86,593.37 Second 1998 $85,362.23 $1,707,244.65 $25,766.37 17178 $33.13 0.82% $85,362.23 Third 1 998 $91,108.61 $1,822,172.05 $25,324.00 16883 $35.98 1.00% $91,108.61 Fourth 1998 $91,227.95 $1,824,559.0C $25,473.00 1 6982 $35.81 0.78% $348,S02.44 $33.92 $91,227.95 First 1 999 $100,338.40 $2,015,466.96 $26,293.50 1 7529 $38.16 1.60% $100,773.35 $434.95 Second 1999 $97,632.96 $2,003,849.89 $26,431.93 17621 $36.94 1.35% $100,192.4~ $2,559.53 Third 1999 $101,293.00 $2,017,638.46 $26,268.81 17513 $38.56 1.40% $105,381.92 $4,088.92 Fourth 1999 $106,385.85 $2,253,975.14 $26,631.45 17754 $39.95 1.96% $399,078.68 $39.30 $112,698.76 $6,312.91 First 2000 $107,252.76 $2,324,850.4C $26,570.53 17714 $40.37 3.00% $116,242.52 $8,989.76 Second 2000 $109,639.39 $2,440,404.8C $25,992.31 17328 $42.18 2.40% I $122,020.24 $12,380.85 Third2000 $106,598.97 $2,380,281.6C $26,050.32 17351 $40.96 1.62% $119,014.06 $12,415.11 Fourth 2000 $115,983.54 $2,622,638.8C $27,199.35 17901 $43.19 1.99% $431,799.23 $50.59 $131,131.94 $15,148.40 First2001 $131,561.48 $2,631,229.6C $26,839.66 17893 $49.02 3.20% $131,561.4E Second 2001 $136,533.43 $2,730,668.6C $26,357.33 17572 $51.80 2.08% $136,533.43 Third2001 $~41,221.16 $2,824,423.27 $27,465.20 18310 $51.42 2.25% $141,221.16 :ourth 2001 $155,273.00 $3,105,460.0C $28,899.00 19266 $53.73 -0.11% $554,626.43 $50.58 $155,273.0C First 2002 $158,948.42 $3,178,968.4C $29,006.00 1 9337 $54.80 1.21% $158,948.42 Second 2002 $134,501.60 $2,690,032.0C $28,983.50 19322 $46.41 1.24% $134,501.6C Third2002 .$134,187.39 $2,683,747.85 $27,710.50 18474 $48.42 $134,187.35 City of Iowa City MEMORANDUM DATE: December 3, 2002 TO: City Council FROM: Dale Helling, Assistant City Manager RE: Settlement Agreement Between City and Mediacom I will attempt to summarize for you the provisions set forth in the settlement agreement between the City and Mediacom which is on your agenda for consideration. 1. Mediacom will introduce new a la car[e pricing for premium services. A subscriber will be able to buy a digital premium channel and rent a digital converter for approximately $7 per month less than the cost of purchasing a digital service tier and the premium service. 2. Anyone who upgraded to a digital tier earlier this year because they believed it necessary in order to keep their premium service will be given a credit back ~o February, 2002 if they now choose to downgrade their service and purchase their premium service a la carte. 3. Mediacom will provide each subscriber with a $10 coupon which can be applied to any upgrade in service. 4. Mediacom will provide a simplified schedule of available services and charges so that subscribers can more easily compare prices and select the service they desire. 5. The City will withdraw its notice of violation of the franchise agreement and will cooperate with Mediacom in communicating to all subscribers the simplified schedule of services and charges. These provisions are set forth in greater detail in Sections 1 and 2 of the settlement agreement. Staff and the Iowa City Telecommunications Commission recommend approval of the settlement agreement. cc: :Iowa City Telecommunications Commission Mgr\asst\memos\medfacomag~ doc SETTLEMENT AGREEMENT ....... '~'a of ~-~Ca'rm THIS AGREEMENT ( Settlement Agreement ) is maae this It) cly ~c~, ~,,, ~- , ,~) , by and between the C~ty of Iowa C~ty, an Iowa mummpal corporation ( C~ty ) and MCC Iowa L.L.C., a Delaware limited liability company ("Mediacom"). RECITALS WHEREAS, Mediacom is the current holder of a franchise (the "Franchise") to provide cable television service in the City, pursuant to a Franchise Agreement dated December 5, 1995; and WHEREAS, on September 27, 2002, the City sent a letter (the "notification") from Assistant City Manager Dale Helling notifying Mediacom of the City's determination that Mediacom was out of compliance with various provisions of the Cable Franchise Ordinance and Franchise Agreement; and WHEREAS, the City sought liquidated damages to be rebated directly to Iowa City Cable Subscribers in the Notification; and WHEREAS, Mediacom denies and disputes the Franchise violation determination set forth in the Notification; and WHEREAS, in October 2002, Mediacom began discussions with City staff with the purpose of reaching an amicable settlement of the issues raised in the Notification; and WHEREAS, the City and Mediacom agreed upon a proposal to resolve the issues presented in the Notification; and WHEREAS, in the interest of avoiding further legal proceedings regarding this dispute, and in consideration of the mutual obligations and premises set forth herein, the City and Mediacom wish to resolve this matter through cooperation by entering into this Settlement Agreement. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE as follows: 1. MEDIACOM OBLIGATIONS 1.1 Mediacom hereby agrees that it will introduce new a la carte pricing for premium services such as HBO, Showtime, Cinemax, etc., to the residents of Iowa City as shown in Exhibit A (attached) Notice to subscribers of these changes will be sent in accordance with notice requirements of the franchise after execution of this Agreement by the City. 1.2 Mediacom will prepare correspondence subject to review by City staff that will inform all Iowa City cable subscribers who elected to receive a digital package following the elimination of analog delivered premium services January and February 2002 that they may elect to downgrade their digital package to one or more ala carte premium service at the new rates. The correspondence shall be sent within ten days following City staff review and shall further notify custom~rs that Mediacom will credit the difference between the digital package and the new digital ala carte rate from February 2002 to the date of the correspondence. The correspondence shall notify customers that they will have a period of forty-five (45) days to elect the downgrade and receive the credit and that the credit to the bill will be reversed if the customer purchases a digital package within ninety (90) days following issuance of the Credit. Any credit reversals shall be calculated on a pro rata basis of the 90 day time period wherein the customer shall retain that portion of the credit equal to the number of days the customer used the ala carte premium service divided by ninety. 1 .~3 Mediacom shall also develop an additional direct mail piece for all current Iowa City cable customers to be reviewed by City staff that will include a coupon for $10.00 to be used on any upgrade of service from their current subscription level. The coupon may be used separately or in conjunction with any other Mediacom promotional special or activity. The coupon may also be used on additional digital converter rentals. The coupon shall expire nine (9) months from the date of this Settlement Agreement, 1.4 Mediacom shall develop a simplified schedule of charges to be reviewed by City staff to clearly identify the services included in each package and option. The schedule shall be sent with the direct mail piece described in Section 1.3 of this Settlement Agreement. 2. CITY OBLIGATIONS 2. I The City hereby deems the notice of violations set forth in the Notification to be rescinded. 2.2 The City shall cooperate with Mediacom to communicate the simplified schedule of services and packages on the City's Government Access channels and the City's cable web site. 2.3 The parties expressly recognize that this Settlement Agreement requires the approval of the City Council in accordance with City law. Such approval is a condition precedent to this Settlement Agreement. 3. SETTLEMENT 3.1 The parties acknowledge and agree that this Settlement Agreement settles and the parties hereby release all claims and causes of actiun which were or could have been asserted by either party against the other party with respect to the Notification. 3.2 This Settlement Agreement does not resolve and shall not affect any pending proceedings regarding regulation of Mediacom's rates, except to the extent otherwise specifically provided in this Settlement Agreement, and the City reserves its rights to order refunds and rate 2 reductions or pursue other remedies, to the extent consistent with applicable law and FCC regulations. 3.3 The preceding provisions and any releases contained therein shall not affect the rights and obligations of the parties hereto with regard to any future events or transactions, and the City and Mediacom expressly reserve all their fights regarding those issues. 3.4 This Settlement Agreement shall not be construed as an admission, concession or finding of fault on the part of Mediacom or the City and neither party shall raise any claim to the contrary. 4. MISCELLANEOUS PROVISIONS 4.1 Effective Date: This Settlement Agreement shall be effective and binding upon the signatories once it has been signed by all signatories. 4.2 Binding Acceptance: This Settlement Agreement shall bind and benefit the parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors and assigns, and the promises and obligations herein shall survive the expiration date hereof. Any purported assignment of this Settlement Agreement is void without the express written consent of the signatories. 4.3 Voluntary Agreement: This Settlement Agreement is freely and voluntarily given by each party, without any duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all of the terms and provisions of this Settlement Agreement. Neither of the parties will take any action to challenge any provision of this Agreement; nor will they participate with any other person or entity in any such challenge. 4.4 Severabilit¥: If any term, condition, or provision of this Agreement shall, to any extent, be held, by a court of competent jurisdiction, to be invalid, preempted, or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective. In the event of a change in applicable law so that the provision which had been held invalid is no longer invalid, said provision shall thereupon return to full force and effect without further action by the parties and shall thereafter be binding on the Mediacom and the City. 4.5 Governing Law: Except as to matters which are governed by federal law or regulation, this Settlement Agreement shall be governed in all respects by the law of the State of Iowa. 4.7 Captions and References: The captions and headings of sections throughout this Settlement Agreement are intended solely to facilitate reading and reference to the sections and provisions of this Settlement Agreement. Such captions shall not affect the meaning or interpretation of this Settlement Agreement. APPROVED THIS tO DAYOF .l~c~,4g-~z , 4m~L City of Iowa City Emie LehSnan, Mayor ATTEST: City"Clerk Approved subject to applicable law this-'5_ I~' day of i ~/t.,o.~jr~. _, 2002. MCC IOWA LLC. r//~ _ Gluckman Brl~:,Je J. City A~orney's Office V.P. of Legal & Regulatory Affairs 4 IOWA CITY _A LA CARTE Sen'ice Descriptiorl P~C~ Services Channels KGAN-CBS, WGN, GOVERNMENT ACCESS, INFOVISION, KPXRoPAX, KWWL-NBC, KFXA. FOX, KCRG~ABC, LIBRARY CHANNEL, KIRKWOOD CHANNEL, CSPAN, QVC, KILN- , IPT,CSPAN2, CNBC, UITV, PUBLIC ACCESS, TV GUIDE, KWKB-WB, HSN, EDUCATIONAL Broadcast Basic $ 13.35 ACCESS 22 KGAN-CBS, WGN, GOVERNMENT ACCESS, 1NFOVISION, KPXR-PAX, KWWL-NBC, KFXA- FOX, KCRG-ABC, LIBRARY CHANNEL, KIRKWOOD CHANNEL. CSPAN, QVC, CSPAN2, CNBC, UITV, PUBLIC ACCESS, TV GUIDE, KWKB-WB, HSN, FOX NEWS CHANNEL. HALLMARK CHANNEL, OXYGEN, T~/LAND, MTV, CNN, DISCOVERY, A&E, USA, MSNBC, LIFETIME. WEATHER CHANNEL, FX, TNT, VH-1, ANIMAL PLANET, HEADLINE NEWS, THE LEARNING CHANNEL, AMC, SPEED CHANNEL, DISNEY, FOX SPORTS CHICAGO, COMEDY CENTRAL BRAVO, HGTV, ABC FAMILY. NICKELODEON, ESPN, E!, SCI-Fi, CARTOON NETWORK, TCM, ESPN2, COURT TV, BET, CMT, TNN, HISTORY CHANNEL, TBS, UNIVISION, TRAVEL CHANNEL, WE, TEN, FOOD NETWORK, EDUCATIONAL Family Cable $ 36.95 ACCESS,KIIN-IPT 65 N~)L~L~IN, UtSCOVERY KIDS, GOODLIFE TV, I NIO, GAME SHOW NE I WU~K, B~C AMERICA, NICK GAMES AND SPORTS, DISCOVERY SCIENCE, TECH TV, FOX SPORTS WORLD, GOLF CHANNEL, OUTDOOR CHANNEL, WE, LIFETIME MOVIE NETWORK, FOX Digital Basic $ 4.00 MOVIE CHANNEL 16 STYLE, DISCOVERY HOME & LEISURE, DISCOVERY HEALTH, HEALTH NETWORK, INSPIRATIONAL LIFE, INTERNATIONAL CHANNEL, DISCOVERY CIVILIZATION, NATIONAL GEOGRAPHIC, DISCOVERY WINGS, A&E BIOGRAPHY, HISTORY CHANNEL INTERNATIONAL, WISDOM, G4, OUTDOOR LIFE, VH1 COUNTRY, MTVX, VHI CLASSIC Digital Variety $ 5,95 ROCK, VH1 SOUL, MUCH MUSIC, BET ON JAZZ, INDEPENDENT FILM CHANNEL, Primary Equipment $ 5,00 D~g~tal Convener lerm~nal Additlonat Equipment* $ 5.00 DCPS tar add~tmnal ouUets Additional Link $ 3.00 DCTs 7.~ Digital HBO' $ 11.95 WEST. HBO FAMILY, HBO FAMILY WEST SHOWCASE, SHOWTIME SHOWCASE WEST, SHOWTIME EXTREME, SHOWTIME EXTREME WEST, THE MOVIE CHANNEL, THE MOVIE CHANNEL WEST, THE MOVIE Digital Showtime' $ 9.95 CHANNEL EXTRA, THE MOVIE CHANNEL EXTRA WEST, SUNDANCE 13 ENCORE MYSTERY, ENCORE MYSTERY WEST, ENCORE WESTERNS, ENCORE 9,95 ¢VESTERNSWEST, ENCORE TURE STORIES, ENCORETURESTORIESWEST, ENCORE ACTION, ENCORE ACTION WEST, STARZ!, STARZ! WEST, STARZI THEATER, STARZ! )igital STARZ!" $ THEATER WEST, STARZ! BET 17 A LA CARTE COMBINATIONS ~ICE 4BO/SHOWTIME* $ 19.95 HBO/CINEMAX* $ 1995 4BO/STARZF $ 19.95 ~HOWTIME/CINEMAX' $ 17.95 SHOWTIME/STARZd* $ 17.95 'AI/alacadepremucm~requireadigitalconverfer(DCT2OOO) to receive the ~e~vice. STARZgCINEMAX' I $ 17.95 HBO/SHOWTIME/CINEMAX* $ 2795 ~ la caRe premium ~etvices doe~ not include the TV Guide lnterac~ive, PPVAccess, HBO/SHOWTIME/STARZ!* $ 27.95 :r Music Choice. Digital link is required. HBO/STARZ!/CINEMAX' $ 27.95 S H OWTIME/STARZd/ClNE MAX $ 25.95 HBO/SHOWTIME/STARZ!/CINEMAX' $ 35.95 *A digital converter (DC T 1000, f 200 or 2000) is necessary to r~elve premium or digital package ~ervices on additional outlet~ Digital converters are not required to receive Broadcast Basic and Family Cable ~ervices on additional outlets. A La Carte Combinations: Basic Cable Buy-Through (DCT is a monlhly cost) Basic Service, Dipital Conveder, 1 Pay Channel 3ASIC $ 13.35 BASIC $ 13.35 I IBASIC $ 13.35 BASIC $ 13.35 :)CT $ 5.00 DCT $ 5.001 DCT~_~ $ 5.00 DCT $ 5.00 HBO $ 11.95 CINEMAX $ 9.95 ISHOVVTIMB $ 9.95 STARZ! $ 9.95 Total $ 30.30 , Tota $ 28.30 ITotal $ 28.30 Tota $ 28.30 Basic Service, Digital Converter, 2 Pa,/Channels _Service Price_ Service Price Service Price BASIC $ 13.35 BASIC $ 13.35 ~ASIC $ 13.35! DCT $ 5.00 DCT $ 5.00 DCT $ 5.00 HBO $ 11.95 -lBO $ 11.95 HBO $ 11.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 STARZ! $ 9.95 Total $ 40.25 Total $ 40.25 Total $ 40.25 Basic Service, Di~ita Converter, 2 Pay Channels I Service Price Service _Price BASIC $ 13.35 BASIC $ 13.35 DCT $ 5.00 DCT $ 5.00 CINEMAX $ 9.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 STARZ! $ 9,95 Total $ 38.25 , To!al $ 38.25 Basic Service, Digital C0nverter,,~ Pay Channels Service Price BASIC $ 13.~- DCT $ 5.00 SHOW'i-IM E $ 9.95 STARZ! $ 9.95 Total $ 38.25 Basic Service, Digital Conveder, 3 Pay Channels Service I Price Service Price Service Price Service Price BASIC ~ $ 13.35 BASIC $ 13.35 I BASIC $ 13.35 BASIC $ 13.35 DCT i $ 5.00 DCT $ 5.00 DCT $ 5.00 DCT $ 5.00 HBO $ 11.95 HBO $ 11.95 I HBO $ 11.95 SHOVVTIME $ 9.95 CINEMAX $ 9.95 CINEMAX $ 9.95~ SHOWTIME $ 9.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 STARZ! $ 9.95 STARZ! $ 9.95 STARZ! $ 9.95 Total $ 50,20 Total $ 50.20 Total $ 50.20 Total $ 48.20 Basic Service, Diclta Converter, 4 Pay Channes I Service Price 3ASIC $ 13.35 DCT $ 5.OO ~BO $ 11.95 31NEMAX $ 9.95 .~HOWTIME $ 9.95 STARZ! $ 9.95 Total $ 60.15 Customers must rent additional DCT to receive premium services on additional televisions. Comparison: Old vs. New Rate Structure A La Carte HBO DCT TOTAl= klew $ 11.95 $ 5.00 $ 16.95 Old $ 23.95 $ $ 23.95 SAVINGS $ 7.00 CINEMAX DOT TOTAL New $ 9.95 $ 5.00 $ 14.95 Old $ 21.95 $ $ 21.95 SAVINGS $ 7.00 SHOVVTIME DCT TOTAL New $ 9.95 $ 5.00 $ 14.95 Old $ 21.95 $ $ 21.95 SAVINGS $ 7.00 STARZ! (}CT_ TOTAL New $ 9.95 $ 5.00 $ 14~95 Old $ 21.95 $ $ 21.95 SAVINGS $ 7.00 *Old a la carte pricing included the following: Premium Channel Sew/ce, Digital Communications Terminal (DCT), Digital Link (Program Guide, Digital Music, PPV Access), and Digital Access ,Service A La Carte Combinations: Family Cable Buy-Through Family Service, Digital Converter, 1 Pay Channel Service Price Service price I t Service Price Service I Price FAMILY $ 36.95 FAMI~-- $ 36.95 I 1FAMILY $ 36.95 FAMILYI $ 36.95 DOT $ 5.00 DCT $ 5.00j IDCT $ 5,00 DOT $ 5.00 -lBO $ 11.95 CINEMAX $ 9.95 ISHOWTIME $ 9.95 STARZ! $ 9.95 Total $ 53.90 Total $ 51.90 Tota $ 51,90 Total $ 51.90 Family Service, Digital Converter, 2 Pay Channels Service Price Service Price Service Price --AMILY $ 36.95 FAMI~ $ 36.95 FAM~E~ $ 36.95 DCT $ 5.00 DCT $ 5.00 DCT $ 5.00 -[BO $ 11.95 HBO $ 11.95I HBO $ 11.95 CINEMAX $ 9.95 SHOWTIME $ 9.95 STARZ! $ 9.95 Total $ 63.85 Total $ 63.85 Tota $ 63.85 Family Service, Digital Converter, 2 Pay Channels Service Price Service price :AMILY $ 36.95 FAMILY $ 36.95 DCT $ 5.00 DCT $ 5.00 CINEMAX $ 9.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 STARZ! $ 9.95 Total $ 6'1.85 Total $ 61.85 Family Service, Digital Converter, 2 Pay Channels Service Price FAMILY $ 36.95 )CT $ 5.00 SHOVVTIME $ 9.95 STARZ! $ 9.95 Total $ 6'1.85 Family Service, Digital Converter, 3 Pay Channels Service Price Service Price Service Price Service Price :AMILY $ 36.95 FAMILY $ 36.95 FAMILY $ 36.95 FAMILY $ 36.95 DCT $ 5.00 DCT $ 5.00 DCT $ 5.00 DCT $ 5.06 HBO $ 11.95 HBO $ 11.95 -[BO $ 11.95 SHOWTIME $ 9.95 CINEMAX $ 9.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 CINEMAX $ 9.95 SHOWTIME $ 9.95 STARZ! $ 9.95 STARZ! $ 9.95 STARZ! $ 9.95 Total $ 73.80 Total $ 73.80 Total $ 73.80 Total i $ 71.80 Family Service, Digital Converter, 4 Pay Channels Service Price FAMILY $ 36.95 DCT $ 5.00 HBO $ 11.95 CINEMAX $ 9.95 SHOVVTIME $ 9.95 STARZi $ 9.95 Total ! $ 83.75 Mediaco December 16, 2002 Dcar Valued Customer, Mediacom and Iowa City officials recently discussed the concerns raised by our customers and the City regarding the changes made to the Iowa City system in February 2002. As a result of these discussions, Mediaconr has agreed to restructure our a la carte premium service pricing. The new structure lowers the cost for a la carte prenfium pay services such as HBO, Showtime, Cinemax and Starz/gncorc. This new offer provides customers with the choice of taking a digital package to receive the premium pay services or purchasing premium pay services on a more affordable a la carte basis. For example, the a la carte premium option allows customers to order basic cable for $I3.9I, 1-1BO for $11.95, aud primary equipment (digital converte~9 rental for $5.00, plus taxes and fi'anchise fees. The a la carte level of HBO in this example will not include the Digital Program Guide, Music Choice digital music service, access to pay-per-view movies and events, or any of the other features or benefits of the Digital Converter such as parental controls, favorite channel selection, and programming reminders. These services could be added by subscribing to the Digital Link service for an additioual $3.00 per rnonth. A full scbedule of channel and packaging options is enclosed. Mediacom will provide customers who upgraded between February 2002 and December 10, 2002 to a digital package that included premium pay services the special opportunity to switch to the a la carte premium services and receive a pro-rated credit of the difference between the package price and the new a la carte price. This offer is effective for 45 days from the date of this letter. Customers choosing to take advantage of this offer and who discover that they would like to have the digital package services and pricing restored will relinquish the credit received on a pro-rated basis for a 90-day period. Please call our local office at 351-3984 if you elected to receive a digital package with premium services since February 2002 and are interested in this option. Mediacom is also including a $10.00 coupon that can be used towards an upgrade to any service that Mediacom offers. This coupon is good until September 30, 2003 and may be used for additional digital converter rentals. Coupons cannot be applied to current monthly services but may be used in conjunction with any other special offers or promotions Mediacom may offer over this period. Please contact our local office at 351-3984 if you have auy questions. We sincerely hope that the chauges we have madc to our service offcring, as well as other offers we have made in this letter, will convey Mediacom's genuine commitment to provide quality products and services to our customers in Iowa City. Sincerely Randy D. Brown Regional Vice President Option Option Monthly Equipment Rental Digital Converter with Remote $500 Broadcast Basic Family Cable Digital Music and PPV access. Includes channels 2-22 ................. $13.91 Includes channels 2-78 ................... $36,95 Digital Link (Requires Digital Converter) $3.00 OR Includes Interactive Guide, Digital Music Family Cable Digital Packages a~dRPV.ccess Includes channels 2-78 ................... $36.95 ~ Requires Family Cable and Digital Converter Digital a la carte (Digital packages include 14 Digital Access Premium Options* channels, 36 PPV Channels, 45 Digital Music sRequires Broadcast Basic or Family Cable Digital Link) Digital converter Digital Access . ,$8.00 Digital Choice ................. · ................. $1500 Digital Premium Groups Includes I Digital Premium Group with HBO ............................ $1800 Digital HBO (8 Screens) $11.95 Digital Showtime (12 screens) $9 95 Digital Value $2400 with HBO ............................. $27.00 Digital Premium Group Combinations ~odudes 3 Digital Premium Groups with HBO ................................. $33.00 Digital HBO/Showtime {20 screens) ................ $1995 Total Digital ............................... $38 00 Digital H,O/Cin.max (12 sci..ns) .............. $19.95 Includes allDigitalPremiurn Groups Ma acom Digital HBO/Starz/Encore (25 screens) ........ $19.95 Digital Showtime/Starz/Encore (29 screens) ............. S17.95 Add to any package. Includes 26 Special Interest channels /- -.~ Digital .BO/Showtlme/Cinemax (24 screens) ............... $27.95 t 31 9-351-3984 Digital HBO/Starz/Encore/Cinemax (29 screens) .......... $2795 Broadcast Basic HBO premium Group 22 Channels 8 Screens KGAN (CBS) Cedar Rapids Home Shopping Network CNBC Public Access HBO HBO 2 KPXR (PAX) Cedar Rapids KWWL (NBC) Waterloo Infovision C-Span HBO West HBO 2 West KANKB (WB) Iowa City KFXA (FOX) Cedar Rapids Pubifc Schools Channel C-Span 2 HBO Signature HBO Family Library Channel University of iowa Television KCRG (ABC) Cedar Rapids ShopNBC HBO Si9nature West HBO Family West WGN Government Access KIlN (PBS) Iowa City TV Guide Channel ©VC Kirkwood Educational Channel Cinemax PremiUm Group Family Cable 4Screens 43 Channels + 22 Broadcast Basic Channels Cinemax MoreMax Cinemax West MoreMax West FOX News Channel Sci-Fi Turner Classic Movies Disney Hallmark Channel Cartoon Network ESPN 2 FOX Sports Chicago Oxygen Univision Court TV Comedy Central TV Land USA BET Bravo MTV MSNBC CMT HGTV Showtime Premium Group CNN Lifetime Travel Channel ABC Family Discovery Channel Weather Channel Food Network TNN 12screens A&E FX Headline News History Channel Nickelodeon TNT The Learning Channel TBS Showtime Showtime Extreme ESPN VH1 American Movie Classics TBN Showtime West Showtime Extreme ~A/est E! Animal Planet Speed Channel Women's Entertainment Showtime Too The Movie Channel Showtime Too West The Movie Channel West Showtime Showcase TMC Extra Showtime Showcase West TMC Xtra West No99in Game Show Network Tech TV Lifetime Movie Network starz !/Encore Premium GroUp Discovery Kids BBC America FOX Sports World FOX Movie Channel i 17 $creer~s Goodlife TV Nick Games & Sports Golf Channel Trio The Science Channel Outdoor Channel StarT! Encore Love Stories StarT! ~/Vest Encore Love Stories West Starz! 2 Encore Mystery StarT] 2 West Encore Mystery West Black StarT! Encore True Stories Encore Action Encore True Stories West Encore Action West Encore Westerns Encore Encore Westerns West Encore West Toon Disney VH1 Classic Rock National Geographic Outdoor Life Newsworld International BET on Jazz Discovery Wings VH1 Country B,oombergNews OiscoveryHea,th Sou, MTVHits Medi ' MTV 2 Health Network A&E Biography Much Music Ovation Inspirational Life History Channel international Independent Film Channel E! Style International Channel Wisdom Discovery Home & Leisure Discovery Civilization G4 319-351-3984 City of Iowa City MEMORANDUM DATE: February 3, 2003 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: Budget Work Session, January 27, 6:30 PM, Emma J. Harvat Hall Council: Champion, Kanner, Lehman, O'Donnell, Pfab, Vanderhoef, Wilburn Staff: Atkins, Helling, O'Malley, Karr, O'Neil, Kopping, Lewis, Herting Tapes: 03-06, Side 2; 03-12, Both Sides; 03-11, Side 1 (A complete transcription and materials distributed are available in the City Clerk's office) BoardslCommissions/Orqanizations Budget Requests Airport Commission - Alan Ellis Senior Center Commission - Jay Honohan Library Board - Lisa Parker Iowa Arts Festival - Vicki Jennings Mud River Music Cooperative (Local Music Festival) - JP Claussen Neighborhood Council (Movies In The Park) - Jerry Hansen Extend the Dream Ftd. (Uptown Bill's Labor Day Fair and Flea Market) - Tom Walz Kidsneeds (Chili Dog Fair) - Lynne Lanning Tack-FU Productions (True School '03) - Tim Tack Iowa Children's Museum (ICM for Everyone) - Deb Dunkhase; Sheila Boyd Englert Civic Centre Group (Englert Night Out, Road Races)- Barbra Kamer Eagle's Flight (Healthy Me Health Fair and Unsung Heroes) - Dr. Denita Gadsen Johnson County Historical Society - Margaret Wieting Chamber Singers (Bach Festival) - James Petersen PATV (Iowa City Promenade) - Josh Goding; Rene Paine Parks & Recreation Commission - Matt Pacha; Terry Trueblood DTA (Holiday Lighting, Just Jazz, Friday Night Concert)- Julie Foreman Old Capitol Rowing Club & IA Men's Rowing Team (Iowa Sprints)- Erin Martin; Kris Muhl Iowa City Jazz Festival - Steve Grismore Conner Center (ADA Celebration) - Karen Kubby; Harriet Gooding Prairie Voices Productions (Iowa Women's Music Festival) - Laurie Haag The Mayor noted the final budget session is scheduled Tuesday, January 28, at 6:30 in Harvat Hall. Meeting adjourned 9:40 PM. City of Iowa City MEMORANDUM DATE: February 5, 2003 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: Creative Economy Unconference The attached information was provided by Shaner Magalhaes, State Historical Society. Feel free to contact him with any questions you may have at 335-3927. No suits. No most luggage. Non-profit And we're bringing Florida to you. Organization U.S. Postage Plan to attend PAID Des Moines, IA the Permit No. 1648 Creative Economy Unconference March 5 with Richard Florida author of "The Rise of the Creative Class and How It's Transforming Work, Leisure, Community and Everyday Life" and The unveiling of Iowa's first Creative Economy Study at the State Historical Building in Des Moines But wait! There's more... · What can we learn from the Paducah, Ky. Artist Relocation Program? · Sohodojo: Ideas on "nanocorps" and free-agent entrepreneurs Registration required. Visit www.culturalaffairs.org for conference updates and registration information. p.s. Join us for Cultural Advocacy Day Mamh 61 Unconference sponsored by the Iowa Department of Cultural Affairs and partners. Florida's City of Iowa City IP9 MEMORANDUM DATE: February 5, 2003 TO: City Council FROI4: Steven Nasby, Community and Economic Development Coordinator~/~Vb ~ RE: Tnterest Rate Policy for CDBG\HOrVlE Funded Housing Projects At the work session on February 3, Council discussed the interest Rate Policy for CDBG\HOME funded projects. This discussion focused on activities that provide homeownership opportunities to Iow-moderate income persons. Following the discussion, it is my understanding that the consensus of the Council was to revise the interest Rate Policy for CDBG\HOHE funded housing projects as follows: · The interest rate for rental housing projects was unchanged. This policy states that the interest rate for rental housing will be 1% for non-profit projects and prime rate minus two points for for-profit projects with an amortization period up to 30 years or the period of affordability, whichever is less. · The interest rate for homeownership projects will be 1% simple interest in the form of a Conditional Occupancy Loan (a loan that must be paid in full when the owner sells, transfers title, moves or rents the property). While the Conditional Occupancy Loan is in effect, simple interest will accrue but no payments will be made by the property owner. The term of the Conditional Occupancy Loan will not exceed 20 years. At the end of the 20-year period, the homeowner will have the option to payoff the Conditional Occupancy Loan (accrued interest and principal) or enter into a :tO-year amortized loan with the City for the repayment of the outstanding balance due. This revised policy will apply to projects beginning in FY04. The Council also indicated that it would re-consider the interest rate policy for homeownership projects if it is demonstrated that homebuyers are unable to obtain private financing because of the structure of the City's lien. if you have any questions please contact me at 356-5248. Cc: City Hanager Karin Franklin, Director of Planning and Community Development Housing and Community Development Commission City of Iowa City MEMORANDUM DATE: February 3, 2003 TO,' City Council FROM: Steven Nasby, Community and Economic Development Coordinator~''j[~'~ ~ RE: Policy for the Recapture of CDBG\HONE Funding Over the past year, the U.S. Department of Housing and Urban Development (HUD) has emphasized the timely expenditure of Community Development Block Grant (CDBG) and HOME Investment Partnership program (HOHE) monies. The City of Iowa City is well within the regulatory requirements for both CDBG and HONE. To insure continued success with the implementation of these programs the Housing and Community Development Commission (HCDC) discussed and formulated a recapture of funds policy for unsuccessful or delayed projects. At their January 16 meeting, HCDC recommended the following policy for Council consideration: Unsuccessful or Delayed Projects Policy From time to time, there may be Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as presented to the Housing and Community Development Commission (HCDC). These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low-moderate income household for housing, jobs and services within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year '04 projects beginning July 1, 2003: 1. All CDBG and HOME projects will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. This provides the recipient and the City of Iowa City approximately 90 days following the start of the fiscal year to conmait the CDBG and/or HOME funding. Should a recipient fail to meet this threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the fi~nds. 2. All CDBG projects (except applicants for LIHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME projects will expend their funds on a timely basis per the applicable HOME regulation. Should a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. February 3, 2003 Page 2 3. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the funds. 4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round irrmaediately following the allocation of local CDBG/HOME funds, and the project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds. If approved by the City Council, this policy would go into effect July 1, 2003 for each project undertaken by a CDBG "subrecipient" (e.g. Elder Services, Inc.) and/or HOHE "recipient" (e.g. Greater Iowa City Housing Fellowship). To formally approve this policy, staff will prepare a resolution for the February 18 City Council meeting. If you have any questions please contact me at 356-5248. City of Iowa City MEMORANDUM Date: February 4, 2003 To: City Council From: Andy Matthews, Assistant City Attorney.~'~''~/~'/ Re: Joint Feasibility Study for Municipal Electric Power This update on the City's involvement in and efforts relating to a joint feasibility study for municipal electric power is provided in advance of the City Council's February 18 meeting, where it will consider a resolution authorizing the City to participate in and contribute to the costs of such a joint feasibility study. To summarize the status of this matter, participants in this effort prepared and sent out Requests for Proposals to numerous consultants that had previously expressed an interest in submitting such a proposal. After receiving and evaluating all proposals submitted, the group then selected two firms to interview, and thereafter selected Latham & Associates Inc., of Cedar Rapids, Iowa to per[orm the feasibility study. A copy of the final draft of the Consultant Agreement, proposal, budget and fee structure, and table of fixed costs for participants is attached to this memo for your review. The total cost of the feasibility study is to be $$161,539, and is based on a $4,000 fee per city, plus a fee of $0.50/ capita of population for each city. There are eighteen cities considering participation in this study. Iowa City and the University of Iowa have agreed to share the cost of Iowa City's portion of the study, as the feasibility study results will have significant general applicability to both entities. The total cost for Iowa City and the Univereity will be $35,514, and we are negotiating with the University as to their share of such costs. This fee does not include expenses for local presentation of the findings by the consultant. Such activity would be billed to each entity on an hourly basis. City-specific work, not contemplated as part of the general study will also be billed on an hourly basis. The City Council previously expressed an interest in studying energy efficiency issues and activities as part of a municipalization effort. If the feasibility study results are favorable, energy efficiency issues can be explored at a later date. There is a February 21, 2003 deadline by which cities must decide whether to participate in the study. It is anticipated that the feasibility study will take between three and for months to complete. If the study demonstrates potential for significant savings, cities may thereafter schedule elections to authorize the establishment of municipal utilities. Iowa Code §476.23(1) provides that any municipal corporation, after being authorized by a vote of the people, may file a petition with the board requesting a certificate of authority to furnish electric service to the existing point of delivery of any customer a~ready receiving electric service from another electric utility. If an objection is filed, the board (iowa Utilities Board or "IUB") would have to determine that such service is in the public interest, including consideration of any unnecessary duplication of facilities, and shall grant this certificate in whole or in part, upon such terms, conditions, and restrictions as may be justified. The Code further provides that any certificate issued would require that the petitioner pay to the electric utility presently serving the customer the reasonable price for facilities serving the customer. State Code further requires that this price determination include consideration of the cost of the facilities being acquired, any necessary generating capacity and transmission capacity dedicated to February 6, 2003 Page 2 the customer, depreciation, loss of revenue, and the cost of facilities necessary to reintegrate the system of the utility after detaching the portion sold. The lUB would also designate a service area for the municipal utility. I am informed that legislation may be considered in the Iowa House of Representatives which would block formation of any new municipal utilities currently served by another utility if that utility objects. I have no specifics on this possible legislation, but if passed, it could dramatically affect whether such municipalization efforts move forward. Feel free to call me if you have any questions. cc: Stephen Atkins, City Manager Dale Helling, Assistant City Attorney Eleanor Dilkes, City Attorney Marian Karr, City Clerk Chuck Schmadeke, Public Works Director Rick Fosse, City Engineer IOWA ASSOCIATION OF MUNICIPAL UTILITIES Public Power Feasibility Study Decision Packet January21,2003 Contents 1. Decision packet summary (see below) 2. Requested action and deadline (see below) 3. Background information on the joint study (see below) 4. Background information on municipalization (see below) 5. Contract with Latham & Associates, including the following attachments: a. List of cities considering participation in the joint study b. Latham & Associates' Proposal for Joint Municipalization FeasibiliO, Study c. Budget d. Table &contract costs with fixed costs, by city e. Incomplete listing of supplemental city-specific tasks, the description and cost of which may be added to the contract before being signed 6. Agent resolution authorizing IAMU to contract for the study on behalf of the city Summary Information 1. Decision packet summary. With the enclosed information, the city should have the necessary information to determine whether to participate in the municipalization study. You know the scope of the study and the methodology to be used, the name and qualifications of the consultant, and the not-to-exceed cost for your city and other participants. Details of what the report and methodology are described "Proposal for Joint Municipalization Feasibility Study," which is incorporated as Appendix C of the contract. The proposal includes this description of the conclusions to be provided (see page 8): £ffa4 will present conclusions as to possible cost savings, benefits and the feasibility of forming municipal electric utilities as follows: 1. Estimated potential savings by city (and by customer class within the city) as the difference between pro forma incumbent electric revenues and the prospective municipal utility's total cost of service (and class cost of service). 2. L&A will present built-up unbundled costs, including power supply costs by customer class, which will provide a valid basis for sensitivity analyses when considering consequences of possible industry restructuring. 3. Conclusions as to possible cost savings, benefits and feasibility of forming municipal electric utilities will be included in the final report and will be presented to each individual city upon request. Please note that your fixed cost does not include expenses for local presentation of the findings by the consultant. Periodic updates and presentation of the final studies will be made at meetings held at the IAMU office in Ankeny. Assistance with the local presentation may be obtained from IAMU or, at rates included in the proposal, by the consultant. Note that IAMU has agreed to provide certain information to facilitate the study, including a legal analysis of the municipalization pmcess, and data from recent power supply and generation studies. IAMU expects cooperation f~om participating cities in provid'mg additional information that will be helpful in refining cost and savings estimates. Examples of the additional information useful in the study include: identification of the largest energy users based on city records of large water users, city maps, and street fighting bills. Also note that the contract, at numbered paragraph 15, provides for the option of contractor errors and omissions insurance coverage, but only if the cost for the coverage is included in the contract price. The issue was discussed at some length among the city representatives who negotiated the contract and, based on the nature of the report, e.g., no engineering design or conStnlction. Based on that discussion, IAMU does not intend to require such coverage. 2. Requested action and deadline. By Friday, February 21, 2003 the city must decide whether to participate in the study. To participate, the city must forward to IAMU a duly approved copy of the agent resolution (or alternative form of authorization that has been agreed to by IAMU in advance). The agent resolution gives IAMU the authority to act as the city's agent in contracting for the study at the agreed-to price. 3. Background information on the joint study. In October 2002, the Iowa Association of Municipal Utilities (IAMU) issued a request for proposals (RFP) for a joint feasibility study. The study will assess the impact on local electric rates in each city that could be expected from establishment of municipal electric utilities. Ten responses were received from well-qnalified national and regional consulting firms. Representatives of the cities scored the proposals and selected two firms to interview on January 10. Following the interviews, a contract was negotiated with an Iowa- based consulting firm - Latham & Associates of Cedar Rapids. Through the joint RFP process the cities have agreed to the scope of the studies and the selection of the contractor. Each city now has a not-to-exceed price for its part of the study. Final commitments to participate will be made by February 21, 2003. The studies are expected to take between three and four months to complete. The original group, which has grown to 18 cities, now includes: Dunlap, Elma, Fort Dodge, Guthrie Center, Inwood, Iowa City and the University of Iowa, Kalona, Osceola, Perry, Rolfe, Sheldon, Shell Rock, Titonka, Vedic City, Waukee, Wellman, and West Des Moines. If the feasibility study shows the potential for sufficient savings, a city would likely schedule an election to authorize establishment of a municipal utility. If voters approve, a business and financial plan would be developed and a petition for a certificate of authority filed with the Iowa Utilities Board (1UB). The IUB's responsibility is to weigh public interest in the proposal, set a price for the incumbent ufility's distribution facilities, and designate a service area for the municipal utility. 4. Background information on Municipalization. A number of factors have lead to the resurgence of interest in the establishment of municipal electric utilities in Iowa and across the nation: I~l The difference in the rates of municipal utilities and those of private or investor-owned utilities is a big reason in considering a municipal utility. On average, residential rates of Iowa's private utilities are 36 percent above the rates of the state's 137 municipal electric utilities. [] Besides offering lower rates, municipal utilities on average transfer an mount equal to about 6 percent of their gross revenues to other city funds, enabling cities to hold down property taxes and make investments in lnfraslntcture, programs, amenities, and recreational facilities that improve the community. [] As private utilities have closed local service centers and reduced the number of service personnel, cities increasingly recognize the value of utility jobs both for reliable service and to the local economy. [] Citizens also look to municipal utilities as a means of gaining local control over rates, policies, generation resources, and investments in energy efficiency and renewable energy. [] The failure of deregulated energy markets in California and other states raises questions about the value of competition in what are fundamentally monopoly industries. In these markets, municipal utilities shelter their citizens from higher costs, price spikes, and enormous losses attributed to corruption and the abuse of market power. In some states that have experimented with deregulation, cities are demonstrating their unique ability to aggregate the interests and electrical loads of residential and commercial customers. Cities are also considering municipal electric utilities at this time because the legal and regulatory conditions appear to be favorable. Though a number of new municipal gas utilities have formed in recent years, the newest public power system in Iowa dates back to 1976 (Aurelia). Sheldon attempted to form a municipal electric utility in 1989-90, but was blocked by the decision of the IUB. At the time, the indnstry was being consolidated through mergers and acquisitions and the IUB was hostile to the formation of new municipal utilities - an action viewed by the board chairman as running contrary to industry trends. Additionally, the region had a substantial excess of generation capacity and the IUB decision in the case would have required Sheldon to compensate Iowa Public Service for "stranded generation" - generation built to serve Sheldon that would no longer have a buyer. The situation has changed dramatically. Savings promised through mergers and deregulation have not materialized and the excess generation from plants built in the 1970s and early '80s has been used up through growth in demand. Additionally, many generating plants in the region are nearing the end of their useful life. Besides the 18 cities considering a joint feasibility study, two others- Emmetsburg and Everly- have already completed feasibility studies. These cities, as well as Vedic City, have held elections in which voters approved establishment of municipal electric utilities. Vedic City-Iowa's newest city - received unanimous voter approval to establish municipal electric, gas, water, and telecommunications utilities. None of these three cities has yet filed for a certificate of authority from the IUB. 3 In addition to interest in public power, several Iowa cities are also conducting or have completed feasibility studies to establish municipal gas utilities. These cities include: Alton, Aurelia, Cherokee, Mapleton, Sheldon, and Sibley. The formation of new municipal utilities is important to all Iowa Cities, regardless of their current interest in the process. Iowa has a very weak franchise law and payment of franchise fees is a rare exception in this state. The one way that cities can gain any leverage over a private utility to relocate lines, participate in economic development activities, or provide other community benefits is by displacing the franchise holder with a municipal utility or by threatening to do so. To be useful, the threat must be credible. To be c~edible, new municipal utilities must form from time to time. Private utilities are expected to attempt to block "municipalization." Besides rigorous opposition to local ballot measures, legislation to make the process more expensive or more difficult is likely to be introduced this session. Preserving the fight of citizeus to form their own community-owned, locally controlled, not-for-profit utilities is a right that must be defended. 4 RESOLUTION NO. Resolution Authorizing Participation In .dgreementfor Services of Consultant Regarding Joint Study of Feasibility of Establishing Municipal Electric Utilities WHEREAS, City Council bas approved an investigation of the feasibility of establishing a municipal electric utility; and WHEREAS, the City has joined with other cities to jointly retain a consultant to conduct the feasibility study; ,and WHEREAS, the Iowa Association of Municipal Utilities (/AMU) has agreed to enter the agreement for services as agent for the cities; and WHEREAS, it is necessary to authorize I/MU to serve as the City's agent for the Agreement for Services; NOW THEREFORE BE IT RESOLVED, by the City Council of the City of ., Iowa: That the Executive Director of the Iowa Association of Municipal Utilities is hereby authorized to serve as agent for the City in securing services ora consultant through an Agreement for Services. (A copy of said Agreement, including the City's share of the cost for the services is attached to this Resolution). PASSED AND APPROVED, this day of ,2003. Mayor ATTEST: Clerk 5 AGREEIVIENT FOR SERVICES OF CONSULTANT THIS AGREEMENT, made and entered into this 17th day of January, 2003, by and between the Iowa Association of Municipal Utilities (IAMU) for and on behalf of the Study Participants listed in Appendix A, and Latham & Associates, Inc., of Cedar Rapids, Iowa, (Consultant). WHEREAS, each of the Study Participants has determined to investigate the feasibility of establishing a municipal electric utility;, and WHEREAS, the Study Participants have agx~xl to jointly retain the services of the Consultant through IAMU as their agent; and WHEREAS, in recognition of the broad scope and unprecedented character 0fthe contemplated joint feasibility study special care must be taken by all parties to share relevant information on a continuing basis for the duration of the contemplated study;, and WHEREAS, the Consultant is willing to timely complete the work specified in this Agreement in a manner diligently conducive to the sharing of information with IAMU and the Study Participants; and WHEREAS, the parties wish to memorialize the entire agreement between the parties regarding the subject mater of this Agreement, which Agreement supersedes all previous communications and representations, whether written or oral, with respect to the subject matter of this Agreement; NOW THEREFORE BE IT REMEMBERED that for the mutual promises, covenants and considerations herein contained the parties have entered into the following agreement, to wit: 1. The foregoing recitals are part of this Agreement and shall be construed as substantive portions of this Agreement and as aids in construction. 2. The scope of services to be provided by Consultant are those specified in Consultant's Proposal for Joint Municipalization Feasibility Study Presented to Iowa Association of Municipal Utilities on October 25, 2002. A copy of said Proposal is attached to this Agreement as Appendix B and by this reference incorporated into this Agreement. 3. The fees and charges to be paid Consultant for services identified in Appendix B are those specified in the "L&A PERSONNEL and PROPOSED PRICE" in Appendix C and the allocation of Study Participant costs in Appendix D. 4. Additional services for individual Study Participants and associated costs are identified in Appendix E. 5. The retention of Consultant for the purposes of the Agreement shall be as an independent contractor. 6. No part of the work arising under this Agreement shall be assigned by either 1 party to any person, firm or corporation without reasonable notice to and consent of the other party. Such consent shall not be unreasonably withheld especially with regard to the use of subcontractors specified in the Proposal. 7. No failure or delay by either Party in exemising any right, power, or privilege under this Agreement shall be deemed a waiver thereof or preclude exercise of any other or further right, power, or privilege hereunder. 8. Information identified in Appendix B as being provided by IAMU shall be made available to the Consultant on a timely basis. IAMU agrees to furnish all reasonable assistance in obtaining information from the Study Participants and such other information as the parties mutually agree. 9. Information upon which the findings of the study are based, shall be made available by the consultant upon reasonable request by IAMU or the Study Participants. 10. The Consultant agrees to furnish, upon termination or completion of this Agreement and upon demand by IAMU, copies of all basic notes and sketches, charts, computations, and any other data prepared or obtained by the Consultant pursuant to this Agreement without cost, and without restrictions or limitation as to the use relative to specific projects which may be undertaken by IAMU or any of the Study Participants. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa. 12. In order to be valid, any amendment to this Agreement, or change in the conditions or terms of this Agreement must be in writing and executed by authorized representatives of the parties. 13. Each of the provisions of this Agreement shall be enfomeable independent of any other provision of this Agreement. 14. The term of this Agreement shall be as specified in the Proposal. Should IAMU terminate this Agreement, the Consultant shall be paid for all work and services performed up to the time of termination. Either party may terminate this Agreement, with or without cause, upon seven (7) days written notice to Consultant. IAMU may withhold payment in order to secure completion of tasks specified in the Proposal. 15. If requested and the cost is paid by IAMU, Consultant agrees at all times material to this Agreement to have and maintain professional liability insurance coveting the Consultant's liability for the Consultant's negligent acts, errors and omissions to IAMU and the Study Participants in the sum of $1,000,000. 2 WARRANTY OF AUTHORITY: The signatories to the Agreement represent and warrant that they have full and complete authority to enter into the Agreement on behalf of the parties they assert to represent. IOWA ASSOCIATION OF MUNICIPAL LATHAM & ASSOCIATES, INC. UTILITIES By: By: Robert Haug Robert J. Latham Executive Director Partner 3 APPENDIX A Subject to written confirmation to IAMU, the following Cities and the University of Iowa, constitute the Study Participants 1. Dunlap 2. Elma 3. Fort Dodge 4. Guthrie Center 5. Inwood 6. Iowa City & University of Iowa 7. Kalona & Keokuk 9. Osceola I0. Perry 11. Rolfe 12. Sheldon 13. Shell Rock 14. Titonka 15. Vedic City 16. Waukee 17. Wellman 18. West Des Moines 4 Appendix B - Latham Pwposal Latharn & Associates' proposal was submitted electronically to IAMU on October 25 and is attached hereto. APPENDIX B - Latham & Associates Proposal Proposal for Joint Municipalization Feasibility Study Presented to Iowa Association of Municipal Utilities October 25, 2002 LATHAM & ASSOCIATES, INC. 150 FIRST AVENUE NE w SUITE 300 CEDAR RAPIDS, IOWA 52401 TEL: 319-365~6488 FAX: 319-365-7086 E-MAIL: ERVINLR~WORLDNET.ATT.NET LATHAMPU~AOL.COM Lsth~m & A~S$O~teS, [I1¢. 10-25-02 Proposal for Joint Municipalization Feasibility Study Overview of Proposal This proposed Scope of Work is in response to the desire of the Iowa Association of Municipal Utilities (IAMU) to jointly investigate the feasibility of establishing new municipal electric utilities in Iowa. Latham & Associates, Inc. (L&A) will work cooperatively with IAMU to achieve economies of scale, integration of information bases and utilization of diversified experiences and skill sets. As an Iowa-based consulting finn, L&A has specific knowledge and information on Iowa/FERC electric regulation, customer and investor- owned utility operations and practices, and power supply markets that will be beneficial in this study. L&A has in-depth knowledge regarding many of the participant cities and the electric utilities operating within their corporate limits. L&A is actively involved in the prospective changes in electric rates across service territories of Interstate Power & Light (IPL, formerly Alliant) and MidAmerican Energy systems. Finally, L&A is eontnuously involved in the market for wholesale electric power and the current challenges for transmission in Iowa and the upper Midwest. L&A will provide, for each city, an estimate of net savings that can reasonably be expected to accrue through municipalization under stated assumptions. L&A will work with IAMU to achieve overall quality study results and efficiency through a mutually agreed division of work. This proposal assumes that IAMU will provide replacement property tax data by taxing district, or alternatively L&A will research and provide the property tax data. IAMU intends to furnish power supply price data, legal analyses, representative Iowa municipal data for estimating facilities replacement costs, O&M expenses, financing, and other costs of operation. IAMU and L&A will cooperatively develop study assumptions and parameters. IAMU's power supply cost data are based on various IAMU studies. Rate data from incumbent electric utilities and the status of the various city franchises will be available through IAMU. IAMU will provide an analysis of the legal precedents and assumptions under which system acquisition would occur. These data will be supplemented by L&A as relevant. It is important that this study address major changes in the power industry subsequent to the City of Sheldon case and how those industry changes are expected to affect long-term electric prices and reliability of service. The industry landscape is considerably different today than it was in 1990 when the City of Sheldon investigated municipalization of the Iowa Public Service Company (IPS) local electric system in Sheldon. La, ham & Associates, Inc, 10-25-02 Obviously, IPS no long?r exists and is survived by a merged utility, MidAmerican Energy Company. The transmission system and regulatory environment are materially different today. The surviving merged Iowa utilities enntiune to have significant price differentials across their service territories, a situation that will likely be changing and should be addressed. FERC jurisdictional changes in transmission structure and operations and the integration of the Iowa investor-owned utilities have resulted in an entirely new industry structure over the past decade. Legislation, regulation and the electric power markets have opened greater opportunities for Iowa municipal utilities. This is particularly the case for new Iowa-based electric generation, jointly owned and operated electric generation and transmission, collective negotiation of bulk power contracts, and the prospect for investment in the regional transmission system. Since tho Sheldon case, conditions have greatly improved for nOn-discriminatory access to the transmission grid for municipal electric utilities. Generation technology and the mix of fuels for power supply fuels have changed. The economic and political environments for renewable energy sources have created more power supply options for municipal electric utilities. As important as any change for economic feasibility pulposes, MidAmerican and IPL no longer have significant available generation that could result in stranded costs to be borne by newly formed municipal electric utilities. This study will provide information critical to each prospective municipal utility with regard to examining locality-specific utility costs and sources of revenue for operations of a utility on a sound financial basis. Each city must examine how its prospective retail rates compare to projected electric retail rates of the incumbent electric utility, with due consideration given to future elimination of rate differentials across the MidAmeriean and IPL systems. Each city has it own mix of residential, business and industrial electric customers and all of these have differing electric usage characteristics, which can materially impact the overall cost of serving electricity within ma individual community. The joint feasibility study will recognize that the incumbent utility rates are different for each customer class and may yield greater or lesser benefits to individual customer classes than for the community as a whole. The feasibility study will address unbundled cost components of generation, transmission and distribution system delivery for the prospective municipal utilities. The study will provide city-specific expectations for the likelihood of financial viability of the prospective municipal utility with and without the advent of retail electric customer choice in Iowa. If, as and when a city proceeds with municipalization, unbundled costs will be of major value in making decisions regarding adoption of cost-based electric retail prices, economic development, annexation, and the pricing of green power. Perhaps the greatest uncertainties for future power supply planning for prospective municipal utilities relate to power supply and transmission costs. L&A is 2 Latham & Associates, Inc. 10-25-02 knowledgeable of the regional and state electric transmission and generation systems, the transfer of transmission assets to TRANSLink regional transmission, the operations of transmission system operator MISO, future power supply costs, and MidAmerican and IPL retail rates. L&A currently provides consultation on these energy issues. We know the cities in Iowa, the culture, regulatory and legislative environments, and the local, regional and national electric industry. We are pleased to make this proposal. L&A Approach L&A strongly believes that an effective study requires client participation (IAMU and individual cities) to be consistent with the state and local market environments, cognizant of customers and other constituents, anticipating actions of incumbent utilities and reflective of local preferences and culture. IAMU and individual cities will need to commit time and resources to data collection and assembly, assessment of local influence factors and review of preliminary study results. We will involve IAMU to be sure each aspect of the project is focused on desired end- results. At the end, we want IAMU and each city to know why recommendations are right for them. We believe that a resulting consensus and ready explanation of each specific recommendation will make follow-up decisions prudent and more acceptable by the public, regulatory and judiciary bodies. End state results will include total costs of new utility operations through time, comparisons of those costs with the alternative of continuing electric service from incumbent utilities, and the net expected savings, on a net discounted present value basis to the prospective new utility and its customers. Items I A - C of RFP: Scope of Proposed Work The following items are included in L&A's Scope of Work for the Joint Feasibility Study:. o Assess Total New Utility Costs o Estimate New Utility Retail Revenues o Estimate Incumbent Utility Retail Revenues o Estimate Net Savings and Benefits o Sensitivity Analyses Assess Total New Utili~, Costs: The end-state total costs for each new municipal utility will include the following major costs: 1. Acquisition and start-up costs; 3 Latham & Associates, Inc. 10-25-02 2. Utility revenue bond debt service costs; 3. Power supply costs; 4. Operations and Maintenance (O&M) costs; and 5. Administrative costs. 1. Acquisition and start-up costs: a. Estimate value of distribution facilities within the city at original cost depreciated and at replacement cost depreciated (note some cities, including Iowa City and Kalona have more than one electric utility distribution system within the city limits: i. Estimate distribution system vintage and pole miles by voltage class in each city from city street maps and engineering general site assessment; ii. Develop engineering estimates of replacement costs per pole mile for various voltage classes; iii. Apply the Handy Whitman or other index for electric utility construction to estimate original cost; iv. Research the incumbent utility's average original cost per pole mile for various voltage lines; v. Apply unit cost data and average life estimates to the number of pole miles to develop depreciated original and replacement costs; and vi. Add an engineering estimate for depreciated original and replacement costs for substations principally servicing customers within the city. b. Provide an engineering assessment of anticipated costs for reinte- gration of incumbent utility's distribution system from on-site visits; c. Estimate facilities directly assigned to large customers, metering and SCADA facilities; d. Estimate incumbent stranded generation costs: i. Determine the original cost depreciated per kW of generation from the incumbent utility's most recent rate case and regulatory filing on power supply planning; ii. Determine the generation allocator used and approved by the Iowa Utilities Board (1UB) from the incumbent utility's most recent rate case; and iii. Add 15% for generation reserves to the new utility's estimated kW and apply the incumbent utility's cost per kW, as approved by the IUB. 4 Lnthnm & Associates, Inc. 10-25-02 e. Estimate new utility office, operation facility and furnishings costs; f. Estimate capita! equipment, including: line construction and maintenance inventory materials (poles, transformers, meters, cable etc.), equipment (trucks, trenchers, trailers etc.) and other utility system appurtenances and conventional utility equipment; and g. Recommend an appropriate level for capital reserves. 2. Electric utility revenue boud debt service costs: a. Research financing data from recent Iowa municipal electric utility issues from comparable size cities; and b. Request opinions from bonding companies and other financial institution data sources. 3. Power supply costs: a. Develop kWh and kW sales data in total and by customer class for the service area of each city.' i. Estimate, as a cross-test against publicly available utility data, the number of residential customers based on the number of city residential water meters and typical number of residential customers per population for other comparable Iowa municipal utilities, using IAMU data and data from several L&A Iowa municipal electric rate studies; ii. Estimate, as a cross-test against publicly available utility data, the number of commercial customers based' on the number of city commercial water meters, Chamber of Commerce membership and/or commercial phone book listings; iii. Estimate as a cross-test against publicly available utility data, the number of industrial customers based on a city count, number of city industrial water meters, Chamber of Commerce membership and/or commeroial phone book listings; iv. Estimate, absent utility data, the number and wattage of street and area lights based on incumbent utility's city street light invoice and typical data per population for other comparable Iowa municipal utilities; v. Cross check total kWh for each city against the kWh used in utility replacement property tax payment calculations, against incumbent utility's sales tax payment and average costs/kWh, and against comparable kWh/population statistics for existing municipal utilities; vi. Estimate class coincident and non-coincident peak kW by 5 Latham & Associates, Inc. 10-25-02 month and by annual peak demand using the incumbent utility's class load research data to; and vii. Estimate class on-peak and off-peak kWh by month and annually using incumbent utility's class load research data. b. Develop wholesale purchase power requirements from kWh adnd kW sales data by applying existing municipal and investor-owned utility typical distribution system losses to determine power supply requirements at the Delivery Point to the new utility. c. Develop projected generation and wholesale power supply prices, reflecting varying load factors for each city from prices supplied by the IAMU and supplemented by L&A sources, including any publicly available price data from: i. The Resale Power Group of Iowa (RPGI- October 2002 Power Supply for over 30 Iowa municipal and cooperative utilities and the Amana Service Company), ii. Publicly available power costs for South Iowa Municipal Electric Cooperative (SIMECA) iii. Illinois utilities' Market Values Index; iv. The Illinois Energy Consortium (over 1,400 Illinois public school facilities, with a total of over 75 mW of aggregated load), v. Large Energy Group (association of multiple Iowa industrial and municipal customers with a total aggregate load of over 300 MW), vi. Illinois industrial customers representing over 200 mW, and vii. The University of Iowa. d. Apply wholesale power supply prices to kWh and kW purchase power requirements; e. Add transmission and ancillary service charges for delivery to the Delivery Point, reflecting voltage differences at the Delivery Point for each city; and f. Add losses on the power supply fi.om the power supply source to the Delivery Point; 4. Operations and Maintenance (O&M) costs: a. The number of and cost of management, supervisory and staff positions will be based on comparable size Iowa municipal electric utilities for labor and labor overheads (distribution, substation, meter reading, billing and collections, administrative, stores-and materials management and general management); Latham & Associates, Inc. 10-25-02 b. Add representative insurance costs from IAMU and supplemented by L&A for property, liability, vehicle and medical; c. Add operation and maintenance and administrative costs, including: legal, engineering, financial, billing systems, employment/recruit- ment, and inventory management/stores; d. Add cost of expensed office equipment and operation's small tools and equipment; e. Add phone, intemet, sewer, trash, water, heating and electric utilities; f. Add in lieu of franchise tax transfers from the new utility to the city general fund; and Janitorial and miscellaneous expenses. Estimate New Utility Retail Revenues: The end-state' for each new municipal utility will include a total and estimated retail revenue for each customer class, based on a build-up of costs, which include the following major components: 1. Allocate non-power supply costs (debt service, capital reserves, O&M, administrative and general) by customer class; 2. Allocate power supply costs by customer class; 3. Allocate debt serviceby customer class; 4. Allocate annual capital reserves by customer class; 5. Sum total costs and capital reserves by customer class; and 6. Sum total costs and capital reserves by city, for all customer classes and apply applicable sales taxes to arrive at the estimated revenue requirement for the new municipal utility to be financially sound. Estimate Incumbent Utility Retail Revenues: The end-state for each city kvill include estimated incumbent utility retail revenue for each customer class and in total. The revenue will be built-up and checked with two estimating methods as follows: la Method-l: Apply incumbent utility's class-specific total revenue per kwh, as reported to regulatory agencies, to individual class kWh est'unates and sum to arrive at total estimated revenue to the incumbent utility;, lb Method-2: Divide the total city sales tax annual revenue paid by the incumbent utility by the sales tax rate to determine total annual incumbent utility revenues. 2. For each customer class, based on regulatory reports and tariffs on file with the Iowa Utilities Board, develop pro forma unit kWh and kW costs for the respective incumbent utilities, recognizing likely changes in current zone prices. ~tt~m & Associates, ~nc. 10-25-02 3. Apply pro forma estimated prices to annual kWh and kW sales for each customer class. The sales were estimated above for power supply requirements. Estimate Net Savings and Benefits: The end-state for each new municipal utility will include a total and estimated net savings in total and for each customer class, and will include: 1. The difference between estimated new utility retail revenues and estimated incumbent utility retail revenues provides an estimate of expected net savings. 2. Other benefits including local control of electric costs, local in-lieu of tax transfer to the general fund, a utility focus on local economic development, and increased local jobs. Sensitivi~, Analyses: L&A will build-up unbundled costs, including power supply costs by customer class, which will provide a valid basis for sensitivity analyses when considering consequences of possible industry restructuring. Newly formed municipal utilities should base retail prices to each customer class on an unbundled class cost-of-service study. Although electric customer choice is not foreseen in the near future, if unbundled purchased power supply costs are reflected in the new utility's retail rates, the new utility will maintain financial neutrality. That is, in the event of electric restructuring, if a customer of the new utility purchases its power from a third party, the new utility's power supply costs will be reduced by the amount of reduced revenue ffomthe customer, which non-supply or delivery revenues continue at the same level for third-party suppliers and for the utility supply. Item I-D of RFP: Conclusions and Presentation L&A will present conclusions as to possible cost savings, benefits and the feasibility of forming municipal electric utilities as follows: 1. Estimated potential savings by city (and by customer class within the city) as the difference between pro forma incumbent electric revenues and the prospective municipal utility's total cost of service (and class cost of service). 2. L&A will present built-up unbundled costs, including power supply costs by customer class, which will provide a valid basis for sensitivity analyses when considering consequences of possible industry restructuring. 8 Lathnm & As~ocintes, Inc. 10-25-02 3. Conclusions as to possible cost savings, benefits and feasibility of forming municipal electric utilities will be included in the final report and will be presented to each individual city upon request. Item I - E of RFP: Additional Information It would be helpful to the study process if IAMU and/or individual cities provided the following information: 1. Load data by individual customers, if over a threshold of I mW; 2. City maps showing city limit boundaries; 3. IUB service territory maps; 4. Data showing number of residential and commemial establishments within the city area; 5. Annual population, customer, kW and kWh growth assumptions in total and/or by class; 6. Copies of recent invoices for street lighting from incumbent utility; 7. Taxes for each city: a. Applicable investor-owned replacement property tax rates and kWh; and b. Assumed in-lieu of tax rates of newly formed municipally owned utilities for study purposes. 8. Assumed cost of debt and preferred debt service period for each city; 9. Assumed method of distributing costs of regulatory, legal and consultant expenses across participating cities for municipalization efforts; 10. Special contracts large customers have with the incumbent utility;, and 11. Recommended timing of municipalization. Item II of RFP: Qualifications & Expertise Latham & Associates is uniquely qualified and experienced to provide the requested study for IAMU. Fundamental to the study is the future cost of generated and purchased power. L&A is knowledgeable of these issues based on recent participation in MidAmerican's proposed Council Bluffs coal-fired generating unit ~4 and as consultant to multiple electric customers, including the Resale Power Group of Iowa (RPGI) and the South Iowa Municipal Electric Cooperative Association (SIMECA). L&A is familiar with potential future power purchase options available to Iowa municipal utilities. 9 Latham & As~-iates, Inc. 10-25-02 Latham & Associates, Inc. was formed in 1995 to provide an array of energy-related advisory services, strategic planning, opportunity assessment and engineering economic/ financial analysis to large commercial and industrial energy users, educational institu- tions and associations, and electric and gas utilities. The company is owned by Dr. Robert Latham and Mr. Louie Ervin and is headquartered in Cedar Rapids, Iowa. Bob Latham and Louie Ervin will be responsible for managing and completing this study, and their resumes are attached as a part of this response. Dr. Latham and Mr. Ervin have prepared multiple electric pricing studies and have been expert wimessos before the Federal Energy Regulatory Commission, Iowa Utilities Board, and Missouri Public Service Commission. L&A recently completed electric rate and unbundling studies for the Iowa cities of Cascade, Dysart, Maquoketa, New London, Marathon, Traer, Vinton and Winterset, as well as for Amana Service Company and Farmers Electric Cooperative. Bob Latham is an energy economist and a pricing and regulatory strategist. For over 25 years, from his position with the Iowa Utilities Board to senior management positions with lES Industries and with L&A, he has worked closely with municipal utilities and rural cooperatives and their state associations on primarily strategic and power supply issues. Louic Ervin is a licensed professional electrical engineer, with over 30 years in the electric energy industry. Ervin' s experience includes management of rat~s and operations at Missouri Utilities Company (now Ameren) overall responsibility for the municipal electric system for the Lafayette Municipal Utility System CLouisiana's largest municipal utility) and Director of Rates and Con~tacts for IES Utilities (now IPL). Although no specific individual or finn has been identified as a subconUaetor, L&A, with approval of IAMU, may subcontract some site assessments of the distribution system to other engineering finns or individuals experienced in utility line construction cost estimating. L&A does not percieve any conflicts of interests with this joint feasibility study. L&A cun~tly provides energy market advisory, technical and advocacy services to over fifty municipal and rural electric cooperative utilities across Iowa and the upper Midwest. Current clients include Resale Power Group of Iowa, South Iowa Municipal Electric Cooperative, and The University of Iowa, as well as a group of over thirty industrial clients, five Midwest state school board associations, major public and private educational institutions and state associations, and associations of smaller commercial and industrial businesses. 10 Latham & A~socia~es, In~. 10-25-02 Item III of RFP: Proposed Budget Please note Budget attachments sent separately, as requested. Item IV of RFP: Timeline, Major Tasks and Primary Activities 1. An initial planning and input meeting with IAMU staff will be held within two weeks of approval to proceed, with a focus on: a. Why the Study is proposed, study objectives, process and time-line; b. Study requirements; c. Cities' expectations; d. Collection of enst and sales data, usage profiles and operatiunal data; e. Identify constraints; and f. Review of plant accounts and accumulated depreciation data. 2. Following a continuum of interim telephone calls and email interchanges, a second meeting with IAMU staff will be held within ten weeks of award with a focus on preliminary results and to reach a consensus on power supply, transmission, distribution and other unbundled enst components and the appropriate allocation of overall costs to each customer rate class; 3. Within sixteen weeks of award, a proposed final repo~ will be reviewed with IAMU and individual cities. 4. A final report will be provided within eighteen weeks of award. 5. Individual city meet'rags will be schedule as requested. 6. Please note item 1- E for a list of additional information that would be required from each city. ll l_~tham & Associates, Inc. 10-25-02 RESUME OF PARTNER ROBERT J. LATHAM, PhD Latham & Associates, Inc. Home - 356 Park Terrace, SE 150 First Avenue NE, Suite 300 Cedar Rapids, Iowa 52403 Cedar Rapids, Iowa 52401-1110 Phone: 319-362-6096 Phone: 319-365-6488 Fax: 319-365-7086 Internet: Lathamrj~aol. com FOCUS: Strategy, planning and economic/financial analyses and initiatives in energy-related markets. ECONOMIC/STRATEGIC ANALYSIS/ENERGY MARKET EXPERIENCE: · Chairman and President - Latham & Associates, Inc. October 1995 - Present Energy strategic planning, strategic initiative implementation, regulatory and market negotiations, purchasing group aggregation and supply solicitation, engineering-economic/financial analyses in energy markets. UTILITY AND HOLDING COMPANY EXPERIENCE: · Senior Vice President - Finance, IES Industries Inc.fIES Utilities Inc. February 1995 - October 1995 Strategic planning, mergers and acquisitions, integrated resource planning, economic forecasting, international investments, finance and treasury activities. · Senior Vice Pres. - Finance, Corp. Affairs &Treasurer, IES Industries Inc./IES Utilities Febmary 1994 - February 1995 Regulatory and governmental affairs, communications, strategic planning, economic forecasting, pricing, finance and treasury activities· · Vice President - Corporate Affairs and Planning, ][ES Industries Inc., May 1992 - February 1994 · Vice President - Corporate Affairs and Planning, Iowa Electric Light & Power Co., May 1985 - May 1992 · Director of Rates and Utilization Research, Iowa Eleca/c Light & Power Company, April 1983 - May 1985 12 l..nthnm & Associntes, Inc. 10-25-02 Robert J. Latham Resume Page 2 REGULATORY EXPERIENCE: * Director, Rates Research and Policy Division, Iowa Utilities Board, July 1980 - March 1983 Rates research, PURPA, generation planning, cost-of-service, policy analysis. · Director of Utility Finance, Utilities Division, Iowa Utilities Board, June 1976 - June 1980 Cost-of-service, financial analysis, generation planning, rates, auditing, accounting. TEACHING AND RESEARCH EXPERIENCE: · Assistant Professor Economics, member of the Graduate Faculty and Pre-Professional Advisory Committee; The Pennsylvania State University, 1970- 1976 Industrial organization, energy economics, business-govemment relations, microeconomics, health economics and interdisciplinary engineering economics energy research. · Research Associate, Center for the Study of Environmental Policy The Pennsylvania State University, 1973 - 1976 · Research Associate, Institute for Research on Human Resources The Pennsylvania State University, 1970 - 1972 BUSINESS ACTMTIES: · Member, Iowa Business Council Deputy Comm. Deputy and former chair 1987 - 1995 Member Research & Policy Committee 1992 - 1995 · Board Member, Iowa Assoc. Business & Industry 1995 · Member, Electric Power Research Institute Utility Resource Planning & Management 1995 · Member, Edison Electric Institute - Strategic Planning Services Committee 1985 - 1995 Power Supply Legislation Committee 1994 - 1995 COMMUNITY ACTIVITIES: · Board Member, former Chair, Trees Forever 1994 - present · Board Member, Iowa Environmental Council 1995 - present · Trustee and Secretary, Greater Cedar Rapids Foundation 1993 - 1998 · Board Member, St. Luke's Hospital, Cedar Rapids 1993 - present Chair, Quality and Cost of Care Committee 2000 - present · Former Chair, Wellington Heights Park Fund Board 1994 - 1998 · Member, Architecture/FaCilities Committee, Elder and 1984 - present former Chair, Finance, Trustees, Admin. & Personnel Committees, First Presbyterian Church 13 Latham & A~sociates, Inc. 10-25-02 Robert J. Latham Resume Page 3 PERSONAL BUSINESS: · Chairman and President, Green Cimle Investments, Inc., 1991 - present Ad¢l, Iowa · Chairman, Peoples Trust and Savings Bank, Adel, Grand Junction, 1991 - present Guthrie Center, Jefferson, Rippey and Scranton, Iowa · Board and Executive Committee Member, First Financial 1997 - 1998 Bancorporation, Iowa City, Iowa · Board and Executive Committee Member, First National Bank 1993 - 1998 Iowa, Iowa City, Iowa · Advisory Board Member, Mercantile Bank, Cedar Rapids, Iowa 1998 - 2000 · Latham Farms, Alexander, Iowa 1972 - present ACADEMIC BACKGROUND: B.S. General Science, The University of Iowa - 1964 M.A. Economics, The University of Iowa - 1968 Ph.D. Economics, The University of Iowa - 1971 Executive Program: Organizational Change, Stanford University - 1987 Executive Program: Strategic Business Planning, Columbia University - 1992 PERSONAL: Birthplace: Hampton, Iowa, September 29, 1942 Married: Sue, Ph.D. Psychology, The University of Iowa - 1971, Clinical Psychologist, St. Luke's Hospital Behavioral Development Center Children: Jesse, A.B., Stanford University, 1996, J.D., University of Chicago Law~ School, 1999, Attorney, Simpson Thacher & Bartlett, New York 1999 - Anne, A.B., Northwestern University, 1999, Associate Consultant, L.E.IC Consulting, Chicago 1999 - 14 Latham & Associates, Inc. 10-2.%02 RESUME OF PRINCIPAL Louie R. Em, in, P.E. Office - Latham & Associates, Inc. Phone: 319-365-6488 150 First Avenue NE, Suite 300 Fax: 319-365-7086 Cedar Rapids, Iowa 52401-1110 Cell: 319-560-3092 E-mail: ErvinLR~worldnet. atCnet INDUSTRY EXPERIENCE: · Executive Vice President of Latham & Associates, Inc. · Licensed Professional Engineer · Principal responsible for industrial clients representing about 550 mW of electrical load, including the Large Energy Group (an industrial and commercial customers group in Iowa). · Advisor for implementation and operation of multiple aggregate energy purchasing consortiums in Illinois, Iowa, Kansas, Missouri and Wisconsin. · Engineering and economic generation analysis for industrial and municipal clients. · Analysis and development of retail electric revenue requirements and rate design for municipal utilities. Develop real time wholesale tariffs for municipal cooperatives. · Devcl0p energy strategy for industrial and municipal clients. · Expert witness in federal anti-trust case involving wholesale electric wheeling. Expert witness in electric, gas and water rate cases before Federal Energy Regulatory Commission, Missouri Public Service Commission and Iowa Utilities Board. · Directed a study of the economic impact of DiVestiture of IES Utilities Gas Business as part of the Securities and Exchange Commission's merger requirements. · Responsible for large projects, including construction of transmission and substation facilities. · Responsible for management of Environmental, Substation Maintenance, Relaying, Metering, Communications and Electric Equipment Repair for large IOU. · Directed electric operations for Lafayette Utilities System, including responsibility for 360 mW of natural gas fired steam turbine generation and over sight of $0% ownership in a $60 mW coal fired plant. · Performed consultant/agent functions for 40 municipal and REC utilities in Louisiana and Iowa in the area of energy supply. · Responsible for power supply, marketing, cogcneration, transmission, distribution, field and commercial operations, stores, transportation, system protection, communications, rates and environmental. · Primary responsibility for integrating the system and personnel following a $63 million acquisition of an electric utility service territory. · Negotiated power, steam and natural gas contracts for sales of over $250 million. 15 Latham & Associates, Inc. 10-25-02 Resume Page 2 · Received .Gas Industries magazine 1993 Outstanding Manager of the Year Award for directing a $25,000,000 throe-year project, installing over 500 miles of pipe to deliver natural gas to 52 Iowa towns. · Served on Oversight Teams for Information Systems, Integrated Resource Planning, Economic Development and Environmental. ACTIVITIES: · Board member of Chamber and Economic Development Corporation. Past Chair of Missouri Valley Electric Association's Rates and Marketing Comm. Past member of Southwest Power Pool's Operations Committee. · Member of Mid-continent Area Power Pool's Environmental Committee. · Representative to Midwest Ozone Transport Group. · Past member of Edison Electric Institutes' Metering Committee. · Member of Edison Electric's Environmental Committee. · Honor Societies: Beta Gamma Sigma, Tau Beta Pi, and Eta Kappa Nu. EDUCATION AND PROFESSIONAL: · BS & MS Electrical Engineering - University of Missouri (with honors) · MBA - University of Iowa (with highest honors) · Public Utility Executive Program - University of Michigan · Edison Electric Institute Rate Program · Licensed Professional Engineer EMPLOYMENT: · Executive Vice President, Latham & Associates, Inc. - July, 1996 - present · Adjunct Professor, Bus. Poliey/Slrategic Mgmt. - University of Iowa - 1993-1999 · IES Utilities Company- 1985 -1996: Director- Environmental, Industrial Applications & Maintenance Engineering - 8/95 Director- Industrial Applications and Maintenance Engineering - 1/95 Director - Operations Planning & Development -1994 Director - Operations Services and District Manager - 1993 Manager - Gas Operations & District Manager - 1991 Manager - Eastern District - 1989 Manager- Rates & Contracts - 1987 Manager - Rates - 1985 · Lafayette Utilities System - Lafayette, Louisiana: Associate Director - Generation, Engineering & Operations - 1984 Associate Director - Power Development & Sales - 1983 · Missouri Utilities Company 1978 16 Lathnm & Associates, Inc. 10-25-02 REFERENCES Terry Hershberger, President RPGI, 0 Mr. Brian Kading, Exec. Vice Pres. and General Manager Iowa Assoc. Electric Cooperatives Amana Society Services Co., REC 8525 Douglas, Suite 48 Amana, Iowa 52203 Des Moines, Iowa 50322 Phone: 319-622-7600 Phone: 515-276-5350 Mr. Dale Barrie b Mr. Duane DeRaad, Director of · Winterset Electric Municipal Utilities Design & Constr. Services 321 N First Street The University of Iowa Winterset, Iowa 50273 416 North Hall Phone: 515-462-2152 Iowa City, Iowa 52242-1223 Phone: 319-335-1884 Mr. Pat Stief Vinton Municipal Electric Utilities 0 Mr. David IL Grace, P~sident, P.O. Box529 Illinois Energy Consortium and Vinton, Iowa 52349 Superintendent, Phone: 319-472-4813 Lincoln School District 156 410 West 157 Street Mr. Doug Owen Calumet City, Illinois 60409-4798 . Maquoketa Municipal Elec. System Phone: 708-862-7834 201 E Pleasant Maquoketa, Iowa 52060 O Mr. James Aipperspach, President Phone: 319-563-6893 Iowa Assoc. Business & Industry 904 Walnut Street, Suite 100 Mr. Duane Armstead, SIMECA Des Moines, Iowa 50309 Greenfield Municipal Utilities Phone: 515-280-8000 P.O. Box 95 Greenfield, Iowa 50849 Phone: 641-743-2914 Mr. Bill Serbousek, LEG PMX Industries, Inc. 5300 Willow Creek Drive, SW Cedar Rapids, Iowa 52404 Phone: 319-368-7700 ext. 1205 Mr. Jon Muller, Data Service Dir. Iowa Assoc. of School Boards 700 Second Avenue, Suite 100 Des Moines, Iowa 50509-1731 Phone: 515-577-2136 17 Appendix C IAMU JOINT MUNICIPALIZATION FEASIBLITY STUDY BUDGET L&A PERSONNEL AND PROPOSED PRICE Bob Latham, Partner, and Louie Ervin, Principal, will personally provide strategic and analytical services for the Joint Municipalization Feasibility Study. In addiOon to IAMU and/or city staff, L&A will assist with data collection as appropriate. The project cost is based on $4,000 per city, plus a fee of $0.50/capita of population for each city. All charges for L&A are included in the estimated fees for the scope of services described and in the attached pricing matrix. Travel and expenses are covered for up to three meetings with IAMU. The attached pricing matrix identifies estimated fees by individual city. Invoices will be submittexl monthly based on the following fee schedule, with final cost of the study not to exceed the mount stated. For city-specific work, including presentation of feasibility study results to local constituents, energy efficiency advice and other strategic or energy related consultation will be invoiced at our long-term hourly fee schedule as follows. LATHAM & ASSOCIATES FEE SCHEDULE: Personnel Fees Per Hour Long-Term Relationship Hourly Fee Schedule Partner (Robert J.I.atham) $145 Principal (Louie R. Ervin) $120 Senior Professional $ 90 Professional $ 65 Associate $ 55 Assistant $ 50 Out-of-pocket expenses, including lodging and meals at actual cost Automobile travel expenses at $0.365 per mile Travel time at hourly schedule Subcontracts at cost plus 10 percent Project expenses at cost plus 10 percent Expert testimony and process participation at negotiated fees 6 APPENDIX D - Table of Fixed Cost, by City Pro Rata Incremental Base Fee Fee Per 1,000 City Population Per City Population Total Dunlap 1,139 4,000.00 570.00 4,570.00 Elma 598 4,000.00 299.00 4,299.00 Fort Dodge 25,136 4,000.00 12,568.00 16,568.00 Guthrle Center 1,668 4,000.00 834.00 4,834.00 Inwood 875 4,000.00 438.00 4,438.00 Iowa CitylU of I 63,027 4,000.00 31,514.00 35,514.00 Kalona 2,293 4,000.00 1,147.00 5,147.00 Keokuk 11,472 4,000.00 5,736.00 9,736.00 Osceola 4,659 '4,000.00 2,330.00 6,330.00 Perry 7,633 4,000.00 3,817.00 7,817.00 Rolfe 675 4,000.00 . 338.00 4,338.00 Sheldon 4,914 4,000.00 2,457~00 6,457.00 Shell Rock 1,298 4,000.00 649.00 4,649.00 Titonka 584 4,000.00 292.00 4,292.00 Vedic City 175 4,000.00 88.00 4,088.00 Waukee 5,126 4,000.00 2,563.00 6,563.00 Wellman 1,393 4,000.00 697.00 4,697.00 West Des Moines 46,403 4,000.00 23,202.00 27,202.00 Total 179,068 $72,000.00 $89,539.00 $161,539.00 The fee for the joint municipalization feasibility study is $4,000 per city plus 50 cents per capita of population 7 Appendix E - Additional Services/Costs DRAFt In addition to city-specific work that may be identified during the course of the study and provided in accordance with Appendix C of this agreement, several Pwject Participants have identified city-specific work or special circumstances, the cost of which may be specified below: 1. One or more of the Project Participants may consider joint operating agreements with another utility. Where the terms of such an agreement are made available to the Consultant in a timely manner, they will be considered in the study. This provision may include but is not limited to Elma, Kalona, Osceola, Vedic City, and Wellman. [If an agreement on a fee estimate, not-to-exceed amount, or other assumptions are agreed to by the parties, the terms will be listed here.] 2. Fort Dodge (muni lite considerations, savings on wastewater operations). Jif an agreement on a fee estimate, not-to-exceed amount, or other assumptions are agreed to by the parties, the terms will be listed here.] 3. Iowa City (energy efficiency issues). Jif an agreement on a fee estimate, not-to- exceed amount, or other assumptions are agreed to by the parties, the terms will be listed here..] 4. University of Iowa. Jif an agreement on a fee estimate, not-m-exceed amount, or other assumptions are agreed to by the parties, the terms will be listed here.] 5. Keokuk (consideration of previous feasibility study). Jif an agreement on alee estimate, not-to-exceed amount, or other assumptions are agreed to by the parties, the terms will be listed here] JAN 2 7 JOINT FEASIBILITY CONTACT LIST DUNLAP ~OOD ~ch Cl~c, CiW Co~cilor C~I V~d~ Ko~ City Cl~k RCCLlinc51~29~oo.com P.O. Box 298 CiW ~ntact: ~woo~ ~ 512~0-0298 M~e Da~e, City Clerk Phone: 712-7~-48~ 716 Iowa Avenue F~: D~lap, ~ 51529 IOWA C~ Phone: 712-~-5721 F~: 712-643-5718 410 E~t W~on S~et dunlapi~log~et, net Iowa City, ~ ~2240~1826 J~k Ha~ (char, cifiz~s' cool,ce) Phone: 208 No~ 10~ S~t F~: ~19-~6-5009 D~lap, ~ 515~9 dal~helling~iowa-citv, org 712-~-~542 Ke~n O'Malley, Fi~ce Director M~ Br~el (citizens' co~ee) Phone: 31~-3~-~0~3 EL~ ke~n-omallev~iowa-citv.or ~ ~ ~c~ee, City Co~cilor ~dy M~ews, ~sist. Ci~ A~. ~41-39~-8408 ~) Phone: 319-~5~-50~0 Ci~ contact: ~dy-ma~ews~iowa-city. org S~dy ~n~, City Clerk Cit~en ~oup ~ests: PO Box 497 C~ol Sp~i~ Elm~ ~ 50628 csp~inav.net Phone/f~: ~1-~93-254~ Saul Me~es ~RT DODGE smekies~kwood.cc.ia.us D~is Plau~, Di~tor of Plane Dep~'~ent of Pl~ing ~ITY OF IOWA City of Fo~ Dodge P. Fe~ Milster, P.E. 819 1~t Avenue South Power Pl~t ~ager Fo~ Dodge, ~ ~0501-4739 207 B~lin~on St. W. Phone: Iowa CiW, Iowa ~2242~1~2~ F~: Phone: 319-335-5132 fdpl~g~dodgenet.~m F~: 319-335-6082 Fe~an-milster~uiowa.edu G~H~E CENTER ~ONA Bill Slatcr, UtiliW Superintendent Doug Morg~, City A~i~s~ator PO Box 1~ K~on~ ~ 52247-1213 Gut c C ter, 50115 Phone: 319-656-2310 641-747-3154 citkal~kete.net 641-747-3056 ufilw~e~nefins.net David Chiles ~vidch~lcs~c-esco.com 1 01/23/2003 KEOKUK SHELL ROCK David Gudgel, Mayor Brace Toenjes, Attorney City of Keokuk Phone 319-885-4346 P.O. Box 400 Fax: 319-885-4348 Keokuk, IA 52632-0400 Email: toenjes(~etins.net Phone: 319-524-2050 Other city contact: Fax: 319-524-1365 Marilyn Hardy, City Clerk dgkeokuk~,interlinklc.net City of Shell Rock OSCEOLA P.O. Box 522 Ralph Lesko, City Administrator Shell Rook, IA 50670-0522 City of Osceola Phone: 319-885-6555 P.O. Box 465 Fax: 319-885-6556 Oseeola, IA 50213-0465 cit¥ofsr(~netins.net Phone: 641-342-2377 TITONKA Fax: 641- 342-4005 Todd Schwartz, City Councilor oscadmin(~,pionetonet City contact: PERRY Barb Swiefel, City Clerk Jun Morrison, City Administrator or Paul Heyer, Util. Supt. PO Box 545 PO Box 382 Perry, IA 50220-0545 Titonka, IA 50480 Phone: 515-465-2481 Phone: 515-928-2850 Fax: 515-465-4862 Fax: 515-928-2950 Jonmorrison44C~aol.eom cityt yke(a~netins .net Rusty Martin, Council Member LeAnn Tomey, City Councilor msty. martin(&~pobox.eom VEDIC CITY ROLFE Bob Wynne, Mayor Tom Smith, City Administrator City of Vedic City 320 Garfield Street 1760 Observatory Drive Rolfe, IA 50581 Maharishi Vedic City, Iowa 52556 Phone: 712-848-3124 Phone: 641 - 469-7000 Fax: 712-848-3128 Fax: 641- 469-7001 rol fe(~,ncn, net Mayor(~_,maharishiVedicCity. Net SHELDON Maureen Wyrme Scott Wynja, City Administrator wyune(~_~mum.edu PO Box 276 Sheldon, IA 51201 Phone: 712-324-4651 Fax: 712-324-4607 sheldon(~ncn.net Duane Wahlstrom, Mayor 2 01/23/2003 WAUKEE John Gibson, Public Works Director 230 Highway 6 Waukee, IA 50263 Phone: 515-987-4363 Fax: 515-987-3979 gibsonjon@~aol.eom Ray Clark Waukee Utility Committee 515-987-4382 WELLMAN Max Lewis, Mayor 1000 8th Street ~ Wellman, IA 52356 Phone: 319-646-2678 (h) Chris Ward, City Administrator PO Box 129 Wellman, IA 52356 Phone: 319-646-2154 Fax: 319-646-6561 chrisw@,netins.net WEST DES MOINES Larry Read, Public Works Director PO Box 65320 West Des Moines, IA 50265-0320 Phone: 515-222-3475 Fax: 222-3478 larry.read~wdm-ia, com lody E Smith, Dir. of Admin. Services jod¥.smith~wdmda.com 3 01/23/2003 Other: IAMU Staff: Bob Haug, Executive Director Mike May, Regulatory Counsel Julie Smith, Legal Counsel Ahlers Law Firm: Ivan Webber Lance Coppock American Public Power Association Deborah Penn, VP Information Services EMMETSBURG John Bird, City Aclmin. PO Box 417 Emmetsburg, IA 50536 Phone: 712-852-2550 Fax: 712-852-3744 4thebird@~ncn.net Kathy Gunderson Administrative Assistant EVERL¥ Brace Hardin, Gas/Water Supt. PO Box 197 Everly, IA 51338-0197 Phone: 712-834-2691 Fax: 712-834-2184 Everlych~,,evertek. net KEOKUK Bill Cole, Gen. Mgr. Keokuk Municipal Water Works PO Box 10 Keokuk, IA 52632-1265 Phone: 319-524-5285 Fax: 319-524-2824 keowater(a3,'mterl.net 4 01/23/2003 city of iowa city PARKS AND RECREATION DEPARTMENT 220 S. Gilbert Street TO: City Manager FROM: Parks & Recreation Director /~it~ ' ,, ) DATE: February 3, 2003 RE: Employee Award I am pleased to report to you that Joe Wagner, Senior Maintenance Worker with the Parks Division, was recently recognized for his efforts by the Iowa Sports Turf Managers Association. He was named "Iowa Sports Turf Manager of the Year," which is the highest award given by this group, and is presented to individuals "In appreciation of devoted and invaluable service rendered to the sports turf industry." Joe's official job classification is Senior Maintenance Worker-Turfgrass Specialist. He has been with the Parks and Recreation Department a little over five years, and his primary responsibilities revolve around the maintenance and development of the City's various sports fields. These include the Iowa City Kickers' Soccer Park, the youth softball fields in Napoleon Park, the youth baseball fields in City Park and the baseball/softball fields in Mercer Park. He is not only responsible for the turf areas, but also the baseball/softball infields and all the amenities associated with these facilities. The efforts of Joe and his crew have been instrumental in bringing a number of baseball, softball and soccer tournaments to Iowa City in recent years. The improvement to our facilities was also a factor in the Department's induction into the Babe Ruth Hall of Fame two years ago. Joe is called upon for his expertise with respect to all the public turf areas in the city, whether it be boulevards or parks or other areas. In addition to his tuffgrass responsibilities, Joe assists with numerous other maintenance activities in the Parks Division. He is a valuable employee and an asset to the City. We appreciate his efforts very much, and we are pleased to see him receive this recognition. Marian Karr r~ From: Aletia Morgan [ahmorgan@ix.netcom.com] Sent: Thursday, January 30, 2003 1:23 PM To: Ron Logsden Cc: marcia-klingaman@iowa-city.org; cou ncil@iowa-city.org Subject: Re: Southwest lC Bus Service Dear Ron, Thank you so much for getting back to me about the issue of extending transit service to the southwest (Rohret Road) area of town. I'm glad to hear that a survey was done - but if one looks at the construction records in that time, I am sure the number of residences has more than doubled in that time, and is not an accurate picture of the state of affairs today. In addition to residential growth, there is also the construction of lower-income/senior housing that has been added (just next to 218), which represents a concentrated number of residents who may have difficulty driving, and could use transit services. This could help offset the need for SEATS service as well. I'm copying this note to the city council and Marcia Klingmaman - thank you for giving me their addresses. In particular, I did not know about the Neighborhood Services Coordinator position. Thank you for your suggestions - and I look for~vard to being able to take the bus in the future! Sincerely, Aletia Morgan At 12:17 PM 1/29/2003 -0600, you wrote: Dear Aletia, Monk forwarded me your message regarding more frequent bus service out Rohret Road and how to best get the ear of the transit group or the City Council from your Trip Maker request. We did a survey of residents in the area about 4 years ago in an attempt to determine potential demand in the area for bus service. The survey did show there was a desire for bus service, and we were able to get the Westside Loop as a result. The ridership on the Westside Loop is not as high as was indicated on the surveys however. We are aware that there is a desire for service throughout the day in the area, but unfortunately we do not have the funding to expand service in the area at this time. You can e-mail the City Council directly at council~iowa-city.org if you would like to contact them directly as it would take an additional allocation from the City Council for us to be able to expand service in the area. A coordinated eftbrt showing mass neighborhood support would be the most effective way of getting the ear of the City Council. Marcia Klingaman the cities Neighborhood Services Coordinator (marcia-klingaman~iowa-city.org) may be able to help if you are interested, but there is no established Neighborhood association in that area like there is in most of the city. Ron Logsden Thank You, Transit Manager Ron Iowa City Transit 1/30/03 319-356-5154 Medical Center 601 Highway 6 West ~ r r Iowa City, IA 52246 ~,~ JAN 1 3 Z~ ~. Repl~ Refer To: 636A8/135' Dear Friend of Veterans: On behalf of the patients and staff, I invite you and/or the members of your organization to visit our VA Medical Center on Saturday, February 8, and Sunday, February 9, 2003, any time between the hours of 1 p.m. and 3:30 p.m. to participate in the Annual National Salute to Hospitalized Veterans. Guests will be received in the Chapel (lW§5) and directed to both outpatient and inpatient areas for their visit. Across the nation special guests will be visiting veterans at VA facilities. Our patients are always appreciative of the recognition they receive from visitors such as you. We hope you will be able to join us for this special observance. Questions can be referred to Gary L. Strank, Volunteer Program Manager, at 319-339-7129. Sincerely, Center Director Enclosure: News Release News Release Kirt A. Sickets, Public Affairs Specialist (319) 339-7104 (daytime) (319) 631-3471 cellphone FOR IMMEDIATE RELEASE: FAX: (319) 339-7135 VA MEDICAL CENTER INVITES COMMUNITY TO 'SALUTE HOSPITALIZED VETERANS' (January 28, 2003) The Iowa City VA Medical Center invites the public to participate in open-house activities February 8-14 during the observance of National Salute to Hospitalized Veterans. "The National Salute to Hospitalized Veterans gives everyone a chance to let those who have given the nation so much know that they are not forgotten," said VA Medical Center Director Gary L. Wilkinson. "We've invited local celebrities, elected officials, school children and other groups to visit during the week. We want people of all ages to bdng Valentine cheer to our patients. Wilkinson said he hopes visitors will also learn more about the important roles volunteers play at the medical center throughout the year and perhaps pursue volunteer opportunities themselves. "Our medical center's 725 volunteers are an integral part of our health care team and the National Salute program is a great way for people to learn more about helping the veterans we serve here at the medical center," Wilkinson said. "We hope that individuals and groups will join us during this week to give special recognition to these men and women." Actor Gerald McRaney, television's "Major Dad," is national chairman of the 2003 National Salute to Hospitalized Veterans. The USO tour veteran will visit VA medical centers during Salute week and promote the VA volunteer program throughout the year. Citizens, young and old, are once again sending Valentine greetings cards and letters to VA medical centers simply addressed "Dear Veteran." Wilkinson said they are being distributed to patients throughout the medical center. Individuals or groups wishing to participate in the medical center program should call the Voluntary Service office, (319) 339-7129. " Submitted by Council Member Kanner Cities consider new municipal utilities IP15 By BOb Haug, executive director, Iowa Association of Municipal Utilities Kalona, Osceola, Perry, Rolfe, Sheldon, Inspring 2001, a group of Iowa City Another factor in consideration of Shell Rock, Titonka, Vedic City, Wau- residents began investigating public municipal utilities is that legal and regu- kee, Wellman, and West Des Moines. power as an alternative to renewal of lato~y conditions appear to be more If the feasibility study shows the the city's franchise with their incumbent favorable. Though a number of new potential for sufficient savings, a clt~ provider. The citizeris group grew in municipal gas utilities have formed in schedules an election to authorize size and enthusiasm as they gathered recent years, the newest public power establishment of a municipal utility. If more information, system dates back to Aurelia in 1976. voters approve, a business and financial By fall 2002, Iowa City had joined Sheldon attempted to form a munici- plan is developed and a petition for a with 14 other communities considering pal electric utility in 1989-90, but was certificate of authority is filed with the blocked by the decision of the Iowa whether to renew franchise agreements IUB. The IUB weighs public interest in with a private utility or exercise their Utilities Board (IUB). At the time, the the proposal, sets a price for the incum- industry was being consolidated through bent utility's distribution facilities, and option to establish public power sys- mergers and acquisitions and the IUB terns, was hostile to the formation of new designates a service area for the munic- A number of factors have lead to the municipal utilities - a measure viewed ipal utility. Emmetsburg and Everly have eom- resurgence of interest in the establish- by the board chairman as running pleted feasibility studies. These cities as ment of municipal electric utilities in against the trend. Iowa and across the nation. Additionally, the region hid a sub- well as Vedic City, have held elections The difference in the rates of munici- stantial excess of generation oapacity in which voters approved establishment pal utilities and those of private or and the IUB decision in the case would of municipal electric utilities. Vedic investor-owned utilities is a major fac- have required Sheldon to compensate City received unanimous voter approval tor in considering a municipal utility. Iowa Public Service for "strande~d gert- to establish municipal electric, gas, On average, residential rates of Iowa's eration" - generation built to serve water, and telecommunications utilities. private utilities are 36 percent above Sheldon that would no longer have a None of the cities have yet filed for a certificate of authority from the IUB. the rates of the state's 137 municipal buyer. electric utilities. In addition to interest in public Besides offering lower rates, munici- The situation has changed dramati- power, several cities in Iowa are also pal utilities on average transfer an cally. Savings promised through merg- conducting or have completed feasibil- amount equal to six percent of their ers and deregulation have not material- ity studies to establish municipal gas gross revenues to other city funds, ized and the excess generation from utilities. These cities include: Alton, enabling cities to hold down property plants built in the 1970s and early '80s Aurelia, Cherokee, Mapleton, Sheldon, taxes and make investments in infras- has been used. and Sibley. tructure, programs, amenities, and In October 2002, the Iowa Associa- The formation of new municipal utili- recreational facilities that improve the tion of Municipal Utilities (IAMU) ties is important to ail Iowa cities, community, issued a request for proposals (RFP) regardless of their current interest in As private utilities have closed local for a joint feas~ility study. The study the process. Iowa has a very weak fran- service centers and reduced the number will assess the impact on local electric chise law and payment of franchise fees of service personnel, cities increasingly rates in each city that could be is a rare exception in this state. The recognize the value of utility jobs both expected from establishment of munici- one way that cities can gain any lever- for reliable service and to the local pal electric utilities. Ten responses were age over a private utility to relocate economy, received from well-qualified national lines, participate in economic develop- Citizens also look to municipal utili- and regional consulting firms. Repre- merit activities or provide other corn- ties as a means of gaining local control sentatives of the cities scored the pro- munity benefits is by displacing the over rates, policies, generation posals and selected two firms to inter- franchise holder with a municipal utility resources, and investments in energy view on January 10. Following the or by threatening to do so. To be useful, efficiency and renewable energy, interviews, a contract was negotiated the threat must be credible. To be cred- The failure of deregulated energy with an Iowa-based consulting firm - ible, new municipal utilities must form markets ia California and other states Latham & Associates of Cedar Rapids. from time to time. Private utilities are raises questions about the value of corn- Through the joint RFP process the expected to attempt to block "munici- petition in what are fundamentally cities have agreed to the scope of the palization." Besides rigorous opposition monopoly industries. In these markets, studies and the selection of the contrac- to local ballot measures, legislation to municipal utilities shelter their citizens tor. Each city now has a not-to-exceed make the process more expensive or from higher costs, price spikes and price for its part of the study. Final mor~ diffiCUlt is likely to be introduced enormous losses attributed to comp- commitments to participate will be this session. Preserving the right of citi- tion and the abuse of market power. In made by mid-Febrnary. Th~tudies are zens to form their own community- some states that have experimented expected to take between three and owned, locally controlled, not-for-profit with deregulation, cities are demon- four months to complete. The original utilities is a right that must be strating their unique ability to aggregate group, which has grown to 18 cities, defended. · the interests and electrical loads of resi- now includes: Dunlap, Elma, Fort [To learn more about C#i~ensfor Publ/c Power dential and commercial customers. Dodge, Guthrie Center, Inwood, Iowa in Iowa City, see their web site at ww,~icpub- City and the University of Iowa, licpowerorg, l FEBRUARY 03 CITYSCAPE Cities edge into telecom bus]ness BY BRIAN BERGSTE!N industry, and a technological going to gef~,advanced Communi- ASSOCIATED PRESS breakthrough that l~ts data be cations services any time in the transmitted over power lines, foreseeable future;" said Jim If you ever wince afl]er open- "A very large number of com- Ballet, an attorney who has rep- lng your cable bill, you're not munities across the count~3~ are resented mtmicipal telecoms in going to like this: The good fo]ks beginning tq realize this is like several cases. "Recognition of in Glasgow, Ky., pay $19 a the histoi3~ of electrificatian all that is forcing legislatures to month for 70 cable channels; for over again, and if they don't take a second look-- even ones an additional $25, the~ qan get help theraselves, they're not that had enacted barrlers." Warp-speed Internet accel. How do they get prices nearly half thomational average? Because the city-owned elec2 tric utility provides cable TV' Submi tted by Council Member Kanner and Internet access over wires that also monitor power use in the town of 14,000. The utility isn't trying to profit from the service --just recover its costs. Utility superintendent William Ray estimates that since Glasgow began offering cable in 1989, $32 million of res- idents' money has stayed in town that otherwise might have been vacuumed by giant telecommunications compa- nies -- which orean don't offer advanced services in rural areas such as Glasgow, anyway. ;"It's like an armored car Wrecking in the streets once a · year and spreading money in the streets for people to grab for themselves;" Ray said. Frustrated with the high cost and slow pace of broadband deployment in much of the country, 511 ptiblicly owned utilities now provide telecom services for residents, schoola, mty aganmes, and their internal operationsi up nearly 14 per- ' cent from a year ago, accordink to the American Public Power Association: Some utilities built networks from scratch. Others extende~ infrastructure they alread~ had, such as fiber-optic linds and networking equipment needed to mo.nitor power flow dr remote substations. Not surprisingly, big phone and cable companies hate thiS, and they have fought with some success to block public gas, water, and electric utilities from providing telecom services. Eleven states bar or restrict the practice, sometimes by impos- ing ad/]ficial costs on municipal telecoms so the prices they charge end up closer to what private companies offer. But things may be looking up for municipal teleeems -- thanks to recent favorable court rulings, weakness in the private telecom From Mayor Pro tem Vanderhoef ~ Embargo until 2:00pm Januarl, 21, 2003 Stimulate Growth and Jobs by Targeting Social and Infrastructure Needs, Nation's City Leaders Say Washington, DC, January 21, 2003 - .- The nation needs a realistic economic growth and job creation plan to boost consumer spending, fix state budget problems, and spur economic growth, says the National League of Cities (NLC), which today proposed its own economic plan. The plan would boost consumer spending for low- and moderate-income Americans through a tax rebate and extension of unemployment benefits; alleviate the state fiscal crisis through funding for schools, homeland security, Medicare, and transportation; and spur economic growth through special emergency block grants targeted to America's social and infrastru~ needs. "What we are proposing today is a framework for a reasonable economic stimulus and growth plan that creates real jobs and promotes real growth in real communities," said NLC president and New Haven, Conn. Mayor John DeStefano, Jr. Specifically, the National League of Cities recommends a federal economic growth plan with the following elements: Boost consumer spending with $75.5 billion for short-term stimulus measures. The recession primarily hurts low- and middle-income families. NLC believes a stimulus package should focus benefits 'on these segments of the population through: $10 billion for extension of unemployment insurance benefits to those whose benefits bare expired. * $65 billion for n one-time tax rebate of3.5% ofthe first $15,000 in wages. Thiswould benefit 149 million workers and would nmount to $525 for a single worker and $1050 for two workers. e $500 million for transitional job creation in cities and towns. AHeviate state budgetary shortfalls with ~ billion in immediate remedies. The National Governor's Association estimates that states face $67 billion in budgetary shorffai;~ ;.. 2003, and NLC supports $50 billion in unrestricted grants to assist states in these critical areas: · $25 billion for school renairs and renovations. · $10 billion to address unmet homeland security and infrastructure needs su~s airpgn and Vort security, bioterrofism, and securitv at chemical and nuclear facilities. · $10 billion in one-time one-year increase of federal Medicaid payments. · $5 billion to states for highway and transportation funds. Buttress investments in current and future public infrastructure and service needs through $~0 billion in federal aid for localities. NLC proposes a one4ime one-year infusion of federal aid to both enhance funding for existing block grant programs and target critical local needs: · $7 billion for first responder grants to help local first responders hire, equip, and train additional personnel. · $5 billion to rehabilitate, replace and maintain the nation's aging water infrastructure network. · $3 billion in local law enforcement grants to hire an additional 30,000 law enforcement officers, training and procurement of equipment. · $2.5 billion for transportation projects that would create jobs and spur economic activity. · $1.5 billion in funding for the HOME program to increase affordable housing reduce homelessness, and fund the President's down-payment assistance initiative. · $1 billion for emergency school repairs and renovations. DeStefano announced the plan today at a press briefing with immediate past NLC president Karen L Anderson, mayor of Minnetonka, Minn. and NLC second vice president Anthony A. Williams, mayor of Washington, DC. The National League of Cities is the oldest and largest national organization for American cities. NLC serves as a resource and advocate for 18, 000 cities, towns and villages of all sizes, .from New York City to Bee Cave, Texas, which collectively serve 225 million people. Visit www. nlc. org. January 23, 2003 To: Respond,rs of the Fiscal Questionnaire From: Donald I Bonlt Subject: Fiscal Conditions Press Release I understand that you took time out of your busy schedule last week to assist the National League of Cities with important fiscal information that would be used at a press briefing by NLC Presidem John Stefano, Mayor, New Haven, Connecticut. The press briefing went very well and we are hopeful that it will create some attention to the economic situation that is facing cities in our country. I have included in this memorandum a copy of the press release, ffyou have any questions, please call John Pionke at (202) 626-3051 or e-mail at pionke(~.~nlc.urg. Because I know you have many demands on your time, I truly appredate your participation in this effort. Thank you. Enclosure IP18 MINUTES APPROVED CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE MONDAY, DECEMBER 16, 2002 LOBBY CONFERENCE ROOM Members Present: Ernie Lehman, Dee Vanderhoef Members Absent: Ross Wilbum Staff Present: Steve Nasby City Council Members Present: Steve Kanner, Irvin Pfab Others Present: Joe Paso, Vanessa Miller Call To Order Ernie Lehman called the meeting to order at 8:12 AM. Approval of Minutes of October 17, 200 and November 6, 2002 Minutes were approved as submitted. All in favor 2-0. (Wilburn absent.) Other Business Iowa Workforce Development (Dee Vanderhoet): Vanderhoef explained she was at a meeting recently where Jane Barrow (?) from Work Force Development was talking about the State recognizing that work keys is a more important piece than originally thought. It is also more expensive than what they thought could be passed on by each Company or Chamber supporting Work Keys. The State Work Force Development is going to look at increasing some funding for Work Keys. This raises the question: should Economic Development Committee be looking at and reviewing work keys? There is another group, Work Place Learning Connection, headed by Mary Lou Erlacher and the local office person is Nancy Quellhorst. What Vanderhoef would like to do is have one of these people from Work Place Learning Connection, as well as Sharon Drayly (for work keys, to come and present to the committee about each program. Lehman suggested each group prepare information for committee members to review and research before each presents to the committee. Raso noted the State might be in the process of looking at reorganization of the Work Keys program because of the expense. They may just pilot certain areas instead of blanketing the entire State. Vanderhoef agreed this may be the case and there will be more information from the State in January. She wants the committee to be informed and ready to move on issue. Lehman suggested the gathering of information to get up to speed on the issue and the committee to wait and see what the State is going to do. Also, to have the two groups come to a meeting as previously mentioned. Vanderhoef agreed. Technology Corridor Cultural Resource Guide - Lehman, Vanderhoef and Nasby commented on what a nice piece this is, it is a wealth of information and a great resource guide. They noted that Joe Paso was a partner in creating this guide. Schedule Date and Time of Next Meeting - Thursday, January 16, 2003 at 9:00AM. Discussion and Recommendation on CDBG Application - Biq Mama's BBQ Economic Development Committee Minutes December 16, 2002 Page 2 Lehman introduced the application for CDBG for Big Mama's BBQ. Nasby introduced Para Rogers, the applicant. Vanderhoef asked for clarification of the 30 percent of the median income level for a 4-person household. This was to determine if the proposed wages meet the goal of having a living wage. Nasby answered that he did not have the numbers with him, but thought the number was approximately $18,720. He added that these numbers come from HUD and are adjusted annually and only the one job proposed at $9.00 per hour appears to meet the goal of a living wage mentioned in CITY STEPS as $9- 10 per hour. Lehman asked for clarification if the head chef/general management is Ms. Rogers and if the salary listed for that position is for her. Rogers said that she will be the head chef/general manager and that is why there was not a number listed for owner withdrawal or salary. Lehman noted an error on the Profit/Loss (P/L) projections. Expected sales were listed as $160,000 and purchases of food were added to sales figure and should actually be deducted, as they are an expense/cost. The number, $201,000, is then off by $37,000. This should be subtracted. Ms. Rogers explained this was an error made in haste when the numbers were converted from her hand written projections onto the spreadsheet. Lehman asked how cost of utilities was figured. Rogers answered that she went off the old utility records while making adjustments for her specific kinds of equipment. Lehman had questions about P/L statement concerning the lease and the common area share of area taxes and maintenance, and personal health care expenses. Rogers responded that the share of common area taxes and maintenance are included in the rent and she was working with the landlord to have a negotiated cap of $2.28 per square foot over the term of the lease. Vanderhoef questioned accuracy of numbers on the expense sheet on repairs and maintenance. The numbers do not correspond from projection sheet and year 2. They begin $1085.00 and change to $400.00 the next year. Also, the numbers for insurance do not correspond. Rogers answered it was again a typographical/transcription error and she would make the corrections. Lehman asked the status of her State loan of $25,000.00. Rogers noted the loan request is still being processed. Rogers said she might have to re-apply, as the State did not have record of a previous application she had submitted. Lehman noted that the financial projections do not include any debt service and if she did get the State loan the repayments would have to show up. He estimated that the State loan repayment could be covered in the first year, based on the projections, but would cause a negative cash flow in year two. Vanderhoef and Nasby asked about workmen's comp insurance. It is included in the original quote for business casualty/liability insurance. They suggested Rogers include a letter from insurance company with her proposal. Nasby asked Rogers where State sales tax payments were accounted for in both the income and expense sides of the financial information. Rogers said that sales tax would be collected with the sale and sent to the State and as such it was not shown separately. Lehman and Vanderhoef suggested that the financial records might want to mention this, as it could be a question later on or with the State application. Lehman concluded by suggesting Rogers speak with Dean Thornberry to review numbers and to get feedback on the business. Also, to get in touch with the State to find out the status of her loan application. Rogers also needs to include the principal and interest payments from the loan, health insurance costs and sales tax figures in the projection revision. The committee is also happy to meet with Rogers before the next scheduled January meeting if necessary. Economic Development Committee Minutes December 16, 2002 Page 3 Update CDBG funded Projects - Revolt Skateboard Park & Enqlert Theatre Revolt Skateboard Park- Nasby said that the State was scheduled to meet last week and that he should know this week if Revolt will receive a loan from the State of Iowa. Englert Theatre - Nasby reported the Englert Fund Raising Committee feels confident they will meet their fund raising goal and would give the Council ED Committee a formal report in January. Vanderhoef asked if any group has renegotiated with State for a lesser amount of what they could match. Nasby said he did not know, but could research. Lehman believes the time frame can be renegotiated with the State, possibly an extension, but said it is their call. Adjournment Ernie Lehman adjourned the meeting at 8:55 AM. ****Next meeting will be Thursday, January 16, 2003 at 9:00AM**** shared on cityntJpcd/minutes/hcdc/hcdc12-16~2.doc BUILDING PERMIT INFORMATION ~0° January 2003 ! A. /~ff( KEY FOR ABBREVIATIONS · Type of Improvement: ADD - Addition ALT- Alteration REP - Repair FND - Foundation Only NEW- New OTH - Other type of construction Type of Use: RSF - Residential Single Family RDF - Residential Duplex RMF - Three or more residential RA C- Residential Accessory Building MIX- Mixed NON- Non-residential OTH- Other Page: 2 - City of Iowa City Date: 2/3/2003 Extraction of Building Permit Data for To:1/1/2003 Census Bureau ,, From: 1/31/2003 Type Type Permit Number Name Address lmpr Use Stories Units Valuation BLD02-00734 WEST HIGH SCHOOL 2901 MELROSE AVE ADD NON 1 0 $40,000 ADDITION TO HIGH SCHOOL FOR BASEBALL PRACTICE AREA BLD03-00018 HO, BRIAN 21 STURGIS CORNER DR ADD NON 1 1 $1,300 EXTERIOR MASONRY FENCE WITH LIGHTING FOR RESTAURANT Total ADD/NON permits: 2 Total Valuation: $41,300I BLD02-00816 BAHRICK, AUDREY S 830 N DODGE ST ADD RSF 2 1 $28,000 ADDITION TO SFD BLD02-00844 JANE THERME 1638 LANGENBERG AVE ADD RSF 2 1 $18,100 ADDITION TO SFD BLD03-00001 ROBERT A MCCOWN & JUD 44 EALING DR ADD RSF 2 1 $12,500 3 SEASON PORCH ADDITION TO SFD BLD03-00013 LEON E & MARY S SCHLUE~ 3 WAKEFIELD CT ADD RSF 2 1 $11,953 3 SEASON PORCH AND DECK ADDITION TO SFD BLD03-00038 LUCILLE E KOONTZ 1009 TOWER CT ADD RSF 1 0 $6,250 ADD THREE FEET TO EXISTING SCREEN PORCH BLD03-00005 HENNAGER, JOSEPH S 312 RONALDS ST ADD RSF 3 1 $1,000 DECK ADDITION TO SFD Total ADD/RSF permits: 6 Total Valuation: $77,803 I BLD03-00023 MID-EASTERN IOWA COMIV 507 COLLEGE ST ALT NON 3 1 $15,000 FILE STORAGE AND OFFICE BLD03-00008 PROCTER & GAMBLE HAIR 2200 LOWER MUSCATINE ALT NON 2 1 $12,000 INTERIOR OFFICE IN CENTRAL PREWEIGH ADDITION BLD02-00825 AMBROSE, GERRY 1555 S 1ST AVE ALT NON 1 1 $10,000 DEMISING WALLS FOR OLD BOWLING ALLEY SPRINKLING REQUIRED BLD03-00047 MERCY FACILITIES INC 540 JEFFERSON ST ALT NON 1 0 $3,000 #201 SUITE REMODEL IN MEDICAL BUILDING Total ALT/NON permits: 4 Total Valuation: $40,000 BLD03-00044 UNIVERSITY VIEW PARTNE 108 S LINN ST ALT RMF 1 0 $500 INSTALL FIRE ESCAPE AND DOOR TotalALT/RMF permits: 1 Total Valuation: $500 BLD02-00839 STEWART, LINDA ZILLER 4707 CANTERBURY CT ALT RSF 2 1 $30,500 BASEMENT FINISH OF SFD BLD03-00004 HOLT, GRETCHEN B 921 BOWERY ST ALT RSF 1 1 $30,000 KITCHEN REMODEL OF SFD BLD02-00858 CUMMING, STUART G 1240 TEG DR ALT RSF 2 1 $20,000 BASEMENT FINISH OF SFD Page: 3 ' City of Iowa City Date: 2/3/2003 Extraction of Building Permit Data for To: 1/1/2003 From: 1/31/2003 CeBSLIS Bureau Report Type Type Permit Number Name Address Impr Use Stories Units Valuation BLD03-00036 ROSALIE R RO SE 2022 GRANTWOOD ST ALT RSF 1 0 $11,000 REMODEL BATHROOM AND LAUNDRY ROOM BLD03-00020 LEMONS, JERRY A 4861 SOUTHCHASE CT ALT RSF 1 1 $7,968 CONVERT SCREEN PORCH TO 3 SEASON PORCH BLD03-00037 WILLIAM & MICHELLE WAI 1511 DICKENSON LN ALT RSF 1 0 $6,500 BASEMENT FINISH OF SFD BLD03-00012 JOSEPH D & BEATRICE C Gl 430 S DODGE ST ALT RSF 2 1 $6,000 CONVERT SCREEN PORCH TO HABITABLE SPACE BLD03-00016 STEVE KOHLI CONSTRUCTI 1512 LANGENBERG AVE ALT RSF 2 1 $5,500 BASEMENT FINISH OF SFD BLD03-00022 DOUGLAS K & JOANNES M. 244 WOOLF AVE ALT RSF 1 1 $5,000 REPLACE ONE WINDOW WITH SIX WINDOWS BLD03-00030 AULT, PETER H 716 E BLOOMINGTON ST ALT RSF 1 0 $4,000 INSTALL NEW BATHROOM IN EXISTING HOME BLD03-00035 SCOTT, KIMBERLY A 531 CLARK ST ALT RSF 1 0 $4,000 REMODEL OF SFD BLD03-00009 TIMOTHY S WEITZEL & WE 523 GRANT ST ALT RSF 2 1 $1,300 BASEMENT BATH AND LAUNDRY BLD02-00817 MARK K REAGAN & NANC'~ 10 GLENDALE CT ALT RSF 2 1 $934 ADD BASEMENT BEDROOM TO SFD I Total ALT/RSF permits: 13 Total Valuation: $132,702 I BLD03-00006 TERRY L STAMPER HOLDIN 1072 FOSTER RD END RSF 2 1 $0 FOUNDATION "THE SANDBURG" [ Total FND/RSF permits: 1 Total Valuation: $0~ BLD03-00002 JIM & JANE WELSH 73 HICKORY HEIGHTS LN NEW RSF 1 1 $365,000 SFD WITH ATTACHED 3 CAR GARAGE BLD03-00026 TOM & ROSE FAGAN 943 TAMARACK TRL NEW RSF 2 1 $273,989 SFD WITH ATTACHED 2 CAR GARAGE BLD02-00829 TERRY L STAMPER HOLD1N 1059 FOSTER RD NEW RSE 2 1 $202,110 SFD "The Baldwin" BLD02-00796 TERRY L STAMPER HOLDIN 1072 FOSTER RD NEW RSF 2 1 $199,632 S.F.D.WlTH NO GARAGE "THE SANDBURG" BLD03-00028 JASON LEE 3409 KEARNEY LN NEW RSF 1 1 $195,000 SFD WITH ATTACHED 3 CAR GARAGE BLD02-00852 WALDEN WOOD ASSOCIAT] 90 ANDREA CT NEW RSF 2 I $183,135 SFD WITH ATTACHED 2 CAR GARAGE BLD02-00847 STEVE KOHLI CONSTRUCTI 2841 RUSSELL DR NEW RSF 2 1 $176,479 SFD WITH ATTACHED 3 CAR GARAGE BLD02-00851 WALDEN WOOD ASSOCIAT! 74 ANDREA CT NEW RSF 2 1 $168,404 SFD WITH ATTACHED 2 CAR GARAGE Page: 4- City of Iowa City Date: 2/3/2003 Extraction of Building Permit Data for To:1/1/2003 remus Bureau ~p~L~'e-o'~ From: 1/31/2003 Type Type Permit Number Name Address Impr Use Stories Units Valuation BLD02-00860 STEVE KOHLI CONSTRUCTI 1425 LANGENBERG AVE NEW RSF 2 1 $164,000 SFD WITH ATTACHED 3 CAR GARAGE Total NEW/RSF permits: 9 Total Valuation: $1,927,749 ~ BLD03-00003 IOWA BOOK LLC 8 S CLINTON ST REP NON 1 0 $ ! 9,750 REROOF OF COMMERCIAL BUILDING Total REP/NON permits: I Total Valuation: $19,750 ~ BLD02-00752 BRADFORD J HOUSER 1256 DOLEN PL REP RDF 1 0 $3,200 REPLACE WINDOWS IN DUPLEX BLD02-00751 HOUSER, BRADFORD J 1339 -41 DOLEN PL REP RDF 1 0 $3,000 REPLACE WINDOWS Total REP/RDF permits: 2 Total Valuation: $6,200 I BLD03-00011 TBS INVESTMENTS 331 S J'OITNSON ST REP RMF 2 1 $44,500 WINDOW REPLACEMENT AND SIDING IN RMF BLD03-00010 BOWERY HOUSE INC 501 BOWERY ST REP RMF 2 1 $1,081 WINDOW REPLACEMENT IN RMF UNIT BLD03-00045 COLLEGE TOWN PARTNER~ 221 S SUMMIT ST REP RMF 1 0 $250 WINDOW REPLACEMENT IN LIVING ROOM Total REP/RMF permits: 3 Total Valuation: $45,831 BLD03-00014 SYSTEMS UNLIMITED INC 1136 DOWNEY DR REP RSF 2 1 $3,500 WINDOW REPLACEMENT I Total REP/RSF permits: 1 Total Valuation: $3,500 I GRAND TOTALS: PERMITS: 43 VALUATION: $2,295,335 MINUTES PRELIMINARY IP20 HOUSING AND COMMUNITY DEVELOPMENT THURSDAY, `JANUARY 16, 2003 -6:30 PM. CIVIC CENTER LOBBY CONFERENCE ROOM Members Present: Amy Correia, Matthew Hayek, `john Deeth, Lori Bears, Jerry Anthony, Rick House, Mark Edwards Members Absent: ,Jayne Sandier, Morgan Hoosman Council Members Present: None Staff Present: Tracy Hightshoe Others Present: Maryann Dennis, Members of Greater Iowa City Housing Fellowship, `jesse Burns and Bob Burns Recaptured funds policy- Recommendation to Council MOTION: Bears moved to accept the submitted proposal for the Unsuccessful or Delayed Projects Policy to be sent to Council for review/approval. Motion seconded by House. All in favor, motion passed 7-0. MOTION: Anthony moved to amend the Unsuccessful or Delayed Projects Policy to have it read "to begin in Fiscal Year '04". Motion seconded by Deeth. All in favor, motion passed 7-0. Call to Order Amy Correia called the meeting to order at 6:35 PM. Approval of December 19, 2002 Minutes MOTION: Anthony moved to change minutes under report of Greater Iowa City Housing Fellowship to read "Anthony provided information regarding FY02 & FY03 projects". Aisc to amend Hayek's comment on inspection fee to read, "He noted the amount doesn't seem that large except when it is applied to large property owners." Hayek seconded the motion. All in favor, motion passed 6-0 (House not yet present). Public/Member Discussion of Items Not on the Aqenda Correia noted Ruby's Pearl project is not on list of projects to be monitored and it should be as a carry over project like the Peninsula project. Ruby's Pearl project will be added to list and monitored by Correia. Monitorin,q Reports Greater Iowa City Housing Fellowship (GICHF)- Correia asked if members had a chance to read letter sent in by MaP/ann Dennis from GIGHF. Hayek asked if Dennis could walk the committee through the letter and explain GIOHF's current projects. Dennis reviewed the agency's purpose, background, and the status of all projects and funding listed on letter to the Housing and Community Development Commission (dated 1-2-03). Rick House arrives. Review of the FY04 CDBG/HOME Allocations Schedule Hightshoe asked if members of the committee wanted to tour proposed FY04 projects. If so, a date needs to be set. The applications are not due until January 24, 2003 and a schedule to tour can be set up after that date. The committee responded they would like to tour some of the proposed project sites. Hightshoe noted a limited number of members can tour at a time or a quorum will exist and minutes would have to be taken as it would be a public meeting. Housing and Community Development Minutes January 16, 2003 Page 2 Hightshoe will e-mail members with a proposed schedule. If a quorum is present staff will advertise and proceed as a public meeting. Proforma Basics Hightshoe discussed the Proforma spreadsheet included in the Housing Application. A section of the guide, Bank-Ability is provided for HCDC review. The guide lays out general rules for project expenses, sources, etc. The proforma will be used to compare each housing application as evenly as possible. Through the proforma we can compare costs per unit with other applications in regards to revenue generated, operational expenses, cash flow, etc. Staff will also review the proformas. The staff analysis will highlight any areas that seem too Iow or too high, anything that appears odd or expenses that are not considered reasonable and customary and bring them to the attention of the committee. These might be areas to address with the applicants in the question and answer session. Hightshoe stressed this is a tool for comparison of projects, the City does not want to fund projects that cannot support themselves but they also don't want to over subsidize projects. Commission questioned if there were specific items staff would look at in the evaluation. Hightshoe stated staff would look at the debt to income ratio, which is the net operating income divided by total debt to be paid. If under 1.0, the project is not feasible, as it will not be able to service its debt. If over 1.15, the project could support higher interest or the applicant could afford higher amounts of debt. Staff will also review operating costs/expenses to make sure they are not under or overestimated. The second half of the proforma considers tax implications. Those non-profits that do not pay taxes should have 0% tax implications. The second half of the proforma will review depreciation, reserves, and tax rate. LIHTC applications will have a strong return on investment for the first 10 years, but a small return on investment in prior years; thus staff will look at an average return over the 20-year proforma for comparison. Old Business The Committee discussed the Unsuccessfur or Delayed Projects Policy. Correia asked if anyone had any changes or suggestions for the policy. Commission questioned if there were any problems with timely expenditure of HOME funds historically. Hightshoe stated she would inquire with staff and email/mail the findings to commission members. Hightshoe stated our contract provides a legal mechanism to recapture funds if problems are encountered such as land purchased, but no development, etc. Hayek questioned when HOME funds must be committed. Correia questioned if we would apply this policy to old projects. Commission decided to apply the policy to all subsequent projects beginning with the FY04 allocations. Hightshoe stated that all FY04 successful applicants will receive a copy. MOTION: Bears moved to accept the submitted proposal for Unsuccessful or Delayed Projects Policy. Motion seconded by House. All in favor, motion passed 7-0. MOTION: Anthony moved to amend the Unsuccessful or Delayed Projects Policy to have it read "to begin in Fiscal Year '04". Motion seconded by Deeth. All in favor, motion passed 7-0. Adiournment MOTION: House moved to adjourn meeting. Deeth seconded motion. All in favor, motion passed 7-0. Meeting adjourned at 7:40PM. MINUTES Preliminary IP21 PLANNING AND ZONING COMMISSION JANUARY 16, 2003 EMMA J. HARVAT HALL MEMBERS PRESENT: Ann Freerks, Benjamin Chait, Don Anciaux, Ann Bovbjerg, Beth Koppes, Dean Shannon, Jerry Hansen STAFF PRESENT: Bob Miklo, Jessica Hlubek, John Yapp, Mitch Behr RECOMMENDATIONS TO COUNCIL: Recommended approval, by a vote of 7-0, SUB02-0002~, a final plat of Hearthside Refuge, a 5.6-acre, 4-lot residential subdivision located at 1520 N. Dubuque Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Recommended approval, by a vote of 7-0, SUB02-0002~, a final plat of Ruppert Hills, a 22.92-acre, 4-lot residential subdivision located on the north side of HWY 1 West subject to staff approval of legal papers prior to Council consideration. Recommended approval, by a vote of 7-0, SUB02-00028, a final plat of Windsor Ridge part 17A, a 2.84-acre, l-lot residential subdivision located at the intersection of Ashford Place and Camden Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Recommended approval, by a vote of 7-0, the addition of an updated Arterial Street Plan to the Comprehensive Plan. Recommended approval, by a vote of 7-0, REZ02-00024/SUB02-00027, amendments to the Peninsula Neighborhood OPDH Plan, including amendments to the Development Code and Regulating Plan and amendments to the Final Plat of the Peninsula Neighborhood First Addition, an 11.99-acre, 33 lot subdivision located at the west end of Foster Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Recommended approval, by a vote of 7-0, REZ02-0002:~, a rezoning from Community Commercial (CC-2) to Public (P) for 1.6-acres located at 1828 Lower Muscatine Avenue. CALL TO ORDER: Bovbjerg called the meeting to order at 7:35 pm. REQUEST FOR REVISION OF THE ORDER OF AGENDA ITEMS: Motion: Hansen made a motion to move agenda items "F. Development Items", after "C" and before "D" on the evening's agenda. Anciaux seconded the motion. The motion passed on a vote of 7-0. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: There was none. ANNOUNCEMENT OF VACANCIES ON CITY BOARDS AND COMMISSIONS: Planning and Zoning Commission Minutes January 16, 2003 Page 2 Bovbjerg encouraged members of the audience to assist the City by becoming an active member of a board or commission. She said a listing of current vacancies on the various City boards and commissions was posted in the outer lobby. DEVELOPMENT ITEMS: SUB02-00024, discussion of an application submitted by Tom Lewis for a final plat of Hearthside Refuge, a 5.6-acre, 4-1or residential subdivision located at 1520 N. Dubuque Road. Miklo said that the final plat as submitted was in general conformance with the approved preliminary plat. Staff recommended approval of SUB02-00024, subject to staff approval of legal papers and construction drawings prior to City Council consideration. Public discussion was opened. There was none. Public discussion was closed. Motion: Hansen made a motion to approve, SUB02-00024, a final plat of Hearthside Refuge, a 5.6-acre, 4-lot residential subdivision located at 1520 N. Dubuque Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Shannon seconded the motion. The motion passed on a vote of 7-0. SUB02-00025, discussion of an application submitted by Callaway Development Inc. for a final plat of Ruppert Hills, a 22.92-acre, 4-lot subdivision located north of HWY I and west of Miller Avenue. Miklo said that the final plat as submitted was in general conformance with the approved preliminary plat. Construction documents were not required because there would be no public improvements with this subdivision. Staff recommended approval of SUB02-00025, subject to staff approval of legal papers prior to City Council consideration. Public discussion was opened. Anna Buss, 830 Miller Avenue, asked for a clarification of the location of the proposed driveway onto HWY 1.Miklo said it would be located directly across from Ruppert Road. Buss asked for an update regarding a turn lane on Benton and Miller streets. She said it was already a dangerous corner. Buss also requested that consideration be given to adjusting the traffic light on Miller Avenue because vehicles currently could not safely enter onto HWY 1 .Miklo said those items were already noted in the Southwest District Plan. As development occurred, the City would keep an eye on Miller Avenue's traffic patterns and initiate traffic calming measures if and when it became necessary. Buss said she was aware that the parcel on Miller Avenue would be developed at some time. She invited P&Z Commissioners and City Staff to come and park in her driveway to get a first hand view of the traffic patterns and problems which existed now, even before additional development occurred on/near Miller. For the record, Buss wished to note that she did have concerns regarding the additional traffic when future development occurred. Public discussion was closed. Motion: Anciaux made a motion to approve SUB02-00025, a final plat of Ruppert Hills, a 22.92- acre, 4-1or residential subdivision located on the north side of HWY I West subject to staff approval of legal papers prior to Council consideration. Shannon seconded the motion. The motion passed on a vote of 7-0. Planning and Zoning Commission Minutes Janua~ 16,2003 Page 3 SUB02-00028., discussion of an application submitted by Arlington, LC for a final plat of Windsor Ridge 17A, a 2.84-acre, l-lot residential subdivision located at the intersection of Ashford Place and Camden Road. Miklo said that the final plat was in general conformance with the approved preliminary plat. Fees would be required for the improvement of Lower West Branch Road for 2.84 acres at $3,122 per acre, which should be noted in the legal papers. Staff recommended approval of SUB02-00028, subject to staff approval of construction drawings and legal papers prior to City Council consideration. Public discussion was opened. There was none. Public discussion was closed. Motion: Koppes made a motion to approve SUB02-00028, a final plat of Windsor Ridge part 17A, a 2.84-acre, 1-lot residential subdivision located at the intersection of Ashford Place and Camden Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Freerks seconded the motion. The motion passed on a vote of 7-0. COMPREHENSIVE PLAN: Public hearing on an amendment to the Comprehensive Plan to include the updated Arterial Street Plan. Miklo said Jeff Davidson, Transportation Planner, had given a detailed report at Monday's informal Commission meeting. Every five years, JCCOG was required to update the Arterial Street Plan. The revised JCCOG Arterial Street plan was similar to the 1991 plan. It incorporated a complete update of the JCCOG arterial street traffic analysis model which forecasted deficiencies in the arterial street system. The identified deficiencies provided the basis for future arterial street capital improvements. In Fall, 2002, the JCCOG Urbanized Area Policy Board approved a new Long-Range Multi-Modal Transportation Plan, which included an updated arterial street plan section. The entire JCCOG Long-Range Multi-Modal Transportation Plan was available online at www. icqov, orq/iccoqplan.htm. Public discussion was opened. There was none. Public discussion was closed. Motion: Hansen made a motion to add the updated Arterial Street Plan to the Comprehensive Plan. Koppes seconded the motion. The motion passed on a vote of 7-0. ZONING/DEVELOPMENT ITEMS: REZ02-00020., discussion of an application submitted by Paddock L.L.C. for a rezoning from Factory Built Housing Residential Zone (RFBH) to Planned Development Housing Overlay 12 (OPDH-12) and an OPDH plan for Saddlebrook Addition Part 2, a 2.8-acre 26-unit multi-family housing development located on the east side of Heinz Road east of Paddock Boulevard. Miklo said the Saddlebrook development, over 200 acres, was annexed into the City in 1994.Heinz Road, a collector street, provided access from HWY 6 to the development. This property and the larger area to the west were zoned Residential Factory Built Housing (RFBH); the area to the north of this property was zoned Medium Density Multi-Family (RM-20.)Miklo said the applicant had requested to rezone Lot 5 of Saddlebrook Addition, Part 2, to allow the Planning and Zoning Commission Minutes January 16, 2003 Page 4 development of 26 townhouse-style units, which the applicant intended to market to individual owners as condominiums. When the applicant inquired about rezoning this properly to allow additional 10- or 12-plex apadment buildings in the area, staff had advised the applicant that such a rezoning would be counter to the South District Plan as well as to the overall Comprehensive Plan, which discouraged the concentration of large apartment complexes in developing neighborhoods. Therefore, the applicant had proposed rezoning this property to Planned Development Housing Overlay 12 (OPDH-12) and an OPDH plan for Saddlebrook Addition Part 2. Most of the proposed townhouse units would have parking behind the buildings in two car garages. An 18-foot wide private rear lane would provide access to the parking for all of the units. No parking would be allowed on the private rear lane. The proposed townhouse style- units would lend housing diversity to the neighborhood. Miklo said staff had estimated that the actual number of manufactured housing units would be approximately 10-15, given that there would need to be at least a private street to serve the individual manufactured housing units. The proposed 26 dwelling units would result in a higher density than the current zoning normally would produce. However, in this case staff felt the increase in density would not be unreasonable provided that the additional units could be located on the lot and still allow for open space. The applicant had proposed two areas of common open space for use by the residents of the development - 10,000 square feet of open area in the northeast corner of the development and a smaller landscaped area on the eastern side of the property. Heinz Road, a collector street, currently is the only access to over 500 potential housing units. A previous CZA on this property limited development of the overall Saddlebrook development to 460 housing units prior to the construction of a secondary vehicular access. Currently there are 233 housing units within Saddlebrook and 48 units under construction. The additional 26 housing units proposed by this rezoning would be allowed, but once 460 units are built, no further units may be located in the development until a second means of street access is provided. Miklo said staff recommended approval of REZ02-00020, a rezoning from RFBH to OPDH-12, and a preliminary Planned Development Housing Overlay for 26 townhouse style dwelling units located on the east side of Heinz Road east of Paddock Boulevard. Hansen asked if the Fire Marshall had looked at the driveway plan. Miklo said the Fire Marshall had looked at the plan closely and had requested modifications to the original plan. Those modifications had been made with respect to providing access and emergency access to the rear of the proposed townhouse units.. Koppes asked about the placement of a stoplight on Heinz Road. Miklo said Davidson had been working with the Iowa Depadment of Transportation. If there became the need for additional turn lanes in the area, the City hoped to install them with DOT assistance. However, there currently was not a warrant for a stop light at that intersection. The City would continue to monitor the situation and traffic. Koppes asked if a note or amendment could be included with the legal documents regarding at the time a stoplight was installed, the applicant would be required to financially assist with the installation. Miklo said with this particular development (10-15 units), there would not be sufficient development to require payment by the applicant for a portion of the signal. Bovbjerg asked if the signal would be the DOT's or the City's responsibility to fund. Miklo said he would check with Davidson for the correct answer. Bovbjerg asked how soon after recognition by the City that traffic patterns had changed, would the DOT review the situation? Miklo said he would check with Davidson for the answer. Planning and Zoning Commission Minutes January 16, 2003 Page 5 Public discussion was opened. Steve Gordon, 1718 Timber Hills Drive, Coralville, said he worked for A.M. Management, the managing company for Paddlock L.L.C. and the Saddlebrook development. He said the last traffic study was done August, 2002, but it did not say how often a traffic study would be done in the future. Gordon said they felt it was important to look at this project as a pad of the entire Saddlebrook development. The original annexation into Iowa City occurred in 1994 and consisted of a total of 419 acres. Of this land, 38 acres is currently used by the City for the south side stormwater management system, 192 acres was put into a conservation easement for wetlands and green space preservation, and 189 acres was zoned for development with a mixture of Iow and medium density residential and multi-family housing. Gordon said the Saddlebrook development was originally created with a vision of providing community value and lifestyle for its residents and contained 99 acres of 189 total acres available for development. Sixty apartment units had recently been completed with an apartment building design that was new to the Iowa City area. Forty-eight condo-units were recently constructed and sold to a variety of families, 48 more units were under construction for completion/sale in 2003.The Paddock, a single-family home community, had an average of 20 new home-owners per year. In 2002, approximately 100 new families moved into the Saddlebrook development. Development amenities included a full club house, walking trails throughout the development which would eventually hook into the City-wide trail system, 2 ponds stocked with fish, picnic and playground areas, basketball court, green space and the 192-acre conservation area. Gordon said the Belmont Townhomes, the housing option before the Commission, would provide additional diversity to the types of housing offered while maintaining affordability. They had worked with staff over several months to design a neighborhood that met the goals and intentions of the Comprehensive Plan. Bovbjerg said her concern was the crowdedness of the area of the four 'ones' in the back. From the original platting, this would have been 5 or 6 single-family homes. Townhouses, as a transition, and as a way of increasing density in this area of Heinz Road seemed good, but the four units in the back seemed to be crowding what could be a backyard. Bovbjerg said the more persons put on any acres, the more space she would like to see available to them to get out and relax. Gordon said in working with Staff, their original design looked quite different. Bovbjerg's concern had also been one of staff's concerns. With the two designated green spaces and with the addition of open space and amenities within the development as a whole, and in keeping with the objective of trying to keep the units affordable, Gordon said they felt the final drawing provided adequate green space. Bovbjerg said Gordon had frequently used the term affordable. In AM Management's letter to the Commission, the letter listed prices for Belmont Townhomes starting at $120,000. Gordon said anticipated costs would be in the $120,000 range for one car garage, smaller units in the back, to $130,000-$135,000 for the units in the front. Ownership would be a condominium regime - persons would have direct ownership of their unit and 1/26 ownership in the common space. The Condo Association would hire out snow removal, lawn care and landscaping. Gordon said they currently provided that service for the condos located to the north of this project and would continue to provide that service for the proposed townhomes. He said usually when 75% of the units were sold, the Association was turned over to the owners and it would be their choice how they wanted to handle the upkeep of the property. Bovbjerg said she appreciated the redesign of the roofs which made the units look more intimate. Bovbjerg said her concern was affordability and accessibility to people of all abilities. She asked if any of the units would be available for subsidized housing and if they planned to have units that were disability accessible or could be modified to be so. Gordon said all the units Planning and Zoning Commission Minutes January 16, 2003 Page 6 would be 'for sale' not rental units. All the units would be two story so they would not be handicap accessible due to their two-story nature. The condominium units to the north had 4 units in each building on the main floor which were handicap accessible. Thirty of the 60 apartments were located the main floor which were also handicap accessible. Public discussion was closed. Motion: Freerks made a motion to defer REZ02-0002q, a rezoning from RFBH to OPDH-12, and a preliminary Planned Development Housing Overlay for 26 townhouse style dwelling units located on the east side of Heinz Road east of Paddock Boulevard. Shannon seconded the motion. The motion passed on a vote of 7-0. REZ02-00024/SUB02-00027, an application submitted by T.L. Stamper Holdings for an amended Planned Development Housing Overlay Plan (QPDH-5), and a final plat of the Peninsula Neighborhood, First Addition, a 11.99-acre, 33-1ot subdivision located on the west end of Foster Road. Miklo said the regulating plan contained a series of amendments which were discussed in detail during Monday's informal meeting. These code revisions applied to the entire property. The final plat applied to only the northeastern portion of the overall development. The regulating plan was being amended to coincide with some of the changes that applied to the final plat. Miklo said in terms of the physical design of the development, the original plan showed a small apartment building on Lot 16.The proposal was to move it to the other side of the street to Lot 15. The townhouses that would have been on that site would be replaced by a small apartment building with 9~units. Lots 16 and 17 were proposed to be divided into two lots to allow row houses on Lot 16 and one single-family house on Lot 17A and four townhouses on Lot 17.Lots 5-7 were proposed to be made narrower to allow the addition of Lot 7A. Miklo said staff recommended approval of the proposed amendments to the plat and the regulating plan subject to staff approval of legal papers and construction drawings prior to City Council consideration. Bovbjerg asked if there was a change in housing style or density. Miklo said no new styles were being added to the development, but they were being shifted around on the property. The general feeling of the streets remained the same. Bovbjerg asked if the amendment contained changes in wording. Miklo said that was correct. Bovbjerg said if persons had questions/discussion about those changes that should be included in the pending motion. Public discussion was opened. There was none. Public discussion was closed. Motion: Shannon made a motion to vote on item REZ02-00024/SUB02-00027 at this meeting. Hansen seconded the motion. The motion passed on a vote of 7-0. Motion: Hansen made a motion to approve REZ02-00024/SUB02-00027, proposed amendments to the Peninsula Neighborhood OPDH Plan, including amendments to the Development Code and Regulating Plan and amendments to the Final Plat of the Peninsula Neighborhood First Addition, an 11.99-acre, 33 lot subdivision located at the west end of Foster Road subject to staff approval of legal papers and construction drawings prior to Council consideration. Shannon seconded the motion. Planning and Zoning Commission Minutes January 16, 2003 Page 7 The motion passed on a vote of 7-0. REZ02-00023, discussion of an application submitted by Kirkwood Community College for a rezoning from Community Commercial (CC-2) to Public (P) for 1.6-acres located at 1828 Lower Muscatine Avenue. Hlubek presented staff report. She said this was the old Hardee's restaurant property located next to Kirkwood Community College (KKC).KKC had purchased the property in hopes to expand its center. The property, currently zoned Community Commercial (CC-2), needed to be rezoned to Public (P). The purpose of a Public Zone was to permit the use of land, buildings and structures of the Federal and State governments and their political subdivisions. Hlubek said staff recommended approval of REZ02-00023, a rezoning from Community Commercial (CC-2) to Public (P) for 1.6-acres located at 1828 Lower Muscatine Avenue. Public discussion was opened. There was none. Public discussion was closed. Motion: Koppes made a motion to approve REZ02-00023, a rezoning from Community Commercial (CC-2) to Public (P) for 'l.6-acres located at 1828 Lower Muscatine Avenue. Anciaux seconded the motion. The motion passed on a vote of 7-0. REZ02-00021, discussion of an application submitted by Kevin Hanick for a rezoning from Central Business Service Zone (CB-2) to Central Business Support Zone (CB-5) for a 6,000 square foot property located at the south east corner of the Dubuque Street / Market Street intersection. Yapp said the application is for the property currently occupied by Johnson's Auto Service. The existing zoning for this property and the near Northside commercial area is CB-2. Yapp said the applicant's argument for rezoning the property to CB-5, which allowed a slightly higher density with fewer parking requirements, was it would be more likely to result in a development of appropriate quality for this gateway location. The Comprehensive Plan identified the entire near Nodhside commercial area as appropriate for mixed, commercial and residential, use development. A CB-5 zone allows for a higher intensity of development and has lower parking standards so staff feels it allows more opportunity for mixed-use development. Yapp discussed the significant differences between CB-2 and CB-5 zone. The CB-2 zone has a floor to area ratio of 2.0, which means that a maximum of 2 square feet of floor area in a building could be constructed per one square foot of lot area. This does not mean that it is a maximum of a 2-story building, it could be a 4-story building if the total quantity of the floor area was no more than twice the lot area. The CB-5 zone has a base floor to area ratio of 3.0 or 3 square feet of floor area per one square foot of lot area. It can be increased up to 5 if the building design included features such as a masonry finish, pedestrian or streetscape enhancements, preservation of historic structures, or provision of open space. The specific criteria are listed in the CB-5 zone. The existing CB-2 parking requirements are similar to requirements in other existing commercial zones. The multifamily parking requirements are based on the number of bedrooms. Retail use parking requirements are I parking space / 200 square feet; office requirements are 1 parking space / 300 square feet; banks were 1 parking space / 200 square feet. Yapp said many of the existing properties in this neighborhood are constructed without off street parking because they are older, more historic buildings. If the buildings were to be redeveloped under existing zoning, parking would be required. Planning and Zoning Commission Minutes Janua~ 16,2003 Page 8 The proposed CB-5 zone has fewer parking requirements for multifamily - 1 parking space / 1 bedroom and 1.5 parking space / 2 bedroom or more; commercial uses - no parking is required. If a property owner chose to provide parking, a maximum of 1 parking space per 500 square feet of floor area is permitted. The parking has to be located behind or under the building. These provisions were to encourage a downtown type of development with pedestrian oriented buildings. Yapp said the CB-5 zone is defined as a transitioning zone from the main downtown Central Business District. Yapp said the permitted types of land uses in the CB-2 and CB-5 zones are very similar. Both allowed a variety of retail, office or personal service uses. In the CB-2 zone, auto oriented uses are permitted, in the CB-5 zone they were not permitted. Hansen asked if they could be put in the CB-5 zone by special exception. Yapp said not currently. An existing auto oriented use would be grand fathered in, a new use or expanded use could not be. Yapp said when staff reviewed this rezoning request, an issue they had considered was the zonings on the rest of the block in an effort to avoid an inconsistent zoning pattern on this block which could be seen as a spot zoning. Staff had contacted other property owners on the block and also mailed them additional information. Staff recommended that zoning on the rest of the block be considered at the next Commission meeting, after properly owners had had a chance to review the information provided to them by staff. Other uses on the block include First United Methodist Church, St. Mary's Church, the Wesley Foundation, Brewery Square and all the businesses it contains. In summary, Yapp said staff recommends approval of REZ02-00021, for the following reasons: the historical development of the uses on this block and many of the uses in the rest of the neighborhood have been very pedestrian oriented with little off street parking provided. With more recent developments, exceptions had begun to occur. Staff recommended that a new building on this property be subject to some design criteria to ensure it would be consistent with the historic character of the area. Yapp noted the applicant had agreed to the criteria. Saint Mary's Church and the Brewery Square building were both on the national register of historic places. Yapp said staff felt that the combination of the higher floor to area ratio and the less parking standards would result in a more mixed use development of this property, as was encouraged in the Comprehensive plan. Chair asked why didn't they just rezone the whole near North Side from CB-2 to CB-5. Yapp said staff had discussed that option. That would be coming before the Commission as part of the Zoning Code update. He said staff were likely to recommend that the CB-2 zone be eliminated all together throughout the City. Staff would look at each CB-2 zone separately. Freerks asked if the applicant had agreed to the design criteria terms set forth by staff. Yapp said that was correct. In response to questions from Bovbjerg, Yapp said Staff would present the rezoning of the whoJe block from CB-2 to CB-5 as a package at the next meeting. The current applicant was willing to waive the 45-day restriction and wait until the next Commission meeting for further action on this rezoning. Chair asked if just this parcel were rezoned to CB-5, would the design criteria apply only to this property. Yapp said that was correct. However, if the applicant waited until the Code was rewritten and the whole area were changed to CB-5, then there would likely not be the opportunity for a Conditional Zoning Agreement regarding the design of a future structure on this property. Planning and Zoning Commission Minutes January 16, 2003 Page 9 Public discussion was opened. Kevin Hanick, 1830 Friendship Street, said real estate was his business. He had initiated the redevelopment of Brewery Square into a mixed use, pedestrian friendly site. When the Guitar Foundation was built, he had gone to great lengths to design a masonry building with a traditional look to it. He said this area is not downtown proper, but has a pedestrian orientation to it. Over the last 10 or 12 years, the community had come to recognize Dubuque Street as a gateway into town. Hanick said because of the current zoning, this padicular parcel would be difficult if not impossible to redevelop in any way without a change in zoning. Hanick said he had undertaken a feasibility study performed by an architect in order to obtain a design that could be developed there and be compatible with the neighborhood. The lot was small, with two street frontages. The plan he intended to pursue would include 10 underground parking spaces entering off of Market Street, main floor commercial and 2.5 floors of one-bedroom or efficiency apartments. The main floor commercial area would be service uses with a pedestrian orientation. He said they anticipated cooperation with the design criteria. Hansen said his concern here and with anything going in the downtown area was parking. Buildings had been built that required commercial space on the ground floor - some which were full while others had no renters at all and allowed the apartments to support the development. Hansen asked with rezoning the whole block to CB-5, which required less parking but still allowed apadments to be built there, what did Hanick see as the future of the block? Hanick said realistically he did not see any change to that area, except to this parcel. He did not see the churches or institutional uses going away. Hanick said without the change in zoning, it would be virtually impossible to redevelop in any way and would become a parking lot. An offer had been made to the current owner to purchase the parcel strictly for a parking lot. Hanick said to him it was a choice, sell it and put a parking lot there or rezone and create something which was more in keeping with the neighborhood. There would be adequate parking to provide a parking place for each apartment, but parking would not be provided for the pedestrian oriented commercial businesses located there. Hanick said as an Iowa Citian, he personally did not like the idea of a parking lot being in the gateway when a lot of effort had been invested in Dubuque Street to make it something more than what it was 15 years ago. Freerks asked if consideration had been given to or planned for loading and unloading for the commercial space. Hanick said there really would not be a loading zone, it could be done on Market Street. They had not given that much thought yet. Shannon asked if the footprint of Hanick's proposed building filled the lot as it was. Hanick said because of the existing uses to the south and to the east, they had to build off the property line because of fire code. There would be a 5-foot setback on those sides. Freerks asked staff to provide the numbers regarding how many parking spaces would be provided if the lot were just a parking lot versus the number of spaces with parking beneath the building. Hanick said he guessed they would gain 5 or 6 more spaces if it were just a parking lot with a 2-way entry, but he didn't know the City's requirements for landscaping. Some parking would face Dubuque Street. Anciaux asked how many persons could legally live in a one-bedroom unit in this zone. Yapp said he would check what the limit is based on the housing code. It is related to the square footage of bedroom area. Yapp said under the zoning, up to five unrelated people are permitted per unit in both the CB-2 and CB-5 zones. Anciaux asked with a studio/efficiency having the kitchenette/bedroom area all located in one room, how would that be counted? Yapp said a Planning and Zoning Commission Minutes January 16, 2003 Page 10 certain area of the unit would be defined as the bedroom. Hansen asked if number of parking spaces and the zone it was in, figured into that too? Yapp said no. Hanick said in terms of feasibility and making the project economically feasible, there would be no way they could put two-bedroom apartments in the proposed building. It was not possible to fit more than 10 parking spaces on the lot, so the units were limited to one-bedroom or efficiencies. An elevator and two stairwells were also required. With the required turn radius, access in and out, only 10 underground parking spaces were possible. With surface parking more spaces would be possible. Bovbjerg asked what was the legality of a person using commercial on this corner and then parking across the street at another business. Hanick said all the surrounding lots were posted private parking lots. He thought they discouraged tenants from parking in front of the buildings. Yapp said it would be up to the adjacent property owners how they wished to handle the situation. Bovbjerg asked Hanick if he was prepared to waive the 45-day limitation period to the next meeting. Hanick said he understood the concern about spot zoning and it seemed right that they should look at the bigger pieces. Matthew Curtis Burnette, 404 6th Terrace, Coralville. Burnette said he was currently employed at Johnson's Auto Service. He had brought pictures of the second year anniversary of Standard Oil Products service station and a 1950's photograph, and a petition to not rezone the site to CB-5. Burnette said he did not believe this proposal was about gateway street presence. He felt it was about money, more apartments, competition for owning apartment space, less parking and more empty retail windows. Bumette said he felt this was yet another reason to steer residents away from what was really a university city. Burnette said he objected to the proposed rezoning for the following reasons: · This property had not just been recently converted to an auto-use facility. The old photographs showed this facility had historically been an auto-repair facility since it was built in 1920. · The corner, with its current CB-2 zoning, was economically viable as it currently existed. · Enough residential-commercial mix properties currently existed. There were plenty of empty retail spaces such as Old Capital Mall, 332 S. Linn Street and in the parking ramp at the corner of Gilbert Street and Iowa Avenue. · Hanick had stated that the only feasible reuse of the property under CB-2 zoning would be as a parking lot. Burnette felt that would perhaps be a good option. For the past 8-years the lot had been open to the public during non-business hours. On weekends it was heavily used by all the religious institutions that surrounded it. Visitors to the free Medical Clinic, free Dental Clinic and Wesley house also used the parking lot. · The Good Neighbor policy was not being embraced by Hanick. · The property, classified as high risk by the DNR, sat on contaminated soil/water and was a known active leaking underground storage tank site. Soil clean-up would be required prior to any planned excavation at the site. Burnette asked what happened to the contamination when excavation of the site began. · Hanick had proposed to build an architecturally interesting structure in this historical neighborhood to keep with the City's vision of a gateway street presence. Burnette said he could identify plenty of other corner properties located on the drive into town that would be much more deserving of Hanick's proposal than this property. · The photographs made no reference to gasoline, but did have many references and indicators of auto services. A sign in one photo said, "As you travel, ask us." Burnette said one of the great things about working on the corner had been the communication and dealing with the public and the neighborhood. It was nice to provide a reliable, good quality Planning and Zoning Commission Minutes January 16, 2003 Page 11 service, that persons depended upon, not only for getting them around Iowa City but getting them back to Iowa City when they left. Burnette said the auto service station was an institution, it had been there since 1920. Jay Johnson, manager of Johnson's Auto Service, said the traffic flows on Dubuque and Market Streets made it impossible to stop on either street. Slowing to enter an underground parking site, trucks stopping to deliver products or mail would be an impossibility, in his opinion. The lot was super-small with a lot of pedestrian traffic in the area. Johnson asked how it was proposed to slow vehicles exiting the underground parking area so as not to hit a pedestrian. The lot was located so close to the corner, which was already a congested area, traffic flow frequently prevented his customers from entering onto Market or Dubuque Streets. To turn out of the underground parking area onto Market Street would block or stop traffic. Johnson said as long as he had been there, they had been a good neighbor to all the churches and surrounding properties. He said he did not feel more empty commercial spaces were needed downtown. Dubuque Street was not a gateway to Iowa City, there were a lot of other places that did not look as nice as this corner did. Shannon asked if the development were not to occur, would it save Johnson's Auto Service. Johnson said no, it would not. Hanick said the contamination of the site had been a topic of conversation between himself, the State and the DNR. He said they actually desired for that parcel to be redeveloped because it would require excavation of virtually the entire lot. It would require that they dig down to the maximum possible depth, approximately 20 feet for this site by 6,000 square feet, to remove the soil to a decontamination/soil recycling site. Prior to construction, compacted backfill and clean- fill would replace the current soil. Freerks asked if it would be possible to do an auto service use on the first floor instead of commercial and build a structure that would be different than what had been proposed and adding apartments in a CB-5 zone. Yapp said in a CB-5 zone, auto oriented businesses were not permitted. Theoretically in a CB-2 zone, it would be permissible. Miklo said under the Code amendments staff were considering, under a CB-5 there would be the possibility that it would include a special exception for auto and truck oriented uses. Shannon asked if the contamination was an assumption on someone's part. Hanick said the tanks were gone, the site was classified as contaminated by the DNR and monitored by them. Seneca Engineering of the Quad Cities did the annual monitoring. Hanick said if he was not mistaken, the whole area was contaminated from previous gas stations and former uses. Bovbjerg asked, as the soil excavation went down, would the monitoring company monitor to make sure they went down as far as they had to go? Hanick said in this case, they would go down as far as they could go, which was 20 feet. In terms of what equipment could do at that site, 20-feet was the maximum because the surrounding buildings required stabilization. All the soil would be gone and replaced with clean backfill soil. Bovbjerg asked if plastics and concretes would be installed with the compacted backfill to keep down there what ever might be down there. Hanick said he was not familiar with the process. Anciaux said there were reportedly tunnels in that area too. Hanick said he knew in the Brewery Square area there were tunnels and he had been in them but he didn't know where they went. Hansen asked Staff if this site were not developed as the proposed development, but as a parking lot, would the clean-up be required. Yapp said his understanding was that for a surface Planning and Zoning Commission Minutes January 16, 2003 Page 12 parking lot it would not. As long as the soil was not disturbed by construction, it could remain. If the soils were disturbed, it would need to be dealt with according to the DNR. Hansen asked Yapp if he thought the site could be turned into a parking lot without disturbing the soil. Yapp said he could not answer that question with any expertise. Yapp said there were existing monitoring wells in place. Johnson said this site was trying to clean itself up, but there was a limit to what Mother Nature could do. This corner only had monitoring wells. Breathing tanks, level with the ground, were located in front of Wesley House and in their front yard, and there were also approximately eight located on the corner. They were monitored once a year. The old McDonalds at Sycamore Mall had a monitoring station outside, but that ground would also never be clean. Johnson said if an additional meeting were to be held, he would bring photographs of the contaminated soils. It would take a lot more than 20-feet to get the contaminated soil out of the property. He had photographs of when the tanks were removed, it has been over 75-feet in depth. The soil was discolored where the contamination was. The DNR monitored the site through Seneca. Johnson said the ground was contaminated down to Brewery Square, underneath Wesley House and also First Methodist Church due to one of their leaking elevators. Johnson said the whole corner was contaminated, once the soil was disturbed, the whole area should be torn down, "You just can't stop, it is a bad deal." Johnson said he thought the only viable use would be a parking lot that would not disturb the soil. Hansen asked Staff to provide more information about the DNR's interaction with the site and the proposed project. He asked if hazardous odors would be emitting from the ground into the basement? Yapp said staff would provide the Commission with more information, but regardless of the zoning that type of interaction for a redevelopment would occur with the DNR. Chait asked for more information about the Amoco station on the corner of Burlington and Clinton Streets because there were bigger issues that they would be dealing with. Redevelopment was going to be happening more in the future. He said the kinds of issues that they were dealing with here would also be the kinds that they would have to deal with in the future, Redevelopment is a natural function of urbanization. Also with the Code rewrite, and looking at the possibility of changing CB-2 to CB-5, the issues brought up about zoning would happen anyway. Chait asked how the Clark property on the corner of Burlington and Dubuque streets had been redeveloped. Johnson said that a million dollars worth of dirt had been dug out of the site. Miklo said staff would be happy to provide addition information regarding the DNR, but to an extent this had nothing to do with zoning of the property. Unless the Commission was really serious, Miklo questioned how much staff time the Commission wanted to invest in the soil contamination issue. Bovbjerg said what she heard from the Commission was that if they made a decision one way or another, they really would like as much information as possible. She said this might just be digging a foundation for what the Commission would look at in the next several years with respect to requests for redevelopment of properties. Behr said for any redevelopment regardless of the zone, if the site was classified they would have to deal with the DNR for any redevelopment in any zone. Behr said he also wished to caution the Commission that he didn't know how much information would be available about exactly what the contamination was and exactly what would be required until there was redevelopment. Chair said the Commission had a propensity to over excavate their own issues and ask a lot of questions that were not necessarily in their own purview, to get the comfort level that they Planning and Zoning Commission Minutes January 16, 2003 Page 13 sought. They tried to stay within their technical parameters, but the more comfodable they felt, the more comfortable they could be with the applications they saw and dispatched. Motion: Hansen made a motion to defer REZ02-00021, a request for a rezoning from CB-2, Central Business Service Zone, to CB-5, Central Business Support Zone, for a 6,000 square foot properly located at 130 North Dubuque Street, subject to a CZA requiring staff Design Review Committee approval of any new building on the property to ensure compatibility with the historic character of the area. Koppes seconded the motion. The motion passed on a vote of 7-0. OTHER: Miklo said a lecture on Urban and Regional planning was being given on Friday evening, 1/17/03, at the Recreation Building. Sam Edwards, AICP, would be the speaker. CONSIDERATION OF 12/19/02 MEETING MINUTES: Motion: Shannon made a motion to approve the minutes as printed and corrected. Koppes seconded the motion. The motion passed on a vote of 7-0. ADJOURNMENT: Motion: Anciaux made a motion to adjourn the meeting at 9:20 pm. Chait seconded the motion. The motion passed on a vote of 7-0. Jerry Hansen, Secretary Minutes submitted by Candy Barnhill shared on cit ynt/pcd/mi n ut es/p&z/p&zO 1-16-03.doc