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HomeMy WebLinkAbout2004-03-02 Bd Comm minutesMINUTES IOWA CITY BOARD OF APPEALS MONDAY, NOVEMBER 3, 2003, LOBBY CONFERENCE ROOM IOWA CITY CITY HALL, 410 E. WASHINGTON STREET IOWA CITY, IA MEMBERS PRESENT: John Roffman, Wayne Maas, Steve Buckman, Anna Buss, Tim Fehr, Doug DuCharme MEMBERS ABSENT: Gary Haman STAFF PRESENT: Tim Hennes (Sr. Building Inspector), Roger Jensen (Fire Marshall), Sue Dulek (Asst. City Attorney), Jann Ream (Code Enforcement Asst. acting as minute taker) OTHERS PRESNT: Ed Jones, Phillip Leff (1003-1049 Scott Park Dr.) RECOMMENDATIONS TO COUNCIL: None CALL TO ORDER: Chairperson Roffman called the meeting to order at 4:05 P.M. CONSIDERATION OF MINUTES: Minutes from the October 6, 2003 meeting were discussed. MOTION: Maas moved to accept the minutes. Buss seconded. Motion passed unopposed. Licensinq - Code Section 14-5L-4, H, 2: Pass an examination approved by the Board of Appeals and Code Section 14-5L-1, K: Licensed persons to be on site. Hennes presented the Board with the information requested at the last meeting concerning the licensing test for fire sprinklers. Hennes explained that the United Association Fire Sprinkler Fitter Mastery exam is an actual 3rd party test offered by the National Inspection Certification Testing Corporation. He verified with that agency that they would make the test available to anyone who wanted to take it; they just asked that a minimum of 10 people be signed up at any one test time since they would have to pay a proctor to administer the exam. The fee for the test is $100.00 and would be available to non-union members. Hennes also explained that the test for NICET level II Fire Sprinkler Installers is before the Board for approval as well. These two tests with the already approved Experior test would provide three exam options for Fire Sprinkler installers. He mentioned that Experior is still considering eliminating their Fire Alarm, Fire Sprinkler, and Gas Pipe Fitter tests. 5 years experience would still be required, as well as a passing score on one of three tests in order to become licensed. Roffman asked for a vote. MOTION: Maas moved to approve the UA Fire Sprinkler Fitter Mastery and the NICET level II Fire Sprinkler Installer exam as approved third party tests for the licensing of fire sprinkler installers. Buss seconded. VOTE: Motion passed unopposed. Roffman then asked for discussion on the second part of the licensing issue which was the number of licensed people required to on site for the supervision of apprentices. Hennes explained that the current ordinance requires one licensed journeyman for every three apprentices on site for all licensed trades. He asked that the Board consider eliminating the ratio and just requiring one licensed person on site. He reminded the Board that at the previous meeting, several contractors and industry representatives had spoken to this issue with some stating that less licensed people would be preferred and some stating that a one to one ratio is their current standard. Maas stated that he thought the current requirement of one licensed person to three apprentices was a good ratio and should be kept. He felt that if too many apprentices were on a job site with just one licensed journeyman that there would just not be the control and supervision needed. He thought that one to one would be too strict. The consensus of the Board was to keep the current ratio of one licensed journeyman to three apprentices. Dulek pointed out that there would be no need for a motion since they were not changing the current requirement. Appeal the decision of the Buildinq Official because there are practical difficulties involved in carryin.q out the provisions of the code and the provisions of the code do not fully apply. (1003-1049 Scott Park Drive) Hermes explained the issue. Current state code now allows the conversion of multi-family units to condominiums by filing a horizontal property regime. However, the code also requires that at the time of that conversion, the property meets all the provisions of the current building code. The structures in question (a five unit townhouse and an eight unit townhouse) were reviewed and built under the requirements of the 1997 Uniform Building Code. The City has since adopted the 2000 International Residential Code. The differences between the two codes that are now affecting the conversion of the property to condominiums are the fire separation requirements, radon mitigation and the rise and run of stairways. The 1997 UBC required a one hour fire wall terminating at the ceiling and draft stops in the attic. The 2000 IRC requires either one 2-hour fire wall or two 1-hour walls between dwelling units that run from the foundation through the roof and form a parapet. As an exception to the parapet, the fire resistive construction can terminate at the underside of the roof sheathing provided fire retardant treated wood sheathing is used or 5/8" drywall is installed directly beneath the roof decking for a distance of 4 feet on each side of the wall. The 2000 IRC also requires a passive radon mitigation system be installed. The 1997 UBC did not require any radon mitigation. In the 1997 UBC, the maximum height (rise) of a stair was 8" and the minimum tread width (run) was 9". Under the 2000 IRC, those measurements changed to a maximum rise of 7 3/4" and minimum run of 10". Hennes said that these three issues were preventing the property from being converted to condominiums. He explained that to meet the current fire wall requirements a lot work would have to be done in the attic applying sheathing and drywall to the trusses and a system would have to determined to add another one hour fire wall to the common wall between dwelling units. In order to meet radon mitigation requirements, the property owner would have to hire a mitigation company to test for radon. If radon was present, they would to put in a mitigation system. If no radon was found, the company could provide certification to that effect. Hennes thought that because the change in the rise and run of stairs did not lessen fire resistive construction, the owner might have a case for practical difficulties and that particular issue could be resolved. Phillip Left (legal representative for Ed Jones, property owner) spoke to these issues. He explained that between the time the building permit was issued for these properties, April, 2001, and when the Certificates of Occupancy were issued, July & August of 2002, the adopted building code in Iowa City had changed to the 2000 IRC. So the buildings are essentially new and built to the required code at the time. He understood the rational behind state code requiring that a condo conversion meet current building code standards in terms of making sure old buildings come up to current standards. He did not feel that these standards really apply in this case. Left explained that a "horizontal regime" is simply a different way of describing a property legally. The document to be filed that allows the horizontal regime is a condominium declaration; sometimes it is filed immediately when the property is being built but sometimes it is not filed until the units are completed and they are being marketed. In this case, the papers have not been filed and were not intended to be filed until the units were done and ready to be marketed. Leff said the units were always intended to be condominiums and supported that statement with a copy of the building permit that that describes the proposed structures as condos. Even the City Assessor had them listed as condominiums. Leff wondered if this really was a conversion or just a case of finishing up the paper work for a particular project. Left stated that if the Board did feel this was a conversion, they still had the power under the appeal procedure to allow the conversion because of the peculiar circumstances. He explained that each of three issues could have been taken care of at the time of construction at a nominal cost; to go back after the fact and to try to retrofit the building would be very expensive and practically impossible to physically accomplish. These were circumstances not of the owner's making. Anyone who had started a building even 3 or 4 months before the code change would be in the same predicament. Left made the point that if the appeal is denied or approved, nothing would change in the building that would make it any safer for tenants. The building was finished to approved codes so what would requiring the changes accomplish. He asked that Board allow the condo conversion without making any of the changes required by the new code. Roffman asked Dulek for a legal interpretation. Dulek stated that this is new law and that there was no case law yet that would address the issue of the length of time from when the C.O.'s were issued to the actual filing of the condominium declaration papers. In this case, it was year from the when the C.O.'s were issued to when the declaration was going to be filed; Dulek stated that there was really no guidance in determining what the length of time would have to be in terms of not allowing the conversion. Jones said that if he had been informed that the code was changing, he would have filed the papers immediately. Hennes said that as the City got closer to adopting the new code, they did inform contractors of the upcoming change, but this permit was issued over a year before adoption of the new code. Fehr asked if there was difference in the building code between multifamily apartments and condominiums. Hennes said no, the building code does not differentiate between condos and apartments. Condominiums are simply a different legal description. Hennes stated that most jurisdictions are requiring that buildings come up to current code standards before allowing the conversion. Des Moines, for example, was requiring older apartment buildings become fully sprinkled before allowing the conversion. The municipality gets the benefit of a much safer building and the owners get the tax benefit. Maas asked why the papers weren't filed when the units were finished. Left said that there is usually no reason to rush. It costs several thousands of dollars to file the paper work and owners usually wait until units are ready to be sold. Roffman asked again for some direction in terms of allowed time from building permit to the condominium declaration. Hennes reiterated that the law clearly states "at time of conversion" the building must meet current code. Buss stated that since they had always been intended as condos from the start why shouldn't the conversion be allowed. The building met the current code standards at that time. She felt it would be a different case if he had originally wanted apartments and just recently decided to convert them to condominiums. Roffman said that when he considers the impracticality of adding a second fire wall to all of the units, it makes more sense to extend the window of filing time for the paperwork and accept the buildings "as is". MOTION: Roffman moved that this situation is not a conversion but a continuation of an ongoing process which was intended from the initial building permit application; therefore, the condominium declaration for these units could be filed. Maas seconded. DISCUSSION: Buckman wondered what would be opened up by approving this motion in terms of other buildings built under the 1997 UBC. Roffman said that it would always come back to the same test - the owner would have to demonstrate that the building had been planned as a condominium. VOTE: The motion passed unopposed. OTHER BUSINESS: The next meeting was scheduled for December 1,2003. Hermes said that there would be some information on the new electrical code. The Board would also start working on the entire new code cycle next year. ADJOURNMENT: Buckman moved to adjourn the meeting. Buss seconded. The meeting was adjouned at 5:15PM. John Roffman, Board of Appeals Chairperson Date MINUTES APPROVED IOWA CITY BOARD OF ADJUSTMENT DECEMBER 10, 2003- 5:00 PM EMMA J. HARVAT HALL - IOWA CITY CITY HALL MEMBERS PRESENT: Mike Paul, Carol Alexander, Vince Maurer, Eric Gidal, Dennis Keitel MEMBERS ABSENT: None STAFF PRESENT: Robert Miklo, Sarah Holecek CALL TO ORDER Chairperson Paul called the meeting to order at 5:05 PM. ROLL CALL Paul, Alexander, Maurer, Gidal, Keitel present. CONSIDERATION OF THE NOVEMBER 12, 2003 BOARD MINUTES Page 7, Keitel noted the name Chris Steffen was spelled incorrectly. The name should read Chris Stephan. MOTION: Maurer moved to approve the November 12, 2003 minutes as amended. Gidal seconded the motion. Motion carried 5-0. SPECIAL EXCEPTIONS EXC03 - 00018 Public Hearing regarding an application submitted by U.S. Cellular for a special exception to allow a utility substation facility, specifically telecommunications equipment shed, on the rooftop of the hospital in the Commercial Office (CO-1) Zone at 500 Market Street. Miklo reported that US Cellular is proposing to locate the facility on the rooftop of the hospital to allow for the placement of US Cellular antennae to facilitate wireless communication service in the area. Miklo reviewed the application and addressed the specific and general standards for the special exception. Miklo said that staff believes the specific and general standards for allowing a utility substation facility have been met. He said the location of the equipment shed on the roof of the hospital is optimal, as opposed to being located at ground level, and the small size of the shed should make the structure fairly unnoticeable. The applicant is proposing a faux-brick resin siding on the shed that mimics the color and texture of the brick of Mercy Hospital. The computer generated images that were provided by the applicant, show how the shed will look from the nodh and south of Mercy Hospital. The facility will not be visible from the east and west views. From these images, the equipment shed will be similar in color and appearance to the rest of the structure and generally compatible. Miklo said the proposed antennae would be painted a similar color to the hospital building, thus making it blend in with the surroundings. However, Miklo said the Board's action on this item is specifically related only to the equipment shed as the antennae are allowed as accessory to the building, and would not require Board approval. Miklo noted an email that was received from The Counseling & Mental Health Center, LLP. In the email, the employees of the Counseling Center expressed concern of adverse effects on their health from the proximity of such a tower. Miklo stated that Federal Government prohibits the City from regulating this aspect of Iowa City Board of Adjustment Minutes December 10, 2003 Page 2 telecommunications equipment. The City is limited to landing regulations for such equipment. Miklo said in response to a question from Alexander, that the Federal Communications Commission regulates their health-related issues with the tower. Miklo said in response to a question from Gidal that the screening of the shed does not necessarily need to be made as a provision to the application because the screening was included as a part of the application. Regarding the General Standards, Miklo said the proposed equipment shed on the rooftop of the hospital building will not interfere with ingress/egress, alter the land use of the property, or prevent the orderly development of adjacent properties. Also, the applicant has stated that the facility has been designed by a licensed professional engineer to address all health and safety codes related to telecommunications infrastructure. Miklo said that the main concern for facilities such as these is whether it is appropriate for the location, ensuring the appearance of the design will not detract from the properly or neighborhood. Miklo said in staff's view, due to the location and screening, this facility meets the general and specific standards necessary for a special exception. Public Hearing Opened Kevin Haines, an engineer and project manager from US Cellular was present to address the Board. Haines addressed Alexander's previous question concerning the safety of the tower. He said that although he is not an exped, there have been numerous studies conducted about the concern of radiation from cell phones and towers. Haines said the findings have shown cell phone users to be at much greater risk than an individual that is near a tower. Holecek stated the EPA might be a good source of information concerning the radiation risk with cell phones and towers. Public Hearing Closed Board Discussion Gidal suggested they include in the wording of the special exception, a provision for appropriate screening. Holecek noted the last paragraph on page 2 of the staff report that reads, "To address the compatibility concern, the applicant is proposing a faux brick resin siding that mimics the color and texture of the Mercy Hospital brick." MOTION: Gidal moved to approve Special Exception EXC03-00018, an application by US Cellular to allow a utility substation, specifically a wireless tower telecommunications equipment shed, on the roof of Mercy Hospital located at 500 Market Street, providing the applicant provides a faux brick resin siding on the shed that is color and texture compatible with the existing building. Keitel seconded the motion. Paul said he would vote in favor because the shed will be placed on the rooftop and basically hidden from view, and with the screening it will be compatible with the existing facility. The equipment shed will not interfere with ingress/egress, alter the land use of the property, or prevent the orderly development of adjacent properties. Alexander said she would vote in favor for the reasons previously stated by Paul. Maurer said he would also vote in favor for reasons given. With the appropriate screening, the shed would not distract from the building or neighborhood. Iowa City Board of Adjustment Minutes December 10, 2003 Page 3 Gidal said he would vote in favor for the reasons already cited. Keitel said he would also vote in favor for reasons previously cited. The motion was approved on a vote of 5-0. Paul stated that any person desiring to appeal this decision to a court of record may do so within 30 days after the decision is filed with the City Clerk's office, EXC03 - 00019 Public Hearing regarding an application submitted by the School for he Performing Arts for a special exception to allow a school of specialized instruction, specifically a music and acting school, for property in the Central Business Service (CB-2) Zone, at 209 North Linn Street. Miklo reported the School for the Performing Arts is a private, non-profit school teaching music and acting lessons. They are proposing to locate the school on the approximate 1,000 square foot second floor of the existing building at 209 North Linn Street. The first floor of this building contains the Guitar Foundation business. Miklo reviewed the application and addressed the specific and general standards concerning this special exception. Miklo said the Board should consider the appropriateness of the proposed use given the potential impact on surrounding land uses, traffic circulation, externalities such as light and noise, and other impacts the proposed use may have. Miklo said the proposed use is similar to the current use. The existing space was designed and developed for music lessons and group classes. According to the applicant, no more than 10 students would be on site at any one time and this is within occupancy load standards for the space. Miklo stated that the surrounding land uses are typical for a mixed-use commercial district. They include restaurants, small retail stores, bars, professional offices, a cosmetology school and residential apartments. Miklo also said the proposed type of use for this space should fit in well and add to the existing mix of businesses. This building received a variance from parking requirements (VAR93-00003), so that no parking is required for any uses in the building. Due to the nature of the business, children that attend the school will be dropped off and picked up on a regular basis. There is an alley located 1/4 block to the North of the building that could be used for this purpose. There is also metered parking in front of the building and a metered parking lot ½ block away. Because the area is designed as pedestrian oriented with a slower moving speed of traffic, staff is comfortable with the pick-up and drop-off activity occurring on this block. Miklo said in staff's view, this proposal for a school of specialized instruction in the CB-2 zone at 209 North Linn Street meets the general standards for a special exception. It is compatible with the neighborhood and with the Comprehensive Plan, and should add to the mix of businesses in the North Market commercial district. In response to a question from Keitel, Miklo said the building would have to meet all building codes for fire and safety. Public Hearinq Opened Iowa City Board of Adjustment Minutes December 10, 2003 Page 4 Mary Ward, a representative from the school, was present to answer any questions from the Board. She said in regards to fire safety, there is a hallway with a rear door leading to the outside that is marked as a fire safety route. Public Hearinq Closed MOTION: Keitel moved that EXC03-00019, a special exception for a school of specialized private instruction, specifically a music and acting school of performing arts, for the property at 209 North Linn Street, be approved. Alexander seconded the motion. Keitel said he is in favor of this exception because the general and specific standards have been met. He said the drop off and pick up arrangements would most likely not be an issue and metered parking is available in several areas near the building. Gida[ said he is also in favor of the special exception because the General and Specific Standards have been met. The proposed use of the space is compatible with the neighborhood and will be of great benefit to the neighborhood. Alexander said she is in favor of the exception for the previously stated reasons. Paul said he is in favor for reasons previously stated. He said the proposed use is in accordance with the Comprehensive Plan, and he agrees with the staff repod in that ingress/egress issues have been addressed and will not be a problem. Maurer said he is in favor because the proposed use is compatible with the Comprehensive Plan and the business is good for the neighborhood and Iowa City. The motion was approved on a vote of 5-0. Paul stated that any person desiring to appeal this decision to a court of record may do so within 30 days affer this decision is filed with the City Clerk's office. EXCO3 - 00020 Public Hearing regarding an application submitted by Jason Tjarks for a special exception to allow expansion of a commercial recreational use, specifically to allow a laser tag arena, for property in the Community Commercial (CC-2) Zone, at 1605 Sycamore Street (Sycamore Mall). Miklo reviewed the application and said the applicant has applied to expand the business to the upper level of the former Sears automotive department. The expansion area would be for an indoor laser tag arena. The first level of the business will continue as a restaurant with areas devoted to a video arcade, play equipment and a stage. The proposed use is classified as commercial recreational and therefore does require the approval of the Board to be allowed in the Community Commercial (CC-2) Zone. Miklo said that there is a commercial recreational use already established in the mall that was approved by the Board in 2001. The reason for needing a special exception is due to the fact that many commercial recreational uses could draw a large number of people or often have outdoor activities that may cause noise and dust, a go-cad track for example. Miklo said that staff believes the proposed use meets the general and specific standards. He said it would be compatible with the other retail businesses in the mall, it will not have a great effect on the surrounding properties of the residential zones near the mall, and the comprehensive plan encourages additional compatible commercial uses within the mall. The Iowa City Board of Adjustment Minutes December 10, 2003 Page 5 mall has over 50 extra parking spaces and this use would only require 10 parking spaces. The business would have to meet all City building codes, including fire and safety requirements. Public Hearinq Opened There was none. Public Hearing Closed MOTION: Keitel moved to approve EXC03-00020, a special exception to permit expansion of a commercial use in the Community Commercial (CC-2) Zone at 1605 Sycamore Street. Gidal seconded the motion. Alexander said she would vote to approve for reasons that it will not be detrimental to the public health, safety or welfare; it is compatible with the other uses in the surrounding area; and it is accordant with the Comprehensive Plan. Maurer said he is in favor for the previously stated reasons. Keitel said he is also in favor for previously stated reasons. Paul said he would also vote in favor. The motion was approved on a vote of 5-0. Paul stated that any person desiring to appeal this decision to a court of record may do so within 30 days after this decision Ks filed with the City Clerk's office. OTHER There was none. BOARD OF ADJUSTMENT INFORMATION Miklo introduced Mike Wright as the newly appointed member of the Board of Adjustment. Keitel, on behalf of the Board of Adjustment, thanked Paul for his 5 years of public service to Board of Adjustment. Keitel, on behalf of the Board of adjustment, thanked Gidal for his public service to the Board of Adjustment. Paul said he would like to thank the City Staff for doing such a great job and making their job easier. He said he has learned a great deal in five years, a lot about City Code and zoning, it has been very interesting and he has enjoyed working with everyone. ADJOURNMENT MOTION: Keitel moved to adjourn the meeting. Alexander seconded the motion. The motion was passed on a vote of 5-0 The meeting was adjourned at 5:50 PM. Iowa City Board of Adjustment Minutes December 10, 2003 Page 6 Board Chairperson Board Secretary Minutes respectfully submitted by Jennifer Sherlock data on citynt/pcd/minutes/boa/boa 12-10-03.doc MINUTES FINAL/APPROVED SENIOR CENTER COMMISSION TUESDAY, DEC. 15, 2003 MEMBERS PRESENT: Jay Honohan, Betty Kelly, Allan Monsanto, Charity Rowley, and Deb Schoenfelder MEMBERS ABSENT: Lori Benz STAFF PRESENT: Michelle Buhman, Linda Kopping, Susan Rogusky and Julie Seal. GUESTS: Jo Hensch and Nancy Wombacher. CALL TO ORDER MINUTES Motion: To approve the November minutes as distributed. Rowley/Kelly. Motion carried on a vote of 5-0. PUBLIC DISCUSSION None REPORT ON COMMUNITY FOUNDATION OF JOHNSON COUNTY- Honohan Honohan distributed draft copies of articles of incorporation and by-laws for a non-profit corporation called the Iowa Seniors Fund, Inc. (documents attached). The intent of the non-profit corporation would be to facilitate participation of the Center in the Community Foundation of Johnson County and thereby initiate a long-term source of operational revenue. Honohan reminded the Commissioners that the City Attorneys office will not review the articles of incorporation or by-laws because the non-profit corporation will be a completely separate entity from the City of Iowa City. Honohan gave a brief summary of the by-laws and the Articles of Incorporation. Commissioners and staff discussed the documents focusing on how the corporation would be managed and how the funds would be distributed. Honohan will incorporate recommended changes to the documents and they will be discussed further at the January meeting of the Commission. SCHOLARSHIP COMMITTEE UPDATE- Kopping Betty Kelly, Jay Honohan and Linda Kopping met to discuss the Center's Iow-income scholarship policy. Monsanto was unavailable for this meeting. A draft of the Iow- income scholarship program developed at this meeting was distributed to Commissioners (attached). In essence, the policy stipulates that the Center will forgo all revenue it would ordinarily obtain for fee-based classes. For example, the Center will waive 100% of equipment and material fees it charges (e.g. copying costs and Center sponsored computer classes), and 25% of the class fees charged by independent contractors who offer courses at the Center. This is the portion of the class fee collected by the independent MINUTES FINAL/APPROVED SENIOR CENTER COMMISSION TUESDAY, DEC. 15, 2003 contractor that is paid to the Center as reimbursement for the use of space and equipment while instructing the class. it was noted that while the new policy is likely to work for the majority, fees accessed by independent contractors still might present a financial hardship for some participants. Commissioners expressed concern related to the potential costs associated with alternative policies. Seal will pursue a variety of options for offering an exercise classes with a Iow or no fee. Motion to approve the proposed scholarship policy, Rowley/Monsanto, Motion carried on a vote of 5-0, JOHNSON COUNTY OPERATIONAL FUNDING- Kopping Kopping reported that the Johnson County Board of Supervisors signed the agreement to pay the $75,000 for FY04. Funding for FY05 has not been agreed upon at this time. Honohan will be going to the Board of Supervisors meeting on Dec. 18, 2003 to request funding for FY05. SENIOR CENTER UPDATE Operations- Kopping Kopping offered information related to the operational costs of the meal program that are paid by the Center. She reported that in FY03 the Senior Center operational budget paid $8,613 for kitchen maintenance. So far in FY04 $2,100 has been spent with an additional $9,000 projected for equipment repair or replacement. This is a concern because these are unplanned expenses. Moreover, most of the equipment in kitchen is old and will need to be replaced eventually. MWill Craig Buhman gave Kopping a general estimate of annual utility costs, estimating between $11,000~$15,000 for gas and erectric. The most recent service report from the dining program indicates that about 34% of the meals prepared in the kitchen are served at the Center; the rest of the meals are going to satellite sites and home delivered meals in Iowa City and throughout the Johnson County. Kopping will compile a written summary of this information for distribution and discussion at the next Commission meeting. A person called wanting to join the Senior Center with his wife who is not yet old enough to join (50 years old). Kopping will review the policy pertaining to family and will distribute a draft policy at the January meeting. Kopping reported on the progress made by the 100-year-program committee. Sponsors for the programs created by this committee include the University of Iowa Community Credit Union, Hills Bank the United States Post Office, US Bank and ColorWorks Professional Imaging. Kopping distributed a letter from June Braverman and the response to the letter from Steve Atkins. MINUTES FINAL/APPROVED SENIOR CENTER COMMISSION TUESDAY, DEC. 15, 2003 Kopping reported that Irene Crutchley has accepted the Clerical Assistant position. Kopping will be working on creating a HACAP position for additional staff coverage at the reception desk. Programs- Seal Seal distributed a list of classes and events scheduled to start in January. For a complete list of activities see the January Post: Spring Program Guide. Volunteers- Rogusky Rogusky reported that a segment of the Red Hat Society has been created at the Senior Center. Rogusky will be talking to the group about becoming a Senior Center activity group and let them know that in order to get Senior Center staff support they will need to become members of the Senior Center. A new activity group on Model Trains has been created with six members attending the first session. The leader of the group will continue to recruit more members and plan activities for this spring. Glenn Jablonski will be retiring from his volunteer position as the director of the Voices of Experience at the end of December. A volunteer group comprised of a few members of the Voices of Experience is working with Rogusky to locate a new director. A memo from the Community Television Group (CTG) was distributed to the Commission. Rogusky is working with this group to secure funding for the temporary SCTV staff. Rogusky distributed copies of the volunteer hour report from October. Membership and Fundraising-Buhman Buhman reported that as of December 15, 2003, 697 people have registered as Senior Center members. Donations in the amount of $3,983 have been collected for the Operational Budget. COMMISSION DISCUSSION Post article report from this meeting - Kelly Post article of the next meeting- Jan. 20, at 2PM. City Council - Board of Supervisors- Honohan Motion to adjourn, Motion carried on a vote of 5-0. Monsanto/Schoenfelder. MINUTES IOWA CITY AIRPORT COMMISSION THURSDAY~ JANUARY 8~ 2004 - 5:45 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Randy Hartwig, Baron Thrower, John Staley STAFF PRESENT: Sue Dulek, Ron O'Neil CALL TO ORDER: Chairperson Thrower called the meeting to order at 5:45 p.m. APPROVAL OF MINUTES: The minutes of the December 9, 2003, Commission meeting were approved as submitted. REVIEW OF EXPENDITURES: O'Neil reviewed the check requests for January with the Commission. O'Neil said he is holding the final check for Airport Business Solutions until he receives the deliverables. O'Neil said the payment to the Gazette was for an ad to advertise for the roof project for buildings B and C. O'Neil said this would have to be advertised again because there were no bids. H. R. Green will contact companies directly next time the bids are due to remind them that the project has been advertised. PUBLIC DISCUSSION - ITEMS NOT ON AGENDA: Rick Mascari addressed the Commission. He said that he wanted to comment that the runways were cleared in a timely manner after the last snowfall and looked very good. He said he wanted to remind the Commission that in past years, the City Council had assured the Airport Commission that Runway 18/36 could be kept open until a replacement instrument approach was in place on another runway. He said he did not think that had been changed. UNFINISHED ITEMS FOR DISCUSSION/ACTION: No items were presented. ITEMS FOR DISCUSSION/ACTION: a. Runway 07 project - O'Neil said he and Sue Dulek have reviewed the contract and contacted Earth Tech with some suggested revisions. O'Neil said he has received an independent cost estimate for consultant services for the project and it is substantially different from the proposal from Earth Tech. He will have to review both cost proposals and see why there is such a difference. He said he just received the second estimate on Tuesday. O'Neil said it might require a special Commission meeting to approve the contract so Earth Tech can be given a Notice to Proceed. b. Environmental Assessment project - O'Neil circulated a memo he received from Joe Tmka, from H.R. Green, updating the Commission on the progress of the EA. He said the next move is up to Mark Schenkelberg, from the FAA. Dick Blum, from H.R. Green, said that he would like to address an item that was discussed earlier. He said that when the bids went out for the roofing project on buildings B and C, there were five companies that expressed interest. They contacted the companies after the bids were due and they said they were still interested and just did not realize when the bids were due. He said the next time the project is advertised, Green will contact the companies and send them bidding materials. Blum said that Joe Tmka discussed the EA with the FAA on Tuesday and they were positive that the information was sufficient to move ahead with the program. Thrower asked O'Neil if he had any contact with anyone willing to fund the restoration of the United hangar? O'Neil said there is a tenant at the Airport that would like to have the hangar saved, but he was not aware of any fund-raising campaign. O'Neil said to restore the hangar, it would cost between $ 200,000 - $ 600,000, in addition to what the FAA would pay for. Blum said there were two sub-tasks in conjunction with the EA that the Commission wanted H.R. Green to explore. One was to evaluate the options to rerouting Willow Creek or constructing a culvert to take it out of the Obstacle Free Area (OFA). He said he was surprised on how large ora culvert would be needed to meet the flow numbers. Thrower asked if this was a hydrologic study? Blum said that was the main focus of their task. O'NeiI asked if there was any price comparison between the culvert design and rerouting the creek around the OFA? Blum said either design would be in the $ 600,000 range. Blum said there are pros and cons to each design. The rerouting would supply some fill needed for the runway project. The Corps and DNR should be more receptive to the culvert design because Willow Creek would not be rerouted. Blum said that it would probably be best to put the entire creek in a culvert on Airport property, but that would be cost prohibitive. The second sub-task was to develop the costs associated with rerouting Dane Road. Blum said the agreement negotiated with the FAA was for them to contribute to the Mormon Trek project an amount equal to what it would have cost to reroute a chip-seal road from the south edge of the OFA to the Mormon Trek intersection. Mormon Trek is a substitute for rerouting Dane Road. Blum said that engineering and environmental work had to be done for the proposed rerouted road, even though it was evident the road would not be built. O'Neil reminded the Commission that the Airport had already contributed about $184,000 to the Mormon Trek project. It was a FAA grant that purchased the property for the intersection of Highway 1 and Mormon Trek. c. Obstruction mitigation project- O'Neil said he was expecting a representative from Stanley Consultants to be at the meeting to explain the construction schedule. He said he had sent them an agenda and requested someone attend the meeting. Thrower said that since no one was present from Stanley, they should be officially notified that the Commission is concerned about their lack of progress on the project. O'Neil said he would contact the project manager to start with. O'Neil said that one of the reasons the Commission selected Stanley was that they are a local firm and said that because of their proximity to the Airport, they would be able to provide excellent service. 2 d. Aviation Commerce Park (ACP) - Tracy Overton and Kirk Hiland, from Iowa Realty, were at the meeting. Overton said that as is typical over the holiday season, things were slow and he did not have any new prospects to discuss with the Commission. Overton said Iowa Realty sat down and reviewed several of their projects, the ACP being one of them. He said Io~va Realty is strong on the project and still feels it is only a matter of time before the lots sell. He said that sometime when a project is stagnant, it is best to bring in new faces and ideas. Overton said he would like to propose that he turn the project over to Kirk Hiland. He said Hiland is a more senior person in the firm and has more commercial experience. He said their contract is coming up for renewal and this would be a good time to make a switch. Overton introduced Kirk Hiland. Hiland said he has been with Iowa Realty Commercial for 11 years and been in the real estate business since 1975. He said he represents clients from Davenport to Des Moines. He said he has reviewed the project and he thought the Commission should revisit the pricing and also what direction the property should go. He said the competition is from all the surrounding area, including North Liberty and Cedar Rapids. He said there has been an aviation park in Cedar Rapids for a number of years and it is only about a third full. He said that the ACP has good flexibility in it's zoning. He said he does not think marketing to just aviation uses would ever develop. Hiland said the Commission should look at something like the R.M. Boggs offices and shop in North Liberty. Hiland thought the Commission may have to look at a significant reduction in the per square foot price and be flexible in the uses allowed. There is a drawback in the fact that there is not a signal light at either end of the entrance road. Thrower said that in light of the development around this area, did Hiland see something missing in the area that could be built on this property? Hiland said there are businesses on land that is underutilized and he could see some of those businesses relocating on the airport property. He said retail in this area is dying out. He thinks the Commission should try to encourage light industrial uses. Hiland said he thought a new appraisal should be done. He said there are a lot of things in the report that don't need to be changed, but new comparables should be used. Hiland said he would recommend that there be a system set up to speed up the review of an offer. He said he realizes the Commission only meets once a month. Staley asked how Hiland goes about finding customers? Hiland said they do some general advertising and direct mailing. He said they have national contacts through some of the organizations they are members of. O'Neil reminded Hiland that the Commission would expect a written report on a monthly basis. Overton said it ~vould be a seamless transition between him and Hiland. O'Neil said the sales agreement with Iowa Realty expires in January. It is a three way agreement between the Commission, the Council and Iowa Realty Commercial. Staley made a motion to renew the contract with Iowa Realty. Hartwig seconded the motion and it passed 3-0. e. Governance Structure for the Iowa City Airport Commission - Thrower said there has been discussion on the notion of what it takes to build a strategic plan. He said he would like to review a governance structure that relates to the Iowa City Senior Center. He said the Senior Center is not tied to the political whims of the community. It is a regional resource. It has a charter that reflects it as a resource. He said this is comparable to the Airport. He said the by-laws explain the Senior Center's role and the City's role toward the Center. He said although the Airport Commission is created by State laws as an autonomous board, the facilities are owned by the City and the role of the Commission is one of stewardship rather than ownership. He said being autonomous but being financially dependent was somewhat of a precarious position. Thrower reviewed the Senior Center by-laws and compared them to the Commission's organization. He said a major difference is the charter of the Senior Center. The Senior Center Commission is advisory to the City Council. The main decisions are made at Council level. He said there is a greater number of employers (the Commission) than employees (stall). He said the Commission needs to ask itself if it makes sense to continue in this current model? Dulek said one of the Senior Center Commission's members is not a City resident. Thrower said this was interesting because many of the tenants at the Airport do not live in Iowa City and do not have a voting voice in the Airport management. This may be something to consider if the governance is changed. Thrower said he put this on the agenda because he wanted to get the Commission's opinion on this issue. Hartwig said the Commission would need to weigh the factors on how this would affect the operations of the Airport. Dulek said a change in the governance would require a referendum. Hartwig asked how many airports in the State have commissions? O'Neil said he didn't know an exact number, but he would try to find out from the State Office of Aviation. There are also some airport authorities that have complete autonomy and taxing authority. Cedar Rapids and Washington are two airports in this area that have commissions. Hartwig said he would like to have input from the public before he could make any decision on changing. Staley said the biggest difference between the Commission and Senior Center Commission is that it is the Airport Commission's job is to manage and control the Airport and the Senior Center is only advisory. He said all of the pros and cons should be reviewed for the long-term health of the Airport. Thrower said as Commission members, they have to ask themselves what are they bringing to the table and how are they serving aviation? Would that differ if they went to an advisory role? He said some people straggle with the concept of what role the Commission plays in managing the airport and how this interacts with the rest of the City. Staley asked if Thrower was suggesting part of the Strategic Plan address changing the governance of the Airport? Thrower said he thought about making a motion to change the governance or at least lay out a timetable to discuss and act on the issue. Staley said he would like more input. He said he would like to invite the Mayor and City Manager to the next Commission meeting to discuss this. Thrower asked O'Neil to put this on the next agenda and invite the Mayor and City Manager to the meeting. O'Neil said he would suggest the Commission look at the length of the term for the Commissioners. He said six years is a long term. The State law says the term can be between three and six years. O'Neil said if the Commission wanted to discuss it, he would recommend a term of three or four years. f. Strategic planning - Thrower said the Commission has the ABS report and it needs some grammatical changes. O'Neil said he was contacted by ABS and they wanted their final payment. O'Neil said he would send them a check as soon as the corrections were made and he received the deliverables. ABS didn't like that answer and contacted Thrower. Thrower and O'Neil made a conference call to Michael Hodges. Thrower explained that they expected a report with correct English and that even if we didn't catch the mistakes the first time, he expected a professional looking document. Hodges agreed to make the corrections. Hodges then questioned the deliverables. He said his three-page contract didn't say anything about providing ten copies and an electronic version. O'Neil reminded him that it was a three-page contract, with a three-page attachment for the Scope of Services. The deliverables were spelled out in the Scope of Services. O'Neil sent Hodges the corrections that needed to be made and faxed him a copy of the contract. He said he has the check and will release it when ABS has completed the contract. When the report is completed, O'Neil said he would put this back of the agenda so the Commission can accept the final product. Thrower said he had raised a point of concern about sending the Council the ABS document as a stand-alone report because it was not all inclusive of what the Commission was trying to accomplish with the Strategic Plan. He asked if the Commission was comfortable enough sending the report, along with a letter explaining the Commission's response to the report? Thrower said the Council has funded the report and is expecting some type of closure. The Commission agreed this should be done. Thrower said he would draft a letter and send it around to the other Commission members for comment. CHAIRPERSON'S REPORT: Thrower said there were a lot of important issues discussed at the meeting tonight. He said as soon as the EA can be completed, it will help them move for~vard of the Runway 07 project. Thrower said there are some issues with Stanley Consultants that need to be cleared up so the Commission can proceed ~vith the Obstruction Mitigation project. Thrower said he would like each of the Commission members to consider the discussion of the governance of the Airport. Thrower said O'Neil has been thorough in the preparation of documents to address capital needs and the operating budget. He said he thinks there is a good relationship between the Airport Manager and the City Manager. That relationship is not adequately characterized in the ABS report. He said this should not be minimized and should be mentioned in their letter to the Council concerning the ABS report. COMMISSION MEMBERS' REPORTS: Hart~vig agreed that the Commission had covered a lot of important issues at the meeting. He said he would also like to congratulate Thrower in recently getting his private pilot's license. Staley said he had a good tour of the Airport last Friday with O'Neil and it was helpful in understanding some of the ongoing and future projects. ADMINISTRATIVE REPORT: Dulek said the reason the Senior Center has a non-City member on their Commission is because the County makes a small contribution to the Center's budget. O'Neil said there is a copy o£the Mayor's Proclamation for declaring December 17 as Aviation Day in Iowa City. Hartwig accepted the proclamation on behal£ o£the Commission. In the packet, there was a copy o£tbe Council's schedule for the next two months. A copy o£ the Iowa Public Airports Associations 2004 legislative priorities was in the packet. O'Neil said he would be going to Des Moines in March £or Airports Day at the Capital to discuss aviation issues and airport funding with local legislators. There is a memo in the packet from the Transportation Security Administration. There are three ground schools to start in January. Jet Air is teaching an instrument ground school and Kim Brogan is teaching a private ground school and an instrument ground school. The Council appointed Daniel Clay to the Airport Commission on January 6. There is still one position open that the Council will re-advertise for., SET NEXT MEETING: The next regular Airport Commission meeting is scheduled for February 12, 2004, at 5:45 p.m. ADJOURNMENT: The meeting was adjourned at 7:45 p.m. Baron Thrower, Chairperson MINUTES FINAL PARKS AND RECREATION COMMISSION JANUARY 14, 2004 MEMBERS PRESENT: Kevin Boyd, David Fleener, Craig Gustaveson, Judith Klink, Margaret Loomer, Nancy Ostrognai, Matt Pacha, Sarah Walz, John Westefeld STAFF PRESENT: Mike Moran, Terry Robinson, Terry Tmeblood GUESTS: Tom Bender, Jody Hovland, Bob Ross FORMAL ACTION TAKEN Moved bv Gustaveson, seconded bv Boyd, to approve the December 10, 2003 minutes as written. Unanimous. Moved by Gustaveson~ seconded by Westefeld, to not support the proposal submitted by John Nolan to change the City Forestry Code, and to inform Mr. Nolan that if he chooses to pursue it, his next step would be to take it to the City Council. Unanimous. Moved by Gustaveson~ seconded by Klink~ to support Riverside Theatre's proposal for Riverside Festival Stage expanded concession policy, including alcohol sales on a trial basis for one year. YEAS: Fleener, Gustaveson, Klink, Loomer, Ostrognai, Pacha, Walz, Westefeld. NAYS: Boyd. The motion carried. NEW MEMBER Pacha welcomed the commission's newest member, David Fleener. FORESTRY CODE Pacha noted this item was placed on the agenda as a result of John Nolan's request at the commission's November meeting to change the City Forestry Code. Robinson stated Nolan would like a committee review process for the removal of trees. Pacha and Gustaveson stated they felt the existing Forestry Code was sufficient. Moved by Gustaveson~ seconded by Westefeld, to not support the proposal submitted by John Nolan to change the City Forestry Code, and to inform Mr. Nolan that if he chooses to pursue it, his next step would be to take it to the City Council. Unanimous. PROPOSED OPERATING AND CIP BUDGETS The commission received pertinent excerpts of the Proposed Financial Plan for FY05-07 and the FY04-08 Proposed Capital Improvement Program. Tmeblood noted changes might be made dependent on budget action taken by the State Government and/or City Council. He highlighted various budget items affecting the Parks and Recreation Department. Boyd asked for staffs major concerns. Trueblood noted the lack of funding for various projects, the lack of additional personnel to maintain the existing parks and trails, and the Recreation Division's fees and charges. He stated parkland continues to increase, while personnel does not. The department was directed to cut two positions and hopes to do so by attrition. At this time, one has been eliminated (a clerical position in the Recreation Division) via attrition. He noted an employee in the Parks Division is tentatively planning to retire in the near future, and staff hopes to fill this position with another department employee so the reduction wouldn't actually occur in park maintenance. Trueblood stated the department could be doing so much more in parks if it had the personnel and equipment to do so. Also, it is becoming increasingly difficult to raise the needed revenue to support the Recreation Division's Parks and Recreation Commission January 14, 2004 Page 2 of 5 budget, as expenses and competition continue to increase. Gustaveson pointed out that when the Neighborhood Open Space Ordinance was presented to the City Council, committee member Casey Cook asked that it not be adopted if the City would not commit the necessary funds and personnel to adequately maintain new parks acquired through the ordinance. He felt the City Council should be reminded of its commitment by forwarding to them the minutes from that meeting. Trueblood noted other additions to the park system that were not due to the ordinance, such as the Waterworks Prairie Park and the peninsula parkland. Walz referred to the Sand Road quarry property that the Council appears to be eager to see developed into a park. She suggested it might be time for the Commission to tell the Council it is not in favor of it. It would add to the Parks Division's burden and there are insufficient funds to support and maintain the current parks, parkland and trails. The Commission needs to take a strong stance that the Council has to provide the funding to properly develop and maintain it. Walz noted when funding for park maintenance is short, the department tries to absorb it on the periphery, but maybe it should not. People need to be aware of the lack of park and recreation funding. Gustaveson noted this is why it is important to get a master plan completed, which will deternmne what the citizens want. Tmeblood reviewed a list of eight unfunded CIP projects that may possibly be brought forward for funding. Klink stated it was very encouraging to see trails and eight-foot sidewalks included in many of the projects. She asked if pedestrian signals were included in the Melrose-West-218/City Limits project and Myrtle/Riverside Traffic Signals project. Tmeblood indicated these projects have not been discussed in detail as yet. RIVERSIDE FESTIVAL STAGE CONCESSIONS Tom Bender, chair, Bob Ross, member, and Jody Hovland, Artistic Director of the Riverside Theatre Board were present to address the commission regarding their proposal to sell alcoholic beverages at the Riverside Festival Stage during the annual Shakespeare Festival. Bender stated I998 was the first year for the annual Shakespeare Festival, which was a wonderful success and has put Iowa City on the map. He noted whenever something is new it is easy to raise sufficient funds. They receive 40-50 percent of their funding from donations and the balance from ticket sales. Bender stated Riverside Theatre is experiencing a decrease in donations and sales, and they are looking for other sources of revenue. Currently, possession and consumption of alcohol are prohibited by the City Code within city parks. The Riverside Theatre would like to create, by ordinance, a very limited exception to the general role, for productions during the Festival, drafted to protect the safety and comfort of all park patrons, yet allowing Festival sponsors to offer an amenity enhancing the quality of experience to their patrons. Hovland noted Shakespeare Festivals in other parts of the country, customarily provide concessions, including alcoholic beverages. Bender indicated he discussed the proposed policy with the Police Chief, who felt based on the proposed policy's restrictions, it would not pose a problem. Bender stated sales would be limited to beer and wine only, to be served on a one-serving-at-a-time basis in a disposable plastic container. The City would define an "area" around the theatre within which alcohol sales would be required to take place. No alcohol could be brought into or taken out of the "area" by the patrons. Sales would be offered to patrons possessing a ticket for the event, and limited in time to 90 minutes prior to productions and during a 20~minute intermission. Westefeld stated the Riverside Theatre does a great job and the Shakespeare Festival is a great program. He felt the proposal was very well developed, being much more specific and addresses issues the commission discussed last year when the Parks and Recreation Conunission January 14, 2004 Page 3 of 5 Riverside Theatre submitted a similar proposal. He asked how they would respond to community members given the general climate in the community regarding alCohol. Bender indicated they had given this some thought. The primary concern of community members is the downtown area, underage drinking and over consumption. He felt the proposal addressed these issues. Hovland stated sales would be very controlled and people are there for the purpose of attending the Shakespeare Festival. Westefeld felt it is more of a philosophical perception of a community agency, in face of the local environment, allowing alcohol sales in City Park. Gustaveson indicated it would be in a very controlled atmosphere and he had no qualms endorsing the proposal. He felt it would create a very desirable atmosphere and experience for people attending the Shakespeare Festival. He suggested trying it for a season to see what happens. Trueblood noted they would in effect be testing it every season since they would have to obtain a permit every year. Boyd indicated he appreciated what Riverside Theatre does for the community, but could not support the proposal. He felt the ordinance needs to be broader to allow other organizations the same opportunity. He did not like making an exception for one organization. Bender indicated it was acceptable to them if the City wanted to make the ordinance broader. Pacha felt it was a unique situation and the proposal contained sufficient restrictions. He stated he was not in favor of a broader policy, noting this is an established group and event, and a specific need. Boyd stated there could potentially be caterers that have the proper permits to sell alcohol that may cater a wedding in City Park. Trueblood noted the caterers who serve alcohol generally have a license for one location only. Moved by Gustavesom seconded by Klink~ to support Riverside Theatre's proposal for Riverside Festival Stage expanded concession policy~ including alcohol sales on a trial basis for one year. YEAS: Fleener, Gustaveson~ Klink, Loomeh Ostro~nai~ Pacha~ Walz, Westefeld. NAYS: Boyd. The motion carried. Boyd indicated he voted against the proposal on principle, in that he supported the idea of alcohol sales in City Park, but it should be available to everyone. He felt the policy should be broader to include other organizations that are able to meet the State requirements. Gustaveson suggested sitting down again with Riverside Theatre after this season to discuss how the alcohol sales went. Hovland stated this year's season closed July 11~. The review will be conducted at the commission's meeting in July. Tmeblood noted Riverside Theatre would need to apply each year for the appropriate licenses and permits. TEMPORARY EMPLOYEE RESTRICTIONS Trueblood reported the recent Union contract has changed the definition of a temporary employee. All employees regularly assigned less than 10 hours per week or who work in a position authorized for less than 7 months shall be a temporary employee. Therefore, a temporary employee may only work less than 10 hours a week or up to 7 months. There is a student exemption, which allows a student to work 20 hours a week and still be considered temporary. Originally staff interpreted it as the person, but discovered it is by position and person. For example, if an employee quits after 5 months, the person who replaces this individual may only work a maximum of 2 months. Lifeguards at City Park Pool are considered seasonal and shouldn't be a problem. Lifeguards at the Mercer Park Aquatic Center and the Recreation Center, however, are considered year-round positions because the facilities are open year-round. Therefore, all temporary employees at these facilities must be limited to a maximum of 20 hours a week for students or 9.9 hours a week for non-students, or close the pools at certain times of the year. Also, in the past the department has circulated the lifeguards between all the facilities; this will no longer be permissible. He stated this would create major staffing problems, which may lead to closure of the pools due to lack of staffing. Trueblood stated he has requested a meeting with Union representatives to illustrate the impact this will have on the Recreation Division. Although to a lesser extent, it will also have a significant detrimental impact on the Parks, Forestry, CBD and Cemetery Divisions, as they will no longer be able to Parks and Recreation comrmssion January 14, 2004 Page 4 of 5 work their temporary maintenance crews for 9 months, so it reduces the assistance by a minimum of 2 months every year. MILLER/ORCHARD PARK PLANNING SESSIONS Trueblood reported the second planning session was held; Klink and Loomer attended. The consultant presented the concept plan, which was well received. The concept plan will be finalized and presented to the commission next month. An "open house" will also be held to present the final plan to the neighborhood. Klink stated it was very exciting to have an actual plan after all these years. COMMISSION TIME Klink shared a brochure describing the Johnson County Heritage Trust; a non-profit organization committed to preservation of natural areas in Johnson County. She noted citizens may join for as little as $10. She stated this group donated funds towards the purchase of prairie seed for the Waterworks Prairie Park. Walz indicated she would likely not be attending the March meeting due to the expected arrival of her baby on March 16~. CHAIR'S REPORT Pacha reported on the following: Magazine Article. There was an article in the recent NRPA Park and Recreation magazine regarding puppy friendly parks. Pacha encouraged members to read it. City Council Meeting. City Council has not responded yet with regard to the commission's request to be placed on the agenda of a future work session to discuss the master plan. Donation. Dee Vanderhoef donated over $400 left over from her campaign fund to the Parks and Recreation Foundation; she has done this every four years. A thank you letter was sent to her. DIRECTOR'S REPORT Tmeblood reported on the following: Dog Park. A meeting is scheduled for January 21st with residents who live adjacent to Scott Park to discuss possibly locating the dog park in Scott Park. The group has not abandoned the idea to locate the dog park at the property near the landfill, but is looking at other possible sites. Another possible location is the north end of the peninsula parkland. Homeless Shelter. The possibility of using the Recreation Center as a homeless shelter has not been brought up again since the last meeting. Miller/Orchard Parkland. Benton Hill Park has been suggested for the name. This will be put on the next agenda for commission's action. ADJOURNMENT Moved by Gustaveson~ seconded by Loomer~ to adiourn, Unanimous. The meeting adjoumed at 7:10 Parks and Recreation Commission January 14, 2004 Page 5 of 5 Agenda item 3A Iowa City Publi(Library MINUTES FINAL APPROVED IOWA CITY PUBLIC LIBRARY BOARD OF TRUSTEES REGULAR MEETING THURSDAY, January 22, 2004 5:00 PM Members Present: Shaner Magalh~es, Thomas Dean, Linzee McCray, Pat Schnack, Tom Suter, Jim Swaim, (5:20) David VanDusseldorp Members Absent: Linda Prybil, Jesse Singerman Staff Present: Barb Black, Maeve Clark, Susan Craig, Barbara Curtin, Beth Daly, Heidi Lauritzen, Hal Penick Others Present: Terri Byers, staff member, representing AFSCME Local 183 bargaining unit members Joel Miller, Special Projects Manager for the Library construction project CALL TO ORDER: The meeting was called to order at 5:02 pm. PUBLIC DISCUSSION: None APPROVAL OF MINUTES: The minutes of the regular meeting of December 18, 2003 were approved: Swaim / Surer, unanimous. UNFINISHED BUSINESS: Parkinq - Craig distributed a letter that Joe Fowler, Parking & Transit Director, had sent to the City Council in response to the Board's request for designated parking spaces in the Dubuque Street Ramp. Fowler says usage reports show that there are an average of 250 empty spaces in the Dubuque Street Ramp each day and that usage has gone down in the past few months. He suggested that short term parking in the ramp would be costly and unpopular with the public, and that there were other solutions available. The Board was concerned that the tenants, hotel guests, and staff of the Moen building (currently under construction) would quickly fill the empty Dubuque Ramp slots. The Board felt that during expansion planning the Council had made a commitment to the Library Board to make parking available for library patrons. The Board wanted the Council to make good on that commitment before assigning parking to future Moen building users. Craig said the Board needed to suggest language for Magalh~es to use when speaking to the Council on January 27. The Board would like Magalh~es to ask for 50 designated, short term parking spaces in the basement of the Dubuque Street ramp starting now, and a promise of more spaces on the 3rd floor of the ramp next to the Library access point when the Moen building was finished. Swaim asked to go on record as requesting that the Board continue to explore other options in addition to those pro~)osed. Swaim suggested that the Board hire a consultant and consider radical possibilities before settling for the option that sounds the easiest and might not be the best. ICPL BOARD OF TRUSTEES Agenda Item 3A January 22, 2004 Page 2 Hagalh~es called for volunteers to be on a Parking Committee with him. $chnack and Swaim responded. The Committee will discuss options and then set up a meeting with Joe Fowler. Building Project - Due to a late start, the building tour was postponed. Hiller and Craig both offered to lead private tours for any Board member who called or happened to be downtown. Hiller enthusiastically reported that the building project is 150 days from completion! He enumerated the many areas in which the building is far ahead of schedule. The project is going so smoothly that Miller advised Craig to go ahead with plans for a June 5th opening date. The Board wanted to know when the construction fence would be down and pedestrians would have access to the Ped Mall. Miller explained that asphalt companies traditionally opened in April, and that paving the Mall depended upon the asphalt. Craig passed around the scale model of the Children's Room entry with the mosaic design. Board members were impressed with many imaginative and whimsical elements. Craig reported that the Cedar Rapids artist, Karla McGrail, has taken delivery of tile and is working on panels to be installed in the Library. NEW BUSTNESS: Plan Update - The Board was pleased with the progress made on the Library's FY2004 plan as shown in the six-month update. There was some concern that the construction on 64-:~A might be adding more noise and stress to an overburdened staff. Clark responded that with our own construction noise, staff has not even noticed the Moen construction noise. MagalhEes questioned the study of E-Books. Black replied that the committee was studying the format and would make a presentation to selectors. After that, the selectors would be able to make an informed decision on budget priorities. Craig mentioned that E-Book technology has advanced to the point that the format is available to people without requiring a specialized reader. Reouest to be closed February :~6 - The Board approved closing the Library on Presidents' Day, February 16, 2004, in order that the shelving move and internet/telephone home switching can take place in the most efficient manner as ]CPL opens up additional space on the second floor'. Schnack / Swaim, unanimous. Aoorove AFSCME Aqreement - The Board approved the 3-year AFSCME contract: $waim /Suter, unanimous. The Board wanted to compliment all parties involved in the bargaining process for graciously meeting in a spirit of cooperation and concern for the community. Black, who represented the Library in the management team, echoed the feeling that it was a very cooperative process. STAFF REPORTS: Deoartmental Reports - Circulation/Adult Services/Information - The Board praised Logsden (in her absence) for the marvelous plans for ]Irving Weber Day. Craig added that Irving Weber Day will be bigger and better this year as it will be part of the Library's grand opening events. ICPL BOARD OF TRUSTEES Agenda Item 3A January 22. 2004 Page 3 Swaim suggested that the Library organize a PSA on the Library Channel to advertise the availability of tax forms. Clark said she would look into it, and pointed out that the program is advertised on the Library's web page. As an aside, Clark reported that the tax forms have been the motivating factor for many patrons to go upstairs and find the Reference area. Development Office Report - Curtin described the Development Office's efforts to recruit more teams for the 2004 Iowa City Spells. At this point, nine teams have registered, compared to seventeen last year. Surer offered to have KC3.] present a radio piece on the spelling bee. Curtin responded that team members were welcome, but the real need was for sponsors to pay the entry fee. This year's Iowa City Spells will take place in the Sheraton, and as a consequence, will not be available live on the Library Channel. Craig encouraged everyone to attend the event in person and not wait for the taped version to be shown. Leased Space - Kevin Hanick of Lepic-Kroeger Realtors, the real estate agent chosen to find tenants for the Library's leased space, has already talked to several very interested parties. The property will be officially listed on February 2®. Hanick will develop a brochure and literature about the space and will hang a "Space For Lease" sign in the window above the Library staff room. A contract with his firm is being drafted for approval of the City Council. Meet with Council. FY05 Budoet: Scheduled for 6:30 PM Tuesday, .]anuary 27th - The Library Board is fourth on the agenda and is scheduled to start at 7;20. Board members were asked to arrive at 7:00 pm in case the earlier groups finish in record time. Craig encouraged as many Trustees as possible to attend to show support. Magalh~es will give a presentation, then he and Craig will be available to answer questions. County Task Force - Final Meetinq - J. Patrick White is drawing up a contract between the Library Board and the County to set funding levels for FY06. Funding for the Library will remain basically the same, with some modest changes to contract terms. Miscellaneous - As the Library budget ultimately depends on the State budget, the Board asked if Craig had heard anything about State funding to cities and/or libraries. Craig understood that Governor Vilsack will ask for increased funding to libraries in his budget proposal, but the State Legislature has to approve the budget and revenue sources. Trustees wanted to know if the City Manager was prepared for more budget cuts if they occur. Craig explained that the City has some cash reserves, and that she assumes the City Council would revisit the budget to make changes if needed. On a side note, Cedar Rapids Public Library has been in the news for laying off staff and cutting services to reflect the cut to their budget. Craig related this to fowa City, saying that CRPL is just now responding to the same loss of revenue that caused ICPL to cut back in .]uly. In regard to the article on Radio Frequency fdentification Tags, Craig suggested that at the current state of technology, if a person were close enough to read the RFfD data on a library book, he or she would be close enough to read the book's title. MagalhEes commented that our policy of including only the bar code information on the tag would increase, not decrease, patron privacy. ICPL BOARD OF TRUSTEES Agenda Item 3A January 22, 2004 Page ,~ PRESZDENT'S REPORT: Magalh~es asked Craig to report on a recent ICN meeting about the 2004 All iowa Reads choice, NTAGARA FALLS ALL OVER AGAIN. Craig was pleased that so many people were able to participate through a good use of ICN technology, and that the discussion and a taped author interview that Iowa City Staff had done with Elizabeth McCracken were very good. The session was aimed at discussion leaders and suggested themes and discussion points. Magalh~es informed the Board that only 3 of the 9 members had contributed to the Foundation's annual fund drive. While very large donations from everyone would be very welcome, the point at this time is to show 100% participation and support from the Trustees. ANNOUNCEMENT FROM MEMBERS: Linzee McCray and Jim Swaim will miss the February meeting. Swaim reported that he recently facilitated a City Council planning session. He was favorably impressed at the way the Council was able to work together, COMM'rl-I'EE REPORTS: None COMMUNZCAT'rONS: None F'rNANCIAL REPORTS: Craig let the Board know that the Finance Department was still behind in compiling the quarterly financial reports the Board is used to seeing. Craig assured the Board that the Library's spending is on track, and if the reports were still unavailable, she and Daly would take the monthly reports and assemble a six-month report in time for the February Board Packet. USE REPORTS: Host Libraw use figures are down somewhat, and circulation is down 10.0%. Craig felt that this was acceptable, as she had been expecting a drop in use possibly as high as 25% due to construction and loss of access from Linn Street. Craig speculated that efforts to minimize disruption helped prevent a bigger drop in use. D'rSBURSEMENTS: Disbursements were distributed at the meeting instead of in the packet, due to late arrival from the City. Approval of Disbursements for December 2003 was deferred to the February meeting to give Trustees a chance to review the report. AGENDA TTEMS FOR FEBRUARY MEE'r~NG: None The Board was reminded that the February meeting was rescheduled for February 19. Craig agreed to send an email reminder closer to that date. ADIOURNMENT: Hagalh~es declared the meeting adjourned at 6:30 p.m. Notes taken and transcribed by Beth Daly MINUTES FINAL~APPROVED HOUSING AND COMMUNITY DEVELOPMENT COMMISSION THURSDAY, JANUARY 15, 2004 - 6:30PM LOBBY CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Jerry Anthony, Erin Barnes, Lori Bears, John Deeth, Bill Greazel, Matthew Hayek, Shellie Mackel MEMBERS ABSENT: Mark Edwards, Jayne Sandier STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: Bob Burns Recaptured funds policy- Recommendation to Council Unsuccessful or Delayed Projects Policy- Recommendation to Council: Hayek said that last month the Commission made a few changes to paragraph one of the policy. MOTION: Barnes moved to recommend that the City Council adopt the revised policy. Bears seconded the motion. The motion carried on a vote of 7-0. Call to order: Chairperson Hayek called the meeting to order at 6:33 p.m. Approval of the December 18, 2003 Minutes: MOTION: Deeth moved to approve the minutes, as written. Anthony seconded the motion. The motion passed 7-0. Public Comment of Items Not on the Aqenda: Burns said he intended to go to the Planning and Zoning Commission meeting tonight regarding the Self- Suppoiling Municipal Improvement District (SSMID). On the agenda for the Planning and Zoning Commission is the creation of a SSDMID in the CB-10 downtown district. He said the district designation would impact certain types of affordable housing projects. Burns said his affordable housing project, within the downtown CB-10 district, fixes the rents at the fair market rent. He said the new SSMID would levy an additional tax of two dollars per one thousand in assessed value. This additional tax would have to come out of the operating budget for the project, as he can't raise the rent for the units. Burns said that a SSMID District results from a provision in Iowa law that states that if a significant percentage of property owners' petition for such a district, then it must go through the Planning and Zoning Commission and City Council for authorization. He will ask P&Z and the Council if the project could file for an exemption from this additional tax if the district is approved. MOTION: Deeth moved to adjust the agenda to consider the Whispering Garden item at this time. Mackel seconded the motion. The motion carried on a vote of 7~0. Whispering Garden L.P. - Request by Burns and Burns: Burns said the Whispering Garden project has already been funded with previous City HOME funds. He said he presented the Commission with a request to use those FY04 funds for the purchase of a building on F Street, which would further scatter the location of subsidized housing within the community. Housing and Community Development Commission Minutes January 15, 2004 Page 2 Burns said the City Council failed to approve this request on a vote of 3-3, with Wilburn abstaining. He asked that the Commission grant an extension, beyond the February 1 deadline, for signing the HOME agreement. Burns said he would like time to discuss the issue with Elliott, Champion, and Vanderhoef to ask them to reconsider their votes. Burns said he would like to make the City Council aware that this request helps spread affordable housing throughout the community. He said the original Whispering Garden application was to buy scattered sites/duplex lots. Burns said if the funds are not approved for the acquisition of the F Street building, he will have to buy the only duplex lots available for sale in Iowa City, which are currently in the southeast part of the City. He said he was asked by Champion not to buy land in that part of town, which is the only alternative to the F Street building. Burns said he thought he would need a 30-day extension. Hayek said he thought a 30-day extension was reasonable. He said the money is FY04 money, but if this doesn't work out, the money could be recaptured to be used in FY05. Hightshoe stated this request was for an extension to the Feb. 1 deadline to enter an agreement with the City. The City's Recapture Policy would allow the applicant to apply for a second round of Low Income Housing Tax Credits (LIHTC) if the first application was unsuccessful. Staff would consider the November 2003 the first application round for this project. If Burns & Burns were unsuccessful in obtaining the LIHTC, they must make a request to HCDC that they retain the funds and apply at the next available opportunity. If the request is granted and the second application is unsuccessful, HCDC would recommend the recapture of the funds to the City Council. Burns & Burns request is only for an extension of the deadline to enter an agreement with the City. Burns stated if Council does not approve this request, he would enter an agreement with the City based on the original application. Greazel asked what reasons the City Council members gave for their vote. Burns did not know. Greazel said the Commission felt that on balance this project should go ahead. He said he would like to know the reasons the City Council members gave to find out if there are strong factors of which the Commission was unaware. MOTION: Deeth moved to extend the deadline for Burns and Burns to enter a contract with the City for the Whispering Garden Project to March 1, 2004. Anthony seconded the motion, The motion carried on a vote of 7-0. MONITQRING REPORTS: Free Medical Clinic - Case Manaqement: Deeth asked to have presentation of his report moved to February. Shelter House - Shelter Coordinator: Hayek said Sandler's report would also be moved to February. Aid to Aqencies - MECCA, UAY, ESI. Greazel said he contacted the three agencies, and they informed him that they had expended all of the funds for the services they were providing. Hightshoe said that MECCA actually bills for their total award at the end of six months. She said that UAY and ESI request reimbursement for an even portion of their award each month. REVIEW OF THE FY05 CDBG/HOME ALLOCATION SCHEDULE: Hayek referred to the revised schedule in the packets. Hightshoe asked if members were interested in touring the sites. Deeth said he found it very helpful to go on the tour. Hayek said that four or fewer Housing and Community Development Commission Minutes Janua~ 15,2004 Page 3 people generally visit sites over the lunch hour. He asked Hightshoe to send out e-mails to coordinate potential dates with Commission members. Hayek asked Commission members to note the pertinent dates, particularly February 19~h, on their calendars. Hightshoe said the applications are due on January 23. Shortly after, copies will be distributed to Commission members. She said the staff analysis of each application would be provided in the Feb. 19 meeting packet. PROF©RMA BASICS: Hightshoe said that every year all of the housing applicants are required to fill out a proforma. The proforma allows staff and the Commission to compare each project. Hightshoe said the City reviews all housing applications to determine if the amount of subsidy requested is appropriate for that project. The City does not want to overfund or under~und a project. Staff will look at the debt to income ratio. This ratio is net operating income divided by total debt service. If under 1.0, the project does not generate enough income to service its debt. Strong debt coverage is over 1.15. If over 1.15, the project may be able to pay a higher interest rate or take on higher amounts of debt. Staff will review the operating costs/expenses. The Bank-Ability Guide is attached to help estimate general housing project expenses. Staff will also look at the return on investment. Staff considers a six to ten percent return on investment reasonable. Hightshoe said the second page of the proforma considers tax implications. As non-profits do not pay taxes, the second page is mostly used for for-profit entities. Hightshoe said staff provides an analysis of the project. If any concerns are raised after reviewing the proforma, the concern will be listed in the staff analysis provided to Commission members. OLD BUSINESS: Unsuccessful or Delayed Projects Policy- Recommendation to Council: Hayek said that last month the Commission made a few changes to paragraph one of the policy. MOTION: Barnes moved to recommend that the City Council adopt the revised policy. Bears seconded the motion. The motion carried on a vote of 7-0. Scattered Site Policy Update: Hayek referred to the memorandum from the City Manager to the City Council. Hayek said the Commission had agreed that he would send a letter to the City Council acknowledging that there has been more discussion of scattered site housing as an issue affecting the community and that the letter offer the Commission's services. Hayek said the City Council has now indicated that it would like a task force created, made up of three or four members of the Commission and City staff. He said the task force would collect information all spring on the issue of scattered site housing and then hold a series of public meetings to which interested parties would be invited. Hayek said the City Council would like the Commission to come up with recommendations. He said this would entail a fair amount of work, and the City Council would like to have the recommendations by the end of May. Hayek, Anthony, and Greazel volunteered to sit on the task force. NEW BUSINESS: Housinq Trust Fund of Johnson County - Consider Letter of Support: Anthony recused himself from the discussion and vote on this issue because of a conflict of interest as he is on the board for the Housing Trust Fund of Johnson County. Housing and Community Development Commission Minutes Janua~ 15,2004 Page 4 Hayek asked Anthony about the Trust Fund. Anthony said the Trust Fund has a Board of Trustees and was incorporated in December 2002. Hayek asked where the Trust Fund envisions applying for funds. Anthony said it has applied to several agencies and also has a $200,000 application to the State. Hightshoe said the Trust Fund has talked to banks regarding capitalizing the trust fund. One scenario is that a bank would provide the money to the project in the form of a loan. Hightshoe said the principal would go back to the bank that provided the money, but the Trust Fund would get to keep the interest. Hayek referred to the third paragraph of the letter. He said that Iowa City is unique in that there are a of students, which presumably deflates the median income as well as the percentage of homeowners. Hayek asked if the percentages factored that in or if students were included in the data. Anthony responded that students living in campus housing were excluded, but those living in apartments and renting in the private market are included. Hayek said he did not have a problem with the letter, but he felt a little uncomfortable with that paragraph, as the statistics are somewhat misleading. Hightshoe said it would depend upon the purpose of the letter as to whether the statistics should be included or modified. Hightshoe said that most likely anyone applying for a grant would include those statistics if it improved the standing of their grant application. The City, as an entitlement city, receives HOME funding due in part to the number of rental properties within the City, of which many are rented to college students. Hightshoe asked Anthony if he anticipated that the Trust Fund would ever apply for city HOME funds. Anthony said this would be a letter of support to include with grant applications. Anthony said he did not believe they would apply for city HOME funds, and they would certainly not apply in this cycle. He said the Housing Trust Fund was set up to bring in additional money so that if the Trust Fund were competing with HOME funds that would defeat their purpose. MOTION: Greazel moved that the Chair sign the letter on behalf of the Housing and Community Development Commission. Bears seconded the motion. The motion carried on a vote of 6-0, Anthony abstaining. Adjournment: MOTION: Mackel moved to adjourn the meeting. Deeth seconded the motion. The motion carried on a vote of 7-0. The meeting was adjourned at 7:40 p.m. Minutes submitted by Anne Schulte. data on citynl]pcd/minute$1minu~e$1hcdcOl-15-O4doc MINUTES APPROVED PLANNING AND ZONING COMMISSION JANUARY 15, 2004 EMMA J. HARVAT HALL MEMBERS PRESENT: Bob Brooks, Beth Koppes, Jerry Hansen, Dean Shannon, Ann Freerks, Don Anciaux, Benjamin Chait STAFF PRESENT: Bob Miklo, Mitch Behr, Steve Nasby OTHERS PRESENT: Robert Nelson, Duane Brenneman, Roger Christian, Marc Moen, Kevin Perez, Mark Ginsberg, Tim Gholson, Leah Cohen, Kevin Digman, Terry Miller Chait, Jim Clayton, Bob Burns RECOMMENDATIONS TO COUNCIL: Recommended approval, by a vote of 7-0, to amend the Zoning Code as follows: Delete the following paragraph from subsection 14-6E-1C. Provisional Uses: Add the following paragraph to subsection 14-6E-ID. Special Exceptions: 6. Reli!qious Institutions. (The remaining paragraphs in subsection 14-6E-1D should be renumbered accordingly.) CALL TO ORDER: Shannon called the meeting to order at 7:36 pm. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: There was none. ANNQUNCEMENT OF VACANCIES ON CITY BOARDS AND COMMISSIONS: not on Agenda CODE AMENDMENT ITEM: Discussion of a request submitted by "The Church in Iowa City' to amend the zoning code regarding requirements for religious institutions in the Commercial Office (CO-1) zone. Miklo said this item had been discussed at a previous Commission meeting. At the Commission's direction, Staff had analyzed the merits of the requested Code amendment. Their findings were presented in the Staff Report dated January 9. Amending the Code to allow churches by special exception in commercial zones without specific dimensional requirements would provide the Board of Adjustment the flexibility to consider each application on its own merits. Staff recommended the following amendment to the Zoning Code: Delete the following paragraph from subsection 14-6E-1C. Provisional Uses: Add the following paragraph to subsection 14-6E-ID. Special Exceptions: 6. Reli.qious institutions. (The remaining paragraphs in subsection 14-6E-1D should be renumbered accordingly.) Public discussion was opened. Robert Nelson, 924 Sunset Street, said they were requesting a variance so they could proceed with the purchase of the property. Their church had been looking for a building for over 1¼ years and felt this property was right for them. They had met all the setback requirements. They asked that the Commission grant their requested variance. Planning and Zoning Commission Minutes January 15, 2004 Page 2 Behr made the clarification that this was not a variance. It would be an amendment to the Zoning Code and would apply to all CO-1 property if approved. Freerks asked Nelson if he understood that even if the amendment to the Code was approved, the Church's request still had to go before the Board of Adjustment. Nelson asked about a possible time frame. Miklo said if approved and forwarded to Council, at their meeting on 2/3/04 Council would set a public hearing for the next Council meeting. It would have to be read and voted on three times. Hansen asked if it was possible for Council to collapse the readings. Miklo said yes, it the applicant requested it. Freerks clarified with Nelson that as the applicant, he would need to request Council to compress the readings. She suggested that he contact City Staff for assistance in that matter. Duane Brenneman said they needed to close before February 1, 2004 to gain the tax free status. If they did not gain that status, it would add a sizeable amount to their payment each month, which would put it out of the Church In Iowa City's reach. He asked if the Commission could provide some assurance that if the amendment to the Code were passed would it also pass at Council level? Chair said there was no guarantee that Council would take their recommendation. It would be dependent upon the vote and conversations at the Commission level. If everything went smoothly, there would be a good possibility, but there was never a guarantee that the Council would take the Commission's recommendation. Public discussion was closed. Motion: Hansen made a motion to amend the Zoning Code as recommended in the Staff Report. Koppes seconded the motion. Hansen said he felt it would be a good change to the Zoning Code. He felt there were probably a lot of smaller religious institutions in Iowa City that could take advantage of the Code amendment. Koppes said she thought it was a good change as well. Freerks said when they had begun discussing Code options and changes, this was an idea that they had entertained. Having this as a special exception and having to go through the Board of Adjustment would take care of any questions persons might have in the future. She thought the amendment was a good idea. Shannon said he had been following this proposed Code amendment for a while. He thought it would be a good move on the Commission's part. It seemed like a good area for the church to be located in. Shannon said he thought he would vote for the amendment as well. The motion passed on a vote of 7-0. OTHER ITEM: Benjamin Chait said he was going to be excused by declaration due to a conflict of interest as he owned property in the area under consideration. Discussion of an application for a Self Supporting Municipal Improvement District (SSMID) for property located within the Central Business (CB-10) zone, generally located between Iowa Avenue, Burlington Street, Gilbert Street and Capitol Street. Steve Nasby, Iowa City's Economic Development Coordinator, presented Staff report. Nasby said as discussed at Monday's Informal Meeting, a Self Supporting Municipal Improvement District (SSMID) petition had been received by the City of Iowa City. A SSMID was essentially a taxing district that was set out in Iowa Code Section 386. The petition received by the City contained 28% of the owners signing which represented 39% of the assessed value in the CB-10 zone. There was approximately $104M of taxable property in the CB-10 zone. The petition met the thresholds which were called out in the State Code for a petition to come to the City to move forward which was 25% of the owners representing at Planning and Zoning Commission Minutes January 15, 2004 Page 3 least 25% of the assessed value. The petition met those standards. The Council, as required by State Code, had forwarded the SSMID petition to the Commission for their consideration on the merits and feasibility of the proposal. The SSMID district that had been proposed was for all the CB-10 property in the downtown. Purposes that the SSMID could be used for included operational, debt service, capital improvements, and parking fee abatement. A SSMID could also be amended through the same petition process. The petition that had been submitted by the CB-10 property owners requested marketing and operational costs. Those items were outlined in the Code, Section 386.8. The maximum levy that was requested in that particular SSMID petition was $2.00/$1,000. The $2.00/$1,000 was a maximum. If the SSMID were to move forward, it would be on the 2005 not 2004 levies. The property that would be taxed would be commercial. The operational tax would apply .to commercial properties in the zone being petitioned. It did not apply to residential property, unless the property was within a designated historic district downtown. There would be approximately $3M wodh of property that would be exempt from the operational levy. The Planning and Zoning Commission was charged by the Code to look at the merits and feasibility of the SSMID and then make an evaluative report to the Council. For example, if they found it to meritorious and feasible, they needed to articulate the reasons why they found it to be so or if not, they needed to articulate the reasons why not. Nasby said once this passed through the Commission it went back to the Council for their consideration. The steps that City Council would then take would be to notify the property owners, set and hold a public hearing, then the SSMID ordinance would require three readings. Since this was an annual tax levy it would ge back to the Council every single year as far as what amount of the levy would be set, up to the $2.00 maximum. If the owners of the CB-10 district wished to petition for a different purpose er a different tax levy, they could do se at any time. The petition had been forwarded to the City by 25% of the owners representing at least 25% of the value. If there was an opposition petition, it would have to have the same thresholds. If 25% of the owners representing at least 25% of the assessed value wanted to petition to oppose the SSMID as it was set forth, they could file a petition with the City. The 25% / 25% would force a unanimous vote of the Council. Code required that a % majority of the Council pass a SSMID levy. At any time in the process, if a petition was submitted that contained 40% of the property owners representing at least 40% of the assessed value in opposition, the process would just stop and there would be no further consideration of it. Behr said because the Commission had not faced a SSMID petition before, he wished to reiterate that the Commission's role was to do a report on the merits and feasibility of the District as proposed. On pages 3 and 4, the Staff Report set forth some good specific criteria that should be considered and put into their evaluative report. In terms of the merits of it, they were looking at whether or not the stated goals of this district were consistent with policies of the City and the existing Comprehensive Plan and existing ordinances. In terms of feasibility, the Commission was to consider, as the petition was proposed, could it reasonably be expected to further those goals and accomplish what they were trying to accomplish. From a procedural standpoint, one difference was that generally the Commission made a recommendation to Council and that recommendation was set forth in a motion and in the minutes. With the SSMID, the Commission had to do a report at some point, whether it was done in one meeting or two. Behr suggested that the Commission give direction to the Staff as to if they did or did not agree as to what had been listed on pages 3 and 4 of the Staff Report. Then at the meeting in which the Commission voted on the proposal, Staff could then place that information into the form of an evaluative report to be forwarded on to City Council. Anciaux said the required 25% of property owners had forwarded their petition to the City to have the SSMID application brought before the Commission. If there was a requisite 25% of property owners with a differing view who were opposed to the SSMID, was there any way the Commission could recommend an election or actual ballot so there would not be petitions flying back and forth. Behr said there was not. This item was a creature of statue and the statue was very specific about how and when the additional voting requirements kicked into place. As it stood, it required 75% Council vote. If a 25% opposition filed a petition, it would require a unanimous Council vote. If 40% petitioned in opposition, there would be no vote, it would be halted. It was all governed by statue. Planning and Zoning Commission Minutes January 15, 2004 Page 4 Freerks asked if an opposition petition had been started. Behr said he did not believe that his department was aware of or had knowledge of anything nor did he believe that anything had been filed yet. Public discussion was opened. Roqer Christian, owner of University Camera, 4 S. Dubuque Street. Christian said he was opposed on the SSMID tax on the downtown area for several reasons. · The imposition of the tax to promote the downtown area would not be a benefit to many business owners. · It would, in most cases, cause rents which were already generally quite high to rise. · He was concerned that the money would not be well used, despite the good intentions of those entrusted to disburse it. · It was very hard for him to see how his business would be positively impacted through this levy, especially considering how much his sales would need to rise to offset the rent increase. Christian said having worked in downtown Iowa City since 1971 he had seen the effect of various decisions made with regard to issues such as parking and the changes on Iowa Avenue which caused great distress with his customers, "Why isn't there parking in downtown Iowa City?". Christian said he wondered at the wisdom of SSMID proposal and its effect on the future of the downtown. · Depending on where the line was drawn, there were approximately 30+ retail non-bar or non- restaurant businesses pulling the weight for shopping in the downtown. Imposing another tax and raising their expenses was not a good idea. · There was no sunset provision in the ruling, it just did not end but went on for ever. Christian said they simply needed to make sure their customers were served and provided more reasons to come downtown besides bars and restaurants. Hansen asked how much Christian's rent would increase if the SSMID became effective. Christian said he couldn't say as he had not had any direct information from his landlord up to this point. He was reasonably certain that a significant portion if not all of the increase would be passed on to him as a business person. Anciaux asked Christian if he was aware of anyone who was getting a petition up to oppose the SSMID. Christian said not to the best of his knowledge, but he kept his nose pretty close to the grindstone on a day-to-day business deal. Marc Moen, 226 S. Clinton Street, said this was an exciting time for downtown Iowa City. He was one of the persons who very much supported this proposal. The purpose of the SSMID was to market downtown Iowa City and to provide a fund to hire a staff person who could do the marketing. What the Downtown Association (DTA) had done in the past had been done largely without funding or with very little funding and had been a very frustrating experience. Moen said he had not been closely involved in that Association, but had knowledge from talking to persons who had been involved that it had been very difficult and frustrating because of a lack of funding. Moen said the City of Iowa City had spent an enormous amount of money on downtown Iowa City. From projects he had been involved in, Moen said when bringing bankers in from all over the country, they were amazed at this city and what a secret it was and that they hadn't heard more about it. At this point, the City really needed to be marketed better than what it was and they needed funds to do that. Moen said they owned a number of properties in the central business district, about '~0% of all the assessed value at this point. With Plaza Towers, they would own a much greater share of it. The tab to them was one of the highest to any of the tax payers. They had talked to their commercial tenants, they were very much in favor of the SSMID. He said they were businesses that were very aggressive, they were on the cutting edge, i.e. Starbucks Store, Mondos, Terrapin Coffee, and a number of thriving business downtown that were very much in favor of the SSMID. Moen said from their perspective, this was something that would benefit the downtown area very much. He said what surprised him when he first became involved in the petition was that most cities of any size had a SSMID district. Having talked to some of the merchants downtown, they told him this should have been done 10 or 20 years ago. Moen said he thought it was time that something like this should be done to really develop a cohesive marketing group for the downtown. Planning and Zoning Commission Minutes January 15, 2004 Page 5 Hansen asked Moen to give a little overview of how he felt this would benefit all businesses. Moen said he didn't know the specifics of how the marketing would be done and he was not an expert in that area. Malls had a cohesive marketing scheme and that was one of the reasons why they were successful. Downtown Iowa City had attempted to do that without a budget. They had done things like the Friday and Saturday Night Concert Series, Christmas lights on the pedestrian plaza, things to attract people to coming to downtown Iowa City, but they had done it with almost no money. Everything they had done had to be done with volunteers or people donating money. Moen said first they had to market the downtown and get the word out about what a great place it was. As an example, they spent a good part of their day everyday marketing downtown Iowa City but it was project oriented. In the last two years, it had been Plaza Towers. When they had gotten to the point of selling condominium units they had sold 23 of the 28 units almost overnight. It had taken a lot of hard work and a lot of getting the word out to people about what a great place Iowa City was. Moen said persons heard about downtown Iowa City and the problems that existed in downtown and if persons watched the Council meetings on TV they heard the debates about how disastrous it was downtown. Moen said he lived downtown and that was not true, it was a wonderful place. Given the number of people that were downtown at night, which most cities would give their eyeteeth for, there were really very few problems. They needed to overcome the conventional wisdom that there were serious problems downtown and he felt they needed to do that with a marketing scheme. Moen said he thought it would increase the traffic downtown and it would benefit the merchants downtown. Moen said he was not in the retail business, he was in the real estate business. In talking to his commercial tenants, they agreed with the SSMID. Hansen said at the Monday evening Informal Meeting they had been given a lengthily list of other towns that had SSMIDs. Was Moen aware of the results that had been achieved through these SSMIDs? Moen said no, he honestly was not. He thought one of the things that had happened in some of the other towns was that the money had been used for infrastructure and things that the city should really be responsible for. They had met with City staff, the City Manager and Assistant City Manager early on in the process to make sure that they were on board and that the funds would not be used for things that the City should be responsible for. They had been very much on board with that. Anciaux asked if this were not to pass, did Moen think this could be done on a voluntary basis. Moen said he thought that had been tried and that was the problem. To get the kind of funding that was necessary to hire a professional staff person to do the marketing, they had never been able to generate funds to do so. Kevin Peres, said his wife was the primary owner of 126 in downtown. Perez said he was one who didn't think this was actually a very good idea. What Moen had said was accurate, they couldn't get funding for it in the past because business owners didn't want it or they would have paid for it. The marketing they did for '126 was various things. They liked to give money to the shelter house or the Iowa Women's Federation or other things locally. He didn't think marketing a city to other cities would really do anything for 'I26 personally. Plenty of improvements had been made to downtown such as the $18M library which got plenty of press, the City had given $6M dollars to Plaza Towers. Everything received plenty of press. The downtown had new benches, new lights, and there were plenty of things they already had. Each business marketed itself differently. He felt that a fund that would speak for all of them would not work. Personally, was he against Stepping-Up, probably. Against Cafb - probably. There were a lot of people for it and a lot of people had different views about how this money should be spent. Perez said he would rather spend his $800-$1,000 on something else. He would rather hire another employee. He didn't need his city to market for him, he would market as he saw fit to his customers. Perez said one of the questions he had was, he paid $800/month for property taxes. He wrote the check to Dean and Evelyn Oaks who turned it over to the City. Who paid the SSMID tax? Was it his right of the 25% or the Oak's right of the 25%? He essentially paid it because it was part of his triple net lease. Who would have the right to have that 25% of that vote? He paid it because it came out of his pocket, but he didn't own the property. He felt that was a sticking point on who actually got the right to vote. Behr said the property owner was liable for the taxes to the taxing authority. What share of that Perez paid was a matter of his contract with the owner. Perez said most persons downtown had triple net leases where they paid all the taxes. It would be a pass through and a burden to the renters. It would come out Planning and Zoning Commission Minutes January 15,2004 Page 6 of the pockets of the persons who were trying to make a living and to provide jobs. Perez said they tried to market to the persons that they saw. Probably only 15%-25% of the people in Iowa City knew that they existed and they had managed to stay in business for 3.5 years which was pretty good. Perez said to just give money away in a broad effort to bring people downtown was not fair. Who should have a right to vote was also an issue. He was required to pay the taxes by his lease but he didn't have a voice, he didn't see that as fair either. Hansen asked Behr to address the issue, if persons were paying the taxes through the lease did they have a right to sign a petition against the SSMID? Behr said he was quite certain that the statue gave the right to just the property owners to sign the petition. The owners had the right to petition in opposition to the proposal. Behr said he would point out to the Commission that one would hope that the owners would be in consultation with their tenants. The owners would not be inclined to pass on more than they could pass on and also keep tenants. The law was that the owners could petition in opposition but the tenants could not. Perez said both he, a renter, and the owner of University Camera, also a renter, would have to pay the tax but did not have the power to make that decision. It was unfortunate that they couldn't do it. He was very strongly against it. People who rented were mostly against it, "They didn't have a say but they had to pay." Hansen asked Perez if he was aware if anyone had gone to their landlords and talked to them. Perez said this was the forum and they would get an idea of how the Commission was leaning and how it would go. Perez said his voice, as a renter, was they would not want this tax. They marketed as they saw fit and it would just be a pass through to the tenants. Shannon asked Perez what was his feeling for businesses of '/26's size, what would the SSMID do for them. Perez said 'nothing'. For themselves, they were approximately 1,100-1,200 square feet and provided 25 full-time jobs. It was hard enough to keep a business running and keep employees. Any extra burden was going to be just that, an extra burden that he didn't think they should have to bear. They marketed locally and by giving away things to organizations that they saw as necessary and important to them. Hansen asked Perez if he operated a bar. Perez said they did 80% of their sales in food. Hansen said he did not know if this was true or not, but he saw a kind of a difference between the retail bar business in town and regular retail goods stores. Perez said he had owned the Peaceful Fool for a number of years and had a pretty good grip on all aspects of downtown. The SSMID would not have helped him at the Peaceful Fool either. Hansen said he saw the bars as drawing locals to downtown. He wondered if marketing would actually help other retailers draw more people into their stores. Perez said he thought each retailer did their own marketing. For example, University Camera knew who his customer were and marketed to them. Hansen said he was thinking on a broader level, to bring new business in to downtown. Perez said he didn't see any empty buildings downtown. There were a few empty spaces in the mall but that was going to be addressed. Perez said, "Did he think they needed more national chains in town? Absolutely not. The City was built on and by local businesses." Let the chains stay in Coralville. It did no good to bring in new chains when the money went straight out of town. They paid rent to the landlords, but other than that the money didn't stay in local banks. Iowa City was mostly built on citizens that were local. Anciaux asked Perez if he saw any opposition getting a petition up to oppose this. Perez said previously he would have said there would have been no problem getting the 25% against if it was the renters. With the property owners, it would be more difficult. If it were the guys who were actually paying the taxes, he thought it would be no problem. Mark Ginsberq, M.C. Ginsberg Jewelers (owns building at 110 E. Washington) and Room Service (building owned by Paul Swisher). Ginsberg said, given the opportunity to vote mall tenants would vote not to have CAM (Common Area Maintenance) fees. That being said, no one wanted to be taxed on anything. Ginsberg said he felt this would be a distinct benefit for the CB-10 district to have the SSMID in place. Ginsberg said he understood Perez's concerns, he thought no one needed extra taxes or extra budget operating burdens especially when they were trying to define a market place. Ginsberg said Planning and Zoning Commission Minutes January 15, 2004 Page 7 contrary to what Perez had said, he had been in retail his entire life. He was a fourth generation retailer, he understood retail as if he were breathing air. He felt they specifically needed to market themselves outside of this area. During the 16-years they had owned their building downtown, they did get a large share of the local market but they also received an extremely large share of the entire state of Iowa, Des Moines, Quad Cities, Cedar Rapids, Waterloo, Cedar Falls. They had been a pretty dynamic part of Ginsberg's growth. They had not had a down year since 1987, since moving there from the Sycamore Mall. Ginsberg said he also understood what attrition did in a market place for traffic. When Coral Ridge had opened, they had seen a dramatic decrease in their traffic counts in downtown Iowa City. They had been fighting the idea that there was no parking when there were 2,500 - 3,000 parking spaces in downtown Iowa City that would gladly be paid for by the merchants. What they had to do was to overcome negative perceptions. One of the ways to do so was to decidedly go after a proactive marketing campaign. Ginsberg said he, Clayton and Cohen had sat on numerous boards together. They had tried to proactively get every business in the downtown to be proactive about marketing. The voluntary aspect of that had not worked in the 16-years that he had been downtown. Asking persons to join in and voluntarily give money out of their pocket to have a singular voice in marketing a singular area had not proven to be very successful in 16 years. Ginsberg said while to some this would be a bitter pill, it would prove to be beneficial in improving the downtown traffic in Iowa City, developing a cohesive voice for the CB-10 district, allowing a group of people who were elected by a common representation. Ginsberg said the way they had discussed this was that every single voice within the SSMID district would be heard whether they were a small business owner like him, a building owner like him, a renter such as Perez or Christian. He didn't see that as being a particular negative. What he did see as a negative was not having a common voice and that was why he thought the SSMID needed to be pushed through. Hansen asked Ginsberg what the thrust of the marketing would be for - for more customers or new businesses. Ginsberg said "Yes." Anything that they could do to put a focus on downtown Iowa City. He said Perez had said it quite well, this was the personality of the community, this was the alter ego. When someone came in to town whether through ICAD, the Chamber or to move her to work at the University, they were not shown a mall, they were shown downtown Iowa City. What they had was something quite special. If they didn't promote that they would look like Atlanta that was so spread out and sprawled that there was no common voice. There was no personality to the community. A person could walk into a mall and have no idea where they were. When they walked into a downtown district, whether in Chicago, San Francisco, New York, The Village, Soho, Tribecca, the River North Area, there was a personality. They did not want to lose it. By getting together and collectively listening to both voices, pro and con, once the SSMID went through, Ginsberg said he thought they could come together with a much stronger common voice. Ginsberg said his building was about the same assessed value as Christian's building. He would pay about $600/year more and $50 per month was well worth the expense that it would cost him. Freerks said Ginsberg had talked about the voluntary aspect of collecting funds not working properly. She asked Ginsberg if he invested quite a bit of money into marketing and marketed his businesses regularly. Ginsberg said they did it differently. They didn't use institutional advertising as much as they did underwriting foundations, artistic endeavors. They figured out where their patronage was, who came and supported their businesses and they focused on museums. Freerks asked Ginsberg if he felt that the businesses around him who did not spend the money to advertise or publicize themselves benefited from what he was doing in terms of investing. Ginsberg said whether a business advertised or not, anytime they had visibility and there was someone downtown to see who they were was beneficial. The common practice in downtown Iowa City was, they were 'down there' across from 30,000 University students and faculty and they didn't need to advertise because they were going to trip across a business' doorstep. But that was just the local market. Ginsberg said anytime they were able to bring someone in from the outside to see exactly what they were doing, for example bringing in an internationally recognized jazz festival that would be rebroadcast five times over Bradford Marsalis' program out of Fort Lee, New Jersey, and everyone in the entire country heard about it, then Iowa City once again became on one of the top 10 lists of places to live. Anything like that that was pro on the marketing of downtown Iowa City made it a better community to come to, and to live or to retire in. Planning and Zoning Commission Minutes January 15, 2004 Page 8 Anciaux said he'd asked the question several times regarding if persons thought an opposition could get a certain percentage to oppose the SSMID. He asked Ginsberg if he thought the opposition could be won over to support it. Ginsberg said he thought the more they knew the more they loved. The less they knew the more they were afraid. It depended on how they got the message out. If they looked at it as just a pure tax that was going no place and didn't have a positive side to it, anyone would vote it down, including him. if they were able to let everyone know, business owners as well as the renters that would be positive. Ginsberg said to take a step back, a mall would pre-plan that it wanted x% restaurants, x% bars, x% clothing stores, etc. Downtown Iowa City did not have that luxury. One of the things the persons who were trying to push the SSMID through had talked about was that they would be able to go out and isolate leases. Hypothetically, if a building became available, they would like to be able to go to the owner and suggest instead of renting it to the first business that came along and offered the landlord money, the SSMID representatives would pay the landlord 'x' amount of dollars per square foot for a designated period in order to allow them to go out and market to the types of business they wanted in this community. Ginsberg said they could be individually owned businesses instead of chain stores. He would argue that chain stores would not survive in downtown Iowa City just because of the mentality of the psychology here. They wanted independently owned businesses here, they didn't necessarily have to be local but there didn't have to be a GAP either. Ginsberg said, in answer to Anciaux's question, the pro-active side of marketing and the voices that were for it, both business owners and renters, he didn't see the opposition as being as strong as one would expect. Ginsberg said he understood it, no one wanted to pay more for anything if they didn't have to. If a person was going to improve something, they shouldn't be afraid of the investment. Either they took the risk that this proposal was going to work or if it didn't and fell fiat on its face, there was a sunset clause and they could vote it out. On this particular issue, there was not a sunset, but if 40% opposition was garnered, it would be a dead issue. Ginsberg said at least give the SSMID a chance breath or them a chance to fail. Hansen asked Ginsberg to describe the process that came about to obtain the signatures. There were 96 business owners in the CB-10 zone, how many were petitioned. Ginsberg said they had a list of all the building owners in the CB-10 district. Each one of them had been contacted. A group of five SSMID supporters divided up the list and had made the contacts. Hansen asked if he knew if the property owners had visited with their tenants regarding the SSMID. Ginsberg said he didn't know. It has been in the news and if someone read the papers or listened to the radio, they probably got it. Ginsberg said most people probably did not know what was going on. Because Perez and Christian were present, they obviously knew about it. Ginsberg said he didn't disagree with their points as far as not wanting to voluntarily give more money than they absolutely had to to run their businesses. He felt they should also have a voice in the SSMID, once it was developed. Ginsberg said he felt everyone had an opportunity here, an opportunity to speak collectively. While it might be an involuntary taxation, especially for those who were renting, he felt it would be going toward a positive, hopefully pro~active way of marketing downtown. Tim Olsoq, representing the Downtown Association. He also works downtown for Wells Fargo. OIson said he moved to Iowa City 2¼ years ago and believed what he had heard, that downtown was not a desirable place to go, there was no parking, the students were running wild in the streets, etc. Approximately 1½ years ago they pursued a location in downtown Iowa City and had found just the opposite to be true. It was a vibrant, exciting place to be. Olson said it was very enjoyable to be around all the students, the young people; it was a safe place to be; parking was not a problem unless a person wanted to go directly into the business they wished to visit, but there was parking available within two blocks. At a mall, a person had to walk that far a lot of times. Olson said in his experience, Iowa City was a great great product to sell, we had a great story to tell especially with all of the personality that came from all of the different types of businesses. They didn't want to lose that. Olson said what Ginsberg had said regarding having the ability to help shape the downtown as it went forward and possibly change the types of businesses that inhabited it would be a great opportunity for everyone. Planning and Zoning Commission Minutes January 15, 2004 Page 9 Olson said they wanted to bring more people downtown. His personal preference was especially in the summertime. It was a beautiful place. The Arts Fest , Jazz Fest, Friday Night Concerts all had the potential to bring more people downtown than they currently did. The Downtown Association organization would be run differently. The organization they had today was a voluntary organization run by its members. That would all change when the SSMID happened. There would be a Board of Directors made up of property owners and renters. There would be positions for possibly City representatives as well. Someone who was a renter downtown could have a voice, if they chose to. They wanted everyone to be involved. Everyone was going to gain, so everyone should have a voice in what was going to go on. Olson said he was a renter. He had a part of the DTA today, but he might not with a new organization, but that was okay because he knew that his fellow members of the downtown organization were going to spend the money wisely. He had no doubt about that. Olson said there was too much to be gained by spending possibly $200,000 as opposed to $25,000-$30,000 a year. The character that was there could be sold. The perception that the city had that the downtown was not a desirable place was totally and completely wrong. He didn't think that would be too hard to change, but it would take some time. Leah Coheq, said she had a small business downtown, she rented the building through a trust at Iowa State Bank. Cohen said Iowa State Bank had signed for the property that they used, but they did not sign for their tenants. Cohen said she thought there was a reason for that. Her operation was restaurant by day and bar by night. She agreed with those who would like to see less bars downtown. She, as others, felt it was a little cyclical. Next week she would celebrate 20-years in her downtown location. She remembered and had seen everything that had happened through the years. The one biggest observation that she had was, when she first opened a business downtown, it was all local people. Then the chains came, then they left after Coral Ridge came. Her hope was that there would be some concentration on trying to get the younger generation of local people to come back downtown. She believed that chains were not the answer as to what was going to go on downtown. Cohen said she had a couple concerns with the proposal and could possibly answer some of the questions that she'd heard. Cohen said there definitely was a group who were very opposed to what was going on with the SSMID. She didn't know if there was 40% or not, she didn't know if anyone had gotten to that point yet. Most downtown businesses rented their properties. In accordance with that, most did not know this was going on. Cohen said many many that she had talked to had no idea that this was going on. She had not personally received a letter at Bo James, her landlord had received a letter at the bank in regards to the meeting. She followed what was going on and that was why she had attended the Commission's meeting. Cohen said concerns that she had with it were: · The Iow threshold of signatures, the percentage that were involved with the petition before the Commission. · Old Capitol Mall, at $9M, was in receivership at the time the petition was signed but now had new owners. Cohen said she assumed that they would want a good voice in what was going on with the SSMID. · It had been said that all the landlords had been contacted. If you looked at the number of landlords who had signed, there was a real concern on why all the others did not and why there was a Iow percentage that signed for it. · As a small business, they as would pretty much everyone downtown, pay that tax. It would just be passed on in their leases as were most taxes. She thought for her business it would be $100- $150/month. That was not a concern to her. · The biggest concern was that this would just become another level of a few people running it and what would happen with it. What would happen with it was they were going to pay high wages out to people, that was where a lot of the money would be going. · How would it duplicate the Visitors and Convention Bureau and what was supposed to be happening with that organization. · The Downtown Association evidently would be replaced. It had been very very weak for a long time and they had paid out all kinds of wages for that, for not a lot. Cohen said she had a big concern that this was going to be another one of those local levels that the money was going to be going to a lot of nothing. She thought there was a concern, that there was not Planning and Zoning Commission Minutes January 15, 2004 Page 10 much voice on it yet and would not be until it got to the point where people could start voicing their concerns. She had encouraged persons who had talked to her about it to talk to their landlords. Most who had talked to her, their landlords had not signed on it and there was a reason why they had not. Cohen said she understood what was being said and that it would be wonderful to have a fund to increase what was going on and bringing people into the city to increase their retail market outside of the bars. Cohen said she was just not for certain that this was the way to do it. Hansen said Cohen had alluded to there was a reason why certain landlords had not signed on. Could she give the Commission any idea of what that might be? Cohen said she'd been told a couple of things: They did not feel they should be signing on to an additional tax for their tenants in lieu of most of them being small businesses and in lieu of all the taxes that had gone up for all the buildings that they had all absorbed and were continuing to absorb over time. Aisc, that they were opposed to it. Hansen asked Behr at what point could an opposition raise a petition and say they didn't want the SSMID, if it were to be passed. Behr said the Council could decrease the tax rate down to zero. While the SSMID district would exist, the Council could when they reviewed the tax rate put it down to zero. The district would exist but there would be no additional tax. At any time throughout the process, persons could go to the Council and request that that be done. The 40% that Behr had previously talked about would have to occur before the Council's final vote. Hansen said if this passed and a marketing professional was designated to do this job, assuming that these types of persons were paid, he'd assume it would cost at least $50,000 possibly $75,000 for a good marketing person. That was a substantial amount of money out of the $192,000 that could be raised. If people didn't like this and felt the money was just being spent on salaries, could they go the Council and stop it at that point. Behr said he would defer to Nasby, but he believed persons would have input at the Council level as to how the money would be spent. Nasby said because this would be an annual levy, if persons felt it was not worth it or that nothing was being done, they could go to the Council through the budget cycle and make the pitch not to assess a levy. The other possibility would be to amend the SSMID district. That could be done at any point in time, if the 25% / 25% came again, they could make the petition to the Council to terminate the SSMID district and it would go through the very same process that they were going through right now. Behr said it was not just that persons could go and object to what had been spent, they could have input in the whole process when the budget was taking place as to how it was going to be spent, so they could have input on the front end. Kevin Diqman, representing the new owners of the Old Capitol Mall. Digman said the old owners had voted for / signed the petition for the SSMID. He said he was not saying that they were for or against or that they had a position yet, but their feelings were exactly what he'd been hearing at the meeting. Until they checked with their tenants and knew what they wanted to do, they wished to have their name and value taken off the petition until they knew what their tenants wanted to do. Digman said they felt that their tenants were going to be the ones who would bear the outcomes of the proposal. When they had recently purchased the mall, this had all been in process. He had spoken with Nasby numerous times to try to find out more about it. Until they had a pulse for what their tenants were willing to do and what they wanted to spend, and they obviously would spend their own marketing dollars to do things for the mall, they wanted to make sure that their tenants were on board with what the new owners were doing. Digman said he didn't know if that would change everything, but he wanted to advise everyone of the position that they were taking. At this time, they were taking a neutral position until they were able to get their tenant's feedback and position. Freerks asked if Digman had started to act on that yet. Digman said they'd just received the notice that this was coming up. It would be $18,000/year for them, it was substantial. They had a lot of questions yet - how was the money going to be spent, would it all be in administration, how was it all going to be done? They wanted to get a better feel for what was going on, was this really the answer and what did their tenants want. Planning and Zoning Commission Minutes January 15,2004 Page 11 Hansen asked if the former mall owner's names were on the petition. Nasby said they were. When the petition had been filed, it was a valid petition with that name on it. Even if the mall were magically to go off the petition, the petition still met the 25% / 25% threshold and they would still be at the point that they were at now. Nasby said if the new mall owners wished to remove their name from the petition, he didn't know the process and would have to consult their bond council. If they wished to oppose, Nasby said he would encourage them to sign an opposition petition and that would have a net effect of helping the 25% / 25% on the opposifion petition. Hansen said he really wasn't sure how the new mall owners were going to get a handle on their question because of the way the petition was written right now. The only thing the money could be spent on right now was marketing. Digman said he understood that. Nasby and Behr said the money was for operational expenses - to set up an organization and to get it operating. Marketing was one function that had been identified. Digman said he had spoken to Nasby many times and understood that by them coming off the petition, it would not change things. He wanted to let it be known that the new mall owners were taking the position that they were leaving the decision up to their tenants. If they wanted to be for it, they would be for it; if they wanted to be against it, they would be against it. Terry Miller Chait, co-owner with her husband of a building at 218 E. Washington Street. In the last year they had opened their business. Miller Chait said she was against the tax district and had some very fundamental problems with the whole issue. She didn't think that the 25% of the property owners who needed to sign on the petition was a fair assessment of what the downtown wished. She believed that the business owners should more determine what happened to those downtown businesses than the property owners. There were some very good landlords downtown who had consulted with their tenants, but there was also a number of landlords who had not. Miller Chait said she believed that there were some landlords who had signed on the petition but whose tenants were not for the additional tax. Miller Chair said she really believed that it should be the business owners who determined whether they had to pay more tax, it should not be the landlords who determined whether the business owner had to pay more tax. As had been pointed out several times earlier, most of the tenants were involved in a triple net lease so they were going to pay the tax no matter what it was. Miller Chair said the second part that she did not like about the tax was that it was self renewing. It would automatically renew every year without an opposition or without a specific action to get it gone. The Council would vote for the percentage but the tax would automatically renew every year. It really would not be something that came up for business owners to reconsider, unless enough business owners realized that this was not working and they needed to do something about it. It would take a specific action to get it gone. Miller Chair said she thought there were enough businesses changing hands in downtown, enough new businesses coming in or other businesses leaving or changing hands that she didn't think this was the right way to put together a fund like this. For example, the Old Capitol Mall. Their voice was really not being heard in what they really wanted to say at this point because they really didn't know. They had said they might be for or against, yet their name was on the petition. The proposed tax would be used for items that should be discretionary expense items that each business owner would pay according to what they wanted to pay. Miller Chair said when it came to paying property taxes, she wanted her property taxes to pay for the safety and security of her friends and neighbors, herself, her building, and her property. When there was a football game and lots of people were downtown celebrating and there was lots of partying going on, she wanted the police department to be taking care of the safety and security of all of the properties downtown. She was very willing to pay for taxes that did that. When there was a fire in a downtown business, she wanted the fire department to be there immediately, to take control of the fire and to make sure that it didn't get to the adjoining buildings. Miller Chait said she wanted her taxes to pay for those services and she believed that was what the role of taxes were. She didn't believe that her taxes should go to pay for valet parking or for mass advertising, which were some of the ideas that had come about with the SSMID tax. Planning and Zoning Commission Minutes January 15,2004 Page 12 One of the goals of the proposed tax was to bring more business in to downtown. Miller Chair said she believed that it would, in fact, have exactly the opposite effect. Small businesses would have to pay more taxes to come into the downtown area, so why would they want to move into the downtown area when there would be an additional tax? Why wouldn't they just as soon move outside of the District instead of into the District. Miller Chair said she didn't believe that the proposed tax would really have the effect that was really desired. Miller Chair said she believed that a tax like the proposed SSMID tax removed some of the discretionary income that a small business owner had. As small business owners they had only so much money and they could spend and tried to make their choices carefully regarding advertising costs, rising insurance rates, expenses and especially new business expenses. It could be very difficult to find additional discretionary income. When they did have additional discretionary income, they wanted to decide how to spend it. It they wanted to spend it for supporting the Englert Theatre or supporting the Jazz Fest or the Arts Festival, all three projects which were very worthwhile projects that were supported by Iowa Citians and especially by downtown Iowa Citians. When she had discretionary income, she wanted to be able to suppor[ those projects that she felt made Iowa City vital and that helped Iowa City grow and that helped bring people into Iowa City. Miller Chair said she wanted to be able to spend her own money. She didn't want to pay it into some fund that was going to spend 2/3 of it on salaries and maybe the rest on marketing. Miller Chair said she wished to say again that she was against the tax and that discretionary income was best spent by the business owners. Hansen asked if the SSMID were to have a board overseeing it, wouldn't that give people a voice in how the money was spent? Miller Chait said it would give the people a voice in how the money was spent, but there were 96 properly owners which did not reflect the actual large number of small business owners in downtown Iowa City that this would be a hardship for. It would be burdensome. When a group of people were brought together, you got a lot of voices. They either all had to do one thing or they did nothing because they could not agree. It was not like everyone got to do what they wanted to do. The money went into a fund, the money was spent by some consensus but that didn't mean that everyone would get what they wanted out of it. Koppes asked if they had started an opposition petition yet. Miller Chait said they would. Hansen said he was wondering in his mind if there was any way a study could be done to see what the impact of this would be to quell people's questions one way or another. Miller Chair said that would take money also. One thing that they all had heard that evening was that the volunteer input of funds had not worked. Had it not worked because there was not enough money or had it not worked because it did not work? Jim Clayton, owner of Soap Opera at 119 E. College Street, said he had been in business downtown for 23 years on the Ped Mall. They arrived downtown about just the time the Old Capitol Mall was opening and the first remodeling of the Ped Mall was accomplished. Clayton said they'd been members of the DTA on and off over the years, he was a board member. The DTA had a hard time putting together a budget because people didn't pay their dues. They talked about it, they planned on it but they didn't pay. The Friday Night Concert poster from 7 years ago had 75 names on it of people that gave money to help support the concert. This year it had 26 names. Clayton said there was no free lunch, people had to pay for the things they did. They had the Friday Night Concerts, Arts Fest, Jazz Fest, Just Jazz, activities for the children downtown, movies on the wall, Weeks of Welcome for University students and they had contributed labor to get the job done. Chuck Goldberg, outgoing president of the DTA, had cooked pork chops outside the hotel to raise a few dollars to help pay for the musicians they'd hired for Friday Night Concerts. As Ginsberg had said, when visitors were shown the community, and when they want to be shown what is really good about it, they were brought to the downtown to show them the type of quality that the downtown had. They were not shown the Coral Ridge Mall, they'd seen the mega malls all over. Clayton said it had been said that they had spent "big money". They had hired an administrative assistant to answer the mail of persons inquiring about our community, to try to collect dues and raise funds for the concerts. Their entire budget had been a little over $20,000/year. Out of that they had paid an employee. They would not get a marketing person for a $1,000/month, but they were not going to spend half of their Planning and Zoning Commission Minutes January 15, 2004 Page 13 money on a marketing person either. The City had withdrawn some of their support as had some other businesses that had supported them in the past. They could not afford to do all those things. Clayton said those were important events and they needed to find that money somewhere. When people in the community were asked what went on downtown that they liked, the Friday Night Concert was probably the most frequent answer. Clayton said persons complained about the parking, but they paid for the parking for their customers. A merchant had to be a member of the DTA to participate in Park and Shop. Clayton said he imagined if they had a SSMID, that everyone downtown would be a member of Park and Shop. That would be one way they could use this money so that when people shopped in their stores they would get a punch on their parking ticket and the SSMID could pay for that. That was not valet parking. They could also opt to let their customers park for free every Saturday in December and write out a check to the City. There were lots of things that could be done with SSMIDs. Clayton said according to an article in the Wall Street Journal about 6-years ago, 92% of the SSMIDs stuck, they didn't go away because they worked. If the Commission wanted to see a working SSMID, they should go to downtown Denver. Someone swept the ped mall all day long with a broom and a dust pan. They had a cell phone that connected instantly to the police department if there was a problem. The SSMID paid that person. There were lots of things that could creatively be done with the money. Clayton said he had a question in his mind. In his building, in the part that he occupied, he had a 500 square-foot store. He paid DTA membership dues at the lowest level. He had just written the dues check for this year, which was $250. If his landlord passed the tax through to him, he would pay $600 for the SSMID tax. He said after the SSMID went through, he wouldn't pay DTA dues anymore because the DTA would go away. He would have a net cost of $350, which was not very much money to get the kind of return he expected they could get. Clayton urged business owners to consult their legal advisors and review their leases. If it was an assessment, it was not a pass through unless it was in the lease. He suggested someone review the Iowa standard. Was it a pass-through, a real estate tax or a special assessment that therefore would not be identified in many leases until the landlord re-did the lease. Someone might have a three- or four-year free ride where they didn't have to pay anything. Clayton requested the Commission give them a chance to see if this worked. They were not talking about millions of dollars, only about $192,000. They didn't get to collect it until a year from now. Persons could join the Board of Directors, run for an office on the Board, have a say whether they were a tenant or landlord and they could ga back to the Council to change the bi-laws. Everyone had had a chance to find out about the proposal, it had been in the newspaper. They had tried to contact a good many of the landlords. A lot of them were "out of towners", they didn't live in the state of Iowa, they were very difficult to get a hold of and many of them had not bothered to respond. Clayton said this was an opportunity for 'us' to do the landlords and the tenants a favor by preserving and promoting the downtown to make it something really special. Shannon asked Clayton why he thought the number of sponsors had dwindled. Clayton said because they were not involved. They'd the same problem getting people for the DTA Board of Directors. They had a hard time getting people who really had the time and energy, they'd had promotional committee members who if they'd had to pay for their services designing brochures and doing the mailings, the DTA would be broke. There were a lot of people who had been coat-tailing for a long time. It was time for them to step up and say they were going to make something out of the downtown or they were going to let it fade away. Shannon asked if it was because of apathy. Clayton said he thought so. People wore out and wore down after a while. He said people talked about all the young people opening businesses downtown. They did not get a lot of membership out of the dining and entertainment sector. They had done a brochure and had gotten quite a few new members because they had specifically promoted their businesses. On a Friday night concert night, all those businesses were packed with customers. It was easy to say those customers would have been downtown anyway. It was east to say that they didn't really need anyone else to help bring them business. Planning and Zoning Commission Minutes January 15, 2004 Page 14 Clayton said he depended on the other merchants downtown to help make his store successful. They needed to have a critical mass of merchants downtown that people wanted to patronize. They needed to have a marketing scheme that made people see that they did have a critical mass of businesses downtown that were worthwhile. He said, why should out-of-towners rave about the downtown but our own citizens hadn't even been downtown. People came downtown for certain things. They needed them to come down more frequently. Clayton said he felt this kind of an effort could help do that. Bob Burns, 319 E. Washington, the Citizen Building Apartments. It was affordable, rental housing for the elderly and persons with disabilities. Burns said it was his understanding in the SSMID district that taxes would be assessed on commercial property but not assessed on residential. A condominium would be considered a residential property and not be taxed, but an apartment building would be considered commercial property and would be taxed. In their case, even though they were Iow rent housing, they paid property taxes. The difficulty with the SSMID district was that the rents that they were allowed to charge to operate the property were already fixed. They were capped in the mid-1990's when they had put the project together, capped at the fair market rent, so any increase in tax, there was no line item in their budget to cover that cost. Burns asked if property owners in the proposed District would have to recuse themselves if they were on the council and owned property in the District? Behr said there had been an opinion issued that, Yes, members of the Commission or the Council who owned property in the District would have a conflict of interest and should recuse themselves because of it. Burns asked either a property owner or a tenant? Behr said he would have to check the opinion that had been issued. Burns asked who on the Council would be either a property owner or a tenant. Nasby said Lehman, Champion and Vanderhoeff would have a potential conflict. Nasby said Section 386.3, #7 gave the details of number of Council members required to approve this measure. Perez voiced concerns regarding Ginsberg's hypothetical situation that SSMID funds would be used to pay a property owner to keep their property vacant until the SSMID committee could find the type of renter that they wished to put in that particular location. This was not a free market. Perez said part of the reason the DTA was not working was because they had been exclusive to bars and restaurants. Some of the DTA members worked for Stepping Up, working directly against restaurantJbar owners, so they really didn't want to join the DTA who was working against them. They didn't feel like they were one voice. Perez said listening to what had been said, he felt there was an ulterior motive. There were a lot of people against the proposal who did not have a voice. Freerks said if the SSMID were approved, committees would be established and the Council would have to approve use of funds for that particular purpose as part of the budget process. Perez said there would be a lot of dissenting voices and he did not feel that the committee would be a unanimous, united voice. He felt a lot of the time his voice would not be represented. Ginsberg said all who had spoken had worked with each other, sometimes in agreement and sometimes in opposition. They had been divided for all too long and this gave them an opportunity for a collective voice. He said the SSMID was all about partnerships, it was not about individualism. He said there were a few who were the only ones who got involved. They were trying to integrate the population among generations. M.C. Ginsberg Jewelers had paid for a lot of the projects in downtown Iowa City out of its own pockets, without asking for other peoples help. Ginsberg said he felt it was time, if they were to continue to participate, to have everyone participating. If they asked for volunteers, no one would volunteer. What they wanted and were asking for was more business, more volume of traffic, more people spending their money in downtown Iowa City. This was an idea of how to do it. Public discussion was closed. Hansen asked if the Council, on its own without input from the SSMID could reduce it to a zero taxation. Behr said that was possible. To say, "without input" would not be accurate because SSMID would be very involved in the process but a situation could exist where SSMID wanted to keep the same tax rate and Council didn't feel it was working and decreased it despite their objections. Nasby said each year through the public budgeting process the levy would be set. The Council would have discretion between the $2.00 maximum and zero. Planning and Zoning Commission Minutes January 15, 2004 Page 15 Freerks asked Nasby to find out, as suggested by Clayton, if this was a pass through tax or not. Also, to find out about Burn's questions. Koppes said there had been a lot of talk about parking. It was her understanding that this did not include parking. Behr said that was correct, the current petition did not include parking. There would have to be a new SSMID petition that would have to go through the entire process. Behr said regarding the question of if this was a special exception or a real estate tax, Staff would investigate the question. However it would not necessarily answer for all of time who paid that tax. It would depend on what the leases said, who interpreted the leases and what future leases said. The private leases between owners and tenants would govern if it was a pass through tax. Motion: Hansen made a motion to defer the CB-10 SSMID petition as stated in Staff's Report. Koppes seconded the motion. Anciaux said he'd asked the same question several times. The question, "Who was the opposition and did they think they could get a petition up to oppose this?" was asked of Perez, Christian and Miller Chair. The question, "What do you think you can do to sell it to the other people?" was asked to Moen and Ginsberg. OIson had answered the question before Anciaux could ask it. Anciaux said he had not felt this uncomfortable about a situation since a family had been before the Commission fighting about a rezoning. He said he would like the downtown to be like a family and would like them to get together and the pros try to sell it to those who opposed. Anciaux said for the persons who did not like the proposal, he strongly encouraged them to get their cohorts before the Commission to voice their opposition and to get their percentage of the petition up to kill it or whatever. He wanted them to caucus. Anciaux said the Commission was charged with providing an evaluative report of the merits and feasibility of the SSMID to the City Council. At that time it would be very important to have their percentages of opposition or to have their program sold. Behr said the question of whether the appropriate amount of property owners were in favor of this or not was really a question that unfolded at the Council level. The Commission weighed in as to the merits of the arguments of those on each side. Hansen said on Monday evening he had asked, if for example 20 small businesses decided this was too much of a burden and decided not to be downtown, would that hurt the downtown. Hansen said he would be looking for, from the opposition, some type of answer to that question. How did they feel, if this tax would come upon them, would they leave the downtown? Anciaux said he was leaning against voting against deferral in order to move this to the Council level so people could present their percentage of opposition or sell it to the other group. Freerks said she would prefer to go through the list and match what people had said to what Staff had prepared and said they needed to address and assess. It would give them a better report to present to the Council. Behr said with respect to the provision about acting on this matter somewhat promptly, he would suggest the Commission consider giving Staff some guidance as to the evaluative report at the informal meeting and then action at the next formal meeting. Hansen said what made him uncomfortable about voting on it yet that evening or passing it along was the fact that not that many people had heard about it or had the time to respond. Shannon said he remembered when downtown had five department stores and three Five & Dimes and everything in between. One could look at it as that had been the golden era of the downtown. Things changed and moved on, you could not hang on to the past. He was torn and wanted to see the downtown given the best shot it could get. The downtown had had some tough times and he thought it could come back, to some extent. He was also hearing the small business owners who felt they were being left out and were not positive about it. He wanted to hear more input from persons on both sides and was glad they had moved to defer. Planning and Zoning Commission Minutes January 15,2004 Page 16 Brooks said he was conflicted in his opinions on the whole situation. He very much agreed and suppoded the idea that marketing and promoting could do a lot. He was concerned that the threshold, set by State Code, was so Iow in everything and was sa general that it was difficult for him to evaluate the merits and the feasibility of this request when there had been a lot discussed and brought forth in terms of ideas. It was hard to sink your teeth in to anything and say you supported it when everything was in such broad conceptual terms. He felt restrained by the State Code in that there was not a very high threshold to say it met the criteria of the Code. It would then be passed on the Council who could deal with the politics. Brooks said it would have been nice if the petition had had a higher percentage of signatures and would have been a much easier decision. It would have been nice if they had not taken the approach of the bare minimum in terms of the goals and expressed that more clearly to the Commission. In general terms, the idea of marketing and promoting collectively was very good. He appreciated and understood the concerns and opposition expressed by the small business owners. It could be very tough and he had been there before. Anciaux called the question. The vote passed on a vote of 7-0. CONSIDERATION OF 12/18/03 MEETING MINUTES: Anciaux made a motion to approve the 12/18/03 meeting minutes. Hansen seconded the motion. The motion passed on a vote of 7-0. ADJ©URNMENT: Hansen made a motion to adjourn the meeting at 9:27 pm. Koppes seconded the motion. The motion passed on a vote of 7-0. Jerry Hansen, Secretary Minutes submitted by Candy Barnhill MINUTES FINAL~ IOWA CITY TELECOMMUNICATIONS COMMISSION MONDAY, JANUARY 26, 2004 - 5:30 P.M. CITY CABLE TV OFFICE, 10 S. LINN ST.-TOWER PLACE PARKING FACILITY MEMBERS PRESENT: Brett Castillo, Terry Smith, Jim Pusack, Saul Mekies, Kimberly Thrower MEMBERS ABSENT: STAFF PRESENT: Drew Shaffer, Mike Brau, Bob Hardy, Andy Matthews, Dale Helling, Kevin Crawley OTHERS PRESENT: Phil Phillips, Rene Paine, Beth Fisher, Susan Rogusky, Jon Koebrick, Andy Kromphardt RECOMMENDATIONS TO CITY COUNCIL None at this time. SUMMARY OF DISCUSSION Paine reported that PATV has extended their operating hours and are now open until 11 p.m. Monday- Thursday. Theresa Seeberger was recently appointed to the Board of Directors. The annual report will be ready in March. Paine announced she will be resigning as director and the Board will have a replacement hired to take over in the spring. The City received notice today that the FCC ruled against the City on the rate matters addressed in the settlement agreement. However, Mediacom informed the City that they will abide by the terms of the agreement despite the FCC's ruling. Shaffer thanked Mediacom for their decision. Koebrick reported that Mediacom is going to double the download speeds of their cable modem service. The service will now offer download speeds up to 3 Mbs and upstream of 256 Kbs. An email message will go out to all subscribers notifying them of this change. Video on demand (VOD) services are being launched in Cedar Rapids and will be offered in Iowa City soon. Mediacom is making progress in their effort to achieve Competitive Local Exchange Carrier (CLEC) (telephone) status with the Iowa Public Utility Board. Mediacom's telephone service will be using the Voice Over Intemet Protocol (VoIP). Mediacom is conducting a beta test of their telephone service in their Des Moines office and have been pleased with the quality and reliability. Mediacom has not chosen where the service will be rolled out, but it will likely be in the third quarter of 2004. The cost will be about $40 per month and will include all long distance charges. The average phone bill in the United States is about $63. Mediacom will soon offer an upgraded digital converter box that will include a digital video recorder, which is similar to the TiVo service. In March more high definition television services will be offered including HDNet, Bravo, ESPN, Discovery, and if a deal can be negotiated, the broadcast channels. Shaffer said that the letter to Mediacom regarding the drop audit is finished and clarifies that the terms of the franchise regarding conducting an drop audit have been met. Smith noted that the letter leaves open the option of a full technical audit in the franchise renewal process. APPROVAL OF M1NUTES Smith moved and Mekies seconded a motion to approve December 15, 2003 meeting minutes. The motion passed unanimously. Smith moved and Thrower seconded a motion to approve the amended January 2, 2004 minutes. The motion passed unanimously. ANNOUNCEMENTS OF COMMISSIONERS Mekies asked if the Commission might be interested in including an agenda item for future meetings regarding the cost of ESPN, adding CSAPN 3 the system, and grouping channels in the lineup according to their type, such as news, sports, family, etc. SHORT PUBLIC ANNOUNCEMENTS None. UNIVERSITY OF IOWA REPORT Kromphardt reported that U o£I TV received funding for a digital automated playback system and will be purchasing one soon. The process to hire a new program manager is underway. U of I TV recently taped the Martin Luther King Jr. convocation. PATV REPORT Paine reported that PATV has extended their operating hours and are now open until 11 p.m. Monday- Thursday. Theresa Seeberger was recently appointed to the Board of Directors. The annual report will be ready in March. Paine announced she will be resigning as director and the Board will have a replacement hired to take over in the spring. SENIOR CENTER REPORT Rogusky distributed the January Senior Center TV program guide and a copy of an article about SCTV that appeared in the Community Media Review. IOWA CITY COMMUNITY SCHOOL DISTRICT REPORT No representative was present. LEGAL REPORT Matthews said he had nothing new to report. LIBRARY REPORT Fisher reported that the library will hold a summer reading program for both young adults and adults. The construction schedule for the new library is still on time. K1RKWOOD REPORT No representative was present. MEDIA UNIT Hardy reported that a new server-based playback system is being tested. The new system should save time and money. Soundproofing and a lighting grid have been installed in the studio. The Community Television Service continues to be quite busy. CABLE TV ADMiNISTRATOR REPORT Shaffer distributed the Citizen Financial Summary. The City Council has scheduled a work session on the budget for Tuesday, January 27 at 6:30 p.m. where Commissioners can address the budget plan and suggest changes in the Cable Division budget. Shaffer said he is relaying this information as a courtesy as the Commission has already reviewed the Cable Division budget. The cable TV budget is again providing a $100,000 subsidy to the general fund. Shaffer referred to the rate settlement agreement in the meeting packet and said that it was passed by City Council. The City received notice today that the FCC ruled against the City on the rate matters addressed in the settlement agreement. However, Mediacom informed the City that they will abide by the terms of the agreement despite it not being formally adopted. Shaffer thanked Mediacom for that decision. Shaffer reported that he has been working with the Center for Governmental Studies from California to put together a video tape of eight minute statements from the Presidential candidates to be shown on local access channels and by Mediacom on their local channels state-wide. The process is also being undertaken in New Hampshire and other states. The project will help educate citizens about the candidates and educate the candidates about local access. Helling said there is a potential to develop the idea for state and local elections. CONSUMER ISSUES Shaffer referred to the quarterly complaint report and the January complaint report in the meeting packet. Shaffer said the complaint level was down for both reports. Shaffer referred to a complaint received by letter in which the subscriber had been billed for an analog converter box for a long time, did not need the box, and did not realize that they had been billed for the converter. Shaffer said he recently received a similar complaint. Mediacom agreed to provide a six month refund for those charges. ShafferaskedKoebfickiftherewereanyrecordsofreturnedconverterboxes. Koebficksaid Mediacom has those records. Shaffer said there may be more subscribers that are being charged for converter boxes they are not using or do not know they are being charged for a converter box. Mekies asked if it was possible to send a notice to subscribers renting analog converter boxes. Koebfick said that could be done and that he is unsure how many subscribers that would affect. Pusack said that some subscribers may not understand what the term "non-addressable converter" refers. Thrower asked Mediacom to provide the number of converters being billed. Koebfick said he will provide the number of non-addressable converts subscribers being billed in Iowa City. Matthews said that a public education effort through bill stuffers and other means may be needed. Smith suggested using InfoVision and the City Channel. The scope of the problem is not known. Perhaps taking a sample survey of all subscribers with converter boxes could help determine that. Koebfick said that Mediacom can not legally provide customer information. MEDIACOM REPORT Koebrick reported that Mediacom is going to double the download speeds of their cable modem service. The service will now offer download speeds up to 3 Mbs and upstream of 256 Kbs. An email message will go out to all subscribers. Video on demand (VOD) services are being launched in Cedar Rapids and will be offered in Iowa City soon. Mediacom is making progress in their effort to achieve Competitive Local Exchange Carrier (CLEC) (telephone) status with the Iowa Public Utility Board. Mediacom's telephone service will be using the Voice Over Internet Protocol (VoIP). Mediacom is conducting a beta test of their telephone service in their Des Moines office and have been pleased with the quality and reliability. Mediacom has not chosen where the service will be rolled out, but it will likely be in the third quarter of 2004. The cost will be about $40 per month and will include all long distance charges. The average phone bill in the United States is about $63. Mediacom will soon offer an upgraded digital converter box that will include a digital video recorder, which is similar to the TiVo service. In March more high definition television services will be offered including HDNet, Bravo, ESPN, Discovery, and ifa deal can be negotiated, the broadcast channels. CABLE TV DROP AUDIT Shaffer said that the letter to Mediacom regarding the drop audit is finished and clarifies that the terms of the franchise regarding conducting an drop audit have been met. Smith note that the letter leaves open the option of a full technical audit in the franchise renewal process. Smith moved and Thrower seconded a motion to approve the approach outlined in the letter and to send the letter to Mediacom. The motion passed unanimously. FRANCHISE RENEWAL UPDATE Shaffer reported that the City requested that Rice, Williams send them their standard contract for review. Helling, Shaffer, and Matthews have reviewed the contract and made some changes. Matthews still has a few changes to make, and when he is done the contract will be returned to Rice, Williams. GAZETTE EDITORIAL Shaffer said he wanted to make sure the Commission realized that the Cedar Rapids Gazette ran an editorial regarding rate increases, but unfortunately overstated the size of the increases and failed to note the basic tier rate decrease achieved by the City. Smith said the section noting the failure of the emergence of competition in the industry is accurate and urged the Commission not to respond to the editorial. INFOVISION DEMONSTRATION/FOCUS GROUPS Shaffer said Kevin Crawley has prepared a model to demonstrate the video on demand system that will soon appear on InfoVision Charmel 5 and the re-design of InfoVision. The Commission viewed the demonstration. ADJOURNMENT Smith moved and Castillo seconded a motion to adjourn. The motion passed unanimously. Adjournment was at 7:02 p.m. Respectfully submitted, Drew Shaffer Cable TV Administrator