HomeMy WebLinkAbout2002-04-02 CorrespondenceMarian Karr
From: Becky Soglin [bsoglin@earthlink. net]
Sent: Sunday, March 24, 2002 4:14 PM
To: cou ncil@iowa-city.org
Subject: Isolated Wetlands & SAO
Dear Members of the Council,
On behalf of Environmental Advocates and Iowa Wetlands in Need, I am
writing to ask about the status of the proposed revisions regarding
isolated wetlands protection in the city's Sensitive Areas Ordinance
(SAO) .
We appreciated that last fall the council supported making these
revisions to the SAO, but it is my understanding that the revisions
have not formally been made nor submitted to the appropriate
committee (Planning and Zoning) for a vote and subsequent
action/approvals by the council.
I ask you to e~sure that steps soon are taken to make the revisions
official. With another construction season underway, it is especially
important that the protections be in place as soon as possible. If
the organizations I represent can be helpful in any way with the
finalization process, please let me know.
Thank you for your consideration and, again, for your past support on
this issue.
Sincerely,
Becky
Becky Soglin
Vice-chair, Environmental Advocates
Co-founder, Iowa Wetlands in Need
351-6410
Iowa City
Marian Karr
From: Patric[a Ephgrave [pnephgrave@mchsi.com]
Sent: Monday, Mamh 25, 2002 2:40 PM
To: council@iowa-city.org
Subject: Budget choices
Dear Members of the Council,
The picture of a helicopter lowering a bridge for use on the trails of
Hickory Park produces mixed feelings. Having needed handicapped
assistance during a few periods in my life, I can identify with the
need. However that is not the only need or choice of the citizens of
Iowa City. The choice does not have to be between handicap access NOW
vs. a park FOREVER without its highest ridge, but between handicap
access in a year or two vs. a park with its sensitive slopes protected
and intact.
When the problem is defined as choosing human beings first, we miss the
point that the park is for humans--the citizens of Iowa City. Do we
really serve the handicapped best by providing trails for them
immediately as opposed to having a larger park with its high ridge
saved for generations, and trails added in a year or two?
People sometimes make choices on their immediate concepts, not on their
long-term needs. I believe you city fathers may be making an erroneous
short term decision, based on changing data, just as you did with the
kiosks on the Ped Mall. (Who knew cell phones would be so popular as
the make that feature obsolete?) Likewise, as the Press-Citizen hid its
intentions, city fathers may not have known the property near the park
was for sale. But for a few months we have known. While you cannot
correct the mistake on the kiosks, you can delay implementation of the
trail contracts. The money saved would help save the ridge for the
future of Iowa City.
I respectfully request that you rethink the long-term priorities of
all, handicapped and able-bodied, the citizens of Iowa City.
Very sincerely yours,
Patricia N. Ephgrave
Marian Karr
From: Andy Douglas [andrew-douglas(~uiowa.edu]
Sent: Tuesday, January 26, 1904 1:36 AM
To: council@iowa-city.org
Subject: municipal electric utility
Dear City Councilors,
I am very much in favor of the city doing a feasibility study on the
possibility of setting up a municipal power authority. I believe such a
study would allow us to make a well-informed decision about this crucial
matter. It is my opinion that a municipal utility would be beneficial to the
citizens of Iowa City in several ways; not the least of these would be lower
power rates, and control over the environmental impact of our energy
production. Please vote to con~aission a study on this issue, and at the same
time, please do not sign a 15-year franchise agreement with Mid~erican. A
shorter agreement would give the city time to consider its options. Thanks
very much.
Yours,
Andy Douglas
Iowa City resident
Marian Karr
From: Ellen Heywood [ellen-heywood(~uiowa.edu]
Sent: Monday, March 25, 2002 11:58 AM
To: council@iowa-city.org
Subject: Electric Sevice Franchise
I ask the Council to vote to forego signing a franchise agreement with
MidAmerican at thi~ time. We need the time ourselves to determine the
feasibility of making electrical service a municipal utility. Instead,
please establish a feasibility committee comprised of residents, business
representations and Iowa City planning staff merabers.
This is a big issue that impacts every single resident of Iowa City. Let's
take the time to make a good decision,
Ellen Heywood
1178 E. Court St.
Iowa City, IA 52240
Marian Karr
From: Jean Martin [Jean-Martin(~uiowa.edu]
Sent: Monday, March 25, 2002 11:23 AM
To: council@iowa-city.org
Subject: hi
To Iowa City Council members:
I urge you to consider a feasibility study to explore establishing a municipal
electric utility. There are advantages to public power for our community.
Jean Martin
2254 S. Riverside Dr.
Iowa City, IA
Iowa City, Iowa 52240-5960
?larch 22, 2002
Ernest Lehman
Plavor of Iowa City
z~1~ East Washington Street
Iowa City,
Iowa
Dear Mayor Lehman:
Now that the contract Iowa City has with ~idAmerican Energy
is in its expiration period, I hear and read of various ideas
to supply power for Iowa City and for J.ohnson Count~ as well.
The group which is promoting this has inspired various editorials
and newsitems, and as I have read them, it sounds like it might
be a good idea to look at those ideas as a city and county.
~,~ab I've heard to this date is that it is possible £or us to do
this, because other Iowa cities our size and less have switched
to municipal power production, and the rates seem to be lower
than what we would pay to a large corporation like Hid~erican;
indeed, we just got notice of an increase in rates.
I recognize that this idea ma~ not be good £or Iowa City, but in
light of the fact that others are doin~ it and saving mone~ for
the citizen and business consumers means we could look at it
with some kind of study to see whether or not it would work for
us here.
Such a stud~ would undoubtedly cost us money - but I would think
that if we made a new contract with ~id~'~erican for ma~e five
or six ~rears, in that time we could determine its possibilities,
or lack thereof, and Ro from there in whichever wa~ looked the
most helpful for us as a municipality and community°
~erhaps mone~ for a feasibility ~urvey seems like a lot, but in
the lon~ run, if it showed ~ood future savinEs for us all, it
would be like a really profitable thine for each citizen and
business. I would be happy if we could do the study~ and know
for sure which way to ~o.
Thank you for ~our service to our community,
Carl end-Bee
q?2q Grantwood Drive
March 22, 2002
,
Iowa City Council
Civic Center
410 E. Washington st.
Iowa City, IA 52240
Dear Council members:
I urge you to sign the franchise agreement with Midamerican for only 4 years, and not the
longer period for which they are asking.
In these times of rising energy costs, it seems prudent for the City of Iowa City to
investigate public ownership of this utility.
I hope you will give serious consideration to this request.
Sincerely,
Jeanette Carter
424 Oakland avenue
Iowa City, IA 52240
Marian Karr
From: dmueller@niuhep.physics.niu.edu
Sent: Wednesday, March 27, 2002 11:39 AM
To: COU NCl L@IOWA-CITY.ORG
Cc: dmueller@niuhep.physics.n[u.edu
Subject: Public Power Initiative -- Municipal Electric Utility
Dear Honorable Council Members:
I am very interested in the possibility of the development of
a municipal electric utility for Iowa City.
The citizens of our community depend so heavily upon energy resources
for our residential, commercial and industrial needs. Keeping energy
costs low is vital to keeping our economy healthy. It is critically
important for our citizens, our city staff members and our city council
to take every measure to insure that each and all of us our receiving
the best value for our dollar in terms of energy expenditures.
It is my desire that our city citizens, staff and councilors move
forward towards conducting a fully-funded and thorough feasibility
study to determine if we can economically benefit from the establishment
of a municipal electric utility for Iowa City.
I believe that each dollar this city spends on a good study will more
than repay itself back in energy costs savings and knowledge gained
in the long run. I want us to do it right, and I want us to do it soon.
Therefore, I am requesting that each one of you vote for a fully-
funded feasibility study of $75,000 and an electric franchise renewal
term with MidAmerican Energy of no more than four years.
Let's do this now, before our electric rates go up again. We citizens
have already received a notice that MidAmerican is applying for a
gas rate increase. Please act now and support the Public Power Initiative
for Iowa City.
With great respect,
Dawn M. Mueller
Dawn M. Mueller
P.O. Box 1654
District B
1220 Village Rd.
Iowa City, IA 52244
(319)338-9696
dmueller@physics.niu.edu
March 27, 2002
~/~R
Iowa City City Council ~ '
410 East Washington St.
Iowa City, IA 52240
Dear Council:
There are literally hundreds of reasons to appropriate the money for a thorough and fair
municipal utility feasibility study. Here are just a few more:
· Businesses will be attracted and retained by lower utility rates.
· Businesses will love the idea of being able to have input as to their rates.
· Businesses will read about this study and view Iowa City as a municipality that is
open to change & development.
· The city could designate a portion of the additional income that promises to be
generated to economic development.
· Experiences in other locations indicate that municipal savings alone should make
up for any lost tax revenue. Add any income from the sale of excess power that is
generated, and you are greatly improving the financial position of the city.
· Taxpayers who save on utility bills will have more money to spend on taxable
items,
I could go on. You have heard these arguments and many others. Please fund a thorough
feasibility study as soon as possible. It is an opportunity to invest in economic development that
you do not want to miss.
Sincerely,
Rod Sullivan
2326 East Court Street
Iowa City, Iowa 52245
Marian Karr
From: Carol Spaziani [cspaz@inav.net]
Sent: Wednesday, March 27, 2002 2:37 AM
To: council~iowa-city.org
Subject: Fw: Joint Feasibility Study
Joint Feasibility Iowa City QandA.doc
P~po~l.doc. To: Members of the Iowa City City Council
From: Carol Spaziani, Co-Chair, Public Power Initiative for Iowa City
Subject: Updated information on public power from Bob Haug, Director, Iowa
Association of Municipal Utilities
We thought you would like to have this updated version of the materials some
of you received on March 14 from Bob Haug when he was in town to speak to
the Homebuilders Association. This also contains a more fully developed
proposal for a joint feasibility study with other interested cities in Iowa.
I will also try to send you copies at your individual Email addresses so
that it will be available to you earlier than in the regular Council packet.
Bob has already sent it to Steve Atkins, as you can see below. This is for
the official public record.
Carol Spaziani
806 Westside Dr.
Iowa City, IA 52246
338-6140
cspaz@inav.net
..... Original Message .....
From: Haug, Bob <bob.haug@iamu.org>
To: Stephen Atkins (E-mail) <steve-atkins@iowa-city.org>
Cc: Jim Larew (E-mail) <Larewlaw@aol.com>; Carol Spaziani (E-mail)
<cspaz@inav.net>; Joe Bolkcom (E-mail) <jbolkco@legis.state.ia.us>
Sent: Monday, March 25, 2002 2:04 PM
Subject: Joint Feasibility Study
Steve,
Attached is a proposal for a joint feasibility study on establishment of a
municipal electric utility. I have not proposed a schedule for joint
action, as I want to allow enough time for thoughtful consideration by some
of the 10 or so communities that have expressed interest in
municipalization. I will be meeting with representatives from Waukee and
Perry on the 16th to discuss a joint study. I am also sending the proposal
to West Des Moines, Fairfield, Vedic City, Shell Rock, and Dunlap. A brief
notice of the proposal for a joint study will appear in the next issue of
the IAMU Newsletter. That will go out to all 550 member cities and, should
generate additional interest.
I am also attaching a question and answer document that you have received
earlier in hard copy. The revised version of the Q&A piece includes a table
of contents that might make it more useful as a reference document for
council members. I have also corrected some typographical errors,
supplemented information about the feasibility study, and edited
attachments.
Let me know if there is anything else I can do to answer questions or
concerns of council members or staff.
<<Joint Feasibility Proposal.doc>> <<Iowa City QandA.doc>>
Bob Haug, Executive Director
Iowa Association of Municipal Utilities
1735 NE 70th Avenue
Ankeny, Iowa 50021-9353
515-289-1999 or 800-810-iamu (-4268)
Cellular: 515~971-8480
Fax: 515-289-2499 email: bhaug@iamu.org
*** eSafe scanned this email for malicious content ***
*** IMPORTANT: Do not open attachments from unrecognized senders ***
IOWA
ASSOCIATION OF MUNICIPAL
UTILITIES
Forming a New Municipal Electric Utility
A Proposal for a Joint Feasibility Study
Several Iowa communities have contacted IAMU to find out more about what options
they have as their current electric or gas franchise agreements expire. Among the options
they want to consider is the possibility of forming a new municipal utility. The process
of"municipalization" typically starts with what is referred to as a feasibility study. The
preliminary feasibility study for a municipal electric utility attempts to determine the net
savings to the city and its citizens from the formation of a municipal electric utility. The
general approach is to estimate costs/rates under continued operation by the incumbent
utility and subtract the estimated costs/rates expected under operation by a municipal
utility to calculate the benefits.t
Estimates from consulting firms who do this kind of work range from $20 to $30
thousand on the low end to $50 to $75 thousand on the high end, depending on the scope
of the study and the size of the utility. For example, a feasibility study for the City of
Emmetsburg was completed in March 2002 at a cost of $20,000. This proposal is for a
group of cities to share the cost of a joint feasibility study. By doing so, we believe each
city can get a quality study on which they can rely at a substantial savings.
A joint feasibility study makes sense for a number of reasons. Deborah Penn of the
American Public Power Association provides information to cities interested in
municipalization. She made the following observation about a recent joint study: "Last
year two towns in Florida, Dunedin (pop. 34,000) and Bellair (pop. C 4, 000), had a joint
study done by Strategic Energy Ltd of Pennsylvania for about $50,000. The study
reviews the cities' options, costs to acquire and maintain. It estimates savings. It is a
thorough job and the cities were pleased with it as a first step."
Recent studies conducted by IAMU on behalf of 126 Iowa and Minnesota municipal
electric utilities have put the Association in an excellent position to facilitate a joint
feasibility study. The studies include: (1) a forward pricing analysis (completed at the
end of December 2001) of the wholesale power market, with sensitivity to gas and coal
prices; (2) an in depth study of both jointly developed municipal generating facilities and
The analysis includes projection of the cost of acquiring the incumbent utility's distribution system and
segregating it from the remaining facilities the incumbent utility would operate in the area~ It includes an
analysis of expected power supply costs for the new utility and considers any relevant stranded cost issues.
It also projects ongoing costs of operating the utility.
1735 NE 70TM AVENUE
ANKENY, IOWA 50021 50021-9353
Phone: 515/589-1999 Fax: 515-289-2499 Web: wwvv.iamu.org
joint ownership in power plants being developed by other utilities and independent power
producers; (3) analysis of renewable energy sources as part of a power supply portfolio;
and (4) study and recommendations regarding investments in energy efficiency as a way
to defer or displace investment in generation.' Taken together, these studies provide much
of the information that would be critical to a quality feasibility study and would be made
available as a way of avoiding the duplicative effort and cost by the selected consultant.
The process for selecting a consultant and overseeing a preliminary feasibility study
would be negotiated among the participating cities, but would likely follow these general
steps/tasks:
1. Each interested city would appoint a council member or staffperson to serve on a
steering committee.
2. The joint committee would develop a consensus request for proposals (RFP) from
examples provided by IAMU and the American Public Power Association.
3. The RFP would be distributed to a list of potential bidders approved by the
committee. The list would be developed from among national and regional
service providers with experience in such work.
4. A division among participating cities would be made if there were significant
differences of opinion regarding the scope of service. Separate RFP processes
could be carried out to accommodate these differences.
5. The committee would also agree on a method of allocating costs. IAMU
facilitates joint financing among various sub-sets of IAMU members for such
purposes of joint training, legal activities, purchases, and others. Typically, part
of the cost is allocated equally among participants; the balance is divided on some
other basis, such as local cost component, population, or economic impact.
6. The committee would review the proposals and select a consultant. With the
selection process was complete, each city would know the scope of the study, the
qualifications of the consultant, the timetable for completion, and the cost.
Commitment to participate could be obtained before distribution of the RFP by
setting acceptable cost ranges. Alternatively, each city's commitment to
participate could be made after responses were in hand. This later option would
require an iterative process, since each city's cost would depend on the number of
participants. The study would be conducted upon final approval of each city's
participation in the joint study.
For communities that desire to move forward with municipalization on the basis of the
preliminary feasibility, there would be still other economies from shared legal expenses,
expert witnesses, joint acquisition of power supply contracts or resources, personnel
recruitment, joint purchase of inventory equipment, and in many other areas. By working
together, communities could also take advantage of the recently formed Iowa Public
Power Agency, an intergovernmental entity with authority to issue revenue bonds on
behalf of groups of cities jointly financing electric facilities.
Contact IAMU Executive Director Bob Haug for more information at
800/810-4268 or by email at bhaug~iamu.org.
IOWA
ASSOCIATION OF MUNICIPAL
UTILITIES
Public Power - An Option for Iowa City
Bob Haug, Executive Director - March 2002
Iowa City's electric service franchise with MidAmerican Energy expired on November
15. It is appropriate that the community is considering whether the franchise should be
renewed and, if so, for how long. It is also appropriate for the community and its elected
and appointed officials to look at all the options, including the option of forming a public
power system. The following are some questions that have been raised in recent
discussions of the franchise and the public power option, along with a response from the
Iowa Association of Municipal Utilities.
Table of Contents
1. What is a franchise? ..................................................................................... 2
2. What options does the city have with regard to the franchise? ................ 2-3
3. Why consider forming a municipal utility? ................................................. 3
4. Why municipal.., if deregulation? ........................................................ 3-4
5. What steps are involved in establishing a municipal utility? ................... 4-5
6. Are other cities establishing municipal utilities? ......................................... 6
7. Why haven't there been more new municipal electric utilities? .................. 6
8. What would a feasibility study cost? ....................................................... 6-8
9. Would municipal electric harm city bond rating? ........................................ 8
10. Who would set rates? ................................................................................... 9
11. Would large power users be disadvantaged? ............................................... 9
12. How much would existing distribution system cost? ............................9-10
13. Does municipal have to produce its own energy? ..................................... l 0
14. What would be the boundaries for the utility? ........................................... 10
15. How can a municipal utility restore service after a major outage? ............10
16. Would there be a loss in property tax revenues? ................................. 10-11
17. How do municipal utilities get qualified personnel? ................................. 11
18. What is meant by the muni lite option? ..................................................... 11
19. Why consider muni lite? ................................................................ : ........... 12
20. What about municipal gas? ........................................................................ 12
21. How many municipal utilities does Iowa have? ........................................ 12
22. What is the Iowa Association of Municipal Utilities ................................. 12
Attachment 1 - Public Power Facts ........................................................... 13-16
Attachment 2 - Rate Comparisons ............................................................ 17- l 8
Attachment 3 Payments in Lieu of Taxes ............................................... 19-21
Attachment 4 - Municipal Utility Governing Bodies ...................................... 22
Attachment 5 - A Thumbnail History of the Electricity Industry ...................23
1. What is a franchise?
A franchise grants to a utility the right to use the public streets and alleyways
and indirectly confers the right of eminent domain for acquisition of private
property for utility facilities and a6cess. Since passage of an exclusive
territory law in Iowa, a utility is obligated to provide electric service within its
assigned service area, whether or not a franchise agreement is in place.
For the utility, a franchise provides some liability protection for claims arising
from facilities installed in public rights of way, though the obligation to serve
may offer similar protection. The franchise also ensures utility access to its
facilities on public rights of way. Perhaps the most valuable aspect ora
franchise to the utility is that it creates a presumption of continued service and
limits the risk that the franchise holder may be challenged by formation of a
municipal utility. A city cannot use its fight of condemnation to acquire the
utility's facilities while a franchise is in effect. Unless the franchised utility
agreed to a transfer of property, the city therefore could not be assured of
acquiring the incumbent's local distribution facilities, even if the Iowa
Utilities Board certified the municipal utility and set a price for acquisition.
For the city, a franchise holds little value. In many other states, a franchise
agreement sets out obligations of the utility for payment of franchise fees or
for specific operating requirements. In Iowa, state regulators have required
that franchise fees be collected exclusively from consumers in the affected
city, rather than from utility shareholders or other ratepayers. Consequently,
franchise fees are rarely a part of franchise agreements in Iowa cities. No fees
are paid to Iowa City under the expired franchise agreement with
MidAmefican Energy.
[2 The franchise is not a tool for setting rates or regulating service. That is a
responsibility of the Iowa Utilities Board. It is not a competitive bidding
process among alternate providers. It is not even an agreement that
necessarily affects all residents, since some parts of the city could be in
another utility's service area.
t2 A municipal utility does not need a franchise; it has all the inherent authority
granted in a franchise to any other utility.
2. What options does Iowa City have with regard to the franchise?
a. The city could renew the agreement for another extended period, e.g., 15
to 20 years, with or without provisions for periodic reopening of the
agreement.
b. The city could renew the agreement for a specific period of time or extend
the current agreement. This would seem to be the best alternative in the
current circumstances, since MidAmerican has entered into an agreement
with the state that freezes revenue through 2005. Passage of Senate File
57, in the 2001 session of the Iowa General Assembly, gives the city the
ability to waive the election requirement for franchise renewal. The
authority to waive the election (subject to reverse referendum should
2
citizens petition for an election) provides flexibility to extend existing
franchises that cities did not have when the election was necessary for
renewal.
c. The city could go on without a' franchise (at least for a while - maybe up
to several years). Under the exclusive service territory law, nothing would
really change.
d. With either option b or c, the city could conduct a public power feasibility
study and could proceed to an election to establish a municipal utility.
3. Why consider forming a mtmicipal utility?
n A municipal utility provides local control over rates, policies, and generation
resources.
It provides local jobs and the service reliability that comes with local service
personnel.
ca Municipal utilities operate on a not-for-profit basis, which generally means
lower rates for consumers. The average rate for residential customers of
MidAmerican Energy for 1999, based on data reported to the Department of
Energy as revenue per kWh, is 9 cents per kilowatt-hour. The average for all
Iowa municipal utilities is just under 6.4 cents/kWh. That means
MidAmerican Rates are over 40% higher than the average rates of municipal
utilities. A new municipal utility would not likely achieve that rate spread in
the short run, but in the long nm, Iowa City should be able to achieve the
same rate advantages that public power systems have enjoyed for 120 years.
ca Municipal utilities have been a part of the electricity industry since 1882. The
credible threat of new municipal utilities is important to all Iowans. Consider
this:... The threat of displacement by public enterprise has greatly improved
the performance of industry. The competition of public with private power
has probably been a much more powerful influence than regulation in this
respect... - Alfred Kahn (The Economics of Regulation).
4. Why establish a municipal utility if the industry is moving toward competition?
Won't competition bring us low rates and good service?
ca There is nothing wrong with competitive markets or profit. But electricity is
an essential service - one that has characteristics of natural monopoly,
including substantial barriers to entry and low elasticity of demand. Because
of those characteristics, electricity has been a regulated servic~ for most of its
history. Increasingly, however, the industry is becoming deregulated.
Evidence from California and elsewhere indicate that competition in
electricity does not serve to lower costs or improve service to consumers, that
the monopoly characteristics of the industry allow key players to exercise
market power, i.e., to collect monopoly rents for a sustained period of time.
Given the state of the industry and the direction it is moving, it is perfectly
reasonable for consumers in Iowa City to ask whether their individual and
community interests are better served by a community-owned, locally
controlled municipal utility or by continuing service from a company whose
ultimate purpose is to maximize profits for Berkshire - Hathaway, its owner.
5. What steps are involved in establishing a municipal utility?
a. The first step in forming a municipal utility usually is to validate the
concept - to see if it is economically viable and that it has community
support. Viability can be tested through a preliminary feasibility study.
The study looks at both capital and operating costs for a new utility,
including alternatives for power supply. The study identifies fatal flaws,
estimates a range of expected savings, identifies risks and benefits, and
recommends next steps. A qualified engineering firm typically conducts a
preliminary assessment. IAMU can provide a list of qualified firms.
IAMU is also prepared to organize a joint feasibility study among two or
more cities considering this option. [The incumbent utility may offer to
do a study of alternatives, including municipalization. A study by the
incumbent utility should not be relied on in assessing municipalization or
other alternatives.]
b. Assuming the study is positive, an election should be set to authorize
establishment ora municipal utility. If there is a preference to establish an
independent board of trustees to govern the utility, the ballot issue is
"double-barreled," asking first, "should the city be authorized to establish
a municipal utility" and second, "should the utility be governed by a board
of trustees." A community group should be organized to promote the
ballot issue. The city is not allowed to spend money to influence the result
of the election. The city can present findings and facts, but it cannot
recommend that voters vote for or against a ballot issue.
Alternative election options. The election may be scheduled before the
preliminary assessment. Cities that choose this option do so to test public
opinion before time and money are expended in studying the municipal
utility option. The vote does not obligate the city to move forward.
Another option is to schedule the election after completion of the full
study. A city exercising this option would likely have a preliminary
feasibility study with very encouraging prospects for savings or some
other compelling reason to provide the public more detailed analysis
before calling for a vote. Generally, it seems to make sense to defer costs
associated with a detailed business plan for financing, debt service,
staffing, and operation, until after citizens have voted. However, the
timing of the election is up to the City Council and, as noted, the election
does not create a binding obligation to proceed.
c. If not included in the preliminary feasibility study, a further study should
be made to determine the value of the distribution system. As with other
types of appraisal, multiple valuation methodologies may be employed,
including original cost less depreciation, replacement cost less
depreciation, and market value (sales of similar facilities between willing
4
buyers and sellers). The Iowa Utilities Board (1UB) ultimately determines
the price for facilities presently serving the customers. In setting the price,
the Board must consider - but not necessarily include in the price
determination - "... the cost of the facilities being acquired, any
necessary generating capacity and transmission capacity dedicated to the
customer, depreciation, loss of revenue and the cost of facilities necessary
to reintegrate the system of the utility after detaching the portion sold."
d. Also, to the extent not included in preliminary work, the feasibility study
should assess all costs of system acquisition, operation, and reintegration
as well as revenues. Sensitivity analysis should address likely scenarios
related to restructuring of the industry. Power supply options should be
firmed up.
e. In moving forward beyond the study and election, the City should develop
a negotiating strategy and make a formal inquiry of the incumbent utility
whether it would agree to negotiate a purchase price for its facilities. The
utility's stated position on selling the system should not be presumed to be
the same after a successful election as it was before. The IUB would
likely ratify a reasonable agreement. Also, restructuring of the electricity
industry may change the view of the incumbent regarding a sale of the
distribution system.
f. Regardless of the incumbent utility's response to a buyout offer by the
city, the next step is to petition the IUB. The 1UB must determine whether
establishment of the municipal utility is in the public interest. The city
would present expert testimony in the proceeding to support its position on
all issues considered by the IUB. 1UB approval results in modification of
the service territory map by designating a service area for the city. The
IUB also determines the price io be paid for the incumbent's facilities and
for reintegrating the remaining system.
g. Final steps to bring the utility into operation include completion of power
supply arrangements, plaiming for severance of the system from the
incumbent's system, development of an organizational plan, and planning
for utility facilities, recruitment of management and staff, planning for
materials, equipment, inventory, and supplies and commencement of
operations.
h. Public information is an important step throughout the prgcess. This
includes disseminating information and bringing public recommendations
into the planning process.
6. Are other cities establishing municipal utilities?
Nationally. The American Public Power Association represents over 2,000
publicly owned electric utilities in the United States and its territories.
Information about efforts to establish new municipal utilities can be found on
the public side of their web site. Recent actions include the narrow defeat of a
municipalization proposal in San Francisco and the startup of a new municipal
system in Hermiston, Oregon (pop. 13,000). Recent news articles on actions
in these two cities are attached. The web site also has information about
actions by several Florida cities, including the refusal of the Winter Park City
Commission to renew a franchise .with Florida Power. For additional
information visit the Al?PA web sites at www. APPAnet.org.
n Iowa. Current municipalization activity in Iowa includes Emmetsburg, where
a feasibility study has just been completed. Everly, in northwest Iowa, has
also begun a feasibility study. Several other cities that have informed IAMU
of their interest in looking at the municipal utility option.
7. If municipal utilities are such a good idea, why haven't there been more new
municipal electric utilities formed in recent years?
o The last municipal electric utility formed in Iowa was at Aurelia, in 1976.
Since then, the last serious attempt to establish a municipal electric utility was
that of Sheldon, Iowa. The Sheldon case effectively blocked further
municipalization efforts, due to the unchallenged ruling of the Iowa Utilities
Board. The Board accepted a high valuation figure for the distribution
facilities in Sheldon. It also found Sheldon responsible for compensating
Iowa Public Service for generating facilities the company built to serve the
community. Denying Sheldon a right to purchase the output from the IPS
facilities compounded the Board's damaging ruling on stranded costs. The
ruling placed the municipalization outside the range of feasibility.
MidAmerican Energy and other utilities in the region are planning new power
plants at this time, so it is hard to envision a case for stranded generation
costs. Arguably, if the IUB's previous ruling were to be followed, a new
municipal utility should be entitled to payments for "stranded benefits,"
because generation no longer needed for customers of the new municipal
utility would be available for remaining customers. That would defer the need
for more costly new generation.
c~ As noted above (see #6), new municipal utilities have been formed in other
states, more are being formed now, especially in the aftermath of the
California market failure. Califomia municipal utilities, such as those in Los
Angeles, Sacramento, Anaheim, Burbank, Palo Alto, Pasadena, and others,
escaped much of the damage associated with that failed market.
8. What might Iowa City pay for a study of the feasibility of a new municipal
electric utility?
~ It is difficult to predict the cost with certainty, but estimates from consulting
firms who do this kind of work range from $20 to $30 thousand on the low
end to $50 to $75 thousand on the high end. These costs do not include the
legal costs, such as the proceeding before the Iowa Utilities Board to establish
a municipal utility. Those costs should go down following a first case, in
which the IUB decision would likely narrow the issues for those cities that
followed. The strategy of the incumbent utility and their use of the legal
process to raise costs as a deterrent to further municipalization is a major
determinant of the city's costs.
The City of Emmetsburg has reported that their feasibility study has been
completed and that it supports hr/her investigation of forming a municipal
electric utility. The Emmetsburg study included a valuation of the distribution
facilities. Personnel from a neighboring municipal utility conducted an
inventory of facilities. The city's consultant valued the inventory. A
substantial part of the feasibility study is a review of long-term power supply
options. They have at least one firm offer that could be exercised if the city is
successful in establishing the municipal utility.
The Emmetsburg study had a not-to-exceed cap of $20,000. Asked to
estimate the need and cost for additional studies, City Administrator Jolu~ Bird
said he did not anticipate the need for an additional feasibility study per se,
but that there would be substantial costs associated with development of "a
business plan for financing, debt service, staffing, etc." He had no estimate
for the cost of legal proceedings before the 1UI3.
In response to the question of study costs, Deborah Penn of the American
Public Power Association noted that "Last year two towns in Florida,
Dunedin (pop, 34, 000) and Bellair (pop. C 4, 000), had a joint study done by
Strategic Energy Ltd of Pennsylvania for about $50,000. The study reviews
the cities' options, costs to acquire and maintain. It estimates savings. It is a
thorough job and the cities were pleased with it as a first step."
Recent studies conducted by IAMU on behalf of 126 Iowa and Minnesota
municipal electric utilities have put the Association in an excellent position to
facilitate a joint feasibility study. The studies include: (1) a forward pricing
analysis (completed at the end of December 2001) of the wholesale power
market, with sensitivity to gas and coal prices; (2) an in depth study of both
jointly developed municipal generating facilities and joint ownership in power
plants being developed by other utilities and independent power producers; (3)
analysis of renewable energy sources as part of a power supply portfolio; and
(4) study and recommendations regarding investments in energy efficiency as
a way to defer or displace investment in generation. Taken together, these
studies provide much of the information that would be critical to a quality
feasibility study. In addition, further economies would accrue to spreading
costs among several communities. As noted in the bullet point above, joint
action in preparation of a feasibility study is not new and has'proven
successful.
If a group of cities was interested in a joint feasibility study, the process might
include appointment by each city of a council member or staff person to serve
on a steering committee. The joint committee would review and refine an
RFP, based on existing models. It would also review and approve a list of
potential bidders from among national and regional service providers with
experience in such work. The committee would also agree on a method of
7
allocating costs.~ Finally, the committee would review proposals and select a
consultant. When the selection process was complete, each city would know
the scope of the study, the qualifications of the consultant, the timetable for
completion, and the cost. Commitment to participate could be obtained before
distribution of the RFP by setting acceptable cost ranges. Alternatively, each
city's commitment to participate could be made after responses were in hand.
This later option would require an iterative process, since each city's cost
would depend on the number of participants. The study would be conducted
upon final approval of each city's participation in the joint study.
For communities that desired to move forward toward municipalization, there
would be still other economies from shared legal expenses, expert witnesses,
joint acquisition of power supply contracts or resources, personnel
recruitment, joint purchase of inventory equipment, and in many other areas.
By working together, communities could also take advantage of the recently
formed Iowa Public Power Agency, an intergovernmental entity with
authority to issue revenue bonds on behalf of groups of cities jointly financing
electric facilities.
9. Would debt for existing distribution system harm the City's bond rating?
t2 There should be no negative effect on the city's bond rating or bonding capacity. Bonds issued for acquisition of MidAmerican's distribution
facilities would be backed by future utility revenues. Revenue bonds, unlike
general obligation bonds, are not backed by property taxes or the city's ability
to impose property taxes.
~ The Tax Act of 1986 restricted the use of tax-exempt bonds to acquire what
are called "output facilities" of investor-owned utilities. IAMU assumes that
acquisition of MidAmerican facilities by Iowa City would be accomplished
through use of taxable municipal revenue bonds or as part of a tax-exempt
issuance where the output facilities constituted a small part of the total
issuance and met the requirements of IRS private use rules. Taxable bonds
can be issued jointly and could be presented as a separate series within a
broader issuance that also included tax-exempt bonds.
10. Who would set the rates charged by a municipal electric utility?
[2 The City Council (or Board of Trustees for that form of utility governance)
sets municipal utility rates.
11. Would industrial users face rates that would be disadvantageous?
Large power users are usually integral to the community's economic vitality.
Their needs would undoubtedly be heard in the local ratemaking process.
t IAMU manages joint financing of its own operation and many other activities that take place among sub-
sets of IAMU members, including joint training, legal activities, purchases, and others. Typically, a portion
of the costs are divided evenly among participants and the balance divided on some other basis, such as
population, use or sales, or econormc impact.
8
a In the context of establishing a municipal utility, a city could offer incentives
to large power users that could promote expansion of existing business or
attract new businesses, while protecting residential and commercial
consumers. The concept would be to offer large power users a buy-through
for wholesale contracts. Some large power users advocate restructuring of the
electricity industry in order to directly access the growingly competitive
wholesale market. Under current Iowa law, they cannot do so. A municipal
utility could allow a large power user or potential new industry the
opportunity to go to the market to find the best deal they can. The utility
would then enter an agreement with the customer in which the utility would
accept the contract on the customer's behalf. Obviously, the agreement
between the customer and the utility would have to hold the city harmless, but
a model for such an agreement exists [Tacoma, WA]. The benefit to a new
municipal utility in this situation is that it limits the risk to other citizens that a
large power user would leave town and shift responsibility for debt associated
with power supplies onto the backs of remaining customers. This is generally
not a problem with purchased power contracts, but could represent a risk for
utility-owned generation.
12. How much would it cost to buy the existing distribution system?
n As noted in 5 above, multiple valuation methodologies may be employed in
determining the cost of the incumbent utility's distribution facilities. These
may include original cost less depreciation, replacement cost less
depreciation, and market value (sales of similar facilities between willing
buyers and sellers). The Board must consider - but not necessarily include in
the price determination - "... the cost of the facilities being acquired, any
necessary generating capacity and transmission capacity dedicated to the
customer, depreciation, loss of revenue and the cost offacilities necessary to
reintegrate the system of the utility after detaching the portion sold."
[] To some extent the cost of the facilities is less important than the cost of
capital. MidAmerican Energy and several other utilities have proposed
establishment of a for-profit transmission company, TRANSLink, to operate
within a broader regional transmission organization. Even though investment
in regulated transmission facilities carries with it virtually no risk,
MidAmerican is asking for a return on equity in excess of 13 percent armually.
The FERC is expected to rule in the coming weeks on allowable returns on
equity for Regional Transmission Organizations (RTO) and for-profit
transmission companies operating within RTOs. Early signals indicate that
returns as high as 16 percent (perhaps with further adders) could be found
acceptable. The cost of capital for Iowa City would be the municipal rate for
taxable bonds for the distribution system and the tax-exempt rate for new
facilities. Those rates for capital would be substantially lower than the returns
paid to the incumbent utility.
9
13. Does a mtmicipal electric utility have to produce its own energy?
~ No. A majority of Iowa municipal utilities purchase electricity through long-
term power supply contracts with other utilities. Passage of Iowa House File
577 in the 2001 session of the Gerieral Assembly gives Iowa city many other
options, including joint purchase of generation and transmission facilities with
other cities. A new municipal joint power agency, the Iowa Public Power
Agency, was formed late last year for this purpose. Iowa City could also work
jointly with the University of Iowa. It should also be possible for Iowa City
and the U of I to jointly finance facilities.
14. What would be the boundaries for the utility? What happens as the city grows?
rn The Iowa Utilities Board determines the service territory of the municipal
utility. It may extend beyond the current city limits or it may be less than that.
The IUB attempts to balance the process to limit costs to the city and costs to
remaining customers of the incumbent utility. The future boundaries of the
utility service area would not expand with the city's growth, just as the
franchised service area does not expand under current law. As noted above,
Iowa City could grow into the service area of another utility, whether it
establishes a municipal utility or continues service under franchise.
15. How can a municipal utility restore service in the event of a major outage?
[] The Iowa Association of Municipal Utilities coordinates a mutual aid program
among the state's municipal utilities. The program has been well-tested and
proven effective in tornados, ice storms, and other disasters over more than 30
years. Regional coordinators organize delivery ofpersounel, equipment, and
supplies, generally initiated with a single phone call from the affected utility.
Ice storms in recent years have provided an acid test of the effectiveness of
this program, as damage occurred over a broad area of the state. These
instances required utility crews to travel longer distances than is usual, but the
response was effective enough that municipal crews were also able to provide
assistance to investor-owned utilities and cooperatives. That kind of
cooperation has been common among the different types of utilities.
16. How would the loss of taxes paid by the investor-owned utility to the city be
made up if the city owned its own operation? Does the city-mn company pay an
amount in lieu of taxes?
r~ There would be no decrease in tax revenue to local taxing authorities. In
1999, the Iowa Legislature replaced the method by which utilities were
assessed property taxes. Under the so-called replacement tax, a new
municipal utility would pay the replacement tax rate applicable to the
incumbent utility. A change in the rate for the zone Iowa City is in would
require an act of the legislature.
u Most, but not all Iowa municipal utilities, make payments in lieu of taxes
(PILOTs). PILOTs reach or exceed property tax payments of investor-owned
utilities on the average. PILOTs would likely be lower than average for a new
municipal utility, because rates would already include the replacement of
10
current taxes to local taxing authorities. PILOTs are set by the local
governing body of the municipal utility.
A 1996 survey of Iowa municipal utilities showed the median cash and net-
non-cash transfers of electric funds to other funds of the city was 6 percent of
total electric revenues. [SEE ATTACHMENT 3] This is consistent with a
1999 study of by the American Public Power Association that showed median
transfers of over 500 surveyed public power systems to be 5.8 pement.
17. How do municipal utilities get qualified personnel?
n Municipal utilities compete with investor-owned utilities and cooperatives for
qualified personnel. As with other utilities, municipal systems also provide
training opportunities for apprentice and joumeyman line personnel. IAMU
currently sponsors two apprenticeship programs. Both have been approved by
the Department of Labor. In addition, the association conducts training at
member utility locations and at the IAMU training field in Ankeny. Larger
municipal utilities in Iowa often have their own training programs and staff
that augment IAMU training.
rn Where new municipal utilities have formed in other states, or in the case of
gas and telecommunications utilities formed recently in Iowa, the new utility
typically offers employment to qualified personnel of the incumbent utility at
equivalent or better compensation.
18. What is meant by the muni lite option?
c~ As used in the earlier discussions, municipal lite or muni lite refers to the
concept of establish a municipal electric utility by election, but deferring the
feasibility study and acquisition of the incumbent utility's distribution
facilities (local poles, lines, transformers, lighting, etc.) for a later time.
A municipal utility without local wires, would have the authority to purchase
electricity in the wholesale market for its own utility uses, e.g., water and
wastewater operations. It could also sell its existing generation
(water/wastewater peaking generation) into the wholesale market. (Iowa City
has invested in backup generation for reliable operation of its water/waste
water utilities for emergencies when MidAmerican is unable to deliver
energy.) Whether the new utility actually made wholesale pumhases and sales
or simply used the authority to leverage a better deal from MidAmerican,
there would likely be some savings to city residents through lower utility
operating costs. Savings could be used later to help fund a feasibility study
for acquiring local distribution, to conduct energy efficiency programs or
invest in renewable energy facilities, or simply to reduce water and
wastewater operating costs.
19. Why consider muni lite?
Establishment of a muni lite would position the city to become a load
aggregator in the event the legislature approves retail competition for energy
supply. A number of states have approved retail choice legislation and Iowa
11
eventually may follow suite. To date, residential consumers and small
businesses have not faired well in retail competition. Their hope lies in
aggregating their energy needs to get a reasonable price. The city is uniquely
situated to be the load aggregator £or a community and in our view, could do
the best job of securing energy supplies. Community choice legislation has
been approved in other states, including Ohio. The restructuring legislation
proposed last year in Iowa also contained community choice provisions. The
web site www.community.org contains a wealth of information on why
municipal aggregation is essential in nominally competitive retail electricity
markets.
rn Still another reason to consider muni lite is to acquire and operate distribution
facilities on the chance that MidAmerican decides to sell off those facilities.
MidAmerican Energy is now a privately held company, it's not shareholder
owned. It is reasonable to speculate that the current owners - some of the
richest people in the nation - may not be satisfied with regulated returns on
their distribution assets. With a municipal utility in place, the city would be in
an excellent position to acquire the facilities in the event of a voluntary sale.
20. What about municipal gas?
[] Establishing a municipal natural gas utility is a less complicated process than
establishing a municipal electric utility. The Iowa Utilities Board is not
involved in the same way though it rules on the certification of the new
municipal utility. In the event the sale of distribution pipes is not agreed to,
the district court sets the price.
n Several new municipal gas systems have been established in recent years,
including those in Lake Park (1984), Rock Rapids (1985), Fairbank (1992),
Hartley (1993), Everly (1994), Lake View (2000), and Orange City (2001).
21. How many municipal utilities does Iowa have?
c~ Iowa has 137 municipal electric utilities and 49 municipal gas systems.
IAMU also represents 550 municipal water utilities as well as a growing
number of municipal telecommunications utilities.
[] Municipal electric utilities serve about 382,000 citizens and provide about 13
percent of the electricity delivered in Iowa.
22. What is the Iowa Association of Municipal Utilities?
~ IAMU is a nonprofit membership organization of 550 Iowa cities. We
represent municipal utility interests in the Iowa legislature and before state
and federal regulatory agencies. Our 22 member staffand volunteer
committees also conduct both hands on and classroom training for utility
workers, including OSHA compliance training and support. We also support
energy efficiency programs of our members and conduct research of interest
to our members. Check out our website at www.iamu.org.
12
ATTACHMENT 1
PUBLIC POWER FACTS
For Consideration by Iowa City Residents and their
Elected and Appointed Local Government Officials
Prepared by the Iowa Association of Municipal Utilities - March 2002
The following text is reprinted from the home page of the American Public Power
Association (www. APPAnet, org). Bold text (other than section headings) has been
added to provide additional inforntation about municipal utilities itt Iowa,
Public Power: An Americau Tradition that Works
More than 2,000 communities across thc country have chosen to provide for their own
electricity services, They have created public power systems - not-for-profit electric
utilities that are owned by the communities and governed democratically. Public power
provides for the electric power needs of about 40 million Americans - or almost 15
percent of electricity consumers. Iowa has 137 municipal electric utilities, 49
municipal gas systems, and nearly 40 municipal telecommunications systems.
Every public power system is different due to its community's population, geography and
climate, natural resources, economic and social resources and challenges, and local
government structure and goals. However, all public power systems have in common
their purpose: to provide adequate, reliable, not-for-profit electricity at a reasonable price
with proper protection of the environment.
Public Power is Hometown Power
Public power systems are operated primarily by municipalities, as well as by counties,
public utility districts, or other public bodies. A number of states also operate public
power systems.
Public power systems are rooted in the American tradition of local people providing for
their basic community needs. Public power systems provide a public service - electricity
- at a reasonable price. Most public power systems - especially the smaller ones - are
governed by a city council, while an independently elected or appointed board governs
others. Community ownership and governance provide wide latitude to make local
decisions that best suit local needs and values, as well as changing market conditions. In
Iowa, about half the municipal utilities are directly governed by city councils.
Independent boards of trustees govern the other half. Trustees are appointed by the
mayor and approved by the city council.
Citizens have a direct voice in utility decisions and policies about electric rates and
services, generating fuels, clean air and water, and other issues that affect them through
public meetings, the ballot box, and open policy board meetings.
"Customers First" is Public Powcr's Mission
Public power's first and only purpose is to provide excellent, efficient service to its
citizens. Unlike private power companies, public power utilities do not have to serve
stockholders as well as customers. Public power systems' measure of success is how
13
much money they can keep within their communities through low rates and contributions
to the city budget, not how much can be taken out to send to distant stockholders who are
not part of the community.
Hometown Connections Hold Down Costs '
Electricity prices drive local economies. Lower prices help residential customer better
manage household budgets. They also allow commemial and industrial customers to
grow and thrive, contributing to the overall prosperity of communities and the nation.
Public power has a proven track record of providing customers with lower-cost electric
rates than private power companies on a national average. According to information
reported to the U.S. Department of Energy:
n Private power company residential customers pay average electricity rates that
are about 18 percent more than those paid by public power customers (in
Iowa, MidAmerican Energy residential customers pay over 41 percent
more than the average municipal utility rate);
ca Private power company commercial customers pay average electricity rates
that are about 9 percent more than those paid by public power customers;
[] There are only small differences in average rates paid by industrial customers
of public and private power companies
The rate differential is due primarily to public power's not-for-profit status, and efficient
management and operations.
Public Power Means Partnership
Public power systems work in partnership with their citizens and communities. Through
the public decision-making process, they create policies and services that are responsive
to and can anticipate citizen needs.
Hometown electric utilities are an integral part of their communities, with skilled
managerial and engineering staffs. They are often called upon to find innovative solutions
to community needs, working with other city and community institutions. They have
become leaders in supplying an array of infrastructure services that are related to the
provision of electricity and other essential public needs, such as telecommunications
services.
Public power systems also work in partnership with each other through more than 60
joint action agencies. These organizations are consortia of public power systems that own
or purchase power supplies, or take part in other activities in which they 6an obtain
economies of scale through their partnership. The Iowa Public Power Agency was
formed in December 2001 to jointly finance generation and transmission facilities
for Iowa's 137 municipal electric utilities and their existing joint action agencies.
Public Power Boosts l,ocal Economies
Public power's low electric rates are a magnet for community economic development. So
is its ability as a local government arm to provide streamlined "one-stop shop" customer
services that encourage existing business customers to maintain and expand their
operations, and attract new businesses. Strong, stable employers mean strong, stable jobs
14
for local citizens. Low electric rates also hold down consumer costs, stimulating the local
economy.
While public power utilities are "not-for-profit" organizations, they make major
economic contributions to their communities: Public power systems, on average, return to
state and local governments in-lieu-of tax payments and other contributions that are
equivalent to state and local taxes paid by private power companies.
Municipal Bonds Keep the Lights On
As not-for-profit state and local government entities, public power systems have a right to
issue tax-exempt bonds for various infrastructure needs. These bonds carry a lower
interest rate than taxable bonds, which helps hold down the cost of developing and
maintaining a wide range of essential public services.
Public Power Thrives in the New Marketplace
Public power's hometown advantages - low rates, commitment to local communities,
not-for-profit operations, public accountability, local decision making, and a customer
service ethic - have become readily apparent as the electric utility industry restructures.
Public power has remained true to its fundamental obligation to its citizen-customers -
the obligation to serve.
Restructuring failures in some parts of the country have enhanced the benefits of
hometown power and made it an even more attractive option, both for those consumers it
currently serves as well as for many whose private power companies have not kept
promises made about competition, service, and rates.
Many communities across the country are now exploring the possibility of taking control
of their energy futures by creating municipal utilities.
Public power is an American tradition that works for local communities and consumers
across the country. It will continue to work well throughout this new century.
Public Power Facts
n Public power systems provide electricity to about 40 million consumers - about
one in seven Americans.
There are more than 2,000 public power systems in the U.S. They are in every
state except Hawaii.
[] About two-thirds of public power systems do not generate their own electricity.
Instead, they buy it on the wholesale market for distribution to their customers.
Public power utilities, on average, return to state and local governments in-lieu-
of-tax payments and other contributions that are equivalent to state and local taxes
paid by private power companies.
ca On a national average, private power company residential customers pay about
18% more for electricity than public power customers.
On a national average, private power company commercial customers pay about
9% more for electricity than public power customers, while public and private
power industrial rates are about the same.
15
The first municipal electric utility was established in 1882. By 1885, four of
today's largest public power utilities - in Anaheim, Jacksonville, Tacoma, and
Austin - were up and running. By the end of the year 2005, about 500 public
power systems will have celebrated their centennials.
Public power is a pro-competitive and pro-consumer institution that helps to
protect all consumers - in public and private power communities - from private
company price and efficiency abuses.
n Public power is a big city and a small town phenomenon, although more than
1,200 public power systems serve 3,000 or fewer customers. Some of the larger
cities that operate their own electric utilities are Los Angeles, San Antonio,
Seattle, Phoenix, Austin, Memphis, Orlando, Omaha, Jacksonville, and
Sacramento
c~ Public power systems are 'governed democratically through the local government
structure. Most - especially the smaller ones - are governed by a city council,
while others are governed by an independently elected board.
Other Kinds of Electric Utilities
About 240 privately owned electric companies have franchise agreements to serve 74
percent of all consumers in the United States. The private power companies are generally
large and an ever-increasing number are controlled by holding companies with interests
in more than one state or even by overseas investors. While frequently referred to as
"public" utilities, and often using the word "public" in their corporate names, these
investor-owned companies are not owned by the public. They are owned by stockholders.
MidAmerican Energy is an exception to the rule of stock ownership. A private
investment group, Teton Acquisitions, acquired the company in March 2000. Its
largest owners include Berkshire-Hathaway, Warren Buffet, and Microsoft's Bill
Gates.
About 900 rural electric cooperatives serve the remaining 11 percent of electricity
consumers. They are private, member-owned, and primarily non-for profit.
16
Attachment 2
Utility Rate Comparison by State - 1999
With additional information about Iowa utilities
Cents per kilowatt-hour
Residential Commercial Industrial
State Public Private Co-op Public Private Co-op Public Private Co-op
Alabama 6.2 7.3 7.2 6.2 6.6 7.4 4.6 3.8 4.2
Alaska 11.6 12.0 11.0 8.6 15.4 9.0 10.7 7.5 6.8
Arizona 7.6 9.2 9.7 6.4 8.2 8.8 4.2 5.6 3.8
Arkansas 6.4 7.8 7.2 6.3 5.6 6.6 4.3 4.4 3,.3
California 9.7 11.0 9.2 9.8 10.1 9.5 7.6 7.0 6.1
Colorado 6.4 7.5 7.8 5.4 5.4 6.7 4.2 4.2 4.8
Connecticut 9.3 11.6 8.5 9.7 6.4 7.5
Delaware 9.1 9.3 8.7 9.0 7.2 7.6 5.4 4.6 6.4
Florida 7.6 7.8 7.6 6.4 6.2 6.8 4.9 4.7 5.6
Georgia 7.5 7.2 7.9 7.0 6.5 7.4 4.1 4.2 3.9
Hawaii 14.3 12.7 9.7
Idaho 4.4 5.2 6.0 4.7 4.1 5.3 3.6 2.7 3.3
Illinois 6.8 8.9 10.1 6.2 7.4 8.2 5.2 5.0 5.1
Indiana 6.2 7.0 6.9 5.6 6.1 6.0 4.5 3.8 4.4
Iowa (Ave.) 6.37 8.75 8.29 5.70 6.61 6.40 4.50 3.84 3.64
MidAmerican 9.00 6.74 4.24
Alliant- lES 8.58 6.63 3.58
Alliant - I.P. 8.02 5.51 3.50
Ames 7.28 5.66 4.13
Atlantic 5.23 4.37
Cedar Falls 4.70 4.10 3.76
Denison 4.71 3.99 3.65
Indianola 5.42 5.32 3.02
Muscatine 6.69 5.60 4.10
Spencer 4.10 4.45
Waverly 8.02 7.32 5.16
Webster City 7.81 6.79 4.18
Kansas 7.5 7.3 9.7 6.3 6.0 9.0 4.2 4.4 5.3
Kentucky 5.7 5.1 6.2 5.7 4.9 6.4 4.1 2.9 3.1
Louisiana 7.0 7.1 7.1 6.6 6.6 6.8 5.6 4.2 5.4
Maine 6.8 13.2 13.4 6.2 10.5 11.9 5.6 6.5 6.6
Maryland 6.1 8.4 8.5 6.2 6.8 7.3 4..8 4.2 6.1
Massachusetts 9.2 10.2 9.9 8.8 8.2 7.6
Michigan 7.0 8.8 9.3 6.8 7.9 8.1 5.4 5.0 5.8
Minnesota 6.5 7.9 7.1 6.0 6.5 6.0 4.7 4.6 4.3
Mississippi 6.3 6.7 6.8 6.4 5.8 7.2 5.0 4.0 4.9
Missouri 6.3 7.3 6.9 5.5 6.1 6.1 4.8 4.6 3.2
Montana 5.3 7.1 6.6 4.9 6.5 5.8 5.4 4.0 2.8
Nebraska 6.5 7.0 5.4 7.8 3.5 7.3
Nevada 5.0 7.2 6.5 4.8 6.8 6.0 1.5 5.1 3.7
New Hampshire 9.9 13.5 17.4 10.1 11.2 15.4 8.4 9.2 9.7
New Jersey 8.8 11.4 10.5 9.1 9.7 11.5 7.0 7.7 7.4
17
Residential Commercial Industrial
New Mexico 8.2 8.4 9.9 7.6 7.5 7.6 4.7 4.2 4.2
New York 11.9 13.8 8.5 10.4 11.4 8.1 2.0 5.6 5.4
North Carolina 9.0 7.6 8.6 7.8 6.0 7.2 5.5 4.5 4.4
North Dakota 4.6 6.3 6.9 4.5 6.1 6.6 4.0 4,4 3.8
Ohio 7.5 8.9 7.1 7.2 7.7 6,8 5.1 4.3 4.0
Oklahoma 7.0 6.3 7.2 6.5 5.3 6.8 4.0 3.5 3.9
Oregon 4.6 6.0 5.9 4.3 5.1 4.9 2.8 3.8 4.0
Pennsylvania 8.1 9.2 10.4 7.8 7.9 9.1 6.2 5.2 8.1
Rhode Island 9.5 10.1 9.2 8.5 8.0 7.4
South Carolina 7.1 7.5 7.9 6.4 6.1 7.4 3.3 3.8 4.1
South Dakota 4.9 7.9 7.8 5.2 7.0 6.7 4.1 4.7 4.5
Tennessee 6.3 4.9 6.5 6.2 5.0 6.8 4.7 3.5 4.7
Texas 7.0 7.7 7.3 6.5 6.5 7.0 4.6 3.9 4.7
Utah 6.6 6.2 6.5 5.9 5.1 6.2 4.4 3.3 5.5
Vermont 9.9 12.5 12.8 10.2 10.7 12.7 9.3 7~1 8.7
Virginia 6.1 7.4 8.5 5.7 5.5 7.7 4.0 3,8 4.6
Washington 4.5 5.9 5.2 3.9 6.0 4.4 2.8 4.1 3.7
Washington, DC 8.0 7.5 4.6
West Virginia 6.7 6.3 8.8 6.2 5.5 9.1 5.5 3.8
Wisconsin 5.8 7.4 7.8 5.3 5.9 6.6 3.9 3.9 4.2
Wyoming 6.4 6.2 6.6 5.7 5.1 5.4 5.6 3.2 3.8
Source: Form EIA-861 for 1999; Department of Energy, Energy Information Administration
~ttachmcnl 3
Municipal Electric Utility Taxes and Payments in Lieu of Taxes
From a 1996 IAMIJ Sur,,,ey (excludes cities that have both gas & electric utilities)
Total PILOTS
Utility Revenue as % of
~lame 1995 Total Rev.
~,ftor) ~ity of $ 45,000 $ 45,000 $ 410,000 11%
~,kron City of $ 229,173 $ 229,173 $ 648,000 35%
~,l~ona C!!Y of 202,457 $ 541,039 $ 743,496 $ 5,205,000 10%
~Alta City of $ 115,804 $ 115,804 $ 614,000 19%
Alta Vista City of $ 5,740 $ 5,740 $ 133,000 4%
?onCtyof ii ~ -- $ 25,500 $ 25,500 $ 403,000 6%
Ames City of _ $ 1,146,418 $ 1,146,418 $22,618,000 5%
,Anita City of $ 38,867 $ 38,867 $ 490,000 8%
nthon City of $ 27,000 $ 27,110 $ 351,000 8%
~Aplington ~!!Z~L ~ ' ~ 55,060 $ 55,060 $ 385,000 14°/o
~tlanticCi!yof ~ $ 167,566 ,~ $ 192,113 $ 359,679 $ 4,332,000 4%
;Auburn City of $ 41,959 $ 41,959 $ 127,000 33%
[Aurelia City Of ~ ~ $ 21,000 $ 21,000 $ 490,000 4%
Bancroft Mun. Utilities l $ 9,384 --~ 135,962 $ 145,346 $ 660,000 21%
Bellevue ~ity Of ~ 2,324 $ 77,128 $ 79,452 $ 1,366,000 6°/°
'Breda Cityof $ 57,785 $ 57,785 $ 264,000 22%
crOO~n~i!yof ~ ~ 10,000 ~ 10,000 S 624,000 2%
Io City of ~ $ - $ - S 325,000 0%
iiY°f ~ !~ 7[~ $ 16,500 E 16,500 $ 262,000 6%
i~l[end~rCity°f i ~ [ $ 12,5~ [ ~ 12,~56 $ 129,000 10%
[Carlisle Cit_vof ~ $ 43,864 I S 43,864 $ 1,168,000 4%
[G~2g~on~itYof7 ~ 100 ; $ i 7,250 I $ i 7,3501 $ 368,000 2%
Corw'th City e[ i 43,34O ! 43,34O $ 193,000 22°/°
Da!ly!l/e City of ~ $ 38 $ !4,9!~ ~ __ !4,953 $ 338,000 4%
Dayton City of , ~ ~3,324 ~ __53,3~ $ 372,000 14%
iDen!§on City of S_ 941 $ 152,488 $ 153,429 $ 4,535,000 3%
IDenver City of $ 1,700 $ 45,000 $ 46,700 S 705,000 6%
FDike C~ty o~ , $ 9,000 $ 9,000 $ 397,000 2%
Durant Ci~ of i ljl $ 7,709 $ 7,709 $ 911,000 1%
D~vsart C;ty of $ 134,094 $ 134,094 $ 627,000 21%
Earville~ityof _j 10,0_00 $ _ 10,000 $ 288,000 3%
bEIdlidge City o! I s 40,000 $ 20,000 $ 60,000 $ 1,838,000 1%
lE?sw0rth Citjof / $ 9,100 $ 9,100 $ 665,000 1%
~Esthe~vi~eCityot ' $ 488,993 $ 488,993 $ 2,739,000 18%
Farnhamville City of $ 6,000 $ 6,000 S 272,000 2%
Fonda City of $ 701136 70,136 $ 306,000 23%
lFFontanelle City of $ 15,30~ I $ 15,306 $ 286,000 5%
°restCiLvCity°f i ~ 186,519 ~ $ 186,519 S 3,308,000 6%
[F~r,ed~ri~ksii~,rg ~ity of S 4,000 I ~ 285,000 ' $ 289,000 $ 1.673,000 17%
Glidden City of $ 200 , ~ 79,200 ] $ 79,400 $ 410.000 19%
lI)
Name 1995 Total Rev.
~Gowrie City of · $ 6,000 $ 6,000 $ 541,000 1%
Grafton city of J . $ 15,000 $ 15,000 $ 109,000 14%
~and Junction ~ity Of 26
i~reenfieldCityo~ --!· $ $ 7,300 $ 7,326 $ 437,000 2%
$ 84,795 . ~ 84,795 $ 1,768,000 5%
iarundy Ceni-e~-Ciiyor / $ 38,871 $ 38,871 $ 1,601,000 2%
i~ttenberg city of $ 610 $ 92,000 $ 92,610 $ 1,134,000 8%
Hinton City of $ 69,750 $ 69,750 $ 347,000 20%
Hopkinton City Of $ 60 $ 12,000 $ 12,060 $ 465,000 3%
;Hudson City of _ $ ~,~)00 $ 185,000 $ 756,000 24%
ilndependence City of $ ~1768 $ 279,768 $ 3,905,000 7%
ilndianola City of $ 278,250 $ 278,250 $ 4,465,000 6%
c KeOsauqua City of $ 23,420 $ 23,420 $ 698,000 3°/6
!!Y 0~ __ $ 6,451 $ 6,451 $ 127,000 5%
y Cit2/of $ 16,250 $ 16,250 $ 800,000 2%
iLake Mills City of $ 63,000 $ 63,000 $ 1,814,000 3%
~View Cio of $ 6,400 $ 54,000 $ 60,400 $ 952,000 6%
~wood City of $ 32,500 $ 32,500 $ 288,000 11%
Ia~ecns (City of $ 2~,915 $ 39,192 $ 67,107 $ 1,415,000 3%
~Lawler City of $ 13,663 $ 13,663 $ 168,000 8%
Lehigl~ity of $ 24,000 $ 24,000 $ 197,000 12%
Livermore City of $ I33,500 $ 133,500 S 233,000 57%
,Long Grove City of S 6,900 $ 6,900 S 223,000 3%
IM~eton City o~ $ 30 $ 47,000 $ 47,030 $ 771,000 6%
/Maquoketa City of $ 4,050 $ 120,997 $ 125,047 $ 4,459,000 3%
]Marathon City 0~ $ 55,000 $ 55,000 $ 218,000 25%
McGr~go~of $ 52 $ 19,686 $ 19,738 $ 510,000 4%
MilfoE~ ~ity o[ $ 13,596 $ 161,033 $ 174,629 $ 1,346,000 12%
Mt Pleasant ~t~t,W of $ 130,463 $ 130,463 $ 3,743,000 3%
Muscatine City of S 101,820 $ 805,909 $ 907,729 $46,203,000 2%
Neol~ Cit2/of $ 35,000 $ 35,000 $ 236,000 15%
~wH~mpton C!tyof . $ 1,158 $ 161,937 $ 163,095 $ 2,692,000 6%
New London Mun Utils. $ 8,676 $ 22,115 $ 30,791 $ 999,000 2%
0gd~n City of ' $ 618 $ 29,121 $ 29,739 $ 840,000 3%
0nawaCityo~ $ ~i~01 $ 83'771 1 5h 84,972 $ 1,472,000 6%
Orange Cit2¢, Cit3/of $ 192,000 ~$ 192,000 $ 3,298,000 6%
0riehl OtL/of ~ $ 10,574 $$ 10,574 S 151,000 7%
!,Panora City of S 4,400 $ 31,500 35,900 $ 721,000 4%
PatonCit~of $ 35,652 i $ 35,652 $ 171,000 21%
Pauiiin~ityoi . $ ~,6~1])4 $ 33,600 $ 512,000 7%
P~ii~i~lty 0~ $ 455,000 4 ~ '455;000 S 9,855,000 5%
Pocahontas City of $ 65,~ ~ 65,799 $ 1,099,000
Prln;9hai ~]ty ~ ~ $ 383.000 15%
$ 58,625 i$$$ 58,625
R~adlyn City Of $ ~i~i2 55,812 $ 279,000 20%
Renwi~k ~y of $ 33,000 33,000 $ 247,000 13%
Rockford City0~ $ 1,500 i $ 1,500 $ 433,000 0%
2O
To tal PIL 0 TS
Utility Revenue as % of
~Vame 1995 Total Rev.
Sergeant Bluff City of $ 205,000 $ 205,000 $ 1,463,000 14%
Shelby City of $ 35,000 $ 35,000 $ 226,000 15%
Sibley City of _ _ $ 301,908 $ 301,908 $ 1,746,000 17%
Spencer City of . $ 61,276 . $ 34~3,331 $ _.. 404,60~7 $ 5,752,000 6%
Stanhope Oity~of $ 65,252 $ 65,252 $ 245,000 27%
Stanton City of $ 18,586 $ 18,586 $ 347,000 5%
State Center City of $ 3,494 $ 54,356 $ 57,850 $ 981,000 6%
Story City City of $ 4,746 $ 28,737 $ 33,483 $ 1,047,000 3%
Stratford City of $ 140,000 $ 140,000 $ 409,000 34%
Is~r~yvberry pgint ci!2, of $ 69,500 $ 69,500 $ 684,000 10%
stuart city o[ $ 32,446 $ 32,446 $ 960,000 3%
Sumner City of $ 200 $ 56,000 $ 56,200 $ 911,000 6%
Traer City of $ 8,268 $ 126,813 _$ 135,081 $ 1,274,000 10%
Vil~i_s_~a City of $ 424 $ 17,164 $ 17,588 $ 467,000 4%
Vin~ ~ of $ 184,379 $ 184,379 $ 2,543,000 7%
W~¥¢[ly City of $ 118,074 $ 535,777 $ 653,851 $ 6,909,000 8%
Webster City City of $ 163,586 $ 1,088,548 $ 1,252,134 $ 9,653,000 11%
West Libert~!!y of $ 111,690 $ 111,690 $ 2,585,000 4%
West Point City of $ 1,250! ~ ~1600 $ 17,850 $ 807,000 2%
V~estfield Town of ~ 16,000 $ 16,000 $ 67,000 24%
,Wilton ~ity Of ~ ! 30,805 $ 30,805 $ 1,549,000 2%
Winterset Cityof r,~ i14~0 263,738 $ 265,168 $ 2,651,000 10%
Woolstock City of 126,000 $ 126,000 $ 126,000 0%
Average 10%
Median 6%
21
Attachment 4
Municipal Utility Governing Bodies (City Council & Boards of Trustees)
58 Municipal Electric Utilities are Governed by Boards of Trustees:
Algona Grundy Centei' Ogden
Alta Harlan Osage
Anita Hopkinton Remsen
Atlantic Independence Rock Rapids
Aurelia Indianola Rockford
Bellevue Keosauqua Sanborn
Brooklyn La Porte City Spencer
Cascade Laurens Plant Story
Cedar Falls Lenox Stuart
Coggon Manilla Sumner
Coon Rapids Manning Traer
Corning Mapleton Villisca
Dayton Maquoketa Vinton
Denison McGregor Waverly
Durant Milford West Point
Eldddge Montezuma Wilton
Gowrie Mount Pleasant Winterset
Graettinger Muscatine Woodbine
Grand Junction New Hampton
Greenfield New London
79 Municipal Electric Utilities are Governed Oirectly by City Councils:
Afton Forest City Pella
Akron Fredericksburg Pocahontas
Alta Vista Glidden Preston
Alton Graf[on Primghar
Ames Guttenberg Readlyn
Anthon Hartley Renwick
Aplington Hawarden Sabula
Auburn Hinton /Water Sergeant Bluff
Bancroft Hudson Shelby
Bloomfield Kimballton Sibley
Breda Lake Mills Sioux Center
Buffalo Lake Park Stanhope
Burr Lake View Stanton
Callender Lamoni State Center
Carlisle Larchwood Stratford
Corwith Lawler Strawberry Point
Danville Lehigh Tennant
Denver Livermore Tipton
Dike Long Grove Wall Lake
Dysart Marathon Webster City
Earlville Neola West Bend
EIIsworth Onawa West Liberty
Estherville Orange City Westfield
Fairbank Orient Whittemore
Farnhamville Panora Woolstock
Fonda Paten
Fontanelle Paullina
22
A Thumbnail History of the Electricity Industry Attachment 5
The beginning of the electricity business in this country is usually associated with the opening of
the Edison Electric Illuminating Company's first power station in New York on September 4,
1882. Sixteen days after Edison's Pearl Street Station went into business, Fairfield, Iowa, began
operating one of the nation's first municipal electric utilities. From then until about 1907, private
companies fought to win local franchises among themselves and against public power systems.
By the turn of the century the number of public power utilities had begun to grow at twice the rate
of the private ones. Private companies responded to public power by calling for state regulation
of monopoly service territories. They also opened a period of rapid consolidation. There were
3,659 private electric utilities and 1,737 public power utilities in 1912.2 By the time of the 1928
stock market crash, 85 percent of the nation's power supply was controlled by 16 holding
companies, which also controlled much of the country's railroad, ice, water, banking, and real
estate business.
The New Deal saw the breakup of the power trust and a surge of municipal and rural electric
utilities and federal power projects, such as the Tennessee Valley Authority. This phase lasted
until 1961, with a subsidized nuclear energy program and with the federal call for a tripling of
power output by 1980, development of power pools, and interconnection of power plants.
In the aftermath of the Arab Oil Embargo and the related rolling blackouts in the eastern U.S.,
new independent power producers were brought into the wholesale market. Their impact was
limited, however, because a lot of new generation was coming on line and most of the country
would end up with excess generating capacity. The last investor-owned utility plant in Iowa
came on line in 1982.3
Congress passed the Energy Policy Act of 1992 (EPAct) with a goal of replacing regulation with
competition in the wholesale power market. This new threat of competition has led to another
round of consolidations that may surpass the concentration of business that occurred some 75
years ago. EPAct also led a number of states to take competition a step further, passing laws that
would allow retail customers to choose from among competing power suppliers. California has
led the way on retail competition and nearly half the states have followed that lead, though
implementation has begun in only a handful of states. To date, retail competition remains an
unfulfilled promise and the future of deregulation in the industry is uncertain.
The 1992 Energy Policy Act followed deregulation of trucking, railroads, the airlines, and the
1984 breakup of AT&T. If deregulation has generally fallen short of its promise, it has failed
miserably in rural parts of the country, like Iowa. There is little, if any competition for rail
service and many rural rail lines have been closed. Air service has al~o suffered. If your flight
schedule is flexible enough, you can sometimes get to Phoenix or New York or Washington D.C.
for between 200 and 300 dollars, but a business meeting at Chicago's O'Hare Airport means an
$800 ticket or more. Progress has been made in development ora competitive wholesale energy
market, but regional transmission organizations an essential minimum for competition - have
yet to be fully operational.
2 These data and much of the historical information about the electzicity industry came from Power
Struggle: The Hundred- Year War over Electricity by Richard Rudolph and Scott Ridley, Harper & Row,
NY, 1986, and from a shortened 1996 update by Scon Ridley, entitled Profile of Power.
3 The Louisa Generating Station located down river from Muscatine proved to be more than Iowa needed.
Without additional generation, Iowa has had enough reserves to carry it for 10 years. A generation deficit
is predicted by 1993.
23
Marian Karr
From: Brett Cloyd [bcloyd@yahoo.com]
Sent: Tuesday, Mamh 26, 2002 7:23 PM
To: cou ncil@iowa-city.org
Subject: City of Iowa City Franchise Agreement with MidAmerican Energy
From:
Brett Cleyd
t307 Marcy Street
Iowa City, IA 52240
March 26, 2002
To:
Iowa City Council
Civic Center
Iowa City, IA 52240
council@iowa-city.erg
Re: City of Iowa City Franchise Agreement with
MidAmerican Energy
Dear City Council,
I am writing to ask that you heed the good work of the
Public Power Initiative of Iowa City and either sign a
franchise agreement with MidAmerican of less than 4
years, or no franchise agreement at all. (State law
requires the utility to continue serving Iowa City
with or without a franchise agreement.) I also ask
that you fund a feasibility study of establishing a
municipal electric utility, and establish a citizens'
committee to conduct the feasibility study. An eight
or ten or fifteen year agreement will be too long.
I believe a move toward municipal power will result in
lower utility rates for Iowa City residents and
businesses and help the city continue prospering
economically. Most of my personal research indicates
that municipal power companies are more responsive to
the communities they serve and can make better efforts
at keeping prices down, encouraging energy
conservation, and pursuing renewable energy
alternatives.
Thank you for your time and I hope you will do as I
suggest.
Sincerely,
Brett Cloyd
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Marian Karr
From: hhart [hhart~blue.weeg.uiowa.edu]
Sent: Tuesday, March 26, 2002 3:29 PM
To: cou ncil@iowa-city.org
Subject: Municipally-Owned/Operated Utility
Dear Councillors:
I read that the topic of a municipally owned and operated electric utilities
is to be discussed at the April 1 City Council session.
I am writing to encourage you to support, in the short term, a feasibility
study, conducted by a committee representative of a fair range of the
community. I would also encourage you not to sign any leasing
agreement with MidAmerican Energy that binds the city to a contract of 10
years or longer. It is my understanding that you can sign an agreement
for fewer than 4 years, or none at all, while a feasibility study is being
conducted.
As someone originally from Muscatine, I am somewhat familiar with the
idea of locally-owned utilities. I have yet to hear a single negative
statement about that city's choice to delevelop their own system. If you
have not already done so, I encourage you to consult those involved in
Muscatine's utility company .
I believe that a municipally owned and operated electric utility is in Iowa
City's best interest, and will offer a number of benefits and opportunities:
- in the mid- and long-temr, it is very likely we would have lower
rates
than if MidAmerican were supplying the power;
with local control over the source of our energy supply, we have
the
option to utilize sources that have lower negative impact on the
environment, somethign that will become increasingly important as
"green" energy sources become more available.
Sincerely,
Holly Hart
P.O. Box 2448
Iowa City, IZ 52244-2448
319) 337-7341
Marian Karr
From: mia [miarain@yahoo.com] 4f(13)
Sent: Wednesday, March 27, 2002 4:58 PM
To: council@iowa-city, org
Subject: letter to council
I am writing to urge the Iowa City Council to
sign a short-term (3-5 year) franchise agreement
with Mid-American Energy.
As an investor-owned utility, Mid-American's
record on the usage of energy efficiency programs
has always been at the absolute minimal level
that the Iowa State Legislature has required. And
they have fought any provisions to increase their
energy efficiency programs, even though their
customers are the ones that pay for them. The
cheapest and easiest way to conserve energy is
through energy efficiency. In a study done by Tom
Wind, an energy analyst/ consultant in Iowa,
showed that for every dollar spent on energy
efficiency, three dollars were saved.
In comparing investor-owned utilities and
municipally owned and -operated electric
utilities, it is fairly consistent--- municipal
electric utilities waste less energy. This is
important. It keeps the costs down for consumers
and the environmental savings will continually be
a reward to our community and to our future
generations.
Mid- American Energy is by far the most
anti-environmental investor-owned utility in the
state of Iowa. As stated earlier, they have
fought to decrease their involvement in energy
efficiency programs and to increase the
percentage of energy savings the state should
save-even though it is their job (as well as
Alliant Energy) to do the research on how much
the state can actually save through energy
efficiency. The Iowa Utilities Board doesn't do
this. Nor does the Iowa Department of Natural
Resources Energy Bureau. The investor-owned
utilities themselves commission these studies.
Mid-American Energy has also been leading the
fight in Iowa to stop an increase in Iowa's
renewable energy portfolio from the current 2%
(passed in 1984, enforced in 1996) to 10% by 2010
and 20% by 2020. An increase in the states RPS
would bring jobs, income to Iowa's rural
landowners and cleaner air and water. As a ..
citizen of Iowa City, I don't want my money to go
to Mid-~nerican Energy's efforts to lobby against
renewable energy and to increase energy
efficiency programs. Again, I urge you to sign a
short term contract with Mid-American so that we
can switch to a municipally owned electric
utility.
Signed,
!
Michelle Kenyon
200 S. Summit St.
Iowa City, IA 52240
337-2769
March 27, 2002
Iowa City City Council
410 East Washington St.
Iowa City, IA 52240
Dear Council:
I am sure you are aware o£the lawsuit filed by several Coralville businesses that will be
replaced by the proposed convention center.
Has Iowa City looked into making an off'er to these businesses? I see the opportunity to
put together a relocation package that would bring millions of tax dollars and hundreds of jobs to
town. I do not hear Coralville proposing any such package, nor do I forsee these thriving
businesses closing their doors. They'll need to go somewhere, and Iowa City has a few industrial
sites to offer. This could be a real coup for Iowa City.
Sincerely,
Rod Sullivan
2326 East Court Street
Iowa City, Iowa 52245
Marian Karr
From: iowadem@hushmail,com
Sent: Tuesday, March 26, 2002 9:54 AM
To: council@iowa-city.org
..... BEGIN PGP SIGNED MESSAGE .....
Hash: SHA1
Dear Members of the Council:
As a resident of Iowa City I am concerned about the proposal to use a sales tax to fund
school improvements. As I am sure you are all aware, sales taxes are a regressive form of
taxation that place an undue burden on those least able to afford it. I urge you to
choose the bond issue as a means of raising revenue instead. This is a much more fair way
to increase taxes. As a home owner I realize I will probably pay higher taxes through a
bond issue than in sales tax, but I am more than willing to take on those costs. Though I
have no children myself, I know that a strong school system is critical to a successful
City as is a tax structure that promotes the well being of hard working low wage earners.
Thank you for your consideration.
Gina Schatteman
2518 Princeton Rd.
Iowa City, lA 52245
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Marian Karr
From: IJensen@aol.com
Sent: Tuesday, Mamh 26, 2002 11:42 AM
To: vklopfenstein@worldnet.att.net; fatherof5@mcleodusa.com; brandy.forbes@solon-iowa.com;
sshulista@msn.com; krall@zeus.ia.net; council@iowa-city.org
Cc: djordan@cedarrapids.org; jraso@iowacityarea.com; Bobhenningsen@aol.com;
Langdonshelia@aol.com
Subject: Press Conference Announcement
Business leaders of the Cedar Rapids/Iowa City Technology Corridor (a joint
effort of Priority One and the Iowa City Area Development Group) would like
to extend an invitation for you to attend a very important press conference
regarding economic development efforts for our region. The Technology
Corridor will be releasing the results of our Industry Cluster Development
Project, on Thursday, April 4 at 10:00am at the Administrative Building of
The Eastern Iowa Airport, located at 2515 Wright Brothers Blvd. (the first
right off the airport's main entrance).
This first in the state study serves as a key resource for the continued
economic development strategies for the Technology Corridor. Announcements
will be made to explain how cluster development strategies are being used to
further strengthen the area into one true regional economy. The project,
lead by private industry and supported by local government, acts as a
catalyst for industrial marketing efforts developed jointly by Priority One
and the Iowa City Area Development Group.
Please RSVP, by replying to this e-mail, if you can join us on April 4 at
10:00am at the Administrative Building of The Eastern Iowa Airport.
Yes, my name is Irv Jensen. I am a consultant who is working with the
Technology Corridor group on the cluster project and the related press
conference activities. Thanks.
Irv Jensen
Strategic Alternatives
515-267-0674
ijensen@aol.com
'!
City of Iowa City
M MORANDUM
Date: March 20, 2002
To: City Clerk
From: Beth Pfohl, JCCOG Traffic Engineering Planner '~
Re: Item for April 2, 2002 City Council Meeting: Removal of a NO PARKING
LOADING ZONE sign in front of 721 North Linn Street
As directed by Title 9, Chapter 1, 3B of the City Code, this is to advise the City Council
of the following action.
Action:
Pursuant to Section 9-1-3A(18), signage indicating NO PARKING LOADING ZONE
located in front of 721 North Linn Street will be removed.
Comment:
This loading zone was established for the purpose of health care providers to care for
residents of 721 North Linn Street. These individuals no longer reside at this address,
and therefore, the loading zone is being removed. We have been informed that
representatives of the Northside Neighborhood may request this loading zone to remain
in place. We have indicated to them that this should be considered as a separate
matter.
I ndexbc\memos\3-1 BP.doc
City of Iowa City
MEMORANDUM
Date: March 18, 2002
To: City Clerk
From: Beth Pfohl, JCCOG Traffic Engineering Planner ~,~
Re: Item for April 2, 2002 City Council Meeting: Installation of two parking meters on the east
side of the 400 block of North Clinton Street
As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council
of the following action.
Action
Pursuant to Section 9-1-3A(17), two parking meters will be installed on the east side of the 400
block of North Clinton Street just south of Fairchild Street. These parking meters will have a
two-hour term limit.
Comment
These metered parking spaces are being added as a result of a university driveway being
removed and a curb installed. The meter term is similar to adjacent metered spaces.
J ccogtp\memos\400clinton doc
City of Iowa City
MEMORANDUM
Date: March 19, 2002
To: City Clerk
From: Beth Pfohl, JCCOG Traffic Engineering Planner~
Re: Item for April 2, 2002 City Council meeting: Installation of a metered handicap parking
space in front of 620¼ South Dubuque Street.
As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council
of the following action.
Action
Pursuant to Section 9-1-3A(14), an existing on-street metered parking space in front of 620¼
South Dubuque Street will be designated for handicap parking only. This meter will have a five-
hour term limit and a rate of 40 cents per hour.
Comment
This parking space for persons with disabilities is being added at the request of a resident of
620¼ South Dubuque Street. A person with a disability resides at 620½ South Dubuque Street.
There are currently no handicap parking spaces in the 600 block of South Dubuque Street.
jccogtp/mem/620~sdubuque,doc
Marian Karr
From: Judy Pfohl [judypfohl@hotmail.com]
Sent: Thursday, March 28, 2002 1:27 PM
To: council@iowa-city.org
Subject: Iowa Child information
I was surprized to hear that you had not formally heard details about Iowa's
Educational Environmental Project. I have attached information about the
education component of the Iowa Child Institute. (It will be renamed
eventually.) The project will not be built unless it can open debt free.
More information may be found at www.iowachild.org.
All aspects of the facility are to be educational and use the latest
environmental techniques to make this the biggest green project in the
nation. The biologic waste system designed by Todd has been successfully
used to treat and reuse waste water on-site in other states. The exterior
run-off from roads and parking will be cleaned with wetlands. The greenery
for the parking ramp cover will reduce radiant heat and help with water
runoff. The 18 inches of light roofing material by Foil-tec is the most
energy efficient adjustable system changing from opaque to transparent as
needed. (The structure and roof have been tested for the 90-100 mph winds of
Iowa.)
The rainforest will draw in the national visitors. The exterior prairie and
wetlands will show a bit of what Iowa was 100 years ago. The hand-on
exhibits and galleries will focus on soil, atmosphere, habitats, peoples,
and geology. Ties to other Iowa sites, like Lake McBride, Loess hills, Neal
Smith Prairie, are to be spotlighted.
All this is enough to make this a unique informal education attraction for
fun and entertainment. But, the most unusual aspect is the large
educational component. A non-competitive Federal Grant has provided funds
to prepare the structure for 65,000 feet of education. Not a single school
as first envisioned, but teaching examples for the state. Catalyst Schools
across the state will use the reforms in the attached description. The
concept map attached shows the emphasis on three academies; Administrator
Training, Teacher Training, Post Teacher Training. Ties across the state
using modern technology will allow research, demonstration, and
dissemination of the latest exemplary teaching models. Teachers can come
for sabbatical and help develop and share connections of the facility to
their local environment. Webcams and remote sensors will provide data to
many groups. The University Engineering department has already discussed
how they can test fluid dynamics of the waterfall. Arts can have a.new
facility to generate excitement and to perform.
I see this facility as adding value to our city, county, state. There will
be education jobs and generated income to local shopping and hotels.
would be glad to arrange a special meeting with the architect and show
preliminary pictures if you would like it.
Judy Pfohl
Program Assistant
Iowa Child Institute
762 Van Allen Hall
Iowa City, IA 52242
319-335-3327
judypfohl@hotmail.com
!
and
President Ty'n Cae Neighborhood
Send and receive Hotmail on your mobile device: http://mobile.msn.com
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Organizations and Functions
Of the Educational Activities
Central to the Iowa Child Project
Basic & Applied
Research on
Learning &
Teaching
Office of
Reseamh
Nationwide Learning amd
Dissemination Teach!ng
Clearinghouse of
Research for
InteraCtiVe
Learning &
Teaching
Scb~i District i
i~;pi~mentation
Catalyst Schools
Catalyst Schools commit to inspire and participate in comprehensive and coherent educational
change. Catalyst Schools, through active involvement in a supportive and collaborative
statewide/regional network, will serve as models for preservice and inservice educators. Catalyst
Schools with Iowa Child will co-develop a curriculum model that integrates each partner's vision
and mission. This integrated cun-iculum is student centered, active, contextually driven and
personally relevant - a truly hands on, minds on approach to learning. Participators expect
Catalyst Schools to encourage and inspire creativity which will result in more students becoming
life-long learners.
Functions of Catalyst Schools
· Use National Standards to initiate changes in teaching, staff development, assessment of
learning, and content structure
· Develop and implement mentoring program for new teachers
· Cooperate as partners in the preparation of new teachers
· Engage in collaborative research projects to establish the successes of the reforms undertaken
· Involvement of parents, community leaders, organizations, and professionals in the efforts to
move to Standards-Based programs
· Increase involvement of minorities and other under-represented groups in the education
enterprise
· Use the Iowa Child initiatives to extend learning experiences made available in the 4.6 acre
learning enviromnent through visits, model teaching, use of distance learning technology
Catalyst School Designation for Iowa Child Institute
In attempts to involve as many Iowa schools as possible as catalysts for the reforms envisioned
in the National Mathematics, Science, and Technology standards the following advantages are
offered:
1) Collaboration among leading districts, institutions of higher education,
businesses/industries, organizations and agencies interested in reform described in
National Standards
2) Contributing to and using research designed to increase student learning and to
improve teaching
3) Assisting with the preparation of new teachers and efforts to retain them in the
profession
4) Promoting more leaming among all learners of all ages
To be listed as a Catalyst School for the Iowa Child Institute does not mean;
1) Providing any financial commitment
a. to support specific curriculum changes
b. to use the facility for field trips
c. to provide for teacher staff development and/or work in pro fessional societies
2) Changing district policies, goals, and/or curricula
3) Trying every innovation that is proposed by the staff
4) Losing any local control over the curricula and/or the teaching in the district
Involving many more schools as Catalysts for the reform in science, mathematics, and
technology education with assist in the efforts to locate external funding to complete the facility
at the Coralville site bordering the Iowa River.
Marian Karr
From: Marian Kart
Sent: Tuesday, March 26, 2002 9:47 AM
To: 'GoCart54@aoLcom'
Subject: RE: parking
I am unable to forward your request to the City Council with a name, your address is optional.
..... Original Message .....
From: GoCart54~aol.com [mailto:GoCart54~aol.com]
Sent: Monday, March 25, 2002 5:32 PM
To: council~iowa-city.org
Subject: parking
I was wondering about the parking in the ramps are so full of cars which mostly belong to students. Is it
possible that they are getting a discount?
Page 1 of 1
Marian Karr
From: GoGart54@aoI.¢om
Sent: Thursday, March 28, 2002 4:55 PM
To: cou ncil@iowa-city.org
Subject: parking for students
Thank you for telling me what I did wrong. My name is Harold Stager, I live at 201 North lst. Ave,# 302 and I would like to
know why the special bus is serving an area that where most of the students reside. I would like to know if any students
get any benefits from our fair city. This city is no longer a college town and I hope it never goes back to the era.
3/29/02
March 26, 2002
Stephen Atkins, City Mana~ger D,~^ ' r' i . rWh al~
Ernie ~hman, Mayor ¢
R.J. Wi~elh~e, Police Chief
AUR Propeaies
~ntlemen:
I m writing to you ap~ment owners ~d city ~d law enforcement officials to ask yo~ help
to solve a serious noise problem. W~m w~ther is approaching and I need your help to ~op
the outd~r mob pmies that dis~rbed my family' s peace last ye~.
I live on the west side of Summk at Co~. The tenants who occupy the ap~ment house at
919 Buflin¢on sometimes p~y loudly omdoors way into the night, oEen ac~mpanied by
loud music fiom omd~r loudspe~ers and by loud tflking and yelling. These pmies ~e not
hosted by any one person and often attra~ hundreds ofviskors. The first time I went over to
complain, ~ch person I tflked to politely infomed me thru he was not the one in ch~ge.
~er the ne~ loud p~y, I c~led the A~ offices. I explained that I ~dn't have this trouble
before this new ap~mem was built. The man I spoke to said he would t~e ~eps, but he
reused to tell me what steps they mght be. I ask~ him to have ~. Cl~k or his
representative call me. No one ever called me.
~er ~other loud p~y, I call~ the City offices to ~k what vinery of possible solutions
might be available to me. They ~id that they could not help me because this was stri~ly a
police maRer.
So ~th the ne~ loud p~, I mluct~tly called the ~lice. The police came and the noise
ceased. They were away and the noise stmed up. It were on like this all t~ough the night.
Finally at 5:00 a.m, ~ officer was kind enough to come to my house. He explained that it
was difficuk for hm to eve citations or m~e ~ests: the pray-goers flways were polke to
him, they always quieted down or dispersed when he asked them to. ~d there were so
many people ~d ap~mem unks that it was difficuk m hold ~y one person or household
responsible. M~ing matters even more complicated, the offenders who were p~y~ng ~d
yelling at 2:00 ~ were not neces~ily the same offenders who were playing the stereo ~d
screaming at 4:00 ~.
Mor~ver, this is not the case of one noisy neighbor who occasionally gives loud p~ies.
There ~e so many tenams tMt I c~ count on a noisy pa~y evew weekend, which means my
wife and I are disturbed by a loud pa~ just about evew weekend of the summer.
(It is also not much ~n to have e~-blasting stereo ~d foul lan~age in the middle of the
a~emoon, but I have given up hope of stopping that and I'm concentrating only on the night
offenses. But I've got to say that it's pretty sad that I live in a city where my wife gardening
in her own backyard cannot be protected from outdoor loudspeakers and garbage language.)
There are many other apartments and a sorority near our house. They are occasionally noisy
- but it is only with the construction of the apartment at 919 Burlington that the noise became
a problem. Since we are only talking about the excesses of a single apartment house, I would
imagine that there might be any number of solutions.
AUR Properties: Could you to hire an on-site manager/tenant to police your tenants in the
apartment you own? Could you plant noise-blocking trees or build other noise abatement
structures to contain the noise? Could you restructure the parking lot so that a hundred kids
cannot comfortably gather there? Could you send letters to tenants saying that loud parties or
outdoor stereo will not be tolerated? Please call me to discuss.
Chief Winkelhake: Could you direct your officers to enforce the law by arresting and
removing noise makers and by arresting and fining landlords? Please call me to discuss.
Mr. Atkins and Mayor Lehman: Could you and the City Council develop enforceable and
consequential noise and nuisance laws to protect citizens from this abuse? Could you
develop noise abatement requirements for apartments, especially when high-density zoning
abuts against residential zoning? Please call me to discuss.
On a more personal level, let me urge you to put yourself in my position. How would you
feel if you were in my shoes. I am quite certain that if occupants from a nearby house were
keeping you up all night every weekend, each of you would have absolutely no trouble
finding ways to have law enforcement stop that from happening again. I am asking you to
take the same measures on my behal£
Noise, stress, and lack of sleep are not good for my wife who is desperately try to fight
cancer and the effects of powerful treatments. She has just come out of the hospital again
after another major surgery and is doing well. The impotence that I feel about the noise
situation has left me frustrated and worse. If needs be, no matter what, I will try to stop the
noise to protect my wife's health. But, I am sure that by working together, we can find a
reasonable way to prevent the outdoor parties and the late night noise before the warm
weather begins.
I look forward to hearing from you.
Sincerely,
Jay Sem¥1
331 South Summit St.
Iowa City, IA 52240
335-4034 (w), 338-6321 (h)
jay-semel@uiowa.edu
Marian Karr
From: Doug Elliott [ecicog@ia,net]
Sent: Thursday, March 28, 2002 5:06 PM
To: Les Beck; Tom Trehame; Jane Tompkins; Dean Whealtey; Mark Trumbauer; Larry Wilson;
Ann Hearn; Charles Montross; Dee Vanderhoef; Dennis Hansen; Don Magdefrau; Ed Brown;
Ed Raber; Gary Edwards; Henry Herwig; Jim Houser; Lu Barron; Marc Greenlee; Mike
Lehman; Robert Stout; Tom Tjelmeland; Sue Janecek; Jeff Schott; Diane Bys; City of
Williamsburg; City of West Branch; City of Wellman; City of Vinton; City of Van Home; City of
Urbana; City of Traer; City of Toledo; City of Tipton; City of Springville; City of Solon; City of
Robins; City of Riverside; City of Parnell; City of Olin; City of North Liberty; City of Newhall;
City of Mt. Vernon; City of Monticello; City of Millersburg; City of Martelle; City of Marengo; City
of Luzerne; City of Lisbon; City of Ladora; City of Keystone; City of Kalona; City of Iowa City;
City of Hiawatha; City of Garrison; City of Fairfax; City of Ely; City of Dysart; City of Durant
City of Central City; City of Center Point; City of Cedar Rapids; City of Brighton; City of
Blairstown; City of Belle Plaine; City of Anamosa; City of Alburnett; City of Ainsworth; City of
Garwin; City of North English; City of Oxford Junction; City of Palo; City of Tama; City of
University Heights; City of Wyoming; Tracey Mulcahey; Robyn Jacobson; Mary Rump; Marie
DeVries; Lisamaire Garlich; Lisa Carlson; Jim Nehring; Jennifer Ryan; Gina Peters; Chad
Sands; Catherine Hankey
Subject: Workshop Opportunity
apfil02workshop.pdf
Doug Elliott
Executive Director
East Central Iowa Council of Governments
108 Third Street SE, Suite 300
Cedar Rapids, IA 52401
319/365-9941, ext. 22
319/365-9981 (fax)
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Marian Karr
From: Doug Elliott [ecicog@ianet]
Sent: Friday, March 29, 2002 9',25 AM
To: Marian Kart
Subject: RE: Workshop Opportunity
You can provide to all council members.
Iowa Energy Bank
Community
Forum
to Sa ve Energj/
A Free, One-Day Conference to
Help Your Community:
· Save Money
· Improve Buildings
· Increase Comfort
April 24, 2002
Sioux City, IA
&
June 12, 2002
Cedar Rapids, IA
For Communitj/ Officials, Economic
Development Staffs, Business Managers,
School Superintendents, Building
Managers and Key Decision Makers
Sponsored by:
· The Iowa Dept. of Natural Resources
· The U.S. Dept. of Energy
· Alliant Energy
· MidAmerican Energy
· Central Iowa Power Cooperative
Iowa communities today face tight
budgets, economic development
needs, and aging buildings...
... and energy costs are one budget item that
always present a challenge, but can be
managed to help the bottom line.
Learn solutions to your energy
and building challenges.
This free, one-day, conference will show you
'how to identify cost-saving opportunities
through energy efficiency, create a more
comfortable and productive workplace, and take
advantage of cost-effective financing options.
Find out how your community can:
· Save money
· Improve economic development
· Create improvements in buildings through
programs and technologies available now.
You can make a difference.
Now is the time to find the energy solutions for
your community's bottom line.
Community Forum
to Save Energy
April 24, 2002 June 12, 2002
Sioux City Convention Crown Plaza
Center Five Seasons Hotel
Sioux City, Iowa Cedar Rapids, IA
8:15 a.m. - 8:45 Registration & Continental Breakfast
8:45 - 9:00 Welcome & Introductions
Craig Berenstein, Mayor of Sioux City
Monica Stone, DIVR'
9:00 - 9:30 Future of Energy Prices
David Downing, DNR
9:30 - 10:15 Energy Policy Task Force Recommendations
Sharon Tahtinen, DNR
Lee Clancey, Energy Policy Task Force Co-Chair*
10:30 - 11:15 Utility Incentive Programs and Rebates
John O'Roake, MidAmerican Energy; Tom Balster,
Affiant Energy; Rich Peterson, Central Iowa Power
Cooperative
11:15 - Noon Iowa Energy Bank Program
Michael Audino, Audino & Associates; Les Wilson, The
Energy Group; Jean Logan, Woodbury Co. Community
Action Agency; Randy Shepard, City of Waterloo'
Noon - 1:30 p.m. Lunch
Tour of Orpheum Theater/Martin Apartments (Sioux City)
Five Season Transportation & Parking Biodiesel Demo.
(Cedar Rapids)
1:30 - 2:15 Energy Savings in New Construction
Steve Lang, Taylor Ball
Bill Hoekstra, City of Cedar Rapids
2:15 - 3:15 Concurrent Technology Sessions
Wind: Bill Rainey, Wind Utility Consulting; Tom Wind,
Wind Utility Consulting;* William Grove, Eldora-New
Providence CSD
GeoExchange: Allan Hazer, Feld-Hazer, Inc.; Tom
Balster, Alliant Energy; * Dennis Bahr, Webster City CSD
Cost-Effective Improvements: Dan Lane, DNR
Transportation Fuel Alternatives: David Downing,
DNR; Bill Hoekstra, City of Cedar Rapids
Operations Savings: Les Wilson, The Energy Group
3:30 - 4:30 Energy Efficiency Project Financing
Beth Grob, Ahlers Law Firm; David Dirks, Evensen
Dodge, Inc.
4:30 - 5:00 Rebuild America Program
John Root, Rebuild Muscatine Coordinator
Pat Higby, Rebuild Cedar Falls Coordinator*
5:00 p.m. Closing Comments and Adjourn Meeting
· Will replace the person previously listed at the Cedar Rapids forum.
Iowa Energy Bank -
Community Forum to Save
Energy
Four WaYs to Register!
1. Fax the re§istration form to:
(515) 281-6794, Attn: Chad Stobbe
or
2. Mail to:
Chad Stobbe
Dept. of Natural Resources
Wallace State Office Building
Des Moines, IA 50319
or
3. E-mail your registration information to:
Chad. Stobbe@dnr. state.ia.us
or
4. Call Chad Stobbe at: (515) 242-5851
Reservation Form
(Please register for this free conference in Sioux City by April 17,
or in Cedar Rapids by June 5)
Name Title
Organization Name
Address
Telephone Fax
E-mail Address
This material was prepared with the support of the U.S.
,_~ _ ~, Department of Energy (DOE). However, any opinions,
I~)I,~,DiPRIm'I~D WITHal 3' ~'~ findings, conclusions or recommendations expressed
N
- ~-[]~'/ herein are those of the authors and do not necessarily
reflect the views of the DOE.
POSTCARD TO CITY COUNCIL:
Dear the Honorable City Council Members,
When I read about the waterworks park I got very exited. What a wonderful
idea. I am a prairie enthusiast and an artist who is interested in doing environmental
art. I understand that you need to sell the idea of this park to the public, that you want
to use it for educational purposes and you need funding. Maybe there is a way to
combine prairie restoration with the arts, thereby receiving more funding say from the
Iowa Arts Council. Think of the artist Stan Herd who creates earth paintings out of
selective plantings. I also found two other articles that might interest you. One is a
turtle labyrinth created through the Fields Project in Illinois. The other is The Living
Water Garden in Chengdu, China. I also just read about an environmental education
center in Ohio who created a Cretian labyrinth out of native prairie plants. The article
explains exactly how to do it. Combining the arts with environmental education is a
brilliant idea worth exploring. From a child's perspective it could make learning more
fun, leaving a lasting impression. If you are interested in combining the arts with this
project, I would be honored to help.
Sincerely,
Laura Waldo-Semken
205 North Front Street
North Liberty IA 52317
626-2055
APR 0 1 2002 ~!
CITY MANAGER'S OFFICE
"Honoring the
Ancestors"
~: The Fields Pro!oct was established in August, 1998 by the Arts Alliance of 0glo County, Illinois
~ in an effort to bring farming, community, and arts together Their mission is to create a new rela-
~ ~ tionship between artists, farmers, educators, and the community.
Artist Whitney Krueger Santa Fo, NM, artist Whitney Krueger was one of two national aCLiStS accepted to have their
designs mowed into 15-acres crops. Her turtle labyrinth, "Honoring the Ancestors", the world's
"[' am' 'J, nterested in the' largest labyrinth and the first labyrinth of an animal to be realized in form, was completed on June
21, 2001 in Oregon, Illinois at the time of the new moon, solar eclipse, and summer solstice.
'memory' of land. What FarmerBob LeFevre worked with her to mow her design into the field.~_~.
Krueger's landscape "painting" was designed to honor the early indig~!arm~¢~of tlTe~ck
is the imprint o{ a place? ,iver Valley. The idea for the image reaches back in Northwest Iginois;i~o'~iaphical heritage'to
the earliest settlers who left behind artificial mounds in circular, oval, ~',a~imal ms,
is
--..Wha~sacra~1~.,al~otlf~, ~ a lizard, and snake forms date from 600-1300 A. D.
Whitney Krueeer is a multi-disciplined artist whose creations focus on-~E~ sacred~ces used
st, ace.,,? u~k,_.a, is ,k,.e s,or¥~'" to honor the goddess, from the Paleolithic times to ancient Greece and from caves to elaborate
temple buildings. In her travels to sacred sites, a journey to Ireland and West Africa proved to be
orsong that wants to most influential in her quest to re-member ancient spirit paths and "songlines". Her divining and
geomancy gifts were awakened in Nigeria when she was invited to ca~ve a sacred divining tray
be heard? Our environ, used in the 8abalowa healing tradition. (Women are not allowed to carve wood in this culture.)
In New York she began using these divination skills in creating sacred spaces, designing textiles,
merit is always speaking leading workshops and doing consultations in fang shui. After her move to Santa Fe which was
prompted by a desire to have a more direct relationship to the Earth, a new path emerged to cra
to US. What are we will- ate artifacts that reawakened our memory of early earth-honoring cultures.
Her ceramic works bring forth the sacred objects used in ceremony and celebration in the ancient
in~.. to hear, remember, Goddess traditions. The sculptures she creates are made to nourish the body, stimulate the mind,
and open the heart. Her current work focuses on the integration of art, geomancy and the femi-
and heal?" nine and she creates non-traditional labyrinths, sacred paths and "songlines" to activate the
human body and the Earth body. (For more information about Whitney's work, contact her at
visunag@cs.com and visit her website: wwvv. whitneykrueger, com)
The Living Wat
of Chengdu China "-' .....
that living wamr is i'lnj~eii:lant. ~o one in
China ever argued wi~e or fa~ to un-
demtand how impormm this is to the quality
of human life.
The Chengdu projec~ is an extension of
my philosophy ofwha~ it rakes to live on the
planet, the necessity of working together,
bringing togethe~ unlikely pampers, and form-
lng new relationships. It is aboul building
new kinds of connections and relationships
~ o~ while grappling with the consequences of a
globalized class system and the economics of
dominance, possession, exploitation, and
greed. The Chengdu project and the Keepers
of the Water projects in both China and
bet have taughl me a lot about working cross
culturally. It is about building connections,
Aerial ~ew of~e Living Water Garden what eveW human being needs and wants.
Water as the source of all life can form the
By Bevy Damon and healing aris, &e Chinese perspective is basis of such connections.
informed by and forms ~e natural world. In My involvement as an an activist work-
'~ EARS ~N DOWN MY FACE as 1 the last thi~ years because of intensive in- lng with water began in 1985~and my in-
_returned to Chengdu after our fi- dustrialization the people have lost much of volvement in an projects in China in 1993. I
~naldinner. ltwasJuly, 1998.The their connection to the natural environ- havebeenlearningandthinkingaboutwater
~ park, ~e Living Water Garden, ment~and many do not know what to do to for sixmen years. It isn't about how I like ~o
was finally finished. This 6-acre water qual- correct this mndenq. What they do know is swim or ~lp down a refreshing glass of cold
ity, environmental education park built with
the Fu-Nan River renovation bureau of the Consumed W~ands at LMngWater Gardens
ciw ofChengdu, Sidman province, China had
been conceived as an elegant combination of
was designed to champion low technolo~
a~d 1o provide recreation, entertainment, and
education for a local population of nine mil-
lion.
Publicly, it was declared an ~cellent park
by Beijing designem. 1 was given honora~ citi-
zenship i~ Chengdu and in 1998 in ~bronto
die l,iving Water Garden rcceived lhc top
award for walerffont design.
China has a long histoW of obse~ing
nature and respecting the enviromnent. From
Feng Shui to Chinese medicine, philosophy,
and art as well as its many Wpes of martial ~ .
~0 [ ~ r t h kl g h t · Fall2om
· .r Garden
water, but rather about H20 molecules and
Messages from
the price of drinking water, how waler makes
all life, and how rituals and belief systems
Water
meaning for every human being.
%~ co'
The rools of my' fascination with water
can betraced to manyofmyearlyexperiences, ~T~HERE IIS A .JAPANESE researcher who is doing won-
from early school paintings in the style of lderful things with water. He is playing music to it. He
Arthur Dove to installations made from wa- prays over it. He writes to it. Then he freezes it. His
ret-worn tree trunks or sunflower seeds, name is Masaru Emoto. And with a highly technical process
Playing in creeks, building dams, rafts, of photography using a dark field microscope that can pro-
duce images of the molecular structure of water after it has
canoeing in back waters, and long solitary
been frozen, he produces astounding images. Pure water from
walks on the beach all informed my art and
mountain streams shows structures like jewels, intricate and
my life. My passion for science is nearly as symmetrical. Polluted water produc~s tortured images remi~
large as my love of art making. I have discov-
niscent of diseased cells. After prayers over polluted water,
ered that the scientist who invents also makes the frozen droplets display the beauty of snowflakes, almost
large leaps of imagination--and imagination as ifa healing had begun. Heavy metal rausic creates a wound-
usually precedes invention, like molecular structure in the water while Beethoven's
Each of us as members of the human Pastorale gives forth a design that the finest artist would be
community face ~he challenge of understand- proud of. (See below for images.)
ing our environmem sufficiently t~ preserve When Mr. Emoto tapes words of hate to a beaker of water
or restore it. We cannot fight these battles over or a name like "Hitler" a disturbing image emerges from the
and over. process that looks diseased. If he writes words of love and
What is at stake is the very quality of life, peace to the water, again the beauty comes forth in the mo-
Ihe living bodies we have inherited, and the l¢cular structure. What is happening, according to Masaru
recognition that our DNA is immutably de- Emoto's research, is that water is alive and susceptible to our
pendent upon wa',er. Yet it seems as if the thoughts and feelings as well as to the environment in which
more removed human beings become from it exists. ~We now have profound evidence that we can post~
the sources of life-sustaining systems the less tively heal and transform ourselves and our planet by the
they are able to act to protect those systems, thoughts we choose to think and the ways in which we put
those thoughts into action.'
What do you know about your water? Do you
Mr. Emoto's boOk is Messages from Water. It contains the
know what is in it.* Where does it come from
results of his worldwide research with the astonishing photos
and where do all the things you put into it
of water reacting to the environment and the people around it.
end up? See Waten~WellnessGo0ds.com for images and more.
The Living Water Park, as well as some
o£ my other projects, encouraged people to
look at the world more carefully, to value each 'Water at Water
Fujiwara Fujiwara
creek, river, and groundwater aquifer. It prod- Dam, Dam, after
ded ii,em to consider the impact of modern before offering a
chemical cleaning materials from laundry and offering a prayer
housecleaning, and from oil leaks in their car. prayer
'llm story of the making of the park itself
continued on page 32
[ a r t h t i g h t * Fall 2ool
Living Water Garden ideas were appreciated so much that they were not been decided or designed. 1 knew I needed
continued from page 31 going to give us the largest piece of land avail- to be there. Fortunately l had just received a
able, a six-acre site. All the parks along the large artist fellowship, so I could go immedi-
begins in July, 1995.1 was directing a project waterfront of the city of Chengdu had already ately. The Chinese provided me with hous-
called Keepers of the Waters in Chengdu, the been planned, so this meant a major change lng, an office, a phone,_a, nd as m~h food as
capital of Sichuan province. I had been in- in the city's official plans. This process of be- they could.
project by government of- ginning again was something extremely dif- Initially 1 thougl~l~ee .t~.~ ould
vited
to
direct
the
be
ficials and concerned university professors ficult for a bureaucratic government organi- enough time to assisting, d-direct ~ worl~
who had asked me to stay in the city. ~We zation to do. It was particularly hard when it was ten months ~l~'iI returned t~o-2~e
need you,' they said, and "we will help." that organization had very limited funding. U.S. Jon Otto becamd ~41~o ec[,~,irectOr'a~ ~d
So began a long process to get permis- When I returned to the U.S. in Novem- I the design directo~lfalg wit'h:num~e~s
sion for numerous public events, perfor- ber, I set up an office to begin work on the Ch~nesewhoheldsir~ar t~tles,Tlveconstmc-
mances, and temporary installations about Chengduproject. Suddenlyin February 1997, tion teams, and man"~ individuals. Who
was
water quality, along the Fu-Nan River. In this we heard that the park had begun. I dropped in charge? That question was never answered.
process I learned about the Fu-Nan River everythingandleft forChina, travelingviathe The park is shaped like a fish, a design
renovation project. Thefiveyearplaninvolved Netherlands to do some much needed re- Margie and l-decided on together. Margie
flood control, water quality restoration, and search. How could the Chinese officials be- drew a mouth, eye, and body shape into the
cxeatingtheinfrastmctureforbothwastetreat: gintoconstructthepark?Somanydetailshad designs, while I filled in the details. The set-
ment and a nineteen kilometer stretch of
parkland along both sides of the river. "Water Lilies" --P~r
I casually suggested that they make a park
to educate their citizens about water quality
and cleaning. They asked if I could do it.
When 1 said yes, they said dependiis~ on the
success of the performances, they would try
to invite me back.
After Keepers of the Waters project be-
came an overwhelming success, a broadcaster
on the national TV station, 'IV Shanghai,
ported that he thought there needed to be
something permanent. The Chinese then
agreed to provide me with a hotel and meals
ill came back. I returned th March, 1996 with
landscape designers Margie Ruddick and Jori
Otto. We all worked with no salary to begin
the designs. We met with 45 officials and went
in search ora site.
One week later, we were told that our
E a r t h L I g h t ' Fall 2ool
Ginko leaf-shaped flow forms make constructed wetlands function better
tling pond forms the eye, and the iris of the tion as a site of water purification, temporary tragedy that most of us are forced
eye became a living water fountain. When the park was first tested for the to give up our visions or poetry and forget
Flow forms carry the water down towards quality of its water flow and found to actu- how we want the world to change. We forget
the constructed wetlands, bringing oxygen ally work, a great relief swept through my howendlesslyinventiveandimaginativeeach
into the water system. Flow forms also con- body. But there remained several big hurdles, human being can be.
neet thewater to thepondsandtheparkends official party approval, and many small de-
with a clean water play area and an amphi- tails.
theater. The floodwall was transformed into The process of Communist Party ap-
steps for dtizens to explore the edge of the proval took tWo months. I stayed throughout
river. We planted over 100 rare trees and plants this time, filling my days by taking students
on the slope of the settling pond. to the park, lecturing, and meeting with
With the help of Chinese artists Dengle groups. There was little else to do. No one
and Zheng Wenjen, I began to design the flow dared to do anything. Many officials didn't
forms and other sculptures about water and speak to me during this time. As pail of the
the life. In the end, we carved thirty-three flow approval process, mayors from many cities
forms in stone, a living water drop fountain, visited the park, along with many reporters
and a chambered nautilus fountain near tbe and other high officials from Beijing. Only
clean water pond. when the park had received full approval did
There was great pressure to finish because 1 learn about ali these official visitors.
of terrible deadlines imposed by the govern- As with most big projects, I didn't know
merit on all public projects. The reality that what I would encounter. But once I was on
the park was started only a few months ago my way, there was no turning back, though
did not exempt us fr0m these crushing dead- it's like climbing out o f a hole. Along the way
lines, there are peepholes, periscopes, as I have dis- Bets)~ Damon has focused on water
It was to our great good fortune that an covered dreams, found old friends, and got- as an issue and metaphor in her work
expert on bioradiation was in Chengdu. Huan ten closer to my family and children, since 1985.
Shida was the only person west of Shanghai I have been called both practical and vi-
with this knowledge, and he took on this park sionary in doing work that is both Poetic and She ca n be reach ed at
with all his heart and no funding. He built a pol't'cal. Aren t we all wanting to live practi- bdamon 7369@aoI. com, or at Keep-
concrete test site in it, tested all the plants, cally and keep our visions? ers of the Waters, l~O. Box 80637,
and designed the constructed wetlands for the As human beings we have the potential Portland, OR 97219; (503) 234-
park. Without him the park would not func- to build many complex things. It is a con- 9774.
EarthLIght · Fall2oo~
Council to OK park funds, Waterworks Park proiect moves ,orward
' City councilors a~reed to ~ive $200,00~} in additional lundin6 to the Wat~o~ks PaA
delay Scott Blvd. fire station
By Mike McWilliam which met ~ ~ i~o~al budg- ~e're going to have to defend
T~e Daffy Iowan et session ~esday, must still using p~ple's wa~r ~d sewer
v6~ ~ m~e the budget actions bills to help pay for a w~ng
~elowaCityCityCo~cilon fin~atafo~almeeting, park," said Mayor Ernie
, ~esday igformally approved In 1994, the city purchased Lehman. "I think we should
';ad~tional ~ding for the new 230 a~es ofl~d no~h ofln~r- build this [Waterworks] park,
Wate~orks Park, w~le post- s~ 80 near Dubuque Street to but now is not ~e fight time."
~gthe constmctionofanew build the Waterworks Park, Money from water bonding
fire s~tlon, a long-t~e city p~- w~ch would ~clude a sta~-of- would mainly cover expenses
o~ty, for at least two years to the-a~ wa~r-treatment facility, pe~ent ~ ~ng the pl~t,
co~ ~ a budget shd~l. ' shelters, trails, and an ~ncluding a paring lot, sto~
' Funds totaling $200,000 to amphitheater to be used for sewers, ~d erosion control.
develop a West Side Park ~ll educational p~oses. "The public has to buy into
likely be relocated ~ pro,de ~e'co~cil vo~ to t~m the t~s t~ng, ~d a way ~ do ~at
for adding p~]ne ~S~ w21d ~o~.~a~r-~nd]ng ~ds is to ensure that young people
floWers, park shelters, trails, alloca~d fo~ Waterworks Park use it for education," said
and an amphitheater, to the in fiscal year 2002 from ~
Wate~orks P~k. ~e c0~dl, $176,000 to $76,000. See C0UHClL, PaCe 6A Sour=a:Dl~e~tch · NF/DI
Marian Karr
From: Kris Grinstead [kds-grinstead@uiowa.edu]
Sent: Tuesday, April 02, 2002 7:58 AM
To: council@iowa-city.org
Subject: Free shuttle
Please consider continuing the free shuttle bus through the su~er. It was
discontinued last year during the students' break. There are many
non-students who are patrons of the service, too.
Thank you.
Kris Grinstead
..... Original Message ....
From: Joe Fowler
Sent: Tuesday, April 02, 2002 10:57 AM
To: 'kris.grinsteaci@uiowa.ed u'
Cc: Steve Atkins; Lisa Mollenhauer
Subject: free shuttle
The biggest demand for transit service is during the winter months. To meet this demand Iowa City Transit decided lost
year to increase service on the OakcreastJTowncrest routes during the school year. To fund this we had to make a
reduction in another area It was decided to reduce the Shuttle because it circulates in the neighborhoods close to the
downtown and because there are other routes that service the area. This change has been very successful. We have
tracked the ridership weekly and have seen increase between twenty and thirty per cent on these routes.
Without additional funding Iowa City Transit must be creative in finding ways to increase service. The accessibility to other
routes and the proximity to downtown made the reduction in Shuffle service the logical choice to allow us to increase
service to other parts of the community. If additional funding were available we would consider year round Shuttle service.
Marian Karr
From: Tom Carsner [carsner@inav.net]
Sent: Monday, April 01, ;)002 8:02 PM
To: cou ncil@iowa-city.org
Subject: Support Public Power
To The City Council:
I urge you to sign only a short term lease or no lease at all with
MidAmerican Energy. I urge you to adequately fund a study to gauge the
feasibility of a public power utility in Iowa City. I urge you to
establish a citizen's committee to perform the study and to charge the
co~ittee with solicitation of wide public input to the process.
Tom Carsner
1627 College Court Place
Tom Carsner
1627 College Court Place
Iowa City, IA 52245
carsner@inav.net
319-338-9335
To: Letters Editor 31 March 2002
From: John Neff
2305 MacBride Drive
Iowa City, IA 52246
338-6105
The Iowa City Police Department visits selected bars specifically to check for underage
drinkers. The bars are selected on the basis of complaints and past experience. Each month
they prepare a bar check report giving the number of visits to each bar and the number of
persons charged in each bar with possession of alcohol under the legal age. The report
also gives the year-to-date totals and the ratio of arrests to visits. Copies of this report are
placed in the City Council members information packet and posted on the web.
The year-to-date totals fi.om the December 2001 report provide data for the entire year.
A summary based on all 2001 data tells where underage drinking was taking place prior to
the adoption of the new ordinance regulating the sale of alcohol. At the present time both
the City Council and the bar owners are waiting the results of the trials on charges made
under the new ordinance, so we will have to wait to see if enforeement of the new
ordinance will alter the behavior of underage drinkers.
Of the 62 bars listed in the report, 13 bars were not visited. An underage dhnker would
be conspicuous in most of these bars and probably would not be served. Of the bars that
were visited there were no arrests in 22 bars, there were 31 arrests in 15 bars, and there
were 720 arrests in 12 bars. This indicates that about 96% of the underage drinking occurs
in 12 bars.
The 12 bars are listed with the name of the bar and the number of arrests:
Vine 12, Et Cetera 13, Ma,'mis 24, Airliner 27, Brothers 37, Bo James 41, Que 61,
One Eyed Jakes 70, Fieldhouse 71, GA Malones 76, Union 90, Vitos 95,
Sports Column 103.
Marian Karr
From: Jeff Davidson
Sent: Tuesday, April 02, 2002 3:55 PM
To: 'ktj30@yahoo.com'
Cc: *City Council; *City Manager's Office; *City Clerk's Office; Karin Franklin; Joe Fowler; Ron
Logsden
Subject: RE: your email of April 2
Hello Kris. Your email to the City Council of April 2 was forwarded to me for reply. With respect to North Dodge St, the
roadway geometry you refer to is a temporary situation. The multiple lanes in the intersection were constructed three
years ago as part of the Scott BIvd extension project. It was constructed with multiple through lanes to tie into the North
Dodge reconstruction project, which will build a 4-lane street between Scoff Blvd and 1-80. The two northbound through
lanes on Dodge Street that you refer to will extend to the north city limits. The North Dodge reconstruction project is
currently in design and slated for construction in FY04 or 05. In the meantime we are monitoring the merge area you refer
to, and it is not a high collision location.
With respect to the transit shuttle stop, I know the bus stops on Dodge Street are very heavily used. The Transit Division
likes to remind people that are delayed by the bus that you would be delayed for a much longer period of time if all of the
bus riders were in individual cars ahead of you. I will copy this to the Transit Director and Transit Manager, and they may
have additional information for you.
Hopefully this answers your questions.
Jeff Davidson, Asst. Director, Dept of Planning a Community Development
..... Original Message .....
From: Lisa Mollenhauer
Sent: Tuesday, April 02, 2002 3:25 PM
To: Jeff Davidson
Subject: FW:
..... Original Message .....
From: k t [mailto:ktj30@yahoo.com]
Sent: Tuesday, April 02, 2002 2:46 PM
To: cou ncil@iowa-city.org
Subject:
Why are there two lanes at the intersection of Scott
Boulevard and North Dodge Street? When you are
heading towards TGI Fridays on North Dodge there is a
light for the ACT traffic. The right lane immediately
has to merge after you go through the light into the
left lane but what usually happens is someone has to
pull up in the right lane and try to race all the
other cars in the left lane. Why not just make the
right lane a turn lane onto Scott Boulevard and only
let thru traffic use the left lane? People are
constantly cutting in front of other cars because they
don't want to wait in the line in the left lane.
Also, why can't the free shuttle bus stop on Dodge
street be moved? Between Burlington and Bowery that
bus stops three times and holds up all kinds of
traffic. Why can't there just be two stops on that
street? If the one on the corner could be removed
that would alleviate all kinds of traffic congestion
during busy times,
Kris Jones
Marian Karr
From: Gerald L. Sorokin [gerald-sorokin@uiowa.edu]
Sent: Tuesday, April 02, 2002 3:34 PM
To: cou ncil@iowa-city.org
Subject: Jewish Community to Hold Israel Solidarity Program
Dear City Members,
On behalf of the Jewish Community of Iowa City, I'm pleased to invite you
to participate in our Israel Solidarity Program on Sunday, April 7 at 12:15
pm at Hillel. The details are below. If you have questions, please feel
free to contact me at 319-338-0778, gerald-sorokin~uiowa.edu.
Thanks very much.
--Jerry Sorokin, Hillel Director
Event: Israel Solidarity Program
Date: Sunday, April 7, 2002
Time: 12:15 pm
Location: Hillel, 122 E. Market St., Iowa City
Members of the Jewish Community of Iowa City will assemble on Sunday, April
7, 2002, at 12:15 pm at Hillel, 122 E. Market Street, to demonstrate
communal unity and solidarity with the State of Israel. The program will
include songs, prayers, and discussions. It is intended to express support
for the safety and security of Israel and all people of the Middle East, to
raise our voices in hope for an end to violence and the resumption of
diplomacy. The program is free and open to the public.
For additional information, contact Hillel Director, Gerald L. Sorokin, at
319-338-0778, gerald-sorokin@uiowa.edu.
Hillel: The Foundation for Jewish Campus Life has adopted the following
statement of principles on Israel: "Hillel is committed to Israel's right
to exist and flourish as a Jewish state within secure and recognized
boundaries."
Gerald L. Sorokin, Director
Aliber/Hillel Jewish Student Center
122 E. Market St.
Iowa City, IA 52245-1730
319-338-0778
fax: 319-338-1482
e-mail: gerald-sorokin@uiowa.edu
Think Spring
Think Life
Quit Smoking
~ there is help ~
JOHNSON COUNTY
FREEDOM FROM SMOKING
PROGRAM
A F R E E seven-week 'Quit Smoking'
program for pregnant women, women
of childbearing age, and their spouses.
Win Weekly Incentives!
gift certificates, promotional items, and morel
Dates: Tuesday Nights, April 9th-May 21st
Time: 6:30-8:00 p.m. (The first session will end at 8:30 p.m}
Location: Johnson County Department of Public Health
1t05 Gilbert Court, Iowa City
SIGN UP NOW! Call Ericka at (319) 356-6040 ext 124