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HomeMy WebLinkAboutMinutes-09/12/2005• • September 12, 2005 The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m., on Monday, September 12, 2005. Mayor Timothy J. Hurley in the Chair. Roll Call: Kincaid, Cole, Greenwood, Clark, Schmitt, Gunderson, Welper. Moment of Silence. Pledge 122283 of Allegiance: Robert Stringer, Human Resources Director. Welper/Kincaid that the Agenda, as amended, for the Regular Session on Monday, September 12, 2005, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 122284 - Welper/Kincaid that the Minutes, as proposed, for the Regular Session on Monday, September 6, 2005, at 5:30 p.m., and September 8, 2005 Executive Session be accepted and approved. Ayes: Seven. Motion carried. Presentation by Paul Hansen of U.S. Flag flown over Afghanistan. Mayor Hurley read a Proclamation declaring War/Missing In Action Recognition Day. CONSENT AGENDA 122285 - Welper/Kincaid September 16, 2005 as Prisoner -of - that the following items on the consent agenda be received, placed on file and approved: a. b. Resolutions to approve the following: 1. Resolution approving Schedule AP640, pp. 1-95, dated September 2005, in the amount of $1,546,705.78, a copy of which is on file in City Clerk's office, together with recommendation of approval of Finance Committee. Resolution adopted and upon approval by Mayor assigned No. 2005-834. 12, the the 2. Communication from Police Chief transmitting request of Rolling Thunders Inc., Iowa Chapter #1 to use the parking lot on West 4th Street to release Helium filled balloons and conduct a rifle salute after they hold Prisoner of War -Missing in Action Recognition Day on September 17, 2005 at the Five Sullivan Brothers Convention Center from 1:00 - 4:00 p.m. Resolution adopted and upon approval by Mayor assigned No. 2005-835. Motion to approve the following: 1. Mark Gallagher, Sports Manager, to attend Iowa Park and Recreation Association Fall Conference in Bettendorf, Iowa on September 20-21, 2005, with costs not to exceed $162.00, including use of city vehicle. 2. Monty Frana and Lisa Campbell, Police Sergeants; and Aaron McClelland, Police Officer, to attend Rangemaster School in Waterloo, Iowa on September 26-30, 2005, with costs not to exceed $595.00. 3. Joe, Leibold, Police Lieutenant, to attend Background Investigations School in Omaha, Nebraska on September 14-16, 2005, with costs not to exceed $594.78, including use of city vehicle. 4. Matthew Klunder, Des Moines, Iowa $938.54. 5. Lance Teisinger, Moines, Iowa on $853.89. 6. S. Klemas, Mason Moines, Iowa on $730.00. Cerro Gordo County Deputy, to attend LEIN Course in on April 25 - May 6, 2005, with costs not to exceed Black Hawk County Deputy, to attend LEIN Course in Des April 25 - May 6, 2005, with costs not to exceed City Police Investigator, to attend LEIN Course in Des April 25 - May 6, 2005, with costs not to exceed 7. Jeff Olson, Cedar Falls Police Captain, to attend LEIN Course in Des Moines, Iowa on April 25 - May 6, 2005, with costs not to exceed $1,067.94. September 12, 2005 Consent Agenda continued 8. David Kelly, Floyd County Deputy, to attend LEIN Course in Des Moines, Iowa on April 25 - May 6, 2005, with costs not to exceed $900.43. 9. Shiloh Mork, Webster City Police Sergeant, to attend LEIN Course in Des Moines, Iowa on May 16-27, 2005, with costs not to exceed $836.92. 10. Jason Leonard, Waverly Police Sergeant, to attend LEIN Course in Des Moines, Iowa on May 16-27, 2005, with costs not to exceed $609.99. Page 2 11. David McDonald, Bremer County Deputy, to attend LEIN Course in Des Moines, Iowa on May 16-27, 2005, with costs not to exceed $561.02. 12. Steven Petersen, Black Hawk County Sergeant, to attend LEIN Course in Des Moines, Iowa on May 16-27, 2005, with costs not to exceed $765.97. 13. Duane Oldenburger and Collin Freesemann, Butler County Deputies, to attend LEIN Course in Des Moines, Iowa on May 16-27, 2005, with costs not to exceed $1,214.03. 14. Greg Bagsby and Christopher Leach, Rehabilitation Specialists, to attend Inspector/Risk Assessor certification training in Dubuque, Iowa on November 14-18, 2005, with costs not to exceed $3,800.00, including use of city vehicle. 15. Ryan Muhlenbruch, Police Officer; and Wendy Drinovsky, Police Department Data Systems Manager, to attend Traffic and Criminal Software Group meeting in Des Moines, Iowa on September 14-15, 2005, with costs not to exceed $257.80, including use of city vehicle. 16. Cammie Scully, Director of Cultural & Arts; and Kent Shankle, Curator, to attend Haitian Art Society Conference in Montreal Canada and return art work to Toronto, Canada and Nyack, New York on September 21-28, 2005, with costs not to exceed $2,640.00, including use of city vehicle. 17. Adam Galbraith, Police Investigator, to travel to Rochester, Minnesota on September 9-12, 2005, with costs not to exceed $284.00. 18. Communication from Mayor Hurley transmitting recommendation of appointment of Ed McCann to the Airport Board, with termination expiration date of January 14, 2006. c. Beer/Liquor License Permit Application Class C Shad's Place, 110 East 11th Street (Renewal) (Expires 9/3/06) (Includes Sunday Sales) d. Fireworks Display Application Waterloo Black Hawks, Inc., 125 Commercial Street on October 1, 2005 e. Haunted House Application Gary Hall dba SG Promotions, 257 Ansborough Avenue (Cattle Congress) October 8, 14, 15, 21, 22, 28, 29, 30, 31 f. Bonds. Ayes: Seven. Motion carried. UNFINISHED BUSINESS 122286 - Clark/Gunderson that request of Councilperson Clark to rescind the agreement Controls, Inc. at a cost of $360,925.00 for the Five Sull Convention Center Facility Improvement, Phase II, and inst Official/Maintenance Administrator to prepare specifications and received, placed on file and approved. on with Johnson ivan ruct seek Brothers Building bids, be Prior to a vote on the above motion, the following comments were heard. Todd Davis with Johnson Controls, Inc., reported in the middle of 2003 they were engaged by the city to look into ways to save money at the Five Sullivan Brothers Convention Center. At that time, they worked with Gilmor & Doyle using some of their resources and found some savings, presented them to Gilmor & Doyle. At that time, Gilmor & Doyle presented them to the city. The city seemed interested and wanted to move forward and asked Johnson Controls to put some costs together, what it would cost to capture those savings. • • September 12, 2005 • • Unfinished Business continued Page 3 Mr. Davis stated that this is an old issue that was started in 2003 in public forum, and up to this point Johnson Controls has responded to the request of the city to find the savings and solutions to get some energy efficiencies. Mr. Davis reported that in 1997 it was put out to bid, Johnson Controls was the low bidder, and their controls were installed at that time. Mr. Davis stated they were engaged in 2003 to find savings to try to capture some energy efficiencies in the facility using the equipment that was already there at that point. Mr. Davis stated their Phase I, which was passed in October 2004 for $119,000.00, is complete. Mr. Davis stated they had an electrical subcontractor for that phase. Councilperson Welper asked if any of the local contractors will have a shot at doing any of this work, and Mr. Davis responded absolutely. Mr. Davis stated he was here about eight weeks ago for the energy and maintenance study, and there were a lot of questions regarding that issue, but this issue is a separate entity or opportunities. Mr. Davis stated that issue is looking at the energy, maintenance, philosophies, strategies and equipment, and although they have incorporated some of their results of the Five Sullivan Brothers in its current state, they would factor that out if they went ahead and made these improvements. Mayor Hurley asked if Johnson Controls had committed any funds since the council approved the contract on August 22, 2005. Mr. Davis stated that typically there is an expenditure right away, and they will get that amount to Mayor Hurley. Councilperson Welper stated the local contractors are saying they need to bid on this project, but it sounds like they will bid on this project. Mr. Davis responded they will have subcontractors on this project. Mr. Davis stated they do not agree with the motion to rescind the contract as they presented their contract in good faith, provided solutions and cost saving estimates that will provide a proper business case, and they will subcontract out a portion of this project. Mr. Davis stated in 2003 Johnson Controls was engaged by the city to find savings at the Five Sullivan Brothers Convention Center, they found the savings, presented them in a preliminary report through Gilmor and Doyle to the city. At that point, Gilmor and Doyle and the city asked if Johnson Controls could quantify the cost to make those savings a realty, and Johnson Controls did that. Mr. Davis stated there have been many ups and downs and dealings with the Ramada, but Johnson Controls has done all they were asked to do by providing all the results, all the resources and they incurred a lot of costs developing those results. Mr. Davis stated that a portion of this contract will be subcontracted. Mayor Hurley asked Johnson Controls what is the difference between this situation and the often -cited lawsuit in Des Moines with Siemans. Mr. Davis responded he has read it many times, including the appeal and the state statute, and there seems to be a lot of gray area. Mr. Davis stated it seems to him it is in defining whether construction is a verb or a noun. Mr. Davis stated they did a similar project for the city in October 2004. Mr. Davis stated they have customers who after the initial bidding process put their system in, upgraded them over a period of time and they did not go out to bid for the upgrade. Mr. Davis stated the Siemans lawsuit was for a brand new convention center/ice rink in Des Moines, and after it was bid Johnson Controls was the winning bidder. Jim Walsh, City Attorney, stated he agrees that it is a gray area, and if we want to end up with the Court of Appeals or Supreme Court deciding, then we can continue with this contract because that is where it will end up. Mr. Walsh stated the timing of this is different than the timing of the previous one, and the reaction from the other interested parties is different. Mr. Walsh stated in prior dealings with Johnson Controls, up to this recent agreement, we did not have a Court of Appeals saying that a proposal accepted on the basis as we have done was in violation of Chapter 384 of the Code, of Iowa, and now we have one. Mr. Walsh stated that now that we have one staring us in the face and the other parties have made it quite clear they would be happy to go to court on this, then that is where we will end up. Mr. Walsh stated there are other alternatives, which he prefers the city pursue, which may still end up with Johnson Controls doing the work, but which would avoid the legal mine field we are talking about. Mr. Walsh stated he would be willing to go to court if the council would like to do that because he is sure that is where the city will end up if we proceed with this contract. Mr. Davis stated his concern is that his costs are out there, all their energy savings and data are out there. Mr. Davis stated from the standpoint of an RFP, if this were five or six months ago, he would have no problem with that because he feels confident they can beat anyone in the market place. Mr. Davis stated unfortunately since the contract has been approved, all of their information, data and savings are now public record, and it puts them at a competitively disadvantage as the city goes forward with an RFP. September 12, 2005 Unfinished Business continued Councilperson Welper stated it seems to him there is still a lot of confusion as to what we are doing because we still could be farming out this same $360,000 to local contractors. Councilperson Welper stated he would like to see everyone sit down at the table and figure out exactly where we are going. Page 4 Welper/ that this item be tabled. Motion failed due to a lack of a second. Councilperson Schmitt stated he thinks we are between a rock and a hard place, that the council made the best decision they could at the time with the information that was given them, but circumstances have changed. Councilperson Schmitt stated that obviously the court action in Polk County is one of them. Councilperson Schmitt stated he agrees with Johnson Controls that with their contract information being made public, it does put them at a disadvantage. Dave Krejchi, with Dalton Plumbing & Heating, stated he thinks the right way to do this is to put out an RFP as it happens to him every day when he bids, and he shows people energy savings. He stated you do put time into bidding and some times you lose the bid, but he feels the right thing for the council to do is put this out for bid as the city might be able to get a general contractor who could general this themselves and save the city even more money. He stated he is a contractor who probably won't even bid this job, but on behalf of his constituents in the audience there are some who could do the job and do good work. Mr. Krejchi asked the council to reconsider. John Thomas, Young Plumbing & Heating, stressed that they are not against Johnson Controls, its just a matter of how this contract was arrived without a competitive bid process. Mr. Thomas stated they feel this contract should be put out with an RFP and bid competitively. Mr. Thomas stated the competitively bid process does work and will save the city money. Mr. Davis stated this process has been in a public forum since 2003, its after the contract has been signed and now there are issues with it. Mr. Davis stated that from a competitive bid disadvantage, once all their information is out there, it is almost impossible for them to put together a winning bid. Mr. Walsh stated the original proposal from Johnson Controls was accepted at a city council meeting, subsequent to that there was a vote to reconsider at the next meeting, that vote passed, this is the next meeting following that meeting, and this is as if it were the first time it was on the agenda. Mayor Hurley asked if there were two separate things on the motion: to rescind the agreement approved on August 22, 2005 and instruct Mr. Cutwright to prepare specifications and seek bids. Mr. Walsh stated there are two separate items on the motion with the thought to move ahead on the project, but they could be separated or modified, but the proposed motion says to start over with a new bid package from Mr. Cutwright's department. Councilperson Welper asked if he would be voting against something he agreed upon two years ago. Mr. Walsh responded this proposal from Johnson Controls voted on by the council on August 22, 2005 was the first it was put on paper for the city. Mr. Walsh stated that Johnson Controls schema for resolving the controls issue at the Five Sullivan Brothers Convention Center has been discussed for a couple of years, but this proposal was not in front of the council until the meeting it was approved. Mr. Walsh stated that for the past week everyone has understood that the approved contract was in severe jeopardy, and now the council is deciding to start over or proceed with this one. Mr. Walsh stated he understands Mr. Davis' point about Johnson Controls bid being in the public, but the Court of Appeals' decision was in March or April this year, and Johnson Controls has had as much time to review the decision and understand the implications as we did. Mr. Walsh stated Johnson Controls' data became public information as soon as they sent it to the city, we have been receiving information on the energy proposals for Five Sullivan Brothers Convention Center for some time now, they have been discussed thoroughly with Ramada Inn, and we have had discussions on the estimates. Mr. Walsh stated that Johnson Controls did not have the exact prices they were going to charge for those products until this proposal came up and to that extent it does create a difficult problem for them, but on the other hand they are also ahead of the game as they know exactly what is required and the others will have to figure it out. Mr. Davis stated he disagrees with Mr. Walsh because he does not see where they would be a head of the game when someone else has all their information and it puts Johnson Controls at a distinct disadvantage. Mr. Davis stated that on August 18, 2003, the city entered into a contract with Gilmor & Doyle to provide mechanical and engineering services to design a Johnson Controls DDC system and associated electrical work, and this was in a public orum over two years ago. September 12, 2005 • • Page 5 Unfinished Business continued Mr. Davis asked why didn't this come up over the past two years, why did it come up after the contract was signed. John Thomas stated that as mechanical contractors it happens routinely where a price will go out, and then competitively bid. Mr. Thomas stated if this were an engineered product by Gilmor & Doyle then it should have gone out for bid as Gilmor & Doyle is specifically contracted to work with the city, and that is why they feel it should have gone out for bid. Councilperson Gunderson stated that the state law under 384.96 says that city improvements exceeding $25,000 the governing body shall advertise and seek bids. Councilperson Gunderson stated that was his concern when it came up three weeks ago, that the city has a $360,000 contract that we did not seek bids, but just gave to Johnson Controls. Councilperson Gunderson stated he feels the city is just rectifying the statements they made a couple of weeks ago, that we should have followed the rules and Mr. Cutwright should have followed the rules as he must be aware of this. Councilperson Gunderson stated that earlier today the city took bids for the Police Department and Fire Department's t -shirts for a couple thousand dollars, but we don't seek bids for a $360,000 improvement on a public facility. Councilperson Gunderson stated he is in favor of preparing specifications and seeking bids on this matter. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Motion carried. 122287 - Greenwood/Cole that communication from Director of Waterloo Housing Authority transmitting recommendation of award of contract in the amount of $107,536.00 to Waterloo Boiler Company in conjunction Ridgeway Towers/Boiler Installation Project, be received, placed on file and "Resolution approving award of said contract", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-836. REPORTS 122288 - Gunderson/Welper that communication from Chairperson of Citizens Compensation Board transmitting recommendation on Mayor and Council Member's compensation, be received, placed on file and approved. Ayes: Seven. Motion carried. DOCUMENTS 122289 - Cole/Schmitt that communication from City Engineer transmitting Change Order No. 2 for a net decrease of $8,440.50 for work performed by Peterson Contractors, Inc. of Reinbeck, Iowa in conjunction with F.Y. 2004 Ferguson Distribution Center Sanitary Sewer Extension, Contract No. 682, be received, placed on file and approved and Mayor authorized to execute same. Ayes: Seven. Motion carried. 122290 - Cole/Schmitt that communication from City Engineer transmitting Completion of Project and Recommendation of Acceptance of Work performed by Peterson Contractors, Inc. of Reinbeck Iowa at a total cost of $199,589.50 in conjunction with F.Y. 2004 Ferguson Distribution Center Sanitary Sewer Extension, Contract No. 682, be received, placed on file and "Resolution approving said documents", be adopted and two-year Maintenance Bond be received and placed on file. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-837. 122291 - Cole/Schmitt that communication from Senior Planner transmitting Final Plat of Deeds Replat Block 17, together with Staff Report, Certificate of Survey, Deed of Dedication and Report of City Engineer, be received, placed on file and "Resolution approving said final plat", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-838. September 12, 2005 Documents continued Page 6 122292 - Cole/Schmitt that communication from Community Development Director transmitting agreement with U.S. Department of Housing and Urban Development for Section 108/BEDI (Brownfields Economic Development Initiative) grant for $8,220,000.00 Section 108 loan to be used to encourage redevelopment of the Rath Area, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-839. 122293 - Cole/Schmitt that communication from Building Official/Maintenance Administrator transmitting Completion of Project and Recommendation of Acceptance of Work performed by McGill Restoration of Omaha, Nebraska in conjunction with East and West Fifth Street Parking Ramps Deck Waterproofing Repair, be received, placed on file and "Resolution approving said documents", be adopted and Mayor authorized to execute same and five year labor and material warranty be received and placed on file. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-840. 122294 - Cole/Schmitt that communication from Community Planning and Development Director transmitting Offer to Buy agreement with R & N Investment Properties L.C. to purchase the TruGreen Lawn Care property located at 327 West Third Street for $190,000.00, plus approximately $5,000.00 in closing and incidental costs, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-841. 122295 Cole/Schmitt that communication from Community Planning and Development Director transmitting proposal from Tallgrass Historian L.C. of Iowa City, Iowa to complete an architectural/historical source report at a cost of $1,500.00 in conjunction with acquisition of the Coca Cola Plant and the Waterloo Bowl Inn sites as part of the US 63 Reconstruction Project, be received, placed on file and "Resolution approving said proposal", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-842. 122296 - Cole/Schmitt that communication from Director of Waterloo Housing Authority transmitting Contracts, Bonds and Certificates of Insurance in the amount of $107,536.00 with Waterloo Boiler Company in conjunction with Ridgeway Towers/Boiler Installation Project, be received, placed on file and "Resolution approving said documents", be adopted and Mayor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2005-843. ORDINANCES TO BE ADOPTED 122297 - Schmitt/Gunderson that "an Ordinance amending the 2003 Traffic Code by repealing Subsection (109) Sycamore Street of Section 553, No Parking Here to Corner; and enacting in lieu thereof a new Subsection (109) Sycamore Street of Section 553, No Parking Here to Corner (installation of No Parking Here to Corner signs restricting parking on the southwest side of Sycamore Street in a southwesterly direction from E. 11th Street)", be received, placed on file, considered and passed for the first time. Prior to a vote on the above motion, the following comments were heard. Sandie Greco, Superintendent of Traffic Operations, explained that due to Sycamore Street being changed over to a two-way last Friday morning, this will restrict parking from East 11th Street in a southwesterly direction on Sycamore Street so cars cannot park close to the corner making it difficult for people turning left onto Sycamore Street. • • September 12, 2005 • • Ordinances to be Adopted continued Page 7 Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Motion carried. 122298 Schmitt/Gunderson that rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Ayes: Seven. Motion carried. 122299 - Schmitt/Welper that "an Ordinance amending the 2003 Traffic Code by repealing Subsection (109) Sycamore Street of Section 553, No Parking Here to Corner; and enacting in lieu thereof a new Subsection (109) Sycamore Street of Section 553, No Parking Here to Corner (installation of No Parking Here to Corner signs restricting parking on the southwest side of Sycamore Street in a southwesterly direction from E. 11th Street)", be considered and passed for the second and third times and adopted. Ayes: Seven. Ordinance adopted and upon approval by Mayor assigned No. 4783. ORAL PRESENTATIONS 122300 - Mayor Hurley reminded everyone that the city will have its second annual citywide cleanup which we are calling Buck Day, and it is open to citizens of Waterloo this Saturday from 7:00 a.m. until 5:00 at Waste Management Services on Easton Avenue. Each vehicle entering the site will be charged $1, and there will be an additional charge collected per tire and per household appliance with a limit of four of each. The city is asking citizens to have the exact change ready. This is to help defray the cost of running the full day cleanup. The Courier has an article in today's paper with more details as to what is allowable and what is not and we also have information on the cable access channel. Jerry Shatzer, 1829 West 7th, stated he got angry over the Johnson Controls agreement. Mr. Shatzer asked the council if they had a business or bar that didn't make business after ten years what would they do with that business or bar. Mr. Shatzer asked what is it going to cost in litigation, and he feels it is time to look at this white elephant and sell it to the highest bidder. Mr. Shatzer stated he doesn't think people understand it is the taxpayer's money, and a true business is operated on profit and loss, and the city, state and federal governments do not have that responsibility they are just issuing other people's money through redistribution of income. Mr. Shatzer stated that it will cost about $35,000 just to go to court. Mr. Shatzer stated energy has increased 71 percent in wholesale for natural gas, and right now they are talking 41 percent in retail. Mr. Shatzer stated we are not done with the oil price increase, we have just begun and asked what will that do to the city's economy. Scott Ambrose, 114 Butler Avenue, reported he has a gas stove that is setting against his garage and asked who he could donate it to as the stove is operational. Mayor Hurley suggested St. Vincent DePaul, Goodwill, or run an ad in the John Deere swap sheet. Mr. Ambrose stated he was going to give it to the city cleanup, but they would just scrap it and it is a good stove. Mayor Hurley asked Mr. Ambrose to call his office for some organizations to contact. Pat Treloar, 210 Zachary Court and the Community Coordinator for Waterloo Fire Rescue, reported there is a new and improved Fire Pals.com website. The website has been up and running for approximately three years, and all the money came from congressionally earmarked money through Senator Harkin's office and in turn he sent the money to the Center for Disease Controls and Injury Prevention. A new kitchen safety section has been added and is now the home page. There are six sections and animated characters taking kids through the site and there is a lot of audio. There will be a get together tomorrow at Lincoln School to kick it off with Dr. Dewitt Jones speaking. Rodney Pearson, owner of Metro Taxi, stated a month ago he brought up an issue on the city's insurance requirements for taxi cab, and since that time he has touched base with the insurance company in Iowa who insures taxicabs and has gotten a cost breakdown and he distributed a copy to the council. Mr. Pearson stated he received e-mails from a couple of the council members saying they had done some checking with two or three insurance companies and have gotten different totals than he had. Mr. Pearson stated there is only one insurance company for the state of Iowa that will insure taxicabs; therefore there are not two or three options to get quotes from. Mr. Pearson stated he believes some have been getting quotes on commercial auto insurance, and when he checked on that he came up with the same figure, but taxicabs fall under a different category and must carry taxicab insurance only. Mr. Pearson stated only Taylor Insurance out of Des Moines is able to offer that insurance. September 12, 2005 Oral Presentations continued Page 8 Mr. Pearson reviewed the breakdown of what it would cost using a sliding scale of limits based on the amount of risk. Based on $100,000 limit with one to five taxicabs it would cost $431.56 per week for 36 weeks because most insurance for taxicabs must be financed, and that is after 25 percent down of $5,178.78. Mr. Pearson stated that breaking it down with the current requirement of $300,000 liability coverage, the down payment is a little over $6,600.00 and a little over $550.00 per week, which is a lot of taxicab rides especially on days like today when he had a driver checkout, he owed him $14.93 at the end of the shift rather than turning money into them. Mr. Pearson stated fuel costs have gotten out of control, insurance requirements are high, and this would save him a little over $5,800.00 per year if he were running five taxicabs and would give him enough money to put two more taxicabs on the road. Mr. Pearson stated they had a gentlemen this afternoon who lost his job because he called for a taxicab, and both taxicab companies told him it would be an hour to two hours to pick him up. Mr. Pearson stated he called the gentlemen's employer and told him it was their fault, so he got his job back. Mr. Pearson stated they do not have enough taxicabs to meet the demand because they cannot afford to put them on the road as it is too expensive to insure, maintain and fuel them along with payroll, dispatchers and drivers. Mr. Pearson is asking to come up with a way they can operate with a little more cash in their hands so they can offer a little more service. Mr. Pearson stated the cost is literally shutting them down, and they are trying to find ways to rectify the situation. Mayor Hurley stated staff or the Insurance Committee will review his figures, but the city also has insurance concerns and the liability issue. Mayor Hurley stated the $300,000 is liability coverage, not collision. Mr. Pearson responded this is just minimum liability coverage required by the city, not collision. Mayor Hurley stated the city is not out of bounds with other cities in Iowa, there are a few who are lower. Mr. Pearson responded those cities have more taxicabs, Cedar Rapids has 46 taxicabs, Iowa City has over 20 taxicabs and Des Moines has over 200 taxicabs. Mr. Pearson stated Waterloo has four taxicabs and two cab companies and there is not as much risk. Mr. Pearson stated he has heard the city is looking out for themselves, but if the coverage required is to cover the city, he feels the city should help compensate it, maybe subsidize a portion of it. Mr. Pearson asked that everyone sit down and open this up for discussion. Mr. Pearson stated he knows there is a demand for taxicabs in Waterloo, but it is just too expensive at this point. Mr. Pearson stated the energy costs effects them and it is getting worse. They are just looking at ways they can operate and have a little bit of capital so they can provide better and more services. Mr. Pearson stated the city can contact Ed Hood at Hood & Phalen Insurance who can put them in contact with Taylor or United Casualty. Craig Hundley, 1214 Wren Road, asked for an explanation on Item 10 regarding the $190,000.00 to be spent on the TruGreen Lawn Care property and asked will it be bonded, and if it is bonded at what interest rate will the city be paying for that property and how soon will this property be put to use. Don Temeyer, Community Planning and Development Director, responded it is bond money, he doesn't have the figure right now but could get it. Mr. Temeyer stated the property will be combined with other properties into the Exposition area next to the Center and the city is looking for funding to proceed. Mr. Temeyer stated the city has been buying these properties that are vacant, and this one is adjacent to the Morris Printing Company and Veterinary Clinic. The property has been in terrible condition, the wall fell in. Mr. Temeyer stated this company wants to move out of the area, the property will be vacant and that is why the city is purchasing it. Schmitt/Kincaid that the above oral comments be received and placed on file. Ayes: Seven. Motion carried. ADJOURNMENT 122301 - Welper/Clark that the Council adjourn at 6:31 p.m. Ayes: Seven. Motion carried. FC -A42—•-'4". Nancy CMC City Clerk • •