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HomeMy WebLinkAboutMinutes-12/03/2007• • December 3, 2007 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, December 3, 2007. Mayor Timothy J. Hurley in the Chair. Roll Call: Kincaid, Welper, Gunderson, Greenwood, Getty, Cole, Schmitt. Moment of Silence. Pledge of Allegiance: Mark Rice, Superintendent of Central Garage. 126276 - Schmitt/Kincaid that the Agenda, as proposed, for the Regular Session on Monday, December 3, 2007, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 126277 - Schmitt/Kincaid that the Minutes, as proposed, for the Regular Session on Monday, November 19, 2007, at 5:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. CONSENT AGENDA 126278 - Schmitt/Kincaid that the following items on the consent agenda be received, placed on file and approved: a. Resolutions to approve the following: 1. Resolution approving Schedule AP640, pp. 1-85, dated December 3, 2007, in the amount of $2,381,263.99, a copy of which is on file in the City Clerk's office, together with recommendation of approval of the Finance Committee. Resolution adopted and upon approval by Mayor assigned No. 2007-992. 2. Communication from Police Chief transmitting request of Main Street Waterloo to hold Downtown Lights the Night event to be held on December 8, 2007 starting with fireworks at 6:05 p.m., including closing of 4th and 5th Street bridges from 6:00 - 6:30 p.m.. Resolution adopted and upon approval by Mayor assigned No. 2007-993. b. Beer License Permit Application Class B National Dairy Cattle Congress, 250 Ansborough Avenue (Renewal) (Expires 12/24/08) (Including Sunday Sales) c. Beer/Liquor License Permit Application Class C Balkan Grill, 926 LaPorte Road (Renewal) (Expires 11/22/08) (Includes Sunday Sales) Lone Star Steakhouse & Salon, 4045 Hammond Avenue (Ownership Change) (Expires 3/12/08) (Includes Sunday Sales) Ayes: Seven. Motion carried. HEARINGS & BIDS 126279 - Gunderson/Welper that proof of publication of notice of public hearing on Purchase of One 19,000 GVW Truck With Hydraulic Lift, as published in the Waterloo Courier on November 13, 2007, be received and placed on file. Ayes: Seven. Motion carried. 126280 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Gunderson/Welper that the hearing be closed. Ayes: Seven. Motion carried. December 3, 2007 Page 2 Hearings & Bids continued 126281 - Gunderson/Welper that "Resolution confirming approval of specifications, bid document, etc. in conjunction with Purchase of One 19,000 GVW Truck With Hydraulic Lift", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-994. 126282 - Gunderson/Welper that "Resolution authorizing to proceed in conjunction with above said purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-995. 126283 - Gunderson/Welper to receive, file and instruct City Clerk to open and read bids and refer to Superintendent of Central Garage to review: Bidder Bid Amount Truck Country, Cedar Rapids, IA $46,217.00 Witham Auto Center, Waterloo, IA $41,690.00 Bill Colwell Ford, Hudson, IA $40,990.00 Ayes: Seven. Motion carried. REPORTS 126284 Getty/Schmitt that communication from Waterloo Water Works General Manager transmitting Calendar Year 2008 Budget, be received, placed on file and "Resolution approving said Calendar Year 2008 Budget", be adopted and City Clerk instructed to file same with the Black Hawk County Auditor. Prior to a vote on the above motion, the following comments were heard. Dennis Clark, General Manager of Water Works, explained the adopted Calendar Year 2008 Budget for the Waterloo Water Works. The adopted budget summary and the calendar year 2006 budget shows there were revenues of $4,982,000.00, expenditures of $5,543,000.00 and an ending balance of $646,000.00, which was the starting balance in calendar year 2007. The Water Works had $3.3 million in water revenue bonds and substantial capital projects, some of which are in mid - completion, so they anticipate an ending balance in 2007 of $2,346,000.00. Many of those projects are only partially complete and the Water Works anticipates making substantial payments on them yet this year. If the payments are not made, then they need to include them in the 2008 budget, so the ending balance carries forward to 2008 and they have those same expenses reported in the 2008 budget. The Water Works included expenses that they hope to make in 2007, but had to add them in the 2008 budget so that they would not run over budget should those expenses not occur until 2008. Mayor Hurley noted the City of Waterloo and the Waterloo Water Works have,a good working relationship, and the City of Waterloo benefits from the free- water policy for city buildings and golf courses, etc., and we don't see that coming to an end. Mr. Clark responded his Board has supported that benefit, and he anticipates it continuing. Mr. Clark explained that the Water Works receives benefits from almost every department in the city, so we help each other out in many different areas. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-996. • • • • December 3, 2007 Page 3 DOCUMENTS 126285 - Welper/Cole that communication from Associate Engineer transmitting Change Order No. 5 for a net increase in the amount of $98,860.52 for work performed by Aspro, Inc. & Subsidiaries of Waterloo, Iowa in conjunction with F.Y. 2007 Asphalt Overlay Program, Division I, II & IV, Contract No. 719, be received, placed on file and approved and Mayor authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Mayor Hurley noted this is an accumulated amount of adjustments throughout the year in quantities per the specification. This is over a $6 million dollar contract so its not absorbent percent wise. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Motion carried. 126286 - Welper/Cole that communication from Superintendent of Traffic Operations transmitting Change Order No. 2 for a net increase in the amount of $1,100.00 for work performed by Peterson Contractors, Inc. of Reinbeck, Iowa in conjunction with Iowa Highway 21 and Orange Road Traffic Improvements, STP -U-8155(689)-70-07, Contract No. 699, be received, placed on file and approved and Mayor authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Mayor Hurley reported the change order for Orange Road and Highway 21 is for an additional emergency vehicle preemption detector and a lamp for the northbound traffic at that intersection which allows fire and ambulances to get through. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Motion carried. 126287 - Welper/Cole that communication from Associate Engineer transmitting Change Order No. 14 for a net decrease in the amount of $133,593.33 for work performed by Peterson Contractors, Inc. of Reinbeck, Iowa in conjunction with F.Y. 2004 18th Street Bridge and Approach Roadway, Contract No. 622, be received, placed on file and approved and Mayor authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Eric Thorson, City Engineer, reported there was a mix-up in the original letter and the amount changed to a net decrease on the total project of $133,593.33. Following comments a vote was taken on the original motion with the following result. Ayes: Seven. Motion carried. 126288 - Welper/Cole that communication from Police Chief transmitting one-year agreement with C & S Car Company to lease 2008 Hyundai Entorage van for use by the School Resource Officer program, 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. 2007-997. 126289 - Schmitt/Greenwood that communication from City Engineer transmitting Completion of Project and Recommendation of Acceptance of Work performed by Aspro, Inc. & Subsidiaries of Waterloo, Iowa at a total cost of $3,852,218.72 in conjunction with F.Y. 2007 Asphalt Overlay Program, Division I, II & IV, Contract No. 719, 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. 2007-998. December 3, 2007 Page 4 Documents continued 126290 - Schmitt/Greenwood 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 $4,312,375.06 in conjunction with F.Y. 2004 18th Street Bridge and Approach Roadway, Contract No. 622, be received, placed on file and "Resolution approving said documents", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-999. 126291 - Schmitt/Greenwood that communication from Associate Engineer transmitting $61,000.00 for longer rock anchors in conjunction with F. Rehabilitation and Riverwall Construction, Contract No. 713 on file and "Resolution approving said additional cost", be additional cost of Y. 2007 Waterloo Dam , be received, placed adopted. Prior to a vote on the above motion, the following comments were heard. Eric Thorson, City Engineer, reported Earth Tech is the prime consultant for this project. Most of the dam work was actually done by a sub consultant, Stanley Consultants of Muscatine, Iowa. Mr. Thorson reported there was some drilling that was done when the Corp did a study of that area a few years ago, and that was used initially with the idea that once they had the coffer dam in and dried things we could actually see what was there and get closer to the dam and do some more drilling. They started putting in the rock anchors and ran into some voids and felt it was necessary to do some additional drilling to see for sure because those rock anchors are stainless steel and have to be fabricated in quite long lengths. They stopped, did some additional work with the drillings and with their consultant determined that they should be another 20 feet long. Councilperson Getty asked if they had come up with the substance that is going to fill those voids. Mr. Thorson responded they are still working with the contractor on that to try to find something that is reasonable, but we can at least move ahead with the rock anchors. This lengthens all of the rock anchors for the whole dam, so it is the first phase on the south side that is being done now and also the north phase. They anticipate it will be the same based on their drilling. Mayor Hurley noted he understands citizens' concerns about how long this is taking, the money, and it was portrayed that the city needs more money. It wasn't until we got the coffer dam in that we were able to get the engineers to get down there and do actual sonar testing with divers to find out exactly what we needed to do. This $61,000.00 is about one-half percent of the total dam project, and the city has contingencies in the contract for these types of items. Mayor Hurley explained it is not property tax money that will pay for this. It may be paid with some bond money, but those bonds are being paid back with the solid waste management refund money. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1000. 126292 - Schmitt/Greenwood that communication from Senior Planner transmitting request of Mary Frizell for tax exemption on improvements totaling $12,000.00 for 520 E. Dale Street located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1001. • • ti • • December 3, 2007 Page 5 Documents continued 126293 - Schmitt/Greenwood that communication from Senior Planner transmitting request of Safet & Saca Begic for tax exemption on improvements totaling $70,000.00 for 310-312 W. 4th Street located in the Consolidated Urban Revitalization Area, together with recommendation of approval, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Assessor of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1002. 126294 - Greenwood/Schmitt that communication from Community Planning & Development Director transmitting request to accept and approve Quit Claim Deed from William Lewis and Kathryn Rice and Warranty Deed from Robert and Yvonnea Weatherly for property generally located at 622 Fowler Street, be received, placed on file and "Resolution approving and accepting said deeds", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1003. 126295 - Greenwood/Schmitt that communication from Community Planning & Development Director transmitting agreement with David Lies, Executor of Winifred Deeds Estate, for purchase of property located at 118 East 10th Street at a cost of $31,240.00, with incidental costs not to exceed $2,000.00, as part of the Eastside Riverfront Housing Project, 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. 2007-1004. 126296 - Greenwood/Schmitt that communication from City Attorney transmitting Fiber Optic Network Agreement with the Board of Trustees of the Waterloo Municipal Telecommunications Utility and Waterloo Telecom Partners, Inc. for use of the city rights-of-way for creation of alternative high speed data communications system, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Prior to a vote on the above motion, the following comments were heard. James Walsh, City Attorney, explained that this agreement was discussed at a council work session two weeks ago. There have been a number of meetings with the Municipal Telecommunications Utility, which have been attended by people who are interested in telecommunications. Qwest, Mediacom and others are at almost every meeting. Waterloo Telecom Partners (WTP) has been at the meetings, and there is a number of people in the community who have been interested in this and come to the meetings. The agreement before the council tonight is to approve the working arrangement between Waterloo Telecom Partners which is a new not-for-profit established in order to facilitate the agreement between the city, the Telecommunications Utility Board and the operating partner. We needed an entity that would be able to do business with the public through wholesalers and larger purchasers. The Telecom Utility has no funding, so we created a not- for-profit private entity that will do business with anyone who wants to participate. Anyone who wants to participate in this arrangement and pay a fee can participate. On the other hand, the competitors probably will elect not to participate as they already have their own capacity and their own access to the city right-of-way. The purpose of this agreement is to allow the city to get this private entity and to get this competitive entity started without spending any money on it. Jim Waterbury, Chairperson of the Municipal Telecommunications Utility Board, stated the mission of the Utility is to provide the most broadband service to the greatest number of customers in Waterloo that they can at the lowest possible cost. Since its inception two years ago, the Utility has supported initiatives in systems that are open both to current and future providers and users. They are not seeking to drive current providers out of the city, but in fact they are trying to attract more providers to the city, and they are not trying to construct anything that will provide any distance for any current providers. The system that is currently under consideration will probably not attract participation by current users. December 3, 2007 Page 6 Documents continued They have had two years to come forward with proposals of their own to extend their own services and have not. This may provide them with an avenue to do that. They operate in many communities, and Waterloo may not be their highest priority for their own expansion plans. If they can use this new system and buy in just as anybody else, and make use of the system that other uses are going to build and be able to subscribe at the same rates as anybody else who chooses to be on the system, they may look at that as a far better use of their money then extending their own services. Mr. Waterbury noted his limited experience with cable television in other communities is generally when you have more than one provider you see lower rates immediately, and they think this is going to be true of data services as well because the general impression is that data service is inadequate for the City of Waterloo and we don't have enough capacity. The capacity that we do have from current providers is not priced attractively and is not reaching far enough into the communities to serve the people that they are hearing from. They are trying to create something at no cost to the city, that will be owned and operated by the users, that will disadvantage no one, that will not provide any bar to anyone else coming in and providing this same service. There is nothing in this agreement that precludes anyone else from coming in tomorrow and saying they want to run a parallel service. At a certain point, you can have so many services that no one can stay in business but right now that is a problem that we would like to have. At the moment we don't have enough service to do the job that businesses in industry in Waterloo want. Councilperson Greenwood commented that he thinks the benefit to the city is to force the last mile. The cable is laying in the street, its going to force somebody to run it the last block or two to connect people to it, to force more competition. Mr. Waterbury commented that it is going to permit more competition by basically broadening the avenue, providing a bigger pipe for more data to be able to carry at lower cost and to interconnect more easily entities that currently are not interconnected. The first leg that is anticipated will run from the School Administration building to the new John Deere Tech Works and then to downtown Waterloo. The second leg that is anticipated would be to connect the San Marnan business corridor. By laying those main arteries and then feeding off of that, they anticipate that businesses along the way would opt in or opt out. Its cooperative in nature in that the people who own it will also be the people who will operate it and the people who will benefit from it. Mayor Hurley noted the Waterloo Telecom Partners (WTP) is a new, not-for-profit private entity that at this moment has no funding, so in order to run those lines they will want a customer in hand or an order in hand. Mr. Waterbury responded they will have to sell subscriptions to make this work, and if they can't convince area businesses that this is a viable deal, then it will collapse for lack of support. We know that at our current rate nothing is going to happen in the foreseeable future to broadband service in Waterloo because we have had two years now for current providers to come forward and offer a similar service, and the board meet once a month and no such service has been proposed. Mayor Hurley noted the agreement asks for the same provisions on the rights-of- way that that we offer to private companies. Mr. Waterbury explained that no part of this agreement was set up so it would preclude anybody else from coming in and asking for or receiving the same thing, whether as a provider or as a user. As a Utility, they are not interested in saying they want to limit the number of competitors that are operating in the city at this point. At some point, it would be nice to have that problem and say that there are too many people in here, and we are not going to be able to accept them all because someone is going to go out of business. Right now they think there are too few providers or the providers we have are not providing enough services, so we are looking for this third alternative that will be owned and operated by the entities that want more service to pay for it. The Utility thinks that will probably attack more development from our current providers, but that is speculation on their part. • • December 3, 2007 Page 7 Documents continued Mayor Hurley asked about the language that says the city would use this to the extent practical. Mr. Waterbury responded in Section II, Item 26 on page 4, says parties contemplate the city shall to the extent practical utilize that work for fulfillment of its telecommunication needs. Mr. Walsh noted that is why that word was used. They didn't want to presume that the city would have to use this. They are hoping in any future need that the city might have that they be given the right to first refusal. In other words, if the city were to get a proposal at a public bid of such and such, that the city would choose to use this partnership arrangement to supply its own needs rather than a competitor. Mr. Waterbury noted it is entirely possible that this entity could be up and running and a current or future provider could step in and say they could provide that service for 20 percent of the cost that your new organization is planning, and we would like to see that happen. Councilperson Greenwood asked how this would work with the ICN network. Mr. Waterbury responded the only interface he is aware of is for dark fibers that are residuals from the McLeod system that the city still owns rights. Mr. Walsh commented that right now its unlikely the ICN would want to connect to this, but if you had a business that wanted to be able to use ICN to get so far and then wanted it to come right to their place of business. For example, you may have a business that wants video capability, video conferencing capabilities and doesn't have the band width there now. They might be able to somehow work with ICN. If ICN would allow the connection, certainly a fiber optic connection would be able to take ICN output and connect to it. Technically it is possible. Donna Nelson apologized for not being at any of the meetings, but her health has not been the greatest and she has been in and out of the hospital. She has talked with Mayor Hurley, with the Alliance and several other people in the city and prior mayors about the technology that is in the Blacks building, and she couldn't get anyone to understand the amount of technology. She was quite concerned all the time that the newspaper was printing articles about how superior Cedar Falls was. Everything that happens in the county starts in the Blacks building. They looked long and hard to get that technology into the building. The ICN is in their building besides the three points of presence and they carry all the technology. Ms. Nelson stated that it was mentioned in several articles in the newspaper that it all starts at the Blacks building, and yet she has never been notified by Mr. Walsh's group how they are going to connect. She did contact the Municipal Utility a couple of months ago and told them that she was going to make a presentation, and since then her health has not been the best. She never heard back from them that she had to do that immediately. Ms. Nelson is very concerned that this is an exclusive agreement when Mr. Walsh said its first right of refusal. First right of refusal is an exclusive agreement no matter how you look at it. You have to present the other proposal and then they have a chance to match it so it is an exclusive agreement. Ms. Nelson is also concerned that WTP is asking to be the gate keeper for anyone else that wants to come up. In the paper it says WTP will be the gate keeper so to speak, and Mr. Walsh said we can't just have everyone coming up and digging a hole in the right-of-way. Ms. Nelson asked what is the Municipal Utility for if they are not the gate keeper. Ms. Nelson is concerned a non-profit can be a screen for a for-profit. All you have to do is sub out all the work and the money is funneled to for -profits. Ms. Nelson wants to be guaranteed that money won't be shifted from the Grout, from the TechWorks, from the WDC and others. Ms. Nelson is asking for what they used to call in the trucking industry a me too agreement, and that would give her the same use and the same access to all funding that the WTP would have. Mr. Walsh noted that the agreement has been at several different public meetings, its in the City Clerk's office, and its part of the city council record. Mr. Walsh read part of 1.5 of the agreement that says except that set forth in 1.2 above, which is not applicable to what Ms. Nelson is talking about, the authorization granted by this agreement shall be non-exclusive and nothing contained in this agreement shall be deemed or construed to limit, alter or waive the right of the city and Utility to enter into agreements authorizing persons and those other than WTP access to use public rights-of-way, etc. Ms. Walsh stated this agreement clearly gives Ms. Nelson the right to come to this council at any time, present her own agreement and ask the city council to let her have access to the right-of-way. No one right now has access to the city rights-of-way other than the people that the City Engineer lets have access to the city's rights-of-way under city ordinances. That is the whole point of this agreement, to get access to the city's rights-of-way. December 3, 2007 Page 8 Documents continued Mr. Walsh noted the first right of refusal is only with regard to City of Waterloo data communication. Its not anybody other than the City of Waterloo. Ms. Nelson asked if that that could be a large source of funding. Mr. Walsh responded it could be, and he would expect that if Ms. Nelson entered into a partnership with somebody to do something they wanted to get done that she would expect to have at least the right to have their business if not anybody else's and only at the lowest price and only if the city chooses to do it. Ms. Nelson responded but that is the first right of refusal and it is not exclusive. Mr. Walsh responded it is not in the agreement. He said that they would hope that the city would give them first right of refusal to meet any price for city business only, but it is not in the agreement. Ms. Nelson commented so the city does not have to give Waterloo Telecom first right of refusal. Mr. Walsh responded they do not have to, they can set this whole thing up and give their business to someone else if they want to. Mr. Walsh noted the gatekeeper reference Ms. Nelson is referring to is not in the agreement, it was in the newspaper. Mr. Walsh noted that his comment was meant to make it clear that right now there are a lot of people who might like to connect building A and B in the city of Waterloo. The only ones they can use right now are the incumbents to get that done. They have to go to Qwest or Mediacom because they do have access to the right-of-way. Mr. Walsh noted he could not speak for the City Engineer, but he thinks its been clear that the City Engineer values the public right-of-way and doesn't want anybody digging a hole in it, he doesn't want people to upset the infrastructure that's been carefully created by many others. The purpose of this agreement is to allow access to that right-of-way for competition purposes against the incumbents without allowing everybody who wants to, to dig a hole out there. That doesn't mean that anybody in this room couldn't come and say they would like to connect point A and point B, pay their fee to get in this organization and then be part of the ability to reach the right-of-way, always following the City Engineer's rules for accessing the city's right-of-way. Mr. Walsh noted the fees vary with the size of the organization, but he thinks the fee for being a participate in this is about $5,000.00 for a small business and $25,000.00 for a larger business. They are uniform for all, its just based on the size of business. Ms. Nelson asked if that would then make you a partner in the fiber. Mr. Walsh responded no it doesn't give you any legal ownership. All it does is make you a member which means that your business can then wholesale access to the right-of- way and pay fees. Ms. Nelson asked that the agreement be delayed seeing that the Blacks building is such a major part of this. She has worked long and hard on this, and she would hope that council would delay it long enough for her to research and read the document that she does not have. Mayor Hurley commented he is perceiving that Ms. Nelson sees this as some risk or threat to what she has or wants to do at the Blacks building and asked her to put that in layman's terms. Ms. Nelson responded they have worked hard to bring in all of the people that they are talking about, such as Qwest, Mediacom, McLeod and MCI, which is now Verizon. All of those points of presence are located in the Blacks building, and none of the other can be accomplished, that fiber that they are talking about hooking to on 4th Street is in the Blacks building. Ms. Nelson noted she talked to Mark Kittrell for years trying to get him to do what he has done in Cedar Falls in her building. She is in the process of building a data center, which is almost completed, that competes with Mr. Kittrell's situation. Ms. Nelson stated all she is saying is that she thinks the city wants to be sure to keep the rates down and to keep a healthy Blacks building and a downtown, and not to circumvent her at this point. The Blacks building is the one that paid for all the infrastructure and everything through allowances to the people that are located in the building. Now all of a sudden somebody comes out and they want to do what she is striving to do over the long run. She is just asking that council delay it as she doesn't think it will be any cost no matter what, and maybe there is some agreement that everyone can come to to make sure that Waterloo has the best service. Even Cedar Falls Utilities is located in her building. She is just asking council to delay it for a couple of weeks until she has time to look at it. • • • December 3, 2007 Page 9 Documents continued Jim O'Regan, SBT Inc., commented that his office is actually in the Blacks building. They have been offering internet service in the area for about 13 years, and they think this is a great idea as far as providing access to the public right-of-way, making it available, making it an easy situation. Mr. O'Regan noted that it is very clear that this is a non-exclusive agreement except for section 1.2, which talks about the city entered into an agreement with McLeod and McLeod gave the City of Waterloo the net effect of four strains of fiber, its called an indefeasible right to use. In the industry a lot of times when you hear about AT&T, MCI or level 3, a large core communications network, they might not actually own the fiber, but what they do is they buy an indefeasible right to use. You can use X amount of capacity on that network. It's a great idea, it's a great way to commoditize and monetize communication systems and it allows competing networks to be in the same area. Mr. O'Regan thinks this is great in that that one piece really makes number 2, number 3 and number 4 participants that come in really not be in the same footing with the original entity. He doesn't mind that this is a not-for-profit entity. He owns the Cedar Valley Vikings, they don't make any money, they lose money but they are technically a for-profit. The first thing that he is a little concerned about is the ability for a for-profit entity to bid on this and actually do exactly the same contract. Can he get exactly the same contract, does he have the right to say instead of paying 5 percent they will pay 5.5 percent. Is that something that would help the city because his company has tried to do a lot of things for the city that has been kind of under the radar. His company was the first provider to connect a lot of businesses to get their first internet connections, their first websites. They have their own fiber in the ground in Waterloo and know how expensive it is. For example, they have gigabyte fiber segments in Waterloo and its very expensive. You've got to be a little bit careful about going up to the incumbents, such as Mediacom, McLeod or Qwest, because connecting building A to building B is great for the city and his company, but if you are the incumbent carrier you have to make that access available for everyone. The nice thing about this network is its set up as an alternative data network. He is just wondering if there is a way to have this document or agreement made available to a different entity at the same time. Mr. O'Regan noted the question was asked does this force the last mile and Mr. Waterbury answered that very clearly that it doesn't force the last mile; however, it does make it so that that end-user business or residential user has a lot more options. The last mile to Qwest may be a mile in certain areas to a fiber area but to Mediacom it may be 100 yards. Mr. O'Regan addressed the availability of band width services. The question is not necessarily is the service available but at what price is it available. His company has a gigabit internet connections in Waterloo and outside the area, its just expensive. Does this help drive the cost out of that and make that service more available at a more economical price. His company works with the engineering people who would be working on these things and buy services from them. Mr. O'Regan asked if this is available so that he can potentially build on that. He would like to locate these businesses specifically in Waterloo. Its very easy to come in and provide these services and actually locate your office space and you could have your people in Des Moines or Albuquerque. He would like to have them here, working here if we could. Mr. Walsh responded Mr. O'Regan does not have to bid on it, he could have it. The practical matter is he is exactly the kind of person who they want to use this facility and he is exactly the technical knowledge entrepreneur, forward thinker that they want to make use of this right away. You don't have to pay for anything other than what you want to have built and you could have that right of way. The only persons you'll be competing with are the same ones you compete with now. The point is that anybody who wants to connect with Telecom Partners they will connect with. Its not a exclusive arrangement, it encourages wholesalers and middlemen to come to this entity so that the right-of-way is accessible, not that its blocked or held hostage. The purpose of this was to organize an alternative to the incumbents for those willing to make use of city right-of-way. The only reason 1.2 is accepted is because they don't think they control McLeod's wires, and they don't think they can say who can use them so they had to exclude those wires from the agreement to make them available to anyone. Mr. Reagan commented if you have the indefeasible right to use that, you would be able to in a matter of 30 days have a very, very large section of your fiber ring up and running. Mr. Reagan stated it is a great thing for the community, and he thinks it is important to keep the jobs in Waterloo and the office space and services in Waterloo. December 3, 2007 Page 10 Documents continued Mayor Hurley noted there is a request from Ms. Nelson to table this item for a couple of weeks. We only have two more meetings this month and then we are into January 7, 2008 with a brand new council. Councilperson Welper asked if there is a problem with postponing it to December 17, 2007. Mr. Waterbury commented that the only consideration is that the longer it takes to put something like this into place, the further behind the City of Waterloo falls in data communication. The city is behind the curve and everyday is worse for existing business. Mr. Waterbury noted that all of the current providers in the Blacks building will be able to hook up to this by connecting through Team Center, and they can do it over night. Anyone who is a current provider is welcome and the Utility hopes they do use this. This is not put into place to drive them out of business, this is put in place to expand their business. Councilperson Schmitt commented that no where in this agreement does it talk about head in, head out equipment. This agreement is getting a business connected to a central point so that they have the option of using current providers or any provider they want at the volume they want for head in, head out equipment to transfer the data. This is just getting them connected. Mr. Walsh responded this is just getting them connected. Anybody who wants to build equipment or supply equipment is going to have to do that on their own. Greenwood/Welper that the Fiber Optic Network Agreement be tabled to December 10, 2007 to allow Ms. Nelson time to look at the agreement. Ayes: Two. Nays: Kincaid, Gunderson, Getty, Cole, Schmitt. Motion failed. 126297 - A vote was taken on the original motion to approve said Fiber Optic Network Agreement with the Board of Trustees of the Waterloo Municipal Telecommunications Utility and the Waterloo Telecom Partners, Inc. with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1005. 126298 - Greenwood/Schmitt that communication from Mayor Tim Hurley transmitting agreement with MyEntreNet for city funding in the amount of $35,000.00 each year for FY09 and FY10, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Councilperson Greenwood stated that the city is committing $35,000.00 this year and $35,000.00 next year and asked what will sustain this program in the following years. Do they have some type of funding planned for year three or is that going to come from us but they haven't asked us yet. Mayor Hurley noted that a minor correction is that its next fiscal year and then the following one. Maureen Collins -Williams explained that this initiative is designed to build capacity over the next 24 months beginning in July 2008. During that time period a core group of service providers who are engaged in entrepreneur development from throughout the state will be trained, will pull together and deliver an array of services that at the end of those two years from her experience that rural parts from the state of Iowa will become part of the programs and services that are delivered by those agencies. Only now it will be delivered in tandem and in a comprehensive way that can deliver new business growth, existing business expansion and new job development. It will become self-sustaining. Ms. Collins -Williams commented they developed this approach in rural parts of the state of Iowa over the past five years, and during that process they have found that when you bring together the state's premiere providers of entrepreneurial services and ask them to actually work together in tandem as a team and we offer them the incentives to divert some of the work they do now from other areas to entrepreneurial development, it becomes a win- win for all of the agencies. In fact, the outcomes are so strong and they are so tangible that they are finding their resource provider partners are delivering more of their services and more of their resources at the end of that two year launch phase then at the beginning. • • December 3, 2007 Page 11 Documents continued Ms. Collins -Williams stated they are very positive and very comfortable with asking for this money for a launch phase only with the expectation that at the end of two years this program will be entirely self-sustaining. Ms. Collins -Williams explained that she has been working very carefully with Waterloo, the Greater Cedar Valley Alliance, and some preliminary discussions with folks here in Waterloo about reporting to the entities and what that matrix should look like. The first thing that will happen is the development of a task force, and that task force will be made up of members of the community, both leadership and entrepreneur. They will self -define a set of milestones for the first year and the second year. They have a very rigorous reporting process in place that will allow her to deliver written reports or oral reports to both councils and to the Greater Cedar Valley Alliance on a six-month basis repeatedly throughout the two years. Mayor Hurley commented Ms. Collins -Williams has an agreement with UNI and the Northwest Foundation to get her started immediately or in January. The two cities and the Alliance money would not be available until after July 1, 2008. Following comments a vote was taken on the above with the following result. Ayes: Six. Nays: Cole. Resolution adopted and upon approval by Mayor assigned No. 2007-1006. RESOLUTIONS TO BE ADOPTED 126299 - Gunderson/Welper that "Resolution removing the name of the private street known as Guardian Road from the City of Waterloo Street Index and Map as the street which was to be generally located off Ranchero Road west of Highway 63 has not been constructed", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1007. 126300 - Gunderson/Welper that "Resolution approving communication from Mayor Tim Hurley transmitting request to allocate $30,000.00 of Isle of Capri donation to the City Facilities Maintenance Budget", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1008. ORDINANCES TO BE ADOPTED 126301 - Kincaid/Schmitt that "an Ordinance amending the 2003 Traffic Code by repealing Subsection (8a) Linn Street of Section 545, Yield Streets; and enacting in lieu thereof a new Subsection (8a) Linn Street of Section 545, Yield Streets (installation of yield signs on Linn Street at the intersection of Webster Street)", be received, placed on file, considered and passed for the first time. Ayes: Seven. Motion carried. 126302 - Kincaid/Cole that rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Ayes: Seven. Motion carried. 126303 - Kincaid/Schmitt that "an Ordinance amending the 2003 Traffic Code by repealing Subsection (8a) Linn Street of Section 545, Yield Streets; and enacting in lieu thereof a new Subsection (8a) Linn Street of Section 545, Yield Streets (installation of yield signs on Linn Street at the intersection of Webster Street)", be considered and passed for the second and third times and adopted. Ayes: Seven. Ordinance adopted and upon approval by Mayor assigned No. 4893. December 3, 2007 Page 12 NEW BUSINESS 126304 - Schmitt/Cole that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $799.53 for work performed by the Water Works at 710 Elm Street, together with recommendation of approval of the Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1009. 126305 - Schmitt/Cole that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $250.82 for work performed by the Water Works at 908 Sheridan Road, together with recommendation of approval of the Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1010. 126306 - Schmitt/Cole that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $592.26 for work performed by the Water Works at 309 E. 2nd Street, together with recommendation of approval of the Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1011. 126307 - Schmitt/Cole that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $1,658.30 for work performed by the Water Works at 110 Mosley Street, together with recommendation of approval of the Board of Waterloo Water Works Trustees, be received, placed on file and "Resolution approving said request", be adopted and City Clerk instructed to notify Black Hawk County Treasurer of same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1012. 126308 - Cole/Getty to instruct Leisure Services Director to prepare plans, specifications, form of contract, etc. in conjunction with 2007 Golf Turf Equipment, be received, placed on file and approved. Ayes: Seven. Motion carried. 126309 - Cole/Schmitt that plans, specifications, form of contract, etc. in conjunction with 2007 Golf Turf Equipment, be received and placed on file. Ayes: Seven. Motion carried. 126310 - Cole/Schmitt that "Resolution preliminarily approve plans, specifications, form of contract, etc. in conjunction with above described purchase", be adopted. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1013. 126311 - Cole/Schmitt that "Resolution setting date of hearing on plans, specifications, form of contract, etc. as December 17, 2007 at 5:30 p.m. in the City Hall Council Chambers and taking of bids on above described purchase", be adopted and City Clerk instructed to publish notice of same Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2007-1014. • • • • December 3, 2007 Page 13 ORAL PRESENTATIONS 126312 Jeri Thornsberry, 704 Sheridan Road, stated that on November 27, 2007 the city filed an appeal against the State City Development Board for its decision to deny the annexation petition of 345 acres. She is surprised that this action was taken by the city given that the CDB stated that they saw very little evidence of municipal planning contained in the applications submitted. Ms. Thornsberry asked who decided that the city should take this legal action, is this a wise expenditure of taxpayers' money, and when will the public be informed of the Mayor's action and the anticipated cost. When the CDB denied the annexation application on the issue of uniform boundaries, they had no need to consider the next issue of public interest which they would have done. Just 12 days ago, Mayor Hurley and her heard the County Board of Health receive a very alarming report that described the severe impacts that burning coal will have on all citizens, particularly our elderly and children and especially on our African-American citizens. Surely the health of all Waterloo citizens is a priority concern of everyone. Passing off the responsibility for the anticipated environmental and health-related consequences of this annexation proposal to allow a coal burning plant to be built is not in keeping with the goals of responsible, long range municipal planning and orderly city development. Ms. Thornsberry urged the city to withdraw this appeal and save taxpayers' dollars and health. Mayor Hurley explained that it was at his direction that the city filed the appeal after consulting with our city attorneys and council. We are not actively appealing. The clock started ticking with the City Development Board shortly after they published their findings during which time we could appeal if we wanted to, and that clock was running out. There were all kinds of things going on, but in our actions that deal solely with annexation and zoning he submitted an appeal in order to lock in that option. It will probably be several months before any judge looks at it and a lot can happen so he was reserving the city's right, a slot to appeal because we do think there are some appealing points about that whole hearing. Forrest Dillavou, 1725 Huntington Road, commented about the street lights. He was here when Mayor Hurley was on the council about the same lights that are still out today. He turned off Ansborough tonight and started to come down here. He drove four blocks before there was a street light on, on the south side of University Avenue. There are over 50 street lights on University Avenue; at Ansborough and Hwy 63 three out of four are out; on the Mullan Avenue bridge one is out; at the end of the Mullan Avenue bridge where the ice arena is there are four or five out between there and the highway; and on University and Hwy 63 there are two out of four lights out. MidAmerican has given us lights that don't work. We pay for them month after month after month, year after year. The city is spending taxpayers' dollars to have lights that don't work, that don't get fixed, and he thinks its time for the city to quit paying for those lights that are not working. Lets have some of the people who drive around the city at night, like the police officers, if they see one out lets start reporting these. Lets get a count, and if 25 percent of them are out lets send them a check for 25 percent less next month. If you had a business and you paid them to plow the parking lot and they plowed half of it, would you send them a full check. He has talked to city staff about these lights and they don't get fixed. Sandie Greco, Superintendent of Traffic Operations, stated every month they give a list to MidAmerican Energy, and they say they will get to them. Schmitt/Cole that the above oral comments be received and placed on file. Ayes: Seven. Motion carried. 126313 Schmitt/Kincaid that the council adjourn to Executive Session at 6:46 Motion carried. p.m. Ayes: Seven. City Attorney Jim Walsh stated that discussion of acquisition of property is an approved topic of Executive Session pursuant to Iowa Code Section 21.5(1)(j)(2007). December 3, 2007 EXECUTIVE SESSION 126314 - Schmitt/Cole Page 14 that the council adjourn Executive Session at 7:38 p.m. Ayes: Seven. Motion carried. 126315 - Schmitt/Cole that Planning, Programming and Zoning staff be authorized to proceed. Ayes: Seven. Motion carried. ADJOURNMENT 126316 - Schmitt/Cole that the Council adjourn at 7:39 p.m. Ayes: Seven. Motion carried. c Nancy ckert, CMC City Clerk