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HomeMy WebLinkAboutMinutes-04/28/2008• • April 28, 2008 The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council Chambers, Waterloo, Iowa, at 4:00 p.m., on Monday, April 28, 2008. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. Absent: Hart. Moment of Silence. Pledge of Allegiance: Dennis Clark, General Manager of Waterloo Water Works. 126965 - Reggie Schmitt/Welper that the Agenda, as amended, for the Regular Session on Monday, April 28, 2008, at 5:30 p.m., be accepted and approved. Ayes: Six. Absent: Hart. Motion carried. 126966 - Reggie Schmitt/Welper that the Minutes, as proposed, for the Regular Session on Monday, April 21, 2008, at 4:00 p.m. and Special Session on Thursday, April 24, 2008, at 8:15 a.m., be accepted and approved. Ayes: Six. Absent: Hart. Motion carried. CONSENT AGENDA 126967 Reggie Schmitt/Welper 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. 1-64, dated April 28, 2008, in the amount of $2,843,749.77, 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. 2008-324. 2. Communication from City Engineer transmitting request of Bennie Owen for a waiver for a concrete driveway to be located at 1532 Liberty Avenue, together with recommendation of approval. Resolution adopted and upon approval by Mayor assigned No. 2008-325. 3. Communication from City Engineer transmitting request of James Winder for a waiver for a concrete driveway to be located at 1526 Liberty Avenue, together with recommendation of approval. Resolution adopted and upon approval by Mayor assigned No. 2008-326. 4. Communication from Police Chief transmitting request of Main Street Waterloo to hold Cinco de Mayo event on May 3, 2008 from 3:00 p.m. to 9:30 p.m. and to close Bluff Street from 2:30 - 9:30 p.m. in the block of West 4th Street between LaPlacita Grocery Store and the underpass. Resolution adopted and upon approval by Mayor assigned No. 2008-327. b. Motion to approve the following: 1. Brad Walter and Dave Bovy, Police Officers, to attend Midwest Association of Technical Accident Investigators Conference in Council Bluffs, Iowa on May 4-7, 2008, with costs not to exceed $1,030.64, including use of city vehicle. 2. Greg Erie, Police Officer; and Aaron McClelland, Police Sergeant; to attend Taser Armorer Course in Des Moines, Iowa on May 7-8, 2008, with costs not to exceed $780.00, including use of city vehicle. 3. Nancy Gulick, Community Development Coordinator, to attend Iowa Finance Authority Housing Development Finance Professional Certification Program in Des Moines, Iowa on May 19-23, 2008, with costs not to exceed $720.00, including use of city vehicle, including use of city vehicle. April 28, 2008 Page 2 Consent Agenda continued c. Beer License Permit Application Class B Lost Island Waterpark, 2225 E. Shaulis Road (New) (5/1/08 - 11/1/08) (Includes Sunday Sales) Godfather Pizza, 3811 University Avenue (Renewal) (Expires 4/30/09) (Includes Sunday Sales) d. Beer/Wine Permit Application Special Class C Main Street Waterloo, Lincoln Park (New) (5/1/08 - 11/1/08) e. Beer/Liquor License Permit Application Class C Flirt's Gentlemen's Club, 319 Jefferson Street (Renewal) (Expires 4/30/09) (Includes Sunday Sales) La Chiquita, Inc., 301 East 4th Street (New) (4/29/08-10/29/08) (Includes Sunday Sales) f. Outdoor Service Area Application La Chiquita, 301 East 4th Street Lost Island Waterpark, 2225 E. Shaulis Road Main Street Waterloo, Lincoln Park g. Outdoor Cafe Application La Chiquita, 301 East 4th Street h. Fireworks Display Application Waterloo Bucks Baseball, 850 Park Road on June 20, 2008 i. Theater License Application Crossroads 12 Theatre, 2450 Crossroads Boulevard Mini Cinema 16, 315 E. 4th Street Fantasy Island Amusement, 1850 W. Airline Hwy Adult Emporium, 1507 LaPorte Road j. Bonds. Ayes: Six. Absent: Hart. Motion carried. HEARINGS & BIDS 126968 - Getty/Cole that proof of publication of notice of public hearing on F.Y. 2008 Sidewalk Repair Program - Zone 8 and Trail Repairs, Contract No. 740, as published in the Waterloo Courier on April 11, 2008, be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 126969 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Getty/Welper that the hearing be closed. Ayes: Six. Absent: Hart. Motion carried. 126970 Getty/Cole that "Resolution confirming approval of plans, specifications, form of contract, etc. in conjunction with F Y. 2008 Sidewalk Repair Program - Zone 8 and Trail Repairs, Contract No. 740", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-328. 126971 - Getty/Cole that "Resolution ordering construction in conjunction with above said project", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-329. • • • • April 28, 2008 Hearings & Bids continued Page 3 126972 - Getty/Cole to receive, file and instruct City Clerk to open and read bids and refer to City Engineer for review: Bidder Bid Bond Bid Amount B & B Builders and Supply, Waterloo, IA 5% $61,445.68 Bentley Construction, Waterloo, IA 5% $64,749.95 Bowers Masonry, Inc., Waterloo, IA 5% $82,882.75 Matt Construction, Inc., Waterloo, IA 5% $79,349.64 Mike Dolan Concrete & Masonry, Inc., Waterloo, IA 5% $80,348.13 TI-ZACK Concrete, Inc., Le Center, MN 5% $88,941.50 DC Corp., Waterloo, IA $6,402.00 $128,039.42 T&J Construction, Waterloo, IA $3,444.43 $68,888.60 Ayes: Six. Absent: Hart. Motion carried. 126973 - Getty/Reggie Schmitt that proof of publication of notice of public hearing on East Park Avenue Parking Garage, as published in the Waterloo Courier on April 11, 2008, be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 126974 This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Getty/Reggie Schmitt that the hearing be closed. Ayes: Six. Absent: Hart. Motion carried. 126975 - Getty/Reggie Schmitt that "Resolution confirming approval of plans, specifications, form of contract, etc. in conjunction with East Park Avenue Parking Garage", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-330. 126976 - Getty/Reggie Schmitt that "Resolution ordering construction in conjunction with above said project", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-331. 126977 - Getty/Reggie Schmitt that the date of bid opening be moved to May 5, 2008 at 5:30 p.m. in the City Hall Council Chambers. Ayes: Six. Absent: Hart. Motion carried. HEARINGS 126978 Welper/Steve Schmitt that proof of publication of notice of public hearing on request of Rosalie Fischels to sell and convey a portion of vacated alley generally located adjacent to 432 James Street for $70.00, as published in the Waterloo Courier on April 11, 2008, be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 126979 - This being the time and place of public hearing, the Mayor called for written and oral objections and there were none. Welper/Steve Schmitt that the hearing be closed. Ayes: Six. Absent: Hart. Motion carried. April 28, 2008 Hearings continued Page 4 126980 - Welper/Steve Schmitt that "Resolution authorizing said sale and conveyance", be adopted and City Attorney instructed to prepare and deliver deed accordingly. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-332. UNFINISHED BUSINESS 126981 Reggie Schmitt/Cole that communication from Leisure Services Facilities Manager transmitting recommendation of award of contract to B & B Lawn Care, Inc. of Waterloo, Iowa at $46.48 per acre for Option A, $46.48 per acre for Option B, $37.24 per acre for Option C, $48.00 per hour for Option D and $65.00 per acre for Option E in conjunction with 2008 Right -of -Way Mowing, be received, placed on file and "Resolution approving award of said contract", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-333. DOCUMENTS 126982 - Reggie Schmitt/Cole that communication from Associate Engineer transmitting Change Order for a net increase in the amount of $23,683.00 for work performed by Cedar Valley Corporation of Waterloo, Iowa in conjunction with F.Y. 2007 Recreational Trail - Cedar Bend Park to Mullan Avenue, Contract No. 714, be received, placed on file and approved and Mayor authorized to execute same. Ayes: Six. Absent: Hart. Motion carried. 126983 - Reggie Schmitt/Cole that communication from Airport Director transmitting lease agreement with Mobile Money, Inc. at a cost of $150.00 per month for the period of November 15, 2007 - November 14, 2008 to provide an ATM machine at the Airport, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-334. 126984 Reggie Schmitt/Cole that communication from Associate Engineer transmitting Memorandum of Agreement with FHWA, IDOT, and Iowa State Historic Preservation Office for treatment of houses located at 1252 and 1302 Logan Avenue, be received, placed on file and "Resolution approving said memorandum of 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. Mayor Hurley noted that he visited with Steve Kessell, the owner of property located at 1252 Logan Avenue. Mr. Kessell was upset that he has not received notice that the city will be purchasing his property. Eric Thorson, City Engineer, reported that the city is not committing any money at this time. This memorandum of understanding is part of the U.S. Highway 63 project and deals with treatment of project eligibility for historic and Iowa DOT purposes. Certain procedures and process will be followed. The city will attempt to find someone to move the buildings, with first option to the present owners. If no one is interested in moving the buildings, then certain procedures are followed for documentation prior to demolition. Mayor Hurley asked if we are far enough in the process that we have identified addresses affected by the project. Bob Lentz, of Earth Tech, responded that in most cases the properties have been approved by the IDOT and the city. In most cases, the right-of-way is so tight, we will be purchasing entire properties. The city and the IDOT, in partnership, would be required to follow through the documentation requirements, at no cost to the current owners. Mr. Thorson noted that all are eligible for federal funding and we are looking for matching funds from the IDOT. • • 1 • April 28, 2008 Documents continued Mayor Hurley noted that Mr. Kessell was alarmed because they were waiting to hear whether or not his property would be purchased. Mayor Hurley explained that there have been a number of meetings and articles in the newspaper, but it may be time to contact all the property owners and bring them up to date. Following comments a vote was taken on the above motion with the following result. Ayes: Six. Absent: Hart. Page 5 Resolution adopted and upon approval by Mayor assigned No. 2008-335. 126985 - Reggie Schmitt/Cole that communication from City Planner transmitting Preliminary Plat of Southland Park 5th Addition, together with staff report, aerial photo and preliminary plat, be received, placed on file and "Resolution approving said preliminary plat", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-336. 126986 - Steve Schmitt/Welper that communication from Community Planning & Development Director transmitting Final Plat of Techworks Addition, together with staff report, aerial photo, final plat and Report of City Engineer, be received, placed on file and "Resolution approving said final plat", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-337. 126987 - Steve Schmitt/Welper that communication from Associate Engineer transmitting final breakdown of construction costs for a final contract amount of $3,005,419.51 in conjunction with F.Y. 2006 U.S. 20/Ansborough Avenue Interchange Project, Contract No. 667, be received, placed on file and approved and Mayor authorized to execute same. Ayes: Six. Absent: Hart. Motion carried. 126988 - Steve Schmitt/Welper that communication from Community Planning & Development Director transmitting Property Access. Agreement for property located at 108 Commercial Street for environmental site assessment as part of the Brownfield Redevelopment Program in the downtown, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-338. 126989 Steve Schmitt/Welper that communication from Assistant City Attorney transmitting Acknowledgement/Settlement Agreement in the amount of $300.00 with Hy -Vee Gas, 1512, Flammang Drive, for sale of tobacco, tobacco products or cigarettes to any person under eighteen years of age, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-339. RESOLUTIONS TO BE ADOPTED 126990 - Steve Schmitt/Welper that approve communication from City Engineer transmitting request of Grout Museum District to extend the closure of West Park Avenue from Washington Street to South Street during construction for the Sullivan Brothers Iowa Veterans Museum for two more months, beginning May 1, 2008, be received, placed on file and "Resolution approving said request", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-340. April 28, 2008 Resolutions to be Adopted continued Page 6 126991 - Steve Schmitt/Welper that communication from Community Planning & Development Director transmitting request to accept and approve acquisition of property generally located at 133 Argyle Street, as granted by court order pursuant to Section 657A of the Iowa Code, be received, placed on file and "Resolution approving acquisition of said property", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-341. NEW BUSINESS 126992 - Greenwood/Steve Schmitt that communication from Superintendent of Streets requesting authorization to seek quotes for various asphalt emulsions/bituminous products needed for the upcoming oiling, seal coating, chip sealing, fog sealing and crack sealing programs, be received, placed on file and "Resolution approving said request", be adopted. Prior to a vote on the above motion the following comments were heard. Councilperson Steve Schmitt inquired about US 63 and the viaduct. Mayor Hurley noted that the Waterloo Water Works investigated, and there was no evidence of a leak. There have been conversations with the Iowa DOT who is responsible for US 63. The IDOT is looking at special patching mix which is tolerant of water. Following comments a vote was taken on the above motion with the following result. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-342. 126993 - Greenwood/Steve Schmitt to instruct City Engineer to prepare plans, specifications, form of contract, etc. in conjunction with F.Y. 2006 Donald Street Trail, Contract No. 700, be received, placed on file and approved. Ayes: Six. Absent: Hart. Motion carried. 126994 - Greenwood/Steve Schmitt that plans, specifications, form of contract, etc. in conjunction with F.Y. 2006 Donald Street Trail, Contract No. 700, be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 126995 - Greenwood/Steve Schmitt that "Resolution preliminarily approving plans, specifications, form of contract, etc. in conjunction with above described project", be adopted. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-343. 126996 - Greenwood/Steve Schmitt that "Resolution setting date of hearing on plans, specifications, form of contract, etc. as May 19, 2008 at 5:30 p.m. at Veterans Memorial Hall on the above described project", be adopted and City Clerk instructed to publish notice of same. Ayes: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-344. 126997 - Cole/Reggie Schmitt that communication from General Manager of Waterloo Water Works transmitting request to certify the amount of $2,280.00 for work performed by the Water Works at 526 Center Street, together with recommendation of approval of Waterloo Water Works Board of 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: Six. Absent: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-345. • • • • April 28, 2008 ORAL PRESENTATIONS 126998 David Meeks, Director of Waterloo Human Rights Commission, invited everyone to attend the Commission on Human Rights Fair Housing Forum on Wednesday, April 30, 2008 from 6:00 to 8:00 p.m. at the Center For The Arts. Page 7 Getty/Steve Schmitt that the above oral comments be received and placed on file. Ayes: Six. Absent: Hart. Motion carried. 126999 - Getty/Reggie Schmitt that the council recess at 4:35 p.m. and reconvene at 5:30 p.m. on Monday, April 28, 2008, at City Hall Council Chambers for the hearings on the annexation and rezoning request of Elk Run Energy Associates, LLC. Ayes: Six. Absent: Hart. Motion carried. The Council of the City of Waterloo, Iowa reconvened at City Hall Council Chambers, Waterloo, Iowa, at 5:30 p.m. on Monday, April 28, 2008. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. HEARINGS 127000 Reggie Schmitt/Greenwood that proof of publication of notice of public hearing on request of Elk Run Energy Associates, LLC on behalf of property owners for a voluntary annexation of approximately 346.61 acres of property generally located along Merle Road, north of Newell Street, X mile east of N. Elk Run Road for purpose of constructing a 750 -megawatt coal-fired electric generation facility and rescind Resolution No. 2007-332 in its entirety, as published in the Waterloo Courier on April 11, 2008, be received and placed on file. Ayes: Seven. Motion carried. 127001 - This being the time and place of public hearing, the Mayor called for written and oral objections. Nancy Eckert, City Clerk, reported that numerous letters and e-mails from persons and organizations in favor and opposition and documents that were received at the Planning, Programming and Zoning Commission hearing are on file in the City Clerk's office. Councilpersons Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper and Reggie Schmitt reported on any ex parte communications/meetings regarding the annexation and rezoning request from Elk Run Energy Associates, LLC. Council Members discussed disclosure of campaign contributions from organizations or individuals who are proponents or opponents of the Elk Run Energy Associates, LLC project. Jim Walsh, City Attorney, noted that disclosure of campaign contributions are a matter of individual decision, and that maybe you wouldn't know at the time of the contribution if an individual was for or against this project, but if a known organization contributed, you probably should disclose. Councilperson Hart noted he received $100.00 campaign donation when he was not in office. Mayor Hurley reported his communications/meetings, articles, phone calls regarding the annexation and rezoning request from Elk Run Energy Associates, LLC. Mark Milburn, Elk Run Energy Associates Project Developer, reported they are a part of Dynegy and noted that the company has projects underway in Arkansas, Texas, Georgia and Nevada. Mr. Milburn noted that they have pledged funding for UNI for students within Black Hawk County, KBBG, and the eastside redevelopment, all exceeding $1 million. Daniel Hennen, Elk Run Energy Associates Corporate Counsel, reviewed the annexation and rezoning request. Mr. Hennen noted that the annexation request a year ago was not 100 percent voluntary as this request, and the city needed approval of the City Development Board, with the Board denying the annexation on the grounds the areas included without consent of the landowners did not avoid the creation of an island or create more uniform boundaries. Mr. Hennen noted tonight's annexation request is 100 percent voluntary, and if council approves the annexation there will not be a need for further approval. Mr. Hennen noted there is no legal requirement to build within the city limits, and that they based their decision on a number of services only the city could provide. They will need infrastructure such as utilities, police and fire protection. In addition, they want to use the skilled labor force in the city. April 28, 2008 Page 8 Hearings continued Mr. Hennen noted if Elk Run Energy does not build in the city, the tax base will go elsewhere. Nadza Jusufovic, Project Engineer, noted the 750 -megawatt coal-fired electric generation facility will produce enough electricity annually to accommodate the needs of approximately 500,000 homes. Construction on the plant could begin as early as 2009 and last four and five years and deliver electricity as early as 2013. Ms. Jusufovic noted this site was selected because it met the resources and infrastructure needed such as water, rail, and solid waste facility. This project will bring more than $1 billion capital investment and support on economy. Ms. Jusufovic noted that the Greater Cedar Valley Alliance commissioned a study to evaluate the economic impacts on the Cedar Valley on the proposed plant, including Grundy, Bremer and Black Hawk Counties. The study included short-term impact during the construction period and the long-term impact during the facility's operational years. The total local economic impact during construction is estimated at $271 million, and the overall expected labor income during construction is $210 million. The construction period will provide 1,500 jobs, and 100 full-time jobs once in operation. The study indicates the project will be responsible for creating at least 331 new jobs in the area. Elk Run Energy will pay over $3 million in annual replacement generation tax revenues to the state and local jurisdictions. Bryan Rushing, Manager, Power Origination, reported that the site was selected because of its regional local growth and strong local infrastructure. They will be selling power to wholesale customers in the state, municipalities and rural co-ops. In three years, they have signed three letters of intents and have verbal commitments for a total of 500 megawatts. Mr. Rushing noted that Resale Power Group, representing 29 municipal electric utilities, have come forward. David Wilson, Environmental Engineer, reported Elk Run Energy Associates will undergo extensive regulatory oversight by state and federal authorities, including the Iowa Department of Natural Resources, Iowa Utilities Board, U.S. Environmental Protection Agency and U.S. Army Corps of Engineers. The plant will comply with all federal laws, including the Clear Air Act, and the Clean Water Act. Mr. Wilson reviewed the environmental and emissions aspects of the proposed plant. The plant is designed to burn up to 10 percent biomass, and they have committed $400,000 for biomass research by the University of Northern Iowa to help identify an economically viable solution. The plant will use available effluent from the water pollution control facility. The effluent is currently treated and discharged to the Cedar River. Elk Run Energy will use the treated effluent for use in the facility's cooling tower and emission control systems. Mr. Wilson explained their stormwater pollution prevention plans. Mr. Wilson explained that coal combustion by products are non -hazardous and it will be sent to the quarry, which can be used as reclaimed space for greenspace and recreation. This beneficial use is regulated by the Iowa Department of Natural Resources. Mr. Wilson explained the practice to protect groundwater, and he noted that the plant will be clean and safe for the public health. Craig Ritland explained the land use related to the site. The plan includes wetlands restoration to mange water levels and enhance habitat, windbreaks to help control erosion. They will use agricultural, grass land management, and native prairie and native hardwoods in conjunction with agriculture and industrial use. Recreational use includes a multi -use recreational trail on the site. Bob Lantz, Earth Tech, explained the Transportation Study prepared by Earth Tech to evaluate traffic that would be generated from the site. During the construction phase, the majority of traffic will come from the up to 1,200 employees, and up to 30 trucks per day. Employees come from various locations. Newell Street between Elk Run Road and the plant would need to be upgraded. During the operational phase, employee traffic would be less in number than during the construction phase. Approximately 33 trucks per day will go the quarry. The recommended truck route will be to use existing streets and roadways currently used as truck routes and to use state highways when possible. The truck routes will not pass through downtown Waterloo or residential streets west of Elk Run Road. Mr. Lantz explained that coal will be delivered to the plant by rail, with an average of one train in and one out every two days. The existing tracks carry eight trains per day. The railroad company said the trains operate at 10 mph coming into town and the route to reach the plant would not require stopping or switching so the railroad crossings should be blocked for about nine minutes. • • • • April 28, 2008 Earth Tech met with 18 representatives from the police and fire departments, MET Transit and the schools who provided information on blocked railroad crossings. The City of Waterloo has fire stations on both side of the railroad tracks, and the Police Department has units on streets on either side of the tracks. Blocked railroad crossings could result in more frequent delays for school buses and could affect the scheduled school bus routes. The proposed use of biomass fuels could add an estimated 50 trucks loads delivered to and from the plant each day. The following mitigation measures were recommended: improve Newell Street, not allow truck traffic on Newell Street during construction, use designated routes, use covered or enclosed trucks, contract outgoing trains so they are not sent out during peak times. Mr. Lantz noted that LS Power has committed to accepting these mitigations. Page 9 Doug Shindel of Earth Tech explained the stormwater analysis and drainage. The planting of prairie grass and use of wetlands will help reduce runoff. Construction of detention basis will reduce runoff conditions for the 100 -year rainfall event to 2 -year pre -development condition. Mark Milburn noted that Elk Run Energy has agreed to all mitigation and upgrades. The project will undergo extensive oversight ensuring that the site is safe for the neighbors and employees. Mr. Milburn noted that they have letters of support from the Greater Cedar Valley Alliance, INRCOG, Waterloo Building Trades, Chambers of Commerce, Waterloo Industrial Development Association, Waterloo Development Corporation and Resale Power Group of Iowa. Tom Huff, 707 Hall Avenue, noted the question has been asked why don't we go after Cedar Falls, but they would need a suitable replacement. Cedar Falls already has an outside provider. Mr. Huff noted he tried to contact LS Power to discuss potential carbons and he got two no answers. He does not expect LS Power to buy Cedar Falls out or expect Cedar Falls to slow down. Mr. Hull noted there have been violations of the open meetings law, unresolved railroad issue, waste disposal concerns, concerns with neighboring community, and they could contract with an outside contractor. Mr. Huff noted LS Power has sold every project up to 2006. Don Shatzer, 6515 Newell Street and Vice President of Community Energy Solutions, spoke in opposition to the annexation and rezoning requests. This land is out of the city limits and should not be considered smart growth, its flag pole annexation, and its not in the Waterloo School District. This is rated as prime farm land with a CSR rating of 78. Mr. Shatzer noted 10 percent of jobs in Black Hawk County are agricultural related. Mr. Shatzer noted this would be a classic example of urban sprawl and asked the council to reject this request and be good stewards of the land. Mr. Shatzer submitted written comments regarding petition from Jena Linderman. Michaela Fishback, 1318 West 2nd Street and a 4th Grader, commented that her Mom has asthma. Ms. Fishback commented she doesn't understand why we are not going with wind farms which are cheaper, cleaner and produce more energy. Ms. Fishback noted she is worried when the plant is built, more African Americans will get asthma. Ms. Fishback commented she feels there should laws against coal plants, and where the plant is going to be located will mean less crops. Ms. Fishback noted she has a friend on her soccer team who has asthma and she gets pulled out of the game a lot. Mike Mallaro, 1111 San Marnan Drive, noted he works in Waterloo and lives in Cedar Falls and lives two miles from two power plants. There is no outcry in Cedar Falls, no public outrage, but they are the envy of the state. Mr. Mallaro noted he had a chance to visit the Alliant Coal Plant in Ottumwa, and he was hard pressed to find anyone who would say anything negative about it. The Council Bluff plant is a busy economic area, with housing and community fastest growing in the state. Mr. Mallaro noted this is a great project for Waterloo, and there will always be a small group who oppose. Darin Beck, 209 N. Roosevelt Street, Cedar Falls, spoke in support of the plant. Mr. Beck noted the cost of gas keeps going up and nothing is being done to lower our dependency and something could happen as its all about supply and demand. Neither the Republicans nor the Democrats have done anything. This plant is a rare opportunity to have a say in our future. Mr. Beck noted to attract companies, we will need electricity, and the closer you are to the supply, the lower the cost. Mr. Beck noted he does not believe this is a city issue, but a Washington DC issue. Mr. Beck commented that supporting the plant means jobs and dollars. Lyle Taylor, Hudson, noted he supports the project mainly because of what it will do for us in times of shortage. Mr. Taylor thanked the LS Power group for April 28, 2008 Page 10 how quickly they got him answers about service and new things coming on the market. Mr. Taylor noted this project will become a community project. Mr. Taylor noted that in five years we will have surplus labor so we need to find plants so they can be permanent employees. We have an opportunity to prepare for that, build homes and train workers. Wally Taylor, Attorney for Iowa Chapter of the Sierra Club, submitted 18 pages of written statements. Mr. Taylor noted Iowa Code Section 414.3 requires that zoning issues be made in accordance with a comprehensive plan. A few years ago, the Supreme Court held that a rezoning proceeding is a quasi-judicial process, which means the decision by the council must be based on substantial evidence. Elk Run has the burden of proof to show that the proposed rezoning satisfies the statutory requirements. Mr. Taylor noted that according to the statutory criteria applied to this request, the rezoning cannot be in conformance with the city's comprehensive plan because the land being zoned has not been in the city. Mr. Taylor noted this is good agricultural land with a high CSR. Mr. Taylor noted this is not efficient urban redevelopment, but leap frog rezoning. Mr. Taylor noted there are health and general welfare issues. Cathy DeSoto, 205 Prospect Avenue, submitted an e-mail from Councilperson Cole saying that the scientific information does not pertain to the annexation and rezoning issues, an e-mail from Jim Walsh regarding his advice to the city council, correspondence from the Environmental Protection Agency, an article from Science Daily, excerpts from the National Academy of Science about the health effects from coal fired power plants. Dr. DeSoto noted that that the idea that the city council should not consider the health effects but leave to the DNR surprises her because she feels the city council is to look at what's best for citizens. The DNR is to consider whether the applicant meets the requirements. Ms. DeSoto noted that Ordinance No. 2479 states the purpose of the zoning ordinance. Ms. DeSoto noted that a letter to the editor says there are no health effective from living next to a coal plant. Margaret Whiting, 1974 Caras Road, noted that the Planning, Programming and Zoning decision must consider the health and welfare of the citizens. Mr. Whiting noted that particulate matter PM2.5 emissions are released from the smokestacks. This particulate matter cause pre -mature births and other health effects. Ms. Whiting noted that LS Power did not include particulate matters. Ms. Whiting presented charts regarding ambient air quality standards. Ms. Whiting noted that the alarming thing is we have already exceeded allowed levels by the EPA. On February 24, we were over the maximum and twice in 2007 we were in violation. Ms. Whiting commented that Waterloo could be in violation of the EPA standards if the coal plant is built and that could stunt further economic development. Ms. Whiting explained a chart showing CO2 prices versus coal. Ms. Whiting noted that CO2 prices make wind cheaper than coal. Tom Penaluna, Cedar Falls, noted that he spends the majority of his working hours in Waterloo. Mr. Penaluna read a resolution adopted by Waterloo Industrial Development Association in support of the coal plant. Mr. Penaluna commented that Elk Run Energy will bring improvements to our quality of life, and he supports the plant. Mark Kittrell, Cedar Falls resident and Vice Chair of the Greater Cedar Valley Alliance and Techworks, noted that they are large power user and support this project. Mr. Kittrell noted he heard a lot of pros and cons, had a lot of conversations and attended meetings. Mr. Kittrell explained he supports this project because Waterloo and Cedar Falls need this project, that no growth comes without issues, that the developer has done a terrific job, they are all good corporation. Mr. Kittrell noted he feels coal is the best solution. Hugh Field, Past President of Waterloo Industrial Development Association and a member of the Greater Cedar Valley Alliance, spoke in favor of the plant. Mr. Field noted he has given contributions to several of the campaigns. Mr. Field noted that Louis Beecher obtained the site for John Deere, he was city attorney when Eagle Tannery and IBP facilities went in. This is an industrial area and it is the city's plan to locate industry in this part of the town. A representative from Elk Run Energy noted that she does not know of anyone here who is a scientist or physicist. There is a group in the state who will exam and decide if the application meets the standards. There are people who will look at this and she urged everyone to listen to them. Dave Wilson responded that regarding particulate matter LS Power will be required to show that they won't contribute to that. The council recessed at 7:35 p.m. • • • • April 28, 2008 Hearings continued The council reconvened at 7:45 p.m. with all council members present. Dr. Linda Huss, 6411 Newell Street, noted she opposes the plant as evidence is overwhelming about the particulate matters which cause strokes, asthma, and cardio diseases. The Black Hawk County Board of Health has recommended a moratorium be placed on coal plants. Dr. Huss asked the council to use the experts in their community. Dr. Huss noted that LS Power is building one in Texas. There is an expected mortality of 13 people per year. Dr. Huss asked the council to either deny or table the request. Page 11 Jeri Thornsberry, 704 Sheridan Road, commented that this petition is not in accordance with the principles of responsible municipal planning as set forth in both City Code Section 2-1-4 and Iowa Code Section 414. Both sections require responsible action by the council to protect the health, welfare and safety of every citizen. Ms. Thornsberry noted that completing a cost benefit analysis coupled with a risk assessment of future liabilities is standard practice for any large project - private or government. Ms. Thornsberry asked why has the council not directed staff to complete such an analysis. Ms. Thornsberry noted that not evaluating potential expenses and future liabilities is failing to perform due diligence. Ms. Thornsberry asked why is there no performance/assurance bond required. LS Power's obligations are measured by "good faith" and terms at the "sole discretion" for using methane gas, waste water, biomass fuels and conservation methods. Ms. Thornsberry asked how is a contractual agreement containing such open-ended, non-specific statements with no firm obligation to perform in the best interest of the citizens of Waterloo. Ms. Thornsberry noted that LS Power has had meetings with the Technical Review Committee, members of the Planning & Zoning Commission, Mayor Hurley and staff giving an advantage to LS Power. Ms. Thornsberry asked council if they will have questions of LS Power or will they follow the lead of the Planning, Programming and Zoning Commission and not ask one question. Betty Sadler, 2620 Crain Creek Road, noted that Section 4.8 of the Transportation Study in the Development Agreement says the Developer agrees to use commercially reasonable efforts to employ all of the recommended mitigation measures identified in the Transportation Study with the intent of minimizing adverse impacts to the local community. Ms. Sadler noted that "commercially reasonable" means that LS Power does not have to comply with the Transportation Study 100 percent, but only has to do their best as any other business would do. There may be factors beyond LS Power's control. The city negotiated if Elk Run Energy deems that the mitigation criteria becomes too expensive the Development Agreement can be reopened to negotiations. Since there is no municipal planning to bring 346 acres of farm land into the city, Ms. Sadler asked how can the public be assured that the council will hold the best interests of its citizens foremost in any negotiations. Ms. Sadler noted she is perplexed about the green office complex proposed near Tower Park in Sunday's paper. The developer wants to offer various forms of alternative energy, and she asked why does that side of town get the green project and the east side gets the dirty heath threatening project. Bryan Burton, Greater Cedar Valley Chamber of Commerce, noted he wanted to go on record to support this project and he urged the council to approve this request. Mr. Burton noted he attended many meetings and met with LS Power and he personally supports this project. Jared Bauch, 902 Mill Street, Traer, Iowa, noted he is concerned about the impact on his community because of wholesale purchase of electricity. They are a part of the Resale Power Group of Iowa (RPGI) and can't get supply of two years and it is at a high rate. Mr. Bauch noted he is very interested in having this plant built because they want to have another buyer to go to. Mr. Bauch noted that Alliant Energy was quoted in the Des Moines Register that they pass on their costs to their customers. For Alliant and Traer, the irregular or unsure costs makes it hard to budget. Mr. Bauch noted that solar and wind mills are good, but are they ready to supply all our needs. Mr. Bauch noted that regarding the health issues that if the plant is not built, the high cost for energy will increase the health costs. Dan Sabin, President of Iowa Northern Railroad, noted his company would be operating the lines that the coal trains would be using. Mr. Sabin noted that they care about the efficiencies of the trains. Once this is approved, they will work closely with the city as a community and with LS Power to mitigate any concerns about rail and do everything they can as a good neighbor to do the job right. Jo Martin, 525 Sheridan Road, noted she does not feel annexation for a coal plant is in the best interest of the citizens. Ms. Martin noted that LS Power April 28, 2008 Page 12 is rushing to build this plant before more stringent regulations are passed, and LS Power hopes to be exempt from new regulations. Ms. Martin noted that the Black Hawk County Engineer estimated it would cost $15 million for roads and drainage, and it will cost $10.5 million to improve Newell Street. Waterloo will receive $1,190,000 replacement taxes. Ms. Martin asked do we want a coal plant for economic reason but environmentally unsafe. Renata Sack, 414 Sunset Road, noted that a coal plant will have a long-term impact and will threaten our quality of life for years to come. Ms. Sack noted that the data given to council by representatives of LS Power promises state -of - the -arts, non-polluting, quality of life enhancing assurance that suggest that this plant would not harm this environment or our quality of life. Ms. Sack noted that even though this plant would be less polluting than plants of its kind built 30 years ago, this 750 megawatt plant would still emit hundreds of pounds of mercury, large amounts of PM 2.5 and millions of tons of CO2 in addition to other heavy metals toxic to the environment. Ms. Sack noted that the Black Hawk County Board of Health asked for a moratorium on building of coal plants. Particulate matters are serious to our health. Ms. Sack noted that the PM 2.5 counts already exceeded permitted levels in Waterloo on February 24, 2008, as measured at the Grout Museum. Ms. Sack noted that the federal government will regulate carbon dioxide in the next few years, the cost of electricity from coal will rise sharply and electricity produced from wind and sun will become cost attractive. Ms. Sack asked the council to listen to facts and consider voting no. Joan Webster-Vore, 202 Bonnie Boulevard, Hudson, noted this area is not in the city's comprehensive plan. Ms. Webster-Vore discussed the effects of global warming. Ms. Webster-Vore noted that municipalities and states are increasingly regulating coal plants. Ms. Webster-Vore noted that in 2007, 59 coal plants were put on hold, three were LS Power plants. Ms. Webster-Vore noted that the trends is renewable energy. Kris Stubbs, representing Resale Power Group of Iowa, noted that RPGI purchases electric energy, capacity, and transmission services as an agent for and on behalf of its members, most of which are municipally -owned. RPGI acquires electric energy use in its participant's communities through purchased power agreements from suppliers in the upper Midwest. Currently, most of that energy is generated in central and southern Illinois. RPGI seeks long-term, dependable and economically -delivered electric power sources for its members. Ms. Stubbs noted that dependable coal-fired base load electric generation plants are imperative for any economically efficient mix of power supply sources in the upper Midwest. Ms. Stubbs noted that with the aging fleet of coal-fired units, the uncertain future of Iowa's only nuclear -powered generation plant and the less -than -certain capability of wind systems to operate continuously, it is imperative that efficient new coal-fired generation plants be built in Iowa giving more choices. Ms. Stubb noted that the RPGI Board strongly supports the construction and operation of the planned new coal -fire based load electric generating unit at the Waterloo site. Ms Stubbs submitted letters of support from Hopkinton Municipal Utilities, City of West Liberty, Buchanan County Economic Development Commission, City of New Hampton, City of Traer, Mount Pleasant Municipal Utilities, Vinton Municipal Electric Utility and the City of Waverly. Steve Dust, 10 West 4th Street and the Greater Cedar Valley Alliance, encouraged the council to vote yes. Mr. Dust noted it is not unusual to annex land for developers. Mr. Dust noted Waterloo is ready and invested heavily in the northeast site, and that Elk Run is a logical next step in the growth of this heavy industrial area. The economic benefits from this project are significant, and tax revenues are impressive approaching $1 million. Mr. Dust noted that economic growth requires energy and to attract business, we need adequate electricity. Mr. Dust noted the plant is a good addition to the Cedar Valley and he asked the council for approval. Joe Vich, 1525 Olympic Drive, noted the Cedar Valley has been on a roll, drive around and look at what we have accomplished in the past ten years. Mr. Vich noted that we had a hiccup with Mansanto and we can't afford to do that again, and that projects like this don't come often. This plant would be the single, largest economic development in our history. Mr. Vich noted that LS Power years ago came to Waterloo to talk about bringing this plant here, they have been committed since day one and responsive to questions. Mr. Vich noted those opposed are rightly concerned and need to be answered at the appropriate time and with the appropriate group. Mr. Vich urged the council to vote yes. Pam Echeverria, 4213 Cherrywood, Cedar Falls, noted that the African-American Study released last week raises questions for anyone considering building a coal • • April 28, 2008 Page 15 Hearings continued Ms. Jensen asked how many of the council lives by the coal plant, and commented that it bothers those in the surrounding areas that they were not given any consideration. A resident of Cedar Falls commented that to vote for the plant a person would have to hide from the heath dangers. The council could put health danger in the shadow of economic development or tell themselves that some other body will decide the health issues. Numerous members of the Iowa Building Trades Council AFL-CIO spoke in support of the project citing the 1,000 construction jobs over four years, over 100 permanent jobs, the good wages and benefits. Kathy Engels read and submitted an article from the Tampa Tribune. Ms. Engels noted she hopes this fails as she does not want to see children become sick. Ms. Engels commented that the revenues will need to overcome the health problems. Ms. Engels noted that Mr. Milburne said his wife and children are sick with asthma living next to a coal plant. Ms. Engels noted that there were a room full of experts at this meeting who were not paid to be here. The resident at 1116 West 5th Street commented that Elk Run said that the fly ash is not big deal but it could reach the groundwater, and he is concerned because he doesn't want to drink mercury. He was concerned that this request seemed to be sailing through. He noted he did not want to live in Waterloo if the power plant is built, that he would sell his house and pay taxes where there is no plant. He commented that if the council votes yes, he hopes someone will run against them. He commented that it seems unfair to him that Elk Run gets to get up and rebuttal. Jana Linderman, attorney for Community Energy Solutions, noted there have been a lot of comments about the jurisdiction of the Iowa DNR. The Iowa DNR has the jurisdiction to issue air permits and to issue discharge permits. Ms. Linderman noted that the Utility Board sets rates and makes sure the electricity meets its need. Ms. Linderman noted that the basic responsibility of any government is to protect the public health and welfare. The council has the obligation to be aware of and to give due consideration to the environmental and health impact of any development proposal. Ms. Linderman noted that Council Bluff is part of the MidAmerican system. Ms. Linderman noted that the environmental person for Elk Run said that coal combustion is not hazardous, but it is in fact highly contagious. Ms. Linderman noted that the council's obligation is not to ensure a utility but to protects its citizens. Michael Blackwell noted that the Project For The Beloved Community opposes the coal plant. Research shows that such plants are the primary industrial source of air pollution in the country. The proposed location of the plant mirrors the environmental injustice that plagues African-American neighborhoods all over the United States. Racial and ethnic minorities have a deplorable lack of access to quality healthcare. Mr. Blackwell noted that the disproportionate number of Blacks affected with asthma and other respiratory ailments along with cardiovascular diseases can be tracked to pollutants from power plants. Mr. Blackwell noted that particulate matters are inhaled into the lungs putting the elderly and children at risk. Mr. Blackwell noted that all populations are vulnerable to carbon dioxide which is generated when coal is burning. Mr. Blackwell noted that existing clean air and water acts are insufficient as they do not require the necessary reduction of the pollutants. The Environmental Protection Agency is not able to handle the current crisis related to industrial facilities illegally pouring pollutants into our air and water. That is why many cities around the country are placing moratoriums on new power plants. Mr. Blackwell noted they are opposed to the proposed plant, and he urged the council to strike down any proposal to build such a facility which would be a morally right decision on behalf of the children. Mark White, 625 Stephan Avenue, noted that there are no guarantees the unions will get the jobs. He noted that billions of dollars of raw material will be shipped into Waterloo. Mr. White noted the other day he decided to clean out his garage and a week later he received a note from the city that he should put dust making material in a separate carton as it contaminates the rest of the garbage. Mr. White feels that the dust comes from coal producing plant in Cedar Falls, and construction from around town. He asked what provisions are being made when train and trucks come to town. Ruth Walker, Cedar Falls and a member of the Community Energy Solutions Board, asked why would the council vote for this project when there is evidence against April 28, 2008 it. Ms. Walker noted that Mr. Milburne worries less bout the asthma in his family because he can afford health insurance. Ms. Walker noted that Progress for Cedar Valley did not see the particulates that bother the elderly and little children, and that people who will be affected live in the northeast. Ms. Walker noted that religion teaches s to be good neighbors. A gentleman noted that he lived in Waterloo for 55 years and now lives in Cedar Falls. He noted that he lived by the Rath Power Plant, that the nuclear plant was built in the 60s and is only good for 30 years. He noted he worked in the John Deere foundry and got black lung. He asked are we going to be hot or cold, that he doesn't John Deere will stick around if energy costs go up. Page 16 Jim Reidy, 262 Alta Vista, noted that the Cedar Falls Utilities and UNI burn coal every day, and he did not hear anything negative about the burning coal until LS Power's proposal to build a plant. Mr. Reidy noted he visited Rochester, Minnesota and they have a coal burning facility in the middle of town and within a six minute walk of the Mayo Clinic. Mr. Reidy noted that the United States' supply of coal will last for 400 years, and he thinks that will be our major source of energy for years to come. Mr. Reidy noted he feels this project is a good idea, it will improve our tax base and people will be needed to fill the positions. Mr. Reidy noted he thinks we should rely on the state to issue the proper permits. A member of the union noted that he went to the dentist and the dentist asked if he wanted a porcelain filling or silver. The dentist told him he had to ask that question because silver has mercury. He noted that there are union members working all over and families living here and he would like to have them come back. Bill Kammeyer, 526 Home Park, noted he was raised in Waterloo and when he went to school he had to cross the WCF&N railroad tracks, and he always had to deal with those tracks, that the trains never stopped him. Mr. Kammeyer noted that we are always saying no in Waterloo, and he wanted to thank Elk Run Energy for coming here and for being persistent. Mr. Kammeyer noted that we need power, we want more housing that will take more electricity. Mr. Kammeyer noted that Elk Run will build the plant as safe as possible, and that there are government agencies to oversee the environmental and health issues, not the city council. Mr. Kammeyer noted that if the new plant helps his taxes, than he will support it as it is another source of revenue that we cannot overlook. Matt McNeil noted that there used to be a saying not to rob Waterloo because its too hard to get around trains in Waterloo. Mr. McNeil noted that the lady who talked about affecting the water supply in Cedar Rapids, he thinks Cedar Rapids now has wells. Mr. McNeil stated he supports the new plant 100 percent. Linda Laylin, Greater Cedar Valley Alliance, noted that Elk Run Energy selected this site because it met all their requirements, and that they have done all they said they would do. Ms. Laylin noted the council should support this over $1 billion project because it means additional jobs, latest technology, it will generate tax dollars, and will stimulant additional funds because of the development. Ms. Laylin noted that if the project meets the city's minimum requirements, then council should approve. Reverend Bill Straka read a letter from Reverend George Karnik who lives at 750 River Forest Road. Reverend Karnik asked if the council is primarily and only interested in financial issues regardless of what science reports about coal - burning power plants. Does the council see this also as a moral issue or strictly a business matter. Does human health and the future of the planet matter to them. Reverend Karnik noted he read the information that promotes all the financial benefits that would come from LS Power building the plant, but he feels all these claims are in gross contrast to the scientific facts presented by neutral, environmental professionals. The studies and reports such as the one presented by Professor Bill Stigliani about the harmful emissions of the proposed station contradict what LS Power has been putting out. Comparisons have been made to coal burning plants in other cities, such as Rochester, Minnesota. The point stressed is that if all these doctors see no ill effects from their plant, then what do we have to worry about. Such a plant, or one like Cedar Falls Utilities, does not compare with what an Elk Run Energy Station would spew into the air. Reverend Karnik urged the council to reject this proposal for the sake of the common good. • • April 28, 2008 Hearings continued Page 17 Reggie Schmitt/Cole that the hearing be closed and recommendation of approval of Planning, Programming and Zoning Commission, letters in favor and opposition, and oral and written comments be received and placed on file. Ayes: Seven. Motion carried. 127002 - Noel Anderson, Community Planning & Development Director, reported that the annexation request asked that the city suspend the restriction on burning, restriction on discharging a weapons and the provisions of the Property Maintenance Code. Elk Run Energy Associates indicated that based on the wishes of a property owner, they agreed to ask for the waiver of these restrictions. Mr. Anderson noted that staff has recommended denial of the waiver. Reggie Schmitt/Cole that applicants' request for waiver of Section 4-3-7(C), Section 5-2-6(A) and Title 9, Chapter 1, Article B, be denied. Ayes: Seven. Motion carried. 127003 - Councilperson Greenwood supported the requests for annexation and rezoning because they follow the criteria of what the city is trying to do on the Northeast site. Councilperson Greenwood noted that there is a need for base line energy, and he feels this is good for economic development in the city. Councilperson Steve Schmitt noted he had a number of questions concerning the heath standpoint, but he does not have that expertise and will rely on the state, but noted he is concerned as a father and a grandfather with these issues. We all need jobs and the future of Waterloo needs more growth. Councilperson Steve Schmitt noted that the Greater Cedar Valley Alliance and a state senator in Des Moines after the Supervisors voted down the Monsanto project said what is wrong with Black Hawk County. Councilperson Steve Schmitt asked if there is a block of land within the city limits what would be less disruptive and closer to town. Mark Milburn responded that Elk Run Energy looked at the size and location of the land, the proximity to transmission land, access to water, roads, etc., and finding a piece of land available with an owner willing to sell. Elk Run also looked at wetlands and flood plains, and identified this land as the most suitable site. Councilperson Steve Schmitt asked if access to the distribution network is already in place, and Mr. Milburn responded that the process is not completed. Councilperson Steve Schmitt asked if it has been finalized as to who will be responsible for water and sewer improvements. Mr. Milburn responded in the development agreement they will negotiate with the Water Works for appropriate terms to bring water to the site. The Water Works has necessary capacity, but upgraded infrastructure will be needed. Mr. Milburn noted that Elk Run Energy will pay for the majority of the cost or other businesses could share in the costs. Councilperson Steve Schmitt asked if all the road improvements have been addressed. Eric Thorson, City Engineer, responded the concepts show the roads to be adequate and LS Power will pay for them per agreement. Councilperson Welper noted that it came up in tonight's meeting that the city has reached its air quality permit, and he asked if the plant is built will the city exceed our permit for air quality, and if Elk Run is granted a permit will that mean we can have no additional development. Elk Run Energy responded that the air quality standard is in place to protect public health. Elk Run Energy has to demonstrate that they won't exceed these standards. As for future growth the state looks at the cumulative on each receptor each day. Councilperson Welper noted that the use of good agricultural land has been brought up. If a person lives in Iowa, you either live in the city or on farmland as there are no mountains or hills. Councilperson Reggie Schmitt noted that last year and again this year we hear up to 750 megawatt in net capacity, and he asked could that mean that there could be more than 750 megawatts. Mr. Milburn responded Elk Run would have the right to put out 750 megawatts for sale, but gross output of the plant might be higher. April 28, 2008 Page 18 Hearings continued Councilperson Reggie Schmitt noted that several speakers tonight stated that the city exceeded the air quality standards, and he wanted to clarify when Black Hawk County exceeded the air quality standard it was measured at the Grout Museum which is under construction. Councilperson Reggie Schmitt commented on the fine particulate matters and noted that we are surrounded by farmland and some of the matter is coming from the topsoil and forest fires in Russia. Councilperson Cole noted that under environmental compliance Elk Run must comply with the US Army Corp. Mr. Milburn responded that they have jurisdiction over the wetlands. Councilperson Cole asked if this property is in the flood plain. Mr. Milburn responded that Elk Run Creek to the Morgan home is in 100 year flood plain, but the other property is not in flood plain. Councilperson Hart noted this has been one of the most thought provocating situations in looking at economic impact as it is the largest project in the history of the city, and some of the organizations he works with support this project. Councilperson Hart thanked Elk Run Energy for all their donations and asked if the annexation request does not past and they have to build outside the city limits will these organizations such as KBBG and the Highway 63 Gateway Community Development Corporation get to keep those funds. Councilperson Hart asked if the EPA regulations change next year, will Elk Run Energy have to keep up with those regulations. Mr. Milburn responded that the commitment to fund those organizations are a part of the development agreement and these commitments are contingent on Elk Run Energy building in this area. If Elk Run Energy builds in the country and not the city they would honor these commitments. Mr. Milburn noted that Elk Run Energy will keep with the changes, that regulations constantly change after the operator is issued a permit. If the registration changes, Elk Run Energy is subject to whatever Congress says, although sometimes plants are grandfathered in. Mr. Milburn noted that Elk Run Energy complied with the rules in their other plants, but he couldn't say if they ever had a violation, they could have but they would have stopped and fixed it right away. Councilperson Greenwood asked what would Elk Run Energy have to pay to dispose of the carbon. Mr. Milburn responded that the cost of materials, labor, fuels and coal have gone up, and that the cost of the carbon is still unknown. Mayor Hurley asked if energy is needed and its produced who will pay the higher cost. Mr. Milburn responded that all of it is hooked up to the grid. Councilperson Steve Schmitt noted he has an e-mail regarding the flood plain, and that it is his understanding if the city denies this request, Elk Run Energy will go before the county, and Mr. Milburn responded yes. Councilperson Steve Schmitt asked if a railroad spur is needed who would pay. Mr. Milburn responded there are three major ways to get the coal. Two would require additional spurs with one from the south going directly to the site. Elk Run Energy will work with the entity and private owner, but typically the railroad is responsible to deliver directly to their site. Councilperson Steve Schmitt noted that in response to the problem with the wicker furniture Elk Run Energy won't be able to control but once you have control Elk Run Energy would have control of the trucks and he asked if the trucks would be covered. Mr. Milburn responded any transportation they are responsible for is covered under the permit with the DNR so they will be providing mitigation. Councilperson Steve Schmitt asked if coal gasification would be more expensive. Mr. Milburn responded that is something on the horizon, but there was a joint research project on a larger scale, but that funding was pulled. Mr. Milburn noted that coal gasification is old and does not have a good record of reliability. It is very interesting and promising for the future but he thinks it is years and years away. Several utilities have asked and been denied because of high cost of uncertainty. Councilperson Welper noted that we all have been asked to think green and Mr. Milburn just spoke of nuclear energy but wind energy seems to be the latest thing. Councilperson Welper noted that Elk Run Energy is proposing a state of the art coal plant and asked if they have any other ones. Mr. Milburn responded Council Bluff is an example. Councilperson Welper noted we are being told there are tons of mercury and asked if these numbers are correct. Mr. Milburn • • • • April 28, 2008 Page 19 Hearings continued responded their mercury load is 108 pounds per year and Elk Run is submitting those figures to DNR, but they believe it will be much less. Mr. Milburn noted that older plants of similar size are emitting 1,000 pounds per year. Mr. Milburn noted that regardless of mercury rule, they are putting in best technology available. Councilperson Hart asked when folks talk about health impacts for African- Americans is there any correlation to the mercury disproportionate. Mr. Milburn responded there have been studies where they make correlation, and that some studies use a lot of old industrial plants when they see the correlation. Councilperson Hart asked who is responsible on the plant site for spills by the railroad. Mr. Milburn responded the railroad would be responsible to take out the permit. They are governed by the EPA and the Surface Transportation Board. Councilperson Hart asked with rail number of streets that will have responded the map of the railroad which way the coal cars are coming metro area. cars passing through the city what are the a nine to ten minute wait. Mr. Milburn crossings shows various crossings depending or going. There are 60 all together in the Councilperson Reggie Schmitt noted that regarding the health and environmental issues, the council is not saying they are not important, but we are relying on the EPA and the Iowa DNR, who are the experts for these complex issues. Councilperson Reggie Schmitt noted that whether rural or main street, we all rely on base line energy with enough to meet our demands. It was said that we are at zero capacity because no generation facilities are being built. Councilperson Reggie Schmitt noted that right now large electrical customers have to sign agreements to stop the brownouts. Councilperson Reggie Schmitt noted that the John Deere foundry has to shut down six times in the summer because of the agreement. Councilperson Cole asked why is Elk Run Energy going through this process before the DNR signs the permits. Mr. Milburn responded that the DNR has the discretion to process or not process the air permit if Elk Run Energy does not have all the local approval required. If Elk Run Energy does not have the legal right to construction, the DNR can choose not to process. The Utility Board also wants to see that they have local approval. Councilperson Cole noted that the DNR said if Elk Run Energy didn't have zoning approval, they didn't want to waste spend staff time on the permit. Councilperson Getty noted that the city did not lose Monsanto. Councilperson Getty noted that he has lived in Waterloo all his life, and he knows of at least five coal plants, including IPS, John Deere, Rath and two coal generated plants to the west of Waterloo, and he has never heard a concern for his health. Councilperson Getty noted he is not an expert and will vote on whether to support the annexation and rezoning. The vote tonight is the first step, Elk Run Energy will need a permit from the DNR and the Utility Board. The questions regarding carbon dioxide and particulates will be answered by the DNR and Utility Board. Councilperson Steve Schmitt asked how long has Elk Run Energy owned any coal plants. Mr. Milburn responded they built a new generation plant in 1990, and in 2000 they developed and constructed other plants and competitors offered dollars for these projects, so they sold them. LS Power launched two private investment funds focused on the power industry with a total value in excess of $4 billion, and these funds have facilitated the purchase of seventeen power generation assets. Dynegy purchased all the power generation assets and now owns and operates the generation assets and LS Power holds 40 percent of the common stock. In addition, LS Power continues to lead the development of new projects under a 50/50 development joint venture with Dynegy. As of today, they own four generation facility with two under contract. Councilperson Steve Schmitt asked if the company builds to own. Mr. Milburn responded its always been their business plan to own these companies for a very long time. In Arkansas and Texas, they bought not only the power but took ownership. It is possible they could sell off pieces and retain business parcels. Councilperson Schmitt asked how many plants are there nationwide. Mr. Milburn responded some just announced in the newspaper and then others stopped. Mr. Milburn noted there are over 100 coal fixed plants and at least one-half off the drawing board. April 28, 2008 Page 20 Hearings continued Councilperson Getty called for the question. Councilperson Steve Schmitt noted that tonight the council heard from both sides and heard from the environmental standpoint. One benefit is to allow some of these less efficient plants to be taken off line and replace them with plants like the one proposed for Waterloo. Councilperson Steve Schmitt noted that he believes we will have a facility that will use the coal in a more efficient manner, and that this plant will be night and day different. Councilperson Hart noted that he was interested in looking out to the future where traffic is not too congested, and he is concerned about the overall impact to his neighborhood. Councilperson Hart noted he is concerned there is no correlation of impact on health and yet the study says there is an impact. Councilperson Cole noted that this body is not scientists nor CES members. Tonight the council has been called racist baby killers. Councilperson Cole noted that this is not a moral issue but a land use issue. Councilperson Cole called for the question. Mayor Hurley noted there have been three years of hearings, presentations, deliberations, community meetings. Township, city, county and state scrutiny. Editorial comments, blogs, letters -to -the -editor. E-mails, hard mail, phone calls, oral presentations and personal visits, etc. The Elk Run Energy Center is likely the most thoroughly discussed and dissected issue to come before a Waterloo city council in the last 20 years. In his own seven years, he can only think of the burning ban, the property maintenance code, the annual budgets and the community recreation center/Vision Iowa project as even holding a candle to this single issue in terms of attention and energy expended on everyone's part. Mayor Hurley commented that people are passionate about this proposal on both sides of the debate. Mayor Hurley noted that he believes support for the energy center project has local, regional, state and national implications. Mayor Hurley noted that he believes as a city government we have done what we are supposed to do in terms of process, listening, questioning and discussing. Mayor Hurley noted that he believes approving the annexation and rezone request and then passing the baton on for state and federal agency review is the prudent thing to do. Mayor Hurley noted that this long discernment process has been at times physically, mentally and emotionally taxing. The discussions and communications have been civil for the most part. Where there was an apparent lack of respect and civility for the council and their service to the citizens of Waterloo, he took umbrage because he knows council has dutifully invested themselves in this matter. Mayor Hurley noted he can respect other's opinions, and he can have respect for those espousing them, but he cannot let go the increasingly frequent verbal and written attacks on the council's integrity, prudence, wisdom, knowledge, sense of duty, due diligence and ability to think rationally. Mayor Hurley commented he knows this to be untrue because everyone of the council, irregardless of the vote he/she will cast tonight, he knows they have read, listened, and thought about the decisions they will be making. That it wasn't done in public all the time is only a reflection of the restrictions on the position each holds as a council member, not on their intelligence, interest or personal investment in the matter. Mayor Hurley noted that just last week all of them received a copy of a long analysis of the annexation/rezone petition submitted by one of the organized opposition groups. Rather than stick to facts or opinions on technical items or process questions, the writers felt it necessary to include the following kinds of negative characterizations of the council: "showing . . . a lack of fiduciary responsibility"; "a lack of due diligence"; "unconscionable"; "consistent lack of responsible planning and responsiveness"; "appears irresponsible". Mayor Hurley noted that much of this comes with the territory, but he thinks the opposition writers went over the line in the following - "And what will your children and grandchildren have to say about your personal vote to sentence our young and elderly citizens of the Cedar Valley to slow and agonizing deaths?" In his opinion, that is a loathsome statement and it goes beyond the pale of civil disagreement and debate. Mayor Hurley noted he knows that everything council has done in these chambers has had the best interests of our citizenry and the general welfare of the community in their hearts and • • • 1 April 28, 2008 Hearings continued minds. Mayor Hurley noted that at best to imply that council takes lightly the health, general well-being and the very lives of the young and elderly is no way to win friends or influence council's vote, and at worst it is a vicious, mean, demeaning and completely unnecessary attack. Page 21 Mayor Hurley noted council is being asked by a legitimate and legal business offering a needed commodity to annex and rezone a parcel of land. Council is not being asked to permit, license or operate the energy center. Because it is an electric power plant, the state and federal government have taken on the duty of overseeing the environmental and health aspects of the proposal. The council's duty is to determine if the annexation and rezone applications are properly done. Mayor Hurley noted that health concerns seem to dominate the many reasons for concerns. Mayor Hurley commented he believes the economic health of a community equates to good physical health. A strong economy creates jobs, which creates wealth that allows families to have adequate housing, nutrition, shelter and health care. Much has been made about the LS Power's projects negative impact on those most vulnerable low and moderate income families and, in particular, African-Americans. Mayor Hurley noted that while the Elk Run Energy may not be supplying power directly to Waterloo residential consumers, the idea of thwarting an industry which accounts for 80 percent of Iowa's electricity production is a dangerous path to take if you are truly concerned about those most vulnerable in our community. Mayor Hurley noted that we have heard a lot about the disproportionate cases of asthma in the African-American population in Iowa, and that the opposition has pretty much laid the blame on particulate matter produced by coal-fired power plants. Mayor Hurley reviewed a study that spoke about potential sources of things that aggravate asthma, such as insects, dust mite, bacteria, varmints, and indoor pollutants such as smoke. Mayor Hurley noted the study says it possible not all the asthma came from coal plants. Mayor Hurley commented that he knows the Sierra Club earmarked $10 million toward anti -coal, and he would like $1 million for housing so we could get lead out of homes. Getty/Reggie Schmitt that "Resolution approving said annexation", be adopted. Ayes: Six. Nays: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-346. 127004 - Reggie Schmitt/Greenwood that proof of publication of notice of public hearing Energy Associates, LLC on behalf of property owners Agricultural District to "M -2,P" Planned Industrial 260.36 acres of property generally located along Merle Street, X mile east of N. Elk Run Road for the purpose on request of Elk Run to rezone from "A-1" District approximately Road, north of Newell of constructing a 750 - megawatt coal-fired electric generation facility and rescind Ordinance No. 4868 in its entirety, as published in the Waterloo Courier on April 11, 2008, be received and placed on file. Ayes: Seven. Motion carried. 127005 - This being the time and oral objections. Reggie Schmitt/Cole and place of public hearing, the Mayor called for written that the hearing be closed and Programming and Zoning Commission, letters in favor and written comments be received and placed on file. Ayes: recommendation of approval of Planning, opposition, and oral and Seven. Motion carried. 127006 - Reggie Schmitt/Greenwood that "an Ordinance amending Ordinance No. 2479, as amended, City Zoning Ordinance by adding Subsection No. 398 to Section 2A-5, Rezoning Certain Property", be received, placed on file, considered and passed for the first time. Ayes: Six. Nays: Hart. Motion carried. 127007 - Reggie Schmitt/Cole that rules requiring ordinances to be considered and voted for passage at two prior meetings be suspended. Ayes: Five. Nays: Hart, Steve Schmitt. Motion failed. April 28, 2008 Page 22 DOCUMENTS 127008 - Cole/Steve Schmitt that communication from City Planner transmitting amendment to Development Agreement with Elk Run Energy Associates LLC for the construction and related improvements for a modern electric generating facility, with approximately $800,000.00 per year excise tax, no tax rebatement or abatement, provide for extension of utilities for the development, improvements to Newell Street, a grant of $150,000.00 for construction of a recreational trail on the east side, a grant of $400,000.00 to the Highway 63 Gateway Community Development Corporation for the Highway 63 Corridor, a grant of $100,000.00 for establishment of Technical Scholarship Fund to assist with post -secondary educational funding for students in Black Hawk County, etc., be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Six. Nays: Hart. Resolution adopted and upon approval by Mayor assigned No. 2008-347. ADJOURNMENT 127009 - Cole/Reggie Schmitt that the Council adjourn at 11:30 p.m. Ayes: Seven. Motion carried. Nancy Eckert, CMC City Clerk • • April 28, 2008 Page 13 plant where African-Americans reside. The pollution rates are already five times the state's average. Ms. Echeverria spoke about the particulate matters. Ms. Echeverria noted the report by Dr. Stigliani which was commissioned by the Black Hawk County Board of Health and their recommendation of a moratorium. The report states that asthma rates among African-American citizens of Black Hawk County are 2.5 times higher than the overall county average and 40 percent higher than the state average Debra Morgan speaking for Phyllis Morgan who lives at 6411 Newell Street, noted that LS Power visited the farm in the winter, and that in the winter and fall they have normal water. It is during the spring and summer when they have lots of runoff. The creek on the Morgan farm runs into the Cedar River which flows down to Cedar Rapids where they use it for drinking water. Ms. Morgan noted it would only take one spill and people would be sick, babies would be born with problems and cattle would not be able to eat. Ms. Morgan noted she feels the city is ready to sell out Waterloo to make a few bucks for the city, which will cause more sickness and illness and who will take the responsibility. Scott Henderson, 1027 West 9th Street, Cedar Falls, noted that he disagreed with the comments made by LS Power's Environmental Engineer regarding the Dysart Road quarry and the fly ash. Mr. Henderson commented that he read an article in an industrial journal that studied this practice and said there was ground water contamination. They also found a lot of heavy metals located in fly ash, but the engineer said no different than our fireplaces. Kent Holst, 902 Walnut Street, Traer, spoke in favor of the coal plant because they get their electricity from the wholesale market and need competition. Mr. Holst noted we need more electricity power to avoid congestion. The cost is less when power is bought in large lot. Mr. Holst noted that even though we are seeing wind turbines, this energy has not reduced the energy needed. We need additional energy or we will see prices go high. Steve Firman, Cedar Falls and a member of the Greater Cedar Valley Alliance, noted that Iowa based municipalities have said we are not keeping up with capacity and expect to fall to zero by 2016 due to not enough generating plants being built. Mr. Firman noted that there are other sources such as natural gas which is increasingly scare and expensive and we may have to import and costs have doubled. Wind and solar energy are not dependable, and the public has concerns with nuclear power plants. Mr. Firman noted that coal plants are reliable and less expensive, and that base load generated plants are the only option to meet our needs until better alternatives are found. Mr. Firman urged the council to support this project. Diane Caley, Parkersburg, noted that she had to leave this community in search of employment. She spent a lot of time in Sioux City to stay close to family, but she traveled back and forth and saw economic growth in contrast to stagnant growth in Sioux City. Ms. Caley noted she came back for good because she believes in this community and wants to see her children and grandchildren stay here and LS Power makes this possible and promotes future growth. Ron Spears commented that he heard that Mayor Hurley and Mr. Milburn had a private meeting this week. Mr. Spears noted that this is a moral and ethical issue and has to do with money versus health. Mr. Spears noted that coal is harmful to people. Mr. Spears asked if Elk Run is so beneficial why is so much bribery involved such as $100,000 to KBBG provided through Deb Berry, $400,000 to UNI, and a bribe for a bike trail and lake. Mr. Spears noted that the plant is being built in an area where African-Americans live and they have 2.5 times more asthma than Whites. Mr. Spears noted that all the profits will go to LS Power and New York. Not one kilowatt will be for the State of Iowa. Mr. Spears noted that the health industry will benefit greatly, and its all because of jobs. Dr. Phyllis Baker, Professor at UNI, noted that she has had 23 pieces published, and that quantities is observing people and analyzing data. For the past several months she has been observing LS Power, and this group has been working hard because they have a financial stake. Dr. Baker noted that she believes the coal plant is a bad idea for Waterloo. The folks in favor of this project may have a financial stake. Dr. Baker commented she could not believe the council is getting its pockets lined for this. Dr. Baker urged the council to listen carefully and keep their minds open. Dr. Mary Robinson, Pastor of All Nations Community Church, noted that for decades those living on the northeast side of Waterloo have complained about the rail lines that tie up traffic, sometimes for miles. Some even went so far as to present petitions to the council a few years ago. Dr. Robinson noted that April 28, 2008 Page 14 she personally observed children walk over stalled rail cars in order to get to and from East High School. Dr. Robinson noted she has been in discussions with teenaged members of her church who say that they cross these stalled cars many time a week, and now she is being told that the same thing happens in the Longfellow Elementary School. Dr. Robinson noted that now they have the additional burden of rising fuel cost and the additional gas that will be used just to go around stalled tracks. If the coal plant is built these factors will add additional burden to an already overburdened system. Dr. Robinson noted that asthma hospitalization is 2.5 times higher than the overall county average and 40 percent higher than the state average of hospitalization rates for all African Americans in the state. Dr. Robinson noted that as a governing body of the city, the council is responsible for helping to advance the welfare of the citizenry. Dr. Robinson noted that it is important that the public's trust is maintained. Council must be willing to take a stand that may be unpopular economically but morally right. Dr. Robinson asked the council to do what is morally right, set the standards and don't put the burden on our community. Phil Akin, Cedar Falls, noted he looked at the annexation and zoning requests, sees the jobs and knows what that means to property values, and that the community is on the rebound. We have energy needs, and many couldn't pay the bills because they have no money. Mr. Akin noted that we have to entrust the DNR and EPA to look at the project. Mr. Akin noted this project will keep utilities lower, bring in jobs, and keep property taxes low. Judy Cain, 543 Cloverdale Avenue, noted she grew up in a community where her Father worked on a coal plant crew. Ms. Cain urged the council to consider the annexation and rezoning request because this project will help the Waterloo/Cedar Falls economy. Rich Kurtenbach, 1695 Burton Avenue, noted this is more than a new application as we have been in contact with LS Power since 2005 and he knows the benefits they will bring to our community. Mr. Kurtenbach noted he personally visited Iowa coal plants and asked about the concerns we have heard. No one came up with health and environmental concerns and they assured him it was good for the economy. Mr. Kurtenbach noted that wind and solar energy are good and part of the future, but this plant will provide base load power. Mr. Kurtenbach noted they endorse and support the Elk Run Energy project, and that it would be a tremendous loss to let it slip away. Mark Milburn noted that the standards rest with the EPA and are enforced by the DNR to ensure safety of everyone, including workers and the environment. Mr. Milburn noted he sympathizes with Dr. Robinson on the issue of the railroad problem, and that their trains will move through town and not block tracks for school. Mr. Milburn noted he sympathizes with the high rate of asthma, that he has asthma in his family. Mr. Milburn noted this plant will be cleaner and they will not be allowed to exceed levels required by the EPA. Mr. Milburn noted that he feels Mr. Henderson's comments about his colleague's credibility were taking out of context and are irrelevant. Mr. Milburn noted that Mr. Wilson was trying to explain how Elk Run is impacted by groundwater, that the standards in Iowa are more stringent when it comes to ash and groundwater. The council recessed at 9:02 p.m. The council reconvened at 9:12 with all council members present. Sharon Goodson, President of the NAACP, explained why they oppose the plant. The location of the proposed plant is in close proximity to a critical mass of African-American residents. African-Americans are disproportionately affected by asthma and respiratory ailments. The health impact of a coal-fired plant and things such as increased train, truck and emergency vehicle traffic is adverse. The air quality in Black Hawk County is near the tipping point of breaching Federal Air Quality Standards. The addition of a coal-fired plant with its emission of particulate matter can only add to these unfavorable health effects for blacks because it increases the risk of pulmonary and cardiovascular disease. The emission of carbon dioxide negatively affects ground level ozone which can worsen human respiration, impedes lung functioning and exacerbates asthma. Mercury, a very toxic metallic element, will contribute to the public health risks. Ms. Goodson noted that the coal-fired plants for UNI and Cedar Falls are significantly smaller than the proposed plant, which would be 100 times large than UNIs and 30 times larger than the City of Cedar Falls. Joyce Jensen noted they built a new house, and she feels the bank knew about the proposed coal plant but didn't tell them. Ms. Jensen noted they have wicker furniture on their porch and with the high winds that furniture is now black. • i