HomeMy WebLinkAbout01.24.2005i •
COUNCIL WORK SESSION
January 24, 2005
4:30 p.m.
Council Chambers
Members present: Mayor Hurley, Cole, Greenwood, Clark, Schmitt, Gunderson, Welper,
Kincaid.
Moved by Welper, seconded by Gunderson that the Agenda, as proposed, be approved. Ayes:
Six. Absent: Kincaid. Motion carried.
Kincaid now present at 4:33 p.m.
Ross Christensen, Rick Young and Sharon Juon, members of Opportunity Waterloo, discussed
creating a city -owned communications utility. Mr. Christensen noted that a little over three years
ago, the city attempted to establish an utility. About one week before the referendum, Mediacom
spent $50,000 in advertisement and the referendum was defeated. Now Opportunity Iowa has
come forward. Over 80 communities are supporting municipal fiber systems. Those include 38
cities which already have a municipal communications utility and 45 cities that would need to
approve creating a utility by referendum. Mr. Christensen noted we only have to look to the
west to see what having a communications utility can do for Waterloo. The council was asked to
keep an open mind and possibly take a position with the Legislature regarding the municipal
utility issue. The Chamber of Commerce and Cedar Valley Alliance have adopted a resolution
supporting municipal utilities. Opportunity Waterloo intends to ask the council to allow them to
present language for a referendum to create a utility. The ballot language would be to create the
utility, and the citizens will not be asked to fund anything at that time. Once the referendum is
approved, a committee will need to be created and a feasibility study will have to be performed.
Rick Young presented a graphic with bandwidth comparison. The cities of Cedar Falls and
Independence already have a municipal utility, and Waverly and Traer have passed the
referendum to create the utility. Eighty-three cities hope to place a referendum on the November
ballot. Iowa state laws says cities can only hold a referendum for the utility when there is not a
national election. Mr. Young stated Opportunity Waterloo will come back to the council this
spring asking them to put the referendum on the ballot for the November election to create a
communications utility. Mr. Young showed Waterloo has the lowest water rates in Iowa, which
shows the Waterloo Water Works is one of the most efficient water utility in the state.
Mr. Young noted there is fiber running throughout the city, but we can't use it because we don't
have a provider. Airline Highway has fiber optic which is hooked to Allen Hospital, but
businesses cannot hook up because there is not a utility that will allow them to hook up. Mr.
Young stated that they feel if we don't do it ourselves it won't get done, and that is why they feel
the city needs to create a communications utility. We need to stay competitive.
Mr. Christensen explained that Mediacom will say we don't need a utility and give examples of
cities that have not been successful. Mediacom will say local governments have an unfair
advantage over private companies already providing the same services. Mr. Christensen
commented that Cedar Falls Utilities is putting a ton of money back into the city every year.
Mr. Young noted that if we don't like our cable company or telephone company, there is no
other company to go with because they have a monopoly. In Cedar Falls, they have Mediacom
and Cedar Falls Utilities. Mr. Young commented that private companies appear unwilling to
invest to upgrade services in Waterloo which would create high speed Internet service to homes
and businesses. Mr. Young stated he feels Mediacom has not kept its promise to improve the
system in Waterloo.
Mr. Christensen noted that if 80 cities form utilities, we could be talking about a million
customers, which would be an incentive for the cable providers, and then maybe they would
lease their cable. Mr. Christensen stated that Cedar Falls would enter into an agreement with
Waterloo to provide cable service if we had our own utility. Cedar Falls Utility's head -end could
serve all of Northeast Iowa.
Council Work Session
January 24, 2005
Page 2
Mr. Young stated each city will be responsible for raising money for advertising and marketing
the need for a communications utility for the referendum. Cedar Falls marketed its utility and
was able to pass their referendum with 75 percent voter approval.
With no further business before the council, it was moved by Welper, seconded by Gunderson
that the meeting be adjourned at 5:15 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk
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