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HomeMy WebLinkAboutMinutes-03/13/2003• • March 13, 2003 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 8:30 a.m. on Thursday, March 13, 2003. Mayor John R. Rooff in the Chair. Roll Call: Kincaid, Welper, Greenwood, Clark, Hurley, Getty, Jordan. 117884 - Getty/Welper that the Agenda, as proposed, for the Special Session on Thursday, March 13, 2003, at 8:30 a.m., be accepted and approved. Ayes: Six. Absent: Jordan. Motion carried. 117885 - Getty/Hurley that copies of the Call for the Special Session on March 13, 2003, be received and placed on file. Ayes: Six. Absent: Jordan. Motion carried. Jordan now present at 8:35 a.m. 117886 - Councilperson Getty stated that from what he understands and from the letter council received from Jim Walsh, City Attorney, Iowa Law tells us that as of last Friday when the petitions containing signatures of 43 percent of the property owners were filed with the City Clerk, they stopped all action of the city council on the Self -Supported Municipal Improvement District (SSMID). Councilperson Getty stated that last Monday Main Street Waterloo brought in petitions signed by eight property owners wanting to take back their signature from the petition for dissolution of the SSMID. According to Mr. Walsh after reviewing the petitions, those signatures are null and void and it is a dead issue, and the SSMID is dead for one year. Jim Walsh, City Attorney, stated that the people who changed their minds are entitled to change their minds. Mr. Walsh stated that initiation of the SSMID is a process, and we have been through all the steps of the SSMID except for council action. Mr. Walsh stated that Iowa Code says when petitions containing signatures of at least 40 percent of all owners of property are filed it stops any action of the council. Mr. Walsh stated they could start over with a new petition, submit the petition to the Planning, Programming and Zoning Commission and the council, but this process has to start over. Mr. Walsh stated there is an appeal process, but he doesn't know if it applies to the denial. Mr. Walsh stated that the SSMID is a voluntary contract of downtown property owners. If 60 percent want to collect money for the downtown, they can go ahead. Mr. Walsh stated that according to the Black Hawk County Assessor's office, we cannot submit the SSMID after March 15. Councilperson Getty asked about the loan guarantees the city has done for Main Street Waterloo and does this obligate the city to pay. Councilperson Getty stated he keeps reading Main Street is going to come to the city for money. Mayor Rooff stated we are back to the drawing board. Mayor Rooff stated there were several meetings with discussions centered around reconstruction of Main Street Waterloo. Mayor Rooff stated we will just need to figure out what we want to do. Main Street Waterloo owes the city over $250,000 for the former Osco Drug Store building. In addition, they owe money for the parking lot which we are the loan guarantee, but this District continues until July 1. 117887 - Mayor Rooff presented an agreement with Northwest Airlines to provide one daily round-trip jet service to the Waterloo Regional Airport. Mayor Rooff stated bond counsel and Jim Walsh have reviewed the agreement. Mayor Rooff stated that Ahlers Law firm made some recommendations and Northwest Airlines responded agreeably except they want Minnesota law to govern in the event of any disputes under the agreement. Getty/Jordan that the agreement with Northwest Airlines to provide one daily round-trip jet service to the Waterloo Regional Airport be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Prior to a vote on the above motion, the following comments were heard. Councilpersons Clark, Hurley and Welper will work with the Airport Director, UNI and the Airport Task Force on this project. Jim Walsh, City Attorney, stated that Ahlers Law Firm reviewed the agreement because of the debt issue and also because we are talking about involvement of March 13, 2003 Page 2 neighboring communities. Mr. Walsh stated he is familiar with the agreement, and Northwest Airlines will provide regional jet service in lieu of propeller plane with one flight daily. The agreement requires revenue guarantee of $860,000.00 per month, and if they fail to collect the revenue, the contract says we have to make up the revenue. The agreement also allows for a 60 day notice if the city wants to stop the agreement, and Northwest Airlines could decide to pull out or continue the jet service. Mr. Walsh stated that Northwest Airlines will determine fares to maximize revenue, and that they use a very sophisticated complex equation for revenue. Mayor Rooff stated he and Brad Hagen, Airport Director, will meet this week and will review the procedure because the DOIT line is receiving comments from people wanting to book flights. Mayor Rooff stated we could meet with Northwest again if we need to look at the price analysis. Mayor Rooff stated he will bring the Air Service Task Force and business community together to work on the airport. Mayor Rooff reported that we need 13 people per day to reach targeted revenue. Councilperson Clark asked when will the city start work on the grant and will the grant offset the commitment. Mayor Rooff responded that the grant would cover the city's commitment if we are awarded a grant. Mayor Rooff stated that the Airport Board will be looking at hiring a consultant to put together a grant. Councilperson Hurley asked where we are today in relationship to targeted revenue of $860,000.00. Mr. Hagen stated that the revenue assumptions were what the Task Force and consultant felt we could reach. Councilperson Clark asked if the city has support in Washington for this. Mayor Rooff responded that he met with Senator Grassley and he is very much behind this and they want government rate coming back. Mayor Rooff thanked VGM for their inter -company memo directly to employees saying use this airport. Mayor Rooff stated he thinks we will see this happen around the city. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2003-156. 117888 - Getty/Jordan that the Council adjourn at 8:58 a.m. Ayes: Seven. Motion carried. Nancyt8ckert City Clerk • •