HomeMy WebLinkAbout1994-11-08 Public hearing
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NOTICE OF P\.IBLlC HEARING
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Notice Is hereby given that a public hearing will
be held by the City Council of Iowa City, Iowa,
at 7:30 p.m. on the 8th day of November,
1994, in the Civic Center Council Chambers,
410 E. Washington Street, Iowa City, Iowa, in
msideration of the following:
Q;lAn Ordinance amending City Code Section
14-6E-2, Neighborhood Commercial Zone,
to allow restaurants as provisional uses or
by special exception with specific restric-
tions, and car washes by special exception
with specific restrictions.
2. An ordinance vacating a portion of Water-
front Drive located southeast of the
CRANDIC Railroad rlght.of-way.
3. An ordinance amending City Code Sections
14.6B.2, 14-6E-8, 14-6E.7 and 14-6E-6 to
permit restaurant carry-out uses in the CB.
10, CB-5 and CB-2 zones.
Copies of the proposed ordinances are on file
for public examination In the Office of the City
Clerk, Civic Center, Iowa City, Iowa. Persons
wishing to make their views known for Council
consideration are encouraged to appear at the
above.mentioned time and place.
MARIAN K. KARR, CITY CLERK
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ORDINANCE NO.
AN ORDINANCE AMENDING TITLE 14, CHAP-
TER 6, ENTITLED "ZONING," OF THE CITY
CODE BY REVISING ARTICLE E, ENTITLED
"COMMERCIAL AND BUSINESS ZONES," SEC-
TION 2, ENTITLED "NEIGHBORHOOD COM-
MERCIAL ZONE (CN-11:' TO ALLOW RESTAU-
RANTS AS PROVISIONAL USES OR BY SPE-
CIAL EXCEPTION WITH SPECIFIC RESTRIC-
TIONS, AND CAR WASHES BY SPECIAL EX-
CEPTION WITH SPECIFIC RESTRICTIONS IN
THE CN-1 ZONE.
WHEREAS, the Intent of the CN.1 zone is
that stores, businesses and offices in this zone
should be useful to the majority of the neigh-
borhood residents, should be economically
supportable by nearby population, and should
not draw community wide patronage; and
WHEREAS, restaurants 2,500 square feet or
less are most appropriately in scale with and
meet the intent of a neighborhood commercial
zone, and should therefore be allowed on a pro-
visional basis in the CN-1 zone; and
WHEREAS, restaurants larger than 2,500
square feet are better suited to more intensive
use commercial zones and as such may gener-
ate impacts requiring additional review and the
imposition of ameliorating conditions through
the Board of Adjustment special exception
review proces,; and
, WHEREAS, to ensure that a variety of retail
and personal service businesses locate In the
CN-1 zone, limitations should be placed on the
percentage of total ground floor area permitted
for restaurant uses In a CN-1 zone; and
WHEREAS, a car wash provides a desirable
service for a residential neighborhood, but
should be limited in scope and permitted only
by special exception to deter construction of
excessive amounts of parking and stacking
spaces or other large paved areas that diminish
the pedestrian orientation of the zone and dis-
place other allowed uses In the zone.
NOW, THEREFORE BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
SECTION I. AMENDMENT.
Title 14, Chapter 6, Article E, Section 2, enti-
tled "Neighborhood Commercia,l Zone (CN-11:'
of the City C9de be hereby amended by:
al Adding Section 14.6E-2C5, "Restau-
rants," to read as follows:
Section 14.6E.2C5. Restaurants,
provided the floor area does not exceed
2,500 square feet for anyone restau-
rant, and the total floor area allocated
to restaurant uses will not exceed 20
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Ordinance No.
Page 2
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taurant uses will not exceed 20 percent
of the total commercial floor area in a
CN-1 zone.
b) Repealing Section 14-6E-206, "Restau-
rants," and adding a new Section 14-6E-
206, "Restaurants," to read as follows:
Section 14-6E.2D6. Restaurants thaI'
exceed 2,500 square feet In floor area,
except the total floor area allocated to
restaurant uses will not exceed 20 per-
cent of the total commercial floor area in
a CN-1 zone.
c) Repealing Section 14-6E-2D3, "Filling'
stations," and adding a new Section 14-
6E-2D3, "Filling stations," to read as
follows:
Section 14.6E.2D3. Filling stations,
provided that no part of the filling station
site shail be located within 100 feet of an
R zone boundary. One-bay car washes
are allowed as an accessory use to a
filling station.
SECTION II. REPEALER. All ordinances and
parts of ordinances in conflict with the provisions
of this Ordinance are hereby repealed.
SECTION III. SEVERABILITY. If any section,
provision or part of the Ordinance shall be ad-
judged to be Invalid or unconstitutional, such
adjudication shall not affect the validity of the
Ordinance as a whole or any section, provision or
part thereof not adjudged invalid or unconstitu-
tional.
SECTION IV. EFFECTIVE DATE. This Ordi-
nance shall be In effect after its final passage,
approval and publication, as provided by law.
Passed and approved this
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MAYOR
ATTEST:
CITY CLERK
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City of Iowa City
MEMORANDUM
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Date: October 6, 1994
To: Planning and Zoning Commission
From: Melody Rockwell, Associate Planner
Charlie Denney, Associate Planner
Re: Permitting residential uses and restaurants as provisional uses, and car washes
by special exception in the CN-1 zone
The City Council has requested that staff and the Planning and Zoning Commission evaluate
whether residential uses and restaurants should be permitted on a provisional basis, and car
washes permitted by special exception in the CN-1, Neighborhood Commercial zone. In the
CN-1 zone, as set forth in City Code Section 14-6E-2, dwelling units above the ground floor
of a commercial use and restaurants are permitted only by special exception. Currently, car
washes, wh!ch are categorized as an auto and truck oriented use, are not permitted in the CN-
1 zone.
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Residential Uses
City Code Section 14-6E-2D1 allows residential uses through a special exception, such that
"Dwellings [may be] located above the ground floor of another principal use permitted in this
zone, provided the density does not exceed one dwelling unit per one thousand eight hundred
(1,800) square feet of lot area. A maximum of one roomer may reside in each dwelling unit."
In staff's view, residential uses should remain a use permitted by special exception in the
CN-1 zone, rather than being changed to a provisional use.
When integrating residential uses into a commercial zone, conditions for approval are often
needed to offset negative impacts, such as spillover parking that may occur as a result of the
residential use. The Board of Adjustment .can also address buffering, safety, access and
parking issues through specific conditions to create a more livable situation for the residents
in the commercial area, as well as the residents living near the Neighborhood Commercial
zone. It should be noted that the special exception process has not deterred the
establishment of residential uses in commercial zones, but has allowed the Board of
Adjustment to introduce ameliorating conditions as appropriate.
City Code Section 14-4B-4B3 provides that "in permitting a special exception, the Board may
impose appropriate conditions and safeguards, including but not limited to planting screens,
fencing, construction commencement and completion deadlines, lighting, operational controls,
improved traffic circulation requirements, highway access restrictions, increased minimum
yard requirements, parking requirements, limitations on the duration of a use or ownership or
any other requirement which the Board deems appropriate under the circumstances upon a
finding that the conditions are necessary to fulfill the purpose and intent of the Zoning
Chapter." Allowing residential uses on a provisional basis in the CN-1 zone would preempt
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the closer scrutiny and conditional safeguards that are afforded through the special exception
process. Therefore, staff recommends that dwelling units in the CN-1 zone remain a use
permitted only by special exception.
Restaurants
City Code Section 14-6E-2D6 permits "restaurants" in the CN-1 zone only by special
exception. In the definitional section of the Zoning Chapter 114-6B-21, the Code specifies that
a "restaurant" is "a business where the principal business is the dispensing and the
consumption of edible foodstuff and/or beverage at indoor tables, including a cafe, cafeteria,
coffee shop, delicatessen, lunchroom, tearoom, dining room, bar, cocktail lounge or tavern.
The total seating area located within the enclosed portion of the premises is more than fifty
percent (50%1 of the total floor area." The definition of "restaurant" precludes the
establishment of drive-in restaurants or primarily carry out restaurants in the CN-1 zone. This
exclusion is in keeping with the intended pedestrian emphasis in the Neighborhood
Commercial zone. The issue considered in this memorandum is whether restaurants, as
defined, should be permitted on a provisional basis within the CN-1 zone.
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The intent section of the Neighborhood Commercial zone states that "stores, businesses and
offices in this zone should be useful to the majority of the neighborhood residents, should be
economically supportable by nearby population, and should not draw community-wide
patronage." The types of restaurants that would be most appropriate in a neighborhood
commercial development are on average approximately 2,200 square feet in size. Examples
of Iowa City restaurants that would be appropriate for a neighborhood commercial area might
include: Linn Street Cafe (121 N. Linn/3,164 square feet), Pagliai's Pizza (302 E.
Bloomington/3,280 square feet), Bruegger's Bagel Bakery 1225 Iowa Avenue/2,967 square
feet), Chill and Grill (208 N. Linn Streetl1,300 square feet), Cozy House 1208 N. Linn
Street/1,340), Hamburg Inn No.2, Inc. (214 N. Linn Street/1,690 square feet), and the Wok
(18 S. Clinton Street/1 ,568 square feet). The 1990 ZoninQ Reoort, a publication which is
based on research of nation-wide zoning trends and practices, recommends a maximum of
2,500 square feet of floor area for a restaurant located in a neighborhood shopping center.
Staff therefore recommends that any restaurant permitted in the CN-1 zone on a provisional
basis be no larger than 2,500 square feet in floor area.
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Recently, the Board of Adjustment received a request to pre-approve up to 15,000 square feet
of restaurant space within a proposed neighborhood shopping center in a CN-1 zone. The
requested restaurant space represented nearly 38 percent of the total available retail floor area
of 39,960 square feet. The case is still pending, and the request is likely to be modified to
be less excessive in terms of requested floor area for restaurant usage in the CN-1 zone. If
a good mix of retail and personal service businesses are to locate within a CN-1 zone to serve
the surrounding neighborhood, and not be displaced by an undue amount of restaurant usage,
there should be a limit on the percentage of total ground floor area permitted in a CN-1 zone
for restaurant uses. Staff recommends a 20 percent cap on the total commercial floor area
allocated to restaurant usage within a CN-1 zone.
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Larger restaurants, such as the Ground Round (830 S. Riverside/5,204 square feet), the
Country Kitchen 11402 S. Gilbert/5,311 square feetl, Season's Best (325 E.
Washington/4,700 square feet) and La Casa (1200 S. Gilbert Court/7,912 square feet), are
better suited to more intensely commercial, less residential zones, such as the CC-2
Community Commercial zone. Restaurants larger than 2,500 square feet in size could be
considered in the CN-1 zone by special exception. This would allow review on a case by case
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basis by the Board of Adjustment, and the imposition of ameliorating conditions or the denial
of a larger restaurant use in the CN-' zone, as appropriate.
Car Washes
Car washes are defined as an auto and truck oriented use in the Zoning Ordinance. Auto and
truck oriented uses are not allowed In the CN-' zone with the exception of filling stations,
which are permitted by special exception, provided that no part of the filling station site shall
be located within' 00 feet of an R zone boundary. The Ordinance defines a filling station as
n any building or premises used for the dispensing or retail sale of motor vehicle fuel or oil. n
This definition does not mention any accessory uses which are allowed with service stations.
Car washes are a common accessory use to a filling station.
The parking and stacking spaces required for a car wash, one parking space per employee and
five stacking spaces per wash bay, can result in a large paved area surrounding the car wash.
These paved areas could be detrimental to the pedestrian orientation now being encouraged
in the CN-' zone, and could displace other allowed uses within the CN-' zone.
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Conversely, a car wash is a service that would be desirable within or near residential
neighborhoods and may be appropriate for the CN-' zone to serve the day-to-day needs of
nearby residents. As previously mentioned, filling stations are currently allowed in the CN-'
zone by special exception. An appropriately scaled car wash would provide a similar service.
Staff feels that one-bay car washes should only be allowed in the CN-' zone by special
exception in association with a filling station so their design may be reviewed by the Board
of Adjustment for compatibility and consistency with the neighborhood scale of a CN.' zone.
Multi-bay, or stand alone car washes would not be allowed. Two examples of the scale of
car wash recommended are the 76 service station adjacent to the Hy-Vee on North Dodge
Street and the HandiMart on Willow Creek Drive, just west of Sunset Street.
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The December '4, '990, issue of the ZoninQ Report discusses standards for the location,
development and site design of gas stations. The Report recommends that accessory uses
to gas stations be severely restricted in neighborhood business zones. Allowing car washes
as accessory uses to filling stations in the CN.' zone would be consistent with this
recommendation.
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Staff recommends that one.bay car washes be added to the uses allowed by special exception
if they are accessory to a filling station.
STAFF RECOMMENDATION:
Staff recommends that residential uses continue to be allowed only by special exception in
the CN.' zone.
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Staff recommends that restaurant uses 2,500 square feet or less in size be permitted on a
provisional basis in the CN-' zone, provided that the total square feet of floor area of
restaurant uses does not exceed 20 percent of the total square feet of commercial floor area
in anyone CN-' zone. Restaurants larger than 2,500 square feet in size may be permitted
by special exception, but may not cause the total square feet of floor area of restaurant uses
to exceed 20 percent of the total square feet of floor area in the CN-' zone.
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Staff recommends that car washes be allowed in the CN-1 zone on a special exception basis,
provided that the car wash is restricted to one bay and is associated with a filling station.
ATTACHMENTS:
1. City Code Section 14-6E-2: Neighborhood Commercial Zone
2. Proposed Code Amendments
Approved by: 4Jd;ftt&
Robert Miklo, Associate Planner
Department of Planning and
Community Development
b~cn-l zona
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14-6E-2
14-6E.2: NEIGHBORHOOD COMMER-
CIAL ZONE (CN-I):
ATTACHMENT 1
",
A. Intent: The Neighborhood Commercial
Zone (CN-1) is intended to permit the
development of retail sales and per-
sonal services required to meet the
day-to-day needs of a fully developed
residential neighborhood. Stores,
businesses and offices in this zone
should be useful to the majority of the
neighborhood residents, should be
economically supportable by nearby
population, and should not draw com-
munity-wide patronage. A grocery
store or grocery store/drugstore com-
bination is favored as the principal
tenant In a neighborhood commercial
zone. In general, the CN-1 zone Is
intended for the grouping of a grocery
store and small retail businesses and
office uses which are relatively nui-
sance-free to surrounding residences
and which do not detract from the
residential purpose and character of
the surrounding neighborhood. The
location and development of neighbor-
hood commercial sites should follow
the criteria set forth for such sites In
the Comprehensive Plan.
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B. Permitted Uses:
1. Barbershops and beauty parlors,
laundromats, laundry and dry cleaning
pick-up and delivery services, shoe
repair services.
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2. Copy centers.
3. Drugstores, florist shops and vari-
ety stores.
4. Financial Institutions, branch offic-
es.
994
Iowa City
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14-6E-2
6. Gift and novelty shops limited to
one thousand (1,000) square feet of
floor area.
a. No 'office establishment shall
occupy more than two thousand four
hundred (2,400) square feet of floor
area.
6. Ice cream/yogurt stores limited' to
one thousand (1,OOO) square feet of
floor area.
b. The ground floor area of office
uses within an area zoned CN-l shall
not exceed fifteen percent (15%) of
the total floor area, either existing or
proposed, In the zone. In determining
the area zoned CN-1, any streets
contained in the zone shall be disre-
garded.
7. Photo finishing services.
8. Retail bakeries.
9. U.S. postal station.
10. Videotape rental store.
c. The total floor area of all office
uses within an area zoned CN-1 (in-
cluding ground floor, second floor and
below grade floor area) shall not ex-
ceed thirty percent (30%) of the total
floor area, either existing or proposed,
In the zone. In determining the area
zoned CN-l, any streets contained in
the zone shall be disregarded.
C. Provisional Uses:
1. Child care facilities subject to the
requirements of Section 14-6L-1.
2. Grocery stores, Including specialty
foods such as bakery and delicates-
sen goods, provided the floor area of
a grocery store shall not exceed thirty
thousand (30,OOO) square feet.
d. The location of the building in
which the office is located does not
diminish convenient access to retail
sales and personal service business-
es.
3. Neighborhood super store. A gro-
cery store which includes departments
for goods and services permitted In
the CN-l zone and Is greater than
thirty thousand (30,000) square feet
but no more than forty thousand
(40,000) square feet. Floor area over
thirty thousand (30,OOO) square feet
shall be departmentalized for nonfood
products and services.
D. Special Exceptions:
1. Dwellings located above the ground
floor of another principal use permit-
ted in this zone, provided the density
does not exceed one dwelling ul1it per
one thousand eight hundred (1,800)
square feet of lot area. A maximum of
one roomer may reside In each dwell-
ing unit.
4. Offices limited to dental practices,
general medical practices, insurance
agencies, chiropractic clinics, real
estate agencies, travel agencies,
accounting practices, and law offices,
provided:
2. Drive-In facilities for financial insti-
tutions.
3. Filling stations, provided no pari of
the filling station site shall be located
994
Iowa City
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14-6E-2
within one hundred feet (100') of an R
zone boundary.
4. Offices, other than those permitted
by subsection 14-6E-2C4, which do
not carry on retail trade activities and
do not maintain a stock of goods for
sale to customers except for those
retail establishments specifically al-
lowed in this zone, subject to the
requirements of subsection
14-6E-2C4a through d.
5. Religious institutions.
6. Restaurants.
7. Schools, specialized private instruc-
tion.
E. Dimensional Requirements:
1. Minimum Lot Area: None.
2. Minimum Lot Width: None.
3. Minimum Lot Frontage: None.
4. Minimum Yards:
a. Front: 20 feet.
b. Side: None.
c. Rear: None.
5. Maximum Building Bulk:
a. Height: 25 feet.
b. Lot Coverage: None.
c. Floor Area Ratio: 1.
F. General Provisions: All principal and
accessory uses permitted within this
Iowa City
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14-6E-2
zone are subject to the requirements
of Articles L through U of this Chapter,
Said Articles are indicated as follows:
1. Accessory Uses and Requirements:
See Articles M through P of this Chap.
ter.
a. Permitted Accessory Uses and
Buildings: See Section 14-6M-1 of this
Chapter.
b. Accessory Uses and Building
Regulations: See Section 14-6M-2 of
this Chapter.
c, Off-Street Parking Requirements:
See Section 14-6N-1 of this Chapter.
d. Off-Street Loading Require-
ments: See Section 14-6N-2 of this
Chapter.
e. Sign Regulations: See Article 0
of this Chapter.
f. Fence Regulations: See Article P
of this Chapter.
2. General Provisions: See Articles Q
through U of this Chapter.
a. Dimensional Requirements: See
Article Q of this Chapter.
b. Tree Regulations: See Article R
of this Chapter.
c. Performance Standards: See
Article S of this Chapter.
d. Nonconformitles: See Article T of
this Chapter.
G. Special Provisions:
994
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14-6E.2
1. In no instance shall an area zoned
CN-1 be less than three (3) acres or
more than ten (10) acres.
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2. A plan showing the general design
of the proposed development must be
submitted with any rezoning that re-
sults in a CN-1 zone greater than
seven (7) acres in size. The plan shall
include provisions for landscaping,
scr~ening and buffering between the
proposed commercial development
and adjacent residential zones, and
building elevati~ns.
H.
Design Provisions:
1. The following design provisions are
intended to help Insure that this zone
develops' in a manner which is com-
patible with adjacent residential neigh-
borhoods and which encourages pe-
destrian access to the zone and within
the zone.
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2. Prior to receiving a building permit
for any development, a developer
must submit a site plan which com-
plies with the requirements of Article
H of this Chapter 'Site Plan Review'.
Prior to submitting a request for site
plan review, the developer shall par-
ticipate in a preappllcation conference
with the Director of Planning and
Community Development to discuss
the application of the design provi-
sions to the subject property. The
following design guidelines will be
applied during the site plan review
process, in addition to the design
standards set forth in Article H of this
Chapter. Alternative design solutions
may be approved If it is demonstrated
that the alternative meets the intent of
this Section:
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14-6E-2
a. Bicycle parking facilities shall be
located in convenient areas of the
development and shall be located so
as not to impede pedestrian or vehicu-
lar traffic.
b. Modular masonry materials, such
as brick and concrete pavers, or
gridded cast-in-place materials, such
as exposed aggregate concrete, are
encouraged as paving materials and
accents in order to define pedestrian
walkways and to improve the appear-
ance of paved areas.
c. Pedestrian access to adjacent
residential areas shali be encouraged
through the provision of sidewalks In
addition to those located on adjacent
public streets where appropriate.
d. Pedestrian access between the
uses located in this zone shall be
,encouraged by the location of side-
walks and other pedestrian-designated
routes.
e. Parking lot layout shall take
pedestrian circulation into consider-
ation: pedestrian crosswalks shall be
provided, ,where necessary and appro-
priate, shall be permanentiy designat-
ed with materials such as textured or
brick paving, and shall be integrated
into the wider network of pedestrian
walkways. Pavement textures are
encouraged elsewhere in the parking
lot, as surface materials, or as ac-
cents.
f. The ends of parking aisles shall
contain landscaped Islands.
g. Areas which are not used for
vehicular and pedestrian access or
parking shall be landscaped.
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14-6E-2
h. Buildings in the zone shall relate
to one another, both functionally and
visually, and shall encourage pedestri-
an activity. A development with multi-
ple buildings may be organized
around features such as courtyards
with trees, greens or quadrangles.
i. Buildings shall avoid uninterrupt-
ed wall or roof planes. Building wall
offsets, including both projections and
recesses, and changes in floor level
shall be used In order to add architec-
tural interest and variety, and to re-
lieve the visual effect of a single, long
wall. Similarly, roof line offsets shall
be provided in order to provide archi-
tectural interest and variety to the
massing of a building and to relieve
the effect of a single, long roof.
j. Blank, windowless walls should
be avoided on the fronts of buildings.
Where the construction of a blank wall
Is necessary, the wali should be artic-
ulated by at least one of the following
methods: changes in plane, building
material or color. '
k. Air conditioning units, HVAC
systems, exhaust pipes or stacks,
elevator housing and satellite dishes
and other telecommunications receiv-
ing devices shall be screened from
view from the public right of way and
from adjacent properties, by using
walls, fencing, roof elements, pent-
house-type screening devices or land-
scaping. (Ord. 94-3626, 6-14-94)
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ATTACHMENT 2
Proposed Text Amendments to the CN-' Zone Section of the Zonin!l Chapter:
1. Residential Uses: No change is proposed. Residential uses would continue to be
permitted in the CN-1 zone by special exception, as follows:
City Code Section 14-6E-2D1. Special Exception. Dwellings located above the ground
floor of a principal use permitted in this zone, provided the density does not exceed
one dwelling unit per one thousand eight hundred (1,800) square feet of lot area.
2. Restaurants: Restaurants 2,500 square feet or less in floor area are proposed as
provisional uses, and restaurants exceeding 2,500 square feet in floor area would be
permitted only by special exception. In no case would restaurant floor area usage
exceed 20 percent of the total commercial floor area within a CN-1 zone.
City Code Section 14-6E-2C5. Provisional Use. Restaurants, provided the floor area
does not exceed 2,500 square feet for anyone restaurant, and the total floor area
allocated to restaurant uses will not exceed 20 percent of the total commercial floor
area in a CN-1 zone.
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City Code Section 14-6E-2D6. Special Exception. Restaurants that exceed 2,500
square feet in floor area, except the total floor area allocated to restaurant uses will
not exceed 20 percent of the total commercial area in a CN-1 zone.
3.
Car Washes: City Code Section 14-6E-2D3. Special Exception. Filling Stations
provided that no part of the filling station site shall be located within 100 feet of an
R zone boundary. One-bay car washes are allowed as an accessory use to a filling
station.
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NOTICE OF PUBLIC HEARING
i
Notice is hereby given that a public hearing will
be held by the City Council of Iowa City, Iowa,
at 7:30 p.m. on the 8th day of November,
1994, in the Civic Center Council Chambers,
410 E. Washington Street, Iowa City, Iowa, in
consideration of the following:
1. An Ordinance amending City Code Section
14-6E-2, Neighborhood Commercial Zone,
to allow restaurants as provisional uses or
by special exception with specific restric-
tions, and car washes by special exception
fn\~lth specific restrictions.
~n ordinance vacating a portion of Water-
front Drive located southeast of the
CRANDIC Railroad right-of-way.
3. An ordinance amending City Code Sections
14-6B.2, 14-6E-8, 14-6E- 7 and 14-6E-6 to
permit restaurant carry-out uses in the CB-
1 0, CB~5 and CB.2 zones.
Copies of the proposed ordinances are on file
for public examination In the Office of the City
Clerk, Civic Center, Iowa City, Iowa. Persons
wishing to make their views known for Council
consideration are encouraged to appear at the
above.mentioned time and place.
MARIAN K. KARR, CITY CLERK
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ORDINANCE NO.
AN ORDINANCE VACATING A PORTION OF
WATERFRONT DRIVE LOCATED SOUTHEAST
OFTHE CRANDIC RAILROAD RIGHT-OF-WAY.
WHEREAS, the City of Iowa City is consider-
ing the rezoning of property located east of the
Crandic Railroad right-of-way from Intensive
Commercial, CI-1, to Community Commercial,
CC-2, to allow the development of a retail
center; and
WHEREAS, the proposed rezoning and retail
development in this area wiil result In an In-
crease In traffic on Stevens Drive and Water-
front Drive; and
WHEREAS, in order to help ensure efficient
and safe traffic circulation In this area it is
necessary to reconfigure portions of Stevens
Drive and Waterfront Drive; and
WHEREAS, said reconflguration requires the
vacation of a portion of Waterfront Drive.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
SECTION I. VACATION. Subject to retention
of a utility easement over the sanitary sewer
line located in the right-of-way, retention of
easements over other utilities located in the
right-of-way, and the establishment of a tempo-
rary public access easement' over the property-
between the eastern terminus of Stevens Drive
and the northern terminus of Waterfront Drive
until the time Southgate Avenue is constructed
between Waterfron~ Drive and Gilbert Street,
the City of Iowa City hereby vacates the por-
tion of Waterfront Drive legally described as
follows:
Commencing at the Southwest Corner
of the Southeast Quarter of Section 15,
Township 79 North, Range 6 West, of
the Fifth Principal Meridian; Thence
NB7029'40"E, (A RECORDED BEAR-
INGI, 70.9B feet, to a point on the
Southwesterly Right-of-Way Line of
Waterfront Drive, and the Point of
Beginning; Thence NOB 0 55' 45 "E, along
said Southwestel'ly Right-of-Way Line,
142.67 feet; Thence N4503B'50"W,
along said Southwesterly Right-of-Way
Line, 1B.72 feet, to Its intersection
with the Easterly Right-of-Way Line, of
the Cedar Rapids and Iowa City Rail-
way Company; Thence N07014'26"W,
along said Easterly Rlght:of-Way Line,
106.24 feet, to Its Intersection with the
Easterly Rlght-of.Way Line of Water-
front Drive as shown on the Plat of
Survey, recorded In Plat Book 12, at
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Ordinance No.
Page 2
,",
Page 14 of the Records of the Johnson
County Recorder's Office; Thence
S45 0 38' 50" E, along said Westerly
Line, 123.87 feet, Thence
S08055'45"E, along said Easterly
Right-of-Way line, 172.00 feet;
Thence S87029'40"W, 66.42 feet, to
the Point of Beginning. Said Parcel of
Land contains 15,089 square feet,
more or less, and is subject to ease-
ments and restrictions of record.
SECTION II. REPEALER. All ordinances and
parts of ordinances in conflict with the provi-
sions of this Ordinance are hereby repealed. '
SECTION III. SEVERABILITY. If any section,
provision or part of the Ordinance shall be
adjudged to be invalid or unconstitutional, such
adjudication shall not affect the validity of the
Ordinance as a whole or any section, provision
or part thereof not adjudged invalid or unconsti- ,
tutional.
SECTION IV. EFFECTIVE DATE. This Ordi-
nance shall be in effect after its final passage,
approval and publication, as prOVided by law.
Passed and approved this
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STAFF REPORT
To: Planning & Zoning Commission
Prepared by: Robert Miklo
Item: VAC94-0006. Vacation of a portion
of Waterfront Drive
Date: October 6, 1994
GENERAL INFORMATION:
Applicant:
City-initiated.
Requested action:
Vacation of a portion of Waterfront
Drive.
Location:
Southeast of CRANDIC Railroad right-
of-way.
, Size:
Approximately 2,00~quare feet.
Surrounding land use and zoning:
North - Commercial; CI-1 (proposed
CC-21.
South - Commercial; CI-1.
East - Commercial; CI-1 (proposed
CC-2).
West - Commercial; CI-1.
Comprehensive Plan:
Intensive Commercial.
SPECIAL INFORMATION:
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Public utilities:
No municipal water line is located with-
in the right-of-way. A sanitary sewer
line is located in the right-of-way.
Access:
Access from the north is via Stevens
Drive. Stevens Drive will terminate to
the north of this site if the vacation is
approved. Access from the south is via
Southgate Avenue. If the vacation is
approved, Waterfront Drive will termi-
nate approximately 550 north of
Southgate Avenue.
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BACKGROUND:
The Planning and Zoning Commission and staff have made a recommendation to the City
Council that the property east of Waterfront Drive and Stevens Drive be rezoned from CI-1,
Intensive Commercial, to CC-2, Community Commercial, subject to the reconfiguration of
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Stevens Drive and Waterfront Drive, among other conditions. The City Council is in the
process of considering that rezoning. If approved, the rezoning will allow the construction of
a proposed Hy-Vee east of Waterfront Drive. The reconfiguration of Stevens Drive and
Waterfront Drive were recommended to alleviate an already difficult traffic situation, and to
help assure that the increase in traffic generated by the proposed retail development can be
accommodated by the proposed reconfigured public streets.
The proposed reconfiguration includes the extension of Stevens Drive across the CRANDIC
Railroad and its terminus at the western entry of the Hy-Vee site. Waterfront Drive between
the CRANDIC Railroad and the proposed Hy-Vee property would be vacated and would
become available for purchase by Hy-Vee for incorporation into their site. This will allow an
improved railroad crossing and minimize turning movements necessary to reach the proposed
Hy- V ee property.
ANALYSIS:
As stated above, vacation of Waterfront Drive in conjunction with the development of the
proposed Hy-Vee will help provide safer traffic circulation for the Hy-Vee site. Access to the
Hy-Vee site will remain available from the west via Stevens Drive. It will also be available
from the south via Waterfront Drive to Southgate Avenue. The properties south of the Hy-
Vee site will, however, have diminished access from the north.
Access to these properties will still be available via Waterfront Drive to Southgate Avenue.
Access to these properties will be enhanced when Southgate Avenue is extended to Gilbert
Street. The construction of Southgate Avenue is in the fiscal year 1997 Capital Improve-
ments Program. To assure that these properties have sufficient access between the time of
the street vacation and the completion of Southgate Avenue to Gilbert Street, a temporary
public access easement should be established over the Hy-Vee property between the east end
of Stevens Drive and the north end of Waterfront Drive.
It should be noted that a portion of Waterfront Drive north of Stevens Drive and east of
Gilbert Street may also be vacated or closed by the City. This will help improve the congested
intersection of Waterfront Drive and Gilbert Street. This vacation or closure can occur
independently from either the currently proposed vacation or the Hy-Vee project.
There currently is a sanitary sewer line located within the portion of Waterfront Drive
proposed for vacation. An easement must be retained over the portion of the right-of-way
which contains this line. This proposed vacation has been referred to all private utility
companies. If there are private utilities located within the right-of-way, they may need to be
relocated or an easement may need to be retained over them.
Although the properties south of the Hy-Vee site will have diminished access from the north
if the proposed vacation is approved, the general traffic circulation in this area of the city will
be greatly improved with the connection of Southgate Avenue to Gilbert Street, and the
elimination of a substandard railroad crossing by Waterfront Drive.
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STAFF RECOMMENDATION:
Staff recommends that the portion of Waterfront Drive located southeast of the CRANDIC
Railroad right-of-way, as shown on the location map, be vacated, subject to retention of a
utility easement over the sanitary sewer line; retention of easements over any other utilities
located within the right-of-way; and establishment of a temporary public access easement
over the property between the eastern terminus of Stevens Drive and the northern terminus
of Waterfront Drive until the time Southgate Avenue is constructed between Waterfront Drive
and Gilbert Street.
ATTACHMENT:
1. Location Map.
Approved by:
Ka[ n Franklin, Director
D partment of Planning and
Community Development
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will
be held by the City Council of Iowa City, Iowa,
at 7:30 p.m. on the 8th day of November,
1994, in the Civic Center Council Chambers,
410 E. Washington Street, Iowa City, Iowa, in
consideration of the following:
1. An Ordinance amending City Code Section
14-6E-2, Neighborhood Commercial Zone,
to allow restaurants as provisional uses or
by special exception with specific restric-
tions, and car washes by special exception
with specific restrictions.
2. An ordinance vacating a portion of Water-
front Drive located southeast of the
CRANDIC Railroad right-of-way.
~An ordinance amending City Code Sections
14-6B-2, 14-6E-8, 14-6E- 7 and 14-6E-6 to
per~ r"~~~dr~~ carry-out uses in the CB-
10, 8-5 -11 zones.
Copies of the proposed ordinances are on file
for public examination in the Office of the City
Clerk, Civic Center, Iowa City, Iowa. Persons
wishing to make their views known for Council
consideration are encouraged to appear at the
above-mentioned time and place.
MARIAN K. KARR, CITY CLERK
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ORDINANCE NO.
ORDINANCE AMENDING TITLE 14-6, CHAPTER
6, ENTITLED "ZONING:' CITY CODE BY REVIS-
ING ARTICLE B, ENTITLED "ZONING DEFINI-
TIONS," AND ARTICLE E, ENTITLED "COM-
MERCIAL BUSINESS ZONES," TO ADD THE
DEFINITION OF RESTAURANT CARRY-OUT
AND PERMIT SAID USE IN THE CB-10 ZONE.
WHEREAS, Restaurant Carry-out uses may
be distinguished from Restaurant Drive-
in/Carry-out uses by their lack of emphasis on
auto traffic; and
WHEREAS, downtown Iowa City contains a
number of uses that cater to the pedestrian
activity downtown; and
WHEREAS, Restaurant Carry-out uses would
add to the economic vitality of downtown with
no adverse effect.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA:
SECTION I. AMENDMENT. Chapter 6, entitled
"Zoning," Article B, entitled "Zoning Defini-
tions" of the City Code be hereby amended by:
a. Adding "Restaurant Carry-out" In Section
14-6B-2, "Definitions," to read as follows:
RESTAURANT CARRY-OUT: A busi-
ness where the principal operation is
the dispensing of edible foodstuff
and/or beverage for consumption at
Indoor or outdoor tables, at stand-up
counters, or to be carried off the pre-
mises. The total seating area, if pro-
vided, Is less than fifty percent (50%)
of the floor area.
SECTION II. AMENDMENT. Chapter 6, enti-
tled "Zoning," Article E, entitled "Commercial
and Business Zones" of the City Code be
hereby amended by:
a. Adding to Section 14-6E-B, "Central Busi-
ness Zone (CB-1 01," B. Permitted Uses, the
following:
Restaurant Carry-out.
SECTION III. REPEALER. All ordinances and
parts of ')rdinances in conflict with the provi-
sions of this Ordinance are hereby repealed.
SECTION IV. SEVERABILITY. If any section,
provision or part of the Ordinance shall be
adjudged to be invalid or unconstitutional, such
adjudication shall not affect the validity of the
Ordinance as a whole or any section, provision
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Page 2
or part thereof not adjudged invalid or unconstI-
tutional.
SECTION V. EFFECTIVE DATE. This Ordi-
nance shall be in effect after Its final passage,
approval and publication, as provided by law.
Passed and approved this
MAYOR
ATTEST:
CITY CLERK
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City of Iowa City
MEMORANDUM
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Date: October 28, 1994
From: Karin Franklin, Director, P
To: Planning & Zoning Commission
Re: Restaurant Carry-out Uses Downtown
A recent entrepreneurial endeavor in downtown Iowa City brought to our attention the fact that
some restaurants are technically unable to locate in the downtown due to the amount of seating
that is provided in the establishment. We also found that there are such establishments in the
downtown that are operating with no apparent negative effects. Therefore, an ordinance
amendment is proposed to permit these types of restaurants to locate in the CB-10 zone.
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Currently the Zoning Ordinance contains definitions for Restaurants and Restaurant Drive-
in/Carry-out. The distinguishing features between these two types of restaurants is the amount
of seating provided, with a Restaurant having more than 50% of the floor area in seating and the
Restaurant Drive-in/Carry-out having less than 50% of the floor area in seating. This distinction
reflects the relative need for seating based on auto orientation of the drive-in/carry-out use;
customers served in their cars would not need seating. The type of operation there is an interest
in pursuing downtown is focused on pedestrian traffic and not auto traffic, but similarly does not
need the seating of a conventional restaurant because of the emphasis on carry-out. Other
establishments focus on pedestrian traffic and also have different production space needs than '
other restaurants (see attached correspondence). The staff has reviewed this concept and finds
that Restaurant Carry-out uses, without the drive-in component, could be an asset to the
downtown and would have minimal negative impacts.
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A proposed ordinance is attached which defines Restaurant Carry-out as a separate use and
allows this use in the CB-10 Zone as a permitted use.
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CAFE
Sentember 26, 1994
Ms. Karin Franklin
Director of pla.1l1ing and Camnmity Develcpment
Citv of ICMa City, Iowa
RE: BUSINESS PIJI.N FOP THE PPOPOSED "BFEllD GARDEN BIIl<ERY"
Dear Ms. Franklin:
I am writinq to clarify our intent and vision for the proposed use of the
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Novotny Building at 224 South Clinton, as per your conversation with Kevin
Monson this past priday.
Ne see this as a walk-in "Food Theater" event. The production of the food
is intended to be part of the shooping and dinina exnerienre. The atmosphere
recalls the warmth of the old world bakery and the vi tali ty of the neighborhood
New York Deli. The main oven is right uP front, the bread is prepared in
plain view and the rreat slicers are in shouting ranae.
This will be a "Eurcpean Hearth Bread" stvle bakery that specializes in
Eurooean-style breads, rolls and pastries. 'l11ese are all natual breads
that are made fran fermented sourdough starters for old-fashion flavor and
leavening.
Around the activity of the bakery will be a deli counter, making fresh
deli sandwiches and selling sliced meats, cheeses, pastas and salads. The
sit-dam dining is limited to a maximum of 45 seats with a good view of the
bakery, deli and Clinton Street. The custaners caninq and O'oinl?', with bread
for the night or a sandwich for lunch, are alluart of the event.
We will be equipping the bakery to be op,erational durinCl the normal restaurant
hours of 6 11/01 to 7 PM. Avoiding a 24-hour production' schedule will aive us
the best control over our quality, but it reauires that the bakery have a
great deal of stagincr space, storage, and fermentation spare, thus ll1in:imizinq
the SIlace for seating in the dining area.
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l (; we anticipate a business plan as fOllCMs:
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September 26, 1994
Page 'lWo
RETAIL
- OVer counter sales of pastries, breads,
deli sandl'liches, deli goods, pastas and drinks (80%)
- Bread sales to mv CMll restaurants, Fresh
Food COnrepts, Inc.) (10%)
CATERING - Catering fron deli/preparation kitchen (10%)
As you can see, we are definitely planning to have a retail operation with
heavy emphasis on over the counter sales.
I hope this infonration addresses your questions sufficiently. We would like
to be ooving ahead as scon as possible, so please feel free to call nwself at
337-9616, or Kevin ~lonson at 338-7878 if you have any further questions.
I
Thank you for your tine and interest with this project.
Sincerely,
9;st
Fresh Food COnrepts, Inc.
co: !):Jug Boothroy
Fen Boose
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ORDINANCE NO,
ORDINANCE AMENDING TITLE 14-6, CHAPTER
6, ENTITLED "ZONING," CITY CODE BY REVIS-
ING ARTICLE B, ENTITLED "ZONING DEFINI-
TIONS," AND ARTICLE E, ENTITLED "COM-
MERCIAL BUSINESS ZONES," TO ADD THE
DEFINITION OF RESTAURANT CARRY-OUT
AND PERMIT SAID USE IN THE CB-10 ZONE.
WHEREAS, Restaurant' Carry-out uses may
be distinguished from Restaurant Drive-
in/Carry-out uses by their lack of emphasis on
auto traffic; and
WHEREAS, downtown Iowa City contains a
number of uses that cater to the pedestrian
activity downtown; and
WHEREAS, Restaurant Carry-out uses would
add to the economic vitality of downtown with
no adverse effect.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA:
SECTION I. AMENDMENT, Chapter 6, entitled
"Zoning," Article B, entitled "Zoning Defini-
tions" of the City Code be hereby amended by:
a. Adding "Restaurant Carry-out" in Section
14-!)8-2, "Definitions," to read as follows:
RESTAU'RANT CARRY-OUT: A busi-
ness where the principal operation Is
the dispensing of edible foodstuff
and/or beverage for consumption at
Indoor or outdoor tables, at stand-up
counters, or to be carried off the pre-
mises. The total seating area, If pro-
vided, is less than fifty percent (50%1
of the floor area.
SECTION II. AMENDMENT. Chapter 6, enti-
tled "Zoning," Article E, entitled "Commercial
and Business Zones" of the City Code be
hereby amended by:
a. Adding to Section 14-6E-B, "Central Busi-
ness Zone (CB-1 0)," B. Permitted Uses, the
following:
Restaurant Carry-out.
SECTION III. REPEALER. All ordinances and
parts of ordinances in conflict with the provi-
sions of this Ordinance are hereby repealed.
SECTION IV. SEVERABILITY, If any section,
provision or part of the Ordinance shall be
adjudged to be invalid or unconstitutional, such
adjudication shall not affect the validity of the
Ordinance as a whole or any section, provision
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Ordinance No.
Page 2
or part thereof not adjudged invalid or unconsti-
tutional.
SECTION V, EFFECTIVE DATE. This Ordi-
nance shall be in effect after its final passage,
approval and publication, as provided by, law,
Passed and approved this
MAYOR
ATTEST:
CITY CLERK
Approved by
City Attorney's Office
ppddJr\carryoul.ord
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NOTICE OF PUBLIC HEARING
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Notice is hereby given that a public hearing
will be held by the City Council of the City of
Iowa City, Iowa, in the Council Chambers at
the Civic Center at the regular scheduled Coun-
cil meeting at 7;30 p.m. on November B, 1994,
for the purpose of hearing comments for or
against the proposed new rate increases for the
Water System and the Wastewater Treatment
System. Information on the proposed rate
increases is available at the City Clerk's Office
and at the Office of the Director of finance.
MARIAN K. KARR, CITY CLERK
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City of Iowa City
MEMORANDUM
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Date:
November 4, 1994
To:
City Council and City Manager
Don Yucuis, Finance Director ~
Public Hearing on Wastewater an~ater User Fee Rate Increase
From:
Re:
I am recommending that rate increases for wastewater and water fees be approved for billings
to be sent out on or after February 1, 1995. The timeframe needed to approve and implement
water and wastewater rates for bills sent out on or after February 1, 1995, is as follows:
1. November 8, 1994 - public hearing and first consideration of ordinance.
2. November 22, 1994 - Collapse readings, have second and third consideration, adopt
ordinance.
3. Publish ordinance in the newspaper prior to December 1, 1994.
Summarv of Citv Code Chanl:les to Water and Wastewater
Water
. For billings on or after February 1, 1995 and 1996, water fees to increase by 40% and
75 % respectively. Includes flat percentage increases to all minimum charges and rate
blocks.
. Eliminates water deposit for installation of new meters as well as the refund for each new
meter. Water Division believes that the fee and refund are not necessary.
. Single purpose (outside) meter fee amended to show current cost of meters.
. Change Surepay discount to $1.00 per billing from $.50 per month.
o Change direct purchase water fee to $1.00 from $1.25 per 200 gallons.
. Changes delinquent water service account fee from $3.00 to $5.00. Fee has been the
same for at least twelve years.
. Eliminates cost differential between installing iron or PVC pipe.
. Add in new fee section for extension of major feeder lines loversizing) $354 per acre.
. Eliminates posting fee after normal hours because it's not done after normal hours.
. Increases water meter accuracy fee from $30 to $35.
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Wastewater
. For billings on or after February 1, 1995 and 1996, wastewater fees to increase by 35%
and 40% respectively. Includes flat percentage increases to the minimum charge, charge
per 100 cu. ft. over the minimum, BOD surcharge and Suspended Solids surcharge.
. Increase delinquent sanitary sewer service account fee from $3 to $5.
A Wastewater fee increase is necessary in order to guarantee compliance with current bond
ordinance restrictions pertaining to 1.10% revenue coverage on the 1993 sewer revenue
bonds; to pay for the wastewater share of the debt service pertaining to the June 1994 GO
bond issue; and to generate sufficient revenue to pay for new debt service on revenue and
GO bonds (to be issued in calendar year 1995) that will finance the $42 million of wastewater
improvements.
The City did not meet the 1.10% revenue coverage in FY90 and therefore the wastewater
revenue bonds can be downgraded by Moody's Investors, Inc. from 'A' to something lower
if the pattern continues.
The Wastewater revenue coverage has been .96, 1.20, 1.19 and 1.13 for FY90 through FY93
respectively. As you can see it has been dropping since FY91.
Water fee increases are necessary to pay for the water fund share of the debt service
pertaining to the June 1994 General Obligation (GO) Bond issue and for the costs associated
with the new debt service on revenue and GO bonds (to be issued in calendar year 1995) that
will finance the new water plant.
The rate increase must be in place to market the bonds next year. The credit evaluation by
Moody's Investors, Inc. of a revenue bond issue involves an evaluation ofthe City's expressed
willingness and ability to pay. The rating agencies review numerous criteria and in order to
maintain the City's historically high "A" rating on the Wastewater revenue bonds and
hopefully receive the same rating on the Water revenue bonds, rate increases must be
approved. On October 19, 1994, representatives of Moody's will be in Iowa City to review
our finances, fiscal management capabilities, economic and other related factors. A higher
rating equates to lower interest rates on the bonds, thereby saving the City from paying higher
interest payments over the life of the bonds.
WASTEWATER FUND - RATE INCREASE
Bond Issue Requirements and Revenue Needs
The estimated total wastewater project cost is approximately $41,100,000.
Wastewater Revenue Bonds will most likely be issued to finance the majority of the
improvements.
The estimated debt service on a $41,100,000 bond issue, repaid over 25 years, is
$3,664,600 annually. Already factored into the Wastewater Fund's operating budget is the
existing debt service of $3,470,000 on the 1993 (this issue refunded the 1986 bondsl
revenue bonds. The final payment on the 1993 bonds is in FY2013.
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A 35% rate increase is recommended effective for bills issued on or after February 1, 1995,
and a 40% rate increase for bills issued on or after February 1, 1996 to generate the
necessary revenue. The rates assume a 5% reduction in usage billed. If usage in FY95
declines by more than 5%, the FY96 rates will need to be increased by more than 40% for
billings on or after February 1, 1996.
Historical Persoective
FY93 wastewater fee revenues totaled approximately $5,800,000. The current minimum
charge is $6.30 per month for up to 200 cubic feet of water use. Minimum charge fees
account for over 19% or $1,100,000 of the total revenues of $5,800,000. A flat $1.54 per
100 cubic feet is charged for usage greater than the monthly minimum. This flat fee was
tested by the courts in the University of Iowa lawsuit against the City and the City prevailed.
Iowa City residents {single-family up to four-plexl account for almost 39% or $2,200,000 of
total revenues. The University of Iowa is the largest single user and accounts for approxi-
mately 21 % or $1,200,000 of the other revenue.
A surcharge for Biochemical Oxygen Demand (BOD) and Suspended Solids (SS) accounts for
approximately $150,000. This surcharge is for those users (Procter & Gamble, Home Town
Dairies, Millard Warehouse, UTA, City Landfill) who contribute wastewater having a strength
which is greater than normal domestic wastewater.
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Rate increases in the past included increasing not only the minimum use charge but the rate
block at a flat rate across the board. This is what was done in September of 1991 when
wastewater rates were increased approximately 10%. Minimum bills in the wastewater
treatment fund account for approximately 20% ($1.1 million) of the total dollars generated.
Wastewater user fees are recommended to increase by 35% on February 1, 1995 and 40%
on February 1, 1996. The new wastewater user fees based on the recommended rate
increases are highlighted below:
WASTEWATER USER FEES:
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Minimum monthly charge-
(includes first 200 cu. ft.)
Monthly charge for add'l 100
cu. ft. of water used
Unmetered user, monthly minimum
Manufactured housing park,
monthly minimum per lot
Deposit fee for combined city
water andlor sewer andlor
solid waste collection acct.:
Residential owner account
Residential tenant account
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Proposed Proposed
9/90 9/91 2/95 2/96
$5.75 $6.30 $8.50 $11.90
$1.40 $1.54 $2.08 $2.91
$12.90 $14.20 $19.18 $26.85
$12.90 $14.20 $19,18 $26.85
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$50.00
$75.00
$100.00
$75.00
$100.00
$75.00
$100.00
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WATER FUND
Bond Issue and Revenue Reauirements
The estimated total project cost is $50,000,000. Included as part of the $7,370,000 1994
General Obligation Bond issue dated June, 1994 was $1,500,000 of water related projects,
This leaves a balance of $4B,500,000 to be financed from future bond proceeds.
The estimated annual debt service on a $48,500,000 bond issue, repaid over 25 years, is
$4,328,000 (assumes 7% rate). Assuming a 5% reduction in consumption (usage I, a 40%
rate increase is recommended effective February 1, 1995, and a 75% rate increase effective
for bills issued on or after February 1, 1996 to generate the necessary revenue. If water
usage in FY 1995 declines more than 5%, then rates on January 1, 1996, will need to be
increased even more. Water consumption will be tracked very closely to determine what the
trends are.
Historical Perspective
I would like to highlight some of the FY93 usage and revenue information. The City of Iowa
City operates a predominantly residential water system. Below is a breakdown of water billed
and revenue produced by user type.
\
% of Total % of (0
Accounts Revenue by I
User Type Billed User Type
Residential 91.9% 68%
Commercial 6.9% 17%
Industrial 0.2% 7%
Government 1.0% 8%
TOTAL 100,0% 100%
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Rate increases in the past included increasing not only the minimum use charges but all the
rate blocks at a flat rate across the board. This is what was done in September of 1991
when water rates were increased approximately 25%. Minimum bills in the water fund
account for approximately 31 % ($1 million) of total dollars generated. As you can see, the
minimum bill plays a major part in the revenue produced for the water fund. The minimum
bill is a critical factor reviewed by Moody's Investors Inc. when they rate the City's bonds.
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FY93 water fee revenue totaled approximately $3,300,000. Current minimum charges vary,
depending on meter size. The most common meter is a %11 meter with a $5.30 per month
charge for up to 200 cubic feet of water use (1,496 gallonsl. A declining rate is currently in
effect. This means that the more water you use the rate per 100 cubic feet goes down.
Water usage from 201 to 3000 cubic feet per month is billed at $1.10 per 100 cubic feet and
usage over 3000 cubic feet per month at $.79 per 100 cubic feet. Iowa City residents
(single-family up to four-plexl account for over 58% or approximately $1,880,000 of total
revenue. An additional cost to the consumer is a 5% state sales tax charged on the water
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portion only. The basic principle of declining rate structure is that it becomes less expensive
to produce more water.
Water user fees are recommended to increase by 40% on February 1, 1995 and by 75% on
February 1, 1996. The new water user fees based on the historical flat rate increase across
the board are highlighted below:
WATER SERVICE CHARGES:
Minimum monthly charge
(includes first 200 cu. ft. -
based on meter sizel
WATER SERVICE CHARGES:
Monthly user charges for
water in excess of 200 cu. ft.
per month
Second meter charges for
water in excess of 200 cu. ft.
per month
IMPACT TO THE USERS
A veraoe Residential User
Meter Proposed Proposed
Size 9/90 9/91 2/95 2/96
6Ja $4.25 $5.30 $7.42 $13.00
% 4.75 5,80 8.12 14.20
1 5.60 6,85 9,60 16,80
1% 11,15 13.65 19.10 33.42
2 15.00 18.35 25,70 44.98
3 27.75 33.90 47.46 83.06
4 48.40 59.15 82.80 144,90
6 97.40 119.05 166.66 291.60
Monthly
Usage Proposed Proposed
(Cu, Ft.l 9/90 9/91 2/95 2/96
Next 2,800 $0.90 $1.10 $1.54 $2.70 B
Next 17,000 0.65 0,79 1.10 1.94 I
Next 20,000 0.60 0.79 1.10 1.94
After minimum $0.90 $1.10 $1.54 2.70
Next 17,000 0.65 1.10 1.54 2.70
Next 20,000 0.60 1.10 1.54 2.70
The average residential user consumes 750 cubic feet per month. Based on the rate increases
proposed above of 40% and 35% in FY95 (effective 1-1-95) and 75% and 40% in FY96
(effective 1-1-96) for water and wastewater respectively for each year, the average residential
monthly bill and minimum bill would be as follows:
Wastewater
Water
5% State Tax (Water Only)
Solid Waste
Total
$ change per month
% change per month
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After After
Current 2-1-95 2-1-96
14.77 19.94 27.90
11.35 15.89 27.85
.57 .79 1.39
11.00 jj,.OO 13.15
37.69 47.62 70.29
9.93 22.67
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26% 48%
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Chanqe to Monthlv Billinq
Staff will start the process to change the monthly billing if the City Council so desires. Below
are the costs associated as well as justification to go to monthly billing.
There are currently approximately 17,000 utility accounts, 200 accounts are billed each
month for monthly usage, the balance are billed every other month for two months of usage.
The average resident currently pays approximately $75 every two months. This will increase
to $95 and $140 every two months based on the proposed rate increase.
Ed Moreno, Water Superintendent, recommends that the City change to monthly meter
reading to better serve the customers. This would require that two permanent meter reading
positions be established. Currently there are three temporary and one half time permanent
meter reader positions budgeted. These two positions would read meters, assist in the
investigation of leaks, perform shut-offs and turn-ons, and process work orders related to the
billing system. The Water Division has had nine temporary meter readers come and go within
the last two years. This provides very little continuity and experience as the positions are
often in transition and training. The net increase would be approximately $18,500 in the first
year. The Water Division has the necessary equipment to read the meters.
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The Treasury Division processes the bills and also recommends changing to monthly billing.
A full time account clerk position is recommended to handle the increased bill processing. A
temporary position would be eliminated if this new position was added. The net dollar
increase in staff would be approximately $26,000 in the first year. Additional costs
associated with forms, envelopes, postage, microfilming and lockbox processing would add
another $47,600 each year and one time costs for a new workstation, work table and storage
files total approximately $4,800. The Treasury division costs would be offset through
increased administrative chargebacks to Water, Wastewater and Refuse.
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Total increased costs associated with processing bills monthly are:
Ongoing costs
One time costs
Costs
$92,100 (Costs will be adjusted annuallyl
4.800
$96.900
Total
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November A, 1994
Dear Iowa City Council:
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I fully appreciate the needs for an adequate and clean
water supply for our city. I also realize we are bound to
meet the federal guidelines.
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Hence there~can be no disagreement with the necessity
to raise the 'water rates to pay for the projects.
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However I do feel that all land purchases and related
expenses should be kept at a minimum. Certainly extra park/
recreational facilities would be great, but consider the
burden on many home owners as well as renters in homes
and apartments.
~'
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This is a city where the hue and cry is often heard
about the high cost of living, including apartment rentals.
How can we justify excessive land purchases, while bemoaning
the fact that lower and middle class people (in an economic
sense) cannot find living space at a cost within their
budgets.
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I don't anticipate the availability of additional govern-
ment rental subsidy funds to assist the most needy.
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Further I believe more attention must be given to the
home owner already on a limited budget and has trouble
meeting his or her ordinary expenses right now.
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Thank you for your concern.
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Sincerely,
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~n Madsen '
1315 Whiting Ave. Ct,
Iowa City, IA
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1\11.1,1111; 1l'1112-OGT-94
Next Bill Date: 07-DEC-94
CITY or IOWA CITY
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SVOBODA, LARRV
625 S CLINTON ST
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27-0CT-94
699.6~
Usage Billed:
on Account: .00
27,000 Cubic Feet
SU~IMi\IlY OF CUHHENT CIIARGES
~la Le I' , . . . . . . . , . , , . . . . . . . . . , . . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . .. 264,20
Sewel'........,...,...............,............,.. t............. 422.24
5% State Sales Tal: on ~Jatel' Chat'ges............................. 13.21
------------
------------
T ota I. . . . . . , . . . , . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 699.65
ATTENTION: A discount of $1.00 is noW applied to each utlllty billing
ONLY for thosl customers who are taking advantage of our automatic
payment system SUREPAV. Thank you to t~os! already participating in
our Surepay Program.
GET THE DISCOUNT! APPLV FOR SUREPAV TODAY! CALL'356-5066
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