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HomeMy WebLinkAbout1989-01-24 Council MinutesInformal Council Discussion January 9, 1989 Informal Council Discussion: The meeting started at 6:30 p.m. Mayor John McDonald presiding. Councilmembers present: Ambrisco, Balmer (left at 7:55 PM), Courtney, Horowitz, Larson, McDonald. Staff present: Atkins, Donner, Helling, Horton, Stock, Karr, Smith, Kimble, Schmeiser, Schoenfelder, Timmins, Vitosh, Bieri. Tape-recorded: Reel 89-1, Side 1, 1 -End; Side 2, 1 -End; Reel 89-2, Side 1, 1 -End. CONSENT CALENDAR: Reel 89-1, Side 1 Council agreed to add a Class "C" Liquor License for Four Cushions, Inc. dba Dooley's, 18-20 S. Clinton. PLANNING AND ZONING MATTERS: W RE Reel 89-1, Side 1 Schmeiser stated the property is intended for development of a proposed affordable housing project. Schmeiser noted additional information will be provided to Council prior to the public hearing. In response to Horowitz, Schmeiser said the proposal is to vacate the alley along the northern right-of-way line of the railroad. Larson asked why the road is not being built on the alley. Schmeiser explained that according to the City's policy, the City will vacate/dispose of the right-of-way equally to abutting property owners on both sides of the alley. Schmeiser said the City is giving the property owners on the west side the opportunity to purchase ten feet of the alley. Schmeiser explained the proposed amendments are to eliminate the special exceptions requirements for child care facilities which are licensed or registered having six or fewer children. Schmeiser said those child care facilities fall under the definition of home occupation and the Planning and Zoning Commission recommended that the permitted hours of operation for home occupations be extended to begin at 7:00 AM. Horowitz asked that the ordinance be referred back to the Planning and Zoning Commission. Horowitz suggested that the ordinance have an exclusion for persons caring for six or fewer children. Councilmembers discussed the need in Iowa City for child care at various times of the day. Council agreed to refer the ordinance to the Planning and Zoning Commission and to defer the public hearing. Casey Cook, Planning and Zoning Commission member, Informal Council Discussion January 9, 1989 Page 2 C. E. F. G. requested clarification regarding current home occupation hours. Council stated the Planning and Zoning Commission should consider special exceptions just for daycare providers. In response to Ambrisco, Schmeiser said a permanent dust -free surface is required for the parking area. Schmeiser noted the applicant has requested expedited consideration. Schmeiser distributed plans for the proposed 56 unit high-rise multi- family residential dwelling. Schmeiser said the project consists of a four-story, high-rise building with 56 apartment units, swimming pool, and a 59 space parking lot. Schmeiser said Planning and Zoning Comnission approved the location of the transformer subject to vegetative screening being located around it. In response to Courtney, Schmeiser said the entrance to the apartment building is located on private property. Balmer asked how many houses will be removed. Schmeiser stated three houses will be removed. Schmeiser said Larry Svoboda is one of the property owners to the east that has approached the Planning and Zoning Commission regarding a sewer problem. City Attorney Timmins said Svoboda met with the City Engineer and the City Engineer is satisfied the sewer will suffice for the time being. In response to Balmer, Timmins said Svoboda's sewer line failed some time in the fall and was repaired. Horowitz asked if the Planning and Zoning staff questioned the need for piling because of the unstable soil in the area. Horowitz asked what the City's liability is in terms of the structure and integrity Informal Council Discussion January 9, 1989 Page 3 of the soil and if soil borings were taken in the area. Larry Schnittjer, MMS Consultants, stated soil borings were taken. Timmins stated the City has a responsibility to enforce whatever is in the building code and the Building Official has sufficient discretion to require engineering if soil conditions exist. Horowitz stated the proposed development is located next to the railroad right-of-way. Horowitz raised concerns that the gentle vibrations created by the railroad could crack the proposed swimming pool. Timmins said the City's responsibility, during the course of ordinary inspections of the rental units, is to make sure all the facilities that are available to the tenants, including the swimming pool, are in safe condition. Horowitz said there is water under the viaduct that makes the area slick. Schmeiser stated the applicant will have to acquire all necessary permits. HAZARDOUS MATERIALS RESPONSE TEAM Reel 89-1, Side I Larry Donner presented information regarding the hazardous materials response team. Donner noted Council received his December 28, 1988 memo regarding the Proposed Hazardous Materials Response Team Budget. Donner outlined three levels of hazardous materials response teams: Level A - Team that can identify any foreign substance and then take measures to contain it, use encapsulated suits and wide array of sophisti- cated equipment; Level B - Team that can deal with chemicals targeted in the area and have limited encapsulation; Level C - Team that has the ability to recognize a hazardous substance, rope off the area, then back off. Donner said the proposed Johnson County team would be a Level "B" team. Donner reviewed the proposed budget and stated that funding for training may be light. Donner noted a hazardous materials training class costs from $1000 to $1500 per person per class plus transportation, room and board. Donner stated the team is designed to contain a release or spill, not clean it up, and a contractor would have to be hired for clean-up. Donner added that Fire Department participation should be expanded from the current three people to nine trained people. Donner stated that of the $63,000 proposed budget, $42,000 would be obtained from the county- wide assessment. In response to Larson, Donner stated the budget increase would increase Fire Department flexibility and participation in the HAZMAT team and would not duplicate services. Donner stated the HAZMAT team would be able to handle a chlorine leak at the City Treatment Plant. In response to Larson, Donner stated that a Level "B" team would have been able to handle the incident at Village Inn restaurant. In response to Ambrisco, Donner said that the Fire Department has had 100% success charging businesses for clean-up costs of moderate spills. Donner stated that currently there is no charge for training costs but that could be an added charge later. Donner stated that after initial training, $10,000 per year will be required for training. Horowitz noted that there will be a problem in the future as area volunteer fire departments disappear. Donner stated that Informal Council Discussion January 9, 1989 Page 4 he would expect to continue helping neighboring communities and bill offenders. In response to McDonald, Donner stated that the 50C per capita for the next fiscal year will provide funds to catch up and then will drop to 25� per year. The County will also pay the same rate. Al Axeen, Coralville City Council, stated that JCCOG decided that the per capita charge would not be a surcharge on property taxes. He said that he predicts that the HAZMAT team would develop into a five or six county team and that an untrained, volunteer firefighter could not be expected to handle a hazardous material problem. ANIMAL SHELTER PROJECT Reel 89-1, Side 2 Al Axeen explained that there were eight sites considered before deciding on the current Iowa City site for the animal shelter. Axeen explained that funding is based on assessed valuation of residential property and that one license will be issued for both cities. All fees will be pooled and the balance will be funded on a shared basis. Axeen said that the Iowa City Police Department will administer personnel and the title of the building will be in the name of both cities. Schoenfelder and Horton reviewed preliminary drawings and plans for the proposed joint animal shelter facility. Axeen explained that once the new facility is open Johnson County's agreement with Iowa City to house animals will have to be renegotiated. In response to Horowitz, Horton stated building maintenance will be done by Animal Control facility personnel. Horton proposed that a one-half time kennel worker and a full-time desk clerk be added. Horowitz inquired about the Coralville licensing procedure. Horton explained Coralville animal licensing will be added to the Animal Shelter facilities computer system. Schoenfelder presented information about passive solar systems designed into the proposed animal shelter facility. In response to Larson, Schoenfelder stated the facility is isolated into three environmental systems: 1) the existing building, 2) the kennel, and 3) reception area; the charcoal filter system will not be used; and the building will be air conditioned. Axeen noted the proposed facility will increase the public's involvement. A member of the audience commended Schoenfelder for a job well done. KEGGER ORDINANCE Reel 89-1, Side 2 Atkins noted Council received his January 5, 1989 memo regarding kegger ordinance. Larson stated the City now has adequate ordinances to handle neighborhood beer parties. Larson suggested that if the Committee is devised that Committee should look at all the ways to deal with alcohol abuse within the community and not just relate to loud private parties. McDonald stated the purpose of exploring a kegger ordinance is that large parties are occurring more frequently and the intent of an ordinance would be to establish who is responsible for the parties. Councilmembers discussed the problems relating to excessive alcohol consumption in the community. Ambrisco said MADD should be represented on the Committee. Larson suggested the Committee could be charged with a specific focus and Informal Council Discussion January 9, 1989 Page 5 then also address what steps the City could explore to deal with the whole alcohol abuse problem in the community. Councilmembers discussed what the charge of the Committee should be. Atkins noted that in September there were 200 alcohol related arrests which isn't good use of police time. Atkins stated the City's Police Department babysits taverns. McDonald stated the Council agreed that a committee should be formed to initially address the kegger ordinance and review related problems time permitting. Larson noted that the public and MADD should be notified of the formation of the Committee. Atkins stated he will prepare the charge to the Committee and contact groups such as MADD regarding formation of the Committee. FY88 YEAR END FINANCIAL REPORT Reel 89-2, Side 1 Vitosh stated the report includes the audit for FY88. David Vaudt of Peat, Marwick, Main and Company reviewed the audit. Vaudt suggested the October 28, 1988 transmittal letter (page 17) offers a useful overview. Vaudt stated that the City has reorganized within the financial department to correct problems with the segregation of duties within the data processing and accounting functions. Vaudt thanked City staff for their cooperation. In response to Horowitz, Vaudt stated that the phrase "fairly represents" is standard terminology and does not reflect negatively on the City. Horowitz asked if the phrase "appropriations which are not encumbered lapsed at the end of the year" refers to all unencumbered appropriations. Vitosh said that the City follows a policy that any appropriations that are not encumbered or any expenditures in the budget that have not been ordered by the end of the fiscal year cannot be held by the department and used the following year. Vitosh stated that the department division has an item budgeted and is not able to expend those funds during the year, the department is allowed to carry those funds over into the next year without an encumbrance. Atkins said a multi-year plan serves as a forecast but the budget is administered annually. (Page 30) Courtney asked how much of the $1,600,000 will be carried over into the following year. Vitosh said she would need to review the carryovers and encumbrances. Larson asked if the City was too drastic in the cutting back of City personnel. Vitosh stated no and those cutbacks would be reflected in the current budget. Atkins said most of the personnel reductions were because the City didn't have the work to keep those particular employees on staff. Councilmembers and staff made general comments relating to the budget. Councilmembers commended staff for work done on the year end financial report. COUNCIL TIME/AGENDA McDonald informed Councilmembers meeting would finish no later than follow the special Council election Reel 89-2, Side 1 that Tuesday's formal Council 7:45 PM to allow Councilmembers to results. 2. In response to Courtney, Atkins stated that changes will be made in next year's Christmas Tree Recyling Program to make that program even more successful. Informal Council Discussion January 9, 1989 Page 6 3. Ambrisco referred Councilmembers to the December 20, 1988, correspon- dence received from Wm. Reddick on the Dick Davin property at 914 S. Dubuque St. Ambrisco summarized the situation. Councilmembers directed City Manager to review the decision of the Iowa City Electrical Board and the National Electrical Code. Donner explained the Code states that on any appeal there has to be demonstrated an equivalent level of safety. APPOINTMENTS Reel 89-2, Side 1 Human Rights Commission - Dorothy Paul Committee on Community Needs - Roberta Patrick George Starr Readvertise one Broadband Telecommunications Commission - John (Trey) Stevens Airport Commission - John Ockenfels i MISCELLANEOUS Reel 89-2, Side 1 City Manager distributed correspondence from Richard 8 Wanitta Nash regarding the purchase of the property at 1808 F Street. The meeting adjourned at 8:55 p.m. i OFFICIAL COUNCIL ACTIONS - 1/10/89 The cost of publishing the following proceedings & claims is f . Cunilative cost for this calendar year for said publication is $ . Ias City Caumcil, special mug., 6:30 p.m. at the Civic Center. MLw MDawld presiding. Councilmenbers present: Ambrisco, Balmer, Cartriey, Horowitz, Larson, McDonald. Absent: ttxme. The Mayan presented the Distinguished Budget presentation herd from the Government Finance Officers Association to Finance Director Rosemary Vitosh and Budget Analyst Terry Kimble. A special Certificate of Recognition was presented to Terry Kimble in recognition of the fifth consecutive year the City Budget had received the aerd from the Finance Officers. The Mayor proclaimed January 16, 1989, as Martin Luther King, Jr. Recognition Day. Moved and seconded that the following iters and recommendations in the Consent Calendar be received, or approved, and/or adopted as amended: Approval of Official Actions of the regular meeting of 12/21/88, as published, subject to correction, as recommended by the City Clerk. Minutes of Boards and Commissions: Imre City Council-Bd of Supervisors - joint meeting 12/15; PSR Carom. - 12/14; Sr. Center Conn. - 11/21; Airport Carom. - 11/17; Bd. of Library Trustees - I2/15; Bd. of Adjustment - 12/14; CCN Carom. - 11/22; Animal Shelter Bldg. Cammittee - 12/15. Permit Motions and Resolutions: Class B Beer Permit for Sinshine Laundry Campagy, 218 E. Market Street. Class C Beer Permit for Seaton's Cash & Carry Market, 1331 Mscatine Ave. Class E Beer Permit fur WkTrip M, 25 W. Burlington. Class C Beer {trmit far ChaWs Supermarket, 409 S. Gilbert Street. IFS. 89.1, ISSUING CIGAREf1E PEIMITS. Class C Liquor License for Dooley's, 18-20 South Clinton Street. Motions: Approving disbursements in the anomnt of $4,370,467.24 for the period of 11/1 thru 11/30/88, as recamrndud by the Finance Director, subject to audit. Resolutions: RES. 89.2, ADOPTING Sl1PP Mff 011ER 38 TO THE CCOE OF ORDINANCES OF THE CITY OF IM CITY, IDA. Setting Public Hearings: RES. 89-3, TO SET A PUBLIC HEARING FOR 1/24/89, ON PIANS, SPECIFICATIONS, FORM OF CO MKT AND ESTIM4TED COST FOR THE CORALVILLF,/I044 CITY ANIVAL SHELTER. -, Mi mites Council Activities January 10, 1989 Page 2 Correspondence: Eipressing support for Mayor's Youth Enployaent Program fran: JM and Mary McCue; Linda Lwwce. Notice from the Iowa City Finance Department of intent to purchase equipment. Memo frail the Civil Service Cohan. suimitting certified lists of applicants for the following positions: Accountant - Accounting Division; Senior Accountant - Accounting Division; Maintenance Worker I/Traffic - Parking Division; hurter Reader - Water Division; Mass Transit Operator -Nblic Transit Department. Mam from the Traffic Figr. regarding one-hour parking limit in the tourist area on the south side of Taft Speedoy west of Dubuque Street. Applications for the Use of Streets and Public Grounds: Jots Zielinnsiv requesting permission to had art literature on downtown sidewalks, approved. The Mayor declared the motion carried. Moved and seconded to set a public hearing for 1/24/89, on an ordinance to vacate an unimproved pot and the mionof terstateFirst Railway, Avenue ba 360 foot alley between First and Second Avenues, and a 175 That alley along the northern right-of-way line of the railroad. The Mayor declared the motion carried. Moved and seceded to defer and refer back to the planning and Zoning Conmission an ordinance to wend the Zoning Ordinance to eliminate certain child care providers from the regulations for child care facilities and to extend the hams for hone ocopations. The Mayor declared the motion varied. Moved and seconded that the of dirunce to vacate a portion of excess right-of-vAY on the south side of U.S. Highway 6, immdiately north of Robo Car Wash, be given first vote for passage. The Mayor declared the motion carried. Moved and seceded that the rule requiring ordinances to be considered and voted on for final passage at ten Cantil meetings p-Iar to the meeting at which it is to be finally passed be suspended, the second consideration and vote he weiYed and that OR). 89-3400, REM PROPERTY LOCATED AT 1476 FIRST AVUK FOR I-1, GF1M INOUSIRIAL TD CC -2, CCMFtNITY COPME:CIAL, be voted on for final passage at this tin. The Mayor declared the motion carried. Moved aid secaded that the ordinance be finally adopted at this time. Moved and secaded to adopt RFS. 89-4, AppWVINO THE PRfl141NARf NO FINAL LARff SCALE RESIDENTIAL DEVEI HENT (LSRD) PIAN FOR CAPITOL. VIEW APMIMM, A 56 -UNIT H19i RISE WI -FAMILY RESIDENTIAL DWELLING PROPOSED AT 630 SOUTH CAPITOL SKERRY. Minutes Council Activities Jaawry 10, 1989 Page 3 Moved and seconded to adopt RES. 89-5, APPROVING, AURMZING AND DIRECTING THE MAYOR TO EXECUTE NO THE CITY CLEW TO ATTEST, AN MREE1EDTT FOR USE OF RIBLIC m PEATY BY Aro EETWEEN THE CITY OF ICiiA CITY NO W. BOYD CIM AND TERRY P. R", FOR THE PLACEMENT Cl: AN ELECTRICAL TPP1SFORER ON THE SCUM CAPITOL STREET RIGHT-OF-WAY. The Mayor noted the recmmadation of the P&Z Comm. that the City facilitate resolution of the private sever problen affecting three properties in the 600 block of South Clinton Street, im adiately west of the proposed Capitol View A,wtmlts site. Andrew Knorr, 1155 Downey Drive, appeared re the budget for the SEATS program and adadad hors. Marjorie Hayden Strait, 1314 Pine Street, appeared to encourage the City to review the proposal for extended Sunday hours for SEATS. Rkterd Nash, 1803 F Street, appeared and requested Council consider purchase of his property at 1808 F Street due to proposed City construction in the area. A public hearing was held to receive Citizen Cmmehts on the Program Description for the pgxsed use of $69,000 in Rental Rehabilitation Grant Furls for 1989. Moved and secaded to adopt RES. 89-6, AUDDRIZING THE FILING OF A PRO" DESCRIPTION FOR 1989 RENTAL RFIVABILITATION GRANT FUNS IN THE AM OF $69,000 UM SECTION 17 OF THE LINITED STATES HaBING ALT OF 1937, INCLUDING ALL KERSTRUINGS AND CERTIFICATIONS CONTAINED THEREIN, AND DESIGNATING THE CITY 1010GER AS AUTHORIZED CHIEF EXECUTIVE OFFICER FOR THE MIT. Moved and secorxled to make the Following appointments: Dorothy Paul, 2 Glendale Court, appointed to the Rimm Rights Cmmission for an nted Roberta Patrick, 515 Oaklandd term emand lfGeorge Star, Bwn, to the CON Camrission for three-year tems ending 3/1/92 and re -advertise the remininng vacancy; re- appoint Jan (Trey) Stevens, 3005 E. Court, to the Broadband Telecmm. Cormission for a three-year term ending 3/13/92; re -appoint Join Ockenfels, 1208 Michelle Cant, to the Airport Connrissiun far a six- year term ending 3/1/95; approve re mandation of the City of Coralville that Dawn A. Willis be appointed to the Riverfrent Camdssion for an unexpired term ending 12/1/90; approve recamedation of the Johnson Canty Bd. of Supervisors that Robert S. Wadhal be re -appointed to the Riverfront Carmission for a term tiding 12/1/91. The Mayor declared the motion carried. EBved and seconded to adopt RFS. 89-7, AUTHORIZING THE KYOR TO SIGN AN IOWA DEINW OF TPXARfATICN CERTIFICATE OF COMPLETION AD FINAL ACCEPTANCE OF A97ED TT WDRX FOR THE RISE FUNDING Minutes Council Activities January 10, 19e9 Page 4 PROJECT NO: F!9( -3715(1)--9E-52, LOCAL H&q/SM T BLVD.XNZ FYD. Moved seconded to adopt NES. 89-8, AUMIZING THE CITY WNM TO MIKE AN MVMD OFFER TO RFOPSE FOR FNM BSI.OB, ALL IN CONIECTIM WITH THE BEMUI STREET INLERCERM PRIM. Moved and seconded to adopt FES. 89-9, AUHORIZING THE RM TO SICK AN APPLICATION TO THE STATE HISTORICAL SOCIETY OF IDA FOR A CERTIFIED LOCAL GNBNW GRANT. Moved and seconded to adopt FES. 89-10, AUMORIZING TIE M4YOR TO EXECUTE AND THE CITY CLFRK TO CERTIFY A 28E AGREDENT WITH THE CITY OF MM, ICWA. Moved and seconded to adopt RFS. 89-11, CERTIFYING MAID WATER, SEWER MD Off DIES TO MMY AIDITOR FOR allCTICN 1N THE SATE MM AS A POUR TAX. !vied and seconded to adopt RFS. 89-12, CERTIFYING LHPM WEED DATING CRAM TO MIM A IDITOR FOR OOLLECTICN IN TIE SAME PONE R AS A PFOPEIM TAX. Moved and seoorded to adjourn 7:10 p.m. The Mvw declared the motion carried. For a more detailed 6 complete description of Council Activities 8 Dishrrse eats, see Office of City Clens and,firwKe Des/JGM t. sIMI K �z, ✓ ERJOHN MdXfWD� s/M4RIAN K. KNEt, CITY CLEIK Submitted for Publication - 1/19/89. COMPLETE DESCRIPTION OF COUNCIL ACTIVITIES January ID, 1989 Iowa City Council, special mtg., 6:30 p.m. at the Civic Center. Mayor McDonald presiding. Councilmembers present: Ambrisco, Balmer, Courtney, Horowitz, Larson, McDonald. Absent: None. Staff members present: Atkins, Timmins, Karr, Vitosh, Kimble, Donahue, Schmeiser, O'Malley, Seydel. Council minutes tape recorded on Tape 89-3, Side 1, 1 - END. The Mayor presented the Distinguished Budget Presentation Award from the Government Finance Officers Association to Finance Director Rosemary Vitosh and Budget Analyst Terry Kimble. A special Certificate of Recognition was presented to Terry Kimble in recognition of the fifth consecutive year the City Budget had received the award from the Finance Officers. The Mayor proclaimed January 16, 1989, as Martin Luther King, Jr. Recognition Day. Moved by Ambrisco, seconded by Horowitz, that the following items and recommendations in the Consent Calendar be received, or approved, and/or adopted as amended: Approval of Official Actions of the regular meeting of 12/21/88, as published, subject to correction, as recommended by the City Clerk. Minutes of Boards and Commissions: Iowa City Council-Bd of Supervisors - joint meeting 12/15/88; P&R Comm. - 12/14/88; Sr. Center Comm. - 11/21/88; Airport Comm. - 11/17/88; Bd. of Library Trustees - 12/15/88; Bd. of Adjustment - 12/14/88; CCN Comm. - 11/22/88; Animal Shelter Bldg. Committee - 12/15/88. Permit Motions and Resolutions: Approving a Class B Beer Permit for Michael E. Hodge dba Sunshine Laundry Company, 218 E. Market Street. Approving a Class C Beer Permit for Clyde R. Seaton dba Seaton's Cash & Carry Market, 1331 Muscatine Ave. Approving a Class E Beer Permit for QuikTrip Corporation dba QuikTrip #552, 25 W. Burlington. Approving a Class C Beer Permit for Ann Chong dba Chong's Supermarket, 409 S. Gilbert Street. RES. 89-1, Bk. 100, p. 1, ISSUING CIGARETTE PERMITS. Approving a Class C Liquor License for Four Cushions, Inc. dba Dooley's, 18-20 South Clinton Street. Motions: Approving disbursements in the amount of $4,370,467.24 for the period of 11/1 thru 11/30/88, as recommended by the Finance Director, subject to audit. Resolutions: RES. 89-2, Bk. 100, p. 2, ADOPTING SUPPLEMENT NUMBER 38 TO THE CODE OF ORDINANCES OF THE CITY OF IOWA CITY, IOWA. Setting Public Hearings: RES. 89-3, Bk. 100, p. 3, TO SET A PUBLIC HEARING FOR 1/24/89, ON PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATED COST FOR THE CORALVILLE/IOWA CITY ANIMAL SHELTER. Minutes Council Activities January 10, 1989 Page 2 Correspondence: Expressing support for Mayor's Youth Employment Program from: James and Mary McCue; Linda Lawrence. Notice from the Iowa City Finance Department of intent to purchase equipment. Memo from the Civil Service Comm. submitting certified lists of applicants for the following positions: Accountant - Accounting Division; Senior Accountant - Accounting Division; Maintenance Worker I/Traffic - Parking Division; Meter Reader - Water Division; Mass Transit Operator - Public Transit Department. Memo from the Traffic Engr. regarding one-hour parking limit in the tourist area on the south side of Taft Speedway west of Dubuque Street. Applications for the Use of Streets and Public Grounds: John Zielinsky requesting permission to hand out literature on downtown sidewalks, approved. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the motion carried. Moved by Balmer, seconded by Horowitz, to set a public hearing for 1/24/89, on an ordinance to vacate an unimproved portion of First Avenue between J Street and the Iowa Interstate Railway, a 360 foot alley between First and Second Avenues, and a 175 foot alley along the northern right- of-way line of the railroad. The Mayor declared the motion carried unanimously, 6/0, all Councilmembers present. Moved by Horowitz, seconded by Ambrisco, to defer and refer back to the Planning and Zoning Commission an ordinance to amend the Zoning Ordinance to eliminate certain child care providers from the regulations for child care facilities and to extend the hours for home occupations. The Mayor declared the motion carried, 6/0, all Councilmembers present. Moved by Ambrisco, seconded by Balmer, that the ordinance to vacate a portion of excess right-of-way on the south side of U.S. Highway 6, immediately north of Robo Car Wash, be given first vote for passage. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the motion carried. Moved by Courtney, seconded by Ambrisco, that the rule requiring ordinances to be considered and voted on for final passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the second consideration and vote be waived and that ORD. 89- 3400, Bk. 30, p. 1, REZONE PROPERTY LOCATED AT 1476 FIRST AVENUE FOR I-1, GENERAL INDUSTRIAL TO CC -2, COMMUNITY COMMERCIAL (S&M PARTNERS), be voted on for final passage at this time. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the motion carried. Horowitz states she had a number of questions re this request and that she accepts the answers received from staff and is prepared to vote favorably for this ordinance at this time. Moved by Courtney, seconded by Ambrisco, that the ordinance be finally adopted at this time. Affirmative roll vote unanimous, 6/0, all Councilmembers present. The Mayor declared the ordinance adopted. Minutes Council Activities January 10, 1989 Page 3 Moved by Balmer, seconded by Ambrisco, to adopt RES. 89-4, Bk. 100, p. 4, APPROVING THE PRELIMINARY AND FINAL LARGE SCALE RESIDENTIAL DEVELOPMENT (LSRO) PLAN FOR CAPITOL VIEW APARTMENTS, A 56 -UNIT HIGH RISE MULTI -FAMILY RESIDENTIAL DWELLING PROPOSED AT 630 SOUTH CAPITOL STREET. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Courtney, seconded by Balmer, to adopt RES. 89-5, Bk. 100, p. 5, APPROVING, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST, AN AGREEMENT FOR USE OF PUBLIC PROPERTY BY AND BETWEEN THE CITY OF IOWA CITY AND W. BOYD CROSBY AND TERRY P. HUFF, FOR THE PLACEMENT OF AN ELECTRICAL TRANSFORMER ON THE SOUTH CAPITOL STREET RIGHT-OF-WAY (CAPITOL VIEW APARTMENTS). Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. The Mayor noted the recommendation of the P&Z Comm. that the City facilitate resolution of the private sewer problem affecting three properties in the 600 block of South Clinton Street, immediately west of the proposed Capitol View Apartments site, and stated the matter has been resolved. Andrew Knorr, 1155 Downey Drive, appeared re the budget for the SEATS program and extended hours. The City Mgr. stated the request has been incorporated into the 1990 City budget and will be reviewed by Council in the next week. Marjorie Hayden Strait, 1314 Pine Street, appeared to encourage the City to review the proposal for extended Sunday hours for SEATS. Richard Nash, 1803 F Street, appeared and requested Council consider purchase of his property at 1808 F Street due to proposed City construction in the area. Council referred the matter to the City Manager for review. A public hearing was held to receive Citizen Comments on the Program Description for the proposed use of $69,000 in Rental Rehabilitation Grant Funds for 1989. No one appeared. Moved by Ambrisco, seconded by Horowitz, to adopt RES. 89-6, Bk. 100, p. 6, AUTHORIZING THE FILING OF A PROGRAM DESCRIPTION FOR 1989 RENTAL REHABILITATION GRANT FUNDS IN THE AMOUNT OF $69,000 UNDER SECTION 17 OF THE UNITED STATES HOUSING ACT OF 1937, INCLUDING ALL UNDERSTANDINGS AND CERTIFICATIONS CONTAINED THEREIN, AND DESIGNATING THE CITY MANAGER AS AUTHORIZED CHIEF EXECUTIVE OFFICER FOR THE GRANT. In response to Balmer, the City Mgr. reported that the administrative cost for the program is about 10% and that HUD does restrict the City on the charge and amount of funds. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Ambrisco, seconded by Horowitz, to make the following appointments; Dorothy Paul, 2 Glendale Court, appointed to the Human Rights Commission for an unexpired term ending 1/1/90; re -appointed Roberta Patrick, 515 Oakland and George Starr, 730 Brown, to the CCN Commission for three-year terms ending 3/1/92 and re -advertise the remaining vacancy; re -appoint John (Trey) Stevens, 3035 E. Court, to the Broadband Telecomm. Commission for a three-year term ending 3/13/92; re- Minutes Council Activities January 10, 1989 Page 4 appoint John Ockenfels, 1208 Michelle Court, to the Airport Commission for a six-year term ending 3/1/95; approve recommendation of the City of Coralville that Dawn A. Willis be appointed to the Riverfront Commission for an unexpired term ending 12/1/90; approve recommendation of the Johnson County Bd. of Supervisors that Robert S. Wachal be re -appointed to the Riverfront Commission for a term ending 12/1/91. The Mayor declared the motion carried unanimously, 6/0, all Councilmembers present. Larson noted the extraordinary candidate applications received and encouraged citizens who were not selected to re -apply. Councilmember Larson noted that the City would be receiving an additional $80,000 in housing rehabilitation funds and commended staffinembers Pam Barnes, Marianne Milkman, and Don Schmeiser and the rest of the CDBG staff for utilizing City funds so efficiently. Secondly, Larson noted displeasure with a 1/4/89 column by Gary Sanders regarding Council. Moved by Ambrisco, seconded by Courtney, to adopt RES. 89-7, Bk. 100, p. 7, AUTHORIZING THE MAYOR TO SIGN AN IOWA DEPARTMENT OF TRANSPORTATION CERTIFICATE OF COMPLETION AND FINAL ACCEPTANCE OF AGREEMENT WORK FOR THE RISE FUNDING PROJECT NO: RMX-3715(1)--9E-52, LOCAL ROAD/SCOTT BLVD./HEINZ ROAD. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Horowitz, seconded by Ambrisco, to adopt RES. 89-8, Bk. 100, p. 8, AUTHORIZING THE CITY MANAGER TO MAKE AN AMENDED OFFER TO PURCHASE FOR PARCEL BSI.OB, ALL IN CONNECTION WITH THE BENTON STREET INTERCEPTOR PROJECT. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Horowitz, seconded by Courtney, to adopt RES. 89-9, Bk. 100, p. 9, AUTHORIZING THE MAYOR TO SIGN AN APPLICATION TO THE STATE HISTORICAL SOCIETY OF IOWA FOR A CERTIFIED LOCAL GOVERNMENT GRANT. Horowitz noted that the City had worked to receive the status and was happy to see the City applying for these funds. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Balmer, seconded by Horowitz, to adopt RES. 89-10, Bk. 100, p. 10, AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO CERTIFY A 2BE AGREEMENT WITH THE CITY OF SOLON, IOWA, for Section 8 Rental Assistance. Housing Coordinator Lyle Seydel present for discussion. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Horowitz, seconded by Larson, to adopt RES. 89-11, Bk. 100, p. 11, CERTIFYING UNPAID WATER, SEWER AND REFUSE CHARGES TO COUNTY AUDITOR FOR COLLECTION IN THE SAME MANNER AS A PROPERTY TAX. City Clerk noted the revised list distributed. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Ambrisco, seconded by Balmer, to adopt RES. 89-12, Bk. 100, p. 12, CERTIFYING UNPAID WEED CUTTING CHARGES TO COUNTY AUDITOR FOR COLLECTION IN THE SAME MANNER AS A PROPERTY TAX. Affirmative roll call vote unanimous, 6/0, all Councilmembers present. The Mayor declared the resolution adopted. Minutes Council Activities January 10, 1989 Page 5 Moved by Horowitz, sec Mayor declared the motion present. MARIAN K. KARR, CITY CLERK onded by Ambrisco, to adjourn 7:10 p.m. The carried unanimously, 6/0, all Councilmembers JOHN McDONALD, MAYOR COMPLETE DESCRIPTION OF COUNCIL ACTIVITIES January 24, 1989 Iowa City Council, reg. mtg., 7:30 p.m. at the Civic Center. Mayor McDonald presiding. Councilmembers present: Ambrisco, Balmer, Courtney, Horowitz, Kubby, Larson, McDonald. Absent: None. Staffinembers present: Atkins, Helling, Timmins, Karr, Schmeiser, Lundell. Council minutes tape recorded on Tape 89-3, Side 2, 723-1. The Mayor welcomed newly elected Councilmembers Karen Kubby and John Balmer. Moved by Horowitz, seconded by Courtney, that the following items and recommendations in the Consent Calendar be received, or approved, and/or adopted as presented: Approval of Official Actions of the special meeting of 1/10/89, as published, subject to correction, as recommended by the City Clerk. Minutes of Boards and Commissions: Housing Comm. - 12/13/88; Broadband Telecomm. Comm. - 12/14/88, 12/21/88; Historic Preservation Comm. - 12/14/88, 12/22/88; Airport Comm. 12/20/88. Permit Motions: Approving a Class E Beer Permit for QuikTrip Corporation dba QuikTrip #509, 323 E. Burlington. Motions: Accepting Abstract of Election of the Special City Council Election of 1/10/89. Resolutions: RES. 89-13, Bk. 100, P. 13, ACCEPTING THE WORK FOR SANITARY SEWER, STORM SEWER, PAVING AND STORM INTAKE IMPROVEMENTS FOR DEAN OAKES SECOND ADDITION. Setting Public Hearings: To set a public hearing for 3/7/89 for the City of Iowa City's application to the Iowa DOT State Transit Assistance arin saidhearing. Tom setna publicihearingbfora 2/7/89, tonreceivee oticcitizen comments on the extension of the Rental Rehabilitation Program Target Area to include the St. Clements Street Neighborhood. Correspondence: Jean Hood, Chairperson of the Senior Center Comm., regarding the request to the Council for 20 additional hours of Volunteer Coordinator time of the Senior Center. Sandra Eskin for Friends of Historic Preservation, regarding sponsoring a publication, "A Pictorial History of Iowa City." Memo from the Traffic Engr, re: Loading zone at 623 East Jefferson Street; Parking prohibition on the east side of Reno Street at its intersection with Fairchild Street; Parking prohibition on Oakcrest Street at its intersection with George Street; Parking prohibition on Seventh Avenue at Jackson Street. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the motion carried and repeated the public hearings as read. Minutes Council Activities January 24, 1989 Page 2 Moved by Balmer, seconded by Ambrisco, to set a public hearing for 2/7/89, on an ordinance to amend the Zoning Ordinance to make the setback requirements for high-rise dwellings in the RM -145 zone consistent with the Building Code. The Mayor declared the motion carried, 7/0, all Councilmembers present. A public hearing was held on an ordinance to vacate an unimproved portion of First Avenue between J Street and the Iowa Interstate Railway, a 360 foot alley along the northern right-of-way lines of the railroad. No one appeared. Moved by Courtney, seconded by Ambrisco, that the rule requiring ordinances to be considered and voted on for final passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the second consideration and vote be waived and that ORD. 89- 3401, Bk. 30, p. 2, VACATE A PORTION OF EXCESS RIGHT-OF-WAY ON THE SOUTH SIDE OF U.S. HIGHWAY 6, IMMEDIATELY NORTH OF ROBO CAR WASH, be voted on for final passage at this time. Affirmative role call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the motion carried. Moved by Courtney, seconded by Ambrisco, that the ordinance be finally adopted at this time. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the ordinance adopted. Emilie Rubright, Project GREEN, reported on the 22 year history of the program in Iowa City and outlined future events. The Mayor thanked the group for their efforts. A public hearing was held on plans, specifications, form of contract and estimate of cost for the Coralville/Iowa City Animal Shelter. No one appeared. Moved by Ambrisco, seconded by Balmer, to adopt RES. 89-14, Bk. 100, p. 14, APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATE OF COST FOR THE CORALVILLE/IOWA CITY ANIMAL SHELTER, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH ADVERTISEMENT FOR BIDS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS at 10:30 a.m., February 14, 1989, in the City Manager's Conference Room. Horowitz questioned if there were any plans to beautify Ralston Creek at the time this project was done. The City Manager stated that would be a separate project and there was $5,000 appropriated to Mayor's Youth included in the budget recommendations. Kubby suggested that the Riverfront Commission be contacted. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the resolution adopted. The Mayor announced the following vacancies: CCN Comm. - one vacancy for an unexpired term ending 3/1/90 and one vacancy for a three-year term ending 3/1/92; Housing Comm. - three vacancies for three-year terms ending 5/1/92; Mayor's Youth Employment Bd. - two vacancies for three-year terms ending 4/15/92; Historic Preservation Comm. - one vacancy for a Woodlawn District representative for an unexpired term ending 3/29/91. These appointments will be made at the 3/7/89 meeting of the City Council. Larson urged citizens to apply for vacancies and noted the fine applications received for the NPO Board of Directors. Minutes Council Activities January 24, 1989 Page 3 Moved by Balmer, seconded by Horowitz, to make the following appointments: Bill Ambrisco to the Rules Committee and Karen Kubby to CCN Comm.; Airport Comm. recommendation to appoint Pat Foster, 1020 Keokuk Street, to the Airport Zoning Comm. for an unexpired term ending 1/1/94; Bd. of Adjustment recommendation to appoint David Winegarden, 115 Oberlin Street, to the Airport Zoning Bd. for a five-year term ending 2/26/94; appointed David Jepsen, 405 S. Summit, to the Historic Preservation Comm., Summit Street representative for a three-year term ending 3/29/92 and appointed Kevin Hanick, 1830 Friendship, an at -large representative for a three-year term ending 3/29/92; Broadband Telecomm. recommendation to appoint James Larew, Kristin M. Evenson, Daniel L. Daly, Sandra Eskin, and Susan McGuire as regular voting members and Doyle Detroit, Dewey McGuire and John Hess as ex -officio, non-voting members to the Organizational Bd. of Directors. The Mayor declared the motion carried, 7/0, all Councilmembers present. Councilmember Courtney welcomed Councilmember Kubby and noted his displeasure with a recent Iowa City Press -Citizen editorial dealing with the City budget. Horowitz pointed out three bid notices in that night's Press -Citizen directed toward women and minority businesses and stated she was proud the community support shown these businesses. Councilmember Balmer noted the Mayor and he were currently representing Council at the joint human services funding hearings and commended the United Way fund- raising efforts noting they had exceeded their projected goal. Balmer stated unless significant spring rain comes we could be facing another drought and water shortage problems, and urged the City Manager to be prepared to institute conservation measures if necessary. The City Manager stated he hoped should the situation arise that this could be accomplished on a voluntary basis rather than a mandated one. Larson echoed Councilmember Courtney's remarks re the editorial dealing with the City budget and stated he felt the City was in extraordinary hands due to the Finance and City Manager's staff. Kubby thanked everyone for welcoming her to Council and extended an invitation to an open forum and potluck on Sunday, 1/29, from 4-7 p.m. The Mayor also noted displeasure with the editorial City budget. The City Manger reported that 4200 Christmas trees had been recycled by the City and distributed as mulch to the community. Moved by Balmer, seconded by Horowitz, to endorse the 1989 Legislative Priorities of the Iowa Public Transit Association. Councilmembers commended Transit Manager John Lundell on the job being done with the system. The Mayor declared the motion carried unanimously, 7/0, all Councilmembers present. Moved by Balmer, seconded by Horowitz, to adopt RES. 89-15, Bk. 100, p. 15, (1) AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST, RESPECTIVELY, A QUIT CLAIM DEED IN FAVOR OF FOUR SEASON'S CAR WASH, CO. RELINQUISHING AND QUIT -CLAIMING THE CITY'S INTEREST IN A PORTION OF A 10 FOOT WIDE SANITARY SEWER EASEMENT IN OHL'S SUBDIVISION, IN CONSIDERATION OF AND IN EXCHANGE FOR THE CONVEYANCE TO THE CITY OF AN ALTERNATE EASEMENT ROUTE FOR SAID SEWER, AND (2) ACCEPTING THE SEWERS CONSTRUCTED UPON AND IN SAID ALTERNATE EASEMENT ROUTE, ALL IN CONJUNCTION WITH THE DEVELOPMENT OF THE FOUR SEASON'S CAR WASH. Balmer questioned the status of unimproved lots in the area. The City Manager reported that Minutes Council Activities January 24, 1989 Page 4 this corrects the easement problem in the area. The Asst. City Manager reported that a sewer had been placed in the area years ago but easements were not acquired until 1975 and the alignment of Mall Drive further complicated the situation. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Balmer, seconded by Courtney, to adopt RES. 89-16, Bk. 100, p. 16, AMENDING THE AFSCME AND THE ADMINISTRATIVE/EXECUTIVE CLASSIFICATION/COMPENSATION PLANS, deleting a Customer Service Manager from the AFSCME pay plan and adding it to the Administrative/Executive pay plan. In response to Balmer, the City Manager stated the position was in the Finance Department. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Balmer, seconded by Ambrisco, to adopt RES. 89-17, Bk. 100, p. 17, AMENDING THE ADMINISTRATIVE/EXECUTIVE CLASSIFICATION/COMPENSATION PLAN, changing the Assistant City Attorney II from Grade 57 to Grade 62. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Horowitz, seconded by Courtney, to adopt RES. 89-18, Bk. 100, p. 18, AUTHORIZING THE CITY MANAGER TO MAKE AN AMENDED OFFER TO PURCHASE FOR PARCEL NO. SISC.12, ALL IN CONNECTION WITH THE SOUTHEAST INTERCEPTOR/SNYDER CREEK PROJECT. The City Attorney reported that 60 to 70 large power poles stored in the temporary easement area would have to be moved to accommodate sewer construction. This resolution would authorize City payment to Iowa -Illinois for moving. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the resolution adopted. Moved by Courtney, seconded by Horowitz, to adjourn to executive session to discuss as a public employer, strategy regarding collective bargaining with City employee organizations; as such discussion is exempted from the provisions of Chapter 21 according to Chapter 20.17(3); and to discuss strategy with counsel on matters that are presently in litigation or where litigation is imminent where its disclosure would be likely to prejudice or disadvantage the position of the governmental body in that litigation. Affirmative roll call vote unanimous, 7/0, all Councilmembers present. The Mayor declared the motion carried and adjourned to executive session 8:20 p.m. ?NMc/ADO§NAALD, YOR MARIAN K. KARR, CITY CLERK Informal Council Budget Discussion January 16, 1989 Informal Council Budget Discussion: January 16, 1989 at 7:30 PM in the Council Chambers in the Civic Center. Mayor John McDonald presiding. Council Present: Ambrisco, Balmer, Courtney, Horowitz, Kubby, Larson, McDonald. Staff Present: Atkins, Helling, Vitosh, Kimble, Karr, Smith. Tape Recorded: 89-2, Side 2, End -1; 89-4, Side 1, 1 -End, and Side 2, End - 313. Introduction of New Councilmembers: McDonald welcomed Kubby and Balmer, newly elected City of Iowa City Councilmembers. Budget Discussion: Atkins said the proposal is a three-year plan. Atkins raised concerns about the continued intrusion by state and federal government - necessitating local government to assess by state and federal policies. Atkins stated the CIP is reduced and it is hoped that the City's debt position will improve in future years to allow capital projects needed by the City. Vitosh presented a slide presentation of the proposed financial plan - fiscal years 1990-92. Vitosh outlined the objectives of the presentation (Slide: Objectives). Vitosh emphasized the City's Financial Department takes the budget very seriously and that attitude is imparted to the departments by sending out a budget manual at the beginning of the budget process to provide guidelines to the departments in preparing the budget. Vitosh stated the City is preparing a three-year financial plan. Vitosh outlined the benefits of a the three-year financial plan (Slide: Three - Year Financial Plan). Vitosh reviewed General Fund - Expenditures (proposed financial plan - page 15). Larson inquired about personal services/personnel costs. Vitosh said the annual salary increases have not been included in the proposed budget because new contracts with the three bargaining units are currently being negotiated; once collective bargaining agreements are reached, the budgets will be adjusted accordingly; and for the time being, the pure fund balance is sufficient to handle any salary increases that may be approved. Vitosh said the pure fund balance will be reduced once the salary increases are added in. Vitosh noted that there will be a 21% increase in health insurance costs and the City is projecting a 10% increase in health insurance costs in future years. .Z- �, Commodity expenditures. Vitosh stated paper costs have increased over 40% the past two years. Horowitz asked why paper costs have increased and what recycled paper costs. Vitosh said the cost of paper has increased and the City has been unable to purchase recycled paper because of the lack of availability. Transfers. Vitosh said transfers include all transfers from the General Fund to other funds, including transit, airport, and repayments to the reserve funds. Vitosh noted the City will be borrowing from the landfill reserve in FY90 for financing the computer upgrade and animal shelter construction and transfers in FY90 and FY92 include transfers out of the pure fund balance for the Civic Center building project. Horowitz asked about the 30 -year post -closure landfill fee. Atkins said the City's landfill is good until 2014 and the operating estimates were included to demonstrate that by FY92, policies should be set and refuse collection rates would need to increase to finance any programs established by those policies. Contingency. Horowitz asked about the line item for the Community Relations Officer. Atkins explained the FY89 budget will need to be amended to cover the cost of the Community Relations Officer once that person is hired. In response to Balmer, Vitosh stated the City is at the $8.10 limit but the City has not reached the maximum property tax amount. Kubby asked for the definition of the pure fund balance. Vitosh explained the general fund balance is broken into two parts: 1) the pure fund balance - the working capital for the City - what the City needs for cash flow and to cover any emergency expenditures that might come up, and 2) the contingency amount - the amount set aside for unknown budget amendments that occur during the year. Vitosh reviewed the outline for the FY90-92 financial plan projection rates FY91 and FY92 (Slide: FY90-92 Financial Plan Projection Rates FY91 and FY92). Kubby asked what would be done if health insurance costs increased more than the projected 10%. Vitosh said the City would need to adjust the pure fund balance or increase property taxes. Revenues. Kimble explained that at the end of the fiscal year, she analyzes all fees and state revenues the City received in the past fiscal year and prepares projections for the upcoming budget year. Kimble reviewed the comparison of fees and state revenues to total general fund revenues (Slide: Comparison of Fees and State Revenues to Total Fund Revenues). Kimble stated the fines include $5.00 and $25.00 parking fines, magistrate court fines, library fines, and fees include fire contracts, administrative chargebacks, recreational fees, animal licenses, housing inspection fees and building permits. Horowitz stated she would like to see the actual figures between how much it actually costs the City to deliver services and what is actually charged back. Staff and Councilmembers discussed actual costs of services. Kimble noted the City can only change an estimated 25% of the fees listed and those fees are Z analyzed each year. Kimble said only increases in zoning and subdivision fees are proposed for this year. Kimble explained another 25% of those fees and state revenues are revenue sources governed by the State and include liquor and cigarette licenses ($80,000), municipal assistance ($335,000), liquor profits ($295,000), parking fines, magistrate court fines, and bank franchise fees. Transfers. Kimble stated transfers into the general fund are restricted and include road use tax, employee benefit taxes, UDAG funds, and CDBG funds. Ambrisco inquired about the UDAG repayment balance. Atkins said UDAG funds are now being used to fund the City's Economic Development Program staffed by Patt Cain, and ICAD. Atkins stated a hefty reserve will begin to accumulate and he plans to further discuss future uses of that reserve with Council. Property taxes. Kimble reviewed comparison of property tax revenue to general fund revenues (Slide: Comparison of Property Tax Revenue to General Fund Revenues). In response to Larson, Vitosh stated there are minimal federal revenues coming in to the General Fund. Kimble reviewed real property values (Slide: Total Real Property Evaluation 1977-1988, (January 1)). Balmer asked how much urban renewal contributed to the real property valuations. Kimble explained the City Assessor is mandated to do re -valuations - equalizing property values to market sales prices. Kimble explained how the base property taxes is projected (Slide: Comparative Analysis Percentage of Real and Economic Growth) and Taxable Valuations). Kimble noted that the County Auditor subtracts military property exemptions, only residential properties have a rollback, and the County Auditor certifies total taxable valuations. Kimble explained that the increases made to businesses' property to increase jobs through the Jobs Training Program will not be added to the tax rolls until their debt has been paid. Vitosh explained that when bonds are sold to finance training programs handled by community colleges, the amount of property taxes that would normally be paid are diverted to pay the debt service on the bonds. Vitosh said there are four to five local industries that are participating in the TIF program. Kimble presented information regarding property taxes for an average residence (Slides: City Property Taxes for Average Residential Properties and Comparison of Change in Property Taxes for an Average Residence). Larson asked if the proposed property tax increase would increase the average homeowner's taxes by $23. Kimble said yes, under the scenario presented. Vitosh noted revenues follow the projected expenditure increases in FY91 - 4% and FY92 - 6%. Larson asked what the median residential valuation is. Kimble said that information was not available. Kimble explained the City Assessor has the total valuation of residences and the total number of residences. Atkins stated the average new single-family home built in Iowa City costs $108,000. Kimble presented information relating to the total tax revenues (Slide: Property Tax). Horowitz asked why there isn't tort liability in FY89, FY90, FY91, and FY92. Vitosh explained when the City decided to change its insurance program to a self-insurance program, it was necessary to set up a loss reserve. Vitosh said money was set aside in FY89 under the general levy - where money would not be restricted for expenditures. In r-� response to Horowitz, Vitosh said if the City would need to settle a large lawsuit, she would recommend the City sell bonds and pay the damage award over a number of years. Vitosh said the City currently has coverage up to $2 million and the City's loss reserve is projected to have a balance of $600,000 by FY91 and $1 million by FY92. Atkins stated that the City works hard at its risk management. Horowitz asked what the City's participation in haz mat (hazardous materials) does to the City's risk management. Atkins said there is a liability but it is difficult to predict the City's exposure. Kimble noted that the Civic Center expansion project is being funded from the general levy instead of selling bonds. In response to Larson, Vitosh said once the City reaches the $8.10 maximum, the City can levy under employee benefit trust funds and the City does have some flexibility. Vitosh said the City can also levy under tort liability for insurance costs. Atkins said staff can calculate information regarding the tax margin. Larson asked why transfers are not done first before property tax increases are made. Vitosh stated that the state will not let cities transfer to the employee benefit trust until the $8.10 maximum general levy is reached. Discussion followed regarding the use of a loss reserve if the insurance market softened. Vitosh said she would be hesitant to dismantle the loss reserve. Council and staffinembers discussed options available once the City meets the maximum tax levy amounts. Kimble presented a chart showing how much of the general levy is used for tort liability (Slide: General Levy). Vitosh presented information relating to major sources of revenues and expenditures (Slide: General Fund FY90 Budget). In response to Kubby, Vitosh said that the only federal revenue the City receives into the general fund is the portion of CDBG monies that are allocated for aid to agencies. Vitosh presented information relating to the pure fund balance (Slide: General Fund - Pure Fund Balance). Vitosh said the pure fund balance is holding relatively steady at about 14% of expenditures and the pure fund balance is established by starting with the beginning balance, adding receipts, subtracting expenditures, and then subtracting out reserve balances. Vitosh said an indication of how well the City is able to generate resources to pay annual expenditures is to look at how annual revenues compare with annual expenditures. In response to Horowitz, Vitosh said the pure fund balance carries from one year to the next. Balmer noted the large balance is maintained in the pure fund balance because of the timing of collection of tax revenues. Vitosh said the pure fund balance is needed to cover cash flow in the first quarter of the year (Slide: Comparison of Pure Fund Balance to Shortfall and Receipts for the First Quarter). Courtney raised concerns about the size of the pure fund balance. Vitosh said the pure fund balance needs to be at a certain level so the City would be able to make a large emergency expenditure that was not budgeted for. Courtney said the City does not need that high a pure fund balance. Vitosh said the pure fund balance can also be used for special capital projects such as the Civic Center expansion project. Ambrisco asked what is the City's CPA's opinion regarding the size of the pure fund balance. Vitosh said the City's CPA does not advise us on the 1 a. size of the pure fund balance, however, Moody's, the bond rating firm, always looks at the pure fund balance. Councilmembers and staff discussed size of the pure fund balance. Atkins stated the City is working towards a pay-as-you-go policy. McDonald stated that Council would like to discuss the pure fund balance amount again before final budget decisions are made. Kubby inquired about the recreation facility reserve. Atkins said that the recreation facility has been eliminated. Money is still being set aside in the Parkland Acquisition Fund. Debt Financing Vitosh presented information relating to debt financing (Slides: City of Iowa City General Long -Term Debt, Debt Service - Financial Plan Summary, G.O. Debt Paid from Property Taxes Proposed Bond Issues Through FY92, and Debt Margin). Vitosh noted the City's capital outlay, principal and interest on bond payments, is remaining relatively stable throughout the three proposed years. Vitosh said it is proposed that no bonds be issued in FY93 and $2 million of bonds issued in FY94. In response to Ambrisco, Vitosh stated no projects have been projected for FY94 but staff just projected what a reasonable level of debt financing should be. Atkins said debt proposals will build flexibility in the budget in future years. Vitosh stated legal guidelines and the City's internal guidelines are considered when structuring debt. In response to Council, Vitosh explained that when the City issues debt, the Council certifies the amount of debt to the County Auditor and that then sets the amount of debt the City can levy taxes for. Vitosh explained the City maintains an internal fiscal policy that places the maximum amount of debt service at 25% of the total tax levy (Slide: Ceiling on Debt Service). Vitosh presented a list of projects planned to be funded from a $2.5 million bond issue in FY90 (Slide: G.O. Bond Issue FY90 (July, 1989)). Council and staff discussed the projects listed. In response to Larson, Vitosh said all bridge projects have been funded out of the G.O. bonds. Vitosh noted $2.1 million in bonds were sold in FY85 and FY86 for the Benton Street bridge widening project. Because the City is limited in how long it can take to spend the money, those funds were reallocated to other projects, and the City is therefore selling bonds again in FY90 and FY91 for the Benton Street project. The funds were reallocated to the water storage tank project and to the Washington and Benton Street area storm sewer projects. In response to Ambrisco, Atkins said the Summit Street bridge project appeared in the FY92 CIP because it is high on the state's bridge funding program. Ambrisco asked if the railroad could share the cost of that project. Vitosh presented the list of projects planned to be funded with FY91 and FY92 bonds issues (Slides: G.O. Bond Issue FY91 (July 1990), and G.O. Bond Issue FY92 (July 1991)). Vitosh presented a proposed funding plan for the Civic Center expansion project (Slide: Civic Center Building Plan Proposed Funding). McDonald inquired about the certificate of participation. Vitosh explained the certificates of participation allowed the City to set up financing in a lease -purchase format, the City is allowed to enter into a lease purchase agreement without voter approval, and the financing is then paid out of R the general levy versus the debt service tax levy. Larson stated using certificate of'participation looks funny in that it is a means of funding the Civic Center project without voter approval. Councilmembers and staff discussed the certificates of participation. Vitosh presented information relating to the employee benefit trust (Slides: Employee Benefit Trust - Financial Plan Summary and Employee Benefits Trust - Summary of Expenditures). Vitosh said this fund was previously known as the Trust and Agency fund. Horowitz asked if those monies are invested. Vitosh said the money is not available to be invested because these are actual annual costs the City pays out. Vitosh said the police and fire pensions are not in the budget. Kubby inquired about the police and fire retirement contribution rate. Vitosh stated an actuary comes in and does an actuary study of police and fire funds and then sets the rates. Meeting Schedule: Council agreed to continue the budget discussions on January 31, 1989, at 6:30 p.m. r Meeting adjourned at 8:45 p.m. Informal Council Discussion January 23, 1989 Informal Council discussion, January 23, 1989, 6300 P.M. Councilmembers present: Larson, Kubby, Courtney, McDonald, Balmer, Horowitz. Absent: Ambrisco. Staffinembers present: Atkins, Helling, Timmins, Karr, Smith, Schmeiser, Vitosh, Meisel, Schmadeke, Kimble. Tape-recording: 89-4, Side 2, 313-1; 89-5, Sides 162; 89-6, Sides 182. COUNCIL TIME/AGENDA: Reel 89-4, Side 2 Helling invited Councilmembers to visit with a group of foreign visitors on February 9, 1989, 2:30-4:00 p.m. 2. Helling referred Councilmembers to his 1/20/89 memo regarding creation of Organizational Board of Directors for private non-profit organization (item #Be). Council discussed the recommendations from the Broadband Telecommunications Commission to appoint the Organizational Board of Directors for the non-profit organization. In response to questions from Councilmembers, Helling said by-laws have not been written yet, and appointments to the Organizational Board of Directors was handled by consensus. Helling stated the decision regarding the number of Board of Director positions was based on trying to come up with a manageable group that could get things done. Kubby and Larson raised concerns about the number of people appointed to the Organizational Board of Directors. Helling said the Organizational Board of Directors will decide the number of permanent Board of Directors that will be appointed. Kubby suggested that letters be sent to persons not appointed to the Organizational Board of Directors explaining that they will be able to apply to the permanent Board of Directors. Councilmembers agreed with the Broadband Telecommunications recommendation regarding appointments to the Organizational Board of Directors. E-911 EMERGENCY SYSTEM AND JOINT COMMUNICATIONS FACILITY: 89-4, Side 2 Dick Myers, Johnson County Board of Supervisors, presented information about the progress of the joint communication plan and the E-911 emergency system. Myers stated the Joint Communications Ad Hoc Committee voted to ask the Board of Supervisors and the Iowa City Council to jointly fund the hiring of a consultant to study the joint communications issue - should Johnson County, Iowa City, surrounding communities, the University of Iowa, and emergency services get involved in a joint communications set- up. Myers said it would take an estimated 30 to 60 days to screen consultants to decide who should be hired and additional information regarding consultant costs will be presented to the City Council. Myers explained the Johnson County Ad Hoc Committee passed a motion outlining what the consultant should do, including: recommend location, address who the people should work for, methods of financing, purchase of public safety answering point, and the scope of the equipment. Myers said the Johnson County Board of Supervisors has already approved funding one-half the cost for a consultant. 13 OF PRECEDING DOCUMENT Informal Council Discussion January 23, 1989 Informal Council discussion, January 23, 1989, 6300 P.M. Councilmembers present: Larson, Kubby, Courtney, McDonald, Balmer, Horowitz. Absent: Ambrisco. Staffinembers present: Atkins, Helling, Timmins, Karr, Smith, Schmeiser, Vitosh, Meisel, Schmadeke, Kimble. Tape-recording: 89-4, Side 2, 313-1; 89-5, Sides 1&2; 89-6, Sides 1&2. COUNCIL TIME/AGENDA: Reel 89-4, Side 2 Helling invited Councilmembers to visit with a group of foreign visitors on February 9, 1989, 2:30-4:00 p.m. 2. Helling referred Councilmembers to his 1/20/89 memo regarding creation of Organizational Board of Directors for private non-profit organization (item #Be). Council discussed the recommendations from the Broadband Telecommunications Commission to appoint the Organizational Board of Directors for the non-profit organization. In response to questions from Councilmembers, Helling said by-laws have not been written yet, and appointments to the Organizational Board of Directors was handled by consensus. Helling stated the decision regarding the number of Board of Director positions was based on trying to come up with a manageable group that could get things done. Kubby and Larson raised concerns about the number of people appointed to the Organizational Board of Directors. Helling said the Organizational Board of Directors will decide the number of permanent Board of Directors that will be appointed. Kubby suggested that letters be sent to persons not appointed to the Organizational Board of Directors explaining that they will be able to apply to the permanent Board of Directors. Councilmembers agreed with the Broadband Telecommunications recommendation regarding appointments to the Organizational Board of Directors. E-911 EMERGENCY SYSTEM AND JOINT COMMUNICATIONS FACILITY: 89-4, Side 2 Dick Myers, Johnson County Board of Supervisors, presented information about the progress of the joint communication plan and the E-911 emergency system. Myers stated the Joint Communications Ad Hoc Committee voted to ask the Board of Supervisors and the Iowa City Council to jointly fund the hiring of a consultant to study the joint communications issue - should Johnson County, Iowa City, surrounding communities, the University of Iowa, and emergency services get involved in a joint communications set- up. Myers said it would take an estimated 30 to 60 days to screen consultants to decide who should be hired and additional information regarding consultant costs will be presented to the City Council. Myers explained the Johnson County Ad Hoc Committee passed a motion outlining what the consultant should do, including: recommend location, address who the people should work for, methods of financing, purchase of public safety answering point, and the scope of the equipment. Myers said the Johnson County Board of Supervisors has already approved funding one-half the cost for a consultant. .I 3 Minutes Informal Council Discussion January 23, 1989 Page 2 Myers stated in addition to the Joint Communications Ad Hoc Committee, another committee was formed by the Board of Supervisors to study the E- 911 emergency system. Myers stated it is hoped the E-911 emergency system can be dove -tailed into the joint communications plan. Myers said if the E-911 emergency system can be dove -tailed into the joint communications plan, the budget for the E-911 equipment will pay for the joint communications facility, property tax monies will be needed to initially finance the joint communications facilities, the E-911 emergency system bill calls for a 25 cent per month fee to be levied against every telephone line in the County, and the consultant fee can be paid for out of the 25 cent fee. Myers stated if each governmental agency purchased a public safety answering point, it would cost one-quarter million dollars apiece. Myers and Councilmembers discussed the joint communications plan and the E-911 emergency system. Myers noted there are 12 telephone companies and 45,000 telephone lines in Johnson County and the 25 cent fee would yield $12,500 in revenue per month. Atkins said Fire Chief Donner agrees with the recommendation to hire a consultant to study a joint communications plan, the study will provide recommendations regarding the City's hardware needs, and a study is needed to provide the proper analysis framework to cause the debate to occur. Larson asked if the joint communications plan will be completed prior to the police station remodeling project or hiring of a Police Chief. Atkins said probably not, but the police station design allows for flexibility. Courtney stated the City's volumes of calls are greater than the County's. Myers noted the final plan for the E-911 emergency system has to be approved by voters at a general election or by mail ballot. Council agreed to fund one-half of the cost of the consultant to study a joint communications plan. PLANNING 6 ZONING MATTERS: Reel 89-5, Side 1 A. 5ETTING A PUBLIC HEARING FOR FEBRUARY 7. 1989. ON AN ORDINANCF TO B. Schmeiser stated the Planning 6 Zoning Commission deferred action on this item until February 2, 1989. No Council comment. ORDINANCE TO VACATE A PORTION OF EXCESS RIGHT -OF -NAY ON THE SOUTH SIDE OF U.S. HIGHWAY 6 IMMEDIATELY NORTH OF ROBO CAR WASH (V-8807) No Council comment. -r-3 Minutes Informal Council Discussion January 23, 1989 Page 3 SENIOR CENTER COMMISSION FIVE-YEAR PLAN: Reel 89-5, Side 1 Jean Hood, Senior Center Commission Chairperson introduced Ruth Wagner, Bud Gode, and Duane Means, Senior Center Commission members and Geri Hall and Bill Coen, past Senior Center Commission members. Hood noted Councilmembers received the Senior Center Commission Five -Year Goal 1989- 1993 Report. An overhead projector was used by the Senior Center Commission members and Senior Center Director Bette Meisel to present information to Councilmembers. Meisel reviewed the format of the Senior Center Commission Five -Year Goal 1989-1993 Report. Meisel said the Senior Center Commission initiated the goal -setting process five years ago, using the National Council on Aging evaluation form, questionnaires to 15 communities, and interviews of Iowa City citizens. Meisel explained the Senior Center Commission looked at the consensus of what people felt was right for the Senior Center in Iowa City and reviewed information relating to the needs not being met and changes in population of older people in Iowa City. Senior Center Commission members reviewed the goals of the Senior Center as outlined in the Senior Center Commission Five -Year Goal 1989-1993 Report. Ruth Wagner presented information about additional staff volunteers, and increased involvement of the Senior Center Commission. Bill Coen presented information about improved parking and gift fund development. Bud Gode presented information about health suite and computer use. In response to questions, Coen stated 3,000 parking permits have been issued to use the Senior Center parking lot and 6,000 people sign in per month at the Senior Center. In response to Courtney, Meisel stated the Senior Center has two Mackintosh computers. McDonald commended Senior Center Commission members for the work done to prepare the Senior Center Five -Year Goals. Hood urged Councilmembers to consider supporting the Senior Center Commission's request for an additional 20 hour staff position. In response to Kubby, Hood explained the additional 20 hour position would be used to increase the Volunteer Specialist to full-time. Kubby requested information regarding future trends and the number of elderly people in Iowa City who use the Senior Center. Horowitz inquired about the Senior Center outreach plans and user fees. Hood stated outreach plans include a radio program and a television program on cable TV. Atkins stated a cable program, such as the cable presentation concerning budget issues being produced by the Finance Department, could be produced for the Senior Center. In response to Larson, Hood said the Senior Center parking lot is full during Congregate Meal time. Courtney inquired about the parking lot permit fee. Larson noted the Senior Center parking lot was not included in the City's parking study. FRIENDS OF HISTORIC PRESERVATION PRESENTATION: Sandra Eskin distributed the table of contents of Gerald Mansheim A Pictorial History of Iowa Citv, the cost and potential profits from the sale of the book, and a letter from the author. The proposed five sponsors would each contribute $12,500 and have the money refunded if the book sold about 3,000 copies. Eskin said that Irving Weber approved the book and historical publishing company, Downing Publishers of Virginia 1_3 Minutes Informal Council Discussion January 23, 1989 Page 4 will print the book. Eskin said a marketing campaign will attempt to pre - sell the book to promote the sellers in Iowa City's sesquicentennial celebration. Downing will help design posters and brochures to help market the book. The Chamber of Commerce will also market the book. Eskin said sponsors will meet to decide on the layout, logos and list price. In response to Balmer, Atkins said the City might be asked to provide services for the sesquicentennial celebration. The Council agreed to partially sponsor the book. UTILITY AGREEMENT: Reel 89-5, Side 1 Timmins provided a handout of the University's cable TV revenues. Timmins stated that from their figures, there would be a franchise fee of an estimated $5,000 or less. Timmins stated the current draft did not include cable TV. McDonald said that some negotiations will have to take place. Timmins noted that the proposal is reciprocal with provisions applying equally to both sides. Timmins noted that no one from the University has seen the proposed agreement. In response to Larson, Timmins said the franchise fee is in return for use of the streets for non-essential services. Timmins noted that there are several potential ways to collect the cable fee, but there are no fees currently being collected. Timmins stated that if cable TV is left out of the agreement, a separate addendum could be added later. Several Councilmembers raised the issue of whether the University owes a retail fee, Heritage owes a wholesale fee or both owe a fee. In response to Horowitz, Timmins stated the University would prefer to have only a franchise agreement to run in perpetuity. Kubby suggested that a 15 year agreement like the Iowa - Illinois agreement would be a comfortable time span. Timmins stated that the City has suggested a 10 or 20 year agreement to the University, but the University does not want to have long-term improvements like steam or chiller lines up for grabs. In response to Kubby, Timmins stated that for such public improvements, 60 years is not all that long. In response to Horowitz, Schmadeke stated that he doesn't have a problem with a 50 to 60 year agreement. McDonald stated the University needs a chance to respond to the City's proposed agreement. Atkins said he feels that Timmins' agreement is very thorough, but the University would probably prefer a case-by-case agreement for utilities in city streets. In response to Horowitz, Timmins said that the proposed agreement does not cover parking ramps. Horowitz said that she does not agree with every element of the plan. McDonald said the cable TV issue will be addressed separately. He said that one of the reasons the agreement is back on the table is because of the problem on Madison Street. Timmins said that the University needs to power -up in late March or early April. Timmins suggested a temporary license for about a year if no agreement can be reached. In response to Horowitz, Timmins stated the City has the legal right to license someone to use its streets, but the University might not believe that they have the corresponding authority to enter into such an agreement. Timmins stated the Attorney General's Office might be able to tell the City whether the University can indeed enter into such an agreement. 1=3 Minutes Informal Council Discussion January 23, 1989 Page 5 Item 15 - Snyder Creek. Timmins stated that the power poles in the easement right-of-way need to be moved, but the appraiser didn't know that when the original appraisal was done so the City needs to pay Iowa - Illinois an additional $3,000 to move the poles. Item 12 - Four Seasons Car Wash. Timmins stated that because the City did not have an exclusive easement for its sewer, the City will have to bear the $22,000 cost for building a new sewer. COUNCIL TIME/AGENDA CONTINUED: Reel 88-5, Side 2 3. McDonald noted that after Tuesday's formal Council meeting a quick Executive Session on collective bargaining and litigation is scheduled. 4. McDonald stated Councilmembers interested in attending the Iowa Legislation Session sponsored by the League of Municipalities on February 15 should contact Lorraine. McDonald reminded Councilmembers of the National League of Municipalities meeting in Washington on March 11-14, 1989. In response to McDonald, Atkins said the parking report will be discussed at next week's informal session. Larson requested information regarding the need for parking ramps located at the north end of Iowa City and at the Senior Center. APPOINTMENTS: Historic Preservation Commission: COUNCIL BUDGET DISCUSSION: Reel 89-6, Side 1 David Jepsen (Summit Street rep.) Ken Hanick (At -large rep.) Vitosh presented information regarding the proposed financial plan FY90- 92, including receipts and expenditure trends, fund balances and multi- year planning. Vitosh noted on Tuesday, January 31, 1989, Atkins will present budget highlights. Vitosh stated the Risk Management Loss Reserve was set up in conjunction with the City's insurance program (Slide: Risk Management Loss Reserve Financial Plan Summary). Vitosh said the City self -insures for the first $50,000 for each loss up to the aggregate amount each year of $475,000. The losses are paid from this loss reserve. Vitosh said monies are transferred from the General Fund and from each of the non -general funds into the Loss Reserve to fund any payments. Vitosh said it was decided the Loss Reserve balance should be established at approximately $1 million. Vitosh presented information regarding the Loss Reserve balances. Vitosh explained the transfers from the General Fund in FY89, FY90, and FY91 were reduced by $200,000 in each of those years and those monies are being used to fund the Civic Center Building Program. Vitosh recommended that an actuary be retained to evaluate the City's Loss T-3 Minutes Informal Council Discussion January 23, 1989 Page 6 Reserve Fund and offer guidance regarding what the balance should be in that fund. Vitosh said money going into the Loss Reserve Fund from the General Fund is being funded from the general tax levy instead of tort liability levy so that if, in the future, there is a larger balance than what is needed in that fund, the money can be used for another use. In response to Larson, Vitosh said there is no maximum levy for tort liability because of the restriction to its uses. In response to Kubby, Vitosh reviewed transfers into the Loss Reserve Fund. Vitosh said the City uses the majority of road tax revenues to fund Streets and Traffic Engineering (Slide: Road Use Tax - Financial Plan Summary). Vitosh presented information regarding the Road Use Tax. Vitosh noted that the State implemented a two cents per gallon fuel tax effective April 1988 and an additional two cents per gallon fuel tax effective January 1989. Vitosh said the Road Use Tax balance can be used for capital projects such as the reconstruction of Kirkwood Avenue, a $1.1 million project. In response to Balmer, Atkins said $200,000 has been budgeted to renew the City's Asphalt Overlay Program. Vitosh reviewed the Road Use Tax receipts and expenditures as outlined (Slide: Road Use Tax Financial Plan Summary). Vitosh recommended that an ending balance be used to fund future capital projects. Atkins said the money could only be used for transportation related projects. In response to Larson, Atkins said Streets and Traffic Engineering operations are almost 10D% funded with Road Use Tax monies. Horowitz asked if this money could be used to install stormwater drainage systems on the streets in areas such as Fairmeadows. Vitosh said money could not be used for stormwater management. Horowitz said stormwater management needs to be scheduled for a separate discussion. Vitosh presented information about the Enterprise Funds (Slides: Parking Operations - Financial Plan Summary, Parking Renewal A Improvement Reserve - Financial Plan Summary). Vitosh said a $5.00 per month rate increase is proposed for the monthly parking permits, effective in FY90 and FY92. Vitosh said transfers to the Revenue Fund are going to be increased to set aside money for future parking facility construction. Vitosh said the parking revenue bond resolution requires the City to set aside $60,000 each year into the Parking Renewal 6 Improvement Reserve. In response to Larson, Vitosh said no new facilities are planned, but it is anticipated that sometime in the future, additional facilities will be needed. In response to Balmer, Vitosh said receipts are adequately covering the City's bond indebtedness and debt coverage requirements. McDonald asked if the City has been able to pay the parking reserve back any of the $450,000 transferred out of that fund into Transit in FY86 b 87. Vitosh said no. Larson asked where overtime parking fines are placed. Vitosh said the money is put into parking operations as revenue; however, if at the end of the fiscal year if Parking does not need that revenue, it is transferred into the General Fund. Horowitz asked if there was any correlation of increased transit use when parking decreased. Vitosh said no. It appeared that when parking usage decreased that many persons were using University parking facilities. Vitosh presented information regarding the Pollution Control Fund (Slides: Pollution Control Operations - Financial Plan Summary, and Pollution Control Renewal 6 Improvement Reserve Financial Plan Summary). Vitosh said expenditures are added in FY90 and FY91 for the increased operating 2 -3 Minutes Informal Council Discussion January 23, 1989 Page 7 costs of the south plant and the renovated north plant. Vitosh said the budget includes transfers out to the sewer plant projects, $1 million in FY89, $500,000 in FY90, and $300,000 in FY91. Kubby inquired about the leachate costs. Vitosh said costs are based on projections received from Public Works and a large increase in the flow of leachate is not anticipated. Vitosh said the bond resolution requires the City to set up the Pollution Control Renewal & Improvement Reserve. Vitosh explained that because there was a large balance in the operating fund, this reserve was funded completely up to the maximum required balance of $2 million. Therefore, the City does not have to make transfers into the reserve on an annual basis. Vitosh said the fund could be used for any capital improvement project for Pollution Control or capital needs. In response to Horowitz, Vitosh said the City cannot borrow from the fund, but the balance can be used for capital expenditures. Vitosh said two rate increases are projected in the next three years, two percent each in January 1990 and January 1992 (Slides: Water Operations - Financial Plan Summary). Balmer stated rate increases should be kept to a minimum. Councilmembers and staff discussed projected balances. Atkins said with the three-year planning process, some of the reserves are being used up, but the City still maintains a reasonable balance. Vitosh said rates are at a level that the City can pay -as -it -goes for capital improvements. Vitosh said the Water Depreciation Extension & Improvement Reserve is a reserve that was set up when the City had water revenue bonds (the bonds are fully funded) and therefore the City is no longer legally required to have this fund. (Slide: Water Depreciation, Extension Improvement Reserve - Financial Plan Summary). Vitosh said the City has chosen to maintain this reserve to set aside monies for capital projects. Vitosh said in FY89, $325,000 funds the computer project, FY90 $110,000 finances the water storage plant, and FY92 $150,000 provides funding for water mains in Madison and Washington streets. Horowitz asked if any funds will pay for detecting and digging up underground storage tanks. Atkins said no. Vitosh stated rates proposed for refuse collection will increase from the current rate of $5.25 per month to $5.50 per month January FY90 and to $7.50 in FY92. (Slides: Refuse Collection Operations - Financial Plan Summary). In response to Horowitz, Atkins said by FY92 the City will have made decisions regarding alternative waste disposal. Vitosh said rate increases are projected in each fiscal year for landfill: FY89 $9.25 per ton, FY90 $10.00 per ton, FY91 $10.80 per ton, FY92 $13.40 per tan (Slides: Landfill Operations - Financial Plan Summary, Landfill Replacement Reserve - Financial Plan Summary, and Solid Waste Surcharge Reserve - Financial Plan Summary). Vitosh said in FY89, the large amount in capital outlay is for excavation at the landfill and transfers out are going into the Landfill Replacement Reserve. Vitosh said the Solid Waste Surcharge Fund is the 50 cents per ton the City is allowed to keep of the State landfill fee. Vitosh said expenditures are shown in FY89 $25,000 for the Regional Facility Study, FY90 $80,000 for the Groundwater Study and Monitoring Well Recommendations, and FY91 $40,000 for the Comprehensive Plan preparation and submittal. Z 3 Minutes Informal Council Discussion January 23, 1989 Page 8 Vitosh presented information as outlined in the Airport Operations (Slides: Airport Operations - Financial Plan Summary, Airport Capital Improvement Reserve - Financial Plan Summary). Vitosh said Transit expenditures are increasing with inflationary rates and fare revenues are decreasing each year. Vitosh noted a projected decrease in fare revenues by 5% in FY89 and a 3% decrease in the following years (Slides: Transit Operations - Financial Plan Summary, Transit Replacement Reserve - Financial Plan Summary, and Transit Revenues) Vitosh presented Transit expenditures. In response to Courtney, Vitosh said when the City purchases a new brand of buses, a new parts inventory needs to be built up. Atkins noted that the President's budget proposal for capital assistance lowers Federal funding to 50% of costs as opposed to the current funding level of 80%. Vitosh stated fare revenues are decreasing each year as ridership drops off, the Transit tax levy is remaining constant, and the property tax monies or subsidy from the General Fund are continuing to increase. Balmer said Council needs to discuss Transit funding. Vitosh said Broadband Telecommunications is being set up as an Enterprise Fund because revenues have increased in that fund and it is funded 100% by its own revenues (Slide: Broadband Telecommunications - Financial Plan Summary). In response to McDonald, Atkins said the entire fee goes back into the fund. Helling said an ordinance adopted in 1979 earmarks those funds. Vitosh presented slides showing All Funds FY90 Budget, City of Iowa City Impact of Inflation on the Budget, and Number of Authorized Positions by Department. The meeting adjourned at 9:55 p.m.