HomeMy WebLinkAbout1989-07-11 Info Packet■
July 3, 1989
Mr. Tom Riley
Tom Riley Law Firm
1220 Highway 6 West
Iowa City, Iowa 52246
Dear Mr. Riley:
CITY OF IOWA CITY
This is in reply to your inquiry regarding the use of a London doubledecker
bus on Iowa City streets. There are no ordinances which would affect the
use of the bus. However, you should be aware of the problem you might'
encounter with railroad bridge overpasses. Certainly the Iowa Avenue
overpass is too low. The overpasses should be marked with height restric-
tions, and you should check these before trying to drive through.
You do not state if you will be charging a fee for the pick up and delivery
of pub patrons. If charges are made, it will be necessary that you obtain
a taxi license. You may contact the City Clerk in the Civic Center regard-
ing this matter.
Sincerely yours,
ep en tkin
City MIjr
cc: City Council+
City Clerk
CIVIC CENTER •410 EAST WASH INOTON STA FET • IOWA CITY
IOWA SS7/0 1 (110) 316.5000 r
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July 3, 1989
Mr. Tom Riley
Tom Riley Law Firm
1220 Highway 6 West
Iowa City, Iowa 52246
Dear Mr. Riley:
CITY OF IOWA CITY
This is in reply to your inquiry regarding the use of a London doubledecker
bus on Iowa City streets. There are no ordinances which would affect the
use of the bus. However, you should be aware of the problem you might'
encounter with railroad bridge overpasses. Certainly the Iowa Avenue
overpass is too low. The overpasses should be marked with height restric-
tions, and you should check these before trying to drive through.
You do not state if you will be charging a fee for the pick up and delivery
of pub patrons. If charges are made, it will be necessary that you obtain
a taxi license. You may contact the City Clerk in the Civic Center regard-
ing this matter.
Sincerely yours,
ep en tkin
City MIjr
cc: City Council+
City Clerk
CIVIC CENTER •410 EAST WASH INOTON STA FET • IOWA CITY
IOWA SS7/0 1 (110) 316.5000 r
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TOM RILEY LAW FIRM,
a professional corporation RECEIVED JUN 30:1989 -
Cedar Rapids and Iowa City, Iowa
Tom Riley
Cedar Rapids
Peter C. Raley East Side Office
T. Todd Becker 4040 First Avenue NE
Mark E IJabo Telephone (319) 363-4040
Hugh G Albrecht . West Side Office
Sara R Brown o 3401 William Blvd SW.
Charles C. Brown Jr. Telephone (319) 390.3900
Thomas J. Currie Mailing address lot CR offices
James E Bennett P.O. Box 998
Wyche Wiley Cedar Rapids Iowa 52406.0998
Gerald J. Kucera June 29, 1989
David lows city,
MaJ.. Diafaz' 1220 Highw 6 West
Martin A 1> ❑ Iowa City. Iowa 52246
Telephone (319)351.4996
Honorable Mayor and
City Council of Iowa City
City Hall Civic Center
410 East Washington
Iowa City IA 52240
Dear Mayor and Councilmen:
My client, the Wig & Pen Pub, Incorporated, has purchased a
London doubledecker bus for promotional purposes. As you know, '
the pub has an authentic London telephone box on its premises.
The bus arrived today and it is contemplated that it will be
eventually used to pick up and return pub patrons.
I have checked with your transit department and the bus appears
to comply with height and other limitations. We have been
warned to not try to squeeze under the Iowa Avenue Bridge.
We believe the bus will add some additional zest to an already
colorful city while, at the same time, reduce the potential
risk of accidents by those who otherwise might need a
designated driver.
If there are any special ordinances that would affect the
operation of the bus on the streets of Iowa City, would you
please have someone contact me or, if.I am unavilable, my
receptionist, Donna Hardin, at our Iowa City office. In the
meantime, my client wanted you to know about its plans.
sp ctfully)
TR/pr
cc: Donna Hardin
Tom Riley
• Also licensed to practice law In Minnesota
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TOM RILEY LAW FIRM,
a professional corporation RECEIVED JUN 30:1989 -
Cedar Rapids and Iowa City, Iowa
Tom Riley
Cedar Rapids
Peter C. Raley East Side Office
T. Todd Becker 4040 First Avenue NE
Mark E IJabo Telephone (319) 363-4040
Hugh G Albrecht . West Side Office
Sara R Brown o 3401 William Blvd SW.
Charles C. Brown Jr. Telephone (319) 390.3900
Thomas J. Currie Mailing address lot CR offices
James E Bennett P.O. Box 998
Wyche Wiley Cedar Rapids Iowa 52406.0998
Gerald J. Kucera June 29, 1989
David lows city,
MaJ.. Diafaz' 1220 Highw 6 West
Martin A 1> ❑ Iowa City. Iowa 52246
Telephone (319)351.4996
Honorable Mayor and
City Council of Iowa City
City Hall Civic Center
410 East Washington
Iowa City IA 52240
Dear Mayor and Councilmen:
My client, the Wig & Pen Pub, Incorporated, has purchased a
London doubledecker bus for promotional purposes. As you know, '
the pub has an authentic London telephone box on its premises.
The bus arrived today and it is contemplated that it will be
eventually used to pick up and return pub patrons.
I have checked with your transit department and the bus appears
to comply with height and other limitations. We have been
warned to not try to squeeze under the Iowa Avenue Bridge.
We believe the bus will add some additional zest to an already
colorful city while, at the same time, reduce the potential
risk of accidents by those who otherwise might need a
designated driver.
If there are any special ordinances that would affect the
operation of the bus on the streets of Iowa City, would you
please have someone contact me or, if.I am unavilable, my
receptionist, Donna Hardin, at our Iowa City office. In the
meantime, my client wanted you to know about its plans.
sp ctfully)
TR/pr
cc: Donna Hardin
Tom Riley
• Also licensed to practice law In Minnesota
J
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Date:
To:
From:
Fn
City of Iowa City
MEMORANDUM
July 5, 1989
City Council
Rosemary Vitosh, Director of Finance(316 �
Hotel/Motel Tax Shortfall
The City's last quarterly receipt of hotel/motel tax revenues came in at a greatly reduced
amount due to non-payment of taxes by two hotels/motels. Actual receipts by quarter of the
tax revenue this fiscal year were as follows:
September, 1988
$ 61,709
December, 1988
68,472
March, 1989
60,358
June, 1989
19.116
Total
$209,655
The revenues received in June, 1989, should have amounted to at least $55,000. Therefore,
total revenues for the year show a shortfall of approximately $36,000. Since these monies are
allocated to four different areas, those areas will each experience their proportionate share of
the shortfall. The monies are allocated 50% to the Police Department, 25% to the Convention
Bureau, 15% to the Mercer Park Aquatic Center, and 10% to the Parkland Acquisition Fund.
Discussions with the Iowa State Department of Revenue and Finance indicate that tax revenues
were not received from two hotels/motels. Because of the confidentiality of the tax return
information, the Department was not able to provide us Information on which hotels did not
submit their taxes. However, In our dealings with the Holiday Inn and their bankruptcy
proceedings, we are aware that they did not pay their taxes for that quarter.
New legislation was passed last year permitting local governments to designate two Individuals
who would be authorized to receive local option tax Information/data previously confidential and
unavailable for review. We are currently processing a request to have IJnda Newman Gentry
and me listed as the City of Iowa City's two designated representatives. In the future, we
should be in a position to investigate happenings such as this In a more detailed manner,
As you may be aware, the Convention Bureau is concerned over the fact that their share of
this final quarter payment was lower than expected by approximately $9,000. This loss of
revenue for them will result in a substantial negative Impact upon their cash flow. It is
Impossible at this point in time to predict whether these tax revenues will actually be paid to
the state and become available to the Convention Bureau at a future date. Linda Gentry has
advised them of the consequences of the Holiday Inn's bankruptcy proceedings and what the
Bureau can expect. The State of Iowa will be filing a claim with the bankruptcy court for the
Holiday Inn's share of the final quarter's hotel/motel tax. Linda Gentry suggests however, that
relying on receipt of this tax Is not advisable, since the hotel would have six years to pay the
tax after approval of a Reorganization Plan, which is still far from imminent.
Please contact me should you need any additional Information.
loR33
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City of Iowa City
MEMORANDUM
Date: July 3, 1989
To: City Council
From: Patt Cain, Economic Development Coordinator kv
Re: Annual Report on Iowa City Tax Abatement
The attached table summarizes use of tax abatement within Iowa City. These data were
supplied by Dan Hudson, City Assessor. Remember that the partial exemption applies only
to actual value added by new construction of eligible real estate.
In 1989 there was a total of seven applications for tax abatement. Two of these applications
were from new applicants, both of which met requirements for approval. Note that often one
building or expansion results in two applications if development is not completed within one
calendar year (e,g., Economy Advertising, Lyle Miller Company). Other applications represent
new construction and expansions that are completed (Blooming Prairie Warehouse, Sheller
Globe Corp., Iowa City Ready Mix) or just begun (MacBride Addition, Hieronymi).
If you have any questions about this information, please call me at 356-5235.
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TAX
ABATEMENT IN IOWA CITY
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Year of
Type of
Assessed Value
Added by
Iowa City
Tax
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- Applicant
Application Property
Improvement 1986
_Iowa, City Tax Savings
to Firm'
1987
988
187 1988
1989 1990
Mill
rd
hou
-2710aHwy. 6eEast
1986
ehouse ercial/
6338,800 53,824
63,370 $2,560
61,756
'
978
1,584
1987
War1985
2,939 2,378
61,834
4,022
6,620
1988
1,375,880
220,840
12,068
9,930
i
1989
209,660
1,992
710
1,250
Plumbers Supply Co.
2020 5. Riverside Dr.
1985
Commercial/
270,690 2,128
1,876 1,424
w
1,352
1,912
II '•
Distribution
578
976
li
Center
.936
1,324
MacBride Addition
-2325 Heinz Road
1986 r
1989
Industrial
288,990
2,502 2,028
1,564
400
658
10,050
•�,
•� •
Economy Advertising
2800 Hwy. 6 East
1986
1987
Industrial
200,000
11732 1,904
1,082
., :..
1,234,570 .
10,828
8,910.
Gringer Feed 8 Grain
1987
Industrial
136,950
2149 Old Hwy.: 218 S.
14
-
312
1,202
988
114
I
Blooming Prai rfa
1987
.Commercial/
125,060
Warehouse
1988
Distribution68,680
1,088
902
1989
Center
.64,700
620
64
Sheller Globe Corp.
1987
Industrial
64,900
2500 Hwy: -.6 East
1988
37,680
570
468
-`
- - -
1989
183,440
340
Lyle Miller Co..
1988
Industrial
293,500
_
1989
15,420
2,648
-Thomas 6 Betts Corp.
1988 -
Industrial
21,230
192
'
Hieronymi -
2324 Heinz Road
1989
Industrial
21,600
'Iowa
City Ready Mix
1989'
Industrial
361.220
1854 S. Riverside Or.
-- __
TOTALS
66,028,250 65,952 612,414
635,560 634,202
"First year of taxes paid
---------------
---- .------'Calculated
on improvement.
'Calculatedby: Assessed
Value x
% Exemption x
Rollback Adjustment x
Tax Rate for Iowa City
[75% in Year 1
60% in Year
[98.7948% for
[f10.60932 per 61,000
A
2
45% in Year 3
1986-87 only]
assessed value in
30% in Year 4
1986-87; 611.54919 in
15% 1n Year 5
in 1987-88; 611.69523
in 1988-89; 612.02810
y
in 1989-90]
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Iowa City
Tax
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1986
Paid b
Firm on
Im rovement
1987
988
89 1990
61,274
62,248
63,128
64,096
978
1,584
2,242
4,022
6,620
664
*
710
1,250
1,742
2,280
!
834
1,352
1,912
II '•
578
*
li
.936
1,324
3,610
5,940
400
658
i�
•�,
366
602
'
206
190
312
�.
114
I
882
64
61,984
65,888
617,330
627,916
City of Iowa City
F MEMORANDUM
Date: July 5, 1989
10
To: Steve Atkins, City Manager A,1
GG�E
From: Kevin O'Malley
Re: Property and Liability Insurance Purchase for
Summary
A committee comprised of Rosemary Vitosh, Terry Timmins and I have studied the options and
recommend FY90 insurance coverage to come from Penco's occurrence form All Lines
Aggregate (ALA) program. The All Lines Aggregate program provides Insurance protection for
general liability, auto liability, police professional liability, public official liability, and all risk
property coverage. In the previous two years, Penco offered only a claims made form of the
All Lines Aggregate program. This year Penco offered a claims made form ALA program for
$480,374 and an occurrence form ALA program for $523,428. The additional $43,054 of
premium provides Insurance protection for claims that are discovered in years after FY90. Also,
we recommend the purchase of a two year reporting period (tail) coverage for the FY88 and
FY89 ALA claims made form programs in the amount of $22,495. Previous premiums for the
tail coverage were quoted at approximately $360,000 and therefore not purchased. Total
premiums for the occurrence form ALA program with the tall for the prior years is $545,923,
within budget for FY90.
Background
Carlton Johnson, CPCIJ, on behalf of the Independent Insurance Agents of JohnsonCounty,
Inc., obtained four proposals on insurance protection, The proposals coverage limits and self
Insured retentions were roughly comparable. However, form of Insurance varied, i.e. Penco
had offered both claims made form and occurrence form; Iowa Communities Assurance Pool
(ICAP) offered a combination risk retention pool, claims made form for public official liability,
and traditional form property coverage; and Northwestern National Insurance Company (NNIC)
offered a tailored traditional product for general and auto liability lines and property coverage
and a claims made form for public official and police professlonaf liability.
Claim service also was varied with Penco offering consolidated loss reporting and claims
adjusting for all lines versus ]CAP and NNIC being responsible for only general liability, auto
liability and public official liability lines while City staff was responsible for coordinating the
property and police professional lines.
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The following table represents the pricing of approximately $5 million In insurance protection.
[CAP
GL, AL, POL $361,008
Claims ADMIN (approx.) 40,000
Prior Acts Coverage 56,382
Property ($100,000 Deductible) 47,974
Police Professional Uability 66.41
Total ICAP Proposal $571,783
NNIC
GL, AL & Property $453,828
POL, PP & EMT 91,510
Total NNIC Proposal $545,338
Penco (Claims Made)
All Unes Aggregate $480,374
Penco (Occurrence)
All Lines Aggregate $523,428
Two Year Reporting Period 22,495
Total Penco Occurrence $545,923
We chose Penco (occurrence) for two reasons, 1) mobility, which Is the ability to change
insurance providers to get the best protection without need and concern for obtaining tall
coverage with the outgoing provider or obtaining prior acts coverage with the incoming
provider; and 2) the occurrence form which provides an open window for claims to be
presented after the policy period expires. With our previous Penco claims made program we
were concerned with the previously quoted tall cost of approximately $360,000 which would
be available to us If we chose to change Insurance providers. NNIC's proposal lacks prior acts
coverage thereby necessitating either going bare (no Insurance protection for claims occurring
in FY88-FY89 and reported later) or purchasing the aforementioned tail from Penco. Also,
NNIC excluded transit liability and property flood coverage.
[CAP's proposal was better than In years past and was seriously considered but the prior acts
coverage cost was expensive and the $100,000 deductible on property coverage was too
high a risk for our current loss reserves.
Continuing with Penco's claims made program would not allow mobility In the future if the
decision was made to choose a different Insurance provider; the tall costs would continue to
Increase every year. Therefore, we chose Penco's occurrence form program to put the City
at a better advantage for choosing Insurance providers In FY91 and the advantage of Insurance
protection for claims reported after the policy period.
ser
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The City of Iowa self Insures the first $50,000 on each claim, Lloyds of London the next
$200,000, St. Paul Surplus Lines the next $1,750,000 and Northfield Insurance the next $3
million for total coverage of $5,000,000.
cc: Rosemary Vitosh
Terry Timmins
/sp
WILL J. HAYEK (1606-1962)
JOHN W. HAYEK
C. PETER HAYEK
C.JOSEPH HOLLAND
JAMES C. LAREW
DAVID E. BROWN
RECEIVED JUL 5 1989
HAYEK, HAYEK, HAYEK & HOLLAND
ATTORNEYS AT LAW
BREMER BUILDING
120A EAST WASHINGTON STREET
IOWA CITY, IOWA 02240.2976
July 3, 1989
AREA CODE 219
337.9606
Iowa City City Council
Civic Center
410 East Washington Street
Iowa City, Iowa 52240
Re: Ruling in Yocum Injunction case
Dear Honorable Mayor McDonald and Members of the City
Council:
I am pleased to report that the City has received a
judgment in its favor in regard to a petition for injunctive
relief which was filed in September, 1985. This case
concerns construction work in the Showers Addition which the
City contended was being performed illegally by defendant
Yocum. This matter finally went to trial on June 8, 1989.
The Court ruled that Defendant Yocum had violated the
Iowa City Zoning and Building Ordinances, and it has ordered
Defendant Yocum to remove the partially constructed addition
no later than August 7, 1989.
Please let me know if you have any questions or require
additional information in regard to this case.
DEB:sam
cc: Stephen Atkins
Terrence Timmins
Douglas Boothroy
sincerely yours,
id E. Et
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001
IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY
CITY OF IOWA CITY, IOWA, ) T
I No. 49449
Plaintiff, T
JUDGMENT.
ve
,n
STANLEY MAX YOCUM, ) ,., �•>
HERTZ FARM MANAGEMENT, INC., )
and NEDRA REESEY, )
Defendants. )
Trial of the above cause was held on June e, 1989.
Plaintiff appeared by Attorney David Brown. Defendant, Stanley
Max Yocum, appeared personally and was represented by Attorney
Patricia Ramath. Both sides offered evidence, and the case was
submitted.
This lawsuit concerns a qucnset but which has existed in the
Showers Addition of Iowa City for many years. Max Yocum owns the
building and rents the land upon which it is situated. The.
quanaet but has been on the present site since the mid -1940s. In
August 1985, Mr. Yocum wanted to build an addition to the quonset
as a birthday gift for a girl who was living there with her
mother. It was for her 16th birthday. Mr. Yocum is a longtime
resident of Iowa City and Was aware of the need to have a
building permit to pub additions on structures such as this. Be
did not make a formal application for a building permit before
beginning to build the addition in August 1985. When the City
became aware of this addition, a representative of the City
placed a "stop work order- on the premises so that no further
construction would be done until a building permit was secured.
Mr. Yocum subsequently submitted a rough set of plana for the
addition to the City of Iowa City and made an application. for a
building permit. The quonaet but is a nonconforming use because
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IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY
CITY OF IOWA CITY, IOWA, ) T
I No. 49449
Plaintiff, T
JUDGMENT.
ve
,n
STANLEY MAX YOCUM, ) ,., �•>
HERTZ FARM MANAGEMENT, INC., )
and NEDRA REESEY, )
Defendants. )
Trial of the above cause was held on June e, 1989.
Plaintiff appeared by Attorney David Brown. Defendant, Stanley
Max Yocum, appeared personally and was represented by Attorney
Patricia Ramath. Both sides offered evidence, and the case was
submitted.
This lawsuit concerns a qucnset but which has existed in the
Showers Addition of Iowa City for many years. Max Yocum owns the
building and rents the land upon which it is situated. The.
quanaet but has been on the present site since the mid -1940s. In
August 1985, Mr. Yocum wanted to build an addition to the quonset
as a birthday gift for a girl who was living there with her
mother. It was for her 16th birthday. Mr. Yocum is a longtime
resident of Iowa City and Was aware of the need to have a
building permit to pub additions on structures such as this. Be
did not make a formal application for a building permit before
beginning to build the addition in August 1985. When the City
became aware of this addition, a representative of the City
placed a "stop work order- on the premises so that no further
construction would be done until a building permit was secured.
Mr. Yocum subsequently submitted a rough set of plana for the
addition to the City of Iowa City and made an application. for a
building permit. The quonaet but is a nonconforming use because
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it is only 17 feet off Sand Road. The zoning ordinance which vas:.'
in effect in 1985 requires a setback of at least 27 feet* for any
additions such as the one being put on the quonset hut. His
application for a building permit was denied because of the
setback requirements, and he was advised that he could seek a
variance through the Board of Adjustment. Mr. Yocum indicated he
would seek a variance; however, he never applied for one. His
Position at trial appears to be that the cost of filing the
application was too high ($275). Mr. Yocum did some subsequent
work to the addition after the 'stop work order" was posted. He
asserts it was just cleanup work: however, the pictures, as
indicated below, show some additional construction was done:
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any further construction work at the site in question (Site
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In October 1885, a temporary injunction was issued by the.•' ^'
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Honorable Van D. Zimmer enjoining the Defendant from performing
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any further construction work at the site in question (Site
Number 63 of the Shovers Addition in Iowa City, Iowa) until Mr.
Yocum obtained relief from the Board of Adjustment or the issue
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was resolved by the court. No application to the Board of
I
Adjustment has been made as of this date, and the incomplete
addition remains in the same state it was in 1985.
The ordinances of Iove City require that a person obtain a
buildingpermit beforeaddition
p putting an on a structure such as
�
the one in question. The Defendant was aware of this procedure
yet attempted to put an addition an his quonset but without such �
e permit being issued. He subsequently applied for apermit, and
� after it was denied because of the zoning requirements, made no
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effort to obtain a variance through the Board of Adjustment. In
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short, Mr. Yocum's actions in placing the addition to the quonset
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but were made in knowing violation of Iowa City ordlnencea, and
II.
the structure was illegally placed on the site.
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Based on the Defendant's violations of the Iowa City toning
Ordinances and Building Ordinances, it is hereby ordered that the
Defendant, Stanley Max Yocum, remove the partially constructed
addition to the quonset but no later than August 7, 1989, at 5:00
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p.m. IC he does not remove the structure as ordered, the court
will consider an application by the City to have City employees
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remove the structure themselves and tax the costs of such
removal to hr. Yocum and assess an appropriate judgment against
him I
Costs are assessed to Defendant Yocum.
Dated this 7 day of / U.�� 1989.
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_ I. VERN ROBINSON, Judge,. 6th Judicial District II r
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Dted's Office Prionnel b•qa r•:,
Im Wong Document
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remove the structure themselves and tax the costs of such
removal to hr. Yocum and assess an appropriate judgment against
him I
Costs are assessed to Defendant Yocum.
Dated this 7 day of / U.�� 1989.
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_ I. VERN ROBINSON, Judge,. 6th Judicial District II r
us
Dour
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Dted's Office Prionnel b•qa r•:,
Im Wong Document
RECE IVED JUL 5 1989
DOMESTIC VIOLENCE INTERVENTION PROGRAM
POST OFFICE BOX 733
IOWA CITY, IOWA 52244
June 29, 1989
I
John McDonald
Mayor
City of Iowa City
410 E. Washington Street
Iowa City, Iowa 52240
Dear Mr. McDonald,
Thank -you for the City of Iowa City's response to our extreme need
for additional fundstoincrease our Executive Director's salary.
.Our Board appreciates the long term support that we receive from
the City Council and your acknowledgement of'the programs weprovide
. to the City.
A letter has been sent to Marge Penney requesting those funds.
' Sinc rely yours,
Patricia J K an
Chairperson
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❑ Iowa City (Iowa) Transit has
public's attention. When using the
installed a new state-of-the-art
Telly, the patron can proceed
electronic information center in the
directly to the map and timetable of
Downtown Transit Interchange.
the route they desire or they can
The unit, called the Transit Telly,
view general information on sub -
provides route, schedule, and other
jects such as fare structure, lost -
information on behalf of not only
and -found and how to transfer. If
--q they want to go to a specific
" location such as a school,
they may view a listing of
l ••r
=i schools, select the one they
want, and on the screen, the
i •- •••`'"�•
proper route and timetable
t, ^'°0pjyjp1
will be displayed.
Lundell indicates the Telly
has been well received by
the public. A useful aspect of
the Telly is that it records
.I
usage by time of day and
what information was
selected. This data should be
Pictured in front of Iowa City's Transit Tally are useful in future transit plan-
JohnA. Lundell f left), Iowa City Transit manager,
and Johnny Brown, president ofTVL Corporation, ning activities. During the
Iowa City Transit, but also Coralville
first few weeks of operation, the
Transit, University of Iowa CAMBUS
Telly has been used an average of
and Johnson County SEATS. Iowa
once every three minutes. As an
City Transit Manager John Lundell
option, theTellyalso offersa printer
believes this is the first application
which supplies a hard copy of the
of this type of technology in the
information displayed on the screen.
country. By using a key pad on the
The Telly was manufactured in
free-standing unit, the transit patron
the Iowa City area by the TVL
is able to select the specific route or
Corporation, headed by Johnny
schedule they wish to learn more
Brown, president.
about. The Telly is designed to
Despite the large volume of
provide information to the first-time
transit information which is cur -
transit user as well as those who
rently available on the Telly, it
are already familiar with the
actually uses only a fraction of the
system.
unit's capacity. New transit appli-
Lundell indicates that an
cations are already being developed
information center in the Downtown
and will be loaded into the Telly on
Transit Interchange has long been a
an ongoing basis. D
high priority for Iowa City Transit.
The Tellydisplays more information
p Central Ohio Transit Authority
in a dynamic fashion than an
(COTA), Columbus, reduced service
ordinary display case of transit
and eliminated some low -ridership
schedules. However, it is less
routes effective May 1. COTA also
expensive than locating an employee
reduced the number of personnel in
in the interchange.
line with these service reductions.
The Telly offers high resolution
graphius, wni,h permits excellent
reproduction of route maps and
other displays. When a patron is not
using the Telly, a series of actual
transit photographs is displayed on
the screen in order to capture the
14 BUS BIDE May tells
10?30
I
U.S. Transit Subsidy Policy: In Need of Reform
MARTIN WACHS
Public transit in the United States has depended incest
ingly on public subsidies since the inception of the federal
mus transit assistance program in the early 1960s. The
subsidies arc associated with declining efficiency and
labor productivity, as urban transit systems have overcap-
italized, simplified fare structures, and extended service
into sparse suburban markets. Despite these subsidies,
transit has not proved successful in counterin the effects
on its market of increased automobile ownership and use
and of decentralization of residences and places of em-
ployment.
DUR1NG THE 19505, SUBURBAN HOMEBUILDING AND
automobile purchases increased rapidly in America in
response to demand that had been depressed by two
decades ofdepression and war. Construction of the National System
of Interstate and Defense Highways began in 1956. Under this
program, financed by the proceeds ora national gasoline tar, up to
90% of the cost of new intercity highways was home by federal
subsidies, whereas the nates were responsible for only 10% of the
costs. Federal construction subsidies were later extended to urban
expressways and freeways, which provided access to the downtown
of large U.S. cities from their burgeoning suburbs and fed the
demand for suburban houses and an.
Public transit was at the time largely privately owned. It had been
in a nate of nerdy decline since before 1920, but had maruged to
eke out small profits. Helped by gasoline rationing and the unavail•
ability of new automobiles during World War 11, transit took a
financial baring during the 1950s. Between 1954 and 1963, 194
transit companies went out of business (1), and many medium-sized
cities were left without service. Transit operations were increasingly
filling into public hands as fides tried to rescue them from
bankruptcy and maintain service for thein citizens. Urban congress•
men, urged on by mayors of large cities and labor unions represent.
ing transit workers, began to consider federal aid to transit systems.
For nearly 30 years, transit finance has been dependent on the
complex system offederal, state, and local subsidies. Although state
and local contributions have been larger than federal contributions,
federal policies have been central because they have defined the
conditions governing subsidies from other levels of government.
Federal Transit Subsidy Program
In 1961 Congress approved the first federal aid for public transit,
a S25•milLion program for loans and demonstration projects, in
1964, Congress appropriated general revenues for a much larger
30 TUNE 1939
program of capital grants to build or renovate facilities, purchase
transit coachu, and acquire private companies for public ownership
and operation. Federal funds for these apical programs were
available on a matching basis. State and local governments were
required to cover one-third of the cost in orderto acquire the federal
contribution of two-thirds. This matching alio was later changed to
allow the federal share to be as large as 85% under certain
circumstances.
Congress initially intended to support only capital costs, those
associated with the purchase of land and equipment and the
building of new facilities. Congress did not wish to subsidirc
operating costs, consisting primarily of labor, fuel, maintenance, and
administration. It was argued that if local governments were
required to cover their own operating costs, they would spmd the
capital subsidies so as to optimize efficiency; if they could use federal
dollars for operating subsidies, there would be no incentive to
achieve efficiency and wen would rise endlessly (2). By 1974,
however, demands for inaras s in federt cransit subsidies were so
great that operating subsidies were added to the federal program,
with a maximum 50:50 matching ratio requiring the Use of nate and
local tax revenues in at least equal proportion to the federal money as
a condition for receipt of the federal operating subsidies.
Until 1982 all federal await subsidy support came from the
natores general revenue fund, which made it vulnerable to pressures
for deficit reduction. The Surface Transportation An of 1982,
however, raised the federal gasoline our by 5 ants per gallon, and for
the first time 1 ant per gallon was earmarked for support of the
public await capital grant program. A new program was also
orated by this act which gives federal grant recipients greater
flexibility in determining whether to spend thew funds on apical or
operating costs. To date, mon federal subsidy support has been used
for capital expenditures because the federal matching rate is higher if
federal funds are used for capital investments,
The mon direct purpose of the federal assistance program for
mass transit was to maintain and improve transit service and thereby
to contribute to the "welfare and vitality" of the urban ares in
which mon transit systems arc looted (3). The rationale for truuit
subsidies included knowledge that private opentors would certainly
experience difficulty competing with heavily subsidized highway
networks and that cities needed transit to avoid rush hour conga•
tion on those networks. Additional indirea benefits that were
expected included relief of urban traffic congestion, reduction in the
consumption of fossil fuels, provision of transportation service for
thou too old, too young, or unabic to drive curs because of
handicap, reversal of the physical and social decline of the inner
cities, and reversal of `urban sprawl."
The audnr L pmhuor and head of the Urban Nu iing PGradme Schnol of
Architmurt and Urban Planning, Unha by ofCaffury a, , CA %024-
1467.
ARTIcLES 1343
/R3 7
Nearly $40 billion of federal money has been spent on publica
pre
S
In 1940, a small number of transit companies, operating 7% of
transit subsidies since the inception of the program, and these is
20
Passenger fares 54 39 37
widespread agreement among transportation planners, economists,
Other operating income 5 4 6
service was offered by companies in public ownership. By 1985, the
and politicians that the benefits of the program have not been
3 is
warranted by its costs (4). There is, however, less agreement on the
10
miles of service (S, p. 17). Rural and smaller urban transit systems
reasons for the failures. In this article, I present dam on the
are still operated to a significant extent by private companies,
performance of the nation's transit systems during the past 25 vicars
m s
ownership, their acquisition facilitated by the subsidy program.
in order to establish a basis for the current debate over public transit
1900 1920 1940 1960 1980
subsidy policy. Then, I examine some proposals for overcoming the
in current transit programs.
Fig. 1. National transit ridership from 1900 to 1985 (6).shortcomings
5% of revenue (5, p. 20). Although federal subsidies have been
Table 1. Sources of rwenue among U.S. transit systems (4).
Rccc 1t TIt nds m Tt' wit Industry Pafotnmce
gone of revenue Revenue (% of tail)•
In 1940, a small number of transit companies, operating 7% of
1975 1980 1985
the country's vehic:e-milts of service, were in public ownership. In
Passenger fares 54 39 37
1965, as the federal subsidy program was getting started, 48% of
Other operating income 5 4 6
service was offered by companies in public ownership. By 1985, the
Starc and local subsidize 32 40 50
Federal subsidies 9 17 8
effects of the mamit subsidy program were clear. By then, public
ownership extended to companies providing 96% of the vehicle.
•Taub d16er slightly due to mwding.
miles of service (S, p. 17). Rural and smaller urban transit systems
are still operated to a significant extent by private companies,
whereas the large urban transit systems are nearly all in public
industry's operating costs; kderal, state, and local subsidies account
ownership, their acquisition facilitated by the subsidy program.
ed for 57%. Other sources, such as mete from advertising on
The availability of transit Service had been steadily declining a
vehicles and rental of space in stations to retailers, pmvidad about
companies faced severe financial problems. From about 31 billion
5% of revenue (5, p. 20). Although federal subsidies have been
vehicle -miles in 1945, service available to Americans fell to about
influential in determining national transit trends, they have declined
2.1 billion vehicle -miles in 1960. Although transit service levels
rapidly during the years of the Reagan Administration. State and
continued to decline in the early years of the subsidy progarn, by
local subsidies have grown more rapidly and now account for a
1987 transit service had risen again to 3.0 billion vehicle -miles (S, p.
much larger shim of the total trauit budget dun does federal
34; 6, p. 34).
assistance (Table 1).
Transit ridership has reflected the increase in service offered.
Transit is an industry that is dependent upon labor and fuel, and
Ridership had been declining precipitously during the 1950s and
both of these inputs have experienced cost increases in excess of the
1960s. In 1950, the nation's transit systems provided 17.246 billion
inflation in all goods and services. In a derailed study of transit cost
rides, and by 1965 annual ridership had declined to 8.253 billion.
increases Piduell found that of expenditures of more than 516
During the early yc2m of the subsidy program, ridership continued
billion of federal, state, and local subsidy dollars between 1975 and
to decline. In 1970 it reached a low of 7.284 billion rides, but it
1984, 36% covered increased labor casts per unit of service, and
tamed upward again and by 1987 annual ridership was 8.340
16% covered increased cost offud and spare parts. But, in addition,
billion (S, p. 32) (Fig. 1). Relying heavily on federal apical grants,
27% Covered the cost of an 8% increase in vchidc-miles of service,
new rail systems were built in Washington, D.C., Atlanta, Bald-
and 16% paid for the cost of revenues lost because transit faces rose
nwte, Miami, Portland, Sacramento, and Buffalo, and others arc
mote slowly than inflation. These findings smhd in stark contrast to
under construction in Los Angeles and San Jose. Major expamions
the arguments Por increases in the subsidies, which stressed that they
ofolder rail systems have also been completed, such as the extension
were an investment that would pay off in more efficient transit
of the Chicago system to O'Hare Airport. In many other cities, bus
service (8).
lines have been artended and fleets expanded. Figure 2 shows how
Transit is labor intensive, with wages and fringe benefits account-
ccountservice,
service,ridership, and employment in the public transit industry
ing for more than 70% of the operating asst of service. It is,
have lunged ova the life of the subsidy program.
therefore, particularly disturbing that transit labor productivity has
Although the long-term decline in transit ridership has lcvelcd off
declined precipitously since the inception of the national subsidy
in absolute numbers, ridership continues to lose ground to the
program. The number ofemployees in the transit industry rose from
automobile in relative tem. Americans made 3.6% of their tips on
156,400 in 1960 m 261,900 in 1985, while the number of vehicle -
public transit in 1969, but that share had declined to 3.0% in 1977
miles of service offered per employs 6e11 from 14,000 per employee
and to only 2.6% by 1983 (4)• And, the decline in tansies share of
to fewer than 11,000 (3). At the same time, the cost of labor,
the travel market has been associated with enormous increases in
including fringe benefits, has grown dramatically, though there are
coat and substantial declines in productivity and tort cfftativeness,
substantial differenar from city to city. In 1986, for ample, total
Between 1965 and 1983, operating Cost pervchicle-mile of transit
compensation for bus drivers at the Southern California Rapid
increased more than twice as fast as inflation. During those years,
Transit District in Los Angeles avenged $49,777 in comparison
them has been a rise in operating cost of 419% versus an increase of
with an avenge of $34,426 at a unionized private operator in the
189% in the consumer price index. Thus, the "real" operating cost
same arra. In Washington, D.C., tot Compensation of bus drivers
of transit rose about 80% in those few short years, Increases have
was 544,014 at the Washington Metropolitan Am Transit Author.
occurred in all regions and in both rail and bus systems (7). The
ity, in comparison with an average of 519,418 for a nonunionized
increases in costs have been home largely by the taxpayers. Prior to
private operator in the same am (9). When confronted with trends
1965, although the industry was in decline, nearly all the cost of
such as these, many argue that the benefits of the subsidies have
transit service was paid for by farebox revenues. By 1987, however,
accrued disproportionately to those who provide trussit service
the fans paid by transit passengers covered only 39% of the
rather tun to thou who use it.
ry46 SCIENCE, vol. a44
i07s9-
Table 2. Distribution of growth (%) in commuting nips, 1960-1980.
To
From
Central city
Suburbs
Total
Central eiw 9 9 17
Suburbs 25 5A 83
Taal 34 66 100
Why Has Transit Efficiency Deteriorated?
Behind the raw numbers be several trends that help us understand
declining efficiency in the transit industry. These trends include a
rapid increase in automobile ownership and accelerating suburban.
bation. In recent deader suburbanintion of employment has
accelerated even faster than the decentralization of residences.
Although it was at various times argued that subsidies to public
transit might play a role in reversing these trends, it is now clear that
national transit policy will do little to slow automobile use or urban
deeenvaliation.
The most direct influence on transit use has been continuing
growth in automobile ownership in the United State. This is largely
a reflection of increasing income, although it is observed among
people of all income and age groups and in urban as well as coral and
surburba t communities. The census of 1960 showed that as we
began transit subsidy programs there were 0.34 automobile per
capita in the United Sates. By the most recent census of 1980, there
were 0.54 can per capita (4). And automobile ownership his
continued to increase since the last eauus. The National Personal
Transportation Studio, based on national samples of several thou.
sand households, showed that the proportion of households not
owning automobila dropped steadily from 20.6% in 1969 to
15.3% in 1977, and to 13.5% in 1983, the most recent survey year.
During the same period, the proportion ofhouseholds owning duce
or mote vehicla case from 4.6% in 1969 to 15.6% in 1977 and to
19.3% in 1983 (10). It seats unrealistic ro expect improvement in
public mutsit to yield substantial reductions in car ownership, and
people who own automobile tend to use than even when decent
transit service is available.
When the national transit subsidy program war started in the euly
1960s, the population of the United States war suburbanizing very
npWy. At that time, suburbs were primarily residential communi.
ria; manufacturing and service industries were nib concentrated in
the downtowns of our metropolitan areas. Transit subsidies were in
part intended to improve service between outlying residential
suburbs and the cental city employment cora. The single most
important change in the spatial distribution of activities since the
19605 has been the rapid decentralization of employment. In part
this is related to the decline of manufacturing, changes in the
technology of manufacturing, and the rise of unite industries.
Service industries have moved out ofmstral dtia in order to benefit
from Iowa land cost and greater proximity to suburban labor
pools, clients, and customers.
This shift is mlicered in the distribution of commuting trips.
Work trips made between origins and destinations both hated
within the « ntnl dtia of U.S. metropolitan utas grew in absolute
number from 1960 to 1980, but declined as a proportion of all work
tips, from 46% in 1960 to 30% in 1980. Suburban to central dry
work trips doubled in absolute number during those 20 years,
increasing from 16% to 19% of tool commuting journeys. "Reverse
commutes," from cesmW city residenco to suburban jobs, remained
a study 5 to 6% of all work trips during those two deader. The
most dramatic growth In work trips occurred between origins and
30 11/NE 1989
destinations both looted in the suburbs. The number of Americans
who both worked and lived in the suburbs grew from I1 million in
1960 to mors than 25 million in 1980, and their share of the total
commuting work force rose from 28 to 38%. Flows of those who
lived in the metropolitan areas but wtsrkcd outside them also rose
from 4 to 7% of the work force between the 1960 and 1980
censuses (11) (Table 2). Traditional forms of public transit can
compete with the automobile for suburban commuters only at very
high cost and with poor efficiency, and it stems likely that transit
will not recapture the bulk of its lost ridership in the face of the
ongoing spatial morganintion of employment.
Policy Responses to These Trends
The failure of U.S. transit policy has not been its inability to
raerse the increase in automobile ownership and use nor to slow
the suburbsniration of population and employment. A far greater
problem has been in failure to adapt transit service to the emergent
conditions.
Urban subway systems are most efficient where there are corridors
of movement acceding 20,000 transit nips per hour in one
direction. Such flows can only be achieved where people travel by
public transit from dense concentrations of residences to centers of
commerce and employment. Increasing automobile ownership and
the dispersion of population and employment to the suburbs have
reduced the number of places where these conditions arc met, An
appropriate response would have been the construction of very few,
if any, new rail systems. For political reasons, however, transit
policy -makers tried to change the trends by their policies, and rail
investments were made in Baltimore, Adan, Miami, Buffalo, and a
number of other questionable locations. Federal support for rail
synerns was increased in an effort to slow the trend toward
suburbaniaation and to encourage people to, choose transit rather
than automobiles for trips to work. Heavy investments in nil
systems concentrated billions of dollars of federal funds in a few
urban corridors. These systems have high capital costs, and their
advantages; can be obtabred only at very high travel volumes, at
which their operating costs per passenga might fall below those of
bus systems. But the suburbsniration of people and businesses
continued unabated in all of the citie in which these capital
investments were made, so travel volume have risen coo little to
take advantage of the potentially greater ci iciency nil systems can
protide in dense nivel maidors. And when rail lines operate well
below their capacities, operating casts per passenger are usually
higher than those of the traditional bus systems which they replaced.
Because of low utilization, of course, urban rail systems have
provided few of their promised intima benefits in the form of
improved air quality or energy use.
While building rail transit in several urban cora in a vain attempt
to slow suburbaniation, transit management faced another prob.
lem. Increasingly dependent on public subsidies to pay transit bills,
policy -makers became sensitive to the fact that the upper income
citizens whose taxes paid for the"am were increasingly living and
working in low density suburban communities. Because they were
paying the transit subsidy bill, suburban commuters'representatives
on transit boards and in Congress called for emissions of bus
system to low density communities in which the tax base incrcu-
ingly raided. In low density ares, public transit incurs large deficits
because it collects fewer fuer per route -mile of service and opcnto
more vehicle -mils per passenger served. Because travel demand is
low on outlying suburban routs, transit operators can offer service
on those routes at much lower frequencies than they do on inner.
dry routes. This explains why transit houtc-miles increased 38%
ARTICLES 1147
between 1970 and 1980, whereas vehicic•milm of scr ice increased
by 20% and ridership increased by only 6% (8, 12).
One of the main sources of transies financial problems is pro-
nommd peaking of the demand for service. The industry has always
served the bulk of its passengers during rush hours when most
journeys are made to and from work and school. Most people using
transit at the of -peak hours are transit -dependent, too poor, young,
or old to drive. As cu ownership has inereased, transit nivel has
declined most mukedly outside of the peak hours. Most of tansies
costs arc attributable to its policy of meeting peak hour demand.
The heavy capital costs of subway tunnels, rail ars, and large bus
fleets arc attributable to the provision of opacity to meet rush hour
travel demand. Proper cost accounting shows that the marginal
operating cost of a passenger carried during the rush how is also
substantially higher than the cost per passenger carried during the
nonpeak hours, because large work forces needed for the peak hours
are not employed at maximum productivity during the off-peak
hours. The financial burdens of peaking have been accentuated by
building high capacity systems and extending routes into low
density areas where riders are attracted only during rush hours.
Many other public $"vita an, characterized by pronounced
peaking of demand, and one of the most common ways of dealing
with the economia of peaking is through appropriate pricing. For
ezample, telephone companies charge much Iowa price for calls
made at night and on weekends than during the peak hours of
business calling. This policy shifts demand to the Periods at which
them is ample opacity and away from the tines when its limited
opacity is most heavily demanded. The policy also charges the
highest prim to business callers, whose demand is less affected by
price. Public transit, an the other hand, has gereraBy maintained a
policy of pricing its service at the same fare regardless of how and
hence of cost. As consequence, rush hour travel is more heavily
subsidized than nonrush hour travel. For example, peak hour service
on the Southern California Rapid Transit District accounted for
58% of the system's costs but only 50% of its firebox revenue,
whereas od perk service accounted for 42% of the costs but 50% of
the revenue (13).
A similar misallootion of resources occurs with respect to mP
length. Transit operators in the United States usually employ a flat
fare aystem, in which the charge does net vary with the distance
traveled. Even where premium faro are charged for express com-
muter lines to the suburbs, the fare is much Iowa than the o=at of
the service. By contrast, most European transit systems employ what
arc ailed "stage" faro, or "zone" foes, in which the Payment varies
with the length of the trip, roughly in accord with the cost of
providing the trip. Flat fare systems subsidize longer trip makers at
the expense of shorts distance travelers, since the cost of providing
a longer trip is higher dun a Shorter one. In Los Angeles, for
example, a passmga traveling 1 mile paid a fare that was 2.2 times
the cost of providing his or her trip, whereas a passenger who
traveled 20 mile paid a fare that covered only about 10% of the cost
of the trip (13). The We of discounted monthly transit passcs.
exacerbates this problem. Monthly unlimited ride pass" arc most
ji" to be purchased by long-disance peak how travelers, who
thus obtain higher subsidies than many other riders.
As operating costs rise and there is pressure to rain transit fain,
each increase in a flat fare worsens the inefficiency and inequity of
that fare system. When the fare on the New York subway was 5
eamts, it might have nuncred less that the 20 -mile traveler paid the
same fare as the 2 -mile traveler. But today, the fare h $l and the 20•
mile traveler is often richer than the 2•mile traveler and is being
subsidized to a far greater extent. Each fare increase hum the
poorer, shorter distance travelers and Muse them to forego Some of
their trips. As a result, each fare increase eliminates from the mnsit
IMS
-- Employees
— Vehicle miles
passen0erddes
1960 1970 1976 1978 1980 1982 1984
ream
Fig. 2. Trends in transit service (vehicic-nl0es), patronage (passenger rides),
and employment, standardized with 1950 levels I A
market more and more people who need transit the most, and this
brings about greater political pressure to finance the systems using
subsidies rather than raising fares.
A final reason for the decline of public transit ridership is the
widespread fear of crime. America's transit systems are physically
dangerous because criminals prey on the traveling public at bus
stops and subway stations, on buss, streetcars, and subway tahu.
In a survey of more than 1100 transit users in Los Angeles, for
example, 16% reported being victims of a crime, and another 19%
had witnessed a aim= at a bus stop, on a bus, or walking to or from
a bus stop (14). The magnitude of transit crime is understated by
gime reporting mechanisms. Uniform crime reporting forms do not
designate transit stations or vehicles as specific venues for recording
crones, and they are thus lumped together with many other crime$
in a category called "street crimes." Despite inadequate data, it is
widely understood by transit managers that some people choose to
drive or simply decline to nivel bemuse transit mvirunments
frighten them.
The modem subways in wahington, Atlanta, and Baltimore have
been coruciously designed o secure environments, and crime rates
on these systems arc remarkably low; they arc among the safest
plain in those metropolitan arca. Far Ice$ attention to security has
been given to the design of blues or the provision of lighting and
Police surveillance: at buts stops. in many urban arcs tramir authori•
ties have mivaanely accepted rapomibiliry for policing the vchieles
and added uniformed police to thew payrolls. On the other hand,
security at bus stops has become a political football. Transit officials
claim that it is the responsibility of the local police; local Police
refine to allocate special resources to the protection of transit
installations. National transit Policy is virtually silent with respect to
the importance of protecting the riding public, and those who have
a choice increasingly avoid transit, leaving thou who have no choice
but to ride even more vulnerable to urban criminals.
Lnplications for Transit Subsidy Policy
Transit policy in the United Sates for the past quarter century has
succeeded in stemming absolute declines in transit service and
ridership, but the cast of achieving this has been great and there is
widespread agreement that the transit program has done little to
slow urban daentrallzadOnt, conserve energy, dean the err, or spur
the revitalization of inner city economic life.
It was rarely unrealistic ro expect trasuit Policy itself to accom•
plish all of these goals. pother (13) compared U.S. transit policy
with ten European countries and Canada. He found that the impacts
of transit elsewhere have been in more favorable than in the United
SCIENCE, VOL. 244
/,?.s 7
States. Subutbanization has been occurring more slowiv in those
countries, and public transit, though heavily subsidized, continua
to attract a large proportion of daily urban trips. Pother, hho"vver,
does not ascribe these results to transit policy alone. Rather, he
concluded that in European countries and Canada much smaller
subsidies to highway systems, much higher cues on automobiles
and gasoline, and land use policies discouraging suburbanization
explain mutt of the success of Transit programs (15). In the United
Sates, a Congress commined to laege increases in Transit use might
emulate these policies. It seems unlikely that U.S. policy -makers will
adopt such a sante, however, given the coormous political power of
the highway and automobile industry lobbies, and the apparent
widespread preference for low density, suburban, auto -oriented
Bfatyles as incomes rise.
Similarly, it is unrealistic to expect that U.S. policy -makers will
abandoton transit subsidies. Peak hour congestion on highways would
grow tshormuly if transit service were cut in response toreduced
support, and transit docs provide an essential service to a diverse
clientele. The 1963 National Pasonal Travel Survey showed that
nonwhites accounted for 44% of all Transit trips, females 55%,
people under 20 years of age 30%, and those ova 65 accounted for
more than 20% (12). There is likely to be a continuing consensus
that these groups are worthy of subsidization and that transit is a
vital public service, essential to their quality of life. Thus, it is most
realistic to pursue in the short run policy changes that will ensure
That transit subsidies arc smhcnued to obtain more cost-efficient use
of public resources. If major changes in highway and land use policy
an also be achitvcd, in the long run Transit policies would be even
more effative.
The federal government has induced cities to overcapitalize their
transit systems by designating large proportions of the total subsidy
budget for TO system construction and for the purchase of new
equipment Separate operating and capital assistance programs
should be integrated into a single transit "block grant" to be
distributed among urban ares according to some agreed upon
formula (7). This would lessen the pressure that exists under current
policy to emphasize new construction at the expense of mainte-
nance. The formula for the distribution of block gams might also
toward the most efficient transit operators by providing larger
subsidies to those with the smallest operating deficits.
Because the cost of labor, including ftinge benefits, accounts for
70% of Transit operating txhats, effum must be made to Iowa labor
corn. Many have urged That transit service be "privatized," by
allowing private operators to bid on seavim currently oPrnted by
public authorities. Savings from privatization have been estimated
co be on the order of lo% of currant mmit operating costs.
Privatization should be pursued where it is appropriate, but the
benefits of privatization may be ezaggasted. Private transit service
was abandoned within the put 20 to 40 years u largely unprofit-
able. By using put -time zed nonunion labor, and skimping on
Binge benefits, private contractors an bid below public service
providers in the short run. But, when private contractor succeed
WA expand, there is pressure for their work forces to become
unionized, and in time the differential between private and public
coats is lessened. Public authorities have, during the put 5 years,
ban able to negotiate more favorable wage and fringe benefit
settlements than had been the case earlier, in part boom of the
threat of privatization as an alternative. More uta of par. -time
workers, and more use of split shifts, which require drivers to work
10 TUNE 1989
during morning and evening peaks without overtime penalties, have
recently been negotiated. These have prtnidcd public systems with
some of the benefits many claim for privatization. Rather than
advocating privatization u a blanket solution, regional transit
authorities should encourage competitive bidding between private
and public providers for Transit services, allowing the service ro be
provided by the lowest financially mpomible bidder.
Transit fare structures should be reformed to allow greater
recovery of costs from the fircbOx and, thus, for subsidies to be used
more efficimdy. Price differentials should be introduced to encour•
agc more off-peak Transit use at bargain prices; peak hour fares
should reflect their costs to at greater extent. Prim should be
reduced for short transit trips and raised for longer trips in reflection
of the cost differentials of providing the service.
Inner city local transit routes cover the largest share of their costs
from the fmbox, whereas suburban locals, express bus commutes to
the suburbs, and undenssed urban rail systems require the largest
subsidy per rider served. Transit managancnt should limit service
expansions to low density outlying areas despite the movement of
the population and jobs into suburbia. Vanpooling, carpooling, and
employer -operated company buses can supplement the automobile
in the suburbs at Iowa amt, and public transit operators should
serve their traditional markets, where they can achieve economic
efficiency.
Finally, transit operators should accept responsibility for the
personal security of their passengers, allocating a larger proportion
of their resources to crime prevention on the vehicles and at stations
and bus stops. Citizens who have a choice will refuse to ride urban
transit until they believe that they an do so in safety.
REFERENCES AND NOTES
1. W. G"'en, The Ar o paiw Teaupmadm Rdhm (Doubleday. Gudm City, NY.
1966), p. 93.
2. L Fitch, U" Trm,pmwW and 14Ne pdiy (Cw+%W. San Frvidun, 1964).
C�P3 Frdad%r�TA,6,.: H Ila aft. Tvwb Chunped(W�Y
uhin8tm DC, 18
Scpmnbu 1985), p. 2.
4. E. H. Dole. The S&M, e)) the Naim" L d Mau Tnvpmntm: pe'ei'.1e ad
Cmdi= F Wit uauh A,,od,cim 19 T.6s con, DC, June h4r
S. Atnoim Pnblie Truun Attowmt4 1➢8d Teauit F.m Baaa Washington, DC,
1987).
6. -� 1997 Troon Fan Bade W'S-hd nn, Lh 19881.
7. D. H. riJ Ru, Feld t0pmma Of
fa 60% Tmun: trim Sy""" Caere•
ter,ret, and Refarnt (. S po bed 86). anowt Trmportadan Synenn fen'
[e, Cunbtidge, MA. 5'eptrmber 1986).
g, ^ J. T W. hiG. m. hi139. 3 (1985).
9. G. E Paema, W. Dewk , lr. G Walla, Tad Canprn,aia, oJe Mw oeauit
10. Dcpumtuit o! 7ruupanoa4W hDC' 1986), voL 1,
i� the
Prnawl us
Taap, S
I1. A. E. riasrw. Caa� dq I. Aauu r A Nawd Rq G
•eumd crtr asoe art"'a'W"... ..
13. 1. Bumky, The Suess o clan Nntuy
i.na Ar.0 Tr!apmadm: PnJmnentt and
CC.Mid". Report of DS )SJ" 19601. Tntupon•tion to the United Strata
13. & S. c mn0. M. ch,, R. crura. . ). E � N. Mpliut of
Sr
of Af~il TO -ft F.0 pdkW (Rc?o-CA•Il•OOt9.
DepLeoen
Truuportatiat, WashiMrttn, DC, Sepitern the 1980). e aw'[ _
14. 1. Lm A-Itta
en.,.�. m1'. 85 277.cfuP�ert OfTnarwpoeolriouhingtun. DC, 1 uuY
Maai.r Awa. 64.609 (19 8) D. H. Pickett. D. Stoup,
16. The nrhexgntefully a5rowkdgu tuggruuoru by
N. ravine. and 1. I%Ktw and the mtsurwe ofM. Brown sod S. Wbs..
ARTICLES 1549
'x,39
June 30, 1989
Mr. Joe E. Jones, Director
Community Planning & Development Division
U.S. Dept. of Housing & Urban Development
Braiker-Brandeis Building
210 S. 16th Street
Omaha, Nebraska 68102-1622
Dear Mr. Jones:
CITY OF IOWA CITY
I am responding to your report on the Department of Housing and Urban Development
monitoring visit to our office May 16-18, 1989. We were pleased with your
staff's comments and found their suggestions very helpful.
With regard to the findings and concern, the City's proposed resolutions are as
follows:
Finding No. 1: The Section 312 log is not being maintained. As noted in your
discussion, for some reason we did not have a sample guide form of the log to
be maintained, although the information required on the log was in our files.
We have now implemented the use of the 312 log for the four (not five) loans
processed in 1988, and will make sure that such a log is kept for all future '312
projects.
Finding No. 2: A copy of "Notification of the Dangers of Lead -Based Paint" which
should have been issued to tenants was not found in the files.
For investor-owned projects, we previously relied on the landlord to notify
tenants of the dangers of lead-based paint. We have now mailed two copies of
the "Notification of the Dangers of Lead -Based Paint" to all tenants with
projects currently under construction requesting them to sign and return one copy
to us. The landlords have been informed that tenants must return the forms.
In the future, the tenant notification forms will be required at the time of loan
settlement for all new projects, and the notices will be placed in the
appropriate files.
Concern: Involvement and Actions of Housing Commission.
Ms. Humbert again expressed her concern that the continued review by the Housing
Commission of rehabilitation projects over $5,000 was unnecessary, burdensome
and time consuming, and detracted from the efficient management of the Housing
Rehabilitation Program. The denial of assistance to a rehab project by the
Housing Commission for reasons other than eligibility, was also a grave concern.
110 EAST
WASHINGTON STREET • IOWA
CITY.
IOWA
52210 0 (3111
310.S000 1 FAX (111( 35/.S 001 !
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June 30 1989
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Dear Resident:
��T�//��y0�B�/T�
���� � ��� ��/�r/� CITY
The Benton Street Project is nearing completion and we expect the
street to be re -opened on or before July 14th.
On behalf of Tscxiggfrie Excavating and the City of Iowa City, we
would like to thank you for your patience and cooperation during
' this difficultconstruction project.
There Th i important emo attached to this letter to residents '
s a verym
Whose property abuts the Benton Creek. We ask you to please read
the memo carefully and if you have any questions about it, please
call the City Sanitation Department at 356-5180^
Again, our sincerely thanks for your tolerance and understanding.
Have a wonderful summer.
Sincerely,
/'
M—^?, ~�-7�
Hssistant rroject Manager
Enclosure
^/" EAST °^v"/vGvoN Srx,Er 0 /nn^ CITY, /on^ 52340 ° (3/1) 116.100" ^ ,^v I I/'| /16-500" (
�
C:
1
City of Iowa City
M E M O R A N D U M
CG�J 6-cct"ice
7Cc�, c 7S
wa gc�ct o , -a
TO: Residents Living Along The A/s(J�ton Creek
FROM: Mindy Greer, Assistant Projects Manager
DATE: . July 5, 1989
RE: Care And Maintenance Of The Newly Installed Culvert
The newly installed culvert on Benton Creek has a trash rack at the
point which the creek enters the culvert. This rack is designed
'
to keep objects from washing into the culvert and lodging where
" - —
---
they can't easily be removed. (A bed wasonceremoved from the
...old culvert.). It's importantto notethat this rack will catch all
. debris in the. stream including yard wastes such as branches,
... trimmings, and the like. Of course, as the, rack fills with debris,
.
the culvert's capacity is reduced and flooding may occur.
Residents are asked to please deposit all branches, trimmings and
..the like, in front ofthe house for regular garbage pickup, and no
longer use the creek banks as a repository. (See enclosure)
�If you observe the culvert becoming significantly clogged with
debris during high flows, don't attempt to clear 'if yourself.
.i
Please call the Pollution Control Department at 356-5177.
Your cooperation is not only appreciated but necessary. Thank You
foryour help..
S
{
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YARD WASTE
If you have yard wastes you should follow the guidelines listed
below:
Tree limbs should be tied in bundles not longer than 4 feet and no
wider than 18 inches in diameter; and
Grass, leaves, or clippings should be placed into a cardboard box,
plastic bag or other container, so it can be picked up quickly and
..won't be blown away before the refuse truck arrives. The weight
of the container and its contents must not exceed 75 lbs. The
container must be set at the curb for pickup.
BULKY OBJECTS/LANDFILL.USAGE
We will pick up. large objects that won't fit in the refuse trucks.
.This would include objects such as sofas, refrigerators, staves,
mattresses, hot water heaters, etc. You must call the Sanitation
Division (356-5186) for this service. When .you call we will
.arrange aday for you toput your bulky object out for pick-up.
This service is extended ONLY to our customers... not to those who
have private refuse collection service.
Ifyou have a large amount of brush or refuse and would like to
dispose of it yourself, we encourage you to use the Iowa. City,
`landfill. There"is a small charge based on the with of the refuse
taken to the Landfill. For information on Landfill usage fees
call: 356-5186. The Landfill is open Monday -Saturday, 6 a.m. to
5p.m."and Sundays 7 a.m, to Noon.
(Reproduced from the Iowa City's Refuse Collection Service
Guidelines)
/0? f A
a'
1.
YARD WASTE
If you have yard wastes you should follow the guidelines listed
below:
Tree limbs should be tied in bundles not longer than 4 feet and no
wider than 18 inches in diameter; and
Grass, leaves, or clippings should be placed into a cardboard box,
plastic bag or other container, so it can be picked up quickly and
..won't be blown away before the refuse truck arrives. The weight
of the container and its contents must not exceed 75 lbs. The
container must be set at the curb for pickup.
BULKY OBJECTS/LANDFILL.USAGE
We will pick up. large objects that won't fit in the refuse trucks.
.This would include objects such as sofas, refrigerators, staves,
mattresses, hot water heaters, etc. You must call the Sanitation
Division (356-5186) for this service. When .you call we will
.arrange aday for you toput your bulky object out for pick-up.
This service is extended ONLY to our customers... not to those who
have private refuse collection service.
Ifyou have a large amount of brush or refuse and would like to
dispose of it yourself, we encourage you to use the Iowa. City,
`landfill. There"is a small charge based on the with of the refuse
taken to the Landfill. For information on Landfill usage fees
call: 356-5186. The Landfill is open Monday -Saturday, 6 a.m. to
5p.m."and Sundays 7 a.m, to Noon.
(Reproduced from the Iowa City's Refuse Collection Service
Guidelines)
/0? f A
SLUDGE FORCE MAIN
CITY OF IOWA CITY IOWA:
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CONSTRUCTION ACTIVITIES REPORT
PERIOD ENDING: JUNE 30, 1969
SOUTHEAST INTERCEPTOR SEWER PROJECT
Construction of the Snyder Creek Segment has progressed to a
point in front of Lakeside. Apartments. Top soil stripping and
sub -cutting. -activities have started north of Highway 6, along
the Proctor. & Gamble. and Sheller Globe properties, in
preparation. for sewer that will be installed during July.
Hollywood Boulevard between Lakeside Drive and Bon Aire Mobile
Home Court has been re -opened to traffic.
Progress t buckled. Fortunately,
an the sheeting.aroundthe.Highway,-6boring
pi
no one was injured. It was
.discovered .that the boring pit subcontractor mistakenly did
not drive the, sheeting.,deep,enough. Despite ,this setback,
the Snyder Creek Segment remains well ahead of schedule.
Construction of the Outfall Segment is nearing completion .as
the pipe construction has entered the South Wastewater
_Treatment,facility site. Sewer ..construction and restoration
of Nursery Lane should be completed during July.,.._..
Although construction of the sewer is going well, there were
two. accidents: aminor auto accident on Sand Road and a
car/motor., grader,collision on Nursery Lane.. -There was also
domestic well problem that Kent Braverman attributed to the
de-watering,activities.
Three change orders were
processed in June. All three were
changes. on, the .0utfalI Segment designed to reduce future
_operation andmaintenance costs.
„�..,Dr.'RichardG. Bake
' -i. ... �� �r,. Professor of Geology at the University
of Iowa, has been studying the organic matter excavated from
' the projects. The preliminary results from his study are in.
The peat consists primarily of pine needles and moss, and was
deposited between 20,000 and 25,000 years ago when. Iowa City
- was aspruceforest. -; About 113,000 years ago our climate was
so cold there were no trees. Dr. Baker equates the climate
of that period
to that of.Hudson Bay today: About 10,000
years ago a warming trend provided the proper environment for
growing a forest of oak and white birch. Well preserved logs
1
/0?4f3
from both types of trees were unearthed at the South
Wastewater Treatment site during excavation for one of the
clarifiers. Dr. Baker is particularly excited about this
find. Radiocarbon dating indicates that these logs are
approximately 10,200 years old.
II. BENTON STREET INTERCEPTOR SEWER PROJECT
The Benton Street Interceptor Sewer Project is nearing
. completion. All sanitary sewers and storm sewers are complete
and in operation. Pavement restoration is expected tobe
completed by July 10. Unfortunately, the hot, dry weather
make it necessary to postpone sodding and seeding until more
favorable conditions prevail. -
As with most projects nearing completion, there were a number
of change orders processed this month to formalize cumulative
variations from the plans and specifications. The good news
is that one change order is a deduct in our favor, off setting
75% of the cost of the other change orders.
I!I. SLUDGE FORCE MAIN PROJECT
Work on tunneling operations continued during June. The 8"
ductile iron carrier pipe has been delivered so full scale
construction can begin in July.
Tunneling activities at the intersection of Gilbert Street
and Highway 6 are taking longer than expected Utility
conflicts forced the initial boring higher than originally
planned. An assessment of this new elevation concluded that
freezing would likely be a problem given the intermittent
operation' of this main A new tunnel isbeing-bored'to
resolve this problem:' The water department is investigating
the use of the original tunnel for a water main crossing to
supplement a nearby crossing that is undersized. Water mains
have continuous flow that is much lesssusceptible to
freezing.
Tschiggfrie Excavating will use two construction crews on the
Force Main project during the 'month of July in order to meet
the August f completion date. This completion date was
specified to interface with the phased construction of the
North and South Wastewater Treatment Facilities.
0
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from both types of trees were unearthed at the South
Wastewater Treatment site during excavation for one of the
clarifiers. Dr. Baker is particularly excited about this
find. Radiocarbon dating indicates that these logs are
approximately 10,200 years old.
II. BENTON STREET INTERCEPTOR SEWER PROJECT
The Benton Street Interceptor Sewer Project is nearing
. completion. All sanitary sewers and storm sewers are complete
and in operation. Pavement restoration is expected tobe
completed by July 10. Unfortunately, the hot, dry weather
make it necessary to postpone sodding and seeding until more
favorable conditions prevail. -
As with most projects nearing completion, there were a number
of change orders processed this month to formalize cumulative
variations from the plans and specifications. The good news
is that one change order is a deduct in our favor, off setting
75% of the cost of the other change orders.
I!I. SLUDGE FORCE MAIN PROJECT
Work on tunneling operations continued during June. The 8"
ductile iron carrier pipe has been delivered so full scale
construction can begin in July.
Tunneling activities at the intersection of Gilbert Street
and Highway 6 are taking longer than expected Utility
conflicts forced the initial boring higher than originally
planned. An assessment of this new elevation concluded that
freezing would likely be a problem given the intermittent
operation' of this main A new tunnel isbeing-bored'to
resolve this problem:' The water department is investigating
the use of the original tunnel for a water main crossing to
supplement a nearby crossing that is undersized. Water mains
have continuous flow that is much lesssusceptible to
freezing.
Tschiggfrie Excavating will use two construction crews on the
Force Main project during the 'month of July in order to meet
the August f completion date. This completion date was
specified to interface with the phased construction of the
North and South Wastewater Treatment Facilities.
0
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IV. PICTURES
The pictures of the projects are on display in the lobby of
the Civic Center and on the upper level of. the Iowa City
.Library and these pictures are being updated periodically.
Please stop by and look at them.
Respectfully submitted
Richard A. Fosse, P.E.
Projects Manager
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ORIGINAL APPROVED
CONTRACT CHANGE
AMOUNT ORDERS
$8,118,265.62 $5,272.52
1,133,260.35 3,117.80
128,060.25 .OD
COST ANALYSIS
CITY OF IDNA CITY, IONA
JUNE 1989
EPA COMMUNITY
EARNED PAYMENT BRANT DEVELOPMENT I
CURRENT THIS EARNED ELIGIBLE BLOCK BRANT PERCENT
ESTIMATE MONTH TO DATE TO DATE TO DATE ,. COMPLETEI
$8,153,538.31 $1,026,507.95 $3,510,831.18 $1,100,512.9/ f.OD 12.001
1,136,708.15 .213,191.97 .$1,112,121.06 117,682.05 215,000.00 9B.OD1
1
i
CONTRACT DESCRIPTION
SOUTHEASTINTERCEPTOR
- BENTON STREET INTERCEPTOR
SLUDGE FORCE MAIN
t
..$BASED ON DOLLAR COMPONENT
1
,
..a
i
1 J.
: 1r
ORIGINAL APPROVED
CONTRACT CHANGE
AMOUNT ORDERS
$8,118,265.62 $5,272.52
1,133,260.35 3,117.80
128,060.25 .OD
COST ANALYSIS
CITY OF IDNA CITY, IONA
JUNE 1989
EPA COMMUNITY
EARNED PAYMENT BRANT DEVELOPMENT I
CURRENT THIS EARNED ELIGIBLE BLOCK BRANT PERCENT
ESTIMATE MONTH TO DATE TO DATE TO DATE ,. COMPLETEI
$8,153,538.31 $1,026,507.95 $3,510,831.18 $1,100,512.9/ f.OD 12.001
1,136,708.15 .213,191.97 .$1,112,121.06 117,682.05 215,000.00 9B.OD1
1
CHANGE ORDER STATUS REPORT
CITY OF IOWA CITY
SEWER PROJECTS
THRU JUNE 1989
CHANGE
ORDER
TIME
NO. DESCRIPTION AMOUNT
DATE
EXTEND
DAYS
SOUTHEAST INTERCEPTOR SEWER PROJECT
i.
Updates Davis -Bacon Wage
Rates $ 0.00
4/10/89
0
2 Eliminates easements
along Brookwood Drive 0.00
5/ 2/89
0
i
iy! �,
3 Modifies pipe bedding
requirements .
000
• 5/ 3/89
0
"0
4 Installation of standpipe
to relieve hydrostatic
pressure 1,950.00
5/22/89
0
.5 Construction of concrete
collar for long term
stability at junction
of 60" Outfall Sewer &
Outfall Structure. 787.50
7/ 5/69
0
6 Construction of cutoff
wall in pipe bedding at
Station 16+00 of the
Outfall Sewer to prevent
Possible piping of
ground water through
aggregate bedding. 600.00
7/,5/89
0
7 Raise low areas of
Nursery Lane grade to
Prevent excessive snow
drifting. 1,935.02
7/ 5/89
0
BENTON STREET INTERCEPTOR SEWER PROJECT
Updates Davis -Bacon Wage
Rates 0.00
3/28/89
0
/0?
7
Increase Intake Size and
Replace Top of Manhole
600,00
4/ 4/89
0
3
Substitution of native
materials for aggregate
backfill materials
(10,672.00)
7/ 5/89
0
4
Repair existing manhole
on sanitary sewer
500,00
7/ 5/89
O
5
Extension of 62" x 102^
storm sewer for compati-
bility with existing
terrain.
3^520.80
7/ 5/89
0
a
4" sewer services omitted
from hid but listed for
' payment in the specifi-
cations.
4,374^00
7/ 5/89
0
7
Construction of concrete
`
drainage -way by Hartwig
Motor's to maintain
'
drainage on to Benton
Street.
750^00
7/ 5/89
O
�
Use of maintenance mix
'
on the *est half of
Giblin Drive to expedite
restoration.
755^00
.
7/ 5/79
0
'. 9
Construction of alley
`
/
type storm sewer intake
`i
on Michael Street 11500^00
7/ 5/89
O
10
Removal and replacement �
of 18" storm sewer to
`
avoid water main
conflict 1'950^00� �
7/ 5/89
O
�1
Installation of 18"
/
`f}aired end section,
southsidn of the rail~
road tracks near Green-
wood Drive, required
for Proper restoration
of storm sewer
425^00
7/ 5/69
V
SLUDGE FORCE MAIN PROJECT
Update Davis -Bacon wage
,
Rates
0.04
3/28/89 0
/
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Flood of Newsprint. _
ly �< Erodes Success
Of Recycling.
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Garettepholo by L.W.Ward
Academy graduates
The 1989 Cedar Rapids Police Academy graduates: (front row, left to right) Officer Paul Kuhlman, Cedar
Rapids police; Officer David Zahn, Cedar Rapids police; Officer Erlk,Llppold, Iowa City police; (second
row) Officer Brian Been, Cedar Rapids police; Officer Scott Williams, Linn County Sheriffs Dept.; Michael
Martens, Cedar Rapids police. With the badges and fresh law enforcement uniforms the six officers
received certificates for completing the 13 -week classroom portion of their pollee training. More than 50
friends, family, fellow officers, and commanders were in attendance at the Police Academy graduation
ceremony held Friday afternoon in Beems Auditorium at the Cedar Rapids Public Library. Awards were
presented to high achieving officers. Officer Lippold received the award for academic excellence. Zahn
received the physical fitness award.
JORM MICROLAB
TARGET SERIES MT -8
PRECEDING
DOCUMENT
Oazene photo by L.W. Ward
Academy graduates
The 1989 Cedar Rapids Police Academy graduates: (front row, left to right) Officer Paul Kuhlman, Cedar
Rapids police; Officer David Zahn, Cedar Rapids police; Officer Erik.Lippold, Iowa City police; (second
row) Officer Brian Been, Cedar Rapids police; Officer Scott Williams, Linn County Sheriff's Dept.; Michael
Martens, Cedar Rapids police. With the badges and fresh law enforcement uniforms the six officers
received certificates for completing the 13 -week classroom portion of their police training. More than 50
friends, family, fellow officers, and commanders were in attendance at the Police Academy graduation
ceremony held Friday afternoon in Seems Auditorium at the Cedar Rapids Public Library. Awards were
presented to high achieving officers. Officer Lippold received the award for academic excellence. Zahn
received the physical fitness award.
NEIGHBORHOOD CENTERS OF
JOHNSON COUNTY RECEIVED JUL 101989
P.O. Box 2794 • Iowa City, IA 52244 • (319) 354-2886
July 3, 1989
Dear Friends and Supporters of the Neighborhood Center,
Since our services now extend beyond the Willow Creek area, we have
changed our name from the Willow Creek Neighborhood Center to Neighborhood
Centers of Johnson County. The neighborhood -based program in southeast Iowa City
(including the Cedarwood Apartments) will be the Broadway Street Neighborhood
Center. The program at the Pheasant Ridge Apartments (formerly known
as Mark IV) will be called the Pheasant Ridge Neighborhood Center.
i
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