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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 i i, i 1 I I i 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 i i, 1 I 1 , ill i 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 ®1= i f 1 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 ®1= 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 I, ' 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. bj/pc2 f 1 I' II ! I` _I TAX ABATEMENT IN IOWA CITY _ Year of Type of Assessed Value Added by Iowa City Tax i I I. - 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] ri L1✓ i Iowa City Tax i I I. 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. i I 'I 1 1 i 1 I, l it i I 'I 2 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 3 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 INS! i j i j r I i ( I. ) ii ' i 11' j L li INS! i j i j r ,. L r 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 i AMA i I i , i Ii .. E i F{�f 1 r , 1 � I i i ,. L r 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 i AMA i I i Ii .. 1 � I i i j .2 - 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: i l /RJL 11 � 4 _3_ .o r� i 1 i i r any further construction work at the site in question (Site _3_ .o r� In October 1885, a temporary injunction was issued by the.•' ^' 1 Honorable Van D. Zimmer enjoining the Defendant from performing r 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 I 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 I � effort to obtain a variance through the Board of Adjustment. In I short, Mr. Yocum's actions in placing the addition to the quonset -, I �. but were made in knowing violation of Iowa City ordlnencea, and II. the structure was illegally placed on the site. I .. � l 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 i p.m. IC he does not remove the structure as ordered, the court will consider an application by the City to have City employees I i I I i s I r. ' j 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. i _ I. VERN ROBINSON, Judge,. 6th Judicial District II r us Dour I 1 I. I waw re s I ey cae Dted's Office Prionnel b•qa r•:, Im Wong Document i I 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. i _ I. VERN ROBINSON, Judge,. 6th Judicial District II r us Dour I 1 I. I waw re s I ey cae 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. 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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 ! M i 1 i 4 lI roff i i. . 1 i c ` .� � �� 'v � 31tqa� 6) »� June 30 1989 //'-'/1(� ~' -' V 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 { � i I 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: i. i 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 i it j li i 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 i it li 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 i _ 3 i : 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 .$1,112,121.06 117,682.05 215,000.00 9B.OD1 1 i CONTRACT DESCRIPTION SOUTHEASTINTERCEPTOR - BENTON STREET INTERCEPTOR SLUDGE FORCE MAIN t ..$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 / ` , -'- R'$ WORD SATURDAY. JUNE IJ, 1911 r. AT. Flood of Newsprint. _ ly �< Erodes Success Of Recycling. Ate..yatDjMur p, ,' A 6e u. n wll awa. Nll .Y —1PA.M ' wRIm.lwwa u umww n , my .L m1114.m MYw nmemlw ww. w. m.n. 1mw..r uu. nu. NWU X. craalu.MT.ls 1° IIII��M iI[Inniwt-- f.MelsWa..l Tran wadi4ly C1W .J., I T Jaw Iwppry" awMq I nayaM ' awnta .M...11 IarytM Y lwn ' ! wM1ml mmwa) nw WII myaM n•rq I I 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 Ii,'I