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HomeMy WebLinkAbout1987-06-02 Info PacketCity of Iowa City MEMORANDUM - DATE: May 29, 1987 TO: City Council FROM: City Manager RE: Recommendations from Citizens' Committee on City Revenue Attached are a number of documents representing the opinions/recommendations of the Citizens' Committee. Please note that the Committee was divided with respect to its final recommendation. The Citizens' Committee has recommended that time be made available at your Monday, June 15, informal meeting to discuss the recommendations. cc: Rosemary Vitosh Dale Helling Citizens' Committee on City Revenue SOP1. 1 .P' TO: Iowa City City Council RE: Revenue Options In order to provide the approximate ;1,000,000.00 necessary in fiscal year 1989 to maintain the basic package of services provided by the City, the maintenance of which services is of paramount importance to the undersigned and to the majority of the remainder of the committee, the undersigned recommend to the City Council that the Council put to the voters the option to levy a local sales tax at the rate of 1%. The reasons for this position are: 1) The sales tax can provide additional revenues derived from a broader base of the users of city services than property taxes can provide. 2) The sales tax can provide, in addition to meeting current revenue requirements, si nificant ro er tax relief (an estimated ;1,000,000.00 in relief in fiscal year 1989 or a evy . r 3) By putting the sales tax option on the ballot, Council can allow the voters to voice approval of the current service package and to tax themselves to pay for it. 4) Reliance on increasing property taxes, even on a temporary basis, is F unwise because: F a)The maximum levies necessary to maintain existing service levels leave no financial flexibility to deal with emergencies or improve cash reserve positions. b) Fixed-income taxpayers, such as the elderly, as well as first-time home buyers, are adversely affected by increased property taxes. c) Property taxes have been increased recently for the swimming pool project. d) Property taxation is so heavily regulated by the state as to be not entirely reliable as a long term planning device, with no immediate ability to alter this regulatory scheme. e) Sales taxes are more responsive to economic changes than are property j taxes. 5) If property taxes are solely relied upon to provide needed revenue, Political pressures on the Council will serve to reduce services, rather than i increase expenditures, which service deductions will take place at the expense of those who cannot afford to purchase replacement services. We further recommend increasing the hotel -motel tax by 2%. Res ectful / ` G/�2 )y submitted, a�/ ,P' May 27, 1987 TO: City Council FROM: Ten Members of the Citizens Committee, representing the majority view of the committee REGARDING: Alternative strategies to balance the city budget: Property tax increase and other recommendations 1. We believe the present package of revenue options is insufficient for Iowa cities, given the cutbacks in State and Federal aid. We believe more options should be created, such as local income tax, a local excise tax on tobacco and alcohol, or a statewide income tax or sales tax redistribution. 2. In order to maintain quality city services and assuming that present revenues will not cover expenses, we recommend that the city temporarily increase property taxes above the present 6 percent policy. if this were done for no more than two years, a property tax revenue base would be established that would enable the city to return to the no more than 6 percent increase policy. (See Attachment A for the reasons for our support of the property tax alternative.) We also recom- mend that the hotel -motel tax be increased. 3. We recommend that the supplemental recommendations outlined on Attachment B be explored by the City Council and staff. Respectfully submitted, Clayton Ringgenberg Anne Rawland Richard Stevenson Jesse Singerman David Hughes Thomas Goedkin Ernest Lehman Mace Braverman David Leshtz Peter Fisher i 0 .V' Attachment A REASONS FOR SUPPORTING THE pROpERTy TAX ALTERNATIVE t 1. Fairness - Most research has concluded that the property tax, while it is regressive among lower to middle income households (taking a larger proportion of incomethe lower one's income), is probably progressive at higher income levels. - Regressivity among low-income elderly and disabled households is reduced or eliminated in Iowa through the elderly and disabled property tax relief program. - Owners of commercial property (including rental housing) shift some or all of the property tax onto renters and customers by charging higher prices or rent to cover their tax bills. Thus University students and non-resident shoppers pay a share of property taxes indirectly, and help finance the city services that benefit them. - Most tax -supported city services are, at least in part, services to property--e.g., police and fire protection, streets. fromthese0services but doenot mpt contribute,�owithrtheenefit exception of the University fire service contract.) - Ownership of property, while not well related to current income for some households, is a good indicator of lo ability to pay, ng -run 2. Net Burden on Iowa CityResidents. - The property tax, unlike the sales tax, is fully deductible on state and Federal income tax returns. For example, a $100 property tax increase for someone in the 286 Federal tax bracket and the 106 state bracket really costs only about $68. (This benefits renters as well, since landlords deduct property taxes and thus have less to pass on.) - Property taxes on industrial and utility property (about 126 of the tax base) are probably largely paid by owners and customers residing outside Iowa City, who would be beneficiaries of sales -tax financed property tax relief. IM .P' 3. Effects on Economic Decisions. - There is no conclusive evidence that property tax rates have a significant effect on location decisions of businesses. - The property tax would not affect retail sales patterns. 4. Responsiveness and Stability. Partly because of the time lag between reassessments and tax collections, the property tax is less responsive to changes in the economy (both upswings and downswings) than sales or income taxes. This makes the property tax more stable and predictable, which in turn means that the city can avoid taxing residents in order to build a larger cash reserve (such as would be needed with a sales tax). 5. Revenue Adequacy. - currently there is about a $2.5 million cushion remaining in the property tax (i.e., additional revenues obtainable by raising the general fund and transit levies to the maximum, shifting all employee benefits out of the general fund, and adopting an emergency levy.) - Budget projections indicate that if the 68 policy were relaxed for fiscal 1989 and revenues increased to cover the projected $923,000 deficit, tax increases for the following three years could be held to around 4% on average; the general fund levy would remain below $8.00 per thousand and the tax cushion would probably remain in excess of $1.5 million (assuming no further cuts in state and federal aid programs). 6. Government Accountability. - Taxpayers are very aware of how much they pay in property taxes (unlike the sales tax); the property tax hurts. This tends to force local government.to scrutinize tax increases more carefully and search more diligently for ways to economize and operate more efficiently. - The property tax rate can be raised or lowered (within the state mandated ceiling) at the discretion of the council; no referendum is required to change the rate. 2 "M Attachment i POSSIBLE SUPPLEMENTAL RECOMMENDATIONS A. MAYOR AND COUNCIL APPOINT A BLUE RIBBON ECONOMY COMMITTEE [ TO REVIEW ALL CITY OPERATIONS B. COUNTY AND CITY GOVERNMENTS APPOINT A CITIZENS GROUP TO MAKE SUGGESTIONS FOR ELIMINATING DUPLICATION OF GOVERNMEN- TAL SERVICES IN THE JOHNSON COUNTY AREA C. MAYOR AND COUNCIL APPOINT A SPECIAL CITIZENS' COMMITTEE TO REVIEW BUS FINANCING AND OPERATIONS D. HAVE A CITIZENS' TASK FORCE MAKE RECOMMENDATIONS FOR POL- ICE/FIRE COORDINATION E. STUDY THE POSSIBILITY OF ADDITIONAL CHARGES FOR SERVICES TO PROPERTY EXEMPT FROM THE PROPERTY TAX F. FIND WAYS TO SPREAD OUT DEBT SERVICE COSTS TO REDUCE THE PROPERTY TAXES LEVIED FOR THIS PURPOSE G. EXPLORE THE COMMUNITY FUND CONCEPT: ARE MADE BY PRIVATE DONORS FOR COMMUNITYOFACILITIEST(CAPI- TAL PROJECTS) H. EXPLORE USING MORE ENTERPRISE AND OTHER NONTAX REVENUES FOR GENERAL FUND PURPOSES 2. IF THE SCHOOL DISTRICT RECEIVES SUBSTANTIAL ADDITIONAL STATE AID FROM THE 1987 LEGISLATURE, GET A COMMITMENT THAT SCHOOL TAXES WILL NOT INCREASE J. SET UP A PROGRAM TO LOBBY STATE AND FEDERAL GOVERNMENTS TO ALLOW MUNICIPALITIES MORE COMPREHENSIVE AND CREATIVE TOOLS FOR GAINING REVENUE K. CITY GOVERNMENT EXPLORE WAYS TO REDUCE PROPERTY TAX SUB- o. SIDIES TO THE AIRPORT f t i r THE NEED FOR BETTER ALTERNATIVES The Citizens Committee on City Revenues finds each of the alternatives available to us --property tax increases, and local option sales and vehicle taxes --to be undesirable in many respects. We urge the State Legislature to reevaluate the entire issue of municipal home rule (or lack of it) with respect to taxation and to grant the citizens of this State greater flexibility to deal with budget problems at the local level. In addition, we urge consideration of the following additional local option taxes: (1) A surcharge on the state income tax liability of residents. (2) A local tax on earnings of all those deriving income within a city. (3) A combination of the first two, with the earnings tax deducted from the surcharge. (4) A local motor fuel tax. (5) A local excise tax on tobacco and alcohol. I .P' • CITY OF IOWA CITY CHIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-50100 L 29 May 1987 The Honorable Mayor William Ambrisco and Members of the City Council - Civic Center 410 E. Washington Street Iowa City, Iowa 52240 Re: Letter of Resignation Dear Mr. Mayor and Members of the City Council: This is to notify you that I have accepted a position in private law practice with the firm of Hayek, Hayek, Hayek and Holland. Accordingly, I shall be resigning my position of Assistant City Attorney, effective the end of the day on duly 3, 1987. My employment with the City has been an enjoyable and rewarding experience, and I leave with fond memories. Sincerely yours, Vf vid Evid E, Bro Assistant Ci Attorney cc: Terrence Timmins, City Attorney ' SDS/ 1 .P City of Iowa City MEMORANDUM DATE: May 27, 1987 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: Council Chambers Communication System Bid proposals were submitted by three vendors for the Chamber Communication System. Low bid was $10,800 (see attached memo). The FY88 budget includes $7500 for this project. It is recommended that the remaining $3300 be taken from the contin- gency fund. Unless there are further questions we intend to proceed with acquisition and installation of the equipment. .P' RFP 188-2 CHAMBER'S COMMUNICATION SYSTEM - RECOMMENDATION - ams y Proposals for the Chamber's communications system were received from the following three firms: Company Proposed System Cost Woodburn Sound Service, Iowa City $10,715.78 Communications Engineering, Cedar Rapids $13,265.77 D.B. Acoustics, Marion $14,626.00 Proposals were evaluated by City staff members from the Clerk's office on, Cable TV, and Purchasing, as well as Larry Thoen from U of I AV Center. Based upthe evaluation, an award is recommended to Woodburn Sound Service of Iowa City. The project consists of a complete new communica- tion system for the Council Chambers, including all equipment, installa- tion, training and one year warranty. The system includes state of the art sound amplification, mixing, and equalization equipment as well as new cabling and media hookups, to produce much higher quality amplified, recorded and broadcast sound. I. The microphones are uni-directional, low profile gooseneck type, mounted 4 on the podium and council/staff tables. The system is voice activated so that normally only one mic is on at a time (unless two or more persons Er speak at the same time). Each mic includes a momentary mute switch to allow private conversations when necessary, �! n The audience podium mic and a staff mic will each have a jack for plugging in a separate mic. This will enable Mayor or Councilmembers to make ppresentations in the ersonstospeak without ei tstanding Council,ont of the podi m, and staffmmbers/public to speak during presentations. Speakers will be located in the Council staff area (3), audience area (6), and lobby (1, with a volume control switch within easy reach). 1 The tape deck will be mounted permanently to the Clerk's table. The auto reversing feature will enable the Clerk to record 90 minutes without stopping to change a tape. An option to amplify and record audience responses from an where in the Chambers ($1500 to install 4 mics above the audience area was evaluated but is not recommended. Such mics would need to be omni -directional to pick up a voice from anywhere in the roam, and thus would amplify/record everything in the Chambers, including air handlers and crowd noise. Upon Council approval, an order will be placed to Woodburn Sound Service. Julyl31,onof 1987.theWoodburndwillmunication sch schedule andtem is coordi atectinstalatiionatand training with the City Clerk, to prevent any unanticipated or undue inter- ruption of the Council Chambers or its operations. M RECEIVED MAY 131987 Bicyclists of Iowa City, Inc. POST OFFICE BOX 846 0 IOWA CITY, IOWA 52244 n� �Dtcf,t-� May 10, 1987 City Manager City -of Iowa City 410 East Washington Iowa City, IA 52240 Dear Sir, On behalf of The Bicyclists of Iowa City, I would like to thank you for the use of signs, barricades and the race permit for the Tenth Annual Old Capitol Criterium, on Sunday, April 26, 1987. The Old Capitol Criterium is a testimonial of the exploding popularity of bicycle racing as a sport and a spectator event. The weather was beautiful for this year's race, consequently attracting an estimated 7,000 spectators throughout the day. We had approximately 300 United Slates Cycling Federation racers and an Increase in citizen and kiddy participation. I feel that much of our increase in participants and spectators is due to help such as you gave us this year. One of the nicest things about such an event is working with people such as you. Thanks again for your help in making this event such a great success Sincerely 0-- tT I 17a—, OloriaA. Marchmen Publicity Director for BIC 1109 Tower Court Iowa City, IA 52240 .V' 807 .P' JUNE 1987 S m T W TH f S BAM-Magistrate Court (Chambers) OAM-Staff Meeting (Chambers) BAM-Magistrate Court (Chambers) SIAM 7:30PM-Informal 7:30PM-Council -Fire Truck Bid Conf (Conf Room) ( Council (Chambers (Chambers) 7:30PM-Formal P&Z 7:30PM-Informal (Chambers) P&Z (Sr Center) •30PM-Riverfront ECorton (Senior Ctr) 7 � 78:30AM-Housing /010AM-Staff Mtg //7AM-Treasury BAM-Magistrate Appeals Board (Public Library) (Conf Room) PM-.I000G Bd of Dir Employees (ConfRn 5 Court (Chambers) 9AM-Housing Comm (Transit Facility) 8AM-Magistrate (Public Library) Court (Chambers) 11:30AM-Em loyee Adjustmentd Chamb) ( 7:30PM-Resources Luncheon (Chamb) '30PM-Historic Preservation Corton 7:30PM-Airport Cc Conservation Comm (Public Lib, B) (Public Library,B) ransYi (Tit Facility; � /16-MagistrateBAM-B Court (Chambers roadband /7 LOAM -Staff Meeting 1: 8AM-Magistrate 19 20 i 2PM-Fire Truck Bid Telecoimnunication Comm (Chambers) ( Conf Room) Court (Chambers) A Opening (Conf Rm) -Senior Center 3:30PM-Committee o Community 4PM-Design Review Colmnittee (Public Comm (Sr. Center) 7:30PM-Informal Needs (public Lib, B) Llbrar C 7:30PM-Formal P&Z PZ (Sr. Center) 7& :30PM-Informal 7;30PM-Council (chambers) Chambers Council (Chambers (Chambers) A2 23 X4 25 6 9� ISI 8Magistrate Cou Court (Chambers) OAM-Staff Meeting g BAM-Magistrate Court (chambers) 8AM-Parks (Conf Room) n (Rao Rec Center) followed 7:OOPM-Human Right by parks tour Comm (Senior Ctr) 4PM-Library Board (Public Library) A9 30 8AM-Magistrate Court (Chambers) 7:30PM-Informal O Council (Chambers wed rV 7:30PM-Informal 7:30PM-Council P&Z (Sr. Center) (Chambers) .1. r Johnson County Council of Governments 410EVvbshingtonR bvnCity bvvo52240 i rr*000 jDate: May 12, 1987 To: City Manager and City Council, City of Iowa City From: Jeff Davidson, Transportation Planner Re: Report Transmittal Attached is a copy of the 1987 Iowa City Transit On -Board Ridership Survey Final Report. This study was conducted by JCCOG in April at the request of Iowa City Transit. The report contains general information pertaining to Iowa City Transit riders which will assist the Transit Department in directing their marketing efforts. The survey will be given again next year so that we can assess any changes in ridership following the service reductions which will be implemented July 1. Feel free to contact me at X5252 if you have any questions or comments regarding this report. tpl/7 cc: Don Schmeiser a00 5 Or V Sri Iowa City Transit On—Board Ridership Survey Prepared by the Johnson County Council of Governments March 1981 Jeff Kevin Davidson, L DoyleAs tr.aTransportation nsportation aPlanner Steve Beningo, Planning Intern Mimi Hartwell, Planning Intern Steve Noble, Planning Intern Mike Singer, Planning Intern and John Lundell, Iowa City Transit Manager Preparation of this report was financed in part through a Federal grant by the Urban Mass Transportation Administration under the provision of Sec- tion 8 of the UMT Act of 1964, as amended. E f i j EJ e Ij �l fJ r �i 1 ' J j Iowa City Transit On—Board Ridership Survey Prepared by the Johnson County Council of Governments March 1981 Jeff Kevin Davidson, L DoyleAs tr.aTransportation nsportation aPlanner Steve Beningo, Planning Intern Mimi Hartwell, Planning Intern Steve Noble, Planning Intern Mike Singer, Planning Intern and John Lundell, Iowa City Transit Manager Preparation of this report was financed in part through a Federal grant by the Urban Mass Transportation Administration under the provision of Sec- tion 8 of the UMT Act of 1964, as amended. TABLE OF CONTENTS: Introduction . . . . . . . . . . . . . . . . . . . . I Survey Design and Sampling Methodology. . . . . . . 3 Results . . . . . . . . . . . . . . . . . . . . . . 4 Summary . . . . . . . . . . . . . . . . . . . . . . 14 Appendix . . . . . . . . . . . . . . . . . . . . . . 15 ME I i I 1 I E I.. 1 S I r; ? I i 4 i� II rLJ II u 3 1.1 . a J I .o• y i C 'J i i TABLE OF CONTENTS: Introduction . . . . . . . . . . . . . . . . . . . . I Survey Design and Sampling Methodology. . . . . . . 3 Results . . . . . . . . . . . . . . . . . . . . . . 4 Summary . . . . . . . . . . . . . . . . . . . . . . 14 Appendix . . . . . . . . . . . . . . . . . . . . . . 15 ME .a• INTRODUCTION: Iowa City Transit provides fixed route transit service on 14 routes Monday through Saturday, from 6 a.m. to 10:30 p.m. On most routes Monday through Friday service is at half-hour headways and at hourly headways on Saturday. Night service is hourly Monday through Saturday. The base fare is 50Q and an unlimited ride monthly pass is available for $18. For the past several years Iowa City Transit has been experiencing annual operating deficits due to declining ridership and increasing operating costs. This resulted in a decision by the Iowa City City Council in February 1987 to implement the following service reductions: 1. Cut Saturday night service after 7:00. 2. Reduce mid-day service 50%. 3. Reduce night service 50%. 4. Reduce Seventh Avenue route service 50%. 5. Combine North Dubuque and Manville Heights routes. 6. Increase price of monthly pass and Saturday fare. The intention of this survey is two -fold. First, it is desired to collect general information pertaining to the characteristics of Iowa City Transit users and to learn the perceptions users have of the system. Accordingly, a questionnaire (Figure 1) was developed to address the following specific points: 1. How often do people ride the bus each week? 2. For what purpose do they ride? 3. Of what significance is transit to CBD shopping activity? 4. How do people pay their fare? 5. What is the main reason people ride Iowa City Transit? 6. What are riders' perceptions of Iowa City Transit? 7. What is the age and income distribution of persons who ride Iowa City Transit? The second purpose of the survey is to record "before" information prior to the service reductions being implemented on July 1, 1987. This will allow the survey to be given again next year and a comparison made to assess the impacts of the service reductions. .o• s � I RDiowa city transit On -Board Survey 1,987 Iowa City Transit is conducting a survey of bus riders. Please take a few minutes to complete this survey, and place it in the containers provided at the front and rear of the bus as you leave. If you have previously completed this survey, you need not complete another one. Thank you for your cooperation. I. How often do you ride the bus? (One-way trips) _Once a week _2-4 5-7 _8-10 10+ 2. (a) What is the primary purpose of your trip? (Check one) Work Shopping Recreation School _Medical =Other (b) If you answered "Shopping" in part (a) how much do while shopping today? you expect to spend _Less than $10 _S10-$49 _$50-514 _$75+ (c) If you answered that your primary trip purpose is other than shopping, but also expect to do some shoppingtoday, how much do you expect to spend? _Less than S10 _$10-549 _550-514 _575+ 3. Now did you pay your fare? Cash Monthly pass _Transfer _Strip Ticket --Other 4. What is your main reason for choosing to ride the bus? (Check one) _I have no other means of transportation. _I feel it is more economical to ride the bus. Parking is a problem. _I prefer not to cope with traffic. I think the bus is better for the environment. The bus is more convenient. =Other reasons 5. Now do you rate the following aspects of Iowa City Transit? Very Very Good Good Fair Poor Poor a. Frequency of buses b. Schedule reliability — — --- c. Amount of fare — — d. Walking distance to — — — bus stop e. Driver courtesy — — 6. What is your age? Under 18 18-25 26-60 -60+ 7. What is your approximate family income? __Under $10,000 -_SIO,000-519,999 _520,000-539,999 8. Additional Comments; _ $40,000+ %of .P' j SURVEY DESIGN & SAMPLING METHODOLOGY 71 Sampling theory is based on the concept that to assess the characteristics of the entire population. A a given population, it is not necessary to survey tatistically valid manner, will provide an accurate sample, selected in a s representatinn of the population as a whole. The population to be surveyed for this project was pmrso Thehsample IsizeowaCwas 6:00 Transit during the week from 6:00 a.m. to p. number of weekday transit trips, and separated into - developed from the total routes by using the actual average daily ridership by route pair. the various A 20% sample was selected and yielded 62 trips to be surveyed. i, R �{ mber of trips to be surveyed during peak periods and off-peak periods The nui transit trips during each of R u+ was determined by using the actual number of 70% and 30% off -peak. This resulted in 43 peak period be -� these periods: peak trips and 19 off peak period trips to be surveyed. The number of trips to based on the route pair's surveyed on each route pair was then calculated daily ridership. Peak period surveying was done en - ¢ percentage of average in the AM peak so that the data reflected persons traveling into the r tirely i �I CBD. W1 The survey was conducted by JCCOG staff and Iowa City Transit operators on 19, 1987. Each passenger was given a Wednesday, March 18, and Thursday, March boarding the bus and was asked to complete it while on r questionnaire when board. The questionnaires were collected at the end of each trip and coded trip. A total of 1,420 ques- with the route name and departure time of the distributed during the two days. The number returned was i t i .. tionnaires were 1,340,a response rate of 94.4%. J t 1 i I '1 i I 8e9 0 .P' r Q-1 How often do you ride the bus The responses to this question indicate most users of Iowa City Transit ride the system on a regular basis. 82% of the respondents use Iowa City Transit at least five times a week. Specific information was calculated relating how often persons who use monthly Passes eride he bus. s persons of the using naeedmonthly passes eatleasteight times week. 97%ridet lestietimesperwk. Specific information was calculated relating frequency of usage and income level. The analysis shows nearlyhalf the respondents ride ICT at least five times per week and have a family income of less than $20,000/year. 34% ride at least five times a week and have a family income of $20,000/year or more. Specific information was calculated relating frequency of usage and age. 46% of the persons responding indicated they ride at least five times a week and are between the ages of 26 and 60. 25% ride at least five times a week and are between the ages of 18 and 25. The crosstabulation tables containing the above information are included in the appendix. Overall Response Freq. % Once/week 72 5 2-4/week 167 13 5-7/week 292 22 8-10/week 361 27 10+/week 133 TM 1-00— The responses to this question indicate most users of Iowa City Transit ride the system on a regular basis. 82% of the respondents use Iowa City Transit at least five times a week. Specific information was calculated relating how often persons who use monthly Passes eride he bus. s persons of the using naeedmonthly passes eatleasteight times week. 97%ridet lestietimesperwk. Specific information was calculated relating frequency of usage and income level. The analysis shows nearlyhalf the respondents ride ICT at least five times per week and have a family income of less than $20,000/year. 34% ride at least five times a week and have a family income of $20,000/year or more. Specific information was calculated relating frequency of usage and age. 46% of the persons responding indicated they ride at least five times a week and are between the ages of 26 and 60. 25% ride at least five times a week and are between the ages of 18 and 25. The crosstabulation tables containing the above information are included in the appendix. .a• 0-2 What is the 'PrimaryRESULTS; purpose of Your trip? Overall Freq. % Work 97 School 592 52 Shopping 26 44 Medical 2 2 Recreation 13 <1 Other 7 1 1- MI TN Response to this question shows overwhelmingly City Transit to travel to work and to school. When controlled for age the data indicates most "school" respondents are of college ageso(18-25) ns are using Iowa "Work" respondents are between 26 and 60. and most Of the 2% of the respondents indicating shopping as their primary trip pur- pose, 60% said they would be spending between $10 and $49, 32% said they would spend less than $10. Over half of the survey respondents (54%) indi- cated that shopping was not their primary trip purpose, but that they would be doing some shopping during the day. Most (72%) said they would spend less than $10. The shopping trends were the same when the data were controlled for persons going to work and for persons going to school (see appendix for crosstabulation tables). The data for persons travelling to work were also controlled for income and indicated a fairly even distribution across the income scale: Income Level of Persons I Using ICT to Travel to Work riot p Freq. % Under $10,000 $10-$19,999 109 17 $20-39,999 177 240 27 $40,000+ 132 36 3'd'&' TW riot p Q-3 How did You a RESULT Y pay Your fare? Overall Response Freq. % Cash 584 44 Monthly52 Transfer r 615 1 Strip ticket 29 2 Other g 334 1 1 ebb The responses indicate a majority (52%) of riders using a monthly pass to pay their fare. 96% of the respondents used either a monthly pass or cash to pay their fare. The "other" responses consisted of eight persons using an elderly or handi- capped pass and one Bus & Shop validation, rot a RESULTS: Q-4 What is your main reason for riding the bus? Overall Response Freq. % I have no other means of transportation 467 27 Parking is a problem 398 23 I feel it is more economical to ride the bus 341 19 The bus is more convenient 320 18 The bus is better for the environment 92 5 I prefer not to cope with traffic 83 5 Other 46 3 TM To The existence of transit -dependent persons is indicated here, with 27% of the survey respondents indicating they have no other means of transportation besides ICT. Financial considerations, convenience, and parking problems were the other primary reasons listed for using ICT. Traffic and environmental considerations were of less importance. The total number of responses is greater than the number of persons surveyed because some respondents checked more than one item. Although this may over- represent the frequency of one response versus another, it still indicates the primary reasons persons are utilizing ICT. Q-5 How do you rate the following aspects of CT? The following responses indicate a favorable user perception of Iowa City Transit. a. Frequency of Buses Freq. % Very good 724 55 Good 461 35 Fair 117 g Poor lg Very poor 5 <1 1,326 100 90% of the respondents indicated the frequency (headway) of ICT buses is good or very good. b. Schedule Reliabilit Freq. % Very good 788 60 Good 441 33 Fair 82 6 Poor 10 1 Very poor 2 <1 1,323 100 931 of the respondents indicated ICT's schedule reliability is good or very good. c. Amount f Fere Freq. % Very good 443 34 Good 537 41 Fair 291 22 Poor 39 Very poor 7 3 -i <i 1 75% of the respondents indicated the fare level is good or very good. d. Walking Distance to Bus sto Freq. % Very good 833 63 Good 398 30 Fair 68 5 Poor 14 1 Very poor 6 1 1,319 100 93% of the respondents indicated the distance they are required to walk to the bus stop is not unreasonable (good or very good). e. Driver Court Freq, % Very good 618 47 Good 517 40 Fair 144 11 Poor 25 2 Very poor 16 <1 �b 87% of the respondents indicated driver courtesy is good or very good. i..j li i•) i w i Y i I.1 h� �ra 1 �r r� i ti 1 L E II ra 1 I , u CC� rt 1 iI �l f f 1 c. Amount f Fere Freq. % Very good 443 34 Good 537 41 Fair 291 22 Poor 39 Very poor 7 3 -i <i 1 75% of the respondents indicated the fare level is good or very good. d. Walking Distance to Bus sto Freq. % Very good 833 63 Good 398 30 Fair 68 5 Poor 14 1 Very poor 6 1 1,319 100 93% of the respondents indicated the distance they are required to walk to the bus stop is not unreasonable (good or very good). e. Driver Court Freq, % Very good 618 47 Good 517 40 Fair 144 11 Poor 25 2 Very poor 16 <1 �b 87% of the respondents indicated driver courtesy is good or very good. RESULTS: Q-6 What is your age? Overall Response Freq, % Under 18 123 9 18-25 418 31 26-60 745 56 60+ TM48 4 I'OU' The majority of persons utilizing Iowa City Transit are between the ages of 26 and 60. Only 9% are under age 18. 'role .Y' -77 -, k RESULTS: Q-7 Q-7 What is your approximate family income? f Overall Response R Fri_ % Under $10,000 404 $10,000-$19,999 314 32 I $40$20,000+$39,999 330 26 201 16 1249 100 There is tive broad ICT. 57%ahaveafami y incomes sectrumo. less hanof n$20,000vper year9 amonPersons utilizing Specific information was calculated relating income level to transit depend- ency (those who answered "I have no other means of transportation" to question A4). -The information indicates transit dependent lower end of the income scale. 44% of transit dependent persons have family incomes of less than $10,000. Persons tend toward the a! Income Levels of Transit Dependent Persons I Freq. % Under $10,000 190 $10,000-$19,999$20 97 44 23 $40,000+$39,999 78 18 67 15 432 100 k F Specific information was calculated relating income level to elderly persons f who use Iowa City Transit. The responses indicate a broad range of income -' levels for persons over 60 years of age who use ICT. -� Income Levels of Respondents at least 60 Years of Age Freq. % Under $10,000 11 $10,000-$19,999 11 26 $20,000-$39,999 16 26 j $40,000+ 37 V 11 43 100 I .P' r� I� i I SURVEY COMMENTS Questionnaire respondents were given the opportunity to comment on any aspect of the system. 488 comments were received, and all with a frequency of at least three are listed following. Nearly half of the comments were either that the proposed service cuts should not be implemented, or that Iowa City Transit is a very good system. Also notable are certain comments which had a low response frequency. For example, only three persons commented that more bus shelters are needed. I. The proposed service cuts should not be implemented. 2. The bus system is very good. 3. Would support increased fares. 4. If service reductions are implemented I will not ride the bus. 5. Bus service should be increased, not reduced. 6. Bus drivers are rude. 7. Buses should operate on Sundays. 8. Bus drivers are courteous. 9. Bus drivers are reckless. 10. Hourly service on Saturday is an inconvenience. 11. Night service should operate later/more frequently. 12. Transit is a needed/essential public service. 13. Fares should not be raised. 14. Fares should be reduced. 15. The proposed service cuts are justified, 16. Buses do not run on schedule. 17. Need more advertising about the benefits of transit Frequency 114 100 29 26 21 20 18 17 16 15 15 15 13 6 6 6 5 M'1 16. Depend an bus service to get to work. 19. Buses are too crowded. 20. Iowa City Transit should combine with C.4NBl1S 21. Older people need the bus. 22. The bus is better for the environment. 23. Need more bus shelters. 4 4 3 3 3 3 S 1-a t �� IF�( I y s r �r I.� F.1 k Y r Y R pp� III f 1 ti J [ P ��1 J 16. Depend an bus service to get to work. 19. Buses are too crowded. 20. Iowa City Transit should combine with C.4NBl1S 21. Older people need the bus. 22. The bus is better for the environment. 23. Need more bus shelters. 4 4 3 3 3 3 I� i `I P, I "i 1 i SUMMARY: * Most riders are regular users: 82% of the people who ride Iowa City Transit use the system at least five times a week. * The most predominant use of Iowa City Transit is for persons going to work or to school. * Most persons using ICT to go to school are college age. * Very few persons use Iowa City Transit when their primary trip purpose is to go shopping, but over half of ICT riders do some shopping as a secondary activity. * There is a wide range of income levels for persons using ICT, although over half have family incomes of less than $20,000 per year. * Persons using ICT to travel to work, and persons over age 60 tend to be in the middle income categories (family income 510,000-540,000). * 27% of the ICT riders are "transit dependent," i.e., they have no other means of transportation besides Iowa City Transit. Nearly half of the per- sons indicating they are transit dependent have family incomes of $10,000 per year or less. * Most persons pay their fare with cash (44%) or a monthly pass (52%). * Environmental and traffic concerns are not primary reasons that people use ICT. * The user perception of ICT with regard to frequency of bus service, schedule reliability, amount of fare, walking distance to bus stops, and driver courtesy is quite favorable. * Most people who ride ICT (87%) are between age 18 and 60. School children and retired persons make up a small percentage. * When given the opportunity to comment on any aspect of ICT, most persons responded that it is a good system and service should not be reduced. APPENDIX: � 15 SA B �.J If�II f�M I+i L f u 1ryI i k yl I APPENDIX: � 15 Crosstabulation Tables Frequency of Use x Use Monthly Pass ---Use Monthly Pass--- Freq. % Once/week 1 r L.J 2-4 17 2 5-7 102 S 8-10 207 li 10+ TO -F57-'6 368 k 9-5100 i 34 12 �r 70 43 65 26 8 10 91 1 57 10+ 170 183 lei 60 f n �n g IJ P is �J u p i 1-. �I Crosstabulation Tables Frequency of Use x Use Monthly Pass ---Use Monthly Pass--- Freq. % Once/week 1 <1 2-4 17 2 5-7 102 15 8-10 207 30 10+ TO -F57-'6 368 53 9-5100 5224 rot m Frequency of Use x Income Level ---Income--- <E10,000 $10-19,999 $20-39,999 E40,000+ Once/Wk. 20 11 2-4 5224 34 12 5-7 70 43 65 26 8 10 91 69 57 10+ 170 183 lei 60 rot m Frequency of Use x Age ---A9e--- <18 18_25 26=60 60+ Once/Wk. 4 29 2-4 10 36 55 3 5-7 8-10 32 22 90 83 164 12 12 10+ 55 IA7 232 3 rot m Trip Purpose "Work" x Also Will Shop Freq. % Under $10 247 67 $10-549 I 31 $50-574 8 r; $75+ 1 <1 Total 371 100 p. � I! P r J i� J k u V �J LI a ri J t i J i I I i 1 Trip Purpose "Work" x Also Will Shop Trip Purpose "School" x Also Will Sho Freq. % Under $10 247 67 $10-549 115 31 $50-574 8 2 $75+ 1 <1 Total 371 100 Trip Purpose "School" x Also Will Sho Trip Purpose "Work" x Age F_ rte_ % Under $10 265 78 $10-549 75 22 $50-574 1 <1 $75+ 0 0 To -Ma 341 100 Trip Purpose "Work" x Age Trip Purpose "School" x Age Freq. % Under 18 114 19 18-25 292 50 26-60 185 31 60+ 0 0 ri aT 1zrr TM Trip Purpose "School" x Age Freq. % Under 18 5 1 18-25 110 16 26-60 547 79 60+ 32 4 Total 694 100 i City o4 Iowa City MEMORANDUM DATE: May 11, 1987 TO: Citizens' Committee on City Revenue FROM: City Manager RE: Tax Policy Options These appear to be the basic tax policy options available. The Subcommittee directed that such a summary be prepared for discussion. Please note that the general goal was to raise at least $1,000,000 a year in new revenue through current legislation available to municipalities, as well as provide property tax relief. Attached is a report prepared by Clayton Ringgenberg for the Subcommittee. cc: Rosemary Vitosh Dale Helling City Council R��h3 J. )A, i 1 i City o4 Iowa City MEMORANDUM DATE: May 11, 1987 TO: Citizens' Committee on City Revenue FROM: City Manager RE: Tax Policy Options These appear to be the basic tax policy options available. The Subcommittee directed that such a summary be prepared for discussion. Please note that the general goal was to raise at least $1,000,000 a year in new revenue through current legislation available to municipalities, as well as provide property tax relief. Attached is a report prepared by Clayton Ringgenberg for the Subcommittee. cc: Rosemary Vitosh Dale Helling City Council R��h3 J. )A, .o• i TAX POLICY OPTIONS Sales Tax 1/4% _ $500,000 annual revenue 1 1/2% _ $1,000,000 annual revenue 3/4% _ $1,500,000 annual revenue Y 1% _ $2,000,000 annual revenue * Vehicle Tax $ 5 = $200,000 annual revenue $10 = $400,000 annual revenue $15 - $600,000 annual revenue *Very difficult revenue to predict Hotel Tax 14 = $42,000 annual revenue 24 $84,000 annual revenue (currently 54, maximum 74) Property Tax Each 104 = $100,000 in annual revenue (currently $7,10, maximum $8.10) 1. 1% SALES TAX ($2,000,000) meets (exceeds) revenue shortfall projected for basic service continuation. allows for property tax relief of approximately $1,000,000. allows for consideration of service restoration, expansion and/or related amendments. 2. 3/4% SALES TAX ($1,500,000) meets (exceeds) revenue shortfall. allows for property tax relief of approximately $500,000. allows for some service restoration, expansion and/or related amendments. W 3. 1/2% SALES TAX ($1,000,000) meets revenue shortfall. no property tax relief. no service adjustment. State law does require property tax relief as part of referendum proposal. 4. 1/4% SALES TAX ($500,000) does not meet shortfall or property tax relief. 5. 1/4% SALES TAX ($500,000) PLUS $13.00 VEHICLE TAX ($550,000) meets revenue shortfall. no service adjustments some property tax relief possible by shift of transportation expenditures from General Fund to Vehicle Tax Fund. requires a referendum question. *Caution on estimates *May increase Vehicle Tax to a point where it could finance a number of transportation related services and reduce property tax assigned to those services. 6. VEHICLE TAX ONLY can be established at a point where it meets revenue shortfall and May provide property tax relief. $25 Vehicle Tax - $1,000,000 7. 1/4% SALES TAX ($500,000) PLUS PROPERTY TAX INCREASE could meet revenue shortfall, but does not provide property tax relief. FE 2 A 8. VEHICLE TAX PLUS PROPERTY TAX INCREASE could meet revenue shortfall, but does not provide property tax relief. 9. PROPERTY TAX INCREASES 3 .v SOME ALTERNATIVE STRATEGIES AND WAYS TO BALANCE THE CITY OF IOWA CITY'S BUDGET IN YEARS AHEAD (see next page for possible supplemental recommendations for each alternative) rt���m INCREASE PROPERTY TAX BY SUFFICIENT MILLAGE EACH YEAR TO BALANCE THE BUDGET, UNTIL MAXIMUM LEVY AND EMERGENCY LEVY ARE USED. +M= PROP INCREASE THENERTY RETURNNTO THES TO THE MAXUM LVY FOR ONNO MOREIMTHANE6 PERCENTE EINOR TWO CREASE POLICY. ONE-HALF CENT SALES TAX ($ 1 MILLION) ANY ADDITIONAL REVENUE COMES FROM PROPERTY TAXES OR INCREASED CHARGES ONE-HALF CENT SALES TAX CITY NOT INCREASE TOTAL SPENDING FOR ONE YEAR (88-89) U;,: ONE CENT SALES TAX ($2 MILLION) ONE MILLION OF THIS GOES FOR REDUCED PROPERTY TAXES LEVY MOTOR VEHICLE TAX SUFFICIENT TO PAY $500,000 TO $750,000 OF BUS FINANCING. REDUCE PROPERTY TAX LEVY FOR BUS SERVICE. LEVY PROPERTY TAX FOR REMAINDER OF REVENUE GAP. INCREASE HOTEL/MOTEL LEVY TO MAXIMUM RATE TO PRODUCE $80,000. (SHIFT EXPENDITURES SO THAT THIS MONEY COULD REPLACE SOME PROPERTY TAX.) Mr .V' • No POSSIBLE SUPPLEMENTAL RECOMMENDATIONS p A. MAYOR AND COUNCIL APPOINT A BLUE RIBBON ECONOMY COMMITTEE TO REVIEW ALL CITY OPERATIONS B. t: COUNTY AND CITY GOVERNMENTS APPOINT A CITIZENS GROUP TO MAKE SUGGESTIONS FOR ELIMINATING DUPLICATION OF GOVERNMEN- TAL SERVICES IN THE JOHNSON COUNTY AREA � C. MAYOR AND COUNCIL APPOINT A SPECIAL CITIZENS' COMMITTEE TO REVIEW BUS FINANCING AND OPERATIONS D. HAVE A CITIZENS' TASK FORCE MAKE RECOMMENDATIONS FOR POL- ICE/FIRE COORDINATION E. STUDY THE POSSIBILITY OF ADDITIONAL CHARGES FOR SERVICES PROPERTY EXEMPT FROM THE TO PROPERTY TAX r F• FIND WAYS TO SPREAD OUT DEBT SERVICE COSTS TO REDUCE THE PROPERTY TAXES LEVIED FOR THIS PURPOSE G v ORE THE Y FUND CCOMMUNITYMAJOFACILITIES BUTIONS ARELMAPRIVATE TDONORS FOR TAE PROJECTS) H. EXPLORE USING MORE ENTERPRISE AND OTHER NONTAX REV GENERAL FUND PURPOSES REVENUES FOR I. IF THE SCHOOL DISTRICT RECEIVES SUBSTANTIAL ADDITIONAL STATE AID FROM THE 1987 f LEGISLATURE, GET A COMMITMENT THAT SCHOOL TAXES WILL NOT INCREASE .V' • No .a• Pe,. Aw m sJia/g7 PROPERTY TAX: ADVANTAGES AND DISADVANTAGES 1. Fairness--Progressivity or regressivity. Difficult to estimate precisely, but most analysts conclude that it is regressive among lower to middle income households (taking a larger proportion of income the lower one's income) but may become progressive at higher income levels. 2. Fairness --Benefits Received. - Some city services are related to property value (police, fire) others are not (recreation), - Owners of tax exempt property, non-resident commuters and shoppers, and visitors benefit from some city services but don't pay property taxes directly. - Similarly, the approximately 7,300 University students living in dorms and family housing (about 258 of all students) do not pay property taxes directly. 3. Fairness --Do Renters and Shoppers Pay Taxes Indirectly' Owners of commercial property (including rental housing) probably shift some or all of the property tax onto renters and customers by charging higher prices or rent to cover their tax bills. The extent to which this occurs, however, is impossible to measure. 4. Fairness --Relation to Personal Circumstances and Cash Flow. - The property tax, unlike the income tax, does not make adjustments for personal circumstances such as family size or other things that affect real ability to pay. - Property Tax does not take into account the current income or cash flow of a household, and it is current income that must be used to pay the taxes. - In Iowa, only the elderly and disabled are somewhat protected from these problems through a "circuit -breaker" property tax relief program that assures that low income elderly and disabled individuals do not pay exceessive amounts of property tax relative to current income. 5. Net Burden on Iowa City Residents. The property tax is fully deductible on state and Federal income tax returns. For someone in the 283 Federal tax 1 M/ .o1 bracket and, say, the 108 state bracket, a $100 increase really costs only about $68. (This benefits renters as well, since landlords deduct property taxes and thus have less to pass on.) - Property taxes on industrial and utility property (about 128 of the tax base) are probably largely paid by owners and customers residing outside Iowa City. 6. Effects on Investment Property tax rates may or may not have an effect on decisions regarding investment in property improvements or on location decisions of businesses. Conclusive evidence on this point is difficult, if not impossible, to obtain. Note: Currenttotal property tax rate is about 9.68 lower in F. Coralville, 7.38 lower in North Liberty,. for example; for an investor considering the location of a new building, those rate differences would translate into a savings of less than 28 of building costs over the life of the building. Is that enough to change the ideal location given all the other considerations involved? 7. Responsiveness and Stability. F t - Less responsive to changes in the economy than sales tax. i. - More stable and predictable. - In periods of inflation, city costs likely to rise more rapidly than the tax base; in periods of recession, tax base may continue to increase for a while while costs are relatively stable. 4 8. Revenue Adequacy. r ! - Currently about $2.2 million in "slack" remaining in the property tax (i.e., additional revenues obtainable by r' raisin g general fund and transit levies to maximum and (: shifting all employee benefits out of general fund; emergency levy and library levy could each add about r $288,000 more). P - Almost half of the $2.2 million cushion would be used up in fiscal year 1988-89 to meet shortfall. i i - Whether city would continue to have a cushion in excess of $1 million in future years depends on the fate of state and federal aid programs and continued growth in the property tax base keeping pace with inflation in city costs. Y 2 6 Revenues From Charges in Enterprise Funds City of Iowa City f CC, P Fiscal Year Estimate -1987 Fiscal Year Budgeted -1988 r f 1,622,000 1,798,000 t Pollution Control Operations 1,624,000 2,775,000 4,347,000 Water Operations 1,763,000 2,070,000 2,260,000 Refuse Collection Operations 568,000 584,000 611,000 Landfill Operations 663,000 663,000 Revenues From Charges in Enterprise Funds City of Iowa City Fiscal Year Actual -1986 Fiscal Year Estimate -1987 Fiscal Year Budgeted -1988 Parking Operations 1,622,000 1,798,000 1,847,000 Pollution Control Operations 1,624,000 2,775,000 4,347,000 Water Operations 1,763,000 2,070,000 2,260,000 Refuse Collection Operations 568,000 584,000 611,000 Landfill Operations 663,000 663,000 685,000 Airport Operations 75,000 92,000 95,000 Bus Operations 829,000 768,000 753,000 TOTAL 7,144,000 8,750,000 10,598,000 .v ME�oR4WDUMIowa city _ Date: May 14, 1gBI To; Mayor Ambrisco and City Council Members From: Terrence L. Timmins, City Attorney y Re: Update 1• West Benton Street Bridge ry' The Y has Improvement Project. Cit acquired widening the west all necessary been scheduled approach to the BentonPrOperty and representatives for Thursda Street bridge easements for to the north and to discuss Ythe ' May 1q, with CRANpIC 9e• A meeting has bridge; south of Benton itY s acquisition ofand Iowa Electric Street (Z) the improvement Street along the eastCRAIiDIC property Althou6 and, (3) the Of the CRAN0IC approach to the 9h CRANDIC and Iowa of crossing over items mentioned Electric are n Iowa Electric Benton to a If agreement is not a will. to Power author: is not reached int as Cooperate on the tion to Is the to what the City will soon, we will likel have Z• Kohlscheen v, Pr°Perty• Y seek Council Cit (Subdivision dispute - Dick Bo Highway 1 and Miller to haveyle is resisting efforts b Avenue) a motiontte City's cross-claims bytw dismissed have Attorne Dick McFall and Poggenpohl) the Kohlscheens in this Y Marion Neely disqualif,ed i also likely tinues to represent lawsuit, since from representing file e by sellin Oakes and We he also represented g off lots without first gman, who startedthisand con - off some serious hollering subdividin this whole problem 3, g• This is certain to set Library Roof Problem, ? David Brown f Board Member Tom I met with Library Director t ing a developingSuR°°Y last week to Lolly Eggers and { alerted the Board Problem with the LIbrarw the City'roof s options Library installed, that about a problem with the roof " Taylor Roofingard- walls at theedges, Causes it to shrink membrane', Roofinghasch would like toeen I t theiCitylsntuall cooperatlonual nand leakageeiparapetTa Y pian manufactur Y to tears from Pursue the in the matter membrane. We g01n9 after the Euro - sed ( directly with Taylor have advised Euro - 4• Settlement of under the warranty. the Board to Claim by Car) Sweeting - As per '" S, Sycamore. Council's request during a recent executive setMr, Walker's explanation regarding the insurance settle this claim. session +' find attached carriers decision to i i 1 i I 8// 5. Sewer Treatment Plant Site Acquisition. jThe closing on the City's purchase of the Langenberg farm occurred on Thursday afternoon, May 14th. The deeds and other necessary documentation were filed in the County Re- corder's Office on Fricay, May 15th. The City now owns the site. PHELAN, TUCKER, BOYLE & MULLEN ATTORNEYS AT LAW WILLIAM V. PHELAN %7LLIAM M. TUCKER DANIEL W. BOYLE CHARLES A. MULLEN ST01FEN P. BRIGHT BRUCE L. WALKER RICHARD M. TUCKER THOMAS H. GELMAN STEVEN R. REGENWE HER MARY EL6ABETH PHELAN Mr. Terrence Timmins City of Iowa City Civic Center Iowa City, IA 52240 321 MARKET P.O. BOX 2150 IOWA CITY, IOWA 52244 (319) 3541104 May 8, 1987 RE: Carl Sweeting v. -city of Iowa City Dear Terry: LOUIS SHULMAN (19061982) This case was commenced on March 28, 1986. Thereafter, I spoke to Harry Boren, who checked the area and advised that the manhole in question was constructed appropriately. Later, I was advised by Mr. Gerard that when City buses drove over the manhole in question, vibrations caused $3,000 to $4,000 in damage to the Sweetings' home; that after claimant noticed the vibration problem, he contacted the City and an unidentified City employee went to the site, said that the manhole was installed improperly and corrections were made. Thereafter, no problems occurred. I next talked to Jim Schulte. Jim told me that a lady called him during the fall of 1985. He went out and talked to her, and she claimed thatthe manhole made noise that they could hear at their home, both inside and outside. He checked the manhole and determined that the slab around the manhole was broken. He told her that could be making the noise. We checked the records of the City Street Department and deter- mined that the work was done by a City crew initially. I enclose the records and Jim's letter. P Based on that information, Western had decided they wanted to 4 settle the case. My first authority was $750, but it was j approved to go to $1,500 to avoid the expense of litigating I this issue, given the fact that apparently City crews had misconstructed the slab in question, causing vibrations and = noise which could have bothered the Sweetings. During the negotiation process, Jim Schulte became disabled from illness and died. : C LEGI; I W Thereafter, Plaintiffs counsel accepted the $1,500 and it E has been paid and the case settled. This settlement can be justified in the sense that it would cost more than $1,500 to va win the case, and there appears to be some likelihood that liability exposure did exist to an indeterminate amount of qdamages. I believe Western's decision was based solely on a cost -of -defense or "nuisance value. If you have further questions about this I will be happy to advise. Very truly yours, Bruce L. Walker BLW:nmg .P' F CITY OF IOWA CITY CIVIC CENTER 410 E. WASHNNGTON ST. IOWA CRY, IOWA 52240 (319)356-50M f May 7, 1986 Bruce Walker Attorney at Law 321 E. Market St. Iowa City, Ia. 52240 Dear Mr. Walker: Subject: 1409 So Sycamore Street The first time the Street Division performed repairs at 1409 So. Sycamore Street was on June 29, 1984. The employees who did the repairs were: Gerry Kaefring, George Knottnerus, Duane Coblentz and Vern Fisher. Even though extensive street repairs were done, moisture got into the repaired area and the repairs did not last. On approximately September 20, 1985, a complaint was received in the Street Division. On the.same day, I went out to investigate the complaint. I then knocked at the door of 1409 So, Sycamore, where I spoke with the lady who lived there. She stated that when buses drove over the manhole, it caused a noise. I told her the concrete around the manhole was rocking, which could possibly make noises In her basement. I assured her we would repair it before leaf removal season and she agreed that was acceptable. We did the repair on October 8, 1985. The employees who did the repairs were: Steve Jenn, George Horn, Randy Salm and Brian Michel. If you need any further information, please contact me at my office phone (356-5182). Sincerely, Jim Schulte Asst. Superintendent of Streets Enc. 2 IN D A I L Y DEPAR S C H E D U L [�.. PUBLIC MT DI ISION MENi r ASSIGNED BY STREET SOLID WASTTE DIVISION ` DATE PERSONNELW.O.0 DDMn.0 PINK — DNISIDN CLERX f a r i a J r 1 .P' i 4, 0 ii i' D A I L Y DEPAR S C H E D U L [�.. PUBLIC MT DI ISION MENi r ASSIGNED BY STREET SOLID WASTTE DIVISION ` DATE PERSONNELW.O.0 DDMn.0 PINK — DNISIDN CLERX .01 SCHEDULE PERSONNEL W.O./ CITY OF IOWA CITY PUBLIC WORKS DEPARTMENT STREET DIVISION SOLID WASTE DIVISION PROGRAM ASSIGNED BY DATE -ze—- ASST SOLID Wif-s'up-F" """^ " - �Ut'r OF STREETS/SANITATION PINK - DIVISION cLERX SH