HomeMy WebLinkAbout1987-09-08 Info Packet.1.
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City of Iowa City
MEMORANDUM
DATE: August 26, 1987
TO: Chairpersons, Boards and Commissions
FROM: Mayor William Ambrisco(/l d�
RE: Annual Meeting of City Council and Chairpersons of Boards/Commissions
The annual meeting of the City Council members and chairpersons of all
boards and commissions is scheduled for Wednesday, September 30, 1987,
at 4:00 P.M. at the Highlander Inn.
Each board/commission chairperson should be prepared to give a presenta-
tion not to exceed five minutes on the accomplishments of the board/
commission during the past year, problem areas for the board/commission,
and efforts being made during this next year.
A dinner is planned for 6:30 P.M. Please contact Lorraine Saeger (356-5010)
concerning your attendance at this meeting/dinner no later than September 25,
1987.
cc: City Council
City Manager
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Clty of Iowa City
MEMORANDUM
Date: August 31, 1987
To: City Council
From: City Manager
Re: City Council Candidate Workshop
Very shortly, candidates will have filed the appropriate documents expressing
their intent to seek election to the City Council. From my experience, many
Council candidates will request information of all sorts from various City
staff personnel. With the general openness of the information process and
freedom of information laws, it is quite simple for candidates, as well as
the general citizenry, to secure information about the City government.
However, these requests can often take substantial staff time and frequently
are routine in nature.
In past.years, the League of Women Voters has sponsored a Council candidate
informational workshop. After discussing this matter with the League repre-
sentatives and upon review of past agendas for such a meeting, we felt that
an expanded information program for City Council candidates would be helpful..
Attached is a copy of the proposed Council candidate workshop agenda. The
agenda has been discussed with League representatives and they are satisfied
with the agenda as well as the general change in direction for the workshop.
This workshop is not intended to be a forum for political debate or a means'
by which candidates may commend/ criticize current City Council policies, but
simply a means to become better informed.
It is my desire, as the City's administrative officer, to not intrude upon
the electoral process but to provide information on a collective basis so
that individuals expressing a desire to serve on the City Council can become
better informed. Any public positions can then be undertaken with more
detailed background information. A meeting has been scheduled for Saturday
morning at 8:30 a.m. on September 26 in the City Council Chambers. We do
recognize that this is the opening football weekend and therefore the meeting
will be concluded on or about 10:30 a.m. Unless I would hear to the con-
trary, it would be my intent to notify the prospective Council candidates in
the very near future.
cc: Jonni Ellsworth
732 N. Dearborn
League of Women Voters
Department Directors
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City Council Candidate Workshop
September 26, 1987
Saturday, 8:30 a.m.
Introduction
Budget 3 Finance
I. Budget and accounting systems
2. Statutory requirements
3. Major sources of revenue
4. Investment policies
5. Budget policies
6. General issues of municipal finance
Personnel
1. Employee relations, labor contracts, collective bargaining
2. Recruitment, affirmative action, records
3. Special programs, wellness, employee assistance
e
Legislative Procedures
1. Resolutions, ordinances
2. Open meetings law
3. Executive sessions
4. Public hearings - most common issues
Planning i Development
1. Planning and Zoning Commission
2. Development Review
Comprehensive Plan
t; Zoning Ordinance
Subdivision control
Fringe Policy
3. JCCOG
Major Project Update
1. Sewage treatment plant, swimming pools, transportation projects
2. Capital improvement planning
Miscellaneous
o•
1. Public official liability
2. Meeting schedule
3. Agenda preparation
4. Staff support
Y
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City of 10%V& City
MEMORANDUM
Date: September 2, 1987
To: City Council
From: City Manager
Re: Urban Mass Transit Administration - Charter Regulations
We were recently made aware of new charter service regulations issued by
UMTA. Attached is a copy of a letter directed to Congressman Nagle concern-
ing this issue. The letter is self-explanatory. It points out the frustra-
tions we have in our efforts to attempt to raise additional revenue, and the
aware,/ it swill become our problem when wegutellocertaAs I am surein groups that we are no
longer able to provide this service. While it does cause the Cit g you are
certain public relations problems, I believe we all need to be made aware of
the continued restrictions that are imposed upon cit Y government
by higher government authority. Y government operations
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CITY
CIVIC CENTER
OF
410 E. WASHINGTON ST
September 1, 1987
OWA
IOWA CITY. Ob\iA 52240
CITY
(319) 356-5OCC
The Honorable David R. Nagle
House of Representatives
214 Cannon House office Building
Washington, D.C. 20515
Re: UMTA Charter Regulations
Dear Congressman Nagle:
I recently spoke with Mr. Kerry Sutton of your staff regarding the ef-
fects on Iowa City Transit (ICT) of the Urban Mass Transportation Ad-
ministration (UMTA) charter service regulations. I felt it might be
useful to express in writing my comments regarding these regulations.
Let me begin by emphasizing that charter service represents a very small
portion of Iowa City Transit's service. In FY87, ICT did less than
$2,000 in charter service while our entire operating budget exceeded $2
million. ICT provides charter strictly as a public service, not to make
money. We charge $35 per hour and 51 per mile which only covers our
actual operating expenses. Typical examples of our charters last year
were a women's church group visiting area social service agencies, a
wedding party going from the church to the reception, and a daycare
going to the 4-H Fair. We also provided service to several convention
groups, both private and non-profit. None of our charters went outside
the Iowa City-Coralville urban area.
Iowa City Transit has complied with the recently issued UMTA charter
regulations whereby we invited private providers to express their inter-
est in being a "willing and able" charter service provider. On the
afternoon of the last day of the time period for private providers to
express their interest, Tri-State Tours out of Galena, Illinois filed
the necessary paperwork. Therefore, ICT can no longer provide any
charter service regardless of the circumstances.
.o•The aspect of the existing regulations which I feel most strongly should
be changed relates to the fact that even if Tri-State Tours is contacted
and turns down a request for a charter, the group wanting the charter
cannot come back to ICT and request us to provide it. It seems unrea-
sonable that ICT cannot provide a public service once the private opera-
tor has turned it down. It is difficult for me to explain this to an
a
The Honorable 7a•,; R. Nagle
September 1, 1987
Page 2
organization such as a women's church group who we have served
several years. It certainly reflects poorly on the image of the City of
Iowa City when we are forced to turn for
these requests down.
Iowa City Transit would appreciate any assistance you can
facilitating a change in the existing UMTA charter service regulations.
Thank you for Provide in
Your interest in these regulations and please do not
hesitate to contact me at (319) 356-5154
information. if I can provide any additional
Sincerely,
�lft7C.. �i•v.Ga.,,�
John A. Lundell
Transit Manager
cc: Steve Atkins, City Manager
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City of Iowa City
MEMORANDUM
Oate: August 31, 1987
To: City Council
From: City Manager
Re: Special Assessment Projects
Over the last several months it has come to my attention that we will
frequently undertake the initial planning process for a special assessment
projects based upon the request of individual neighborhood residents.
Oftentimes the request precipitates significant field survey work as well
as general administrative and engineering work for the proposed project,
when in fact the request is an expression of interest of only one or two
individuals.
This process and our desire to respond quickly to citizen requests does
make if difficult to determine neighborhood interests and can lead to
frustrations on the part of residents as well as staff in project preparA-
tion. Recently the High/Wilson/Morningside area project was undertaken
based upon a request by a resident. In the future I feel that some other
type of procedure should be undertaken before significant time and effort
is put forth. Therefore, when an individual would request a project that
could lead to special assessment proceedings, a blank petition will be
directed to the requesting individual. The petition can then be circu-
lated by the requesting party to the neighborhood to determine interest in
a project. Hopefully, this will be a better measure of interest in a
potential special assessment.
/sp
cc: Chuck Schmadeke
.01
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City of lows City
MEMORANDUM
Date: September 3, 1987
To: City Council
From: City Manager
Re: Aid to Agencies/General Fund
aAt a recent City Council meeting, the staff was requested to develop a com-
ndageneralchart
City hexpendi expenditures. Fthe or the purposesour
of thiAid
s reportr,cthe funding
pattern from FY84 to and including FY88 was utilized, From FY84 to FY88, the
Aid to Agencies budgets increased by 29% and the General Fund as adjusted
increased by 25.3%.
bj3/6
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TOTAL $151,112 $164,707 +9 $170,463 +3 $189,509 +11 $195,509 +3 (04,397 +29
O
CITY OF
IOWA CITY
�y
ACTUAL
ACTUAL
AID -TO -AGENCIES FUNDING PATTERN
ACTUAL
FY84-FY88
ACTUAL
BUDGETED
CHANGE
FY84
FY85
%
FY86
%
FY87
%
FYBB
S
FY84 to
FY88
FUNDING
FUNDING
CHANGE
FUNDING
CHANGE
FUNDING
CHANGE
FUNDING
CHANGE
f
%
BIG BROTHERS/BIG SISTERS
f 19,910
f 21,901
+30
$ 24,091
+10
f 25,300
+5
f 25,300
0
f 5,390
+27
i
CRISIS CENTER - FOOD BANK
7,843
8,627
+10
8,902
+3
9,340
+5
9,340
0
1,497
+19
CRISIS CENTER -INTERVENTION
7,220
8,281
+IS
8,460
+2
8,198
+4
8,790
0
1,578
+22
DOMESTIC VIOLENCE PROJECT
8,250
10,420
+26
12,000
+15
13,200
+1D
13,200
0
4,950
+60
i
ELDERLY SERVICES AGENCY
25,850
27,159
+5
21,836
+2
28,671
+3
34,671
+21
8,821
+34
MICAP
2,000
2,000
0
2,277
+14
2,600
+14
2,600
0
600
+30
MAYOR'S YOUTH EMPLOYMENT
25,000
29,076
+16
29,000
0
30,000
+3
30,000
0
5,000
+20
MECCA _
- -
- -
N/A
- -
N/A
10,000
N/A
10,000
0
30,000
N/A
RAPE VICTIM ADVOCACY
8,969
10,628
+18
9,905
-7
10,350
+4
10,350
0
1,381
+15
RED CROSS
3,000
- -
-100
- -
N/A
1,000
N/A
1,000
0
-2,000
-67
UNITED ACTION FOR YOUTH
35,500
37,592
+6
38,592
+3
40,000
+4
40,000
0
4,500
+13
i
VILLOW CREEK CENTER
7;570
9,023
+19
9,400
+4
10,250
+9
10,250
0
2,680
+35
TOTAL $151,112 $164,707 +9 $170,463 +3 $189,509 +11 $195,509 +3 (04,397 +29
O
n
• Adjustment needed to make FY88 comparable to FY87:
Accounting changes -
Contingency
Police 6 Fire Retirement Contributions
Increase Salaries to 100% Basis
Extraordinary Capital Outlay
Fire Ladder Truck
Parks and Recreation Projects Funded
By Reserve Balances
f 100,000
675,817
188,840
451,517
68 Soo
Ti,484:674
GENERAL FUND BUDGETS
'
FY84-FY88
BUDGET
BUDGET
%
BUDGET
%
BUDGET
FY87
%
INC.
BUDGET
FY88
%
INC.
FY84
FY85
INC.
FY86
INC.
PERSONAL SERVICES
$ 7,630,972
$ 7,998,049
4.8
f 8,590,729
7.4
S 8,918,929
3.8
$10,117,763
13.4
COMMODITIES
599,087
574,235
(4.1)
591,033
2.9
600,088
1.5
619,206
3.1
SERVICES AND CHARGES
2,379,239
2,446,367
2.8
2,581,456
5.5
3,204,921
24.2
3,044,253
(5.0)
CAPITAL OUTLAY
564,629
796,298
41.0
748,632
6.0
601,653
(19.6)
1,295,268
115.3
TRANSFERS
692,902
814,272
17.5
1,075,307
32.1
848,115
(21.1)
1,183,173
39.5
CONTINGENCY
0
0
0
0
100,000
70TAL
$11,866,829
$12,629,221
6.4
$13,587,157
7.6
$14,173,706
4.3
$16,359,663
15.4
1 484 674
ADJUSTMENT*
4.9
. IB:J..9
• Adjustment needed to make FY88 comparable to FY87:
Accounting changes -
Contingency
Police 6 Fire Retirement Contributions
Increase Salaries to 100% Basis
Extraordinary Capital Outlay
Fire Ladder Truck
Parks and Recreation Projects Funded
By Reserve Balances
f 100,000
675,817
188,840
451,517
68 Soo
Ti,484:674
City of Iowa City
MEMORANDUM -
Date: September 3, 1987
To: City Council
From: Rosemary Vitosh, Director of Finance rk_u�c,�
Re: Water/Sewer/Refuse Rate Increases
The utility billings processed in the billing cycles during the months of
September and October will be computed using the increased rates effective
for water, sewer and refuse. The refuse collection rate was approved in
conjunction with the FY88 Budget and was required to cover increased
operating costs of the refuse collection system.
The user rate schedules implemented last summer for water and sewer cov-
ered annual rate increases over a three year period. These rate increases
were the first rate increases made since December, 1981, for both water
and sewer. The second annual rate increase is effective on all utility
billings processed after September 1, 1987. The first batch of billings
computed d a
p t the .er9
increased
rates
will be mai
9, 1987. As you will recall, the water rates tocustomers increased S to efund
increased operating costs and the new computer system which will be in-
stalled at the water plant within the next year. The increased sewer
rates were necessary to privide funding for the Wastewater Treatment
Facility project.
Attached are updated charts showing comparisons of water and sewer user'
charges for an average residential customer in 17 Iowa communities. The
comparisons show that after this year's rate increase Iowa City's rates
will be close to the average rates of all communities surveyed. In spite
of the fact
in-
creases,I watCity''s rates gfor water one gand wsewer rare fstilltreasonablesusantial ratewhen
compared to the rates in -other communities.
Information on the rate increase will appear as a message on the back of
the billings mailed in September and October. A copy of that message is
attached. Please contact me with any questions.
RV/sp
Attachments
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COMPARISON OF SEWER USER CHARGES
IOWA CITY TO OTHER CITIES IN IOWA
For an Average Residential user -
Prepared August 1987
Average 131—monthly hlrr
Based on sewer use of 2,000 cubic feet per. two-month period.
DDuestosthe size
of the community .and their large industrial base,
not comparable to Iowa City's system.
/30?.5
MESSAGE TO BE PRINTED ON THE BACK OF BILLINGS
NEW WATER, SEWER 8 REFUSE RATES EFFECTIVE ON
BILLINGS PROCESSED AFTER SEPTEMBER 1,
1987
RATE PER 100
CUBIC FOOT —
WATER—
PRIOR RATE
NEW RATE
—MINIMUM MONTHLY RATE INCLUDING
THE FIRST 200 CU. FT.
-USAGE IN EXCESS OF 200 CU. FT.:
$3.25
E3.60
+THE NEXT 2,800 CU. FT.
75
+THE NEXT 17,000 CU. FT.
45
.83
+OVER 20,000 CU. FT.
SEWER -
.40
.50
.44
—MINIMUM MONTHLY RATE INCLUDING
THE FIRST 200 CU. FT.
—EACH ADDITIONAL 100 CU. FT.
$3.00
E4.75
s' REFUSE-
66
1.04
-MONTHLY RATE
---------------------------------------------------
$4.30
$4.50
SAMPLE BILLING AMOUNT FOR
PRIOR
NEW
RATE
AN AVERAGE RESIDENTIALRATE
CUSTOMER WHO USES. 2,000 WATER
j CUBIC FEET OF WATER
$18.50
$20.48
SALES
DURING THE TWO MONTH SEWER
TAX .74
16.56
.82
26.14
BILLING CYCLE. CUSTOMERS REFUSE
WISHING MORE INFORMATION
8.60
_-___
9.00
MAY CONTACT A CUSTOMER TOTAL
SERVICE REPRESENTATIVE
$44.40
$56.44
AT 356-5066
......
......
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City of Iowa City
- MEMORANDUM
Date: August 31, 1987
To: City Manager and City Counci
From: Fred Zehr, Airport Manage
Re: Compliance Status
The FAA regional engineer has inspected the Iowa City Airport and has
recommended to their Planning and Programming Division that
compliance status be issued to the Iowa City Airport.
The Planning and Programming Division has requested additional
information before reaching a determination on compliance. They are
requesting that a new title opinion of the airport property be
submitted to. their office, which includes the property that was
Abstract isrinethenprocesseOfocompleting the title opinion andiit
will be is to the FAA very soon. I would anticipate compliance
status would be issued to the Iowa City Airport within 30 days after
the FAA receives the new title opinion.
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o Iowa City Baba Ruth
�^ kw P.O. Box 1880
Iowa City, In. 52244
tai, LCA•
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August 11. 1887
•W t,T"'h � � •
JEC*I'Vrn41If; z'� 1gRT
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$u Iowa City, LA. 52240
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Daae , Contributor
Iowa City Babe Ruth Baseball has completed another successful baseball season.
The quality of the program has increased with expanded involvement by a very? active and hard working Board of Directors. They are responsible for inviting,
encouraging and signing up most of the 13 • 15 year old boys from Iowa City who
desire to play baseball. The Board to also responsible for the selection of many
volunteer coaches required to maintain a high standard of ability and sport hip.
Many others assist the Babe Ruth program as volunteers at the Mercer Park
concession stand and with many other duties. Iowa City Parks and Recreation
Department must deo be commended for their cooperative participation, guidance,
and expertise In tha professional aspects of conducting a baseball program,
In addition to the many people It takes to run a community youth organization, we
mud first thank you loyal contributors for the continued financial support without
which all of this effort would be fruitless. Your contributions, player registration
fees, raffle ticket sales, and concession stand income permit Iowa City Babe Ruth
to continue to be a leader among the many programs across the country.
Ail of Iowa City thanks you.
sincerely,
0
Robert Lehnerta, Treasurer
Iowa City Babe Ruth League
,;.
13.? 7
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City of Iowa City
MEMORANDUM
Date: August 27, 1987
To: Mayor William Ambrisco and City Council be
From: Terrence L. Timmins, City Attorney
Re: City Towing Contract - Question Concerning Conflict of Interest
Introduction: Approximately three weeks ago, Mayor Ambrisco asked me if a
contlict--o-F interest existed in that his insurance agency insured Holiday
Wrecker Company, which in turn has held the City's towing contract, and has
bid on it once again. At that time I rendered an oral opinion indicating
that there was no conflict of interest that would prohibit the City from
doing business with Holiday, nor which would require Mayor Ambrisco to ab-
stain from voting on the matter if it came before the City Council. Based on
our discussion at that time, however, Mayor Ambrisco decided that he would
abstain on that matter due to the public notoriety that it had received and
the potential for misunderstanding.
I have decided to issue this written opinion explaining the application of
conflict of interest law and principle in this case, for the following rea-
sons: (1) to document my earlier oral opinion; and (2) to address some of the
public discussion of the matter which has evidenced a misunderstanding of
conflict of interest laws and principles.
Background: The Iowa Code has long had a specific conflict of interest
provision for cities and city officials. Section 368A.22 of the 1958 Code of
Iowa was a broad and simple provision which read as follows: "No officer,
including members of the city council, shall be interested, directly or,
indirectly, in any contract or job of work or material or the Profits thereof
or services to be furnished or performed for the city or town.'
Section 362.5 of the 1987 Code of Iowa is the successor to that earlier
provision sme and reads to much the same effect, except that the provision now
wherein includes
na cieleven
ty the
evenothoughocontraryutoithe
general prohibition. Section 362.5 reads as follows:
362.5 Interest in public contract prohibited - exceptions.
When used in this section, "contract" means any claim, account, or
demand against or agreement with a city, express or implied.
A city officer or emplbyee shall not have an interest, direct or
indirect, in any contract or job of work or material or the profits
thereof or services to be furnished or performed for the officer's
or employee's city. A contract entered into in violation of this
section is void. The provisions of this section do not apply to:
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1. The payment of lawful compensation of a city officer or em-
ployee holding more than one city office or position, the
holding of which is not incompatible with another public office
or is not prohibited by law.
2. The designation of a bank or trust company as a depository,
paying agent, or for investment of funds.
3. An employee of a bank or trust company, who serves as treasurer
of a city.
4. Contracts made by a city, upon competitive bid in writing,
publicly invited and opened.
5. Contracts in which a city officer or employee has an interest
solely by reason of employment, or a stock interest of the kind
described in subsection 9, or both, if the contracts are made
by competitive bid, publicly invited and opened, and if the
remuneration of employment will not be directly affected as a
result of the contract and the duties of employment do not
directly involved the procurement of preparation of any part of
the contract. The competitive bid requirement of this subsec-
tion shall not be required for any contract for professional
services not customarily awarded by competitive bid.
6. The designation of an official newspaper.
7. A contract in which a city officer or employee has an interest
if the contract was made before the time the officer or em-
ployee was elected or appointed, but the contract may not be
renewed.
8. Contracts with volunteer fire fighters or civil defense volun-
teers.
9. A contract with a corporation in which a city officer or em-
ployee has an interest by reason of stock holdings when less
than five percent of the outstanding stock of the corporation
is owned or controlled directly or indirectly by the officer or
employee or the spouse or immediate family of such officer or
employee.
10. A contract made by competitive bid, publicly invited and
opened, in which a member of a city board of trustees, commis-
sion, or administrative agency has an interest if the member is
not authorized by law to participate in the awarding of the
contract. The competitive bid requirement of this subsection
does not apply to any contract for professional services not
customarily awarded by competitive bid.
/321
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est is sufficient to constitute a conflict, we must then determine if the
proposed transaction would fall
thus be allowed despite the conflwithin one of the recognized exceptions and
ict.
b uT mr, Ambrisco's Interest in Holiday Wrecker Contract.-
The
ontract:The initial inquiry in this case is as to the nature of Mr. Ambrisco's inter-
est in Holiday Wrecker Company or in Holiday's towing contract with the City
of Iowa City, Is Mr, Ambrisco's interest, if any, in Holiday or in Holiday's
contract, sufficient enough to constitute a conflict of interest?
Initially, I would point out that the statute identifies a range of potential
interests which would not prohibit a city from doing business with a firm in
I which a councilmember had an interest. For instance, if the member's inter-
est is stock ownership of less than 5%, the statute flatly allows the city to
do business with that firm, apparently on the assumption that this level of
interest would not give rise to a conflict. However, if the member's inter-
est is more substantial - stockownership in excess of 5% or empl
the firm - then the statute allows the city too business with that firm
oyment by
d
only if certain safeguards are in place: (1) the contract is made by com-
petitive bid, publicly invited and opened; (2) the member's remuneration of
employment will not v directly affected as a result of the contract; and (3)
the member has no invo vel meet in the procurement or preparation of the con-
tract.
i
The question then becomes: "How does Mr. Ambrisco's interest in Holiday, or
in Holiday's contract, compare with the range of permitted interests identi-
fied in the statute?" To determine that, I researched the background of that
relationship and have established certain , At this time, Mr,
Ambrisco's only interest in Holiday is that factsHoliday is and has been doing
business with (buying insurance from) Welt-Ambrisco Insurance Inc., an insur-
ance agency of which Mr. Ambrisco is part owner. Holiday has been an insur-
ance client of agent Dave Winegarden since 1978 when Mr,
Assurance Associates of Coralville, Welt-Ambrisco acquiredn that acwas count�in
1980 when it purchased Assurance Associates. Dave Winegarden has since 1980
continued to handle that account as an employee of Welt-Ambrisco. Upon the
basis of figures supplied to me by Mr. Ambrisco, it is apparent that Holi-
day's business with the Welt-Ambrisco agency represents less than 1% of that
agency's annual business. As an employee of the Welt-Ambrisco agency, Mr,
to'garden is on salary as is Mr. Ambrisco. Premiums paid to the agency go
to pay salaries and expenses, and at the end of the year the four principals
of the corporation (including Mr. Ambrisco) split whatever profits there may
be,
Holiday first bid on the City's towing contract in 1983, after Russell Towing
terminated its contract with the City. At that time. Holiday's insurance
coverage exceeded City requirements. Holiday was awarded a two year con-
tract. When the contract was put out to bid again in 1985, the City Purchas-
ing Agent updated the insurance requirements to require #500,000 in garage
keepers coverage on the advice of the City's insurance agent, Carlton Johnson
of the Alderman -Wilson agency. No one in the Welt-Ambrisco agency was cs
sulted when this change was made. Holiday also provides similar towing
services to Johnson County, the University of Iowa, the City i lar towing
and the Iowa Highway Patrol. Holiday's decision to carry insurance with the
r
/3aj
coverages and in the amounts indicated was undoubtedly influenced b
assessment s its liability exposure in connection with those service its
quirements o well, y its
re -
Mr. Ambrisco was elected to the City Council in the fall of 1983 and did vote
on the renewal of the Holiday towing contract in August of 1985.
Ambrisco informs me that as of this date he still does not know and has never
been introduced to Mr. Wissink, the Mr.
Given this background principle in Holiday Wrecker Company.
is evident that Mr. 'Ambriscohas had Of cpnoions a evidentin
towing contract on behalf of Holida First of all, it
da s bid, nor has he had anythiny, nor has he assisted in prep again s city
Y�
specifications and requirements for gthe otowi gdo etontract ening they Cit g Holi-
y s bid
Secondly, it is also evident that
Holiday, or in Holiday's towing contract, which
does not have an interest in
a 5% stock ownership. His interest �ish�limited approaches
opraa1/4-shareymnnt or
Welt-Ambrisco agency's profits from Holiday's in accoun w iin the
count constitutes less than 1% of Welt-Ambrisco s total business, the
ac-
Ambrisco is not entitled to a direct commission on Holida s
rather only entitled to a share of corporate profits after thepaymentencu Mr.
salaries and expenses, the effect of Holida 's y Premium, but is
remuneration would certainl Y insurance busineonof
well be so contingent, remote tminimalaasgtoebe categorize as inconse-
quentialzed . indirect, and might
In MY opinion, given this background, Mr.
interest in Holiday and his degree of involvem�entreincHolidegrseprocurement cial
the City towing contract are so minimal that a conflict of interest does not
exist.
The conflict of interest law is most concerned with self-dealing city official does business directly with his/her own cit
that situation is obvious 9. where a
est, or in the interest of - is the official acting in his/herTcitc,scintein
r-
the situation at hand his/her business. Therein lies the conflict.
City, but with another firm which in turn isgdbusinessinnot directly
tCit In
that situation, the possibilit with his
his duty to the City is reduced onsiderabjt between his private business and
In
strong. That is not to say that we never needThe
benexus is not as direct and
occur in such a situation. Obviousl concerned about what can
vials to use their positions with the,cit is always
offi-
with the cit to y to coercepthose p who rdoibusiness
ness with their f9s them money, to do favors for them
, or even to do usi-
always illegal as a form oftemptsbribery sextract such favors or extortion, and would ralwayseco consare
titute
o. a gross form of conflict of interest. However,
the conflict of interest law is more concerned
self-dealingwith prgsor regulating
than it is in dealin
extortion. The fact is tances
that the conflict ttof interesth such s law Permof its even self-
dealing, within some carefully defined limits. bribery or
balance between the societal interest. in preventing self-dealing b
officials and the practical necessites of municipal sea et is striking a
and medium size cities common to Iowa. 9 Y municipal
P government in the small
/304
For that same reason, it is my opinion that our legislator's intentionally
declined to prohibit or regulate the situation in which a city does business
with a firm which in turn does business with an official of that city. If
the law were otherwise, a person residing in such a comnunity, whose business
it was to provide goods or services to a wide sector of that community (such
as a grocery store or gas station), would have to preclude himself/herself
from service as a municipal official, or the consequence would be that that
city could not do business with individuals or firms which in turn did busi-
ness with that person. It would not just be difficult, it would be impossi-
ble in many of those cities for those city governments to do business with
any local firms. That result would be untenable and could not have been
intended by our legislature.
The applicable case law in this area, most of which antedates the statute in
its present form, also supports the view that Mr. Ambrisco does not have a
conflict of interest in this situation. Several of the cases surveyed in-
volved situations wherein a person or firm which secured a contract with a
governmental body later did business with an officer of that governmental
body. In those cases, The reviewing courts found no conflicts and upheld the
governmental contracts. Peo le v. Southern Suret Com an 199 Michigan 30,
165 N.W. 769; Henschen v. oar o c oo ns ec ors, 267 Ill. App. 269
(1932); Security National BanKv. ag ey, owa (1926). In People v.
Southern Suretv Company. the court made the following statement:
"Broadly stated, and carried to its logical conclusion, the posi-
tion of defendant is: that an alderman is prohibited by the char-
ter provision under consideration from sustaining any business
relations whatever with any person who has a contract with the
municipality of which he is an officer. We are of the opinion that
it was not the legislative intent to carry the inhibition so far."
Wayman v. City of Cherokee, 204 Iowa 675, 215 N.W. 655 (1927), involved a
siTion w erein the city had a contract with the son of a councilmember for
the construction of sidewalks. Prior to the initiation of that contract with
the City, the father had leased cement mixers and concrete construction
equipment to the son for a rental of $500 per year, which was to be paid out
of profits earned. The City sought to avoid paying the son on the ground
that the father had an interest in the son's contract and the contract was
therefore invalid. The Iowa Supreme Court upheld the contract, stating that
"If the facts are as claimed by appellant (the son), then the interest of
J.D. Wayman (father and councilmember) was remote and incidental only, and
constituted no part of the (city) contract in question." Nor can it, with
nothing more (without further evidence), be said that J.O. Wayman was di-
rectly or indirectly interested in the contract, within the meaning of the
statutes cited" (predecessor provision to Section 362.5) (emphasis added).
In these cases, the courts were faced with situations in which the facts did
not suggest that the governmental officers had used their position and influ-
ence to secure business from the governmental contractors, nor did they stand
to profit from those contracts. Based on the facts as I know them in this
case, I have reached the same conclusions, and have further concluded, as
already stated, that Mr. Ambrisco has no interest, direct or indirect, in
Holiday's contract with the City.
/304P
on
If we assume for the sake of discussion, however, that my opinion regarding
the existence of a conflict of interest is erroneous, the next point of
fliict
inquiry
ofiinte est lan the w iSectionis e362r.5aof theof the IowaxCode,owouldaapplyto
nthe
permit
the City to contract with Holiday. The exception found at Section 362.5(5)
contains the most stringent set of safeguards or conditions that must be
present to exempt or legalize such a transaction. Under that provision, a
contract in which a city official has an interest by reason of employment or
stock ownership exceeding 5% would be allowed if (1) it was made by competi-
tive bid, publicly invited and opened, (2) if the remuneration of employment
would not be directly affected, and (3) if the duties of employment do not
directly involve the procurement or preparation of the contract. As per
prior discussion, it is evident that all three of these criteria would be met
if the City were to award the towing contract to Holiday. The towing con-
tract
Ambrisco�slremune rembe uneration fromsemployment withp the Welt-Ambriscop
agencywilj
not be directly affected by the award of the towing contract, and he has had
nothing to do with either the procurement of that contract by Holiday, nor
with the preparation of their bid or the City's bid specs. Under these
circumstances, Section 362.5(5) would operate to allow the towing contract
between the City and Holiday.
Analysis: Appearance of Conflict
- - of Interest:
The foregoing analysis does not address, however, the question of the appear-
ance of conflict or impropriety which may arise when a city official does
bthe usiness with someone who in turn has a contract wityyh or does business with
Sectiony. In such 362.5 does note pthe sue is not rohibitor regulatehsuchladrelationshiof the p. ThetConsince
cern
in such cases should rather be with making sure that such relationships are
revealed, and that the facts and circumstances surrounding that relationship
are made a matter of public record. On that basis, the public can make a
judgment as to whether or not the city official involved has used his/her
office to their personal gain in their private business relationship. The
practice of disclosing such relationships has the effect of discouraging city
officials from attempting to make improper use of their office.
However, disclosure alone may not in some cases be sufficient to satisfy
public concerns regarding such relationships. This would be particularly
true where the business relationship between the city Official and the firm
doing business with the city is especially close and substantial, to the
point that there was an interdependence of financial fortunes. In those
cases, conflict of interest rind les, and not the strict letter of the
conflict of interest law, Section of the Iowa Code, would require that
that city official abstain from taki
that would benefit that fing any action or voting on any matter
firm or individual. Once again, this is a practice
which serves to discourage city officials from attempting to make improper
use of their office, for if the practice in such a situation is for the city
official to abstain, then those officials would never be in a position to
offer to trade their votes for private gain.
13Ok8