HomeMy WebLinkAbout1985-09-10 Info PacketCity of Iowa City
MEMORANDUM
DATE: September 5, 1985
TO: City Council
FROM: City Manager/ 1 �—
RE: Discussion of Regulation of Land Disturbing Activities -
Recommendations of Urban Environment Ad Hoc Committee
At the informal meeting of September 9, the City Council is scheduled
to discuss the recommendations (enclosed) of the Urban Environment Ad
Hoc Committee relating to land disturbing activities. If the City Council
generally is receptive to the recommendations, I propose that the City
Council direct the staff to provide more specific information concerning
the impact of a comprehensive ordinance rather than proceeding with the
drafting of such an ordinance at this time.
This procedure is recommended because the City has historically adopted
major regulatory ordinances which later have required major reworking.
The City does not have an understanding of the economic impact of the
proposed regulation and there are various alternatives in the manner and
level of control which should be considered.
The issues which should be addressed include:
1. What are the various problems which need to be controlled and
the alternatives for each?
2. What is the level of control and enforcement which the Council
and community desire and/or are prepared to accept?
3. What is the organizational structure and cost for enforcement?
4. What are the impacts of various levels of control upon land
development?
5. What are the costs of the various alternatives, particularly
to the end purchaser, primarily the homeowner?
There obviously are numerous reasons why it is desirable to develop various
alternatives and become more informed as to the consequences of implementa-
tion. In particular, the Council should then be able to make a better
decision which hopefully will result in an ordinance which will truly
regulate the necessary problems, has the potential for community support,
is capable of being administered and results in protecting the environment
with the lowest total economic cost.
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City of 10.0va City
MEMORANDUM
Date: July 21, 1985
To: City Council
From: Marianne Milkman, Associate Planner tft
Re: Recommendations of the Urban Environment Ad Hoc Committee (UEAHC)
The UEAHC is currently addressing implementation of the various elements
of the Urban Environment Policies adopted by the Council in April 1985.
These adopted polices are to preserve and protect environmentally sensi-
tive lands, to preserve and promote the creation of buffer areas and open
space, to preserve and protect the unique attributes of Iowa City's public
and private neighborhoods, to preserve and enhance the entranceways to
Iowa City, and to seek to ensure that certain unique features within Iowa
City remain perpetually accessible to public view.
The two attached recommendations suggest methods of protecting and
preserving environmentally sensitive. lands. Such environmentally sensi-
tive features include, but are not limited to, natural stream corridors,
and drainageways, steep slopes, woodlands, ravines, and unusual geologic
features and topography. The regulation of land disturbing activities is j
basically aimed at controlling excessive grading, such as the topping or
removal of hills, by requiring grading permits, as well as requiring
erosion control for all development. The site development planprocess I
provides a means of identifying specific natural features on a site, and
is a tool for innovative development which is sensitive to these natural
features.
This memo provides some indication of additional time and costs for the '
City and the developer resulting from the adoption of these recommenda-
tions. This should permit Council to fairly evaluate the recommendations.
Any new regulations which implement adopted policies will require some
extra commitment on the part of the City; it is a matter of weighing the
expected gains against added costs. Staff would like a realistic ap-
praisal by Council of its commitment to the implementation of these
policies, in order to plan for the development of appropriate ordinances
and procedures for implementing the ordinances.
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I. Regulation of Land Disturbing Activities
Currently the City requires preliminary plats or plans submitted for
subdivisions, large scale developments (LSRD and LSNRD) and Planned
Development Housing (PDH) to show existing contours. For these
developments the City also requires the developer to submit erosion II!
control and storm water management pians prior to the beginning of
site work. The Design Standards for Public Works Improvements
Section X - Erosion and Sedimentation Control, also provide some
"Guidelines for Grading" in conjunction with erosion control.
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The existing regulations do not require erosion control for residen-
tial developments of less than two acres or for commercial and
industrial developments of less than one acre, nor do they provide
any control of grading operations.(Grading is defined to include
both excavation and fill.) The UEAHC recommends the regulation of
grading activities in order to minimize the effects of development on
the stability of steep slopes, to reduce severe alterations of the
natural topography ("topping" or removal of hills), to preserve
natural drainage ways, to minimize erosion and runoff problems, and
to prevent unnecessary clearance of vegetation.
To this end the UEAHC recommends that grading plans be submitted for
all developments (with some exceptions, see p. 3 of recommendations).
Such plans would show existing and final grades and would be reviewed
by the Department of Public Works. Where grading takes place on
slopes of 15% or greater, grading (and erosion control) plans
certified by a registered soil engineer or equivalent must be
submitted.
The recommended regulations also would require erosion control plans
for all development (with certain exceptions). Erosion control plans
for small, relatively flat developments would only need to show that
bales of hay will be placed at appropriate locations to prevent
erosion or deposits of dirt on neighboring properties.
Advantages and Disadvantages of Regulating Land Disturbing Activities
In developing the recommendations, the UEAHC determined what goals
and objectives were to be achieved by the regulations and weighed a
number of methods of accomplishing these goals. The Committee looked
at past problems relating to grading and erosion control and deter-
mined how such problems could best be resolved in the future.
Currently the City has no requirements relating to grading operations
per se. Review of grading plans should minimize the adverse effects
of such operations. For instance, if a certified grading plan had
been required for the Cliff Apartments (on a slope of 29X), detailed
soil borings would have revealed the instability of the slope and the
extent of the proposed excavation would have been clear. Similarly,
no permits or plans are required for excavation such as is currently
occurring on the north side of Highway 1 West, where the topography
is undergoing considerable change and erosion is taking place.
Development of residential areas less than two acres in size,
particularly on steep slopes, can create erosion problems for
adjacent properties. This was the case when some of the lots in
Windsor Heights (7th Avenue extended) were developed and considerable
erosion occurred into Ralston Creek below. Requiring erosion control
plans for these smaller lots should prevent such problems by allowing
the City to review and anticipate such problems.
Requiring grading and erosion control plans, and particularly
certified plans for steep slopes, should help to preserve natural
topography, drainageways, and stable slopes, as well as controlling
erosion thus carrying out the policy adopted by the Council. However,
some additional staff time will be involved. Until the ordinances
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and procedures for review of grading and erosion control plans are
developed it is difficult to estimate accurately additional costs
involved. The Department of Public Works does not anticipate a large
increase in required staff time, since all large developments are
already reviewed in detail for erosion control and storm water
management. Additional review by this department would be for small
developments on steep slopes. However, depending on the performance
standards or criteria developed for review of grading proposals,
developments on steep slopes may require up to one or two hours of
additional review time, at a cost of approximately $15/hour, as well
as site visits to monitor compliance with the grading permit.
The Department of Housing and Inspection Services (HIS) may need to
perform an additional site inspection at a minimum cost of $15 per
site inspection for some developments.
For developers/contractors grading plans for sites on slopes of less
than 15% would add little cost, since they already have to have plans
of existing and proposed grades. Similarly, erosion control plans in
most cases should not be complex. However, certified grading and
erosion control plans for development on slopes of 15% or greater
would add to the developers' costs. General estimates from local
civil engineers indicate costs of between $200 and $5,000 depending
on the size of the development and the severity of conditions.
II. Recommendations on Site Development Plans
The site development plan. review process is used by many communities
to ensure the protection and preservation of environmentally sensi-
tive areas as well as other special features of the community, and to
provide a tool for innovative development that is sensitive to these
special features. Such a process basically requires one additional
procedure of any one requesting a building permit or filing large
scale development or subdivision plans. Applicants are required to
submit a natural features check list for the property they plan to
develop. If such a check list indicates no protected natural
features (see suggested list in the recommendations), building permit
or development plan review proceeds normally. If protected natural
features are present, points are assigned to each feature and if a
threshold point limit is reached (e.g., 15 points), a site develop-
ment pian will be required.
A site development plan is similar to an LSRD or LSNRD plan and would
be reviewed by staff and the Planning and Zoning Commission according
to the general standards outlined in the recommendations. Specific
performance standards, such as requiring a certain percentage of
floodplain, woodland, or steep slope be left in its natural state,
might also be applied. The intent of this process is to permit
development of environmentally sensitive areas in such a way as to
preserve and enhance the special features as far as possible but
still allow development to take place.
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Advantages and Disadvantages of the Site Development Plan Process
Some specific advantages of site development plan procedures are
listed in Section E of the recommendations. The procedure seems to
work well in other communities such as Ann Arbor, MI, and is useful
in pinpointing the special features of a piece of property. Experi-
ence in other communities indicates that developers and cities have
worked well together in this process. The main disadvantages of the
process relate to the additional time and cost to both developers and
the City. The initial checklist will require site review by staff as
well as evaluation of the protected natural features. Such evalua-
tion probably would need to be done jointly by an engineer and a
staff member familiar with native trees and vegetation.
A site development plan will require details of vegetation and
topography not currently required on building permit and small
development plans. However, if grading plans are also required,
topographical features and drainage patterns will already be avail-
able through that review process and no extra work should be re-
quired.
Site development plan review would probably be handled similarly to
large scale development or subdivision review by the Department of
Public works and the Department of Planning and Program Development
(PPD). Without specific ordinances and procedures it is difficult to
estimate the time required for such review and the increase in number
of site visits. It is also difficult to estimate how many additional
plans would be submitted for review since not every development will
be subject to plan review. As stated previously, in the Department
of HIS, if an additional site visit is necessary the cost is a
minimum of $15. This department also charges $15 per hour for review
of plans. In the Department of PPD, it is not clear whether the ad-
ditional work required for site development plan review could be
carried out with existing staff levels, as the main burden of working
with developers and reviewing site development plans would fall on
this department. Again, it is a question of how many developments
other than targe scale developments and subdivisions already reviewed
by the department, would require additional review, and, until
procedures are fully developed, it is difficult to estimate how much
additional time would be required.
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8/14/85
RECOMMENDATIONS TO THE CITY COUNCIL
CONCERNING LAND DISTURBING ACTIVITIES
On April 9, 1985, the City Council of Iowa City adopted the policy recommen-
dations of the Urban Environment Ad Hoc Committee for the preservation and
protection of Iowa City's urban environment. These policies address several
important elements integral to the character of Iowa City which need to be
protected and preserved.
Among these elements of concern are environmentally sensitive areas which are
defined as follows:
Environmentally sensitive areas* are geographical areas containing
natural, ecologic, archeological or aesthetic resources or features
which are of value to the public and the destruction of which might
result in the permanent or long-term loss of important public
resources (such as mature woodlands), to economic loss, in hazards
such as landslides or flooding, and in the long-term degradation of
the environment. Examples of such environmentally sensitive areas
include, but are not limited to, uncommon or unique geologic
formations, natural stream corridors including floodplains,
floodways and greenbelts of the Iowa River and associated creeks,
natural stornwater detention areas, bottom land and upland woods,
steep slopes, areas of high recreational value for bird watching
and observation of flowers and other plants and animals, and areas
containing a high concentration of ecologic and aesthetic features.
The Urban Environment Ad Hoc Committee recommends that the City Council of
Iowa City consider the following means of implementation for the preservation
and protection of environmentally sensitive areas. The Committee is recom-
mending general concepts it wishes to see included in future regulations; it
is not setting forth specific ordinances to be considered.
1. Regulation of Land Disturbing Activities
Goal
The goal of regulating land disturbing activities is to insure develop-
ment that is sensitive to the underlying topography and to control excess
erosion, hazardous rock and soil slippage, sediment production, and
drainage and water management problems associated with grading and
removal of vegetative cover.
Ob ectives
Objectives of such regulations are to address and minimize the effects of
the following:
1. Development affecting the stability of steep slopes.
2. Severe alterations (excavation or fill) to the natural topography.
3. Clearance of vegetation or destruction of vegetation by means other
than clearance.
4. Alterations to the naturallexisting drainageways.
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S. The creation of erosion and runoff orto adjacent and/or downstream
Properties.
6. The effect of land disturbing activities in ravines.
The Committee suggests the following definitions:
1. Grading shall mean excavation orfill or any combination thereof and
shall include the conditions resulting from any excavation or fill.
2. Land disturbin activit shall mean andisturbance to land in excess
o cu a yar s w tc may result in erosion, including, but not
limited to, tilling, removal of vegetative cover, stockpiling of
soil, and grading, except that the term shall not include minor land
disturbing activities.
3. Minor land disturbino activities shall mean any disturbance to land
not exceeding cuD c yards ncluding, but not limited to, home
gardening, landscaping and normal repair of private drives and
lanes.
4. Ravine shall mean a long, deep gully in the earth's surface with side
slopes of at least 50 feet but not greater than 500 feet, all or part
of which have a slope of 15 percent or greater.
S. Steep slope shall mean a slope any part of which contains a grade of
15 percent or greater.
Recommendations
The Urban Environment Ad Hoc Committee recommends that the following be
included in the implementation of regulations addressing land disturbing
activities:
1. All land disturbing activities shall be subject to the approval of a
grading plan and/or permit.
2. All land disturbing activities shall be subject to the approval of an
erosion control plan.
3. All land disturbing activity on slopes of 15 percent or greater shall
require the submission of detailed grading and erosion control plans
certified by a professional, registered soil engineer, or equiva-
lent.
4. For steeper slopes, e.g. 25 percent or greater, additional require-
ments be adopted, such as percentage of land to be left in its
natural state.
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Exemptions
The Committee recommends that the following be exempted from these regu-
lations:
1. The construction of individual single-family dwelling units except on
steep slopes (15 percent or greater) shall be exempt from gracing
plan/permit requirements but shall be required to file erosion
control plans.
2. Minor land disturbing activities as defined, including home garden-
ing, landscaping, patio construction, etc.
3. Minor land leveling associated with normal agricultural activities
which does not require grading below the top soil, or land disturbing
activities for the construction of access roads to support agricul-
tural production.
4. Cemetery graves, sanitary landfill sites (subject to other regula-
tions), emergency grading and other similar activities.
Prohibitions
Any land disturbing activity shall be prohibited in the lower portion of
a ravine -to preserve and protect its natural water carrying capacity.
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Exemptions
The Committee recommends that the following be exempted from these regu-
lations:
1. The construction of individual single-family dwelling units except on
steep slopes (15 percent or greater) shall be exempt from gracing
plan/permit requirements but shall be required to file erosion
control plans.
2. Minor land disturbing activities as defined, including home garden-
ing, landscaping, patio construction, etc.
3. Minor land leveling associated with normal agricultural activities
which does not require grading below the top soil, or land disturbing
activities for the construction of access roads to support agricul-
tural production.
4. Cemetery graves, sanitary landfill sites (subject to other regula-
tions), emergency grading and other similar activities.
Prohibitions
Any land disturbing activity shall be prohibited in the lower portion of
a ravine -to preserve and protect its natural water carrying capacity.
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RECOMMENDATIONS TO THE CITY COUNCIL 8/14/85
CONCERNING SITE DEVELOPMENT PLANS
In order to implement the policy recommendations of the Urban Environment Ad Hoc
Committee which were adopted by the City Council of Iowa City on April 9, 1985,
the Committee recommends that the Council consider the site development plan
Process as a means to preserve and enhance Iowa City's environmentally sensitive
areas. As with the Committee's recommendations concerning land disturbing
activities, the purpose here is to recommend general concepts the Committee wishes
to see included in future regulations. Specific ordinances are not being pre-
sented for consideration at this time.
I. Regulations of Development Through a Site Development Plan Process
Goal
The goal of the site development plan process is to identify environmentally
sensitive natural features located on land proposed for development so that
those features may be protected and enhanced through sensitive and innovative
development.
Objectives
The objectives of site development plans include:
1. The preservation of natural topographic features including steep slopes.
2. The preservation of natural ecosystems and vegetative cover (such as
woodlands) which contribute to the climatic and aesthetic nature of the
City.
3. The preservation of natural drainageways and floodplains.
4. The encouragement of innovative and alternative approaches to conventional
flatland practices in order to minimize grading, cut and fill operations,
as well as the amount of impervious surface.
Recommendation - The Urban Environment Ad Hoc Committee recommends that the
0 o�g procedure be included in regulations designed to protect and enhance
environmentally sensitive areas.
Site Development Pian Process
A. Protected Natural Features
The first step in the site development plan process is to define the
natural features that are to be protected. These will include:
1) Steep slopes (15% or greater).
2 Ravines.
3 Drainageways.
4) Floodways and floodplains.
5 Certain trees, groves of trees and woodlands as defined in Attachment
A.
6) Unusual geologic features, e.g. exposed limestone bluffs.
1) Prairie (to be further defined)
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B. Natural Features Checklist
The next step is the requirement that a natural features checklist be
submitted with all preliminary subdivision, LSRD, and LSNRD plans and with
building permit applications for all development other than single family
or duplex development on individual lots. The checklist shall include a
list and/or site plan of natural features present and an approximate
percentage of land occupied by each one.
It will be the responsibility of the developer to submit the checklist and
the responsibility of City staff to perform inspections of sites as it
deems necessary to ensure the integrity of the checklist. If possible, the
City shall maintain an inventory of undeveloped environmentally sensitive
lands to assist developers and City staff with such checklists.
C. Site Development Plan Required
The protected natural features will be assigned a numerical value depend-
ent upon the extent and need for protection. If this point total reaches
a certain limit, or where 25% or more of the site is occupied by protected
natural features, a detailed site development plan must be submitted for
review.
0. General Standards for Site Development Plan Review
The site development plan will be reviewed to make sure that it complies
with the following general standards:
1) The development will promote the goals and objectives of the site
development plan process.
2) The development will not cause a serious and lasting degradation of
the environment.
3) The development will guarantee the conservation and protection of
irreplaceable natural resources from pollution, impairment or destruc-
tion by minimizing alteration of the natural site features to be
preserved.
4) The development will blend into the natural setting of the landscape
for orderly growth and development.
5) The development shall strive for diversity and originality in lot
layout and siting of buildings in order to achieve the best possible
relationship between the development and the land.
E. Specific Advantages of a Site Development Plan
1) It provides a mechanism for identifying natural features to be
protected.
2) It can strongly influence the redirection of development away from
natural features through negotiations.
3) It can give the City some control over development on land that does
not require a grading permit.
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4) It can deal directly with the issue of preservation of trees and other
natural vegetative cover in subdivisions, LSRDs, LSNRDs, and on
individual lots.
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Attachment A
Protected Trees, Groves of Trees and Woodlands
A. Trees
The following list indicates trees which are native to the Iowa City area and
which should be protected because, once damaged or destroyed, they could not
be immediately replaced, or, in some cases, may be impossible to replace. The
minimum size/trunk diameter of trees to be protected will need to be deter-
mined for each species.
Species
Aspen (Quaking)
Aspen (Big Tooth)
Ash (Green/White)
Basswood/Linden (American)
Birch (River)
*Butternut
Cedar, Red
*Cherry (Wild Black)
Dogwood (Pagoda)
Elm (American)
Hackberry
*Hickory (Shagbark, Butternut, Mockernut)
*Hop Hornbeam
*Hornbeam
Locust Black
Locust Honey;
Kentucky Coffee Tree
Maple (Black, Su ar)
*Oak (White, Burr?
Oak (Northern Red, Pin, Northern Pin, Swamp White,
Shingle, Chinkapin, Black)
Pine (Eastern, White)
Plain (American)
Redbud
Serviceberry
*Walnut (Black)
Trees marked with * have a high priority for protection because of their
stature, relative rarity or the difficulty of reestablishing them if damaged
or destroyed.
This list is not intended to be all inclusive; it could also include trees not
native to the area particularly in locations where redevelopment is taking
place.
2. Grove of Trees - Any stand of trees on an area of 1/4 acre or more consisting
of eight or more trees (size to be determined) which are on the list of
protected trees.
3. Woodlands - An area of one-half acre or more containing at least 100 growing
rees w ch are on the list of protected trees.
Recommended Performance Standards
1. Such standards should require that the maximum number of trees possible be
preserved.
2. For groves of trees and woodlands, SOS (or some other appropriate percentage)
of the grove or woodland should be required to remain in its natural state.
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City of Iowa City
MEMORANDUM
DATE: September 3, 1985
TO: City Council
FROM: City Manager�,./
RE: Economic Development
The City Council has requested that a meeting be scheduled with Ray
Muston to discuss the progress of First Capitol Development, Inc., and
particularly to emphasize the kinds of industry we should be seeking'
for Iowa City. If you have topics which you wish Ray to present or if
there are particular kinds of business and industry which you want to
include in the discussion, please let me know at an early date. Ray
will plan to discuss the progress and goals of First Capitol, the role
of the City and projected plans for the next six months.
cc: Ray Muston
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City of Iowa City
MEMORANDUM
DATE: September 3, 1985
TO: City Council
FROM: City Manager�,./
RE: Economic Development
The City Council has requested that a meeting be scheduled with Ray
Muston to discuss the progress of First Capitol Development, Inc., and
particularly to emphasize the kinds of industry we should be seeking'
for Iowa City. If you have topics which you wish Ray to present or if
there are particular kinds of business and industry which you want to
include in the discussion, please let me know at an early date. Ray
will plan to discuss the progress and goals of First Capitol, the role
of the City and projected plans for the next six months.
cc: Ray Muston
:
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City of Iowa City
.MEMORANDUM
Date: September 6, 1985
To: City Council
From: Assistant City Manager
Re: Legislative Issues
Council recently requested a summary of the voting record of Senator Small
and Representatives Doderer and Lloyd -Jones on key issues during the most
recent legislative session. I have identified 12 bills which were passed by
the legislature and which were of specific interest to the City. Please note
that there were a number of other bills on which the City took a position but
which were still in committee at the close of the first session of the
current General Assembly. These may or may not be considered further during
the next session.
S.F. 266 - Veterans' Preference - This bill removes absolute veterans'
preference and substitutes a system of additional points when considering job
applicants who are veterans. The City strongly supported this legislation
and formally communicated this support to our area legislators, all of whom
voted in favor of the bill.
S.F. 296 - Deposit/Investment of Public Funds - This legislation provided a
remedy for problems relating to the repeal of the state sinking fund during
the 1984 legislative session. Council received considerable information from
the Finance Director regarding this bill in conjunction with your recent
format action in officially declaring depository financial institutions and
authorizing the execution of agreements. The City strongly supported this
legislation and formally communicated this support to area legislators. All
three voted in favor of its passage.
S.F. 364 - Open Scope of Collective Bargaining - This bill substantially
widens the scope of bargaining and significantly erodes management rights.
Council very strongly opposed this legislation and communicated extensively
in writing and verbally with our area legislators regarding our opposition.
This bill was hotly debated in the legislature and a targe number of amend-
ments were considered. Despite the City's strong opposition, all three of
our area legislators voted in favor of this bill. The bill was eventually
vetoed by the Governor at the urging of cities and the League of Municipali-
ties.
S.F. 385 - Prevailing Wage Law - This bill provides for payment of the
prevailing wage (Davis -Bacon) on all public improvements undertaken by the
State. The City opposed this legislation in view of the additional costs for
some State supported projects and under the assumption that once it was
applied to the State, the next step would be to make it applicable to
governmental subdivisions of the State as well. The city's opposition was
formally communicated to our legislators. All three voted in favor of this
legislation despite the City's opposition. This bill was vetoed by the
Governor.
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S.F. 395 - Omnibus Tax Bill - This bill includes a variety of tax measures.
The most significant issue on which the City took a position was the authori-
zation for local option taxing alternatives. The City has strongly supported
local option taxes for several years and has communicated this support to
area legislators continually. Local option taxing authority was only one of
many provisions in this bill. Senator Small voted in favor of it. While
Representatives Doderer and Lloyd -Jones voted against it, their votes
reflected their opposition to other provisions of the bill. They both
strongly supported local option taxes.
S.F. 434 - Municipal Assistance - The City has strongly supported continua-
tion of municipal assistance on an ongoing basis. This too has been communi-
cated to area legislators continuously over the years. All three area
legislators voted in favor of extending this program.
S.F. 562 - Transportation (Transit Assistance) - This is another issue which
the City has supported on an ongoing basis and has regularly requested the
support of our area legislators. All three voted in favor of this bill.
S.F. 565 - Gas Tax - This bill raised the gasoline tax and earmarked specific
portions of the increased revenue for the RISE program under which money will
be allocated to the State (50%), counties (25%), and to localities (25%) for
specific street or road improvements relating to economic development needs.
The City recognized the benefits of this program and supported it as it
developed during the legislative session. While no written communication on
the City's position on this particular bill was made, it does meet a need
which has been discussed in broad terms with area legislators in the past.
All three area legislators voted in favor of this bill.
H.F. 523 - Lease -Purchase Law - This bill provides for the lease -purchase of
facilities by cities. It is the basis for the City's current plan for
financing a new building adjacent to the Civic Center. The City supported
this legislation and formally communicated its support to our area legisla-
tors who all voted in favor of this bill.
H.F. 691 - Police Psychological Testing - A bill passed in 1984 mandated
testing of police applicants as prescribed by the Iowa Law Enforcement
Academy. It was costly to cities and applied to all applicants. This bill
provides that ILEA will provide the testing and only to candidates being
finally considered for employment. This was necessary remedial legislation
supported by the City and by all our area legislators.
H.F. 750 - Landfill Tonnage Fee - This bill provides that a fee of 251 per
ton must be collected by all landfill operators and turned over to the
Department of Water, Air and Waste Management to establish a Groundwater Fund
for statewide monitoring of landfills and correction of serious problems at
landfills where the operator cannot afford to do so. This legislation may
result in the users and operators of responsibly run landfills subsidizing
the cost of correcting problems in those landfills which have not been re-
sponsibly operatedThe City was aware of this legislation only very late in
the session. Its impact was unclear and we did not formally communicate our
position to area legislators. All three area legislators voted in favor of
this bill.
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H.F. 753 - Comparable Worth - The City did not take a formal position on this
legislation. However, discussions with area legislators gave strong indica-
tion that the City supported the concept of comparable worth. Senator Small
and Representative Lloyd -Jones voted in favor of this legislation. Represen-
tative Doderer voted against the bill. It should be noted, however, that
Representative Doderer strongly supported the concept of comparable worth and I'
voted against this bill because a number of provisions which she supported
were not included and because other provisions which she opposed had been
amended into the bill.
Council has also requested a more detailed explanation of several pieces of
legislation which passed in the recent session including how these specif-
ically relate to the City of Iowa City. Attached are memoranda from various
department heads addressing those bills.
If you have further questions regarding these issues, please contact me. j I:
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H.F. 753 - Comparable Worth - The City did not take a formal position on this
legislation. However, discussions with area legislators gave strong indica-
tion that the City supported the concept of comparable worth. Senator Small
and Representative Lloyd -Jones voted in favor of this legislation. Represen-
tative Doderer voted against the bill. It should be noted, however, that
Representative Doderer strongly supported the concept of comparable worth and I'
voted against this bill because a number of provisions which she supported
were not included and because other provisions which she opposed had been
amended into the bill.
Council has also requested a more detailed explanation of several pieces of
legislation which passed in the recent session including how these specif-
ically relate to the City of Iowa City. Attached are memoranda from various
department heads addressing those bills.
If you have further questions regarding these issues, please contact me. j I:
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City of Iowa City
MEMORANDUM
Date: September 3, 1985
To: Dale Helling, Assistant City Manager
From: Rosemary Yitosh, Director of Financep)
Re: Recent Legislation
Following is information as requested for four bills and a summary of their
impact on Iowa City. Please contact me should you need any additional
information on any of these bills.
1. SF 296 - Deposit and Investment of Public Funds: This bill creates a
hybrid sinking fund/pledging of asset system for the deposit and invest-
ment of public funds. Resolutions were on the August 27, 1985, Council
Agenda which will bring the City into compliance with this legislation.
Future impact may result from the fees that banks will implement to
administer the pledging of assets for public deposits. Any such fees
will be monitored closely and staff will consider the bidding of banking
services if there develops a wide variance in fee structures between the
Iowa City banks.
2. SF 434 - Municipal Assistance: This appropriates municipal assistance
amounting to approximately $6.67 per capita. The City's FY86 Budget
projecting Municipal Assistance at $6.73 per capita. The amount as
approved by the Legislation will result in a revenue shortfall for the
City of approximately $3,030.
3. SF 449 - Allocation of State Ceiling of Industrial Revenue Bonds: This
bill provides a formula for the allocation of the State ceiling for
industrial revenue bonds to implement the federal Deficit Reduction Act
of 1984. Previously the Governor's Office had enacted an Administrative
Ruling which in essence provided the same formula as set forth in this
bill. The Administrative Ruling brought the State into compliance until
formal legislation could be passed which defined the allocation proce-
dure. This allocation should not present a problem as the total Indus-
trial Revenue Bonds issued in the State of Iowa in past years have never
exceeded the current State ceiling.
4. HF 523 - Lease of Real and Personal Properties: This bill makes explicit
the right of a city or county to lease or lease -purchase real or personal
property and sets out terms and procedures which will apply when the
right is exercised. This is the enabling legislation for the concept of
lease -purchasing which Iowa City has been reviewing as a financing
alternative for the construction of a new Administrative Offices Building
Addition.
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City of Iowa City
MEMORANDUM
Date: August 26, 1985
To: Dale Helling, Assistant City Manager
From: Doug Boothroy;-Qirector of Housing & Inspection Services
Re: S.F. 318 and H.F. 696
S.F. 318 - AUTHORITY TO ISSUE ADMINISTRATIVE SEARCH HARRANTS.
Purpose:
Provides, in response to recent Iowa Supreme Court decisions, Iowa courts
with the authority to issue administrative warrants to governmental agencies
seeking to enforce their constitutional home rule or statutory grant of
authority to inspect.
Comment:
This legislation should have no impact on the operation of the Department of
Housing and Inspection Services. If the legislation had not been enacted,
serious enforcement limitations would have existed where rental housing
inspection was refused by the owner.
N.F. 696 - ABANDONED HOUSING.
Purpose:
Provides a procedure for abatement of City Housing and Building Code viola-
tions in abandoned buildings.
Comment:
The procedure appears to be time consuming and cumbersome, therefore, not
likely to be used except as a last resort. This legislation should have
little impact on the operation of the Department of Housing and Inspection
Services.
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City of Iowa City
MEMORANDUM
Date: August 26, 1985
To: Dale Helling, Assistant City Manager
From: Doug Boothroy;-Qirector of Housing & Inspection Services
Re: S.F. 318 and H.F. 696
S.F. 318 - AUTHORITY TO ISSUE ADMINISTRATIVE SEARCH HARRANTS.
Purpose:
Provides, in response to recent Iowa Supreme Court decisions, Iowa courts
with the authority to issue administrative warrants to governmental agencies
seeking to enforce their constitutional home rule or statutory grant of
authority to inspect.
Comment:
This legislation should have no impact on the operation of the Department of
Housing and Inspection Services. If the legislation had not been enacted,
serious enforcement limitations would have existed where rental housing
inspection was refused by the owner.
N.F. 696 - ABANDONED HOUSING.
Purpose:
Provides a procedure for abatement of City Housing and Building Code viola-
tions in abandoned buildings.
Comment:
The procedure appears to be time consuming and cumbersome, therefore, not
likely to be used except as a last resort. This legislation should have
little impact on the operation of the Department of Housing and Inspection
Services.
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City of Iowa City
MEMORANDUM
Date: August 22, 1985
To: Members of the Iowa City Council
From: R. Keating, Fire Chief 1l!�
Re: Senate File 391
Exempting fire trucks as a source of air contamination was the first step in
an attempt to ensure the continued availability of large gasoline engines in
future fire trucks. This was mostly a concern of the very small and volun-
teer fire departments. Many of them feel that with all the restrictions on
the gasoline engine, they are being forced to the diesel engine which they
claim is too expensive and exceeds their needs. They now have state exemp-
tion but still need to gain exemption from federal regulations. Senate File
391 does not affect any Iowa City fire equipment. The change in the Code was
because of a concern for the future of the large gasoline engine. The Iowa
City Fire Department went to buying diesel -powered units in 1972 because they
required less pollution controls and. size -for -size outperformed the gas
engine. I see no likelihood in a renewed interest by the Iowa City Fire
Department in large gasoline engines.
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j City of Iowa City
MEMORANDUM
Date: August 21, 1985
To: City Manager and City Council
From: Chuck Schmadeke, Director of Public Works
Re: Iowa Senate File 511
Iowa Senate File 511 allows the Department of Water, Air and Waste Management
an additional 18 months to develop a plan for the delineation of floodplain
and floodway boundaries for selected stream reaches in various river basins
of the state. Iowa City will not be included in this plan since we already
have a flood insurance study that delineates floodplain and floodway•bounda-
ries on all major waterways within the city. Therefore, Iowa Senate File 511
has no bearing on our City.
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City of Iowa City
MEMORANDUM
Date: August 23, 1985
To: Dale Helling, Assistant City Manager
From: Larry McGonagle, Transit Manager
Re: S.F. 562
The purpose of Senate File 562 as pertains to Transit is as follows.
To provide for the annual appropriation for Public Transit through the State
General Fund. Iowa City Transit's share is $58,266.
In addition, S.F. 562 requires transit systems that accepted the Transit Loan
in fiscal year 1984 and did not "earmark" the funds, to repay the loan early.
For example, some half dozen systems accepted the loan but did not spend the
money on operations, as Iowa City Transit did. Instead, these systems put
the money into the bank to draw interest. Iowa City Transit spent the money
(;111,407) on wages and benefits. Many legislators felt that systems who
banked the money showed, by this action, that they did not need the money.
For this reason they are required to repay the loan early. Letters request-
ing the repayment have been sent to the systems that the State Attorney
General has determined did not "earmark" the money. Systems such as Iowa
City Transit are scheduled by law to repay the money no later than June 30,
1989.
Prior to this bill, it was felt that this loan repayment would be forgiven
and Iowa City Transit would not need to repay the money. With the passage of
S.F. 562 this situation seems to change. It now appears that the loan will
have to be repaid. At this time it is difficult to determine the effect on
Iowa City Transit. By the repayment time there could be a change in leader-
ship at both the State and Federal level. This could possibly lead to a
change in philosophy concerning transit and repayment might be easier. Under
the present conditions, or if things get worse, repayment would be made from
the Transit Reserve Fund. This could adversely affect the proposed improve-
ments in Transit's bus fleet.
The remaining sections of the bill do not pertain to Transit. I have no
knowledge of their purpose.
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City of Iowa City
MEMORANDUM
Date: August 27, 1985
To: Dale Melling, Assistant City Manager
From: Marianne Milkman, Associate Planner iii
Re: Recent Legislation - HF 265 Conditional Zoning
During the past legislative session, the Iowa General Assembly passed and the
Governor signed enabling legislation authorizing local governments in Iowa to
implement conditional zoning. This permissive legislation, which became
effective July 1, 1985, amends Iowa Code Sections 358A.7 and 414.5, and
overrides Sections 358A.4 and 414.2, to permit cities and counties to enter
into agreements with a developer on a rezoning application.
the new
islation states
cBasically hangingland f om loneszoning district that
to another azoni g districart of an td r an
ordinance approving a site development plan, a council may impose conditions
on a property owner which are in addition to existing regulations." The only
specific requirements set forth in the statute for conditions placed by the
Council on a rezoning or site development plan are:
1. The conditions must be agreed upon by the property owner in writing prior
to the Council public hearing or adjournment of the hearing; and
2. The conditions must be reasonable and imposed to satisfy Dublic needs
directly caused b es the reque c anae.
It is standard practice for conditions to be imposed on Planned Development
Housing and for some negotiations to take place on conditions for subdivi-
sions, Large Scale Residential Developments and Large Scale Non -Residential
Developments with the developer's agreement. However, the imposition of
conditions on rezoning applications has frequently been struck down in the
courts because it appeared that "contract" zoning was involved.
While any rezoning must conform to policies of the City's comprehensive plan,
the power to add certain "public welfare" conditions to such rezoning
provides the City with added benefits. For instance, the proposed agreement
relating to the rezoningfor Pepperwood place Shopping Center imposes
conditions which will improve the traffic circulation in the general area in
whithech the shoppingncenterer s and athe need d. nce foraimproving theditional ffic generalltrafficecircula-
then is improvement directly
f trafficaused c circulation the requested
the publicthe ions and areuvalid
under the new legislation.
Similarly a proposed agreement attaching certain conditions to the rezoning
of floodplain property at the southern city limits to permit sand extraction,
will permit the eventualuse of this land for general industrial purposes, as
indicated in the City's comprehensive pian, while allowing heavy industrial
use (extraction) in the interim. In fact, the land will be more usable for
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general industrial purposes after the extraction is complete since one of the
conditions placed upon the rezoning, is to fill to one foot above the 100
year floodplain after extraction is complete.
The danger with conditional zoning is that the imposition of conditions by
the City may be seen and used as a means of rezoning properties which should
not be rezoned. However, if rezonings are reviewed with strict reference to
the Comprehensive Plan and are consistent with that plan, this should not be
a problem.
It is important that the City develop standard procedures for conditional
zoning agreements to insure that all rezoning applications are treated
equitably and the requirements of Chapter 414.2 of the Iowa Code are met.
Under these circumstances the new legislation should prove beneficial and
useful in implementing the policies of the City's comprehensive plan.
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MEMORANDUM
Iowa City Public Library
Date: August 22, 1985
To: Dale Melling, Assistant City Manager
From: Lolly Eggers, Library Director
Re: Requested Summary of Impact of HF438 on the Library
A. Background
1. Most of this legislation was requested by the Iowa Library Associa-
tion (ILA).
2. Two years ago the original bill amended Section 702 of the Iowa Code
and established that concealment of library materials on one's
person, or failure to return them within six months, was evidence of.
intent to deprive and persons could be prosecuted for theft, fraud or
related offenses.
3. The request from the ILA this year was to decrease the time from six
months to two months for materials and to include library equipment
as well as materials in both the "shoplifting" and the "failure to
return" sections.
4. The legislation was revised pretty much as requested plus sections
were added which:
a) Require the library to collect a security deposit for items
valued at $500 or more.
b) Require the library to mail a "registered certified mail notice
that such materials or equipment are overdue and criminal action
may be taken."
c) Allows the library to request assistance of dispute resolution
centers or appropriate law enforcement agencies in recovering
equipment from borrowers after it is three days overdue. This
was a compromise. The request was to file charges on equipment
after 3-7 days but the legislators set it at one month.
B. Impact on Library
1. The reduction to two months will improve the library's ability to
recover materials. Generally by six months the person has moved from
the area. Last year the library was unable to recover approximately
1300 items at an estimated value of $13,000.
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MEMORANDUM
Iowa City Public Library
Date: August 22, 1985
To: Dale Melling, Assistant City Manager
From: Lolly Eggers, Library Director
Re: Requested Summary of Impact of HF438 on the Library
A. Background
1. Most of this legislation was requested by the Iowa Library Associa-
tion (ILA).
2. Two years ago the original bill amended Section 702 of the Iowa Code
and established that concealment of library materials on one's
person, or failure to return them within six months, was evidence of.
intent to deprive and persons could be prosecuted for theft, fraud or
related offenses.
3. The request from the ILA this year was to decrease the time from six
months to two months for materials and to include library equipment
as well as materials in both the "shoplifting" and the "failure to
return" sections.
4. The legislation was revised pretty much as requested plus sections
were added which:
a) Require the library to collect a security deposit for items
valued at $500 or more.
b) Require the library to mail a "registered certified mail notice
that such materials or equipment are overdue and criminal action
may be taken."
c) Allows the library to request assistance of dispute resolution
centers or appropriate law enforcement agencies in recovering
equipment from borrowers after it is three days overdue. This
was a compromise. The request was to file charges on equipment
after 3-7 days but the legislators set it at one month.
B. Impact on Library
1. The reduction to two months will improve the library's ability to
recover materials. Generally by six months the person has moved from
the area. Last year the library was unable to recover approximately
1300 items at an estimated value of $13,000.
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2. The requirement to send a certified registered letter will increase
the library's costs of recovering materials but it can be done
selectively and its financial and staff impact will probably be
minor.
3. The addition of equipment to the law is important but the requirement
of having to wait one month before charges can be filed is too long.
Equipment is only checked out for 24-36 hours, so after 3-7 days,
intent to defraud is generally rather clear. The library has had
many fewer incidents with equipment than with materials, however, so
it isn't currently a major problem.
4. The required security deposit may be all right, but was not requested
and we are doubtful that it was needed. In order to comply with the
law, the Library Board adopted a policy at its August meeting that
will require .a $25 deposit for items valued over $500 starting
9-1-85. The library loans seven pieces of equipment and three 16mn
films valued at $500 or more.
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City of Iowa City
MEMORANDUM
Date: August 21, 1985
To: Assistant City Manager
From: City Clerk )1W
Re: H.F.537 Relating to Special Elections to Fill Vacancies in City
Councils
The purpose of this recent legislation is to provide that a special election
to fill a vacancy on a City Council be subject to the same provisions
regarding the holding of primaries and runoff elections. Prior to this
action special elections were not subject to either primary or runoff
regulations.
It is important to note that this act changes only 372.13, subsection 2,
paragraph b. Paragraph a, of the same section and subsection, dealing with
vacancies being filled by Council appointment remains unchanged. Only when a
tpetition requesting
heCouncilchooses special
election filed
avacancy byappointment and crallsa special
election, will the result of the recent change be felt.
House File 537 states that "A special election held under this subsection is
subject to sections 376.4 through 376.11..." or the same requirements as for
other City Council elections, as follows:
376.4 - Candidacy
376.5 - Publication of ballot
376.6 - When primary must be held
376.7 - Date of primary
376.8 - Persons elected in city elections
376.9 - Runoff election
376.10 - Contest
376.11 - Candidates nominated by write-in vote
This legislation will make the special election, if needed, to fill a City
Council vacancy consistent with all rules and regulations regarding regular
Council elections. Current City Charter Section 2.10 provides for Council
vacancies to be filled as provided by State law. In discussing the impact of
this legislation with the legal department, no negative aspects should be
experienced by the City as a result of House File 537.
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City cf Iowa City
MEMORANDUM
Date: August 26, 1985
To: Mayor McDonald and City Council
From: Monica Moen, Associate Planner 11
Re: House File 652
House File 652, signed by the Governor on May 14, 1985, became legislation on July
Self -85. Supported sbill amends
S ppor edMunicipalImprove3Code of I
Improvement Districts Smay be provides
created inhaa
residential area which is designated an historic district. Formerly, only
contiguous properties which were zoned for commercial or industrial uses could be
organized into SSKIDs. The legislation refers to "duly designated historic
districts" but does not distinguish between National Register of Historic Places
district designation and local historic district designation.
The process of establishing a SSMID may only be initiated by the property owners
within the proposed district. At least 25% of all owners of property within the
proposed district who represent ownership of property with an assessed value of
25% or more of the assessed value of all the property in the proposed district
must be in favor of SSMID designation in order to begin the designation procedure.
Adoption of the ordinance establishing a district requires the affirmative vote of
three-fourths of all the members of the Council. On the other hand, if 25% of all
owners of property within the proposed SSMID representing ownership of property
with an assessed value of 25% or more of the assessed value of all the property in
the proposed district oppose establishment of a SSMID, the adoption of the
ordinance requires a unanimous vote of the Council.
With SSMID designation, the property owners within the district may authorize the
City to impose a tax levy, the proceeds of which could finance district capital
improvements, operating expenses associated with administering the district, and
the debt service on any self -supported municipal improvement district bonds which
are issued. The amount of tax levied for these purposes are set by the property
owners within the SSMID. These taxes are not subject to the levy limitations set
in the Code of Iowa.
The advantages of the ability of residential historic districts to become
Self -Supported Municipal Improvement Districts echo the advantages of SSMID
designation formerly reserved for commercial and industrial zoned areas. As a
result of district designation, improvements within the area may be accelerated
due to the availability of a source of funds and funds may be accumulated until an
amount sufficient to finance a costly improvement is available. This designation
also tends to make an area develop a long range view of itself and to carefully
plan its own development.
If additional information is desired, please do not hesitate to contact me.
cc: Neal Berlin, City Manager
Don Schmeiser, PPD Director
Jim Hencin, CDBG Coordinator
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City of Iowa City
MEMORANDUM
Date: August 16, 1985
To: Dale Helling
From: Anne Carroll
Re: Impact of HF691 - Police Candidate Psychological Testing
It appears that the impact of HF691 (Police Candidate Psychological Testing)
will be minimal and procedural only.
It is anticipated that the Iowa City Civil Service Commission will continue
to administer its own battery of physical ability, cognitive and psychologi-
cal tests to Police Officer candidates, as this is necessary to establish
candidate ranking for certification eligibility. Prior to candidates being
certified by the Civil Service Commission, candidates will also be required
to take and pass a battery of tests prepared by the Law Enforcement Academy.
Tests will be administered at no cost to the City. Candidates who do not
pass the Academy tests cannot be certified by the Commission. Tests the
Academy will use have not yet been determined so redundancy is possible.
In summary, the impact of this law may be in additional inconvenience to
applicants, and in restrictions on the Civil Service Commission's certifica-
tion decision-making power, but the legislation will not result in additional
cost to the City.
bdw4/7
City of Iowa City
MEMORANDUM
DATE: September 6, 1985
TO: City Council nn
FROM: Assistant City Manager ��`�tE�
RE: Attached Schedule
Attached please find a proposed timetable for the operating budget and
Capital Improvement Program. Please note the three items checked. These
are issues for which Council previously requested scheduling information.
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City of Iowa City
MEMORANDUM
DATE: September 6, 1985
TO: City Council nn
FROM: Assistant City Manager ��`�tE�
RE: Attached Schedule
Attached please find a proposed timetable for the operating budget and
Capital Improvement Program. Please note the three items checked. These
are issues for which Council previously requested scheduling information.
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Description
September 9
Finance Department distributes CIP forms to staff and board
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and commission members.
CITY OF IOWA CITY
OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM
TIME TABLE - 1985/1986
Date
Description
September 9
Finance Department distributes CIP forms to staff and board
and commission members.
✓ September 17
Council discusses Fee Study at informal meeting.
September 23
Council discusses Administrative Salary survey at informal
meeting.
September 24
Finance Department holds two meetings to distribute budget
manual and packets of forms and printouts to all departments.
(9:00 a.m. and 2:00 p.m. in the Council Chamber.)
October 1
City Council meets with Department Heads to review department
goals and needs.
October 3
First draft of Program Division Statement dictated or
submitted by departments to Word Processing for typing.
October 4
Departments submit CIP project estimate forms to Finance
Department. (All forms must be typed.)
October 9
Assistant City Manager begins review of Program Division
Statement with Department/Division Heads.
October 11
Department Heads to notify Finance Secretary of number of
participants from his/her department and boards and commis-
sions for the October 22 CIP meeting.
October 14
Departments submit completed budget forms to Finance Depart-
ment.
October 15
Finance Department will distribute copies of project estimate
forms to those scheduled to attend the CIP review session on
October 22.
October 21
Council discusses Transit Study at informal meeting.
October 22
All Department/Division Heads and Board/Commission members
interested in the CIP meet to discuss projects submitted for
FY87-91 CIP.
October 24
Second meeting to review CIP, if needed. (First meeting
scheduled for October 22.)
October 25
Finance Department submits Long-range Financial Projections
Report to City Manager for review.
October 28
Finance Department begins budget review.
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Date
Description
November
9
Long-range financial projections sent to City Council.
November
14
City Council holds goal setting session and reviews long-
range financial projections.
November
18
City Manager begins review of budget and CIP.
November
25
Departments submit final draft on Program Division Statement
to Assistant City Manager.
December
11
Assistant City Manager finalizes PDS's and submits them to
Finance.
December
13
Administrative adjustments to budgets are made by City
Manager and finalized - includes ESL's and Capital Outlay.
December
18
CIP is finalized by City Manager.
December
30,
Budget and CIP printed.
31
January 3
Proposed budget and CIP submitted to the City Council.
January 11,
Council reviews the budget with the City's staff/Department
25
Heads. (All day sessions.)
February
4
Council makes final decisions on the revisions to the
'
proposed budgets. The resulting revised proposed budget will
be presented to Iowa City citizens at the public hearing.
February
11
Council sets February 25 as the date for the public hearing
on the proposed budget.
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February
17
City Clerk publishes a public hearing notice.
February
17
A summary of the proposed budget is available for public
I s
review at the Finance Department, Library and City Clerk's
office.
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February
25
Council holds public hearings for the FY87 Budget, General
f
Revenue Sharing, and the FY87-91 CIP.
March 11
Council approval of the FY87 operating budget and the FY87-91 j
CIP budget.
March 15
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Finance Department certifies the FY87 Operating Budget to the
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City of Iowa City
MEMORANDUM
Date: September 6, 1985
To: Mayor and City Council /f��
From: Terrence L. Timmins, City Council l%.�f'
Re: Status of My Review of the Gas and Electric Franchise Issue
In my memo to the City Council of August 16th, I indicated that I would have
draft copies of the franchise ordinances ready for Council review in late
August. That projection, it turns out, was a little more optimistic than it
should have been. I did complete my draft of the electric franchise ordi-
nance and the regulatory ordinance this past week, and I am now engaged in
the preparation of a memo for the Council in which I will do a comparison of
the existing franchise ordinance, the ordinances prepared by my predecessor,
Mr. Jansen, the franchise ordinances proposed by Iowa -Illinois, and the
ordinances which I have prepared. The preparation of that memo turned out to
be considerably more complex than I anticipated and it is not ready to
present to Council at this time. Consequently, that memo, including copies
of the franchise and regulatory ordinances, will be presented to the Council
either at the informal session on Monday, September 9, or at the formal
session on Tuesday, September 10. Initial Council discussion will then be
scheduled to occur at the informal session on Tuesday, September 17.
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City of Iowa City
MEMORANDUM
Date: September 6, 1985
To: City Council p
From: Rosemary Vitosh, Director of Finance r
Re: General Obligation Bond Issue
The attached Presale Analysis for the City's upcoming General Obligation Bond
Issue was prepared by Evensen Dodge, Inc., the City's financial advisors. Mr.
Wayne Burggraaff, of Evensen Dodge, and I will be at your informal meeting on
September 9, 1985, to discuss this analysis and to answer any questions you may
have on the bond issue.
The public hearing on the bond issue is scheduled for September 10, 1985.
Information packets which will include the presale analysis and project descrip-
tions will be available for the public at the public hearing and from my office
prior to the public hearing.
Staff reviewed issuing these bonds approximately one year ago but deferred the
issue for two primary reasons. First, the Airport runway extension project was
not finalized to the point where it could be included in a bond issue, and
second, bond interest rates at that time were very high. As the presale analysis
indicates, on page 5, interest rates one year ago were 108 basis points higher
than current interest rates. The current lower interest rates should save the
City over $300,000 in interest costs.
Until bonds were issued, the City temporarily funded the various project expendi-
tures from available fund balances. As a result those funds providing the
temporary financing lost interest income on the investment of their fund bal-
ances. Therefore, the project costs being funded by this issue do include a
reimbursement of lost interest income to those funds which provided interim
funding.
The City is well within its Debt Margin as total outstanding debt including this
issue will be:
Outstanding Debt as of 6/30/85 $13,202,725
This Bond Issue 4 700 000
IT7;'g02;7Z5
vvnnnvvavnn
And, the City's Debt Margin is computed as follows:
Total Assessed Valuation $1,248,123,717
5% Debt Limit (State Code) x 05
80% Debt Limit (City Fiscal Policy) x80
TOTAL ALLOWABLE DEBT $gd�J
•nevev vavav
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■■ EVENSEN DODGE, INC.
1 ■■ FINANCIAL CONSL LTANTS
1
IA27.85A/13
PRESALE ANALYSIS
$4,700,000 G.O. BONDS
CITY OF IOWA CITY, IOWA
JOHNSON COUNTY, IOWA
Proposed Sale Date: October 16, 1985
iEVENSEN DODGE, INC.
FINANCIAL CONSULTANTS
September 3, 1985
Ms. Rosemary Vitosh
Finance Director
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Dear Ms. Vitosh:
Attached is our Presale Analysis prepared in connection with the
City's proposed issuance of $4,700,000 of General Obligation
Bonds on October 16, 1985.
The Presale Analysis summarizes the purpose of the Bond issue,
r? describes how the Bond issue has been structured, and discusses
J other aspects related to the marketing of the Bonds.
We will prepare a Postsale Analysis reporting the results of the
sale, market conditions preceding and immediately following the
sale, comparative issues in the market, and other matters
relevant to the sale of the Bonds. The Postsale Analysis will be
j submitted following the closing and delivery of this issue.
We look forward to a successful offering.
EVENSEN DODGE, INC.
S. . Burggraaff urgt `"10�*
Wayne
Senior Vice President
dls
IAV41jggAv/LI4 4InneapolIs Minnesola 55402
612/330.3535 000/320.0200 000/320-0100 Minnesota
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iEVENSEN DODGE, INC.
FINANCIAL CONSULTANTS
September 3, 1985
Ms. Rosemary Vitosh
Finance Director
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Dear Ms. Vitosh:
Attached is our Presale Analysis prepared in connection with the
City's proposed issuance of $4,700,000 of General Obligation
Bonds on October 16, 1985.
The Presale Analysis summarizes the purpose of the Bond issue,
r? describes how the Bond issue has been structured, and discusses
J other aspects related to the marketing of the Bonds.
We will prepare a Postsale Analysis reporting the results of the
sale, market conditions preceding and immediately following the
sale, comparative issues in the market, and other matters
relevant to the sale of the Bonds. The Postsale Analysis will be
j submitted following the closing and delivery of this issue.
We look forward to a successful offering.
EVENSEN DODGE, INC.
S. . Burggraaff urgt `"10�*
Wayne
Senior Vice President
dls
IAV41jggAv/LI4 4InneapolIs Minnesola 55402
612/330.3535 000/320.0200 000/320-0100 Minnesota
TABLE OF
CONTENTS
i
Page
I
SUMMARY OF RECOMMENDATIONS
PURPOSE OF THE SALE
. .
. . . . . . . . . .
. 1
OF THE BOND ISSUE
iSTRUCTURING
3
I.
RATING. . .
. . . . . . . . .
9
REGISTRATION .
4
. . . . . . . . .
q
GENERAL MARKET CONDITIONS
. . .
. . . . . . . . . . . .
SALESCHEDULE
. . . . . . . . .
. . . . . . . . . . . . .
. 6
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EXHIBIT A --Debt Redemption Schedule
EXHIBIT B --Estimated Debt Service
and Abatement Schedule
!
EXHIBIT C --The Bond Buyer's Index
Graph
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IA27.85A/15
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PRESALE ANALYSIS
$4,700,000 G. 0. BONDS
CITY OF IOWA CITY, IOWA
JOHNSON COUNTY, IOWA
Proposed Sale Date: October 16, 1985
SUMMARY OF RECOMMENDATIONS
Recommendations and arrangements for the Bond sale have been
developed by Evensen Dodge, Inc., after consultation with City
Finance Director, Rosemary Vitosh, concerning the most desirable
method for structuring the proposed Bond issue and the City's
need for Bond proceeds. Mr. Ken Haynie, Bond Counsel to the City
of Iowa City, was consulted on legal matters and procedures
relating to the proposed sale.
The arrangements and conditions for the Bond sale will be
incorporated in resolutions and other documentation prepared by
Ahlers, Cooney, Dorweiler, Haynie & Smith, the City's Bond
Counsel, and Evensen Dodge, Inc. Action authorizing the Bond
sale is tentatively scheduled for City Council consideration at
the September 10, 1985 City Council meeting.
The major recommendation contained herein is that the City issue
$4,700,000 of General Obligation Bonds to be sold on October 16,
1985, for the purposes described below.
PURPOSE OF THE SALE
Proceeds of this Bond sale will provide the City with the funds
to definitely finance a number of Essential Corporate Purpose
public improvement projects.
The Bond proceeds are estimated to be used as follows:
Uses of Funds
City Project Costs $4,595,000
Underwriter's Discount/
Issuance Costs 105,000
TOTAL $4,700,000
IA27.85A/16
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The City projects to be funded by this bond issue are as
follows:
St. Anne Drive
Airport Corporate Hanger
Airport Runway Improvements
Taft Speedway Sewer Extension
Clinton Street Reconstruction
Burlington Street Paving Repair
Alley Paving - FY86
Dubuque Street, Iowa Avenue to Park Road
Mercer Park Sidewalk
Willow Creek Park Sidewalk
Sidewalk Construction - FY86
Villa Park Sidewalk
East Side Water Storage Tank
Rundell/Dearborn Storm Sewer
First Avenue Culvert
Crandic Railroad Crossing
Tanglewood/Ventura
Alley Paving - Lyons Addition
Burlington Street Bridge Reconstruction
Iowa Avenue Bridge Reconstruction
Melrose Court
Byington/Melrose Intersection
Spruce Street Storm Sewer
Shamrock/Arbor Storm Sewer
Foster Road - Land Acquisition
Highway 1/I-80 Sewage Pumping Facilities
TOTAL
$ 47,200
166,600
857,100
116,400
127,800
36,200
65,400
30,500
7,100
14,100
23,500
7,200
930,800
211,800
204,000
12,800
134,100
95,900
260,000
360,000
102,200
25,000
55,500
257,700
62,500
383,600
$4,595,000
Debt service for approximately 378 of the $4,700,000 Bond issue
is planned to be abated by funds available from such sources as
special assessments and water utility revenues.
IA27.85A/17
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The City projects to be funded by this bond issue are as
follows:
St. Anne Drive
Airport Corporate Hanger
Airport Runway Improvements
Taft Speedway Sewer Extension
Clinton Street Reconstruction
Burlington Street Paving Repair
Alley Paving - FY86
Dubuque Street, Iowa Avenue to Park Road
Mercer Park Sidewalk
Willow Creek Park Sidewalk
Sidewalk Construction - FY86
Villa Park Sidewalk
East Side Water Storage Tank
Rundell/Dearborn Storm Sewer
First Avenue Culvert
Crandic Railroad Crossing
Tanglewood/Ventura
Alley Paving - Lyons Addition
Burlington Street Bridge Reconstruction
Iowa Avenue Bridge Reconstruction
Melrose Court
Byington/Melrose Intersection
Spruce Street Storm Sewer
Shamrock/Arbor Storm Sewer
Foster Road - Land Acquisition
Highway 1/I-80 Sewage Pumping Facilities
TOTAL
$ 47,200
166,600
857,100
116,400
127,800
36,200
65,400
30,500
7,100
14,100
23,500
7,200
930,800
211,800
204,000
12,800
134,100
95,900
260,000
360,000
102,200
25,000
55,500
257,700
62,500
383,600
$4,595,000
Debt service for approximately 378 of the $4,700,000 Bond issue
is planned to be abated by funds available from such sources as
special assessments and water utility revenues.
IA27.85A/17
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STRUCTURING OF THE BOND ISSUE
Several alternatives were considered and discussed with the City
finance director before reaching a final decision on the best
debt structure for this issue. The structure finally selected
provides for repayment of the debt over a ten year period, as
shown in Exhibit A of this Presale Analysis. Exhibit B illus-
trates the tax -rate impact of the estimated new debt service less
projected abatements.
The City's existing debt structure provides for rapid retirement
of the City's general obligation debt. The structuring of this
issue continues to provide for rapid debt retirement by struc-
turing nearly level principal payments over the life of the
issue. This type of structure is commonly employed by high
quality "Aaa" issuers such as the City of Iowa City.
Under current market conditions, high quality issues with
maturities of "intermediate" range of ten to fifteen years are
regarded to be highly marketable issues. The debt redemption
schedule for this issue providing for a term of ten years is at
the low end of this range.
On an overall basis, the $4,700,000 bond issue has an average
maturity of 6.126 years. The issue has been structured in
$25,000 increments for the purpose of allowing trading and
selling in this customary block size.
Several features have been added in the structuring of the issue
to provide the City with flexibility and the ability to take
advantage of lower interest rates should they occur in the
future.
The primary feature which adds flexibility is the provision for
the City to call or redeem bonds maturing beginning in 1994 and
extending to the end of the issue. This allows the City to call
30.38 or $1,425,000 of the $4,700,000 of principal if interest
rates in the future are lower, and the City can save interest
cost by replacing the current debt with lower cost debt. Also,
investment bankers and underwriters who bid on the bond issue
will be required to submit their bid with coupons in ascending
order to minimize debt service in the early years and optimize
the potential use of the call feature.
The ability to deepen the call feature to this maximum level and
require that coupons be bid in ascending order is made possible
by provision of an underwriters discount. Iowa State statutes
were amended in 1983 to permit a municipality to offer an under-
writer's discount in an amount not exceeding 28 of the bond issue
size. The amount of discount offered relates to the term and
difficulty anticipated in selling the issue. The discount
permits the successful bidder (underwriting syndicate) to pur-
chase the bonds with specified coupons and to reoffer the
IA27.85A/18
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bonds at Par. If no
discount were allowed,
the successful bidder
r
would have to bid a
their commission by
higher coupon rate on
selling the bonds
the bonds to obtain
li
at a
premium. Experience
has shown that use
of the discount helps
make an issue more
attractive to purchasers
and offsets the
impact of the call
feature. Therefore,
the discount is strongly advisable in the
marketing of this issue.
�j
These bonds will be
18 below
offered to underwriters
at a price approxi-
mately the amount of the bonds.
IRATING
�y The City of Iowa City currently has an "Aaa" rating from Moody's
Investors Service, Inc., the highest rating given by Moody's. A
preliminary review of City financial condition and ratings of
comparable municipalities indicates that this rating will likely
be renewed for the issue scheduled to be sold on October 16,
1985.
While we can make no guarantee as to the quality of the rating
�j the City will receive, it is essential that it be requested.
REGISTRATION
4� This Bond issue will be the first in which the City has offered
�i Bonds in fully registered form. Registration is a requirement
under federal law beginning with bonds issued after July 1, 1983.
Registered bonds take the place of coupon bearer bonds and will
require the City to either appoint a registrar and transfer agent
for this issue, or act in this capacity itself. The registrar
�I and transfer agent's duties will include maintaining a registered
list of owners of each of the Bonds and mailing each of the
registered owners principal and interest due them on appropriate
payments dates. When ownership of Bonds changes, the Bonds will
Ij be sent to the transfer agent who will destroy the old Bond and
issue a new Bond in the name of the new registered owner.
The City is evaluating proposals from qualified banks and trust
companies in Iowa and Minnesota and is also considering acting as
its own registrar. The City expects to make this decision prior
to the sale.
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IA27.85A/19
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GENERAL MARKET CONDITIONS
There are a number of indices available, all of which are de-
signed to plot the tax exempt bond market or various categories
of that market. One of the best known of these indices is the
twenty bond Bond Buyers Index.
A graph dated August 29, 1985, showing the movement of The Bond
Huyer's Index (BBI) over the last two years is included wit'Tiis
analysis and identified as Exhibit C. It demonstrates the
relative strength of the tax-exempt market in 1985. The BBI
reached a five-year low on June 6, 1985, when it fell to a level
of 8.608. Since then it has risen to a high of 9.18 on August
22, 1985 and fallen this week to its current level of 9.098.
The bids that the City can expect to receive on the sale of this
issue will be considerably better than bids which might have been
received one or two years ago. The BBI in this same week of
August, 1989 was 10.178, 108 basis points higher than the present
rate. The BBI rate at this time in 1983 was 9.598, 50 basis
points higher than the present rate.
If this issue were to be sold today, we believe that it would
receive a net interest rate in the range of 7.758 to 8.258.
Nevertheless, the possibility of shifts in the market exists
because of its sensitivity to events that cannot be foreseen.
Therefore, we cannot predict what the actual rate of interest
will be when the Bonds are sold on October 16, 1985.
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IA27.85A/20
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Tentative Bond Sale Schedule i
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Iowa City, Iowa
August 8, 1985
I
Tentative Bond Sale Schedule i
Iowa City, Iowa
August 8, 1985
Initial debt issuance planning meeting with
Evensen Dodge personnel and City Finance
jDepartment
staff. E
August 27, 1985
City Council sets public hearing date for I i
September 10, 1985. 9}°
September 9, 1985
Presale Analysis prepared by Evensen Dodge t
and submitted to City by this date.
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September 9, 1985
City Council review of Presale Analysis and d
debt issuance proposals.
September 10, 1985
Public hearing; City Council consideration
and action on resolution authorizing bond f
sale. 1
September 11-20,
1985
Evensen Dodge will analyze and prepare j
disclosure information required for a { .
Moody's rating and an Official Statement.
September 29, 1985
Draft copies of an Official Statement will
be submitted to City staff and Bond Counsel
for review.
{�
September 27, 1985
Final draft of Official Statement will be
submitted to the printer. j.,..I
October 1, 1985
Official publication of Notice of Bond Sale
+
October 1, 1985
Official Statements will be mailed to
L
underwriters and other interested parties
throughout the country. i +
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October 8, 1985
Official publication of Notice of Bond Sale.
October 8-15,
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1985
Potential bidders contacted, questions from
underwriters and analysts concerning proposed I
sale answered.
October 16, 1985
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Bond sale (Bid opening at 11:15 A.M.; City -
64
Council consideration at 12:15 P.M.).
1
October 17 -
November 8, 1985
Work with Bond Counsel on details concerning
arrangements for closing and delivery.
(I
November 11, 1985
Approximate date for closing and delivery.
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IA27.85A/21
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CITY OF
IOWA CITY, IOWA
j
$4,700,000 G.O. BONDS
I J(
DEBT SERVICE SCHEDULE
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CITY OF
IOWA CITY, IOWA
j
$4,700,000 G.O. BONDS
I J(
DEBT SERVICE SCHEDULE
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DATE
PRINCIPAL
COUPON
INTEREST
PERIOD TOTAL
FISCAL TOTAL
I:
6/
1/86
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202,664.59
202,664.59
202,664.59
12/
1/86
u
173,712.50
173,712.50
.i
6/
1/87
450,000.00
6.000000
173,712.50
623,712.50
797,425.00
12/
1/87
160,212.50
160,212.50
�}
`�•
6/
1188
450,OOD.00
6.500000
160,212.50
610,212.50
770,425.00
12/
1/88
145,587.50
145,587.50
Y
6/
12/
1/89
1/89
475,000.00
6.800000
145,587.50
129,437.50
620,587.50
129,437.50
766,175.00
6/
1/90
475,000.00
7.100000
129,437.50
604,437.50
733,875.00
12/
1/90
112,575.00
112,575.00
6/
1/91
475,000.00
7.400000
112,575.00
587,575.00
700,150.00
12/
1/91
95,000.00
95,000.00
of
6/
1/92
415,000.00
7.600000
95,000.00
570,000.00
665,000.00
�dt
12/
1/92
76,950.00
76,950.00
6/
1/93
475,000.00
7.800000
76,950.00
551,950.00
628,900.00
f
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12/
1/93
58,425.00
58,425.00
�y
6/
1/94
475,000.00
8.000000
58,425.00
533,425.00
591,850.00
i
12/
1/94
39,425.OD
39,425.00
6/
1/95
475,000.00
6.200000
39,425.00
514,425.00
553,850.00
12/
1/95
19,950.00
19,950.00
6/
1/96
475,000_00
8.400000
19,950.OD _.
494,950.00
514,900.00
L
4,700,000.00
2,225,214.59
6,925,214.59
ACCRUED
2,895.21
2,895.21
4,700,000.00
2,222,319.38 6,922,319.30
.
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BATED If/ I/BS WITH DELIVERY OF If/
BOND YEARS 28,791.667
4/85
AVERAGE COUPON
7.729
AVERAGE LIFE
6.126
N I
C X
7.891918 X USING 99.000000D
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IA27.85A/23
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FY Ending
June 30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
CITY OF IOWA CITY, IOWA
$4,700,000 GENERAL OBLIGATION BONDS
ESTIMATED DEBT SERVICE AND ABATEMENT SCHEDULE
Annual Debt Service
Tax Rate
(2)
(Fiscal Total)
Abatement (1)
F
$202,664.59
t
797,425.00
295,047.25
770,425.00
285,057.25
766,175.00
283,484.75
733,875.00
271,533.75
700,150.00
d;
665,000.00
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628,900.00
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FY Ending
June 30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
CITY OF IOWA CITY, IOWA
$4,700,000 GENERAL OBLIGATION BONDS
ESTIMATED DEBT SERVICE AND ABATEMENT SCHEDULE
Annual Debt Service
Tax Rate
(2)
(Fiscal Total)
Abatement (1)
F
$202,664.59
t
797,425.00
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FY Ending
June 30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
CITY OF IOWA CITY, IOWA
$4,700,000 GENERAL OBLIGATION BONDS
ESTIMATED DEBT SERVICE AND ABATEMENT SCHEDULE
Annual Debt Service
Tax Rate
(2)
(Fiscal Total)
Abatement (1)
$127,678.69
$202,664.59
$ 74,985.90
797,425.00
295,047.25
770,425.00
285,057.25
766,175.00
283,484.75
733,875.00
271,533.75
700,150.00
259,055.50
665,000.00
246,050.00
628,900.00
232,693.00
591,850.00
218,984.50
553,850.00
204,924.50
514,900.00
190,513.00
Net
Tax Rate
(2)
Levy
Impact
$127,678.69
.133
502,377.75
.528
485,367.75
.506
482,690.25
.504
462,341.25
.482
441,094.50
.460
418,950.00
.437
396,207.00
.413
372,865.50
.389
348,925.50
.364
324,387.00
.338
(1) Based upon City projection that 378 of debt service will be
abated. Rate applied on a uniform basis.
(2) Based upon current valuation of $958,607,758.
IA27.85A/27
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EXHIBIT C
Bond Buyer's Index Graph
IA27.85A/24
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BOND BUYERS INDEX (1982-85)
z e, PREPARED BY EVENSEN DODGE. INC.
'/oma i/ao //tis 1/84 7/84 1/85 7/85 1/86 '
Month
20 Year C.O. Index
THIS WEEK 9.09
LAST WEEK 9..18
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City of Iowa City
MEMORANDUM
DATE: August 29, 1985
TO: City Council and City Manager
FROM: Frank Farmer, City Engineer
RE: Schedule for the Outfall Relief Sewer System Rehabilitation Project
As requested by Council, the schedule for the above-mentioned construction
project in the area of Mercy Hospital is herein provided:
August 30, 1985 - Complete sewer installation on Johnson Street
between Market and Jefferson Streets.
September 7, 1985 - Complete paving, sidewalks, backfilling, etc.
on Van Buren Street - Between Iowa Avenue and
Market Street
Jefferson Street - Between Van Buren and
Johnson Streets
Johnson Street - Between Market and
Jefferson Streets
and open Van Buren and Jefferson Streets to
traffic.
September 9, 1985 - Close Market Street between Van Buren Street and
Johnson Street and detour traffic to Jefferson
Street.
October 4, 1985 - Complete sewer installation, paving and sidewalk
reconstruction, backfilling, etc. and reopen
traffic on Market Street.
A press release will be issued the first week of September regarding the
closure of Market Street.
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City of 6owa City
MEMORANDUM
DATE: September 4, 1985
TO: City Manager and City Council
FROM: Frank Farmer, City Engineer �iZ9
RE: Renovation and Expansion of the Benton Street Bridge
N.N.W., Inc. of Iowa City has completed the preliminary design study of
the Benton Street bridge. A copy of the study is attached.
The study establishes the need for a four lane bridge, determines how
much of the existing structure can be reused and incorporated into a
new four lane bridge, and analyses the following three alternatives:
(1) Widen on the north side -
TOTAL Cost $2,250,000
.(2) Widen on the south side -
TOTAL COST $2,440,000
(3) Widen on both sides with .the center of the
new bridge centered on the old bridge -
TOTAL COST $2,350,000
N.N.W., Inc. recommends widening on the north using the existing abutment
and pier, foundations, and providing 8 foot wide sidewalks on both sides
of the bridge. The Engineering Division concurs with this recommendation.
The Engineering Division recommends proceeding with the design of.
Alternate 01 as recommended by N.N.W., Inc. A resolution amending N.N.W.,
Inc.'s contract reflecting design costs is on the Council agenda for
September 10, 1985 Council meeting.
Federal -Aid Bridge Replacement Program (FBR) money and Federal Aid to
Urban Systems (FAUS) money is available for this project. The share of
FBR money is $650,000 and the share of FAUS money is approximately
$530,000 depending on the cost of the Dubuque Street paving project.
The City's share utilizing General Obligation Bonds is approximately
$1,070,000. It is estimated that construction can begin during October
of 1986.
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PAI
Feasibility Study
Widening and Improvement
Benton Street Bridge Corridor
Submitted by
NNW, Inc. and MMS Consultants, Inc.
August 1985
/ 71fe-
3
G/VoEL ,VV. 'VV[LLLS
J tEsic%nt
J?
316 E Coffsgz
lq�o/toa� Oty, Jotua 52240
JELEpfionE 319-351-2766
August 1, 1985
Frank Farmer, City Engineer
Civic center
Iowa City, Iowa 52290
Ree Report, Benton Street Bridge Corridor
Dear Franks
Enclosed for your review are ten (10) copies of our report
on the feasibility of improving the Benton Street Bridge Corridor.
We studied three alternate alignments$ and found that the
proposal to widen the Bridge on the North is the most functional
and economical.
We appreciate your cooperation and the opportunity to work
_I. with youl and are ready to review the report with you at your
convenience.
Sincerely,
Noel W. Willis, P.E.
President
NWWtjw
Enc.
1 heroby certify lhut this phm, specification or relsut wus
prepared by me or under my
direct lurwnnl supervision
J
and that I am ■ duly registered
Professional Engincer under
the, lows of the State orIowaSwood
`
Date
NOEL W. WILLIS, P. H.
Iown Rm No, 073
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— BENTON STREET BRIDGE PROJECT
Table of Contents
INTRODUCTION .............. 2
1 TRAFFIC STUDY ............... .
R HOW TO PROVIDE FOR A 4 LANE BRIDGE AT EXISTING SITE ........... 4
`.� Deck ..........................
Superstructure... 4
rSubstructure ....................................
I i Alignment .......... 6
...............................................
i
C.R. and I.C. Railway ........................... ..... .10
COST ESTIMATES .................................. 11
Property Acquisition Comparisons....................................I1
i Project Estimates ................ 12
...
APPENDIX A.......... .
..............144
Traffic Study .:.................................................
APPENDIX B .... 19
it Fatigue Considerations...•.......................................1
9-27
REFERENCES ..................... .....27
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UTILITY CONSIDERATIONS .... . ......................................8
City Owned Utilities ................. 8
WaterMain ........................ .
Sanitary Sewer .................................. 88
...........
Storm Sewers ................................... .......8-9
Other Utilities .......................... 9
Iowa Illinois Gas and Electric..............................:..........9
NorthwestBell .................................... .. 10
Heritage Cable Systems " "'
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— BENTON STREET BRIDGE PROJECT
Table of Contents
INTRODUCTION .............. 2
1 TRAFFIC STUDY ............... .
R HOW TO PROVIDE FOR A 4 LANE BRIDGE AT EXISTING SITE ........... 4
`.� Deck ..........................
Superstructure... 4
rSubstructure ....................................
I i Alignment .......... 6
...............................................
i
C.R. and I.C. Railway ........................... ..... .10
COST ESTIMATES .................................. 11
Property Acquisition Comparisons....................................I1
i Project Estimates ................ 12
...
APPENDIX A.......... .
..............144
Traffic Study .:.................................................
APPENDIX B .... 19
it Fatigue Considerations...•.......................................1
9-27
REFERENCES ..................... .....27
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UTILITY CONSIDERATIONS .... . ......................................8
City Owned Utilities ................. 8
WaterMain ........................ .
Sanitary Sewer .................................. 88
...........
Storm Sewers ................................... .......8-9
Other Utilities .......................... 9
Iowa Illinois Gas and Electric..............................:..........9
NorthwestBell .................................... .. 10
Heritage Cable Systems " "'
I
BENTON STREET BRIDGE PROJECT
Introduction
This report examines the necessity for and the feasibility of widening the Benton
i
Street Bridge from its present 2 lanes into a 4 lane facility.
The existing bridge, a 480' long, 5 span continuous welded plate girder bridge with
a framed floor system was opened to traffic in 1949. The superstructure is designed
to provide for 2 12' lanes of traffic, (one in each direction) and a sidewalk is provid-
ed on the north side of the bridge.
A historic note is in order regarding the design of the main carrying members, the
welded girders. The bridge was designed and built in the immediate post WWII era
when labor was plentiful and material scarce. It was appropriate at that time to
rj prepare designs which substituted labor for material both for reasons of availability
and cost. The design of the existing steel superstructure does exactly that, as welded
structures use considerably less steel than riveted ones to accomplish the same func-
tion.
I� At the time of this design, the process of welding rather than riveting structural
steel components together to form a member was in its infancy, and the Benton
Street Bridge was a leader in the viability of this technique. In the 15 years following
the construction of the Benton Street Bridge, welding would become the rule, rather
n than the exception. Many engineering reference texts of the 1960's cite the Benton
L{ Street Bridge as an example of what could be accomplished by a light welded struc-
ture.
11
2
TRAFFIC STUDY
Traffic information in this report was prepared by B & B Engineering Services
Corporation and the report from this firm is included as "Appendix A".
Current traffic information was obtained by field counts at the intersections of
Riverside Drive and Benton Street; and at Capitol Street and Benton Street.
This information shows that the traffic volume on Benton Street now is about
15,000 vehicles per day, and that the projected volume in the year 2005 is expected to
be 21,000 vehicles per day. The current volume is in excess of the service capacity of
a 2lane bridge, and the projected volume is greatly in excess of that service capacity,
clearly establishing a need for a 4 lane structure.
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1
TRAFFIC STUDY
Traffic information in this report was prepared by B & B Engineering Services
Corporation and the report from this firm is included as "Appendix A".
Current traffic information was obtained by field counts at the intersections of
Riverside Drive and Benton Street; and at Capitol Street and Benton Street.
This information shows that the traffic volume on Benton Street now is about
15,000 vehicles per day, and that the projected volume in the year 2005 is expected to
be 21,000 vehicles per day. The current volume is in excess of the service capacity of
a 2lane bridge, and the projected volume is greatly in excess of that service capacity,
clearly establishing a need for a 4 lane structure.
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HOW TO PROVIDE FOR A FOUR LANE BRIDGE AT THE EXISTING SITE
The first question to be addressed is how much of the existing structure can be
reused and incorporated into a new 4lane bridge. In making this consideration, the
bridge can be divided into three distinct components. The deck, the superstructure,
and the substructure.
Deck:
The expected life of a concrete bridge deck in a winter environment of deicing
salts is 7 or 8 years. The existing deck is several times older than normal life expec-
tancy. In addition, it does not have the correct cross section to be incorporated into
a new 4 -lane bridge. Therefore, the deck is not suitable for reuse, and should be
removed.
Superstructure:
If any of the structural steel superstructure is to be reused, the first element of
consideration must be the main carrying members, or the welded plate girders.
There are two of these girders, one on the north and one on the south. They vary in
depth from 4'0 to 8'0 and since the girder on the north is designed to carry a
sidewalk as well as its share of the roadway, it is stronger than the south girder.
Careful analysis has been performed on the entire steel superstructure and the
working stress levels are adequate to carry loads for which it was intended. Since the
south girder is lighter than the north girder, widening on the south is precluded if the
steel is to be reused. However, there is a definite caveat concerning reuse of the steel.
Many of the nation's welded plate girder bridges are now over twenty years old, and
bridge engineers are beginning to experience certain difficulties with them, and
especially with those girders which carry framed floor systems, as do the girders in
Benton Street Bridge.. This difficulty, which shows up as cracking in the steel around
welded surfaces even though the member is operating at normally accepted stress
levels is called FATIGUE. It has become quite common, and the technical journals
are filled with management techniques to overcome the distress caused by the crack-
ing.
Benton Street Bridge, built in 1949, was designed in accordance with the most pro-
gressive techniques of its day. Much has been learned subsequent to this design,
especially in the area of what details seem to cause fatigue problems. There are cer-
tain kinds of details when combined with certain stress ranges (the amount that the
stress varies as a load crosses the structure), and certain numbers of load passages
that are deemed likely, under current design specifications to lead to fatigue crack-
ing. These characteristics are all present in this steel superstructure, and it is
therefore deemed imprudent to incorporate the existing steel superstructure into a
new bridge design. A full analysis of this aspect is included as Appendix B for the
review of anyone interested in the technical details. Bridge design engineers from the
IDOT have stated that they have 150 plate girder bridges in their system which ex-
hibit fatigue cracking in the main material.
4
70-
iiSubstructure:
i^ The substructure of the bridge consists of two concrete river piers, two concrete
bank piers, and two concrete abutments. All are in reasonable good physical condi-
tion. Plans of the existing bridge show the river piers to be about 30' high and to be
p+ founded on 16 - 12" bearing piles. The bank piers are shorter, being about 20' high,
and are founded on 12 - 12" piling. The stub abutments are founded upon 12 - 10"
piling. The construction records show that all of the piling were driven to practical
`w refusal, and probably have capacity in excess of the current design allowables.
J Check of all of the foundations for current loads under current design specifications
indicates that all of the structure, except the pier caps can be incorporated into a new
design readily, and additional study shows it to be economical to do so. Therefore,
any new design scheme forthcoming will incorporate the existing foundation system
as the modification and reuse of the existing foundation system is estimated to be
about 10% less than complete demolition of the existing bridge and rebuilding com-
pletely new using prestressed concrete in the superstructure.
Once it is decided that a new design ought to incorporate most of the existing
Jfoundation into it, then the span lengths of the new bridge are set at the same lengths
as now exist, namely, 78', 1001, 1201, 100', and 78'. The 100' and 120' spans rule out
the use of the very common standard IDOT prestressed beam bridge as the longest
beam available is 95'. Alternative superstructure solutions to be considered are:
1. Continuous steel plate girders.
2. Continuous concrete box girders.
Since there are reservations as to the service life of the concrete box girders in a
i climate where de-icing chemicals are required, one is left with the structural steel
alternative.
The span lengths indicate that parallel flange composite plate girder members are
rf the most practical solution to the problem. These plate girders should be about 8'
apart and carry the concrete deck directly upon the top flange of the girder.
If the existing bridge has a 24' roadway and the new bridge will have a 4 lane road-
way of at least 56' as well as 8' sidewalks on each side, the next matter to be decided
is how to accomplish the widening. There are three options, which are:
1. Widen on the north side.
2. Widen on the south side.
f3. Widen on both sides with the centerline of the old bridge remaining on
the centerline of the new bridge.
(' It is likely that the cost of actually building any one of these alternatives will be
quite similar and that the alternate of the widening on both sides will cost somewhat
more because of the cost of dewatering two rather than one foundation pit at each
river pier. This difference is probably not enough to be more important than the two
considerations of:
! 1. Which alignment will perform the function of carrying traffic better.
!' .+ 2. Which alignment will create less property damage.
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The alignment studies are shown as:
1. Figure I Widen on the North
2. Figure 2 Widen on the South
3. Figure 3 Widen on the centerline of the existing bridge.
A review of the alignment and widening proposals shows that these proposals would
all be adequate to perform their intended purpose, but the alternate which proposes
the widening on the north provides smoother internal alignment and transitions at
Riverside Drive and at Capitol Street than the other two alternates.
A detailed study of the required property acquisition and construction easements
has been made for each of the alternatives. In order to make the impact of the alter-
natives more understandable, Table I has been prepared to show those impacts. The
properties are designated by their tenants rather than their owners for sake of quick
understanding. A review of the Table shows that widening on the North requires the
acquisition of the Robertson house, now occupied by MHI, on the northeast corner
of Riverside Drive and Benton Street, and some other moderate strips of open
ground.
Widening on the centerline of Benton Street requires the taking of the same house
as the north widening, obtaining a strip of land and a corner of the building of
Mumms, and the taking of the shop building on the Iowa City Ready Mix property.
While widening on the south does not require the acquisition of the Robertson-
MHI building, it does require some land from McDonalds, and it takes Mumms,
and the Iowa City Ready Mix shop building, as well as some other strips of open
ground.
It is clear from this short inspection, that the alternative of widening on the north
minimizes the damage to property. There is one other advantage to widening on the
north rather than on the centerline. It is that traffic may be maintained during a ma-
jor portion of the construction, as it permits the north bridge to be built as an in-
dependent unit while traffic uses the existing span. Traffic may then use the new
span while the existing span is being upgraded. There will be a period of time at the
end of the construction when the street will need to be closed to traffic, and this is
when the approach work will be completed. The utility and gradeline adjustments
will require the closure of the street. However, the ability to maintain traffic and
carry the current 14,000 vehicle per day which now use the bridge for a good part of
the construction process is a definite advantage.
As a matter of fact, almost all of the advantages go to the proposal for widening
on the north, and this alternative is recommended for adoption.
6
7
BENTON STREET BRIDGE CORRIDOR
SIGNIFICANT PROPERTY ACQUISITION COMPARISONS
Table 1
WIDEN ON WIDEN ON WIDEN ON
PARCEL NORTH CENTERLINE SOUTH
Robertson Building Acquire Acquire No
rented by MHI Entirely Entirely Acquisition
NE Corner, Benton
& Riverside Drive
McDonalds No Take
Small Const.
Easement
Mumms No Take
Small Const.
Easement
Component Homes Triangular
Land Take
Iowa City
Ready Mix
Land Strip
take 10'
No take of
building
Const. Easement
7
No Take
Small Const.
Easements
Land take
10 x 180
Sm. corner
of bldg.
5' x 32"
20' wide
Const. Easement
Smaller
Triangular
Land Take
Land Strip
take 25'
take shop
building
Const.
Easement
Larger land take
Nominal Const.
Easements
Land take
24 x 190
Bldg. take
15x40
20' w. Const.
Easement, inc.
20' strip of
building. (same as a
total take)
No take
Land Strip
take 40'
take shop
building
Const.
Easement
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UTILITY CONSIDERATIONS
As in the instance of any urban project of this proportion, major utility disloca-
f
tions will be caused by the project. The utilities divide themselves into two
categories, City Owned and Privately Owned, and are herein described.
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City Owned Utilities
,,
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Water Main
A 12' dia. water main is suspended from the underside of the superstructure. This
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main runs from abutment to abutment and is anchored in concrete thrust blocks at
each end. During the removal of the existing superstructure, it will be necessary to
shutdown, dismantle, and remove the existing main.
The main is 23 years old, which probably precludes the salvage of the main itself
although it may be possible to reuse the thrust blocks, depending upon the alignment
of the overhead steel. There may be some additional replacement required in the ap-
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proaches near the bridge abutments for adjustment. It is estimated that this work
will cost $110,000.
Sanitary Sewer
(,
A siphon runs diagonally across the construction site and between the columns of
the
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west riverbank pier. It will be necessary to locate the siphon exactly, as it may
conflict with the extended portion of the west abutment.
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The manhole for the siphon is adjacent to the west abutment, and it will be
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necessary to relocate the manhole, and expose and protect the siphon during the
driving of the west abutment piling. Some areas of the siphon may require encase-
ment.
In addition, there are incidental elements of work such as raising and adjusting
manholes to fit the- adjusted gradelines as well as temporary bypasses and new
manholes when the structural work is completed.
.,
Estimates of cost of this work are included in the approach work estimates shown
later in the
report.
Storm Sewers
It will be necessary to remove and rebuild the intake for the storm sewer at the
northeast quadrant of the Benton Street -Riverside Drive intersection.
On the east side of the river at the railroad tracks, it will be necessary to perform
following items of work:
ithe
1. Remove 2 existing intakes and 601f of piping.
2. Build manholes over ends of existing railroad crossing pipe north of
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Benton Street.
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3. Build new storm sewer from manhole to outlet north of extended east
abutment.
4. Raise existing manhole west of railroad and south of Benton Street.
5. Build 3 new intakes and connect to manholes.
At the intersection of Benton Street and Capitol Street, it will be necessary to
remove two existing intakes and their connecting pipe, and replace the intakes with
new intakes and connecting pipes.
Other Utilities
Other utility firms affected by the bridge construction are:
1. Iowa Illinois Gas and Electric
2. Northwestern Bell Telephone
3. Heritage Cablevision
4. C.R. and I.C. Railway
Iowa Illinois Gas and Electric
One of the most significant impacts to a utility is the required relocation of the
high voltage electrical distribution line which is located about 20 feet north of the ex-
isting bridge. Large power poles which carry this line are also located in the bridge
corridor.
This utility line must be removed during construction work and finally relocated
north of the widened bridge in a Right -of -Way and/or easement acquired by the Ci-
ty of Iowa City. Provision has been made in the project for such Right -of -Way to be
provided.
The utility has presented certain time considerations which need to be taken into
account with this high voltage distribution line. September, 1986 through March,
1987 has been allocated to substation upgrading. March, 1987 forward is the time
allocated to overhaul of major transmission lines. It is desired that relocation of the
high voltage distribution line be completed prior to March 1, 1987, and that such
relocation be into final position. It was also noted that the steel power poles require
about 1 year for design, fabrication, and installation.
There is also a secondary distribution line which runs in a North-South direction
through the Crandic yard and Iowa City Ready Mix site. No pole relocations are re-
quired, but temporary rerouting around the construction site may be required.
A 6" high pressure gas main is suspended from the existing superstructure near
the south girder. The main may be kept in the approaches as is, but should not be
out of service during the major heating season (late fall to early spring). This can be
accomplished by maintaining the existing line in service on the existing bridge,
suspending a parallel line from the steel superstructure of the new north span, and
then reconnecting it and putting it into service when it is time to remove the
superstructure of the present bridge.
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_i Northwestern Bell Telephone
7 Northwestern Bell has a river -crossing cable which is presently located north of
�I existing Iowa Illinois poles at the river banks. This line will be carried aerially during
construction, then be located finally on the north of the new construction site. The
company requests that 2 4" diameter pull conduits be located in the new bridge for
future lines.
i It will be necessary to relocate a junction box which is presently situated north of
"
which Benton Street side of the
river.
chwaspurrchased byNorthwe ternBell,tcthe reasonable relocation tionrcosttis
chargeable to the City.
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Heritage Cable Systems
aThis line is located on the same poles as the high voltage distribution line for Iowa
i
Illinois. It is the major facility feeding University Hospitals and the West side of
Iowa City. The cable company wishes to maintain the line on the poles in the
relocated position, and will need to coordinate with Iowa Illinois high voltage
distribution line relocation.
The C.R. and I.C. Railway
(JJ�
This railroad owns
considerable property r
occupi d by is own yards,C mpone t Homes, and Iowa CityReady Mitx.In
th t
U addition, a service track crosses Benton Street about 130' east of the east abutment
of the bridge. This service track is a design constraint, and the grade of the east ap-
proach to Benton Street Bridge will be kept to meet the track. The crossing is pro-
tected by "flasher" signals mounted on poles next to the curbs. These will have to be
relocated or replaced at the expense of the project. Provision is made in the project
-} estimate, and the application for Federal Funds contains questions which will aid in
u Federal participation in this "relocation of Signal" expense.
Other strips of open ground, including one crossing the end of the rail storage
yard will be required and these requirements are delineated on the strip maps and are
described in the property damage discussion.
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_i Northwestern Bell Telephone
7 Northwestern Bell has a river -crossing cable which is presently located north of
�I existing Iowa Illinois poles at the river banks. This line will be carried aerially during
construction, then be located finally on the north of the new construction site. The
company requests that 2 4" diameter pull conduits be located in the new bridge for
future lines.
i It will be necessary to relocate a junction box which is presently situated north of
"
which Benton Street side of the
river.
chwaspurrchased byNorthwe ternBell,tcthe reasonable relocation tionrcosttis
chargeable to the City.
I
Heritage Cable Systems
aThis line is located on the same poles as the high voltage distribution line for Iowa
i
Illinois. It is the major facility feeding University Hospitals and the West side of
Iowa City. The cable company wishes to maintain the line on the poles in the
relocated position, and will need to coordinate with Iowa Illinois high voltage
distribution line relocation.
The C.R. and I.C. Railway
(JJ�
This railroad owns
considerable property r
occupi d by is own yards,C mpone t Homes, and Iowa CityReady Mitx.In
th t
U addition, a service track crosses Benton Street about 130' east of the east abutment
of the bridge. This service track is a design constraint, and the grade of the east ap-
proach to Benton Street Bridge will be kept to meet the track. The crossing is pro-
tected by "flasher" signals mounted on poles next to the curbs. These will have to be
relocated or replaced at the expense of the project. Provision is made in the project
-} estimate, and the application for Federal Funds contains questions which will aid in
u Federal participation in this "relocation of Signal" expense.
Other strips of open ground, including one crossing the end of the rail storage
yard will be required and these requirements are delineated on the strip maps and are
described in the property damage discussion.
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0 COST ESTIMATES
I Preliminary conferences with Iowa DOT Engineers in the early stages of this study
1 brought out the information that widening and modifying a 40 year bridge would
not be much less expensive than actually building a new bridge on an open site. This
has proven to be the case, as the reuse of the foundations in the construction of the
widened bridge is estimated to save about 10% over the cost of a completely new
structure.
Cost estimates in all cases consider a 4 -lane bridge 56' from barrier to barrier.
There has been discussion as to whether one sidewalk or two sidewalks should be pro-
vided on the bridge since the second sidewalk is estimated to cost $140,000. In order
that decision -makers might have the opportunity to compare the estimated costs of
one sidewalk or two, Tables 2 and 3 are shown. Figure 4 shows a typical cross sec-
tion of the bridge when widened to the north, and carrying a sidewalk on each side.
The decision as to whether the bridge should be built with one sidewalk or two needs
to be made considering that the decision when made is a firm one. If only one
sidewalk is to be provided now, it will not be feasible to add another sidewalk on the
other side of the bridge at some future time without widening the foundations, a
costly and difficult job.
i
J In view of the actual traffic counts and projected increase in traffic over the
next 20 years, the need for a four lane facility is clearly established.
^j It is recommended that a 4 lane bridge with a 56' roadway and 2 sidewalks be
�I built on the north alignment shown. This alignment minimizes the property
damage and construction costs as well as permits the maintenance of vehicular
^1 traffic during much of the construction. Since Benton is the only arterial street in
this part of the community, it seems prudent to provide a sidewalk on each side
of the structure where the future pedestrian demand is not yet predictable.
5
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PROJECT ESTIMATES
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BENTON STREET BRIDGE CORRIDOR
i4
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Table 2
is
Two Sidewalks
6;
1 P
WIDEN ON WIDEN ON
WIDEN ON
r. 1
ITEM
NORTH CENTERLINE
SOUTH
Bridge
1,540,000 1,570,000
1,540,000
Approach work
465,000 465,000
465,000
Fl
�}
Watermain relocat.
110,000 110,000
110,000
Property Acq. and
n
Easements
135,000 205,000
325,000
�J
2,250,000 2,350,000
2,440,000
Table 3
One Sidewalk
Bridge
1,400,000 1,430,000,
1,400,000
Approach work
465,000 405,000
465,000
I—
Watermain relocat.
110,000 110,000
110,000
Property Acq. and
Easements
135,000 205,000
325,000
2,110,000 2,210,000
2,300,000
J In view of the actual traffic counts and projected increase in traffic over the
next 20 years, the need for a four lane facility is clearly established.
^j It is recommended that a 4 lane bridge with a 56' roadway and 2 sidewalks be
�I built on the north alignment shown. This alignment minimizes the property
damage and construction costs as well as permits the maintenance of vehicular
^1 traffic during much of the construction. Since Benton is the only arterial street in
this part of the community, it seems prudent to provide a sidewalk on each side
of the structure where the future pedestrian demand is not yet predictable.
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ROADWAY
ROADWAY
SID
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Q NEW RDWY
Q EXISTINGRDWY-4
CONTINUOUS STEEL
PLATE GIRDERS
UNDER REINFORCED ..I
EXISTING CAP TO OE
REMOVED & REPLACED
WITH NEW CAP TO
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CARRYREDUNDANT.,
'.
GIRDER SYSTEM -
NEW PIER
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EXISTING PIER
STREAM BOTTOM
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TYPICAL SECTION AT RIVER PIERS
1
(LOOKING EAST)
FIGURE 4
I
APPENDIX A
J
Traffic Analysis Study of The Benton Street Bridge Corridor
I. Purpose of the Study:
r I
Based on current and projected traffic volumes, determine if the existing Benton I !
Street bridge will be capable of safely and efficiently accommodating vehicular traf-
re.
• �,
11. Recommendations:
I
By the design year 2005, the traffic volumes projected to use the Benton Street
Bridge will greatly exceed the service volume of the bridge. Based on the estimated
number of vehicles alone, 21,000 A.D.T. by 2005, the Benton Street Bridge should
be expanded to four lanes.
r
Currently the geometric constraints imposed by the bridge and its approaches con- j
siderably reduce the efficiency and safety of the intersections
L(
involved. Specifically,
the east approach of the intersection of Riverside Drive and Benton Street and the 1 I'
West approach of the intersection of Benton Street
and Capitol Street have left -turn
only lanes with insufficient storage length. During peak -hour traffic, vehicles wan-
ting to turn left at these approaches
are unable to reach the left -turn only lanes
because the bridge carries only one lane of traffic in each direction. This results in !
the underutilization of the left
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protected -turn signal at the intersection of Riverside
Drive and Benton Street. Left -turning vehicles at the west approach of Benton Street
and Capitol Street causes a line
(queue) of traffic to back up on the bridge.
"1
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The Benton Street Bridge should be expanded to four lanes. The east approach of s
the intersection of Riverside Drive and Benton Street should be redesigned to
J
carry
two lanes of thru traffic in each direction with a left -turn lane, for a total of five I`
lanes at the approach. The west approach of the intersection of Benton Street
and
Capitol Street should be similarly designed.
III. Methodology;
Traffic volumes and as -built plans for the intersection of Riverside Drive (U.S.
218) and Benton Street were obtained from the Iowa Department of Transportation.
—
The traffic volumes included projected volumes for the year 2003. A multiplier of I
1.04 (from Paul MacVey, IDOT), was applied to the 2003 volumes
to bring them to
design year 2005. j
tt
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B & B Engineering Services conducted traffic counts for the intersections of: 11
Benton
!
Street and Capitol Street
f
Benton Street and Clinton Street
t
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The City of Iowa City did not have traffic data for these intersections. I'
III
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i •f Upon inspection, the traffic data for the intersection of Benton Street and Clinton
Street were found to have relatively little impact on the capacity of the Benton Street
�! nI Bridge; further analysis was not necessary. The data for this intersection can be
found in Figure 6A (not included).
Th e
traffic
ta for Benton Street and
by a
factor of 1985
543 (determined from the IDOT data) to estimate traffic olureet were mesan the
design year 2005.
The Intersection Capacity Analysis methods detailed in Chapter 6 of the Highway
CaPadry Manua! (1965) were applied to the intersections of.
Riverside Drive and Benton Street
Benton Street and Capitol Street
J
The entire report is stored at the offices of NNW, Inc., Iowa City, Iowa.
D
I
Riverside Dr.
i_j
1082
N
41644d
822
Renton Street
218 802 353
]373
2746 Riverside Dr.
16
1892
2164
94
Riverside Dr. I
2003 Tre(ftc Count
"Peak Hour Volume
1082
801 187
Benton Street :
1050
2100
186
510 1050
354
1373
FIGURE 2A
BENTON AND CAPITOL STP-EETS
Capitol St.
246
182
465
0
521
Capitol Street
i_j
355
N
260
it r mm
Benton Street
974
6 3 13
22
753
275
226 0 49
Ready Mix
398
323 1 5 70
26 I
48 I.C._ReaJdy Mix i
17
1985 Traffic Count
Peek Hour Volume
(4:30. 5:30 p.m.)
Benton Street
514
64 1029
451 515
0
c--
2005
Traffic Count
Peek Hour Volume
Benton Street
748
1499
92
645 751
14
/ 7/f- I
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1.
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4677647
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n Benton Street
FIGURE 2A
BENTON AND CAPITOL STP-EETS
Capitol St.
246
182
465
0
521
Capitol Street
i_j
355
N
260
it r mm
Benton Street
974
6 3 13
22
753
275
226 0 49
Ready Mix
398
323 1 5 70
26 I
48 I.C._ReaJdy Mix i
17
1985 Traffic Count
Peek Hour Volume
(4:30. 5:30 p.m.)
Benton Street
514
64 1029
451 515
0
c--
2005
Traffic Count
Peek Hour Volume
Benton Street
748
1499
92
645 751
14
/ 7/f- I
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Engineering Services Corporation
1218 Highland Court Iowa City, Iowa 52240
Telephone 319-351-4025
Haywood B. Belle
April 19, 1985
Mr. Noel W. Willis, P.E.
NNW Inc.
320 E. College Street
Iowa City, IA 52240
RE: Traffic Analysis Study of the Benton St
Dear Noel:
I
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Engineering Services Corporation
1218 Highland Court Iowa City, Iowa 52240
Telephone 319-351-4025
Haywood B. Belle
April 19, 1985
Mr. Noel W. Willis, P.E.
NNW Inc.
320 E. College Street
Iowa City, IA 52240
RE: Traffic Analysis Study of the Benton St
Dear Noel:
Edward H. Brinton, P.E.
The traffic analysis study of the Benton St. Bridge in Iowa City, Iowa has been
completed. A full report accompanies this letter.
Our findings show the existing bridge is not capable of accommodating future
traffic needs in this corridor. At the present, the geometric characteristics of the
bridge and its approaches reduce the efficiency of the intersections of Riverside
Dr. (U.S. 218) and Benton St. and Benton St. and Capitol St. We recommend
that the Benton St. bridge be expanded to four lanes.
If you have any questions regarding our report please contact me in our Iowa
City office.
RABM:tmb
Attachments
Sincerely,
goo �r7we' al -&,
Rachel A.B. McQuillen
An MBE Concern to Serve You
18
i
Edward H. Brinton, P.E.
The traffic analysis study of the Benton St. Bridge in Iowa City, Iowa has been
completed. A full report accompanies this letter.
Our findings show the existing bridge is not capable of accommodating future
traffic needs in this corridor. At the present, the geometric characteristics of the
bridge and its approaches reduce the efficiency of the intersections of Riverside
Dr. (U.S. 218) and Benton St. and Benton St. and Capitol St. We recommend
that the Benton St. bridge be expanded to four lanes.
If you have any questions regarding our report please contact me in our Iowa
City office.
RABM:tmb
Attachments
Sincerely,
goo �r7we' al -&,
Rachel A.B. McQuillen
An MBE Concern to Serve You
18
Fatigue Considerations
Plate Girders - Existing Benton Street Bridge
The Benton Street Bridge over the Iowa River is an interesting study of fatigue
`! analysis. The bridge was built in 1949, consisting of a symmetrical five span con-
tinuous welded steel girder bridge. The spans are 78 -100 -120 -100 and 78 ft. It is a
typical framed girder bridge. All built up members and joints are welded. At the
Jtime of the design, this type of structure was innovative. Previously, bridges were
either bolted or riveted. In fact, this was one of the first welded girder highway
bridges in the United States.
There are four major modes of failure in structural design. The first is general
yielding. That is the nominal stress in a member exceeds the yield point of the
J material and plastic deformation occurs. General yielding is a usual design con-
straint and is normally managed adequately. Second is buckling or general instabili-
ty. This can be managed by providing sections of appropriate size which are proper-
ly braced. Third is brittle fracture. This occurs in high strength steels and is not a
problem in a ductile material like mild steel. The fourth type of failure is fatigue.
This could be termed a localized plastic yielding which results in a brittle fracture
'j like failure. The ASTM definition of fatigue is (1):
J "The process of progressive localized permanent structural change occurring in
a material subjected to conditions which produce fluctuating stress and strains
!„} at some point and which may culminate in cracks or complete fracture after a
sufficient number of fluctuations."
�1 This is the type of failure which may be of concern in the Benton Street Bridge.
At the time of the design of this bridge, little was known about fatigue in bridges.
I� While the 1948 design was in accordance with the then current specifications, it
should be noted that the specifications did not include fatigue constraints. In fact, it
was not until 1971 that fatigue design was included in A.A.S.H.T.O. (American
Association of State Highway and Transportation Officials) specifications,
although prior to that, certain details were required because of fatigue. These
specifica
70 study by the
Researchtions Prog am on full e based on
welded beams (2). The current onal specificationerative shway
have
been updated based on a 1971 study of full scale welded stiffeners and attachments !
(3). These studies have identified the mechanics which cause fatigue in bridge
members.
J
There are three key factors requiring evaluation when determining whether a
Jbridge member may be at risk due to fatigue. These are:
1. The actual shape and location of the detail.
y, 2. The range of stress in the member during a passage of design load.
3. The actual number of passages of the live load or live load cycles.
r ; The detail which first attracts attention is shown on Figure 1 B. The intermediate stif-
feners are welded to the flange of the plate girder. This particular detail is no longer
19
0
Q
V2 WEB PLATE
1 %" FLANGE
PLATE }
rrrVr�
ST 5 x 12.7 STIFFENER
V; WEB PLATE
ST 5 x 12.7 STIFFENER
1 %" FLANGE PLATE
FIGURE 111
TRANSVERSE STIFFENER DETAIL
6i
20
>T
{
----�•.. .........,.. �u�aoaat�aa vs raVl-VJCU)
16-
14 -EXISTING
JEc1t` �C
13 FATIGUE LIMIT
12- (Category C)
10-
% `'f
't I
v
;. aIPROPOSED 1 I +
,:
6-
4
PIER
3_ PIER
0-
0 40 80 120 160 200 240
DISTANCE ALONG BEAM (fl)
I
'
'
STRESS RANGE
16
NORTH GIRDER (EXISTING vs PROPOSED)
`
L'
15-
14
EXISTING
1 pjf
13
FATIGUE LIMIT
(Category
C)
y
�
lo-,
9"
`K '` I t ` 1
SYMMETRICAL
a
# 1 I fl I
PROPOSED
ABOUT IL
8
f �` I 1) ,
BRIDGE
I
z
i <> SI6.
F
4 _
'
IE PIER
-
3-
PIER
2-
2-
y
1
�.,
o_
0-
0
0
40 80 120 160 200
240
;
DISTANCE ALONG BEAM (n)
FIGURE 311
l
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le
seen on welded plate girder bridges because it has been found to induce fatigue pro-
blems into girders at rather low stress ranges. Before fracture, fatigue is a localized
"j plastic yielding phenomenon which occurs at less than yield point stresses due to
stress concentrations. These occur at points of discontinuities in the direction of the
principal stress, which in Figure 1 B would be the weld across the tension Flange. To-
day, stiffeners are not welded to flanges, although some may be fitted.
Current bridge design practice, as outlined in the Specifications of the American
Association of State Highway and Transportation Officials, control fatigue by
limiting the stress range which occurs in the main material during a passage of load.
This range is defined as the algebraic difference between maximum and minimum
^t stress.
rl Figures 2B and 3B show the stress ranges for the north and south girders respec-
tively. Since the stiffeners are spaced along the entire length of the girders, the stress
range associated with the stiffener detail is of concern for that full length. It should
be noted that the 11 ksi stress range as stipulated in the specifications is exceeded in
both girders and at some length.
JIn order to determine the load passages or cycles on Benton Street Bridge, it is
necessary to review traffic records. Figure Q shows the average daily total vehicles
for the past 36 years. This is based on traffic counts obtained from James Brachtel,
P.E., City Traffic Engineer. Table 513 breaks these ADT's down into Commercial
Vehicle Cycles and Maximum Load Cycles. The Commercial Vehicle Cycles is
assumed to be 807o and Maximum Load Cycles 2% of the ADT. Commercial
Vehicles are between an automobile and a heavy truck by axle weight. Maximum
Load Cycles are those vehicles represented by the A.S.S.H.T.O. design load. From
this traffic information, it has been estimated that the total of Maximum Load
Cycles is 2,233,000 which is in excess of the largest A.A.S.H.T.O. category of
2,000,000 cycles (5).
For the type of detail shown in Figure IB (Category C) and over two million cycles
in a non -redundant load path structure, the A.A.S.H.T.O. specifications allow an
I l ksi maximum stress range (5). As shown in figures 2B & 3B, this value is exceeded
-1 in both girders. It is clear that the potential for fatigue distress exists in the main
material of the existing bridge.
If a fatigue failure should occur, would the effects on the structure be a serious
matter? The answer is a simple yes. Girder bridges are either multiple load path or
non -redundant load path structures. Figure 6B shows the difference between the
two. In the top figure the load is distributed by the slab to the stringers, then to the
floor beams, and then to the girders. Failure of one of the main two girders in the
non -redundant structure could result in the total collapse of the bridge. However, in
the multi -path structure shown on the bottom the load is distributed by the slab to
several girders. If one of the girders failed, the load would be picked up by the other
girders and failure probably would not occur. Today, the non -redundant type struc-
ture is infrequently used since the multiple load path structure greatly diminishes the
probability of serious disaster in the event of a fatigue failure.
23
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or
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TRAFFIC ON BENTON STREET BRIDGE
Average Daily Total
12-
i.
sa-
"
11-
1982
v
. .1975
10-
9.
3
8
,.
h
'e
A
7_
6
5-
rJ
10
4-
-3-1950
3-
1950
1955 1960 1965 1970 1975 1980 1985
YEAR
I.
\
FIGURE 4B
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MmmmML-
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TABLE 5B
YEAR
AVERAGE
DAILY
TOTAL
COMMERCIAL
VEHICLE
CYCLES
r
1949
3,142
91,746
22,937
1950
3,411
99,601
24,900
1951
3,690
107,748
26,937
1952
3,979
116,187
29,047
1953
4,276
124,859
31,215
1954
4,580
133,736
U t
1955
4,890
142,788
35,697
1956
5,206
152,015
38,004
1957
i
161,359
40,340
1958
5,849
170,791
42,698
1959
4,174
180,281
U
1960
6,500
189,800
U
1961
6,825
199,290
49,823
1962
7,150
208,780
52,195
1963
7,471
281,153
54,538
1964
7,790
227,468
56,867
1965
8,103
236,608
59,152
1966
I
245,601
61,400
1967
8,713
�L
63,605
TABLE 5B
YEAR
AVERAGE
DAILY
TOTAL
COMMERCIAL
VEHICLE
CYCLES
MAXIMUM
LOAD
CYCLES
1949
3,142
91,746
22,937
1950
3,411
99,601
24,900
1951
3,690
107,748
26,937
1952
3,979
116,187
29,047
1953
4,276
124,859
31,215
1954
4,580
133,736
33,434
1955
4,890
142,788
35,697
1956
5,206
152,015
38,004
1957
5,526
161,359
40,340
1958
5,849
170,791
42,698
1959
4,174
180,281
45,070
1960
6,500
189,800
47,450
1961
6,825
199,290
49,823
1962
7,150
208,780
52,195
1963
7,471
281,153
54,538
1964
7,790
227,468
56,867
1965
8,103
236,608
59,152
1966
8,411
245,601
61,400
1967
8,713
254,420
63,605
1968
8,006
262,975
65,744
1969
9,292
271,326
67,832
1970
9,566
279,327
69,832
1971
9,830
287,036
71,759
1972
10,082
294,394
73,599
1973
10,321
301,373
75,343
1974
10,545
307,914
76,979
1975
10,755
314,046
78,512
1976
10,947
319,652
79,913
1977
11,123
324,792
81,198
1978
11,279
329,347
82,337
1979
11,417
333,376
83,344
1980
11,533
336,764
84,191
1981
11,628
339,538
84,884
1982
11,700
341,640
85,410
1983
11,747
343,012
85,753
1984
11,770
343,684
85,921
1985
11,767
343,596
85,899
TOTALS: 8,935,025 2,233,756
AVERAGE DAILY TOTAL: The average number of all vehicles that pass across
the bridge in one day, for a given year.
COMMERCIAL VEHICLE CYCLES: The number of commercial vehicles that
pass across the bridge in a given year.
MAXIMUM LOAD CYCLES: The number of vehicles that pass across the bridge in
f _! a given year that are heavy enough to cause
maximum stress.
j TOTALS: Total number of cycles incurred to date.
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STRINGER
STIFFENER
FLOOR BEAM MAIN GIRDER
NON -REDUNDANT STRUCTURE
SLAB
STRINGERS
MULTI -LOAD PATH STRUCTURE
FIGURE 6B
CONCRETE PIER
261.
J
This problem of fatigue cracks in bridges is not just theoretical. Iowa Department
of Transportation Engineers report that there are 150 bridges in the state which are
known to have fatigue cracks. Perhaps two-thirds of these are from out -of -plane
bending, a framed girder phenomenon induced by secondary stresses. The details of
Benton Street Bridge make out -of -plane bending problems unlikely. The rest are due
to primary stress. The Benton Street Bridge falls into this category. IDOT Engineers
further advise that they would be reluctant to reuse the existing steel in a widened
structure. This is partly because of its vulnerability to fatigue and secondly because
of its single load path configuration. In addition, there are some built-in problems
associated with main materials of different life expectancy, which would be the case
if the bridge were widened and the existing steel used.
REFERENCES
1. Fuches, 14.0, & Stephens, R.1., "Metal Fatigue In Engineering," New York, John Wiley & Sons, 1980,
2. Fisher, JX, et al., "Effects of Wcidments on the Fatigue Strength of steel Reams," National Cooperative Highway
Research Program, Report 102, 1970,
3. Fisher, J,W„ et al., "fatigue strength of Steel Beams with Welded Stiffeners and Attachements", National Cooperative
Highway Research Program, Report 147, 1974,
4, Fisher, J,W„ Cl- Al-, "Fallgue Behavior or Full scale Welded Bridge Attachments", National Cooperative Highway
Research Program, Report 227, 1980.
5. American Association or state Highway and Transpnrtatlon Officials, standard Specifications for Highway Bridges, i
1984.
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City of Iowa City
MEMORANDUM
Date: August 30, 1985
To: City Council
From: Patt Cain, Associate Planner P�
Re: Iowa City Application for Iowa Community Development Loan
On Wednesday, August 28, Governor Branstad announced the communities which
will receive loans under the Iowa Community Development Loan (ICDL) Program.
Iowa City's application was not funded.
The communities awarded loans are: Coralville, Clive, Estherville, Carroll,
Ackley, Peosta, Sioux Center and West Branch. Eastern Iowa projects funded
are a water main extension and water storage facility in Coralville, land
acquisition and construction of leasehold building in Peosta, and construc-
tion of water and sewer lines for industrial expansion in West Branch.
According to OPP staff, competition was stiff for this round of awards, with
21 active applications for more than twice the amount of money available. In
six out of the eight projects funded, OPP.staff members were convinced that
the developments would not have occurred at all without ICDL assistance.
bj4/19
City of Iowa City
MEMORANDUM
GATE: $1 August 1985
TO: Neal Berlin and Al Cassidy \��1
FROM: Richard J. Boyle ��nX
RE: Ryerson's Woods
N
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The City acquired the Law School Foundation's interest
in Ryerson's Woods property on August 16, 1985, and
now owns all of Lot 2 of Ryerson's Woods, a subdivision
in Johnson County, Iowa.
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City of Iowa City
MEMORANDUM
GATE: $1 August 1985
TO: Neal Berlin and Al Cassidy \��1
FROM: Richard J. Boyle ��nX
RE: Ryerson's Woods
N
i
The City acquired the Law School Foundation's interest
in Ryerson's Woods property on August 16, 1985, and
now owns all of Lot 2 of Ryerson's Woods, a subdivision
in Johnson County, Iowa.
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City of Iowa City
MEMORANDUM
GATE: $1 August 1985
TO: Neal Berlin and Al Cassidy \��1
FROM: Richard J. Boyle ��nX
RE: Ryerson's Woods
N
i
The City acquired the Law School Foundation's interest
in Ryerson's Woods property on August 16, 1985, and
now owns all of Lot 2 of Ryerson's Woods, a subdivision
in Johnson County, Iowa.
j
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parks Se recreation MEMO
department
to: Dale Helling, Asst. City Manager from. Terryl Robinson, City Forester/
Horticulturist
re. Council Referrals date : August 28, 1985
1. Trees near Wetherby Park parking lot.
After consulting with our staff, we were unable to find a conclusive
reason why trees were not planted closer to the parking lot. At
this time we are considering the possibility of transplanting some
trees within Wetherby Park. These trees were set aside several
years ago as nursery stock. We believe these trees would be an
excellent choice for this area and will transplant them near the
parking lot this fall.
2. Noel's tree trimming on North Dubuque.
The City has not hired anyone to trim along North Dubuque. I have
inspected the area and have found no signs of any tree trimming or
removal on City right-of-way.
cc: T. Allen Cassady, Acting Director
city of iowa city
1717
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City of Iowa City
MEMORANDUM
Date: August 27, 1985
To: City Council
From: Larry McGonagle, Transit Manager
Re: Monthly Ridership Statistics
Per your request I will be forwarding monthly ridership statistics. Attached
are the statistics for July, 1985. For your comparison I have included
information for the two previous fiscal years.
Ridership in July, 1985, dropped one-half of one percent from July, 1984.
This is a favorable sign considering the increase in fare that occurred in
July.
bdw2/3
Attachment
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City of Iowa City
MEMORANDUM
Date: August 27, 1985
To: City Council
From: Larry McGonagle, Transit Manager
Re: Monthly Ridership Statistics
Per your request I will be forwarding monthly ridership statistics. Attached
are the statistics for July, 1985. For your comparison I have included
information for the two previous fiscal years.
Ridership in July, 1985, dropped one-half of one percent from July, 1984.
This is a favorable sign considering the increase in fare that occurred in
July.
bdw2/3
Attachment
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MONTHLY RIDERSHIP STATISTICS
FY. n4
FY 85
FY 86
_ MONTH
JULY
R DERSH P
137,729
+ _
(30)
132,246
(4)
131,279
(.05)
AUGUST
153,399
I
135,994
(11)
SEPTEMBER
206,032
(7)
180,060
(13)
yCTDBEA
221,634
(7)
220,209
(1)
NOVEMBER
218,219
(10)
206,138
(6)
DECEMBER
218,981
4
191,202
(13)
JANUARY
237,015
5
213,819
(10)
-FEBRUARY
254,469
(2)
243,586
(6)
MARCH
241,698
4
204,425
(15)
�+TL
211,415
(4)
201,115
(5)
MAY
160,039
(3)
160,395
1
(UNE
138,909
(7)
130,703
(6)
_TDTAL
2,399,587
(3)
2 219 892
7
*1 of INCREASE (DECR
SE)F
PREVIOUS FISCAL YEAR
IgMfll
WEEKDAY
11 WEEKDAY EVENIN
SATURDAY
SATURDAY E ENING
I,
i i
___
FY
04
•(-)
FY
05
+(-)
FY
86
+(-)
FY
84
+(-)
FY
85
+(-)
FY
86
+(-)
FY
84
+(-)
FY
85
+(-)
FY
D6
+(-)
FY
eq
+(-)
FY
85
+(-)
FY
96
+(-)
JULY
114,016
(10)
112,0
(2)
3 0
7317
(12)
7520
3
6626
12
15,019
(9)
11,208
25)
10,608
(5)
1377
(5)
1004
(27)
948
(6)
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMOER
-
186,97612
182,651
158 55
LUL
11 903
3
13
7737
9991
13
IU6
11 784
15,683
14)
(16)
10,724
9,565
9)
20
1140
1588
1
982
(14)
(11)
1801
12
(21)
'
13 422
642
13 864
812
16
16
697
11,910
10,740
5
(6)
(23)
2,415
17,077
1 20.750
8)
15)
18
5,029
5,572
20.610
33)
9)
1)
1901
(13)
1197
1524
1716
(21)
1131
(6)
2
1902
10
,JANUARY
FEORUARY
202,237
214,641
6
1
185 091
207,451
13,737
16,671
6
3
11,654
15,117
(15)
(9)
19,434
0,964
7)
9)
16,775
8,958
19)
10)
1607
2193
(13)
1293
(20)
(3)
2061
(6)
?IARCII
201,726
1
171,85
(15)
15,372
8
11,752
(24)
21239
22
8,860
15)
2361
34
1955
(17)
iFRIL
179,379
(2)
175,51 (21
13,339
3
11,796
(12)
6,976
251
5,626
8)
1721
(25)
1485
(14)
IIAY
135,514
(1)
136,26
1
9257
(3)
8669
(6)
14,026
21)
4,230
1
1242
(19)
1230 (1)
IUIiC
114,197
(10)
10,369
(3)
7769
(7)
5869
(24)
15.435
20
13,361
(13)
1508
23
104
27)
1
INIAL _ 71023,601
••til IIICRCASC
2) 1,890,661 (7)
(OCCRCASE) FROM
PREVIOUS
FISCAL
144,223 (4)
YEAR
124,50
(14)
211,002
(13)I1R7,03
(12)
19,881
-�-
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5)
17,522 (12)
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MINUTES OF STAFF MEETING
August 21, 1985
Items for the agenda of August 27 will include:
Public hearing on Creekside Sidewalk Project
Public hearing on Spruce Street drainage project
Award contract to Metro Pavers for Alley Paving Project
First consideration of an ordinance amending the Large Scale
Residential Development Regulations
First consideration of an ordinance regarding Planned Development
Housing Overlay Zone procedures
First consideration of ordinance regarding the definition of high-
rise and low-rise buildings
Second consideration of an ordinance amending the Sign Regulations
Final consideration of an ordinance regarding facia signs
Motion whether or not to reconsider Braverman Center rezoning
Recommendation of Planning and Zoning Commission regarding Dave's
First Subdivision (City of Coralville)
Set public hearing an a general obligation bond issue
Appointment of bank depositories
Resolution authorizing finance director to execute deposit agreements
with depositories
Resolution certifying unpaid refuse charges to County Auditor for
collection
Final consideration of ordinance relating to peddlers and solicitors
Public hearing on nuclear free zone
Appointments to Design Review Committee and Housing Commission
The Finance Director introduced the new assistant finance director, Kevin
O'Malley. She explained that he will be responsible for the investment
portfolio and coordinating the insurance for the City. In addition, he
will do an appraisal of all City buildings and the contents of those buildings.
The Director of Human Relations will be polling the staff for ideas for
training programs for the City. Material will be sent to the staff regarding
available programs.
The City Manager briefly discussed the idea of using staff meetings for
something other than the agenda and referrals. He advised that he has been
collecting articles regarding management, dealing with people, etc., which
would benefit the staff. He asked that the staff clip articles of interest
and share them at the weekly meetings.
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MINUTES OF STAFF MEETING
August 21, 1985
Items for the agenda of August 27 will include:
Public hearing on Creekside Sidewalk Project
Public hearing on Spruce Street drainage project
Award contract to Metro Pavers for Alley Paving Project
First consideration of an ordinance amending the Large Scale
Residential Development Regulations
First consideration of an ordinance regarding Planned Development
Housing Overlay Zone procedures
First consideration of ordinance regarding the definition of high-
rise and low-rise buildings
Second consideration of an ordinance amending the Sign Regulations
Final consideration of an ordinance regarding facia signs
Motion whether or not to reconsider Braverman Center rezoning
Recommendation of Planning and Zoning Commission regarding Dave's
First Subdivision (City of Coralville)
Set public hearing an a general obligation bond issue
Appointment of bank depositories
Resolution authorizing finance director to execute deposit agreements
with depositories
Resolution certifying unpaid refuse charges to County Auditor for
collection
Final consideration of ordinance relating to peddlers and solicitors
Public hearing on nuclear free zone
Appointments to Design Review Committee and Housing Commission
The Finance Director introduced the new assistant finance director, Kevin
O'Malley. She explained that he will be responsible for the investment
portfolio and coordinating the insurance for the City. In addition, he
will do an appraisal of all City buildings and the contents of those buildings.
The Director of Human Relations will be polling the staff for ideas for
training programs for the City. Material will be sent to the staff regarding
available programs.
The City Manager briefly discussed the idea of using staff meetings for
something other than the agenda and referrals. He advised that he has been
collecting articles regarding management, dealing with people, etc., which
would benefit the staff. He asked that the staff clip articles of interest
and share them at the weekly meetings.
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Minutes of Staff Meeting
August 21, 1985
The City Manager noted that some departments have been forwarding calls
to the switchboard during the lunch hour during which time their office
is closed. Many people who work have only the lunch hour during which they
can conduct business at the Civic Center. Therefore, all departments are
to have phone coverage during lunch hours. The City government is to be
available from 8:00 A.M. to 5:00 P.M. Any department which has problems
is to contact the City Manager.
The City Manager announced that eleven proposals for the new building extension
were received from architects/engineers. Proposals for the remodeling portion
are due on Friday. Committees will review these proposals using a rating
sheet. Recommendations will go to the City Council at the last meeting
in September. The committees will be made up of people who will have offices
in the area.
Prep red by:�
Lorraine Saeger
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Minutes of Staff Meeting
August 21, 1985
The City Manager noted that some departments have been forwarding calls
to the switchboard during the lunch hour during which time their office
is closed. Many people who work have only the lunch hour during which they
can conduct business at the Civic Center. Therefore, all departments are
to have phone coverage during lunch hours. The City government is to be
available from 8:00 A.M. to 5:00 P.M. Any department which has problems
is to contact the City Manager.
The City Manager announced that eleven proposals for the new building extension
were received from architects/engineers. Proposals for the remodeling portion
are due on Friday. Committees will review these proposals using a rating
sheet. Recommendations will go to the City Council at the last meeting
in September. The committees will be made up of people who will have offices
in the area.
Prep red by:�
Lorraine Saeger
MINUTES OF STAFF MEETING
August 28, 1985
Referrals from the informal and formal Council meetings were distributed
to the staff for review and discussion (copy attached).
The Assistant City Manager noted that lists of material which should
be furnished to the City Council candidates were distributed recently.
The staff is to contact him to confirm the items mentioned and also to
add any new items. The Candidates' Workshop will be held on October 3,
1985, at 7:30 P.M. in the Senior Center Classroom. Each department head
is expected to give a three-minute presentation of the duties of the depart-
ment and what the major issues are this year.
The Director of Human Relations distributed an article regarding resumes
and the need for adequate background checks of applicants.
The City Manager reiterated the policy of former years prior to elections, i
i.e., if any candidate, including present Council members, contacts any
of the City staff for information, this same information is to be furnished
to all candidates through the City Manager's office.
Prep red by:
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Lorraine Saeger J
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Informal Council Meeting
DATE:.A�aust_ 2�B5
PENDING
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owfRE-
ac
Vista Park Village
8_26
COUNCIL ITEMS
P&Z Issues 8-26P&PD
Airport Construction B-26 Airport
Elderly Services 8-26 P&PD
Cottonwood Trees 8-26 Parks & Re
Assistant
Lower Ralston Creek 8-26 P&pD
Pleasant Street Sidewalk 826 City Manage
Traffic Signalization - First g_28 Public Work
and Rochester
LU >-
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g po 0' COMMENTS/STATUS
w a
Report to Council reCity partici-
Pation in street paving:
1. P&Z position
3. Prior negotiations with Bruce
Glasgow.
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Explore methods of developing alterna
tives before P&Z.
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Fred Zehr contact City Manager re.
construction inspector.
i
Human Services Coordinator contact I.
City Manager re. umbrella agency, ESA i
coordination of services, etc.
Schedule for informal discussion in
Y Mane r September.
Proceed re. request from Dave Steve.
Provide map of area and specific
Parcel. +�
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Letter to petitioners re. Council
position.
Follow-up traffic counts, etc.,
during school year.
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Informal Council Meeting
Page 2
DATE • Auaust 26. 1985
PENDING COUNCIL ITEMS
V W03
ca
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02
CC
SUBJECT
aW
o W
REFERRED DATE
To DUE
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COMMENTS/STATUS
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°C
a
Traffic Signalization -
B-26
Public Work
What is status? Was there previous
action re. signalization?
Church and Dodge
Street naming policy
a-26
P&PD
Add the name of "Kent". Policy
should exclude names of living
ersons.
Letter re. South Africa
8-26
Assistant C ty Mana
r
Letter to President for Mayor re.
request from Mayor Koch. Copy to
Mayor Koch and notify him we will
Sewer Project
8-26
Public Work
What is schedule for work in area of
Mercy Hospital? Memo to Council.
Housing Commission
8-26
Lorraine
Readvertise
vacancy.
Regular Council Meeting
DATE. August 27, 1985 PENDING COUNCIL ITEMS
LU
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on
SUBJECT
Qw
o�
REFERRED
DATE
a9D
�,_a
ir
o
COMMENTS/STATUS
az
To
DUE
w
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a
Parks & Rec Commission Minutes
8-27
Parks & Re
What is reference to possible
purchase of land adjacent to Taft
Speedway?
Dave's Subdivision8-27
P&PD
Letter to City of Coralville.
Nuclear Free Zone
8-27
City Clerk
First consideration at September 10
Lorraine
Council meeting.
Report to City Manager re. nature of
Police Patrol
8-27
Police
use of church parking lot at Muscatin
and Fifth Avenue by patrol cars.
Spruce Street drainage project
8-27
Public Wor
/
Who controls railroad property and
do
City Attor
y
who we negotiate agreement with?
City Attorney review.
Urban Environment Ad Hoc
Committee
B-27
Assistant
ty Mana
er
Schedule recommendations for informal
discussion on September 9 or 16.
Letter of Appreciation
8-27
P&PD
Draft letter from Mayor to James
Wockenfuss.
Prebudget issues
B-27
Finance
Send schedule to Council re. discussi
of fees, transit, and personnel
salar issues.
1
A
Economic Development
a-27
Assistantty
Mana
er
11Emphasize
Schedule update by Ray Muston at
Alley Paving Project
-
8-27
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Public Wor
informal Council meeting.
proper seeding/sodding by
Cities tackle taxing issue of 1 -cent tax boost
By JANE NORMAN Q as
NN w. sena wmw
"Taxation without representation"
was a rallying cry that galvanized the
founder of the United Stairs into ere-
ating a democracy.
And this fall, for the first time in
Iowa Wstory, voters themselves will
be the representatives — deciding in
the polling booths in Polk, Llen and
Pottawattamie counties whether they
want an additional 1 -cent In tacked
on to sale taus In those couoOes.
H's called a local option tax, and the
residents of Des Moines, Cede Rapids
and Council Bluffs and their suburbs
are likely to be showered with
speeches, arguments and numbers
during the next two mombs as public
officials campaign to have the contrD.
vemw tar approved.
At the same time, other cities
across the state will be watching
closely to ace whathapprmis the first
local option tax elections since the
Legislature approved the new meas.
are earlier this year.
"I do bear on the street some real
questions about wbefber at not it is go-
log W fiy, YW EJ;GWvametti, may-
or of the Des ldoI=suburb oI Urhao-
We and a local option far ad vocals.
"I'm kind of concerned it may not
pass," Yid Council Bluffs Mayor Tom
Hanafan, who nonetheless vowed to
give residents there "as much infor.
matins as they can swallow" about the
benefits of the lax, which financially
strapped Council Bluffs Is counting on
to help provide basic city service.
Asking vote to approve the addi.
tion of a 1 -cent tax onto the state's
current a percent tax might sum like
an impossibility In a state admittedly
having more than Its share of econom-
ic problems. But Glovannettl and oth.
era say voters will benefit because the
tax will replace needed money that
cities face losing from both the state
and federal governments, creating
problems for prevision of service.
What the advocates call their stron.
gest argument — and the one that will
be beard most often — is that the tax
will provide property tax relief, shav-
ing real dollars off tar bills for homes
and businesses and possibly attracting
new Industry.
In Des Molnes, where 50 percent of
the proposed tax Is designated for
property tax relief, City Manager Cy
Carney said $K would be cutin prop.
erty taus from a home with an aver-
age assessed value of =10,000. In Ce.
dar Rapids, 20 percent Is expected to
be cot from every property tax bill,
according to officials there.
"It's an alternative to the historic
dependence on property tax," said
Robert Harpster, director of the
League of Ion Municipalities
Not every item would be subject to
the Dew tax — automobiles, most no.
tably, are exempt, because they are
exempt from state sales tax, Harpster
pointed out. Tues paid on any vehicle
subject to registration are considered
use taxes, said Harpster. Generally,
the local option tax would tot apply to
soy item that's Sot subject to state
sales tax, be added
to Des Moines, there already has
been discussion and dissent over the
tax among members of the City Coun-
eli which finally approved placing it
an the ballot on a 5-2 vote, with mem.
bers George Flagg and Connie Cook
dissenting.
Became of the way the law is writ -
lm, the issue — In differing forms —
will be on separate ballots in every
city In Polk County. But in the election
Ib Moine and its contiguous suburbs
— Wet les Moises, Clive, Windsor
Heights, Johmtoo, Urbandale, Pleas.
ant HW and Grimes — will be cousid.
ered one area, and a majority vote of
the entire area will place the tax in
effect in every city.
The same is true In Council Bluffs,
where the ism is on the ballot in all of
Pottawattamie County, and Carter
Lake must go along with Council
Bluffs whether it choose to or not,
and Cedar Rapids, where all of Linn
County will vote, but the clues of Hia-
watha, Marion and Robins will be
lumped in with Cedar Rapldi led cot -
side ed one arca.
The Des Moines ballot calls for at
lent 50 percent of the $11.5 million
Des Moine is projected to receive
being used for property tax relief,
with the remainder going to replace
state and federal dollars being cut
from tate city's budget and for capital
improvements.
Now It's up to Carney and council
members who support It to talk the
vote into agreeing with them. How
many people they will be able to reach
and whether any other community
group will join the movement is not
clear yet 'Tbe key thing Is to get the
facts In front of the voters," said
Carney.
Clues are prohibited from using tax
dollars for advertising, so Carney and
council members have begun solicit.
Ing help from private group. Camey
and other city staff members spoke to
the tax study committee of the Great-
er Lica Moines Chamber of Commerce
recently, and they've asked to talk to
the Pnik-Des Moines Taxpayers Asso.
3ation and the editorial board of The
Des Moines Register, seeking endor:&
ments.
The city's staff still is debating what
it can do to publicize the tax, Camey
said. "One thought is a professional in.
formation campaign, similar to the
hotel -motel tax campaign," said
Camey.
Councilwoman Maine Sxymoolak, a
vocal proponent of local option tai,
said she plans to schedule a meeting
this week to unite to advocates
Mayor Pete Crivaro, another advo.
cate, said be talks about the las every
time be spat to a service group or
club.
But opposition to the to already
has emerged In the form of Council-
man Flagg. While no organized suti-
lax committees or groups have yet
formed, Flagg said be expects to see
them asm although be doesn't plan to
lead them himself.
Even after the council majority rot. _
ed to place the issue on the ballot.
Flagg hasn't 4dtated to let his feeF
Ings be known. Be said be opposes It
because out of the estimated $20 mil.
Bon the city of Des Moines world col-
lect, the city would keep only $11.5
mUUo% with the remainder fuoneled
to the sohurha That happens became
of the formula developed by the Legis.
lature to distribute the tax, which is
baled partly on population and partly
on property tax levies
Motel and hotel owner In the Des
Moines area; who already pay an it
Percent pillow tax, also are Dot wild
about the added penny tax, although
they have taken So formal stand as a
group, mW Vince Eopacek, owner of
the Best Western- avarlan Hans mo.
tel and president of the lodging wing
of the Des Moines Convention and Vls-
liars Bureau. Some Individual inn.
keepers do plan to oppose the tax ac-
tively, be said
In Council Bluffs; the tax issue
hasn't been quite as heated, said May.
or Hanafan. While no opposition has
surfaced yet, be said be doesn't doubt
—'that some will 'Tm sure there are
group who will never want to pay any
more tux" he said.
Council Bluffs City Manager MI.
chael Miller said the issue on the
ballot in that city calls for 50 percent
of We revenue to be used for property
to relief and the other 50 percent for
police and tire protection, parks, re.
creation and health
/ 7oZ0
The situnUm 4 indeed different in
Cedar Rapid4 said Tom ARer, encu.
tive assistant m the Cedar Rapids City
Council. "It's an caw ceveae for the
city. Ira slmpi to replace property
sh�aed��ce federal cevmne _
Ha Ism a W balks there, ap.
u lk µvmoWy h the commit,
used
Ricans of the tax to be
for property W relief or & e9ai si$K " Wald be and as
micimam amount that would be di•
rected toward pope tax reW.
16
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'V LOAM -Staff Mtg
5
6%
(Conf Room)
SAM -Magistrate
Court (Chambers)
HOLIDAY
12noon-Reserved
(Conf Room)
7 ormn(Publicront
7:30PH-Formal P&Z
(Chambers)
Comm (Public Lib)
P
9 8AM-Mq iet ate
Court (Cham�ers)
10 8:30AM-Housing
Fj�2PPaaaa11a Board
/(lOAM-Staff Mtg
/,Z.
/3
/tF
1 M -D ferre Comp
(Pr�biic Library)
(Conf Room)
8AM-Magistrate
Court Chambers
(Chambers)
(Cont Room
9AM-Housing Comm
3PM-Se for Center
Comm (Senior Ctr)
-
6:30pN-Informal
(Public Library)
9 D ferre�3 Comp
p
qPM-Dgei Revi
Com `Pubic LiCY
33pp pp
pM-Board
7:30PM-Ai ort Co
rp
Council Chamb
2 PM- &oR it ct
d
§e
o
j¢Ad3uetment (Chamb
(Transit Bldg)
7:30PM-Resources
Conservation
act on(Cone
4$PpH�,�-Urban En iron
7PM-Perks & Rao
Comm (Public Lib
( RecoCen?er,tB?e
Comm (Rec Center)
17
ja
AM -Magistrate
Court (Chambers)
10:30AM-Bid Openin
(Conf Room)
LOAM -Staff Mtg
8AM-Ma is
9 trate
(Conf Room)
Court (Chambers)
12n on-Broa and
TeT
un cation
7:30PM-Historic
7:30 P.M -Formal
7:30PM-Informal
P&Z (Senior Ctr)
Comm "����"ssem� erEs)
3.3m0mPMnit �ieeos o
preservation Co
(Public Library)
P&Z (Chambers)
6:30PM-Informal
Council (Chambers
a3
AJ' 9AM-)3udget Mtg
(Chambers)
z5
LOAM -Staff Meeting
R-6
,Z7
SAM-Magstrata
Court }Chambers)
2PM-Budget Meetin
(Conf Room)
8AM-Magistrata
Court (Chambers)
6:30PM-Informal
Council
(Chambers)
(Chamber,
)7:30PM-Council
7:30PM-Human Righ
s (Chambers)
Comm (Senior Ctr
zy
30
SAM -Magistrate
Court (Chambers)
7:30PM-Informal
P&Z (Senior Ctr
CITY OF IOWA CITY, IOWA
$ 4,700,000 GENERAL OBLIGATION BONDS
PROPOSED SALE DATE: OCTOBER 16, 1985
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TABLE OF CONTENTS
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SUMMARY OF RECOMMENDATIONS . . . . . . . . . . . . . . . . .
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PURPOSEOF THE SALE . . . . . . . . . . . . . . . . . . 1.
STRUCTURING OF THE. BOND ISSUE . . . . ... . . . . . . . . . 3
RATING. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
REGISTRATION. . . . . . . . . . . . . . . . . . . . . . . . 4
GENERAL MARKET CONDITIONS . . . . . . . . . . . . . . . . . 5
SALE SCHEDULE
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PRESALE ANALYSIS
$4,700,000 G. 0. BONDS
CITY OF IOWA CITY, IOWA
JOHNSON COUNTY, IOWA
Proposed Sale Date: October 16, 1985
SUMMARY OF RECOMMENDATIONS
Recommendations and arrangements for the Bond sale have been
developed by Evensen Dodge, Inc., after consultation with City.
Finance Director, Rosemary Vitosh, concerning the most desirable
method for structuring the proposed Bond issue and the City's
need for.Bond proceeds. Mr. Ken Haynie, Bond Counsel to the City,
of 'Iowa City, was consulted on legal matters and procedures
relating to the proposed sale.
The arrangements and conditions for the Bond sale., will be
incorporated in resolutions and other documentation prepared by
Ahlers)``Cooney, Dorweiler, Haynie 6 Smith, the City's.. Bond
Counsel''and Evensen Dodge, Inc. Action authorizing the Bond:
sale':"is and
scheduled for City Council 'cons ideration_at.
the September 10, 1985 City Council meeting.
The major recommendation contained herein is that the'City issue
$4,700,000 of General Obligation Bonds to be sold on October 16,
1985, for the purposes described below.
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PURPOSE OF THE SALE
Proceeds of this Bond sale will provide the'City with the funds
to definitely finance a number of Essential Corporate Purpose
public improvement projects.
I
The Bond proceeds are estimated to be used as follows:
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Uses of Funds
" City Project Costs $4,595,000
Underwriter's Discount/
Issuance Costs 105,000
TOTAL $4.700.000
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The City projects to be funded by this bond
issue are as
follows:
j
The City projects to be funded by this bond
issue are as
follows:
St. Anne Drive
$ 47,200
Airport Corporate Hanger
166,600
Airport Runway Improvements
857,100
Taft Speedway Sewer Extension
116,400
Clinton Street Reconstruction
127,800
Burlington Street Paving Repair
36,200
Alley Paving - FY86
65,400
Dubuque Street, Iowa Avenue to Park Road
30,500
Mercer Park Sidewalk
7,100
Willow Creek Park Sidewalk
14,100
Sidewalk Construction - FY86
23,500
Villa Park Sidewalk'
7,200
East'Side'Water Storage Tank
930,800
Rundell/Dearborn Storm Sewer
211,800'.
First Avenue Culvert
204,000
Crandic'Railroad Crossing
1 12;800
Tanglewood/Ventura
134,100,
Alley Paving - Lyons Addition
95;900
Burlington Street Bridge Reconstruction
260,000_,-.
Iowa Avenue Bridge Reconstruction
':'3601000
Melrose Court -
102,200'=;
Byington/Melrose'Intersection
25,000`,_.;
Spruce�Street Storm Sewer
5500':
Shamrock/Arbor Storm Sewer
257,700'
Foster Road - Land Acquisition
62,500
Highway 1/I-80 Sewage Pumping Facilities
383,600
-TOTAL
$4,5951000
Debt service for approximately 378 of the $4,700,000 Bond issue
is planned to be abated by fundsavailable from such sources as
special assessments and water utility revenues.
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STRUCTURING OF THE BOND ISSUE
Several alternatives were considered and discussed with the City
finance director before reaching a final decision on the best
debt structure for this issue. The structure finally selected
provides for repayment of the debt over a ten year period, as
shown in Exhibit A of this Presale Analysis. Exhibit B illus-
trates the tax -rate impact of the estimated new debt service less
projected abatements.
The City's existing debt structure provides for rapid retirement
of the City's general obligation debt. The structuring of this
issue continues to provide for rapid debt retirement by struc-
turing nearly level principal payments over the life of the
issue. This type of structure is commonly employed by high
quality "Aaa" issuers such as the City of Iowa City.
Under current market conditions, high quality issues with
maturities of "intermediate" range of ten to fifteen years are
regarded to be highly marketable issues. The debt redemption
schedule for this issue providing for a term of ten years is at
the low end of this range.
on an overall basis, the $4,700,000 bond issue has an average
maturity of 6.126 years. The issue has been structured in
$25,000 increments for the purpose of allowing trading and
selling in this customary block size.
Several features have been added in the structuring of the issue
to provide the. City with flexibility and the ability to take
advantage of lower interest rates should they occur in the
future.
The primary feature which adds flexibility is the provision. for
the City to call or redeem bonds maturing beginning in 1994 and
extending to the end of the issue. This allows the City to call
30.38 or $1,425,000 of the $4,700,000 of principal if interest
rates in the future are lower, and the City can save interest
cost by replacing the current debt with lower cost debt. Also,
investment bankers and underwriters who bid on the bond issue.
will be required to submit their bid with coupons in ascending
order to. minimize debt service in the early years and optimize
the potential use of the call feature.
The ability to deepen the call feature to this maximum level and
require that coupons be bid in ascending order is made possible
by provision of an underwriters discount. Iowa State statutes
were amended in 1983 to permit a municipality to offer an under-
writer's discount in an amount not exceeding 28 of the bond issue
size. The amount of discount offered relates to the term and
difficulty anticipated in selling the issue. The discount
permits the successful bidder (underwriting syndicate) to pur-
chase the bonds with specified coupons and to reoffer the
-3-
bonds at Par. If no discount were allowed, the successful bidder
would have to bid a higher coupon rate on the bonds to obtain
their commission by selling the bonds at a premium. Experience
'has shown that use of the discount helps make an issue more
attractive to purchasers and offsets the impact of the call
feature. Therefore, the discount is strongly advisable in the
marketing of this issue.
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These bonds will be offered to underwriters at a price approxi-
mately 18 below the amount of the bonds.
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RATING
The City of Iowa City currently has an "Aaa" rating from Moody's
Investors Service, Inc., the highest rating given by Moody's. A
preliminary review of City financial condition and ratings of
comparable municipalities indicates that this rating will likely
be renewed for the issue scheduled to be sold on October 16, j
1985.
While we can make no guarantee as to the quality of the rating
the City will receive, it is essential that it be requested.
REGISTRATION I'
This Bond issue will be the first in which the City has offered
Bonds in fully registered form. Registration is a requirement
under federal law beginning with bonds issued after July 1, 1983.
Registered bonds take the place of coupon bearer bonds and will
require the City to either appoint a registrar and transfer agent
for this issue, or act in this capacity itself. The registrar
and transfer agent's duties will include maintaining a registered
list of. owners of each of the Bonds and mailing each of the
registered owners principal and interest due them on appropriate
payments dates. When ownership of Bonds changes, the Bonds will
be sent to the transfer .agent who will destroy the old Bond and
issue a new Bond in the name of the new registered owner.
The City is evaluating proposals from qualified banks and trust
companies in Iowa and Minnesota and is also considering acting as
its own registrar. The City expects to make this decision prior
to the sale. j
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GENERAL MARKET CONDITIONS
There are a number of indices available, all of which are de-
signed to plot the tax exempt bond market or various categories
of that market. One of the best known of these indices is the
twenty bond Bond Buyers Index.
A graph dated August 29, 1985, showing the movement of The Bond
Bu erg's Index (BBI) over the last two years is included witi�tlis
ana ya sisand identified as Exhibit C. It demonstrates the
relative strength of the tax-exempt market in 1985., The BBI
reached a five-year low on June 6, 1985, when it fell to a'level
of 8.608. Since then it has risen to a high of 9.18 on August
22, 1985 and fallen this week.to its current level of 9.098.
The bids that the City can expect to receive on the sale of this
issue will be considerably better than bids which might have been
received one or two years ago. The BBI in this same week of
August, 1984 was 10.178, 108 basis points higher than the present
rate. The HBI rate at this time in 1983 was 9.598, 50 basis
points higher than the present rate.
if this issue were to be sold today, we believe that it would
receive a net interest rate in the range of 7.758 to 8.258.
Nevertheless;' the possibility of shifts in the market exists
because of its sensitivity to events that cannot be. foreseen..
Therefore; `we'cannot, predict what the actual rate of interest`
will'be when`the'Bonds are sold'on October 16, 1985.
-5-
Tentative Bond Sale Schedule
Iowa City, Iowa
August 8, 1985
Initial debt issuance planning meeting with
Evensen Dodge personnel and City Finance
Department staff. -
August 27, 1985
City Council sets public hearing date -for
September 10, 1985.
September 4, 1985
Presale Analysis prepared by Evensen Dodge.
and submitted to City by this date.
September 9, 1985
City Council review of Presale Analysis and'
debt issuance,.proposals. -
September 10, 1985
Public hearing; City Councilconsideration
and action on resolution authorizing.bond.
sale.
September 11-20,
1985
Evensen Dodge will analyze and prepare.
disclosure information required for
Moody's rating and an Official Statement
September 24, 1985
Draft copies of"an Of Statement•will
be submitted to City staff and Bond Counsel
for review. _. _...
September 27, 1985
Final draft of Official Statement will be
submitted to the printer.
October 1, 1985
Official publication of Notice of Bond Sale
October 1, 1985
Official Statements will be mailed to
underwriters and other interested parties
throughout the country.
October 8, 1985
Official publication of Notice of Bond Sale.
October 8-15,
1985
October 16, 1985
Potential bidders contacted, questions from
underwriters and analysts concerning proposed
sale answered.
Bond sale (Bid opening at 11:15 A.M.; City
Council consideration at 12:15 P.M.).
October 17 -
November 8, 1985 Work with Bond Counsel on details concerning
arrangements for closing and delivery.
November 11, 1985 Approximate date for closing and delivery.
-6-
CITY OF IOWA CITY, IOWA
11,700,000 G.O. BONDS
Debt Redemption Schedule
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DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
6/ 1/86 202,661.59 202,661.59 202,661.59
12/ 1/86 173,712.50 173,712.50
6/ 1187 150,000.00 6.000000 173,712.50 623,712.50 797,125.00
12/ 1/87 160,212.50 160,212.50
6/ 1188 150,000.00 6.50D000 160,212.50 610,212.50 770,125.00
12/ 1/88 1/5,587.50 1/5,587.50
6/ 1/89 175,000.00 6.800000 115,587.50 620,587.50 766,175.00
121 1/89 129,137.50 129,137.50
6/ 1/90 175,000.00 7.100000 129,137.50 601,137.50 733,875.OD
12/ 1/90 112,575.00 112,575.00
6/ 1/91 115,000.00 7.100000 112,575.00 507,575.00 700,150.00
121 1/91 95,000.00 95,000.00
6l 1/92 175,000.00 7.600000 95,000.OD 570,000.00 665,000.00
12/ 1/92 76,950.00 76,950.00
6/ 1/93 175,000.00 7.000000 16,950.00 551,950.00 628,900.00
12/ 1/93 50,125.00 58,125.00
6/ 1/91 175,000.00 8.000000- 58,125.00 533,125.00 591,850.00
121 1191 39,125.00 39,125.00
6/ 1/95 175,000.00 8.200000 39,125.00 511,125.00 553,850.00
12/ 1195 19,950.00 19,950.00
6/ 1/96 175,000.00 8.100000 19,950.00 191,950.00 511,900.00
1,700,000.00 2,225,211.59 6,925,211.59
ACCRUED 2,095.21 2,095.21
/,70D,000.00 2,222,319.38 6,922,319.30
�nnwnvu swwnnw nw���i��w
DATED 11/ 1/85 WITH DELIVERY OF It/ 1/85
BOND YEARS 20,791.667
AVERAGE COUPON 7.729
AVERAGE LIFE 6.126
N I C I 7.891910 I USING 99.0000000
EXHIBIT A
FY Ending
June 30
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
EXHIBIT B
CITY OF IOWA CITY, IOWA
$4,700,000 GENERAL OBLIGATION BONDS
ESTIMATED DEBT SERVICE AND ABATEMENT SCHEDULE
Annual Debt Service
Net
Tax Rate
(2)
(Fiscal Total)
Abatement (1)
Levy
Impact
$202,664.59
$ 74,985.90
$127,678.69
.133
797,425.00
295,047.25
502,377.75
.528
770,425.00
285,057.25
485,367.75
.506
766,175.00
283,484.75
482,690.25
.504
733,875.00
271,533.75
462,341.25
.482
700,150.00
259,055.50
441,094.50
.460
665,000.00
246,050.00
418,950.00
.437
628,900.00
232,693.00
396,207.00
.413
591,850.00
218,984.50
372,865.50
.389
553,850.00
204,924.50
348,925.50
.364
514,900.00
190,513.00
324,387.00
.338
(1) Based upon City projection that 378 of debt service will be
abated. Rate applied on a uniform basis.
(2) Based upon current valuation of $958,607,758.
/7207-
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BOND BUYERS INDEX
(1982-85)
PREPARED BY EVENSEN DODGE,
INC.
13.0%
12.5%
12.0%
!,
11.590
August <29, 1985 - - -
' !
10.5%
I.
10.0%
9.590
9.0%
i;
8.5%
7/82
1/83 7/83 1/84 7/84
1/85 7/85 1/86 M
Month
m
20 Year C.O. Indy
H
m
N.
THIS WEEK 9.09
H
H
n
LAST WEEK 9..18
Proposed 1985 General Obligation Bond Issue
St. Anne Drive
EXHIBIT D
$47,200
This project involves the paving of St. Anne Drive from a 25 foot width
at Prairie du Chien Road to a width of 33 feet at Foster Road. The
existing surface was gravel and needed to be paved. Special assessment
revenue will abate $15,750 of the total project cost. This project is
completed.
Airport Corporate Hangar $166,600
A building is being constructed to house one corporate hangar and a
maintenance shop/garage. The corporate hangar has already been leased to
Hansen Lind Meyer and the shop/garage area will be used by the Airport
for storage of its equipment. The project is currently under construc-
tion with a total estimated cost of $226,600. $60,000 will be funded
G.O.rAirport
Bondshich willvbeetotallynt rabatedh from remainder
rental befunded
on with
the
corporate hangar.
Airport Runway Improvements
$857,100
This project will bring the Iowa City Airport back into compliance with
FAA regulations. It includes purchasing land and aerial easements and
the construction of a 355 foot extension to runway 24.
Taft,Speedway Sewer,Extension
$116,400
This project involves the extension of a 33 inch trunk sewer, from the
terminus of the River Corridor Sewer, west to Taft Speedway/Foster Road i
intersection, approximately 2,400 lineal feet. This project will serve
future development west of Dubuque Street and north of the Iowa River.
Total, project cost is $203,400. Sewer revenues will fund $87,000. The
remainder will be funded by bonds which will be 100% abated from special
assessment revenues. This project has been completed.
Clinton Street Reconstruction $127,800
This project includes the replacement of existing pavement with Portland
cement concrete on Clinton Street, from Iowa Avenue to Washington Street.
It includes replacing broken sidewalk, curb and sidewalk vaults and
installing light fixtures as well as tree wells and minor amenities. This
project is currently under construction and scheduled for 'completion in
August, 1985.
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Proposed 1985 General Obligation Bond Issue
St. Anne Drive
EXHIBIT D
$47,200
This project involves the paving of St. Anne Drive from a 25 foot width
at Prairie du Chien Road to a width of 33 feet at Foster Road. The
existing surface was gravel and needed to be paved. Special assessment
revenue will abate $15,750 of the total project cost. This project is
completed.
Airport Corporate Hangar $166,600
A building is being constructed to house one corporate hangar and a
maintenance shop/garage. The corporate hangar has already been leased to
Hansen Lind Meyer and the shop/garage area will be used by the Airport
for storage of its equipment. The project is currently under construc-
tion with a total estimated cost of $226,600. $60,000 will be funded
G.O.rAirport
Bondshich willvbeetotallynt rabatedh from remainder
rental befunded
on with
the
corporate hangar.
Airport Runway Improvements
$857,100
This project will bring the Iowa City Airport back into compliance with
FAA regulations. It includes purchasing land and aerial easements and
the construction of a 355 foot extension to runway 24.
Taft,Speedway Sewer,Extension
$116,400
This project involves the extension of a 33 inch trunk sewer, from the
terminus of the River Corridor Sewer, west to Taft Speedway/Foster Road i
intersection, approximately 2,400 lineal feet. This project will serve
future development west of Dubuque Street and north of the Iowa River.
Total, project cost is $203,400. Sewer revenues will fund $87,000. The
remainder will be funded by bonds which will be 100% abated from special
assessment revenues. This project has been completed.
Clinton Street Reconstruction $127,800
This project includes the replacement of existing pavement with Portland
cement concrete on Clinton Street, from Iowa Avenue to Washington Street.
It includes replacing broken sidewalk, curb and sidewalk vaults and
installing light fixtures as well as tree wells and minor amenities. This
project is currently under construction and scheduled for 'completion in
August, 1985.
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Burlington Street Paving Repair 536,200
This project involves the removal and replacement of pavement which was
extensively cracked in the block between Capitol Street and Clinton
Street, on Burlington Street. This project has been completed.
Alley Paving - FY86 $65,400
This project involves the paving of alleys located in Block 1 of Lyon's
First Addition (between Gilbert Street and Van Buren Street, north of
Bowery Street) and north of E. Davenport Street (between Reno'Street and
Pleasant). These alleys were gravel surfaces and the adjoining property
owners requested that they be paved. The entire cost, except for $1,360,
will be abated from Special Assessment revenues.
Dubuque Street, Iowa Avenue to Park Road $30,500
This project involves widening the street and the removal and replacement
of existing pavement with Portland cement concrete. The storm sewer
facilities will also be upgraded to meet present standards. Design is
currently in progress for this project. Construction is scheduled to
begin in May, 1986. This bond issue will only cover design costs.
Mercer Park Sidewalk $7,100
This project will provide sidewalk along Dover Street on the east side of
Mercer Park, and will join with the existing sidewalk in the area. Since
the Village Green area is nearly fully developed, access along the park
,is necessary for pedestrian use and safety.
Willow Creek Park Sidewalk $14,100
This project will provide sidewalk along Benton Street on the north side
of Willow Creek Park. The Penny Bryn area is nearly fully developed and
access along the park is necessary for pedestrian use and safety.
Sidewalk Construction - FY86 $23,500
This project involves the installation of sidewalk along various streets
where no sidewalk now exists. Property owners will be assessed for
design and construction of sidewalk on the property while the City will
fund construction of curb, gutter and crosswalks, their design and
inspection. Therefore, $15,500 will be abated by special assessment
revenues.
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Villa Park Sidewalk
S7,200
This project will provide sidewalk along MacBride Drive and MacBride Road
on the north and west sides of Villa Park, and will join with the
existing sidewalk in the area. Part 11 of MacBride Subdivision has
developed to the extent 'that the installation of sidewalk along Villa
Park is necessary in order to provide pedestrians access along the park
in a safe, useful manner.
East Side Water Storage Tank $930,800
This project provides for the construction of a two million gallon water
tank on the north side of Rochester Avenue at Post Road. There has been
substantial growth in the eastern part of Iowa City since the early 70s.
This has created the need to expand storage capacity to provide water at
an adequate pressure. The project is now near completion. Total project
cost is estimated at $1,280,000. A portion of the cost ($350,000) is
being funded from Water Bond Reserve Funds. The remainder will be paid
from G.O. Bonds which will be abated with water revenues.
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Rundell/Dearborn Storm Sewer $211,800
This project provides for the installation of a storm sewer system and a
lift station which will drain the intersections of Dearborn Street -Center
Avenue and Rundell Street -Center Avenue. It will provide relief from
flooding in the intersections during rain storms. Total project cost is
$369,360. Funding of $157,560 came from CDBG and the remainder is being
funded from this bond issue. This project is completed.
First Avenue Culvert $204,000
This project will provide for.the construction of a reinforced box
culvert at the location of First Avenue extended and the north branch of
Ralston Creek. During acquisition of land for the North Branch Dam
Project, an agreement between the City and land owners provided for
construction of this culvert by the City. The culvert will also allow
development to continue north of Ralston Creek. This project is com-
pleted.
Crandic Railroad Crossings $12,800
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This project provides railroad crossing improvements over the Crandic
tracks ,on Highland Avenue, Waterfront Drive and Riverside Drive. This
will provide for an asphalt crossing at all three locations. Funding
from the bonds will pay the City's share of the total cost (20%). The
Crandic Railroad will pay 20% with the remaining 605 funded with State
Grade Crossing Surface Repair monies. This project is completed.
4
Tanglewood/Ventura $134,100
This project involved construction of concrete paving along with the
necessary drainage facilities on Tanglewood Street and Ventura Avenue,
replacing a graveled street. Special assessment revenue will abate
$44,700 of the total project cost. This project is completed.
Alley Paving - Lyons Addition $95,900
This project involved the paving of the alley in Block 6 in Lyons Second
Addition (between Johnson and Dodge, north of Bowery Street). The
project was requested by the adjoining property owner and the bonds for
this project will be abated from special assessment revenues. This
project is completed.
Burlington Street Bridge Reconstruction $260,000
This project will provide for the reconstruction of the east bound bridge
over the Iowa River on Burlington Street. Design costs were funded from
a previous bond issue. Construction will be funded with this bond issue
plus $650,000 of Federal Aid Bridge Replacement Program monies. This
bridge is located at the intersection of Burlington Street, Grand Avenue
and Riverside Drive (Highway 218/6). Construction .is scheduled to begin
in September, 1985.
Iowa Avenue Bridge Reconstruction $360,000
This project will provide for the reconstruction of the Iowa Avenue
Bridge over the Iowa River. Design costs and a portion of the construc-
tion costs were funded by the 1982 Bond Issue. In addition, $650,000 in
funding was provided from Federal Aid Bridge Replacement Program monies.
This bond issue will provide the remainder of the funding needed for the
construction which is scheduled to be completed in September, 1985.
Melrose Court $102,200
This project involved the installation of new sidewalk and curb repair
along Melrose Court. Construction has been completed.
Byington/Melrose Intersection $25,000
This project involves the removal and replacement of the Byington Road
and Melrose Avenue intersection, along with associated storm sewer
improvements, in order to provide motorists with a turning radius which
better suits the area. Total project cost is $43,500. The University of
Iowa will contribute $18,500 and the remaining cost will be funded from
this bond issue.
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Soruce Street Storm Sewer $55,500
This project will provide an enclosed pipe draining system from the
Iowa -Illinois Gas S Electric Detention Basin along the Rock Island
Railroad to Pine Street to help alleviate rear yard flooding of the
properties along Spruce Street adjacent to the Rock Island Railroad and
the Iowa -Illinois property. The design is currently in progress with
construction scheduled to start this fall.
Shamrock/Arbor Storm Sewer $257,700
This project involves the replacement of existing culverts on Shamrock
and Arbor Drives with concrete arch pipes and includes stream channeliza-
tion work from west of Peterson Street to the new culvert. The new storm
sewer will decrease the amount and area of the flooding in the neighbor-
hood. This project is completed.
Foster Road - Land Acquisition $62,500
This project involves the right-of-way acquisition to extend Foster Road
1) westerly from Prairie du Chien Road and 2) easterly from North Dubuque
Street. Land appraisals are currently being updated.
Highway 1/Interstate 80 Sewage Pumping Facilities $383,600
This project involved the abandonment of sewage lagoons and their
replacement with a pumping station, force mains and sewer mains. Of the
total bonds issued, $289,600 will be abated from Special Assessment
Revenues and the remaining ($94,000) will be the City's share of the
project costs.
Bond Issue Costs
Bond Discount Allowance
TOTAL BOND ISSUE
$35,000
$70,000
$4,700,000
City of Iowa City
MEMORANDUM
Date: September 10, 1985
To: Mayor John McDonald and City Councilm"ers
From: Terrence L. Timmins, City Attorney
Re: Discussion of Iowa -Illinois Gas & Electric Company Franchises
Introduction: History and Present Status
As indicated to the City Council in my memo of August 16, I have been
reviewing the various forms of the franchise ordinances and the regulatory
ordinance which were developed by my predecessor, Mr. Bob Jansen, in coopera-
well with
proposed franchise�ordinan esthe
developed by franchise
Gas a&
Electric Company.
The ad hoc committee was composed of two councilmembers, Ms. Kate Dickson and
Mr. David Perret, the City Manager, the City Attorney, a representative from
the Planning Department and the Chairman of the Resources Conservation
Commission. This ad hoc committee apparently met over the course of several
months during 1983 and came up with a number of substantive proposals
regarding the gas and electric franchises. Utilizing this input, Mr. Jansen
prepared preliminary drafts of a gas franchise ordinance an electric
franchise ordinance, and an `Electrical Franchise Regulatory Ordinan�e' which
was directed only at the regulation of the electric utility company.
These drafts, submitted to the City in July of 1983, were then presented to
Iowa -Illinois and discussions of them commenced between Iowa -Illinois
representatives and the City Manager and the City Attorney as the City's
representatives.
In September of 1983, Iowa -Illinois countered with draft proposals of the
franchise ordinances and discussions continued. In approximately July of 1984
an apparent consensus was reached between company and city representatives in
consultation with the City Council. The parties then agreed that
Iowa -Illinois would redraft the franchise ordinances based on the consensus
reacIowa-Illinoisand of the two were submitted tothefranchiseordinances
oiniFebruarywof 1985. At the
March 12, 1985 Council meeting, the Council gave first consideration to both
ordinances, but subsequently tabled them upon determining that they were not
entirely in accord with the apparent consensus which had been reached the
prior year.
--------------
Wthough the regulatory ordinance was provided to me for review in late -July,
I was not aware that Mr. Jansen had drafted franchise ordinances, nor did I
obtain copies of them, until the last week in August.
In April of this year, the City Manager prepared a memo analyzing the present
franchise ordinances and the franchise ordinances as proposed by
Iowa -Illinois in February. That memo also included some comments on the
regulatory ordinance. The City Manager's memo was addressed to the City
Council, but was also forwarded to Iowa -Illinois. On the basis of their
review of the City Manager's comments in that memo, Iowa -Illinois prepared
yet another draft of both franchise ordinances, which were submitted to the
City in mid-July of this year.
Shortly after I assumed my position with the city, I was asked to review the
entire franchise matter with a view to assisting the Council obtain closure
on all outstanding issues as soon as possible.
After reviewing the matter, it is apparent that the City, through its ad hoc
committee, was attempting to address some problems and some issues which were
not addressed in the City's prior gas and electric franchises with
Iowa -Illinois, and which have not traditionally been addressed in municipal
franchise ordinances, at least until recently. The ordinances developed as a
result of the ad hoc committee's efforts are more regulatory in character
than traditional franchise ordinances in that they attempt to provide a high
degree of protection to the City's interests as an entity and "consumer
protection" to public utility customers.
While Iowa City is by no means unique in attempting to update its franchise
ordinances by addressing these issues, the proposals developed, particularly
those relating to consumer protection, plough new ground insofar as municipal
franchises in Iowa are concerned. The draft ordinances developed by the ad
hoc committee go into such consumer protection issues as rate increases,
customer complaints and energy conservation programs. By way of comparison,
the municipal franchise ordinances and utility regulatory ordinances which I
obtained from Sioux City and Davenport, all of which have been 'adopted within
the last ten years, do not address the consumer protection issues addressed
in the drafts generated by the ad hoc committee. The emphasis of the
ordinances from Sioux City and Davenport is more in the direction of protect-
ing the entity from utility company abuses in the use of public right-of-way.
Indeed, the modern trend in this area is to establish the City as a "manager"
of public right-of-way insofar as utilities are concerned since unplanned use
by a multitude of utilities competing for space in public right-of-way can
result in its misuse and in its impairment as a municipal resource. Just as
the FCC manages use of the airwaves so as to minimize conflicts, maximize the
overall benefit and preserve the resource, cities must similarly manage the
use of public right-of-way. Iowa City's current franchise ordinances
probably do not give the City adequate tools to perform this management
function.
Another issue which the ad hoc committee sought to address was the planning
of utility system extensions and expansions. The draft of the utility
regulatory ordinance, which again was directed only at the electric utility,
contained a set of planning criteria for determining whether or not an
electric utility system extension or expansion would be allowed. Finally,
during my review of the matter, it became apparent to me that Councilmembers
are not in agreement with one another or with Iowa -Illinois on the question
of the franchise fee or on the length of the franchise. Furthermore, based
on my review of the company's last draft of the franchise ordinance, it
appears that the company has not entirely accepted the City's views on a
��n3
number of other issues. This became even more evident upon my recent review
of Mr. Jansen's July 1983 drafts of the franchise ordinances. Additionally,
the company has yet to give any indication on still other issues which were
originally covered only in the regulatory ordinance. Given this background,
it became obvious that extensive redrafting would be required.
In approaching the task of redrafting the franchise ordinances and the
regulatory ordinance, I took the position that, for the most part, I would
not tamper with the philosophical or policy content of the ordinances, but
would rather only reorganize them and strengthen the implementation mecha-
nisms where necessary. I also made a conscious effort to determine what
consensus had been reached on particular issues so that I could incorporate
those agreements into my draft. My recent "discovery" of Mr. Jansen's 1983
drafts of the franchise ordinances made this task more difficult in that it
revealed a few more issues that the company has not yet addressed or has
addressed in a different manner than in Mr. Jansen's draft.
My view on the organization and interrelationship of the franchise ordinances
and the utility regulatory ordinance is that the franchise ordinances should
be of broad and general application and should not contain the detailed
regulations found in the utility regulatory ordinance or in other applicable
chapters of the Municipal Code. However, the franchise ordinances should
contain general descriptions of the types of regulations that the utility
company will be subject to, should reference the regulatory ordinance and the
other applicable chapters of the Municipal Code, and should contain an
explicit statement that the franchise and the company are subject to the
regulations found in those ordinances and chapters of the Municipal Code. My
drafts of those ordinances reflect these views.
Finally, it was my belief that the City should exercise it right-of-way
management function and that the City's regulations in .this regard should
have application as to all utilities that use public right-of-way, not just
the electric utility. Furthermore, Iowa -Illinois has expressed the view in
Its drafts of the franchise ordinances that it should not be burdened with
regulation any more so than other franchised utilities. Consequently, in
redrafting the regulatory ordinance, I decided to include regulations giving
the City broad powers to manage utility company use of the right-of-way and I
made those regulations applicable to all utilities using public right-of-way,
including the gas company, the telephone company and the cable television
company. Its new title is the "Public Utilities Regulatory Ordinance." This
perhaps represents one instance where I have "added to" the policy content of
the ordinance that I was reviewing.
With these general goals in mind, however, I undertook the task of redrafting
the electric franchise ordinance and the regulatory ordinance. Since the gas
and electric franchise ordinances are very similar, I felt it unnecessary to
immediately redraft both. Whatever the Council decides should be the content
of the electric franchise ordinance can easily be "interpolated" or "trans-
lated" to the gas franchise ordinance.
1723
4
Outline of Issues.
What I will attempt to do in the remainder of this memo is provide an outline
and a discussion of the various issues presented by the franchise ordinances
and the regulatory ordinance. Under each issue heading, I will give a brief
explanation of the origin and history of that issue or provision and I will
discuss its "evolution."
To aid in this discussion, I have attached to this memo as exhibits selected
versions of the electric franchise ordinance and the regulatory ordinance.
What follows is a chronological listing of all versions of those ordinances,
along with an indication.as to which of them appear as exhibits.
1. Present Electric Franchise Ordinance Exhibit A
(Adopted 8/10/59)
2. Proposed Electric Franchise Ordinance Exhibit B
(Jansen, July 193)
3. Proposed Electric Utility Regulatory Ordinance Exhibit C
(Jansen, July 1983)
4. Proposed Electric Franchise Ordinance
(Iowa -Illinois, September 1983)
5. Proposed Electric Franchise Ordinance
(Iowa -Illinois, February 1985)
6. Proposed Electric Franchise Ordinance Exhibit D
(Iowa -Illinois, July 1985)
7. Proposed Electric Franchise Ordinance Exhibit E
(Timmins, September 1985)
8. Proposed Public Utilities Regulatory Ordinance Exhibit F
(Timmins, September 1985)
In presenting this discussion, I will address the following issues in the
following order:
1. Regulation/Management of Utility Company Use of Public Right -of -Way.
a. Cutting and Trimming of Trees.
b. Excavations.
c. Obstruction or Interference with Public Facilities or Other Utility
Systems.
d. Utility System Expansions/Extensions/Major Repair/Installation of New
Systems.
2. Indemnity and Hold Harmless.
3. Underground Service Districts.
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4. Consumer Protection.
(a) Rate Increase.
(b) Customer Complaints.
(c) Energy Conservation.
5. Term of the Franchise.
6. Franchise Fee.
7. Miscellaneous:
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(a) Purchase of Power from Other Sources/Co-Generation/Buy-Back/Wheeling
Fee.
(b) Termination Due to Breach.
(c) Relocation.
Discussion of Issues.
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1. Regulation/Management of Utility Company Use of Public Right -of -Way.
This topic is dealt with to some extent in the existing franchise '
ordinances and in all of the proposed drafts of the new franchise
ordinance and regulatory ordinance. However, as earlier indicted, the
'drafts which I have prepared provide more extensive regulation than was i
heretofore imposed or proposed.
The existing franchise, Exhibit A, at Section 14-3 merely requires the
company to locate its facilities so as to make no unnecessary obstruction
of "any drains or sewers" and so as to make "no unnecessary obstruction
to the use of—streets, avenues, alleys and public places ... by the
public..." That section goes on to authorize the company to "cut and
trim in a careful and prudent manner...any rees extending into any
street, alley or public ground •so as to prevent limbs or branches from
interfering with... wires...," but does not obligate the company to trim
any more than is sufficient to clear wires.
By contrast, the draft franchise ordinance prepared by Mr. Jansen,
Exhibit B, did not address these issues. However, his draft of the I
regulatory ordinance, Exhibit C, did address "Cutting and Trimming" at
Section 3 and "Excavations" at Section 6. The tree trimming provision in
Mr. Jansen's draft was virtually identical to that found in the existing
franchise ordinance, except that the company would be required to obtain
a permit to do such work in residential areas. Under the provision on
excavations, the company would again have to obtain a permit from the
City Engineer in order to do excavating in city right-of-way for purposes
of erecting poles, wires and other appliances. The ordinance contained
no standards with regard to when a permit would be issued and the only f
requirement stated was that the company agrees to restore the original
conditions and restore grass areas with sod. Under Sections 16 and 17 of
Mr. Jansen's draft of the franchise ordinance, the Company's right to
erect distribution and transmission lines was subject to City approval,
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under requirements stated in the regulatory ordinance. In turn, Section
10 of his draft of the regulatory ordinance, Exhibit C, provided a
lengthy list of technical and planning criteria for the City to consider
in determining whether or not to approve. Neither ordinance (Exhibits B
and C) outlined the approval process.
The most recent Iowa -Illinois draft of the franchise ordinance, Exhibit
D, contains provisions on tree trimming and interference with water
pipes, drains and sewers at Section 3 thereof, and on excavations and the
obstruction of use of streets at Section 4 thereof. These provisions do
not go much beyond the provisions of the existing franchise. The permit
requirements found in Mr. Jansen's draft have been deleted in the
company's drafts.
The draft of the franchise ordinance which I have prepared, Exhibit E,
addresses excavations and tree trimming at Section 4 and contains
provisions regarding obstruction and interference with public improve-
ments and facilities, or other Dublic utilities, at Section 3 thereof.
Section 6 of my draft requires City aRproval o -the extension, expansion
and major repair of the electrical utility system or the installation of
a new electrical utility system, pursuant to the requirements and
procedureset �e Public
Zoning Ordinances(Chaptertory 36)Ordinance
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Under my draft of the regulatory ordinance, Exhibit F. all utility
companies operating utility systems in Iowa City would be required to
obtain a permit from the Director of Public Works in order to extend,
expand or perform major repair work on such systems, or to install a new
system. The permit procedure, the criteria for its issuance and related
requirements, are found in Section 33-179 of my draft of that ordinance.
Those criteria, regulations, and requirements relate primarily to the
management of the right-of-way as a resource. This permit procedure
gives the City an adequate tool to perform its right-of-way management
function.
With regard to proposals to extend or expand the electrical utility
system or install a new electrical utility system, the ra regulatory
ordinance imposes an aTdTflonal requirement that the proposal meet
certain planning criteria. Although this concept was contained in the
draft electrical franchise and regulatory ordinances prepared by Mr.
Jansen, Exhibits B and C, the procedure for approval was not set forth.
Under my draft of the regulatory ordinance, Exhibit F, the approval
procedure, the criteria for approval and related requirements are set
forth in Sections 33-182 through 33.184. Under the procedure I propose,
the Director of Public Works would make a recommendation to the City
Council from a right-of-way management perspective, the Planning and
Zoning Commission would make a recommendation from a planning perspective
and the City Council would make the decision to approve or disapprove the
proposed extension or expansion. This procedure will make the extension
or expansion of the electrical utility system a more difficult and
lengthier process than that required for the extension or expansion of
the other public utility systems - gas, telephone, cable TV. Although
Iowa -Illinois might object that the imposition of this additional
requirement on then as the electric franchisee is unfair, a case to the
contrary can be made. First of all, the idea of applying "planning"
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criteria to electric utility extensions may have some basis in the recent
"excess capacity" experiences of some other communities in Iowa. Sec-
ondly, the extension or expansion of public utility facilities has to be
viewed in the same light as the extension or expansion of other municipal
services such as sewer, water, streets and the like. Premature or
unplanned extension of any of these services can spur premature and
unplanned development. The City's comprehensive planning process, not
unregulated decisions of municipal services providers, ought to determine
where growth in the community will occur. In this vein, it is probably
therefore reasonable to impose this additional requirement (to satisfy
planning criteria) upon electrical utility expansions or extensions in
recognition of the fact that electrical utility system development is
often a precursor of utility system development by the other public
utilities (gas, telephone and cable TV).
After developing my initial draft of the regulatory ordinance, I circu-
lated it to those city departments that would be most affected by it,
Planning and Public Works, for their comments. As an initial comment,
both the Planning Department and the Public Works Department indicated
that there ought to be some notice given to the public on utility company
proposals to extend or expand their systems, particularly for those
property owners whose properties would be directly affected. -This of
course would invite public input, perhaps at a public hearing. I did not
make an effort to insert a notice or public hearing requirement into the
approval process, due botfi to uncertainty as to how that issue should be
handled and lack of time to study it. Further staff consideration of
this Issue is probably required.
Most of the other comments received related to the criteria which the
Public Works Director and Planning and Zoning Commiss oi-n were to use in
making their respective recommendations regarding a proposed electric
utility system extension or expansion. Those criteria are found in the
regulatory ordinance, Exhibit F, at Section 33-183. The Public Works
Director, Mr. Schmadeke, felt that the technical criteria found at
Section 33-183(a)(1) and (2) went beyond his field of expertise and were
inappropriate for the City to consider in determining whether or not to
approve an expansion or extension. I agree. Section 33-183(a)(1)
contains standards on how distribution and transmission lines should be
built. I do not believe that the City should put itself in the position
of approving technical electrical engineering design decisions made by
the electrical utility, particularly since we do not have personnel with
the expertise to do so. To do so might be to invite the City's involve-
ment in future liability issues regarding those design decisions.
Section 33-183(x)(2) states as a criteria for approval that electrical
transmission distribution lines have to be "located, erected, adjusted
and maintained so as not to endanger persons or property nor to cause a
reduction in value to surrounding private property." Again, I do not
believe that the City should be making judgments about whether or not the
placement of an electrical transmission or distribution line will be
dangerous. The City does not have the expertise to make that judgment.
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Furthermore, the issue of damage to or reduction in value of surrounding
private property is an issue best left to be sort ou y the utility
and the property owners involved. Such private property owners do have
legal recourse to recover their damages - inverse condemnation proceed-
ings. Bringing this issue into the approval process might serve only to
make the City a party to such proceedings.
For the foregoing reasons I would recommend that these criteria be
deleted before the regulatory ordinance is adopted. I didn't undertake
i to do that myself because it was my perception that these two criteria
r were an integral and significant element of the draft developed as a
result of the ad hoc committee's efforts. p
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The Planning Department, on the other hand, felt that the criteria which
the Planning Commission is to use in making its recommendation, found at
Section 33-183(b)(1)-(6), needed only to be clarified in certain re-
spects. However, this is an issue that should perhaps be dealt with at
the time that the City Council is actually considering the regulatory
ordinance.
Two final comments were made by the Planning Department. First of all,
it was their belief that it would assist the efforts of the Planning
Commission in making its recommendation on electrical utility expansions
or extensions if the company were required to submit information regard-
ing demand projections and plans for future distribution. Since. this
didn't appear to be unreasonable or startling, I included that require-
ment at Section 33-176 of the regulatory ordinance, Exhibit F. Finally,
the Planning Department pointed out that both the department and the
Planning Commission will require technical advice and assistance from
some person or body in applying some of the planning criteria to proposed
electric utility expansions or extensions.
2. Indemnity and Hold Harmless.
The existing franchise ordinances, and the drafts of those ordinances
prepared by Mr. Jansen and by Iowa -Illinois, all contain a provision
wherein the company agrees to indemnify the City for utility company
negligence in the use of the right-of-way. In the draft franchise
ordinance which I prepared, I borrowed the indemnity and hold harmless
provision which I found in both the Sioux City and Davenport franchise
ordinances. Since Iowa -Illinois is the franchisee under the Davenport
ordinance, I would assume that the company will find this provision
acceptable. It represents a definite improvement over the earlier drafts
in terms of protecting the City's interests.
3. Underground Service Districts.
Both the draft franchise ordinance and the draft regulatory ordinance
prepared by Mr. Jansen, Exhibits B and C, address the undergrounding of
electrical utilities. Section 15 of Mr. Jansen's draft of the franchise
ordinance describes the downtown underground district and goes on to
provide that the "district or districts may be enlarged from time to
time." Section 8 of his draft regulatory ordinance sets forth a proce-
dure for establishing and constructing electrical utilities in under-
ground districts.
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Neither the existing electric franchise ordinance, Exhibit A, nor any of
the Iowa -Illinois drafts, Exhibit D, address undergrounding in any way.
The draft franchise ordinance which I have prepared, Exhibit E, addresses
undergrounding at Section 11, providing only that the company will bury
its system components underground in any underground service district
hereafter established by the City pursuant to Chapter 33, Article VI of
the 'Municipal Code - which is the regulatory ordinance. In 'my draft of
the regulatory ordinance, Exhibit F, the undergrounding requirement is
made applicable to all utilitcom antes at Section 33-184, the under-
ground districts are es a s e a ec ion 33-186, and the underground
district regulations are found at Section 33-187.
4. Consumer Protection.
a. Rate Increases.
b. Customer Complaints.
c. Energy Conservation.
The consumer protection issues and provisions which I will discuss herein
had their genesis, for the most part, with the ad hoc committee and in
Mr. Jansen's draft of the regulatory ordinance, Exhibit C. The only such
issue raised in his draft of the franchise ordinance, Exhibit B, relates
to energy conservation programs and it is found at Section 14 thereof.
The existing franchise ordinances do not address these issues, nor do any
of the Iowa -Illinois drafts of the franchise ordinances.
As an initial comment, I would point out that the regulatory ordinance
which Mr. Jansen drafted (Exhibit C) provided a rather comprehensive
system and process for dealing with these issues. It called for the
formation of an `Electricity Review Commission" and the appointment of a
"Utility Specialist," both with an extensive list of powers, duties and
responsibilities. (See Sections 1 and 2, thereof.) Furthermore, it
imposed extensive reporting requirements on the company (See Section 7).
Essentially, the review commission and the utility specialist were to
oversee and coordinate all consumer protection functions and be an
integral enforcement tool in that regard.
In redrafting the franchise ordinance, Exhibit E, I inserted a provision
referencing the Public Utility Review Commission's authority to review
rate increase requests and customer complaints at Section 8 thereof. At
Section 13 of my draft, I also inserted a provision similar to that found
in Mr. Jansen's draft requiring the company to maintain, administer, and
operate several specific .types of energy conservation programs.
In my draft of the regulatory ordinance, I for the most part simply
restated the provisions of Mr. Jansen's draft regarding the Utility
Review Commission, broadening its application, however, to all public
utilities.
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In the remainder of this section, I will separately discuss each consumer
protection issue herein identified, indicating where I believe there may
be problems, indicating where I have made adjustments to address problems
and including where further adjustments may be necessary.
(a) Rate Increases. With regard to company rate increase requests, the
regulatory ordinance recognizes that the Iowa Commerce Commission has
exclusive jurisdiction of this subject, but nonetheless heavily involves
the City in the process by giving the Utility Review Commission the duty
to "Initiate inquiries or receive requests for intervention by the City
in rate increase requests" filed by the company "before the Federal
Energy Regulatory Commission or the Iowa Commerce Commission," and to
"provide recommendations on such to the City Council." (See Exhibit F,
Section 33-174.) Nothing in the ordinance binds the company to accept
the City's findings or recommendations based on its review of the matter.
When combined with the company reporting requirements, Section 33-176,
these provisions operate to give the City the ability to gather facts so
that it can take an informed position on company rate increase requests.
To assure that these provisions operate as intended, I did include a
provision in the franchise ordinance, Exhibit E, Section 8, that requires
the company to participate in these review activities, but does not bind
the company to accept the City's findings or recommendations.
(b) Customer Complaints. The regulatory ordinance also gives the
Utility Specialist and the Utility Review Commission a role to play in
customer complaints regarding either billing or service. See Exhibit F.
Sections 33-174 and 33-175. Again, the ordinance recognizes that the
Iowa Commerce Commission has exclusive jurisdiction in this area, but
nonetheless gives the Utility Specialist the authority to "investi-
gate...complaints, disputes and disagreements...between customers and the
company,... under the supervision of the (Utility Review) Commission..."
The ordinance also gives the Utility Review Commission the power to
conduct hearings on such complaints, and based thereon the Commission may
recommend to the City Council that the City file a complaint with the
Iowa Commerce Commission on behalf of the customer. The provision which
I inserted in the franchise ordinance, Exhibit E, at Section 8, thereof,
also has application here and requires the company to participate in such
Commission review activities, but does not bind the company to accept the
City's findings or recommendations.
(c) Energy Conservation. As I've already indicated, Mr. Jansen's draft
of the franchise ordinance, Exhibit B, required the company "to provide
services for the conservation of energy for the benefit of consumers..."
That section went on to outline a few types of conservation programs that
the company was to maintain and provided that they were "subject to the
approval of the City...," and that they had to be "in accordance with,
but not limited to, the terms...(of the).. regulatory ordinance..." In
Mr. Jansen's draft of the regulatory ordinance, Exhibit C, Section 9 sets
forth the procedure for City review of the company's conservation
programs and provides that they must be submitted to the Utility Review
Commission "for approval." That Section then goes on to provide that
"The company shall not abandon or discontinue any program without the
consent of the ... (Utility) Review Commission."
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In my draft of the franchise ordinance, Exhibit E, I did include a
provision requiring the company to maintain several types of conservation
programs. Although I broadened the list of required programs, I did not
make them subject to City approval, nor did I reference the regulatory
ordinance. In my draft of the regulatory ordinance, I basically carried
forward unchanged the provision from Mr. Jansen's draft regarding review
of company conservation programs, including the requirement that those
programs be "approved" by the Utility Review Commission and that they not
be changed or discontinued without Commission `consent."
In discussing these provisions, I would first of all acknowledge that my
treatment of them, given my concerns about them, is somewhat inconsistent
as between the franchise ordinance and the regulatory ordinance. In my
view, the City's authority to regulate in this area, or make requirements
of a utility franchisee, is somewhat limited, in that Chapter 476 of the
Iowa Code gives authority to the Iowa Commerce Commission to regulate in
this area. While from a Home rule perspective the City has not been
specifically prohibited from regulating in this area and while I gener-
ally en obroadlyconstrue city Hone Rule power to act when not
specifically prohibited from doing so, I am concerned that an attempt to
regulate in this area would be challenged by the Iowa Commerce Commis-
sion. Essentially, if the City were to adopt a provision requiring the
company to engage in more extensive energy conservation programs in Iowa
City than elsewhere under Commerce Commission rules, the company would
more than likely attempt to pass on its costs to utility customers. Since
a utility company's tariff or rates are currently approved on a sys-
tem -wide basis, Iowa City's more vigorous conservation program require-
ments would likely impact company rates in other locales. This is where
the Commission would be likely to enter the act, objecting to those more
stringent requirements. Although Chapter 476 doesn't specifically
pre-empt City exercise of power in this area, the courts could probably
be persuaded that given the Commission's broad grant of jurisdiction, and
the impact that regulation has on rates, it is implicit that the legisla-
ture intended the Commission's jurisdiction of these matters be exclu-
sive.
On this basis, it would be my recommendation that the City retrench
somewhat, perhaps approaching the energy conservation issue in the same
way as has been suggested with regard to rate making and customer
complaints - that is, that the City function in a review and recommenda-
tory fashion, and that its findings and recommendations not be binding on
the company.
5. Term of the Franchise.
As originally proposed in Mr. Jansen's draft of the franchise ordinance,
Exhibit B, Section 1, the franchise would have had a term of five years.
This issue has apparently been a matter of much discussion in the
franchise negotiations. In their most recent draft, Exhibit 0.
Iowa -Illinois has countered with a proposal of a 15 year franchise term.
I have carried this proposal forward into my draft of the franchise
ordinance, Exhibit E, Section 1.
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In his draft, Mr. Jansen also included a provision which would have given
the City a right to "buy-out" the franchise in the third year. Such
provisions are not uncommon to franchise ordinances and are found in both
the 'Davenport and Sioux City franchise ordinances mentioned earlier.
Iowa -Illinois did not include such a provision in any of their drafts. I
have included a ten year "buy-out" provision in my draft of the franchise
ordinance, Exhibit E, at Section 12.
6. Franchise Fee.
The franchise fee has been another controversial issue in franchise
negotiations. Originally ,proposed by the City (Exhibit B, Section 10),
the franchise fee concept has yet to be included in any of the draft
proposals submitted by the company.
In preparing my draft of the franchise ordinance, I decided to suggest a
number of alternative approaches to the franchise fee issue. In doing
so, I am not recommending the imposition of a franchise fee, nor am I
recommending any particular approach. I outline the alternatives
available only to make the Council aware that they exist, and that they
are available perhaps as "middle ground" in any debate on the issue.
Alternative A. Under this alternative, a franchise fee of 2% would be
imposed upon adoption and acceptance of the ordinance. The 2% fee
originated with Mr. Jansen's draft and could obviously be increased or
decreased.
Alternative B. Under this alternative, the City merely reserves the
Wto impose a fee at a later time. This would give this or u ure
ounci-Is the ability to tap this additional source of revenue if it
ever became necessary. If the City does not exercise or reserve this
right in adopting the franchise, it will not be a�Tble o e City
until the franchise again comes up for renewal. This provision would,
however, set a cap on the percentage amount of franchise fee which could
be imposed later.
Alternative C. Under this alternative, a given percentage of the
franchise fee collected each year could be returned to taxpayers in the
form of reduced property tax askings in each succeeding fiscal year, much
the same as can be done in the case of local option tax.
Alternative 0. Under this alternative, which first appeared in the draft
of the franchise ordinance prepared by Mr. Jansen, Exhibit B at Section
10 thereof, the' company could not recover its franchise fee costs by
surchar in Iowa City customers, but would have to spread that cost over
cus overs throughout the entire system. While perhaps attractive, this
approach could again court trouble with the Iowa Commerce Commission,
since the Commission might feel that it would disrupt the uniformity and
fairness which it seeks to achieve in setting company rates on a sys-
tem -wide basis. Again, since this gets the City into a gray are, similar
to that presented by the energy conservation issue, it may be advisable
for the City to abandon this idea.
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7. Miscellaneous.
Several issues which came up during my review of the franchise matter did
not fit into any of the aforementioned categories and so I will deal with
them here.
(a) Purchase of Power from Other Sources/Co-Generation/Buy-Back/Wheeling
Fee. In his draft of the franchise ordinance, Exhibit B, Mr. Jansen
included a provision on the City's purchase of power from other sources
at Section 12, and on °co -generation" at Section 13. In reviewing these
issues with Public Works Director Chuck Schmadeke and the City's Utility
Specialist, Mr. Schoenfelder, it became apparent that the City should
perhaps preserve in the franchise some options that it currently has
under State and Federal regulations, but which could disappear if those
regulations change. The sections of Mr. Jansen's draft which I referred
to represent an attempt to preserve those options. However, in my draft
of the franchise ordinance, Exhibit E, at Section 14, I'attempted to more
comprehensively treat all of those issues in one section. Essentially,
this provision would allow the City to buy power from a source other than
Iowa -Illinois, or to generate it by itself at a City facility, or at any
facility in cooperation with a "co-producer." The utility would then
either have to "buy-back" the power produced by the City or "wheel"
(transport) it for use at other City and/or. co-producer facilities. The
company's drafts of the franchise ordinance did not address these
issues.
(b) Termination due to Breach. In Mr. Jansen's draft of the franchise
ordinance, Exhibit B at Section 9, he included a provision that the City
could terminate the franchise upon breach by the company, after notice to
and opportunity for cure by the company. Section 21-17—his draft
provided that the company would not be excused from compliance by failure
to the City on prior occasions to insist upon or seek compliance. The
company did not include these' provisions in its drafts. I have carried
these provisions forward into my draft in a single, comprehensive
remedies provision, Exhibit E at Section 16 thereof.
(c) Relocation. In Mr. Jansen's draft of the franchise ordinance,
Exhibit B, at Section 5, the company is required to "...locate and
relocate ... at its costs... its installations in, on, over or under any
public street..." if necessary to promote "construction, reconstruction,
maintenance, or repair of any public improvement ... or...the efficient
operation... thereof." In its last draft of the franchise ordinance,
Exhibit -D, Iowa -Illinois included this same provision at Section 12
thereof.
In my draft of the franchise ordinance, Exhibit E, at Section 11 thereof,
I have included the same provision. However, at the suggestion of the
Planning Department I did, in my draft of the regulatory ordinance,
Exhibit F at Section 33-189(b) thereof, extend the relocation requirement
to cover situations where the City was vacating a street for redevelop-
ment purposes. If the Council desires to add this additional requirement
at this time, the franchise ordinance should be similarly amended.
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Concluding Remarks:
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Based on this review and analysis of the franchise matter, . I think it is
obvious that there are many issues that remain outstanding and unresolved.
Since it is apparent that these issues cannot all be resolved in time to .
allow Council adoption of the franchise ordinances during September, it is
also apparent that the question of their approval cannot be put to the
electorate in November in conjunction with the regular city election. Staff
will need direction from the Council where to proceed from here, but I would
suggest that a final round of negotiations be had with Iowa -Illinois to see
if we can't further close the gap on these issues. I would recommend that
this be done before the City Council formally takes up these ordinances for
consideration. In entering into such negotiations, staff will need policy
direction from the City Council on the various issues covered in this memo.
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EXHIBIT A
Present Electric Franchise Ordinance
(Adopted 8/10/59)
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Chapter 14
FRANCHISES
Are. L fir. K 14.1-14.34
AM M Gas, 11 14-27-1"1
Ars W. TekpbmW l/1462—kids
Art'io lsr..as..d Wmanns"ass% 111466.1-1443
Mr. L Generally. 11 14691, 14692
Div. L Eaubllet Grdleann, if 1460-1493
ARTICLE L ELECTRICITY*
Sea 14.L Gn tt L
Then Is hereby granted to Iowa•RUnois Gas and Electric
CompaAT, an Illinois corporation authorized to do business in
the stats, hereinafter called the "company," and its sucen.
son sad assigns, the right and franchise to acquire, coutruct,
arect, maintain, and operate in the city. an electric light and
power system, including the right to erect. install, am mala.
tain the nscasary poles, IinM wires„ transmission lines, eon.
duits and other appliances for the tnamdss(on and distribu.
tion of electric energy along, under. and upon the streets. ave.
nue, &boys, bridges, viaducts, and public places in the city.
This fnaehise shall be effective for a tweatyfive year
period but the city council may, at the end of the first fifteen
(15) years, review said franchise and if deemed desirable, re.
negotiate sed submit an amended franchise to the voters.
(Ord. No. 2170,11.8.1Odi9)
Sea 14L Make subject to state law; franchise not exclu.
sive.
The rights and privileges granted by this article are subject
to the restrictions and limitations of Chapter 397 of the Code
of Iowa 1986, and this franchise shall not be exclusive. (Ord.
No. 2170,12, S-10.69)
'CrM nrerear-Vaduwmad slutdcal eeerite, CL 33, Art. ILL
Sapp Na b
919
M
114-3 IOWA MY CODE
Sea 143. Compasles right to erect poke, insleu wiring, etc.
no company shau have the right to erect hereafter all
necessary posts, poles, or conduits and to place thereon the
aeeassary wires. fixtures, and aecawries, for the conducting
Of currents of electric energy In and through the city, pro•
vidd that the same sball be w located and maintained as to
male@ no imneeeaeary obstruction of any drains. or overall or'
the flow of water therefrom, which have been or may hero
after be located by authority of the city. Said pats, poles,
conduits, whir, fixtures, and accessories shall be w erected
and maintained In the streets, avenues, allays, and pahlic
pleas of the city ss to make no unnecessary obstruction
therein to the use thereof by the public and as to comply
with the specifications of the National Eieetrical Safety Code
as appewd by the American Engineering Standards Commit-
tee in force at the time of such construction, and shall be so
Placed and the wires attached to or placed upon them shall be
kept at sub an elevation as to avoid danger to peraoss asci
adlaeent property. The company is authorized and empowered
to cut and trim in a careful and prudent inanner, at its ex.
Pews, any trees extending into any street, alley, or public
gmnnd so as to prevent limbs or branches from interfering
with the wires of the company. The obligation of the company,
however, shall not extend beyond trimming trees sufficiently
to clear the electric wires. (Ord. No. 2170, ¢ 3, 9.10.59)
See. 14.4. Company to relocate Installations In, over, on or
under public streets at direction of counciL
The company obali, at its cost and expense, relocate its in.
stallations h% on, over, or under any public street in the city
in such manner as the city council may at any time reason•
ably require for the purposes of.facilitating the construction,
reconstruction, maintenance. or repair of any public Improve-
ment of, In, or about any such street or promoting the effi.
cient operation of any such improvement. (Ord. No. 2170,
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418.1"9)
Sapp. No. e
920.
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• FRANCMM t4a
see 145 �t+my is far M map of misommmd isdall'
does and updato information.
The compaa7 shall furaiab to the city for f0intf is tho city
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onsinews office "soon as reasonably pneticabbN a map i
ebowin` the location of all exlatias oulargeound doetslral II
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( ggANCBISES 1149
installations in the city streets and alleys and shall thereafter
furnish the necessary data to allow the city, engineer to main-
tain such map on a current basis. (Ord. No. 2170, p b, 8.10.69)
See. 1". Street excavations
In malting excavations in any, streets, avenues, alleys, and
public places for the erection of poles and wires or other
Appliances, or for the insinuation of conduits, the company
sball not unnecessarily obstruct the on of the streets and
shall replace the surface, restoring the original condition As
nearly as practicable. The company shall be subject to the j
asme regulations with regard to returning streets to a satis-
factory eondltion as all other persons who make excavations
in such public streets (Old. No. 2170, 4 81 8.10.69)
See. 14d. Company's obliption to extend Marries,
The company and its successors -and assign shall extend its
lines and wires to any part of the city, provided that the
company shall not be required to
� unlessdand turestil an
n
any street, avenue, lane, toad.
be at least one consumer per two hundred (200) feet meas•
shall first awee
mod along Inch 43ftend0m, which
writing to use and pay for electric llca Bhtm and power furnished
by the company. (Ord. No. 2170, 9 7, 8-10.69)
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See. 14-L Compimy to hold city harmless for damages mining
from eempany's negligence.
The company and its successors and assigns shall hold the
city free and harmless from all damages arising on account
of any negligence of the company and its successors and as-
signs in the erection, operation, and maintenance of such
system. (Ord. No. 2170, 4 8.8-10-59) �
Sea 1{•9. Company's obligation to furnish energy.
The company and its successors and assigns, eo long as they
shall operate under the terms of this franchise, shall furnish
electric anergy in sufficient quantities to supply the remon-
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1 14e IOWA CITY CODE
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able demands of the city and the inhabitants thereof. The
energy furnished shall be of reasonably uniform voltage
throughout the city and at all times up to the standard for
efficient operation of lights, motors, and appliances. The serv-
ice shall be continuous twenty-four (24) hour service, seven
(7) days In the week, unless the company Is prevented from
doing so by fire, storm, acts of God, unavoidable accidents, or
casualties, and In such event service shall be resumed as
quickly as is reasonably possible. (Ord. No. 2170, ¢ 9, 8-10-
59)
•
Sea 14-10. Rales
1
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The rates charged by the company for Its service furnished
hereunder shall at all times be just, fair, and reasonable and
the city council reserves to itself the right at all times to regu-
late and fix rates and charges In accoidance with the pro-
visimu of the statutes of the state. The city council reserves
i
the right to provide for the inspection of electric meters and
other measuring devices and to prescribe reasonable rules for
the testing of meters. (Ord. No. 2170, J. 10, 8-10.69)
Sea 14.11. Accounting.
Ths company shall keep the accounts of its electric depart-
ment in accordance with the uniform classification of accounts
as established by the Federal Power Commission, and shall,
while this effect Is in force and effect, file annually with the
city clerk, within ninety (90) days following the expiration of
each fiscal year of the company, a full and complete statement
of Its business and property for such fiscal year, including
earnings and operating statements, capital investments for
such year in extensions and improvements to the plant and
distribution system required for rendering electric service to
the city and its inhabitants. Such statement shall be signed
and sworn to by an officer of the company. From time to time
the company shall supply such other Information as may be
pertinent to the city council in determining the reasonableness
of the rates being charged. A copy of the overall company re-
port, filed with the Federal Power Commission, shall also be
922
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1 ysnxcluszs � 14.rs
filed annually with the i
clk within
ty (30) after
days
the same has been filed wihesthe Federal Poower Commierdom
(Ord. No. 2170, ¢ 11, 8.10.59)
Sm 14-IL City's right to toapeot books, neesda and proper.
sea
For the Purpose of determining proper rates to be charged, all
necawry books, records, and Properties of the electrical depart.
meat of the company of very hind anddescription shall beat all
reasonable times open for inspection to any representative duly
appointed for that Purpose by the city council: provided, however
that nothing herein contained shalt be construed as a waiver by
the city of any right it may now or hereafter passer to examine
or cause to be examined in any other manner such books, records,
and prepsrt e& no city council shall, when it desires to appoint
a repesentatiw to so examine the books, records, and properties
of the company, send written authorisation of the appointment of
sorb epressutative to the company, setting out the nature and
extent of the examination to be made by such repessntative and
he Purpose of such es.mination. (Ord. No. 2170,11% 8.1049)
See. 11.11 CompanytoDaof dty'a ez•U��eeae; expenses
When the city council, preceeding on its own motion or corn.
plaint or on the Application of the utility, shall deem 1t nee
i eaeary, in order to carry out their duties in determining fair
and reasonable rates, to Investigate he books, seaunting and
Practices and activities or make appraisals of the property of
the utility or to engage any engineering or legal services, the
reasonable expenses incurred by the council in connection with
such determination of rates shalt be assessed against and paid
by the company within thirty (30) days attar eeecipt of billing
been the city; previded, however, that the tow amount which
he company shall be required to pay under the provisions of
this section during any two (2) successive calendar years
shall not exceed one per cent of its groes operating revenues
derived from Iowa City electric operations in the first of an&
calendar years (Ord. No. 21-70, 11, 8-10.59)
eesv. Yla?• 925
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1 14U IOWA CITY CODE
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See. 14.14. Cempeay'sright to establish rales and regulations;
city'sright to approve or disapprove.
The comDaay is authorized to impose reasonable terms and
conditions apo" the furnishing of electric service and reason.
able rules and regulations in the operation and conduct of its ,
business including, without limitation, requiring a reasonable
deposit of any consumer as a condition of furniebinE elWWe
energy to such consumer. Such authorization L subject to the
rights of the council to approve or disapprove the reasonable
Hiles and regulatioua of the company and the company shall
file such reasonable rules and regulations with the city clerk
and such rules and regulations shall become effective thirty
(30) days thereafter unless the council shall take action there.
OR within such thirty (30) days. (Ord. No. 2170,1 14. &10.69)
See. 1416. Qly'sright to me oompasy plea, towers„
The city shall be privileged, without charge,to make aw of
the Delta, towers, and underground conduits of the company for
the poll" alarm system„ Urs alarm gstem, and traffic eon.
• trol system of the city, to the extent "that each use shall not
isteders with their an by the compaay, but the city ahsil
hold the company harmless from any and all aures of action,
litigation, or damages arising through the placing of the fscM.
ties of the city upon the poles, towers, and underground eon•
i ducts of the eompeay. (Ord. No. 2170, 115, 8.1049)
Sees 1414.1420. Reserved.
ARTICLE IL GAS
Bea. 1427. Granted.
Thera is hereby granted to Iowa-Minois Gas and Electric
Company, an IIDnola corporation authorized to do business in
the state, hereinafter called the "company," and to its succes.
more and assigns, the right and franchise to distribute and no
manufactured gas, natural gas, or gas derivatives, together
with the right to acquIM lay, lnatall, construct, reconstruct, {
WtM4 replaesr enlarg4 maintain and operate in the dty,
SUM NL 24
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PTANCBISrs t 1esu.
plants and works for the manufacture, storage, and processing,
of gas, the transmission and distribution thereof, including
the necessary pipes, mains, apparatus and other facilities far
the tranemission and distribution of gas In the publie'streets
in the city. This franchise shall be effective for a twenty-five
(26) year period but the city council may, at the end of th'e'
first fifteen (16) years, review such franchise and if deemed
desirable, renegotiate and submit an amended franchise to the
voters. (Ord. No. 2169, 11, 8.10.69)
Sea 14.28. Rights subject to state bw; franehise not exela-
aive.
The rights and privileges granted by this article are subject
to the restrictions and limitations of Chapter 397 of the Code
of Iowa 1968, and this franchise shall not be exclusive. (Ord.
No. 2169, § 2, 8.10.69)
See. 14.29. Company's right to excavate streets to by pipe4:
eta
The company shall have the right to excavate in anypublic.
street for the purpose of laying, relaying, repairiag:or ex-
tending gas pipes, mains, conduits, and other facilities pro•
vided that the same shall be so located and maintained as to
make no unnecessary obstruction of any drains or sewers or
the flow of water therefrom, which have been or may here-
after be located by authority of the city. Such gas pipes,
mains, conduits, and other facilities shall be so located and
maintained in the streets, avenues, alleys, and public places
of the city as to make no unnecessary obstruction therein to
the use thereof by the public. (Ord. No, 2169, 13. 8.1469)
Sec. 14.30. Company to tannish map of malas and update in.
formation.
The company shall furnish to the city for filing in the city.
engineer's offices as soon as reasonably practicable, a map -
showing the location of all existing gas malas in the city
strasti, and sball thereafter furnish the necessary data to
allow the city engineer to maintain. such. map on a.current-
basis. (Ord. No. 2169, § 4,8-10-59)
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11441 IOWA CITY CODE
Seo 1431. Company to relocate Installations in, on, over or
render streets at direction of council.
The company shall, at its cost and expense, relocate its In.
stalletlons in, on, over, or under any public street in the city
in such manner as the city council may at any time reasonably
require for the purposes of facilitating the construction, re•
construction, maintenance or repair of the street or any public
Improvement therein or to promote the efficient operation of
any such Improvement- (Ord No. 2169, 15, 8.1059)
See. 1432. Street excavations.
In making excavations of any stints, avenues, alleys, and
public places for the installation of gas pipes, conduits, or
apparatus, the company shall not unnecessarily, obstruct the
use of the streets and shell replace the surface, restoring the
original conditions as nearly as practicable. The company shall
be subject to the same regulations with regard to returning
streets to a satisfactory condition at all other persons who
make excavations in the public streets. (Ord. No. 2169, § 6,
8-10-59)
Seo 1433. Company's obligation to extend mains.
The company and its successors and assigns shall extend
Its mains and pipes to any part of the city; provided the com-
pany shall not be required to extend such mains and pipes on
any public street except there shall be upon such public street
at least one consumer for each one hundred (100) lineal feet
on the avenge of such extension who shell first agree in
writing to use and pay for ger furnished by the company
upon the completion of such extension. (Ord. No. 2169, § 7,
8-10-59)
seo 1434. Company to hold city harmless for damages re-
sulting from company's negligence.
The company and its successors and assigns shell hold the
elty fres and harmless from all damages arising on account
of any negligence of the company and its successors and as.
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PBANCMSES 114-37 i
signs in the construction, reconstruction, operation, and main•
tenon" of its system. (Ord. No. 2169, 4 8, 8.10.59)
Sm 1445. Company's obligation to furnish gas.
I
The company and its successors and assigns so long as they I
shall operate under the terms of this franchise shall furnish
such quantities of gas of good quality as the city and the in.
habitants thereof may reasonably demand sad the gas sere -
Ice furnished shall at all times be of a reasonably uniform
pressure and shall at all times be up to the standards for
efficient operation of gas burning units and appliances;
provided, however, that such undertaking and agreement shall
be subject to such limitations on the use of gas for large•
volume commercial or industrial applications or for space
hating as may be provided by reasonable miles and regale.
tions placed into effect by the company during any tempo-
nary shortage in or permanent diminution of the supply of
natural gas with which the company serves the city and the
inhabitants thereof. (Ord. No. 2169. $ 9.8-10-59)
j Sae. 1444 Rates.
The rata charged by the company for its service furnished
hereunder shall at all times be just, fair, and reasonable and
the city council reserves to itself the right at all times to regu•
late and fix rates and charges in acoordance with the pre
visions of the statutes of the state. The city council reserve
the right to provide for the inspection of gas meters and
other measuring devices and to prescribe reasonable rules for
the testing of meters. (Ord. No. 2169, 110, 8.10-59)
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Sm 14.37. Aecounting; annual report.
The company shall keep the accounts of its gas department
In accordance with the uniform classification of accounts as
established by the Federal Power Commission and shall, while
this article is in force and effect, file annually with the city
clerk within ninety (90) days following the expiration of each
fiend year of the company, s fall and complete statement of
its business and property for such fiscal year, including earn.
927
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IOWA CITY CODE
in= and operating statements, capital investments for such
Year in extensions and improvements to the plant and distA.
button system, required for rendering service to the city and
its inhabitants. Such statement shall be signed and sworn to
' by an officer of the company. From time to time the company
shall supply such other Information as may be pertinent to
the city council in determining the reasonableness of the rates
being charged. A copy of the overall company report, filed
with the Federal Power Commission, shall also be filed an.
nually with the city clerk within•thirty (30) days after the
same has been filed with the Federal Power Commission.
(Ord. No. 2169, 111.8-10-59)
Sea 1438. City's right to inspect books, records and proper.
ties.
For the purpose of determining proper rates to be charged,
all necessary books, records, and properties of the gas de.
partment of the company of every kind and description shall
'be at all ressonable times open for inspection to any repro
sentative duly appointed for that purpose by the city council;
provided, however, that nothing herein contained shall be con.
strued as a wat,,tr by the city of any right It may now or
hereafter possess to exa:Tlse or cause to be examined in any
other manner such books, records, and properties. The city
councll shall, when it desires to appoint a representative to is
examine the books, records, and properties of the company,
send written authorization of the ,appointment of such repre.
sentative to the company, setting out the nature and extent
of the examination to be made by such representative and
the purpose of such examination. (Ord. No. 2169, § 12, 8.10.
59)
Sea 1489. Company to pay reasonable expenses of city's ex.
amination of books, records and properties.
jWhen the city council, proceeding on its own motion or
complaint or on the application of the utility, shall deem It
necessary, in order to carry out their duties in determining
fair. and reasonable rates, to Investigate the books, accounting
and practices and activities or make appraisals of the property
928
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of the utility or to engage any engineering or legs! services,
the reasonable expenses Incurred by the council In connection
with such determination of rates shall be assessed against and
paid by the company within thirty (SO) days after receipt of
billing from the city; provided, however, that the tot A pro -
under which the company shall be required to PAY
visions of this section during any two (2) successive calendar
years shall not exceed one per cent of its gross operating
o� h calender years.rived from lowa City gas (Ord, No. 2 69, § 13,ons In e first
8-10.59)
Sec. 1440. ComPaay's right to establish rules and regulations;
city's right to approve or disapprove.
The company is authorized to impose reasonable terms and
conditions upon the furnishing of gas service and reasonable
rules and regulations in the operation sconduct�le si-
now including, without limitation, req
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posit of any consumer as A condition of furnishing BOB to
such consumer. Such authorization is subject to the right of
i the eanncil to approve or disapprove the reasonable rules and
regulations of the company and the company shall file each
reasoatble rales and regulations with the city clerk and sub
rules and regulations shall become ve thirty
80) days
thereafter unless the council cil shall take aetlon hereon within
such thirty (30) days. (Ord. No. 2169,114, 8-10.59)
Sees 14.41-14.51. Reserved.
ARTICLE IH, TELEPHONE'
See. 14.52. Granted.
The American Telephone and Telegraph granted theright,f
low&, its successors or assigns, is hereby gran
i operate and maintain Its
privilege and authority to erect, PQ2a necessary
lines of
telephone and telegraph, includingand over the
fixtures and electrical conductors, upon, then
•Cent rsfasnes—Oadasresad telspboee series, Cb. A Art -M
•f 3462 IOWA CI7Y CODE
streets, alleys and bridges of the city, as Its business may
from time to time require, upon the following terms and con-
ditions. (Ord. No. 502,8.5-1897)
See 14.51. Location of poles.
All poles erected pursuant to this article shall be erected
under the supervision of the committee on streets and alleys,
and shall be so located as not to interfere with the public use
and travel of the streets and alleys. Ali poles shall be neat,
symmetrical, shaven and kept neatly painted, and no electrical
conductors shall be placed thereon less than twenty (20) feet
above the surface of the ground. (Ord. No. 502, 35.1897)
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See. 1454. Conform to grade.
After the erection of the poles and .fixtures referred to
section 14.53, said company shall restore the surface of the
streets, alleys, and sidewalks to the same condition In which
it found them. The work of restoring the street as aforesaid
shall be dons undo the supervision of the committee on
streets and alleys. Any expense to which the city shall be put
by reason of the neglect of the company to do such work in
a workmanlike manner shall be paid by the company upon
the presentation of bills certified by such committee. In use
the company s lines shall be found to interfere with the
change of gmde of any street or with any public Improvement,
the company shall, upon receipt of written notice thereof from
the council, move Its lines at its own expense, so as to con-
form with such change of grade or such improvement. (Ord.
No. 50% 34-1897)
See. 1455. Compsay to hold city harmless for damages arts- i
Log from company's negligence.
The company shall hold the city free and harmless from
all damages or claims for damage of any kind whatsoever
caused by the construction or negligent maintenance of Its
lines and shall be liable for Injuries to public or private prop•
erty of every kind. (Ord. No. 502, 35.1897)
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EXHIBIT B
Proposed Electric Franchise Ordinance
(Jansen, July 1983)
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City of Iowa City
(--' MEMORANDUM
DATE: July 22, 1983
TO: City Council
FROM: City Manager ,�X4"'e/
RE' Proposed Electrical Franchise
Attached to this memorandum are copies of the proposed franchise and the
regulatory ordinance. This is scheduled to be discussed at the informal
Council meeting on Monday, July 25, 1983, at 8:20 P.M.
CITY OF IOWA CITY
July 22, 1983
ARTICLE I. ELECTRICITY
GRANT OF ELECTRICAL FRANCHISE
1. There is hereby granted a five year nonexclusive
franchise to Iowa -Illinois Gas 6 Electric Company, an
Illinois corporation authorized to do business in the State
of Iowa, hereinafter called the "Company" and Its successors
and assigns, the right to acquire, construct, erect, maintain
and operate in the City of Iowa City, a municipal corporation,
hereinafter called the "City," an electric light and power
system including the right to erect and maintain, subject to
the requirements of this franchise grant and the Franchise
Regulatory Ordinance, all poles, lines, wires, transmission
lines, conduits and other appliances for the transmission and
distribution of electric energy along, under and upon the
streets, avenues, alleys and public places to serve customers
within and without the City, and to furnish and sell electric
energy to said City and its inhabitants.
2. The franchise granted herein shall be expressly
subject to the provisions of the Electrical Franchise
Regulatory Ordinance to be enacted by the City Council of Iowa
City, Iowa, upon grant of this franchise to the Company.
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3. The rights and privileges hereby granted are subject
to the restrictions and limitations of Chapter 364 of the Code
of Iowa, and any successor provisions thereto, as well as any
other applicable statute or regulation promulgated by
administrative agencies under federal and state law.
4. The franchise granted herein shall not restrict in
any manner the right of the City in the exercise of any power
which it now has or which may hereafter be authorized or
Permitted by the laws of the State of Iowa.
5. The franchise granted herein shall apply to, insure
to and bind the parties hereto and their successors and
assigns during the term herein provided that any assignment
by the Company be also subject to the approval of the City
Council of the City by resolution, which shall not be
unreasonably withheld.
6. The Company and its successors and assigns shall
indemnify and hold the City free and harmless from any and all
claims, suits, losses, damages, costs or expenses arising on
account of any negligence of the Company and its successors
and assigns in the erection, operations, and maintenance of
its electrical system.
7. If any of the provisions of this franchise ordinance
are for any reason illegal or void, then the lawful provisions
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Of this franchise ordinance, which are separable from said
unlawful provisions, shall be and remain in full force and
effect, the same as if the franchise ordinance contained no
illegal or void provisions. In the event any provision or
provisions are ruled illegal or void by a court of competent
Jurisdiction, the City and the Company shall forthwith amend
this franchise to insert a successor provision that complies
with the applicable court ruling.
B. This franchise shall be effective for a period of
five years from the date of the filing of the written
acceptance by the Company with the City Council.
9. The City Council of the City expressly reserves the
right to terminate the franchise granted herein at any time
for a breech of any of the provisions of this franchise.
I Provided, however, that there shall be no termination unless
the City first notifies the Company, in writing, of the
specific acts complained of, and giving the Company up to
sixty days in which to correct and cure the breach or
breaches. It is agreed and understood that the subject matter
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of this franchise is unique and may be enforced by specific
performance, at the City's option, since a remedy at law may
be inadequate.
10. It is hereby imposed upon the Company and by its
acceptance of this franchise, it agrees to pay to the City a
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monthly rental fee for the use of the public streets and ways
in an amount equal to one (1) per cent of the gross revenues
derived by the Company from the distribution and sale of
electricity to customers within the corporate limits of the
City. The rental fee shall be paid to the City, at the office
of its Finance Director, within fifteen days following the
last day of the preceding month. At the time the rental fee
is paid, the Company shall also certify to the City, in a form
acceptable to the City, establishing such gross revenues for
that month. such payment shall be in addition to any other
payment charged or fees owed to the City by the Company and
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shall not be construed as payment in lieu of personal or real j
property taxes levied by state, county, or local authorities.
The Company agrees that any recovery of the costs of the fees i
shall be spread equally among all of its customers including
those living outside the City and said fees shall not be
surcharged to City customers.
11. The Company, by the acceptance of this franchise,
agrees to and does grant unto the City the right, during the
third year of this franchise, to purchase and take over, free
and clear of all liens and encumbrances, the entire
electrical system of the said Company, as then existing and
located within the corporation boundaries of the City, which
may be owned, used and maintained by it in carrying out the
terms and conditions of this franchise, including all
property which shall constitute the electrical system of the
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said Company, both at this time and at the time when such
right of purchase shall accrue to the City, together with all
renewals, improvements, betterments, repairs, and additions
thereto, and including all rights and claims of every kind,
character and description then owned by the Company and used
in connection with its electrical system and used or employed
in rendering the service required under the provisions of
this franchise. Such purchase shall be subject to any
existing contracts for electricity entered into previously in
good faith. In the event said City shall elect to purchase
under the provisions of this franchise, it shall serve
written notice of its election so to do upon the said Company
at* least twelve (12) months before the exercise of such
option. If at the time of the exercise by the City of such
right to purchase, the Company and the City are able to agree
upon the purchase price, then such property shall be
transferred to the City upon the payment of the agreed
purchase price; but if the Company and the City, at such time,
are unable to agree upon such purchase price, then the amount
to be paid by the City for said property shall be determined
in accordance with the provisions of Section 472.46 to
472.51, both inclusive, Chapter 472, of the 1981 Code of Iowa
and all other amendments and substitutions which may be in
force in the State of Iowa, at the time of said purchase,
provided, however, that in determining said purchase price,
the said appraisers or arbitrators appointed under and by
virtue of said statutes shall place no value upon the
franchise herein granted.
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12. Nothing contained in the terms of this franchise
shall be construed to prevent the City from purchasing
electrical power for its facilities from sources other than
the Company and to contract for same from these sources.
13. In the event that the City enters into small power
production or cogeneration activities by itself, or in
agreement with other producers, the Company agrees that it
shall purchase the excess electricity generated thereby that
is not needed by the City for its facilities during the term
of this franchise.
14. The Company agrees that it shall, during the term of
this franchise, provide services for the conservation of
energy for the benefit of its cusomers within the City. These
shall include, but not be limited to load management devices,
solar energy system applications and all other feasible
energy-saving devices. The programs establishing these
methods of support and financing shall be subject to the.
approval of the City. The Company shall prepare said programs
and present same to the City within six months after enactment
of the franchise ordinance and shall be in accordance with,
but not limited to, the terms and conditions to be set forth
in the franchise regulatory ordinance or any future
amendments hereinafter enacted to said franchise regulatory
ordinance.
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15. The territories in the City embraced within the
following described boundaries shall be known as the "under-
ground district or districts," namely: Madison Street north
from Court Street to Washington Street, Washington east to
Clinton Street, Clinton Street north to Iowa Avenue, Iowa
Avenue east to Gilbert Street, Gilbert Street south to Court
Street, and Court Street west to Madison Street
and, in addition, as required by the City ordinances dealing
with the establishment of subdivisions. The territory to be
embraced within the "underground district or districts" may
be enlarged from time to time, by the City Council. The
requirements for undergrounding electric distribution lines
are set forth in the Franchise Regulatory Ordinance.
16. Subject of the approval of the City, the Company
shall have the right to erect all posts or poles and to place
thereon the wires, fixtures and accessories for the
distribution of electric energy in and through the City. The
right granted herein shall be subject to the requirements
contained in the Electrical Franchise Regulatory Ordinance.
17. Subject to the approval of the City, the Company
shall have the right to erect all posts or poles and to place
thereon the wires, fixtures and accessories for the
transmission of electric energy in and through the City. The
right granted herein shall be subject to the requirements
contained in the Electrical Franchise Regulatory Ordinance.
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18. The Company, so long as it shall operate under the
terms of this franchise, shall furnish electric energy in
sufficient quantities to supply the demands of said City and
the inhabitants thereof. The energy furnished shall be of
reasonably uniform voltage throughout the City and at all
times up to the standard for efficient operation of lights,
motors and .appliances. However, nothing stated in this
section shall be construed to prevent the Company from
_adopting a cost-effective plan of conservation voltage
regulations. The service shall be continuous twenty-four
hours service, seven days a week, unless the Company is
prevented from doing so by fire, storm, acts of God,
unavoidable accidents or casualties, and in such event
service shall be resumed as Quickly as is reasonably
possible.
19. Police regulations shall be adopted and enforced by
the City for the protection of the poles, posts, wires, lamps
and 'other apparatus of the Company, its successors and
assigns.
20. Meters shall be tested periodically in accordance
with rules and regulations approved by the Iowa State
Commerce Commission.
21. The Company shall not be excused from complying with
any of the terms and conditions of this franchise by any
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18. The Company, so long as it shall operate under the
terms of this franchise, shall furnish electric energy in
sufficient quantities to supply the demands of said City and
the inhabitants thereof. The energy furnished shall be of
reasonably uniform voltage throughout the City and at all
times up to the standard for efficient operation of lights,
motors and .appliances. However, nothing stated in this
section shall be construed to prevent the Company from
_adopting a cost-effective plan of conservation voltage
regulations. The service shall be continuous twenty-four
hours service, seven days a week, unless the Company is
prevented from doing so by fire, storm, acts of God,
unavoidable accidents or casualties, and in such event
service shall be resumed as Quickly as is reasonably
possible.
19. Police regulations shall be adopted and enforced by
the City for the protection of the poles, posts, wires, lamps
and 'other apparatus of the Company, its successors and
assigns.
20. Meters shall be tested periodically in accordance
with rules and regulations approved by the Iowa State
Commerce Commission.
21. The Company shall not be excused from complying with
any of the terms and conditions of this franchise by any
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failure of the City upon one or more occasions to insist upon
or to seek compliance with any such terms or conditions.
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Proposed Electric Utility Regulatory Ordinance
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(Jansen, July 1983) II
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City of Iowa City
July 22, 1983
ELECTRICAL FRANCHISE REGULATORY ORDINANCE
Sec. / Iowa City Eleetrlcity Rwut
ew Comeission
(a) Within 120 days of the granting and acceptance of
the electrical franchise, there shall be appointed a
Cosrission to be known as the Iowa City Electricity Review
Commission.
(b) The composition and term of members of the Iowa City
Electricity. Review Commission shall be determined by the City I.
Council.
(c) "City" shall mean the City of Iowa City; "Company"
shall mean Iowa -Illinois Gas d Electric Company.
(d) The duties of the electricity review commission
shall be as follows;
(1) Reviewing and auditing reports submitted to
the City as required.
(2) Conduct a bi-annual review of the franchise
and make recommendations to the City Council
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City of Iowa City
July 22, 1983
ELECTRICAL FRANCHISE REGULATORY ORDINANCE
Sec. / Iowa City Eleetrlcity Rwut
ew Comeission
(a) Within 120 days of the granting and acceptance of
the electrical franchise, there shall be appointed a
Cosrission to be known as the Iowa City Electricity Review
Commission.
(b) The composition and term of members of the Iowa City
Electricity. Review Commission shall be determined by the City I.
Council.
(c) "City" shall mean the City of Iowa City; "Company"
shall mean Iowa -Illinois Gas d Electric Company.
(d) The duties of the electricity review commission
shall be as follows;
(1) Reviewing and auditing reports submitted to
the City as required.
(2) Conduct a bi-annual review of the franchise
and make recommendations to the City Council
Mc
concerning operational responsibilities of
the Company in performing this franchise and
amendments to the franchise.
(3) Initiate inquiries or receive requests for
intervention by the City in rate increase
requests filed by the Company before either
the Federal Energy Regulatory Commission or
the Iowa State Commerce Commission, and
provide recommendations on such to the City
Council.
(4) Receive complaints from customers concerning
Company service or billings. The commission
may conduct a public hearing upon any
complaint concerning service or billings. The
hearing shall be conducted pursuant to the
Iowa City Administrative Code and following
such hearing the commission shall issue its
findings and if further action on the
complaint is warranted, the commission may
recommend to the City Council that the City
file a complaint, acting for the complainant,
with the Iowa Commerce Commission.
Sec. .2 Utility Specialist
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The City Manager is hereby authorized to appoint a
utility specialist for the purpose of exercising the City's
continuing regulatory Jurisdiction over the franchise. Such
responsibility shall include, but not be limited to, the
following matters:
a) Advise and assist the Electricity Review Commission
1n its duties as set forth in the Electrical
Franchise Regulatory Ordinance.
b) Monitor activities of the Company to ensure
compliance with the
provisions of the Grant of i
Electrical Franchise Ordiannce and of the
Electrical Franchise Regulatory Ordinance and make
irecommendations to the Cammission about same.
C) Under ,the supervision of the Commission shall
I investigate such complaints, disputes -or disagree-
ments as may be directed or referred to the
Commission between customers and the Company.
d) Report his or her recommendations upon complaints,
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disputes or disagreements after investigation to
the Electrical Review Commission for the issuance
of finding.
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e) Review and audit reports, records and filings
submitted to the City, and conduct such inspections
Of the Company's system as may be necessary in
support of such review as provided for in the Grant
of Electrical Franchise Ordinance and in this
ordinance and report on same to the Commission.
f) Coordinate City -managed energy conservation
programs.
g) Other such duties as the City Manager or the
Commission may assign.
sec. 3 Cutting and Trimming
The Company is empowered and authorized to cut and trim
in a careful and prudent manner, at its expense, any trees
extending into any street, alley or public ground so as to
prevent limbs or branches from interferring with the wires of
the Company. The obligation of the Company, however, shall
not extend beyond trimming trees sufficiently to clear the
electrical wires. No cutting or trimming shall be performed
In residential street areas without prior approval of the
City Forester and said cutting and trimming shall be in
accordance with standards to be established by the Forester
and only after a permit is obtained.
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Sec. `f Public Improvements
The Company shall, at its cost and expense, locate and
relocate its installations in, on, over, or under any public
street in the city in such manner as the City Council may at
any time require for the purposes of facilitating the
construction, reconstruction, maintenance, or repair of any
public improvement on, in or about any such street or
promoting the efficient operation of any such improvement.
Sec. .S Maps and Protections
The Company shall furnish to the City Engineer a current
map shwing the location of all existing overhead and under-
ground electrical installations in the city streets and
alleys and on private property and shall thereafter furnish
the necessary data to allow the City Engineer to maintain such
map on a current basis. This data shall be furnished monthly.
In addition, the Company shall furnish projections of all
proposed installations at intervals of five years with yearly
updates.
Sec. 6_ Excavations
In making excavations in any streets, avenues, alleys
and public places for the erection of poles and wires or other
appliances, the Company shall provide the City Engineer with
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24 hours notice prior to any excavation work being done. A
permit from the City Engineer shall then be issued. A
condition of said permit shall be that the Company agrees to
restore the original conditions and in grass areas the
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surface shall be restored with sod. The permit shall not be
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required in emergencies which require immediate excavation. 1
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Sec. % Reporting Requirements I
The following information shall be furnished by the j
Company to the City Clark and filed in that office within the
times hereinafter sat forth: i I!
1. Annual Report to Stockholders (within 30 days of j
issuance).
2. Form 1, Annual Report, Electricity (FERC) (within �.
30 days of filing).
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3. Form 5, Monthly Statement of Operating Revenue and
income, Electric (FERC) (by the 25th of the
following month).
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4. Form 423, Monthly Report of Cost and Quality Fuels
for Electric Plan (FERC) (by the 25th of the i
following month).
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5. Form 3, Typical Monthly Electric Bills (FERC)
(within 30 days of filing).
6. 10K -Annual Report (SEC) (within 30 days of filing).
7. Prospectuses of all future stock issues (within 30
days of filing).
S. Copy of Company's current rate manual and all
updates.
9. Simultaneous, written notice to the City of any rate
increise requests filed by the Company before
either the Federal Energy Regulatory Commission or
the Iowa State Commerce Commission.
10. A copy of the Company's case in chief for any rate
increase proposed before either the Iowa State
Commerce Commission or the Federal Energy
Regulatory Commission delivered to the City
simultaneous with service on either commission.
11. Failure by the Company to timely furnish the
required reports shall subject it to a penalty in
the amount of $50.00 per day for each day that each
report is not filed within the specific time.
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sec. _F Underground District Regulations
(1) When directed by the City, the Company shall
commence placing electric distribution lines underground, at
its expense, in the underground district or districts.
(2) Before commencing the work of placing electric
distribution lines underground, the Company shall file with
the City a written statement specifying the particular
streets, alleys, and public highway, or parts thereof, in
which conduits are to be located, the approximate size of the
conduits proposed to be used and the distance from the surface
of the street to the top of the conduits.
(c) The statements required by Sec. _ (b) of this
Ordinance shall be accompanied by a map, plan or specifica-
tions which shall show the proposed location of the conduits
with reference to the streets, alleys and surface of the
streets and the approximate dimensions of the conduits and
manholes to be used therewith. The proposed locations may be
changed by the Department of Public Works of the City if they
shall in any way interfere with other conduits, pipes or
sewers placed underground.
(d) The statement, map, plan or specifications, altered
as provided for 1n Sec. _ (c) of this Ordinance, after
being corrected or changed, together with the original I
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statement, shall remain on file in the office of the
Department of Public Works of the City. All conduits and
manholes shall be constructed in accordance with the
corrected statement, map, plan or specifications.
(e) A permit to excavate in any street, alley or public
highway shall be issued by the Department of Public Works to
construct conduits and manholes as provided for in this
Ordinance, when their location has been approved by the
Department of Public Works.
(f) In planning underground conduits, the Company shall
include in the plans a conduit space of the capacity of one
duct in which the City may place its wires, free of charge.
The City shall be allowed free access to such ducts at all
Liens and shall be allowed facilities and privileges at
manholes for putting in or taking out wires in the space
allotted to the City, equal, in all respects, to those of the
Company.
(g) In the location, construction or repair of any
conduit, no excavation shall be unnecessarily made, placed or
continued. Any excavation or obstruction made or placed in
any street, alley or public highway, at any time, or for any
such purpose, by anyone, shall be properly guarded. Any
pavement, at any time, or for any purpose whatsoever, torn up
or displaced by the Company, under the terms of this
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Ordinance, shall be properly and speedily replaced and put in
proper order by it, under the supervision of the Department of
Public Works of the City. The Company shall pay all damages
for injuries to persons or to the property of any property
owner or corporation, as well as to the City, resulting from,
occasioned by or growing out of negligence or improper
construction in laying, constructing or repairing conduits or
the maintenance and use of the sane. The Company shall fully
indemnify and save harmless the City from and against all
claims, actions or suits at law, or in equity, of any nature,
for damages to persons or property, resulting from,
occasioned by or growing out of the omission of the Company to
properly guard any excavation obstruction at any time, or for
any purpose whatsoever made, placed or caused in any street,
alley or public highway, for the omission to replace and
repave properly and speedily any opening or to keep any such
pavement in proper repair, so far as such repair may be made
necessary by the interference with the pavement caused by the
location, construction, use or repair of such conduits. If
the Company shall fail or refuse to replace or repair any
pavement or curbing removed by it in any street or alley. in
doing the work contemplated by this Ordinance, it may be
replaced or repaired by the City under the direction of the
Department of Public Works, at the cost and expense of the
Company.
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(h) The extension of electric distribution lines from
conduits to buildings or other locations above ground within
the underground district shall be approved by the Department
of Public Works of the City.
Sec. _J_ Review of Company Conservation Program
(a) Programs designed to provide services for the
conservation of energy, as required by the franchise, shall
be submitted to the Utility Specialist, who shall then review
same and then shall submit them to the Iowa City Electricity
Review Commission for approval.
(b) All of said programs shall be subject to review by
the Utility Specialist and the Iowa City Electricity Review
Commission while they are being carried out and the Company
shall provide all reasonable requests for information to the
Utility Specialist concerning the programs and their
implementation.
(c) The Company shall not abandon or discontinue any
program without the consent of the Iowa City Electricity
Review Commission.
Sec. . /0 Distribution and Transmission Line Requirements
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(a) For the purpose of this section, distribution lines
are defined as all lines for the distribution of electric
current within the city other than transmission lines.
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(b) For the purposes of this section, transmission
lines are those lines carrying thirty-four point five (34.5)
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kilovolts or more of electric current for light, heat or
power.
(c) Distribution lines and transmission lines shall be
built of strong and proper wires attached to strong and
efficient supports properly insulated at all points of
attachment; all wires, poles and other devices which by
ordinary wear or other causes are no longer safe shall be
removed and replaced by new wires, poles or other devices, as
the case may be, and all abandoned wires, poles or other
devices shall be at once removed. Where wires carrying
current are carried across, either above or below wires used
for other service, the said electric distribution lines shall
be constructed in such manner as to eliminate, so far as
practicable, damages to persons or property by reason of said
crossing. There shall also be installed sufficient devices
to automatically shut off electric current through said
electric distribution lines whenever connection is made
whereby current is transmitted from the wires of said
electric distribution lines to the ground, and there shall
also be provided a safe and modern improved device for the
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protection of said line against lightning. In addition,
electric transmission lines shall at all times be located,
erected, adjusted and maintained so as not to endanger
persons or property nor to cause a reduction in value of the
surrounding private property without compensation to the
owner or owners. Provided, however, that if such lines cannot
be practicably located anywhere else then, in that event, the
compensation requirements shall not apply. All posts or
poles shall be so placed as not to interfere with construction
of any water pipes, drain or sewer, or the flow of water
therefrom which have been, or may hereafter be, located by
authority of the City. The post or poles and the wires
attached to or placed upon them shall comply with the National
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Electrical Safety Code and the regulations of the Iowa State
Commerce Commission regarding construction and clearance
requirements. All of said poles or posts shall comply with
the height limits for buildings in residential zones as
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provided in the zoning ordinances of the City.
(d) As a condition of City approval for the erection of
transmission and distribution lines, the following planning
requirements shall be met and submitted in writing:
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1. The relationship of the proposed project to present
and future economic development of the area.
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2. The relationship of the proposed project to compre-
hensive electrical utility planning.
3. The relationship of the proposed project to the needs
of the public presently served and future projections based
on population trends.
4. The relationship of the proposed project to the
existing electric utility system and parallel existing
utility routes.
5. The relationship of the proposed project to any other
power system planned for the future.
6. The possible use of alternative routes and methods of
supply.
7. The relationship of the proposed project to the
present and future land use and zoning ordinances.
S. The inconvenience or damage which may result to
property owners as a result of the proposed project.
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EXHIBIT 0
Proposed Electric Franchise Ordinance
(Iowa - Illinois, July 1985)
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EXHIBIT 0
Proposed Electric Franchise Ordinance
(Iowa - Illinois, July 1985)
: on
` ORDINANCE NO.
AN ORDINANCE GRANTING TO IOWA -ILLINOIS I
GAS AND ELECTRIC COMPANY, ITS SUCCESSORS
�I AND ASSIGNS, THE RIGHT AND FRANCHISE TO
ACQUIRE, CONSTRUCT, ERECT, MAINTAIN AND
II OPERATE IN THE CITY OF IOWA CITY, AN
ELECTRIC LIGHT AND POWER SYSTEM FOR A I
iI PERIOD OF FIFTEEN YEARS AND TO FURNISH
I: AND SELL ELECTRIC ENERGY TO SAID CITY
I; AND ITS INHABITANTS.
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BE IT ENACTED by the City Council of the City of Iowa City:
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II Section. i. There is hereby granted to Iowa -Illinois Gas and
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� Electric Company, an Illinois corporation authorized to do
Ij business in the state of Iowa, hereinafter called the "Company",
�Iand its successors and assigns, the right and franchise to
acquire, construct, erect, maintain and operate in the city of
• Iowa City, an electric light and power system including the right ,
II to erect and maintain the necessary poles, lines, wires,
transmission lines, conduits and other appliances for the
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transmission and distribution of electric energy along, under and
upon the streets, avenues, alleys and public places to serve
' customers within and without said city of Iowa City, for a period
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of fifteen years from and after the effective date of this
ordinance, and t. furnish and sell electric energy to said city
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and its inhabitants.
Section 2. 1'he rights and privileges hereby granted are
subject to the restrictions and limitations of Chapter 364 of the
Code of Iowa 1985, the Municipal Code of Iowa City and Iowa City
ii ordinances, all as amended, as well as any other applicable
B
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statute or regulation promulgated by administrative agencies
under federal or state law, and this franchise shall not be
exclusive.
Section 3. The Company shall have the right to erect all
necessary posts or poles and to place thereon the necessary
wires, fixtures and accessories for the distribution of electric
energy in and through said city, but all said posts and poles
shall be so placed as not to cause unnecessary interference with
the construction of any water pipes, drain or sewer, or the flow
Ii of water therefrom, which have been or may hereafter be located
by authority of said city. The posts or poles and the wires
attached to or placed upon them shall comply with the National
Electrical Safety Code and the regulations of the Iowa State
Commerce Commission regarding construction and clearance
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requirements. The Company is authorized and empowered to cut and
trim in a careful and prudent manner, at its expense, any trees
I� extending into any street, alley, or public ground so as to
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Iiprevent limbs or branches from interfering with the wires of the
�j Company. The obligation of the Company, however, shall not
�I extend beyond trimming trees sufficiently to clear the electric
wires.
Section 4. In making excavations in any streets, avenues,
Ij alleys and public places for the erection of poles and wires or
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other appliances, the Company shall not unnecessarily obstruct
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I the use of the streets, and shall replace the surface, restoring
the original condition as nearly as practicable. The Company
shall be subject to the same regulations with regard to returning,
Istreets to a satisfactory condition as all other persons who make
IIexcavations in said public streets.
Section S. The Company, its successors and assigns, shall '
hold said city free and harmless from all damages arising on
account of any negligence of said Company, its successors and
assigns, in the erection, operation and maintenance of said
system.
Section 6. The Company, its successors and assigns, shall
extend its lines and wires in accordance with rules and
regulations approved by the'Iowa State Commerce Commission.
Section 7. The said Company, its successors and assigns, so
.long as it shall operate under the terms of this franchise shall ;
I.lfurnish electric energy in sufficient quantities to supply the
j. reasonable demands of said city and the inhabitants thereof. The
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energy furnished shall be of reasonably uniform voltage
it throughout the city and at all times up to the standard for
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efficient operation of lights, motors and appliances. The
service shall be continuous twenty-four hour service, seven days
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a week, unless the Company is prevented from doing so by fire,
storm, acts of God, unavoidable accidents or casualties, and in
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such event service shall be resumed as quickly as is reasonably
possible.
Section S. The Company, its successors and assigns, is
authorized to impose reasonable terms and conditions upon the
Ii furnishing of electric service and reasonable rules and
�i regulations in the operation and conduct of its business.
Section 9. The City shall be privileged, without charge, to
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make use of the poles, towers, and underground conduits of the
�i Company for the police alarm system, fire alarm system, and
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traffic control system of the City, to the extent that such use
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li shall not interfere with their use by the Company, but the City
shall hold the Company harmless from any and all causes of
action, litigation, or damages arising through the placing of the
i, facilities of the City upon the poles, towers, and underground
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Section 10. This franchise shall apply to, inure to and bind!
li the City and the Company and their successors and assigns;
i provided that any assignment by the Company shall be subject to
the approval of the City Council by resolution, which approval
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Section il. Upon approval of the City Council and after
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reasonable attempts to acquire by purchase, the Company shall
'I have the power to condemn private property for the purpose of
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jj providing electric service to the public. The Company must
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establish the necessity for each taking of private property and,
when so established, the City Council may approve the
condemnation of the private property by resolution.
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Section 12. The Company shall, at its cost and expense,
locate and relocate its installations in, on, over or under any
public street in the city in such manner as the city may at any
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itime reasonably require for the purposes of facilitating the
construction, reconstruction, maintenance or repair of any public
improvement of, in, or about any such street or promoting the
efficient operation of any such improvement.
Section 13. This ordinance and the rights and privileges•
herein granted shall not become effective or binding until this
ordinance shall have been submitted to and approved by a majority
I, of the electors of said city of Iowa City voting at the next
IIgeneral or municipal election or at a special election called forj
.f that purpose. The cost and expense of the election relating to
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ij the franchise provided for herein shall be paid by the Company.
Section 14. The Company, its successors and assigns, within i-
1 30 days after the approval of this ordinance by a vote of the
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people, shall file in the office of the clerk of the city of Iowa;
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City its acceptance ir, writing of all the terms and provisions of
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1' this ordinance. I
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!) Section 15. %Upon the effective date of this ordinance, all
I ordinances or parts of ordinances in conflict herewith are hereby
I` repealed.
Section 16. If any of the provisions of this franchise
ordinance are held to be illegal or void, the lawful provisions,
it which are separable from said unlawful provisions, shall be and
IIremain in full force and effect.
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Section 17. This ordinance shall become effective upon
passage by the City Council, the approval of the voters as
provided in Section 13 hereof, and the acceptance by the Company
l+ as provided in Section 14 hereof.
IIPASSED AND APPROVED this day of 19_.
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iI CITY OF IOWA CITY, IOWA
By
Mayor
i1 ATTEST:
' II
ii City Clerk
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EXHIBIT E
Proposed Electric Franchise Ordinance
(Timmins, September 1985)
CITY DRAFT 9/2/85
ORDINANCE NO.
AN ORDINANCE GRANTING TO IOWA -ILLINOIS GAS AND ELECTRIC COMPANY, ITS SUCCES-
SORS AND ASSIGNS, THE RIGHT AND FRANCHISE TO ACQUIRE, CONSTRUCT, ERECT,
MAINTAIN AND OPERATE IN THE CITY OF IOWA CITY, AN ELECTRIC LIGHT AND POWER
SYSTEM FOR A PERIOD OF FIFTEEN YEARS AND TO FURNISH AND SELL ELECTRIC ENERGY
TO SAID CITY AND ITS INHABITANTS.
BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
Section 1. There is hereby granted to Iowa -Illinois Gas and Electric
Company, an Illinois corporation authorized to do business in the state of
Iowa, hereinafter called the "Company," and its successors and assigns, the
non-exclusive right and franchise to acquire, construct, erect, maintain and
operate in the City of Iowa City, an electric light and power system includ-
ing the right to erect and maintain the necessary electric utility system
components for the transmission and distribution of electric energy along,
under and upon the streets, avenues, alleys and public places to serve
customers within and without said City of Iowa City, for a period of fifteen
years from and after the effective date of this ordinance, and to furnish and
sell electric energy to said city and its inhabitants.
Section 2. The rights and privileges granted to the Company, as franchisee
un er th s franchise ordinance, and including the Company's successor and
assigns, are subject to:
(1) applicable provisions of the Iowa Code, including but not limited to
Chapter 364 thereof,
(2) the but not limitedtoMunicipal hapter 31, ArticlenII,es of said Excavations;tCh Including
Chapter 33,
Article VI, Public Utilities Regulation; Chapter 32, Subdivision
Regulations; Chapter 33, Utilities; Chapter 34, Vegetation; and Chapter
36, Zoning; and
(3) any other applicable statute or regulation promulgated by Federal or
State agencies under federal or state laws;
all as said laws, codes, ordinances, statutes and regulations are presently
enacted or as they may hereafter be amended. In the event of a conflict
between the provisions of this franchise ordinance and any of the aforemen-
tioned chapters of the Municipal Code, the provisions of those chapters of
the Municipal Code shall prevail. The City may make such reasonable amend-
ments to the provisions of the Municipal Code, affecting or regulating the
Company in its operation of the electric utility, as the City deems necessary
and proper. The franchise granted herein shall not restrict in any manner
the right of as or which
may hereafter the authe horized In or ore permittedxercise by theolaws swer wofcthe tnow h
State of Iowa.
Section 3. The Company shall have the right to erect, construct, or install
a necessary electric utility system components, including
not
limited
to, posts, poles , towers, conduits, fixtures, manholes, app ian es
sories and to place thereon or therein the necessary wires for the transmis-
sion and distribution of electric energy in and through said city, but all
electric utility system components shall be placed and maintained so as not
to cause obstruction of or unnecessary interference with the construction or
/ 7.,?3
Ordinance No.
Page 2
operation of any public improvements or facilities located upon public
property or public right-of-way, including but not limited to streets,
alleys, sidewalks, traffic control devices, sanitary sewers, storm sewers,
storm drains, or water mains, which have been or may hereafter be located by
authority of the City, or of any other public utilities which are in place.
All electric utility system components placed above, upon, in or under public
right-of-way, and the wires placed thereon or therein, shall comply with the
National Electrical Safety Code and the regulations of the Iowa Commerce
Commission regarding construction and clearance requirements.
Section 4. The Company is authorized to make excavations in city streets,
avenues, alleys and public places for purposes of routine repair, replacement
and maintenance of poles, wires, conduits, lines or other electric utility
system components. In making such excavations, the Company shall obtain a
permit therefore pursuant to Chapter 31 of the Municipal Code, shall not un-
necessarily obstruct the use of streets, avenues, alleys or public places,
shall provide the Public Works Director with 24 hours notice prior to the
actual commencement of the work, and shall comply with all provisions and
requirements of Chapter 31 in performing such work. In emergencies which
require immediate excavation, the Company may proceed with the work without
first applying for or obtaining the permit, provided, however, that the
Company shall apply for and obtain the excavation permit as soon as.possible
after commencing such emergency work.
The Company is empowered and authorized to cut and trim in a careful and
prudent manner, at its expense, any trees extending into any street, alley or
public ground so as to prevent limbs or branches from interfering with the
Company's above -ground transmission or distribution lines or facilities. The
authority or obligation of the Company shall not extend beyond trimming trees
sufficiently to clear its above -ground lines and facilities. No cutting or
trimming shall be performed in residential street areas without prior
approval of the City Forester and said cutting and trimming shall be in
accordance with standards to be established by the Forester and only after a
permit is obtained, pursuant to Chapter 34. of the Municipal Code. In
emergencies which require immediate cutting or trimming of trees in residen-
tial areas, the Company may proceed with the work without first applying for
or obtaining the permit, provided, however, that the Company shall apply for
and obtain the permit as soon as possible after commencing such emergency
work.
Section 5. The Grantee shall defend at its own expense, in the name and on
behaf of the City, and shall indemnify and save harmless the City from any
and all claims, suits, losses, damages, costs or expenses, whether caused or
contributed to by the negligence of the Grantee, or the City, on account of
Injury or damage to any person or property, caused or occasioned, or alleg-
edly caused or occasioned, in whole or in part, by reason of or arising out
of the construction, reconstruction, excavation, operation or maintenance by
the Grantee of the electric utilities authorized by this franchise. However,
the Grantee shall not be obligated to defend, indemnify and save harmless the
City forany costs or damages arising from the negligence of the City, its
officers, employees or agents, where the Grantee is not negligent in any way.
The duty of the Grantee to defend, and save harmless and indemnify the City
shall extend to officers, employees and agents of the City to the extent the
City is obligated to defend, save harmless and idemnify by law.
/ 7.� 3
Ordinance No.
Page 3
Section 6. The Company, and its successors and assigns, is authorized to
ex ern i -is lines, wires and conduits, to expand its transmission and distri-
bution systems, to engage in major repair work and to install new distribu-
tion and transmission systems within the City, provided that such work is
done in accordance with the rules and regulations of the Iowa Commerce
Commission, and provided further that City approval of such work is first
obtained pursuant to requirements and procedures set forth in Chapter 33,
Article VI, Public Utilities Regulation, and Chapter 36, Zoning.
Section 7. The said Company, its successors and assigns, so long as it shall
operate under the terms of this franchise, shall furnish electric energy in
sufficient quantities to supply the reasonable demands of said city and the
inhabitants thereof. The energy furnished shall be of reasonably uniform
voltage throughout the city and at all times up to the standard for efficient
operation of lights, motors and appliances. The service shall be continuous
twenty-four hour service, seven days a week, unless the Company is prevented
from doing so by fire, storm, acts of God, unavoidable accidents or casual-
ties, and in such event service shall be resumed as quickly as is reasonably
possible.
Section 8. The Company, its successors and assigns, is authorized to impose
rea�Te terms and conditions upon the furnishing of electric service and
reasonable rules and regulations in the operation and conduct of its busi-
ness. Provided, however, that Company requests regarding rate increases and
customer complaints regarding service and billing shall be subject to review
by the Iowa City Public Utilities Review Commission, pursuant to Chapter 33,
Article VI of the Municipal Code, Public Utilities Regulation. The Company
shall be required to participate in the review activities of said Commission,
but shall not be bound by the findings or recommendations of said Commission.
Section 9. The City shall be privileged, without charge, to make use of the
poTe, posts, towers and underground conduits of the Company for any City
alarm, control or communication function, whether by voice or data transmis-
sion, or any other medium of communication or transmission, to the extent
that such use shall not interfere with their use by the Company, but the City
shall hold the Company harmless from any and all causes of action, litigation
or damages arising through the placing of the facilities of the City upon the
Company's poles, posts or towers, or in the Company's underground conduits.
Section 10. Upon approval of the City Council and after reasonable attempts
Co acquire by purchase, the Company shall have the power to condemn private
property for the purpose of providing electric service to the public and in a
reasonable relationship to an overall plan of distributing electrical energy
within the City. The Company must establish the necessity of each taking of
private property and, when so established, the City Council may approve the
condemnation of the private property by resolution.
Section 11. The Company shall, at its cost and expense, locate and relocate
its installations in, on, over or under any public street or alley in the
city in such manner as the City may at any time reasonably require for the
purposes of facilitating the construction, reconstruction, maintenance or
repair of any public improvement of, in, or about any such street or alley,
or promoting the efficient operation of any such improvement. The Company
/ 7R3
Ordinance No.
Page 4
shall cause its electrical utility system components to be buried underground
in any underground service district hereafter established by the City
pursuant to the procedure set forth in Chapter 33, Article VI of the Munici-
pal Code, public Utilities Regulation.
Section 12. The Company, by the acceptance of this Ordinance, agrees to and
does grant unto the City the right, during the tenth year of the term of this
franchise, to purchase and take over, free and clear of all liens and
encumbrances, the entire electrical system of the said Company, which may be
owned, used and maintained by it in carrying out the terms and conditions of
this Ordinance, including all property which shall constitute the electrical
system of the said Company, whether located within or without the corporate
limits of the City, both at this time and at the time when such right of
purchase shall accrue to the City, together with all renewals, improvements,
betterments, repairs and additions thereto, and including all rights and
claims of every kind, character and description then owned by the Company and
used in connection with its electrical system and used or employed in
rendering the service required under the provisions of this Ordinance. Such
purchase shall be subject to any existing contracts for electricity entered
into previously in good faith. In the event said City shall elect to
purchase under the provisions of this franchise, it shall serve written
notice of its election so to do upon the Company at least six (6) months
before the exercise of such option. If at the time of the exercise by the
City of such right to purchase, the Company and the City are able to agree
upon the purchase price, then such property shall be transferred to the City
upon the payment of the agreed purchase price; but if the Company and the
City, at such time, are unable to agree upon such purchase price, then the
amount to be paid by the City for said property shall be determined in
accordance with the provisions of Sections 472.46 to 472.51, both inclusive,
Chapter 472 of the 1985 Code of Iowa, and all other amendments and substitu-
tions which may be in force in the State of Iowa at the time of said pur-
chase, provided, however, that in determining said purchase price, the said
appraisers or arbitrators appointed under and by virtue of said statues shall
place no value upon the franchise herein granted.
Section 13. The Company shall, at all times during which this franchise is
n e ec , maintain, administer and operate an energy conservation program
within the City, which program shall be designed and must operate to promote
the conservation and efficient use of electrical energy by all utility
customers within the City, especially its low-income residential customers.
Such program shall address the efficiency of the electrical appliances
utilized by utility customers, the efficiency of customer owned or occupied
structures in conserving electrical energy supplied for purposes of heating
or air conditioning, solar energy system applications, and the utilization of
load management devices and all other feasible energy saving devices.
Section 14.
(a) In the event that the City should at any time during the term of this
franchise become a generator or producer of electrical energy at a
municipally owned or operated facility, or at any other facility in
agreement with any co-producer, the Company shall, at the City's option,
either (1) purchase the surplus electrical energy so produced at the
then current buy-back rate as determined and established by the Iowa
17A3
Ordinance No.
Page 5
Commerce Commission or at a long-term full avoided cost buy-back rate of
not less than 6.51 per kwh, whichever is greater; or (2) transport or
"wheel" the electrical energy so produced for use by the City or its
co-producer at a "wheeling fee" of not to exceed .51 per kwh. This
provision shall continue to function and govern regardless whether or
not the Iowa Commerce Commission or Federal Power Commission rules on
this matter are hereafter amended, repealed, superseded, or determined
to be invalid.
(b) Nothing contained in the terms of this franchise shall be construed to
prevent the City from purchasing electrical power for its facilities
from sources other than the Company and to contract for same from these
sources.
Section 15.
Alternative A:
"Franchise Fee. There is hereby imposed upon the company, and by its
acceptance of this franchise company agrees to pay the City, a fee equal to
two percent (2%) of the gross revenue derived from the sale of electricity
made to consumers within the corporate limits of the City during the term of
this franchise as the fair value consideration for the company's use of the
City's streets, alleys. and public. ways for its poles, overhead wires,
underground conduits and other electric utility system components. The .City
may, by ordinance, adjust the fee imposed upon the company from time to time,
but in no event shall the fee exceed two percent (2%) of the gross revenue
derived from the sale of electricity made to consumers' within the corporate
limits of the City during the term of this franchise. The company shall
certify to the City, in a form acceptable to the City, records establishing
such gross revenues for each month and shall pay the franchise fee to the
City within thirty (30) days following the last day of the preceding month.
The City may by ordinance impose such additional regulations or requirements
upon the company regarding record keeping, .reporting, and payment as are
reasonably necessary to implement and administer the franchise fee."
Alternative 8:
"The City does hereby reserve the right to impose a franchise fee upon the
company in an amount not to exceed 2% of the gross revenue derived from the
sale of electricity made to consumers within the corporate limits of the
City. The City may hereafter impose such franchise fee upon the company at
any time during the term of this franchise by passage of an ordinance
incorporating said fee. By its acceptance of this franchise, the company
agrees and acquiesces to the imposition of a franchise fee as set forth
herein, and further agrees to pay such fee after same has been duly imposed.
The company further agreed that said fee shall constitute the fair value
consideration for use of the City's streets, alleys, and public ways for its
poles, overhead wires, underground conduits and other electric utility system
components. The City may, by ordinance, adjust the fee imposed upon the
company from time to time, but in no event shall the fee exceed two percent
(2%) of the gross revenue derived from the sale of electricity made to
consumers within the corporate limits of the City, during the term of this
franchise. After imposition of the franchise fee, the company shall certify
/7�3
Ordinance No.
Page 6
to the City, in a form acceptable to the City, records establishing such
gross revenues for each month and shall pay the franchise fee to the City
within thirty (30) days following the last day of the preceding month. The
City may by ordinance impose such additional regulations or requirements upon
the company regarding record keeping, reporting, and payment as are reasona-
bly necessary to implement and administer the franchise fee."
Alternative C:
" % of the amount of the franchise fee paid to the City during each
ca en ar year shall be devoted to property tax relief and shall be applied to
reduce property tax askings submitted for the next succeeding fiscal year."
The remainder of the franchise fee paid to the City during each fiscal year
shall be deposited in the City's General Fund.
Alternative 0:
'The company agrees that its recovery of the cost of the franchise fee herein
imposed shall be spread equally among all of its customers residing within
and outside of Iowa City, and that recovery of the cost of the franchise fee
shall not be made by application of a surcharge to customers within Iowa
City.
Section 16. This franchise shall apply to, inure to and bind the City and
ran ee and their successors and assigns; provided that any assignment by the
Grantee shall be subject to the approval of the City Council by resolution,
which approval shall not be unreasonably withheld.
The City Council of the City expressly reserves the right to terminate the
franchise granted herein at any time for a breach of any of the provisions of
this franchise. Provided, however, that there shall be no termination unless
the City first notifies the company, in writing, of the specific acts
complained of, and giving the company up to sixty (60) days in which to
correct and cure the breach or breaches. It is agreed and understood that
the subject matter of this franchise is unique and may be enforced by
specific performance, at the city's option, since a remedy at law may be
inadequate.
The company shall not be excused from complying with any of the terms and
conditions of this franchise by any failure of the City upon one or more
occasions to insist upon or to seek compliance with any such terms or
conditions.
Section 17. This Ordinance and the rights and privileges herein granted are
subject to the approval of a majority of the electors of the City voting at
the next general or municipal election or at a special election called for
that purpose. The cost and expense of the election relating to the franchise
provided for herein shall be paid by Grantee.
Section 18. Grantee, within thirty (30) days after the approval of this ,
Ordinance by a vote of the people, shall file in the office of the City Clerk
its acceptance in writing of all terms and provisions of this Ordinance.
/7OZ3
Ordinance No.
Page 1
Section 19. This Ordinance shall become effective upon passage by the City
Council; approval of the voters as provided in Section 15 hereof; acceptance
by Grantee as provided in Section 16 hereof; and publication as required by
law. Following voter approval and acceptance of this Ordinance by the
Company, this Ordinance shall be published in the Iowa City Press -Citizen.
The effective date of this Ordinance shall be the date of publico o�on.
Section 20. If any of the provisions of this franchise ordinance are for any
reason declared to be illegal or void, then the lawful provisions of this
franchise ordinance, which are severable from said unlawful provisions, shall
be and remain in full force and effect, the same as if the franchise ordi-
nance contained no illegal or void provisions. In the event any provision or
provisions are ruled illegal or void by a court of competent jurisdiction,
the City and the Company shall forthwith amend this franchise to insert a
successor provision that complies with the applicable court ruling.
Section 21. All ordinances or parts of ordinances in conflict herewith are
erg repealed. Ordinance No. 2170 passed and approved August 10, 1959, is
hereby repealed.
Passed and approved this
MAYOR
ATTEST:
CITY CLERK
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EXHIBIT F
Proposed Public Utilities Regulatory Ordinance
(Timmins, September 1985)
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DRAFT
9/2/85
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 33 OF THE IOWA CITY MUNICIPAL CODE, UTILITIES,
BY ADDING THERETO A NEW ARTICLE, ARTICLE VI, TO BE ENTITLED "PUBLIC UTILITIES
REGULATION," CONSISTING OF SECTIONS 33-171 THROUGH 33-191, AND RELATING TO
THE PROTECTION OF THE INTERESTS OF CONSUMERS OF PUBLIC UTILITY SERVICES, TO
THE REGULATION OF PUBLIC UTILITIES IN THE USE OF PUBLIC RIGHT-OF-WAY, AND TO
THE PLANNING OF PUBLIC UTILITIES SYSTEMS.
PREAMBLE:
WHEREAS, pursuant to Section 364.1 of the Iowa Code the City is authorized to
"exercise any power and perform any function it deems appropriate to protect
and preserve the rights, privileges and property of the city or of its
residents, and to preserve and improve the peace, safety, health, welfare,
comfort and convenience of its residents"; and
WHEREAS, pursuant to Section 364.2 of the Iowa Code the City is authorized to
regulate "the conditions required and the manner of use of the streets and
the public grounds of the city" by public utility franchisees; and
WHEREAS, the City Council has been advised, and has found and determined,
that the adoption of an ordinance regulating public utilities by providing a
system for local review of public utility company rate increase requests and
billing practices would serve to protect and preserve the rights, privileges
and property of Iowa City residents; and
/7o23
Ordinance No.
Page 2
WHEREAS, this City Council has further been .advised, and has found and
determined, that it would serve to preserve and improve the peace, safety,
health, welfare, comfort and convenience of Iowa City residents and to
protect and preserve city property by adoption of an ordinance regulating
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public utilities' use of public right-of-way and public property, and
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requiring planning and approval of utility system expansions and extensions.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
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IOWA:
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Section 1. That Chapter 33 of the Iowa City Municipal Code, "Utilities,"
be, and the same is hereby amended by adding thereto the i
following new article, Article VI, to be entitled "Public
Utilities Regulation," consisting of Sections 33-171 through
33-172, to read as follows: j
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Chapter 33, Article VI
Public Utilities Regulation
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Division 1. Title, Purpose and Definitions.
Section 37-171. Title. The ordinance codified in this chapter shall be
known as the "public utilities regulation ordinance."
Section 33-172. Purpose. The purpose of this chapter is (1) to regulate the
use of public right-of-way for the distribution of energy
and audio or visual communications by companies holding a it
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Ordinance No.
Page 3
franchise granted by the City of Iowa City, Iowa, or
otherwise permitted to use public right-of-way to deliver a
product or service to the residents of this city; (2) to
regulate utility system expansions and extensions to promote
comprehensive city planning; and (3) to protect and preserve
the rights, privileges and property of Iowa City residents
as consumers of public utility services.
Section 33-173. Definitions. For the purpose of this chapter the following
terms shall have the meanings herein ascribed to them except
where the context clearly requires otherwise:
(a) "Audio or visual communications" include radio and
television transmissions and telephonic comnunica-
tions.
(b) "Energy" means power supplied to customers either in
the form of gas or electricity.
(c) "Major repair work" means the repair or reconstruction
of a part of the utility system to the extent that part
of the system under repair involves one or more
complete city blocks.
Ordinance No.
Page 4
(d) "Public utility company" or "company" means any person,
company or corporation utilizing the public right-
of-way to deliver energy or audio or visual communica-
tions to the residents of the city and holding a city
franchise for that purpose.
(e) "Utility system" or "utility system components" means
and includes poles, overhead wires, underground
conduits, piping,' manholes and other installations and
appliances necessary for the generation, transmission
or distribution of energy or audio or visual comnunica-
tions.
(f) "Electrical distribution system" means all electrical
system components designed or used for the distribution
of electric energy within the City, other than trans-
mission lines.
(g) "Electrical transmission system" means those electrical
system components which directly serve or support elec-
trical lines carrying thirty-four point five (34.5)
kilovolts or more of electric current.
(h) "Underground service district" means a defined area or
tract of land within which all public utility companies
are required to place utility system components below
the surface or grade of the right-of-way or private
property upon which said components are located or
through which they traverse.
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Ordinance No.
Page 6
Division 2. Consumer Protection.
Section 33-174. Public Utilities Review Commission.
(a) Within 120 days of the final passage and publication of
the ordinance codified in this chapter, there shall be
appointed a commission to be known as the Iowa City
Public Utilities Review Commission.
(b) The composition and terms of members of the Iowa City
Public Utilities Review Commission shall be determined
by the City Council.
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(c) The duties of the Public Utilities Review. Commission
shall be as follows:
(1) Reviewing and auditing reports submitted to the
City as required.
(2) Conduct a bi-annual review of the gas, electric
and telephone franchises and make recommendations
to the City Council concerning operational
responsibilities of the public utility companies
providing those services in the performance of
their respective franchises or amendments
thereto.
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Ordinance No.
Page 6
Division 2. Consumer Protection.
Section 33-174. Public Utilities Review Commission.
(a) Within 120 days of the final passage and publication of
the ordinance codified in this chapter, there shall be
appointed a commission to be known as the Iowa City
Public Utilities Review Commission.
(b) The composition and terms of members of the Iowa City
Public Utilities Review Commission shall be determined
by the City Council.
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(c) The duties of the Public Utilities Review. Commission
shall be as follows:
(1) Reviewing and auditing reports submitted to the
City as required.
(2) Conduct a bi-annual review of the gas, electric
and telephone franchises and make recommendations
to the City Council concerning operational
responsibilities of the public utility companies
providing those services in the performance of
their respective franchises or amendments
thereto.
Ordinance No.
Page 7
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(3) Initiate inquiries or receive requests for inter-
vention by the City in rate increase requests
filed by gas, electric or telephone utility
companies before either the Federal Energy
Regulatory Commission, the Iowa State Commerce
Commission or other appropriate regulatory agency,
and provide recommendations on such to the City
Council.
(4) Receive complaints from customers concerning gas,
electric or telephone utility company service or
billings. The commission may conduct a public
hearing upon any complaint concerning service or
billings. The hearing shall be conducted pursuant
to the Iowa City Administrative Code and following
such hearing the commission shall issue its
findings and if further action on the complaint is
warranted, the commission may recommend to the
City Council that the City file a complaint,
acting for the complainant, with the Iowa Commerce
Commission.
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Section 33-175. Utility Specialist. The City Manager is hereby authorized
to appoint a utility specialist for the purpose of exercis-
ing the City's continuing regulatory jurisdiction over
franchises. Such responsibility shall include, but not be
limited to, the following matters:
Ordinance No.
Page 8
(a) Advise and assist the Utility Review Commission in its
duties as set forth herein.
(b) Monitor activities of public utility companies to
ensure compliance with the provisions of their fran-
chise ordinances and of this Chapter and make recommen-
dations to the Commission concerning same.
(c) Under the supervision of the Commission, investigate
such complaints, disputes or disagreements as may be
directed or referred to the Commission between custom-
ers and the Company.
(d) Report his or her recommendations upon complaints,
disputes or disagreements after investigation to the
Utility Commission for the issuance of finding.
(e) Review and audit reports, records and filings submitted
to the City and conduct such inspections of public
utility company systems as may be necessary in support
of such review as provided for in the appropriate
franchise ordinance and in this Chapter, and report on
same to the Commission.
(f) Coordinate City -managed energy conservation programs.
Ordinance No.
Page 9
(g) Other such duties as the City Manager or the Commission
may assign.
Section 33-176. Reporting Requirements, The following information shall be
furnished by the Company to the City Clerk and filed in that
office within the times hereinafter set forth:
(a) Annual Report to Stockholders (within 30 days of
issuance).
(b) Form 1, Annual Report, Electricity (FERC) (within 30
days of filing).
(c) Form 5, Monthly Statement of Operating Revenue and
income, Electric (FERC) (by the 25th of the following
month).
(d) Form 423, Monthly Report of Cost and Quality Fuels for
Electric Plan (FERC) (by the 25th of the following
month).
(e) Form 3, Typical Monthly Electric Bills (FERC) (within
30 days of filing).
(f) lOK-Annual Report (SEC) (within 30 days of filing).
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Ordinance No.
Page 10
(g) Prospectuses of all future stock issues (within 30 days
of filing).
(h) Copy of Company's current rate manual and all updates.
(i) Demand projections and plans for future distribution to
be provided annually.
(j) Simultaneous written notice to the City of any rate increase requests
filed by the Company before either the Federal Energy
Regulatory Commission or the Iowa State Commerce
Commission.
(k) Failure by the Company to timely furnish the required
reports shall subject it to a penalty in the amount of
$50.00 per day for each day that each report is not
filed within the specific time.
Section 33-177. Review of Company Conservation Program.
(a) Programs designed to promote the conservation of
energy, as required by the gas or electric franchise,
shall be submitted to the Utility Specialist, who shall
then review same and then shall submit them to the Iowa
City Public Utility Review Commission for approval.
Ordinance No.
Page 11
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(b) All of said programs shall be subject to review by the
Utility Specialist and the Iowa City Public Utility
Review Commission while they are being carried out and
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the Company shall provide all reasonable requests for
information to the Utility Specialist concerning the
programs and their implementation.
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(c) The Company shall not abandon or discontinue any con-
servation program without the consent of the Iowa City i
Public Utility Review Commission. j
Ordinance No.
Page 12
Division 3. Management of Public Utility Use of Public Right -of -Way; Public
Utility Systems Planning.
Section 33-178. Maps and Projections. The Company shall furnish to the
Public Works Department a current map showing the location
of all existing overhead and underground utility system
components in the city streets and alleys and on private
property and shall thereafter furnish the necessary data to
allow the City to maintain such map on a current basis.
This data shall be furnished monthly. In addition, the
Company shall furnish information and projections concerning
all planned or proposed utility system extensions or
expansions, major repair work projects and projects to
install new systems. Such information and projections shall
be provided in comprehensive form once every five years and
shall be updated annually.
j Section 33-179. Extension or Expansion of Utility'System, Major Repair Work
and Installation of New Systems. Before any public utility
j company, now or hereafter operating or maintaining utility
distribution systems, commences any extension or expansion
of its utility system, any major repair work or the instal-
lation of any new system, there shall be filed with the
Public Works Department a written report specifying the
streets, alleys, public places or private property, or parts
thereof, in which it proposes to extend, expand, install or
repair its utility system. The Director of Public Works may
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Ordinance No.
Page 13 '
require that the report be accompanied by a map, plan and
specifications to an acceptable scale showing the proposed
location of the utility system components with reference to
the streets and alleys and lot lines, the size and dimen-
sions of all utility system components and the distance
above or beneath the surface of the ground it is proposed to
repair or to lay the same. If the proposed locations of any
utility system components shall interfere with the reason-
able and proper use, construction, reconstruction and
maintenance of any public improvements or other existing
utility system component or other structure upon or under
the streets, alleys or public places of the city, the
Director of Public Works shall, within a reasonable time
after the filing of such plan, map and specifications, note
the necessary and proper changes to eliminate all interfer-
ence with public improvements or existing utility system and
refer the same back to the public utility company for
correction. Such map, pian and specifications, when
properly changed and corrected, shall be filed in the office
of the Public Works Department, and after the approval of
the same by the Director of Public Works, a permit shalt be
issued authorizing the company to excavate in the streets
and alleys and to erect and construct such utility system in
accordance with said corrected maps, plans and specifica-
tions. The permit issued hereunder shall include any permit
required pursuant to Chapter 31 of the Municipal Code. No
such excavation, construction or erection shall be commenced
Ordinance No.
Page 14
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before the issuance of the permit herein provided for and
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all work shall be in strict accordance with the said
corrected maps, plans and specifications.
Section 33-180. Construction and Repair. In the process of location, con-
struction, reconstruction, replacement or repair of any
utility system component, the excavation or obstruction made
or placed in any street, alley or public ground at any time
or for any purpose by any such public utility company shall
be properly barricaded to protect the public and to assure
the safe and efficient movement of traffic, and all pavement
taken up or displaced shall be properly and speedily
replaced under the general supervision of the City. As a
condition to use of public right-of-way, the public utility
company engaged in the making of such excavation or in the
construction or erection of the utility systems component or
in the repair or replacement of same, or having contracted
for the work to be done, shall pay all damages or injuries
to persons or property, as well as to the City, resulting
from the negligence or improper construction, erection or
repair of such utility system or the maintenance and use of
the same, and shall fully indemnify and save harmless the
City from and against all claims of every nature for damages
to person or property arising or resulting from negligent
construction or negligence in constructing or maintaining
such utility system components, or in the repair of the same
or resulting or arising from delay or failure to restore the
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Ordinance No.
Page 15
street, alley or public ground to its ,former condition,
where excavations have been made, or resulting from a
failure to properly barricade such excavations. If the
public utility company fails to repair or arrange for the
proper repair with the City of any street, alley or public
ground after excavations have been made, and after five
days' notice in writing to do so, given to its local
representative, then the City may make such repairs at the
expense of such public utility company:
Section 33-181. Excavations and Tree Trimming. In making any excavation in
a public street, avenue, alley or other public place, the
Company shall obtain a permit therefore pursuant to Chapter
31 of the Municipal Code, shall provide the Public Works
Department with 24 hours notice prior to the actual
commencement of the work, shall not unnecessarily obstruct
the use of such streets, avenues, alleys or public places,
and shall comply with all provisions of Chapter 31 in
performing such work. In emergencies which require immediate
excavation, the Company may proceed with the work without
first applying for or obtaining the permit, provided,
however, that the Company shall apply for and obtain the
excavation permit as soon as possible after commencing such
emergency work.
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Ordinance No.
Page 16
A public utility company authorized to cut and trim trees
under the terns of its franchise must conduct such work in a
careful and prudent manner. The authority of the company in
this regard shall not extend beyond trimming trees suffi-
ciently to clear and prevent interference with its above-
ground lines and facilities. No cutting or trimming shall be
performed in residential street areas without prior approval
of the City Forester and said cutting and trimming shall be
in accordance with standards to be established by the
Forester and only after a permit is obtained, pursuant to
Chapter 34 of the Municipal Code. In emergencies which
require immediate cutting or trimming of trees in residen-
tial areas, the company may proceed with the work without
first applying for or obtaining the permit, provided,
however, that the company shall apply for and obtain the
permit as soon as possible after commencing such emergency
work.
Section 33-182. Extension or Expansion of Electrical Utility Transmission
and Distribution Systems and Installation of New Electrical
Utility Distribution and Transmission Systems. Before any
public utility company, now or hereafter operating or
maintaining an electrical utility system within Iowa City
commences 'any extension or expansion of its electrical
utility transmission or distribution system or the installa-
tion of any new electrical utility transmission or distribu-
tion system, there shall be filed with the Public Works
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Ordinance No.
Page 17
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Department, in duplicate, a written report specifying the
streets, alleys and public places, or private property, or
parts thereof, in which it proposes to extend, expand,
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install or repair its utility system. The Director of
Public Works may require that the report be accompanied by
maps, plans and specifications, in duplicate, drawn to an
acceptable scale, showing the proposed location of the
electrical utility system components with reference to the
streets and alleys and lot iines,'the size and dimensions of
all utility system components and the distance above or
beneath the surface of the ground it is proposed to repair
or to lay the same. If the proposed locations of any
electrical utility system components shall interfere with j
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the reasonable and proper use, construction, reconstruction I c l
and maintenance of any public improvements or other existing !
utility system component or other structure upon or under
the streets, alleys or public places of the city, the
Director of Public Works shall, within a reasonable time
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after the filing of such plan, map and specifications, note
the necessary and proper changes to eliminate all interfer-
ence with public improvements or existing utility system and
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refer the same back to the public utility company for cor-
rection. Such map, plan and specifications, when properly }
changed and corrected, shall be filed in the office of the
Public Works Department, and a copy thereof, together with
the written report, shall be forwarded to the Planning and
Zoning Commission. i
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Ordinance No.
.Page 18
Section 33-183. Standards and Criteria for Review of Proposed Expansions or
Extensions of Electrical Utility Transmission or Distribu-
tion Systems, or for Installation of New Electrical Utility I
Transmission or Distribution Systems.
(a) Review by Director of Public Works. In reviewing the
written report and the maps, plans and specifications
submitted by the electrical utility company pursuant to
Section 33-182 above, the Director of Public Works
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shall determine the degree to which the electrical 1
utility company's proposal complies with the following f
standards and requirements and shall forward findings
and a recommendation thereon to the City Council.
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(1) Distribution lines and transmission lines shall be
built of strong and proper wires attached to
strong and efficient supports properly insulated
at all points of attachment; all wires, poles and
other devices which, by ordinary wear or other
causes, are no longer safe shall be removed and
replaced by new wires, poles or other devices, as j
the case may be, and all abandoned wires, poles or
other devices shall be at once removed. Where
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wires carrying current are carried across, either
above or below wires used for other service, the
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said electric distribution lines shall be con-
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Ordinance No.
Page 19
structed in such manner as to eliminate, so far as
practicable, damages to persons or property by
reason of said crossing. There shall also be
installed sufficient devices to automatically shut
off electric current through said electric
distribution lines whenever connection is made
whereby current is transmitted from the wires of
said electric distribution lines to the ground and
there shall also be provided a safe and modern
approved device for the protection of said line
from lightning.
(2) Electric transmission and distribution lines shall
at all times be located, erected, adjusted and
maintained so as not to endanger persons or
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property nor to cause a reduction in value of the
surrounding private property without compensation
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to the owner or owners, provided, however, that if
such lines cannot be practicably located anywhere
else then, in that event, the compensation
requirements shall not apply.
(3) All utility system components erected by an
electric utility company within the city shall be
so located as to cause minimum interference with
public improvements and other public utilities
located in the streets, alleys and other public
Ordinance No.
Page 20
ways and places and to cause minimum interference
with the rights or reasonable convenience of
property owners who adjoin any of the said
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streets, alleys or other public ways or places.
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(b) Review by Planning and Zoning Commission. In reviewing
the written report and the maps, pians and specifics-
tions submitted by the electrical utility company
pursuant to Section 33-182 above, the Planning and
Zoning Commission shall review the electrical utility
company's proposal in light of the following planning
criteria, and shall report its findings and recommenda-
tions to the City Council.
(1) The relationship of the proposed project to
present and future economic development of the
area. !
(2) The relationship of the proposed project to com-
prehensive electrical utility planning. �.
(3) The relationship of the proposed project to the
needs of the public presently served and future
projections based on population trends.
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Ordinance No.
Page 21
(4) The relationship of the proposed project to the
existing electric utility system and parallel
existing utility routes.
(5) The relationship of the proposed project to any
other power system planned for the future.
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(6) The possible use of alternative routes and methods i
of supply.
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(7) The relationship of the proposed project to the i
present and future land use and zoning ordi-
nances. I I
(8) The inconvenience or damage which may result to
property owners as a result of the proposed
project.
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(c) The City Engineer and the Planning and Zoning Commis
sion shall be required to make their respective reports
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and recommendations to the City Council within 60 days
of the company's final submission of its report, and
the accompanying maps, plans and specifications.
Section 33-184. Council Approval Required for the Expansion or Extension of
Electrical Utility Transmission or Distribution Systems and
for the Installation of New Electrical Utility Transmission
Ordinance No.
Page 22
or Distribution Systems. Within 60 days of its receipt of
the reports and recommendations of the Director of Public
Works and the Planning and Zoning Commission relative to the
electrical utility company's proposal to expand or extend
its electrical utility transmission or distribution system
or to install a new electrical utility transmission or dis-
tribution system, the City Council shall, by resolution,
either approve or disapprove said proposal based on the
standards and criteria stated in Section 33-183 above and on
the recommendations received. In the event that the City
Council disapproves said proposal, the resolution shall
reflect the reason or reasons for disapproval. If the City
Council fails to either approve or disapprove such proposal
within the said 60 -day period, the proposal shall be
considered to be approved.
Upon approval of the company's proposal as aforesaid, the
Director of Public Works shall issue a permit therefore and,
the company may proceed with the work. No person shall
perform any such work unless and until the required permit
has been issued. The permit issued hereunder shall include
any permit required pursuant to Chapter 31 of the Municipal
Code. No such excavation, construction or erection shall be
commenced before the issuance of the permit herein provided
for and all work shall be in strict accordance with the said
corrected maps, plans and specifications.
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