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HomeMy WebLinkAbout1985-11-19 Info PacketCity of Iowa City MEMORANDUM Date: November 15, 1985 To: City Council From: City I4anager�� ��_ Re: Department Head Recruitment - Salaries The purpose of this memorandum is to relate the difficulties which are being encountered in employing new department heads because of salary levels. Currently, the City is recruiting for both a Fire Chief and a Director of Parks and Recreation. After a national recruitment, three finalists were selected for the position of Fire' Chief. The current salaries for these three individuals range from $42,900 to $47,000. The maximum salary for the position of Fire Chief is $46,072. The current average salary for Iowa City department heads,is $40,780.28 excluding the City Attorney and the City Manager. Based upon the current salaries of the Fire Chief finalists, it is unlikely that a candidate could be employed for less than $45,000 or $46,000. Based on the Parks and Recrea- tion Director applications, it appears that the starting salary will range between $40,000 and $45,000. Starting salaries of this level for new department heads will upset the salary range for all department heads and undoubtedly will require increased compensation at the department head level. The other alternative is to reposition our recruitment efforts to less qualified applicants. At the informal session on November 18th, I wish to discuss this matter with the City Council. bdw4/2 //D a i �I city of Iowa city MEMORANDUM DATE November 12, 1985 To: Iowa City City Council FROM: City Clerk D- REi Beer/Liquor License 6 Sunday Sales/Conditional Approval FOR YOUR INFORMATION -- Conditional approval was given at the 8/1/85 Council meeting to KJ Enterprises, Co. dba The Gas Company Inn, 2300 Muscatine Avenue for a Class "C" Liquor License and Sunday Sales. They have submitted, after the 90 -day period, the required information which allows them to retain their license. City of Iowa City MEMORANDUM Date: November 15, 1985 To: Mayor and City Council From: Marian K. Karr, City Clerk Re: Organizational Meeting Over the past few years questions havearisen regarding the scheduling of the Council organizational meeting for election of a Mayor and Mayor Pro tem. Current beforen on City he secondesecular day of Jional anuary. Oftento e held on or this requirement has conflicted with Council travel plans. The City Code does not define the term "secular" which adds to the confusion. I suggest an ordinance change that would allow Council some flexibility in scheduling the organizational meeting with language stating "The newly elected council shall meet for the first time, not earlier than noon on the second day of January which is not a Sunday or legal holiday, and not later than noon of the sixth calendar day of January." It should be pointed out that both City and State law require offices to automatically begin and end at noon on the first day of January which is not a Sunday or legal holiday regardless when the Council actually meets for the first time. Customarily all newly elected Councilmembers are sworn in prior to the first day of January. The City Manager and City Attorney concur with the suggested change. If Council has no objections staff will prepare the amendment for inclusion on the agenda of December 3. Council will need to waive one reading to allow passage by the end of the year, bc2 117-//Z 1 ■ I ; Johnson County Council of Governments 410 E VtishmgtonSt bAa Gty, bvw 52240 Ir I- 0/ / Date: November 12, 1985 To: United Way Planning Division, United Way Allocations Division, Iowa City City Council, Johnson County Board of Supervisors, Coralville City Council, Board of Social Welfare, Committee on Community Needs, Mental Health/Mental Retardation Advisory Board From: Mary Anne Volm, United Way Oirector M A ✓ Marge Penney, Human Services Coordinator f^" Re: United Way/Iowa City/Johnson County Joint Human Services Funding Hearings You will find enclosed this year's schedule for the joint United Way/Iowa City/Johnson County funding hearings. Once again, the sessions will be held at the Department of Human Services, 911 North Governor Street in Iowa City. There will also be a training session on Thursday, November 21, at 6:30 p.m. at the Department of Human Services. It is hoped that this session will enable new panel members to become familiar with the budget package and continuing members to sharpen their skills. Budget books will be available at the training session and at the United Way office on Friday, the 22nd, as well as at the first hearing, Monday, November 25. We look forward to the continuation and deepening of the cooperation these joint hearings have developed. - bdw2/8 i c2//3 DATE TIME AGENCY Mon. 6:30 Orientation 11/25 7:00 Free Medical Clinic 7:30 Youth Homes 8:00 Emergency Housing 8:30 Legal Services Wed. 6:30 Visiting Nurses Assn. 12/4 7:00 Lutheran Social Svs. 7:30 Assn. Retarded Citizen 8:00 Mental Health 8:30 Hillcrest 9:00 Goodwill Wed. 6:30 Big Bro./Big Sisters 12/11 7:00 Domestic Violence 7:30 Elderly Services 8:00 Crisis Center - Food 8:30 Crisis Center Wed. 6:30 Independent Living 12/18 7:00 Handicare 7:30 MECCA 8:00 Mayor's Youth 8:30 RVAP Wed. 6:30 Willowcreek/Mark IV 1/8 7:00 HACAP 7:30 4 C's 8:00 United Action for Youth 8:30 Red Cross 9:00 . City/County wrap-up Wed. 6:30 Salvation Army 1/15 7:00 School Children's Aid 7:30 Boy Scouts 8:00 Campfire Wed. 6:30 Girl Scouts 1/22 7:00 ' Cental Svs. Children 7:30 Geriatric Dental 8:00 United Way wrap-up REQUESTS 324 + + + + + BOARD IOWA JOHNSON UNITED CORAL- SOCIAL PAGE CITY COUNTY WAY VILLE WELFARE 190 436 563 546 153 167 338 504 521 * * + 353 * * + 1 492 + + + + 418 * + 304 * 218 + 236 * + 23 * + * + 110 130 76 88 + + + + 324 + + + + + 289 371 396 436 546 261 167 504 450 469 492 37 53 218 101 207 all3 City of Iowa City F.-- MEMORANDUM Date% November 12, 1985 To: Charles Schmadeke, Director of Public Works From: James Brachtel, Traffic Engineer Re: Council Referral - 7th Avenue/Wales/Friendship Recently the Council inquired into the status of the survey and recommen- dation to Council of alternatives in the 7th Avenue, Wales and Friendship area. A questionnaire was sent to the residents along Wales on November 1, 1985. The questionnaire requested that the residents return their responses by November 15, 1985. After the 15th, the Traffic Engineering Division will analyze and summarize the results of that questionnaire and return to Council with a recommendation based upon the consensus of the neighborhood. Should you have additional questions or comments, please don't hesitate to contact me. bc4 I I I C00?En EVANS ]ro01]wCT.1G1xa couurt,LI ax acm:uuuNE IXIM IYINi OP(i. 1f10N5. NI ]!a({N IN'11.1F[ly'ry ILNCYWrvF W8 I1). ]GYl'l NM 6. M. I10GYUN0 a OC NGmaliOu .UK,, {ELIC, COYMT!! ON ILIMp ,ICNNOOGY aEEUeYINr N0M0 (Eaffress of the '41"Lrfted Otates i1ouse of Representoanes gGshiggeoll, D.C. 20515 November 6, 1985 V. 121 NO 151 O,pCC eu6pN0 wMxINOIOO.0 Q 21.1 00)12){4]01 162 MIT IOU.". SITU, WATIMCO, qWa 0004 1311 ]]4JI00 102 so01x C{ 1mN(n /]o0 10W4C .TO -022.0 0191].1.08) l) WIC) M4N0PFFT 4uNsx.µrowN, x9wa {919{ 181011NJ03 NE MIA. IOU ILII INYBq 4 1JGo-n]mo 9Fczl�F0//0 V X219 8S Mr. Neal Berlin City of Iowa City 410 East Washington St. Iowa City Iowa 52240 Dear Mr�u` n; Thank you for contacting my office to share your concern about the recent Supreme Court decision in Garcia vs San Antonio Metro olitan Transit Authority and legislation whicfi would a rad ess—t e s twat on create yo this 3ecision as it relates to the application of the Fair Labor Standards Act (FLSA) to state and local government employees. The Garcia decision raises two key considerations which must be given prior•— ti y as the Congress develops legislation on this matter. The first priority must be to provide a means to pay fair compensation for overtime hours worked by public employees. The second is the need to recognize the very real fiscal burdens currently being carried by our state and local governments and to prevent additional FLSA requirements from overwhelming the budget process in these Jurisdictions. With these considerations in mind, I have cosponsored H.R. 3530, a bill developed by the Labor Standards Subcommittee of the Committee on Education and Labor. The bill represents the subcommittee's effort to seek a consensus on this issue and I expect that it will receive prompt consideration in order that the legislation, which is similar to a bill moving through the Senate, can be enacted prior to the enforcement deadline set by the Department of Labor. I am enclosing a copy of the summary of the provisions of N.R. 3530. Please feel free to contact me if you have any questions or additional thoughts on this matter. Thanks again for sharing your concern. Sincerely, Cooper Evans Member of Congress CE/mn Enclosure P.S. The bill passed the House last week. Fair Labor Standards Amendments of 1985 H.R. 3530 Introduced by Reps. Murphy, Hawkins, Jeffords, Petri, Bartlett, Williams and Clay I. Compeasatory Time -- As of April 15, 1986, a public employer may pa overtime in compensatory time at a rate of one -and -a -half the regular rate so Tong as the employee has not accrued compensa- tory time hours in excess of the appropriate cap on accumulated compensatory time. For employees whose jobs include seasonal, public safety or emergency work," banked compensatory time hours will be capped at 480 hours. For other employees, the cap would be set at 180 hours. Existing collective bargaining and similar acreements offering compensatory time will continue to be honored, except that compensatory time will be paid at time and one-half. An employer's past practice of providing compensatory time may continue provided it is at the premium rate. II. Liabty -- Public employers will not be liable for overtime and related paperwork violations of the Fair Labor Standards Act. until April 15, 1986, for those 'traditional• public employees affected by the Garcia decision. The bill Of neutral with respect to current litigation on the question of whether an employee should be considered traditional or non-traditional. Public employers may defer overtime payment, whether in cash or compensatory time, until August 1, 1986. III. Special Detail Occasional, amutuai aim ana_SuDszizuLe EmDlovment -- Special detail, occasional, and mutual aid employment for a second employer or in a second capacity will not be considered as hours worked for the purposes of calculating overtime pay. Public safety employees, with the consent of their employer, may substitute for one another without that substitu- tion counting as hours worked. IV. Volunteers -- A person who volunteers to work for a public employer shall not be considered an employee of that e--ployer for the purposes of the Act provided he or she is employed by a different employer, or ir. a different job for the same employer. A volunteer may be provided reasonable benefits, expenses, a nominal fee or any combination thereof. V. State and Local Legislative Staff -- State and local lec_islative staff, with the exception of library employees, will be exempt. VI. Discrimination -- An employee who has been discriminated against by an employer because of asserted coverage under the overtime provisions of the Fair Labor Standards Act since the Garcia decision may seek relief under section 16 of the Act. anis "The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists" —{oan Robinson. as quoted by John Nenn"h U1,1.1m in Economics and me Public Purpose (Houghton. 1973) FROMADAM SMITH To RONALPublic ubraries Du run�coonAN. By Miriam Braverman A SPECTER is haunting this country—the specter of Adam Smith. It is a very unhappy specter. because. as has happened with so many idols, his ideas have been twisted and maimed by his idolators to fit their own interests and agendas. Today a queue of market - mechanism worshipers invoke their individual man- tras—rugged individualism. free enterprise. free mar- ket economy—hoping to achieve the state of grace of Adam Smith's world as described in the Wealth of Nations. The Reagan Administration's economic pro - grains and sympathies have made this world extremely attractive. A rash of writings emphasize the construc- tive role of unfettered and unregulated business. put- ting tax -supported institutions on the defensive. We now see strong evidence in the library field. too. of lemming -like movements to adopt business jargon and methods of evaluation. Before we librarians get too carried away by the aura of the business ethic, we should first define the public and private sectors, examining the ideas of two economists whose recent writings are concerned with library economics. and trace the concept of "public good" in library develop- ment. In Adam Smi:ii s :-011:1 ^:c7h person is essentially a creatur: cf self-interest. acd ns cash person follows his sr L•cr ecc;:r.;::ie :c!Gi:.;crca. 1!:.:r_ it generated a rrcass IC a:ar!tdr.:r..unl. Thi: ?r::ss, im.:compered regu- lated orilt' be .nmpetith¢ „f :hC III::1'i:Ci f,!d: C, k the \tinum Itruarnwn . Adam Smith ,profit could never repay the expense" "invisible hand" which will succeed in bringing ever greater productivity and progress to a nation. It is impossible in this short paper to discuss at greater length a brilliant and complex work.' We are con- cerned not so much with Adam Smith's ideas on the individual. government. and economic progress, as on how his ideas relate the market system and the public good. f Library service. Columbia University. New York LIaRARYJOURNAUrEa RUARY 15. 1982 397 r The Boom Public Lihrvl: "... a reasmabk provision to aid and encourage the acquisition of the imovokdge required to complete a preparation for active life or to perform Its duties ..: ' Libraries w a "public good" Smith recognized the need for the support of public works and public institutions by the state which are "beneficial to the whole society" and "which though they may be in the highest degree advantageous to a great society, are however of such a nature. that the profit could never repay the expence to an individual or small num. ber of individuals. and which it them. fore cannot be expected that any indi- vidual or small number of individuals should, erect or maintain."=The areas he identifies a meeting these criteria are national defense, the administration of justice. the education of the young (although not pat a rudimentary level. since "the endowments of schools and colleges have necessarily diminished more or less the necessity of applica- tion in teachers'), and the "expence of supporting the dignity of the sover. eign."s There art many functions which are considered a tax -supported public goods in today's society. functions which meet Smith's criteria. Public education and national defense are classic examples. Others range from government support for research and development in a variety of fields to provision for injections against various contagious diseases for children in schools. The basic question with regard to the public libraries and the economy is whether library services constitute a public good or a commodity. If library services are "beneficial to the whole society." and itis agreed they are not an enterprise from which entrepreneurs can profit, then they represent public good, and qualify for tax support out- side the considerations of the market- place. If. on the contrary, library serv- ices can be bought and sold at a protit. and the judgment is mode that they are not necessary to the whole society. :98 LIBRARY ;OURNAL FEBRUARY; B,:9B: then they are a commodity, subject to the values of the marketplace and be. long in the private sector. More than a century ago our society made the deter- mination that libraries are a public good. and the most highly developed public library systems in the world were founded on this principle. Public libraries. of course. do not exist in isolation from the private sec- tor. They arc connected to the private sector essentially by the materials. fur- niture. and other products they pur- chase. Libraries are distinguished from the private sector in that their services are not bought and sold as commodities in the marketplace. In Public Libraries: an Economic View, Malcolm Getz, an economics professor at Vanderbilt University, begs the question whether libraries be. long in the public or private sector. The opening chapter of the book is titled "An Introduction to Public Library In. dustry: ' One can only assume in read- ing it that he is not discussing the industriousness of public librarians. He is concerned with their efficiency in terms of "how many facilities to oper. ate, how many materials to put in each. and how many hours to operate." His measure of efficiency is use. "The number of locations, hours of service. and number of new materials acquired each year should reflect a balance be. tween additional use of the library from additional activities and the cost of additional activities."' "The examination of the New York Public Library using these crit. ria)." says Getz. "... suggests that at the present time the library operates too manv branches. each of which op- erates too few hours with too few new materials." Getz recognizes the library as a purveyor of public good (knowl. edge and cultures, and states that "lo. cal tax support of public library serv- iccs is appropriate isincm the benefits accrue locally." t Equity vs. efficiency It is when he makes efficiency the central concern in library operations that he begs the question. One person's efficiency (designing services for the. library's middle-class and politically strong clientele) may be another per- son's deprivation (the constriction or denial of services to children and youth. and the poor whose political clout is limited but whose library needs remain). Getz does recognize this con. flict between equity and efficiency. The two most relevant components of equi- ty in libraries, he says. are "equality of opportunity, providing persons from lower-income backgrounds a way to improve themselves" and the provision of access to needed information. In each cue. however. the test of cost efficiency is invoked. Geri s criterion of efficiency necessarily leads to a vio- lation of equity. and relying on use alone, while ignoring a multitude of variables in library services. gives him his desired result—fewer libraries, re- taining only those aimed at the "us- ers." those who the Public Library Inquiry in 1950 called the library's "natural public." the middle class. While we would agree that internal management questions with respect to library operations are important in de. termining the effectiveness of services. they do not determine library objec. tives or the mission of the library. By touting efficiency in the deliv- ery of library services as the central consideration in library work. Getz has stood the question on its head. To approach the question logically. the fist task is to determine whether libmr- ies we to be considered a public good. If they are, then the central question is how to provide this public good for the whole society. If we make Geti s mea- sures of efficiency the central concern of libraries. we are applying business methods and measures in service deliv- ,2,//G cry—and slyly negating the concept of the public good in relation to libraries. This distortion is especially mani. fest in the work of Lawrence White. professor of economics at New York University, and author of "The Public Library: Free or Fee? An Economist's Perspective:' White sees library serv- ices as public services only if there is "some showing of the private market's failure to provide the service in socially desirable quantities and at socially de- simble prices.-' What both White and Getz fail to see is that success or failure of an enterprise in the private sector is not measured in "socially desirable" terms, but by the balance sheet—the measure is whether the enterprise re- turns a profit to its investors. By con- fusing market criteria with "socially desirable" functions. White takes the first step in moving libraries out of the public sector. In an earlier article in the New Leader. White completes this process. He argues that "in our society the value of a service does not alonejustify making it available at the expense of the taxpayer. The market mechanism is still the routine way of meeting con- sumer demmids:'r Who arc the library consumers? He cites studies to show they ate essentially middle class adults, with students and children (more par. titularly middle thus children) making up the next highest group of users. This. says White. is unfair to poor people, who pay taxes but don't use the library. Since libraries also fail. accord- ing to White. to "further education. encourage literacy (or) spread socially useful knowledge" among the general population. he suggests that we charge a fee, seven or eight cents a day. to all but students and children (the latter two groups to be supported by local taxes "keyed to usage").' Some poor people may not be able to use the library. but considering "1980 incomes and prices." 49 cents a week "is not a large amount." he claims. and if people are not willing to pay this. then they ..must clearly be users who place a relatively low value on reading library books." Meanwhile. poor people will not have to pay taxes toward the -0.25 percent of all government spending and slightly over 0.5 percent of state and local government spending' which go to library support.- (Note that White has retracted the free services for the poor that he advocated in his earlier New Leader article. The market mech- anism has already started its work on this theory.) White, like Getz. also stands the question of library support on its head. The definition of a public good is not that it becomes such because of market failure. If that were so. how come Chrysler and Lockheed, with huge in- fusions of public monies, can still be privately owned? 'r How, then, do we determine whether libraries are "beneficial to the whole society"? Getz and White an - sure their value by business standards. Libraries then become an industry, the value of the services they tender deter- mined by consumer demand, as arc commodities in the marketplace. The history of public libraries demonstrates different criteria. The historic definitions The founding and early develop- ment of public libraries in the last half of the 19th Century were guided by private philanthropy and fueled by lo- cal tax money. There was great variety in the way the "public good" was defined by the men of great wealth. as well as by the middle class and profes- sional people who were active in the formation of public libraries in many communities in that time. Library his. torians have written about that variety in the philosophical and ideological roots of the founders of libraries. To avoid a potpourri. it is necessary to trace the concept of libraries as a public good historically, in its economic, so- cial. and political contexts. This cannot be done adequately in a brief article. What we can do is select certain his- torical highpoints that serve to estab. lish the character of the concept. An 1852 report of the trustees of the Boston Public Library asks: "Why should not this prosperous and liberal city extend some reasonable amount of aid to the foundation and support of a noble public library, to which the young people of both sexes. when they leave the schools. can resort for those works which pertain to general culture. or which are needful for research into any branch of useful knowledge? At present if (this -young person) wishes to consult a valuable and especially a rare and costly work. he must buy it. often import it at an expense he can ill afford. or he must be indebted for its use to the liberality of private corporations or in- dividuals. The trustees submit. that a8' the reasons which exist for furnishing the means of elementary education at the public expense. apply in an equal degree to a reasonable provision to aid and encourage the acquisition of the knowledge required to complete a preparation for active life or to perform its duties: ''0 The most generous of library bete. factors. Andrew Carnegie. felt "that the surplus of his and other great for- tunes ... should be dispersed by their owners for the public good and during their lifetime."" This is not to say that the library philanthropists did not filter their ideas of public good through their own value systems. They were for the most part men of great wealth. accumu- lated and maintained in an em of Social Darwinism. Andrew Carnegie told an audience gathered for the dedication of the library building in Homestead, Pennsylvania six years after a number of strikers and spectators had been killed at his Homestead Steel Works by Pinkerton agents called in to break the strike. that he and his wife felt " pecu. liar" on this occasion. He went on to "commend the library as an instrument for the elevation of the working man. promoting harmony between 'kindly and friendly capital and self-respecting labor.' '1' Cultural historian Vernon Parting. ton commented on the apparent contra- diction between theebusiness and phil- anthropic lives of the Boston Brah- mins. among them Everett and Ticknor. most prominent in the found- ing of the Boston Public Library. The Brahmins "divided between State Street and the Back Bay. ran (their) lives ion) a smoothly agreeable course with no hint of potential antagonisms between exploitation and culture. (They) followed so strictly the injunc- tion. let not thy left hand know what thy right hand doeth. that the two were almost total strangers to each other."" In the last decades of the 19th Century. a giant flood of immigrants arrived in this country. They provided much of the labor power in the mines. mills. and factories owned by the ruling Anglo-Saxon elite, who nevertheless viewed with consternation their bad grace in being poor. speaking in foreign tongues. wearing strange clothing and following strange religious practices, And" Carnegie Above a typinl Camegie L@nn LIBRARY JOURNALiEBRUFRY 15. 1982 399 CO -7 // 1 Patrons quem up a a Vete Yark Public Ubnre Branch in the Depression such m Roman Catholicism and the Jewish religion. Socializing their chil. dren into "American" ways was made difficult by the lack of firmly based national institutions because. after all. the United States was only a little over 100 years old and only the American Indians had had the centuries of expert. ence in North America required to de. velop socializing traditions and institu. tions. So the established elites latched on to the public school system as the most effective instrument for homogen. izing the population in its own image., - Public libraries replaced the early so- cial and subscription libraries for the same purpose. As the Boston public Library trustees had said. the recons that applied to the establishment of public education at public expense ap. plied as well to public libraries. In the first decades of the new century. revulsion grew against the conditions of work and life created by unfettered capitalism. The revelations of the muckrakers on the "robber bar. ons" were published, and the Progres. sive movement flourished. It was in these ,Years that the great leaders in social work developed the settlement house movement and librarians were greatly influenced by their work. Dur. ing these years. librarians played a greater role in setting policy than had their predecessors. and when the chil. dren of immigrants. encouraged often by their parents whit upwardly mobile ambitions. poured into the children's rooms of the public libraries, librarians welcomed them. visited their homes. respected their cultural traditions.'' These librarians were more effective in implementing the socialization of the young than their patronizing and mean. spirited predecessors. In the 1920's, with the growth of the adult education movement. some of these new atti. tudes—respect for the patrons and their quest for education and a better life—were translated by librarians into developing the library as "the people's university," Cao LIBRARY JaURNALFEBRUARY 15, 1982 Libraries in depression . The cataclysmic depression of the 1930's, with its millions of unem. ployed, shook society to its founda. tions. The laissez-faire doctrine. which had been applied historically more par. ticularly to the poor than to the rich. was abandoned. The government turned to the economic theories of John Maynard Keynes to help prevent total collapse. Keynes maintained "There is no 'compact' conferring perpetual rights on those who Have or on those who Acquire. The world is nor so gov- erned from above that private and so- cial interest always coincide. It is not a correct deduction from the Principles of Economics that enlightened self -in. terest generally is enlightened: more often individuals acting separately to Promote their own ends arc too igno- rani or too weak to attain even these. Experience does not show that individ- uals, when they make up a social unit. arc always less clear-sighted than when they act separately." Keynes went on to say: "We must aim at separating those services which are technically social from those which arc technically individual. The most important Agenda of the State relates not to those activi- ties which private individuals are al. ready fulfilling, but to those functions which fall outside the sphere of the individual, to those decisions which arc made by no one if the State does not make them."', Adam Smith's idea that govern- ment took responsibility for functions individuals could not carry out profit- ably remained in place. but the theory whereby what was good for the individ. ual acting in his own'self.intemst was necessarily good for society had proved bankrupt. It was then necessary for government to intervene where the economic system failed—to Keynes. by using deficit spending. carefully controlled. to provide for the vast army of poor. and thus stoking the system back into operation. Almost no one went untouched by .rte Marporer Seoegia .. not behind the desk but on the street turner" the depression, and a socially sensitive response became a hallmark of many librarians, Margaret Scoggin, young adult librarian in the George Bruce Branch of the New York Public U. brary, reflected the social concern of the depression years, when she wrote in 1931, that librarians "must take cog. nizance of the problem of boys and girls out of school and out of work. with no place to go." This may be called "social work." she said. "but I am more and more convinced that the librarian's place is not behind the desk but on the street corner—or at least she should divide her time between the two."" It was the Keynes tradition that the Great Society followed, and the libraries. funded by federal dollars in the 1960's and 1970's. extended library services to previously neglected popu- lations. particularly minorities and the poor. Youthful, idealistic. and enthusi. astic librarians exercised their croativ- iry. and exciting and useful programs reached into communities. The lack of full administrative commitment to these programs, reflected in their al- most total dependence on federal mon. ey. was only one of the problems con- tributing to their decline in recent yeatis." A major study, commissioned by the Department of Education. of how Title I LSCA funds were used found more money was channeled by state agencies into administration and networking than into programs for mi- norities and the poor—a violation of the act's purposes and of federal guide. lines." Despite these obstacles. the Programs of the 1960's and 1970's es. tablished a powerful precedent for the library m a public good. with services and materials available to all communi- ties. The current erosion The information infra -structure has experienced a qualitative shift in recent ,Yeats, With "information . more central to societal functioning.** and libraries an expanding market for the private information sectorro the philosophical foundation of library services as a public good is beginning to erode. The private sector is well aware of this. IBM Vice -President Lewis Bmnscomb. commenting on the shift in the economy "from an econo- mv grounded in the production of capi- tal goods and manufactured products to an economy based on information." foresaw "a deep transformation in which information is purveyed as an economic good. miner than as a social overhead."21 There is a danger that in our hon. est, if defensive. desire to be part of these current fashions in economic and political theory, librarians are adopting the criteria of Getz and White. and are thus adding to the erosion that is cur- rently washing away at the roots that have defined public library service as a public good in America. When, for example, you decide that a fee is a good way to cover the costs of a service, you immediately suggest that that service no longer is good for the whole society. or worthy of societal support. When you decide to "ration" the use of cur- rently limited resources and services by instituting a fee or a "price" for their use. you accept. like White. that those who won't pay. "must clearly be Lrsefr Btwcvmb '4Nomution u an economic good. rather tbm as a social overhead" References 1. For a clear and concise discussion of "The Wonderful World of Adam Smith." see Robert L. Heilbroner's The Worldly Philosophers: the Lives. Times. and ideas of the Great Economic Think. ers. Torchbooks: S. 8: S.. 1960. 2. Smith. Adam. An Inquiry into the Na. ture and Causes of the Wealth of No- boru. Edinburgh: Oliphant. Waugh. and Innes. 1614, p. 98. 3. Ibid.. p. 159. 246. 249. 4. Getz. Malcolm. Public Libraries: an Economic View. Johns Hopkins. 1980. p. xi. 142. 5. Ibid.. p. 142. 24. 170. 6. White. Lawrence. "The Public Library. Free or Fee? An Economises Perspec- tive." Financial Choices for Public Li- braries. Public Library Assn.. 1980. p. 17. 7. _. "Sensible Economist's Guide to the Economics of lnforrustion." Nn, Leader. December 17. 1979, p. 3. 8. ,_. "Public Library. Free or Fce?:' p. 30. 9. Ibid.. p. 31. 19. 3. 10. Shera. Jesse. Foundations of the Public Library: the Origins of the Public Li- bra".%fnrementin New EnRland1619- 1855. Univ. of Chicago Pr.. 1949. p• 214. 11. Dain. Phyllis. The New York Public Library: a Hlston• of Its Founding and Early Years. New York Public Library. 1971. p. 209. 12. Ditzion. Sidney. Arsenals of a Demo - crane Cultures a Social History of the users who place a relatively low value on reading books." You close the li- brary to the growing ranks of those who simply can't pay, whatever the price. When you justify shorter hours or a branch closing on the basis of internal "cost-effectiveness:' without first being certain to consult with the public on those hours that branch serves. you begin the process of con- verting that library from a public good into a private venture for those who have the time or money to get to the location of the service when that ser- vice is available. When ,you stop reach- ing out. stop putting library service "on the street comer" as Margaret Scoggin urged. because ,you no longer get feder- al money for the purpose. ,you clearly undermine the case for tax support for those services that reach out to the whole society: you begin to select your users much as a private venture selects the "market" it will serve. We must guard against the easy options that suggest that for efficiency we serve only a "segment' of our "market." Such choices ultimately provide the proofs for which White. Geu, and other Reagan economists constantly search, proofs that there is no measure of the value of a service beyond its ability to make money.= Public libraries are still the "people's university." The mission has grown as the society has changed, and its cost is American Public Library Movement in Nee• England and the .Middle Smites from 1850 to 1900. Amcncan Library Assn.. 1957, p• 157. 13. Partington. Vernon. Main Currents in American Thoupht: an Interpretation of American Literature from the Begin. nings to 1910. HBJ. 1930. R. 164. 14. See Robert H. Bremner. ed. Children and Youth in America: a Documentary- History. ocumentaryHistory. Harvard Univ. Pr.. 1970. 1974. Vol. 2. 1866-1932. Pan 8. Robert A. Cartier. The Quest for Confarmin•: Americanization through Education. Wiley. 1975. For an interpretation of similar motivations of library founders. see Michael H. Harris, The Purpose of the American Public Library in Histori. cal Perspective: a Revisionist InierPre- tation, ERIC Ed 071 668. 1972. 15. See Dain. op. cit. Rosemary Rubig Du. mont. Reform and Reaction: The BIR Cin• Public Library in American Life. Greenwood. 1977. Dee Garrison. Apos- tles of Culture: The Public Librarian and American Society 1876-1910. Mac- millan. 1979. 16. Keynes. John Maynard. The End of Laissez -Faire. Dubuque. Iowa: William C. Brown Reprint Library. (First pub - fished in 1927 by Leonard and Virginia Woolf at the Hogarth Pr.. London.) 17. Bmverman. Miriam. Youth Society and the Public Library. 1979. P. 39. 18. An excellent analysis of community work was done by Leigh Esiabroak. Major Ower r "soeW, political. and cultural charges far more sillNcart than techmbpd•• still pan of the "social overhead." We must not let our drive to be more effective or efficient transform that "overhead" into revenue and profit by adopting a "marketing" posture. Libraries are one part of the mosa- ic that makes up the quality of our social. educational, and cultural life. and as Major Owens wrote. in the next 25 years "social. political. and cultural changes will be far more significant than technological changes."n Let us hope that the ethos of the marketplace will not dominate in these spheres. will not undermine libraries and other insti- tutions, and that society will not be thrown back to the pitiless age of Social Darwinism. "Trends in Community Library Serv- ices:" Library Trends. Fall 1979. P. 151-64. 19. Summary Report and Evaluation ofTt- tle 1. LSCA. Applied Management Sci. ences. January 1981. 20. Esubrook. Leigh. "Productivity. Profit and Libraries:' U. July 1981. P. 1377- 80. 21. Nees, York Times. August 20. 1981. _. E. P. Thompson described the market approach As the Grsdgrind theory ofthe Victonan rich: "The laws of supply and demand were 'God's laws'. and in all major afans of society all other values must bend before commodity values .. Even excessive chanty might en- danger the working of these 'natural' laws. by subsidizing and encouraging poveny. and (Dickens maintained)'the Westminster Review considered Scrooge's presentation of the turkey to Bob Cmunit as grossly incompatible with political economy'... The market W115 the final determinant of value. and if there was insufficient demand to make fine mchitectum and beautifully planned towns Pay, land here we might add library services) this was sufficient evidence that such commodities as these were insignificant in the realm of Fact." Thompson. E. P.. William Mor ns Romantic to Revolutionary. Lon. don: Merlin Press. 1977. R. 9. 23. Owens. Major R.. "The Suite Govern. ment and Libraries." LJ. January I. 1976. p. 211. LIBRARY JOURNAL FEBRUARY 15. 1902 401 asl { n A 4 f Differences in plans place a strain on publi c workers 8y7'OM1fR'06[Y er w wr twit to o. aYlr aaarrTrrr rr.r iewrdarc PerleL atmos 1350 m0- llar a year to protide rcthemem poo- does for stab and local government employee, but eves that Isn't enough W guarantee the GluorJal security of pension ershms seder heavy strdr from a growing climber of retiring warta:s whow baee8n coothtoa b Itr' Am it d the caodlGae of Iowa's five mayor government pansloo: system also shows that emUoiL leeq-, . IeWw Y the tteatm�t of ph8e aasarca b i wet: . pbyas will laamlthem . dtamatle CYaop L the Lw gtre{¢.' - loi the reUemeot ayrtemc - . - . .. Cambirad with atxior by sats tn=• .. makaer to pts growing boder as, Iowam today and In forme geoaea= Uoes to support those penslon- syztems, both taxpayers seri those" ceouUnL on monthly retirement ehedn during the can 30 yeah have clause bwary. ' A review of ante and tool Bovero- meet documents; and interviews with public officials and actuaries show that: ' • State and Ioc11 taxpayer paid an estimated 1318 million — 60 percent of It In property tun — during . budget year 1983.81 foto eight state ' pension systems and Social Security. That money will provide retirement checks, now and In the future, for 113,000 public employee and about 50.000 retired workers. By compari• son, the state spent $192 mBBao In the same year to provide welfare and medical annuntt to 327,00 - 0 poo[ ]oaam. • 8eeeflt payments, which are Eased on years o1 service and are1W urome• are expected to strain even the state's largest pension system, the Iowa Public Employees Retirement System IIPERSI. to foul arcual belt ellt payments are expected to In- n.•.r ...r.fw aavYa Ir m•r is ,.+n TM arreq •Yr anrMr Y I.mJm• rwa lalYr •Ila 1•Yw r m.• •lrt an I•q lar Y. W Pr ,•,1 qla deM rrq Y W )aa[ rem, 4 Y araI r tit• • laAla .•e•I•nJt m ao au lauu. tw ,•al 1. law IN eaW rn.w•er sae.nra . • Taaa•ew e•atlfrlr R! •I+rer rr r. asw.rt r1lra roomy. r rsrrr of W tltlr e.are r aetrr rYaar Ir re+eel•arwlrwrrypW YY IW Y4. Hit nW "PoYIk emplyr prmbm N 4 evn„nt • rllwlJ.IrabYl• heir na r root Ir. Wal on lam.. 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AIV wary "yaw awrk�0aaw I7 dnNr Y tll{0b Iw W maum•r Mlmmnl rm114 •bks Y proraN my le ar emrl•r•r .an .n .n a and ren a lama' ITk•. alae la• ... IIrIY ua maalmar bamlll r 11•br a rrrr 1{tt • mrl•, bol rel w1li lerrar4 IILOIa • rrr. 4 Il.r . m•ma b► oeJe1 su 1. ax OmbT W bens W WIlY emtr4 racy ply WRrllrin leW aux IlrnnrrtlnrW rlml Jam J. wY Y. Her aemlu wit I Al W mules eacYM rYtOrr• ynou W Orw.rw+rr W ts. lyrrrir Yswno.HYY W Yglelti dweldb•fW Yreel lsc u gh., oosesageeey �1 IW ecadw W' IWrlplwW /rrw•rY•p fl Mew colli tlealYT prrOl erl••r srl O siwr low .aM bin Its Using orrW the W me for a Wool become 41a1Y e IN for Yw u ties W .aldbW.r bet Us Cho gyri Wl W mew my mel• mmy a film have he mw1 rwwt been vel► men Yr "&VK'flewys" Not Budaasa f ghi//Yiw.IPlJs5 d0rLYore41. Notwh in ld laHw WM• ally WamMdevenertr �Wr.• Yle`'�ee1 slew r 1w.0. eeprllw r Ori confesses, W 11•de If rrwlcows'We b•w bene Ineuwfrlw•Slwpeorea rtere eq esemfd In W rrrlswW d ,u. he ecYdeedM Il" Y Will W OwIOlalmlri W O�Ariyoren eve r bed 4Y♦ OIL none will a � 'lorlprdgheaw Wl.ecsriegh WM ruaw ts rights tatrlh. bn,'iWl.lruld '. I Ya11• IIIeIW WWb 0.1. Ow • dY41d Urenrr slY.. . . Wno fed yri Waink,wn 1WA e1il.Dd Wars do W aWA . rtlewellaormpl•owhoodmrihehw 7wntsbWdeenyr utbcowl a e ted0agrhirger " A Ween OI.W Benner n.1ne...malp.reeeb.c.wd• alpr iAbPdla owed e1M�1.lYnebeeWIWW rwytas gh.mYrlghe.WW 4{ I only t-M7r ee•IeytWdee pw.la./Y®•etYn {��W�WW� Vw�ibew Weird that low to was. Idl deeps, rwlrW by Ylr d•IIYYlfsawrreorlYlleewYl. Ie� coir WOyYtwinem Awwy bY1�r11e neva b•ne•fr'f YswWYnei YOWL Ihwl (nartM&y.rnY8tpKtW40 INUMMUCowthmsunum r'lbplwa be M.rlW 0,pinslneOregon, W �iwgh4neddwerw,eWlllww•Ie11Y hnow" 0they "tous rI ane werhril G.PledWgh1,apay agal frwnfr aaritsdur d1a ilIWr. IWIe cots ICV hodson IWM no ftw tslrw wld me" CY Well Vee�O.hw'eLWd . kat Word to Poll ewWrd nenegl l frW r100ln wrwdl�lW i} W W yelm hamdwswm ,Du•eWwmY no elw WY G.TerylaluMwlwdWW IMMM werN rlborlelhorm Yret M Its[ IcosYM Mw pllborm WlYlorletYew111a ltmgwb blsmom tYHrrdd Wl wfW YP.<Mdl. ylra.l. 'dl%M sYo.erWrr porrweL • . Me log"a rl Wlnener rine. .tis1111 s errlln. eWrWd ew0rwdl d ed W/YWIY•d/ms ad If wi Wo IM in h nMWbb Yw •bYdww/Yl she neelw gotBcova, is Its nwl•MdrWww.YMr `inn el '�.Msa7MaeYer WIWIA/tp any dlflwal th• new W saefus JM Alr'Bw•y' Daelelw•, a a_Iwd W tfit comes Ymen Ob•es ltseo.levr lb•1 Is. r •1e - Is M moa Ino Cann ell eelli,vmneeee abets W ibe ghywl anignme fere Ipelll w contribution to IPEIIS, mblw red whed tray indtlotaM y Al:aeurl- Ip, sMcb recd,,if 1111 mtilla, nc. cordlel to Jeb Sema figures. In 1111, IPO1S find 111,000 sella mem. been W Included all public employ. saggge"crbtsIvcol poucoendllr. employe s. emplyew of the rives Hard at Benovb• relied end ncYw inderse,sW relUed W nclleo gets • dlken Slets W tscallover► manic she pate psprrrYe fn S. erLSually c.nnp of 111.00 nem. plyew — 11tda1 to 1PBrl1 W 11,00 ew'tspw to W Iwlri yw Vo. Adwrbl Muscle flied uvwlil with Ir Ivo• De0•eteaY d lues• once a four DWI" rine fin aalw sr a 117 Police, fire pensions hit lo' hard o In some Cities, COSI IS 1O% of grope fry tax revenues BY TOM WITL)S[ Q� O S 11r sr nrwr D ra111sa.1wr. o• arts ayr. W n�in Taxpayers m te Ig Iowa dtln are fl' nauciag I+eadjum for L dr police ofn• arm And firefighters that coat almost aevm flaw as mach u retirement benefits for other public employees, and In some cities thou pensions an swallowing a full 10 pamd of prop- erty rop "Actually thus an mscoetrolled costs because thew is adhleg instate Lw that Nacos a cap on the amamt of sodatio i a to waumog groups .While mat cities how tried very. bud to keep their polka ad fin pen- eiou wdl fondn4lt also b true that it is using up a lot of to money that might be used for other tWopl auris ar roads and parks. I don'tthink Witity- en reallaa the foil Impact of this kind of systam.• said Hardd Schomfa. Ce- dar Rapids finaoce commissioner and president of the I.rgu d Iowa 1W- dcipallfies. ' htasy city of iciab Waves Iowa lawmakers have gam loo far Lax- gdrieg a "(,dWae"ntleemmt sys- tem for police sod firefighters at a to than offered to mem=': Cal officials are asking whether the special pension fundis an appropriate . at a Lima who many CWNAN having ' trouble finding enough mosey for otb- a vital services. Among other things, a review of i. •: /m separate city systems shows that: a City taxpayers are contributing. an average of almost $7,000 annually per employee to their fire and police pension funds. Recent figures show that teachers and other public em- ployees who are covered by the Iowa Nbue Employees Retirement System (IPERS) and Social Security each year receive about $1.100 a persou from taxpayer• r a Mgh eoste are an loenastsg burden, particularly te cIU1 such u Ip rde" oandryCedar 1LaPi where I En es are spent ere the retirement and disability pension systems of only 1,000 =play- ea mployens in both dues. a Two Iowa cities. Oskaloosa and 34m+a.)dRt.RMMa ' Part Of on Owl. Debated 1 yLb n add of rmm. 4R o.11d m U11 eumo11 el pyo 41 PP1p117y //Y1dry, Iii W tam ymn tl/ my/ymee ar//1 Yr W 1. 11.Ma u rrl Y Lo pmnt 41 .amt.w a ::4M.Rpe ri 7�rR:n oY7/ytr4M. 8"/111/ Ion em,leyer 11/4m, dnablA m. Mit 4t . "a' RLIm mlyrr or dlum. m Palo tw' a r1r/4r/t11 7.46 iN roply7yr .n 1.Ie14ye Y Oar trlauu coir ra v4rR.1 m n11r pr ur.:=01a %=W M a MOY. dw • w Myler m W11marlWole Mdm:-//n W. JmMr,.rowie We - camsroe 4 at W Ympllm novRI mNA e/tms m to. n.MUUm ten /Ime/1 .n /r.ur..rt Y more r tars Coolant .lTwo IMan yMiriE U" rmw dand a: thins W Parr Npa4.11em. esy .71111rp/me1NDmr airer 1 ten "mens .awUy m prtr11a ht pasta sly Pasadena. le Oe4 Mar,, city 1.eprry con "Mit /road rll.A"bas; the Cad Y WhR/r• 11411 ryw.w—.wwrrrer W ml ' emom 4no.nm at Cad" 7W City 11e4 112.1 MUM. m by C. IRm 02// % ,,21i7 .Legislative elite controls :pension laws Reformers say changes for boon when he began to question proposed changes in the statWo public employee peadm laws. `antof nay daysYapped bdoes r:ad odor tie dirncliae dca Scalar :ad Nystrom, a Republican from BoaM tstldeud b) merry to be as QpIR as Pablt pewiao plana Z dldn t Not the way it was bele/. bendled, and I certainly had some. last OMree articler: ; I,„„` quatica about IL Nystrom was nt to be lied,” Comita r=11, But Comite found ad wkat at! legislature tarn when they ask qom- low about ehangn being made In Iowa's Pension laws.' -'• '• Jed kbm what he was doing and 1.. -"They told me to back off ga didn't It's thatwayaronod there a IOL You've gat the esptrts, and they bear what tkey am doing and pelrlos an to different' Camito aald, Few:itate•afndals — alid'(ewer state lawmakers — understand the mmplesf ty d Iowa's pewloo systans, Pa )I the Iowa Public Employ- ees AaNnment System OEM and Ile law molfftxn for fi efightem As a ya. suit a small group of lawmakers, most of whom represent districts heavily populated by public employ. ees, traditionally have used the oppor� ttmity every electfoa year to make Wb wwetweeyppy weWy W One NkYY, • q ballr Ir Sw• w nemoc�be InY• lent Ju► e� dW lotwemet IL Well, 1'n etN bee emml M b WLb me W woe{ y: W Wa �n! bry .w'{ Eo 114om� yen wta membeol W 4eGTYnb k d •coe yymber e( them .b e.LLbt W/ewtetet•,•NIwoY ae1L Iw ew •uww gr”" IS W Yw eeaw d a pow bW b btwbwe Tet b W welwtn//re (e.le► epee •er �pq,Y alwr WleeW btm.Y Iw ry{b{e1 nowt W {able w MY .w{ le. M e0n1 d item b1r babwe.' W eeLL rb�{I� rnrr•�f - Ir watlae W MW �r .•. ,e�WweM eneaa/ beMJwe t r It1rW,.{{nr>.l.wwl.e u. bttw.b � 4 Mb ver W ef�tlbedepl�itatee�jteeewewb` 1f .: Oeeetwe VeM '4 yeltiw, W MM"', dim b • ewY W leebld nWwr{ qal� +astt{Wyreee l7t.•ae)ay.r_ •AlerftCbmW 'Twebb ettwew eYr pwWm eyew w"SOL The renew" M W awe WF w etwt W SKMWIM"Mi wtWebw tlap e W WOW W beeab tyr -Who" a llywtw Art ary Wt Y W MYIe .be wtwtM en wt ebw =rrww` ui wino NyWM Ylped nether W W.mekm w!w IPEMIMeW hb wq tneeym My rr pmye dm.me_ _ ail� ' MEARCION, SUEPPEL, DOWNER & HAYES a WILLIAM L.MCARDON 1 WILLIAM F. SUEPPELPEL LAWYERS i I ROBERT N. DOWNER 122 SOUTH LINN STREET JAMES P. HAYES TELEPHONE JAMES O. MCCARRAGHER IOWA CITY, IOWA 52240 338-0222 THOMAS J. CILEK AREA CODE 319 MARK T. HAMER THOMAS O. HOBART November 15 1985 MARGARET T. LAINSON DOUGLAS D. RUPPERT PAUL J. MCANDREW. JR. The Honorable Mayor and Members of the City Council of the City of Iowa City 410 East Washington Street Iowa City, IA 52240 Re: City of Iowa City, Iowa Industrial Development Revenue Bonds, Series 1985 (The Economy Advertising Company Project) Dear Mayor McDonald, Ms. Dickson and Gentlemen: As you know, a Memorandum of Agreement and Resolution to Proceed with Issuance and Sale in connection with the above Bond issue was approved sometime ago. Drafts of the final Bond document were not received until yesterday even though the material for preparation of these documents had been submitted, for the most part, by October 3, 1985, and in all instances by October 17, 1985. A considerable amount of work has been done on the site of the new Economy Advertising Company plant over the last couple of months despite the inclement weather and, as a result, construction costs in excess of 25 percent of the total project cost have already been incurred. The funds with which to pay the obligations to date has been borrowed at conventional rates several percentage points higher than the rate on the Bond issue, and it is therefore respectfully requested that expedited consideration be given to the approval of the Resolution Authorizing the issuance and sale of the Bond in question. It would be of considerable assistance to The Economy Advertising Company if final consideration of this Resolution could be undertaken by having a small segment of the informal council meeting scheduled for November 26, 1985, devoted to con- sideration of this matter. This will enable the Bond issue to be closed prior to December 1, 1985, when it will be necessary for additional funds to be drawn to pay construction costs. Thank you very much for your consideration of this request. cry ru yours, - L_�, DhprH _nm.m pr RND:mh cc: Mr. Neal G. Berlin Mr. Terrence Timmons Mr. Willis M. Bywater a11 Z a 1 i I IN City of Iowa City MEMORANDUM Date: November 19, 1985 To: Mayor John McDonald and City Councf embers From: Terrence Timmins, City Attorney 7 d.� Re: Question Concerning Conflict of Interest of Councilmembers Erdahl and Strait: Resolution Allocating Community Development Block Grant Funds. Introduction: During the informal Council session on Monday, November 18, the City Council discussed the proposed allocation of Community Development Block Grant funds among the various social service agencies. During that discussion, Council - members Strait and Erdahl questioned whether they would have a conflict of interest in voting on the resolution allocating those funds, since Council - member Strait is on the board of Goodwill Industries and since Councilmember Erdahl's wife is on the board of Handicare, both of which are to be recipi- ents of Community Development Block Grant funds. In this memo, I will briefly address the conflict of interest issue raised. Discussion: In addressing the conflict of interest issue in the context of the allocation of Community Development Block Grant funds, we have to be concerned about two levels of law and regulation. First of all, Section 362.5 of the Iowa Code contains provisions prohibiting City officers or employees from having an interest in a "contract" with their City. Furthermore, the rules and regula- tions of the Department of Housing & Urban Development regarding Community Development Block Grant funds likewise prohibit elected officials of the recipient (City) from obtaining "a personal or financial interest or benefit from the activity," or from having "an interest in any agreement with respect thereto, or the proceeds thereunder..." Addressing first the prohibition stated in Section 362.5 of the Iowa Code, I would point out that the term "contract" means "any claim, account, or demand against or agreement with a city, express or implied." Thus, the term is broad enough to include the situation in which a city agrees to allocate Communervice agenty. Development cy.However, the prohibition onlock n stated sint Sectio a on 362.5 issto�the al Seffect that "a city officer or employee shall not have an interest, direct or in- direct, in any contract ... or the profits thereof...." That prov Sion en goes on to outline several specific situations which are exempt from the prohibition of that provision. Among the contracts which would be exempt from the prohibition are contracts "in which a city officer or employee has an interest solely by reason of employment, or a stock interest of the kind described in subsection 9 (less than 5% of the outstanding stock), or both, if the contracts are made by competitive bid, publicly invited and opened, and if thel remuneration of employment will not be dirortly nffc,f_,4 ,. a// 9 the procurement or preparation of any part of the contract." Since agree- ments for the allocation of Community Development Block Grant funds are not specifically exempted, I will address the issue by analogizing to the exemp- tion hereinabove outlined. Under the circumstances presented in this case, neither Councilmember Strait nor Councilmember Erdahl's wife are employed by the agencyies which will be receiving funds. Instead, in both cases, those individuals are merely on the board of those agencies. Membership on the boards of those agencies is a non -remunerative position, from which they can derive no direct or indirect financial benefit. Membership on those boards, rather, falls into the category of community service. While both the indi- viduals involved and the community undoubtedly benefit from the service which they provide, it is my opinion that this is not the kind of direct or indi- rect benefit which the statute proscribes. Absent some direct or indirect financial benefit, neither Councilmember has an "interest" in the allocation oF—f-un-Ts—to those agencies. Under those circumstances, it is my opinion that neither Councilmember has a conflict of interest under Section 362.5 of the Iowa Code such as would disqualify them from voting on the allocation of Community Development Block Grant funds to the agencies involved, Handicare, Inc. and Goodwill Industries. Turning to the applicable HUD regulations, found in the Federal Register, Volume 48, No. 186, Rules and Regulations, issued Friday, September 23, 1983, at Section 570.611, Conflict of interest, I find that the provision could be paraphrased as prohibiting an "elected official... of the recipient" from obtaining "a personal or financial interest or benefit from the activity," or from having "an interest in any contract or agreement with respect thereto." Since the language of this regulation closely parallels that found in Section 362.5 of the Iowa Code, my conclusion would be the same. In my opinion, neither Councilmember has a personal or financial interest or benefit in the proposed allocation of Community Development Block Grant funds to Handicare, Inc. or Goodwill Industries. In conclusion, I would only report that a similar issue arose this fall with respect to the candidacy of Mr. John Watson for City Council. In that case, Mr. Watson recognized that if he were elected to the City Council, he could not vote on the allocation of Community Development Block Grant funds to Goodwill Industries since he is employed by Goodwill Industries and would receive a direct or indirect benefit from the allocation of those funds. The question therein raised was whether or not Mr. Watson could vote on the allocation of General Revenue Sharing funds to the social service agencies which had applied for those funds. Although the opinion which I issued to him, a copy of which is attached hereto, has no direct bearing on this situa- tion, I feel the Council should be aware of it since it involves similar issues, and since it was an issue that was recently raised. bj2/5 CITY OF IOWA CITY CIVIC CENTER 41 O E. WASHCNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5030 October 29, 1985 Mr. John D. Watson 403 Elmridge Avenue Iowa City, Iowa 52240 Dear Mr. Watson: I am in receipt of your letter of October 25, 1985, regarding a potential conflict of interest should you be elected to the City Council in the upcoming election. As I understand it, you are the director of Goodwill Industries, which has in the past been the recipient of Community Develop- ment Block Grant (CDBG) funds, and which is an applicant for further CDBG funding in the upcoming year. The question which you raise is whether or not you would have a conflict of interest as a City Councilmember in participating in the decision-making process as to the funding of other agencies with CDBG or General Revenue Sharing (GRS) funds. To begin with, I think it should be pointed out that the City utilizes two sources of funding and two separate processes in funding social service agencies such as Goodwill. The City has in the past allocated CDBG funds to various social service agencies, including Goodwill Industries. The City has also in the past allocated GRS monies to various social service agencies. Although in both cases the source of the funds is the federal government, the regulations regarding allocation of the funds and their utilization, as well as the process for allocation the funds, are com- pletely separate. Furthermore, although some social service agencies apply for both Community Development Block Grant funds and General Revenue Sharing funds, there is no "cross over" between the two programs in terms of eligibility and criteria for selection. Selection of a particular agency under one allocation process does not impact and is not related to its selection under the other process. Getting back to the question which you raised, it would be my opinion that a City Councilmember would only have a conflict of interest in the allocation process for either Community Development Block Grant funds or General Revenue Sharing funds to the extent that the Councilmember would receive some direct or indirect benefit from the allocation of those funds. In your case, since Goodwill Industries is an applicant for Community Development Block Grant funding, you would have a conflict of Interest in participating in the allocation process for those funds. However, since Goodwill Industries is not an applicant for General Revenue Sharing funding, I can see no conflict of interest for you as a Council - member to participate in the allocation process for those funds. I Mr. Watson October 29, 1965 Page 2 To conclude, I would only reiterate what I indicated during our conversa- tion on Tuesday morning, October 29, regarding disclosure. Applicable HUD regulations on the allocation of CDBG funds provide that elected officials who are in a position to participate in a decision-making process or gain inside information with regard to such activities may not obtain a personal or financial interest or benefit from the activity or have an interest in any contract or agreement with regard thereto. If an elected official were to acquire such an interest, such as by receiving an allocation of CDBG funds, the regulations require disclosure of this fact in writing to HUD. HUD is then allowed to grant exceptions to this rule on a case by case basis, In reviewing the applicable regulations, it is my judgment that HUD would grant an exception in the circumstances posed by your opinion request. If you have any further questions with regard to this matter, feel free to call upon me at your convenience. Sin rely, I Terrence Timmins City Attorney tp2/4 a10