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HomeMy WebLinkAbout1984-12-18 OrdinanceJf ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 84-3166, THE IOWA CITY PLUMBING CODE, BY ADOPTING APPENDIX C OF THE UNIFORM PLUMBING CODE, 1982 ADDITION, AND AMENDING CERTAIN SECTIONS OF THE IOWA CITY PLUMBING CODE. BE IT ORDAINED BY THE CITY COUNCIL OF IOWA CITY, IOWA: SECTION I. PURPOSE. The purpose of this ordinance is to amend the 1982 Edition of the Uniform Plumbing Code previously adopted as the Iowa City Plumbing Code (Ordinance No. 84-3166) in order to provide for more effective enforcement of the Plumbing Code. SECTION II. ADOPTION. Section II of Ordinance No. 84-31 s hereby deleted and the following is adopted in lieu thereof: Subject to the amendments described in Section II1, below, and in Section III of Ordinance No. 84-3166, Chapters 1 through 13, and Appendix C, of the 1982 Edition of the Uniform Plumbing Code promulgated by the International As- sociation of Plumbing . and Mechanical Officials are hereby adopted, and shall be known as the Iowa City Plumbing Code, or the Plumbing Code. SECTION III. AMENDMENTS. The Plumbing Coe is hereby amen a as ollows: 1. Section 401(a) is amended by deleting subsection (2) and adding a new subsection (2) reading in its entirety as follows: (2) ABS and PVC pipes and fittings shall be marked to show confor- mance with the standards in the code. ABS and PVC installations are limited to construction not exceeding the following condi- tions: (A) No vertical stack shall exceed thirty-five feet in height. No horizontal branch shall exceed fifteen feet in length. (B) All installations shall be made in accordance with the manufac- turer's recommendations. (C) Installations shall not be made in any space where the surround- ing temperature will exceed 1400 or in any construction or space where combustible materials are a3V-7 1.-N 01 Nance No. Page 2 A 3. prohibited by any applicable building code or regulation or in any licensed institutional occupancy except where special conditions require other than metal pipe, i.e., in acid waste or deionized water systems, plastic pipe and other materials may be approved by the adminis- trative authority. (D) No plastic pipe shall be installed underground. NOTE: Installation of ABS and PVC piping beyond the limits of (A) may be approved by the administrative authority for a particular case when certified by a professional engineer. Table 4-3 is amended 'by deleting reference to footnote 3 for vent piping maximum units of 1-1/2 inch (38.1 um) pipe size. Section 502 is amended by deleting subsection (a) and adding new subsec- tions (a), (c) and (d) as follows: (a) No vent will be required on a three-inch basement floor drain provided its drain branches into the house drain on the sewer side at a distance of five feet or more from the base of the stack and the branch line to such floor drain is not more than 12 feet in length. (c) In single- and two-family dwellings no vent will be required on a two-inch basement P trap, provided the drain branches into a properly vented house drain or branch three inches or larger, on the sewer side at a distance of five feet or more from the base of the stack and the branch to such P trap is not more than eight feet in length. In buildings of one interval, where only a lavatory, sink or urinal empties into the stack, the five foot distance from the base of the stack does not apply. A 3 s(7 --� Oi dance No. Page 3 4. 5. (d) Where permitted by the Adminis- trative Authority, vent piping may be omitted on basement water closets in remodeling of existing construction only. Section 503(a) is amended by deleting subsection (2) and adding a new subsection (2) reading in its entirety as follows: (2) ABS and PVC pipes and fittings shall be marked to show confor- mance with the standards in the Code. ABS and PVC installations are limited to construction not exceeding the following condi- tions: (a) No vertical stack shall exceed thirty-five feet in height. No horizontal branch shall exceed fifteen feet in length. (b) All installations shall be made in accordance with the manufacturer's recommenda- tions. (c) Installations shall not be made in any space where the surrounding temperature will exceed 1400 or in any con- struction or space where combustible materials are prohibited by any applicable building code or fire regulation or in any licensed institutional occupancy except where special conditions require other than metal pipe, i.e. in acid waste or deionized water systems, plastic pipe or other materials may be approved by the administra- tive authority. (d) No plastic pipe shall be in- stalled underground. NOTE: Installation of ABS and PVC piping beyond the limits of (a) may be approved by the administrative authority for a particular case when certified by a professional engineer. Section 613 is amended by adding a new subsection (d) to read as follows: a3V7 0 nance No. Page 4 (d) The following wet venting conditions are given as examples of common conditions used in residential construction which are allowed under this code, provided the piping sizes are maintained as required by other sections of this code and the wet vented section is vertical. (1) Single bathroom groups. A group of fixtures located on the same floor level may be group vented but such in- stallations shall be subject to the following limita- tions: (a) h a combined total tures t total offour fixture units may drain into the vent of a three inch closet branch. (b) One fixture of two or less units may drain into a vent of a one and one-half inch bathtub waste pipe. (c) Two fixtures of two or less units each may drain into the vent of a two-inch bathtub waste serving two or less tubs providing that they drain into the vent at the same location. (2) A single bathroom group of fixtures on the top floor may be installed with the drain from a back -vented lavatory serving as a wet vent for a bathtub or shower stall and for the water closet, provided that: (a) Not more than one fixture unit is drained into a one and one-half inch diameter wet vent or not more than four fixture units drain into a two-inch diameter wet vent. (b) The horizontal branch shall be a minimum of two inches and connect to the stack at the a3 s17 �Ainance No. Page 5 same level as the water closet drain or below the water closet drain when installed on the top floor. It may also connect to the water closet arm. (3) Common vent. A common vent may be used for two fixtures set on the same floor level but connecting at different levels in the stack provid- ing the vertical drain is one pipe size larger than the upper fixture drain but in no case smaller than the lower fixture drain. (4) Double bathroom group. Where bathrooms or water closets or other fixtures are located on opposite sides of a wall or partition or are adjacent to each other within the prescribed distance such fixtures may have a common soil or waste Pipe and common vent. Water closets having a common soil and vent stack shall drain into the stack at the same level. (5) Basement closets. Basement closets or floor drain in one -and two-family dwellings may be vented by the waste line from a first floor sink or lavatory having a one and one-half inch waste and vent pipe. Section XI of Ordinance No. 84-3166 is deleted and the following is inserted in lieu thereof: Renewals. Every license which has not previously been revoked shall expire on December 31st of each year. Renewal fees shall be as established by Council. Any license that has expired may be reinstated within sixty days after the expiration date upon payment of an additional ten dollar reinstate- ment fee. After the expiration of a3K7 Ordinance No. Page 6 the aforementioned sixty-day period no license shall be renewed except upon recommendation of the board. SECTION IV. REPEALER. All ordinances and parts of or finances in conflict with the provision of this ordinance are hereby repealed. SECTION V. SEVERABILITY. If any section, provision or par of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VI. EFFECTIVE DATE. This Or- dinance s a e in effect after its final passage, approval and publication as required by law. Passed and approved this ATTEST: CITY CLERK 0 Recolved & Approved BY`ThLOO al0ep� of d� a 3V-7 ORDINANCE NO. 84- 3217 AN ORDINANCE VACATING A PORTION OF THE GROVE STREET RIGHT-OF-WAY WEST OF FERSON AVENUE. BE IT ORDAINED BY THE CITY COUNCIL OF IOWA CITY, IOWA: SECTION I. That the 15 foot segment of the Grave Street right-of-way directly west of Ferson Avenue in Iowa City, Iowa, is hereby vacated and that said portion of right-of-way is described as follows: Beginning at the northeast corner of Lot 12, Block 10, Manville Addition, thence west 150 feet, thence north 15 feet, thence east 150 feet, thence south 15 feet to the point of begin- ning. SECTION II. This ordinance repeals r in�d ance_Jo. 2482 adopted on June 18, 1968. SECTION III. This ordinance shall be in orce an effect when published by law. SECTION IV. REPEALER. All ordinances and parts of ord Fontes in conflict with the provision of this ordinance are hereby repealed. SECTION V. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitu- tional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VI. EFFECTIVE DATE. This Ordi- nance shall e n e ect a ter its final passage, approval and publication as required by law. Passed and approved this 18th. day of December . 1984. a3G�/ It was moved by Ambrisco and seconded by Dickson that the Or finance as read be'adopted and upon ro c�ere were: AYES: NAYS: ABSENT: X AMBRISCO X BAKER X DICKSON X ERDAHL X MCDONALD X STRAIT ZUBER First consideration 11/20/84 Vote for passage: Ayes: Dickson, McDonald, Strait, Zuber, Ambrisco, Baker Nays: None Absent: Frdahl Second consideration 12/4/84 Vote for passage Ayes: Dickson, Frdahl, McDonald, Strait, Ambrisco, Baker Nays: None Absent: Zuber Date published December 26, 1984 a3�� ORDINANCE N0, AN ORDINANCE PROVIDING FOR THE PARTIAL EXEMPTION FROM PROPERTY TAXES FOR INDUS- TRIAL PROPERTIES ON WHICH IMPROVEMENTS HAVE BEEN MADE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY: SECTION I. That Chapter 32.1 of the Municipa Code of the City of Iowa City be amended to add the following: Article III. Partial Property Tax Exexgtion forIndustrial Property. Section 32.1-31. Established. There Is hereby established a partial exemption from property taxation of the actual value added to industrial real estate by the new construction of industrial real estate and the acquisi- tion of or improvement to machinery and equipment assessed as real estate pursuant to Section 427A.1, Subsection 1, paragraph a of the 1983 Code of Iowa. Section 32.1-32. Definitions. For the purpose of this article the following definitions shall apply: (a) Actual value added. The actual value added as of the first year for which the exemption is received, except that actual value added by improvements to machinery and equipment means the actual value as determined by the assessor as of January I of each year for which the exemption is received. (b) New Construction. New building and structures and new buildings and structures which are con- structed as additions to existing buildings and structures. New construction does not include reconstruction of an existing building or structure which does not constitute complete replace- ment of an existing building or structure or refitting of an existing building or structure, unless the reconstruction of an existing building or structure is required due to economic obsoles- a3Gs Ordinance No. Page 2 -, cence and the reconstruction is necessary to implement recognized industry standards for the manufacturing and processing of specific products and the recon- struction is required for the owner of the building or structure to continue to competitively manufacture or process those products, which determination shall receive prior approval from the City Council upon the recom- mendation of the Iowa Development Commission. (c) New Machinery and Equipment. New machinery and equipment assessed as real estate pursuant to Section 427A.1, Subsection 1, paragraph e, of the 1983 Code of Iowa unless the machinery or equipment is part of the normal replacement or operating process to maintain or expand the existing operational status. Section 32.1-33. Period and Amount of Exemption. The actual value added to industrial real estate for the reasons specified in Section 32.1-31 is eligible to receive a partial exemption from taxation for a period of five years. The amount of actual value added which is eligible to be exempt from taxation shall be as follows: a. For the first year, 75%. b. For the second year, 60%. c. For the third year, 45%. d. For the fourth year, 30%. e. For the fifth year, 15%. Section 32.1-34. Limitation on Amount of Exemption. The granting of the exemption under this article for new construction constituting complete replacement of an existing building or structure shall not result in the assessed value of the industrial real estate being reduced below the assessed value for the industrial real estate before the start of the new construc- tion added. Ordinance No. Page 3 ."s Section 32.1-35. Application for Exception. An application shall be filed for each project resulting in actual value added for which an exemption is claimed. The application for exemption shall be filed by the owner of the property with the City Assessor by February 1 of the assess- ment year in which the value added is first assessed for taxation. Applica- tions for exemption shall be made on forms prescribed by the Director of Revenue and shall contain information pertaining to the nature of the improvement, its cost, and other information deemed necessary by the Director of Revenue. Section 32.1-36. Application for Prior Approval. A person may submit a proposal to the City Council to receive prior approval for eligibility for tax exemption on new construction. The City Council, by ordinance, may give its prior approval of a tax exemption for new construction if the new construction is in conformance with Chapter 36, the Zoning Ordinance of Iowa City. The ordinance may be enacted not less than 30 days after a public hearing is held in accordance with Section 362.3 of the 1983 Code of Iowa. Such prior approval shall not entitle the owner to exemption from taxation until the new construction has been completed and found to be quali- fied real estate. However, if the tax exemption for new construction is not approved, the person may submit an amended proposal to the City Council to approve or reject. Section 32.1-37. Repeal. When in the opinion of the City Council continuation of the exemption granted by this ordinance ceases to be of benefit to the City, the City Council may repeal this ordinance, but all existing exemptions shall continue until their expiration. Section 32.1-38. Dual Exemptions Prohibited. A property tax exemption under this ordinance shall not be granted if the property for which the X365 Ordinance No. Page 4 exemption is claimed has received any other property tax exemption authorized by law. SECTION II. This ordinance shall be in fui fi orce and effect from and after its passage and publication ars provided by law. SECTION III. REPEALER: All ordinances and pars or or -antes in conflict with the provision of this ordinance are hereby repealed. SECTION IV. SEVERABILITY: If any section, provision or part of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Passed and approved this ATTEST: C T CLERK Raeehred A Approved By TO11x oi:e o? 3Gs ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE PARTIAL EXEMPTION FROM PROPERTY TAXES FOR INDUS- TRIAL PROPERTIES ON WHICH IMPROVEMENTS HAVE BEEN MADE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY: SECTIONI. That Chapter 32.1 of the Muni PaTCode of the City of Iowa City be amended to add the following: Article III. Partial Property Tax Exeaption for Industrial Property. Section 32.1-31. Established. There is hereby established a partial exemption the actual value maddedeto industrial taxation (real estate by the new construction of industrial real estate and the acquisi- tion and equipmentassessed asreal r aso machinery pursuant to Section 427A.1, Subsection 1, paragraph a of the 1983 Code of Iowa. Section 32.1-32. Definitions. For the purpose of this article the following definitions shall apply: (a) Actual value added. The actual valfor added which asOf" texemption year is received, except that actual value added by improv en s means tthescactual and equipm value as b the assessoras oftJanuary 1 of each year for which the exemption is received. (b) New and structures oand new buildn. New ings and structures which are con- structed as additions to existing construction New and does structures. c not s include reconstruction of an existing building or structure which does not constitute complete replace- ment of an existing building or structure or refitting tru furan existing building or unless the reconstruction of an existing building or structure is required due to economic obsoles- DUGS Ordinance No. Page 2 cence and the reconstruction is necessary to implement recognized industry standards for the manufacturing and processing of specific products and the recon- struction is required for the owner of the building or structure to continue to competitively manufacture or process those products, which determination shall receive prior approval from the City Council upon the recom- mendation of the Iowa Development Commission. (c) New Machinery and Equipment. New machinery and equipment assessed as real estate pursuant to Section 427A.1, Subsection 1, paragraph e, of the 1983 Code of Iowa unless the machinery or equipment is part of the normal replacement or operating process to maintain or expand the existing operational status. Section 32.1-33. Period and Amount of Exemption. The actual value added to industrial real estate for the reasons specified in Section 32.1-31 is eligible to receive a partial exemption from taxation for a period of five years. The amount of actual value added which is eligible to be exempt from taxation shall be as follows: a. For the first year, 75%. b. For the second year, 60%. c. For the third year, 45%. d. For the fourth year, 30%. e. For the fifth year, 15%. Section 32.1-34. Limitation on Amount of Exemption. The granting of the exemption under this article for new construction constituting complete replacement of an existing building or structure shall not result in the assessed value of the industrial real estate being reduced below the assessed value for the industrial real estate before the start of the new construc- tion added. a3i;s- Ordinance No. Page 3 Section 32.1-35. Application for Exemption. An application shall be filed for each project resulting in actual value added for which an exemption is claimed. The application for exemption shall be filed by the owner of the property with the City Assessor by February 1 of the assess- ment year in which the value added is first assessed for taxation. Applica- tions for exemption shall be made on forms prescribed by the Director of Revenue and shall contain information pertaining to the nature of the improvement, its cost, and other information deemed necessary by the Director of Revenue. Section 32.1-36. Application for Prior Approval. A person may submit a proposal to the City Council to receive prior approval for eligibility for tax exemption on new construction. The City Council, by ordinance, may give its prior approval of a tax exemption for new construction if the new construction is in conformance with Chapter 36, the Zoning Ordinance of Iowa City. The ordinance may be enacted not less than 30 days after a public hearing is held in accordance with Section 362.3 of the 1983 Code of Iowa. Such prior approval shall not entitle the owner to exemption from taxation until the new construction has been completed and found to be quali- fied real estate. However, if the tax exemption for new construction is not approved, the person may submit an amended proposal to the City Council to approve or reject. Section 32.1-37. Repeal. When in the opinion of the City Council continuation of the exemption granted by this ordinance ceases to be of benefit to the City, the City Council may repeal this ordinance, but all existing exemptions shall continue until their expiration. Section 32.1-38. Dual Exemptions Prohibited. A property tax exemption under this ordinance shall not be granted if the property for which the 17365s Ordinance No. Page 4 roo 1 exemption is claimed has received any other property tax exemption authorized by law. SECTION II. This ordinance shall be in fuITorce and effect from and after its passage and publication as provided by law. SECTION III. REPEALER: All ordinances and pars of or nances in conflict with the provision of this ordinance are hereby repealed. SECTION IV. SEVERABILITY: If any section, provision or part of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Passed and approved this ATTEST: MAYOR Received & Approved 6y Tl�agal p rtment , ascs 'City of Iowa Cit'. MEMORANDUM Date: December 13, 1984 To: City Council From: Karin Franklin, Senior Planner Re: Zoning for Uses Subject to the Proposed Tax Abatement Ordinance The Tax Abatement Ordinance provides for a partial exemption of property taxes for industrial properties as defined by the Iowa Code. Generally, the types of uses which may use the abatement procedure are manufacturing, warehouses, and distribution centers. Manufacturing is restricted under the Iowa City Zoning Ordinance to the I-1 and I-2 zones. Warehouses and distribution centers are permitted in the CI -1 zone as well as in the I-1 and I-2 zones. Restrictions per- taining to use and dimensional requirements are included on the attached excerpts from the Zoning Ordinance. Developments for these uses are also subject to the parking requirements of the City, the tree regulations, storm water management for developments over one acre, regulations pertaining to industrial waste control, and any other ordinances which may be applicable to a given development. Performance standards pertaining to smoke, particulate matter, toxic matter, odor, vibration, glare, sewage waste, open storage, and screening are also applicable; copies of these standards are included for your information. A map highlighting the zones in which these industrial uses may be located will be available at the informal Council meeting. Not all of the properties within those zones will qualify for property tax abatement. The properties must be "qualified real estate" as defined by the Code of Iowa to be eligible. tp4/7 - deW 5 Ray A. Muston Statement to: Iowa City Council December 18, 1984 Tax Abatement Hearing COMMUNITY DEVELOPMENT MODEL The FCDI recommendations for an Iowa City Tax Abatement ordinance is part of a comprehensive strategy for economic development for our community. The broader strategy is based on a generally accepted model of community development which incorporates the following assumptions. 1. Economic stability of a community is contingent upon the availability of employment opportunities for the existing work force and for young people who desire to enter the work force. 2. Community employment opportunities include jobs in industry/ manufacturing sectors and the non -industrial sector ( in- cluding agriculture, services and retail classifications). 3. The industrial/manu£acuturing sector contributes a multiplier effect to the local economic development through the generation of income to the community which in turn supports local service and retail businesses. 4. Residential property tax and general revenues in a community are related to the ability of home owners and consumers to support their living costs and residential investments. A cornerstone of the community economic base is dependent upon the maintenance of industrial jobs which attract external income through the sale of products and services to National and International clients. The economic base is also essentially related to the replacement of jobs lost through shifting demand and relocation with new jobs. BUSINESS LOCATION FACTORS The creation of industrial/manufacturing employment opportunities in the community is conditioned by the competitive position of I the community relative to selected industry expansion and location factors. Factors that influence the location choices of high-technology com- panies within regions in order of cited priority include: I. Availability of workers 96.18 2. State and/or local tax structure85.59 3. Community attitudes toward 81.99 business. 4. Cost of property and con- 78.89 struction. 5. Transportation for people 76.19 6. Ample area for expansion 75.49 073LS 7. Proximity to good schools 70.8% 8. Proximity to recreational 61.1% and cultural opportunities 9. Good transportation facilities 50.9% for materials and products 10. Proximity to customers 46.8% (Joint Economic Development Committee Survey of Hi -Tech Firms, 1981) RELEVANCE OF THE TAX ABATEMENT ORDINANCE TO DECISION FACTORS The proposed tax abatement ordinance is strategically related to three of the top four decision factors cited by corporate hi -tech decision makers. 1. It will bring ourproperty tax policy in line with 130 Iowa communities with tax abatement programs (Factor No#2) 2. It will communicate a positive community attitude toward business expansion and development (Factor No#3) 3. It will help keep property. and construction.casts 1; for business locations and expansion consistent with the marketplace. 4. The tax abatement policy for warehousing and distribution also relates to Factor #9 the avail- ability of good transportation for materials and products (RE: Millard, Heinz, etc.) A CASE STUDY/STATUS ANALYSIS The Millard Warehouse request for consideration has a major potential import to our community. (See Attached) Their proposed expansion incorporates services to one client earlier mentioned to the Council. They (Millard) are currently negotiating with a second client to be served within the proposed expansion. A third client is meeting with them within the next two weeks which could lead to further expansion of the Millard facility. (A third phase potential) The tax abatement program is related to Millard's to be competitive with other Iowa and midwestern distribution centers in the negotiation of rates. Millard, Heinz, and other Iowa City industries have other corporate facil- ities and ''are influenced by cost and profitability factors as well as location and quality of life. A decision to expand or locate elsewhere is an opportunity foregone for our community...especially when the client is an existing business which knows and appreciates our community assets. A decision for an existing business to expand in Iowa City is a positive message to other businesses which may consider our community in the future. 1. We are currently involved in an attempt to attract a major fortune 500 corporation interested in a mid- western distribution center with further plans for manufacturing. Their long-term plans would include in excess of 500 jobs in our community. 2. We have just responded to a client interested in con- tracting with a distribution center to handle their products with potential for building their own operation by 1987. 3. We have within the last two days identified a major corporation which is contemplating use of existing Iowa City distribution centers as a trial to potential construction of their own site in the next five years. It is very realistic to observe that it is possible that none of the three prospects cited above will materialize. It is also realistic to emphasize that the demonstration of a positive community commitment to business development and expansion will measureable'enhance our potential ability to attract these potential new employment opportunities to our community. The Johnson County Board of Supervisors acted this morning to take the necessary steps to implement the tax abatement program in Johnson County. Favorable action by the Council will be a very positive and vital part of our overall community effort. RAM: jt Filet New Job Mod Iowa City Council : December 10, 1954 Subject: Economic Impact of Industry Expansion LOCAL COMMUNITY IMPACT OF 100 INDUSTRIAL JOBS Source: Community Guide to Insdustrial Developsent . 'Iowa Development Commission Papulation: Households:' School Children: Personal income: Retail establishments: Bank Depositst Passenger cars: Nom=unufacturing jobs: Annual retail sales: 351 97 79 1000000 1 $500,000 97 68 $500,000 PROPOSED MILLARD EXPANSION EXAMPLE The Millard Expansion Plan calls for : a) New construction of 75,724 sq feet (Phase One '85, Phase Two '861 b) Capital investment of $3.8 million 0 An estimated 100 additional industrial jobs PROJECTED IMPACT OF EXPANSION Given the above economic impact factors and proposed Millard expansion: Ave Annual Property Tax an Millard Expansion First Five Years: $56,315 Assuming tax based on 1984 eillagelwith abatement) Year Ones 25598 Year Two: 40956 Year Three: 56315 Year Four: 71673 Year Fires 87032 Year Six: 102390 W Second Five Years $102,390 Residential Property Tax on 97 Households at Johnson County Average of $58,400 119801 at 1984 millage rate: $102,096 1102,096 Total Tax Rmvenue Impact(Industrial +Residential) $158,411 1204,486 Increase in Bank Deposits: $500,00D 1500,000 Increase in'Retail 9alest $500,000 1500,000 Page I DEC IS 84 �3GS Page 4 — The Dally Iowan — Iowa City, Iowa — Tuesday, December 18, 1984 Abate mentp lan taxes credibility By Caroline Distorts Rapids are much large( than and have very different qualitles of life from T IS TIME, ladies and gentlemen, Des Moines and Cedar Rapids are much larger I react advantage ten have only a I -le--. to take out your calculators and figure out whether it is a good Idea than and have very different qualities of life custrral tax base competition -and for Iowa City to pass a tax abate•_fr0lgq lgWa City. Stlllthey-have only a. slight this without any tax abatement pian for men! measure. -- - -- ' Iowa City. The conclusion seems ob- The,bandwagon for such a measure advantage in business taxbase competition. vlous.rea j is aldy, crowded. Iowa City Coun•`C cilor Kale Dickson says we're' lagging FINALLY SOME PERIPHERAL ' behind" other Iowa communities that ' ' - Items need to be copddered:' First, (. businesses to locate In a given area are - have or John McDonald Is mid tote? � .. . there Is the recentg;olint d of, the ar ,';,'Mayor or John McDonald is said to feel' Quest � * Precisely -those that, cost taxpayers a y s , lot of more sew a with which Iowa Rapids an returning;conlrol of ;the Iowa City has suffered In the past �1l-+City already has a problem; police and Cedar Rapids Airport to'the City Coun= c because the city is without a tax abate• opinion, fire protection, of which we are told we ell from the Airport Commission.',: . ment plan. How.exactly has• the city �N� don't' have: enough; and recreational One little-noted-feiture of:Thal suffered? ` ----- facilities; which are already overerow-._ proposal was that it would have made Chamber.'of Commerce mpresen• dad here -and which seem to be al the possible the establishment of an"air- taliveErnie Lehman says theChamber taxes from gross Income. That's not all bed he a anylistof chfunding beaties. Port authority": algia -levying solely vigorously supports ;lax abatement. :- they can also depreciate the cost of uncontrolled by the ciancil.-Taxes so Isn't this just predictable business newbuildings as, much as 20 percent If new businesses and industries get levied are usually used, to,improve'and' solidarity? -'. " : per year.over five years and deduct yet a larger tax break, who is going to expand an airport. q• - Ray Muston, president of First ` that depreciation from gross income help pay for maintenance and expan- Remember the geography lesson Capitol Development, Inc, and the' (this could amount to $760,000 per year slon of. Iowa City's basic services? above? The mayor of Cedar, Rapids liaison man between the UI's revenue for Millard Warehouse, making the A tax abatement plan would In fact knows what will bring in Industry: im- interesls and local business, says tax city's $91,057 total , five-year break take money out of the community and proved transportation' facilities. abatement is "an incentive to. expand seem pallid). Businesses can also take send .. it . to the federal government... Citizens, however, doled' down the the existing industrial base'in'lowa Investment tax credits on new equip• through reduced' federal tax deductionschange;'as they no dohbl feel they pay . City and reduce dependence on othermend in new facilities as well. Beller — an Idea -to which those who don't , enough taxes already'!, revenue, sources in the community." than a deduction, this FIs a credit care for "big government" should be Does he mean residential properly?' against the actual tax bill. adverse. Would it not be better to have And a local. business, Millard F(nally, if Iowa Clly gives Millard the company pay more local tax, keep - Warehouse, is also riding on the tax, Warehouse an industrial revenue bond Ing the money herd for basic services? abatement bandwagon, sinexpan- break, It will be able to borrow money sion plans include construction of an to build at about 25 percent less than estimated $3.8 million warehouse. the rate of interest ordinarily charged Let's use that figure is an example. — and deduct the Interest It does pay, I from Its federal taxes. IF THE NEW FACILITY were to be assessed at its full value, based on con• slrection t costs, and if we use, the current tax.rate of Iowa City ($10.65 per $1000 evaluation), the gross tax bill would he $40;470 per year. Under the proposed tax abatement plan, the lax would be only $10,118 the first year; .516,188 the second; $2§,258 the third; $28,329 the fourth and $34,400 the final ,year. Over five years, savings to the company would amount to $91,057. Meanwhile, back at the ranch; Presl• dent Reagan- has been working to reduce corporate Income taxes. Cor- porate taxes only a few years ago provided 26 percent of federal tax revenue; at present they provide only about 6 percent. This is understan• dable, since' corporations and businesses, enjoy substantial oppor- tunitig for,deductions. First, glicy can deduct local property Obviously, Millard Warehouse is not going to suffer unduly from its invest- ,ment'in the new warehouse, wholher Iowa City passes tax abatement or not STUDYING THE ISSUE further, we learn from geography textbooks that there is such a thing. as "locallonal theory," which examines the reasons businesses locate where they do. It turns out that local lax structure is very low on the list of considerations. Far more important are such things as available labor, transportation, resources (raw materials, wager, sewage facilities), amenities for em. ployees (housing, schools,recrealional facilities) and security (police and fire departments)., Businesses complain about local taxes but don't base their decisions on them. Alert readers will have noticed that some of the real incentives for THE ARGUMENTFOR tax abate- ment Is weak enough on these points, but it becomes even weaker when Iowa. City Is compared with other cities In Iowa it supposedly "lags behind." A look at rho Iowa Department of Revenue's 1993 Property Tax Valuation Summary.shows: a Iowa City Is the eighth most pop- ulous city in the stale, Des Moines is first, Cedar Rapids second. • The percentage of local property lax valuation that was commercial/in- dustrial property. In Iowa City was 32 percent of the Alital. (Checking 1973 figures — before urban renewal — one finds only a I percent decrease in the residential properly share of the bur- den. The lax benefits promised by ur- ban renewal are evidently missing In action.) • The only Iowa cities In which com- mercial/Industrial properly tax makes up a larger percentage of the total are Des Moines (33 percent) and Cedar Rapids (34 percent). In short, Des Moines and Cedar Second, there is the proposed com- mittee to develop the;'corridor" bet- ween Iowa City and;Cedor Rapids, which falls outside life jurisdiction of either city. Who wouldpay the costs of basic services required by businesses so located?., Businesses,' in -fact, can successfully ask to beihnexed in order to secure city services= Procter and Gamble is a local example. If the area is not aouexed by an' ex- isting municipality; costs for basic ser- vices would ultimatelyshow on everyone's county tax bill. Share the wealth, indeed. Some will no doubt' that the des• mal figures on property tax paid by business Interests — figures that would be made even more dismal by a, lax abatement plan - Infests that Iowa Cily,and all of Iowa peed more com- mercirrl and Industrial development. Not If We world Is galig to eat. .In conclusion, lel moot pass a local tax abatement measide — and lel us hope for more guidance from common sense and objective kholarship, and less frnm entrepreneurs, mountebanks and Babbitts, dl's our ody hope. Dlatorle is a DI stall writer and stall Ilbrsrlan. i,•t 13&22 IOWA CITY CODE (2) General provisions: See Article W. a Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. c. Performance standards: See Division 3. d. Nonconformities: See Division 4. (g) Special provisions None. Sec. 3623. Intensive commercial zone (CI -1). (a) Intent The intensive commercial zone (CI.1) is intended to provide areas for those sales and service functions and businesses whose operations are typically characterized by outdoor display, j storage and/or We of merchandise, by repair of motor vehicles, by outdoor commercial amusement and recreational activities, or by activities or operations conducted in buildings or structures not completely enclosed. Special attention must be directed to- ward buffering the negative aspects of these uses upon any resi- dential uses. (b) Permitted saes 1 (1) Auto• and truck -oriented uses. (2) Building contractor facilities, yards and pre -assembly yards. (3) Clubs. (4) Commercial recreational facilities. (5) Computer supply stores. (6) Equipment rental agencies. (7) Farm implement dealers. (8) Food lockers. (9) Furniture and carpeting stores. (10) Hardware and building supply stores. (11) Lumberyards, and building supply establishments and yards. (12) Marine equipment and supply. (13) Meeting halls. Supp. No. 19 2544 0?3Gs --. ZONING 136-23 (14) Merchandise and product supply centers but not including the retail sale of merchandise on premises. (15) Office uses allowed in the CO -1 zone. (16) Plant nurseries and florist shops. (17) Printing and duplicating operations. (18) Repair shops. (19) Restaurants. (20) Wholesale trade and warehouse establishments for the goods listed in the I.1 zone. (c) Provisional uses (1) Funeral homes subject to the requirements of section 3655. (2) Kennels and veterinary establishments provided they are not located within two hundred (200) feet of an R zone. (3) Retail establishments other than listed when associated with the uses allowed in this zone provided that not more than fifty (50) per cent of the total ground floor area shall be devoted to the retail display of merchandise. (4) Transient housing provided that there is at least three hundred (300) square feet of lot area for each permanent resident and fwo hundred (200) square feet for each tempo- rary resident. (d) Special exceptions (1) Adult binineaaes, such as massage parlors and other sim- ilar establishments which feature nude dancers or models, provided they shall not be located within five hundred (500) feet of a restaurant or another adult business. (2) Cementitious concrete batchimix plants. (3) Dhxellings located above the ground floor of another prin- cipal use permitted in this zone, provided that the density does not exceed one dwelling unit per one thousand eight hundred (1800) square feet of lot area. A maximum of three (3) roomers may reside in each dwelling unit. Supp. No. 19 2545 a3G-5- 136.23 IOWA CITY CODE � (4) Group care facilities provided that there is at least three hundred (300) square feet of lot area for each occupant. (5) Public utilities. (6) Schools—Specialized private instruction. (e) Dimensional requirements (1) Minimum lot area: None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front -20 feet. Side—None. Rear—None. (5) Maximum building bulk;- Height-35 ulk:Height-35 feet. Lot coverage—None. Floor area ratio—L 1 (f) General prouisions. All principal and accessory uses permit- ted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (1) Accessory uses and requirements: See Article M. a. Permitted accessory uses and buildings: See section 36.56. b. Accessory use and building regulations: See section 36.57. c. Off-street parking requirements: See section 36.58. d. Off-street loading requirements: See section 36.59. e. Sign regulations: See section 36.60. f. Fence regulations: See section 36-65. (2) General provisions: See Article IV. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. Supp. No. 19 2546 a34.s ZONING 136-26 Sec. 36.26. General industrial zone (1-1). (a) Intent The general industrial zone (I.1) is intended to pro- vide for the development of most types of industrial firms. Regu- lations are designed to protect adjacent nonresidential zones and other industrial uses within the zone. (b) Permitted uses (1) Building contractor facilities, yards and pre -assembly yards. (2) Communications stations, centers, and studios. (3) Manufactiue, compounding, assembling or treatment of articles or merchandise from the following previously pre- pared materials such as but not limited to bone, canvas, cellophane, cement, cloth, cork, feathers, felt, fiber, fur, glace, hair, horn, leather, metal, paper, plastics, precious or semiprecious metals or stones, rubber, shell, textiles, tobacco, wax, wire, wood (except logging camps, sawmills, and planing mills) and yarns. (4) Manufacture of chemicals and allied products except fer- tilizer manufacturing. (5) Manufacture, processing and packaging of food and kin- dred products (except grain milling and processing, stock. yards and slaughterhouses). (6) Railroad switching, storage and freight yards and mainte- nance facilities. ('T) Research, testing and -experimental laboratories. (8) Wholesale trade and warehouse establishments for goods such as but not limited to automotive equipment, drugs, chemicals and allied products, dry goods and apparel, gro- ceries and related products, electrical goods, hardware, plumbing, heating equipment and supplies, machinery, equip- ment and supplies, tobacco and alcoholic beverages, paper and paper products, furniture and home furnishings. (c) Provisional uses (1) Communication towers provided that a tower's distance from an R zone shall be at least equal to the height of the tower. Supp. Na 19 2549 a3G.5 136.26 IOWA CITY CODE (2) Residence of the proprietor, caretaker or watchman when located on the premises of the commercial or industrial use. (d) Special exceptions. (1) Cementitious concrete batch/mix plants. (2) Heliports and helistops. subject to the requirements of sec- tion 3655. (3) Public utilities. (4) School"pecialized private instruction. (e) Dimensional requirements, (1) Minimum lot area: None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front -20 feet. Side—None. Rear—None. (5) Maximum building bulk: Height -45 feet. Lot coverage—None. Floor area ratio—None. (i) General provisions. All principal and accessory uses permit. ted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (1) Accessory uses and requirements: See Article III. a. Permitted accessory uses and buildings: See section 3656. b. Accessory use and building regulations: See section 3657. c. Off-street parking requirements: See section 36-58. Supp. No. 19 2550 a 3Gs ZONING 136-27 d. Off-street loading requirements: See section 36-59. e. Sign regulations: See section 3660. E Fence regulations: See section 3665. (2) General provisions: See Article IV. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. a performance standards: See Division 3. d. Nonconformities: See Division 4. (g) Special provisions, None. Sec. 36.27. Heavy industrial zone (1.2). (a) Intent The heavy industrial zone (1-2) is intended to provide for heavy or intense industries. The zone is designed primarily for manufacturing and fabrication activities including large-scale or specialized operations having external effects which could have an impact on adjacent less intense commercial or industrial uses. (b) Pv=ittsd uses. (1) Any industrial, commercial or related use, except the fol- lowing uses which shall be prohibited - a Disposal, reduction or dumping of dead animals or offal. b. Fertilizer manufacturing. c. Manufacture of explosives. d. Oil refining and alcohol plants. e. Production of stone, clay, glans materials including Portland cement plants and quarries. E Radioactive waste storage or disposal site. g. Steels mills. h. Stockyards and slaughterhouses. (c) Provisional uses. (1) Extraction of sand, gravel and other raw materials subject to the requirements of section 3655. (2) Uses listed as provisional uses in the I-1 zone subject to the requirements indicated. Supp. Na 19 2551 a3(os 136-27 IOWA CITY CODE 1 (d) Special exceptions (1) Junkyards subject to the requirements of section 36.55. (2) Public utilities. (e) Dimensional requirements (1) , Minimum lot area None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front -100 feet. Side -0 feet. Rear -0 feet. (5) Maximum building bulls: Height -45 feet. Lot coverage—None. Floor area ratio—None. j M Gam-alprouidons All principal and accessory uses permit- ted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (1) Accessory uses and requirements: See Article III. L Permitted accessory uses and buildings: See section 36.56. b. Accessory use and building regulations: See section 36.57. c. Off-street parking requirements: See section 36.58. d. Off-street loading requirements: See section 36.59. e. Sign regulations: See section 36.60. f. Fence regulations: See section 36.65. (2) General provisions: See Article IV. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. Supp. No. 19 2552 a3Gs ZONING 138.76 Note: The provisions in sections 36.72 and 73 are essentially the same as existed in the zoning ordinance prior to the adoption of this chapter. Sec. 36.74. Reserved. DIVISION 3. PERFORMANCE STANDARDS Sec. 36.75. General. (a) New uses. Any use established in the commercial or indus- trial nines after the effective date of this chapter shall comply with the minimum performance standards contained in this division. (b) Esismg uses Existing commercial and industrial uses which are not m compliance with the performance standards contained in this division are exempt except where a use did not comply with performance standards in effect prior to the adoption of this chapter (see section 36.79(b)). Conditions which do not comply shall not be increased in scope or magnitude. Such uses shall be permitted to be enlarged or altered provided that the addition or change conforms with the applicable performance standards. (c) Colgkation. When necessary, the building official may re- quire of the applicant certification by a registered professional engineer or other qualified person, at the expense of the appli- cant, -that the performance standards for a proposed use can be met. Sec. 38.7& Requirements. (a) Smoke. The emission of smoke from any operation or activ- ity shall not exceed a density or equivalent opacity permitted below. For the propose of grading the density or equivalent opac- ity of smoke, the Ringelmann Chart as published by the United States Bureau of Mines shall be used. (1) In the C zones and ORP zone, the emission of smoke darker in shade than Ringelmann No.1 from any chimney, stack, vent, opening or combustion process beyond lot lines is prohibited Supp. Na 19 2663 a3cs 136-76 IOWA CrrY CODE (2) In the I zones, the emission of smoke darker in shade than Ringelmann No. 2 from any chimney, stack, vent, opening or combustion process beyond zone boundary lines is pro- hibited except that the emission of smoke of a shade not to exceed Ringelmann No. 3 is permitted for not more than three (3) minutes total in any one eight-hour period when starting or cleaning a fire. (b) Particulate matter. No person shall operate or cause to be operated any process or furnace or combustion device for the burning of coal or other natural or synthetic fuels without using approved equipment, methods or devices to reduce the quantity of gasborne or airborne solids of fumes emitted into the open air exceeding a rate permitted below at the temperature of five hun. dred (500) degrees Fahrenheit. For the purpose of determining the adequacy of such devices, these conditions shall apply when the percentage of excess air in the stack does not exceed fifty (50) per cent at full load. The foregoing requirement shall be mea• sured by the A.S.MS. Test Code for dust -separating apparatus. All other forms of dust, dirt and fly ash shall be completely eliminated insofar as escape or emission into the open air is ) concerned. (1) In the C zones and ORP zone, the emission of particulate matter suspended in air shall not exceed 0.35 grains (.0023 ounces) per standard cubic foot (70 degrees Fahrenheit and 14.7 psis) of air during any one-hour period or a total from all vents and stacks of one-half (h) pound per hour per acre of lot area during any one-hour period. (2) In the I zones, the emission of particulate matter suspended in air shall not exceed 0.35 grains (.0023 ounces) per star. dard cubic foot (70 degrees Fahrenheit and 14.7 psia) of air during any one-hour period or a total from all vents and stacks of three (3) pounds per hour per acre of lot area during any one-hour period. Vc) Reserved) (d) Toxic matter. The release of airborne toxic matter from any operation or activity shall not exceed the fractional quantities permitted below of the threshold limit values adopted by the Supp. Na 19 2664 02365 ZONING 136.76 American Conference of Governmental Industrial Hygienists. If a toric substance is not listed, verification that the proposed level of toric matter will be safe and not detrimental to the public health or injurious to plant and animal life will be required. The measurement of toric matter shall be on the average of any twenty -four-hour sampling period. (1) In the C zones and ORP zone, the release of airborne toric matter shall not exceed one-eighth (L8) of the threshold limit values beyond lot lines. (2) In the I zones, the release of airborne toric matter shall not exceed one-eighth (1/8) of the threshold limit values beyond zone boundary lines. (e) Odor. The emission of offensive odorous matter from any operation or activity shall not exceed the odor threshold concen- tration defined in the American Society for Testing and Materi. als Method D1391-57 "Standard Method for Measurement of Odor in Atmospheres (Dilution Method)' as the level which will just evoke a response in the human olfactory system when measured as set forth below. (1) In the M and C zones and ORP zone, odorous matter shall not exceed the odor threshold concentration beyond lot lines at ground level or habitable elevation. (2) In the I zones, odorous matter shall not exceed the odor threshold osncentration beyond zone boundary lines at ground level or habitable elevation. W Vibradom Earthborne. vibrations from any operation or ac- tivity shall not exceed the displacement values below. Vibration displacements shall be measured with an instrument capable of simultaneously measuring in three (3) mutually perpendicular directions. The maximum vector resultant shall be less than the vibration displacement permitted. The maximum permitted displacements shall be determined by the following formula D � K Supp. No. 19 2665 a? 3GS i 38.76 IOWA CrrY CODE where D . displacement in inches K = a constant given in table below f = the frequency of the vibration transmitted through the ground in cycles per second Constant K by Type of Vibration Zone and Place of Measurement C zones and ORP zone: At lot lines I Zones: a. At zone bound- ary lines b. At R zone, rec- reational area or school boundary lines Impulsive (at femt one second rest between pub Less than 8 sea which do not pulses per exceed one sec, 24-hour Continuous and duration) period 0.003 0.006 0.015 0.030 0.060 0.150 0.003 0.006 0.015 (g) Glare. Glare or light from any operation and all lighting for parking areas or for the external illumination of buildings or grounds shall be directed or located in a manner such that direct or indirect illumination from the source of light shall not exceed one and one-half (1%) footcandles at lot lines in any R zone or C zone where a residential use is located. (h) Sewage wastes. The following standards shall apply to sew- age wastes at the point of discharge into the public sewer. (1) Acidity or alkalinity shall be neutralized within pH range from six (6.0) to ten point five (10.5). (2) Wastes shall contain no cyanides; no chlorinated solvents in excess of one-tenth (.1) ppm; no sulphur dioxide or ni- trates in excess of ten (10) ppm; no chromates in excess of Supp. No. 19 41?3GS_ ZONING 4 36-76 twenty-five (25) ppm; no chlorine demand greater than fifteen (15) ppm; no phenols in excess of five one -hundredths (.05) ppm. There shall be no more than twenty-five (25) ppm of petroleum oil, nonbiodegradable cutting oils or prod. ucts of mineral oil origin or any combination thereof. There shall be no oil and grease of animal or vegetable origin in excess of three hundred (300) ppm. No waste listed in this section shall contain any insoluble substances exceeding a daily average of five hundred (500) ppm (if exceeded, the city may apply a cost surcharge) or failing to pass a No. 8 standard sieve or having a dimension greater than one. half (1/2) inch. Csor rwtesesea—Sewer standards for industrial waste control, 133.71 et seq. (f) Storage. (1) The open storage of materials and equipment shall not be permitted in any zone except the I.1 and 1-2 zones provided that the following requirements are met: a. Storage of materials and equipment shall be completely swooned from view as required in subsection Q below. b. All combustible material shall be stored in such a way as to include, where necessary, access drives to permit Eros access of fire fighting equipment. (2) The bulk storage of flammable liquids and chemicals, when stored either in underground or aboveground tanks, shall occur no closer to the lot line or any principal building than the distance indicated by the following table: Minimum Separation Distances Water Capacity Underground Aboveground Per Container Containers Containers (gallons) Less than 125 10 feet None 125 to 250 10 feet 10 feet 251 to 500 10 feet 10 feet 501 to 2,000 25 feet 25 feet 2,001 to 30,000 50 feet 50 feet 30,001 to 70,000 50 feet 75 feet 70,001 to 90,000 50 feet 100 feet Supp. No. 19 2667 0?3G.S 136-76 IOWA CITY CODE The distance may be reduced to not less than ten (10) feet for a single container of one thousand two hundred (1,200) gallons' water capacity or less, provided such a container is at least twenty-five (25) feet from any other container of more than one hundred twenty-five (125) gallons' water capacity. 67 Screening. Where a lot occupied by a commercial or indus- trial use abuts or is across a street, highway, alley, or railroad right-of-way from an R or ORP zone, a school, or a recreational area including a park, playground or the Iowa River, screening shall be preserved, planted or constructed and maintained by the owner of the commercial or industrial use in accordance with the provision set forth below. In the instance where a lot occupied by a manufactured housing use, located in an RMH zone, abuts or is across the street from an RR -1 or RS -5 zone, screening, in accor- dance with the provision set forth below, shall also be provided by the owner of the manufactured housing use. (1) Location. a. Except for a use in the ORP zone, screening shall be provided along lot lines or street right-of-way in a manner sufficient to effectively obscure the commer- cial or industrial use from view at ground level within the lot lines of an R or ORP zone, or school, abutting or located across the street from said commercial or in- dustrial use. b. In an ORP zone, screening shall be provided in a loca- tion and manner sufficient to effectively obscure all off-street parking and loading, storage, or other such areas of activity from view within the lot lines of the R zone or school. c. In an RMH zone, screening shall be provided along lot lines or street right-of-way in a manner sufficient to effectively obscure the manufactured housing use from view within the lot lines of residential development in an RR -1 or RS -5 zone. d. In all instances where street right-of-way, which acts to separate the lots on which said uses are located, is Supp. No. 19 2668 � 3Gs ZONING 136.76 one hundred (100) feet or wider, screening shall not be required. (2) Screening materials. . a. A planting screen of pyramidal arbor vitae, the plant- ings being at least three (3) feet high when planted and spaced four (4) feet on center, may be used. Other evergreen varieties may be used if approved by and spaced according to the city forester. The planting bed shall have a minimum dimension of five (5) feet, be free of any impervious surface, and be separated from streets, drives and parking areas by an unmountable curb or barrier in such a manner that sand and salt. water runoff will not damage the screening. b. Where a planting screen cannot be expected to thrive because of intense shade, soil or other conditions, a solid fence of durable construction, an earthen berm covered with grass or low shrubs and/or other accept- able materials which provide maximum visual obscu- rity to a height of six (6) feet at maturity may be used if approved by the city forester. (3) Time of installation. a. If a lot proposed for a commercial or industrial use if located adjacent to or opposite an existing residential use or subdivision in an R zone, or a school, screening as required herein shall be installed prior to occupancy or commencement of a use. The city forester may grant a delay to the seasonal calendar dates of June 1 or November 1, whichever comes first. Similarly, if a lot or space intended for the placement of a manufactured housing use is located adjacent to, or across the street from an existing residential development in an RR -1 or RS -5 zone, the owner of the manufactured housing use shall provide screening as described herein. b. If "a" above is not the case, screening need not be provided until within six (6) months after a building permit is issued for a residential use or a school in as R zone, a final plat of a residential subdivision is Supp. Na 19 2669 0?3G.S 136-76 IOWA CITY CODE approved, or a recreational area is available for use on adjacent or opposite land. (4) Exceptions. a. Where a proposed or existing commercial or industrial use is or will be located adjacent to or opposite a city recreational area, screening may be waived upon the granting of a special exception from the board of ad. justment for the following reasons: 1. Vadequate existing or proposed landscaping within the recreational area is or will be provided. 2. If the nature of a use and the building(s) occupied by the use are not objectionable to the purpose of the recreational area. b. Screening may be waived by the building official where the view is or will be blocked by a change in grade or by the natural or man-made features as determined by the building official. (5) Maintenance. The owner shall keep all screening properly maintained, Eros of trash and litter and all plant material J pruned in such a manner as to provide effective visual obscurity from the ground to a height of at least six (6) feet. Sec. 36.77. Reserved. DIVISION 4. NONCONFORMITIES Sec. 36.78. Intent. It is the intent of this chapter to regulate nonconforming uses and structures because they have been found to be incompatible with permitted uses and structures in the zone involved. Howev- er, single-family uses shall not generally be treated as noncon- forming uses. Nonconforming buildings shall be regulated to pre. vent an increase in the degree of nonconformity. The lawful use of any .building or land existing on the effective date of this chapter may continue although such use or land does not conform with the provisions of this chapter. Supp. No. 19 2670 0?3G.S 136-22 IOWA CITY CODE .1 (2) General provisions: See Article W. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. C. Performance standards: See Division 3. d. Nonconformities: See Division 4. (g) 3pecWprooiziona None. Sec. 36.23. Intensive commercial zone (CI -1). (a) Infest The intensive commercial zone (CI -1) is intended to provide areas for those sales and service functions and businesses whose operations are typically characterized by outdoor display, storage and/or sale of merchandise, by repair of motor vehicles, by outdoor commercial amusement and recreational activities, or by activities or operations conducted in buildings or structures not completely enclosed. Special attention must be directed to- ward buffering the negative aspects of these uses upon any resi- dential uses. (b) Permitted trees (1) Auto- and truck -oriented uses. (2) Building contractor facilities, yards and pre -assembly yards. (3) Clubs. (4) Commercial recreational facilities. (5) Computer supply stores. (6) Equipment rental agencies. (7) Farm implement dealers. (8)Food lockers. (9) Furniture and carpeting stores. (10) Hardware and building supply stores. (11) Lumberyards, and building supply establishments and yards. (12) Marine equipment and supply. (13) Meeting halls. Supp. Na 19 2544 07:3 4-'r ZONING f 36.23 (14) Merchandise and product supply centers but not including the retail sale of merchandise on premises. (15) Office uses allowed in the CO -1 zone. (16) Plant nurseries and florist shops. (17) Printing and duplicating operations. (18) Repair shops. (19) Restaurants. (20) Wholesale trade and warehouse establishments for the goods listed in the I.1 zone. (c) Prouisional uses (1) Funeral homes subject to the requirements of section 3645. (2) Kennels and veterinary establishments provided they are not located within two hundred (200) feet of an R zone. (3) Retail establishments other than listed when associated with the uses allowed is this zone provided that not more than (3it7 (50) per cent of the total ground floor area shall be devoted to the retail display of merchandise. (4) Transient housing provided that there is at least three hundred (300) square feet of lot area for each permanent resident and two hundred (200) square feet for each tempo- rary resident. (d) Special exceptions. (1) Adult businesses, such as massage parlors and other sim- ilar establishments which feature nude dancers or models, provided they shall not be located within five hundred (500) feet of a restaurant or another adult business. (2) Cementitious concrete batch/mix plants. (3) L'wellings located above the ground floor of another prin. cipal use permitted in this zone, provided that the density does not exceed one dwelling unit per one thousand eight hundred (1800) square feet of lot area. A maximum of three (3) roomers may reside in each dwelling unit. Supp. No. 19 2545 C;? 3b.S 136-23 IOWA CITY CODE (4) Group care facilities provided that there is at least three hundred (300) square feet of lot area for each occupant. (5) Public utilities. (6) Schools—Specialized private instruction. (e) Dimensional requirements. (1) Minimum lot area: None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front-20 feet Side—None. Rear—None. (5) Maximum building bulk: Height-35 feet Lot coverage—None. Floor area ratio-1. 1 (f) General prooisions. All principal and accessory uses permit- ted within this zone are subject to the requirements of Articles M and IV, the divisions and sections of which are indicated as follows: (1) Accessory uses and requirements: See Article III. a. permitted accessory uses and buildings: See section 3656. b. Accessory use and building regulations: See section 3657. c. Off-street parking requirements: See section 36.58. I Off-street loading requirements: See section 36.59. e. Sign regulations: See section 3660. f. Fence regulations: See section 36.65. (2) General provisions: See Article N. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. Supp. No. 19 2546 a3�s ZONING 136.26 Sec. 3626. General industrial zone a-1). (a) Intent The general industrial zone (1.1) is intended to pro- vide for the development of most types of industrial Tums. Regu- lations are designed to protect adjacent nonresidential zones and other industrial uses within the zone. (b) Permitted uses (1) Building contractor facilities, yards and pre -assembly yards. (2) Communications stations, centers, and studios. (3) Manufacture, compounding, assembling or treatment of articles or merchandise from the following previously pre- pared materials such as but not limited to bone, canvas, cellophane, cement, cloth, cork, feathers, felt, fiber, fur, glass, hair, horn, leather, metal, paper, plastics, precious or semiprecious metals or stones, rubber, shell, textiles, tobacco, wax, wire, wood (except logging camps, sawmills, and planing mills) and yarns (4) Manufacture of chemicals and allied products except fer. tilizer manufacturing. (S) Manufacture, processing and packaging of food and kin- dred products (except grain milling and processing, stock- yards and slaughterhouses). (6) Railroad switching, storage and freight yards and mainte- nance facilities. (7) Research, testing and -experimental laboratories. (8) Wholesale trade and warehouse establishments for goods such as but not limited to automotive equipment, drugs, chemicals and allied products, dry goods and apparel, gro- ceries and related products, electrical goods, hardware, plumbing, heating equipment and supplies, machinery, equip- ment and supplies, tobacco and alcoholic beverages, paper and paper products, furniture and home furnishings. (c) Provisional uses (1) Communication towers provided that a tower's distance from an R zone shall be at least equal to the height of the tower. Supp. Na 19 2549 ,73GS C 136-26 IOWA CITY CODE (2) Residence of the proprietor, caretaker or watchman when located on the premises of the commercial or industrial use. (d) Special exceptions (1) Cementitious concrete batch/mix plants. (2) Heliports and helistops subject to the requirements of sec- tion 36.58. (3) Public utilities. (4) Schools—Specialized private instruction. (e) Dimensional requirements (1) Minimum lot area None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front -20 feet ' Side—None. Rear—None. (5) Maximum building bulk: Height -45 feet Lot coverage—None. Floor area ratio—None. (fl General provisions All principal and accessory uses permit- ted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (1) Accessory rises and requirements: See Article M. a. Permitted accessory uses and buildings: See section 36.56. b. Accessory use and building regulations: See section 36.57. c. Off-street parking requirements: See section 36-58. Supp. No. 19 2550 a3i-s ZONING 136-27 d. Off-street loading requirements: See section 3659. e. Sign regulations: See section 3660. E Fence regulations: See section 36-65. (2) General provisions: See Article IV. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. c. Performance standards: See Division 3. d. Nonconformities: See Division 4. (g) Special provisions None. Sec. 3827. Heavy industrial zone (I.2). (a) Intent The heavy industrial zone (1-2) is intended to provide for heavy or intense industries. The zone is designed primarily for manufacturing and fabrication activities including large-scale or specialized operations having external effects which could have an impact on adjacent less intense commercial or industrial U049. (b) Permitted uses (1) Any industrial, commercial or related use, except the fol- lowing uses which shall be prohibited: a. Disposal, reduction or dumping of dead animals or offal. b. Fertilizer manufacturing. c. Manufacture of explosives. d. Oil refining and alcohol plants. e. Production of atone, clay, glass materials including Portland cement plants and quarries. C Radioactive waste storage or disposal site. g. Steels mills. h. Stockyards and slaughterhouses. (c) Provisional uses (1) Extraction of sand, gravel and other raw materials subject to the requirements of section 36.55. (2) Uses listed as provisional uses in the I.1 zone subject to the requirements indicated. Supp. Na 19 2551 a36.S W27 IOWA CITY CODE (d) Special exceptions (1) Junkyards subject to the requirements of section 36.55. (2) Public utilities. (e) Dimensional requirements (1) Minimum lot area None. (2) Minimum lot width: None. (3) Minimum lot frontage: None. (4) Minimum yards: Front -100 feet. Side -0 feet. Rear -0 feet. (5) Maximum building bulk: Height -45 feet. Lot coverage—None. Floor area ratio—None. 1 (fl General provisions, All principal and accessory uses permit- ted within this zone are subject to the requirements of Articles III and IV, the divisions and sections of which are indicated as follows: (1) Accessory uses and requirements: See Article IM L Permitted accessory uses and buildings: See section 36.66. b. Accessory use and building regulations: See section 36.67. c. Off-street parking requirements: See section 36.58. I Off-street loading requirements: See section 36.59. e. Sign regulations: See section 36.60. L Fence regulations: See section 3665. (2) General provisions: See Article IV. a. Dimensional requirements: See Division 1. b. Tree regulations: See Division 2. Supp. No. 19 2552 a3�s ZONING 136.76 Note: The provisions in sections 36-72 and 73 are essentially the same as existed in the zoning ordinance prior to the adoption of this chapter. Sec. 36-74. Reserved. DIVISION 3. PERFORMANCE STANDARDS See. 36-73. General. (a) Nem uses Any use established in the commercial or indus. trial zones after the effective date of this chapter shall comply with the minimum performance standards contained in this division. (b) E=sting uses Existing commercial and industrial uses which are not m compliance with the performance standards contained in this division are exempt except where a use did not comply with performance standards in effect prior to the adoption of this chapter (see section 36.79(b)). Conditions which do not comply Wall not be increased in scope or magnitude. Such uses shall be permitted to be enlarged or altered provided that the addition or change conforms with the applicable performance standards. (c) Cert4Tcadam When necessary, the building official may re- quire of the applicant certification by a registered professional engineer or other qualified person, at the expense of the appli- cant,'that the performance standards for a proposed use can be met. Sec. 3676. Requirements. (a) Snwke. The emission of smoke from any operation or activ- ity shall not exceed a density or equivalent opacity permitted below. For the purpose of grading the density or equivalent opac- ity of smoke, the Rfngelmann Chart as published by the United States Bureau of Mines shall be used. (1) In the C zones and ORP zone, the emission of smoke darker in shade than Ringelmann No.1 from any chimney, stack, vent, opening or combustion process beyond lot lines is prohibited. Supp. Na 19 2663 sacs 13&76 IOWA CITY CODE ^\ (2) In the I zones, the emission of smoke darker in shade than Ringelmann No. 2 from any chimney, stack, vent, opening or combustion process beyond zone boundary lines is pro- hibited except that the emission of smoke of a shade not to exceed Ringelmann No. 3 is permitted for not more than three (3) minutes total in any one eight-hour period when starting or cleaning a fire. (b) Particulate matter. No person shall operate or cause to be operated any process or furnace or combustion device for the burning of coal or other natural or synthetic fuels without using approved equipment, methods or devices to reduce the quantity of gasborne or airborne solids of fumes emitted into the open air exceeding a rate permitted below at the temperature of five hun- dred (500) degrees Fahrenheit. For the purpose of determining the adequacy of such devices, these conditions shall apply when the percentage of excess air in the stack does not exceed fifty (50) per cent at full load. The foregoing requirement shall be mea. sured by the A.SXX. Test Code for dust -separating apparatus. All other forms of dust, dirt and fly ash shall be completely eliminated insofar as escape or emission into the open air is ) concerned. (1) In the C zones and ORP zone, the emission of particulate matter suspended in air shall not exceed 0.35 grains (.0023 ounces) per standard cubic foot (70 degrees Fahrenheit and 14.7 psia) of air during any one-hour period or a total from all vents and stacks of one-half ph) pound per hour per acre of lot area during any one-hour period. (2) In the I zones, the emission of particulate matter suspended in air shall not exceed 0.35 grains (.0023 ounces) per stan. dard cubic foot (70 degrees Fahrenheit and 14.7 psia) of air during any one-hour period or a total from all vents and stacks of three (3) pounds per hour per acre of lot area during any one-hour period. ((c) Reserved] (d) Toxic matter. The release of airborne toxic matter from any operation or activity shall not exceed the fractional quantities permitted below of the threshold limit values adopted by the Supp. No. 19 2664 0734-5- ZONING 136-76 American Conference of Governmental Industrial Hygienists. If a toxic substance is not listed, verification that the proposed level of toric matter will be safe and not detrimental to the public health or injurious to plant and animal life will be required. The measurement of toxic matter shall be on the average of any twenty -four-hour sampling period. (1) In the C zones and ORP zone, the release of airborne toxic matter shall not exceed one-eighth (1/8) of the threshold limit values beyond lot lines. (2) In the I zones, the release of airborne toxic matter shall not exceed one-eighth (1/8) of the threshold limit values beyond zone boundary lines. (e) Odor. The emission of offensive odorous matter from any operation or activity shall not exceed the odor threshold concen. tration defined in the American Society for Testing and Materi- als Method D139157 "Standard Method for Measurement of Odor in Atmospheres (Dilution Methal)" as the level which will just evoke a response in the human olfactory system when measured as set forth below. (1) In the M and C zones and ORP zone, odorous matter shall not exceed the odor threshold concentration beyond lot lines at ground level or habitable elevation. (2) In the 1 zones, odorous matter shall not exceed the odor threshold concentration beyond zone boundary lines at ground level or habitable elevation. W Prbration. Earthborne. vibrations from any operation or ac- tivity shall not exceed the displacement values below. Vibration displacements shall be measured with an instrument capable of simultaneously measuring in three (3) mutually perpendicular directions. The maximum vector resultant shall be less than the vibration displacement permitted The maximum permitted displacements shall be determined by the following formula: D = K f Supp. No. 19 2665 �3Gs 136.76 IOWA CrrY CODE where D - displacement in inches K = a constant given in table below f = the frequency of the vibration transmitted through the ground in cycles per second Constant K by Type of Vibration Zone and Place of Measurement C zones and ORP zone: At lot lines I Zones: a At zone bound- ary lines b. At R zone, rec- reational area or school boundary lines Impulsive (at least one second rat between pul- Less than 8 on which do not pulses per exceed one sea 24-hour Continuous and duration) period 0.003 0.006 0.015 0.030 0.060 0.150 0.003 0.006 0.015 (g) Glare Glare or light from any operation and all lighting for parking areas or for the external illumination of buildings or grounds shall be directed or located in a manner such that direct or indirect illumination from the source of light shall not exceed one and one-half (1.%) footcandles at lot lines in any R zone or C zone where a residential use is located. (h) Sewage wastes The following standards shall apply to sew- age wastes at the point of discharge into the public sewer. (1) Acidity or alkalinity shall be neutralized within pH range Brom six (6.0) to ten point five (10.5). (2) Wastes shall contain no cyanides; no chlorinated solvents in excess of one-tenth (.1) ppm; no sulphur dioxide or ni. trates in excess of ten (10) ppm; no chromates in excess of Supp. Na 19 2666 a3cs ZONING 136-76 twenty-five (25) ppm; no chlorine demand greater than fifteen (15) ppm; no phenols in excess of five one -hundredths (.05) ppm. There shall be no more than twenty-five (25) ppm of petroleum oil, nonbiodegradable cutting oils or prod- ucts of mineral oil origin or any combination thereof. There shall be no oil aid grease of animal or vegetable origin in excess of three hundred (300) ppm. No waste listed in this section shall contain any insoluble substances exceeding a daily average of five hundred (500) ppm (if exceeded, the city may apply a cost surcharge) or failing to pass a No. 8 standard sieve or having a dimension greater than one- half (1/2) inch. Cron referenc standards for industrial warts control. 133-71 at smq. (i) stoma (1) The open storage of materials and equipment shall not be permitted in any zone except the I.1 and I-2 zones provided that the following requirements are met: a. Storage of materials and equipment shall be completely screened from view as required in subsection (.0 below. b. All combustible material shall be stored in such a way as to include, where necessary, access drives to permit bw access of fire fighting equipment. (2) The bulk storage of flammable liquids and chemicals, when stored either in underground or aboveground tanks, shall occur no closer to the lot line or any principal building than the distance indicated by the following table: Minimum Separation Distances Water Capacity Underground Aboueground Per Container Containers Containers (gallons) Less than 125 10 feet None 125 to 250 10 feet 10 feet 251 to 500 10 feet 10 feet 501 to 2,000 25 feet 25 feet 2,001 to 30,000 50 feet 50 feet 30,001 to 70,000 50 feet 75 feet 70,001 to 90,000 50 feet 100 feet Hupp. Na 19 2667 d 365 136.76 IOWA CITY CODE The distance may be reduced to not less than ten (10) feet for a single container of one thousand two hundred (1,200) gallons' water capacity or less, provided such a container is at least twenty-five (25) feet from any other container of more than one hundred twenty-five (125) gallons' water capacity. (7) Screening Where a lot occupied by a commercial or indus- trial use abuts or is across a street, highway, alley, or railroad right-of-way from an R or ORP zone, a school, or a recreational area including a park, playground or the Iowa River, screening shall be preserved, planted or constructed and maintained by the owner of the commercial or industrial use in accordance with the provision set forth below. In the instance where a lot occupied by a manufactured housing use, located in an RMH zone, abuts or is across the street from an RR -1 or RS -5 zone, screening, in accor- dance with the provision set forth below, shall also be provided by the owner of the manufactured housing use. (1) Location. a. Except for a use in the ORP zone, screening shall be provided along lot lines or street right-of-way in a manner sufficient to effectively obscure the commer. cial or industrial use from view at ground level within the lot lines of an R or ORP zone, or school, abutting or located across the street from said commercial or in- dustrial use. b. In an ORP zone, screening shall be provided in a loca- tion and manner sufficient to effectively obscure all off-street parking and loading, storage, or other such areas of activity from view within the lot lines of the R zone or school. c. In an RMH zone, screening shall be provided along lot lines or street right-of-way in a manner sufficient to effectively obscure the manufactured housing use from view within the lot lines of residential development in an RR -1 or RS -5 zone. d. In all instances where street right-of-way, which acts to separate the lots on which said uses are located, is Supp. No. 19 2668 0?3GS ZONING 13676 one hundred (100) feet or wider, screening shall not be required. (2) Screening materials. . a. A planting screen of pyramidal arbor vitae, the plant- ings being at least three (3) feet high when planted and spaced four (4) feet on center, may be used. Other evergreen varieties may be used if approved by and spaced according to the city forester. The planting bed shall have a minimum dimension of five (5) feet, be free of any impervious surface, and be separated from streets, drives and parking areas by an unmountable curb or barrier in such a manner that sand and salt- water runoff will not damage the screening. b. Where a planting screen cannot be expected to thrive because of intense shade, soil or other conditions, a solid fence of durable construction, an earthen berm covered with grass or low shrubs and/or other accept- able materials which provide maximum visual obscu- rity to a height of six (6) feet at maturity may be used if approved by the city forester. (3) Time of installation. a. If a lot proposed for a commercial or industrial use if located adjacent to or opposite an existing residential use or subdivision in an R zone, or a school, screening as required herein shall be installed prior to occupancy or commencement of a use. The city forester may grant a delay to the seasonal calendar dates of June 1 or November 1, whichever comes first. Similarly, if a lot or space intended for the placement of a manufactured housing use is located adjacent to, or across the street from an existing residential development in an RR -1 or RS -5 zone, the owner of the manufactured housing use shall provide screening as described herein. b. If "a" above is not the case, screening need not be provided until within six (6) months after a building permit is issued for a residential use or a school in an R zone, a final plat of a residential subdivision is Supp. Na 19 2669 C�3G,S 136.76 IOWA CITY CODE approved, or a recreational area is available for use on adjacent or opposite land. (4) Exceptions. a. Where a proposed or existing commercial or industrial use is or will be located adjacent to or opposite a city recreational area, screening may be waived upon the granting of a special exception from the board of ad- justment for the following reasons: 1. If adequate existing or proposed landscaping within the recreational area is or will be provided. 2. If the nature of a use and the building(s) occupied by the use are not objectionable to the purpose of the recreational area. b. Screening may be waived by the building official where the view is or will be blocked by a change in grade or by the natural or man-made features as determined by the building official. (5) Maintenance. The owner shall keep all screening properly 1 maintained, free of trash and litter and all plant materials j pruned in such a manner as to provide effective visual obscurity from the ground to a height of at least six (6) feet. Sec. 36.77. Reserved. DI MON 4. NONCONFORMrMS Sec. 36.78. Intent. It is the intent of this chapter to regulate nonconforming uses and structures because they have been found to be incompatible with permitted uses and structures is the zone involved. Howev- er, single-family uses shall not generally be treated as noncon- forming uses. Nonconforming buildings shall be regulated to pre- vent an increase in the degree of nonconformity. The lawful use of any ,building or land existing on the effective date of this chapter may continue although such 6e or land does not conform with the provisions of this chapter. Supp. Na 19 2670 o� 3G.S b �aCGXCG•C �� Jr ��J� /��}• MEMORANDUM TO: City of Iowa City FROM: Wayne Kern DATE: December 18, 1984 RE: FRANCHISE FEE INCREASE _. Question presented: Pursuant to the Cable Communications Policy Act of 1984, may a city unilaterally increase the cable television franchise fee from 38 to 5% absent a specific agreement or ordinance provision permitting it to do so? The short answer to this question is, in my opinion, an absolute no. A longer answer, and perhaps a more polite one requires somewhat further explanation. In February of 1984, Heritage Cablevision, Inc. and Hawkeye CableVision Corporation (through its parent company, Americation Television and Communications Corporation) requested that the cable television franchise for Iowa City be transferred to Heritage Cablevision, Inc. or its nominee, Cablevision Associates VII. That transfer process was subjected to extensive delays, which were interposed by the City having a desire, and the right to consider the possibility of its operating the system under municipal ownership, and also insisting upon a strict adherance to the notice provisions by the grantee. After numerous phone calls and many meetings, a meeting was finally held on August 17, 1984, with Messrs. Dale Helling, David Brown, Bill Terry, and Drew Shaffer attending on behalf of the City and the Broadband Telecommunications Committee, and Messrs. James Cownie, Wayne Kern and Bill Blough attending on behalf of Heritage Cablevision. At this meeting, extensive discussions were held over a four and one- half hour period, during which the City's position was reviewed in some detail, and the individuals all had an opportunity to express their views. As an aside, I requested and was furnished a copy of the tape recordings of that meeting on Monday, December 17, and reviewed them Monday afternoon and evening and, in spite of the fact that Mr. Terry accused me of thinking that they were a bunch of dumb country bumpkins and that we were lying through our teeth about the number and percentage of our a 547 - 2 - cable television systems that have tiering, we, in fact, did not think those gentlemen to be country bumpkins and, more importantly, from our perspective, we were not then, nor are we now, nor will we in the future, lie through our teeth or any other part of our anatomy. We, in fact, felt that all of the individuals from the City represented the City's position both ably and well. The end product of that four and one-half hour meeting, and further negotiations by telephone and exchange of documents resulted in an agreement between the City of Iowa City and Heritage Cablevision, dated the 28th day of August, that provided the basis of the agreement upon which, and pursuant to which, the City of Iowa City was ultimately willing to agree to the transfer of the franchise from Hawkeye to Heritage Cablevision, Inc. and/or one of its limited partnerships. Heritage Cablevision entered into this agreement even though its legal advisors informed it that the City had no right to extract such promises from Heritage in exchange for the mere approval of the transfer. The City Council and the Broadband Telecommunications Commission was fully aware that its legal staff, likewise, did not believe that the City could extract such promises without being deemed to be "unreasonably withholding approval of the sale." This advice to the City was given in a memorandum from Robert Jansen, City Attorney, and David Brown, Assistant City Attorney, dated March 18, 1984. You have before you for consideration a proposed ordinance that would amend Chapter 14, Article Iv, Division 2 of the Broadband Telecommunications Franchise Enabling Ordinance. Pursuant to this proposed ordinance, the existing Section 14-73(c) would be repealed and a new provision would be substituted in its place permitting the City to increase the franchise fee to be paid pursuant to that Ordinance from 38 to 58. In the preambletory notice of public hearing that accompanied the proposed amendment, there is an indication that these chanages have been agreed upon and/or supported by Heritage Cablevision, Inc. in its agreement with the City of Iowa City dated August 28, 1984. Heritage Cablevision takes exception to both the proposed increase and any reference to the fact that it supports an increase in the franchise fee. I communicated our disagreement with regard to the City's position in a letter to David Brown dated November 28, 1984, wherein I stated in essence that we did not agree to support a unilateral increase in the franchise fee from 38 to 58 by the City. Article 2.A. of our August 28 agreement with the City sets forth in clear and unambiguous terms the exact agreement that we have with the City of Iowa City with regard to how X34% - 3 - the increase in the franchise fee was to be obtained. That Section is as follows: 2. FRANCHISE FEE A. Upon transfer of the franchise, the grantee shall support the City in filing a petition for special relief with the Federal Communications Commission (FCC) requesting a franchise fee waiver to authorize an annual franchise fee of five percent (58) of Annual Gross Revenues derived from the operation of the system, and an extra services package for the City administered funding of local access channel oeprations. The five percent (58) franchise fee shall become effective upon the date of approval by the FCC. Said support shall include, but not be limited to, the submission to the City by grantee of a letter to the FCC in support of the requested franchise fee increase, the text of which has been agreed upon by the parties and is attached to this agreement. It is unfortunate, perhaps, that the waiver is no longer available from the FCC in that the Cable Communications Policy Act of 1984 (sometimes referred to as 4103 and S.66) terminated the FCC's authority to grant waivers with regard to franchise fees. It is, however, this procedure and this procedure only, that Heritage agreed to. The tapes of the August 17 meeting make it abundantly clear that the individuals in attendance at that meeting, on both sides, were well aware of the potential impact of 4103, if adopted. This legislation, as well as the status of the law as it then existed following the Supreme Court decision in Crisp, and following the FCC's Nevada decision with regard to tiering, and, in fact spent a great deal of time during the course of the four and one-half hour meeting talking about.the right of Heritage Cablevision to tier the channel line-up to put the broadcast channels only on the basic tier and narrow the City's right to rate regulation to that basic line-up. I think a short transcription of a portion of the tape near the end of this meeting will be helpful. It is as follows: CONNIE: I wonder if it would be helpful just to quickly run through those things one more time where you think we stand and maybe one last two -minute caucus and a3�7 4 _ then wrap it up. HELLING: You mean these four or do you want to go through all these points? COWNIE: No, no. Where the agreement is. HELLING: Okay. The joint petition for five percent. Now that's obviously with appropriate understandings. I think we all agree that there is some legislation in the works that if that passes, you know, that - takes precedence over anything that the FCC might rule on. COWNIE: What now? Explain that to me. You mean 4103? HELLING: Yeah -- or if 4103 doesn't pass, Jim, next year it's going to have another number, you know. COWNIE: Okay. I just want to understand what you're -- what is implicit -- or what your editorial comment meant. I don't want to pull the wool over your eyes or HELLING: No, I understand. I understand. COWNIE: What are you saying exactly? HELLING: Well, I'm saying that COWNIE: If 4103 doesn't pass HELLING: Okay, let's use an example. We go in and petition for a 5% franchise fee and FCC says "No." COWNIE: Okay. HELLING: 4103 passes six monts or a year down the line or becomes effective then or whatever, and it allows up to 5% without any FCC approval or anything. a347 - 5 - Well then certainly the city would retain the right to at that time to pursue that again. Okay? Does that make it clear? COWNIE: Is that okay? Okay. HELLING: Again, the other provisions in whatever language -- hell, I don't know what's -- what the final substance of any legislation is going to be, but I think -- that's the example that I'm talking about. I think that works both ways. COWNIE: Right. I mean I think that's the important point, that it can cut both ways. HELLING: Yeah. COWNIE: Okay., HELLING: As far as the NPO funding at $125,000, I think that's something that, again, would be part of the petition and so forth. Obviously, if there is -- I guess I would say that if there isn't any movement from the $75,000, then we may have to look at what other alternatives exist. That seems to be the thing that we're stuck on. COWNIE: Okay. HELLING: The 40 cents -- again, I'm more than willing to sit down and talk with Neil about it, and if he can support that, as long as it would be done through the agreed upon process under the current franchise where you could petition prior to the time FCC rules and it could become effective at the same ,5G7 time, and so forth, I'm at least willing to support that to Neil. COWNIE: Okay. HELLING: And if he will support it to the Council... And then on the fourth proposal which is the automatic, we've talked about some alternatives there as part of this agreement. Politically, I think it's probably unacceptable. COWNIE: Okay. HELLING: And that's basically... COWNIE: That's it? HELLING: Yeah. COWNIE: Okay. Shall we take a minute, just a minute or two and...? KERN: If you want to. COWNIE: Will you excuse us just a couple of mintes? I think that the foregoing transcription makes it quite clear that the City did not intend to be bound by Section 2.A. in the event that it failed to receive a waiver upon Petition for special Relief from the FCC in the event that 4103, now S.66, became law and gave the cities the right to automatically increase the franchise fee to 58. Now, however, we have the City saying since 4103 does not, as adopted, permit the City to increase the franchise fee to 58 absent a specific provision in the franchise permitting them to do so, it now wants to say that the provision of 2.A. is not an agreement to join and support the City in filing a Petition for Special Relief with the Federal Communications Commission but is, in fact, an agreement to permit the City to increase the franchise fee under the provisions under the Communications Policy Act of 1984. We respectfully disagree. The City, as drafter of the August 28 agreement, was in the unique position of being able to protect itself from the eventuality of 4103 being adopted simply by negotiating for and inserting a paragraph to the effect that in the event 4103 permits franchising authorities to charge a fee in excess of 38, then Heritage agrees that such fee shall x367 - 7 - automatically become effective. But it chose not to do so and elected the application for a waiver as its sole remedy. I think that it is also important to point out that while 4103 did define the rights of franchising authorities, it also took away something from the cable television operators. One of the things that it obviously took away was the impact of the Nevada ruling. As the grantee under the Iowa City franchise ordinance, Heritage cannot now tier the channel line-up in order to minimize the remaining two years of basic service rate regulation. Heritage can, and does intend to, effective January 1, 1985, take a 59 increase in its basic subscriber fees as permitted by 4103. It does not, however, intend to also put into effect the additional 40 -cent rate increase approved by the City earlier, the newspaper editorial to the contrary notwithstanding. Unlike the pre -4103 status of things, Section 622(g)(2)(B) recites that "in the case of any franchise in effect on the date of the enactment of this title, payments which are required to be made by the cable operator during the term of such franchise for, or in support of the use of, public, educational, or governmental access facilities are not included as a part of the Act's definition of 'franchise fee.'" We believe, therefore, that the City can legitimately require (contrary to the third full paragraph of my letter dated November 28, 1984) Heritage Cablevision to make the access payment required by Section I.C. of the August 28 agreement, and we would intend to make those payments upon appropriate notification from the City that the nonprofit organization has been approved by the City. WK/jh a347 City of Iowa CV_ MEMORANDUM Date: December 13, 1984 To: The Honorable Mayor and City Council From: Robert Jansen, City Attorney V�0�5 David Brown, Assistant City Attorney Re: Ordinance amending the Broadband Telecommunications Franchise Enabling Ordinance At your regular meeting on December 18, 1984, you will have before you for adoption an ordinance amending Chapter 14, Article IV, Division 2 ("Broadband Telecommunications Franchise Enabling Ordinance") of the Code of Ordinances of the City of Iowa City, Iowa. The purpose of this ordinance is to amend certain sections of said enabling ordinance, including increasing the annual franchise fee from 3% to 5%, requiring franchise fee payments to be paid quarterly rather than annually, and providing for continued support, includ- ing funding, by the grantee for all local access channel functions and equipment. It is our position that this amendment process is merely a formality to incorporate into the enabling ordinance those changes already agreed upon and/or supported by Heritage Cablevision Inc. in the August 28, 1984, agreement wherein the City granted approval of the transfer of the broadband telecommunications franchise from Hawkeye CableVision to Heritage. 8637(a) of the recently passed Cable Communications Act provides, in pertinent part, as follows: "The provisions of any franchise in effect on the effective date of this title, including any such provisions which relate to the designation, use, or support for the use of channel capacity for public, educational, or governmental use...remain in effect, subject to the express provisions of.this title, and for not longer than the then current remaining term of the franchise as such franchise existed on such effective date." The "effective date". of the Act is December 29, 1984. To obviate any question that said changes to the enabling ordinance agreed upon and/or supported by Heritage in August are a part of the franchise and hence "grandfathered in," it has been recommended to us by Preston, Thorgrimson, Ellis & Holman, the law office located in Washington, D.C. and retained by the City for consultation regarding cable TV matters, that the City formally incorporate said changes into the enabling ordinance prior to the effective date, December 29th, of the Cable Act. Our office concurs in that recommen- dation and advises that the ordinance before you be given all three readings and duiat alrhvpermit thamendments tobepblshed and formalymadeeffectie prior to December 29th. bdw4/4 cc: Neal Berlin Dale Helling Drew Shaffer A.30 " City of Iowa Cif MEMORANDUM Date: December 14, 1984 To: City Council From: Dale Helling, Assistant City Manager Drew Shaffer, Broadband Telecommunications Commission Re: Increase in Basic Service Rates for Cable TV Heritage Cablevision plans to increase monthly basic service rates by forty-five cents as of January 1, 1985. This is not directly related to the forty cent increase approved by Council on November 6, 1984. The Cable Communications Policy Act of 1985, signed into law by the President on October 30, 1984, allows cable companies to raise their rates by up to 5% per year starting January 1, 1985, without City Council approval. Heritage has announced its intention to do this. The forty cent increase in the basic service rate approved by Council on November 6 was part of the negotiated contract with Heritage, which stated that the Council would consider this increase, to become effective only when the City receives a 5% franchise fee. This contract was negotiated and executed before the automatic 5% annual increase was incorporated into the then pending legislation. The proposed 5% franchise fee for the City is projected to help cover costs incurred in the regulation and administration of cable television and to support the promotion of local access video programming. The City cable ordinance specifies that the franchise fee revenue is to be used for these purposes. We have reviewed the videotape of the City Council meeting of August 27, 1984. Mr. Nile McDonald made comments at that time regarding Heritage's support for the efforts of the City to receive a 5% franchise fee waiver from the FCC and the forty cent increase the Council was considering as a quid pro quo for that increase. Mr. McDonald also stated that it was not the plan of Heritage to institute any immediate rate increases and that the pro forma the company was sending the City would indicate what rate increases the company did plan to initiate. That information was received (copy attached) and indicates a forty cent increase in the basic service rates for 1985, the amount approved by Council. Later in the meeting Mr. McDonald stated that one of the last things Heritage wished to do when entering a community is to raise rates. bj/sp as7o IOWA CITY COMPLEX ending • • of subs -basic N of subs -HBO • of subs -Cinemas 0 of subs -Extra • of subs -churn ending rates for the year rates -basic rates -HBO rates -Cinemax rates-EYt'ra rates -install • of months revenue -basic revenue -HBO revenue -Cinemax revenue -Extra revenue -installation revenue -other 'revenue -advertising Total Revenue 7 Increase System Expenses Pay/Programming Expenses 5,0, d A Expenses Operating Expense& Cashflow Cashflow Margin Depreciation/Amortization Net Operating Income Capital Requirements 1985 1986 1987 1988 1989 1990 1991 1992 1993 14935 15370 15775 16`190 16615 17015 17410 17900 18200 " 9413 9687 9942 10204 10472 10724 10973 11282 11585 6589 6781 6960 7143 7330 7507 7681 7897 8110 1494 1537 1578 1619 1662 1702 1741 1790 1838 4839 4980 5111 5246 5383 5513 5641 5800 5956 9.30 9.77 10.25 10.77 11.30 11.87 12.46 13.09 13.74 10.95 11.50 11.50 12.07 12.07 12.68 12.68 13.31 13.31 10.95 11.50 11.50 12.07 12.07 12.68 12.68 13.31 13.31 2.10 2.21 2.21 2.32 2.32 2.43 2.43 2.55 2.55 5.25 5.25 5.51 5.51 5.79 5.79 6.08 6.08 6.08 12 12 12 12 12 12 12 12 12 1607151 1733294 1870405 2015633 2172031 2337987 2512919 2706397 2905296 1218854 1286228 1354120 1424517 1497809 1573653 1650143 1734879 1826115 853178 900359 947884 997162 1048326 1101557 1155100 1214415 1278290 37088 39139 41205 43347 43571 47885 50213 52791 55539 14986 15356 16320 16746 18039 18270 19542 20602 21719 14000 14000 14000 14000 14000 14000 14000 14000 14000 3745258 3988376 4243935 4511404 4793576 5093352 5401916 5743084 $'100959 17.6% 6.51, 6.4% 6.3X. 6.3X. 6.2X. S. ix 6. 3;.' 6.2X. 372131 394460 418109 442590 468430 495487 523208 553785 585442 319863 339089 359454 380501 402676' 425978 449787 476097 503324 1388624--1469790- 1557874 1649090 1745409 1848186 1949495 2063401 2181348 2078618 2203339 2335437 2472182 2616514 27b'7651 2922491 3093283 3270114 1666640 1785038 1908498 2039222 2179062 2325701 2479426 2649802 2830845 44.5% 44.8% 45.0% 45.2% 45.4% 45.7% 45.9% 46.1% 46.4% 973459 996574 1007318 1019339 1033420 '1046922 1059842 1072968 1OB6335 693181 788464 901180 1019883 1145642 1278779 1419583 1576834 1744511 397500 130300 115000 159500 162000 146300 ' 148700 151000 154200 Projections include subscriber■ in Coralville, Iowa City, and University Heights. Cashflow definition: Before taxes, interest, depreciation, and amortization. CI F o L E 0 NOV 5 MAP MARIAN K. KARR CITY CLERK (1) I } }-. f • Heritage P.O. gat 4Av S46 Southgate Avenue CAMSON v Iow 319 351 3984 Iowa 240 To /01 of o�rtin, C p�yccty Qcij4 , (�2. 5 o�•y0 1 MARIAN K KARR CITN.CLERK (1)':,'. • ,J ORDINANCE NO. 84-3218 ORDINANCE AMENDING CHAPTER 14, ARTICLE IV, DIVISION 2 ("BROADBAND TELECOMMUNICATIONS FRANCHISE ENABLING ORDINANCE") OF THE CODE OF ORDINANCES OF THE CITY OF IOWA CITY, IOWA. SECTION I. PURPOSE. The purpose of this ordinance is to amend certain sections of the "Broadband Telecommunications Fran- chise Enabling Ordinance" to formally reflect changes in said enabling ordinance agreed upon and/or supported by Heritage Cablevision, Inc. in its agreement with the City of Iowa City, Iowa, dated August 28, 1984, wherein the City granted approval of the transfer of the broadband telecommunications franchise from Hawkeye CableVision, Inc. to Heritage Cablevision, Inc. Said amendments include increasing from the annual franchise fee payments three percent to five percent, requiring franchise fee payments to be paid quar- terly rather than annually and providing for continued support, including funding, by the grantee for all local access channel functions and equipment regardless of whether such access facilities remain the responsibility of the grantee or whether said responsibility is turned over to a non-profit organization by the City. SECTION II. AMENDMENT. The following sections ot LnapLer 14, Article IV, Division 2, of the Code of Ordinances of the City of Iowa City, Iowa, are amended as follows: 1. Section 14-73(c) is hereby repealed and substituted in its place is the following new Section 14-73(c): (c) Annual franchise payment: Grantees of a franchise hereunder ( shall pay to the city an annual fee in an amount equal to five (5) percent of the "annual gross revenues," as defined herein, in lieu of all other city's permits and fees,to be utilized by the city to offset it regulatory and administrative costs and to maximize awareness and use of the access capacity. The franchise payment shall be in addition to any other payment owed to the a 3 7/ Or�3nce No. 84-3218 Pagt 2 city by the grantee and shall not be construed as payment in lieu of municipal property taxes or other state, county or local taxes. 2. Section 14-73(d)(1) is hereby repealed and substituted in its place is the following new Section 14-73(d)(1): (d) Method of compensation; interest: (1) Sales taxes or other taxes levied directly on a per subscription basis and collected by the grantee shall be deducted from the local annual gross revenues before computation of sums due the city is made. Payments due the city under the provisions of subsection (c) above shall be computed quarterly as of March 31, June 30, September 30 and December 31 for the respec- tive quarters of each year ending on said dates and shall be paid quarterly within three (3) months after each respective computation date at the office of the city clerk during the city clerk's regular business hours. The payment period shall commence as of the effective date of the franchise. The city shall be furnished a statement with each payment, by a certified public accountant, reflecting the total amounts of gross revenue and the above charges deductions and computations, for the quarterly payment period covered by the payment. 3. Section 14-83(a) is hereby repealed and substituted in its place. is the new Section 14-83(a): Sec. 14-83(a) Channels to be pro- vided. (a) Public access channel; Support for access facilities: The grantee shall provide at least one dedicated, noncommercial a 371 Or'3nce No. 84-3218 Page 3 public access channel, associated production equipment and neces- sary staff production assistance to be made available for the first five (5) minutes of live production to the public at no charge on a first come -first served nondiscriminatory basis. Hours of availability for use of such channel shall be specified in the application for franchise. The grantee shall regularly make information available to the public on the availability of the access channels with their monthly billing. The grantee shall, in cooperation with the commission, draft rules for the utilization of access channels. Such rules shall be placed on file with the city clerk. Except as specified by the FCC, the grantee shall not censor any programming on the access channels. The grantee agrees to support, including funding, the public access facilities and services and the educational and governmental access facilities and services [see subsection (b) below], pursuant to the terms of the agreement between the City of Iowa City, Iowa, and Heritage Cablevision, Inc, dated August 28, 1984. Section 1. "Access," including subsections A. -C. thereof, and Section 6. "Local Origination", including subsec- tions A. -B. thereof, of said agreement are hereby incorporated into the franchise as though set out verbatim. SECTION III. REPEALER: All ordinances and n pars o or finances in conflict with the provision of this ordinance are hereby repealed. SECTION IV. SEVERABILITY: If any section, provision or part of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance o? 37/ Or�ance No. 84-3218 Page 4 as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION'V. EFFECTIVE DATE: This Ordi- nance shall be in effect after its final passage, approval and publication as required by law. Passed and ap rove thisJ.8#h. dao December, 1984 (�JJ- MAYOR ATTEST: CITY CLERK Rocolvod $ Approved By The Legal Departrnent lz11z1B4- u- X37/ It was moved by Zuber and seconded by Erdahl , that the Or finance as rea a adopted and upon ro ca ere were: AYES: NATJ: N — x — X First consideration Vote for passage: Second consideration Vote for passage ABSENT: AMBRISCO — BAKER —DICKSON —ERDAHL — MCDONALD STRAIT ZUBER Date published December 26. 1984 Moved by Zuber and seconded by Erdahl, that the rule requiring ordinances to be considered and voted on for passage at tAao Council meetings prior to the meeting at which it is to be finally passed be suspended, the first and second consideration and vote be waived and the ordinance be voted upon for final passage at this time. Ayes: Erdahl, Dk:Donald, Strait, Zuber, Ambrisco, Baker, Dickson Nays: None x371 ORDINANCE NO. Rd -;719 AN ORDINANCE CORRECTING ORDINANCE NO. 83-3144 VACATING A FORTY FOOT PORTION OF THE ALLEY RIGHT-OF-WAY IN BLOCK 9 OF COUNTY SEAT ADDITION, RUNNING NORTH -SOUTH BETWEEN HARRISON AND PRENTISS STREETS. BE IT ORDAINED BY THE CITY COUNCIL OF IOWA CITY, IOWA: SECTION I. AMENDMENT TO ORDINANCE NO. 83-3144. That Section I of Ordinance No. 183--71M is hereby repealed and the following is adopted in lieu thereof: That a 40 foot segment of the north -south alley right-of-way between Harrison and Prentiss Streets in Iowa City, Iowa, is hereby vacated for alley purposes, said portion of right-of-way being described as follows: Beginning at the northeast corner of Lot 6, Block 9, County Seat Addition, according to the recorded plat thereof, thence south 40 feet, thence east 20 feet, thence north 40 feet, thence west 20 feet to the point of beginning. SECTION I1. REPEALER. That all ordi- nances and par s o or finances in conflict with the provisions of this ordinance are hereby repealed. SECTION III. SEVERABILITY. If any section, provision or par of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or un- constitutional. SECTION IV., EFFECTIVE DATE. This Ordi- nance shall be in effect after its final passage, approval and publication as required by law. Passednd approved this 18th. day of Decemher, 984 M YOR ATTEST: azi, ..,> ZEA CITY CLERK Racavod P, A-13proveu Gy The Leas) De artmenf 11 4 ey It was moved by Baker and seconded by Zuber that the r finance as read be'adopted and upon ro chi were: AYES: NAYS: ABSENT: x_ AMBRISCO X BAKER X DICKSON g ERDAHL g MCDONALD X STRAIT —R— ZUBER First consideration Vote for passage: Second consideration Vote for passage Date published n.... ,,, 9A, 1Qad Moved by Baker, seconded by Erdahl, that the rule requiring ordinances to be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the first and second consideration and vote be waived and the ordinance be voted upon for final passage at this time. Ayes: Zuber, Ambrisco, Baker, Dickson, Erdahl, McDonald, Strait Nays: None .2323