HomeMy WebLinkAbout1983-07-05 Info Packeti
City of Iowa City
MEMORANDUM
DATE: July 1, 1983
T0: City Council
FROM: City Manager
RE: Informal Agenda and Meeting Schedule
July 4, 1983 Monday
HOLIDAY - NO INFORMAL MEETING
July 5, 1983 Tuesday
6:45 - 7:30 P.M. Informal Council Meeting - Conference Room
6:45 P.M. - Review zoning matters
7:05 P.M. - Council agenda, Council time, Council committee reports
7:20 P.M. - Consider appointment to Riverfront Commission
7:30 P.M. - Regular Council Meeting - Council Chambers
PENDING LIST
Priority A: Iowa -Illinois Utilities Franchise
Transit Fare Subsidy Program (July 11, 1983)
Discuss Water Billing Procedures
Priority B: Discuss City Council Majority Voting Requirements
Housing Inspection Funding Policy
Housing Market Analysis Recommendations
MECCA Funding Request
Shamrock/Arbor Drive Drainage Area
Lower Ralston Creek Parcels - Use and Configuration
North Dubuque Street Improvements
Meet with Broadband Telecommunications Commission
Discuss Amendments to Non -Discrimination Ordinance
Clear Creek Investment Company Development Proposal
Priority C: Meet with Design Review Committee regarding recommendations
Traffic Signals - Flashing Mode
Mandatory Parkland Dedication (Fall 1983)
Appointments to Planning and Zoning Commission and Airport
Commission - July 19, 1983
Appointments to Riverfront Commission and Committee on
Community Needs - August 16, 1983
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City of Iowa City
MEMORANDUM
Date: June 30, 1983
To: City Council
From: Mary Neuhauser
Re: Space Needs and Revenue Sharing
When the general revenue sharing program was initiated in 1973 I was
surprised to find that most of Iowa City's share was spent to remodel
the Civic Center. Too much of that remodeling was cosmetic,
particularly the decoration of the office of the City Manager (Neal
Berlin's predecessor). I believed that there were many more
important needs which revenue sharing should fund.
Thanks to a long-range capital improvements program and with the
assistance of the CDBG program, we have been able to meet many
capital needs. In addition to the many block grant projects, we have
upgraded the maintenance facility, constructed a new library and are
now building a new transit facility.
Now the situation has changed. First on our list of capital
improvements is, of course, a new wastewater treatment plant and
sewers. We know that this project will be undertaken over a number
of years. Meanwhile we should not neglect other City space needs.
The Council has discussed them in the past, but has not come up with
a plan to meet them.
The existing space in the Civic Center is inadequate. When it was
constructed in 1961, the population was less than 34,000. Today the
population is over 50,000. The Civic Center is too small to provide
the services which we require today. Most of it is inaccessible to
the handicapped, and it is showing signs of age in many places. The
police station is too crowded to operate well. Even with the extra
space provided by the former cells, which were closed by the state as
being substandard for detention, the space is too cramped for the
duties the police department must perform. The fire station is
adequate in size, but is located on a busy arterial. It is
inconvenient and potentially dangerous to maneuver the equipment in
and out.
The space in the Davis Building is totally unacceptable. It is
barely habitable during much of the winter season. The Planning and
Program Development Department should be an integral part of the
Civic Center's functioning.
Some decision on the U -Smash -Em building should be made. Either it
should be rehabilitated, torn down or sold.
Before the next year's budget is adopted, the City Council should
determine a financial plan to deal with space needs. New space will
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require a bond issue, unless some other magic source of funding can
be found. Remodeled space can be financed by the portion of revenue
sharing funds which are being phased out of the transit operating
budget. This amount could be committed for a few years, allowing
remodeling to proceed in stages.
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As a next step, the Council could either direct the City Manager or
form a committee of council members and staff to come back with
specific alternatives and recommendations to meet space needs.
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CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-50.00
June 30, 1983
The Honorable Charles Grassley
U.S. Senator
Room SH125
Washington, D.C. 20510
Dear Senator Grassley:
I am aware tthe Senate Finance hat
Committee
General Revenue Sharing soon. Asa m mber ofathat
committee, you are probably aware that Senator Durenberger intends
to introduce a series of amendments. The League of Iowa
Municipalities has provided me with information regarding the impact
of one of these amendments.
The amendment in question would "detier" the distribution formula so
that all local communities would compete with each other at the State
rather than the County level. Under this amendment, Iowa City would
receive an additional $43,700, or a 7% increase in funding. Of the
major cities in Iowa, no decrease in funds would result. Allocations
for cities and counties statewide would increase by $688,000 which
would include over $465,000 going to select cities and over $222,000
counties.to
beneficial for the sState tofuIowa and ditstmunicipalities.
would thus seeI would
urge you to support an amendment which would have this most favorable
impact.
I am also informed that Senator Durenberger may introduce an
amendment which would reduce from three years to two years the
funding period for General Revenue Sharing. As in the past, the City
strongly opposes any such reduction. General Revenue Sharing funds
continue to constitute a significant portion of our annual budget and
the process of projecting revenues becomes more difficult whenever
certain of those revenues come in question. It would be extremely
undesirable if the question of renewal should arise more frequently
than the current three years.
In any event, the position of the City of Iowa City remains as we
have communicated to you in the past, We support General Revenue
Sharing at its current level or above. We oppose any formula change
which reduces funding or which would decrease the authorization
period to less than the current three years. I strongly urge you to
support this position as you consider the future of the GRS program.
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The Honorable Charles Grassley
June 30, 1983
Page 2
Your support in this regard is greatly appreciated.
Sincerely, n ,,
Mary C. Neuhauser
Mayor
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cc: The Honorable Roger Jepsen
The Honorable Cooper Evans
City Council
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City of Iowa City
MEMORANDUM
Date: June 30, 1983
To: City Council and
Ecoonno/miyDevelopment Committee
From: City Manager,//`i�—
Re: Economic Development
The FY84 City budget allocates $40,000 for a comprehensive economic development
program. The City Manager and the Mayor have discussed an economic development
strategy for Iowa City with local businesses, industry representatives and
University officials. This memorandum is based upon those discussions,
individual research and information collected from discussions with the City
Council and staff.
A. WHY ECONOMIC DEVELOPMENT?
There are a number of reasons why it is now appropriate and necessary for Iowa
City to establish economic development as a major priority. Without a
community -wide coordinated long-term effort there will be little economic
growth.
Changing Economic Conditions
Nationally and internationally significant changes are taking place in the
economy in the types of businesses and industries which support economic
growth. There is no reason to believe that the economic changes in the
next 5-10 years will be any less turbulent than in the preceeding 10 years.
In fact, it is expected that change will continue to accelerate. Any city
which is able to take advantage and lead in that change should be able to
build a strong foundation for the future. More and more cities and states
are committing additional resources for increasing economic activity.
States and cities which do not develop extensive programs will inevitably
fall behind economically and be at the mercy of changing economic
conditions.
2. Changing Student Population
In the years ahead, because of changes in federal financing, birth rates
and other considerations, it appears that there may be a downward trend in
student population. While we are at the current time seeing an increase in
student population, there is strong reason to believe that such growth is
temporary. In addition, the financial resources do not exist to
accommodate unlimited student population growth. It would be foolhardy to
predicate long-term economic growth on an ever-increasing student body.
This luxury will not continue for Iowa City.
3• We're _ n Unknown
Iowa City and Iowa are relatively unknown in the economic development
market. Economic growth will gravitate to those areas, states and
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communities that are known to prospective industries as being attractive
with favorable business climates. Iowa City has many attributes which, for
companies both in the United States and in foreign countries, are much more
attractive than major metropolitan areas. The quality, size and pro -
development posture of Iowa City should be used to Iowa City's advantage.
4. University Financial Needs
With changes in the national and State economic picture and in the
industrial base of the United States, the financial resources of the
University are changing. Increasingly the University must seek support
from other areas. A community economic development effort offers the
potential of major financial support for the University.
B. A PROGRAM BUILT ON EXISTING STRENGTHS
An economic development program which only duplicates the efforts of many other
cities would be shortsighted. Iowa City should build on its particular
strengths. These are the University of Iowa and University Hospitals, the
attractiveness of the community as a place to live, and the positive atmosphere
r for industrial and business growth evidenced partly by the quality of existing
business and industry.
The University
The University has the opportunity to be at the forefront in meeting the
needs of business and industry in critical national policy areas. In
recent years, the major research funding for institutions of higher
learning has been government related. Educational institutions have
developed a strong partnership with government in those areas. Now the
opportunity exists for universities to develop similar partnerships with
private business and industry in meeting significant national and state
needs.
There are three areas which deserve immediate attention. These are:
(a) health services; (b) reindustrialization; and (c) excellence in public
education.
As the needs and demands upon public higher education change, the ability
of the University to harness its resources to the foregoing needs will
strengthen the University. University Hospitals are nationally recognized
as the largest university -related health resource center in the U.S., and
many opportunities exist for health professionals to develop supportive
relationships with business and industry.
Economic change requires re-education and retraining, particularly in a
period in which there have been declines in major employment sectors of the
economy. There are many areas in which the University will be able to use
existing educational resources to provide the necessary re-education and
to create new job opportunities.
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Because of a significant decline in the basic industries, increasingly
there is discussion of a national industrial policy. The University has
the resources and interest to assist the State and local communities in
developing policies which will permit Iowa and its municipalities to
benefit from economic growth which is protected to the greatest extent
Possible from economic change and obsolescence.
There will be many opportunities to work with the private sector as well as
with government in strengthening public education. Three topics currently
receiving considerable attention are science and math education and merit
pay for teachers. Both government and the private sector will be providing
additional funding and emphasis. The University's resources in science and
mathematics are outstanding.
A Unique Community
Iowa City is a unique community. It has many of the cultural, service and
other resources which employees and executives of desirable industries and
businesses find attractive. Existing industries recognize the strength of
employee commitment in low turn -over, limited absenteeism and high
productivity. In addition, we have other positive characteristics. Iowa
City is a pleasant place for employees to live and Iowa City has the
friendliness of a small community. Bus transportation in Iowa City is
easily accessible and fast. A multitude of leisure time activities,
including sports and cultural events, is available for all age groups.
Iowa City has all the advantages of a large independent city or a major
metropolitan area, without the disadvantages.
a. Existing Quality
Many communities tend to ignore growth from within. The expansion of
existing industry and certainly spin-off from local entrepreneurs,
particularly associated with the University, offer many opportunities for
economic expansion. Iowa City is fortunate in having first class
industries such as the Westinghouse Information Services Division of
Westinghouse Learning Corporation, American College Testing Program, Owens
Brush, Procter & Gamble, Thomas & Betts, and Moore Business Forms.
Attention to the needs of these businesses and the development of new
businesses from within the community could provide a substantial growth
mechanism. Businesses in Iowa City find this community attractive and
offer a vehicle to attract similar first-class industry and business.
C. THE PROGRAM
The program should be based on a network of interested and concerned citizens,
superior informational material, sufficient long-term funding, strong
representative leadership, community independence, and adequate professional
staff.
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Networking with Citizens
The economic development program of the City must be unique. We should not
simply establish a program which only competes with other programs.
Advertising in national journals may be acceptable to an extent, but
primarily our effort must be one of building a network of strong resources
and outreach through citizens, University officials and industrial leaders
in the community who are prepared to make a commitment to seek out
compatible industry and business development for Iowa City. This can be
coordinated with the efforts of various other groups and individuals such
as the Alumni Association and graduates of the University. The effort
should be built around networking of persons who are familiar with Iowa
City. As Iowa City's citizens are its best resource, it is important that
any program be predicated upon use of people -to -people contacts. This
includes a wide range of Iowa City citizens who have business and
professional contacts throughout the world.
Local citizen leadership already has produced results. The visit by the
French trade mission was organized by Iowa City residents. The City is
currently in the process of contacting all University of Iowa graduates
currently living in foreign countries to request their assistance in
referrals to foreign investors. Iowa City industries with operations in
Europe are in the process of providing foreign contacts.
2. Information
There are other specific steps which can be taken. The City currently does
not have first class promotional and informational materials. When
prospective industrial and business leaders are unfamiliar with the area,
it is of the utmost importance that a variety of informational materials,
printed and audio-visual, be available to convey the character of Iowa
City.
3. Funding
A program of this nature requires raising sufficient funding so that a
long-term program is assured. Cities in Iowa and other states are making
such commitments. In Iowa representative budgets are: Des Moines -$320,000
($1.68 per capita); Clinton -$250,000 ($7.62 per capita); Quad Cities -
$170,000 ($1.33 per capita); Sioux City -$150,000 ($1.83 per capita); Storm
Lake -$80,000 ($9.08 per capita); Waterloo -$40,000 ($.53 per capita) and
Cedar Rapids is currently raising $500,000 ($4.54 per capita). The
proposed $40,000 contribution from the City is only a beginning.
4. The Action Group
In order to accomplish our objectives, a permanent independent economic
development group is necessary. This group will coordinate the interests
and the efforts of the City, the University, business and industry and all
other community resources. Members must be fully familiar with the needs
of business, industry, the University and the City. Members from the City
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government, of course, would be acquainted not only with the needs of
business and industry but specific issues such as zoning, sewer capacity,
and land use. The group must cooperate with but be independent of both the
City and the Chamber of Commerce. While it is anticipated that the efforts
will be predicated upon networking with a large number of citizens, there
must be adequate professional staff to provide leadership and
coordination. It is expected that the group would be financed directly
through the business community and the City government and indirectly
through the University and the State. The group must soon develop specific
goals and objectives for a program uniquely designed for Iowa City.
Within this framework it is now appropriate for the business community and the
University to indicate what level of support they will provide for such an
effort.
D. THE NEXT STEP - AN AD-HOC COMMITTEE
It is recommended that an ad-hoc committee of nine members be appointed by
the Mayor and that the President of the University of Iowa and the Chairman
of the Economic Development Committee of the Chamber of Commerce each make
membership recommendations to the Mayor. The committee will consider:
1. Structure of the economic development organization and number of
members.
2. Composition of membership, i.e., representative groups.
3. Relationships with other organizations and governmental units.
4. Staff job description and qualifications.
5. Financial resources - amounts and sources.
6. Goals and objectives for next 12 months.
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City of Iowa City
MEMORANDUM
Date: June 29, 1983
To: City Council
From: City Manager
Re: Wastewater Treatment Plant (Discussion - Informal Council Session -
July 11, 1983)
1. Committee Report
The memorandum in your packet last week from Councilmember Larry Lynch,
Chairman of the Ad Hoc Wastewater Treatment Facility Committee, stated that
at the June 15 Committee meeting, the Committee recommended that the City
develop a phased wastewater program and that the original site on Sand Road
be acquired. At a meeting scheduled for August 3, 1983, Mr. Jim Kimm, the
City's engineering consultant, and Professor Richard Dague of the
University of Iowa jointly will present a phased program which includes
estimated construction costs and a timeframe.
2. Site Acquisition
The City Manager recommends that the City proceed to acquire the necessary
land on the Sand Road site without further delay. This will require
updated appraisal information. It is expected that this will be received
in the next several days.
3. Private Financing
The City Manager is pursuing private financing alternatives. This past
weekend I met with Mr. C. Gregory H. Eden of Eden-Hanon Company of
Alexander, Virginia. The Eden-Hanon Company specializes in packaging
private financing for municipal facilities. Mr. Eden is a former Iowa City
resident.
4. Arthur Young - Computer Program
As indicated in the enclosed article, the Arthur Young Company has
developed a computer program for determining the financial ramifications
of .the private financing of wastewater treatment systems. The City has
contacted Mr. Harvey Goldman in New York concerning this program and is
considering its use prior to the presentation of the proposal on August 3.
5. J.C. Nichols Proposal
Several months ago the J.C. Nichols Company (Government Management
Corporation) of Kansas City discussed a private financing proposal with the
City and the City has now received a proposed contract (enclosed). The
contract requires that the City enter into a commitment prior to the time a
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feasibility study is prepared. The City Manager recommends that the City
not proceed with this proposal.
If the City desires to undertake private financing and/or operation of
wastewater treatment facilities, it is recommended that the City develop a
request for proposals and proceed through a bidding process. There
currently is a great deal of interest in the private financing and
operation of wastewater treatment plants. It would not be in the City's
best interest to make a commitment to a particular company at this time.
At a later date, if the J.C. Nichols Company is still interested, it
certainly should be willing to present a competitive proposal in accordance
with the procedures and the specifications developed by the City.
6. Proposed Federal Legislation
Representative Pickle and Senator Dole are considering legislation which
would prevent the private financing of municipal facilities. The Mayor and
the City Manager have been in contact with the Iowa Congressional
delegation and representatives of the National League of Cities concerning
this proposed legislation. Although there may have been some abuses, we
believe that private financing may be one of the few alternatives available
which will enable cities to continue to meet their infrastructure needs.
Also, it is not logical to eliminate this alternative for municipalities j
while retaining tax incentive financingfor Private business.
continue to pursue this matter and s will i
hope that Congress will not be short- '
sighted and prevent municipalities of the United States from meeting j
critical infrastructure needs with alternative financing methods.
Ames
The City has been contacted by the City of Ames concerning joint wastewater
treatment plant problems. It is expected that at the July meeting of the
Board of Regents there may be discussion of the needs of the two
communities. There will be additional joint Iowa City - Ames discussions
before the State DEQ meeting on August 15.
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June 1983
Privatization in the
Wastewater Treat-
For years the private sector has been involved in providing municipal set
vices, particularly in areas such
merit Industry: A
as transit, solid waste collection and disposal.
police and fire protection. But the
Capital Idea
wastewater industry is just starting to claim its
share of privatization to aid in the construction
H,,I,ev c.•rd„r:,,r
and operation of wastewater
treatment facilities.
Nei, Yu.A
The search for low-cost financing lot wastewater facilities has compounded
in
tit,,,,,evu1uues row pr,,,at .
recent years. Municipal officials can no longer expect the 75% federal funding
:amm,s a souna way to
support of the past ten years. According to EPA estimates, many of the 5,000
prungecosi eeeelrvewaste.
w.ner eeaeoem services.
communities needing treatment plants will have, to finance facilities with a mem,
mum, if any, funding.
grant And for those communities that have reached the
limits of their debt capacity, it is realistic
to predict that without private sector
help, several badly needed treatment plants may never be built.
Privatization offers many advantages to both the public and private sector.
First, by minimizing federal and state involvement in local affairs, it
gives a coal-
munity greater flexibility over the growth of the community. Privatization avoids
many of the time-consuming difficulties associated with grant -funded construe
tion programs (e.g., procurement regulations, compliance requirements, grant
audits). While a grant
program provides only it portion of eligible costs, prtvattz;t-
tion may provide up to 100 percent of the costs of a treatment facility.
And for
credit worthy communities that can still float bonds for their financing
needs, pri.
vatization can help preserve local debt capacity for other essential purposes.
Private firms receive the economic benefits in the form of depreciation,
tax
deductible interest and an investment tax credit. The tax benefits also allow the
private firm to charge lower user fees than the municipality would charge it it
were to build the plant.
The exchange of economic benefits depends upon the structure of the lrans�
action between the municipality and the private firm. Privatization can
go
beyond private sector financing, design and construction to include actual
opera
tion of the treatment facility in exchange for if smvice fee. There are a nummber of
options available for structuring the agreement, and municipalities frequently
need assistance in setting priorities and selecting the arrangement that is most
appropriate
A community considering privatization must make a number of key deci-
sions. For example, who will retain ownership of the facility; who will manage
the facility; what guarantees are there
that the plant will be operated properly
and efficiently; how much oversight responsibility is the city willing
to take un
Other regulatory interfaces and institutional factors must also be considered.
such as how to handle existing labor contracts between the city and local timers
Arthur Young has developed a privatization computer model that can help a
local community, structure an
agreement for a wastewater treatment facility will)
the private sector. The AY/Privatization model
can help a city determine the
costs, resulting user fees, can guarantee a par year financial analysis, as well as
contemplate several of the key factors that must be addressed.
Each municipality has its awn unique characteristics and the potential fin
privatization must be evaluated on a case-by•case basis. The key to the concept is
coordination and cooperation among all participants, to the benefit of
all p;u W';,
involved For a municipality needing to finance. build, expand, upgrade or cult-
_
nance its wastewater treatment facilities, privatization is a cost-effective. '111w flit
,.
well worth r.- „u; ring
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11CSOLL'TION CO. _
11: THE MATTER Or:
LUTIIOP.ILIWG A CONTRACT BOR
SALL OF THE: MUNICIPALLY OWNED
CITY .SANITARY SEWER SYSTEM.
CITY OF IOWA CITY
WHEREAS, the City of Iowa City, Iowa, owns certain facilities
known as the Iowa City, Iowa Sanitary Sewer System which has
been operated by the City for the collection, treatment and
disposal of sewage for the City, and -
WHEREAS, the City is desirous of seeking alternatives to its
i present ownership and management to determine the availability
of more efficient and economical methods of operation, and
I
I! WHEREAS, Government Management Corporatyon (GMC), a Missouri '
f, corporation, �as proposed to provide to the City, at no cost to !
the City, a feasibility study showing comparative costs between
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municipal and privately owned and managed facilities, and '
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WHEREAS, the City and GMC are both entering the feasibility f i
study phase with the intention of an acquisition of the system by i I
GMC, the contract for said acquisition being attached hereto and
made a part hereof as though set out herein in full.
I
NOW, THEREFORE, BE IT RESOLVED, that the said Government
f Management Corporation is authorized to commission and provide
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to the City within ninety (90) days from this date, at no cost
to the City, a feasibility study which will indicate a comparison
of the costs to the individual citizens, residents and consumers
Of the operation and management by the City and that of GMC of
isaid sanitary sewer or waste treatment facility and system,
including the entire system, and including any and all capital
improvements, repairs, maintenance, expansion, compliance with
Yal1 government regulatory agency rules, regulations and require -
t
J ..ientn, and any and all costs, fees and expenses for management
and operation, for existing service and to maintain service to
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said citizens, residents and consumers.
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!11; IT II;R'f11ER RES0[,vEO, that lf, And only If,
-
as a con-
'rti^n Precedent, said study Substanu aces
that private o❖rer-
-iup and management by said GIIC
will and shall result in actual
coot of operation,
which together with fifteen percent (li%)
thereof, will equal not more than
ninety percent (90%) of the '
current and future
cost of operation, if performed by the City,
cakinq into
account new construction, maintenance and
repairs,
increased bond indebtedness
and increased costs of operation
due
to inflation as compared to current and future
y,
costs of
operation which would be
required for the same operation if
e;
performed by the City based
upon the City's current operating
t
procedures, the City will
execute the Contract for Sale 1
attached hereto and made a-�
part of this
resolution and will
cooperate and take
c
such legal action as may be required to
implement the transfer of ownership and
management of said I
'
sewer system to said corporation upon the terms and
conditions
referred to in said contract. 11
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This resolution shall be effective immediately upon
its
Passage by a majority of the Council.
e
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OR
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ATTEST:
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C Ty CLERK
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Approved as to form;
P
bpbort W. Jansen
City Attorney
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Cn;;TW.CT FOR SALE
OF
UANITANY SEWAGE OF DISPOSAL SYSTEM
TIIIS CONTRACT, dated as of the day of
:987, (regardless of when signed by the parties hereto), by and
betwucn TIIE CITY OF IOWA CITY, IOWA, a charter city duly organized
and existing under the laws of the State of Iowa, (hereinafter to -
`erred to as "Seller"), and GOVERNMENT MANAGEMENT CORPORATION, a
Missouri corporation, (hereinafter referred to as "Buyer").
W11EREAS, the Seller owns certain facilities known as the City
Sanitary Sewage System (hereinafter referred to as "the System")
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which consists of interceptor, trunk and connecting sanitary sewers
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including manholes, access, junctions, metering, sampling and
related structures, pump stations, treatment plants and support j
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facilities, land, easements, and right-of-ways as well as other
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facilities and structures required for the collection, treatment '
and disposal of sewage; and
1
WHEREAS, Seller's purpose and intent is to protect and bene-
fit all citizens and residents of Iowa City, Iowa, and specifically
4
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the users of the sanitary sewer facilities and their continued use
f
thereof; and
WHEREAS, Buyer desires to buy all of the assets, properties
'E
and business of Seller's sanitary sewage system and Seller
desires to sell the complete collection, disposal, and treatment
f
facilities for a price under the terms and conditions hereinafter
stated; and
. -
WHEREAS, a feasibility study presented by the Buyer has
f
demonstrated that the Buyer can operate the said sanitary sewage
system more economically and efficiently than the Seller; and
1-70L'REAS, Buyer warrants that future service charges to
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individual citizens, residents and consumers will reflect a
.Y
minimum of ten percent (109) annual savings taking into account
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ne•w construction, maintenance and repair, increased bond in-
drut�,dness and increased costs of our:ration due to inflation as
compared to future services charges which would be required for
the same operations and services if furnished by the Seller based
upon its current operating procedures.
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
1. Seller shall sell to the Buyer the complete sewage
collection, disposal and treatment system for a total purchase
price equal to any and all outstanding debt on the system, both
present and future, which payments shall be assumed by the Buyer
and payable as follows:
(a) Buyer shall make timely payments solely
from the proceeds received from the sewer service
charges obtained from the operation of the sewer
system.
(b) All payments shall first be applied to
interest with the balance applied to principal on
said bond indebtedness.
(c) All payments shall be made in a timely
manner and sufficient amount to meet the scheduled
payments for said bond indebtedness.
2. Buyer warrants to secure no additional indebtedness or
liens on the system, without the prior consent of Seller, which
consent shall not be unreasonably withheld.
1. Buyer shall take over all proprietary and operational
functions of Seller at the closing, including maintenance, repair,
replacement, billing, collection and all related functions.
4. Buyer shall during all times that it is the owner of the
System, operate the same properly and in a sound economical
manner and shall maintain, preserve, and keep the same, or cause
the same to be so maintained, preserved, and kept in good repair,
under and condition, and shall from time to time make or cause to
I,e made all necessary and proper repairs, replacements and renewals
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s11 Lhat at all times Lne operation of the System may be properly
cnnuuctud in a sound and economical manner in concert with the
revenues available for debt service on capital improvement debt
financing through the issuance by the Seller of its sewer revenue
bonds on behalf of the Buyer.
5. So long as any sewer bonds of the Seller relating to the
System are outstanding, and the citizens, residents and consumers
1 arc being provided continuous sewer services for a charge as
referred by this Contract, the Seller shall not construct, grant,
{
franchise or license a competing sewage treatment works other
than by the Buyer. Any future sewer easements or sewer trunk lines
dedicated to public use or taken by or granted to the City in any �
i method or manner will be conveyed to the Buyer by the Seller immediately
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thereafter and a Deed conveying the same will be placed in escrow as
otherwise provided by this Contract. '
6. The Buyer shall at all times maintain with responsible IL
insurers all such insurance and indemnification coverage as is '
reasonably necessary or required by Iowa Law (or Federal Law if
i applicable) to protect the Seller and its tax a
} P Yin
g citizens. (The
+ present requirement of Iowa Law is 5
tl as to liability,
which Buyer agrees to furnish). Buyer's obligation is to provide and
obtain within limits and at costs deemed reasonable by the Buyer as is
customarily maintained with respect to sewage treatment works of like
a character against loss or damage to the System, against use and occu—
pancy,
i
panty, and against public or other liability to the extent at least
I reasonably necessaryto
protect the interest of the Buyer and each
{ holder of any bond of the Seller relating to the System, and also
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( all ;uch insurance as is required to indemnify and to hold safe
and hnrmless the Seller against all liabilities, judgments, costs,
uamages, expenses, and attorneys' fees for loss, damage, or in !
to Person or property resulting from the operation or a failure
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of Operation of the system caused by the negligence or wilful act +
Of the. Buyer or its officers, employees, or other agents. If any
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t1w Buyer nursuant h„rcto ::hall be damauod or destroved, the
13u%.,.;>:nall, as cxpeditiou!.ly as possible, commence and diligent,...
prosecute the repair or replacement of the damaged property so as
to restore the same to substantially the same condition as existed
Prior to the event causing :;uch damage or destruction, with such
changes, alterations and modifications (including the substitu-
tion and addition of additional property) as may be desired by
the Buyer and as will not impair the character of the System as a
sewage treatment system. In the event the cost of such repair or
j replacement of the damaged property exceed,- the proceeds of such
f
insurance available for the payment of the same, and the bonds
issued in respect to the System are outs tandin
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any, In the band f 9, such monies, if
fffl funds established in the resolutions in
t to the financing of the S to
ystem, shall be used to the extent
! allowable for such
Purposes. Evidence of the fire, casualty
f and liability insurance policy shall be provided to the Escrow
Agent by a Certificate of Insurance providing for notice to
t
Seller and the Escrow Agent in the event said
celled or terminated for an Policies
y reason. are can -
7. Included in the sale are all fixtures, equipment, in-
terceptors, trunk and connecting sanitary sewers, including man-
holes, access, junctions, metering, sampling and related structures,
Pump stations, treatment plants and support facilities, land,
easements, and right-of-ways, and personal property as listed on
the attached inventory, marked Exhibit "A', as attached hereto
and made a part thereof as though set out herein in full.
E• Seller agrees to execute a good and sufficient Iowa
Warrant*, or Quit Claim Deed to be deposited in escrow with the
Iowa City, Iowa. Buyer agrees to
execute a Quit Claim Deed which also is to be deposited in escrow
with ,aid Escrow Agent. The Escrow Agent shall hold the unrecorded
duedc ;n escrow and said Escrow Agent is hereby authorized to
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,,,!rivr said dueda to bu, or u;,on payment of the final installment
du, nerpundur or payment to full of all indebtedness due and the
snua•tnq of a roceipt signed by Feller showing that the purchase
:,rice Aas been paid in full to Seller but in no event shall Escrow
f,gent make delivery of said deeds to Buyer prior to thirty-five
(15) years from the date of this Contract.
9. As time is of the essence, it is understood and agreed
by and between the parties that in the event of default of said
payments of principal and interest or for the payment of insurance
as herein provided, and should said default continue for a period
Of thirty (30) days alter Seller sends written notice, certified,
return receipt requested, to Buyer of said default, then Seller
shall have the right and option to terminate said Contract by
giving written notice thereof and to enter into possession of
the System. In this event, the Buyer agrees to deliver peaceably
possession of the System, including fixtures, equipment, and personal
property to Seller and not to commit waste thereupon. Upon Seller
providing the Escrow Agent with written notice of the termination
of the Contract, the Escrow Agent shall deliver to Seller the
Seller's Deed and the Buyer's Quit Claim Deed held in escrow. In
the event this Contract is terminated as herein provided, Seller
shall be entitled to retain and keep all sums paid hereunder and
which have been paid since the execution of this Contract as
liquidated damages for the use of said System between this date
and the date of the default; actual damages being difficult, if not
impossible, to determine prospectively as of the date of this Agreement.
failure of Seller to exercise any right or remedy, including but not
limited to acceptance of partial or delinquent payments, shall not be
a waivor of any obligation of Buyer or constitute a waiver of any other
:;;.malar default subsequently accruing. Liquidated damages shall not
ac, mi a waiver or bar of other rights or remedies available to either
party for acts or occurrences within three (3) years prior to the
noticu of default.
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17. At all t:mcx t:;i_; Contract in in full force and effect
=+uYur covenant:: and aq:•oee to pr•rnit the Seller and its
authorized agents or reoresentatnves to
enter [i:u System by
appointment giving seventy-two (72) hours'
notice, and during the
usual business I:ours for [hc
purpose of inspecting the plant, sewer
lines
and improvements to insure continued operation for the benefit
•
of the citizens and residents of the City.
11. The Buyer shall keep proper books of record and
account
in which complete and correct entry shall be made
of its trans-
actions relating to the System or any part thereof and
all other
:cyan ues or monies received by or due to the
Seller. All books
and
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papers of the Buyer shall be available for inspection
by the
Seller, at the location where
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the books and records are ordinarily
kept, during
the usual business hours and by appointments
with
at least seventy-two 72
y' ( ) hours' notice.
"y
12. During all times that this Contract is in effect
1.
the Seller shall fix and maintain a sewer service charge or
rate and
in calculating the rate of the
S'
sewer service charge to be established
by the
Seller the items of costs shall include, but
not be limited
to, the following:
A, All Operations and Maintenance
expenses
associated with the system plus an added fifteen
t
percent (158) thereof. Said fifteen
percent (158)
t
is specifically limited to the expenses listed in
this sub -paragraph A and considered as Operation
1
and Maintenance expenses. These expenses shall include
but not be limited to:
(a) Collection and pumping,
(
(b) Treatment
(c) Maintenance of general facilities (shops,
administrative buildins, etc. in addition
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to plant)
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Cuetomcr account.+ (m,:terinq, billinn
and collection)
(e) Admin atrative and general (including
legal and accounting).
(f) Labor (direct and indirect)
(g) Utilities
(h) Chemicals and supplies
(i) Miscellancous (Insurance; consideration
payment; etc.)
B. Debt service (principal and interest) on
outstanding revenue bonds.
C. Additional costs.
(a) Interest on customer deposits
(b) Taxes (or contributions in lieu of taxes)
(c) Assessments (allocations)
(d) Replacement costs
(e) Minor System improvements
(f) Reserves (emergency repair, etc.)
(g) Reserves (principal and interest)
13. In addition to the items specified in paragraph 12 above,
:he Seller shall, during all times that this Contract is in effect,
and so long as there is any outstanding bonded indebtedness on the
System and, from time to time, as such bonded indebtedness shall be
outstanding, the Seller shall fix and maintain rates pursuant to and
in accordance with applicable statutes of the State of Iowa, and
any replacement or amendment thereof.
14. The Buyer shall submit to the Seller annually an or before
January 30th of each years its income statement and balance sheet for
the operation of the System and at the same time shall submit a budqet
:nrthv: ensuing fiscal year commencing April 1 and ending the Eollow-
,nq March 315t. This budget shall include all costs of operation,
u,alntenance, debt service and additional costs of the System as
hereinbefore described in Paragraphs 12 and 13. The Seller shall
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tae r,.,. Etu r, on or ueforc Auril 1st of oath year, establish by
Ord -trance or other appropriate action the rate of the sewer service
charge for the ensuing year. The rate established for such sewer
service charge shall be based upon the volume of water used from
time to time by the residential, commercial and industrial customers,
within the corporate limitu of the Seller and discharged into the
I
System. Such rates shall insure that the rate or rates fixed from
time to time will always
Provide sufficient revenues for the payment
1 of the items referred to in
i paragraphs 12 and 13 and as se[ out in -
the budget except that such rate or rates shall not provide for
i
revenues in any one i year which, together with other revenues received
and collected from others and arising out of ,the use of the System by !
others exceeds the amounts required to be collected.
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15. No waiver by either party of any term or condition of this
Contract shall be deemed or construed as a waiver of any other term or
condition, nor shall a waiver of any breach be deemed to constitute a 1 '
1
waiver of any subsequent breach, whether of the same or of a different
section, paragraph, clause, phrase or other provision of this Contract.
s
16. Buyer shall have the right to assign its rights and interest
E under this Contract to any parent, subsidiary, or successor corpora-
tion. The consent of the Seller thereto shall not be required, but
due notice of any such assignment shall be given to the Seller within
i sixty (60) days after such assignment is executed.
17. As the services provided by j
l Iowa City, Iowa, as Escrow Agent of this Contract are for the
i
benefit of both parties, the parties hereby agree that the fees
charged by said Escrow Agent shall be considered part of the operation
fof the System and shall be paid by and out of the proceeds of the
i
sewer service charges. In consideration of
Iowa City, Iowa, acting as Escrow Agent, the parties agree to
al,solvc, Indemnify, and hold harmless the
Iowa City, Iowa, of any liability under this Contract. ,
18. This Contract is contingent and subject to the following_
unless expressly waived by both parties in writing:
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Written npinions from the Iowa City, Citi
Atrorney and from Buyer'c Bond :Ounsel and Tax
Counsel specifically favorable to this sale approv-
inq all procedures provided for in this Contract.
u. Compliance with the provisions of Section
764.7 Iowa Code Annotated.
C. Approval by any and all Iowa and federal
administrative agencies regulating sanitary sewers
and treatment facilities where said approval is
required by law.
19. Rights of any holders of any sewer revenue bands the
Proceeds from the sale of which were used to construct any
Part of the sewer system affected by this Contract shall super-
sede and have a priority over those of the Buyer.
20. The Buyer has made various independent inspections in-
cluding of the records at Iowa City, Iowa; the physical facility,
equipment, plant and capital assets of the System; and the
records, reports, inspection sheets and requirements of all appli-
cable administrative agencies. Seller makes no warranties or
representations, express or implied. Seller transfers the entire
assets and considerations "AS IS". Further, Buyer is in a better
Position of knowledge, due to its expertise, to evaluate the
facility and system than the Seller.
21. The parties have attempted to evaluate the laws of the
United States and of the state of Iowa; to evaluate the legality
and feasibility hereof including, but not limited to, the anti-
trust taws; the Iowa Commerce Commission Law; and numerous other
administration agencies' laws such as the Environmental Protection
Agency and the Iowa Department of Natural Resources. The parties
arc: .f the joint and mutual opinion of the legality of this
Contract.
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?2. This Contract shall be governed by and construed in
accordance with the laws of the State of Iowa,
IN WITNESS WHEREOT, the parties hereto have caused this
Contract to be executed on behalf of the Seller by its Mayor and
.City Clerk and on behalf of the Buyer by its President and
Secretary, the parties hereto having hereunto affixed their hands
and seals binding themselves, their heirs, successors or assigns
to the faithful performance of this Contract the day and year first
above written.
ATTEST:
CITY CLERK
ATTEST:
SECRETARY
CITY OF IOWA CITY, IOWA
By
MAYOR
SELLER
GOVERNMENT MANAGEMENT CORPORATION
By
PRESIDENT
BUYER
ESCROW ACCEPTANCE
Theundersigned, for and in consideration of Ten and no/100
(510.00) Dollars, and other good and valuable considerations,
hereby agrees to act as Escrow Agent for the above-named parties
under the terms of the above Contract and accepts the same at
Iowa City, Iowa, this day of _ , 1983.
ATTEST:
SECRETARY
ESCROW AGENT
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City of Iowa City
MEMORANDUM
Date: June 24, 1983
To: Board/Commission/Chaiirp rsons
From: City Manage/r /�
Re: Annual Report !/"'
An annual report again will be compiled for all boards and commissions
at the end of fiscal year 1983. This report will cover the period
July 1, 1982, to June 30, 1983. It it requested that your board/commission's
report be submitted to the City Manager's office by August 1, 1983,
following as much as possible the form, margins and type (letter gothic)
as the attached sample. Please have cord Processing prepare the final
copy in the requested format.
All reports should include:
1. Responsibilities of board/commission.
2. Review of activities for FY83.
3. Directions planned for FY84.
4. List of present members.
This report will be used by the City Council, staff and members of
boards/commissions to set future goals in the following year's budgeting
process.
The staff person responsible for coordination with your board/commission
(see attached list) will be pleased to assist you with the preparation
of your report and will be contacting you at an early date.
If you should have any other questions concerning this report, please
contact Lorraine Saeger (356-5010).
tp5/5
cc: City Council
Department Heads
Word Processing Center
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BOARD OF LIBRARY TRUSTEES
GENERAL RESPONSIBILITIES
The Board of Trustees of the Public Library is a semi -autonomous body of nine
persons empowered by state law and city ordinance to act as the governing body
of the Library. The Board's specific list of legal responsibilities includes:
determining the goals and objectives of the library in order to plan and carry
out library services; determining and adopting written policies to govern all
aspects of the operation of the library; preparing an annual budget and having
exclusive control of all monies appropriated by the City Council or given to the
library through gifts, bequests, contracts, grants or awards; 'employing a
competent staff to administer its policies and carry out its programs. The
Board is also an am of city government with members appointed by the City
Council and its principal operating funds are approved by the Council. The
Board therefore seeks at all times to work in harmony with City policies in all
areas that do not conflict with its statutory powers.
ACCOMPLISHMENTS IN FISCAL YEAR 1982
Completed the first year in the new building, developing policies and procedures
to provide for its operation. Used building funds remaining because of prudent
management of the project budget to enhance and equip all areas.
Absorbed more than 50% growth in some library services with only minor cutbacks
in service levels, finishing the year with nearly 415,000 visits to the library
and 40;000 registered borrowers.
Allocated over $25,000 from the Gifts and Bequests Fund to the library materials
budget. Sponsored the establishing of the Iowa City Public Library Foundation
to provide additional funding for library services.
Added 11,300 now library items - the most since 1973 and only 500 short of the
maintenance goal of adding one new item for each 40 circulated.
Selected, organized and empowered a 15 -member planning committee to review and
analyze community needs and current library services and programs in order to
recommend long-term priorities for the library.
Received wide recognition from the library profession and the local community
for the design, function and services of the new building including the Iowa
City Chamber of Commerce 1981 Economic Development Award and visits from 50
libraries in 15 states and two foreign countries.
Used tours, programs, cable TV Channel 20 and library publications to increase
community awareness of the new library's services and capabilities.
PLANS FOR FISCAL YEAR 1983
Continue to search for ways to adjust to the new volume of service created by the
Public's overwhelming response to the new building.
Mork through the FRIENDS and the ICPL Foundation to increase private support
for the library; increase the use of volunteers and sustain the current level of
gift materials and funds received.
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Maintain the library's collection by acquiring at least one new item for each 40
circulated.
j Complete first cycle of the Planning
priorities and starting implementation.process by October 1982, developing
Continue efforts to inform and instruct
library. the public about services of the
Continue review and revision of basic Library Board policies.
LIBRARY BOARD MEMBERS
I
Ed Zastrow, President
i Carolyn Cavitt, Vice President
i Linda Gritsch, Secretary
? Jean Bartley
Ann Bovbjerg
Charles Drum
S Riley Grimes
Herbert Lyman
f Peter Wallace
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Maintain the library's collection by acquiring at least one new item for each 40
circulated.
j Complete first cycle of the Planning
priorities and starting implementation.process by October 1982, developing
Continue efforts to inform and instruct
library. the public about services of the
Continue review and revision of basic Library Board policies.
LIBRARY BOARD MEMBERS
I
Ed Zastrow, President
i Carolyn Cavitt, Vice President
i Linda Gritsch, Secretary
? Jean Bartley
Ann Bovbjerg
Charles Drum
S Riley Grimes
Herbert Lyman
f Peter Wallace
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BOARD/CBOARD/C-ION
Airport Commission
Board of Adjustment
Board of Appeals
Board of Electrical Examiners and
Appeals
Board of Examiners of Plumbers
Board of Trustees For Police and
Fire Retirement
Broadband Telecommunications
Commission
Civil service Commission
Committee on Community Needs
Design Review Committee
Historic Preservation Commission
Housing Commission/Housing Appeals
Board
Human Rights Commission
Board of Library Trustees
Parks and Recreation Commission
Planning and Zoning Commission
Resources Conservation Commission
Riverfront Commission
Senior Center Commission
RESPONSIBLE STAFF PERSON
Fred Zehr, Airport Manager
Doug Boothroy, Senior Planner
Glenn Siders, Senior Building Inspector
Paul Bowers, Electrical Inspector
Ralph Taylor, Plumbing Inspector
Nancy Heaton
Drew Shaffer, Broadband Telecommunications
Specialist
Anne Carroll, Director, Human Relations
Department
Marianne Milkman, Planner
Andrea Hauer, Development Coordinator
Pat Keller, Planner
Michael Kucharzak, Director, Housing
and Inspection Services
Phyllis Williams, Civil Rights Specialist
Lolly Eggers, Library Director
Dennis Showalter, Director, Parks and
Recreation Department
Doug Boothroy, Senior.Planner
Richard Webb, Energy Coordinator
Monica Moen, Planner
Bette Meisel, Senior Center Coordinator
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City of Iowa City
MEMORANDUM
DATE: June 29, 1983
TO: Mayor, City Council and City Manager
FROM: Robert W. Jansen, City Attorney .
LJ
Off -Premises Signs in Public Right -Of -Way and Signs in Zones
Where Prohibited
The Council instructed me to prepare an amendment to the City Zoning
Code Sec. 8.10.35.3(E) which prohibits off -premises signs located
on public property by exempting off -premises signs which presently
exisL and to provide that such signs shall be eliminated at the end
of 20 years from the date of the amendment. In addition, a require-
ment shall be imposed that insurance coverage shall be provided to
Protect the City from aay liability.
The Council has asked that the amendment be prepared and ready for
enactment on July 5th. In our discussion at the informal meeting I
overlooked the fact that since this is an amendment to the Zoning
Code, it will be necessary that the amendment first be submitted to
the Planning and Zoning Commission as required by the Zoning Ordinance.
We can have the amendment ready for P F, Z at their July 7th meeting
and, if recommended, ready for passage by the Council on July 19th.
An additional complication has just come to light. The Housing and
Inspection Service staff pointed out to me that the On Iowa property
was rezoned to an RNC -20 classification as part of the College Hill
rezoning. However, when the amendment was enacted, no provision was
placed in the sign regulations delineating what type of signage would
be permissible in the new RNC -20 zone. In any attempt to resolve this
problem for Mr. Waltz, this aspect will also have to be considered.
We will do all that we can to expeditethis matter, but since this is
an amendment to the Zoning Code it will have to go through Planning
and Zoning first.
I am sending a copy of this memorandum to Mr. Waltz so that he is aware
of the situation.
cc: Mike Waltz
Glen Siders
Richard Boyle
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City of Iowa City
MEMORANDUM
DATE:
TO: City Council and City Manager
FROM: Denny Gannon, Assistant City Engineer
RE: Opening of Median on Melrose Avenue for PAD of Lot 62
MacBride Addition. Status of Plantings in Median.
Preliminary and final PAD for this subdivision was formally submitted in
January, 1983. The opening of the median was included as part of the
pand reliminary
Planninglandat and ZoningaonrMardiended bstaffthe 17, 1983, and, City CounciYlson
whenlPart983. This is the of a subdivision.normal Medianrcutsure notfor partlofwansubdivisionts
are brought before Council for approval before being allowed by Public
Works.
During review of the construction plans in mid-April of 1983, Nancy
Seiberling of Project GREEN was contacted by Lee Tippe, Civil Engineer
for the City of Iowa City, regarding the plantings in the median that
are proposed to be displaced. Mrs. Seiberling wanted the developer
to contact Project GREEN when the developer was ready to move the
plantings, whereupon Project GREEN would work with the developer in
relocating the plantings. This provision was made part of the con-
struction plans before they were approved.
In subsequent discussions it has been determined that the plantings
can be relocated and the developer and Project GREEN are working
together to achieve that goal.
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City of Iowa City
MEMORANDUM
Date: June 29, 1983
To: City Council and Neal Berlin
From: Denny Gannon
Re: Scheduling of Work on Benton Street and Burlington Street
Weather permitting, work on Benton Street should be completed during
the week of July 11-15, 1983.
According to the engineer for Northwestern Bell Telephone Co.,
equipment and materials will be transported to the work site adjacent
to Burlington Street and Grand Avenue during the week of July 11-15,
1983, whereupon construction and subsequent traffic lane closings
could be delayed until July 18, 1983.
The following areas within the telephone company's project are
scheduled to be completed by August 22, 1983, before the beginning of
school:
1. The crossing of the Burlington and Madison Streets
intersection along with the north two lanes of Burlington
Street between Madison Street and the north river bridge.
2. The crossing of Riverside Drive between Burlington Street
and Grand Avenue.
3. The crossing of Grand Avenue at its intersection with
Byington Road.
The engineer for the telephone company did express concern regarding
any further delays if the above-mentioned crossings are to be
completed before school starts in the fall.
Weather permitting, the entire project is to be completed by mid
November of 1983, disregarding further delays. Beginning September,
all roadways will be totally open to traffic on, at least, rocked
surfaces between noon on Friday and 6:00 AM on Sunday.
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