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Home My WebLink About1983-10-11 Info PacketCity of Iowa Cit. MEMORANDUM Date: October 7, 1983 To: City Council and Waste Water Facility mmittee From: Neal G. Berlin, City Manager Re: Waste Water Treatment Needs - Summary of Recommendations A. GOAL The City wants to be certain that the proposed waste water collection and treatment program is the most cost effective and environmentally sound alternative for achieving the goal of satisfactory waste water collection and treatment. B. BACKGROUND OF NEED The 1970 report prepared by the City's engineering consultant, Veenstra & Kimm, entitled "Sewerage Service Study Southeast Area" reviewed the capacity of the existing sewer plant based upon actual daily flows and the organic loading in pounds of biochemical oxygen demand (800) per day. This analysis took into account only the design capability of the plant and not current effluent require- ments, bypassing during wet weather, or the provisions of public law 92-500, which was passed in 1972. Based on the 1970 flow and BOD contributions, the consultant estimated that the existing treatment plant would be able to service a population equivalent of 73,000. The treatment plant currently is exceeding the design capacity for both flow and BOB contribution, as is indicated in the following chart: Design 1970 % of capacity 1983* % of capacity Flow, mgd 8.0 5.75 72% 9.0 112.5% BOD, pounds 11,000 7,000 64% 11,590 105.4% per day *Average day, months of June, July, Aug., Sept. 1983 (an abnormally dry period). As indicated, the treatment plant currently is exceeding the design capacity and is serving a population equivalent in excess of 73,000. This is one of the major factors which necessitates new sewer plant construction. In addition, it was determined that the existing plant could not meet the effluent standards provided for under the Federal Water Pollution Control Act Amendments of 1972 (Public Law 92-500) and the Clean Water Act of 1977 (Public Law 95-217). The rules and regulations associated with these acts established effluent standards, prevented bypassing and set forth criteria for secondary treatment facilities which were not in effect prior to 1972. o?0 7` 2 New treatment facilities were then planned for an equivalent population of about 100,000 including organic loads from residential, industrial and institutional users. B. INDEPENDENT EVALUATION Earlier this year the City retained Professor Richard R. Dague, Ph.D., P.E., of the University of Iowa, who is recognized both in the State of Iowa and nationally as expert in waste water collection and treatment. Professor Dague's expertise was noted in the September 29, 1983, issue of the Press -Citizen: "Richard R. Dague" "Richard R. Dague, a University of Iowa professor iof engineering, has been named the 1983 winner of the Philip F. Morgan Medal by the Water Pollution Control Federation. Dague, who will be honored at the WPCF's annual conference in Atlanta, Ga., next week, was cited for his work in the field of anaerobic digestion and in the modifications of small plants to improve their stability. Dague has received the federation's Service Award for his contributions to the WPCF and for serving as president of the Iowa Water Pollution Control i Association. Dague operates a private engineering practice in addition to his UI duties." jProfessor Dague's conclusions and recommendations from his report of June 1983, are as follows: i "A. Conclusions 1. The City should move toward the development of a new wastewater treatment plant at a new downstream site along with the required outfall and interceptor sewers to transport the wastewater flows to the new downstream site. In view of financial constraints, the improvements should be developed through a phased program, somewhat along the lines proposed in this report. 2. The City should re-evaluate the wastewater treatment concepts that have been applied in the past with consideration of the new, relaxed effluent criteria." (NOTE: Regulatory agencies V 3 recently have indicated a willingness to again consider methods of treatment other than activated sludge.) "8. Recommendations I. It is recommended that the City proceed with a more detailed study to evaluate the concepts that have been proposed in this report. Emphasis should be on the costs of the various phases and a critical examination of the technical feasibility of each phase. 2. It is recommended that the City proceed with the study of the performance of the old wastewater treatment plant, as previously proposed by the writer. The results of this proposed study will add greatly to the understanding of the potential of the various approaches to treating the Iowa City wastewaters, either at the old plant for the interim period or at the new plant over the long period." The Waste Water Facility Advisory Committee unanimously adopted i Professor Dague's recommendation on June 15, 1983. C. DETAILED - PHASED PROGRAM As a result of that action, Professor Dague and the City's engineering consultant, Mr. Jim Kimm, jointly undertook a more detailed study. The goal of the detailed Dague and Kimm study was to "achieve the necessary improvements at minimal cost without sacrificing the required performance of the collection and treatment system." An executive summary, the detailed report and an addendum are enclosed. The report: 1. Developed a detailed phased construction program; 2. Considered alternatives for both collection and treatment, and 3. Evaluated interim treatment alternatives. As a result of the study two significant changes are recommended. These are: 1. Redesign of the southeast interceptor sewer utilizing a screw pump lift station and minimizing the depth of the sewer. This change results in a savings of approximately $1 million. Ci 4 2. Use of an oxidation tower, which is analagous to a rock trickling filter. This provides a savings of $700,000. The oxidation tower provides for ease of operation, minimizes sludge production and provides low operation and maintenance costs. This process is substituted for the activated sludge process which was originally proposed. In addition, Professor Dague will continue to work with the City in a study of the current plant operation to determine whether or not additional system process changes can be made in the new plant. This continuing study will take into account both operating processes and changes in standards which may be considered by state and federal agencies. It is possible that the recommendations of Professor Dague could reflect positively on the sizing of the oxidation towers along with other changes which would provide for additional savings. D. PRIVATIZATION The City retained Arthur Young & Company of New York to study privatization. The City desired to determine whether or not private construction and operation of the waste water treatment plant would be more cost effective than public financing and operations. An executive summary and the detailed report are enclosed. The Arthur Young study has concluded: 1. Private construction, ownership and operation of the waste water treatment and collection system is advantageous for Iowa City. 2. A 15-20% savings in the per dwelling charge for debt service as a result of privatization is expected (conservatively estimated). E. RECOMMENDATIONS It is recommended that: I. The City acquire all land and easements necessary for the construction of the new plant and necessary trunk lines and outfall sewers as quickly as possible; 2. The City award a construction contract for the southeast interceptor sewer at the earliest possible date; 3. The City borrow $11,000,000 or such lesser sum as may be warranted based on actual bids and use of reserve funds, for construction of the. southeast interceptor sewer. This expenditure would increase the immediate charge for the average user approximately $1.25 per month. aO 7/a 4. The City proceed to receive information from consultants who will assist the City in preparing and receiving requests for proposals for privatization of the wastewater treatment plant. 5. The City reserve a decision concerning the waste water treatment plant until: (A) there is a congressional decision relating to 5.1564 which would amend the Internal Revenue Code to deny certain tax incentives for property used by governments and other tax exempt entities, or (B) until a state decision is reached on the reallocation of federal funding; but in no event (C) later than would be required to serve the southeast interceptor sewer, which is estimated to be January, 1985, with treatment at the new site or a forced main to the existing plant. The southeast interceptor sewer is scheduled for completion in April, 1986. The City Manager has had discussions with Senator Grassley's staff concerning 5.1564. Senator Grassley is a member of the Senate Finance Committee which is considering this legislation. Apparently, Senator Grassley will propose an amendment which would exempt wastewater treatment plants from the restrictive provisions of 5.1564. 6. The City consider two alternatives for construction of the waste water treatment plant: (A) private financing and operation of the waste water treatment plant with purchase of the southeast interceptor sewer as an integral part of the plant, or (B) public financing of the waste water treatment plant probably with 55% federal funding when such funding becomes available. Proceeding with land acquisition and the construction of the southeast interceptor sewer allows the City to proceed with the project at this time without obligating the City to a decision relating to construction of the plant when we do not know whether there may be a change in the status of federal tax legislation or federal funding in the near future. This action provides the greatest number of options for the City. This proposal will be discussed at the meeting of the Sewer Facility Committee on October 11, 1983, at 3:00 p.m. in Room A of the Public Library. cc: Council Candidates bj/sp ao76 IOWAZtCITY SRA FT PRIVATIZATION FEASIBILITY STUDY AY/PRIVATIZATION'" CONSULTING SERVICES John Balmer Clemens Erdshl Prepared for the City of Iowa City City Council Mary Neuhauser Mayor Larry Lynch Kate Dickson City_ Manage Neal 0. Berlin Finance Director Rosemary Vitosh ha ° o VQ Iloum A MEMBER OF ARTHUR YOUNG INTERNATIONAL September 1983 David Perrot John McDonald .?076 Ci IOWA CITY PRIVATIZATION FEASIBILITY STUDY Executive Summary Background Privatization is the approach of attracting and utilizing the private sector to provide certain services to the public. Privatization as it applies in the wastewater treatment area may involve the private sector's financing, owning, construct- ing and operating the treatment facilities. Recent feasibility studies across the country are showing that a private business approach coupled with tax benefits makes privatization possible. The concept of privatiza- tion for local government was enhanced with the federal tax law changes enacted in the Economic Recovery Tax Act Of 1981. These recent changes in the tax law allow accel- erated depreciation of equipment for tax purposes over five years and of structures over 15 years, about half the t previously allowed. Other tax benefits avail- able to aid the private owner include investment tax credits and the deductibility of interest expense on bor- rowed funds used to construct the facility. In addition, privatization may offer construction efficiencies since a private firm can negotiate with many contractors in an effort to obtain design input and secure quality work at the lowest possible price. The project implementation time can also be shortened which provides additional cost savings. Iowa City recognized the urgency and complexity o present situation as well as its future needs andf hasits authorized Arthur Young to analyze its financial options for moving forward. In view of the limited availability Of federal grant monies, the principal alternatives eval- uated in the following sections of the report include the option of municipal or private sector financing under four implementable schedules. .; o7,G -2 - Conclusions of the Analysis Based upon our analysis and the assumptions therein, we have concluded that private sector construction, ownership, opera- tion and maintenance of the wastewater treatment system is a viable and economically attractive alternative for Iowa City. Privatization can offer Iowa City the opportunity of imple- menting a wastewater project at a cost which is less than 100% local financing. There are issues from a management, legal and implementation perspective which must be addressed in order to properly proceed with the approach and protect the City's interests. In addition to the firms which have previously contacted the City we believe that many other firms will be interested if the City should pursue the privatization approach. The approach as presently proposed was developed by the City's consulting engineer. The alternatives are briefly presented in Table 1. Compared to the conventional financing approach, a properly structured privatization transaction should result in appro- ximately a 15-20% savings in the per dwelling charge for debt service. We believe that the assumptions utilized in our analysis are somewhat conservative and a competitive Procurement approach could potentially result'in an increase in the potential savings.. Thiti statement is strongly depen- dent upon the accuracy of the engineer's cost estimates. These resultant costs are based contained in the report. upon the key assumptions Our analysis was also performed to determine the estimated user charges under three additional scenarios. The first is that grant funding is realized for the entire project at the 60% level, (55% Federal 5% State). The second is a "no action" a07, w** -3 - approach where it is assumed no new construction or improve- ments are made and the existing plant continues to be operated in its current condition. These two scenarios are unrealistic in nature but for comparison purposes were evaluated. The third scenario provides for the treatment plant to be priva- tized while the remaining portions of the project realize grant funding. Under this scenario, it was assumed that construction would be concurrent and occur in 1985. The anticipated eligibility of the remaining non -privatized pro- ject was provided by the City's consulting engineer after discussions with the IDEQ. Tables 2 through 4 describes the appropriate user charge information for years 1 through 25 for the alternatives, as well as the three additional scenarios evaluated. The information is provided in tabular as well as graphic form for easy comprehension and comparison. On Table 5 the estimated savings that could be realized by Iowa City over the transaction period are presented. The amounts listed are the differences between the annual debt service for municipal financing and the service charge (excluding 0&M) being charged by the private sector for that particular alternative. Additional detailed information tions and issues of a proposed are discussed in the report. Recommendations as well as key considera- privatization transaction The primary recommendations of the study are: 1. We recommend that the Iowa City project be pursued through private construction, ownership and operation. The exist- ing facility could be sold at a negotiated cost which may be relatively low to the private sector if the need arises. The private sector would be responsible for the construction of the necessary facilities, upon the com- pletion of the design efforts still needed. The land necessary for the new treatment plant should be purchased by the City and it is envisioned that the City can then lease the land to the private sector for one (1) dollar per year. By structuring the land issue in this manner, property taxes could be avoided on the land. However, property taxes on the improve- ments to the land would be imposed. Vf 0 %` Li J -4- 3. The City should issue Industrial Revenue Bonds (IRB's) to finance the private sector's construction of the system. This will provide the private sector with lower financing costs and enable the private firm to offer a lower user rate to the city. 4. The privatization transactioo must ensure that the City can purchase the system at some future date. There are several methods available to the City to provide at least some or all of the required funding for the eventual purchase. It should be noted that any repurchase approach would have to be discussed further with your advisors to ensure the desired results. 5. For the 20 year bonds,. bond security in the form of a reserve fund and bond insurance have been included. The exact requirements for bond security will have to be ascertained at a later date by bond counsel. 6. Other unique facets of the transaction could be the establishment of a rate reduction fund, which would be the interest earned on the investment of the bond reserve fund from year to year. These funds would be used to reduce the annual amount due the private sec- tor in the form of their service charge to Iowa City. Also, Iowa City realizes 370 on every dollar of Property taxes it collects. This factor can be util- ized to help offset the property tax burden the priv- ate sector is faced with. Thirty seven percent•of the taxes collected can be channeled into a user rate reduction subsidy. The net effect of this would be that the private sector would only be passing on to the users 67% of the total property tax. This facet Is included in our analysis. 7. The City may wish to consider alternative methods of addressing service charges from the private firm. One option available is incorporating an escalating service charge as part of the transaction. This would allow for lower service charges in the early Years when the number of users are the lowest. The transaction could also be structured with or without a guarantee that the last year's service charge would still be below what the annual debt service would be under the municipal financing approach. -5- 8. The implementation plan for the Iowa City privatization project would enable a transaction to be structured in accordance with the diagram on the following page. As shown, the private sector firm provides start-up equity to enter into the transaction. A summary of the sub- sequent events is as follows: • Through a competitive procurement, the City signs an agreement with the private sector firm for construc- tion, ownership, operation and maintenance of the treatment system. • The City issues IRBs to finance the private sector's construction of the treatment system. • Proceeds from the bond sale are collected by an inde- pendent trustee. The proceeds are used to finance the construction. Any disbursements from the fund are made by the trustee. • Payments to bondholders are made through the trustee by the private sector firm. a o7G ■ n `J J PRIVATIZATION TRANSACTION PRIVATE WHOLESALER OF TREATMENT SERVICE CITY SECTOR • Provides • issues IRB start-up equity • Signs take -or. to enter Into • pay agreement Monitors transaction prlvale sector • Constructs performance treatment • Retains right system to repurchase • Owns and SERVICE FEE ity Col o operates great. — — a Collects ment plant service fee s Responsible from users for meeting treatment IRB standards ISSUE 1 1 TRUSTEE ............................... NEW _ L — — — BONDS AMORTIZATION OF DEBT _ — — AMUAC w ••.•••••. BOND ISSUE PROCEEDS MITI — —REVENUES Ci TABLE 1: Alternatives t ALTERNATIVE 11 PHASED APPROACHED AS PROPOSED TU—f Pbssa III[S IOQQ 1DDS TU 1. Near Treatment Plot ■ a ■ a E. Old Treatment Pleat ■ ■ ■ S. Effluent Sewer ■ d. Be Interceptor Sargeant ■ A. Outfall Ewer ■ e. fsiosesdoea Mreacb a •, T. Mehahllltstlon of Bovero ■ M. BE Interceptor - Upper Reach ■ M. UnNeroltY Nelgbt@ Sewer ■ 10. Oslfwil Mellor Esser a Is. eater Nolo a ■ - Indicates eo■etractiee of specific closest. •. Outfall Relief tewor , 10. Mater Male a ' ■ - fedlwtei tooetrvctlon of @pacific 91eSunl. e ALTERNATIVE III CONSTRUCT ENTIRE PROJECT 1985 if t. Nw Treatment Plast I� R. Effluent Sewer ■ S. BE Interceptor a d. Outsell Sever ■ M. hlrmerdoes branch ■ e. Rehabilitation of Sewers ■ F. BE letercepter - Upper Reach ■ Ot University Heights Sewer , •. Outfall Relief tewor , 10. Mater Male a ' ■ - fedlwtei tooetrvctlon of @pacific 91eSunl. e z ALTERNATIVE Ilii PHASED APPROACHPON I� TION PLANT AND MAOR ' or CONVEYANCE► SYSTEM CONSTRUCTIONRTION IN 1985. IN 1990 CONSTRUCTION OF REMAINING PORTION OF PLANT AND LAST BEGNENT or CONVEYANCE SYSTEM* i Phase �—Ii11s i 1. Mer Treatment Pleat ■ e R. Old Treatment Plant a S. Effluent Sewer • i d. SE Interceptor Segment , 5. Outt■ll Sewer ■ R. ►alrmesdows !reach a T. Rehabilitation of Severe R. BE Interceptor - Upper Ruch ' e. University "eights $@we 10. Outfall Relief Sewer 11. eater tale , - Indicates construction of specific Slee@*&. I 0 - !true 7 through 10 Sure entitled 1■ tots analysis me they are projected to occur In JOBS and 7000, loss represent the minor portion of the @*tire project and would be the lust attracti►S to too private ,sector. ALTf10A1TIVE IVt ENTIN► PLANT AND RUM PORION Or MR VLYANM San IN 1985* 1. New Treatment Plant ■ • E. Effluent Sewer ■ , S. RE Interceptor ■ d. Outsell Sewer ■ B. Falrmesdave Breach ■ B. Rehabilitation of Sewers 1. SE Interceptor - Upper Reach e. University Notable Sewer 9. Oulfsll Relief $ewer 10. talar Nate ■ - Indicates co■strvelles of specific flee**&.. w - items R through to fors emitted to this eaatfwig ss they are projected to occur Is IIPS sed 7000. loop represent the minor portion of the entire project 1 and would be the leant attractive to the privet* sector. Notes All alternatives will be evaluated for private sector i financing as well ■e munlelpat fle@*eles. All alter- native& will be tin■Dcad by revenue hoods wader the municlPst fleanclas option. For private sector finsecieg, all alterestives will be aeolyaed ■amusing the use of Industrial Message Ronde. For a sample privatization approach, the use of 100& privet& floaoclos to lieu of IRB'* will be assessed to tome Of potential coal Impacts. z i 0 TABLE 7: SUMMARY OF USER CHARGES/ f per 7 months for e1 1 typlul dwelling / 79 75 51 13 36 39 Ie u n 19 u 11 39 51 17 s9 S1 sl Is n 11 u 61 53 56 50 59 57 57 I1' l5 17 77 97 91 f1 51 i7 f1 61 S6 11 S6 77 IOI e9 75 69 76 71 73 67 5) i1 1S It2 100 e7 e1 90 117 is 90 69 79 S9 USER 10 CHARGE �l PER J TYPICAL 9 DUELLING ($ PER 2 MONTHS81 .74 i 6( 5Q 1 I J 40 f � 30 20 I TABLE 3: USER CHARGES KEY PRIYATIZATinN AVTRANAMTII0 i User 90 J Charge Per Typical 80 Dwelling ($ Per 2 monthI9 60 50 40 1 30 �� JJ 20 TABLE 4: User Charges Additional Scenarios Scenario KEY A = Grant Entire Project A B C B = No Action C = Plant -Privatization Rest of Project -Grant 1986 1991 1996 2001 2006 YEAR 2010 0 C J TABLE 5 LLs117wa line s- POEM W6t3 COMM I VM NEW N MOM W 0 126000 621000 741070 741000— 1 426667 567777 761000 6M0O 2 626000 517702 711000 611101 3 421000 661116 741W0 561161 1 62600 CAM 74100 SIOI91 5 101000 QTSO 121000 76"42 6 107000 511106 124100 0941 7 103700 S= 1210000 621116 1 11'AOW 11607 121000 57669 9 107060 0664 126000 525111 10 11200 62631 1976000 751113 11 IOM 91307 115100 6654 12 IOM 519361 I"M 12942 13 11700 477157 1M4W 71676 11 142006 QTZA 19x00 SL476 V VIM 661252 95500 7771 u VIM 519775 32500 YOM V VIM !LISP 315500 4084 11 271MA 617117 ZrAW SSW V VIOO 173107 2MO =It 20 VIM 602121 MW WU a VIM 364206 375700 ITISO 11 VIM 91917 ]D10W 3"06 25 vim 70261 32"m 3012 24 vim 337134 325O0 7046 t2D/251 •16110M M.96M1m 11 NOM N MOM N ---11600 1410000 175700 170000 1610000 IWM MM 157041 1660000 Il"KI 1730070 I1MR 1610000 1011073 175700 129175 I44O0 967772 173100 1111612 14100 MIIY 171006 101196 116000 IVDA IrJM 976560 1160070 731941 173000 W764 1160700 611771 V3M M70x 1610000 440701 175700 733619 1/600 777112 17`00 4100 16100 50011 175700 60661 166000 66121 PROW 35= 116000 IVIV IrJVA 701119 16700 7791" VO000 65567 16400150 36015 V30W 111141 144OW 313716 1270000 VIM 144WM 714116 173000 XVI 116000 a1M 17300 71133'1 166000 21562 1730700 712069 161000 15100 17100/ 157117 161000 191541 IMOD 773776 161000 17417 =0 UM4 I64O0 17117 lrA0W IMM 1167000 141" 17.1000 IW •loom -V`Vm 1126"11% III MOM N IOM N ........... ....»..».—..»..»..«... 16600 1670 10700 1070000 6WW 71M 10:0070 571361 66" 71WA 17000 61210 16100 69171 10000 75761 16100 710126 16000 101501 156100 Kim 1900000 1119171 11600 691141 190000 IU3W 1*40O 11210 1MOO "5000 176600 71941 190000 IIWI 06600 671"2 IKM 10576 156100 610701 170600 1m9 15600 50317 IMWW IM9L 116600 3011 19100 60319 156600 64121 I1010O 550x2 1161000 6VI1/ I9100O 5007141 15660 Y9I91 190600 6416 15600 7673 19000 617"7 156000 31'336 19000 3"96 151100 x1691 17000 71732 Is"m 156"7 390000 LOW 156600 77562 1"01500 x433 15600 33100 1"000 IW41 151410 19661 1901111 m10I L&AM VWI 190000 L2111 I%" xMll IM0O0 Im" •U61311 1S3m ALMOTM N NIM N MOM " ................»...».....—.—.... 6701000 130M00 137000 357000 1100000 1119011 157000 IWM 1301000 IOIOM2 117000 127571 706070 IUM 07WW IIM6 13070 MLO L37M IwmI 120100 1116 1370100 97" 1701000 73117! MOM 0224 12770 471611 1570100 7x50 170100 6101" WIN) 733/17 17MW0 5720 1510057 67633 11MOW "I L57OO 60570 ILMO 6641 IF/= 5x771 12700 61u6 157000 70150 170100 7101 IV= 6071 ' 170100 3"AY 1907 61700 13100 111125 li'100W 7710 121100 31409 D700 31101 130600 2SOII 157000 MUIS ' 130100 Was IV= 67571 I70M0 L7W 07MW WH ILMO 19626 1770000 Inn 111700 VOSI 137M00 LIM I JIM 17661 157000 1970 110600 14073 1570000 LMM ' UD W 11397 19000 39"5 171000 25171011 � I. PRIVATIZATION - AN OVERVIEW Introduction Many innovative public managers are looking for alternative methods for financing their water and wastewater treatment needs in the 1980s. Cutbacks in federal funding programs, higher municipal interest rates and existing local debt bur- dens are just several of the many reasons why the public sec- tor has begun to analyze alternatives to conventional financ- ing. The concept of "privatization" is proposed as a viable source of alternative financing. Privatization is the ap- proach of attracting and utilizing the private sector to pro- vide certain services to the public. Privatization as it ap- plies in the water and wastewater treatment area may involve the private sector's financing, owning, constructing and/or operating the treatment facilities. Privatization can also involve refinancing an initial investment with the assistance of the private sector. Privatization - why is it feasible? Recent feasibility studies are showing that a private business approach coupled with tax benefits makes privatization possible. The concept of privatization for local government was enhanced with the federal tax law changes enacted in the Economic Re- covery Tax Act of 1981. These recent changes in the tax law allow accelerated depreciation of equipment over five years and of structures over 15 years, about half the time pre- viously allowed. Other tax benefits available to aid the private owner include investment tax credits and the deduc- tibility of interest expense on borrowed funds used to con- struct the facility. In addition, privatization may offer construction efficiencies since a private firm can negotiate a o7c i - 2 - with many contractors in an effort to obtain design input and secure quality work at the lowest possible price. Addi- tional areas where construction cost savings can add up include the treatment process selection, facility size and project implementation time. We have met with private firms who are prepared to design and build facilities in one and one-half years. This type of timetable enables them to design for today and to be responsive to the community's growth needs on a timely basis. When these cost savings are included with the tax benefits, communities may be able to finance their treatment facilities at user charge rates which are less than through the use of public financing. Local Debt Limits In cases where local communities have been unable to obtain federal or state grant funds, they have traditionally turned i to the bond market to finance wastewater treatment.projects. many communities are reaching their debt limits and are often faced with prohibitive debt service payments. Privatization offers an opportunity for the local community and the One private sector to work together in financing a facility. option is to utilize private financing for the entire project. Another approach involves issuing industrial development bonds, whereby the public sector can provide the private sector firm with an interest rate below that which they could obtain elsewhere. where has it worked? The approach is relatively new in the wastewater field since federal grant monies have only recently become less available P? 076 s - 3 - and the tax laws became more favorable in 1981. There are case histories, however, in the water supply, resource recov- ery and wastewater disposal fields of the private and public sectors joining forces to meet local needs. One example in- volves a private firm which installs, owns and operates wells to supply water for various Texas communities. In another situation, a Connecticut industry owns and operates a sewage treatment plant which handles not only its own wastewater but also that of the local community. In addition to these cases, the concept of this public/private venture seems to be a logical extension of the current trend towards contract operations and maintenance of sewage treatment plants in the wastewater field. What private firms are interested? The interested private firms include technical firms which currently provide contract operations and maintenance services as well as the firms which have historically provided signifi- cant services of several types to the water and wastewater treatment industry. Given the expressions of interest we have seen nationwide, there would be no shortage of private techni- cal support for such an approach. However, while some tech- nical firms will actually seek to own facilities, many tech- nical firms will not have an interest in owning the facilities. In these situations, technical firms will be teaming up with a limited partnership of investors which would actually finance and own the facilities. We have worked closely with the investment banking industry on the public/private approach and have received assurances of their interest in structuring limited partnerships for these transactions and/or arranging the required financing• I - 4 - Summar In summary, privatization can offer communities the opportun- ity of implementing water and wastewater projects at a cost which is less than 100% local financing. There are issues from a management, legal and implementation perspective which must be addressed in order to properly proceed with the ap- proach. This report addresses the potential financial impacts of a private or municipal approach as well as several imple- mentation considerations which must be considered for the private sector approach. Ci J -5- II. BACKGROUND AND OBJECTIVES OF THE ANALYSIS The City of Iowa City operates a wastewater collection and treatment system which consists of sanitary collection and interceptor sewers, pumping stations and a trickling filter type treatment plant. with the exception of very small unsevered areas, the system serves all of the developed areas in Iowa City including tbe.campus of the University of Iowa. The system also serves the City of University Heights. The treatment plant was constructed in 1935 with major im- provements occurring in 1957, 1965, 1970 and 1973. The plant currently has a capacity of 8.0 mgd but experiences flows upwards of 9.0 mgd. The peak hydraulic capacity of the plant is often exceeded during storm events. The construction of the sanitary sewer system was begun in 1891 and currently includes approximately 144 miles of sewers. In addition to the plant having reached its capacity, efflu- ent limitations have become more stringent than the plant was originally designed for and the plant is inadequate to consistently meet those effluent limitations. The Iowa De- partment of Environmental Quality (IDEQ) issued new effluent limitations for the treatment plant in 1975 as a result of requirements contained in the water Pollution Control Act Amendments, Public Law 92-500. In 1979 these limits were revised and made less stringent. However, these revised limits still required the plant to be upgraded/expanded. Iowa City became involved in the federal grants program and received various grants throughout the years. In 1965, it received ■ $273,000 grant under P.L. 660 for increased treat- ment capacity. In 1973 a $342,000 grant was received under 07076 4 - 6 - P.L.92-500 for digestion improvements. A Facility Plan was also prepared for Iowa City to address the future wastewater needs. The work associated with the Facility Plan was funded under a grant in the EPA Construction Grants Program and was approved by EPA and IDEQ in 1980. I • The facility plan recommended abandonment of all existing treatment facilities and the construction of a new secondary treatment plant with additional interceptors, relief sewers and rehabilitation of portions of the existing sys- tem. The estimated cost was 57.2•million dollars. At the time of the Facility Plan completion, it was envisioned I1 that a federal grant and a state grant would cover 751 and 51 of the costs respectively. Iowa City would then be respon- sible for about 201 of this cost. Since that time the Clean Nater Act was amended in 1981 and the funds authorized by Congress for the Construction Grants Program were drastically reduced as well as the levels of grant participation after Sept. 1984. The City of Iowa City has been placed on the priority list for the State of Iowa and is not scheduled•to receive brant funds (if funds are still available) until 1991. In October of 1982 the City initiated additional analysis of its alternatives since it was believed that the city could not wait until 1991 to construct additional wastewater treat- ment facilities. A phased approach has been recommended in the absence of funding to try to alleviate the financial burden to the City. The phased approach would consist of four stages occurring in FY1P85-86, FY3990-91, FY1995-96 and FY2000-01. The total project construction cost is 46.3 r - 7 - J million dollars (1984 dollars) with about half allocated for treatment and half allocated for piping. The phased approach would include utilizing the existing plant in con- junction with phased construction at the new plant until Phase IV is completed and the existing plant can be abandoned. Iowa City has recognized the urgency and complexity of its present situation as well as its future needs and has autho- rized this analysis to evaluate its financial options on . moving forward with emphasis on the possibility of utilizing private sector financing for wastewater facilities. The alternatives evaluated in the following sections of the report represent the option of municipal or private sector financing under four implementable schedules. ao7a LI J 8 - I III. FINANCING ALTERNATIVES I Our analysis of the City's financial alternatives for address - Ing its wastewater system needs has focused on two sources of funding (local and private) and the potential economics under several project scenarios. The approach as presently proposed was developed by the City's consulting engineer. Briefly the alternatives are presented in the tables below: i ALTERNATIVE I: PHASED APPROACHED AS PROPOSED Phase A C D I ISS5 TM TM MM 1. New Treatment Plant x x x x 2. Old Treatment Plant x x x 3. Effluent Sewer x 4. SE Interceptor Segment x S. Outfall Sewer x 6. Fairmeadows Branch x 7. Rehabilitation of Sewers x 8. SE Interceptor - Upper Reach x 9. University Heights Sewer x 10. Outfall Relief Sewer x 11. Water Main x x - indicates construction of specific element. ALTERNATIVE II: CONSTRUCT ENTIRE PROJECT 1985 II 1. i New Treatment Plant x 2. Effluent Serer x 3. SE Interceptor x 4. Outfall Sewer x 5. Fairmeadows Branch x 6. Rehabilitation of Sewers x 7. SE Interceptor - Upper Reach x B. University Heights Sewer x j 9. Outfall Relief Sewer x i10. Hater Main x x - indicates construction of specific element. Ci EMME ALTERNATIVE III: PHASED APPROACH PORTION OF PLANT AND MAJOR PORTION OF CONVEYANCE SYSTEM CONSTRUCTION IN 1985. IN 1990 CONSTRUCTION OF REMAINING PORTION OF PLANT AND LAST SEGMENT OF CONVEYANCE SYSTEM* Phase IIA IIIB 1. New Treatment Plant x x 2. Old Treatment Plant x 3. Effluent Sewer x 4. SE Interceptor Segment x 5. Outfall Sewer x S. Fairmeadows Branch x 7. Rehabilitation of Sewers R. SE Interceptor - Upper Reach 9. University Heights Sewer 10. Outfall Relief Sewer 11. Nater Main x - indicates construction of specific element. • - Items 7 through 10 were omitted in this analysis as they are projected to occur in 1995 and 2000. They represent the minor portion of the entire project and would be the least attractive to the private sector. AI,TFRNATIVF. IV: EITIRF PLAIT AND MAJOR PORTION OF CONVEYANCE SYSTEM IN 1985• 1. New Treatment Plant x 2. Effluent Sewer x 3. RE Interceptor x 4. Outfall Sewer x 5. Fairmeadows Branch x F. Rehabilitation of Sewers 7. SE Interceptor - Upper Reach 8. University Heights Sewer 9. Outfall Relief Sewer 10. Mater Main x - indicates construction of specific element. • - Item's 5 through 10 were omitted in this analysis as they are projected to occur in 1995 and 2000. They represent the minor portion of the entire project and would be the least attractive to the private sector. 10 I Note: All alternatives will be evaluated for private sector financing as well as municipal financing. All alter- natives will be financed by revenue bonds under the municipal financing option. For private sector financing, all alternatives will be analyzed assuming the use of Industrial Revenue Bonds. For a sample privatization approach, the use of 100% private financing in lieu of IRS's will be assessed in terms of potential cost impacts. Alternatives II and IV included the construction of the entire new treatment plant in 1985. There are two principal reasons for this approach. The first is an estimated cost savings of approximately 2.1 million dollars (1984 dollars) which represents approximately a 9% savings in estimated treatment plant construction costs (1984 dollars). Additionally, if privatization is selected for implementation, the coostruction of a non -phased treatment plant is less complex and more attractive to the private sector. The pri- vate sector.under a phased plant approach would have to become involved in operating two plants with interim facilities being constructed and operated as well. To optimize a pri- vatization transaction the most attractive approach that meets the public's needs and economic constraints should be offered to the private sector. The phased plant approach has been evaluated under alterna- tives 11 and 3. Many other possible phased plant scenarios are assumed for all intents and purposes to be equal. The phased approach as proposed would entail, during phase IA, the continued operation of the existing plant with interim improvements made and the construction of a portion of the new plant to handle one third of the flow from the southeastern part of the City. Sludge from the new plant would be pumped ao�� Ci to the existing plant for treatment. In addition the efflu- ent sewer for the new plant and the S.E. interceptor segment would be built. Under Phase IB, the headworks would be ex- panded at the existing plant to accept overflows instead of bypassing these flows to the river. This excess flow would be conveyed to the new plant for treatment, via the construc- tion of an outfall sewer. Also, the Fairmeadows Branch inter- I ceptor will be constructed. Phase IC includes the construc- tion of the remaining biological treatment at the new plant, i with all flow receiving secondary treatment at the new plant. The existing plant will only provide primary treatment to its flow. The construction of the upper reach of the SE interceptor, University Heights Sewer and rehabilitation of sewers will also be included. The last phase will conclude i the construction at the new plant with the addition of diges- ters, primary clarification and the administration building. The abandonment of the existing plant will also be realized. The construction of the outfall relief sewer and water main will be accomplished. . Alternative II would entail the construction of the entire I' project in 1995. This would eliminate the need for any im- provements to the existing plant as well as the line between the existing and new plants. Alternative III is a phased approach for both the treatment plant and the conveyance system. Phase IIIA (1985) would involve the first two phases of alternative I previously discussed with respect to the treatment plant. Also included would be the effluent sewer, SE interceptor segment and out- fall sewer. Phase IIIB (1990) would involve the remaining treatment plant construction with abandonment of the existing plant along with the Fairmeadows interceptor branch. �l Lf - 12 - i Finally, alternative IV involves the construction of -Che entire treatment plant, effluent sewer, SE interceptor branch, outfall sewer and Fairmeadows interceptor branch concurrently in 1985. In alternatives III and IV the construction of the upper reach of the SE interceptor, University Heights sewer, out- fall relief sewer, water main and rehabilitation have been omitted in the analysis. They are considered for construc- tion and 1995 and 2000 and would be least attractive to the private sector. They also represent the minor portion of the entire project. All alternatives will include an evaluation of municipal funding using revenue bonds and private sector funding uti- lizing Industrial Revenue Bonds (IRB's). For a sample priva- tization approach, 100% private financing will be evaluated in lieu of IRB's to assess the cost impacts to the users. Iowa City's bond attorney supplied information concerning reasonable interest rates. The rates at present would be approximately 9% for sewer revenue bonds. Industrial develop- ment revenue bonds carrying security equivalent to that of a general obligation bond generally bear interest rates at least one percent higher. We have assumed a 25 year finan- cing period for the municipal financing alternative (as opposed to 20 year IRS's), as well as a 25 year contractual period under the private sector approach. 1 - 13 - IV. RESULTS OF ARTHUR YOUNG ANALYSIS A. General Considerations - Privatization Business Approach The timing and the particulars of the situation com- bine to make privatization a viable concept. Contri- buting factors include: The national market for private sector ownership and operation of sewage treatment facilities is now recognized to be in the billions of dollars. Many companies are mobilizing resources to estab- lish strong competitive positions. The cutbacks in EPA's Construction Grants Program, coupled with the regulatory thrust to enfore wastewater treatment standards, are contributing factors towards the development of private sector involve- ment. 2. Firms in the contract operations business are competitively bidding and agressively pursuing contract 0&M wastewater treatment opportunities. These firms need to add clients to earn profits through economies of scale. This factor can be a beneficial factor in the structuring of a privati- zation transaction. 3. Firms eager to establish national positioning for private ownership and operation should find this Iowa City opportunity particularly attractive. The community has a stable base of users with planned growth projected to occur in time. The City has a stable economy (i.e. low unemployment rate) and a history of high bond ratings. B. Tax Benefits - Iowa City Wastewater Treatment System • In addition to the business opportunity, the potential tax benefits of a privatization transaction were re- viewed. Our preliminary conclusions are as follows: 1. The vast majority of the treatment facility, pum- ping stations and sewer lines appear to qualify for 5 year accelerated write-offs under the ACRS depreciation schedules. 4076 - 14 - 2. The depreciation benefit assumes that the taxpayer is engaged in the trade or business of owning/ operating wastewater treatment facilities, and is available for all alternatives in this analysis. 3. Other costs involved with the project appear to qualify as 15 year ACRS accelerated write-off property and small amounts appear to be non -depre- ciable in nature. 4. The applicability of the investment tax credit (ITC) is available for qualifying 5 year property. The investment tax credit is applicable for all alternatives in this analysis. 5. 'In summary, the depreciation tax benefits for a qualifying taxpayer, or group of taxpayers, would approximate the following percentage of total construction cost. 5 yr.(%) ILM. Non -Depreciable (%) Alternative IA 93.7 .4 5.9 B 94 0 6 C 88.3 7 4.7 D, 69.3 26.5 4.2 Alternative II 88.4. 7 4.6 Alternative IIIA 94 1.7 4.2 B 74 24 2 Alternative IV 89 6.4 4.5 • Taxpayers interested in pursuing this privatization opportunity should perform their own analysis of the expected tax benefits. The preliminary conclusions presented above are not intended for use beyond the purposes of this report. Since the conclusions will vary depending upon the characteristics of the tax- payer(s), the nature of the transaction executed and among other factors, future legislation and/or inter- pretation of the relevant sections of the tax laws. C. Recommended Form of Transaction Our primary rcommendations are as follows: - 15 - We recommend that the form of privatization transaction be private construction, ownership and operation. The existing facility could be sold at a negotiated cost which may be relatively low to the private sector if the need arises. This is dependent upon the priva- tization approach selected by Iowa City (i.e., if the existing plant will continue to be utilized for a period of time in the selected approach). The private sector would be responsible for the construction of the necessary facilities, upon the completion of the design efforts still needed. It is assumed this design effort would be completed in conjunction with the consulting engineering firm that has been retained by the City. The land necessary for the new treatment plant is to be purchased by the City and it is envisioned that the City can then lease the land to the private sector for one (1) dollar per year. By structuring the land issue in this manner, property taxes could be avoided on the land. However, property taxes on the improvements to the land would be imposed. 3. The transaction could be structured to span 25 years with the utilization of 20 year IRB bonds. In year 21 Iowa City could, if so negotiated pursuant to the contract, substantially reduce its yearly charge to the private firm to reflect principally its operation and maintenance cost. The•City would continue to collect an equivalent operation/maintenance charge and service charge from its users. The service charges collected would be invested for the attainment of funds needed to purchase the wastewater treatment system. This investment of each year's service charges collected would continue for 4 additional years. By the end of the 25th year, substantial funds would be available to apply to the purchase from the private sector. The privatization transaction must ensure that the City can purchase the system at some future date. The above method is only one of the ways to ensure this purchase. There are many other methods available to the City to provide at least some of the required funding for the eventual purchase. For purposes of this analysis this method of illustration was selected for ease of discussion and the fact that it allowed for lower user charges in the early years of the trans - ,?076 - 16 - action when the number of users is at the lowest. It should be noted that this method as well as any other repurchase approach would have to be discussed further with your advisors to ensure the desired results. 4. For the 20 year bonds, bond security in the form of a reserve fund and bond insurance have been included. The reserve fund is 50% of the annual principal and interest payment and the bond insurance is 1/2% of the total of the annual principal and interest payments. The bond security requirements for the analysis have been assumed for illustrative purposes. The exact requirements for bond security will have to be ascer- tained at a later date by bond counsel. Other unique facets of the transaction would be the establishment of a rate reduction fund, which would be the interest earned on the investment of the bond reserve fund from year to year. To the extent the bond reserve fund is invested at a higher interest rate than that of the IRS's, your advisors should be consulted regard- ing the tax ramifications. These funds would be used to reduce the annual amount due the private sector in the form of their service charge to Iowa City. Also, Iowa City realizes 370 on every dollar of property taxes it collects. This factor can be utilized to help offset the property tax burden the private sector is faced with. Thirty seven percent of the taxes collected can be channeled into a user rate reduction subsidy. The net effect of this would be that the private sector would only be passing on to the users 67% of the total property tax. This facet is included in our analysis. 6. The City may wish to consider alternative methods of addressing service charges. One option available Is incorporating an escalating service charge as part of the transaction. This would allow for lower ser- vice charges in the early years when the number of users are the lowest. Increases in the service charge over time coupled with the increase in the number of users would still provide for reasonable user charges through the years. The transaction could also be structured to guarantee a last year service charge still below what tbe,annual debt service would be under the municipal financing approach. P? 076 Ci 17 D. Estimated Economic Impact Using a conventional municipal financing approach for the bonding of the treatment system as described in each alter- native, it has been estimated that the first year cost per typical dwelling for 2 months would range from $29 for Alter- native I to $51 for Alternative II. Compared to the conventional financing approach, a properly structured privatization transaction should result in approx- imately a 15-20% savings in the per dwelling charge. We believe that the assumptions utilized in our analysis are somewhat conservative and a competitive procurement approach could potentially result in an increase in the potential savings. This statement is strongly dependent upon the accuracy of the engineer's cost estimates. The first year costs for the various alternatives utilizing conventional municipal financing versus private financing are delineated in the table below. Alternatives I and III are phased approaches and the table has been expanded to show the first year costs after the addition of the j subsequent phase. Estimated Costs per Typical Dwelling Unit for 2 Months Municipal Private (IRB's) Alternative IA 1986 $32$21:25 B 1990 44. 38-39 C 1995 61 52-54 D 2000 92 81-82 II 1986 51 42-44 IIIA 1986 36 30-31 B 1990 58 50-52 IV 1986 48 40-42 The resultan$ costs are based upon the following key assumptions: Material variations in any of these assumptions could alter the anticipated economics of privatization. v7076 �l 1 - 18 - 1. With the exception of start-up equity capital, an Industrial Revenue Bond (IRB) will be used as the financing vehicle for the construction of the facili- ties. 2. The tax-exempt bond will be of 20 -year maturity and will pay interest at the assumed rate of 10%. 3. Depreciation on the eligible 5 -year and 15 -year property would be at percentages approximating those previously cited in this report. 4. The owner of the treatment system earns a fair profit on the operations and maintenance aspects of the agreement. S. The form of the proposed privatization transaction will be reviewed by appropriate internal and external legal counsel to ensure that the expected benefits and author- ities to execute the transaction are attainable. i - 19 - V. KEY CONSIDERATIONS/ISSUES OF A PROPOSED TRANSACTION There are a number of major considerations and issues which should be addressed by the City Council if the proposed pri- vatization transaction is to be pursued. These include: A. Recapturing Ownership of the System The privatization transaction must ensure that the City has the right to purchase the system at any time in the future at its then fair market value. This is essential to protect the public's interests. To provide the City with the finan- cial wherewithal to eventually purchase the facility if it is deemed desirable, we recommend consideration of the following: 1. Establishing a facility purchase fund for the system which will generate a fund consistent with applicable laws/guidelines. The fund could conceivably be funded by continuing to charge the users the identical private sector Service Charge for 5 years once the bonds are paid off. The annual payments would be invested and at the end of the five years, the fund should be sufficient to provide a significant portion of the purchase price. i The ultimate amount must of course be justified in relation to the fair market value of the facility. As noted previously, this method is just one of the ways to ensure the purchase at a future date. The City may wish to consider alternate methods in light of the effects on the user charges and tax considera- tions. Alternate methods include but are not limited to: a) Funds collected each year through user charges and placed in a dedicated fund. b) Issuance of a bond at the completion of the trans- action period. c) Establishment of an up -front reserve fund. 2. Specifying in the privatization contract the purchase price which should be a reasonable estimate of fair market value using appropriate methods. Depreciated value of assets, based upon economic service life con- siderations, should be one of the method(s) considered. Economic value, replacement value, and/or averages should also be considered. C. -20- 2. Specifying in the privatization contract the purchase price which should be a reasonable estimate of fair market value using appropriate methods. Depreciated value of assets, based upon economic service life con- siderations, should be one of the methods) considered. Economic value, replacement value, and/or averages should also be considered. 3. Ensuring that the fund is invested in appropriately secure investments and that the administration of the fund is perhaps handled by an independent trustee. Monitoring the Performance of the Private Firm The City should retain the right to have an independent firm of its choice monitor the operations and maintenance, record keeping, reporting, and other key responsibilities of the private sector owner/operator. The City must have the ability to ensure that the treat- ment facility is properly maintained and that regulatory compliance is achieved. Independent operational audits, and required correctional activity or penalty, should be built into the agreement. Tax Laws/Interest Rates/Construction and 0&M Costs For the alternatives presented particularly the phased ap- proaches, it is assumed that the tax laws will remain as they currently exist. It should be noted that the con- cept of privatization for later phases could be severely hampered if tax laws affecting the assumptions herein change significantly. There is pending proposed legislation, H.R. 1635 and also H.R. 3110 (the "Pickle Hill") which could alter the results of the transaction, for example by significantly reducing the depreciation benefits. Also specific interest rates are assumed and the interest rate at a future date is speculative and can greatly affect the financing and subsequent user costs of either a municipal or private financing approach Finally, construction and 0&M costs were assumed to increase at a rate of 8% annually. This again is subject to change and can affect financing and subsequent user costs. ao7G Li - 21 - D. Legal Issues Legal aspects of a privatization approach as it relates to the procurement of a private sector firm should be addresed by the City. The format of qualifications, sole source vs. competitive bidding, length of contract period, format of contract, sale of existing facilities (if necessary), among other things are very important and need to be evaluated. E. Environmental Regulatory Interface Some factors of concern here are: • pretreatment program • discharge permit requirements i • regulatory involvement in privatization • issue of possible compensation due the Government in connection with prior grants The compensation issue has been addressed in a preliminary manner and if the U.S. EPA through their regulations re- quire compensation, the City should request a deviation to those regulations through the State Agency. The mere fact that the Agencies approved a facility plan which called for the abandonment of the existing, grant funded facilities is strong justification for an approval of a deviation request. F. Other Implementation Issues • Legislative amendments should be pursued by Iowa City at the State level to seek: - exemption from the payment of local property tax on the land if it is purchased by the private sector and also upon the improvements constructed, owned and operated by the private sector. - exemption from Iowa Sales Tax on construction costs as well as materials and equipment purchased for main- tenance and operation after construction is complete. 0 ao76 -22 - - none of the above issues will prevent the City from implementing a privatization transaction. However, all efforts to reduce the cost to the private sector of providing wastewater treatment services will, in turn, allow the private sector the opportunity of reducing the required service charge. G. Completion of Design Efforts Design of selected alternative has to be completed as soon as possible to ensure a rapid movement towards a privatization transaction. Value engioeering of the design is recommended with the hope of securing addi- tional cost savings. H. The possibility of having the City assume the responsi- bility for 0&M on the pipes constructed by the private sector should be explored. I. Discussions were held with the IDEQ regarding the grant percentages if a federal grant were received today for the entire project. Although the State has declined to drop the grant percen- tage as proposed by numerous municipalities from 75% to 55%, the 55% federal grant share was utilized for purposes of this comparison. This was selected since some type of across the board grant percentage reduction would be needed to secure a grant for Iowa City, in view of the limited grant monies available and the projects ahead of Iowa City on the priority list. Therefore, with this in mind the non funded construction costs would be about $21 million dollars. This includes a 55% federal grant and a 5% state grant. For the above scenario the typical user charge per dwelling for two months in year 1 would be $27. J. After discussion with Iowa City an additional scenario was evaluated. That being the privatization of the treat- ment plant while the remaining portions of the project are covered by a grant. Under this scenario it was assumed that construction would be concurrent and occur in 1985. The anticipated eligibility of the remaining non -privatized project was provided by the City's consulting engineer after discussions with the IDEQ. This scenario yielded a user charge per dwelling in Year 1 for 2 months of $40-41. ao�� Gi J Vila -23 - K. If the entire project, on the other hand were constructed using private funds (no IRB's) the typical user charge per dwelling in year 1 for 2 months would be $48-49 assum- ing an interest rate of 13%. This is compared to $42-44 if IRS's are used. I L. An additional scenario evaluated was the "no action" approach where it was assumed no new construction or improvements being made and the existing plant continued being operated in its current condition. This scenario is unrealistic in nature but for comparison purposes was evaluated. This scenario yielded a user charge per dwel- ling in Year 1 for 2 months of $13. Y. The U.S. Environmental Protection Agency (EPA) considers projects to be expensive and an economic burden to the users when the total annual user costs exceed the following percentages of annual household median income (1980 dollars). 1% median income less than $10,000 1.5% median income $10-17,000 1.75 median income exceeds $17,000 For Iowa City, the median income in 1980 was $22,325 with 36% of the families earning less than that. These figures were obtained from the Official Statement for the Nov. 1982 G.O. Bond Issue. With those figures in mind, and assuming the median income to be only $17,000, the threshold annual user charge limit is $300. For each of the privatization alternatives set forth in this report the first year annual user charges are below this limit. ao74 ,J Ci Zq - VI. Implementation Plan The implementation plan for the Iowa City privatization project would enable a transaction to be structured in accordance with the diagram on the following page. As shown, the private sector firm provides start-up equity to enter into the transaction. A summary of the sub- sequent events is as follows: • Through a competitive procurement, the City signs an agreement with the private sector firm for construction, ownership, operation and maintenance of the treatment system. • The City issues IRBs to finance the private sector's construction of the treatment system. • Proceeds from the bond sale are collected by an independent trustee. The proceeds are used to finance the construction. Any disbursements from the fund are made by the trustee. • Payments to bondholders are made through the trustee by the private sector firm. This preliminary implementation plan synthesizes input and considerations expressed to us by external counsel. We have been advised that prior to the development of a detailed implementation plan, the recommendations and proposed tranaction set forth should be reviewed and approved by legal counsel and the State Attorney General. However, the City must begin to consider the steps necessary to implement the privatization approach. Upon selection of the private sector firm through the proper procurement proceedings, negotiations pertaining to the bond financing can be set in motion. PRIVATIZATION TRANSACTION PRIVATE WHOLESALER OF TREATMENT SERVICE CITY SECTOR • Provides •Issues IRB start-up equity • Signs take -or. to enter Into pay agreement transaction • Monitors private sector • Constructs performance treatment • Retains right system to repurchase • Owns and facility SERVICE FEE operates treat. — — — — — — — 40 Collects ment plant — _ _ service fee • Responsible from users for meeting treatment IRB standards ISSUE L TRUSTEE ............................... NEW ------ BONDS AMORTIZATION OF DEBT M ......••• BOND ISSUE PROCEEDS - -REVENUES 1 '1 �A i VEENSTRA & KIMM, INC. ENGINEERS & PLANNERS 300 WEST BANK BUILDING 1601 22ND STREET WEST DES MOINES, IOWA 50265 51S225.am July 27, 1983 Wastewater Facility Committee City of Iowa City Iowa City, IA 52240 Ladies/Gentlemen: In accordance with the actions taken at your meeting proceeded to conduct a detailed analysis of several Phased development of improvements in the wastewater system in Iowa City. We are pleased to submit this details of our findings and recommendations. of June 15, 1983, we have alternatives for the collection and treatment report presenting the We recommend that Iowa City proceed with its wastewater development program in four phases over the next 15 to 20 years. The total cost of the entire development program is estimated at $46.3 million. This includes $22.8 million for a new wastewater treatment plant, $950,000 for the effluent sewer to the Iowa River, and $300,000 for a new water main to serve the plant. The remaining costs include $900,000 for repairs to the existing wastewater treatment plant over the phased development period, and $21.35 million for various sewer improvements. Details on costs of the various elements are presented in Table 1 of the report. Our financial analysis assumes all local financing as a worst-case immediate scenario. Under these conditions, sewer fees on a bimonthly basis for the average Iowa City user would increase from the current rate of $8.93 to $26.00. Without inflation, this rate would be sufficient to fund all phases of the program. It is possible that private financing of the treatment facility and outfall sewers could reduce the amount of the proposed rate increaseLikewise, although this o federal fundingmmay bbeiavailable to Iowa tis et to be vCity tby thettime ithat Phase II of the program is begun. Although speculative at this time, the amount of the federal funding could be 55% of eligible costs. Under these conditions, the amount of federal funding anticipated for Phases II, III and IY would be $12,265,000, or about 26% of the entire program costs of $46.3 million. It is our belief that the phased development plan for wastewater collection and treatment presented in this report will insure that the citizens of Iowa City and its various industries and enterprises, including the University of Iowa, will be served well for many years to come and at a cost that is as low as possible at this time. R oX Ci l Wastewater Facility Committee July 27, 1983 Page 2 The writers will be presenting this report to you at a meeting in the near future. lie will be pleased to respond to any questions you have at that time or at some subsequent date. Respectfully submitted, J. W. Kimm, rest e Veenstra & Kimm, Inc. I Richard R. ague, 4074 I �l -a f CONTENTS Page EXECUTIVE SUMIMRY ES -1 INTRODUCTION PROPOSED PHASING 1 PHASE I 1 PHASE II 2 PHASE III 4 PHASE IV 5 SUMMARY 5 ALTERNATIVES INVESTIGATED 6 GENERAL 7 SOUTHEAST INTERCEPTOR SEWER 7 TREATMENT ALTERNATIVES 7 FINANCING 9 GENERAL 16 RATE REQUIREMENTS 16 FEDERAL FUNDI14G 17 17 TABLES TABLE 1 - SUMMARY OF CAPITAL COSTS BY PHASES TABLE 2 - CAPITAL COSTS SCHEDULE 3 TABLE 3 - NET PRESENT WORTH 12 13 FIGURES FIGURE 1 - SEWER IMPROVEMENTS FIGURE 2 - NEW PLANT - PHASED CONSTRUCTION Back of Proposal Back of Proposal EXECUTIVE SUMMARY A detailed evaluation of several alternatives for improved wastewater collection and treatment in Iowa City has been completed. The goal has been to achieve the necessary improvements at minimal cost without sacrificing the required performance of the collection and treatment system. A Program improvsnplanned a1enable tdevelopment the ementsovertenext 15to 20yearsinfourphase sat aftotal cost of $46.3 million without inflation. Phase I would include the construction of about one-third (4.3 mgd) of the liquid -stream portion of a new biological -oxidation -tower treatment plant at the new downstream site. This portion of the new plant provides capacity sufficient to treat the wastes from southeast Iowa City, to be delivered to the new plant through a new interceptor sewer, also to be built under Phase I at a cost of $10.0 million. The total cost of Phase I is estimated at $19 million, including $550,000 in repairs to the old treatment plant and $950,000 for an effl uent sewer from the new treatment plant to the Iowa River. Phase I is planned for completion by the end of calendar year 1985. Phase II would include the construction of the outfall sewer from the old wastewater treatment plant to the new plant at a cost of $7.0 million, expansion of the headworks at the new plant at $700,000, repairs at the old plant 00. Th total cost mof Phang se0II is000, nestimated atd the a$8.r5 million.s branch Phase II5iier at sOplannedefor completion by the end of calendar year 1991. Phase III would include expansion of the liquid -stream portion of the new plant to enable treatment of all wastewater flows from Iowa City. Primary treatment and sludge stabilization would remain at the old plant site. The cost for this expansion is estimated at $5.5 million. Phase III would also include $1.6 million for completion of the upper reach of the Southeast Interceptor, $600,000 for the University Heights sewer, $500,000 for rehabilitation of other sewers within the City, and $200,000 in repairs to the old treatment plant. The total cost of Phase III is estimated at $8.4 million and is planned for completion by the end of calendar year 1996. Phase IV is the final portion of the development program. This phase includes the construction of sludge handling and stabilization facilities, office, laboratory, and maintenance buildings at the new treatment plant at cost of $9.1 million. Phase IV also includes $300,000 for a water main to serve the new treatment plant and $1.0 million for the outfall relief sewer. It is expected that Phase IV will be completed by the end of calendar year 2001. A financial analysis was developed assuming all local financing of the phased development program. Under the worst condition, it will be necessary to increase the charge for the average user from the current bimonthly rate of $8.93 to $26.00. It is possible that privatization of the treatment plant portion of the program could reduce these costs, however, such an analysis was beyond the scope of this report. Also, federal funding might become available to assist in Phases II, III and IV of the program. At a 55% federal funding rate, this would provide about $12 million in federal funding, about 26% of the total cost of all four phases. ES -1 a707L J Considerable time and thought has been.devoted to the consideration of various alternatives for collection and treatment, especially alternatives for the Southeast Interceptor sewer and methods of waste treatment over both the short and long tens. It was found that the least cost and most sound approach to solving the southeast sewer problem is the construction of a screw pump lift station on the upper portion of the Southeast Interceptor sewer (near Sycore Street extended) with the sewer then flowing by gravity to the new am plant site. The addition of the lift station raises the Southeast Intercept average of about six feet. or sewer by an Interim treatment alternatives investigated included the use of the stonnwater holding pond as aeration basins for an activated sludge process to treat i wastes from the southeast side during the interim period (phases I and II). This alternative did not look favorable when compared with construction of a To the husithefconstructtreatment plant would eventually onofaportion ofthetreatment pl nt that ewill eserve the long -tens needs of the entire City is recommended. i ■ ES -2 Cr PROPOSAL FOR PHASED DEVELOPMENT WASTEWATER COLLECTION AND TREATMENT INTRODUCTION This proposal for a planned program for development of wastewater collection and treatment has been prepared in accordance with action by the Wastewater Facility Committee at its meeting on June 15, 1983. On that date, the Committee received and adopted a report prepared by Dr. Richard Dague. This report recommended that the City move toward the development of wastewater treatment facilities at a site downstream from the existing treatment plant, as originally planned, and that the development -of the plant and required collection facilities be completed in phases. The report presented a total of four phases for development of new treatment facilities and the Southeast Interceptor Sewer. The writers (Kamm and Dague) have conducted a detailed evaluation of several i alternatives for wastewater collection and treatment. Technical feasibility has been reviewed with representatives of the Department of Water, Air and Waste Management and general concurrence has been received. Financial feasibility is discussed in a subsequent part of this proposal. Cost estimates for the alternatives have been prepared and a plan for timing and financing the various phases with all local funding has been developed. The purpose of this report is to present the details of the proposed phased development program. PROPOSED PHASING It is proposed that the Iowa City wastewater collection and treatment program be developed in four phases over a period of 15 to 20 years. A description of -1- .j F d the elements of each phase is presented below. Cost estimates for each of the phases are presented in Table 1. Figure 1 shows the locations and phasing of the various sewers. Figure 2 shows the proposed phasing of the new treatment plant. PHASE I Phase I of the proposed development would include the construction of the i Southeast Interceptor Sewer at a cost of $10.0 million, an effluent sewer frau the new plant to the Iowa River at a cost of $950,000, repairs to the existing plant at $550,000, and a portion of a new treatment plant at the downstream plant site at a cost of $7.5 million. The total cost of Phase I is estimated to be $19 million. The Southeast Interceptor Sewer will include a screw pump lift station at its upper end that will reduce the depth of the entire sewer by at least six feet throughout its length and reduce costs substantially. The pumping facility will be located on Sycamore Street extended as shown on Figure 1. The portion of the new treatment plant to be built as a part of Phase I will be sufficient to achieve the required degree of treatment for the wastewater flows collected by the Southeast Interceptor Sewer. The design flow amounts to some 4.3 million gallons per day (mgd) of fl ow, or one-third of the eventual total flow capacity of the downstream treatment plant. The type of treatment proposed at the downstream site is biological oxidation towers (basically "trickling filters" with synthetic contact media) with appropriate primary and secondary settling basins. Phase I treatment will also include construction of the stonnwater retention basin to the entire capacity eventually required by the completed plant. The effluent sewer to the Iowa -2- :,' ao76 �4 TABLE 1 SUMMARY OF CAPITAL COSTS BY PHASES Phase I I Total I. New Treatment Plant $ 7,500,000 $ 700,000 $5,500 000 $9,100,000 $22,800,000 2. Old Treatment Plant 550,000 150,000 200,000 3. Effluent Sewer 500,000 900,000 � 8. SE Interceptor - Upper Reach 950,000 950,000 4. SE Interceptor Segment 10,000,000 1,600,000 5. Outfall Sewer University Heights Sewer 10,000,000 1,000,000 7,000,000 6. Fairmeadows Branch 10. Outfall Relief Sewer w 650,000 650,000 7. ' Rehabilitation of Sewers 500,000 500,000 8. SE Interceptor - Upper Reach 1,600,000 1,600,000 9. University Heights Sewer 600,000 600,000 10. Outfall Relief Sewer 1,000,000 1,000,000 11. Water Main Totals $T3,W0;0pU 38;50D066 00 38�D6OiTO ,3To-,30006 i River will also be built to its full capacity as a part of Phase I. The headworks for treatment of the entire plant flow, exclusive of stonnwater flows, will also be built in Phase I. Sludges generated at the new plant site will be pumped back to the'old plant until completion of the entire treatment plant at the new site (Phase IV). Phase 1 construction also includes repairs to the existing plant to maintain it in operable condition. These repairs include screening and grit removal facilities, fl ow metering, raw wastewater pumps, trickling filter distribution arms, final effluent pumps, and gas compressors. It is estimated that Phase I will be completed by the end of calendar year 1985. PHASE II Phase II of the proposed development program includes construction of the outfall sewer from the old plant to the new downstream plant site, at a cost of $7.0 million. Upon completion of Phase II (end of calendar year 1991), storm flows exceeding the capacity of the existing plant will be routed to the outfall sewer rather than backing up or overflowing to the Iowa River. The headworks at the new plant site will also be expanded to enable the pumpage of stormwater flows to the retention pond at a cost of $0.7 million. Phase II also includes an allowance for equipment replacement at the existing treatment plant in the amount of $150,000, and construction of the Fairmeadows Branch of the Southeast Interceptor Sewer at a cost of $650,000. The total cost of Phase II is estimated at $8.5 million. -4- a?oiG I _f Ci J PHASE III Phase III will include the construction of two additional treatment trains at the new plant site to increase the capacity of the plant to its full 13 mgd I design flow for secondary treatment, i.e. two more biological oxidation towers I and their clarifiers. The cost of this increased treatment capacity is estimated at $5.5 million. Phase III will also include repairs at the existing treatment plant in the amount of $200,000, construction of the upper I j reach of the Southeast Interceptor Sewer at a cost of $1.6 million, i rehabilitation of existing sewers to remove stormwater inflow at a cost of $500,000, and a sewer to serve University Heights at a cost of $600,000. The total cost of Phase III is estimated at $8.4 million, as shown in Table 1. It is estimated that Phase III will be completed by the end of calendar year 1996. PHASE IV The final phase of the development program is Phase IV, estimated for completion by the end of calendar year 2001. Phase IV would include the construction of facilities for the stabilization of sludges at the new plant site and other ancillary facilities, including offices, laboratory and maintenance shop, at a cost of $9.1 million. Phase IV will also include running a water main to the new plant site at a cost of $300,000, and $1.0 million for repair and replacement of the outfall relief sewer, as shown in Table 1. At the completion of Phase IV of the development program, the old wastewater treatment plant would be closed with all treatment operations being transferred to the newly completed downstream plant. -5- 07074 l SUMMARY As shown in Table 1, the total cost of all four phases of the program is estimated to be $46.3 million. Of this total, $22.8 million is for a new treatment plant with a capacity to treat an average wet -weather flow of 13 mgd of wastewater and a maximum wet -weather flow of 24 mgd. Excess flow will be handled in the stonnwater holding basin. A total of $22.3 million of the program costs are for various sewer improvements, as listed in Table 1. The remaining cost of $1.2 million is for repairs to the old treatment plant over the total development period ($900,000), and a new water main ($300,000) to serve the new treatment plant. -6- I ALTERNATIVES INVESTIGATED 1 GENERAL The Dague report suggested investigation of several alternatives, particularly with regard to the Southwest Interceptor Sewer and the new treatment facility. Also, previous to the Dague report, consideration was being given to increasing wet weather fl ows for final design of the interceptor sewer. Investigation of the various alternatives is discussed in the paragraphs Which follow. SOUTHEAST INTERCEPTOR SEWER Following preparation of the Facility Plan in 1979, IDEQ would not agree to the wet weather flows which had been projected by V&K. To obtain approval of the Facility Plan and to maintain eligibility for federal funding of the sewer, it was necessary for the City to agree to the IDEQ flows. However, when the federal funding situation became critical, the sewer was designed with two different pipe sizes, one for V&K projected flows, and a smaller size for the IDEQ flows. If federal funding is not going to be involved, use of the V&K flow projections is recommended. This will insure adequate capacity to eliminate most basement flooding. The differences in the magnitude of the flows in the various reaches is considerable, as evidenced by the following tabulation: Reach of Sewer Plant Site to Heinz Lift Station Heinz Lift Station to Rundell Upper Reach Fairneadows Branch -7- Projected Flow Rates lmilflon Gallons Per—D-ay—) V&K IDEQ 36 -40 23.3-23.5 24.5-29.2 17 -19.5 19.4 12.9 3.3-6.3 2.6-5 s Pipes sized for the Y&K flows were estimated to cost $1.2 million more than the IDEQ pipe sizing. Alternatives have been considered in an effort to use the larger pipe size (54 -inch vs. 48 -inch in most cases) and not increase the cost of the sewer over that cost estimated for the IDEQ sizing. One alternative suggested in the Dague report was a pumping station located near Scott Boulevard south of Highway 6 Bypass. Such a station would pump all flows west through a force main to the high ground. From that point west to the plant site the flow would be in a gravity sewer at a higher elevation than originally planned. This alternative resulted in a savings in capital cost, but high maintenance and power costs offset that savings. The alternative was discarded. Other alternatives to increase the sewer elevation were considered. The most feasible alternative involves placement of a screw pump lift station at a location as shown on Figure 1 (Sycamore Street extended). This is a relatively low cost installation sized for maximum wet weather flows. Operation and maintenance costs are relatively low. The large screws lift the flows to a higher elevation into a gravity sewer. No force main is involved. It is estimated that the storm water will be lifted to a height to provide for all of the Southeast Interceptor Sewer to be raised an average of six feet. Use of the screw pump installation can result in substantial savings in capital cost. It is cost-effective. Depending upon whether Y&K or IDEQ flows are used for sizing, the following savings can be realized based on updated costs: 10 a?oX It is recommended that the Screw Pump Gravity approach be adopted by the City. It is further recommended that the sewer be sized for the so-called V&K flows. The total estimated cost for this approach is $12,250,000. This is $1.4 million less than the cost for an all -gravity sewer using V&K flows. It is also less than an all -gravity sewer using IDEQ flows. The $12,250,000 figure has been used in the financial projections shown in a subsequent part of this proposal. TREATMENT ALTERNATIVES The Dague report suggested that the City of Iowa City evaluate interim approaches for the treatment of wastewater flows from the southeast sections Of Iowa City at the new downstream plant site. One possibility mentioned in the report was that of activated sludge, making use of the proposed stormwater retention basin as aeration basin(s). It was recommended that the concepts that were presented in the report, and the proposed phasing, be subjected to a detailed analysis to determine which approach provided the best overall plan. The writers have evaluated two basic approaches to treatment at the new plant site. The first is an extended aeration activated sludge approach that would -g- b r K4 V&K IDEQ Reach crew ump & Gravity ravity Only crew ump & ravity Gravity Only Plant Site to Rundell $10,000,000 $11,400,000 5 9,300,000 $10,500,000 I Fairmeadows Branch 650,000 650,000 650,000 650,000 Upper Reach Total s5,r}�j0� 1,600,000 1,600,000 S13,60f013'6STiL3lT,M 1,300,000 1,300,000 _$W40 I -10W It is recommended that the Screw Pump Gravity approach be adopted by the City. It is further recommended that the sewer be sized for the so-called V&K flows. The total estimated cost for this approach is $12,250,000. This is $1.4 million less than the cost for an all -gravity sewer using V&K flows. It is also less than an all -gravity sewer using IDEQ flows. The $12,250,000 figure has been used in the financial projections shown in a subsequent part of this proposal. TREATMENT ALTERNATIVES The Dague report suggested that the City of Iowa City evaluate interim approaches for the treatment of wastewater flows from the southeast sections Of Iowa City at the new downstream plant site. One possibility mentioned in the report was that of activated sludge, making use of the proposed stormwater retention basin as aeration basin(s). It was recommended that the concepts that were presented in the report, and the proposed phasing, be subjected to a detailed analysis to determine which approach provided the best overall plan. The writers have evaluated two basic approaches to treatment at the new plant site. The first is an extended aeration activated sludge approach that would -g- b r K4 f .f make use of the stormwater retention basin as aeration basin(s) for about the first 10 years of the development program (Phases I and II) for the treatment of wastewaters from southeast Iowa City. At the end of that period, the pond would no longer be used as aeration basins, but would be converted to its long -tern use as a holding pond to prevent wastewater overflows to the Iowa I River. Treatment of wastewaters from the southeast side would then be accomplished by the methods selected for the long -tern treatment of all wastewater flows from Iowa City. i It is believed that the best long-term treatment method for use at the new I Iowa City treatment plant is biological oxidation towers. These "oxidation I towers" are analogous to the old rock "trickling filters," but are much improved from the standpoint of consistent performance. The oxidation tower approach offers many of the same advantages as rock trickling filters, especially from the standpoint of ease of operation, minimizing sludge production, and low operation and maintenance costs. The type of treatment system that is being proposed is shown in Figure 2. The liquid stream treatment system includes a headworks for pumping and preliminary treatment, primary clarifiers, biological oxidation towers, final clarifiers, and effluent disinfection. Sludges will be stabilized by the anaerobic digestion process with land disposal of sludges, as currently practiced in Iowa City. The second alternative investigated for the treatment of wastewaters from the i southeast section of Iowa City is to build approximately one-third of the liquid treatment capacity of the proposed oxidation tower plant as a part of Phase I. This would provide treatment for about 4.3 mgd of flow, sufficient -10- I .a to treat the wastes from the southeast side. Sludges generated at the plant would be pumped back to the existing plant for stabilization and disposal until the completion of Phase IV. Detailed cost breakdowns for the various elements of the two treatment approaches are shown in Table 2 for each of the four phases and for the total j development program. As shown in Table 2, the interim extended aeration f activated sludge plant is less costly on a first -cost basis by $1.2 million. However, on a total cost basis, the oxidation tower approach is less expensive by $700,000. A present worth analysis was also conducted on the estimated future costs of the various phases of the two treatment plans. The results are shown in Table 3. Interest rates for purposes of the analysis were set at nine percent and Phases I, II, III and IV were assumed to occur at time periods of 0, 5, 10 and 15 years in the future. As shown in Table 3, the costs of the two plans on a present worth basis are nearly identical. IBased on the cost analysis, the plan to build a portion of the oxidation tower plant within Phase I is attractive. In addition to costs, however, the oxidation tower approach offers other advantages over activated sludge for the interim treatment of wastes from the southeast section of Iowa City. Oxidation towers are less costly from an operation and maintenance standpoint than is activated sludge. Also, the towers are more reliable from a performance standpoint and produce less sludge for ultimate disposal. With activated sludge as an interim treatment approach, operating personnel would have to become proficient in the operation of an activated sludge plant for I -11- f r\ o TABLE 2 CAPITAL COSTS SCY.EDULE -12- I c�D76 OXIDATION TOWER PLANT Phase 1. Headwarks - $2,700,000 $560,000 S 480,000 $ 300,000 Total 54,040,000 2. Stormweter Basin 790,000 _____ __ _______ _______ 790.000 3. Primary Clarifiers 360,000 "-"" -^---• 750,000 1,110,000 4. Intermediate Pumping 250,000210,000 "-"--"' 5. O.Idation Towers 11000,000 ------- z,00D,DBo -----•- 460,000 6. Final Clarifiers 500,0001,000,000 -"--"-' ------- -•--"-- 3,000,000 1,500,000 7. Disinfection 150,000450,000 "-""-' ------- 600,080 8. Sludge Pumping 200,000 9. Digesters ....... 3,650,000 3,650.00D 10. Yard Piping 300,000 ....... 400,000 200,000 900,000 11. Sitewmrk 200,000 100,000 150,000 450,000 12. Maintenance Building 50,000 ------- 50,000 50,000 150,000 13. Administration Building ....... -- 2,700,000 2,700,000 14. Mobilization, Bond Total - Construction 170.000 30;130. 0 50,000 ';550. 000' 110,000 e u Contingencies 200,000 ....... ,1�5O�OOp� z g '--"" ----•-- 200,000 Engineering, Legal a Administrative TOTAL - PROJECT 670,000 9D.000 -0J 700,000 1,150,000 2,610,000 u , i 370T ;-m 500"p3d 3gZ.00.03G '22'gp0-00g EXTENDED AERATION PLANT Phase - Total 1. Headworks $2,840,000 5560,000 S 360,000 S 300,000 $ 4,060,000 2. Stormwater Basin 790,000 ....... -""-- •------ 790,000 3. EAtended Aeration 330,000 ....... "--"' •--•--- 370,000 4. Return Sludge Pumping 25D,000 ....... ....... "----"- 250.000 S. Primary Clarifiers ...__.________ ______ 1,080,000 11080,000 6. Intermediate Pumping ....... ........ 250,000 -----•- 250,000 7. OXidation Towers ....... ....... 3,000,000 -----"• 3,000,000 8. Final Clarifiers 500,0001,000,000 ""-"""' -----•- 11500,000 9. Disinfection 150,000 ------- 450,000 600,000 10. Sludge Pumping ....... ....... 200,000 200,000 11. Digesters ....... ....... 3,650,000 3,650,000 12. Yard Piping 260,000 ....... 500,000 200,000 950,000 13. Sltework 200,000 ....... 150,000 150,000 $00,000 14. Maintenance Building 50,000 ....... 50,000 50,000 150,000 15. Administration Building ....... ....... 2,7001000 21700,000 16. Mobilization, Bond Total - Construction 100 000 33-765;405 T6i5," 50,000 120,000 150,000 420,000 3T000'-000' TrSTW 7rT30-0�5 Contingencies 200,000 ------- ------- '-"---- 200,000 Engineering, Legal S Administrative TOTAL - PROJECT 540,000 17705,uu5 90,000 IT TTX07M 920,000 1,220,000 2,770,000 s,=7 ,zvu, 327',700;005 -12- I c�D76 TABLE 3 NET PRRES-E 4ORTH OXIDATION TOWERS IN PHASE I -13- �o7G 1 Present Worth Present Cost Factor Worth Phase I Project Cost $7,500,000 1.000 $ 7,500,000 Phase II Project Cost 700,000 0.6499 455,000 Phase III Project Cost 5,500,000 0.4224 2,323,000 Phase IV Project Cost 9,100,000 0.2745 2,498,000 Equipment Replacement 3I2;8T6;b66 5 Years (1990) 95,000 0.6499 61,000 10 Years (1995) 340,000 0.4224 144,000 15 Years (2000) 530,000 0.2745 145,000 Annual 0&M 0-5 Years 1,151,000 3.8897 4,477,000 6-10 Years 1,252,000 2.5279 3,165,000 11-15 Years 1,333,000 1.6430 2,190,000 T TIM== Subtotal $22,608,000 Salvage 2,398,000 Total Net Present 'Worth 3PU-ID;MU EXTENDED AERATION INTERIM PLANT Present Worth Present Cost Factor Worth Phase I Project Cost $6,200,000 1.0000 S 6,200,000 Phase II Project Cost 700,000 0.6499 455,000 Phase III Project Cost 7,000,000 0.4224 2,957,000 Phase IV Project Cost 9,500,000 0.2745 2,608,000 Equipment Replacement 312, 2 IM 5 Years (1990) 230,000 0.6499 150,000 10 Years (1995) 310,000 0.4224 194,000 15 Years (2000) 465,000 0.2745 128,000 Annual O&M 3�72,000' 0-5 Years 1,251,000 3.8897 4,866,000 6-10 Years 1,352,000 2.5279 3,418,000 11-15 Years 1,333,000 1.6430 2,190,000 TI547- 6, Subtotal $23,266,000 Salvage 2,460,000 Total Net Present Worth TZO.70F,= -13- �o7G 1 a period of about 10 years, at which time they would switch to a new approach to treatment; the oxidation towers. Another advantage of the oxidation tower plan for interim treatment is that it f allows for immediate use of the stormwater holding pond for the southeast side i upon completion of Phase I and for full use of the stormwater holding pond limmediately following completion of Phase II. The activated sludge alternative makes use of a part of the holding pond as an aeration cell. Thus, this volume of the pond would not be available for its long-term intended use until the completion of Phase III. The final recommendations for treatment of Iowa City wastewaters may be modified as a result of a study now being conducted at the existing wastewater treatment plant by The University of Iowa under the direction of Dr. Dague. These studies include an evaluation of granular media filters for the treatment of primary effluent. If it is found that significant reductions in treatment costs can be achieved by the introduction of such filters into the treatment scheme, then they would be recommended for inclusion in the final treatment system. Also, the study is evaluating loadings that can be achieved on the biological oxidation towers. This will enable a refinement in the sizing of the oxidation towers to reflect the expected efficiencies of treatment as determined by the pilot studies. Another consideration that may impact on the final treatment approach recommended is that the Iowa Department of Water, Air and Waste Management (formerly IDEQ) is in the process of reviewing their policy for the disinfection of wastewater effluents. It may be that disinfection -14- requirements will be relaxed or modified to allow alternative approaches to reducing enteric bacterial counts in wastewater effluents. One possibility, for example, is that the Department could allow granular media filtration of efflu found would The fc f W, FINANCING GENERAL A plan has been developed for funding the four phases of the planned program assuming all financing by the City (no private financing or federal funding). However, much of the information contained in this part can serve as a basis for an analysis of privatization. Such an analysis will be undertaken in the near future. Interim, short term financing is proposed to implement construction of Phase I. Interin financing permits starting construction without the need to market bonds. Bonds are sold at a later date when revenues realized from a rate increase have accrued and the various bond fund requirements can be met without creating cash flow problems. Later, as required, a combination of sewer revenue bonds and general obligation bonds can be marketed. Use of both revenue bonds and general obligation bonds is proposed. Debt service for retirement of general obligation bonds would be from sewer revenues. It is usually advantageous for a city to finance with general obligation bonds, if possible. The interest rate is normally lower and there is no need to provide for the 150% debt service coverage. Such coverage is necessary to make revenue bonds marketable. However, outstanding general obligation bond debt is limited to 5% of the valuation of the City. There are i other non -revenue producing facilities which must be funded with general obligation bond debt. -16- 0?074 1. Li Accrued balances and interest earned on the various funds play an important part in financing Phases II, III and Iv. The overall plan involves the issuance of $34 million in bonds, spread about equally between general obligation and revenue bonds. The balance would be funded from accrued interest and unencumbered fund balances. RATE REQUIREMENTS The recommended financing plan will require a minimum bimonthly user charge of $9.00. The proposed canmodity charge will be $1.06 per 100 cubic feet. The present minimum charge is S3.25 and the commodity charge is $0.355 per 100 cubic feet of water used. For a typical user with water consumption of 2,000 cubic feet, the billing with the proposed rates compared to the existing rates is as follows: Proposed Existing Bi -monthly Bi -monthly Rate Rate Minimum (Includes 400 CF) $ 9.00 $3.25 (x 2.77) Next 1,600 CF 1177..00 00 5.68 (x 2.99) The proposed rates will be sufficient to finance all phases of the project with no inflation. FEDERAL FUNDING The possibility of use of federal grants has not been recognized in the preparation of the financial analyses. Based on the current priority system, it is possible that federal funding might be available for Phases II, III and Iv unless the grants program is discontinued. -17- ao7� J It is not known what the percentage of federal aid, if any, will be in the future or which items of construction will be eligible for participation. It is the opinion of the writers that if federal aid is continued into the future, the participation is more likely to be at a 55% level rather than 75%. It is also our opinion that only outfall sewers (those connected to the plant) and treatment facilities will be eligible. Therefore, if federal aid becomes available to Iowa City for future phases, the future financing requirements could be as follows: Phase II - FY 1990-91 New Plant - Eligible Existing Plant Outfall Sewer - Eligible Fairmeadows Branch Phase III - FY 1995-96 New Plant - Eligible Existing Plant Rehabilitation I SE Interceptor, Upper Reach I University Heights Phase IV - FY 2000-01 New Plant - Eligible Outfall Relief Water Main Phases II, III 8 IV Total Local Federal $ 700,000 $ 315,000 $ 385,000 150,000 150,000 600,000 4M—'60if 7,000,000 3,150,000 3,850,000 650,000 a 650,000 �506�666 y�,'f65�60Ur,60a 5,500,000 2,475,000 3,025,000 200,000 200,000 500,000 500,000 1,600,000 1,600,000 600,000 4M—'60if 600,000 $S,7TS,360 IT Un— 'UM 9,100,000 4,095,000 5,005,000 1,000,000 1,000,000 300,000 300,000 3T0'4aiiTM T',ig'r601f 605;0 �� Ste• SI2�2'65;666-' -18- ao74 A WLSI YANK LYI SIAHON t 6 L WEST SIDE TRUNK / UNIVERSITY I HEIGHTS._ SIiJ SYSTEM VLE II.G EIGHTS I,. TRUNK I I II .•,1.. i ' j� 1 LJIVER61iY`HTS'SE1UERd � V _„ � 7p EXISTING PLANT al Ir 'i °U' 1 SIPRONS- ' OLD LANDFILL LIFT STAIRRI I DII � '�' 2t �zjY "'� . 3LUDCE�LINE • tilII: m I \ RW7. 210 TRUNK ri' I. I I• 1 WATERT-MANE PEPPERIDGE I'/ ' T I� LIFT STATION i ISI rr SOUTH1\ / 1 IVERSIDE ,. ! LIFT STATION SEWERS - PHASED CONSTRUCTION IOWA CITY, IOWA I FIGURE I I E. BRANCH p( 5 MARKET RUN V 1 V f I t f� •I ys y "�y h lit I �� I � � \� �,.. 4 '',I!.�� j\^`l �� j24" :,' OUTFALL�ljELIEF, SYSTEM ; cn cK REPLACE EY.IS ING.SEWER' TRUNK PORTER AVE; TRUNKAELI f l ! 2430 211 SOUTHEAST ' I Cd �� (I' JEFFERSON STREET '�I ''� I•'\ I 11. I RELIEF SEWER �° RUNDE a NI ,( INTERCEPTORS:'' •y I ) �P 1 ; I SYSTEM UNDER" inui+KT ' �•• `,_ yl �I„I -J \l �A `'It, CONST. Zh2l' , .: S l'• -U 1 LI _ , `f /. FIFTH WARD II 5111- /`• SOUTHEAST TRUNK TRUI4K SEWER OUTFALL RELIEF SEWLH I " 14 1 Sn SCREW; PUMPLIFT. STATION sTR -� ••..:) \`., ]flt5 ��TlHCEFTO'UPff� T. HIGHLAND AVE. y ,SUNK SEWER '1 IT• $4i I N' I O \\ V�LA E GREEN LIFT STATION IL OUTFALL SYSTEM—\9 Fiii ��l .{^ s'"' B'Pg1, •� �` sfEISUNRISE MOBILE HOME PARK LAGOD1 4te\29{". FAWMEADOWS SVT STATION .� ,V HC IN 2 LIFT STATION 481 l T SE INTERCEPTOR^� ! ; 2s '0 ` t JEW PLANT 1 SCALE IN FEET 0 20( IF ' g4u. I:9� .. 4;::_-,: ,..-'•-.� PHASE I EFFLUENT .SEWER PHASE 2 "' PHASE 3 PHASE 4 A WALE IN FEET 0 300 NEW PLANT PHASED COP IOWA CITY, FIGURE 2 FIGUR9 2 J ADDENDUM TO KIMM-DAGUE PROPOSAL cto er , 983 PRIVITIZATION AND FEDERAL FUNDING Since preparation of the original proposal, the City has obtained considerable information on private funding of the wastewater treatment plant and, Possibly, portions of the recommended sewers. This approach may have merit. Data regarding privatization is included with information being provided to the Committee for its meeting of October 11. The FY 1984 Construction Grants Priority System indicates that Iowa City could expect federal funding beginning in FY 1990. A public hearing was held on this matter by the Iowa Department of Water, Air and Waste Management on Autust 15, 1983. Comments were offered at that hearing by Iowa City representatives and others which caused WAWM to reconsider awarding practically all grant funds to the City of Des Moines through FY 1989. Alternatives being considered by WAWM include reducing grants to 55% (from 75%) of eligible costs, limiting any one city to 50% of the grant funds available to Iowa in any fiscal year and others. Depending upon future action by WAWM, Iowa City could start receiving federal funds in federal FY 1986, i1989 or 1991. The possibility of federal funding for Iowa City will be uncertain for' several months. ALTERNATIVE APPROACHES TO FINANCING Alternative approaches for 100% local funding were examined in an effort to eliminate the need to virtually triple sewer user charges in one step. Two considerations, involving temporary financing through the use of project notes are outlined in the following paragraphs. A-1 Ci The first alternative considered was borrowing, for a period of not to exceed three years, the amount of $19,000,000 to fund Phase 1 improvements described in the Kimm-Dague proposal. The $19,000,000 would be borrowed up front on or about January 1, 1984, at an interest rate of about 6;. The principal amount would be invested at an estimated interest rate of about 10a at today's market. As construction of Phase 1 proceeded, the principal balance would decrease as would interest income. This approach offers an economical method for funding a project on a temporary basis. The borrowed funds could be used through FY 1986 and bonds sold in FY 1987. It would probably be necessary for the City Council to conduct a public hearing on the future sale of bonds prior to the borrowing of the $19,000,000. Recommended rate schedules for the initial years under this alternative compared to the existing rates are as follows: A rate increase would be required in FY 1992 or 1993 to fund Phase II. A disadvantage of temporary financing is that it does not provide accruals which can be used to help fund future phases. The original plan proposed a single rate increase which would have funded all phases of construction with no inflation. 16 0? ON ,f .\1 Commodity Average Minimum (Per 100 CF) User 1984 (First Half) $3.25 0.335 $ 8.93 1984 (Last Half) 5.00 0.40 11.40 1985 5.00 0.40 11.40 1986 6.00 0.60 15.60 1987-1991 9.00 1.00 25.00 A rate increase would be required in FY 1992 or 1993 to fund Phase II. A disadvantage of temporary financing is that it does not provide accruals which can be used to help fund future phases. The original plan proposed a single rate increase which would have funded all phases of construction with no inflation. 16 0? ON ,f .\1 In view of the possibility of reduced local costs as a result of privatization of plant funding or federal aid becoming available, it may be prudent for Iowa City to proceed only with construction of the Southeast Interceptor Sewer. The amount of 811,000,000 would be borrowed and invested as previously described for funding 819,000,000. As time passed and construction progressed, the City could make a wiser decision as to how to finance other construction. The sewer could be utilized as soon as Phase I plant construction was complete or a temporary pumping facility was constructed. Proceeding with this construction would also indicate the urgency of Iowa City's needs to WAWPI. Recommended rate schedules for this alternative would be the same as for funding the 819,000,000 project. In view of the uncertainty of federal funding, it is recommended that this alternative be adopted. A-3 o?o�� IMPLEMENTATION SCiiEDU6E i A tentative schedule is suggested for proceeding with implementation of the first phase of the project as quickly as possible. Recommended target dates are as follows: Action I. Approval of this proposal by Advisory Committee 2. Approval of this proposal by City Council 3. Authorize sale of bonds to permit interim financing i 4. Authorize grit removal and screening repairs to existing plant l 5. Complete plans and specifications for SE Interceptor I Sewer and Screw Pump Station 6. Complete preparation of easements and land i descriptions for Sewer and Pump Station 7. Increase rates 8. Authorize redesign of biological treatment and solids handling portion of new plant 9. Completion of review of plans and specifications for SE Interceptor by staff and WAWM 10. Advertise for bids - SE Interceptor Sewer 11. Complete purchase of land and easements for plant site 12. Receive bids - SE Interceptor Sewer 13. Award contract for SE Interceptor Sewer (special meeting) 14. Secure easements and land for SE Interceptor Sewer 15. Start construction of SE Interceptor Sewer A-4 Target Date 1983 October 11 October 25 November 8 November 8 November 12 November 12 November 22 November 22 November 26 December i December 13 December 20 December 27 1984 March 1 April 1 r� 1 City of Iowa City MEMORANDUM Date: October 4, 1983 To: Governor's Committee to Study the Public Records Law From: City Manag r Neal Berlin and City //ppt1orney Rob Yaannsse`n,, City of Iowa City Re: Public Records Law In recent years three issues have developed concerning public records law which are of concern to Iowa City. 1. Staff documents Not every piece of paper should constitute a public document, at least until such time as a final decision is made. It is virtually limpos ible for the administrative staff to generate or develop policy proposals in an atmosphere in which the news media or the public is asking for every slip of paper during the process. It is the recommendation of the City that items such as internal memoranda or staff working papers used in preparation for the development of policy proposals or policy recommendations should not become public documents until such time as a decision or recommendation is made. At that time certainly the public or the news media could have the backup documentation. 2. Items for executive session It is not clear that documents may be submitted to the City Council prior to the discussion of a matter scheduled for executive session. It is often necessary for the attorney or the staff to provide publicly sensitive background or backup information in advance to the City Council so that it is prepared to discuss the subject in executive session. However, it is not clear that background or backup documents for items to be discussed in executive session are exempt from the public records law. 3. Job applications There has been some difficulty concerning job applications. It is frequently not in the interest of the City or the applicant to have it be publicly known that the person is applying for a new position. Untimely disclosure of that application may prevent the government from further consideration of that person and/or create difficulty for that person in their present employment. It would appear that the purpose of the law should be to facilitate the employment to the best person possible. After the decision is made the release of all appropriate information certainly should be sufficient to further goals of public information. cc: City Council bj4/11 X077 Ci October 4, 1983 Mr. Tom Flynn Zuchelli, Hunter & Associates Maryland National Bank Building 160 South Street Annapolis, Maryland 21401 Dear Tom: J This letter confirms our conversation relating to Clear Creek Investment Company. The City has had several discussions with representatives of the University of Iowa and the Clear Creek Investment Company concerning the parcel of land of 320 acres located on the westerly edge of Iowa City immediately adjacent to the 218 Freeway, currently being constructed. We envision a high tech office and research area which would interface with programs and facilities of the University of Iowa. The University is considering the construction of a facility which would serve as an interchange between private business and University resources. It would cost approximately $1 million to extend water and sewer to this site. This program would strengthen the economic base of the City, provide the potential for desirable office and industrial sites, the possibility of additional financial resources for the University and would be consistent with the State's economic development program. If the City does not act favorable, the University will seek support for its efforts elsewhere. Mayor Neuhauser has discussed this proposal with the Governor and the State Director of Economic Development. We believe the proposal is unique in that it will bring together the resources of private investors, the City and the University. Also, it offers an opportunity for providing a base for long-term economic growth for the City and the University. As we discussed, please review the concept with HUD to determine how we might package a successful UDAG. We are anxious to proceed at the earliest possible time. Sincerely yours, Neal G. Berlin City Manager bdw/sp cc: Mayor Neuhauser Randall P. Bezanson Duane Spriestersbach Gene R. Marner City of Iowa City MEMORANDUM Date: October 6, 1983 To: Members of City Council From: Anne Carroll and Rosemary Vitosh Re: Changes in Blue Cross/Blue Shield Health Insurance Provisions Through negotiation of the last AFSCME contract a Health Incentives Committee was established to investigate and recommend implementation of health insurance costs containment measures. The Committee has been very cooperative in pursuing changes in health insurance provisions which will accomplish cost containment and these, along with a staff initiated recommendation to reintroduce a health insurance group for City retirees are proposed for your approval as follows: Mandatory Outpatient Surgery 70 designated types of surgeries will be required to be performed on an outpatient rather than an inpatient basis, unless medical necessity dictates otherwise. This is becoming an increasingly common requirement due to the fact that the cost of a typical outpatient surgery is an average Of 50% of the cost of the same procedure performed on an inpatient basis. This change is expected to be a significant cost saver. 2. Maternity Length of Stay Incentive Costs associated with childbirth have in recent years comprised a length of hospital stay for a mother following childbirth can vary wsignificant portion of our insurance groups health care cost. Because the idely based on a number of criteria including personal preference of the mother, and because the average cost per day for a maternity stay is $200 following childbirth, an incentive is offered to employees to encourage those who are medically able to leave the hospital to do so within two days following admission for childbirth. (Average length of stay for our insurance group at the University Hospitals is 1.7 days.) If length of stay approved by the personal physician for a mother following childbirth is two days or less, the employee will receive a check from the City for $100 (minus withholding). Home health care services are available following childbirth at no cost to the employee as a current provision of the BC/BS policy. 3. Overcharge Incentive This incentive is designed to eliminate payment of overcharges by health care providers and overpayments by BC/BS to employees. If an employee identifies a previously undetected overcharge/overpayment by a service provider or by BC/BS and obtains correction of the error the employee will receive 25% of the overcharge/overpayment up to a maximum payment to the employee of $500. Gross overcharges resulting in computer error, etc, are excluded from payment. ao'79 Ci 4. Outpatient Treatment of Substance Abuse This option would make available, but not mandatory, payment for outpatient treatment of substance abuse. Inpatient treatment has an average cost of $5,000-6,000 per 30 day admission and requires a month off from work. Increasing the level of outpatient treatment by providing payment for it has the potential for significant cost savings. The above options are recommended to be effective December 1, 1983, for AFSCME, Administrative and Confidential employees and will be discussed for implementation with the Police and Fire unions during collective bargaining. 5. Retiree Health Insurance Group Effective January 1, 1983, City retirees were no longer eligible to purchase health insurance coverage through the City's group. This change was necessary because under our self -funding arrangement the health care costs incurred by retirees had the potential to far exceed the premiums they paid to the City for coverage - hence requiring that their insurance be subsidized by the City. In the last several months BOBS has presented us with a mechanism that would enable us to set up a retiree health insurance group for retirees with no financial liability to the City. Costs for family coverage under this group would be $211 per month as opposed to close to $300 per month if the retiree was required to purchase his/her own non -group policy. City staff recommends the establishment of this group, with the City to act onl administrativeas and y BC/BS Etablishmenteof thegroupeliminatendelaymof mreti rem nt by employees fearing health insurance costs that would eat up a large proportion of their pension check, and would help cushion the financial blow for employees retired after becoming disabled and no longer able to work. This option is recommend for implementation November 1, 1983, to accommodate two currently retiring employees. If your approval of these recommendations is received all AFSCME, Administrative and Confidential will participate in education sessions which will discuss how employees can help us to achieve health care cost containment. Please feel free to contact us if you have any questions regarding these recommendations. bj/sp ao79 City of Iowa City MEMORANDUM Date: September 30, 1983 To: City Council From: Dave Johansen, Partner, McGladrey Hendrickson & Co. I Neal Berlin, City Manager Rosemary Vitosh, Finance Director) U Re: Finance Department Staffing Needs In response to the comments from the auditors in the last audit report, a management audit of the Finance Department has been made jointly by Dave Johansen, partner, McGladrey Hendrickson & Co., and Rosemary Vitosh, Finance Director. The attached reports detail the evaluation's findings and indentify three critical areas. They point out clearly that the additional responsibilities placed upon the Finance Department in the past three to five years have adversely impacted the department's performance because the staffing level is not sufficient to handle the additional responsibilities. The importance of the Finance Department as the foundation for many City services may not be fully recognized. The Department interacts with all other city departments on a daily basis because all financial transactions are centralized within the Finance Department. Any growth or change in services and/or the addition of new functions adds workload for the Finance Department. The Department does not have the option to defer work in order to deal with a heavy workload. Delay in the processing of paychecks, paying bills, mailing out billings or the processing of financial reports creates significant problems. The efforts of the Finance Department directly save the City more money than probably all other Departments combined. Annual cost savings accomplished by the Department include: the lower interest costs on bonds due to the City's excellent bond rating, (only 19 other cities in the entire country have a AAA rating), the efforts in budgeting to keep operating budgets and the General Fund ending balance as low as possible, savings on insurance costs for liability, property and employee group programs, increased competitive bidding, centralization of service contracts and supply purchases, the highly effective Word Processing Center which has kept clerical staff in all departments at a minimum, and improved in-house printing services. Total cost savings to the City from these items alone are estimated at over $2 million annually as follows: Interest Costs on Bonds Budgeting Cost Saving Efforts: Review of Budget Requests Salary Budgets Year -End Balance Insurance Premiums: Property and Liability Employee Group (Health and Life) $ 200,000 250,000 1,000,000 75,000 55,000 $ 262,500 1,450,000 130,000 wo Purchasing - Bidding Process Centralized Contracts and In-house Printing Word Processing In-house Computer System JCCOG Bookkeeping 125,000 57,000 114,000 9,500 $2,148,000 The City's centralized financial function is much more inclusive than that found in many cities as governmental agencies typically tend toward segregated functions and departments that handle many administrative functions themselves. The City's structure in this respect is more cost efficient, provides for better control and eliminates staff duplication. One alternative would be to decentralize certain financial services in order to reduce the workload of the Finance Department. The City's auditor, McGladrey, Hendrickson and Co., does not recommend decentralization. Centralized financial services are more cost effective and provide for greater control. The additional staff being recommended herein is necessary to not only continue providing the present services of the Finance Department but also to provide the ability to improve and expand those services. The changes in Federal and State programs necessitate even more financial support at the local level and the Finance Department will continue to be a very critical part of the City's organization structure. Your support is needed in providing sufficient staffing to meet these needs. Parking The Parking Systems has grown in the past five years from a staff of 11 full-time employees to a staff of 16 full-time employee and 15 part-time employees as a result of the construction of the two parking ramps. While the staff has almost tripled for this Division, the total supervisory staff has remained constant. It is now quite apparent that supervision can no longer be handled by one individual for an operation which has staff working round-the-clock shifts six days a week and one shift on the seventh day of the week. A Maintenance Worker I position is now vacant in the Parking Systems and it is recommended that the position be upgraded to a P.M. Ramp Manager for the purpose of supervising the evening employees and ramp operations. In addition, a late night Maintenance Worker position should be upgraded to a Lead Maintenance Worker to provide for limited supervision on the 10:00 PM to 7:00 AM shift. The total cost of this proposal would be approximately $4,000 and is recommended to occur immediately. Accounting The second area of need is in the Accounting Division. In addition to the expected responsibilities placed upon the Division relative to the City's growth in functions and activities, the Division has also assumed the new functions of data processing and the preparation of the year-end accrual financial statements. The attached report details the additional workload added to this M6 J Division in the past four years. Both of the new functions were added with no increase in staff for the Division. While the data processing function is estimated to be saving the City at least $700,000 annually, the current staff of one person is not sufficient for this assist the data processing function at a time when their own accounting function. The Controller and other accounting staff have found it necessary to is increasing substantially. workload At a minimum, the data processing function immediately requires one additional staff person and a second printer in order to handle daily operation and continue with any new development work. Total costs are estimated at $26,500 for the additional position and the printer. Additional staff is also needed in the pure accounting area. As the attached report indicates, in the past five years the Division has been assigned new tasks that require staff hours equivalent to 1's additional positions. This does not even include the preparation time required for the accrual financial statements; these statements are estimated to have added over 400 hours of staff time to the year end audit report process or the equivalent of h additional position on an annual basis. f While the accrual report is not absolutely mandatory, it is strongly recommended by the bond rating agencies. The City's Financial Consultant and Bond Attorney both feel that the accrual report is imperative to maintaining a triple A bond rating. In fact the policy statement from one prominent bond rating agency (Standards and Poor) reads as follows: "The accrual basis is a superior method of accounting for the economic resources of any organization. ..the cash basis of accounting is not appropriate... in the absence of financial reports prepared in accordance with the aforementioned guidelines, S & P will specifically reflect such actions in its rating process as a negative factor and where the report is not timely or is substantially deficient in terms of reporting, will not rate at all." With current staff, we cannot issue a timely accrual report and this could increased work load by delaying their work completion times. jeopardize the City's bond rating. The accounting staff has dealt with an If the staff level remains at its current level, it will be necessary to refuse to take on any additional responsibilities and the City will risk the consequences of untimeliness in the financial work. As Federal and Stategovernments place more accountability on the local government for financial records, one aspect of those consequences could be lost State and Federal revenues. The inability to add additional responsibilities would eliminate opportunities for future cost savings for the City. Often times cost savings actions require additional staff time to manage and monitor those efforts, and the current staff cannot handle its current workload let alone additional workloads. With the local economic climate and the potential for reduced funding from the State and Federal government, more research is needed on cost saving alternatives and in maintaining the budget at its current reduced/tight level. It is questionable as to whether the City can even continue to maintain budgeting at the reduced level if the appropriate staff is not available to monitor budget versus actual expenditures in order to avoid any future financial crisis. The minimum additional staff needed for the Accounting Division is two positions. Both positions should be at a professional accounting level because what is lacking on our staff now is the accounting background that is necessary for the more complex accounting analysis and accrual work. Total cost of these two positions would be $48,000 per year. Treasury The third area of need is professional accounting support in the Treasury Division. Currently the Treasurer is the only professional accounting position in that division and the demands of customer service on that person's time from the utility billings and parking ticket collections do not allow sufficient time for the accounting work that is required. That division controls the City's cash, investments, and the large dollar accounts receivables. Therefore, proper accounting support is imperative. Since a cashier position was added this summer which alleviated the overall excess workload problem, a full-time additional position is not necessary in this division at the present time. Therefore, a part-time professional accounting position should be sufficient. If the revised utility procedures generate additional work in the delinquent collection area, a full-time position may be justified in the future. It is recommended that a half-time position be added at this time at a cost of $12,000. Funding Partial funding for the additional staff in Accounting and Treasury could be provided through additional chargebacks to the Enterprise Funds and to the Federal Grant Recipient Funds. These chargebacks would fund the administrative tasks required of the Finance staff for those programs. The attached report details potential chargebacks which would generate approximately $56,000. The remaining amount of $30,500 would have to be funded from the General Fund. Parking Revenues would be used to fund the cost of reclassification of staff in the Parking Systems. /sp 1 City of Iowa City MEMORANDUM Date: September p, 1983 To: Neal Berlin, City Manager 1 From: Rosemary Vitosh, Director of Finance Re: Report on the Management of Current Workloads For several months I have been reviewing problems caused by the excess workload which exists in the Finance Department. The workload of all divisions is higher than ever before and we have worked diligently for the past three years to streamline operations and ease workloads. As a result, our productivity level has increased and easily far exceeds that of any other department. In spite of that fact, we are continuing to have problems with excess workload in specific areas and this memo identifies those problem areas and offers recommendations for solutions to those problems. Over two years ago I warned you that we could not continue to improve and expand our services without suffering excess workload problems which would slow down our output, create the potential for mistakes and cause deadlines to be missed. That very projection is today a fact of life in the Finance Department. Several situations have occurred but the most recent one occurred earlier this week when HUD withheld the City's September payment for Assisted Housing rent subsidies pending the receipt of the June 30, 1983 report. We have typically completed that report by mid-August in past years but this year it was completed approxi- mately two weeks later. This is a result of the heavy workload in the Accounting Division and could not be avoided. The report was mailed to HUD on August 31, 1983. Until HUD's payment is received, funds are available in Assisted Housing's fund balance to pay the September 1 rent subsidies. Therefore, no major crisis exists but this problem is by no means the end of such problems. Following is a summary of my review of workloads including recommendations for dealing with any problem areas. Treasury Division The addition of the Cashier position and the establishment of a defined customer service area has relieved the Division of the major workload problems. It remains to be seen what workload will result from the imple- mentation of the Revised Utility Procedures, but I fully anticipate that significantly more staff time will need to be spent on collections about six months from now. That situation will be analyzed as it occurs. The one area of need in this Division is for an accountant position to assist the Treasurer in financial analysis work. The Treasurer spends a great deal of time in customer service and cannot devote the required time to financial analysis and reports, particularly near the end of the fiscal year while preparing for the year end audit. There is currently no other staff person in this division besides the Treasurer who is capable of handling this financial analysis work. The need could possibly be met through a work study program which would provide part-time assistance by an individual with an appropriate accounting background or a part-time position. ME Ci II. Word Processing Center Word Processing's workload has increased by 40% on their average monthly production totals. turnaround time in hours has decreased by 10%. bids on new equipment for the Center which sl this increased workload with few problems. III. Central Procurement & Services in the past two years based Meanwhile, their average Je are currently evaluating )uld enable them to handle As a result of the Purchasing Agent's effective supervision and management, the Division has at least quadrupled its productivity and service level within the last five years. The Division has gained respect and has established a good working relationship with other departments; in fact, requests for assistance, particularly in the Purchasing area, are almost too numerous for the current staff to handle. To meet this increased demand, the Purchasing Agent has repeatedly stream- lined operations. However, much more workload cannot be added to this Division without a resulting slowdown in turnaround time. The recent inquiry from Cheryl Mintle, Human Services Coordinator, regarding the possibility of allowing the agencies to use the City's Print Shop and Purchasing staff is totally unacceptable unless additional staffing can be provided as needed. This Division is currently operating near peak workload and the estimated additional work from 11 agencies could do nothing but dramatically slow down turnaround for all users. I have told Cheryl that the City does not have adequate staffing to pick up the additional work which would be generated by the agencies. IV. Parking Systems Workload in Parking has been increased as parking ramp usage increased, but we have been able to add staff (cashiers and maintenance workers) as needed. The only real problem area exists in the Parking Supervisor's workload and more specifically, with his span of control responsibility. He supervises 30 employees who work in shifts which run 24 hours a day for 6 days of the week, and 9 hours on the seventh day. He is solely responsible for all supervisory activities of the Division. Employees are on the job in the parking system for a total of 153 hours per week while supervisory staff is scheduled for only 40 hours per week. There are no lead workers who can assist with supervision tasks in the absence of the Parking Supervisor. This span of control problem could be greatly alleviated by upgrading two current positions to a higher level of responsibility. A Maintenance Worker position could be upgraded to a P.M. Ramp Manager position and scheduled to work the late afternoon and evening hours and share the supervisory responsibilities with the Parking Supervisor. One of the night Maintenance Workers could be upgraded to a lead worker and provide limited supervision of the employees working between 10:00 PM and 7:00 AM. Ci These two position upgrades would allow for supervisory staff scheduled as follows for five days a week: 7:00 AM- 4:00 PM Parking Supervisor 3:00 PM -12:00 PM P.M. Ramp Manager 10:00 PM- 7:00 AM Lead Maintenance Worker This would greatly improve on-the-job supervision for five days out of a seven day work week. A Maintenance Worker position is currently vacant and provides an opportune time to upgrade such a position to an Assistant Supervisor position. There would be no problem with promoting one of the current late night Maintenance Workers to a Lead Worker status. No other City Division which has round-the-clock shifts has a span of control problem similar to this. I asked Anne Carroll to review this situation several months ago and a copy of her evaluation and recommendations is attached as Exhibit A. V. Accounting Division The Accounting Division has the most critical workload problem in the Finance Department at this time. It is now apparent that the problem has evolved over the past four years. However, during that time period I justified the excess workload as a result of the computer conversion and the implementation of the accrual financial reports. I fully expected that the workload would virtually disappear in time. Unfortunately, a large amount of additional responsibilities and new tasks, exclusive of the data processing function and the accrual conversion, has been assigned to the •Accounting Division within the last four years. Therefore, even ignoring the data processing function and the accrual conversion, it is impossible at this time to return to a workload level comparable to that which existed three years ago. Attached to this memo as Exhibit D is a letter from Dave Johansen summarizing his evaluation of staffing needs. He is willing to meet with us to discuss his perceptions and he is also willing to discuss the matter with the Council on an individual basis or at an informal meeting. I have done a thorough review of the impact of not only the additional responsibilities but also of the acquisition of the in-house computer system and the implementation of the accrual financial reports. That review showed that there is a severe shortage of resources available to the division to properly handle the current workload. A discussion of the three major causes of that increased workload follows: A. Additional Responsibilities: Exhibit C shows the additional responsibilities which have been j assigned to the division in the past three years. Those additional responsibilities have added a workload of 214 staff j hours per month. Considering that one full-time position •, . J provides 145 staff hours per month, the division is understaffed by more than one and one-half position just due to these additional accounting tasks. This analysis did not attempt to take into consideration any increase in the workload due to the growth of the City. The addition of new staff positions (i.e. night transit routes, JCCOG, Senior Center, Broadband Telecommunications), the addition of new functions (i.e. JCCOG, Broadband Telecommunications, Energy Conservation, Senior Center), the expansion of current functions (i.e. Transit, Library, Assisted Housing), and the City's general growth (i.e. population, expanded service levels, improvement in employee benefit packages), all impact additionally on the division's workload. The City's operating budget has increased 26 percent in the past three years, an increase which is due primarily to growth and minimally to inflation. That increase is indicative of the resulting increase which could be expected in the workload for this division since they deal with payroll, Accounts Payable, financial reporting, etc., for all departments. Iowa City has always been progressive and quite active in improving services and in attempting to maximize possible cost savings. However, both elements require additional resources for implementation and those resources must also be extended to the administrative functions. The Accounting Division has been assigned a great deal of additional workload; however, no additional resources have been provided to manage that additional workload. It is now necessary to reduce the workload by either 1) eliminate some tasks/responsibilities and/or 2) provide additional resources to the division. B. Accrual Financial Reporting: Work on the accrual conversion started in 1979 and it was delayed when the in-house computer system was purchased due to the fact that the Accounting Division was responsible for both. FY83 saw the completion and issuance of the FY80, FY81 and.FY82 Accrual Financial Reports. Those reports were the culmination of work started in prior years which required hundreds of hours of staff time and tens of thousands of dollars in audit fees. The investment in the conversion was phenomenal but it is now apparent that it is futile for us to continue to produce an accrual report because we do not have the staff to prepare it on a timely basis. With current staffing the accrual report takes up to nine months of preparation time; that is totally unacceptable because a financial report which is not generated timely is virtually worthless. The accrual financial report requires 360 hours of staff preparation time and an additional seven weeks of working with the auditors on their review. The cash basis report required only 90 hours of staff preparation time and an additional four weeks of working with the auditors. Total workload has tripled for this report alone and the division does not have the resources to handle it. I have reviewed the possibility of discontinuing the accrual reports, and going back to a cash basis financial report, with our auditors, bond attorney and financial consultant. They all point out that it would be a definite step backwards for the City. Such action enhances the chance of the City's bond rating being downgraded because it would throw up a red flag to the rating service people at Moody's. Although the City would be given the opportunity to explain why an accrual financial report wasn't available, the explanation that we couldn't afford the proper staffing to generate an accrual report is pretty flimsy. However, continued tardiness in releasing the year-end report could also throw up a red flag that could indicate poor financial management. The rating services are pressing all the time for accrual reports and it may be mandatory in the near future for a triple A bond rating. If the City's bond rating were to fall to a double A, the interest costs on a new bond issue would increase by about one-fourth of a point. On a $2 million G.O. Bond Issue which matures in ten years, that increase works out to an additional interest cost of $125,000 over the term of the issue. Were the City to issue $2 million in bonds each year for ten years, the annual additional interest cost would be $62,500 in the fifth year and $125,000 in the tenth year. In the past five years the City has issued $16 million in G.O. Bonds or an average of $3.2 million annually. Keep in mind that we're considering financing a portion of the new sewer plant with G.O. Bonds. In the phased approach which Jim Kimm put together, the first G.O. Bond issue would occur in 1985 and amount to $10.25 million with a maturity of eighteen years. A lower bond rating on that issue alone would cost the City (or the users of the sewer plant) an additional $1.2 million in interest costs. That phased approach includes the sale of another $17.2 million of G.O. Bonds in future years. Another issue which should be considered is what responsibility the City has to its current bondholders in maintaining its bond rating. A drop in the bond rating would cause Iowa City's reputation to suffer and could negatively affect the market value of outstanding bonds. The bondholder who did not hold the bonds until maturity could lose money on a sale of the bonds; that investor may think twice before investing in Iowa City bonds again. This matter needs your immediate attention as it could very well jeopardize the City's bond rating. We are in a no-win situation i b because we cannot, with the current staffing, produce a timely accrual report and it is not in the City's best interest to return to the cash basis reports. The M.F.O.A. certificate of conformance requires that the financial report be on the accrual basis and be issued timely (usually four months after year-end). That certificate is very highly regarded and many say it can lower bond interest costs by one-eighth of a point. Even if we were to continue to issue accrual reports, they will never be awarded a certificate if they are not released timely. In spite of all this, unless additional staff can be obtained, I am forced to recommend that we drop the accrual report and issue a cash basis report for FY83. If additional staffing is received for the Division for accounting functions, we could then go back and finish the accrual report for FY83. Accrual work papers have been started but are far from being completed. This action will take pressure off the Controller, the Accounting staff and the Senior Accountant. The Senior Accountant is the position currently held by Terry Kimble which was created to assist me in overall management, financial analysis, financial monitoring and budget preparation. A majority of Terry's time in FY83 was spent assisting the Controller and the Treasurer with the preparation of the accrual financial report and with various financial analysis work. Neither the Controller nor the Treasurer has a person at Terry's level of expertise who is capable of assisting them with such analysis work. If I had not assigned Terry to assist them, it is probable that the FY82 report would not yet be completed. Current staff in the Accounting Division cannot handle its current workload and mostdefinitely cannot handle the additional workload of preparing an accrual report. The need exists for two additional positions at the Senior Accountant level to provide assistance with the necessary financial analysis work. Funding for this position could be provided through additional chargebacks to the Enterprise Funds and to the Federal Grant recipient funds to compensate the General Fund for those administrative tasks required of the Accounting staff on those programs. The following potential chargeback revenues could be realized: Task FY83 Budgeted Potential _Chargeback Charaeback Assisted Housing/Public Housing Landfill Billings $3,000 $13,250 3,150 o?OOrO Ci Water/Sewer Billings - 22,600 Refuse Billings - 14,650 Transit Grant Reporting - 1,450 JCCOG Reporting -- 200 Mayor's Youth Reporting -- 400 CDBG Reporting - Total 200 As can be seen, this would generate approximately $56,000 which would provide funding for at least one and one-half full-time positions. III. Alternative Suggestions: Based upon Council's support for additional staffing in the Finance Department in the past, it may be necessary to consider the decentralization of some financial functions. For some reason, the Council appears to approve additional staffing for the line functions much more readily than for staff functions. Therefore, we could look at moving some responsibility back to the operating departments. Water could process water billings. Assisted Housing could purchase a computer and handle their own accounting. The paperwork on all Federal Grants could be handled and monitored by the recipient department. Landfill billings could be done by the Landfill staff. Delegation of these responsibilities to the line -functions would allow Finance to concentrate its effort on the true accounting functions. Such action would result in duplications, inefficiencies in operation, lower productivity and higher total staffing needs City-wide. But, if additional resources were available to the line functions, then this would be the best way to proceed. IV. Data Processing Responsibilities: The acquisition of the in-house computer system has mushroomed into a much more demanding area than was ever originally anticipated. I can now understand why the large D.P. Departments exist in most organizations. They are not frivolous or overstaffed, they do provide the proper resources for a very active function. You made the statement just last week that we have a D.P. function that is a "shoestring operation," especially when compared to other organizations. Unfortunately, our "shoestring" is now frayed and ready to break. We have one position devoted full-time to the D.P. function. That individual has to do all development and the coordination of the daily operation of data processing. We have found that not only does the management of the operation require the time of that position, it also requires approximately 40 percent of the Controller's time, in addition to continual assistance from other Accounting staff. a The Information Specialist position was created by the elimination of the old keypunch operator position. Therefore, no additional staff was added at the time of the computer acquisition. The keypunch operator formally did all data input when the City was using the D.P. Service Bureau. By eliminating the one position doing input, it became necessary for the "users" to do their own input. In most cases, we were able to design the computer application to eliminate duplication and unnecessary steps in each task and that has offset the additional workload created by now requiring the user to do the data input. However, the user is also now required to pick up the responsibility for the production of the final output (reports, billings, paychecks, etc.). That includes set-up of the printer, monitoring the printer, bursting the output product (tearing apart the continuous forms) and distribution of the output. This element of the application can require up to an additional 45 minutes for each output product. The original intent was to make each user totally responsible for their application from input to output. The Information Specialist was to be involved minimally in each application. We have found that an interactive, on-line computer system will not operate independently of central management and coordination. That is particularly evident in the demand for printer time. A sizable number of applications has necessitated the advanced scheduling of printer usage for all large applications. We have found that those major reports require up to a maximum of 62 printer hours in a week's time depending on the time of the month. This is based upon using our new faster printer. This does not include any of the small applications' reports, any reports for the Equipment Maintenance System application, or any budget preparation reports. Smaller applications are not as strictly scheduled and are consequently run as needed. The E.M.S. application has never been run on time so it has not been possible to determine the amount of printing time it will involve. Our current schedule provides for 50 hours of printer time per week which is why some reports must be produced outside regular working hours or are delayed. With so much demand for printer time, it becomes increasingly desirable to better manage the available printer time and/or extend the available printer time. The Information Specialist now spends a considerable amount of time cooridinating and assisting with printed output. The Information Specialist is also responsible for assisting users. As more applications have been put on the system, we finally are now up to 18 users working on the system at any one time. The Information Specialist is also responsible for stocking basic computer supplies, computer maintenance, file back-up and file control. The D.P. system has grown to the point where the Information Specialist now averages approximately 14 hours per week on development work; the rest of her time is spent on system management and in assistance to users. The Controller is heavily involved in overall system management, the analysis of hardware and software needs, user assistance and systems analysis work for development. The Controller initially began working in these areas in order to speed up the development work needed for the conversion of applications from the Service Bureau to the City's computer. ac8o However, the growth of the D.P. function has outgrown what one person (Information Specialist) can handle and it has been necessary for the Controller to continue with the D.P. responsibilities. The other two Midwest ADMINS sites, which agcuired their computer systems at approximately the same time as Iowa City did, now have D.P. staffs of two or three full-time positions and they do not have the heavily interactive system that we currently have. In an attempt to deal with the current situation, the following actions will be taken immediately: 1. Development work will be limited to ten hours per week and will be done by only the Information Specialist. This will reduce the Controller's involvement in the D.P. function only a very small amount. A moratorium will be placed on the development of new applications or the extension of any current applications. This includes new reports and will affect not only the Accounting staff but also staff in other departments/divisions who have been trained to write programs (Finance Administration and Human Relations). This will avoid any increased demand on printer time and for user assistance. 3. All printing work will be scheduled in advance as much as possible. This will reduce the flexibility of our system and may necessitate additional expenditure for overtime and/or cause a delay in the completion dates for some work. The above actions will prevent the current problems from becoming any worse; I do not anticipate those actions to improve the situation. The limitation and acknowledgement of a minimal amount of development time being available will necessitate the prioritization of pending D.P. projects. The major tasks now scheduled for completion are: 1. HIS computerization. Revisions to the Water/Sewer Billing Program to allow for the advanced payment. 3. Systems documentation. The first two items will require development time of approximately 160 hours apiece and the third item will require approximately 1,000 hours. Based upon the above actions, the Information Specialist will have 170 hours available for development from now through January 1, 1984, the implementation date for the Advance Payment Program on the Water Billing System. HIS is hoping to have their Housing Permits computerized and running by January 1st and we have told the auditors that system documentation work would be in the process this fall in order to minimize their negative audit comments regarding this deficiency on the FY83 Audit Reports. I would recommend in prioritizing these items that we postpone indefinitely the completion of the HIS computerization until the workload problem can be resolved. It makes no sense to add another major application when we can't currently service the applications we now have. 10 The above limitations and delays in development work could be avoided if additional resources were provided. To totally alleviate the situation, two additional staff positions are required. That would allow for one position to control printer output and one position to assist with daily system maintenance, provide user assistance and do some development work. The current Information Specialist would then be available to assume some of the overall system management, now being handled by the Controller, while spending the majority of her time on system development. This would allow the Controller to return to the management of the City's accounting records and reports. For the past three years we have had in effect a part-time Controller and for the integrity and well-being of the City's financial records and management, we need to return to a full-time position as soon as possible. Another alternative to the above recommendation for additional resources would be to hire one additional staff position and keep our old line printer; this option would allow us to run two line printers on the computer. We purchased a new printer this spring at a cost of $7,000 and anticipate selling our old printer for approximately $4,000. Funding was taken from unused monies in the Central Procurement and Services FY83 budget. It was an excellent buy as the net cost will be $3,000 as compared to the $12,500 paid for the old line printer three years ago. f The second printer would approximately double the print time available and although it would not be quite as efficient as having another staff person ito handle all printing, it is a more economical approach. It would cost approximately $1,000 to upgrade our computer to run two line printers. t In addition to the staffing needs it will be necessary within the next two years to consider upgrading our computer hardware. Capacity for data files is not a problem. The need exists in the available computing power or in the CPU (Central Processing Unit) that drives the system. We are rapidly reaching its capacity and this in itself could impose limitations on future development work. In FY80, when the computer was purchased, the annual D.P. budget for the Service Bureau was $86,000. Had we continued with the Service Bureau that budget could have reached $125,000 by FY84. It would easily cost approximately $200,000 annually to process our current applications at a Service Bureau since we have improved and expanded upon what we formerly had computerized. Our present costs are $85,000 for the D.P. function and $43,650 of that is the final payment to the Sewer Fund for the initial acquisition cost. We are therefore saving the City over $100,000 annually in D.P. costs. Why can't some of those savings be utilized for additional staffing needs? Even with the addition of two more positions, annual savings would still exceed $50,000. Summary: It is ironic that Finance has been asked time and again to improve and/or seek out cost savings alternatives. This has been done but it typically takes more administrative time and the resources haven't been made available to handle that additional administration. A prime example is the group health insurance. The Ci 1 new self-funded program has saved the City over $50,000 per year in costs but that new program has also more than tripled staff time required to administer the program. As I face this continuing staffing shortage, I have to question i the merit of cost savings which result in weakening our ability to do the job. i If the workload continues at the same level for the Accounting Division, it will be necessary to continue to assign Terry Kimble to assist them. The monitoring j so essential to controlling an extremely tight budget, such as we now have, is not being done at this time and it does not appear it will be done in the future if Terry is not available to assist me 100% of the time. Therefore in the preparation of the FY85 Budget I will be recommending that the General Fund year-end balance be increased substantially and that salaries be budgeted at 100%. These two actions could increase the budget for the General Fund by close to $1 million. We cannot control the budget at its current restrictive level and it will be necessary to increase the budget to prevent future financial shortages or disasters. It's indeed a sad situation because the potential exists for further cost savings for the City but "it takes money to save money." Without the "money" or proper resources the Department cannot take on any additional responsibilities or tasks. bdw/sp o30�d F. C l� City of Iowa City MIBIT A MEMORANDUM Date: Flay 4, 1983 To: Rosemary Vitosh From: Anne Carroll Re: Staffing in the Parking Ramps Recently Joe Fowler and I discussed some changes in ramp operations and previous problems which may necessitate changes in staffing levels and position classification in the Parking Division. Specifically, I am recommending the addition of a P.I.I. Ramp Manager position and reclassifi- cation of a Maintenance Worker II - Night Crew position to MW III - Night Crew. Rationale for these recommendations follows and draft job descriptions and classification level and recommended salary ranges are attached. Based on analysis of ramp operations, it is my belief that the Parking ramps which have employees working in them 23h hours a day six days per week and are open to the public now until 3:00 a.m. are inadequately supervised by one 40 hour supervisor, the Parking Superintendent. No other position in the Parking Division currently is assigned, or classified, to accommodate supervisory responsibilities. In the Parking Superintendent position Joe Fowler is held responsible for monitoring ramp operations and dealing with problems arising outside of his scheduled hours of work. He is on call at all hours, typically receiving three-four calls every evening during off-duty hours, usually tapering off at 11:00 p.m. and beginning again around 6:00 a.m. He reports that additional non -compensated overtime is also necessary on the average of several hours each of two Saturdays per month (every Saturday during football season and Christmas month). Hours per week during the Christmas season average 50-55 for his position. It is also necessary for him to occasionally monitor the operations of the night crew by making unannounced inspections in the middle of the night. Last minute employee schedule changes due to employee illness or other absences also require a fair amount of the Superintendent's off-duty time. Staffing levels during the Parking Superintendent's off-duty hours now includes three night Cashiers working until 3:00 a.m., one MW I working from 1:00 p.m. -10:00 p.m. and two MW 1 and two MW II working 10:00 p.m. - 7:00 a.m. The positions of Cashier and MW I - Parking are in the lowest City salary grades, the MW II position is in Grade 4 due to some technical skill requirements, These employees are called upon to make decisions concerning problems with ramp patrons, vandalism, mechanical failure, employee failure to report to work and other ramp problems, with access to their off-duty supervisor only by phone. These employees are called upon essentially to supervise themselves, and are, not unexpectedly, reluctant to report the performance problems of other employees working on that shift to the Parking Superintendent. Over the past year or so lack of supervision has delayed City staff being informed of employee performance problems including sleeping on the job, taking long breaks, theft, and drinking on the job. Although employees involved in this misconduct were C 1' 2 eventually discovered and resigned or were discharged, you may remember that the employee found to be drinking on the job was undiscovered for a considerable period of time in part due to his attempts to intimidate other employees to keep them from informing Parking Superintendent of the problems. Although these problems could be expected within the previous hours of operation, the expansion of Cashier hours until 3:00 a.m. increases the risk that misconduct may occur undiscovered. To address these problems I am recommending the creation of a new admini- strative position - P.M. Ramp Manager - to work the hours of 2:00 p.m. - 11:00 p.m., with the position functioning as primary supervisor of the parking ramps and employees during those hours when the Parking Superin- tendent is not present, and as a general assistant at other times. Additionally, I am recommending the reclassification of a MW II - Night Crew position to MW III with the hours of work remaining unchanged from 10:00 p.m. -7:00 a.m. This position wil assume responsibility as a lead worker for night maintenance crews and night cashiers. Projected costs of these recommendations in July 1 salary dollars are $16,993 per year for the PM Ramp Manager and $600 in additional annual 'costs for the MW III reclassification. There may be some savings in overtime costs because the Ramp Manager will be available to act as a relief cashier during any unscheduled absence of an employee before another employee can be called in as a replacement, rather than holding a permanent employee over past the end of his/her shift. Precise calculations of this savings are not currently available. Please feel free to contact me if you have any questions with regard to my recommendations. cc: Joe Fowler bj2/7-8 TITLE: MAINTENANCE WORKER III - NIGHT CREW LEAD WORKER - PARKING DEFINITION: 5/83 Under general supervision performs work of moderate difficulty as a lead worker monitoring the performance of night cashiers and maintenance workers, and in cleaning and maintenance of municipal parking facilities, and performs other related work as required. EXAMPLES OF DUTIES: Receives assignments from A.M. and P.M. supervisors and reports on problems concerning work assignments, employee performance, or other problems within the ramps. After the work shift of the P.M. Ramp Manager monitors the performance of night cashiers and maintenance workers; may make work assignments. Makes night bank deposits. Cleans building interiors, sweeps, vacuums, mops and disinfects floors; scrubs walls and bathroom fixtures; empties trash; washes windows. Performs routine maintenance work on facilities and structures; scrapes and sands old paint on walls, floors, rails and trim; shovels dirt, sand, gravel and asphalt in a variety of jobs to repair concrete or asphalt surfaces. Patrols parking ramps and lots; issues parking tickets to violators; maintains alertness to vandalism and reports incidents to supervisor or Police Department. Performs on-call duties to make minor repairs or adjustments to gates, ticket spitter and other parking facilities. Operates various power tools and types of equipment incidental to work assignments; may operate snow removal or other specialized equipment. May assume the duties of the P.M. Ramp Manager. TRAINING AND EXPERIENCE: One year experience in building maintenance or heavy manual labor which includes operating motorized equipment, plus six months experience as a work crew leader; or an equivalent combination of training and experience. Previous parking ramp experience highly preferred. KNOWLEDGE AND SKILLS: Good knowledge of: Materials, methods and techniques used in the cleaning, maintenance and repair of building facilities. i0 1 2 Use and care of variety of hand tools and equipment. Operation of motorized equipment. Some knowledge of: Techniques of effective supervision. Working skill in: Following oral and written instruction. Performing heavy manual tasks which require heavy lifting, continuous standing and other manual tasks, under a variety of environmental conditions. Performing routine custodial duties. Responsible performance of routine assignment without immediate supervision. Operating motorized equipment. Making minor repairs and adjustments to parking facilities. REQUIRED LICENSES AND CERTIFICATES: Possession of a valid Iowa driver's license. Note: This is an AFSCME position, salary grade 7, $14,892-19,177 (July 1, 1983 salary). Li 5/83 CITY OF IOWA CITY CLASSIFICATION DESCRIPTION TITLE: P.M. Ramp Manager BASIC FUNCTION AND RESPONSIBILITY To assist in the operational and personnal activities of the parking ramps as night ramp manager. CHARACTERISTIC DUTIES AND RESPONSIBILITIES Plan, assign and review the work of evening and night parking ramp employees including cashiers and maintenance workers. Schedule employees' work hours and verify attendance. Patrol parking ramps, supervise employees and monitor and respond to problems in the ramps. Check out parking ramp cash receipts for the day, take readings from cash registers and verify cashier totals, make bank deposits. Respond to inquiries and complaints from the public. Assist in interviewing and selecting ramp employees. Evaluate employee performance and train new employees. May approve operating expenditures. May troubleshoot or perform electronic parking equipment repair. May act as a relief cashier, or substitute in the absence of the Parking Superintendent. SUPERVISION RECEIVED General supervision is received from the Parking Superintendent. SUPERVISION EXERCISED Functional and administrative supervision is exercised over five full- time and eleven part-time maintenance and service employees. QUALIFICATIONS High school graduation or equivalent is necessary. Two years experience in operations management, which includes one year of supervisory experience, is necessary. Note: An Administrative position, Salary grade #1, $16,993-$23,628 (July 1, 1983 salary). aod'o EXHIBIT B McGladreyHendrickson &Co• InivnmonallyDUIN OODY ROO'.' McGLADNEY &PULLEN CE R TIF ED PUBLIC aCCOUNTURS 8 August 17, 1983 Mr. Neal Berlin City Manager Civic Center Iowa City, Iowa 52240 Dear Neal: On July 28, 1983, Jane Lindell and I met with Rosemary Vitosh and Monica Bieri to discuss audit planning for the fiscal year ended June 30, 1983 and to review the internal control comments included in our report for June 30, 1982. During this discussion our belief that a number of the problems disclosed in our report and many of the concerns we have discussed with you previously relate directly to the staffing problem of the finance department was confirmed. We believe that the current staffing in the accounting and treasury divisions is inade— quate, particularly at the upper levels. This conclusion is supported by the following facts, some of which are extracted from Rosemary's March 3, 1983 memo to the City Council: 1) Since 1977, the City's operating budget has doubled, from $12,300,000 for fiscal year 1977 to $24,700,000 for fiscal year 1983. This increase affects almost every area of the finance divi— sion, from the budgeting process to the final accounting reporting. This increase directly affects the number of vouchers and checks processed. Each voucher must be matched to the departmental authorization, processed, approved, keypunched, printed, signed, mailed and filed. The increase in the number of transactions pro— cessed not only affects the personnel in the purchasing, accounts payable and accounting operations, but also the treasury personnel who must reconcile and balance the increased number of bank accounts and file the checks and statements. 2) The past few years' changes in the investment climate and the increased financial activity of the City have greatly increased the amount of time spent by the treasurer and finance director to plan cash flow needs and investment decisions. The City's investments have shifted from long—term fixed investments owned by individual funds to various forms of short—term investments held in a per— petually changing investment pool which must be monitored constantly for earnings and cash flow needs. Some of the changes in the City's investment policies and accounting methods have been required because of the changes in the investment alternatives available to the City but also because of the tight cash flow planning that City operations have required in recent years. 400 Plana Conlrn One, lawm ClIJ lama 52:40,19101.754-1500 ME 3) The City's outstanding bonded debt has grown from $3,795,000 at June 30, 1977 to $12,070,000 at June 30, 1982. Since the City acts as its own paying agent for these issues, accounting and treasury per- sonnel must maintain all the increased coupon and bond records, handle the sinking fund and reserve transfers required by the various ordinances and maintain the maturity and payment schedules for the budget process and financial reporting. 4) On July 1, 1981, the payroll processing was brought in-house from T.L.S. This conversion has added a number of computer operation responsibilities and time requirements to the payroll clerk's job which did not exist before. In addition, the payroll system now offers direct deposit and numerous special deduction options which were not available in previous years. The reporting requirements of payroll information for various government agencies and insurance companies changes and grows constantly. Each new employee - part-time, full-time or replacement causes numerous transactions for the payroll system including pay rate, with- holdings, deductions, time sheets, check printing and distribution and reporting. Therefore each additional employee added to any City department Increases the workload of the payroll function within the accounting department. 5) As outlined in Rosemary's memo, the finance department is moni- toring and maintaining records for many City programs and depart- ments funded by federal and state grants. The number of grants and the total dollar amounts involved have increased substantially in the past few years. The recordkeeping and reporting required by each of these grants is tremendous. Each individual grant has its own individual accounting and reporting standards which need a great deal of time to fulfill. The standards change frequently and are often inconsistent from grant to grant. The workload caused by the increased number of grants being monitored and accounted for in the finance department is, in our opinion, on one of the more significant causes for the staffing shortage in that department. 6) In 1980, the City purchased a computer system for its own internal processing. As a result, a new title was created in the accounting department for an information specialist. Although the information specialist is dedicated full-time to the computer system, the amount of time spent with the computer system by the controller, finance director and other personnel was underestimated. Monica Bieri estimates that she spent approximately 25-30 hours per week during 1982 and 1981 working with the computer developing and maintaining programs, planning projects, monitoring equipment needs and day-to- day operations. Currently, she spends 15-20 hours per week working with the system. The finance director has also devoted a substan- tial amount of time developing programs and systems for the com- puter during the past three years. This time from Rosemary and Monica represents an additional workload without a corresponding reduction in other responsibilities. 7) During the past 3 years, the City has issued 22 IDR bond issues and 2 general obligation bond issues. Each new issue involves a considerable amount of time from the finance director and finance department secretary for planning, research, and accumulating the financial data and other information contained in the bond docu— ments. 8) During the past two years, Rosemary has spent a great deal of time improving the budget preparation process through new procedures and computer programs which were developed by her. The budget process has been greatly streamlined through her efforts, yet it still requires a great deal of her personal time each year since the full—time position of budget administrator was eliminated. A senior accountant position was added approximately one year ago to assist the finance director. However, a considerable amount of that individual's time has been devoted to the preparation of long—range financial projections and assisting the controller and the treasurer in their heavy workloads, particularly in the area of the annual financial reports. Therefore, this individual has not been j available to assist the finance director in budget preparation and other duties as anticipated when the position was created. 9) In 1980, the City changed its annual financial reporting method from the cash basis to accrual basis. In previous years, the data for the financial statements was extracted directly from the City's year—end receipts and expenditure reports. The conversion to the accrual basis requires the preparation of numerous schedules and workpapers each year. The process of preparing and auditing the annual financial report has gone from a time period of approxima— tely 90 days to almost a 180 day period. Because of the complexity of the accounting methods used, the increased workload required to prepare the financial statements for the past three years has basi— cally been the responsibility of the management personnel in the department. In our opinion, a number of the errors and findings which we have reported in the past three years are a direct result of the overload of work in the finance department. We feel that the staffing needs of the City's finance department need to be studied in depth and addressed as soon as possible. The various errors and omissions are a natural result of the lack of adequate review and supervision time available from the management personnel in the department. It appears that the greatest strain is not specifically due to an insufficient number of clerks in the treasury and accounting divisions, but the demands on the time of the management personnel, specifically the finance director, controller and treasurer. If additional personnel are added, they should be at an education, experience and salary level that will directly alleviate the workload of the management level personnel. O?,9,f&I j r. If you haves nnv nnnsHnna nhn,ir �hn ....m..,e o — ....4..4—n __, I_ -I,- lette aid i DW :11 EXHIBIT C Additional Responsibilities Assigned to the Accounting Division Within the Past Three Years Staff Hours Task Per Month Equipment replacement and rental transfers I Refuse transfers .5 JCCOG billings and reporting I Hawkeye CableVision billings for water receipts and miscellaneous charges (requested by the Library) 1 Construction sales tax refunds p Landfill billings pZ Public housing accounting 80 UMTA Section 18 operating grant p UMTA Section 18 capital grant 1.5 UMTA Section 5 operating grant 4 UMTA Transit facility grant 1 Senior Center Eldercraft Shop accounting 3 Bonds and coupon payments 18 Refund adjustments p Bulk mail adjustments .5 Collection agency processing I Health insurance reserve transfers 3 Microfilming of vouchers 1.5 Microfilming of time records I aa8o V J Senior Center agencies billings 3 Press -Citizen billing chargebacks 1 Microfische coordination for computerized applications 12 Life insurance monthly billings .5 Disability insurance monthly billings .5 Credit Union deductions 2 Direct deposits of payroll checks 3 Deferred compensation monitoring 2 D.P. forms inventory maintenance 3.5 Phone billing distribution to departments 9 Assistance to Mayor's Youth for their Youth Corps Grant 2 Fixed asset monitoring 2 Equipment fueling facility coordination .5 Excavation escrow deposits 2 Cable TV Commission work 3 Increased library expenditures 22 Total 214 Johnson County Council of Governmt, its 9�94l0E\75hng10nS1 bACGLy,bA1)52240 rr 0 Date: October 6, 1983 To: Neal Berlin; Mike Kattchee, Mike Finnegan From:* John Lundell, Transportation Planner Re: UMTA Section 3 grant for additional transit coaches Thanks largely to this area's good rapport with the UMTA Region 7 Office, our recently approved Section 3 grant was based on an 80% federal, 20% local share basis rather than the present 75%-25% split. Therefore, local matches have been reduced even further than the reduction contained in my July 21, 1983, memo to you. The new local share amounts are as follows: A These expenses will be incurred during FY85 so please keep these in mind during upcoming budget discussions. Thank you. i bdw2/24 cc: Transit Managers Don Schmeiser, JCCOG Director ao�/ Original July 21 Latest Agency Budget Revision Revision City of Iowa City $260,531 $258,292 $211,568 City of Coralville 92,608 90,369 75,071 University of Iowa 136,911 134,672 108,028 A These expenses will be incurred during FY85 so please keep these in mind during upcoming budget discussions. Thank you. i bdw2/24 cc: Transit Managers Don Schmeiser, JCCOG Director ao�/ Ci r:ily of Iowa City MEMORANDUM �1) r, J Date: October 6, 1983 �." C� To: Rosemary Vitosh, Director of Financ/e 1 From: Cathy Eisenhofer, Purchasing Agent Re: Resident Bidder Preference On August 18, 1983, bids were opened for the new transit facility office furniture with a Cedar Rapids vendor bidding $10 less than an Iowa City vendor. Award was recommended to the out-of-town vendor based upon the lowest responsive and responsible bid submitted. The award was in line with the rules and regulations provided by the Urban Mass Transportation Association. Current City procurement policy, for award of contracts, concurs with UMTA regulations, lowest responsive and responsible bidder. In addition, City policy provides for, price and other.factors being equal, preference will be given first to resident bidders of the city." Nine (9) cities* in Iowa were surveyed as to resident bidder preference policy. None of the nine cities provide for an established dollar or percentage local preference. Local preference is discouraged by the American Bar Association and Grants Management Advisory Service, Preferential Procurements --An Overview; October 1979. A book published in 1983 by the Council of State Governments titled State and Local Government Purchasing cites the practice of resident preference as follows: flistorically, many city and county governments have had policies or ordinances which give preference to resident suppliers. The force behind resident preferences in public purchasing is political. As a matter of economics, the practice is a subsidy that is costly to the taxpayers. As a matter of law, the practice may be a violation of the constitutional prohibition against interstate tariffs. As a matter of public purchasing policy, the practice discourages competition and weakens the principles of competitive bidding. Public purchasing officals remain opposed to -resident preferences except where no sacrifice or loss in price or quality would result. As a standard of good purchasing practice, I would like to see the policy on resident bidder preference for the City of Iowa City remain as written; "price and other factors being equal, preference will be given first to resident bidders of the City." *Ames, Cedar Falls, Cedar Rapids, Clinton, Davenport, Des Moines, Dubuque, Sioux City and Waterloo. do8z ^City of Iowa Citj MEMORANDUM Date: September 29, 1983 To: Neal Berlin and City Council JJ ` From: Chuck Schmadeke, Director of Public Works 1.1 1f rel Re: Proposed Development Adjacent to Scott Boulevard Robert H. Wolf, the owner of 40 acres east of Scott Boulevard and north of Sunrise Mobile Home Court proposes to develop his property into 254 mobile home sites. The property has 1,918 feet of frontage along Scott Boulevard and is located outside of the city limits. Mr. Wolf is retaining ownership of the property and therefore, is not required to submit his development plan to the City for review. Mr. Wolf has requested the use of existing City facilities along Scott Boulevard. A private sewer treatment facility and a private well are proposed to serve the development. A letter of request from Mr. Wolf and a plat of the development are attached. Also attached is a response from Public Works. Public Works will inform Mr. Wolf of the City's position upon authorization to do so. tp4/8 .?o F3 LF 1-1 WOLF CONSTRUCTION, INC. CONCRETE SPECIALISTS Phone 8540794 2920 Industrial P=k Road IOWA CITY, IOWA 52240 Robert H. Wolf. President September 14, .1983 Charles J Schmadeke, P. E, Public Works Director City of Iowa City 410 East Washington Iowa City iA 52240 Re: Modern Manor Mobile Home Park Johnson County, Iowa Dear Mr Schmadeke: Erma J. Well, Vice•Prewdent I have begun grading operations at the above referenced site and anticipate initiating underground utility construction at the site in the very near future. There are several items I would like clarified: It is my understanding that Modern ,Manor has a total of three (3) access points available to it. I would like to construct one now at or near the center part of the property along Scott Boulevard. A curb cut permit will be needed and is respectfully requested. At the southwest corner of my property is a "city owned" flared end section of storm sewer. Request permission to remove this flared end section and construct, in its place, a junction box. The junction box will serve these purposes: 1. Safety reasons. 2. Tie my field tile and storm sewer lire into the junction box. 3. Tie Hames storm sewer line into the junction box. City permission is also respectfully requested to use portions of the easterly Scott Boulevard right-of-way for construction of an effluent line for disposal of treated sewage. I Your prompt review and response to the above concerns would be greatly appreciated. Thanking you for your kind considerations, iI remain, AROBE erely RT H WOLF / aoS3 M, J a/o/.P.4 hhu"TR S.'7ff 4611'04j CITY CSF IOWA CITY CIVIC CENTER 410 E. VVA5I-IINCTOi1\I ST. IOWA CITY, jOVVA. 52240 (319) 356-5CZO October 4, 1983 Robert H. Wolf Wolf Construction, Inc. 2920 Industrial Park Road Iowa City, Iowa 52240 Re: Modern Manor Mobile Home Park - Johnson County, Iowa Dear Mr. Wolf: I am in receipt of your letter of September 14, 1983, concerning the use of city facilities along Scott Boulevard to construct improvements for your proposed mobile home park. In your letter you have requested a street access, a con- nection to the city storm sewer, and use of the Scott Boulevard right-of-way for construction of an effluent line for disposal of treated sewage. A curb cut permit will be granted for construction of a street intersection which meets Iowa City design standards and is approved by the Engineering Division. It appears, however, that one access may not be sufficient to handle the expected traffic flow from 254 mobile home lots. Permission will also be granted for the construction of a junction box over the storm sewer at the southwest corner of your property, provided that the following conditions are satisfied: 1. The junction box design is approved by the Engineering Division. 2. Assurance that the capacity of the storm sewer will not be exceeded and that stormwater flows from the Scott Boulevard right-of-way will remain unrestricted. 3. The topography of, and improvements within, the mobile home park during rnd after development will allow excess runoff from a 100 year storm to pass from Scott Boulevard to the development without restriction beyond that which presently exists. The City prefers that you look at other alternatives for routing your sanitary sewer effluent line. However, if no other routing is feasible, the City would entertain entering into an agreement for use of the City right-of-way. We will look forward to receiving information on the design of the items listed above so that permits and/or agreements can be provided. Respectfully, Charles J. Schmadeke Director of Public Works bdw4/5-6 THE WALL STREET JOURNAL I Tbursday, October 6, 198. Survey Finds Flaws In Financial Data Of Cities, Counties Arthur Young Report Cites Incomplete Records, Says 54% of Localities Erred au • W.u. srnen,ouµu. scoff Reporter NEW YORK—Many U.S. cities and count - flea are releasing detective financial stale- ments even though municipal accounting methods are Improving,.according to a sdr- vey by Arthur Young & Co. The management and accounting firm said its survey of more than 550 munlclpali- ties found that 547, Issued financial state- ments that were flawed, requiring quallfiid opinions by certified public accountants. A qualified opinion can make It more dif- ficult or expensive for a city or county to borrow money.' In most cases, the survey found that the Onanclal-statement defects were due to In- complete ricords, particularly when valuing fixed assets such as buildings or heavy ma- chinery. Cornelius E. Verney: chat man'of Arthur Young's Government industry Group, said financial analysts worry that H a locality can't account precisely for Its fixed assets, It may be unable to maintain them ade- quately or even know where they are. Other common flaws stemmed from a to - call governments failure to conform to gen- erally accepted accounting principles or to report such Important factors as a major lawsuit or an Increased pension liability, the study said. Mr. Tierney said governments are re- porting their annual statements on a more timely basis. The survey found that 8396 of the municipalities published an annual re* port within six months of the.fiscal year - CA Mr: Tierney said the accounting profes- sion is trying to Improve governmental ac- counting standards; so that municipsilties include such factors as local airports, turn- pike authorities, waterworksand toll 1_� bridges In their balance sheets. "It certainly gives a more accurate 1l. nanclal picture," he said. "If a hospital Is running a large deficit, and it isn't reflected In the city's statement, the taxpayers don't know It, but the city has to pay for it." Many communities In Oregon and Wash- Ington state failed to report, for Instance, that the communilles had agreed to help back 12.25 billion of bonds Issued by Wash- ington Publlc Power Supply System. Mr. Tierney said. WPPSS defaulted on those bonds this summer. A government should be liable not only legally but morally to present such important Information to taxpayers and the financial community, he said. An Arthur Young statement Included with the survey noted that N the past, some cities' and counties' bond ratings were low- ered because of deficient financial reporting or because they failed to obtain audits of their statements. Mr. Tierney Bald the sur. vey found some Improvements N both areas. Much of the survey data; covering 557 cit. In, counties and townships, came from each municipality's official annual'report for the fiscal. year ended on or before Sept. 30, 1982. The survey will be updated each year for at least the next four years, Mr. Tierney said. J 0?990 Johnson Cc^-ity Council of Governm^its 410 E.MshinglonS[. lavva City, lawn 52240 rrr Date: October 10, 1983 To: City Council and City Manager From: Cheryl Mintle, Human Services Coordinator Re: CDBG Human Service Recommendation on Request from Hillcrest Family Services Transitional Facility for Chronically Mentally Ill Adults The following information is being provided in response to the Council's request for Human Services Coordinator input on the supplemental request from Hillcrest Family Services for $20,000 in CDBG funds. The funds are to complete the purchase and remodeling of an Iowa City facility for chronically mentally ill adults. Need: In November, 1982, I made a positive recommendation to the Council regarding CDBG funding of this project. On-site visits, interviews with staff and contacts with referral and funding sources all provided data for that recommendation. i'. Information revealed that except for three beds in a Catholic charities facility in Dubuque, adult men with psychiatric diagnoses have no residential facility space in Eastern Iowa. The only other homes in the state which have beds for men are located in Ames, Des I: Moines and Mason City. The previous Iowa City Residence for Women was rented and this project was to allow Hillcrest to purchase a large house to accommodate the seven beds they now have for women as well as expanding to house seven chronically mentally ill men. Hillcrest staff reported that they have numerous requests each year for transitional services for men. The facility usually has a waiting list for women who have an average wait of six weeks before they are e admitted to the program. ! Contacts with the County Department of Human Services, Mid -Eastern Iowa Community Mental Health Center, United Way of Johnson County, all confirm to the need for a transitional facility for chronically mentally ill men coming out of psychiatric hospitals and institutions. Since that report our office has conducted a telephone survey which i dealt with emergency housing needs and the need for a day treatment I program for the chronically mentally ill. For that survey, virtually every agency serving the chronically mentally ill in Johnson County was surveyed as well as the Mental Health Institute in Mt. Pleasant. ao8s .............. ■ Li Their reinforcement of men, was overwhelming. of service provided by were anxiously awaiting order to make referrals. Program Summary: the need for additional beds, especially for In addition, all spoke highly of the quality the then Iowa City Residence for Women and the completion of the proposed expansion in The program provided is a maximum of one year where the clients live in the house with group and individualized counseling support helping them get a job, completing schooling, learn daily living skills, and strengthen interpersonal skills. All activities are geared to moving the clients into the community where they must ultimately be able to function on their own. Follow-up occurs in a concentrated way for six to eight weeks after clients leave the residence. After that, contacts are client initiated, but plenty of opportunities are there for ex -resident involvement. Since their inception, the Iowa City Residence has served- 105 different women, 19 of these in 1982 with 2.140 days of rara Hillcrest has successfully operated the Iowa City Residence for Women for the past seven years. This residence and the others operated by Hillcrest have given them a track record which shows their ability to plan, open and maintain a 24-hour a day, seven day a week residential operation. Dudget The Iowa City Residence is only one of the residential facilities operated by Hillcrest Family Services with offices in Dubuque, Des Moines and Cedar Rapids. The agency has a diverse funding base for its budget of almost $2 million. The Iowa City Residence's 1983 budget is $111,310, with County, State and Federal per diem reimbursements as income. Fiscal planning for the project is extremely sophisticated. The larger parent organization provides additional financial security and program continuity as well. Recommendation: It is my feeling that this remains a well thought out project with excellent potential for successful implementation, that it will meet a real need in the community, and therefore should be allocated the $20,000 in supplemental funds requested. W? ads 1 City of Iowa City MEMORANDUM The Iowa City Human Rights Commission recommends the attached proposed revisions to the Iowa O ty Human Rights Ordinance (Chapter 18 of the Code of Ordinances of the City of Iowa City, Iowa). We recommend these revisions in the spirit of updating and improving an otherwise excellent document which has made Iowa City a leader in the promotion of human rights for all of its citizens. Background of Proposed Revisions A subcommittee of the Commission (Futrell, Barcelo, Gill, .Watson) began reviewing the ordinance during the Spring of 1982. Upon review the subcommittee proposed several changes. The full commission began discussion of the committees recommendations in the summer of 1982. After several discussion sessions within the Commission, a public hearing was held in December 1982 to solicit public comment on the proposed changes. The Commission received written comments from the public in December and January, and met with the Housing Commission in January 1983 to discuss their concerns regarding the proposed revisions. After considering the comments and making some modifications, the subcommittee met with David Brown of the city legal staff to ensure that the warding of the proposed revisions accurately reflected our intent in legal terms. At the January meeting the Human Rights Commission voted 7-0, with one member absent and one vacancy, to support adoption of the attached revisions. Overview of Proposed Revisions The proposed revisions are of two types. First, we are.proposing numerous minor and relatively noncontroversial changes. Many of these are wording changes 'to improve clarity or consistency. Others are changes in procedural sections to improve the functioning of the Commission. We have received no comments .on these proposed changes and recommend them primarily as fine-tuning. The second group of changes are more substantive and more controversial. The current ordinance does not provide adequate protection against discrimination to the people of Iowa City in several areas and we propose to extend protection in those areas. The current ordinance protects individuals from discrimination on the basis of age, color, creed, disability, marital status, .national origin, race, religion, sex and sexual orientation in the areas of employment; housing, public accommoda- tion and credit with the exceptions that: (a) marital status and sexual Date: March 23, 1983 i APR 4 1983 To: Iowa City Councilj� ) From: Iowa City Human RightsCommission] C1YY ' I.�RK Re: Proposed Revisions to the Iowa City Human Rights Ordinance (Chapter 18 of the Code of Ordinances of the City of Iowa City, Iowa) The Iowa City Human Rights Commission recommends the attached proposed revisions to the Iowa O ty Human Rights Ordinance (Chapter 18 of the Code of Ordinances of the City of Iowa City, Iowa). We recommend these revisions in the spirit of updating and improving an otherwise excellent document which has made Iowa City a leader in the promotion of human rights for all of its citizens. Background of Proposed Revisions A subcommittee of the Commission (Futrell, Barcelo, Gill, .Watson) began reviewing the ordinance during the Spring of 1982. Upon review the subcommittee proposed several changes. The full commission began discussion of the committees recommendations in the summer of 1982. After several discussion sessions within the Commission, a public hearing was held in December 1982 to solicit public comment on the proposed changes. The Commission received written comments from the public in December and January, and met with the Housing Commission in January 1983 to discuss their concerns regarding the proposed revisions. After considering the comments and making some modifications, the subcommittee met with David Brown of the city legal staff to ensure that the warding of the proposed revisions accurately reflected our intent in legal terms. At the January meeting the Human Rights Commission voted 7-0, with one member absent and one vacancy, to support adoption of the attached revisions. Overview of Proposed Revisions The proposed revisions are of two types. First, we are.proposing numerous minor and relatively noncontroversial changes. Many of these are wording changes 'to improve clarity or consistency. Others are changes in procedural sections to improve the functioning of the Commission. We have received no comments .on these proposed changes and recommend them primarily as fine-tuning. The second group of changes are more substantive and more controversial. The current ordinance does not provide adequate protection against discrimination to the people of Iowa City in several areas and we propose to extend protection in those areas. The current ordinance protects individuals from discrimination on the basis of age, color, creed, disability, marital status, .national origin, race, religion, sex and sexual orientation in the areas of employment; housing, public accommoda- tion and credit with the exceptions that: (a) marital status and sexual orientation are not protected under housing, and (b) mental disability is not protected under credit. The Commission strongly believes that these exceptions are illogical and effectively condone discrimination in these areas. Thus, we believe the following changes are necessary if Iowa City is to have a consistent human rights policy: (a) the area of housing protection should be extended to include marital status and sexual orientation, and (b) the area of credit protection should be extended to include mental disability as well as physical disability. The Commission further proposes that protection in housing be extended to include the presence or absence of dependents and public assistance source of income. We believe that discrimination in housing on the basis of dependents and source of income has harmed persons in those categories, and extension of protection is needed in the interest of human rights in Iowa City. Rationale for Proposed Revisions Inclusion of Marital Status and Sexual Orientation Under Housin . Maritalstatus and sexualorientation are protected classes in all other sections of the ordinance (employment, public accommodation, credit) and logically they should be protected classes in housing as well. The Commission finds no reason why discrimination on the basis of marital status or sexual orientation is any more acceptable in housing than in the other areas. Furthermore, public comment strongly supported these proposed revisions. The major objections to these inclusions, expressed in comments we received, was an objection to increased regulation in general. The inclusion of marital status and sexual orientation neither requests specific actions nor restricts activities in the area of housing and thus, this extension should have minimal impact on those providing housing in Iowa City. The existing regulations prohibiting discrimination on the basis of marital status and sexual orientation have had a positive effect on the Iowa City community. We believe that the compelling logic of extending protection in these areas far outweighs any possible detrimental effects of increased regulation. source OT income unaer nousina. inese cnanges wouia escaoiisn new protected classes only in .the area of housing. We believe that discrimi- nation on the basis of dependents and source of income in the area of housing has harmed Iowa City residents sufficiently to justify their inclusion in the ordinance. (It should be noted that in the first draft of proposed changes the provision for dependents was included in the definition of marital status. Confusion illustrated in the public comments prompted us to treat dependents as a separate issue.) The proposed revisions include dependents of all ages, such as elderly parents and disabled persons, as well as children. The provision for dependents has proven to be the most controversial proposal, and the concerns center around the issue of children. Public comments opposing the change focused on the suitability of some housing for children and the desires of other tenants to be in all -adult housing. The Commission recognizes the validity of these concerns, but believes the human rights of persons with dependents outweigh these arguments. It should be noted that the proposed a o8L l inclusion of dependents in no way is intended to restrict the rights of property owners or others engaged in housing transactions to set fair and reasonable criteria regarding income, damage deposits, number of occupants, order and cleanliness as otherwise allowed by law. We strongly believe that suitability of housing should be the concern of the potential tenant and not a discriminatory criterion limiting the choice of housing. For example, in the view of the Commission it is discriminatory if a single mother and one child cannot rent an apartment if two adults could rent the same apartment. Although a concern for other tenants seems logical, application of that standard could be (and indeed has been) used to justify discrimination on any basis. Thus, in terms of human rights, the concern of those not directly involved in the housing transaction ust be secondary to the rights of thdse who might be discriminated against.m Inclusion of Mental Disabilit under Credit. This proposed revision provides protection to a class of individuals already protected under all other sections of the ordinance. Public comments from a number of people, including representatives of several agencies and organizations specifically providing services to the disabled, supported this change, and we received almost no negative response. Availabilityof c ive independently. redit is an important factor in assisting disabled persons to l This proposal in no way prohibits creditors from applying fair and reasonable standards of creditworthiness or ability to comprehend the transaction. Indeed, these are the nondiscriminatory -standards that should be applied. As with the inclusion of marital status and sexual orientation under housing, the rationale for including mental disability under credit is far more compelling than any counter -arguments. Wfurther e of the Iowa City Human Rights Commission will be happy to provide forward to discussing them with you ese at anrinformalosed rCouncilssess�onwat your convenience. Attachments: 1.Proposed revisions in Iowa City Human Rights Ordinance 2, Iowa City Human Rights Ordinance, as proposed, with revisions capitalized. 3. Current Iowa City Human Rights Ordinance (Ordinance No. 77-2830 as amended by Ordinance No. 79-2951). bj5/1-3 EM EXHIBIT II Proposed Changes in Iowa City Human -Rights Ordinance (Please refer to Ordinance No. 77-2830, Exhibit III) A. Article I, Section 18-1 Definitions (p. 1-3) redefine AGE: means chronological age of any person who has reached the age of 18 or is considered by law to be an adult. RATIONALE: To clarify and make grammatically consistent with other definitions. add definition DEPENDENT: any person, regardless of age, who resides in a household and who derives primary care or support from that household. I redefine DISABILITY: means teipFysical or mental condition of a person which constitutes a substantial handicap. A disabled individual is any person who 1) has a physical or mental impairment or mental impairment which substantially limits one or more of such person's major life activities, 2) has a record of such impairments, or 3) is regarded as having such impairment. RATIONALE: To make consistent with Federal definition of .disability. add definition MARITAL STATUS: means con ttlon o being married, single, divorced, separated, or widowed. RATIONALE: To clarify and broaden protection in this area. j add definition PUBLIC ASSISTANCE SOURCE OF INCOME: f means incomeand support erive rom any tax supported federal, state or local funds, including but not limited to Social Security, ( Supplemental Security Income, Aid to Families with Dependent j Children, Food Stamps, Rent Subsidies, and unemployment compensation. delete, under SEXUAL ORIENTATION: everything after the first sentence, ending "of the opposite sex." j RATIONALE: To make form consistent with other definitions. WE ,J 0 2 B. Article III, Section 18-31 Employment (p. 5-7) (a) The clause at the end, reading "unless such disability is related to job performance of such person or employee" to be deleted. RATIONALE: Necessary exemptions are covered in subsection (d). (d)-(2) Add the words "or disability" to the end of clause. RATIONALE: To clarify intent. (d)-(7) Omit entire subsection (d)-(7). Add a new section (d)-(8), to read: To employ on the basis of disability in those certain instances where presence of disability is a bona fide occupational qualification reasonably necessary to the normal operation of a particular business or enterprise. The bona fide occupational qualification shall be interpreted narrowly. RATIONALE: To allow additional exemption to employers. C. Section 18-32 Housing (p. 7-8) (a)-(1) The clause "marital status, sexual orientation, presence or absence of dependents, or public assistance source of income" to be added to the end of this section. RATIONALE: To broaden protection in this area. (a)-(2) (3) (4) The above condition to be made in the appropriate place in each of these sections. RATIONALE: To be consistent throughout section. (b)-(3) Shall be changed to read "Restrictions based on sex or the presence or absence of dependents in the rental or leasing of housing accommodations by nonprofit corporations." (d) The words "age, disability, marital status, sexual orientation, or public assistance source of income" to be added to the end of this clause. RATIONALE: To broaden protection, clarify intent. Section 18-33 Public Accommodation (d) The words "age or disability" to be added to the end of this clause. „_ ao86 Ci rte, 3 RATIONALE: To clarify intent. D. Section 18-34 Credit (p.8-9) (a) The word "Physical" to be deleted. RATIONALE: To broaden and make consistent the protection in this area. (b) The word "physical" to be deleted. RATIONALE: To broaden and make consistent the protection in this area. (c) The word "physical," which appears twice in this clause, to be deleted in both cases. RATIONALE: To broaden and make consistent the protection in this area. Add a new section (d)-(1), to read: (d) The following are exempted from this section: (1) Refusal to enter into any consumer credit transaction covered above shall not be•a discriminatory practice if such denial is based on a fair and reasonable determination of credit- worthiness or ability to comprehend the transaction. RATIONALE: To broaden and make consistent the protection in this area. i E. General Procedures (p. 9-14) Section 18-37 (a)(1): (p. 9) delete "labor" add "business" in line six. RATIONALE: To clarify intent. Section 18-38 (d); (p. 10) delete last sentence; replace with: "Predetermination settlements shall be subject to review by the commission chairperson." RATIONALE: To expedite processing of predetermination settlements. Section 18-40 (a); p. 12) in first sentence, line 2, delete "commission" and replace with "conciliation team." End of sentence shall still read "reported to the Commission." 07000/0 Ci 4 RATIONALE: To conform to current practice - Commission on a whole does not participate in conciliation of an individual case. Section 18-40: (p. 13-14) add new subsection (e): move subsections 18-43 (a)-(1), 18-43 (a)- (2), and 18-43 (a)-(3) to become a new subsection, (e)-(1), (2) and (3). RATIONALE: To define "remedial" action for purposes of conciliation. Section 18-41: (p. 13) in line 3, delete the words "designated members of the"; delete "recommend" in line 4 and replace with "report." Delete last sentence, beginning with "Similarly, if..." Additional note: Throughout the ordinance, wherever the listing of protected classes appears, the listing shall be made in alphabetical order; except under Housing, Sec. (a)(1)(2)(3)(4), where the classes "presence or absence of dependents" and "public assistance source of income" shall appear at the end of the listing of other protected classes. RATIONALE: To make the listings consistent and aid in comparison from section to section. � OCL CHAPTER 18 HUMAN RIGHTS Art. I. In General, ss 18-1--18-15 Art. II. Commission, ss 18-16--18-30 Art. III. Discriminatory Practices, ss 18-31--18-44 ARTICLE I. IN GENERAL Sec. 18-1. Definitions. J As used in this chapter the following terms shall have the meanings indicated: AGE MEANS CHRONOLOGICAL AGE OF ANY PERSON WHO HAS REACHED THE AGE OF 18 OR IS CONSIDERED BY LAW TO BE AN ADULT. CITY ATTORNEY shall mean the duly appointed attorney for the City or such person designated by him/her. COMMISSION shall mean the Iowa City Human Rights Commission. COMPLAINANT means a person who has filed a report of discrimination as provided for by section 18-37 of this chapter. COMPLAINT means a report of discrimination provided for by section 18-37 of this chapter. CONCILIATION TEAM shall mean a team of two (2) members or more of the Commission appointed to conciliate cases on which probable cause has been found. COURT means the district court in and for the judicial district of this state in which the alleged unfair or discriminatory practice occurred, or any judge of such court if the court is not in session at this time. CREDIT TRANSACTION means any open or closed end credit transaction including but not limited to a loan, retail installment transaction, credit card issue or charge, and whether for personal or for business purposes, in which a service, finance, or interest charge is imposed, or which provides for repayment in scheduled payments, when such discredit is extended in the regular course of any trade or commerce. DEPENDENT MEANS ANY PERSON, REGARDLESS OF AGE, WHO RESIDES IN A HOUSEHOLD AND WHO DERIVES PRIMARY CARE OR SUPPORT FROM THAT HOUSEHOLD. DISABILITY MEANS THE PHYSICAL OR MENTAL CONDITION OF A PERSON WHICH CONSTITUTES A SUBSTANTIAL HANDICAP. A DISABLED INDIVIDUAL IS ANY PERSON WHO 1) HAS A PHYSICAL OR MENTAL IMPAIRMENT WHICH SUBSTANTIALLY LIMITS ONE OR MORE OF SUCH PERSON'S MAJOR LIFE ACTIVITIES, 2) HAS A RECORD OF SUCH IMPAIRMENTS, OR 3) IS REGARDED AS HAVING SUCH IMPAIRMENT. 4;44 J EMPLOYEE includes every person who works for wages, salary, or commissions or any combination thereof, and, in context, the term also includes those who are seeking or applying for employment. EMPLOYER includes all persons, wherever situated, who employ one or more employees within the city, or who solicit individuals within the city to apply for employment within the city or elsewhere. The term includes the city itself, and all other political subdivisions, public corporations, governmental units conducting any activity within the city, and public agencies or corporations. EMPLOYMENT AGENCY means any person undertaking to procure employees or opportunities to work for any other person. HOUSING ACCOMMODATION includes any improved or unimproved real estate which is used, capable of being used, or intended to be used as a permanent or temporary residence or sleeping place for one or more persons whether by sale, lease, or otherwise. It specifically includes lots suitable for single or multi -family residential development. HOUSING TRANSACTION means the sale, exchange, rental or lease of real property or housing accommodation and the offer to sell, exchange, rent or lease real property. INVESTIGATOR means a person appointed by the city manager with the consultation of the Commission, to investigate complaints filed in accordance with this chapter. LABOR ORGANIZATION means any organization which exists for the purpose in whole or in part of collective bargaining, of dealing with employers concerning grievances, terms, or conditions of employment, or of other mutual aid or protection in connection with employment. MARITAL STATUS MEANS CONDITION OF BEING MARRIED, SINGLE, DIVORCED, SEPARATED, OR WIDOWED. PERSON means one or more individuals, partnerships, associations, corporations, legal representatives, trustees, receivers, the city or any board, commission, department, or agency thereof, and all other governmental units conducting any activity in the city. PUBLIC ACCOMMODATION means each and every place, establishment, or facility of whatever kind, nature, or class that caters or offers services, facilities, or goods to the general public for a feeor charge. Each and every place, establishment, or facility that caters or offers services, facilities, or goods to the general public gratuitously shall be deemed a public accommodation if the accommodation receives any substantial governmental support or subsidy. Public accommodation shall not mean any bona fide private club or other place, establishment, or facility which is by its nature distinctly private, except that, when such distinctly private place, establishment, or facility caters or offers services, facilities, or goods to the general public for fee or charge or gratuitously, it shall be deemed a public accommodation during such period. PUBLIC ASSISTANCE SOURCE OF INCOME MEANS INCOME AND SUPPORT DERIVED FROM ANY TAX SUPPORTED FEDERAL, STATE OR LOCAL FUNDS, INCLUDING BUT NOT LIMITED TO SOCIAL aoBG 3 SECURITY, SUPPLEMENTAL SECURITY INCOME, AID TO FAMILIES WITH DEPENDENT CHILDREN, FOOD STAMPS, RENT SUBSIDIES, AND UNEMPLOYMENT COMPENSATION. RESPONDENT means a person who is alleged to have committed an act prohibited by this chapter, against whom a complaint has been filed, as provided by this chapter. SEXUAL ORIENTATION means the status of preferring a relationship of affection or a sexual relationship with a consenting adult of the same sex or with a consenting adult of the opposite sex. Sec. 18-2. Purpose. It is the purpose of this chapter to protect citizens of the city against discrimination as defined in this chapter. Moreover, this chapter provides for execution within the city of the policies of the Civil Rights Act of 1964 and the Federal Civil Rights Acts and the promotion of cooperation between the city and the state and federal agencies enforcing these acts. Sec. 18-3--18-15. Reserved. ARTICLE II. COMMISSION Sec. 18-16. Established; duties generally. There is hereby established the Iowa City Human Rights Commission whose duty it shall be to disseminate information and provide the mediation, conciliation and' enforcement necessary to further the goals of this chapter and to protect citizens from unfounded charges of discriminatory practices. Sec. 18-17. Powers. The Commission created by this article shall have the following powers: (a) To receive, investigate, and finally determine the merits of complaints alleging unfair or discriminatory practices. (b). To investigate and study the existence, character, causes, and extent of discrimination in the areas covered by this chapter and eliminate discrimination by education, conciliation, and enforcement where necessary. (c) To issue publications and reports of the research and investigations of the Commission subject to the limitations of confidentiality. (d) To prepare and transmit to the city council from time to time, but not less often than once each year, reports describing its proceedings, investigations, hearings conducted and the outcome thereof, decisions rendered, and the other work performed by the Commission. ao�� 4 (e) To make recommendations to the city council for such further legislation concerning discrimination as it may deem necessary and desirable. (f) To cooperate, within the limits of any appropriations made for its operation, with other agencies or organizations, both public and private, whose purposes are not inconsistent with those of this chapter, and in the planning and conducting of programs designed to eliminate racial, religious, cultural and other intergroup tensions. (g) To adopt guidelines by which to determine whether any conduct, behavior, or action may properly be deemed a discriminatory practice. (h) To make recommendations to the city manager and city council regarding the affirmative action program of the City and to offer assistance to city departments as will insure fair employment procedures and the provision of city services without bias. Sec. 18-18. Structure. The Commission shall consist of nine (9) members, appointed by vote of the city council. Appointees shall serve for a term of three (3) years and thereafter until a successor has been appointed. Vacancies shall be filled for the remainder of the unexpired term. Appointments shall take into consideration men and women of the various racial, religious, cultural, social and economic groups in the City. Sec. 18-19. Records to be public; exceptions. (a) All records of the Commission shall be public, except: (1) Complaints of discrimination, reports of investigations, statements and other documents or records obtained in investigation of any charge shall be closed records, unless a public hearing is held. (2) The minutes of any session which is closed under the provisions of this chapter shall be closed records. (b) No member of the Commission or of its staff shall disclose the filing of a charge, the information gathered during the investigation, or the endeavors to eliminate such discriminatory or unfair practice by conference, conciliation, or persuasion, unless each disclosure is made in connection with the conduct of an investigation. Nothing in this provision shall prevent, however, the Commission from releasing such information concerning alleged or acknowledged discriminatory practices to the state civil rights commission, the United States Civil Rights Commission, the Federal Equal Employment Opportunity Commission, and other agencies or organizations whose primary purpose is the enforcement of civil rights legislation. This section does not prevent any complainant, witness or other person from publicizing the filing of a complaint or the matter therein complained of. Violation of these. provisions by a member of the Commission or its staff shall constitute grounds for removal. a'14 Aa Li d 5 % Secs. 18-20--18-30. Reserved. ARTICLE III. DISCRIMINATORY PRACTICES Sec. 18-31. Employment; exceptions. (a) It shall be unlawful for any employer to refuse to hire, accept, register, classify, upgrade or refer for employment, or to otherwise discriminate in employment against any other person or to discharge any employee because of age, color, creed, disability, marital status, national origin, race, religion, sex, or sexual orientation. (b) It shall be unlawful for any labor organization to refuse to admit to membership, apprenticeship or training an applicant, to expel any member, or to otherwise discriminate against any applicant for membership, apprenticeship or training or any member in the privileges, rights, or benefits of such membership, apprenticeship or training because of age, color, creed, disability, marital status, national origin, race, religion, sex, or sexual orientation of such applicant or member. (c) It shall be unlawful for any employer, employment agency, labor organization, or the employees or members thereof to directly or indirectly advertise or in any other manner indicate or publicize that individuals are unwelcome, objectionable, or not solicited for employment or membership because of age, color, creed, disability, marital status, national origin, race, religion, sex, or sexual orientation. (d) The following are exempted from the provisions of this section: (1) Any bona fide religious institution or its educational facility, association, corporation or society with respect to any qualifications for employment based on religion when such qualifications are related to a bona fide religious purpose. A religious qualification for instructional personnel or an administrative officer, serving in a supervisory capacity of a bona fide religious educational facility or religious institution, shall be presumed to be a bona fide occupational qualification. (2) An employer or employment agency which chooses to offer employment or advertise for employment to only the disabled or elderly. Any such employment or offer of employment shall not, however, discriminate among the disabled or elderly on the basis of age, color, creed, disability, marital status, national origin, race, religion, sex, or sexual orientation. (3) The employment of individuals for work within the home of the employer if the employer or members of his/her family reside therein during such employment. (4) The employment of individuals to render personal service to the person of the employer or members of his/her family. 074940 Ci J 6 1�1. (5) To employ ,on the basis of sex in those certain instances where sex is a bona fide occupational qualification reasonably necessary to the normal operation of a particular business or enterprise. The bona fide occupational qualification shall be interpreted narrowly. (6) Notwithstanding the provisions of this section, a state or federal program designed to benefit a specific age classification which serves a bona fide public purpose shall be permissible. (7) TO EMPLOY ON THE BASIS OF IN PRESENCES OFDISABILTYIS A DISABILITY THOSE INSTANCES FIDE OCCUPATIONAL QUALIFICATION REASONABLY NECESSARY TO THE NORMAL OPERATION OF A PARTICULAR BUSINESS OR ENTERPRISE. THE BONA FIDE OCCUPATIONAL QUALIFICATION SHALL BE INTERPRETED NARROWLY. Sec. 18-32. Housing; exceptions. (a) It shall be unlawful for any person to: (1) Refuse to engage in a housing transaction with any other person because of age, color, creed, disability, MARITAL STATUS, national origin, race, religion, sex, SEXUAL ORIENTATION, PRESENCE OR ABSENCE OF DEPENDENTS, OR PUBLIC ASSISTANCE SOURCE OF INCOME. (2) Discriminate against any other person because of age, color, creed, disability, MARITAL STATUS, national origin, race, religion, sex, SEXUAL ORIENTATION, PRESENCE OR ABSENCE OF DEPENDENTS, OR PUBLIC ASSISTANCE SOURCE OF INCOME; in the terms, conditions or'privileges of any real estate transaction. (3) Directly or indirectly advertise, or in any other manner indicate or publicize in any real estate transaction that any person because of age, color, creed, disability, MARITAL STATUS, national origin, race, religion, sex, SEXUAL ORIENTATION, PRESENCE OR ABSENCE OF DEPENDENTS, OR PUBLIC ASSISTANCE SOURCE OF INCOME is not welcome, objectionable, or not solicited. (4) Discriminate against the lessee or purchaser of any real property or housing accommodation or part, portion or interest of the real property or housing accommodation, or against any prospective lessee or purchaser of the property or accommodation, because of age, color, creed, disability, MARITAL STATUS, national origin, race, religion, sex, SEXUAL ORIENTATION, PRESENCE OR ABSENCE OF DEPENDENTS, OR PUBLIC ASSISTANCE SOURCE OF INCOME of persons who may from time to time be present in or on the lessee's or owner's premises for lawful purposes at the invitation of the lessee or owner as friends, guests, visitors, relatives or in any similar capacity. (b) The following are exempted from the provisions of this section: (1) Any bona fide religious institution with respect to any qualification it may impose based on religion when such qualifications are related to a bona fide religious purpose. aa& (2) The rental or leasing of four (4) or fewer rooms within an owner - occupied rooming house in which renters pass through the owner's living area. (3) RESTRICTIONS BASED ON SEX OR THE PRESENCE OR ABSENCE OF DEPENDENTS IN THE RENTAL OR LEASING OF HOUSING ACCOMMODATIONS BY NON-PROFIT CORPORATIONS. (4) Restrictions based on sex in the rental or leasing of housing accommodations within which residents of both sexes would share a common bathroom facility on the same floor of the building. (c) This section does not create an affirmative duty to remove barriers for the handicapped in excess of the requirements of Chapter 104A, of the Code of Iowa. (d) Housing accommodations may be designated specifically for the elderly and disabled. However, housing accommodations may not be restricted among the elderly and disabled on the basis of age, color, creed, disability, MARITAL STATUS, national origin, sex, SEXUAL ORIENTATION, orientation, PRESENCE OR ABSENCE OF DEPENDENTS, OR PUBLIC ASSISTANCE SOURCE OF INCOME. Sec. 18-33. Public accommodation; exceptions. (a) It shall be unlawful for any person to deny any other person the full and equal enjoyment of the goods, services, facilities, privileges, advantages of any place of public accommodation because of AGE, color, creed, DISABILITY, marital status, nationalorigin, race, religion, sex, or sexual orientation. (b) It shall be unlawful to directly or indirectly advertise or in any manner indicate or publicize that the patronage of persons is unwelcome, objectionable, or not solicited because of AGE, color, creed, DISABILITY, marital status, national origin, race, religion, sex, or sexual orientation. (c) This section shall not apply to any bona fide religious institution with respect to any qualifications the institution may impose based on religion when such qualifications are related to bona fide religious purpose. (d) Public accommodations may be designated specifically for the elderly and disabled. However, public accommodations may not be restricted among the elderly and disabled on the basis of AGE, color, creed, DISABILITY, marital status, national origin, race, religion, sex, or sexual orientation. Sec. 18-34. Credit transactions; exceptions. (a) It shall be unlawful for any creditor to refuse to enter into any consumer credit transaction or to impose finance charges or other terms or conditions more onerous than those regularly extended by that creditor to consumers of similar economic backgrounds because of age, color, creed, DISABILITY, marital status, national origin, race, religion, sex, or sexual orientation. 8' (b) It shall be unlawful for any person authorized or licensed to do business in this state pursuant to Chapter 524, 533, 534, 536, or 536A of the Code of Iowa to refuse to loan or to extend credit or to impose terms or conditions more onerous than those regularly extended to persons of similar economic backgrounds because of age, color, creed, DISABILITY, marital status, national origin, race, religion, sex, or sexual orientation. (c) It shall be unlawful for any creditor to refuse to offer credit, life or health and accident insurance because of age, color, creed, DISABILITY, marital status, national origin, race, religion, sex or sexual orientation. Refusal by a creditor to offer credit, life or health and accident insurance based upon the age or DISABILITY of the consumer shall not be an unfair or discriminatory practice if such denial is based solely upon bona fide underwriting consideration not prohibited by Title XX. The provisions of this section shall not be construed by negative implication or otherwise to narrow or restrict any other provisions of this ordinance. (d) The following are exempted from this section: s (1) REFUSAL TO ENTER INTO ANY CONSUMER CREDIT TRANSACTION COVERED ABOVE SHALL NOT BE A DISCRIMINATORY PRACTICE IF SUCH DENIAL IS BASED ON A FAIR AND REASONABLE DETERMINATION OF CREDIT -WORTHINESS OR ABILITY TO COMPREHEND THE TRANSACTION. Sec. 18-35. Aiding or abetting. It shall be a violation of this chapter for any person to intentionally aid, abet, compel, or coerce another person to engage in any of the practices declared to constitute discriminatory practices by this article. Sec. 18-36. Retaliations or reprisals. It shall be a violation of this chapter for any person to discriminate against another person because such person has either lawfully opposed any discriminatory practice forbidden by this article, obeyed the provisions of this chapter, or has filed a complaint, testified, or assisted in any proceeding under this chapter. Sec. 18-37. Report. (a) The following procedures are the only authorized methods for reporting a discriminatory practice to the Commission: (1) Any person claiming to be aggrieved by a discriminatory practice within the city limits may by himself/herself or by his/her attorney, make, sign, and file with the Commission a verified written complaint which shall state the name and address of the person, employer, employment agency, or BUSINESS organization alleged to have committed the discriminatory or unfair practice of which complained, shall set forth the circumstance under which the discriminatory practice took place, the date, and shall contain such other information as may be required by the Commission. '?.0&f4 9 1. (2) The Commission, a commissioner, a city attorney, the state civil rights commission, or any other person aware of the existence of a discriminatory practice may in like manner make, sign, and file such complaint. (b) Any complaint filed under this ordinance shall be so filed within one hundred eighty (180) days after the most recent act constituting the alleged discriminatory practice. (c) A verified copy of a complaint filed with the state civil rights commission under the provisions of Chapter 601A, Code of Iowa, or EEOC shall be sufficient complaint for the purpose of this chapter, if it alleges either in the text thereof or in accompanying statements that the alleged discriminatory practice occurred within this city. Sec. 18-38. Investigation of complaints. (a) After the filing of a'complaint, a true copy thereof shall be served within 20 days by registered mail to the person against whom the complaint is filed. Then a commissioner, the investigator, or another duly authorized member of the commission's staff, shall make a prompt complaint. .investigation of the (b) Upon application, the commission may issue subpoenas requiring a party to appear or to produce books, documents, and records which may be relevant to the alleged discriminating practice. The Commission may issue subpoenas if it finds the following to be true: (1) The subpoena is necessary to carry out a public hearing of the Commission; or (2) The respondent fails to provide information relevant to the investigation and the investigator is unable to proceed without specific materials. (c) The investigator shall determine whether probable cause exists to believe that the person charged in the complaint has committed a discriminatory practice and shall file a detailed report with the city attorney. After completion of this determination, the city attorney shall send to the commission, a written statement of reasons as to whether or not probable cause exists to believe that a discriminatory practice occurred as alleged by the complainant. (d) At any time after the initial filing of a complaint of unfair or discriminatory practice, but before the investigator's recommendation to the city attorney, the investigator may seek a disposition of the complaint through the use of a predetermination settlement if such settlement is in the interest of the complainant. PREDETERMINATION SETTLEMENTS SHALL BE SUBJECT TO REVIEW BY THE COMMISSION CHAIRPERSON. Sec. 18-39. Results of investigation; action to be taken. ao1,L 1 (a) Finding of no probable cause. After an investigation under this article: (1) If the investigator finds no probable cause to believe that the person charged has committed an unfair or discriminatory practice, and the city attorney concurs with that finding, he/she shall report the same to the Commission. If designated members of the Commission agree that no probable cause does exist, it shall notify the parties in writing by certified mailing, return receipt requested, of the findings and of the complainant's right to appeal therefrom. If they 'disagree as to no probable cause, they shall make the final determination on probable cause and proceed as provided in this chapter. (2) If the complainant fails to object to the finding of no probable cause within ten (10) days of receipt of such written notice, the Commission shall close the case. The secretary of the Commission shall report this finding to the civil rights commission. (3) If the complainant objects in writing to the finding of no probable P cause within ten (10) days of receipt of such written notice, the designated members of the Commission shall hear his/her evidence in executive session. If they again find no probable cause to believe that the person charged has committted a discriminatory practice, they shall declare the case closed. After appeal, if they find probable cause to exist, they shall proceed as provided in this 'r chapter. (4) If the investigator and city attorney disagree as to probable cause, the designated members of the Commission shall make the final i determination on probable cause and proceed as provided in this chapter. ` (b) Finding of probable cause. After an investigation under this article: (1) If the investigator finds probable cause to believe that the person charged has committed an unfair or discriminatory practice, and the city attorney concurs in that finding, then those members of the Commission designated as conciliators should make an independent evaluation as to the determination as to whether probable cause exists before proceeding with the conciliation. (2) Upon the finding of probable cause to believe that the person charged has committed a discriminatory practice, a conciliation team shall promptly endeavor to eliminate such discriminatory or unfair practice by conference, conciliation, and persuasion in accordance with remedies provided in section 18-40. Section 18-40. Conciliation results. (a) If the conciliation team is able to effectuate a disposition agreeable to the complainant, the person charged, and the CONCILIATION TEAM, such disposition shall be reduced to a written stipulation and executed by the parties and the agreement reported to the Commission. O,PL - 11 �— (b) If the person charged and the conciliation team agree to a disposition but the complainant fails to agree, the team shall report the matter to the designated members of the Commission in executive session. If the designated members of the Commission accept the conciliation agreement presented by the conciliation team and the person charged, they shall close the case (subject to continuing supervision of the charged party as provided in the agreement) and communicate the terms of the agreement to the state civil rights commission. This shall not prevent the complainant from taking other action as provided by law. If however, they reject the conciliation agreement, they may direct that further attempts at conciliation be made or proceed as provided in this chapter. (c) If the complainant and the person charged reach a mutually agreeable disposition of the complaint, but the conciliation team does not wish to ratify such agreement, the complainant and the person charged may proceed according to the terms of their agreement with no further involvement by the conciliation team and the Commission shall thereafter close the case. Such action shall not, however, in any way, prevent the Commission, as a non-party to the agreement entered into between the complainant and the person charged, from subsequently filing a new complaint against the person charged concerning the same alleged discriminatory practice. (d) The terms of a conciliation agreement reached with the respondent may require him or her to refrain in the future from committing discriminatory or unfair practices of the type stated in the agreement, to take remedial action which, in the judgment of the Commission, will carry out the purposes of this Act, and to consent to the entry in an appropriate district court of a consent decree embodying the terms of the conciliation agreement. Violation of such a consent decree may be punished as contempt by the court in which it is filed, upon a showing by the Commission of the violation, at any time within six months of its occurrence. In all cases where a conciliation agreement is entered into, the Commission shall issue an order stating its terms and furnish a copy of the order to the complainant, the respondent, and such other persons as the Commission deems proper. At any time in its discretion, the Commission may investigate whether the terms of the agreement are being complied with by the respondent. Upon a finding that the terms of the conciliation agreement are not being complied with by the respondent, the Commission shall take appropriate action to assure compliance. (e) For the purposes of this subsection and pursuant to the provisions of this chapter "remedial action" includes but is not limited to the following: (1) Hiring, reinstatement or upgrading of employees with or without pay. Interim earned income and unemployment compensation shall operate to reduce the pay otherwise allowable. (2) Admission or restoration of individuals to a labor organization, admission to or participation in a guidance program, apprenticeship training program, on-the-job training program or other occupational training or retraining program, with the utilization of objective criteria in the admission of individuals to such programs. o? oO 12 (3) Admission of individuals to a public accommodation or an educational institution. (4) Sale, exchange, lease, rental, assignment or sublease of real property to an individual. (5) Extension to all individuals of the full and equal enjoyment of the advantages, facilities, privileges, and services of the respondent denied to the complainant because of the discriminatory or unfair practice. (6) Reporting as to the manner of compliance (7) Posting notices in conspicuous places in the respondents place of business in a form prescribed by the Commission and inclusion of notices in advertising material. (8) Payment to the complainant of damages of an injury caused by the discriminatory or unfair practice which damages shall include but are not limited to actual damages, court costs and reasonable attorney fees. (9) In addition to the remedies in thereceedin P g provisions of this subsection, the Commission may issue an order requiring the respondent to .cease and desist from the discriminatory or unfair practice and to take such affirmative action as in the judgment of the Commission will carry out the purposes of this chapter as follows: (a) In the case of a respondent operating by virtue of a license issued by the state or a political subdivision or agency, if the Commission, upon notice to the respondent with an opportunity to be heard, determines that the respondent has engaged in a j discriminatory or unfair practice and that the practice was authorized, requested, commanded, performed or knowingly or recklessly tolerated by the board of directors of the respondent or by an officer or executive agent acting within the scope of his or her employment, the Commission shall so certify to the licensing agency. Unless the practice is reversed in the course of judicial review, the finding of discrimination is binding on the licensing agency. If a certification is made pursuant to this subsection, the licensing agency may initiate licensee disciplinary procedures. (b) In the case of a respondent who is found by the Commission to have engaged in a discrminatory or unfair practice in the course of performing under a contract or subcontract with the state or political subdivision or agency, if the practice was authorized, requested, commanded, performed, or knowingly or recklessly tolerated by the board of directors of the respondent or by an officer or executive agent acting within the scope of his or her employment, the Commission shall so certify to the contracting agency. Unless the Commission's finding of a discriminatory or unfair practice is reversed in the course of judicial review, the finding of discrimination is binding on the contractng agency. 13 '1—' (c) Upon receiving a certification made under this subsection, a contracting agency may take appropriate action to terminate a contract or portion thereof previously entered into with the respondent, either absolutely or on condition that the respondent carry out a program of compliance with the provisions of this act; and assist the state and all political subdivisions and agencies thereof to refrain from entering into further contracts. a o4FL (10) The election of an affirmative order under paragraph (2) of this subsection shall not bar the election of affirmative remedies provided in paragraph (1) of this subsection. Section 18-41. Proceedings upon failure to conciliate. (a) If the conciliation team is unable to effectuate a disposition agreeable to the parties within ninety (90) days, it shall file a. report of no conciliation with the Commission and REPORT what further action as provided herein should be taken. (b) A conciliation team may recommend: (1) That no further action be taken thus closing the case. (2) That the Commission cause to be served a written notice requiring the respondent to answer the charges of such complaint at a hearing before the Commission. Sec. 18-42. Notice and hearing. •(a) In case of failure. to satisfactorily settle a complaint by conference, conciliation$ and persuasion, the Commission may issue and cause to be served a written notice together with a copy of such complaint, as the same may have have been amended, requiring the person charged to answer such complaint in writing within ten (10) days after the date of such notice or within such extended time that the Commission may allow. (b) When the conciliation team is satisfied that further endeavor to conciliate would be futile, the team shall report the same to the Commission. If the Commission determines that the circumstances warrant, it shall issue and cause to be served a written notice requiring the person charged to answer S: the charges of such complaint at a hearing before the Commission or such other person designated by the Commission to conduct the hearing, hereafter referred to as hearing examiner, and at a time and place to be specified in r such notice. it (c) The case in support of such complaint shall be presented at the hearing by the city attorney or his/her agent. The members of the Commission who y, investigated or attempted to conciliate the complaint shall not participate in the hearing except as a witness nor shall they participate in the deliberations of the Commission in such case, j (d) The person charged may file a written verified answer to the complaint, and may appear at the hearing in person, with or without counsel, and submit a o4FL testimony. In the discretion of the hearing examiner, a complainant may be allowed to intervene and present testimony in person or by counsel. (e) When the person charged has failed to answer a complaint at a hearing as provided by this section, the Commission may enter his/her default. For good cause shown, the Commission may set aside an entry of default within ten (10) days after the Commission may proceed to hear testimony adduced upon behalf of the complainant. After hearing such testimony, the Commission may enter such order as in its opinion the evidence warrants. (f) The Commission or the complainant shall have the power to reasonably and fairly amend any complaint and the person charged shall have like power to amend his/her answer. (g) The Commission shall not be bound by the strict rules of evidence prevailing in courts of law or equity but the right of cross-examination shall be preserved. Plaintiffs shall bear the burden of proving allegations in the complaint. The testimony taken at a hearing shall be under oath, recorded, and, if ordered by the Commission, transcribed. Sec. 18-43. Findings and order. (a) If upon taking into consideration of all of the evidence at a hearing, the Commission determines that the respondent has engaged in a discriminatory or unfair practice, the Commission shall state its findings of fact and conclusions of law and shall issue an order requiring the respondent to cease and desist from the discriminatory or unfair practice and to take the necessary remedial action as in the judgment of the Commission shall carry out the purposes of this chapter. A copy of the order shall be delivered to the respondent, and complainant, and to any other public officers and persons as the Commission deems proper. A description of possible remedial actions appear in Section 18-40. (b) If, upon taking into consideration of all the evidence at a hearing, the Commission finds that a respondent has not engaged in any such discriminatory or unfair practice, the Commission shall issue an order denying relief and stating the findings of fact and conclusions of the Commission, and shall cause a copy of the order dismissing the complaint to be served by certified mail on the complainant and the respondent. Sec. 18-44. Judicial review; enforcement. (a) The Commission may obtain an order of court for the enforcement of Commission orders in a proceeding as provided in this section. Such an enforcement proceeding shall be brought in the district court of the county. (b) Such an enforcement proceeding shall be initiated by the filing of a petition in such court and the service of a copy thereof upon the person charged. Thereupon the Commission shall file with the court a transcript of the record of the hearing before it. The court has the power to grant such temporary relief or restraining order as it deems just and proper, and to make and enter upon the pleadings, testimony, and proceeding set forth in such transcript an order enforcing, modifying, and enforcing as so a 04 1 15 modified, or setting aside the order of the Commission, in whole or in part. (c) An objection that has not been urged before the Commission shall not be considered by the court in an enforcement proceeding, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. (d) Any party to the enforcement proceeding may move the court to remit the case of the Commission in .the interest of justice for the purpose of adducing additional specified and material evidence and seeking findings thereof, providing such parties shall show reasonable grounds for the failure to adduce such evidence before the Commission. (e) The Commission's copy of the testimony shall be available to all parties for examination at all reasonable times, without cost, and for the purpose of judicial review of the Commission's orders. (f) The Commission may appear in court by the city attorney or his/her designee. (g) If no proceeding to obtain judicial review is instituted within thirty (30) days from the service of an order of the Commission, the Commission may obtain an order of the court for the enforcement of such order upon showing that the person charged is subject to jurisdiction of the Commission and resides or transacts business with the county. Passed and approved this day of , 1983. MAYOR ATTEST: ACTING CITY CLERK ORDINANCE NO. 77-2830 as amended by Ordinance No. 79-2951" AN ORDINANCE DEFINING AND PROHIBITING CERTAIN DISCRIMINATORY PRACTICES IN EMPLOYMENT, HOUSING, PUBLIC ACCOMMODATIONS, AND CREDIT TRANSACTIONS, ESTABLISHING A HUMAN RIGHTS COMMISSION, PROVIDING PROCEDURES FOR INVESTIGATION AND CONCILIATION OF COMPLAINTS, PROVIDING FOR PUBLIC HEARINGS IN CONTESTED CASES, AND FURTHER PROVIDING FOR JUDICIAL REVIEW OF ORDERS OF THE COMMISSION. "Chapter 18 of the Code of Ordinances of the City of Iowa City. ./ Chapter 18 HUMAN RIGHTS Art. I. In General, ss 18-1--18-15 Art. II. Commission, ss 18-16--18-30 Art. III. Discriminatory Practices, ss 18-31--18-44 ARTICLE I. IN GENERAL Sec. 18-1. Definitions. As used in this chapter, the following terms shall have the meanings indicated: AGE means discriminatory practices toward persons who have reached the age of eighteen or are considered by law to be an adult. CITY ATTORNEY shall mean the duly appointed attorney for the City or such person designated by him/her. COMMISSION shall mean the Iowa City Human Rights Commission. COMPLAINANT means a person who has filed a report of discrimination as provided for by section 18-37 of this chapter. COMPLAINT means a report of discrimination as provided for by section 18-37 of this chapter. CONCILIATION TEAM shall mean a team of two (2) members or more of the Commission appointed to conciliate cases on which probable cause has been found. COURT means the district court in and for the judicial district of this state in which the alleged unfair or discriminatory practice occurred, or any judge of such court if the court is not in session at that time. CREDIT TRANSACTION means any open or closed end credit transaction including but not limited to a loan, retail installment transaction, credit card issue or charge, and whether for personal or for busines's purposes, in which a service, finance, or interest charge is imposed, or which provides for repayment in scheduled F Payments, when such credit is extended in the regular course of any trade or commerce. DISABILITY means the physical or mental condition of a person which constitutes a substantial ha persons abindicap, but is unrelated to such transaction. lity to engage in a particular Occupation or EMPLOYEE includes every person who works for wages, salary, or commissions or any combination thereof, and, in context, the term also includes those who are seeking or applying for employment. EMPLOYER includes all persons, wherever situated, who employ one or more employees within the city, or who solicit individuals within the city to apply for employment within the city or elsewhere. The term includes the city itself, and all other political subdivisions, public corporations, governmental units conducting any activity within the city, and public agencies or corporations. EMPLOYMENT AGENCY means any person undertaking to procure employees or opportunities to work for any other person. HOUSING ACCOMMODATION includes any improved or unimproved real estate which is used, capable of being used, or intended to be used as a permanent or temporary residence or sleeping place for one or more persons whether by sale, lease, orotherwise. It specifically includes lots suitable for single or multifamily residential development. HOUSING TRANSACTION means the sale, exchange, rental or lease of real property or housing accommodation and the offer to sell, exchange, rent or lease real property. INVESTIGATOR means a person appointed by the city manager with the consultation of the Commission, to investigate complaints filed in accordance with this chapter. LABOR ORGANIZATION means any organization which exists for the Purpose in whole or in part of collective bargaining, of dealing with employers concerning grievances, terms, or conditions of employment, or of other mutual aid or protection in connection with employment. PERSON means one or more individuals, partnerships, associations, corporations, legal representatives, trustees, receivers, the city or any board, commission, department, or agency thereof, and all other governmental units conducting any activity in the city. PUBLIC ACCOMMODATION means each and every place, establishment, or facility of whatever kind, nature, or class that caters or offers services, facilities, or goods to the general public for a fee or charge. Each and every place, establishment, or facility that caters or offers services, facilities, or goods to the general aoCFG public gratuitously shall be deemed a public accommodation if the accommodation receives any substantial governmental support or subsidy. Public accommodation shall not mean any bona fide private club or other place, establishment, or facility which is by its nature distinctly private, except that, when such distinctly private place, establishment, or facility caters or offers services, facilities, or goods to the general public for fee or charge or gratuitously, it shall be deemed a public accommodation during such period. RESPONDENT means a person who is alleged to have committed an act prohibited by this chapter, against whom a complaint has been filed, as provided -by this chapter. SEXUAL ORIENTATION means the status of preferring a relationship of affection or a sexual relationship with a consenting adult of the same sex or with a consenting adult of the opposite sex. For example, protection on the basis of sexual orientation would prohibit an employer from firing a person solely for the reason that the person stated he/she was homosexual or heterosexual. It would not limit an employer from dictating rules of conduct in the expression of affection between employees. Sec. 18-2. Purpose. It is the purpose of this chapter to protect citizens of the city against discrimination as defined in this chapter. Moreover, this chapter provides for execution within the city of the policies of the Civil Rights Act of 1964 and the Federal Civil Rights Acts and the promotion of cooperation between the city and the state and federal agencies enforcing these acts. Secs. 18-3--18-15. Reserved. ARTICLE II. COMMISSION Sec. 18-16. Established; duties generally. There is hereby established the Iowa City Human Rights Commission whose duty it shall be to disseminate information and provide the mediation, conciliation and enforcement necessary to further the goals of this chapter and to protect citizens from unfounded charges of discriminatory practices. Ci a Sec. 18-17. Powers. The Commission created by this article shall have the following powers: (a) To receive, investigate, and finally determine the merits of complaints alleging unfair or discriminatory practices. (b) To investigate and study the existence, character, causes, and extent of discrimination in the areas covered by this chapter and eliminate discrimination by education, conciliation, and enforcement where necessary. (c) To issue publications and reports of the research and investigations of the Commission subject to the limitations of confidentiality. (d) To prepare and transmit to the city council from time to time, but not less often than once each year, reports describing its proceedings,. investigations, hearings conducted and the outcome thereof, decisions rendered, and the other work performed by the Commission. (e) To make recommendations to the city council for such further legislation concerning discrimination as it may deem necessary and desirable. (f) To cooperate, within the limits of any appropriations made for its operation, with other agencies or organizations, both public and private, whose purposes are not inconsistent with those of this chapter, and in the planning and conducting of programs designed to eliminate racial, religious, cultural and other intergroup tensions. (g) To adopt guidelines by which to determine whether any conduct, behavior, or action may properly be deemed a discriminatory practice. (h) To make recommendations to the city manager and city council regarding the affirmative action program of the City and to offer assistance to city departments as will insure fair employment procedures and the provision of city services without bias. Sec. 18-18. Structure. The Commission shall consist of nine (9) members, appointed by vote of the city council. Appointees shall serve for a term of three (3) years and thereafter until a successor has been appointed. Vacancies shall be filled for the remainder of the unexpired term. Appointments shall take into consideration men and women of the various racial, religious, cultural, social and economic groups in the City. aa,F6 Ci 5 Sec. 18-19. Records to be public; exceptions. (a) All records of the Commission shall be public, except: (1) Complaints of discrimination, reports of investigations, statements and other documents or records obtained in investigation of any charge shall be closed records, unless a public hearing is held. (2) The minutes of any session which is closed under the pro- visions of this chapter shall be closed records. (b) No member of the Commission or of its staff shall disclose the filing of a charge, the information gathered during the investigation, or the endeavors to eliminate such discriminatory or unfair practice by conference, conciliation, or persuasion, unless each disclosure is made in connection with the conduct of an investigation. Nothing in this provision shall prevent, however, the Commission from releasing such information concerning alleged or acknowledged discriminatory practices to the state civil rights commission, the United States Civil Rights Commission, the Federal Equal Employment Opportunity Commission, and other agencies or organizations whose primary purpose is the enforcement of civil rights legislation. This section does not prevent any complainant, witness or other person from publicizing the filing of a complaint or the matter therein complained of. Violation of these provisions by a member of the Commission or its staff shall constitute grounds for removal. Secs. 18-20--18-30. Reserved. ARTICLE III. DISCRIMINATORY PRACTICES Sec. 18-31. Employment; exceptions. (a) It shall be unlawful for any employer to refuse to hire, accept, register, classify, upgrade or refer for employment, or to otherwise discriminate in employment against any other person or to discharge any employee because of race, color, creed, religion, national origin, age, sex, sexual orientation, marital status, or disability unless such disability is related to job performance of such person or employee. (b) It shall be unlawful for any labor organization to refuse to admit to membership, apprenticeship or training an applicant, to expel any member, or to otherwise discriminate against any applicant for membership, apprenticeship or training or any s J member in the privileges, rights, or benefits of such membership, apprenticeship or training because of race, creed, color, national origin, religion, age, sex, marital status, sexual orientation, or disability of such applicant or member. (c) It shall be unlawful for any employer, employment agency, labor organization, or the employees or members thereof to directly or indirectly advertise or in any other manner indicate or publicize that individuals are unwelcome, objectionable, or not solicited for employment or membership because of race, creed, color, nationalrigin, age, religion, o sex, marital status, sexual orientation, or disability. (d) The following are exempted from the provisions of this section: (1) Any bona fide religious institution or its educational facility, association, corporation or society with respect to any qualifications for employment based on religion when such qualifications are related to a bona fide religious purpose. A religious qualification for instructional personnel or an administrative officer, serving in a supervisory capacity of a bona fide religious educational facility or religious institution, shall be presumed to be a bona fide occupational quali- fication. (2) An employer or employment agency which chooses to offer employment or advertise for employment to only the disabled or elderly. Any such employment or offer of employment shall not, however, discriminate among the disabled or elderly on the basis of race, color, creed, religion, national origin, age, sex, marital status, and sexual orientation. (3) The employment of individuals for work within the home of the employer if the employer or members of his/her family reside therein during such employment. (4) The employment of individuals to render personal service to the person of the employer or members of his/her family. (5) To employ on the basis of sex in those certain instances where sex is a bona fide occupational qualification reasonably necessary to the normal operation of a particular business or enterprise. The bona fide occupational qualification shall be interpreted narrowly. (6) Notwithstanding the provisions of this section, a state or federal program designed to benefit a specific age classification which serves a bona fide public purpose shall be permissible. Gi J 7 (7) This section shall not apply to age discrimination in a bona fide apprenticeship employment program if the employee is over forty-five years of age. Sec. 18-32. Housing; exceptions. (a) It shall be unlawful for any person to: (1) Refuse to engage in a housing transaction with any other person because of race, color, creed, religion, national origin, age, sex, or disability. (2) Discriminate against any other person because of race, color, creed, religion, national origin, age, sex, or disability in the terms, conditions or privileges of any real estate transaction.. (3) Directly or indirectly advertise, or in any other manner indicate or publicize in any real estate transaction that any person because of race, color, creed, religion, national origin, age, sex, or disability is unwelcome, objectionable, or not solicited. (4) Discriminate against the lessee or purchaser of any real property or housing accommodation or part, portion or interest of the real property or housing accommodation, or against any prospective lessee or purchaser of the property or accommodation, because of the race, color, creed, religion, sex, disability, age or national origin of persons who may from time to time be present in or on the lessee's or owner's premises for lawful purposes at the invitation of the lessee or owner as friends, guests, visitors, relatives or in any similar capacity. (b) The following are exempted' from the provisions of this section: (1) Any bona fide religious institution with respect to any qualification it may impose based on religion when such qualifications are related to a bona fide religious purpose. (2) The rental or leasing of four (4) or fewer rooms within an owner -occupied rooming house in which renters pass through the owner's living area. (3) Restrictions based on sex in the rental or leasing of housing accommodations by nonprofit corporations. (4) Restrictions based on sex in the rental or leasing of housing accommodations within which residents of both sexes would share a common bathroom facility on the same floor of the building. ,J (c) This section does not create an affirmative duty to remove barriers for the handicapped in excess of the requirements of Chapter 104A, of the Code of Iowa. (d) Housing accommodations may be designated specifically for the elderly and disabled. However, housing accommodations may not be restricted among the elderly and disabled on the basis of race, color, creed, religion, national origin,'or sex. Sec. 18-33. Public accommodation; exceptions. (a) It shall be unlawful for any person to deny any other person the full and equal enjoyment of the goods, services, facilities, privileges, advantages of any place of public accommodation because of race, color, . creed, religion, national origin, age, sex, marital status, sexual orientation, or disability. (b) It shall be unlawful to directly or indirectly advertise or in any other manner indicate or publicize that the patronage of persons is unwelcome, objectionable, or not solicited because of race, color, creed, religion, national origin, age, sex, sexual orientation, marital status or disability. (c) This section• shall not apply to any bona fide religious institution with respect to any qualifications the institution may impose based on religion when such qualifications are related to bona fide religious purpose. (d) Public accommodations may be designated specifically for the elderly and disabled. However, public accommodations may not be restricted among the elderly and disabled- on the basis of race, color, creed, religion, national origin, sex, marital status or sexual orientation. Sec. 18-34. Credit transactions; exceptions. (a) It shall be unlawful for any creditor to refuse to enter into any consumer credit transaction or to impose finance charges or other terms or conditions more onerous than those regularly extended by that creditor to consumers of similar economic backgrounds because of race, color, creed, religion, national origin, age, sex, marital status, sexual orientation, or Physical disability. (b) It shall be unlawful for any person authorized or licensed to do business in this state pursuant to Chapter 524, 533, 534, 536, or 536A of the Code of Iowa to refuse to loan or to extend credit or to impose terms or conditions more onerous than those regularly extended to persons of similar economic backgrounds because of age, color, creed, national origin, race, religion, marital status, sexual orientation, sex 0r physical disability. (c) It shall be unlawful for any creditor to refuse to offer credit life or health and accident insurance because of color, creed, national origin, race, religion, marital status, age, physical' disability, sex or sexual orientation. Refusal by a creditor to offer credit life or health and accident insurance based upon the age or physical disability of the consumer shall not be an unfair or discriminatory practice if such denial is based solely upon bona fide underwriting consideration not prohibited by Title U. The provisions of this section shall not be construed by negative implication or otherwise to narrow or restrict any other provisions of this ordinance. Sec. 18-35. Aiding or abetting. It shall be a violation of this chapter for any person to intentionally aid, abet, compel, or coerce another person to engage in any of the practices declared to constitute discriminatory practices by this article. Sec. 18-36. Retaliations or reprisals. It shall be a violation of this chapter for any person to discriminate against another person because such person has either. lawfully opposed any discriminatory practice forbidden by this article, obeyed the provisions of this chapter, or has filed a complaint, testified, or assisted in any proceeding under this chapter. Sec. 18-37. Report. (a) The following procedures are the only authorized methods for reporting a discriminatory practice to the Commission: (1) Any person claiming to be aggrieved by a discriminatory practice within the city limits may by himself/herself or by his/her attorney, make, sign, and file with the Commission a verified written complaint which shall state the name and address of the person, employer, employment agency, or labor organization alleged to have committed the discriminatory or unfair practice of which complained, shall set forth the circumstances under which thediscriminatory practice took place, the date, and shail contain such other information as may be required by the Commission. (2) The Commission, a commissioner, a city attorney, the state civil rights commission, or any other person aware of the existence of a discriminatory practice may in like manner make, sign, and file such complaint. 10 (b) Any complaint filed under this ordinance shall be so filed within one hundred eighty (180) days after the most recent act constituting the alleged discriminatory practice. (c) A verified copy of a complaint filed with the state civil rights commission under the provisions of Chapter 601A, Code of Iowa, or EEOC shall be sufficient complaint for the purpose of this chapter, if it alleges either in the text thereof or in accompanying statements that the alleged discriminatory practice occurred within this city. Sec. 18-38. Investigation of complaints. (a) After the filing of a complaint, a true copy thereof shall be served within 20 days by registered mail to the person against whom the complaint is. filed. Then a commissioner, the investigator, or another duly authorized member of the commission's staff, shall make a prompt investigation of the complaint. (b) Upon application, the commission may issue subpoenas requiring a party to appear or to produce books, documents, and records which may be relevant to the alleged discriminating practice. The Commission may issue subpoenas if it finds the following to be true: (1) The subpoena is necessary to carry out a public hearing of the Commission; or (2) The respondent fails to provide information relevant to the investigation and the investigator is unable to proceed without specific materials. (c) The investigator shall determine whether probable cause exists to believe that the person charged in the complaint has committed a discriminatory practice and shall file a detailed report with the city attorney. After completion of this determination, the city attorney shall send to the commission, a written statement of reasons as to whether or not probable cause exists to believe that a discriminatory practice occurred as alleged by the complainant. (d) At any time after the initial filing of a complaint of unfair or discriminatory practice, but before the investigator's recommendation to the city attorney, the investigator may seek a disposition of the complaint through the use of predetermination settlement if such settlement is in the interest of the complainant. Predetermination settlement(s) shall be subject to review by the city attorney and shall be approved by the whole Commission in executive session. '?D6/0 11 Sec. 18-39. Results of investigation; action to be taken. (a) Finding of no probable cause. After an investigation under this article: (1) If the investigator finds no probable cause to believe that the person charged has committed an unfair or discriminatory practice, and the city attorney concurs with that finding, he/she shall report the same to the Commission. If designated members of the Commission agree that no probable cause does exist, it shall notify the parties in writing by certified mail, return receipt requested, of the findings and of the complainant's right to appeal therefrom. If they disagree as to no probable cause, they shall make the final determination on probable cause and proceed as provided in this chapter. (2) If the complainant fails to object to the finding of no probable cause within ten (10) days of receipt of such written notice, the Commission shall close the case. The secretary of the Commission shall report this finding to the civil rights commission. (3) If the complainant objects in writing to the finding of no probable cause within ten (10) days of receipt of such written notice, the designated members of the Commission shall hear his/her evidence in executive session. If they again find no probable cause to believe that the person charged has committed a discriminatory practice, they shall declare the case closed. After appeal, if they find probable cause to exist, they shall proceed as provided in this chapter.. (4) If the investigator and city attorney disagree as to probable cause, the designated members of the Commission shall make the final determination on probable cause and proceed as.provided in this chapter. (b) Finding of probable cause. After an investigation under this article: (1) If the investigator finds probable cause to believe that the person charged has committed an unfair or discriminatory practice, and the city attorney concurs in that finding, then those members of the Commission designated as conciliators should make an independent evaluation as to the determination as to whether probable cause exists before proceeding with the conciliation. (2) Uon the finding rbable cause to believe that the person charged has ocommitted a discriminatory practice, a conciliation team shall promptly endeavor to eliminate such discriminatory or unfair practice by conference, conciliation, and persuasion in accordance with remedies provided in section 18-43. 12 Sec. 18-40. Conciliation results. (a) If the conciliation team is able to effectuate a disposition agreeable to the complainant, the person charged, and the com- mission, such disposition shall be reduced to a written stipulation and executed by the parties and the agreement reported to the Commission. (b) If the person charged and the conciliation team agree to a disposition but the complainant fails to agree, the team shall report the matter to the designated members of the Commission in executive session. If the designated members of the Commission accept the conciliation agreement presented by the conciliation team and the person charged, they shall close the case (subject to continuing supervision of the charged party as provided in the agreement) and communicate the terms of the agreement to the state civil rights commission. This shall not prevent the complainant from taking other action as provided by law. If however, they reject the conciliation agreement, they may direct that further attempts at conciliation be made or proceed as provided in this chapter. (c) If the complainant andthe person charged reach a mutually agreeable disposition of the complaint, but the conciliation team does not wish to ratify such agreement, the complainant and the person charged may proceed according to the terms of their agreement with no further involvement by the conciliation team and the Commission shall thereafter close the case. Such action shall not, however, in any way, prevent the Commission, as a nonparty to the agreement entered into between the complainant and the person charged, from subsequently filing a new complaint against the person charged concerning the same alleged discriminatory practice. (d) The terms of a conciliation agreement reached with the respondent may require him or- her- to refrain in the future from committing discriminatory or unfair practices of the type stated in the agreement, to take remedial action which, in the judgment of the Commission, will carry out the purposes of this Act, and to consent to the entry in an appropriate district court of a consent decree embodying the terms of the conciliation agreement. Violation of such a consent decree may be punished as contempt by the court in which it is filed, upon a showing by the Commission of the violation, at any time within six months of its occurrence. In all cases where a conciliation agreement is entered into, the Commission shall issue an order stating its terms and furnish a copy of the order to the complainant, the respondent, and such other per- sons as the Commission deems proper. At any time in its discretion, the Commission may investigate whether the terms of the agreement are being complied with by the respondent. Upon a finding that the terms of the conciliation agreement are not being complied with by the respondent, the Commission shall take appropriate action to assure compliance. 13 Sec. 18-41. Proceedings upon failure to conciliate. (a) If the conciliation team is unable to effectuate a disposition agreeable to the parties within ninety (90) days, it shall file a report of no conciliation with the designated members of the Commission and recommend what further action as provided herein should be taken. Similarly, if the designated members of the Commission reject the conciliation agreement, they shall determine what action as provided herein shall be taken. (b) A conciliation team may recommend: (1) That no further action be taken thus closing the case. (2) That the Commission cause to be served a written notice requiring the respondent to answer the charges of such complaint at a hearing before the Commission. Sec. 18-42. Notice and hearing. (a) In case of failure to satisfactorily settle a complaint by conference, conciliation, and persuasion, the Commission may issue and cause to be served a written notice together with a copy of such complaint, as the same may have been amended, requiring the person charged to answer such complaint in writing within ten (10) days after the date of such notice or within such extended time that the Commission may allow. (b) When the conciliation team is satisfied that further endeavor to conciliate would be futile, the team shall report the same to the Commission. If the Commission determines that the circumstances warrant, it shall issue and cause to be served a written notice requiring the person charged to answer the charges of such complaint at a hearing before the Commission or such other person designated by the Commission to cohduct the hearing, hereafter referred to as hearing examiner, and at a time and place to be specified in such notice. (c) The case in support of such complaint shall be presented at the hearing by the city attorney or his/her agent. The members of the Commission who investigated or attempted to conciliate the complaint shall not participate in the hearing except as a witness nor shall they participate in the deliberations of the Commission in such case. (d) The person charged may file a written verified answer to the complaint, and may appear at the hearing in person, with or without counsel, and submit testimony. In the discretion of the hearing examiner, a complainant may be allowed to intervene and present testimony in person or by counsel. (e) When the person charged has failed to answer a complaint at a hearing as provided by this section, the Commission may enter 14 his/her default. For good cause shown, the Commission may set aside an entry of default within ten (10) days after the date of such entry. If the person charged is in default, the Commission may proceed to hear testimony adduced upon behalf of the complainant. After hearing such testimony, the Commission may enter such order as in its opinion the evidence warrants. (f) The Commission or the complainant shall have the power to reasonably and fairly amend any complaint and the person charged shall have like power to amend his/her answer. (g) The Commission shall not be bound by the strict rules of evidence prevailing in courts of law or equity but the right of cross-examination shall be preserved. Plaintiffs shall bear the burden of proving the allegations in the complaint. The testimony taken at a hearing shall be under oath, recorded, and, if ordered by the Commission, transcribed. Sec. 18-43. Findings and order. (a) If upon taking into consideration of all of the evidence at a hearing, the Commission determines that 'the respondent has :hion allstate its findings of fact unfairscriminatory or ndpracticeconclusi nsa ofmlawsand shall issue an order requiring the respondent to cease and desist from the discriminatory or unfair practice and to take the necessary remedial action as in the judgment of the Commission shall carry out the purposes of this chapter. A copy of the order shall be delivered to the respondent, and complainant, and to any other public officers and persons as the Commission deems proper. (1) For the purposes of this subsection and pursuant to the provisions of this chapter "remedial action" includes but is not limited to the following: i. Hiring, reinstatement or upgrading of employees with or wi thout Pay. unemployment compInterim earned ensationshalloperate income reduce the pay otherwise allowable. {{. Admission or restoration of individuals to a labor I organization, admission to or participation in a guidance program, apprenticeship training program, on -the -fob training program or other occupational training or retraining program, with the utilization of objective criteria in the admission of individuals to such programs. iii. Admission i o individuals uinstitution ividuala public accommodation or an ,QO,F` 15 iv. Sale, exchange, lease, rental, assignment or sublease of real property to an individual. V. Extension to all individuals of the full and equal enjoyment of the advantages, facilities, privileges, and services of the respondent denied to the complainant because of the discriminatory or unfair practice. vi. Reporting as to the manner of compliance. vii. Posting notices in conspicuous places in the respondent's place of business in form prescribed by the Commission and inclusion of notices in advertising material. viii. Payment to the complainant of damages of an injury caused by the discriminatory or unfair practice which damages shall include but are not limited to actual damages, court costs and reasonable attorney fees. (2) In addition to the remedies in the preceeding provisions Of this subsection, the Commission may issue an order requiring the respondent to cease and desist from the discriminatory or unfair practice and to take such affirmative action as in the judgment of the COMMission will carry out the purposes of this chapter as follows: i. In the case of a respondent operating by virtue of a license issued by the state or a political subdivision or agency, if .the Commission, upon notice to the respondent with an opportunity to be heard, determines that the respondent has engaged in' a discriminatory or unfair practice and that the practice was authorized, requested, commanded, performed or knowingly or recklessly tolerated by the board of directors of the respondent or by an officer or executive agent acting within the scope of his or her employment, the Commission shall so certify to the licensing agency. Unless the Commission finding of a discriminatory or unfair practice is reversed in the course of judicial review, the finding of discrimination is binding on the licensing agency. If a certification is made Pursuant to this subsection, the licensing agency may initiate licensee disciplinary procedures. In the case of a respondent who is found by the Commission to have engaged in a discriminatory or unfair practice in the course of performing under a contract or subcontract with the state or political subdivision or agency, if the practice was authorized, requested, commanded, performed, or 16 knowingly or recklessly tolerated by the board of directors of the respondent or by an officer or executive agent acting within the scope of his or her employment, the Commission shall so certify to the contracting agency. Unless the Commission's di finng of a discriminatory or unfair practice is reversed in the course of judicial review, the finding of discrimination is binding on the contracting agency. iii. Upon receiving a certification made under this subsection, a contracting agency may take appropriate action to terminate a contract or portion thereof previously entered into with the respondent, either absolutely or on condition that the respondent carry out a program of compliance with the provisions of this Act; and assist the state and all political subdivisions and agencies thereof to refrain from entering into further contracts. (3) The election of an affirmative order under paragraph (2) of this subsection shall not bar the election of affirmative remedies provided in paragraph (1) of this subsection. ! (b) If, upon taking into consideration all of the evidence at a hearing, the Commission finds that a respondent has not engaged in any such discriminatory or unfair practice, the Commission shall issue an order denying relief and stating the I findings of fact and conclusions of the Commission, and shall cause a copy of the order dismissing the complaint to be served ' by certified mail on the complainant and the respondent. I Sec. 18-44. Judicial review; enforcement. i (a) The Commission may obtain an order of court for the enforcement of Commission orders in a proceeding as provided in this section. Such an enforcement proceeding shall be brought in the district court of the county. (b) Such an enforcement proceeding shall be initiated by the filing of a petition in such court and the service of a copy thereof upon the person charged. Thereupon the Commission shall file with the court a transcript of the record of the hearing before it. The court has the power to grant such temporary relief or restraining order as it deems just and proper, and to make and enter upon the pleadings, testimony, and proceeding set forth in such transcript an order enforcing, modifying, and enforcing as so modified, or setting aside the order of the Commission, in whole or in part. GOM11 17 (c) An objection that has not been urged before the Commission shall not be considered by the court in an enforcement proceeding, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. (d) Any party to the enforcement proceeding may move the court to remit the case of the Commission in the interest of justice for the purpose of adducing additional specified and material evidence and seeking findings thereof, providing such parties shall show reasonable grounds for the failure to adduce such evidence before the Commission. (e) The Commission's copy of the testimony shall be available to all parties for examination at all reasonable times, without cost, and for the purpose of judicial review of the Commission's orders. (f) The Commission may appear in court by the city attorney or his/her designee. (g) If no proceeding to obtain judicial review is instituted within thirty (30) days from the service of an order of the Commission, the Commission may obtain an order of the court for the enforcement of such order upon showing that the person charged is subject to the jurisdiction of the Commission and resides or transacts business with the county. 18 Passed and approved this loth day of April, 1979. YR ATTEST: CL It was moved by deProsse and seconded byErAahl that the Ordinance be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Balmer x deProsse x Erdahl x Neuhauser x Ferret x Roberts x Vevera First consideration 3/27/79 Vote for passage: Ayes: Erdahl, Ferret, Vevera, Balmer, deProsse. Nays: nqqn Absent: Neuhauser, Roberts. Second consideration 4/3f79 Vote for passage: Ayes: deProsse, Erdahl, Neuhauser, Perret, Roberts, Vevera, Balmer. Date of publication April 18, 1979 Ai.'Z= a Armlavv f� t=AL DY:':.,z'1WT as.Fd I