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HomeMy WebLinkAbout1982-06-08 Info Packet,'°) City of Iowa City MEMORANDUM DATE: May 28, 1982 TO: City Council FROM: City Manager RE: Informal Agendas and Meeting Schedule May 31, 1982 Monda HOLIDAY - NO INFORMAL COUNCIL MEETING June 7, 1982 Monda 4:30 - 6:45 P.M. Conference Room 4:30 P.M. - Discuss Zoning Matters 4:45 P.M. - Discuss,Urban Fringe Issues. 5:00 P.M. - 5:15 P.M. - Bicycle Traffic, 10 Block of East Washington Street City-AFSCME Job 5:30 P.M. - Evaluation Study Dubuque Street Improvements 5:45 P.M. - 6:10 P.bl. - Council agenda, Council time, Council Committee 'Consider reports appointments to the Riverfront Commission and 6:15 P.M. - the Planning and Zoning Commission Discuss Iowa -Illinois Francise 6:30 P.M. - Executive Session June 8, 1982 Tuesda 7:30 P.M. - Regular Council Meeting June 14, 1982 Monda 7:00 - 9:00 P.i•1. Informal Council Meeting for Planning and Zoning Matters 7:00 P.11. - Discuss Four Area Studies PENDING LIST Discuss Cable TV Commission Recommendations Transit Fare Policy Evaluation of City Attorney Evaluation of City Clerk Compensation of City Manager, City Clerk, and City Attorney Meeting with Riverfront Commission Noise Ordinance Amendments Melrose Court Improvements Appointment to Board of Adjustment - July 20, 1982 !i MICROFILMED BY L� !I DORM MICR+LAB CEDAR RAPIDS • DES MOIYES h yc— 9P1 4. r City of Iowa Citj '' MEMORANDUM Date: May 27, 1982 To: City Council From: Cit Manager Re: Evaluations and Additional Information 1. - Comments for City Council Enclosed are comments which you requested from staff concerning City Council activities. A time will be scheduled for discussion at an informal session in the near future. 2. Follow-up to Evaluation of City Manager a. Flow of information in a timely manner, specifically water line to County Home. City ordinance provides that the size of water main extensions "...required to serve any part of the City shall be determined by the Director of Public Works." (Sec. 33-120) The Manager referred this issue to the City Council because it was recognized that the request represented a major policy issue for the City Council. In the future, I will schedule for informal discussion, before scheduling on the formal agenda, issues which the City Council has not previously discussed when there appears to be major policy questions. b. Budget Procedures, standardization of process The City Council, City Manager and Finance Director reviewed the FY82 budget process. The specific suggestions from that meeting will be developed for discussion with the City Council late in June or early in July. At that time the City Council will consider and approve any changes. c.. Review of Council Goals A chart of Council goals will be prepared for the Conference Room. A meeting will be scheduled for the City Council with department heads prior to the City Council goal setting so that we can review the status of City Council and department goals. d. Participation of Staff at Informal Council Sessions A memorandum will be sent to the department heads asking that either the department head or the responsible staff person be present at the appropriate time during informal sessions. The City Council and the City Manager will cooperate to keep those staff topics on a reasonable schedule. [lL j � MICROFILMED BY � ` I 'JORMMIC RfCA 1 CEDAR RAPIDS • DES'MO I 2 e. Staffing of City Manager's Office While the three of us do turn out quite a quantity of work, at this time we do not advocate additional personnel. However, we are not anxious to assume an increasing level of or new responsibilities. We have learned to cope and remain sane. In addition, some projects which we would like to carry out are permanently shelved. For example, on occasions we have talked about and worked on the creation of periodic printed reports to Iowa City citizens, an employee newsletter, and a staff operations manual. We will let you know before we suffocate under the workload. f. Provide City Council with information concerning issues about which City Council may be questioned, i.e., large number of residential break-ins. This issue has been discussed with the staff and a memorandum will follow. g. Be more aggressive in supporting issues Council is in favor of and staff may oppose and/or do not continue to support issues which Council opposes. Two issues were mentioned, i.e., small buses and the second floor of the Senior Center. While I certainly understand your position in this regard, the City Council should assess the significance of timely, decisive decisions in such areas and offer comments when action taken is not consistent with your intent. Also, the City Council should give careful consideration to what message it wishes to convey to staff concerning controversial issues.- The Council should determine how it will create an environment in which there are incentives to the staff for suggesting change or implementing cost cutting measures. Enclosed are three pieces of information which were sent to you earlier this year concerning small buses. It will be at least another 60 days before UMTA reviews the small bus application. If the Council wishes that other action be taken, please let me know. h. Evaluation Process A draft of the evaluation process is enclosed for your consideration. 3. Other Information Enclosed is the City Manager salary survey and the 1975 employment agreement. The salary resolution for the attorney, clerk and manager 141CROFILMED BY "JORM--MICROL CEDAR RAP IDS • DES 1401NES \N_ J� 5 � � 1, r f I �� i � � f/ /'1 E E. What three things should the City Council continue to do which benefit the City: a. To insist upon orderly planning and development of the community, but place an increasing emphasis and attention upon the development of a broader economic base. b. Explore all funding possibilities, up to and including a "no expansion of any service levels, so that financing can be found for the new Wastewater Treatment Facility and construction of the facility completed in a prompt and timely manner. C. To review the budget process and budgetary administration. The process should be reviewed regularly to ensure that a true budget is presented to the public rather than a relatively meaningless narrative and numerical summary. d. To put an emphasis on downtown redevelopment and upkeep. An active, vital downtown is the heart of a living city. e. To ensure the continuance and strengthening of the powers of the Design Review Committee. Form may be secondary to function, but individuals should not be allowed to "trash up" our city. f. Providing leadership for the whole city. g. Cablecasting meetings, public sees them in action. h. Hiring quality staff. i. Being good listeners, and reponsive to citizen needs and requests. j. To seek out other governmental monies to supplement the City budget. k. Goal Setting - by annually reaching consensus on major goals for the City, it has provided guidance for the public, staff and the Council in its work throughout the year. 1. Cable TV Broadcast of Council Meetings - has increased the general public's interest in the City government. M. Work for consensus. n. Honor past Council commitments. o. Don't change direction after decisions are made. p. Continue to allocate salary funds which enable Iowa City to recruit and retain top notch professional and administrative staff. A very high level of performance is demanded of staff by the City Council, City Manager and Iowa City community, and generally you get what you pay for. I� 141-7 ROFILMED BY �. '-DORM MICR#CAB ..i CEDAR RAI'I DS • DES MOIYES f I � -._ 9g� ii u \N - _irie 6 q. Continue to increase comment on the positive aspects of the performance of City staff and the City Manager - positive feedback can go as far, or farther than dollars in motivating superior performance. Continue to exercise tolerance when human errors are made by staff, and investigate the reasons for errors thoroughly but humanely and with as little public embarrassment as possible. r. Continue to let the City Manager and staff administer all personnel activities without undue interference by the City Council. Personnel matters do not easily lend themselves to discussion in a public forum, and it is often difficult to convey the history of personnel actions in. public. It is commendable that pressure from the Ctiy Council does not ever enter into the hiring process, as political pressure does still continue to be a problem in many public agencies and severely impacts on hiring of the most qualified applicant. . S. The City Council should continue to hold informal Council meetings each week and formal Council meetings biweekly. t. Council members should continue to meet with area legislators to insure continuation of federal and state funds for necessary city projects and programs. U. The Council should continue to provide funding to maintain the high quality of service provided by the City's public facilities. F. What three things should the City Council discontinue doing which do not benefit the City: a. Assuming that vocal special interest groups or individuals represent the general governmental interests of the residents of the community. b. Granting individualized exemptions from zoning and building requirements. Neither justice or equity is served by this practice. C. Tight control of uptown development and concentrate on the general aspects of uptown development, rather than putting their oar into types of structure designs; trees to be planted; or bricks to be used in construction. Quite obviously they are not qualified personally or professionally to make any but very general judgements in regard to development. d. Treating staff and commissions as the enemy. We may see the issues from a more narrow perspective than the Council, but no one cares more about the city than we. e. Meeting every other week and go back to weekly meetings. Issues that are placed late on the agenda do not receive the same quality of attention and your energy level is down. 1 f MICROFILMED BY .. DORM-MICR+LA0 CEDAR RAPIDS • DES MOINES fm J_I -Y J_I S 7 Adding additional duties without increasing staff. Paying so much attention to single-minded pressure groups, and paying more attention to needs of the silent citizen who isn't represented by a pressure group. Need to be more aggressive in decision making; too much delay so that additional data can be gathered. At times are too courteous to each other in agreeing to delay decisions when majority obviously is ready to decide. Unwillingness to devote enough time for Council meetings when needed. Late Monday afternoon meetings seem inconvenient for many and Council members get tired early. Review meetings schedule. If Monday afternoon is bad time to meet then consider changing informal meeting to another after- noon or evening along with changing the formal meeting to another night. Request that informal meeting be held in the Chambers so that more seating is available. The Chambers could be rearranged with a conference table for an informal setup. Take note of staff time necessary to provide information and screen out when necessary when a majority of Council does not wish or need specific information. City Council should discontinue requesting frivolous information from staff as a delay tactic on politically sensitive issues. Raise major criticisms of staff to City. Manager rather than in public meetings. Avoid making decisions based upon "gut reactions" when informa- tion for a more rational decision is available. G. If you were a City Council member, what are the first three things you would do that the Council is not doing now: a. An active effort to institute a Municipal Development Corporation, comprised of University and area business representatives (no governmental officials) to formulate proposals for economic development of Iowa City; to actively solicit desirable business and manufacturing enterprises to move to Iowa City; and to develop strategies and techniques that might persuade new or expanding businesses to locate, expand or relocate within the community. b. One day per week to "getting on the streets" to visit the restaurants; stores; and homes frequented or occupied by citizens that are not representative of the socio/economic strata, special interest or constituency groups that you normally associate with or are popularly associated with. l 141CROFIL14ED BY i l--'JORM. -MICR+LAB - J Illj CEDAR RAPIDS • DES MOI I I` 9N i■ r, J� I 8 C. Employment of a producer; competent technicians; writers and actors to stage the City Council show. d. Visiting department heads and observing departments in action (where appropriate) at the minimum of once a year. I'd want to see what was going on myself and not depend on others to tell me how facilities were being used. — e. Attending each commission or board meeting at least one time a year to get a feel for how the members functioned and to open the lines of communication. f. Having staff present on-site explanations where maps just do not do the whole job. g. Summarizing direction to staff and boards and commissions. h. Listen to the boards and commissions that they have appointed as advisors to the City Council. i. Contact City staff on occasion to obtain answers to questions or accurate information before raising issues at Council meetings which result in Council packet memos. j. A tighter rein on expensive capital improvement projects of questionable value, such as Scott Boulevard. Completed projects such as the Plaza and the Senior Center are good, useful projects, but too big, fancy, and expensive for a city of our size. They should have been done on a smaller scale. k. Elimination of unneeded paper shuffler and pencil pusher positions in the City. Concentrate personnel expenditures on people who provide services to the citizens. 1. Lowering of•property taxes. This can be done, especially if you concentrate on items j and k. M. Try to get fellow Councilors to consider longer range planning and goals. n. Continue to regain confidence in staff's ability to conduct collective bargaining. While a labor consultant is a valuable tool for the Council and staff to use, and should continue to be used, the consultant can only be as good as the staff, who under the direction of the Council, guide and support the consultant's actions. 1' MICROFILMED BY 1 l DORM MICR4LA131 CEDAR RAPIDS • DES MOIRES I qga \a, J r :&-City of Iowa City MEMORANDUM Date: March 8, 1982 To: City Manager and City Council From: Hugh Mose, Transit Manager q Re: Small Buses from Cedar Rapids I have contacted Mr. Ray Bagley, Transit Manager for Cedar Rapids, regarding the small buses they reportedly may be offering for sale. According to Mr. Bagley, the City of Cedar Rapids currently has four small buses which are used in their paratransit operation for the elderly and handicapped. The Linn County Facilitating Transit System (LIFTS), equivalent to our Johnson County SEATS, is in the process of taking over the city paratransit service, and when this transition is complete the four small buses presently used will be replaced. Two of the buses are Mercedes, Model 3090, diesel coaches with lifts. The seating capacity of these vehicles is 17. Cedar Rapids' experience with the Mercedes buses has not been entirely satisfactory - parts are expensive and hard to get, the buses are very noisy, the ride quality is fair, and the seating capacity is low. However, fuel mileage is very good - about 11 mpg. The buses have about 140,000 miles on them and are reportedly in good condition. The other two buses are Twin Coach 31 -passenger coaches, without lifts. These vehicles have Detroit Diesel engines, Allison transmissions, air - ride suspension, and air conditioning. Cedar Rapids reports favorable experience with the Twin Coaches; fuel mileage is 8-9 mpg, and the buses are in good condition mechanically, structurally, and aesthetically. The buses have approximately 150,000 miles on them. (These buses are the same type that we looked at last fall in Rock Island.) . Mr. Bagley indicated that he thought the red tape required for the procurement of the replacement buses would take approximately six months, and that he would be selling his present coaches at that time. Although he was skeptical about the use of small buses in line -haul service, he thought the Twin Coaches would be more satisfactory than the Mercedes. He also indicated that a short-term lease might be possible to give us a chance to experiment with small buses. He refused, however, to speculate on what Cedar Rapids might charge us for the coaches. bj1/4 P' �f MICRUILMED BY + -DORM MIC R<JCAB CEDAR RAPIDS • DES MOIYES j � f I J- WO 9 i i,r r� Johnson County Council of Governments 410EVUl1iingtmSL bAuCity,bwfl4240 rr10 Date: February 25, 1982 To: Iowa City Council, City Manager From: John Lundell, Transportation Planner Re: Council Referral - Local Match Required for Small Bus Demonstration Program If the City of Iowa City is selected by. the Urban Mass Transportation Administration to participate in the New Bus Equipment Introduction Program, the City will be required to provide at least 20% of the total project cost. The City's proposal will approximately cost a total of $220,000. This includes: 5 diesel powered small buses @ $40,000 each - $200,000 Farebox and radio @ $4,000 per bus - 20,000 TOTAL $220,000 Therefore our local match would be approximately $44,000. The City has sufficient funds in the Mass Transit Equipment Reserve Fund to provide this local match as well as the match for the Neoplan coaches arriving this summer. The FY82 ending balance of the Transit Reserve. Fund is projected to be $378,575. , Feel free to contact me with any additional questions you may have. cc: Don Schmeiser Hugh Mose bc5/3 11 irca Am MICROFILMED 1Y L `JORM--MICFt#LAI31 CEDAR RAPIDS • DES MOINES �a_ i I l i I I I 11 irca Am MICROFILMED 1Y L `JORM--MICFt#LAI31 CEDAR RAPIDS • DES MOINES �a_ r*/ i Johnson Cdunty Council of Governm6hts 410 E%t2sh ngtcnSC bAAa City, bAa 52240 rr %0 Date: January 13, 1982 To: Iowa City Council and City Manager From: John Lundell, Transportation Planner Re: Small Bus Demonstration Program The Urban Mass Transportation Administration (UMTA) recently announced a new program called the New Bus Equipment Introduction Program which is meant to test various bus design features in order to assess the extent they improve fuel efficiency, reliability, and reduced maintenance costs. The program announcement specifically states that consideration will be given to applications involving small buses. The program will provide up to 80% of the capital cost of the equipment and will also support test plan preparation, data collection and analysis, evaluation, documentation, and dissemination of information resulting from the program. UMTA anticipates funding no less than five and no more than 20 vehicles for any single applicant. Unless directed otherwise, Hugh Mose, Transit Manager, and I will begin preparing the "Letter of Interest" which must be submitted no later than February 5. We will attempt to develop an innovative project making use of diesel powered small buses in fixed route service. Should you have any questions, please feel free to contact me at 356- 5252. Thank you. cc:- Don Schmeiser Hugh Mose bc2/2 ! MICROFILMED BY ... _.._� CEDAR RAPIDS DES MOINES Ij \N, _y Draft of City Manager Evaluation Process The City Council will conduct a yearly performance evaluation of the City Manager. The evaluation will be conducted in April or May of each year with a follow-up review to be conducted six months after the evaluation. At least 30 days prior to the scheduled date of the evaluation, the City Manager will schedule a time during an informal meeting in which the Council and the Manager will agree on: 1. Information to be provided to the Council before the evaluation. 2. The process of the evaluation. 3. Whether the evaluation will be in open or closed session. 4. The nature of information, if any, which will be released if the evaluation is held in executive session. 5. The work product or implementation of the agreement reached in the evaluation. Approximately six months after completion of the evaluation, the City Council will conduct a follow-up review with the City Manager. The purpose of the review is to assure that both parties are working together in accordance with the results of the evaluation. Compensation will not be a part of the evaluation. Compensation for the City Manager will be determined by the City Council yearly on or before June 15. I � MICROFILMED BY � "DORM -"MIC Rf�G"A El - CEDAR RAPIDS DES M018ES 9 Sa IklL�.1 • 0 special feature supplement #2 to newsletter ICMA February 22, 1982 Vol. 63, No.4 This Special Feature reports the preliminary returns from the most current survey by ICMA's Municipal Data Service on the salaries of managers of ICMA-recognized cities, chief administrative officers of counties, and directors of councils of governments in the United States. At the time of publication 1,539 cities (62% of those surveyed), 321 counties (63x), and 341 COGS (51%) had reported salaries for their manager, administrator, or executive director. The responses are displayed in the following tables by population group and geographic region. Trends The average salary increases for city managers, county administrators, and COG directors are less than they were last year. The mean salary of all city managers reporting (Table 1) rose 9.2% in 1981 compared with an increase of 10.2% in 1980 and 8.1% in 1979• County administrators' salaries increased 3.1% in 1981 which is considerably less than the 9.6% increase in 1980 and the 11.3% increase in 1979 (Table 2). COG directors are earning on average 7.07 more this year compared with a 7.6% increase in 1980 and a 6.4% increase in 1979 (Table 3). The trend toward smaller increases in salaries for city managers was found in each region (Table 4). Managers in the Northeast, with a.mean salary of $29.845. are earning 10.4% more this year, the largest percentage increase of any region, compared with last year when their salaries rose 10.9%• In the Nortn Central region salaries increased 6.1% compared with 8.6% last year, bringing the mean salary to $35.967. Managers in the South earn a mean salary of $33,813 and received an average increase of 9.3% compared with a 9.4% increase last year. The mean salary for managers in the West, $44,673, remains the highest of all regions and represents an 8.6% increase compared with the 11.3% increase last year. While the salary increases for all positions examined in this Special Report are less than in 1980, some perspective is added by noting that the Consumer Price Index for All Urban Consumers (CPI -U) which measures the price change of a constant market basket of goods and services over time also increased less in 1981 (8.9%) than last year (12.4%). Additionally, the salary increases for the three positions when averaged over the past three years (9.2% for city managers, 8% for county administrators, and 7% for COG directors) appear less erratic than when viewed for each year individually. Apart from these considerations, the lower salary increases this year reflect the nationwide trend toward budget cutbacks at all levels of government. s Interna Uonal G1A�t 11.0 Ccrrecnn- 0 NaSn "5>n DC 20036 BY 1 1 -DORM MIC R¢CAB MICROFILMED ' l CEDAR RAPIDS • DES M014ES L... ... ...1 9001 iin J _40 TABLE I CITY MANAGERS' SALARIES AS OF JANUARY 1, 1982* No. of Population Cities 1st 3rd Group Reporting Mean Quartile Median Quartile TOTAL, all cities 1,539 $36,449 $27,548 $35,028 $43,500 500,000 to 1,000,000 2 77,761 ... ... ... 250,000 to 499,999 10 65,455 57,499 67,819 70,738 100,000 1 22 �O 249,999 45 58,957 52,655 59,340 64 612 5600 t5 9, - 1 .999 115 52,530 45,500 630 57,76 4 Z5,000 to 49,999 225 45,259 40,000 5,000 50,102 10,000 to 24,999 434 37,641 33,000 37,496 41,967 5,000 to 9,999 354 30,891 26,400 30,000 35,000 2,500 to 4,999 244 26,890 22,500 26,000 30,238 Under 2,500** 110 23,409 16,250 21,186 26,700 The salaries shown in this table are only for municipalities recognized by ICMA as providing for the council-manager form of government. The ICMA master file includes only those municipalities under 2,500 population that are recognized by ICMA. TABLE 2 COUNTY.CAO/MANAGERSI SALARIES AS OF JANUARY 1, 1982* No. of Population Counties 1st 3rd Group Reporting Mean Quartile Median Quartile TOTAL, all counties 321 $34,167 $25,571 $31,000 $40,225 Over 1,000,000 5 62,926 42,501 73,859 74,715 500,000 to 1,000,000 17 55,358 46,315 55,063 60,053 250,000 to 499,999 24 45,126 37,000 45,755 50,556 100,000 to 249,999 51 40,276 33,542 38,67 1 48,053 50,000 to 99,999 77 33,479 29,245 32,305 37:985 25,000 to 49,999 62 28,469 24,802 28,179 31,900 10,000 to 24,999 67 25,768 21,000 25,000 27,525 : 5,000 to 9,999 16 25,674 19,384 24,650 28600 2,500 to 4,999 1 18,500 ... 18,500 ... Under 2,500 1 76,236 ... 76,236 ... Salaries shown here are for all survey respondents indicating a Position of county chief administrative officer. 75ai-o-P MICROFILMED BY L--JORM ' MICR+LAB CEDAR RAPIDS • DES MOIYES TABLE 4 CITY MANAGERS' SALARIES AS OF JANUARY 1, 1982` BY GEOGRAPHIC REGION** ' Region No. of Population Cities Ist Group Reporting Mean Quartile Northeast TOTAL, all cities 247 $29,845 522,390 100,000 to 249,999 4 52.559 47,008 50,000 to 99,999 9 TABLE 3 37,888 25,000 to COUNCIL OF GOVERNMENTS DIRECTORS' SALARIES AS OF JANUARY I, 1982 10,000 to 24,999 80 311,997 30,290 5,000 to 9,999 67 27,025 23,375 2,500 to No. of 31 21,254 18,000 Under 2,5004'** Population COG* 15,034 Ist 3rd Group Reporting Mean Quartile Median Quartile TOTAL, all COGS 341 $31,047 $24,842 $30,000 $36,000 Over 1,000,000 18 53,387 46,450 55,560 59,366 500,000 to 1,000,000 33 37,274 32,258 36,192 41,864 250,000 to 499,999 68 34,643 29,500 35,258 38,952 100,000 to 249,999 129 29,097 24,878 29,272 33,000 50,000 to 99,999 52 25,833 20,500 25,000 29,325 25,000 to 49,999 26 22,950 19,464 22,500 26,682 10,000 to 24,999 7 23,100 19,130 23,000 25,142 5,000 to 91999 3 20,160 20,900 Under 2,500 5 24,880 18,600 26,000 27,125 TABLE 4 CITY MANAGERS' SALARIES AS OF JANUARY 1, 1982` BY GEOGRAPHIC REGION** ' Region No. of Population Cities Ist Group Reporting Mean Quartile 10,000 to 24,999 5,000 to 9,993 2,500 to 4,999 Under 2,500*** 90 94 70 27 31,655 28,510 22,372 28,000 24,639 19,920 Median $30,000 50,614 40,500 39,489 33.649 26,707 20,677 14,000 _,34,998 70,960 30,260 27,638 22,000 3rd Quartile $36,984 52,000 43,262 44,007 38,880 30,000 23,865 17,000 42,500 41,41/ 34,253 31,925 25,584 i MICROFILMED BY _1 I---JORM--MICR¢LA13' ' J CEDAR RAPIDS • DES MOINES ' Northeast TOTAL, all cities 247 $29,845 522,390 100,000 to 249,999 4 52.559 47,008 50,000 to 99,999 9 43,405 37,888 25,000 to 49,999 25 41,423 35,250 10,000 to 24,999 80 311,997 30,290 5,000 to 9,999 67 27,025 23,375 2,500 to 4,999 31 21,254 18,000 Under 2,5004'** 31 15,034 11,895 North Central TOTAL, all cities 362 $35,967 $28,000 250,000 to 499,999 2 70,960 10,000 to 24,999 5,000 to 9,993 2,500 to 4,999 Under 2,500*** 90 94 70 27 31,655 28,510 22,372 28,000 24,639 19,920 Median $30,000 50,614 40,500 39,489 33.649 26,707 20,677 14,000 _,34,998 70,960 30,260 27,638 22,000 3rd Quartile $36,984 52,000 43,262 44,007 38,880 30,000 23,865 17,000 42,500 41,41/ 34,253 31,925 25,584 i MICROFILMED BY _1 I---JORM--MICR¢LA13' ' J CEDAR RAPIDS • DES MOINES ' IF Region Population Group South TOTAL, all cities 250,000 to 499,999 100,000 to 249,999 50,000 to 99,999 25,000 to 49,999 10,000 to 24,999 5,000 to 9,999 2,500 to 4,999 Under 2,500*** West TOTAL, all cities 500,000 to 1,000,000 250,000 to 499,999 100,000 to 249,999 50,000 to 99,999 25,000 to 49,999 10,000 to 24,999 5,000 to 91999 2,500 to 4,999 Under 2,500*''* TABLE 4 (continued) No. of Cities Reporting Mean 1st Quartile Median 3rd • Quartile 538 $33,814 $26,000 $32,304 $39,947 6 63,683 54,824 65,172 67,819 16 56,716 52,645 54,471 61,640 27 51,725 44,960 50,604 57,637 65 41,172 36,551 40,685 45,216 175 35,699 31,46935,280 41,916 40,010 117 29,085 25,000 28,000 32,302 101 24,869 21,020 24,500 27,155 I 31 21,532 16,941 21,860 25,430 The salaries shown in this table are only for municipalities recognized by ICMA as providing for the council-manager form of government. These are U.S. Census Bureau regions. Northeast includes Connecticut, Maine, Massachu- setts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. North Central includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. South includes Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. West includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. *'+* The ICMA master file includes only those cities under 2,500 population that are recognized by ICMA as providing for a position of professional management. More on Salaries A future Urban Data Service (UDS) Report will contain more detailed information on manager and administrator salaries and will include similar data for 25 other municipal officials. For information on UDS Reports or UDS subscriptions, contact Mona Saleh at ICMA, 202/828-3600 or, after March i, 202/626-4600. A complimentary copy of an individual list of manager/executive director salaries over $30,000 will be mailed in mid-April to all ICMA Corporate Members. I MICROFILMED BY -'JORM- MIa.R6L A13 CEDAR RAPIDS DES MOINES Y:�,:_. 9ga A 392 44,673 36,039 43,824 52,000 2 77,761 .•• ••• ••• 2 20 65,269 63,488 58,746 64,279 i 65,064 - 52 56,054 50,400 56,305 60,000 88 48,423 43,217 48,704 52,080 89 42,711 37,399 41,916 46,962 76 36,137 33,000 36,352 40,000 • 42 33,209 28,315 30,114 34.900 21 39,875 28,005 38,500 49,092 The salaries shown in this table are only for municipalities recognized by ICMA as providing for the council-manager form of government. These are U.S. Census Bureau regions. Northeast includes Connecticut, Maine, Massachu- setts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. North Central includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. South includes Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. West includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. *'+* The ICMA master file includes only those cities under 2,500 population that are recognized by ICMA as providing for a position of professional management. More on Salaries A future Urban Data Service (UDS) Report will contain more detailed information on manager and administrator salaries and will include similar data for 25 other municipal officials. For information on UDS Reports or UDS subscriptions, contact Mona Saleh at ICMA, 202/828-3600 or, after March i, 202/626-4600. A complimentary copy of an individual list of manager/executive director salaries over $30,000 will be mailed in mid-April to all ICMA Corporate Members. I MICROFILMED BY -'JORM- MIa.R6L A13 CEDAR RAPIDS DES MOINES Y:�,:_. 9ga A EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 14 th day of January 19 75 , by and between the City of Iowa City, State of Iowa, a municipal corporation, hereinafter called the "City," as party of the first part, and Neal G. Berlin, hereinafter called "Employee," as party of the second part, both of whom understand as follows: WITNESSETH: WHEREAS, the City desires to employ the services of said Neal G. Berlin as City Manager of the City of Iowa City, as provided by - _ Ordinance and Charter provisions of said City; and - WHEREAS, it is the desire of the City Council to provide certain benefits, establish certain conditions of employment, and to set working conditions of said Employee; and WHEREAS, Employee desires*to accept employment as City Manager' i of said City; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: Section 1, Duties City hereby agrees to employ said Neal G. Berlin as City Manager of said City to perform the functions and duties of such office and to perform isuch other legally permissible and proper duties and functions as the City Council shall from time to time assign. Section 2, Term A. Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the City Council to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3, paragraphs A and B, of this agreement. MICROFILMED BY 1. JORIM CEDAR RAPIDS •DES MOINES f _o ,E B. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with the City, subject only to the provision set forth in Section 3, paragraph C, of this agreement. Section 3, Termination and Severance Pay A. In the event Employee is terminated by the City Council and during such time that Employee is willing and able to perform the duties of City Manager, then in that event the City agrees to pay Employee a lump sum cash payment equal to 3 months' aggregate salary; provided, however, that in the event Employee is terminated because of his conviction of any illegal act involving personal gain to him, then, in that event, City shall have no obligation to pay the aggregate severance sum desigmted in this paragraph. B. In the event the City at any time during the employment term reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction for all City employees, or in the event the City refuses, following written notice, to comply with any other provision benefiting Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by the City Council that he resign, then, in that event, Employee may at his option, be deemed to be "terminated" at the date of such reduction or such refusal to comply within the meaning and conteMt of the herein severance pay provision. C. In the event Employee voluntarily resigns his position with the City then Employee shall give the City 1 month notice in advance. Section 4, Salary City agrees to pay Employee for his services rendered pursuant ! MICROFILMED BY ' �..._.. I-.. _. __JORM_...MICR#LAB'_. .._�...� CEDAR RAPIDS • DES 1401 NES I CW= hereto an annual base salary of $26, O00. 00 payable in Installments at the same time as other employees of the City are paid. In addition, City agrees to increase said base salary by $750.00 effective 6 months after the date of this contract and further review Employees salary and benefits no later than July 1, 1976, 'compling base salary increases from the basic salary figure of 526, 750.00. Section 5, Hours of Work _ A. It is recognized that Employee must devote a great deal of his time outside normal office hours to business of the City, and to that end Employee will be allowed to take compensatory time off as he shall deem appropriate during said normal office hours. Section 6, Automobile Employee's duties require that he shall have the use at all times during his employment with the City of an automobile provided to him by the City. City shall be responsible for paying for liability, property damage, and comprehensive insurance and for the purchase, operation, maintenance, repair, and regular replacement of said automobile. Section 7, Moving Expenses Employee shall be reimbursed, or City may pay directly, for the expenses of packing and moving himself, his family, and his personal property from Hanover, New Hampshire, to City, with said payment or reimbursement to be agreed upon prior to execution of any contract to perform such move and shall include costs of unpacking, storage costs and insurance charges. Section 6, Home Sale and Purchase Expenses , A. Employee shall be reimbursed up to the rate of $500.00 per month to defray costs of interest and real estate taxes on New Hampshire i MICROFILMED 9Y CEDAR RAPIDS • DES MOINES i I` I i,r I 4 - oil residence until such time sale of Employee's New Hampshire residence Is effected; however, in no case shall said reimbursement exceed the total sum of $I, 800.00. B. City shall reimburse Employee for expenses to cover costs of one visit to City with Employee's wife for the purpose of purchasing a residence. Section 0, Dues and Subscriptions City agrees to budget and to pay the professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for his continued professional participation, growth, and advance- ment, and for the good of the City. Section 10, Professional Development A. City hereby agrees to budget and to pay the travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for City, including but not limited to the Annual Conference of the International City Management Association, the state league of municipalities, and such other national, regional, state, and local governmental groups and committees thereof which Employee serves as a member. B. City also agrees to budget and to pay for the travel and subsistencA expenses of Employee for short courses, Institutes, and seminars that are necessary for his professional development and for the good of the City. Section 11, Vacation, Sick and Military Leave A. Employee shall be credited with 30 days of sick leave. There - 98d2 Id ICROf IlldEO gY IIII{ _1 "'MICR6LAB� Ii CEDAR RAPIDS •DES MDINE. I /� 1"\ -5- after Employee shall accrue sick leave at the Same rate as other general employees of City and the City Manager shall be entitled to 3 weeks of vacation after -1 year of service. B. Employee shall be entitled to military reserve leave time pursuant to state law and existing City policy, Section 12, Disability, Health, and Life Insurance A. City agrees to continue in force and to make required premium payments for Employee for insurance policies for life, accident, sickness, disability income benefits, major medical and dependent's coverage group insurance presently covering Employee and He dependents, amounting to approximately $l, 000, 00 annual premiums. B. City agrees to provide hospitalization, surgical, and compre- hensive medical insurance for Employee and his dependents. Section 13, Retirement - Deferred Compensation Plan A. In addition to the base salary paid by City to Employee, City agrees to continually set aside an additional sum equivalent to 10 per cent (10%) of the base salary, as deferred compensation, which, in equal proportionate amounts each pay period shall be credited and paid into a "Deferred Compensation Account" to be established with the City Treasurer. Such deferred compensation plan will be administered as consistent with provision of the IRS and ICMA Retirement Plan as set forth in a separate agreement to be executed by all parties concerned. Section 14, Normal Retirement System Employee shall be covered by the normal City retirement system in the category of City Manager. Section 15, Other Terms and Conditions of Employment A. The City Council shall fix any such other terms and conditions I MICROFILMED BY -"JORMMICR+CAB` -..t ' CEDAR RAPIDS •DES MOINES I , -6 - of employment, as it may determine from time to time, relating to the ' performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this agreement, the City Charter, or any other law. B. All provisions of the City Charter and Code, and regulations and rules of City relating to vacation and sick leave, retirement and pension system contributions, holidays, and other fringe benefits and working con- dations as they now exist or hereafter maybe amended, also shall apply to ; 1 Employee as they would to other employees of City, except as herein 1 provided. Section 16, General Provisions A. The text herein shall constitute the entire agreement between the parties. _ i B. This agreement shall become effective commencing February 1. 1975. C. if any provision, or any portion thereof, contained in this . agreement is held to be unconstitutional, invalid or unenforceable, the remainder of this agreement, or portion thereof, shall be deemed 1 severable, shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF, the City of Iowa City. Iowa, has caused this agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and the Employee has signed and i executed this agreement, both in duplicate, the day and year first above i written. ! i IOWA CITY, IOWA f By: May i i / O 1' i MICROFILMED " JORM "-MICR#L:AB'- 1 } CEDAR RAPIDS • DES M014ES J^� 1'r i 7- al C. Berlin. Employee ATTEST: City Clerk (Seal) FMICROFILMED BY 1--'" MICR(�LAB" PIDS• DES MOINES i Nk- 1'r 4 Date: May 27, 1982 To: Iowa -Illinois Franchise Study Committee J% From: City Manager ((// Re: Iowa -Illinois Franchise Election f Enclosed is a memorandum from the Deputy City Clerk concerning the scheduling of an election for the Iowa -Illinois franchise. The position of Iowa -Illinois is that in order to be eligible for the special incentive - streetlight rate, the franchise must be approved two years prior to its expiration. The electric and gas franchises expire on October 8, 1984. t So that the Council will be able to discuss this matter, I have scheduled I time at the informal Council session of June 7, 1982. bdw/sp cc: Dale Helling City Council✓ f I 1 MICROFILMED BY FLD RM--MICR(�C'AB-AR RAPIDS - DES MOINES 9 83 � 1 City Of Iowa City MEMORANDUM DAT11 May 27, 1982 TO: City Manager FROM: Deputy City Clerk n)w 1E: Franchise Election As per Sec. 39.2.1, the election must be held on a Tuesday. Several dates have been suggested and problems do exist with a number of them. Originally the date of October 5th was mentioned. Canvass would be October 8th, and then it would still have to be accepted in writing by the utility. Not only were we not sure we could wait this long but the Elections Officer informed us that the October 5th date was not acceptable because of the general election and the workload already scheduled for October and November. The School Board is having an election September 14th. The possibility of combining the two was mentioned. However, the Elections officer pointed out this was not feasible because the schools do not use all of the election machines and the City election would require setting all of them. After discussing other dates with the elections officer,and her checking with Tom Slockett,two alternatives were suggested. 'One, holding the election on August 10th (anything earlier conflicted with the set-up required for the other elections) or, two, holding the election with the general election in November. If the election would be held on August 10th, the City would have to incur total cost of approx. $7,000. The City must notify the Commissioner of Elections at least 30 days in advance of the proposed date of election (Sec. 47.6.1 and 376.1) and this would include the wording for the measure. For August 10th, ' this would be July 9th. Notice of election and ballot are published under 49.53, the not more than 20 or less than 4 days provision. Chapter 364.2 outlines the provisions for a valid petition, or statement by Council on its own motion. So Council would have to set a date by a motion, at a formal Council meeting. This would mean setting the date on July 6th, and forwarding the request to the Johnson County Commissioner by July 9th. If the election were to be combined with the general election in November several cost saving measures could be utilitized. Precinct workers would already be there, and combined with publication and printing costs, set-up and transportation charges, savings could be approx. $5,000. We should contact the City Attorney about the November date, this could be too late. It should be mentioned that August 24th was discussed as a possible compromise and was not acceptable to the elections office. The University will not be in session until August 25th, and the earlier date of August 10th could affect student involvement. MICROr1LMED BY -JORM MICR6LA13- .. ...1 l CEDAR RAPIDS • DES M014ES WG _V J^� City of Iowa Cif; MEMORANDUM Date: May 26, 1982 To: City�uncil From: City' nager Re: Tree Ordinance Questions have been raised about compliance with the tree regulations for Kirwan's Furniture and the Village Inn Pancake House. Enclosed is a memorandum from Glenn Siders which discusses this matter. The zoning ordinance staff review committee will consider these issues. Any suggested changes will be included in the tree regulations which will be a part of the zoning ordinance recommendations. cc: Bob .Jansen Mike Kucharzak Glenn Siders Don Schmeiser bj2/4 i MICROFILMED BY �..1_.._._� ...-f "'JORM'--MICR¢CAB CEDAR RAPIDS • DES MDIYES Ic- J� \-1.. mad.. I i 1 J� \-1.. mad.. City of Iowa Cit; MEMORANDUM Date: May 12, 1982 D 2 To: Mike Kucharzak From: Glenn Siders A6 _ Re: Tree Ordinance Mike, at the direction of the City Manager I am generating this correspon- dence to clarify compliance and non-compliance with Kirwan's Furniture located at 1550 First Avenue and the Village Inn Pancake House located at 9 Sturgis Corner and also incorporate several difficulties with the Tree Ordinance. As was previously identified in an April 14, 1982, memorandum, it is my Position that both the Kirwan's store and the pancake house are in compliance with the Iowa City Tree Ordinance. As you are well aware there are several difficulties with implementing the Tree Ordinance and to assure 100% compliance and non-compliance. One particular problem that has occurred is the enforcement of the ordinance with respect to field staff identifying that the spacing and species of trees are in fact what was specified on the drawing. The only staff person knowledgeable to assist in the field review would be the City Forester. The City procebures.presently do not require City Forester participation and concurrence for compliance. As you are well aware the Planning and Programming Department interprets the Tree Ordinance in regards to parking areas, to entirely encompass all stalls where, in fact, it is the Building Inspector's interpretation that a stall must simply be i within the 40 or 60 foot radius dependent on the code requirement for a small or large tree. A minor movement of one foot or two foot in the actual planting of a tree where you have very large yard or island space could, in fact, take the project that was in compliance on the drawing and Put it in non-compliance in actuality in the field. Another particular problem encountered with the Tree Ordinance is the verification of the species of tree and the size requirements. Asyou are aware it is the Building Inspector's interpretation that there are no irequirements for sizing or species primarily because the "recommended tree list" is merely that, a recommendation, and was never incorporated or made part of the ordinance, nor was the list of recommended trees published at the time the ordinance was adopted. i Another difficulty with the Tree Ordinance is in the construction of the ordinance itself. There are many, many referral sections and subsections that may or may not be applicable in a given situation. Many times throughout the Tree Ordiannce one regulation triggers another or just the Opposite occurs where something may be exempt because it is not specifically addressed by ordinance. I believe a rewrite of the ordinance should be considered so that developers in Iowa City, Des Moines or Tulsa, Oklahoma, can design for Iowa City construction. In short, we need an ordinance that is readable and simple to interpret. r' hi 141CIIIILMED BY "-JORM MIO R�LAEI � - Y j I CEDAR RAPIDS • DES M01YE5 T r _y 1'r 2+ In conclusion, some may argue that Village Inn, Kirwan's Furniture or Wendy's do not comply with the Tree Ordinance because there are too few trees, trees planted are too small, or trees are of the wrong variety; for the reasons stated in this memo, I believe the above-mentioned projects are in compliance. 'If others disagree with the intent of the Code, let's rewrite the code language to clarify the intent. If you or the City Manager would require more specific information please do not hesitate to contact me and I will attempt to provide it to you. Thank you very much. bj/sp ' 1 1 I \ I' 1' ' MICROFILMED BY "JORM:-MICR+LAB- 1 CEDAR RAPIDS DES MOINES I I A (J(1 9 1 { S j,0_ h _ ALL 5 . i- i _1 i i i I -;M CITY OF IOWA CITY CHIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-5CCO 1 May 21, 1982 Neal Berlin, City Manager City of Iowa City 410 E. Washington St. Iowa City, Iowa 52240 Dear Neal: i I This is to inform you that I am resigning as Energy Program Coordinator effective June 4, 1982, to take the position of Energy Coordinator for the City of Saint Louis, Missouri. I am looking forward to the challenge and great opportunity of that position. I think Iowa City is to be congratulated for having made the commitment to reduce its energy costs. There have been many disappointments and frustrations in the process of doing that because it has been a learning experience for all of us. But much of the work is done and the savings. will be evident during the next winter and will benefit the City for many years to come. Of course, I am disappointed that the decision was made to cut the program back while there are many things yet to be done. However, I do appreciate the City Council's and your decision to see the existing program out to a successful conclusion. ` Thank you for the opportunity to have worked for the City. I and my family are sad to leave the community and we hope that we have contributed to making it an even better place than when we came. Sincerely, Roger Tinklenberg Energy Program Coordinator bj5/24 MICRDPILMED BY 11 - "DORM --MIC R#L l►B" { CEDAR RAPIDS DES MOINES 9g5 \N.. -ANOWLu h/ N 1,23232 RL` l.0-;�'; �J i X111'r �. CIowa Department of Transportation * 800 Lincoln Way, Ames, Iowa 50010 515/239-1111 1*0 May 21, 1982 Mr. Neal G. Berlin City Manager City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Dear Mr. Berlin: Ref. No Johnson County F-6-7(22)--20-52 I was pleased to meet with you and the city council recently to discuss the proposed project on Benton Street and Riverside Drive. I appreciate hearing your concerns about this project, but after a detailed study we must maintain our original position on both issues. Our proposal for Benton Street is based on maintaining the present pavement by performing minor work on the surface to restore the original crown in the roadway. This would greatly improve this section. Milling the center 25 feet of the road to correct the crown and resurfacing with one and one-half inches of asphalt would cost an estimated $5,000. It would cost an estimated $34,000 to replace the center 25 feet of Benton Street with new pavement, an increased cost in the project of $29,000. We have no objection to your proposal for Benton Street, but we will limit our participation to $5,000 for the project. It may be more cost effective to the city to replace the existing pavement if the proposed sanitary sewer project is constructed on Benton Street. No additional construction costs would be anticipated if the fifth - lane design is used on Riverside Drive. The cost per square yard to construct a paved median (raised with concrete curbs) is the same as standard pavement, so no additional costs are anticipated for the project. However, this department does not support the construction of the fifth - lane. The raised median concept on Riverside Drive is a safer design than the fifth -lane proposal. The raised median reduces traffic conflict and congestion, controls access, and limits left turns to street inter- sections only. The construction of a fifth -lane will have a detrimental effect on safety since traffic will travel faster through this area after Riverside Drive is improved. If the city decides to construct the fifth -lane and this later proves to be inadequate, there will be additional investment needed to assure the safe movement of traffic through this area. These additional costs will have to be provided by the. city. Camml„ loner, Barbara Dunn C. RURer Fair Dirrel Remink Ruben R.Ingler Auatln R,turner Del Van MOM Dermis W. Voy M, Mdnea OAMnpon Sioux Center NOW Hampton Coming leffeoon Maquoketa MICROFILMED BY JORM MICRf LA13 - ! fj CEDAR RAPIDS • DES MOINES f —v _y Mr. Neal G. Berlin May 21,1982 Page 2 The request for a pedestrian activated signal is reasonable. However, we recommend waiting until pedestrian volumes warrant separate signals because of traffic phasing problems, longer delays and other factors. We do not intend to deemphasize the importance of pedestrian safety, but these signals could be added very easily at a later date when the need is more apparent. If you would like more information about this project, please contact me. Sincerely, <' Warren B. Dunham I Director WBD/bas I I . j 1 I I j i j � I Tic MICROFILMED BY _l. -JORM�-MICR+LAB- J CEDAR RAPIDS � DES MOINES I / 1'r City of Iowa Cit'' MEMORANDUM Date: May 24, 1982 To: Neal Berlin and City Council From: Chuck Schmadeke 67/,j, Re: Dubuque Street Reconstruction Attached are memos from Frank Farmer, City Engineer, and Jim Brachtel, Traffic Engineer, concerning the proposed reconstruction of Dubuque Street from Washington Street to Iowa Avenue. Also included is a drawing showing the existing 51 foot pavement on Dubuque Street narrowed to 34 feet only at the intersections of Iowa Avenue and Washington Street. This option is discussed in Jim Brachtel's memo and represents a compromise between the 41 foot paving alternative and the 51 foot paving alternative. bdw3/6 Attachments i 1 I MICRDFIUIED BY L -JORM-"'MICR46LAB CEDAR RAPIDS •DES MOVIES y — Rg? 1 i J _y -J .. City of Iowa Cit, MEMORANDUM Date: May 11, 1982 To: City Manager and City Council From: Frank Farmer, City Engineer cr. Re: Sidewalk Vaults on Dubuque Street from Washington Street to Iowa Avenue There are twelve (12) sidewalk openings on the west side of Dubuque Street from Washington Street to Iowa Avenue. Ten (10) of the a vaults for entrances to the basement area and two (2) are old coal 's• Following are estimated costs to either rehabilitate or remove the openings: Businesses Rehab Remove *Best Steakhouse vault $4,525 - *Felix & Oscar's vault 2,447 $2,434 *Catherine's 2,107 1,708 ***Paul's Heroes - 1,046 *Mickey's vault 2,925 2,548 **Comer's Pipe Shop 2,371 1,654 ***Bicycle Peddlar's (coal shoot) - 998 **Dean's 2,818 1,695 *Mott's Drug vault 2,474 1,819 ***Mott's Drug (coal shoot) - 998 **Discount Records 3,260 2,461 *Myer's Barbershop vault 3,075 3,750 *Use and want vault or entrance to remain. **May or may not want vault or entrance to remain. ***Do not use and do not want vault or entrance to remain. Ato last crs and tenants, cording eabove',den to whether �they on �intend othe vaults or e the asterisks, eliminated or rehabilitated. ntrances to be i i MICROFILMED BY 1JORM"'-MICR6LAB` ' 1.) CEDAR RAPIDS • DES MCIYES I I� all \w. 1 J_�Y rr (O, 2 , The Best Steakhouse vault top was recently rebuilt and is in good condition. Rehabilitation of the Best Steakhouse vault top would be necessary only if Washington Street is narrowed to 41 feet in width to allow for amenities and it is assumed that rehabilitation of that vault top would be at the City's expense: Various options for funding the vaults' rehabilitation or removal are: 1) assessment of vault and/or sidewalk rehabilitation, 2) property owners agree to pay a set percentage or amount of rehab or removal costs and the City pay remaining costs (problems if not all property owners agree), and 3) City pay entire cost to rehab or remove vaults. All sidewalk vaults and entrances in the urban renewal area, directly south of and adjacent to this portion of Dubuque Street, were either removed or rehabilitated at the City's expense with no costs passed on to the property owner. Engineering recommends that amenities other than streetlights and trash receptacles not be included on Dubuque Street unless the street width is narrowed to 41 feet in width, and will proceed with design and implemen- tation of the Dubuque Street improvement project from Washington Street to Iowa Avenue upon direction from the Council as to street width, status of vaults, and amenities. bdw2/2-3 987 141CROFIL14ED DY "- "DORM -MICR#LAB--f CEDAR RAPIDS DES MOINES I � S City of Iowa City MEMORANDUM Date: May 7, 1982 To: Charles Schmadeke, Director of Public Works From: James Brachtel, Traffic Engineer Re: Urban Renewal Design of the 10 Block of South Dubuque Street At the direction of the City Council the Traffic Engineering Department has conducted a series of volume counts at the above -referenced location. The results of this survey are tabulated below. Date/Day Northbound Southbound 25 April/Sunday 910 1,400 26 April/Monday 1,690 1,900 27 April/Tuesday 1,730 1,930 28 April/Wednesday 1,640 2,080- 29 April/Thursday 1,710 2,310 23 April/Friday 1,950 2,470 24 April/Saturday 1,630 2,410 The traffic volumes measured by these counts can be adequately handled by either 41 foot or 50 foot paving width. The 51 foot paving provides an additional 10 foot of paving for maneuvering around vehicles which are double parked. 41 FOOT PAVING The advantage of.41 foot paving is the opportunity to provide streetscape amenities along the street. These amenities would give a visual tie to the walking mall. Short term metered parking would be left intact. The disadvantage of 41 foot paving is the loss of maneuvering space around double parked vehicles. At the present time there are no loading zones for commercial vehicle access. All commercial vehicles double park in the driven lane to load or unload. Some additional congestion will be created if the paving width is reduced to 41 feet and no curbside loading zones are added. 51 FOOT PAVING The advantage of the 51 foot paving is the continuation of present traffic operation. Commercial vehicle delivery is accomplished with some traffic congestion. Some private auto loading and unloading is accomplished by 1 1 MICROFILMED BY - JORM MICR#LAS- CEDAR RAPIDS • DES MOINES FM 9B7 \N. LF 2 double parking. Maneuvering into parallel parking stalls creates minimal disruption to the traffic stream. The disadvantage of the 51 foot paving is the lost opportunity to provide continuity to the walking mall. This block of Dubuque Street could be an addition to and an enhancement of the pedestrian orientation in the City's Central Business District. CONVERSION TO ONE-WAY TRAFFIC Local Implications: The advantage of converting Dubuque Street to one-way operation and maintaining parking on both sides is the ability to narrow Dubuque Street to 41 feet and still maintain the traffic flow-loading/unloading mixture that presently exists. This scheme would create two functional problems. Many drivers would experience difficulty in parallel parking their vehicles on the "wrong" side. This difficulty would result in additional side friction and congestion. In addition to increased congestion a driver departing from a parallel stall on the "wrong" side would have almost no sight distance to the rear when he re-enters the traffic stream. A second difficulty could rise from double parked cars. With the City's present code and its enforcement, a vehicle could double park in either the left or right hand driven lane, as long as there was an empty lane to his side. Two or three double parked vehicles which randomly double park at their convenience could create a maze effect for the traffic stream. Through moving traffic would have to "slalom" down Dubuque Street. System Implications: The volume counts reveal that northbound traffic comprises an average of 45% of the total weekday traffic volume. If Dubuque Street was made one- way southbound, the north-destinated traffic would be displaced to either Clinton Street or Linn Street. The mid -block links could carry the additional traffic. The principal impact would be noticed as increased congestion at the intersections along Iowa Avenue and Jefferson Street. Circulation patterns in the CBD would be affected by a one-way scheme, the most notable impact would likely be at the intersection of Linn Street and Iowa Avenue. If the majority of circulation were shifted to Linn Street, delay on Iowa Avenue would be aggravated. Circulation patterns external to the CBD could be impacted. If northbound traffic is destinated to a point in the north of the city; some vehicles may choose to continue east to Gilbert Street and then north on Gilbert Street to Church St. This promotion of traffic in the near northside neighborhood would likely be viewed as undesirable. I ' @ICRDFI LIdEO BY 1. L� JORM MICR¢LAB t � CEDAR RAPIDS • DES 14DIYE5 ' \J It i i 987 1 _;y J_� i I � 3 �. Southbound traffic could view the one-way link as a shorter, more convenient path to the City's parking ramp facility and choose to pentrate the CBD rather than use the peripheral Market/Jefferson to Gilbert Street path when approaching from the north. This additional penetration reduces the City's efforts toward pedestrian orientation in the CBD. If Dubuque Street were made to be a one-way northbound, it would be implemented against the natural traffic patterns as demonstrated by the traffic counts. It would heighten a natural circulating pattern around the block bounded by Clinton - Washington - Dubuque - Iowa and might promote more vehicular "cruising" in the CBD. The one-way alternate appears to gain no great advantage and, in fact, may create certain disadvantages. POSSIBLE COMPROMISE The 41 versus 51 foot question centers upon a desire to create an area for the additional streetscape amenities versus the desire to provide loading and unloadingactivity in the driven lanes. Both of these objectives can be achieved to some degree by varying the curb line. If a 41 foot or less cross-section were used for the northern 50-80 feet of Dubuque Street, plantings could be placed at the northern end of the block. This would create the appearance of continuity in streetscape treatment for traffic approaching the CBD from the north. Widening to 51 foot could be screened by low-level plantings. The insertion of mid -block "humps" would trade away some parking stalls (three to four) and allow for the placing of bike racks, benches, etc. The City has received requests by merchants to improve the loading/unloading access in this block. The Bicycle Peddlers has requested that the existing bicycle parking in front of its location be improved. This improvement could be made by constructing a "hump". Bicycle parking could then occur out of the way of parking vehicles and passing pedestrians. The design of -Dubuque Street can achieve, to some degree, the desires of both concerns if some compromise is made to both objectives. bj3/13-15 -4, j 987 4 i M,C", ILMED BY -JOR MMIC RbCAB� -i 4a 11 CEDAR RRF105 DES MOINES i 4 1 V I j . I NET STREETLIGHTS, BENCH IS'W1TH ARMS) TREE GRATE' TRASH RECEPTACLE, , IWRIONG METER- • i 1 008000E STREET WASWNGTON ST TO IOWA AVE. MY 20. 982OV WIPREY TTS 1 r , a{ P' t MICROFILMED BY - I 1.L DORM,"'-MICRI'�CAB'- CEDAR RAPIDS DES MOTIVES � EA - L MICROFILMED BY �`- J0RM---MICR46CAB"' CEDAR RAPIDS • DES MOINES V T , Y a KEY STREETLIGHTS-- MW KNCH W WIT" ARMS); I� TREE GRATE, TRAS" RECEPTACLE. PARKING METERS, OUSUOUE STREET WASHINGTON ST TO IOWA AVE, STREETSCAPE IMPROVEMENTS WY 20. 1442 LAT. I V City of Iowa Cit' MEMORANDUM Date: May 19, 1982 /1 To: Neal Berlin, City Man/ager G ,� From: Chuck Schmadeke (-- . Re: Scott Boulevard Oiling The oiling of Scott Boulevard from Court Street to Lower West Branch Road will require surface preparation beyond what is normally required for dust control. Unstable soil, poor drainage, a water table close to the surface, and an increase in traffic volumes will necessitate the following work: I. Regrade the ditches to provide positive drainage; 2. Remove vegetation from the shoulders and grade the roadbed to produce a five inch crown; 3. Add sufficient road stone to stabilize the roadbed; 4. Prime the surface with MC -70 (road oil) at the rate of three -tenths of a gallon per square yard; 5. Seal the surface with MC -3000 (road oil) at the rate of three -tenths of a gallon per square yard and spread three-eighths inch chips at the rate of 30 pounds per square yard. The estimated cost of this work is $13,500 and the end result will be a dust -free, 20 foot wide, chip seal roadway with an expected life of three to four years. The cost of applying MC -3000 (road oil) for dust control only would be $3400 and would have a life expectancy of one to two months. bdw3/2 MICROFILMED BY L� J JOFiM ' AB j CEDAR RAPIDS • DESDES MOIYES I M _y J \N. I -A..i I Bicyclists of Iowa City, Inc. POST OFFICE BOX 846 IOWA CITY. IOWA 52244 April 14, 1982 Ms. Neuhauser and the City Council The Civic Center Iowa City, Iowa $2240 Dear Councilpeoples 1 9 1982 Last summer BIC (Bicyclists of Iowa City) renewed its active inter- est in procuring a safe and legal method of bicycling from Clinton to Capitol westbound on Washington Street. As the Transit Inter- change now exists there is a ban on westbound bicycle traffic on Washington between Clinton and Capitol Streets. Discussions with Hugh Nose the transit manager, Jeff Davidson the assistant trans- portation planner, Jim Brachtel the traffic engineer and informat- ion obtained from bus drivers themselves all show that conflicts between busses and bicycles are not (and will not) be a problem. The reasoning is that marry bicyclists are illegally travelling westbound now and legalizing the usage will not affect the safe movement of those bicycles. In October 1981 a discussion in•informal City Council session re- sulted in bring up the issue of the City's liability should a bus/ bike collision occur. It was agreed that the legal or illegal presence of bicycles would probably not make any difference in the outcome of a lawsuit. Nonetheless the feeling of Robert Janson the City Attorney was that liability would be somewhat greater if the bicyclists presence were permitted and a collision occurred'. Mr. Janson also stated that it would be "necessa* to provide a bike lane and appropriate signing to fulfill its (the City's) high duty to provide a safe condition for the bikes." There is considerable -Serving Bicyclists Throughout Johnson County" I4ICROFILMED BY "DORM"MICR46L AB � i { Ij CEDAR RAPIDS • DES MO1'NE5 I ' I I J 1' ; 2 evidence that bike lanes on normal city streets frequently create more dangers than they remove ( See John S. Allen, The Complete Book of Bicycle Commuting, Rcdale Press, Emmas, PA. 1981 and 'John Forester, Effective C cli Custom Cydle Bitments, Sunnyvale, CA. 1981). I quote from Forester's book: "95.59 of car/bike collisions are caused by turning and crossing movements. Bike lanes and sidepaths make about 50% of these more difficult and dangerous, and don't re- duce the rest. Bike lanes and sidepaths are intended, supposedly, to reduce car/bike rear end collisions on straight roads, which constitute only 0.5% of total car/ bike collisions." It is because bike lanes and sidepaths are often more dangerous than street riding that BIC opposes the use of them and "Bicyclist use sidewalk" signing in Iowa City generally and for the 50 feet of the Transit Interchange in particular. This leaves "appropriate signing" to consider. Bus drivers using the interchange have found that the real danger to westbound traffic comes from busses on the south side of the island merging with the rest of the westbound traffic on the other side of the island. And, as a result, have adopted a policy of stopping at the west end of the island and proceeding with caution. It seems appropriate, as I think - John Lundell suggested, that a "Caution" or "Stop" sign be installed at that spot to warn bicyclists of a possible danger from merging busses. A sign would absolve the city of its liability and the safety of bicyclists would be increased since we would no longer be forced to drive our bicycles westbound on Burlington Street nor on the pedestrians' sidewalks. The final objection Mr. Janson has deals with the wording of the City Code as follows3 "Every person riding a bicycle on a road- way shall ride as near to the righthand side of the roadway as practicable except for turning movements, or where bike lanes so designate." I have already mentioned the danger that bikelanes create. Mr. Janson feels that since busses are near the curb 9 sq I MICROFIL14ED BY _ I '-"JORM - MICR#LAS LCEDAR RAPIDS • DES MOINES _y U, 1'r �e 3 when they load and unload, the code would need to be modified to allow bicycles to drive to their left- However, the code does not require bicyclists to hug the righthand curb since "as near... as pr�cticable" allows for bicyclists to travel anywhere near the right side of the street as is safest. Since it is safest to pass a stopped bus on the left, there seems to be no reason to change.the code to allow for it. To summarize then, since there is general agreement that bicyclists now driving westbound on Washington from Clinton to Capitol are not causing a dangerous situation, and signing with a "Yield, Caution or Stop" sign would probably absolve the City of liability should a collision occur, there seems to be no reason not to legalize the westbound bicycle flow. I will be happy 'to discuss this matter in either Informal or formal Council session. Thank you for considering �hia request again. copies tos Jeff Davidson Bruce Goddard Sincerely, Shelley B. Plattner President, Bicyclists of Iowa Vity MICROFILMED BY —JORM'- MICR+L-AB-- CEDAR RAPIDS DES MOINES. i M. City of Iowa City MEMORANDUM DATE: October 21, 1981 TO: City Council and City Manager FROM: Robert W. Jansen Q .v Q RE: Bicycles through the downtown transit interchange I have been asked to give my opinion concerning the proposal to per- mit bicycles to use the interchange in the westbound direction. As you know, the westbound lane of Washington Street between Clinton and ` Madison Streets is closed to all traffic except buses. It is my opinion that if the'use of the interchange by bicyclists is legally sanctioned by the City, the City could incur substantial legal liability in the event of injury or death to a'bicyclist. At the present time any bicyclists who enter the interchange which is restricted to bus traffic only assumes the risk of any injury that might be sustained. Opening up the interchange to bicyclists will al- most certainly invite lawsuits if the bicyclist is struck by a bus pulling into the traffic lanes after loading and unloading. The claim will be that since the City permitted bike traffic through the area, the drivers were negligent in that they knew or should have known of the presence of bikes in the interchange and had a duty to look out for them at all times. In addition, I am not sure if the buses are equipped with mirrors that have been sufficiently designed to enable a driver to spot a bike at all angles to the bus. If the buses are not so equipped, then the claim will be that the City was negligent in not equipping the buses with mirrors that would enable the drivers to see bikes along side or whatever angle that could cause a collision. Obviously, a bicycle along side a bus is more difficult to see than is a car or truck. The fact that bicyclists are now ill6gally using the interchange does not completely absolve the City and its drivers from liability should a bus strike a bicycle that is in plain sight. However, the duty to keep a lookout is much less in the present situation than it would be if the City were to permit and thereby sanction the use of the interchange by bicyclists. In that case, the City then has a high duty to provide safe conditions for bicyclists wishing to pass through the interchange. In researching this question I have been unable to find any Iowa Supreme Court cases that spell out the duty that a City owes to bicyclists under these conditions. However, in the case of Bauman v City of 19averly 164 Nil 2d 840(Iowa 1969) the City of Waverly provided a public restroom for the use 11ICROF 1LIdE0 BY I l JORM MICRbLAB'" A CEDAR RAPIDS DES MOINES j �� City,-CQuncil and City Manager Octo 21, 1981 Page Of its citizens and a person was injured inside the public restroom. The Iowa Supreme Court held that when the City of Waverly undertook to establish accomodations for the use of the public, it had a high duty to keep the restroom in safe condition. Similarly, if the City of Iowa City desires to open the interchange to bicyclists as an accomodation to them, then it would be necessary to provide a bike lane and appropriate signing to fulfill its high duty to provide a safe condition for the bikes Sec. 23-65 of the Iowa City Code provides, "Persons riding bicycles on a roadway shall ride single file. Every person riding a bicycle on a road- way shall ride as near to the righthand side of the roadway as practicable except for turning movements or where bike lanes so designate." It is my understanding that there is bus loading and unloading in the righthand lane of Washington Street. This section of the City Code would then have to be amended to provide an exception for bicycles traveling through the interchange since they would not be able to ride on the righthand side of the street. I will be available to discuss this opinion with the Council at the in- formal session on October 26th should there be any questions. cc: John A. Lundell Transportation Planner MICROFILMED BY � �.. "JOR M,-MICR+LAB'- CEDAR RAPIDS • DES MOINES 1 Johnson Cou, y Council of Governme=ts 41UCV(RrlurrPXIX I kwj0iy.km(iY)10 Date: To: F rom: Re: October 14, 1981 City Council and City Manager Jeff Davidson, Assistant Transportation Planner `� Bicycles Through the Downtown Transit Interchange To define the problem which has been brought to the Council's attention, there is currently no way for bicyclists to safely and legally cross the Central Business District in a westbound direction. A study last April established that the Market/Jefferson one-way pair bike lanes are too far north to serve most bicyclists; most bicyclists have origins and destinations along routes which take them through the CBD. There is no problem for eastbound bicyclists because they can use Washington Street to cross the CBD. Westbound bicyclists cannot use this route since Washington is a one- way street. The majority of bicyclists approaching the CBD in a westbound direction use Iowa Avenue, although College and Washington Streets are also buildingsheavily new and oe-way streets, of teclosures, the occurswhenawestound bicyclist reaches Clinton Street. To safely and legally get to Madison Street from Clinton Street, a bicyclist must either detour as far south as Court Street or as far north as Market Street. What is in fact occurring is that great numbers of bicyclists are presently using the transit interchange to travel westbound, although this is clearly illegal. The street is for buses only and the sidewalk for pedestrians only. The use of the interchange by bicyclists is further encouraged by the major bicycle parking facility recently . constructed by the University adjacent to this area. I have discussed this matter with Traffic Engineer Jim Brachtel and i Transit Manager Hugh Mose, and they both feel that a solution can be worked out permitting bicyclists to use the Transit Interchange in a westbound direction. Jim has indicated that upon concurrence from the City Council, he would erect an additional sign at the east end of the Transit Interchange proclaiming "BICYCLES AND" which would be added to the existing "BUSES ONLY" feels on the "DO NOT ENTER" sign. Jim that this action will provide relief to a high number of innocent lawbreakers, and reduce the number of pedestrian -bicycle conflicts on the sidewalk along the Pentacrest. Hugh has some reservations about this idea, but agrees that it is probably .a necessary action. He does not feel that conflicts between buses and bicycles will be a problem, but has a healthy concern that unforeseen problems could develop. Hugh admits, however, that there are presently a great number of bicyclists using the interchange in a westbound direction, and they do not seem to be creating any great problems. lr - I MICROFILMED BY ±1 � J - DORM' MICR#LAS - CEDAR RAPIDS • DES MOINES I _10 F i,r I ', i '�. z I would impress upon you that I do not consider this to be an ideal solution; I consider it to be the best answer to a difficult problem for which an ideal solution is not possible. It will be able to be implemented at very little cost, and is consistent with the City's policy of encouraging the use of the bicycle for transportation. I will be glad to discuss this matter with you further. cc: Jim Brachtel Hugh Mose' Don Schmeiser bcl/l -- Cal MICROFILMED BY j JORM'"MICR#CAB" CEDAR RAPIDS •DES MOINES j j I r 'I I ', i '�. z I would impress upon you that I do not consider this to be an ideal solution; I consider it to be the best answer to a difficult problem for which an ideal solution is not possible. It will be able to be implemented at very little cost, and is consistent with the City's policy of encouraging the use of the bicycle for transportation. I will be glad to discuss this matter with you further. cc: Jim Brachtel Hugh Mose' Don Schmeiser bcl/l -- Cal MICROFILMED BY j JORM'"MICR#CAB" CEDAR RAPIDS •DES MOINES _y ORDINANCE NO. Page 5 Sec. 24.1-5 Amended (a) Salesby "hawking or barki ting". No person shall offer for sale or sell anything by shoung or outcry within any residential area in the city, except in conjunction with an event which is exempt from the provisions of this chapter or for which a permit has been issued by the City. y (b) Loading and Unloading. No person shall so load, unload, open, close or handle boxes, crates, containers, building materials, garbage cans, or similar objects outdoors between the hours of 10 P.M. and 6 A.M. the following morning as to create a noise disturbance across a residential real property boundary or within a noise sensitive area. (C) Vehicle or Motorboat Repairs and Testing. No person shall repair, rebuild, modify,or test any motor vehicle, motorcycle, or motorboat either within a residential zone in such a manner to cause a noise disturbance or in any other zone in such a manner as to cause a noise disturbance across a residential real property boundary or outdoors within a noise sensitive j area. (d) PoweredModel Vehicles. No person shall operate or permit the operation of FF e- model vehicles in a residential zone, in a public space or within a noise sensitive area between the hours of 10:00 P.M. and 7:00 A. M. the i following morning. (e) SoundTrucks and Other Devices. No person shall operate or permit the operation upon the public streets of a sound truck, or other device for producing, reproducing or amplifying sounds without a permit. Sec. 24.1-5. MUSICAL INSTRUMENTS AND SIMILAR DEVICES. No person shall operate, play or permit the operation or playing of any drum, musical instrument or similar instrument in such a manner to cause a noise disturbance or outdoors within a noise sensitive area. Sec. 24.1-6. REGULATION OF SOUND EQUIPMENT AND SOUND AMPLIFYING EQUIPMENT. (a) Except for activities open to the public and for which a permit has been issued by the city, no person shall so operate, play or permit the operation or playing of any radio, television, phonograph, record player, tape deck or player, loud speaker, amplifier, or other device for producing, reproducing or amplifying sounds in any building or upon any premises, public or private or any other sound producing equipment or apparatus: (1) In such manner as to create sound therefrom which is plainly audible across a residential real property boundary or on any public street or property. (2) In such manner as to create a sound therefrom which is plainly audible 50 feet from the device, when operated in or on a motor vehicle on a Public right-of-way or public space, or in a boat on public waters. (b) Soundequipment--permit required. No person shall use, operate or cause to be used or operated any radio, record player, tape deck or player, loud 990 dj14I CRDFILIdED BY , J —JORM -'MIC Rf LAB' r_ CEDAR RAPIDS • DES MDIYES J L� ' r If you are not familiar with what is ac• tually happening with the Monroe County resource recovery facility, in Rochester, New York, you might think it is operating successfully. You might have this Impression from advertise• ments and articles extolling its virtues. In October 1981, the Institute of Scrap Iran and Steel received a feature article doing just that from the Steel Products News Bureau, operated for the American Iron and Steel Institute by the Publicity and Marketing Divi• sion of Hill and Knowlton, Inc. It was hoped that the article would be printed in Phoehix Quarterly. ISIS decided to Investigate what was actually happen. ing In Rochester to determine whether the situation was as rosy as the article indicated. Instead of publishing the article re- ceived (at least one major magazine In the public works field 'did), Phoenix Quarterly asked Russell A. Dawson, Managing Editor of Solid Waste Re. Port, to determine If there was any basis for the optimism. A century ago, Europe's poor and downtrodden wanted to come to America to make their fortunes. They were convinced, through mis. conceptions, that the streets here were paved with gold. Or so the legend goes. Some 15 years ago, when the en- vironmental movement in America was building up a head of steam, a new notion about the availability of gold became. popular. It had to do with gold in our garbage. Proponents of resource recovery urged that we mine our urban waste streams for valuable energy, metals, fiber and glass that were there for the taking. So enticing were the early promises of resource recovery that many com- munities could not resist the tempta• tion. Beleaguered public officials saw a chance to turn their waste manage- ment nightmares into dreams come true. The thought of converting city By Itussell A. Dawson Managing Editor Solid Waste Report Monroe County, "New York The Hyping of Great Expectations garbage into a prized resource was dazzling. It, too, proved to be a misconception. Today, many have learned that the glitter of high-technology solutions is not a panacea to chronic waste dispo- sal problems. The technical and eco- nomic realities of resource recovery can be every bit as treacherous as those associated with conventional land disposal. "The plant's greatest failures are those associated with its not liv- ing up to expectations ... a direct result of the hype that has been used to sell the concept of resource recovery." The purpose of this article, how- ever, is not to impugn all attempts to find alternatives to the landfilling of wastes. But resource recovery can only succeed when local circum- stances are ripe for it. Success depends upon a combination of fac- tors, not the least of which are careful planning, thorough evalua- tion of options, good engineering and effective management. Without them, the promise of resource recov ery can turn quickly to disillusion- ment and frustration. An example of resource recovery as a good idea gone bad is in Monroe County, New York, an industrial area that prides itself on innovative solu- tions to problems. Today, Monroe County is saddled with a controver- sial high-technology resource recovery system that was supposed to solve all local waste management problems. Instead, it has made them worse, and it has the potential to give all resource recovery projects a bad name in the future. The promise of the Monroe County plant is typical. This modern, high- technology facility is designed to pro- cess about 2,000 tons of mixed municipal wastes every day to gener- ate a refuse -derived fuel (RDF) and recover salable steel, aluminum, other nonferrous metals, and glass. It 7 was conceived about 1971 by local engineers and waste management planners who urged the county, and its principal city of Rochester, to find alternatives to land disposal of solid waste. Consistent with the time, these pro- fessionals recognized that landfilling was an environmentally dangerous practice that would increase in cost as space for new dumps became more and more scarce. The Rochester Eng- ineering Society, a respected local organization, recommended consid- eration of a resource recovery facility that could, to the maximum extent possible, recover materials from the waste stream. At the time, best -guessers pro- jected such a facility would cost in the neighborhood of $30 million, but they said these costs and those associated with operations and maintenance could be recovered through the sale of recovered energy and materials. Landfilling needs could be reduced by 90 percent, they said. Savings to the county through the end of the cen- tury could total $300 million, the op- timists speculated. Who could resist such numbers? Monroe County conducted an early feasibility study and decided resource recovery was an attractive and viable option to landfilling. Ultimately, with help from New York State, the coun- ty contracted with Raytheon Service Co., a subsidiary of Raytheon Co., of Lexington, Massachusetts, to build a highly sophisticated resource recov- ery plant. The final price tag for con- struction of the original plant exceed. ed $50 million, no small sum in 1976. Subsequent modifications and addi. tions, startup costs and other expen- ditures related to plant design and construction are now over $62 million; some say the total cost will approach $80 million by the time the plant becomes fully operational. Financing came in the form of municipal and state general -obliga- tion bonds, guaranteed through 1 I MICROFIL14ED BY I JORM MICR6LAB CEDAR RAPIDS • DES M014ES J R9/ 1 J1 r •-__._....,,_...,. ........ ..,...,,,am wase per aar. general taxpayer revenues and state grants. A large portion of the capital costs for building the Monroe County plant came under provisions of the New York State Environmental Quality Bond Act of 1972, an in- novative law that allocates state money to support capital -intensive projects designed to improve the en. vironment. Thus, the taxpayers of the county and state have a large stake in the facility. Raytheon designed and built a 200,000 -square -foot plant incorporat- ing what is said to be the latest tech- nology for front-end separation of solid wastes. The four -acre facility, one of the nation's largest, is located on an I1 -acre parcel in Rochester's Outer Loop Industrial Park. Cur. rently, it accepts roughly half of the solid waste generated by the city of Rochester each day, It has been in a shakedown mode for about two and a half years, however, and that is the source of much frustration. Once it operates at full capacity, it will have enough capacity to handle all of Rochester's garbage plus wastes generated in 19 surrounding towns and 10 villages, with a total popula. tion of approximately 700,000. The front-end separation process is both capital- and labor-intensive, and is quite expensive. During a single eight-hour shift, some 65 operations and maintenance employees labor on the plant floor, Design and equip. C' ment problems from the start have forced modifications to the plant's separation process and added both expense and controversy to the pro. ject. Originally, wastes dumped on the receiving -area floor were to be fed in. to a pneumatic conveyance system that would transport the mixed materials to processing and separa- tion stations. Unfortunately, the pneumatic conveyors were underde. signed, according to Howard Chris- tensen, solid waste director with the county Department of Public Works. The system's fans and cyclones were "inadequate" to move the bulky refuse, he said. Raytheon is now replacing these conveyors with a mechanical system at a cost of ap- proximately $350,000, Mr. Christen- sen said, Primary shredding is the first pro- cessing step in the system. Aware that explosions are an all -too. common feature of shredding at all resource recovery facilities, planners equipped the Monroe County units with blast suppression devices. Un- fortunately, in a short-sighted engi. neering decision apparently aimed at saving money, these same planners decided not to install a blast venting system in the plant. This, despite the fact that blast supresssors are not sufficient to deal with all types of shredder explosions and that the plant's control room is located di. MICROFILMED By JORM MICROLAB CEDAR RAPIDS • DES MOINES rectly above and between the two pri- mary shyedders. Consequently, the potential for a major explosion disaster, in which plant operators working in the con. trol room could be seriously injured or killed, is real. The county has recognized ,this flaw and is paying some $500,000 to install a venting system that will protect the control room. Meanwhile, the county has to pay workers to screen all incoming wastes with rakes, searching for ex- plosives. It is a costly process, Mr. Christensen acknowledged. It is also responsible, in part, for the plant's processing only about 150 tons of waste per day. Following primary shredding, the wastes are further processed by means of air classification, magnetic separation and trommeling. Mumi. num and other nonferrous metals were to be separated by means of an eddy current and trommeling. Unfor- tunately, that system has never been effective insplitting out aluminum and other nonferrous scrap. In addi. tion, the aluminum content of the in. coming wastes is only about one-third of what planners said it would be. Consequently, nonferrous recovery has proven to be uneconomical. In February, the plant halted nonfer- rous metals recovery. Although aluminum was thnught to represent only about 1 percent of all k1 _J r incoming waste, its recovery and sale were to be a major generator of plant revenue. Back in 1976, when the plant was designed, the county said aluminum sales would generate more than $600,000 a year in revenue. Loss of that income has changed the economics of resource recovery in Monroe County significantly, seri- ously reducing needed cash flow. Ferrous metals are recovered by magnetic separation, one of the simplest processes in the entire facil- ity. Of late, about 300 to 350 tons of steel scrap have been pulled from the waste stream each month and sold to Vulcan Materials Co., Pittsburgh, Pennsylvania, for a price in the neighborhood of $35 per ton. As of early March, the amount of scrap was down to about 100 tons a month, because of modifications being made to the system. By late spring, it is supposed to be above 350 tons per month. The $35 -a -ton price does not in- clude the transportation costs from Rochester to Pittsburgh, which Vul- can estimates to be about $25 to $30 a ton. Including this expense, the scrap is costing Vulcan between $60 and $65 a ton. As a result of a five-year contract that was made in the mid. seventies, but which went into effect two years ago, the price Vulcan pays for the material is based on a formula percentage of the No. 1 dealer bundle' scrap price in Pittsburgh. Ed Kappler, Vulcan's scrap put - chaser, said the quality of the ferrous product "meets contract specifica- tions," but is generally the "least desirable" type of raw material the company uses in its detinning opera- tions. Contamination of the steel with organics, labels, and other materials reduces the quality of the input. Vulcan has also purchased similar scrap from a number of other re- source recovery facilities across the country, Mr. Kappler said. Monroe County's is "by far the best" he has seen from such sources. Mr. Kappler added, however, that the ferrous recovery element of any resource recovery plant will, at best, be a marginal revenue producer. "Local officials have been sold a bill of goods" with respect to ferrous recovery, he said. "They think sales of steel scrap will generate money" and make resource recovery pro- fitable. These officials "are about 180 degrees out of phase," Mr. Kappler said. They should be looking at resource recovery operations overall as a means of "cost avoidance." None of the sophisticated plants is going to make money on steel, Mr. Kappler insisted. "There is not that much steel in the waste stream, and what is there is of poor quality." Asked whether Vulcan would re- new the contract on the same pricing formula, if it were up for negotiations now, Mr. Kappler said, "It's unlikely. The price level is too high. This was our first experience with scrap from a resource recovery system. We were looking at the tin can scrap as a marginal offset to the declining volume of tinplate scrap from tradi- tional sources. This material was to help us maintain our volume, but it is more expensive to process than we expected, and we set a pricing for- mula that's just too high, given what is happening in the scrap market. "Knowing what we know now," he added, "the resource recovery sys- tem should be paying the transporta- tion charges. Also, the price formula should be such that, were it in effect in March, reflecting the depressed prices in the scrap market, the sys- tem would have actually lost money on their material. The scrap does have a value, but it's minimal, at best. For the grade of scrap we're getting, we're paying over the market price. Despite all the good intentions that went into the decision to build the Monroe County plant, there are several curious aspects associated with the plant's planning and man- agement that defy logic. Each of them has contributed to the facility's current problems. The most serious failing has to do with poor planning for the sale of recovered products and materials. In particular, Monroe County never had a firm customer for the refuse -de- rived fuel (RDF) it planned to pro - wah not installed. white nut shown in this P111110.31i L` MICROFILMED BY JORM MICROLAB CEDAR RAPIDS • DES MORIES far e.Nploniveh hr workers with rages. 1 J r and nlher nonferrous metals were to be separated by means of an eddy current and trammeling, but the system was not effective. duce, even after the facility was built. RDF is to be the most important product to be generated by the Monroe County resource recovery facility. Fully 65 percent of the through -put waste, mainly paper, plastics and other organics, is to be turned into RDF. Originally, the plant was to generate a "fluff' type RDF characterized by highly shred- ded organic materials no larger than an inch and a half in diameter. This material would then be sold to local fuel customers. Monroe County has been counting on Rochester Gas and Electric Co., the local utility, to be its principal customer for refuse -derived fuel. RG&E did sign an agreement in 1976 to help the plant market its fluff RDF. In another agreement two years later, RG&E gave the county a 20 -year lease on property at the utili- ty's Russell Station to build an RDF receiving facility. That project cost the county $12 million. It was not un- til 1981, however, some two years after the plant itself was built and well into its shakedown phase, that RG&E signed an agreement with the county to actually purchase refuse - derived fuel. RG&E's Russell Station unit has four combustion boilers, each of L which is being modified to accept a fuel mixture consisting of 85 percent pulverized coal and 15 percent RDF. According to Jack Corson, one of RG&E's chief engineers, the utility has begun a two-year evaluation pro- gram to determine the optimum con- ditions for burning RDF with coal. From these evaluations will come RDF fuel specifications. Under the 1981 agreement, RG&E will purchase RDF from the county on a no profit/no loss basis to its ratepayers and stockholders. The complex purchase formula sets the price for RDF at that for coal minus return on its own $3 million invest- ment for boiler modifications, minus increases in operations and mainte- nance expenses due to the use of RDF, minus administrative costs, minus any derating or other penalties the utility may suffer in the future as a result of its participation in the agreement. Mr. Corson admitted the pricing mechanism eliminates most risks to the utility, but stressed RG&E is doing the community a favor in burning its waste. "We're wearing a white hat," he said. Under the best of circumstances, RG&E will purchase up to 450 tons of fluff RDF per day, Mr. Corson said. Planners had hoped to sell the utility 10 MICROFILMED By JORM MICROLA9 CEDAR RAPIDS • DES ;,101AES twice that volume of fuel eventually. Monroe County's margin of return on its investment is tenuous as it is contingent ' upon several things. First, its product must meet RG&E's specifications, something which should pose no major problem. Sec- ond, the base price will be pegged to the price of coal. (As long as prices for petroleum imports remain stable, demand for coal is not likely to in- crease. Thus, coal prices will hold firm or perhaps even drop while the cost of waste processing to produce RDF increases.) Third, should com- bustion of RDF damage the Russell Station boilers, RG&E will be able to recover repair costs by subtracting them from the price it pays for RDF. Finally, there is the problem of what to do with all the other RDF that is not sold to RG&E—possibly 800 tons or more per day if the facil- ity runs at capacity. Again, the coun- ty's failure to do adequate market planning in advance is coming back to haunt it. Fluff RDF, by its character- istics, is not easy to sell. It retains moisture, compacts if allowed to sit and is difficult to handle and store. Other than RG&E, the county has been unable to interest anyone else in it. Its latest solution to this problem is s� 9 Tif 1 J r C; to consider markets for deny. -.ed refuse -derived fuel (d -RDF). Ray. theon is buying pelletizing equipment and the state Energy Research and Development Authority is funding a study of d -RDF as an alternative, ac. cording to Mr. Christensen. The cost of the demonstration study will be about $250,000, he said. Test burns of d -RDF fuel in stoker - fed boilers have been scheduled at several nearby institutions, Mr. Christensen said. The county hopes to line up some fuel buyers as a result of these demonstrations. Potential markets include a complex of county government facilities, Eastman Kodak's Rochester headquarters facility, the University of Rochester, and a state Health Department com- plex. Mr. Christensen said he is op- timistic that, ultimately, Monroe County will be able to sell Rochester Gas & Electric 450 tons of Fluff RDF per day, the remaining fuel, in the form of d -RDF, to several other local customers. There are no guarantees, however, he admitted. Other planning and management failures have contributed further to the plant's poor economic posture. For one thing, the county charges the city of Rochester a tipping fee of only $4.50 per ton for its waste disposal. Critics have said that it costs about $100 per ton to process the waste in- to RDF, most of which is then trans- ported about 50 miles to a landfill in another county. That transportation adds another $30 per ton to the ultimate cost. The cheap tipping fee was nego- tiated years ago through inter- municipal agreements designed to "lock up the waste stream," Mr. Christensen said. The county has budgeted $4.3 million for plant op. erating costs this year. It is easy to see that the county cannot make up such expenditures through such it snudl tipping fee coupled in minor sales of recovered materials. Mr. Christensen said he does not know precisely what the per -ton pro. cessing costs are in Monroe County, but he did not dispute the $100 figure. He asserted, however, that costs incurred during any plant's shakedown phase are "not mean- ingful." Yet a third factor causing Monroe County headaches with its experi- and vendors. Critics say the wordi,+�' of contracts is "very lenient" toward those who sold the county equipment and services. These vendors are well protected from losses, the plant's detractors assert. Mr. Christensen admitted that the vague wording of some agreements has made it dif. ficult to assess liability for design flaws and equipment failures that have plagued the facility. The county will pursue negotiations with Raytheon and various other con- tractors to share the expenses asso- ciated with unanticipated system modifications, according to Mr. Christensen. "Our feeling is that we bought a system," he said. "We want it to work." Despite his own practical approach to working out these con- tractual disputes with vendors, how- ever, Mr. Christensen noted that pa- tience among county residents and politicians "is wearing thin." The longer it takes to demonstrate the plant's capabilities and work out its design and equipment problems, the tougher things will get with respect to its image. The county legislature already has said it will conduct a thorough investigation of the project, its design, and its management. In an absolute, technical sense, one could say Monroe County's experi- ment with high-technology resource recovery is not a total failure. Mr. Christensen, for one, feels this way. The fact is the plant is capable of pro- ducing a refuse -derived fuel that is acceptable to a local power utility, he said. It recovers steel scrap that can be sold to a detinning operation, albeit at a price that leaves little room for profit. With plant modifica. tions, it may someday produce a den. sified, pelletized fuel that can be sold to other local interests. Should the price of imported oil again skyrocket, the economics of RDF production may begin to look better. And its glass recovery operation has, ex- perienced modest success, although the final product is still too gritty to be considered of very high quality. The plant's greatest failures are those associated with its not living up to expectations. Those expectations are a direct result of the hype that has been used to sell the concept of resource recovery. There is a very real question as to whether the state and county will ever get their money's worth out of their multimil- lion -dollar investment. Public con- fidence in local leadership has been undermined by the knowledge that such a large-scale and expensive pro- ject would be undertaken with such ment with resource recovery Is the [liven the potential fur it shredder explosion and possible injury or death to those' working In nature of its contracts with Raytheon the van lruI roam, the county is correct Ing the error he i n h I u IItng a 5500,000 prolective vcn ling and various equipment contractors system. 11 99/ 111CROFILMED BY JORM MICROL46 CEDAR RAPIDS • DES MOINES J _V r ".N 1 1989 1981 1982 12 141CROFILMED BY JORM.MICR46LAB- {1 1 I CEDAR RAPIDS •DES MOINES by ...adequate planging and prepara. tion. And until recently, local officials and Raytheon have been unwilling to admit the seriousness of the project's problems. As late as December 1981. the Monroe County plant was still be- ing touted by the Steel Products News Bureau as a brilliant example of innovation in waste management. "The world's largest resource recov- ery facility is now operating success- fully in Rochester, New York." Ber- nard Zwirn. of Hill and Knowlton. beamed in an October 1981 letter to Phoenix Quarterly. A full-page advertisement in Public Wnrks magazine in September 1979. placed by Raytheon, identified Monroe County as "one of the first in America to turn solid waste handling from a crisis into a bonanza." It is specifically this kind of decep- tion that has made Monroe County look so foolish, and which is con. trihuting to the general perception of resource recovery as an expensive boondoggle. Perhaps a scrap processor in Rochester, summed up the situation best. It is not that anyone is against the concept of resource recovery, he said. But the Monroe County plant was doomed from the very beginning by poor planning, inadequate engi- neering and reliance on the wrong equipment. The plant was not designed to vent explosions properly. Its shredders and front-end processing equipment were not sturdy enough to handle the incoming waste stream. Markets for recovered products were inadequate - Iv explored in the planning stage. The nonferrous system did not work right. The sad thing is, he said, the city of Rochester had an alternative 10 years ago, which it chose to ignore. It should have spent "a few million dollars" then to modernize four ex- isting incinerators into high- temperature units equipped with baghouses. These incinerators could have also been fitted with steam. generating devices to produce some salable energy. The cost would have been modest, when compared with current expenses, and the overriding purpose of the county's decision to seek a high-technology solution to waste management—hulk reduction of material destined for the landfill— would have been accomplished. q91 i 1 _14 y` i MICROFILI4ED BY _.DORM._. MICFV#LAB... l J L CEDAR RAPIDS • DES MOVES I II , • •, ARMSTRONG'S, INC. ' 3rd Street 6 3rd Avenue S.E. Cedar Rapids, Iowa '� D 6 MAY 251382 Mr. Neal G. Berlin ASSTS STOLFUS - City Manager CITY CLERK I City of Iowa City Civic Center / Iowa City, IA 52240 RE: Offer to Purchase Land for Private Redevelopment City of Iowa City, Urban Renewal i Dear Mr. Berlin: The undersigned developer, hereinafter referred to as the "Offeror" (state the nature of the developer's legal entity) hereby offers to purchase, develop and use the lands below described in conformity with Federal and State statutes and local ordinances and regulations, to wit, that area known as: Disposition Parcel 64-1a from the City of Iowa City, hereinafter referred to as the "City". I' The terms of the offer are as follows: 1`{ (1) The Offeror acknowledges receipt from the City of a copy of the City -University [ Urban Renewal Plan, hereinafter referred to as the "Plan", which plan has been duly approved and recorded in the office of the City Clerk of the City, the proposed form of Contract for the Sale of Land for Private Redevelopment, hereinafter referred to as the "Agreement", and a copy of the Prospectus containing the instructions for submitting an offer to purchase property for i redevelopment., (2) The Offeror agrees to purchase from the City the referenced parcels at the price hereinafter set forth in accordance with the provisions of the Plan, and Agreement as attached to this offer. PARCEL NO. PRICE OFFERED 64-1a $227,000 I In making this offer, the Offeror acknowledges that he/she has become familiar with the project site and the provisions of the Plan, the Prospectus, and the proposed Agreement. (3) It is agreed that this offer shall remain open for a period of one'hundred - thirty-four (134) days from the final date for delivery of offers, (as specified in the prospectus), and shall remain in force thereafter until withdrawn by the Offeror in writing, and that the City may reject any and all offers, and may waive any irregularities therein. (4) The Offeror transmits herewith a certified check in the amount of $5,000 pay- able to the order of the City of Iowa City, Iowa, being a good faith deposit for the Disposition Parcel for which this proposal is made. If this proposal is rejected, the good faith deposit will be returned to the Offeror in the manner provided in Section 11 hereunder. If this Proposal is C?9 C MICROFILI4ED BY _.DORM._. MICFV#LAB... l J L CEDAR RAPIDS • DES MOVES I II , Mr. Nen] C. Berlin Page 2 accepted, the good faith deposit will be held by the Finance Director of the City of Iowa City as security for the performance of and subject to City Council declaration of forfeiture in the breach of performance of the obliga- tions of the Offeror pending execution of the Agreement referred to in Section 5, hereunder, and such check may be deposited in an account of the City in a bank or trust company selected by it. The City of Iowa City shall be under no obligation to deposit in such an account, or to pay or earn interest -on the deposit, but if interest thereon is earned pursuant to such deposit such interest when received shall be promptly paid to the redeveloper. Such deposit will be held by the City as such security for performance until such time as substitute security is provided under terms of the agreement referred to in Section 5 hereunder following execution of such agreement. (5) If this offer is recommended for acceptance, the City must advertise its intent to sell by a 30 -day legal notice before furnishing the Agreement for execution by the Offeror. Upon notification of acceptance of this Proposal in the manner provided for in Section 11 hereunder, the Offeror agrees to perform the remaining conditions of this offer and thereafter to execute an Agreement and return it to the City, ` to make any substitute good faith deposit required thereby, and to complete the purchase of the Disposition Parcel in the manner set forth in the Agreement. It is agreed that the Offeror shall not assign or transfer to any other party any interest in this offer prior to notification of formal acceptance or rejection by the City Council of Iowa City, Iowa. It is further agreed, in the event that this offer is accepted, that the Offeror shall not, prior to or after execution of the Agreement, assign or transfer any interest in the Agreement, assign or transfer any interest in the Agreement without the written consent of the City Council of Iowa City. The City Council of the City of Iowa City reserves the right to require of any proposed assignee or transferee the same Statement of Public Disclosure, Statement of Qualifications and Financial Responsibility and narrative setting forth the developers experience, required of the original Offeror. (6) In the event this offer is accepted by the City Council of Iowa City and the Offeror fails or refuses to perform the remaining conditions of this Proposal, and to execute an Agreement within ninety (90) days after the date of notifica- tion thereof, or such extension of time as may be granted by the City, the City may terminate all rights of the Offeror hereunder, and, in such event, shall retain the good faith deposit of the Offeror as liquidated damages by reason of the breach and the City may proceed with other arrangements or plans for the sale of the Disposition Parcel to which this offer relates. (7) The Offeror warrants that no person or agency has been employed or retained by the Offeror to solicit or secure the acceptance of this Proposal upon an agreement or understanding for a commission, percentage brokerage, or contingent fee excepting the following bona fide agency or broker: (If none, so state.) Offeror states and represents that no person or agency claiming to be employed or retained by the City contacted the Offeror with reference to the MICROFILMED RY "JORM MICR6JM011ES I CEDAR RAPIDS • DES I f Ila -110 AZ ,4 b. A written narrative which sets forth and explains in full detail any and all additions, deletions, or any other modifications to the form of Offer as provided by the City. NOT APPLICABLE c. Redevelopers Statement of Qualifications and Financial Responsibility. d. Redevelopers Statement for Public Disclosure, e. A written narrative which sets forth the development which is proposed, as called for in the Prospectus. f. A written narrative which sets forth the developers experience as called for in the Prospectus. g. A complete but unexecuted Contract for Sale of Land for Private Redevelopment. h. A written narrative which sets forth and explains in full detail any and all additions, deletions, or any other modifications to the form of =RAPIDS- � _1.. 99 A J1, -y Mr. Neal G. Berlin Page 3 proposed sale of the subject land other than the following: (If none other I than the City staff employees, state: None.) It is agreed that the City of Iowa City, Iowa, shall not be liable for any obligations incurred by the Offeror for commissions, percentages, brokerages, contingent or other fees of any kind relating to this Proposal. For breach or violation of this warranty, the City shall have the right'to annul its acceptance of this offer, or the contract to rise thereupon. (8) It is agreed that the deposit of the Offeror may be refunded by the City and that the City may withdraw from the sale of the Disposition Parcel at any time prior to conveyance of title and possession of said property by reason of the City of Iowa City, Iowa, being enjoined or prevented from sL doing by any order or decision or act of any'judicial, legislative, or executive body having authority in the premises. It is further agreed that the City shall have no liability for failure to deliver title to such disposition parcel, for the reasons stated above or otherwise, to the redeveloper after making a good faith attempt to do so. (9) 'It is expressly agreed and understood by the Offeror that the City is making no representations with respect to soil conditions, structural conditions, subsurface conditions, and the like and further that the Offeror is making no reliance upon any studies of such conditions possessed by the City and that the Offeror has inspected the site for which this offer is being made and has satisfied itself as to the conditions of both the surface and subsurface of the site. Further, it is agreed that the City has permitted access to the.. Offeror for the purpose of making soil testing, borings, and the like. (10) The Offeror transmits herewith, for the approval of the City five (5) copies each of the following documents. ' a. This Offer. b. A written narrative which sets forth and explains in full detail any and all additions, deletions, or any other modifications to the form of Offer as provided by the City. NOT APPLICABLE c. Redevelopers Statement of Qualifications and Financial Responsibility. d. Redevelopers Statement for Public Disclosure, e. A written narrative which sets forth the development which is proposed, as called for in the Prospectus. f. A written narrative which sets forth the developers experience as called for in the Prospectus. g. A complete but unexecuted Contract for Sale of Land for Private Redevelopment. h. A written narrative which sets forth and explains in full detail any and all additions, deletions, or any other modifications to the form of =RAPIDS- � _1.. 99 A J1, R .. Mr. Neal G. Berlin Page 4 Agreement as provided by the City. 40T APPLICABLE (11) It is agreed that acceptance or rejection of this offer shall be made by depositing such acceptance or rejection in the United States Mails addressed to the Offeror at the business address set forth below. Submitted this 2301, ip of way 1982 Asaetrougis, Iike. NAME OF FIRM C$,INDIVIDUAL (type or print) ;. • I BY: i / I' Atlas C. Pereasky (Signature in ink.) (Type name after, ignature) . JY I Preatdsst TITLE type or print i 222-3d bssw 5.5. BUSINESS ADDRESS type or print) Cher twits, laws 73401 CITY STATE (type or print) ZIP 319-363-0201 BUSINESS TELEPHONE NUMBER (type or print) Iess STATE OF INCORPORATION type or print) i I i 99a MICROFILMED BY jI — JORM-MICR6LA8" - I t L�.� CEDAR RAPIDS •DES MOINES 1 � ■: r... r� MAY 251982 REDEVELOPER'S STATEMENT FOR PUBLIC DISCLOSURE' A B B IfTY E SCLERTL F U S CK A. HIMEVELOPER AND LAND Z I.a. Name of Redeveloper: Armstrong's, Inc. IY. Address of Redeveloper: 222 3rd Ave., S. E. Cedar Rapids, Iowa 52401 2. The land on which the Redeveloper proposes to enter into a contract for, or understanding with respect to, the purchase or lease of land from The City of Iowa City Iowa in City -University Project I in the City of Iowa City State of Iowa is described as follow Parcel 64-1a 3. If the Redeveloper is not an individual doing business under his own name, the Redeveloper has the status indicated below and is organized or operating under the laws of Iowa X A corporation. A nonprofit or charitable institution or corporation. A partnership known as _A business association or a joint venture known as A Federal, State, or local government or instrumentality thereof. Other (explain) 4. if the Redeveloper is not an individual or a government agency or instru- mentality, give date of organization: Founded September, 1890. Incorporated January 28,1911. IIf space on this form is inadequate for any requested information, it should be furnished on an attached page which is referred to under the appropriate numbered item on the form. 2Any convenient means of identifying the land (such as block and lot numbers or street boundaries) is sufficient. A description by metes and bounds or other technical description is acceptable, but not required. MICROFILI4ED BY 'JORM"MIC R(a;LAB' k CEDAR RAPIDS •DES MOINES I __4 1 I 2- 5. Names, addresses, title of position (11' any), and nature and extent of the interest of the officers and principal membcrs,'shareholders, and investors of the Redeveloper, other than a government agency or instru- mentality, are set forth as follows: a. If the Redeveloper is a corporation, the officers, directors or trustees, and each stockholder owning more than 10% of any class of stockl. See Below b. If the Redeveloper is a nonprofit or charitable institution or corporation, the members who constitute the hoard of trustees or board of directors or similar governing body. Not Applicable. C. If the Redeveloper is a partnership, each partner, whether a general or limited partner, and either the percent of interest or a description of the character and extent of interest. Not Applicable. d. If the Redeveloper is a business association or a joint venture, each participant and either the percent of interest or a description of the character and extent of interest. e. If the Redevelo er is s000me eren e, p I&Ic entity, the officers, the members of the governing body, and each person having an interest of more than 10%. POSITION TITLE (IF ANY) ANI) PERCENT OF INTEREST OR IIESCRIPTION OF CHARACTER NAME, MINIMS AND ZIP COD's ANO UrITNT 01: I NT13IMST Robert C. Armstrong Chairman of Board of Directors c/o Armstrong's, Inc. 2016 of common stock 222 3rd Ave., S. E. Cedar Rapids, Iowa 52401 Esther Y. Armstrong 14% of common stock Margaret A. Race 18% of common stock Both of Above c/o Armstrong's, Inc. 222 3rd Avenue S.E. Cedar Rapids, Iowa 52401 6. Name, address, and nature and extent of interest of each person or entity (not named in response to Item 5) who has a beneficial interest in any of the shareholders or investors named in response to item 5 which gives such person or entity more than a computed 104 interest in the Redeveloper (for example, more than 20% of the stock in a corporation which holds SOt of llf a corporation is required to file periodic reports with the Federal Securitirc aryl Exchange Commission under Section Z3 of the Vecurities Exchange Act of 2934, so state under this Item 5. In such case, the information referred to in this Item 5 and in Items 6 and 7 is not required to be furnished. MICROFILMED BY JORM MICR#LAB 1 j Illj CEDAR RAPIDS DES MOINES 942. b._ I I _y S -;- the stock of the Redev(.oper; or more than 50% of the stock in a corporation which holds 207 of the :tock of the Redeveloper): DESCRIPTION OF CHARACTER AND EXTENT NAME, ADDRESS AND 1 P CODE 01. INTEREST i 7. Names (if not given abo e) of officers and directors or trustees of any corporation or firm lis ed under Item 5 or Item 6 above: Not Applicable B. RESiDIiNTIAL REDEVELOPMENT OR EHABiLITATION Not Applicable (Ilse Redeveloper is to furnisi the following information, but only if land is to he redeveloped or rehabiIi•-ited in whole or in part for residential purposes.) 1. State the Redeveloper's -stimates, exclusive of payment .for the land, for: a. Total cost of any residential redevelopment .................. $ b. Cost per dwelling w Lt of any residential redevelopment ...... $ c. Total cost of any r(sidential rehabilitation ..................5 d. Cost per dwelling urit of any residential rehabilitation ..... $ 2.a. State the Redeveloper's* -stimate of the average monthly rental (if to be rented) or average sale )rice (if to be sold) for each type and size of dwelling unit involved is such redevelopment or rehabilitation: TYPE. AND SIZE OF DWELLING UNIT ESTIMATED AVERAGE ESTIMATED AVERAGE MONTHLY RENTAL SALE PRICE � S _y I i 1 1 i 99� 4 r MICROFILMED BY `�'' �.......`` �. 1 .�._.. .._JORM:...-MICR�1LAg.. .. � j � CEDAR AAVIDS •DES MOINES ! -4- h. State the utilities and parking facilities, if any, included in the fore- going estimates of rentnls: c. State equipment, such as refrigerators, washing machines, air conditioners, if any, included in the foregoing estimates of sales prices: CERTIFICATION I (we)IArmstrong's, Inc. certify that this Redeveloper's Statement for Pt to the best of my (our) knowledge and belief.Z Dated: Maw25, 1982. f: Signature President Title 222 3rd Ave., S. E. C:ednrRanida. Iowa 52401 Addmss and ZIP Code true Dated: W�# ZS', /02, Signat re Secretary Title Address and ZIP Code i Ilf the yedevnloper in an individual, thin statement should be signed by such individual; if a partnership, by one of the partnere; if a corporation or other entity, by one of its chief officers having knowledge of the facto required by this statement. ZPenalty for False Certification: Section 1001, Title ZS, of the U.S. Code, provides a fine of not more than 'Z0,000 or imprisonment of not more than five years, or both, for knowingly and wiZZfully making or using any false writing or document, knowing the same to contain any false, fictitious or fraudulent statement or entry in a matter within the .jurisdiction of any Department of the United States. f i MICROFILMED BY i "JORM-" MICR+LA13 CEDAR RAPIDS - DES MOINES ON 94 3- 1 all c o r - pP:�CEL 64-1P. ul> jCf DESCRIPTION uF TF~ RG GSED D_VcLGoM-...IT Or ArmstronG'S Inc.. pr_oo=es to construct and cUerate a department store or, parcel 64-1A. he C_round area shown on care ac of the =rospectus is a:proximatrc"v 43,4010 square feet. 7ne enclosed space or. each of the two _evels of the store W-'11 be 41,00.3 spuare feet for a total cross area within the building of 82,000 souare 'Feet. Portions of the north wall of the building - along the pedestrian mall and facing the new library - will be recessed 10 feet from the property line and coverred with class rising two levels to provide an interplay between activity inside and outside of the store. I The layout of the develoorner,t will conform in all respects with the city's desion concept for a coordinated retail/hotel cornolex. t + Armstrong's has worked and will continue to work with the city's desion consultant to assure the complete harmony of it's store building with existing and prdposed surroundings. Building costs including H.V.A.C., general lighting, sprinklers, ceiling and finished exterior are estimated to be $ 3.4 million. TFC cost of interior finish and fixturing is estimated to be $ 2.1 million. Total costs for development including equipment are estimated at $ 6,300,000. Sources of equity and financing are as described in the Redeveloper's Statement of Qualifications and Financial Responsibility. j DEPARTMENT STORE AND DEVELOPER'S EXPERIENCE ARMSTRONG'S has proven its commitment to and ability to successfully operate.in the downtown retail environment especially since 1558-9 when it constructed a new 100,000 square foot store in downtown, Cedar Raoids. Since that time ARMSTRONG'S has continued to expand and uograde its store to approximately 3009000 square feet today. Although ARMSTRONG'S proposed development in Iowa City on oarcel 64-1A + will be the organization's first branch store, it will be patterned after the parent store philosophy that all departments roust riot only offer the hest value but also the widest selection. ARMSTRONG'S retail experience is detailed in the attached sheets which recap the develoornent of the store since its founding in 1890. The oresent officers arid manacernerlt of ARMSTRONG'S combined with experience and qualifications are listed at the end of the attached historical synopsis. Planning and design, for this project have been aided by Weidt Asociates of Minneapolis and Loomis Brothers of Cedar Rapids. Armstrong's, Weidt and and Loomis have worked closely together on all major irnprovernents in the home store since its relocation in 1959. L E D MAY 2 51992 ABBIE STOLFUS CITY CLERK I 14ICROFILI4ED BY f{)� CEDAR RAPIDS • DES MOINES IL-11 _ . I ARMSTRONG'S WRITTEN NARRATIVE OF EXPERIENCE Mr. Samuel G. Armstrong (Robert C. Armstrong's Father) founded Armstrong's (circa September, 1890). The original store was a 40' store room at 122-124 Second Street S.E. In its 68 years at that location, Armstrong's remodeled and expanded no less than 30 times. Since moving to its present location at Third & Third southeast, in August of 1959, the store has been remodeled and expanded many, many times. The following is a brief chronological history of the ex- pansion of this wholly family and employee owned retail store that has adhered to policies of "quality'and "Personal service" for 91 YEARS. Beginning as a Men's Store, Armstrong's is now a specialty department store. 1890 - 2,800 sq. ft. - the store begins as a Men's Clothing Store.. 1896 - A printed policy statement is made that is still followed: "We sell only quality merchandise on the sound principle that Quality is Economy. 1900 - The FIRST boy's store in Eastern Iowa is added. 1903 - The store has grown to 3 floors. 1914-19 World War I - Following the war, silk shirts for men were the rage, selling at $10, $15 and $20. 1922 - Robert C. Armstrong returns from Harvard Business School and urges the store to go into Women's Apparel. 1923 - Additional space is secured to add Women's Apparel and Furs. 1924 - A family shoe department is added. Remodeling and expansion continues. 1927 - Two safes were blown by two men who covered the safes with 60 overcoats and blasted with nitroglycerin ... naturally a "Safecracking Sale" followed to sell the 60 blown apart overcoats for $3, $5 and $8.00. 1929 - Depression begins in the East. 99 a - _y MICROFILMED BY "DORM MIC R(a•CA B- Y CEDAR RAPIDS DES IdDlYES I 3' - „ 1' i, I4ICROPILMED RY JORM-'MICRbLAB" ' i CEDAR RAPIDS • DES MOINES .X J_� -Y 1930 - Depression reaches Iowa, sales off 15% 1932 - Depression continues - sales off 40% from 1930, a total of 65% off from 1929. Planning begins for a major expansion. 1936 - Store installs the city's first air cooling system, Downstairs Budget store is added and other remodeling is completed. 1939 - Robert C. Armstrong becomes General Merchandise Manager. 1941-46 World War II Thanks to buying policies, Armstrong's ` still has "more to choose from". 1946-57 During this 11 year period the store outgrew its facilities (60,000 sq.ft) with no further room to expand. 1958 - Work begins on a new store building at Third avenue and Third Street southeast in Downtown Cedar Rapids. 1959 - AUGUST GRAND OPENING of the new store at 3rd & 3rd (114,000 sq. ft.) This building includes the city's first "air doors" 1 elevator, and escalators that were made in Germany, shipped in sections on site. and put together 1964 - The month of December sales were more than the entire year of 1940. 1965 - 75th Anniversary - Rented 3rd Floor of Arnold Building 7,000 sq. ft. 1966 - 2nd elevator is added. Expansion includes 16,800 sq.ft. 4 of the Barnes -Chamberlain Building (3rd & 4th Floors) and a new Men's Shoe Store on 3rd Street. 1967 - 9,000 sq. ft. is added to 5th Floor. 1968 - Street Floor of Granby Building is acquired. 1969 - Street Floor Granby Addition is completed, 6,300 sq.ft. Plus, 2nd Floor of Arnold Building is completed, 7,000 sq.ft Plus, alley bridges adding another 3,320 sq.ft. Robert C. Armstrong is Chairman of the Board. Elected John Miller President. 1970 - Street Floor and Downstairs of Barnes -Chamberlain Building 16,800 sq.ft. brings Street Floor to one block long; the Other Room Men's Shop is completed on Street Floor East. 1971 - Store now has 226,000 sq.ft. Open House is held in March to announce new block -long Street Floor. 1' i, I4ICROPILMED RY JORM-'MICRbLAB" ' i CEDAR RAPIDS • DES MOINES .X J_� 1972 - John Miller retires President. I -3- Allan C. Peremsky elected 1974-75 The 2nd, 3rd and 4th Floors of the Granby Building are acquired and remodeled, 29,700 sq.ft. This expansion brings all five sales floors to one block long. Construction includes breaching of open space on all floors between the Granby and Barnes -Chamberlain Buildings. 1977 - Acquisition of the Arnold (McCarthy -Schindel) Building on Second Avenue, 15,721 sq.ft. A total of three floors and basement. 2nd and 3rd Floors have been occupied by the store since 1965, the Street Floor and Basement to be remodeled for a new Sports Center and Toys. Due to the removal of Sport Goods in Downstairs Store of the Main Building, extensive remodeling and re -location of three departments took place. 1978 - Remodeled and re -located departments on Street Floor, Second and Third. 1979 - Restaurant is redecorated and a new department (Women's World) is added on 2nd Floor. 1980 - The Third Avenue Skyway across Third Avenue at the Second Floor level is completed. A Junior Hi Shop and lobby (3,870 sq. ft) is added at the entrance to the Second Avenue Skywalk; and, the final area of the Granby acquisition is occupied on Street Floor. 1981 - The Men's Shoe Store is re -located in expanded area of North Granby (3,600 sq.ft.); and, construction begins on a final breaching of open space between the Granby and Barnes -Chamberlain Buildings; 13,290 sq.ft. This space results in new office space, relocation of mail room and house package areas; the Dock and Receiving Area is remodeled and Greeting Card Department expands. 1982 - Street Floor Service Desk is re -located. Construction of new Candy Shop on Street Floor is in progress. 1982 - Total Store: 300,000 sq.ft. The Corporation is headed by a strong team of experienced retailers and governed by a Board of Directors made up of 19 people all of whom are members of that management team. Top management is made up of the following people: MICROFIL14ED BY 1" JORM MICR(SLAB- { CEDAR RAPIDS • DES MOINES I! 99 � NJ _;o J_I I 1'r kI -4- 1 Chairman of the Board Robert C. Armstrong, Majority Stockholder, 60 years experience. President Allan C. Peremsky, 24 years experience '4 Vice President -Finance James L. Miller, 14 years experience Vice President -Operations Charles C. Gardner, 28 years experience Vice -President -Merchandising and General Merchandise Manager George M. Loshbaugh., 15 years experience Vice President -Sales Promotion Allyn Ndubauer, 18 years experience Vice President - Director Amelia Meffert, Armstrong Family Representative Secretary - Director of Personnel and Training Gary J. McCright, 12 years experience Treasurer George K. Baldwin, 22 years experience All of the above experience is with Armstrong's, Inc. and all have been associated with the company during its major growth period, the 1960's to the present. 141CROFILMED BY -JORM '_M1cR+L:1]A183_ CEDAR RAPIDS DES MDINES 1-1 1 MAY 251932 REDEVELOPER'S STATEMENT OF QUALIFICATIONS AND FINANCIAL RESPOT96Y S T O L F U S A �t33Cre CLERK. 1. a. Name of Redeveloper: Armstrong's, Inc. UT s b. Address and ZIP Code of Redeveloper: 222 3rd Ave., S.E., Cedar Rapids, Iowa 52401 •2. The land on which the Redeveloper proposes to enter into a contract for, or understanding with respect to, the purchase or lease of land from: i The City of Iowa City, Iowa in - City -University Project I in the City of Iowa City, State of Iowa, is described as follows: Parcel 64-1a 3. Is the Redeveloper a subsidiary of or affiliated with any other corporation or corporations or any other firm or firms? _ yes x no If yes, list each such corporation or firm by name and address, specify. its relationship to the Redeveloper, and identify the officers and directors or trustees common to the Redeveloper and such other corporation or firm. 4. a. The financial condition of the Redeveloper, as of January 31 , 1982 , is as reflected in the attached financial statement. (NBir Attach to this statement a certified financial statement showing the assets and the lWilities, inaWing contingent Ziabi.Zitias, fully itemized in accordance with accepted accounting standards and based on a proper audit. If the date of the certified financial statement precedes .the date of this submission by more than six months, also attach an interim balance sheet not more than 60 days old). b. Name and address of auditor or public accountant who performed the audit on which said financial statement is based: Mr. Frank A. Davey, Partner McGladrey Hendrickson & Co. 10th Floor, MNB Building Cedar Rapids, Iowa 52401 S. If funds for the development of the land are to be obtained from sources other than the Redeveloper's own funds, a statement of the Redeveloper's plan for financing the acquisition and development of the land: See Attached "Redeveloper's Financing Plan" 111CROFILFtED BY i l -DORM -MICR#LAB- �, I CEDAR RAPIDS DES MOINES 1 -- 1 _�a I a 99C�x I . I A 6. Sources and amount of cash available to Rodeveloper to meet equity requirements of the proposed undertaking: a. In banks: See Attached "Redeveloper's Financing Plan" Name, Address, and Zip Code of Bank Amount b. By loans frog affiliated or associated corporations or firms: Name. Address; and Zip Code of Source Amount e. By sale of readily salable assets: Description Market Mort gages or Liens 7. Nees and addresses of bank references: Brenton Bank & Trust Company 1st Ave. & 2nd St. N. E. Cedar Rapids, Iowa 52401 8. a. Has the Redeveloper or (if any) the parent corporation, or any subsidiary or affiliated corporation of Redeveloper or said -parent corporation, or any of the Redeveloper's officers or principal members, shareholders or investors, or.other interested parties (as listed in the responses to Items S, 6, and 7 of the Redeveloper', Statement for 1LbZie Dieeioeure and referred to - herein as "principals of .the Redeveloper"been adjudged bankrupt, either voluntary or involuntary, within the past 10 years? _ yes. -x--no If yes, give date, place, and under what name. b. Has the Redeveloper or anyone referred to above as !'principals of the Redeveloper" been indicted for or convicted of any felony within the past 10 years? _ yes .-.2L no If yes, give- for each case (1) date, (2) charge, (3) place, (4) Court, and (S) action taken. Attach any explanation deemed necessary. 9. a. Undertakings, comparable to the proposed redevelopment work, which have been completed by the Redeveloper or any of the principals of the Redeveloper, including identification and brief description of each project and date of completion: Relocation of Store in downtown Cedar Rapids 1959 Sundry Additions and Remodelings of Store in Cedar Rapids 1959 -Present 99 a- MICROFILMED BY F RM-MICRfL-ABR RAPIDS - DES MOINES ' i _y J- b. If the Redeveloper or any of the principals of the Iedeveloper hes ever been an employee, in a supervisory capacity, for construction contractor or builder on undertakings comparable to the proposed redevelopment work, name of such employee, name and address of employer, title of position, and brief description of work: Not Applicable 10. Other federally aided urban renewal projects under Title I of the Housing Act of 1949, as mended, in which the Redeveloper or any of the principals of the Redeveloper is or has been .the redeveloper, or a stockholder, officer, director or tiustes, or partner of such a redeveloper: Cedar River Tower, Civic Center, Parcel 22b and Parcel 22c, City of Cedar Rapids, Linn County, Iowa. Robert C. Armstrong as stockholder in Deb, Inc. 11. If the Redeveloper or a parent corporation, a subsidiary, an affiliate, or a principal of the Redeveloper is to participate in the development of 'he land as a construction contractor or builder: Not Applicable a. Name and address of such contractor or builder: b. Has such contractor or builder within the last 10 years ever failed to qualify as a responsible bidder, refused to enter into a contract after an award has been made, or failed to complete a construcction or development contract? If yes, explain: C. Total mount of construction or development work performed by such contractor or builder during the last three years: $ General description of such work: d. Construction contracts or developments now being performed by such contractor or builder: Date to be., Identification of Amount Coayleted Contract or Development Location 1 � MICROFILIdED BY I, _I ""JORM �"MICR�GAB � 1 CEDAR RAPIDS DES MOINES , 1 24.._ .%1 J_� e. Outstanding construction -contract bids of such contractor or builder: Awarding Agency Amount Date Opened 12. Brief statement respecting equipment, experience, financial capacity, and other resources available to such contractor or builder for the performance of the work involved in the redevelopment of the land, specifying particularly the qualifications of the personnel, the nature of the equipment, and the general experience of the contractor: Not Applicable 13. a. Does any amber of the governing body of the locality in which the Urban Renewal Area is situated or any other public official of the locality, who exercises any functions or responsibilities in the review or approval of the carrying out of the project under which the land covered by the Redeveloper's proposai.is being made available, have any director indirect personal interest -in the Redeveloper or in the redevelopment or rehabilita- tion of the property upon the basis of such proposal? _yes . X no If yes, explain. 14. Statements and other evidence of the Redeveloper's qualifications and financial responsibility (other than the financial statement referred to in Item 4a) are attached hereto and hereby made a part hereof as follows: None (except financial statement) CERTIFICATION' I (We)l -Armstrong's, Inc. certify that this Redeveloper's statement of Qualifications and Financial Responsi. bility and the attached evidence of the Redevelopers qualifications and financial responsibility, including financial statements, are true and complete to the best of my (our) knowledge and belief.2 Dated: Dated:75, /9f21 `�uL1✓- gnatureI.gnatu .;' President Secretary Title Title 2223rd Ave., S.E. Cedar Rapids, Iowa 52401 Address and ZIP Coe Address and ZIP Code + RICROFILMEO BY JORM"MICR#LA9I -� CEDAR RAPIDS DES MOIYES f 99 it J^� r�'t 1 If the Redeveloper is a corporation, this statement should be signed by the President and Secretary of the corporation; if an individual, by such individual; if a'part- nership, by one of the partners, if an entity not having a preeident and secretary, by one of its chief officers having knowledge of the financial status and qualifi- cations of the Redeveloper. Za fine finer or False Certification: Section 1001, Title 18, of the U.S. Cade, provides a of not more than 10,000 or imprisonment of not more than five years, or both, for knowingly and WiZZ ull making or using y f ng false writing or dor entry �+owing,tlu+ anise to contain any. 9aZaa,�ictioua or fraudulent statement or entry ,in a matter within the jurisdiction of any Department of the United Staten. MICROFILMED BY "CORM-MICR�CA9- � ] ' CEDAR RAPIDS DES'MOINES j 99� A -J ' 1 I 1 REDEVELOPER'S FINANCING PLAN i Y Armstrong's, Inc., intends to purchase the land and construct the 1 proposed retail store with funds generated from working capital, cash flows and interim construction loans. Upon completion of the redevelopment, Armstrong's, Inc., intends to sell and lease -back ti,e facilities under a long-term lease, subject to the. City's approval as provided in paragraph (5) of the offer. The redeveloper may request Industrial Revenue Bond financing for finishing, fixturing and equipping the building and the ultimate lessor may request L Industrial Revenue Bonds for permanent financing of the redeveloped 1 property. I 4 i i I i i QQ r MICROFILMED BY -----------.M "JORM.....ICR#LAW- .._� CEDAR RAPIDS • DES MOINES I L u W Part I of CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT By and Between Armstrong's, Inc. and The City of Iowa City, Iowa for Parcel 64 -la �adE� MAY 2 51982 ABBIE STOLFUS CITY CLERK r MICROFILIIED BY I--' 'JORIVI`"MICRIG'AB--.J-� CEDAR RAPIDS • DES MOINES I I i I 1 i I j `1 i 99 Z..' CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT AGREEMENT, consisting of this Part I and Part II annexed hereto and made a part hereof (which Part I and Part II are together hereinafter d of called "Agreement"), made on or as of the y 19 , by and between the City of Iowa City, Iowa, a public body corporate (which, together with any successor public body or officer hereafter designated by or pursuant to law, is hereinafter called the "City"), established pursuant to the statutes of the State of Iowa pertaining to Municipalities, Cities, Towns, and particularly Chapter 403 of the Code of Iowa as amended (hereinafter called Urban Renewal Act4) and having its office at the Civic Center in the City of Iowa City, State of Iowa, and _....._..no,g In (hereinafter called 'Redeveloper") and having an office for the transaction of business at 22 3rd Ave. S. E. _ Cedar Ra ids Iowa 52401 WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has undertaken a program* for the clearance and reconstruction or rehabilitation of, slum and blighted areas in the City, and in this connection is engaged in carrying out an urban renewal project (hereinafter called "Project") in an area (hereinafter called the "Project Area") located -in the City; and WHEREAS, as of the date of this Agreement there has been prepared and approved by the City an urban renewal plan for the Project, consisting of the Urban Renewal Plan, dated September 3, 1969, by Resolution No. 2157, as amended from time to time and as it may hereafter be further amended pursuant to law (as so "e)nose indicated by the context,hereinafter called "Urban Renewal Plan", WHEREAS, a copy of the Urban Renewal Plan as constituted on the date of the Agreement has been recorded among the land records for the place in which the Project Area is situated, namely, in the Office of the Johnson County Recorder in Book 558, at page 40, and has been filed in the Office of the Clerk of the City located at -the Civic Center in the City; and WHEREAS, in order to enable the City to achieve the objectives of the Urban Renewal Plan and particularly to make the land in the Project Area ava table for redevelopment by private enterprise for redevelopment in accordance with the Urban Renewal Plan, both the Federal Government and the City have undertaken to provide and have provided substantial aid and assistance through a Contract for Loan and Capital Grant dated September 2, 1970, in the case of the Federal Government; and WHEREAS, pursuant to Chapter 403, Code of Iowa as amended, the City has offered to sell and the Redeveloper is willing to purchase certain real property located in the Project Area and more particularly described in Schedule A annexed hereto and made a part hereof (which property as so described is hereinafter called "Property") and to redevelop the Property for and in accordance with the uses specified in the Urban Renewal Plan and in accordance with the Agreement; and I-1 q1 ?- n 141CRDEILMED BY L` r CORM MICRffIL 1 CEDAR RAM 1D5 •DES M014ES i 7 J,� r WHEREAS, the City believes that the redevelopment of the Property pursuant to the Agreement, and the fulfillment generally of the Agreement, are in the vital and best interests of the City and health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable Federal, State, and local laws and requirements under which the Project has been undertaken; and WHEREAS, the City has acquired title to certain property described in Schedule A hereof; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with,the other as follows: SECTION 1. SALE: PURCHASE PRICE Subject to all terms, covenants, and conditions of the Agreement, the City will sell the property described in Schedule A hereof to the Redeveloper for, and the Redeveloper will purchase the property from the City and pay therefor, the amount set forth in Schedule B hereof, subject to the terms and conditions of Section 2 of this Agreement. The amount set forth in Schedule B, hereinafter called "Purchase Price," is to be paid in cash or by certified check simultaneously with the delivery of the deeds conveying the property to the Redeveloper. SECTION 2. CONVEYANCE OF PROPERTY (a) Form of Deed. The City shall convey to the Redeveloper title to The property by Special Warranty .Deed (hereinafter called "Deed"). Such conveyance and title shall, in addition to the I condition subsequently provided for in Section 704, Part II, hereof, and to all other conditions, covenants, and restrictions set forth or referred to elsewhere in the Agreement, be subject to: (1) Such'easements as it shall have been necessary, pursuant to the Urban Renewal Plan, for the City to reserve, for itself or for future dedication or grant, for sewers, drains, water and gas distribution lines, electric, telephone, and telegraph installations, rights-of-way and access, or as described or ,referred to in Schedule A, description of property, attached hereto and referenced as a part hereof; (2) All conditions, covenants and restrictions contained in said Urban Renewal Plan and Part I and II of this Contract. I � (b) Time and Place for Deliver of Deeds. The City shall deliver the Deed and possession of the property to the Redeveloper upon payment of the purchase price in full upon such dates as called for in this Agreement. Conveyance shall be made at the principal office of the City and the Redeveloper shall accept such conveyance and pay to the City at such time and place the purchase price in full for each parcel delivered. I-2 R9 � MICROFILMED BY , 1. "JORM-MICR46LAB ! J CEDAR RAPIDSDES MOINES !� _y r L �i (c) Recording of Deeds. The Redeveloper shall promptly file the Deed for recording among the land records of Johnson County, Iowa. The redeveloper shall pay all costs for so recording said Deed. This Contract for Sale of Land for Private Redevelopment shall also be recorded at the Johnson County Recorder's Office. Upon said recording, the real property herein described shall be deemed taxable real estate under Iowa property tax law. Further, the Redeveloper shall be responsible for all such property taxes from the date of recording of this Contract of Sale of Land for Private Redevelopment. In the event legal title is not delivered to the Redeveloper, parties agree that said taxes will be prorated between the Redeveloper and -the City betewen applicable date of possession and the date of termination or expiration of this contract. (d) Delivery of the Abstract. The City will furnish to the Redeveloper in advance of the closing on the parcel, an abstract of title showing good marketable title in the City of Iowa City, Iowa, free and clear of all taxes, assessments .or other encumbrances except as herein specified. The abstract of title shall be at City expense and will be certified by a qualified abstracting company to the close of business as the closest practical date prior to the date of the deed of conveyance. The cost of obtaining an attorney's examination of the abstract for title opinion and/or the cost of obtaining title insurance, if required, shall be at the expense of the Redeveloper. (e) Delivery of Property. The City will deliver the property described in 5rhedule A hereof at the time set forth in Schedule C hereof. The Redeveloper agrees to pay for and accept title of such property as called for in this Agreement and agrees to begin development promptly on the property conveyed within the time. called for in this Agreement. Failure by the Redeveloper to pay for and accept delivery of the urban renewal land as called for herein will result in forfeiture of the deposits posted with the City by the Redeveloper attributable to such property, without limiting the City as to other remedies against the Redeveloper. In the event the City is unable to deliver the property as called for in Schedule C to the .Redeveloper, the Redeveloper shall have the option of rescinding the development contract by causing a written notice to be served upon the City of the exercise of such option. Upon receipt by the City of this notice, the City shall have sixty (60) days to cure the default by tendering the property covered in the notice to the Redeveloper. If the City is unable to cure the default within the sixty (60) days as provided herein, the Redeveloper shall, at its option, stand relieved of its obligation to accept the parcel involved and the City shall, in such event, promptly refund the Redeveloper's good faith deposit, referred to in Section 3 hereof. It is expressly understood and agreed that the City shall have no other liability, direct or indirect, to the Redeveloper on account of delay or inability to deliver land to the Redeveloper as called for in this Agreement and the Redeveloper's remedy in the event I-3 1 MICROFILMED BY i � "JORM MIC R(t/GA9 CEDAR RAPIDS • DES MOINES i 91A J of default by the City in delivery of urban renewal land is hereby specifically limited to rescinding the contract as to such land as provided in this paragraph. (f) Default by Developer. In the event the Redeveloper fails to accept delivery of and pay for the property described herein, as called for in this Agreement, the City may, at its option, call the entire Agreement in default, serve a proper notice of forfeiture upon the Redeveloper, and terminate this Agreement in its entirety. (g) Condition Precedent to Conveyance. The City's obligation to convey to the Redeveloper title to the property described herein is subject to the condition precedent concerning financing as set forth in Schedule C hereof. SECTION 3. GOOD FAITH DEPOSIT (a) Amount. The Redeveloper has, prior to or simultaneously with the execution of the Agreement by the City, delivered to the City a good faith deposit or a surety bond in the penal amount of Five Thousand ($5,000.00) Dollars, in which the City is the obligee, issued by Not Applicable a surety company regularly engaged in the issuance of such undertakings and on the .list of surety companies approved by the United States Treasury for at least such amount, or cash, or a certified check satisfactory to the City in the amount of Five Thousand ($5,000.00) Dollars, hereinafter called "Deposit," as security for the performance of the obligations of the Redeveloper to be performed prior to the return of the Deposit to the Redeveloper, or its retention by the City as liquidated damages, as the case may be, in accordance with the Agreement. The Deposit, if cash or certified check, shall be deposited in an account of the City in a bank or trust company selected by it. (b) Interest. The City shall be under no obligation to pay or earn interest on the Deposit, but if interest is payable thereon such interest when received by the City shall be promptly paid to the Redeveloper. (c) Retention by City. Upon termination of the Agreement as provided in Sections 703 and 704 of Part II hereof, the Deposit or the proceeds of the Deposit, if not theretofore returned to the Redeveloper pursuant to Paragraph (d) of this *Section, including all interest payable to such Deposit or the proceeds thereof after such termination, shall be retained by the City Agency as provided in Sections 703 and 704 of Part II hereof. (d) Return to Redeveloper. Upon issuance of both Certificates of Completion. as called for in Section 305 of Part II hereof, or upon termination of the Agreement as provided in Section 702 of Part II hereof, the Deposit shall be returned to the Redeveloper by the City. I-4 im- MICROFILMED BY -JOF7M -MIC R#LA 6 1 '� ' CEDAR RAPIDS • DES MOINES _10 S ji J I-5 9902. M1 MICROFILMED BY -JORM"-MICR46LAB- J CEDAR RAPIDS • DES MOINES I L , I SECTION 4. TIME FOR COMMENCEMENT AND COMPLETION OF IMPROVEMENTS The construction of the Improvements called for in this Agreement shall be commenced and completed in accordance with -Schedule D hereof. SECTION 5. TIME FOR CERTAIN OTHER ACTIONS 1 (a) Time for Submission of Construction Plans. The Redeveloper shall submit construction plans as called for in Section 301 of Part II of this Agreement as soon as possible subsequent to the time for conveyance set forth in Schedule C hereof. (b) Time fpr Submission of Corrected Plans. In the event that Preliminary Design Plans or Construction Plans are rejected by the City, as set forth in Section 301 of Part II of this Agreement, the Redeveloper shall submit corrected plans within thirty (30) days of said rejection. (c) If any hardship shall exist in complying with the .foregoing provisions of this Section, the Redeveloper may petition to the City in writing for an extension of time for performance of any part of this Section, setting forth in detail the reasons for needing such extension. SECTION 6. PERIOD OF DURATION OF COVENANT ON USE The covenants pertaining to the use of the Property, set forth in J Paragraph (a) of Section 401 of Part II hereof, shall remain in effect j from the date of the Deed until October 2, 1994, the period specified or ; referred to in the Urban Renewal Plan, and shall automatically extend for five year periods thereafter, unless changed by the City Council. • SECTION 7. NOTICES AND DEMANDS I 1 I A notice, demand, or other communication under the Agreement by either I - party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (i) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at Armstrong's. Inc. 222 3rd Ave., S. E. i Cedar Rapids. Iowa 52401 I AND (ii) in the case of the City, is addressed to or delivered personally to the: I-5 9902. M1 MICROFILMED BY -JORM"-MICR46LAB- J CEDAR RAPIDS • DES MOINES I I I City Manager Civic Center 410 E. Washington St. Iowa City, Iowa 52240 j or at such other address with respect to either such party as that may, from time to time, designate in writing and forward to the other as provided in this Section. SECTION 8. COUNTERPARTS The Agreement is executed in three (3) counterparts, each of which shall constitute ooe and the same instruments. SECTION 9. DEPOSIT AND FINANCING FEES FOR INDUSTRIAL REVENUE BONDS Fees will be determined at time of issuance of the Industrial Revenue Bonds. SECTION 10. SUBMISSION OF DETAILED FINANCIAL INFORMATION The Redeveloper shall submit to the City, on or beforect ber 1 or upon such earlier or later request of the City, the detai ed financial information necessary to support the issuance of industrial revenue bonds. • i I i I-6 it • " MICROFILMED BY 1. 1 ' JORM "MICR+L"AB ' l l CEDAR RAPIDS • DES MOINES I A � r I WITNESS WHEREOF, the City has caused the Agreement to be duly iIN executed in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk, and the Redeveloper has caused the Agreement to be duly executed in its name and behalf by its - Joint Venturer Partners, on or as of the day first above written. CITY OF IOWA CITY, IOWA ATTEST: BY: CITY CLERK MAYOR STATE OF IOWA ) ss. COUNTY OF JOHNSON ) On this_T day of A.D., 1981, before me, a Notary Public duly commissioned and qualified in and for said County and State, personally appeared John R. Balmer, Mayor of the City of Iowa City, Iowa, and Abbie Stolfus, City Clerk of said City, each being to me personally known to be the identical persons and officers named in the foregoing instrument, who executed the same under and by virtue of the authority vested in them by the City Council of said .City, and each for himself/herself acknowledged the execution thereof to be his/her voluntary act and deed for purposes herein expressed. I • I-7 I 1 { t i MICROFILMED BY '"DORM"'MICR#LAB- rl i CEDAR RAPIDS • DES MOINES 11 IJ I 94a. 1 �r I� SCHEDULE A LEGAL DESCRIPTION All that certain parcel or parcels of land located in the City of Iowa City, County of Johnson, State of Iowa, more particularly described as follows, to wit: To Be Provided By City of Iowa City. I-8 i 1 MICROFILMED BY JORM'MICR+ CAO i CEDAR RAPIDS • DES MDIRES —;w c 10 r i i I i I I - I, � r _ i i j , c 10 r 1'r L PARCEL NO. 64-1a SCHEDULE B PRICE OFFERED 1-9 MICROFILMED BY .1-JORM"MOCR+LAff CEDAR RAPIDS DES M0114ES j. PARCEL NO. 64-1a SCHEDULE B PRICE OFFERED 1-9 MICROFILMED BY .1-JORM"MOCR+LAff CEDAR RAPIDS DES M0114ES PARCEL NO. 64-1a w SCHEDULE C TIME FOR CONVEYANCE I-10 DATE October 1, 1982 r------ - ------- --i i MICROFILMED BY 1 1_ I—JORM'-MICR+L'A13 CEDAR RAPIDS • DES MOINES 0 A SCHEDULE D Improvements on the parcel listed below will commence and be completed in accordance with the following schedule: PARCEL NO. COMMENCE COMPLETION 64-1a October 1, 1982 August 1, 1984 MICP.OFILMED BY I—"JORM--MIC R+LAB CEDAR RAPIDS DES MOINES I i i I j i j 1 j i i i i I j I II 1 c i I } SCHEDULE D Improvements on the parcel listed below will commence and be completed in accordance with the following schedule: PARCEL NO. COMMENCE COMPLETION 64-1a October 1, 1982 August 1, 1984 MICP.OFILMED BY I—"JORM--MIC R+LAB CEDAR RAPIDS DES MOINES I 99a A ;1 i j I j i j i i 99a A Part II of CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT By and Between Armstrong's Inc and The Citv of Iowa Citv, Iowa for Parcel 64-1a ' Ml CROFILMED BY 'JORM'-MICR�LAH�` CEDAR RAPIDS • DES MOINES i •t i i I I j i i Part II of CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT By and Between Armstrong's Inc and The Citv of Iowa Citv, Iowa for Parcel 64-1a ' Ml CROFILMED BY 'JORM'-MICR�LAH�` CEDAR RAPIDS • DES MOINES i i i I I j i i i i � i 5 l i j a r ARTICLE I. PREPARATION OF PROPERTY FOR REDEVELOPMENT SECTION 101. DEMOLITION AND SITE CLEARANCE. It is agreed that the City shall convey and the redeveloper shall accept the property set forth in Schedule A of this agreement AS IS (except that the City shall remove the pavement of the existing parking lot prior to the Redeveloper's obligation to commence construction) and it is expressly agreed that the City makes no warranty, express or implied, regarding subsurface conditions and that the City shall have no liability for any damages arising from subsurface conditions. It is further agreed that any contracts or specifications for site demolition and clearance which may have been examined by the redeveloper were examined for information purposes only, and that the City shall assume no liability for any defects or variance from the specifications for work previously completed. SECTION 102. CITY'S RESPONSIBILITIES -FOR CERTAIN OTHER ACTIONS. The City, without expense to the Redeveloper or assessment or claim against the property, shall cause the restriction of traffic and construction of public improvements on existing street rights-of-way,. and the construction of parking structures as specifically set forth in the Urban Renewal Plan. The City reserves the right to make future modifications to the traffic circulation system and to the public improvements when such changes are deemed necessary and in the public interest. SECTION 103. WAIVER OF CLAIMS AND JOINING IN PETITIONS BY REUEVhLOrtK. The Redeveloper hereby waives(as the purchaser of the Property under the Agreement and as the owner after the conveyance of the Property provided for in the Agreement) any and all claims to award of damages, if any, to compensate for the closing, vacation, restriction, change of restriction or change of grade of any street, alley, or other public right-of-way within or fronting or abutting on, or adjacent to, the Property which, pursuant to Section 102 hereof, is to be closed or vacated, or the grade of which is to be changed, and shall upon the request of the City subscribe to, and join with, the City in any petition or proceeding required for such vacation, dedication, change of grade, and, to the extent necessary, rezoning, and execute any waiver or other document in respect thereof. ARTICLE II. RIGHTS OF ACCESS TO PROPERTY SECTION,201. RIGHT OF ENTRY FOR UTILITY SERVICE. The City reserves for itself, the City, and any public utility company, as may be appropriate, the unqualified right to enter upon the Property at all reasonable times for the purpose of reconstructing, maintaining, repairing, or servicing the public utilities located within the Property boundary lines and provided for in the easements described or referred to in Paragraph (a), Section 2 of Part I hereof. SECTION 202. REDEVELOPER NOT TO CONSTRUCT OVER UTILITY EASEMENTS. The Redeveloper shall not construct any building or other structure or improvement on, over, or within the boundary lines of any easement for public utilities described or referred to in Paragraph (1), Section 2 of Part I hereof, unless such construction is provided for in such easement or has been approved in writing by the City Engineer or the authorized representative of an affected public utility. MICROrILMED BY "JORM MIC R4LAB �l Z CEDAR RAPIDS • DES MOINES I i _y rv, SECTION 203. ACCESS TO PROPERTY. Prior to the conveyance of the Property by the City to the Redeveloper, the City shall permit representatives of the Redeveloper to have access to any Property to which the City holds title, at all reasonable times for the purpose of obtaining data and making various tests concerning the Property necessary to carry out the Agreement. After the conveyance of the Property by the City to the Redeveloper, the Redeveloper shall permit employees, agents or representatives of the City access to the Property at all reasonable times for the purposes of the Agreement, including, but not limited to, inspection of all work being performed in connection with the construction of the Improvements. No compensation shall be payable nor shall any charge be made in any form by any party for the access provided for in this Section. - ARTICLE III. CONSTRUCTION PLANS; CONSTRUCTION OF IMPROVEMENTS; CERTIFICATE OF COMPLETION SECTION 301. PLANS FOR CONSTRUCTION OF IMPROVEMENTS. Whenever used in this Agreement, the term preliminary design plans shall include a site plan and preliminary plans for Improvements which*clearly show the size, location, and external appearance of any structures, along with such other information as is necessary to determine the intentions of the Redeveloper. These documents have been prepared by the City architect and will be utilized and accepted by the Redeveloper as an integral part of the Redeveloper's offer. The term "construction plans" shall mean all plans, specifications, drawings, or other information required to be submitted for issuance of any permit called for by applicable codes and ordinance subsequent to the designation. of the Redeveloper. The term "Improvements", as used in this Agreement, shall be deemed to make reference to any buildings, structures, renovations, or other improvements as provided for and specified in this Agreement, preliminary design plans, and construction plans. The Redeveloper shall, prior to the construction of the Improvements called for in this Agreement, submit for approval by the City Council construction plans, and such other information as is necessary for the City Council to determine the intentions of the redeveloper. Approval of such construction plans by the City Council shall in no way relieve the Redeveloper of the responsibility for obtaining all required permits and otherwise fully complying with all applicable state and local codes and ordinances. Following approval of the construction plans by the City Council, the Redeveloper shall obtain all permits required by applicable City codes and ordinances. All work with respect to the Improvements to be constructed or provided by the Redeveloper on the property shall be in conformity with the preliminary design plans and construction plans as approved by the City Council. SECTION 302. CHANGES IN CONSTRUCTION PLANS. If the Redeveloper desires to make any changes in the construction plans after their approval by the City Council, the Redeveloper shall submit the proposed change to the City Council for 'its approval. Changes in construction plans as defined herein, may be approved by the Department of Housing and Inspection II -2 141CROFILlIED By 'JORM MICR#LAE3 � CEDAR RAPIDS DES M014ES 9qa it Services, provided that such changes will not cause the Improvement to be constructed in a manner not consistent with the preliminary design plans as approved by Council. Ine xeoeveioper agrees for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof, and the Deed shall contain covenants on the part of the Redeveloper for itself and such successors and assigns, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently pursue to completion the redevelopment of the Property through the construction of the Improvements thereon, and that such construction shall in any event be begun withip the period specified in Section 4 of Part I hereof and be completed within the period specified in such Section 4. It is intended and agreed, and the Deed shall so expressly provide, that such agreements and covenants shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the community and the City and enforceable by the City against the Redeveloper and its successors and assigns to or of the Property or any part thereof or any interest therein. SECTION 304. PROGRESS REPORTS. Subsequent to conveyance of the Property, or any part thereof, to the Redeveloper, and until construction of the Improvements has been completed, as set forth in Section 305 hereof, the Redeveloper shall make reports, setting forth the status of Improvements, construction schedule, and such other information as may reasonably be requested by the City, as to the actual progress of the Redeveloper with respect to such construction. SECTION 305. CERTIFICATE OF COMPLETION. (a) Within thirty (30) days after completion of the Improvements in accordance with those provisions of the Agreement relating solely to the obligations' of the Redeveloper to construct the Improvements (including the dates for beginning and completion thereof), the City will furnish the Redeveloper with an appropriate instrument so certifying. Such certification by the City shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the dates for the beginning and completion thereof: Provided, that if there is upon the Property a mortgage insured, or held or owned, by the Federal Housing Administration and the Federal Housing Administration shall have determined that all buildings constituting a part of the Improvements and covered by such mortgage are, in fact, substantially completed in accordance with the plans and are ready for occupancy, then, in such event, the City and the Redeveloper shall accept the determination of the Federal Housing Administration as to such completion of the construction of the Improvements in accordance with the plans, and, if the other agreements and covenants in the Agreement obligating the Redeveloper in respect of the construction and completion of the Improvements II -3 991;- IAICAOFILIAED BY _I I ' JORM MIC RALAB ±� � CEDAR RAPIDS DES MOINES I117 have been fully satisfied, the City shall forthwith issue its certification provided for in this Section. Such certification and such determination shall constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any holder of a mortgage, or any insurer of any mortgage, securing money loaned to finance the Improvements, or any part thereof. (b) With respect to such individual parts or parcels of the Property which, if so provided in Part I (Schedule D) hereof, the Redeveloper may convey or lease as the Improvements to be constructed thereon are completed, the City will also, upon proper completion of the Improvements relating 'to any such part or parcel, furnish the Redeveloper with an appropriate instrument, certifying that such Improv'Aments relating to any such part or parcel have been made in accordance with the provisions of the Agreement. Such certification shall mean and provide (1) that any party purchasing or leasing such individual part or parcel pursuant to the authorization herein contained shall not (because of such purchase or lease) incur any obligation with respect to the construction of the Improvemetns relating to such part or parcel or to any other part or parcel of the Property; and (2) that neither the City nor any other party shall thereafter have or be entitled to exercise with respect to any such individual part or parcel so sold (or, in the case of lease, with respect to the leasehold interest) any rights or remedies or controls that it may otherwise have or be entitled to exercise with respect to the construction of Improvements as called for herein. (c) Each certification provided for in this Section shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property, including the Deed. If the City shall refuse or fail to provide any certification in accordance with the provisions of this Section, the City shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for the Redeveloper to take or perform in order to obtain such certification. ARTICLE IV. RESTRICTIONS UPON USE OF PROPERTY SECTION 401. RESTRICTIONS ON USE. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Property, or any part thereof, and the Deed shall contain covenants on the part of the Redeveloper for itself, and such successors and assigns, that the Redeveloper, and such successors and assigns, shall: (a) Devote the Property to, and only to and in accordance with, the uses specified in the Urban Renewal Plan; and (b) Not discriminate upon the basis of race, color, creed, religion, age, disability, sex or national origin in the sale, lease, or rental or II -4 99A q MICROFILMED BY 1. JO RM MIC R4LA13 1 J CEDAR RAPIDS • DES MOIxES � y _y h,. r /11 in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof. (c) All advertising (including signs) for sale and/or rental of the whole or any part of the Property shall include the legend, "An Open Occupancy Building" in type or lettering of easily legible size and design. The word "Project" or "Development" may be substituted for the word "Building" where circumstances require such substitution. UPON PERIOD Ur uunnllull. 16 10 II...I PIG. uur uy.---, - . . - ---- ---- -.._.. __ _.- -__. provide, that the agreements and covenants provided in Section 401 hereof shall be ,covenants running with the. land and that they shall, in any event, and without regard to technical classifications or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, its successors and assigns, any successor in interest to the Property, or any part thereof, and the United States (in the case of the covenant provided in subdivision (b) of Section 401 hereof), against the Redeveloper, its successors and assigns and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. It is further intended and agreed that the agreement and covenant provided in subdivision (a) of Section 401 hereof shall remain in effect for the period of time, or until the date, specified or referred to in Section 6 of Part I hereof (at which time such agreement and covenant shall terminate) and that the agreements and covenants provided in subdivision (b) of Section 401 hereof shall remain in effect without limitation as to time: Provided, that such agreements and covenants shall be binding on the Redeveloper itself, each successor in interest to the Property, and every part thereof, and each party in possession or occupancy, respectively, only for such period as such successor or party shall have title to, or an interst in, or possession or occupancy of, the Property or part thereof. The terms "uses specified in the Urban Renewal Plan" and "land use" referring to provisions of the Urban Renewal 775n, or similar language, in the Agreement shall include the land and—all building, housing, and other requirements or restrictions of the Urban Renewal Plan pertaining to such land. SECTION 403. CITY AND UNITED STATES RIGHTS TO ENFORCE. In amplification, and not in restriction, of the provision of the preceding Section, it is intended and agreed that the City and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Section 401 hereof, and the United States shall be deemed a beneficiary of the covenant provided in subdivision (b) of Section 401 hereof, both for and in their or its own right and also for the purposes of protecting the interest of the community and other parties, public or private in whose favor or for whose favor or for whose benefit such agreements and covenants have been provided. Such agreement and covenants shall (and the Deed shall so state) run in favor of the City and the United States, for the entire period during which such agreements and covenants shall be in force and effect, without regard to whether the City or the United States has at any time been, remains, or in an owner of any land or II -5 1 141CROFILNED BY -JORM MIC R6LA13 _1 CEDAR RAPIDS • DES MOINES i I � 942 9 r I 1 MICROFILMED BY !• " JORM-"MIC R#LAB CEDAR RAV IDS • DES MOINES j . L interest therein to or in favor of which such agreements and covenants relate. The City shall have the right, in the event of any breach of any such agreement or covenant, and the United States shall have the right in the event of any breach of covenant provided in subdivision (b) of Section 401 hereof, to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other propery proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled. ARTICLE V. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER SECTION 501. REPRESENTATIONS AS TO REDEVELOPMENT. The Redeveloper represents and agrees that its purchase of the Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of the redeveloment of the Property and not for speculation in land holding. The Redeveloper further recognizes that, in view of (a) the importance of the redevelopment of the Property to the general welfare of the community; (b) the substantial financing and other public aids that have been made available by law and by the Federal and local Governments for the purpose of making such redevelopment possible; and (c) the fact that a transfer of the stock in the Redeveloper or of a substantial part thereof, or any other act or transaction involving or resulting in a significant change in the ownership or distribution of such stock or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, is for practical purposes a transfer or disposition of the Property then owned by the Redeveloper, the qualifications and identity of the Redeveloper, and its stockholders, are of particular concern to the community and the City. The Redeveloper further recognizes that it is because of the recognition of such qualifications and identity that the City is entering into the Agreement with the Redeveloper, and, in so doing, the City is further willing to accept and rely on the obligations. of the Redeveloper for the faithful co performance of all undertakings and venants in the Agreement. SECTION 502. PROHIBITION AGAINST TRANSFER OF UwntKbHLF UK LUMIKUL Ur REDEVELOPER. For the foregoing reasons, the Redeveloper agrees for itself, and all persons holding an interest therein, their heirs, successors and assigns that there shall be no change or transfer of ownership or control by any person or combination of persons owning or controlling ten (10) percent or more interest in the Redeveloper through sale, assignment, merger, increased capitalization or by any other means, without the express written approval of the City. With respect to this provision, the Redeveloper and the parties signing the Agreement on behalf of the Redeveloper represent that they have the authority of all persons holding interest therein to agree to this provision on their behalf and to bind them with respect thereto. II -6 99a A SECTION 503. PROHIBITION AGAINST TRANSFER OF PROPERTY AND ASSIGNMENT OF AGREEMENT. Also, for the foregoing reasons the Redeveloper represents and agrees for itself, and its successors and assigns, that: (a) Except only (1) by way of security for, and only for (i) the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to acquiring the property and making the Improvements under the Agreement, and (ii) any other purpose authorized by the Agreement, and (2) as to any individual parts or parcels of the Property on which the Improvements to be constructed thereon have been completed, and which, by the terms of the Agreement, the Redeveloper is authorized to convey or lease as such Improvements are completed, the Redeveloper (except as so authorized) has not made or created, and that it will not, prior to the proper completion of the Improvements as certified by the City, make or create, or suffer to be made or created, j any total or partial sale, assignment, conveyance, or lease, or any trust j or power, or transfer in any other mode or form of or with respect to the i Agreement or the Property, or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the City: Provided, that prior to the issuance by the City of ; the certificate provided by in Section 305 hereof as to completion of construction of the Improvements, the Redeveloper may enter into any agreement to sell, lease, or otherwise transfer; -after the issuance of s such certificate, the Property or any part thereof or interest therein, ! which agreement shall not.provide for payment of or on account of the purchase price or rent for the Property, or the part thereof or the interest therein to be so transferred, prior to the issuance of such certificate. i (b) The City shall -be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval that: (1) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the City, necessary and adequate to fulfill the obligations undertaken in the Agreement by the Redeveloper (or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part). (2) Any proposed transferee, by instrument in writing satisfactory to the City and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Redeveloper under the Agreement and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject (or, in the event the transfer is of or related to part of the Property, such obligations, II -7 I 1 I 1 nIcRDElLMED BY j "DORM" MICR6LA13- ..1 ,•I j CEDAR RAPIDS • DES 140114ES •� 7 I i conditions, and restrictions to the extent that they relate to such part): Provided, that any instrument or agreement which purports to transfer any interest whatsoever caused by this agreement without the express written approval of the City, is null and void. (3) There shall be submitted to the City for review all instruments and other legal documents involved in effecting transfer; and if approved by the City, its approval shall be indicated to the Redeveloper in writing. (4) The consideration payable for the transfer by the transferee or on its behalf shall not exceed an amount representing the actual cast (including carrying charges) to the Redeveloper of the Property (or allocable to the part thereof or interest therein transferred) and the Improvements, if any, theretofore made thereon by it; it being the intent of this provision to preclude assignment of the Agreement or transfer of the Property for profit prior to the issuance of the certificate of completion as set forth in Section 305 of this Agreement. The City shall be entitled to increase the Purchase Price to the Redeveloper by the amount that the consideration payable for the assignments or transfer is in excess of the amount that may be authorized pursuant to this subdivision (4), and such consideration shall, to the extent it is in excess of the amount so authorized, belong to and forthwith be paid to the City. (5) The Redeveloper and its transferee shall comply with such other conditions as the City may find desirable in order to achieve and safeguard the purposes of the Urban Renewal Act and the Urban Renewal Plan. Provided, that in the absence of specific written agreement by the City to the contrary, -no such transfer or approval by the City thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by the -Agreement or otherwise with respect to the construction of the Improvements, from any of its obligations with respect thereto. SECTION 504. INFORMATION AS TO HOLDERS OF INTEREST IN REDEVELOPER. In order to assist in the effectuation of the purposes of this Article V and the statutory objectives generally, the Redeveloper agrees that during the period between execution of the Agreement and completion of the Improvements as certified by the City, (a) the Redeveloper will promptly notify the City of any and all changes whatsoever in the ownership or control of interest, legal or beneficial, or of any other act or transaction involving or resulting in any change in the ownership of such interest or in the relative distribution thereof, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, of which it or any of its officers have been notified or otherwise have knowledge or information; and II -8 �I 141C6FILMED BY DORM -MIC ES CEDAR RAPIDS • DESES MOINES I � I ■ku _y r (b) the Redeveloper shall, at such times as the City may request, furnish the City with a complete statement, subscribed and sworn to by the President or other executive officer of the Redeveloper, setting forth all of the holders of interest in the Redeveloper and the extent of their respective holdings, and in the event any other parties have a beneficial interest in such holdings their names and the extent of the Redeveloper, any specific inquiry made by any such officer, of all parties who on the basis of all such records own ten (10) percent or more of the interest in the Redeveloper, and by such other knowledge or information as such officer shall have. Such lists, data, and information shall in any event be furnished the City immediately prior to the delivery of the Deed to the Redeveloper and as a condition precedent thereto, and annually thereafter on the anniversary of the date of the Deed until the issuance of a certificate of completion of all the Property. ARTICLE VI. MORTGAGE FINANCING; RIGHTS OF MORTGAGEES SECTION 601. LIMITATION UPON ENCUMBRANCE OF PROPERTY. Prior to the completion of the Improvements, as certified by the City,' neither the Redeveloper nor .any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrances or lien to be made on or attach to the Property, except for the purposes of obtaining (a) funds only to the extent necessary for making the Improvements, and (b) such additional funds, if any, in an amount not to exceed the Purchase Price paid by the Redeveloper to the City. The Redeveloper (or successor in interest) shall notify the City in advance of'any financing, secured by mortgage or other similar lien instrument, it proposes to enter into with respect to the Property, or any part thereof, and in any event it shall promptly notify the City of any encumbrance or lien that has been created on or attached to the Property, whether by voluntary act of the Redeveloper or otherwise. For the purposes of such mortgage financing as may be made pursuant to the Agreement, the Property may, at the option of the Redeveloper (or successor in interest), be divided, provided that such subdivision, in the opinion of the City, is not inconsistent with the purposes of the Urban Renewal plan and the Agreement and is approved in writing by the City. SECTION 602. MORTGAGEE NOT OBLIGATED TO CONSTRUCT. Notwithstanding any of the provisions of the Agreement, including but not limited to those which are or are intended to be covenants running with the land, the holder of any mortgage authorized by the Agreement (including any such holder who obtains title to the Property or any part thereof as a result of foreclosure proceedings, or action in lieu thereof, but not including (a) any other party who thereafter obtains title to the Property or such part from or through such holder, or (b) any other purchaser at foreclosure sale other than the holder of the mortgage itself) shall in no way be obligated by the provisions of the Agreement to construct or II -9 MICROFILIIED BY � DORM MIC R46LAE! CEDAR RAPIDS • DES MOINES 1 l J._ _y r complete the Improvements or to guarantee such construction or completion; nor shall any covenant or any other provision in the Deed be construed to so obligate such holder: Provided, that nothing in this re Section or any other Section or provision of the Agement shall be deemed or construed to permit or authorize any such holder to devote the Property or any part thereof to any uses, or to construct any improvements thereon, other than those uses or improvements provided or permitted in the Urban Renewal Plan and in the Agreement. SECTION 603. COPY OF NOTICE OF DEFAULT TO MORTGAGEE. Whenever the City shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations or covenants under the Agreement, the City shall at the same time forward a copy of'such notice or' demand to each holder of any mortgage authorized by the Agreement at the last address of such holder shown in the records of the City. SECTION 604. MORTGAGEE'S OPTION TO CURE DEFAULTS. After any breach or default referred to in Section 603 hereof, each such holder shall (insofar as the rights of the City are concerned) have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Property covered by its mortgage) and to add the cost thereof to the mortgage debt and the lien of its mortgage: Provided, that if the breach or default is with respect to construction of the Improvements, nothing contained in this Section or any other Section of the Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Improvements (beyond the extent necessary to conserve or protect Improvements or construction already made) without first having expressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete, in the manner provided in the Agreement, the Improvements on the Property or the part thereof to which the lien or title of such holder Any such holder who shall l properly complete the Improvements relating to the Property or applicable part thereof shall be entitled, upon written request made to the City, to a certification or certifications by the City to such effect in the manner provided in Section 305 of the Agreement, and any such certification shall, if so requested by such holder mean and provide that any remedies or rights with respect to recapture of or reversion or revesting of title to the Property that the City shall have or be entitled to because of failure of the Redeveloper or any successor in interest to the Property, or any part thereof, to cure or remedy any default with respect to the construction of the Improvements on other parts or parcels of the Property, or became of another he ment successor,dshalltnot apply to thetpart9oreparcel by fhRedeveloper Property in or breach of or such yto which such certification relates. SECTION 605. G11Y'z) uriiun iu rn -- --- In any case, where, subsequent to default or breach by the Redeveloper (or successor in interest) under the Agreement, the holder of any mortgage on the Property or part thereof II -10 1 141CROFILMED BY ; --JORM -MIC RfSLA B CEDAR RAPIDS DES MOINES 9901. 1 J r (a) has, but does not exercise, the option to construct or complete the Improvements relating to the Property or part thereof covered by its mortgage or to which it has obtained title, and such failure continues for a period of sixty (60) days after the holder has been notified or informed of the default or breach; or (b) undertakes construction or completion of the Improvements but does not complete such construction within the period as agreed upon by the City and such holder (which period shall in any event be at least as long as the period prescribed for such construction or completion in the Agreement), and such default shall not have been cured within sixty (60) days after written demand by the City so to do, the City"shall (and every mortgage instrument made prior to completion of the Improvements with respect to the Property by the Redeveloper or successor in interest shall so provide) have the option of paying to the holder the amount of the mortgage debt and securing an assignment of the mortgage and the debt secured thereby, or, in the event ownership of the Property (or part thereof) has vested in such holder by way of foreclosure or action in lieu thereof, the City shall be entitled, at its option, to a conveyance to it of the Property or part thereof (as the case may be) upon payment to such holder of an amount equal to the sum of: (i) the mortgage debt at the time of foreclosure or action in lieu thereof (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); (ii) all expenses with respect to the foreclosure; (iii) the net expense, if any (exclusive of general overhead), incurred by such holder in and as a direct result of the subsequent management of the Property; (iv) the costs of any Improvements made by such holder; and (v) an amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage debts and such debt had continued in existence. SECTION 606: CITY'S OPTION TO CURE MORTGAGE DEFAULT. In the event of a default or breach prior to the completion of the Improvements by the Redeveloper, or any successor in interest, in or of any of its.obligations under, and to the holder of, any mortgage or other instrument creating an encumbrance or lien upon the Property or part thereof, the City may at its option cure such default or breach, in which cases the City shall be entitled, in addition to and without limitation upon any other rights or remedies to which it shall be entitled by the Agreement, operation of law, or otherwise, to reimbursement from the Redeveloper or successor in interest of all costs and expenses incurred by the City in curing such default or breach and to a lien upon the Property (or. the part thereof to which the mortgage, encumbrance, or lien relates) for such reimbursement: Provided, that any such lien shall be subject always to the lien of including any lien contemplated, because of advances yet to be made, by) any then existing mortgages on the Property authorized by the Agreement. SECTION 607. MORTGAGE AND HOLDER. For the purposes of the Agreement: The term 'mortgage shall include a deed of trust or other instrument creating an encumbrance or lien upon the Property, or any part thereof, as security for a loan. The term "holder" in reference to a mortgage shall include any insurer or guarantor of any obligation or condition secured by MICROFILMEDBY 1 I JORM MICR6LAe1 CEDAR RAPIDS • DES MOIRES 9900L 1 (.w such mortgage or deed of trust, including, but not limited to, the Federal Housing Commissioner, the Administrator of Veterans Affairs, and any successor in office of either such official. ARTICLE VII. REMEDIES SECTION 701. IN GENERAL. Except as otherwise provided in the Agreement, in the event of any default in or breach of the Agreement, or any of its terms or conditions, by. either party hereto, or any successor to such party, such party (or successor) shall, upon written notice from the other, proceed immediately to cure or remedy such default or breach, and, in any event, within sixty (60) days after receipt of such notice. In case such action is not taken or not diligently pursued, or the default or breach shilll not be cured or remedied. within a reasonable time, the aggrieved party may institute such proceeedings as may be necessary or desirable in its option to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default or breach of its obligations. at6I1un iuc. ItMNAllUn !:$Y RtUhVtLUPER PRIOR TO CONVEYANCE.' In the event that the City does not tender conveyance -of the Property, or possession thereof, in the manner and condition, and by the date, provided in this Agreement, and any such failure shall not be cured within sixty (60) days after the date of written demand by the Redeveloper, and the City is unable to demonstrate, to the reasonable satisfaction of the Redeveloper that the defects, cloud, or other deficiencies in or on title involved, or the part of the property to which it relates, is of such nature that the Redeveloper will not be hampered or delayed in the Sonstruction of the improvements by taking title and possession subject to such defects, the City will refund to the Developer any good faith deposit tendered by the Redeveloper for such property or the portion of said good faith deposit reasonable allocableto .the portion of the property not conveyed and this agreement with respect of the property not conveyed shall be terminated, provided, it is hereby expressly agreed that in the event this agreement is terminated pursuant to this Section each party to this agreement shall be solely responsible for all expenses incurred or obligated'by it and shall have no claim against the other party. SECTION 703. TERMINATION BY CITY PRIOR TO CONVEYANCE. In the event that prior to conveyance of the Property to the Redeveloper, the Redeveloper is in violation of Section 502 of Part II of this Agreement or the Redeveloper does not pay the Purchase Price and take title to the Property upon tender of conveyance by the City pursuant to this Agreement, or the Redeveloper fails to cure any default or failure within thirty 30 days from the date of written demand by the City, then this Agreement, and any rights of the Redeveloper, or any assignee or transferee, in this Agreement, or arising therefrom with respect to the City or the Property, shall, at the option of the City, be terminated by the City, in which event, as provided in Paragraph C, Section 3 of Part I hereof, the Deposit or any portion thereof may be retained by the City as liquidated damages and as its property without any deduction, offset, or recoupment whatsoever, and neither the Redeveloper (or assignee or transferee) nor the City shall have any further rights against or liability under this Agreement to the other in respect to the property or part thereof for which the deposit has been retained. II -12 i MICROFILMED BY L _-JORM MICR46LAB CEDAR RAPIDS • DES MOINES an 1 J r\ 1� SECTION 704 REVESTING TITLE IN CITY SU85EQUtnI iu bufVClnn G I� REDEVELOPER. In the event that subsequent to conveyance of the Property or any part thereof to the Redeveloper and prior to completion of the Improvements as certified by the City red reement in (a) the satisfactory pfo mer o and es oins he manner and byt plans as �the dates e respectively provided in this Agreement; or (b) the Redeveloper (or successor in interest) shall default in or violate its obligations with respect to the construction of the Improvements (including the nature and the dates of for the beginning and gompletion thereof), or shall abandon or substantially suspend construction work, and any such default, violation, abandonment, or suspension shall not be cured, ended, or remedied within ninety (90) days after written demand by the City; or (c) the Redeveloper (or successor in interest) shall fail thereof when real estate taxes or assessments on the Property or any part due, or shall place thereon any encumbrance or lien unauthorized by the Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to the City made for such payment, removal, or discharge, within ninety (90) days after written demand by the City; or (d) the Redeveloper violates the provision of Section 502 of Part II of this Agreement and such violation shall not be cured within sixty (60) days after written demand by the City to the Redeveloper, then the City shall have the right to re-enter and take possession of the Property and all Improvements located thereon to terminate (and revest in the City) the property conveyed by the Deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Redeveloper shall be made upon, and that the Deed shall contain, a condition subsequent to the effect that in the event of any default, failure, violation, or other action or inaction by the Redeveloper specified in subdivisions (a), (b), (c) and (d) of this Section 704, failure on the part of the Redeveloper to remedy, end, or abrogate such default, failure, violation, or other action or inaction, within the period and in the manner stated in such subdivisions, the City at its option may declare a termination in favor of the City of the title, and of all the rights and interests in and to the Property conveyed by the Deed to the Redeveloper and Improvements constructed thereon, and that such title and all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the Property and any Improvements constructed thereon, shall revert to the City: Provided, that such condition subsequent and any revesting of title as a result thereof in the City (1) shall always be subject to and limited bthe lien olf anotmdefeat, render invalid, or limit in any y, 1' I - MICROFILMED BY �1.. JORM-MICR6LA13 I CEDAR RAPIDS - DES MOINES I I I I 99a- _�4 !L/ i authorized by the Agreement, and (ii) any rights or interests provided in the Agreement for the protection of the holders of such mortgages; and (2) shall not apply to individual parts or parcels of the Property (or, in the case of parts or parcels leased, the leasehold interest) on which the Improvements to be constructed thereon have been completed in accordance with the Agreement and for which a certificate' of completion is issued therefore as provided in Section 305 hereof or on which the Improvements to be constructed thereon are in fact proceeding with construction on an approved schedule and for which a certificate of completion would be issued in normal course. In addition to and without in any way limiting the City's right to re-entry as provided for in this Section, the City shall have the right to retain the Deposit or any portion thereof, as provided in Paragraph C, Section 3 of Part I hereof, without any deduction, offset or recoupment whatsoever, in the event of a default, violation or failure of the Redeveloper as specified in this Section. vpun 6— vuveb Llny In Lne 6iLy o7 L1LIe To Lne Property or a portion thereof and any Improvements thereon, or any part thereof as provided in Section 704, the City shall, pursuant to its responsibilities under State law, use its best efforts to resell the Property or part therof (subject to such mortgage liens'and leasehold interest as in Section 704 set forth and provided) as soon and in such manner as the City shall find feasible the Improvements or such other improvements in their stead as shall be satisfactory to the City and in accordance with the uses specified for such Property or part thereof in the Urban Renewal Plan. Upon such resale of the Property, the proceeds thereof shall Te applied (a) First, to reimburse the City, on its own behalf, for all costs and expenses incurred by the City, including but not limited to salaries of personnel, in connection wiht the recapture, management, and resale of the Property or part thereof (but less any income derived by the City from'the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property' or part thereof (or, in the event the Property is exempt from taxation or assessment or such charges during the period of ownership thereof by the City, the amount, if paid, equal to such taxes, assessments, or charges (as determined by the City assessing official) as wouldhave been payable if the Property or part thereof at the time•of revesting of title thereto in the City or to discharge or prevent from attaching or being made any subsequent encumbrance or liens due to obligations, defaults, or acts of the Redeveloper, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion or removal of the Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the City by the Redeveloper and its successor or 'transferee; and (b) Second, to reimburse the Redeveloper, its successor or transferee, up to the amount equal to (1) the sum of the purchase price paid by it II -14 MICROFILMED BY JORM MICR46LAE3 CEDAR RAPIDS - DES MOINES ' i I J_J A A /-1 for the Property (or allocable to the part thereof) and the cash actually invested by it in making any of the Improvements on the Property or part thereof, unless (2) any gains or income withdrawn or made by it from the Agreement or the Property. Any balance remaining after such reimbursements shall be retained by the City as its property. SECTION 706. OTHER RIGHTS AND REMEDIES OF CITY; NO WAIVER BY DELAY. The City shall have the right to institute such actions or proceedings as it may deem desirable for effectuating the purposes of this Article VII, including also the right to execute and record or file among the public land records in the office in which the Deed is recorded a written declaration of the termination of all the right, title, and interest of the Redeveloper, and (except for such individual parts or parcels upon which construction of that part of the Improvements required to be constructed thereon has been completed, in accordance with the Agreement, and for which a certificate of completion as provided in Section 305 hereof is to be delivered, and subject to such mortgage liens and leasehold interests as provided in Section 704 hereof) its successors in interest and assigns, in the Property, and the revesting of title thereto in the City: Provided, that any delay by the City in instituting or prosecuting ani"such actions or proceedings or otherwise asserting its rights under this Article VII shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that the City should not be constrained so as to avoid the risk of being deprived of or limited in the exercise of the remedy provided in this Section because of concepts of waiver, laches, estoppel, or otherwise to exercise such remedy at a time when it may still hope otherwise to resolve the problems created by the default involved); nor shall any waiver in fact made by the City with respect to any specific default by the Redeveloper under this Section by considered or treated as a waiver of the rights of the City with respect to any other defaults by the Redeveloper under this Section or with respect of the particular default except to the extent specifically waived in writing. SECTION 707. IMPOSSIBILITY OF PERFORMANCE BY CITY PRIOR TO CONVEYANCE Ur rMurtnlY. anouia at any time prior to the conveyance of title to any Property under this Agreement, the City of Iowa City, Iowa be enjoined from such conveyance or prevented from so doing by any order or decision or act of any judicial, legislative or executive body having authority in the premises, the City at its option may terminate this Agreement and any obligations incurred by either party shall cease. In the event of such termination, the City shall not be responsible for any damages, expenses or costs incurred by the Redeveloper by reason of such termination. It is further agreed and understood that the City shall have no liability for failure to, deliver title to such Property or any part thereof to the Redeveloper after making a good faith attempt to do so. rAKIY. ror the purposes or any of the provisions of the Agreement, neither the City nor the Redeveloper, as the case may be, nor any successor in interest; shall be considered in breach of, or default in, its obligations with respect to this Agreement in the event of enforced 1' MICROFILMED BY i JORM MICR6LAB CEDAR RAPIDS • DES MOINES qq�- 7 J_ r delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not restricted to, acts of God, acts of public enemy, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, litigation and unusually severe weather or delays of subcontractors due to such causes; it being the purpose and intent of this provision that in the event of the occurrence of any such enforced delay, the time or times for performance of the obligations of the City or of the Redeveloper under this Agreement, as the case may be, shall be extended for the period of the enforced delay as determined by the City: Provided, that the party seeking the benefit of the provisions of this Section shall, within ten (10) days after the beginning of any such enforced delay, have first notified the other party thereof in writing, and of the cause or causes thereof, anis requested an extension for the period of the enforced delay. SECTION 709. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies of the parties to the Agreement, whether provided by law or by the Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach of any of its remedies for any other default or breach by the other party. No waiver made by either such party with respect to the performance, or manner or time thereof, or any obligation of the other party or any condition to its own obligation under the Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation -of the other party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. bt:LMN 11u. rmmi iii The Redeveloper, for itself and its successors and assigns, and for all other persons who are or who shall become, whether by express or implied assumption or otherwise, liable upon or subject to any obligation or burden under the Agreement, hereby waives, to the fullest extent permitted by law and equity, any and all claims or defenses otherwise available on the ground of its (or their) being or having become a person in the position of a surety, whether real, personal, or otherwise or whether by agreement or operation of law, including, without limitation on the generality of the foregoing, any and all claims and defenses based upon extension of time, indulgence, or modification of terms of contract. ARTICLE VIII. MISCELLANEOUS =L11UN aui. wnr11.1 -.. INDIVIDUALLY LIABLE. No member, official, or employee of the City shall have any personal interest as defined in Chapter 403, Code of Iowa 1979, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his/her personal interests or the interests of any corporation, partnership, or association in which he/she is, directly or indirectly, interested. No member, official, or employee of the City shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the City or for any amount which may II -16 i - MICROFILMED Or JORM MICR61-Ael CEDAR RAPIDS - DES MOINES I r it _y become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. SECTION 802 EQUAL EMPLOYMENTnsOPPORTUNITY. The Redeveloper, for itself and its successors and assig, agrees that during the construction of the Improvements provided for in the Agreement: (a) The Redeveloper will not discriminate against any employee or applicant for employment because of race, color, religion, sex, disability, sexual orientation, marital status, age, creed, or national origin. The Redeveloper will take affirmative action to insure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, disability, sexual orientation, marital status, sex, age, creed, or national origin. Such action shall include, but not be limited to,' the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The ,Redeveloper agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscriminatory clause. (b) The Redeveloper will, in all solicitations or advertisements for employees placed by or on behalf of the Redeveloper, state that the Redeveloper is an equal opportunity employer. (c) The Redeveloper will send to each labor union or representative of workers with which the Redeveloper has a collective bargaining agreement or other contract or understanding, a notice, to be provided, advising the labor union or workers' representative of the Redeveloper's commitments under the City of Iowa City's Contract Compliance Program, and shall post copies of the notices in conspicuous places available to employees and applicants for employment. (d) The Redeveloper will comply with all provisions of the City of Iowa City's Contract Compliance Program. (e) In the event of the Redeveloper's noncompliance with the non- discrmination clauses of this Section, or with any of the said rules, regulations, or orders, the Agreement may be canceled, terminated, or suspended in whole or in part. (f) The Redeveloper will include the provisions of Paragraphs (a) through (f) of this Section in every contract or purchase order, and will require the inclusion of these provisions in every subcontract entered into by any of its contractors unless a specific exemption is approved by the City Council so that such provisions will be binding upon each such contractor, subcontractor, or vendor, as the case may be. The Redeveloper will take such action with respect to any construction contract, subcontract, or purchase order as the City may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event II -17 `ti � MICROFI LIAED BY "-JORM - MIC R¢C4[i r .. J L J1 C CEDAR RAPIDS • DES MOINES / I I it R 0 the Redeveloper becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the City, the Redeveloper may request the City to enter into such litigation to protect the interests of the City. SECTION 803. PROVISIONS NOT MERGED WITH DEED. None of the provisions of the Agreement are intended to or shall be merged by reason of any, deed transferring title to the Property from the City to the Redeveloper or any successor in interest, and any such deed shall not be deemed to affect or impair the provisions and covenants of the Agreement. SECTION 804. TITLES OF ARTICLES AND SECTIONS. Any title of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. II -18 q9� MICROFILMED BY 13 JORM MICR#L /1 CEDAR RAPIDS • DES MOINES I I �r ARMSTRONG'S, INC. FINANCIAL REPORT JANUARY 31, 1982 141CROFILMED BY -J-MlC101C -0RMPA 'R+CAB­ CEDAR RAPIDS DES MOINES lZ til t 17 ARMSTRONG'S, INC. FINANCIAL REPORT JANUARY 31, 1982 141CROFILMED BY -J-MlC101C -0RMPA 'R+CAB­ CEDAR RAPIDS DES MOINES lZ til -J t -J i n i I L L i G F I I i L i n. � IJ r-) MICROFILMED BY "-JORM"'MICR�LAB- L��1 ^ CEDAR RAY105 •DES MOINES ! t .r MAY 2 51982 ABBIE STOLFUS Cl7Y CLERK A i A G F i A 7 • 99� MICROFILMED BY 1 L_ { DORM IAB k ~•� CEDAR RAPIDSS - DES MOINES I I I { J� r I I i I (� Q C O N T E N T S INDEPENDENT AUDITORS' REPORT (i ON THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS Balance sheets Statements of income Statements of changes in stockholders' equity Statements of changes in financial position Notes to financial statements fit• INDEPENDENT AUDITORS' REPORT L ON TETE SUPPLEMENTARY INFORMATION j] SUPPLEMENTARY INFORMATION Ten-year condensed balance sheets Ten-year condensed statements of income Ten-year statements of changes in financial position Ten-year financial statistics Balance sheet information: Trade receivables U Property and equipment Accrued expenses L • D T1 46 7 • 99� MICROFILMED BY 1 L_ { DORM IAB k ~•� CEDAR RAPIDSS - DES MOINES I I I { J� C`" McGladrey Hendrickson &Co. CERTIFIEO PUBLIC ACCOUNTANTS 8 To the Hoard of Directors Armstrong's, Inc. Cedar Rapids, Iowa We have examined the balance sheets of Armstrong's, Inc. as of January 31, 1982 and 1981 and the related statements of income, changes in stockholders' equity and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of Armstrong's, Inc. as of January 31, 1982 and 1981, and the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a con- sistent basis. Cedar Rapids, Iowa March 24, 1982 MW IrF OFILMED BY -MICR#L.ABIDS • DES MDIYES 1 H n0ST9.ONC'5, INC. BALANCE SNARES J.... ry 71, 1902 and 1981 ASSETS C11"ENT ASSETS Cash (Note 3) Trade receivables, loss aliment, for doubtful account. 1982 $/9.0001 1981 676.000 Inca. us *foods rer.ivablt Other receivable. InMntarles (Note 2) prepaid expense. Total current meet, IRESTMST$ C.In stock, at cost, ArostwnP/aca Realty Company, 4.478 word (book value at January 71. 1902 estlaatad to be approalnataly 6119,6001 January 31, 1991 11171900) Conon stock of Dovntwn Skyway 1Ptea, Ine„ at wet plus equity In net Inco. (1002) I .... Ment to partnership. Dwmtoun Dsvalopmant Company, 206, at wet loss equity in net ton Inurement In joint Mature, Third Avenue Skyey Sptu. 18.752, at wet loss equity 10 net 1012 Other unlined corporation stock, at wet FROPERTT AND Tp1UIPMENt, at wet (Nota 3) Land Building. Lessehold mprove.nts and qulpn.at Construction In progress Len accumulated depreciation See Notes to financial Atata"nta. -2- t1'.:/i':r r'.' :IM1-•w..�....•...—sees..__ .. 1912 1911 7 240,507 1 225,481 3.233,257 5.012.718 62,621 117,055 42,335 20,102 4.128.041 2.049,595 244,987 224,543 i 7,951,754 1 7.449.496 1 40,402 I l j j I I • H n0ST9.ONC'5, INC. BALANCE SNARES J.... ry 71, 1902 and 1981 ASSETS C11"ENT ASSETS Cash (Note 3) Trade receivables, loss aliment, for doubtful account. 1982 $/9.0001 1981 676.000 Inca. us *foods rer.ivablt Other receivable. InMntarles (Note 2) prepaid expense. Total current meet, IRESTMST$ C.In stock, at cost, ArostwnP/aca Realty Company, 4.478 word (book value at January 71. 1902 estlaatad to be approalnataly 6119,6001 January 31, 1991 11171900) Conon stock of Dovntwn Skyway 1Ptea, Ine„ at wet plus equity In net Inco. (1002) I .... Ment to partnership. Dwmtoun Dsvalopmant Company, 206, at wet loss equity in net ton Inurement In joint Mature, Third Avenue Skyey Sptu. 18.752, at wet loss equity 10 net 1012 Other unlined corporation stock, at wet FROPERTT AND Tp1UIPMENt, at wet (Nota 3) Land Building. Lessehold mprove.nts and qulpn.at Construction In progress Len accumulated depreciation See Notes to financial Atata"nta. -2- t1'.:/i':r r'.' :IM1-•w..�....•...—sees..__ .. 1912 1911 7 240,507 1 225,481 3.233,257 5.012.718 62,621 117,055 42,335 20,102 4.128.041 2.049,595 244,987 224,543 i 7,951,754 1 7.449.496 1 40,402 1 40.402 24.185 22,639 • 27,157 23,530 36,111 31,496 678 129 I 2 534 12 01 1 399,911 6 369.917 2,471,621 1,592,664 4.064,478 3,694,594 16 279 14 719 16,942:497 3.692.C9 3 019 ]01 2 679 891 23,18 01 1 2 1/ L004,129 /10,569.294 LIMILITI93 AND ITOCRIIULDER9' LEVITY CUARENT LIAMET1ES Motu payable (Note 3) Current .turities of Iwg-tars debt (Note 3) A WtxrLa payable Accrued sap.naas Deferred Incame tee credits, current portion Total current liabilities LOMC-Tn01 DEBT (Mote 3) DEFERRED INCOME TAI CUU175, noncurrent portico STOCRIIDLDERS' 60UITT (Mete 3) Common stock. per value {5 per sharp 2uthorlesd 550.000 shares; Issued 1912 2191060 sharasl 1961 295.448 shams (late 4) Additional paid -16 capital Retained "Mingo CONNITIQNIS AND OffiTINCENCIEA (Note. 4, 5 and 6) ?MICROFILMED BY JORW MICR+LAB-' •- -j 1 CEDAR RAPIDS • DES M0114ES �.... ... ......... sees. .._. ...� Em= _;y 15 L004.129 510.589 ,294 O el'l A _. d 7 1 j i 1962 1911 d 1. I $ 2,250,000 7 915,000 30,632 28,290 1.292.612 1,169,602 1,597,075 1,523,6861 443,600 409.000 A 5,613,917 7 4.105,660 I' 21,092 { 23,360 qw 5 11,400 { 11,000 1 1,445,300 6 1.467,240 1,407,459. 1,444,361 3.504,961 6 6,357,720 3 535 666 8 6274 15 L004.129 510.589 ,294 O el'l A _. n IJ ARMSTRONG'S, INC. STATEMENTS OF INCOME Years Ended January 31, 1982 and 1981 1982 1981 Net store sales $22,389,600 $21,836,911 Less leased department sales 836,132 853,280 I Net owned department sales $21,553,468 $20,983,631 Cost of sales 12,726,836 12,564,746 Gross merchandise margin $ 8,826,632 $ 8,418,885 j Other operating revenue, other than credit service charges 93,717 118,675 $ 8,920,349 $ 8,537,560 aOperating expenses, net of credit service charges 1982 $199,764; 1981 $189,202 8,274,133 7,967,683 Operating income $ 646,216 $ 569,877 Nonoperating income (expense): Interest expense (237,895) (134,843) • Dividend income 3,359 2,050 Interest income 538 451 $ 412,218 $ 437,535 Equity in net (loss) of affiliates (6,517) (69,763) ` Income before taxes on income $ 405,701 $ 367,772 (� Federal and state income taxes, including I� increase (decrease) due to deferred income taxes 1982 $35,000; 1981 $(3,000) 115,000 156,996 Net income $ 290,701 $ 210,776 Earnings per common share $ 1.00 $ .71" , See Notes to Financial Statements. 3 -3- I E ED BY CR�G,4B DES MDIYES / I --N I i -4- 99� 1� i MICROFILMED BY � DORM.""MICR#CEiB" .l i CEDAR RAPIDS • DES I401NES 'ef`' L� ARMSTRONG'S, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Years -Ended January 31, 1982 and 1981 Additional Common Paid -In Retained Stock Capital Earnings Total - {+ L Balance, January 31, 1980 Net income $1,493,485 $1,480,342 $3 667 157 $6,640,984 Retirement of 6,460 shares - - 210,776 210,776 Of common stock Sale of 1,211 shares of 32,300 50,635 58,560 141,495 Common. stock Dividends on common stock 6,055 14,661 20,716 { { Balance, January 31, 1981 Not $1,467,240 51,444,368 283,707 $3,535,666 283,707 $6,447 274 r 1 income Retirement of 4,911 shares - - - - 290,701 290,701 i Oof common stock Sale of 523 shares of 24,555 44,754 41,479 110,788 comon stock Dividends on common stock 2,615 - - 7,845 - - 10,460 0 Balance, January 31, 1982 $1.445,300 - - $1,407,459 279,927 53,504,961 279,927 $6,357,720 See Notes to Financial Statements. i -4- 99� 1� i MICROFILMED BY � DORM.""MICR#CEiB" .l i CEDAR RAPIDS • DES I401NES 'ef`' y fl $ 1,255,002 i Investments in affiliates 10,000 80,081 Long-term debt transferred to current liabilities j D Cash dividends declared ,a 283,707 ARMSTRONG'S, INC. STATEMENTS OF CHANGES IN FINANCIAL POSITION Years Ended January 31, 1982 and 1981 1982 1981 FINANCIAL RESOURCES PROVIDED BY Operations: Net income $ 290,701 $ 210,776 Items which did not (provide), or require outlay of, working capital during the year: Depreciation 344,012 300,102 Deferred income taxes 400 (5,250) Equity in net loss of affiliates 6,517 69,763 Total working capital provided by operations $ 641,630 S 575,391 Other sources: Proceeds from long-term debt 26,364 - - Proceeds from the sale of common stock 1982 523 shares; 1981 1,211 shares 10,460 20,716 Proceeds from sale,of investment 1,896 - $ 680,350 S 596,107 FINANCIAL RESOURCES APPLIED TO Purchase of property and equipment $ 1,255,002 $ 295,998 Investments in affiliates 10,000 80,081 Long-term debt transferred to current liabilities 30,632 28',290 Cash dividends declared 279,927 283,707 Purchase of common stock for retirement 1982 4,911 ehares; 1981 6,460 shares 110,788 141,495 (Decrease) in working capital, as below S 1 686 349 S 1,005,999) $ 829,571 $(233,464) SUMMARY OF CHANGES IN WORKING CAPITAL COMPONENTS Increase (decrease) in: Cash $ 15,026 $ 75,882 Trade receivables 220,539 (98,914) Income tax refunds receivable (54,428) 117,055 Inventories 278,446 (211,346) Other current assets 42,675 (11,684) Decrease (increase) in: Current portion of notes and contracts payable (1,277,342) (475,168) Accounts payable and accrued expenses (196,315) 372,961 Deferred income tax credits (34,600) (2,250) (Decrease) in working capital $(1,005,999) $(233,464) See Notes to Financial Statements. =7= 1 MICROFILMED BY i L J JOR MMIC R#L AB - CEDAR RAPIDS DES MOINES I _y J II\I�i✓1 • ARMSTRONG'S, INC. NOTES TO FINANCIAL STATEMENTS i Note 1. Nature of Business and Significant Accounting Policies 1. Nature of business: The Company's operations consist of operating a retail department store in downtown Cedar Rapids, Iowa. j 1 Significant accounting policies: 1 i The accounting policies relative to the carrying value of investments and i w property and equipment are indicated in the captions on the balance iYl sheets. Other significant accounting policies are as follows: j Inventories: i In-store inventories are valued at the lower of wet (last -in, first - out method) or market. In -transit inventories are valued at cost I (specific identification method). Depreciation: f Depreciation of p property and equipment is computed primarily by the straight=line method. l Income taxes: j The Company follows the policy of treating the investment credit as a j� reduction of the federal income tax expense in the year in which the (� credit is utilized. This policy has the effect of decreasing the federal income tax expense and increasing net income $75,870 and $12,189 for the years ended January 31, 1982 and 1981 respectively. Deferred income tax credits have been provided on the following timing differences: (1) For income tax purposes only, the Company has elected to report certain sales on account on the installment basis. This results in a deferral of income for income tax purposes only. (2) The Company's basis in its investment in Downtown Development Companyis approximately $27,900 leas for income tax purposes j because the partnership is deducting certain coats for income tax purposes that are being capitalized for financial statement Dpurposes. �I I -6- i �— ---. ..------- MICROFIL14ED BY _ J 'JORMMICR�CAB� /I I CEDAR RAPIDS • DES MOVES ' �� r i i •n L L II a L3 I t � t I NOTES TO FINANCIAL STATEMENTS Pension costs: The Company has a pension plan covering approximately 70% of its employees. Pension plan expense is determined based on the actuarial cost (entry age normal method) of current service and amortization of past service costs over 40 years. The Company's policy is to fund pension cost accrued. Note 2. Composition of Inventories The composition of the inventories is as follows: January 31, 1982 1981 In-store $3,537,218 $3,353,059 In -transit 590,823 496,536 $4,128,041 $3.849,595 The use of the last -in, first -out method of determining the cost of the in- store inventory, which was adopted on January 31, 1974, had the effect of decreasing this inventory by $516,164 and $506,256 at January 31, 1982 and 1981 respectively as compared to what they would have been under the first -in, first -out method. Note 3. Pledged Assets, Current Notes Payable and Long -Term Debt The Company has a line of credit which expires on May 31, 1982 with Brenton Bank 8 Trust Company, Cedar Rapids, Iowa, under which it can borrow up to $2,700,000 on unsecured current notes payable. The interest rate charged the Company is basad on a formula as set forth in the agreement. The interest rate was 15 3/4% at January 31, 1982. This line of credit agreement requires the Company to maintain an average compensating balance of $200,000, stockholders' equity of $4,500,000, net current assets of $2,000,000, a current ratio of not less than 1.5 to 1, and that the Company shall not distribute or restrict its capital structure by more than 50% of net income after taxes in any year. At January 31, 1982 all of the covenants were complied with or waivers were obtained for noncompliance. At January 31, 1982 there was $2,250,000 borrowed under this agreement which is due an May 31, 1982. mm g9OL MICROFILMED BY -�' " JORM -MICR#LAB - 1. CEDAR RAPIDS DES MOINES f _�o b . NOTES TO FINANCIAL STATEMENTS Long—term debt at January 31, 1982 is as follows: • Balance Due I is Mortgage note payable, individuals $ 25,360(A) Notes payable, individuals 26,364(B) S 51,724 (A) This mortgage note payable is due to four individuals in monthly installments of $2,630, including interest at 8%, with the final f payment due in November, 1982. The note payable is collateralized by land and a building with a January 31, 1982 depreciated cost of � $507,615. (J (B) Unsecured, due in annual installments of $5,273, plus interest at 11%, to August, 1986. Maturities of long—term debt are as follows: Year ending January 31: 1983 $ 30,632 1984 5,273 1985 5,273 r 1986 5,273 L 1987 5,273 $_51_1724 Note 4. Stock Purchase Agreements I The Company has entered into Stock Purchase Agreements with certain of its employee—scockholders under which it agrees to repurchase, upon death or - termination of employment, all of the common stock held by these employees: a Shares held more than one year are to be repurchased at the book value as of the close of the Company's last. preceding fiscal year and shares held less than one year are to be repurchased at a price equal to the price at D which they were sold. The book value of Armstrong's, Inc. at January 31, 1982 was $22.11 per share and the 57,180 shares covered by these agreements had a total repurchase price of $1,263,146 at that date. i i 11 _ 8 _ , V r i r. 9901 " 141CROFILNED BY JORM"--MICR4�LAB LCEDAR RAPIDS • DES M018E5 I �- NOTES TO FINANCIAL STATEMENTS Note 5. Pension Plan The total pension costs charged to expense for the years ended January 31, 1982 and 1981 were $360,354 and $305,671 respectively. A comparison of accumulated plan benefits and plan net assets for the Company's pension plan is presented below: February 1, 1981 1980 Actuarial present value of accumulated plan benefits: Vested $3,944,764 $3,592,857 Nonvested 551,908 521,121 54,496,672 $4,113,978 I Net assets. available for benefits $4,309,157 $3,928,165 The weighted average assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 6% for both 1982 and 1981. Note 6. Lease Commitments and Total Rental Expense The Company has leased its retail store properties under various noncan- tellable agreements which expire between September,.1985 and August, 2018 and require various minimum annual rentals. Substantially all of the leases also require the payment of property taxes and insurance on the properties and contain periodic minimum annual rental adjustments based on the Consumer Price Index Manges or changes in the market value of the leased property. One lease also requires payments based upon 1.85 of certain sales in excess of certain rash rents. The Company has subleased certain departments within its retail store under agreements that provide for no minimum annual rentals, but which require rentals based upon a percentage of sales less certain related expenses. =!_ 1 I F ICROFILMED BY 1' PA -'MICR ILAE3RARIDS • DES MOINES f D 1 �l 'D NOTES TO FINANCIAL STATEMENTS Note 5. Pension Plan The total pension costs charged to expense for the years ended January 31, 1982 and 1981 were $360,354 and $305,671 respectively. A comparison of accumulated plan benefits and plan net assets for the Company's pension plan is presented below: February 1, 1981 1980 Actuarial present value of accumulated plan benefits: Vested $3,944,764 $3,592,857 Nonvested 551,908 521,121 54,496,672 $4,113,978 I Net assets. available for benefits $4,309,157 $3,928,165 The weighted average assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 6% for both 1982 and 1981. Note 6. Lease Commitments and Total Rental Expense The Company has leased its retail store properties under various noncan- tellable agreements which expire between September,.1985 and August, 2018 and require various minimum annual rentals. Substantially all of the leases also require the payment of property taxes and insurance on the properties and contain periodic minimum annual rental adjustments based on the Consumer Price Index Manges or changes in the market value of the leased property. One lease also requires payments based upon 1.85 of certain sales in excess of certain rash rents. The Company has subleased certain departments within its retail store under agreements that provide for no minimum annual rentals, but which require rentals based upon a percentage of sales less certain related expenses. =!_ 1 I F ICROFILMED BY 1' PA -'MICR ILAE3RARIDS • DES MOINES f D I wD D 7 r, NOTES TO FINANCIAL STATEMENTS The total minimum rental commitments at January 31, 1982 under the leases mentioned in the first paragraph are as follows: 10 - 1' f� MICROFILMED BY j ""'JOR MMIC RI�LAB I CEDAR RAPIDS • DES MOI4E5 I I 9Q� A B J Total Minimum Rental For the year ending January 31: Commitments 1983 $ 359,648 1984 313,616 1985 313,616 1986 309,216 1987 300,416 The remainder which is due between January 31, 1987 and August 31, 2018 3,566,554 $5,163,066 Certain of the leases mentioned in the preceding paragraph are with a company which is affiliated with Armstrong's, Inc. through common management and ownership. The amount of total minimum rental commitments to this Company included above is $3,441,979. The net rental expense included in the income statements for the years ended January 31, 1982 and 1981 consists of: Rental Expense 1982 . 1981 Minimum rentals $353,386 $350,733 Additional rent based upon: Changes in the Consumer Price Index or the market value of the property - - 5,452 Adjusted not sales 27,164 24,319 Property taxes an rental property 220,476 - 212,198 Other miscellaneous month-to-month rentals 66,320 25,463 Total rental expenses $667,346 $618,165 Less rental income from subleases 92,075 91,666 Net rental expenses 5575.271$526p499 The net rental expense included above, to the affiliated company previously mentioned, is $289,562 and $285,309 for the years ended January 31, 1982 and 1981 respectively. 10 - 1' f� MICROFILMED BY j ""'JOR MMIC RI�LAB I CEDAR RAPIDS • DES MOI4E5 I I 9Q� A B J MCGladrey Hendrickson &Co CERTIFIED PUBLIC ACCOUNTANTS 8 To the Board of Directors Armstrong's, Inc. Cedar Rapids, Iowa Our examinations were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information ie pre- sented for purposes of additional analysis and is not a required rt of the ba financial statements. Such information has been subjected to the auditingsic proce- dures applied in the examinations of the basic financial statements; and, inour opinion, is fairly stated in all material respects in relation to the basic finan- cial statements taken as a whole. Cedar Rapids, Iowa March 24, 1982 it I FCEDAR OFILMED BY "MICR(�IC:AB IDS DES MOINES � r FCEDAR OFILMED BY "MICR(�IC:AB IDS DES MOINES � r A9NSTww'S. INC. Tfdi-TIA1 mN9lNSEP KLANCN MEATS Cash Trade ucelvab4., ort loco" tet refund' recalv.ble Other rscelvablo. Inventories/ Prepald and &lured expenses Total current .,at, Inver teener Property and equlpeert, met Note. payable CUTS" portion of notes payable Accounts payable and accrued expenses Tncc" tares payable Deferred Incase us credit., not, currant Portion Total Correat Ilabllltlea Loop -ten debt, net .f 'Trent porteloa Deferred Incoee tea credits, noncurrent portion Stockholders, equity, Capital .tock Additional pain -les "pita, Waited earnings 1 1982 134110D J...at 71 197 1 9 f 1973 1 1 1971 � i 240,501 1 225,481 4 149,599 7 147,016 3,277,257 7, 1 369,397 1 170,164 i 790,396 t 167,591 017,718 ],111,672 2,004 ,/e8 2.359.380 2;460,56! ,,7 27 2,039,413 1 1,91/,162 01 128.296 .7TS,N3 �! 62,621 111,013 - _ _ 7216_ 47,])3 20,102 71,797 76,008 16,611 11,174 13,227 11,798 6,519 6,777 {,12/,041 ],0!9,393 4,060,9!1 7,905,864 ],467,97{ 7,427,500 ],!!1,043 ],706,{10 ],605,423 2,763,718 244 901 224 5{3 !34 37{ t19 f0i If1 476 161 Iw If! 694 177 516 Ill 594 170 047 i-7;i3E;iST ii;7g ". 710 7.11 ,x1!3 ". 3.�i �,SIT,i� 5,162,/0 s,:�07ri09 j 3 923 117 7 011 181 X191 ].016.701 3 2781 117.291 X229 49.314 42.936 222 3 545 380 ) 042 10 2 949.971 2 {17,936 42,936 42.936 657 1.662.532 1.777.937 I2 00 139 10 589 If 110.712.001 10 3 2 ) 10 0 1 I2 1) 94 #:_i;;'392 6 91T 727 6 577 )70 1 2,230,000 1 9/3.000 1 175,00 / 400,000 0 _ _ 0 _ 70.672 21,390 57,132 110.110 !61,272 266.363 0 246,060 i 479,000 t If 1,957 / 171,617 2,689,683 2,6!],310 S.fit ,316 2,192,163 3.910, 21 2.672,66! !.39',116 2,364,001 3,141 Sly 1,131,!10 - - 94,193 74,743 16,370 120,000 160,060 13 ,000 276,000 AG6 750 _ 143,407 S 117 610 1a 000 0013.6 50 131,713 162 1 S a- 341,1{3 337 000 ) LS 60000 262 000 0 ) 273 /5076 x lei oi9 2 iiefw 31,092 - 6 027 11,400 11 000 1 16.250 f 12,331- 0 1.407.300 0 1.447,366 / 1.467.343 1 1.507.330 0 1.517.700 $1.4%.400 11.430.625 11.440,230 11-130.475 !.407.43! 1.434.716 1,4w,R! 1.483.162 1,525,)31 1.429.216 1,7{0.060 IQI2,1]7 !00.715 j1.102,SS25 2 631 34 207 12 655 �� - 10 3/S = 6 10 612 Oe1 Ip d67 157 3 ei Ho ) 005 1 IK i el 2 09 001 19,209 129 188 WVRTV ,392 6 912 928 86377,37L 0 During the year .,dl January ]i. 1974 the Company changed Its Method of velulnS in-store Invesrery true rho 1IM-In, first -out (91{0) Methal to the hat -lo, lint -out (LIFO) "thud. TAI' change In Method had the affect of locrsasing (docr..91q) the Instal..(., ky the lMl<ded mounts "'pared to Nut they would have been under the first -la, flat-out (9I9o) Method, At January 71, 197( 1975 t 56,010 1976 (167,860) 1917 (212,249) 1978 - (279.284) 1919 (374,749) 1980 (549,478) 1961 (477,991) 1902 - '(506,236) (516.164) 12 - MICROFILMED BY l '"JORM""MIC R+GAB� -+ CEDAR RAPIDS • DES MOINES j ,r� AR715TROW'S. INC. TLN-T G0. 03110fN5L0 BLATLMEN79 OF INC016 •I � I CONDENSED SIATENDf7S Of 1NCONi Year Ended Janus[ 71 I ! 7 ([N DOLLARS) 19821 1981 1960 1979 1 0 1 1 19 1915 1911 1977 Net store ole. 112,789,600 121,1]6,911 927,575,605 922,126,975 921,159,/02 920,207,759 91/,607,77/ 917,159,098 $15,593,701 111,692,351 Lee loud department selma Q6 172 15] 260 990 699 816,465 100 117 20, 762 579 B, 751 706 11 0 677 158 016,481s940$14,916!049 675 652 617 607 /1 ,i /, SO Net awned department Malo 31,35 , 726 836 930, 7, 1 1�2a56�6a7�1,,6 $11.184:906 111,288,510 1122 x.4 55 3 9-113 , 91155 ,220 11 766 650 ,0 ,0 X100 7722 00 66SSS 9 945 755 0 617 $68 �7 866 476 Cost of rale. X12 . �I7.t.39955a997799 9 /,6N,fvr x-1-22034 90 0 l,n).ua 6,5 ,56 ,098,981 9 5, I> 1,979 I Cross merchandise Margin 9 s,n a,orr .f E ua.1ro 0 9.19E.9ir ,• 5 525•"' ,0 . Other operating revenue, other than 98 t�., 355 credit service charges 6.920 7 93 7 �,y-t�T�E075 .3' . J7g6eve 9.� 1 8'1 '1• •'• � y--�-� 1• ' 20%25- .�,�t�.,, '19 / era,rtn '170,961 , /7,779 /� t ' N Operating eapensaa, not of credit 0'1.,_,. 0r, s�4e1 7 618 60z 7 Ibl 416 7,09 S 469 169 5 001 67B - 4 596 ]99 service rLags 6 171 U7 a'D 7 967.t6�7 W 2 1,3 s l 0 I,aOa./aa �6, 354:,7116 0 1,77..x/0 1,1 . 3 ,1 ,72 B , ] Y Operating loco= Nonopantln{ opera. not 0 Iaa 210.513 1 ter 6rr 302.103 / t nA f7 059 i t 96,732 , 77.39] l4,9./.a,5,956 69.558 96 OS] 63.910 51,712 65.86] Income before rates on Inver 1 405,701 1 567.772 19 1.2�r 1 1.325.177 9 1,116,1]2 / 1,777.196 1 1,15! f 9 1.099,211 9 1.131.017 1 649,070 Federal and shit Income taxes 113,000 156 996 110 571 261 93 6 7 619.7{6 7 605.687 570 700 6468632 671 /60 S ] 597 656 665 559 095 379.)1 566 667 UI 277 Net Incur 9 190.701 I s. CONDENSED STATEMENTS OF ISO ME i IN PORff.NTACL9) ). Net awned department mels 100.009 100.00E IOD.002 100.002 100.002 100.001 IOD.00i 100.001 60.34 100.002 59.11 100.002 59.24 Cor of oleo 59.05 -409H 59.81 -W.-M $9.05 -t03SE 58.50 59.11 -W.W 59.45 TI 55f 39.71 Tn1C 71.661 -0337 -4 O, Fri Cross merchandise margin 41.50{ Other operating revenue, other than 47 56 62 65 6I 65 65 59 51 50 credit service charges • Tliel To..diF 1�r 4� T1sfi Tui 'lei �1 TT Ti.T Operatic{ charges . net o[ credit service charge 3/.79 -3.9�C 72.91 3.11 75.97 -97M 75. N.96 --rm ]7.83 -1731 77.18 -7.-Off 71.55 36.60 ,. Operatic{ loeome 1.1: 1.iII �� .26 .46 6.30 3 .36 .76 57 .60 .54 .35 Nenopc n[In6 tape nese. net Inc.. before test. on Income 1.083 .96 1.731 S.SBi 5--762 Sr981 6.469 7.543 6.791 Federal and state Income taxa. .57 .75 -F.-OO-2 2.32 2.91 2./0 1-.111 1.46 .L 3.24 7_661 3.471 ].60 1.27E7.751 5.79 7.94 7_151 Net incur 1_751 7_062 2_852 _629 I The Company changed It. method of valuing In-store Inventory during the year ended Jannnry 71, 1974. See footnote I on page 12 for the o[ura and affect of this change. I r•---------._._... 111 � ! MICROFILMED BY 1 .1... .:.JORM.... MICRAL AB -....1 .� CEDAR RAPIDS • bES MOIIIES { ..._�.. ..w_„w✓� 1 ..:v.>v'j a .�h, `.': APMSTIO110'S, INC. TIO-YG6 STATEMENTS O/ CN1tOC8S IN FINANCIAL POSITION Ft ... rill rewu[cn provided by, Dilatations: Kai Inc." It... which did not (provide) or require Ontlay o0s writing capital dertax the Tare Depreciation Deterred Inco" taxa. Equity In net lou (jocose) of titillates Iotal working "First provided by operations Other sour"" Proceeds from long -ten note debt Proceeds it" the "le of .omen stack Other Financial ..saran applied toe Purchase of prop..ty.snd equipment Invutacnt in affiliates Long -tan debt ttamfsrr.d to arrant liabilities Cash dividends declared Other Fur Ended January 31 1982 9741sr ivalli j9790 1978 1 7 1916 1975 1971 197] D 290,701 1 210,776 $ 695,667 1 605,667 6 666,672 6 663,136 1 66S.061 1 559,319 0559.150 S 417,877 i r t ! 1 I 714,011 700,103 738,700 790,776 345,730 310,886 267,761 176,715 168,474 196,221 400 (5,230) ],912 12,778 6.317 69.763 (12,054) (9,915 1 611,610 ( 513,791 61,023,021 D 999,046 11,009,5/4 6 976,222 D 972,622- - - " D 711,66{ 5747,824 7 61{,034 16,364 _ _ _ _ _ ISo,ON /00.000 457,500 - - j 1 10,460 20,716 76,054 40,8]7 171,361 1711,!]0 6e,Sf) 70,100 67,66. 46,154 `'+•,+' y 1 8916 423 _ _ iy 10 1.061. 5 1. 0.7 1 1 1 2 3 1 1 801 1 1 257 7 675 09 60 100 6 1,110.000 002 ' 295 993 60,081 i 70.719 000 6 116 9000 1 71.5000 1 407,099 6 731,087 S 999,415 S 73,233 D 174,091 30,671 28.290 53,122 270,120 768,711 269,636 241,300 219,000 597,660 12S.it/ 279,917 n3.707 272,074 269,15] 258,931 278,130 210,012 302,460 180,7{{ 149.SO! -r61166a3499 IH 493 113 212 163 6N SO 426 3 062 46 153 17 243 t0 068 2 711 Is ,.aey 2 1 561 6 1 0 Ie0 91 1 1 1 7 1 fl 11 861•]Ns 11 192 Increase (decre..e) la working capital, u below 616 1,003.999) 377 {6q 493 028 Iff 741 2N 011) 349,003 SSf ql 6 Ie0 757) (25 396) 344 016 I' Summary of changes to working capital "mponeotst ,ner.ua (decree) lot Cash and marketable securities D 13.026 1 73,002 $ 6,507 7 (126,717) D (200,711) 1 79,7611 D 222.798 Trade receivables 320.579 (98.914) 226.744 723,308 99.018 247,635 1 ]1,367 9 6,017 3(214,280) ,. In.... t" refunds randvabl. (34,43$) 117,033 177.713 111,]50 192.1 e7 705,441 Inventories 213,446 (211,34$) 155,077 417,890 65 474 121,435 - _ _ _ _ - - - Other arrant "sate 42.675 (11,684) 917 63.861 (11,765) 700,983 240,097 780,310 User"" (Increase) int (9,017) 16,671 3,542 1,271 11,697 19,018 Onrrent portion of miss and contracts payable (1,217,342) (475.168) 141.996 (401.046) (1,707) (20,363) 2]1,000 (777.04]) (141.951) Accounts payable and accrued cape.... and_ _ I Inca"bdn TTble (196,715) 772,961 (48,707) (10,977) (174,079) (316 .126) (79,6N) (206,103 .+-.� Deferred Inca.. tax credits ]/ 600) J2,250) IS 412 --- (6/ 931) 7 000 1{ 000 ) (326,429) (66.477) Increase (damn) In working upitsl 1 1 7 1_) �OS"q ) 71 000) X000) 8�_000D�0) SS OW) . ) '00. S 6 I 1 x.59) 2 01 I The C"pany chanted I" method of nluing In -stare Inventory during the year ended Janury f this change. 71. 1974, See footnote f on Paz. 12 for the nature and afls<[ o 14 - i I� MICRO{ ILMEO BY � ,- '"DORM MICR#LAB-- 1 I{ CEDAR RAPIDS • DES M014ES 'i BALANCE SIIEST STATISTLCB ARKSTUNG'B. INC. TSN -TGA FINANCIAL SfAT[STLCS 1 Met mets per memo cher.## NorklnM "pilot !Allo of "[rent es"lo to wrr.ot liabilities percent of stockholders' equity Invested In Property and equipment 4tlo of liabilities to ct.c4hol&"' equity Trade receivables, regular accounts, average for the year then ended, Monthly balance Tlmec turned over Days hefece being Collected Inventoriss In stars, avenged for the year then ended$ j Monthly balance �. Times Wreed war Percent of working Capitol Invested to Inventory at year end STATEMENT OF IMMM STATISTICS Earnings per codon share3 computed on the weighted average number of shares outstanding## ' DLvldends par aeon sherd/ - I of "t Income to ,beginning atockhold.rs' aq-ily I.of net Income to ending working capital Croea merchandise margin dollar return w average Inventory , Net owned department miss to beginning .Istockheldm' equity Net owned department ssles to ending net working "pilot The Company changed ire --thnd of 1-1-1-9 In -.cera Inventory during the year ended January 71; 1914. Iss footnote I on page 12 for the "lure and affect I 1 of. this Chang.., I. IlAdlurted for the 5 -for -4 stock split m April 9, 1974 and for the 5-[-r-1 stock split on February I. 1978. - Is - r ; t MICROFILMED BY ' "DORM"MICR#CAB CEDAR p.AR105 DRE "S MOIRES 4 Januar ]1 1922 )fel 1980/ [ffgo terms MfiT 1973 l9/ 197] '. 1 21.99 1 11.97 / 22.21 S 20.87 1 19.14 1 1e.5e 1 17.23 1 15.77 6 16.61 S 17.32 2,])7,177 .7,70.176 7,377,700 7,079,213 2,02.571 ),131,367 1.11.358 2,262,917 2,427,670 2,317,629 L0 to 1 IAI to 1 1.e9 to 1 1.73 to 1 1.90 to 1 1.11 to 1 1.46 to 1 1.65 to 1 1.67 to 1 1.95 to 1 � I 61.111 46.771 45.422 32.192 55.62; 54.725 59.021 54.815 40.262 48.0; / 1 to 1.17 1 to 1.56 1 to 1.67 1 to 1.47 1 to 1.51 1 to 1.17 1 to 1.21 1 to 1.27 1 to 1.48 1 to 1.26 i 1 #,696,170 4.87 p.31f4.90 13,617,412 74,{33,764 12,268,736 12,012,861 11,998,.14 11,107,.98 111618,207 11,479,715 Acs eaF• 1.90 74.3 Dq• 5.16 71.0 Days ala by Days 6.93 77.7 Days 3.06 72.1 Dys 6.14 75.41 Wya 4.98 77.29 Days S.OE 72.71 3.02 fey. 72.91 -gym $4.275,177 14,071,714 74,911,466 17,111,793 17.67],7]5 74,754,330 ",0/1,610 17,074,990 12.857,794 12,507,2 96 7.00 3.11 7.77 7.20 7.71 7 .79 7.49 7.70 ).09 7.14 I76.5e; 113.111 IU.Sti 126.84I 121.001 I0e.601 I17.57I 746.051 134.00; I19.32i ' 7 1.00 1 0.11 1 2.32 1 1.91 1 1.11 1 2.24 1 2.701 1.83 1 1.99.7 L57 .96 d6 .91 .88 .14 .40 .76 .70 .64 .54 4.312 Ii.q 3.11; 6.70 11.07[ 9.915 11.67; 17.718 14.615 13.06I 15.23 12.{72 • 19.45 19.68 tt.0 21.11 27.77 74.05 27.01. 18.07 S 1 1.04 1 2.09 1 2.74 1 2.17 1 2.29 1 2741 8 2.19 $ 2.16 1 2.11 1 '2.16 J+t+p, s 7.74 to 1 3.16 to 1 7.61 to 1 7.51 to l 3.66 to 1 7.69 to 1 7.99 to 1 7.99 to 1 4.06 to 1].95 to 1 9.22 to 1 6.27 to 1 6.74 to 1 6.91 to 1 7.06 to 1 6.17 to 1 6.45 to 1 7.75 to 1 6.15 to 1 5.77 to 1 i The Company changed ire --thnd of 1-1-1-9 In -.cera Inventory during the year ended January 71; 1914. Iss footnote I on page 12 for the "lure and affect I 1 of. this Chang.., I. IlAdlurted for the 5 -for -4 stock split m April 9, 1974 and for the 5-[-r-1 stock split on February I. 1978. - Is - r ; t MICROFILMED BY ' "DORM"MICR#CAB CEDAR p.AR105 DRE "S MOIRES 4 S r1 ARMSTRONG'S, INC. TRADE RECEIVABLES January 31, 1982 and 1981 1982 1981 D Amount Percent Amount Percent L January $1,087,799 48.9% $1,067,877 50.6% i 405,591 18.3 413,431 19.6 S r1 ARMSTRONG'S, INC. TRADE RECEIVABLES January 31, 1982 and 1981 =« 992 MICROFILI4ED BY JORM-- MICR#LAB- _...1 ')CEDAR RAPIDS • DES MOINES _ I 1�, 1982 1981 Regular accounts billed in: Amount Percent Amount Percent January $1,087,799 48.9% $1,067,877 50.6% December 405,591 18.3 413,431 19.6 November 158,266 7.1 170,337 8.1 October 206,267 9.3 134,087 6.4 September and August 160,113 7.2 171,287 8.1 Prior to July, 204,258 9.2 152,486 7.2 Total regular accounts $2,222,294 100.0% $2,109,505 100.0% Holiday credit accounts 980,049 872,728 Lay -a -way accounts 109.914 108,485 Total trade receivables $3,312,257 $3,090,718 Less allowance for doubtful accounts 79,000 78,000 Net trade receivables $3,233,257 $3,012,718 Terms of sale for regular accounts 1 1/2% are: Net 30 days from billing date with a service charge on the first $500 of unpaid balances and 1 1/4% service charge on any amount In excess of $500. Year Ended January 31, * Analysis of allowance for doubtful accounts: 1982 1981 Balance, beginning of year $ 78,000 $ 58,000 Addition to allowance for year 26,014. 56,622 Recoveries of accounts previously written off 18.907 19 048 $122,921 $133,670 Accounts written off during year 43.921 55.670 Balance, and of year $ 79.000 $ 78,000 - The addition to the allowance for doubtful accounts is determined on the basis of establishing an ending balance equal to varying percentages of the octstanding accounts depending on age. =« 992 MICROFILI4ED BY JORM-- MICR#LAB- _...1 ')CEDAR RAPIDS • DES MOINES _ I 1�, kfl I ARMSTRONG'S, INC. PROPERTY AND EQUIPMENT January 31, 1982 and 1981 - 17 - MICROFILMED BY —JORMMICR46CAB��� - CEDAR RAPIDS • DES MIDIS I 99ZL r,. u M J Assets - At Cost Balance Elimina- Balance Estimated January 31, Acquisi- tions And January 31, Life In 1981 tions (Transfers) 1982 Years Land $ 389,917 $ . - - S - - S 389,917 - - Buildings 1,592,864 845,784 (33,173) 2,471,821 30 Leasehold improvements 1,810,407 166,158 - - 1,976,565 3-40 Furniture, fix- tures and equipment 1,884,187 208,327 4,601 2,087,913 3-10 Construction in progress 14,719 34,733 33,173 16,279 - - 55,692,094 $1,255,002 S 4,601 $6,942,495 Accumulated Depreciation Depreciated Balance Deprecia- Elimina- Balance Cost January 31, tion tions And January 31, January 31, 1981 For Year* (Transfers) 1982 1982 Land $ _ - $ - - $ - - $ - - $ 389,917 Buildings 417,383 94,699 - - 512,082 1,959,739 Leasehold improvements 835,737 79,347 - - 915,084 1,061,481 Furniture, fix- tures and equipment 1,426,777 1691966 4,601 1,592,142 495,771 Construction in progress - - - - - - - - 16,279 52,679,897 S 344,012 S 4,601 $3,019,308 $3,923,187 * Depreciation for the year has been computed by the following methods: Straight-line $234,563. Declining -balance 109,449 $344 , 012 - 17 - MICROFILMED BY —JORMMICR46CAB��� - CEDAR RAPIDS • DES MIDIS I 99ZL r,. u M J i 'L r 1, i I j 1 F I I i j I. I I I � s City of Iowa City MEMORANDUM DATE: May 27, 1982 TO: City Council and City Manager FROM bbug Hillstrom, Planner RE: "1982 Iowa City Rental Housing Survey" During the week of March.22, 1982 students from the University of Iowa's Urban & Regional Planning program and City Staff con- ducted a rental vacancy survey of apartment units in Iowa City and Coralville. The Survey was done by phone. Information was gathered on over 5,000 rental units. The attached "1982 Iowa City Rental Housing Survey" explains the findings of the survey. The rental vacancy study is one component of a rental housing analysis of the Iowa City area which is currently being under- taken. MICROFILMED BY L.~ DORM MICR CAB CEDAR AAPIDES M { + f I z- A 1, .I { I z- A - i( �W !I "F!: � I JORM MICROLAB ml J_ 1982 IOWA CITY RENTAL HOUSING SURVEY MAY 1982 Prepared by the Department of Planning and Program Development City of Iowa.City, Iowa Doug Hillstrom and Marianne Milkman Survey Staff: Jim Parmeter. John Goeldner Jim Truitt Graphics: Pat Westercamp The data for this survey was collected, aggregated, and partially analyzed by graduate students in the University of Iowa's Urban and. Regional Planning program. The City of Iowa City would like to express its appreciation to these students and to Dr. Mickey Lauria for their work on this project. MICROFILMED BY I" - """"JORMMICR#CAB'" CEDAR RAPIDS DES MOINES MIR 9 93 _M 'q i +j 1 � 1 i j I � s 9 93 a —. M1 Summary and Conclusions The overall vacancy rate for rental units in multi -family structures in the Iowa City metropolitan area was found to be 1.6 percent. This vacancy rate is far below the five percent rate considered desirable. Vacancy rates increase as the distance from Iowa City's central business district increases. Within one mile of the Old Capitol the vacancy rate was a miniscule 0.3 percent. The vacancy rate for apartments located more than one mile from the Old Capitol (but within Iowa City) was 2.2 percent. Coralville's vacancy rate was 3.2 percent. As the number of bedrooms in a unit increases, the probability that it will be vacant also increases. The vacancy rates for units by bedroom size were: three bedroom (2.1X), two bedroom (1.90%), one bedroom (1.31X), and efficiency (.73X)• The strong demand for smaller units may be the ue tosthe large increase in single person households which occurred during Mean rents of vacant units did not differ significantlyfrom the man rtant ents of occupied units. Rent "gouging" does not app ear to reason for vacancies. Rents are higher in Iowa City than in Coralville. One reason for Iowa City's higher rents is the strong attraction of living near the University and Iowa city's central business district. Between 1975 and.1982 Iowa City rents increased at about the same rate as therental housing the ame pe onnt of the e o sumerePrice Index. Thus, Iowa City rents grew MICROFILMED BY l- J CORM MICR#LAES CEDAR RAPIDS DES MDIYES ' f 993 R i 2 OVERALL VACANCY RATE In March 1982 the Department of Planning and Program Development undertook a multi -family rental housing survey of the Iowa City/Coralville/University Heights housing market. The survey work was done by phone by University of Iowa planning students. Information on rents, number of bedrooms, and vacancies was gathered on over 5,000 units in multifamily rental structures out of a total of approximately 9,500 units. Although some information on sleeping rooms and duplexes was also inadvertently gathered, the goal of this study was limited to determining the vacancy rate of rental units in structures with three or more units. The survey attempted to determine an overall vacancy rate of apartment units for the week of March 22nd. It should be emphasized that this survey did not attempt to compute an annualized vacancy rate like the Planning Department's 1975 Rental Vacancy Survey. If this survey had been done in the fall, the vacancy rate might have been lower; in late spring it might have been higher. Of 5,885 units surveyed, 192 were vacant or not for rent. One hundred five (105)ncluding the units in Of these units were in the Lakeside Apartment complex. I Lakeside, the vacancy rate was 3.2 percent. Excluding Lakeside, the vacancy rate was about 1.6 percent. Since many of the units in Lakeside were marginally habitable, or were not being offered for rent by the managers of the complex, this report will assume that the "true" March 1982 vacancy rate was 1.6 percent. The "Lakeside problem, and the methodology of the survey, are discussed in greater detail in the appendix of this report. I In most housing markets, a vacancy rate of five percent is considered desirable to provide adequate housing opportunities and to contain housing area vacancy rate of 1.6 percent is still too low to achieve these oals�ces; the 993 � 14ICRDFI LI4ED BY ' J -JORM MICR LA B ! � CEDAR RAPIDS DES MOIRES f 3 VACANCIES BY The proposition that housing close to Iowa City's DISTANCE central business district and the University of Iowa is in great demand is a part of the conventional wisdom that few would question. This rental housing survey found that housing near the University is indeed in great demand and that vacancy rates decrease as one approaches the Iowa City central business district. The study divided rental units into three categories: 1) locations within one mile of Old Capitol, 2) locations more than one mile from Old Capitol but within the corporate boundaries of Iowa City, 3) locations in Coralville. One hundred forty-four apartment complexes (containing a total of 4,250 privately owned rental. units) were plotted on a map in order to group the units into the categories. Vacancies within one mile of Old Capitol were practically non-existent. The vacancy rate was a mere 0.3 percent. The vacancy rate increased to 2.2 percent for units beyond the .one mile limit. The vacancy rate in Coralville was even higher - 3.2 percent. 1' MICROFILMED BY �JORMMIC R+LAB� t CEDAR RAPIDS DES MOINES j I J411 - 993 I i N 1'r 4 r-. DThe vacancy rate of apartment complexes with more than 32 units (1.7 percent) was slightly greater than the vacancy rate for apartment complexes RATEwith less than 32 units (1.3 percent). The greater vacancy rate for larger complexes is easy to explain. Almost all of the large complexes are located more than a mile from Iowa City's Old Capitol, while many of the smaller apartment complexes are situated within a mile of Old Capitol. Distance, not the size of the apartment complex, is the key factor in.determining the vacancy rate. ii i i. i I� i 1 i I I t i 4 93 MICROFILMED BY 1. -_"-"-DORM--MICR�ICAB -1 i CEDAR RAPIDS • DES MOIYES J� 5 There seems to be some correlation between the number of bedrooms in a unit and the probability that the unit will be vacant. The vacancy rate of three bedroom units is about three times as great as the vacancy rate of efficiency units. As the number of bedrooms in a unit increases, it is more likely that it will be vacant. Total number Number of of units vacancies Vacancy rate Efficiency 274 2 0.73% One -bedroom 2,451 32 1.31% Two-bedroom 2,475 47 1.90% Three-bedroom 285 6 2.11% The lower vacancy rate for smaller units may be due to the decrease in household size that occurred during the past ten years. As household size declined and the number of single person households increased (by 85 percent during the past decade), the demand for smaller units probably also increased. This may be the reason for the extremely low vacancy rate of efficiency and one bedroom units. n 3 IdICROFILMEO BY � ' .l.. L.� JORM 'MICR+GAB" ti.. k I CEDAR RAPIDS • DES MOINES I -- A J 6 r� VACANCY RATE BY RENT The condition and size of a rental unit, its location, and its rent are a few of the factors which determine whether a unit is occupied or vacant. Of the vacant units surveyed' by this study, some had unusually high rents. Many others had normal or below average rents. The mean rent of all vacant units in each bedroom class was found to be almost identical to the mean rent of the entire sample. Thus, the study did not find evidence to support the hypothesis that most vacancies are caused by landlords charging excessive rents. Of course, SOME vacancies undoubtedly are due to excessive rents charged by landlords, but the size and appeal of the unit and its proximity to Iowa City's central business district are probably of equal importance. Mean Average Rents of Occupied and Vacant Units Efficiency One -bedroom Two-bedroom Three-bedroom All Units $194 $253 $347 $524 Vacant Units $205 $259 $343 $516 n1 MICROFILMED BY JORM.. _.MICR(11LA B.. L CEDAR RAPIDS • DES 1401 SES R i I I r 993 J 1 I i i 'v .i' 7 The following table provides information on the number of units for which information on rents was gathered, the range of rents charged for each type of unit, the mean average rent for each type of unit, and the standard deviation of each type of unit from the mean average rent. �' i IdICRDFI UdED BY JORM"-MICR#LA9- '. `J J1 CEDAR RAPIDS • DES MtlINES II _ # of Units a Mean Rent Standard Deviation Efficiencies 357 $80-250 $194 $30 One -bedroom 1,693 $90-435 $253 $33 Two-bedroom 1,934 $125-525 $347 $59 Three-bedroom 203 $350-650 $524 $105 �' i IdICRDFI UdED BY JORM"-MICR#LA9- '. `J J1 CEDAR RAPIDS • DES MtlINES II _ Iowa City (more than one mile from the c The most important factors determining the rent of a unit are its quality, date of construction, and location. If it were possible to find units of identical quality and age, it would probably be the case that the units closest to the Iowa City central business district would have the highest rents. Mean Average Rent by Location One- Two- Three - Efficiency bedroom bedroom bedroom Old Capitol) -- $280 $364 -- Iowa City (entire city) $193 .$266 $358 $526 Iowa City (within one mile of Old Capitol) -- $256 $351 -- Coralville $195 $248 $330 $516 This study did not find an because it as impossible to controlabsolute between correlation for the age andquality of the units. In Iowa City, many of the new large apartment complexes have been constructed more than a mile from the central business district. This helps explain why the mean average rent of one bedroom units in Iowa City as a whole ($266) is greater than the mean average rent of one bedroom units located within one mile of the Old Capitol ($256). The one bedroom units lcoated close in are not as new or modern as the units in large apartment complexes. Comparing rents in Iowa City and Coralville, the mean average rents for one, two, and three bedroom units in Iowa City are higher than in Coralville. Although several factors may be responsible for this difference in mean rents, the most important factor is probably the willingness of renters to pay higher rents for units in Iowa City. 141CROEILMED BY -`- -DORM-MICR#LAB- I{ CEDAR RAPIDS • DES MOIRES I "4_ UM Ix J1, 9 1975 RENTAL It is difficult to compare the findings of this HOUsiNG SURVEY study with the conclusions of the 1975 Iowa City Rental Housing Survey. This study attempted to determine• the vacancy rate for a single week in March 1982. The 1975 study computed an annualized vacancy rate. This study gathered information on units in Iowa City and Coralville, while the 1975 study dealt only with the units in Iowa City. The earlier study gathered information on single-family, multi- family, and duplex rental units. This survey collected data on rental units in multi -family structures only. Due to the differences between the two surveys, any comparison of data must be tempered by a bit of skepticism. Despite the methodological differences of the two studies, the vacancy rates of the surveys are not dissimilar. The 1975 study concluded that the annual vacancy rate was approximately one percent. This study found a vacancy rate of 1.6 percent. More importantly, both studies found the vacancy rate to be well below five percent. In order to compare 1975 and 1982 rents, mean rents for Iowa City in 1982 were computed. The following table provides more information on Iowa City mean average rents in 1975 and 1982. in the last column of the table, 1982 rents have been deflated by the rent component of the Consumer Price Index so that 1982 rents are expressed in 1975 dollars. Comparing the 1975 rents to the 1982 CPI adjusted rents, it is apparent that rents in Iowa City have increased at about the same rate as in the U.S. as a whole. Iowa City Rents 1975-1982 Mean Rent Mean Rent CPI Adjusted Rent 1975 1982 (1982 Rents x .63564) Efficiency $132 $193 $123 One -bedroom 166 266 169 Two-bedroom 233 358 227 993 MICROFILMED BY 11 -- "JOR M -"'MIC Rfi/CA B I CEDAR RAPIDS • DES MOINES J� APPENDIX MICROFILMED BY �, 1".-JORM' MICR+LA13 CEDAR RAPIDS - DES MOINES �I 2 q. APPENDIX MICROFILMED BY �, 1".-JORM' MICR+LA13 CEDAR RAPIDS - DES MOINES �I 2 r r� to The data gathering for the vacancy rate survey was carried out by three graduate students from the Department of Urban and Regional Planning at the University of Iowa. The students were provided with a list of apartment addresses, owners' names and telephone numbers for the Iowa City urbanized area. Only complexes containing three or more units were included. The list was prepared by the Department of Planning and Program Development using the records of the Iowa City and Coralville Housing Departments, and previous surveys. The students conducted a telephone survey during a three day period beginning March 22, 1982. At least three attempts were made to contact each owner or manager of rental units who had a local telephone number. Calls were made at various times of day. In a few cases, where the owner was on vacation or.the data was not readily available, the information was obtained during the week following the basic survey. Each owner was asked for specific information on the number and size of units owned, rents charged, and the number of vacant units in the complex on the !Lai of the survey. In addition, owners were asked how long the units had been vacant and whr he/she owned rental units elsewhere. This last question resulted in the addition of a number of apartment complexes to the original list. Information for each apartment complex was recorded on a survey form (see attached sample). Owners who live out of town or out of state were not contacted, and some local owners could not be reached or were unwilling or unable to supply information; as a result, the survey covered approximately 62 percent of all rental units in the urbanized area. Some owners, while willing to provide information on vacancies, would not reveal the rents charged. Rent figures were obtained for 43 percent of all rental units. Data was gathered for all privately owned rental units, University of Iowa married student housing, and subsidized elderly and low-income housing. All these units were included in overall vacancy rate calculations; however, subsidized units of all kinds were excluded from vacancy rate by distance and rent calculations. A number of rental units were excluded from the survey, even though information on these units was available. Sororities, fraternities, University dormitories, duplexes, and houses rented as single units were not included in the final tabulation of results. In addition, the Lakeside Apartment complex of 400 units was excluded from the data. This complex has had severe maintenance problems and listed 105 units as vacant. However, at least half of these units were not fit for habitation and had been posted by the City or voluntarily closed by the management of the complex. Other units were only marginally habitable, e.g., they lacked adequate heating and cooling. It was therefore impossible to find out how many units were truly "vacant" (i.e., rentable) at the time of the survey. MICROFILMED BY I DORM MIC RbLAB CEDAR RAPIDS • DES MOINES I I 943 1 k1 11 1 In the week following the original survey period a spot-check survey was conducted to determine the validity of the original data. Each surveyor randomly selected five locations that had reported vacancies and five that reported no vacancies. The selected locations and their phone numbers were then checked .against "for rent" ads in local newspapers, the listings of the University's rental clearinghouse, and yard signs at the locations. This spot- check generally confirmed the accuracy of the original data.. The discrepancies that occurred can easily be attributed to the "word of mouth" advertising used by many landlords, especially those with few units. After completion of the telephone survey, the data was compiled to provide overall information on the number of vacant rental units in the Iowa City urbanized area. In addition, the vacancy rate was analyzed in relation to size of units, size of complex, rent and location. A comparison was also made of i rents in relation to distance from the Central Business District (CBD) and Pentacrest. Comparisons were made between three categories: units located one mile from the CBD, over one mile from the CBD, and units located in Coralville. j Insufficient data was available to provide significant information on the length j of time units remain vacant. From the few replies received, it appeared that overall units were rarely vacant for more than two weeks, a result which is not surprising considering the low vacancy rates in the area. I 1 i i I. i t �r 943 141CROFILMED BY ` �. "JORMMICR#CAB�� CEDAR RAPIDS • DES MOINES IF HOUSING VACANCY QUESTIONNAIRE Location I Zone Phone # Source LL MGR TEN Persons All A Type Lof -Units Per Unit owe sleeping room ii efficiency I bedroom 2:bedroom 3+ Bedroom Other Locations I k Ave. Rent Notes MICROFILMED By A '-JORM"'MICR+LLAB� CEDAR RAPIDS • DES MOINES A J� 1'r i MICROFILMED BY I j _ JJJ 'JORM"'MICR+LAB-- CEDAR RAPIDS DES MOINES q93 .� y1n - MICROFILMED BY I j _ JJJ 'JORM"'MICR+LAB-- CEDAR RAPIDS DES MOINES q93 .� y1n -0 I I r 5 i ' MICROFIL14ED BY "JORM MIC R#LAB" f CEDAR RAPIDS • DES MOINES I M T w TH F s � 1PM-Job Evaluatio s 9(Conf OAM-Staff Mee tin13PM-Senior Room) (Conf Room) Center 2s30PM-Broadband 12noon-CCN (Public Comm (Senior Ctr) Telecommunication Library, Room A) 7PM-Resources -Commission (Conf 3:30PM-Housing Conservation Cormr Room) Comm (Public (Conf Room) 7:30PM-Informal C) 7:30PM-Formal P&Z P&Z (Conf Room) 7CommM(Coafrfront (Chambers) om) TAM to -Magistrate Court (Chambers) BAM-Housing Appeals LOAM -Staff Meeting (Conf Room) BAM-Magistrate Board (Conf Room) Court (Chambers) 4:30PM-Informal4PM-Broadband 4:30PM-Hoard of-� Council (Conf Rm)Telecommunications Ad'ustment - Commission (Conf )(Cambers) •30PM-Airport 7:30PM-Council 7PM-Parks & Rec Comm (Cont Room) jChambers) Comm (Rao Ctr) 13 rq is c i7 it it 8AM-Magistrate LOAM -Staff Meeting AM -Magistrate Court (Chambers) (Conf Room) Court (Chambers) PM -Broadband 7PM-Informal Telecommunications •30PM-Formal P&Z Council (Conf Rm) COMM (Conf Rm) (Chambers) 7:30PM-Informal P&Z (Law Library) BAM-Magistrate LOAM -Staff Meeting SAM -Magistrate Court (Chambers) (Conf Room) Court (Chambers) 4:30PM-Informal Council (Conf Rm) 7:30PM-Council (Chambers) 4PM-Library Board (Library Conf Rm) 17 Air 21 �o 8AM-Magistrate 1(Conf Court (Chambers) mtaaffof�eeting 7PM-Informal Council (Conf Rm) 7:30PM-Human Rights Comm. (Eng. Conf. Rm.) I I r 5 i ' MICROFIL14ED BY "JORM MIC R#LAB" f CEDAR RAPIDS • DES MOINES I it L MICMILMED By JORM MICROLAB CEDAR RAPIDS • DCS '101'IES ml �I A � I City of Iowa City MEMORANDUM DATE: June 4, 1982 TO: City Council FROM: City Manager RE: Material in Friday's Packet Copy of letter from Mayor Neuhauser to the Iowa Congressional delegation regarding historic preservation. S Memoranda from the Assistant City Manager: a. Contract Compliance Policy and'Program b. Fair Housing Assistance Program 91` Memorandum from the Senior Planner regarding County Home Water Main. �1 Memoranda from. the Department of Public Works: a. Water Main Extension to Johnson County Home b. Kirkwood Avenue Culvert poi Memorandum from the Police Chief regarding proposed ordinance. 1G� Memorandum from the President of the Library Board of Trustees regarding the Iowa City Public Library Foundation. Copy of letter from McManis Associates, -Inc., regarding a national survey concerning the management and operations of local police departments. lee Article: Malfunctions Plague Fancy New GM Buses, Forcing Cities to Dake Expensive Repairs. /01 Me.Ke�n..au... YdC�.'. OQJC\OPMPN\ �.CO��I1ViA�CY . �JItlS �J� OI�(AIDJ6Yy �11< /nn i i MICROFILMED BY -JORM-'MICR#LAB'- - . 1 _.), CEDAR RAPIDS DES MOINES i A CITY OF CIVIC CENTER 410 E. WASHINGTON Si May 26, 1982 OWA I IOWA CITY, IOWA 52240 CITY (319) 356-5000 Senator Charles Grassley United States Senate Washington, D.C. 20510 Dear Senator Grassley: During the past year the City of Iowa City has been trying to promote the conservation and improvement of some of its older neighborhoods through a number of historic preservation activities. One of the City's initiatives has been to nominate two areas in the North Side of Iowa City to the National Register of Historic Places. These two North Side districts contain many architecturally and historically important houses, including several constructed during the period 1839-1857 when Iowa City was the State Capital. Placement of the two North Side districts on the National Register will enable owners of rental and commercial properties in the North Side to qualify for the 25% rehabilitation tax credit enacted into i law by the Economic Recovery Tax Act of 1981. The City has encouraged owners of rental and commercial properties to take advantage of the Tax Act by rehabilitating their property. •As word of the tax benefits for restoring historic structures has spread, many home owners have become interested in historic preservation only to be disappointed to learn that landlords can claim the tax credit while home owners cannot. The Iowa City Council strongly believes that the tax credits currently i available to landlords and owners of commercial property should also be offered to home owners. In order to make historic preservation a more effective tool for preserving and rejuvenating Iowa City's older neighborhoods, home owners need concrete monetary incentives to restore older homes. It is these home owners who provide the stability and spirit of neighborhood improvement which is needed to upgrade our older neighborhoods. I would like to urge you to sponsor legislation to grant tax credits to home owners for the restoration of historic structures so that Iowa City can preserve its older neighborhoods. i Sincerely, ' 1 Mary C. euhauser Same letter sent to Senator Jepsen Mayor and Representatives Leach and Evans. bj5/18 i I 19.6 i 141CRGFILMED BY "JORM--MICRbLAB i( CEDAR RAPIDS - DES MOIYES Ii _y J_ 'City of Iowa Cite= MEMORANDUM Date: June 3, 1982 To: City Council From: Assistant City Manager Re: Contract Compliance Policy and Program The Iowa City Affimative Action Policy refers to the adoption of a Contract Compliance Policy. Approval of this policy was to have occurred last year. However, it became readily apparent to the staff committee assembled to develop this policy that such a policy statement, in the absence of an implementation program, would not be adequately functional. The committee, composed of Phyllis Williams, Anne Carroll, Cathy Eisenhofer, Jim Hencin, Chuck Schmadeke and Dale Helling, has finalized the attached document. We feel that it provides a comprehensive mechanism whereby the City not only issues a policy statement but also is able to enforce and monitor compliance for all City operations. It further serves as a vehicle to routinely convey the City's policy and intent to potential contractors, consultants and other vendors with whom the City may do business. The attached- document has been reviewed by legal staff and approved by the Iowa City Human Rights Commission. A resolution to approve this program will appear on your June 22, 1982, regular meeting agenda. Time for discussion at an informal session can be scheduled prior to that time if Council wishes. - bj3/8 cc: Phyllis Williams MICRO(ILMED BY -J - JORM -MICR#CA CEDAR RAPIDS DES MOINES Y �.l co AMEW m . PLI ANCE PRO MICROFILMED BY -DORM MOCR46LAE3 B CEDAR RAPIDS - DES MOMESS CITY OF IOWA CITY ap. is TABLE OF CONTENTS PAGE j SECTION I General Policy Statement 1 a SECTION II Assurance of Compliance 2 I 1 SECTION III Suggested Steps to Assure 9 I Affirmative Action SECTION IV Definitions 12 i I: � I . 1 9 i .I.......ED .. -.-JORIVI'�-tV11CR+CAB` ! .'• ~" I CEDAR RAPIDS • DES MDINES � r I SECTION I - GENERAL POLICY STATEMENT It is the policy of the City of Iowa City to assure equal employment opportunity in all City contract work. This policy prohibits discrimination by the City's contractors, subcontractors and vendors, and requires them to take affirmative action to ensure that applicants employed or seeking employment with them are treated equally without regard to race, color, creed, religion, national origin, sex, sexual preference, disability, marital status, and age. It is our intention to administer this policy in such a manner as to assist employers who are contractors or subcontractors with the City in designing and implementing Affirmative Action Programs so that all citizens will be afforded equal accessibility and opportunity to gain and maintain employment. PROVISIONS: 1. All vendors requesting to do business with the City must submit an approved Equal Employment Opportunity Statement. 2. All City contractors, subcontractors or consultants with contracts of $10,000 or more must abide by the requirements of the City's Contract Compliance Program. Emergency contracts are exempt from this provision. 3. Contracting departments are responsible for assuring that City contractors, subcontractors and vendors are made aware EEO/Affirmative Action reporting of their responsibilities and receive the appropriate reporting forms. A notification of requirements will be included in any requests for proposal. . 4. Prior to commencement of work, the completed Equal Employment Opportunity Statement or required material must be received and approved by the City. 5. Contractor compliance during the course of the contract with the City of Iowa City will be monitored by the contracting department. 6. Once a contractual relationship exists between a contractor and the City, as with any contractual provision, the City retains the right to withhold EqualnOpportunity and -Affirmative act aActionoutlined at satisfactory ahe time of contract award and/or to disqualify a contractor from future bidding for a specified period'of time. VYWA mm r'- I I 141CROElL14ED BY I --JORM MICR4LAB . 1 CEDAR RAPIDS • DES MOINES I � I I ' 1 n .' 2 r SECTION II - ASSURANCE OF COMPLIANCE The following sets forth the minimum requirements of a satisfactory Affirmative Action Program which will be reviewed for acceptability. PLEASE RETURN PAGES 2 THROUGH 5 OF THIS SECTION TO THE CONTRACTING DEPARTMENT PRIOR TO THE EXECUTION OF THE CONTRACT. CONTRACTOR, PLEASE CHECK THE APPROPRIATE STATEMENT: 1• _ This contract is federallyfunded (paragraphs a -g apply) 2• _ This contract is not federallyfunded (paragraphs a -c apply) During the performance of this contract, the contractor agrees as follows: (For the purposes of these minimum requirements, "contractor" shall include consultants and subcontractors.) a. The contractor will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, sexual preference, disability, marital status, and age. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, sexual preference, disability, marital status and age. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment I or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to postin conspicuous places, available to employees and applicants for employment, notices to be Provided by the contracting officer setting forth the provisions of this nondiscrimination clause. b. The contractor will, in all solicitations or advertisements for employees Placer'by oror on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, national origin, sex, sexual preference, disability, marital status, and age. C. The contractor will send to each labor union or representative of workers with which he or she has 7 -collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment. d. The contractor will coM& with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. e. The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his or her books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. 996 a i MICROFILMED BY JORM MIC R6LAB CEDAR RAPIDS DES MOINES i j T- _�l 3 f. In the event of the contractor's noncompliance with the nondiscrimination cTauses of this contract or with h any of such rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. g. The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for non-compliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States. 3. Have you written an Equal Employment Opportunity policy statement? a. If YES, where is this statement posted? b. Please provide a copy. NOTE: Sample statements are available upon request. 4. What is the name of your Company's Equal Employment Opportunity Officer? (Please print) Phone number 5. The undersigned agrees to display the following posters at the worksite, conspicuously placed, for the duration of the contract. EEOC/OFCCP Poster Age Bias Poster Wage Discrimination Poster NOTE: The City can provide assistance in obtaining the necessary posters. ' MICROFILI4ED BY 1_J JORM MIC RbLA9` CEDAR RAPIDS • DES MOIRES J Yes No Yes No 996 _Ao J _� N9 6, Goals and timetables For assistance in completing the table below, please refer to the INSTRUCTIONS and DEFINITIONS on pages 6-8. ti i '= Chi LTJ MICROFILMED BY JORM "MICR#LAB'_ l CEDAR RAPIDS • DES MOINES I J EXISTING EMPLOYMENT GOALS TO INCREASE MINORITY AND FEMALE EMPLOYMENT JOB CLASSIFICATIONS v) Total Minorities Males Females Males Females 0) Minorities Females ate of ant - ate o —anti - hire or cipated hire or promotion promotion Official/Managers Professionals Technicians Office/Clerical Craft Workers (Skilled) Sales Workers I.Operatives ..Semi -skilled) • Laborers (Unskilled) Service Workers . Apprentice. Trainees hi -the -job TOTAL Chi LTJ MICROFILMED BY JORM "MICR#LAB'_ l CEDAR RAPIDS • DES MOINES I J 5 7. How do you currently inform applicants, employees, and recruit- ment sources of your equal employment opportunity policy? Yes No 8. Do you provide a working environment free of harassment and intimidation for your female and minority employees? 9. Do you provide nonsegregated facilities and company activities for all employees? 10. If you rely in whole or in part upon unions as a source of your workforce, are they aware of your comeitment to affirmative action and equal employment? a. How do you make them aware of this commitment? The above responses to questions 1 through 10, are true and correctlyreflect our affirmative action and equal employment policies. The employment figures and goals contained within the Table (#6) are true and accurate and we will make every effort to achieve the goals which we set. Firm Company Name Signature Print Name Phone Number Title Date NOTE'- PAGES 2 THROUGH 5 ARE TO BE RETURNED TO THE CONTRACTING DEPARTMENT PRIOR TO EXECUTION OF THE CONTRACT. 11� F 7M1CR+LAB 1BF.S I I -40 qu J '"% 6 INSTRUCTIONS for completing the chart located on page 4, question N6, GOALS & TIMETABLES. 1. Complete the EXISTING EMPLOYMENT section. Job Classification definitions appear on pages 7 & 8. 2. The statistics located below, indicate the AVAILABILITY of women and minorities in your recruitment area. Compare thesestatistics with your current employment figures. If statistics are available per job classification, then make your comparisons in that manner, if the statistics are not broken down, compare your total minority and female work force figures with the total availability statistics. i) Johnson County labor force statistics: 2.05% minority 44.04% female ii) A more detailed breakdown by job classification may be available for your location. This information may be obtained from the Civil Rights Specialist. 3. If your current employment percentages for women and minorities, either in a particular job classification or as a whole, is lower than the statistics indicate is available, then UNDERUTILIZATION of either minorities or females exist. 4. If UNDERUTILIZATION exists, determine the number of women or minorities needed to make your work force percentages equal to the availability statistics. This figure represents your GOAL to increase minority and female representation. If you do not have statistics by job classification .set a goal in the job classification you are most likely to have employee movement in. 5. When, during the length of the contract, will you attempt to achieve this goal? - that is called a TIMETABLE, and should appear in the GOALS TO INCREASE MINORITY AND FEMALE EMPLOYMENT SECTION. NOTE - DEFINITIONS for capitalized words in the above narrative, appear in Section IV of this document. i MICROFILMED BY -DORM"MICR#LAB -1 { I+ CEDAR RAPIDS • DES MOINES j 994 A J_ r H 7 JOB CLASSIFICATION DEFINITIONS - TO BE USED IN COMPLETION OF QUESTION /16, pg. 4 1. Managers and Administrators: Occupations requiring administrative Pegg who set broad policies, exercise overall responsibility for execution of these policies, and direct individual departments or special phases of a firm's operations. Includes: officials, executives, middle management, plant managers, department managers, superintendents, salaried supervisors who are members of management. 2. Professionals and Technicians: Professionals are considered to be persons working in occupations requiring either college graduation or experience of.such kind and amount as to provide a comparable background. 3. Technicians: Technicians are those whose work requires a combination of Basi—`c sci ntific knowledge and manual skill which can be obtained through about two years of post high school education, such as is offered in many technical schools and junior colleges, or through equivalent on-the-job training. 4. Office and Clerical: All clerical -type work regardless of the level of difficulty, where the activities are predominantly non -manual, though some manual work not directly involved with altering or transporting the products is included. Includes: bookkeepers, cashiers, collectors, messengers, office helper, office machines operator, shipping and receiving clerk, stenographers, typists, secretary, telephone operators. . 5. Skilled Crafts: Manual workers of a relatively high skill level, having a thorough and comprehensive knowledge of the processes involved in their work. They exercise considerable independent judgment and usually receive an extensive period of training. Includes: building trades, hourly paid foremen and leadmen who are not members of management, mechanics and repairmen, skilled machinery occupations, electricians. 6. Sales Workers: Occupations engaged wholly or primarily in direct selling. Includes: advertising agents and sales agents, insurance agents and brokers, real estate agents and brokers, sales agents and sales clerks, grocery clerks, cashier -checkers. 7. Operatives (Semi -skilled): Workers who operate machine or processing equipment or perform other factory -type duties of an intermediate skill level which can be mastered in a few weeks and require only limited training. Includes: apprentices, operatives, attendants, delivery and route drivers, truck and tractor drivers, dressmakers, weavers, welders. 8. Laborers (Unskilled): Workers in manual occupations which generally require no special training. They perform elementary duties which may be learned in a few days and which require the application of little or no independent judgment. Includes: garage laborers, car washers, gardeners, lumber workers, laborers performing lifting, digging, mixing, loading and pulling operations. 9. Service Workers: Workers in both protective and nonprotective service occupations. Includes: attendants, clean-up workers, janitors, guards, waiters and waitresses. 10. Apprentice: Persons employed in a program including work training and related instruction to learn a trade or craft which is traditionally an apprenticeship, regardless of whether the program is registered with a Federal or State agency. MICROFILMED BY I -DORM MIC Rf>1CAB I CEDAR RAPIDS DES MOfYES I qqb _�o 1 I 8+ 11. Trainees (On-the-job): Production... persons engaged in formal training for cra tsperson when not trained under apprentice programs, operative laborer, and service occupations. MINORITY GROUP IDENTIFICATION American Indian or Alaskan Native: all persons having origins in any of the original peoples of North America and who maintain cultural identification through tribal affiliation or community recognition. Asian and Pacific Islanders: all persons having origin in any -of the original peoples o the tar ast, Southwest Africa, the Indian Subcontinent, or the Pacific Islands. Black: all people having origins in any of the Black African racial groups not of Hispanic origin. Caucasian: (Not of Hispanic origin), includes persons having origins in any of the original peoples of Europe; North Africa, or the Middle East. Hispanic: all persons of Mexican, Puerto Rican, Cuban, South or Central American, or other Spanish Culture or origin, regardless of race. These definitions and identifications should be retained for future use. IITCROFILI4ED BY �..'_. __JORM._.MICR46L:-A B._ CEDAR RAPIDS • DES MOINES I q96 1 I I 1 I ' % J ti J g SECTION III - SUGGESTED STEPS TO ASSURE AFFIRMATIVE ACTION I. COMPANY POLICY i Determine your company's policy regarding equal employment and affirmative action. Write this policy out and post it in a conspicuous place so that it is known to all your employees. Furthermore, disseminate the policy to all potential sources of employees and to your subcontractors asking their cooperation. The policy statement should recognize and accept your responsibility to provide equal employment opportunity in all your employment practices. This responsibility should include: -correcting any and all discriminatory practices and conditions which presently exist -taking appropriate remedial actions to correct past inequities -taking a results -oriented approach, in other words, affirming the policy through actual minority and female hires and by maintaining a "single standard" principle in your unit so that employees are evaluated, recognized, developed and rewarded on a fair and equitable basis. Iy In regards to dissemination of this policy, this can be done through ; the use of letters to all recruitment sources and subcontractors, personal contacts, and employee meetings. I 2. EQUAL EMPLOYMENT OPPORTUNITY OFFICER Designate an equal employment opportunity officer or at minimum someone should be given the responsibility of administering and promoting your company's affirmative action program. This person should be placed .within your organizational structure so as to emphasize the importance of the program. 3. INSTRUCT STAFF Your company personnel staff should be aware of and required to abide by your affirmative action program. All employees authorized to hire, supervise, promote and discharge employees or recommend or are involved in such actions should be trained and made to comply with your policy and the current equal employment opportunity laws. 4. RECRUITMENT ? (A) Let potential employees know you are an equal employment i opportunity employer. This can be done by identifying yourself j ! on all recruitment advertising as "an equal employment opportunity employer". j (B) Use recruitment sources that are likely to yield minority and ifemale group applicants. Word-of-mouth recruitment will only 996 r'- MICROFILI4ED BY "DORM "MICR#LAB- CEDAR RAPIDS • DES MOBES � 0 I 10 perpetuate the current composition of your workforce. Recruitment sources that fail to send minorities and females should be evaluated for continued use. Send all recruitment sources a letter annually which reaffirms your commitment to equal employment opportunity and requests their assistance in helping you hire minorities and females. (C) Analyze and review your company's recruitment procedures to identify and eliminate discriminatory barriers. (D) Select and train persons involved in the employment process to use objective standards and to support affirmative action goals. (E) Periodically review job descriptions to make sure they actually reflect major job functions and do not require higher qualifications. (F) Review the job application to insure that only job related questions are asked. Ask yourself "Is this information necessary to judge an applicant's competence for performing the job applied for?" (G) Only use job-related tests which do not adversely affect any particular group of people. (H) Carefully monitor interviews and interviewees' actions. Biased and subjective judgments in personal interviews can be a major source of discrimination. 5. APPRENTICESHIP AND OTHER TRAINING Where applicable, you should assure that full use will be made -of any existing labor/management sponsored programs designed for the purposes of recruiting and training minority and female applicants and employees. 6. MONITOR ALL POLICIES AND PRACTICES In order to assure your policy is effective, at least twice per year a review of the following should occur: -APPLICANT FLOW - a record for each applicant, indicating the person's name, race, sex, referral source, date of application, position applied for, and disposition (hired or not hired) -HIRES by race, sex, department, job title and starting salary PROMOTIONS and TRANSFERS by race and sex -DISCHARGE and TERMINATIONS by race, sex, reason for discharge and termination. Review of the above information will allow you to determine discrepancies that exist, if any, within your work place. Such discrepancies could include different starting salaries for men and women doing similar jobs, inconsistent and arbitrary discharges or 1 ' MICROFILMED BY � .l. `JORM"MICR4�LAD- -1 CEDAR RAPIDS • DES MOINES I! ...f Y:::._. 9W ti JA promotions and transfers. Furthermore, a review of this information could indicate a need to either seek additional or new recruitment sources to obtain a wider selection of applicants. NOTE: Forms for monitoring practices and policies are available upon request from the City's Civil Rights Specialist 7. SET GOALS Once the policy has been determined, and the practices are monitored accordingly to determine actual results, goals may need to be set if your workforce still falls short of having a representative number of minorities and females relative to their availability in the community. Goals to hire or promote minorities and females should be set once per year and these goals should be communicated to the appropriate employees. Increasing and/or improving your minority and female workforce representation can also occur through improved hiring and selection procedures, which have already been discussed, and through non - biased promotion, transfer and training policies. In regards to the latter three, companies must make sure procedures for selecting candidates for promotion, transfer and training are based upon a fair assessment of an employee's ability and work record. Furthermore, all companies should post and otherwise publicize all job promotional opportunities and encourage all employees to bid on them. i MICROFILMED BY ' JORM.- MICR#LA9 CEDAR RAPIDS DES MOINES - I 496 '111 J 12 SECTION IV - DEFINITIONS The definitions typed in all capital letters refer directly to the City's contract compliance program. The other definitions are for your own information. AA: Affirmative Action AAP: Affirmative Action Program - an active, planned effort to bring more minorities and women into the organization at all levels through non- discriminatory hiring and promotions, and to apply the same benefits and opportunities to all workers. The affirmative action program is the practical action taken to implement the equal employment policy. ADVERSE IMPACT: A company may have a policy which, although applied neutrally, has a negative or adverse impact upon a particular group of employees. An example would be a minimum height requirement that is not job-related and could possibly eliminate a high percentage of Orientals and women. APPLICANT FOR EMPLOYMENT: A person who completes a formal application form, or by some other means (resume, letter, request, etc.) indicates a specific desire to be considered for employment. An APPLICANT LOG should record requests for employment made in person whether or not an application form is completed. APPLICANT FLOW DATA OR APPLICANT LOG: A numerical compilation of employment applicants showing the specific numbers of each racial, ethnic and sex group, who applies for each job title (or group of job titles requiring similar qualifications) during a specified time. AVAILABILITY: The percentage of minorities or women who have the skills required for entry into a specific job or classification, or who are capable of acquiring the required skills. BFOQ-Bona Fide Occupational Qualifications: The law allows employers to hire or promote by sex in rare cases where a worker of a certain sex is really needed for the job. This is interpreted narrowly, to mean that sex-related anatomy is required - for instance, it is legal to hire a man if you need a bass singer or a male model; a woman if you need a soprano or a model for women's clothes. It is not legal to specify a man for so-called "heavy" work; if it can be proved that there is no woman who can do the work; BFOQ may exist. The problem with the BFOQ is that employers may be trapped by stereotyped thinking into a belief that a job can only be done by one sex when that is not necessarily true - and the employer is then vulnerable to discrimination complaints. It is safer to test the capacity of individual applicants, regardless of sex, making � MICROFILMED BY ' � JQRM 'MIC ROLA B 1 � CEDAR RAPIDS - DES MOINES. I I q96 1 _y r I% c 13 sure that you test only for the qualities required by the job and not for more strength (or whatever) than is actually required. BLACK: The preferred term for people of Afro-American heritage. The term is a philosophy of life that indicates pride in the African heritage and culture, unlike the more outdated and sometimes derogatory terms "Negro" or "colored person." BUSINESS NECESSITY: A term sometimes used by employers who argue that sex is a BFOQ for a given job. Title VII gives "business necessity" to the BFOQ by saying, in Section 703(e): "It shall not be an unlawful employment practice for an employer to hire... classify...or employ any individual... on the basis of his religion, sex, or national origin in those certain instances where religion, sex or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise." This is narrowly interpreted. For instance, one airline claimed flight attendants or stewardesses had to be women because a survey showed that passengers wanted comforting and friendliness from stewardesses, and women were better constituted than men to be comforting and friendly: The Court said this was not a business necessity. The airline was in business to transport people safely from one place to another. The flight attendant's job was not connected with the airline's major function and the "business necessity" arguments could not be used. Even if the flight attendants were all male and all surly, the airline could carry on its normal operation of safe transport. CHICANO: A male Mexican -American. The female is called "Chicana." Both are included in the larger group known as SSA's, or Spanish -surnamed Americans. CIVIL RIGHTS ACT OF 1964: Overall, the Act outlaws discrimination against women and minorities in employment, voting, public accommodations, public education, the use of public facilities, etc. This is a Federal act passed by the U.S. Congress. For affirmative action purposes, the point of interest is Title VII of the Act, which prohibits discrimination in employment and creates the federal Equal Employment Opportunity Commission (EEOC) for enforcement purposes. Title VII was amended in 1972 to broaden the number of private employers. In addition, the EEO Act included state and local governments and political subdivisions under Title VII coverage, prohibited discrimination in Federal employment with enforcement given to the U.S. Civil Service Commission, and created a central coordinating body between all anti -discrimination enforcement agencies. i MICROFILMED BY - JORM --MIC R#LAB' CEDAR RAPIDS • DES MOINES ! M r -~ 14 ,— COMPLIANCE: As used in this document, compliance refers to employment practices which are in line with the Iowa City Contract Compliance requirements. These requirements are indicated on pages 1-5. CONFIDENTIALITY: Information or reports obtained by or submitted to the Civil Rights Specialist in the course of monitoring the City of Iowa City Contract Compliance Program will not be disclosed to the public when such disclosure would serve no, public purpose and would give advantage to competitors of the contractor from whom the report has been received; however, such information may be disclosed to a governmental agency conducting an investigation involving alleged illegal discriminatory practices and the contractor or parties charged in accordance with the Iowa City ordinance pertaining to Human Rights. CONTRACTING DEPARTMENT: The City of Iowa City department that is handling the particular contract. DEPARTMENTAL SENIORITY: In some companies, disadvantaged workers have traditionally been isolated in a few departments where jobs were poorly paid and promotional opportunities were nonexistent. The only way out was to transfer to another department, but some companies and unions specified as part of their collective bargaining agreements that workers who transferred could not carry their accrued seniority into the new departments. Instead, they had to begin as if they were newlolicies of departmental seniority, red workers. saying the policies tend to los have ck ted hem into the old departments and minimize their opportunity. Courts have generally agreed with the complaining workers. Furthermore, if the employers intent is not discriminatory but the effect of the system is discriminatory, and if the employer is so notified but does not change the seniority system, the EEOC will deduce that the employer intended to discriminate. Antidiscrimination agencies and disadvantaged workers prefer plantwide seniority, which allows workers to maintain the seniority they have earned from the date of hire if they transfer to new departments. DISCRIMINATION: j Illegal treatment of a person or group whether intentional or unintentional based on race, color, sex, age, national l o yin, re Bion, creed, marital status, sexual preference or disability. The term also includes the failure to remedy the effects of past discrimination. DISPARATE TREATMENT: Unequal or dissimilar treatment of employees similarly situated because of their race, sex, age, or other impermissable basis. MICROFILMED BY 1 I JORM MIC R(SLAB- _ CEDAR RAPIDS DES MOINES i i _ .I 996 1 _V r 15 EEO: A general term meaning "equal employment opportunity." EEOC: The Equal Employment Opportunity Commission, a federal agency created by Title VII to enforce the Civil Rights Act of 1964. It also enforces the amendments passed in the EEO Act of 1972. The EEOC does not perform routine compliance reviews. Generally, it acts only when a complaint is filed against an employer by an aggrieved job applicant, employee, group of employees, or organization authorized to represent aggrieved employees. EEO -1 FORM: A form which must be filled out byra ivate employers with 100 or more employees and sent to the EEOC once a year. Employers report how many minorities and women they have as officials and managers; professionals; technicians; sales personnel; office and clerical workers; skilled craftsmen; semi -skilled operatives; laborers; service workers. EEO -2 FORM: Corresponding form on apprentices in each trade or craft, broken out by race and sex. This report must be filled out annually by joint labor-management a ren�ticesh_ip committees which have five or more apprentices, at eastl one supports gnTemployer with more than 25 employees and at least one union sponsor with 25 or more members or a union hiring hall. EEO -3 FORM: The same as EEO -2, but filled out each year by local unions. EXECUTIVE ORDER 11246: Issued by President Johnson in 1965. It says employers with government contracts or subcontracts may not discriminate on the basis of race, color, religion or national origin. Sex was omitted in this order, but added by Executive Order 11375. Therefore, many people refer to this order as "Executive Order 11246 as amended." GOAL: A target number or percent of women and minorities to be hired, promoted or transferred to various job classifications (as defined on pages 7 and 8) within a given period of time. The number is usually computed by the number of available and qualified disadvantaged workers in the labor area. A "goal" should not be confused with a "quota." A quota is a ceiling figure designed to require hiring a certain number of a particular group to the exclusion of others. "We will take up to 10% women in this job category but no more." A goal is a floor, a minimum number of people to be included in -- e.g., "we will take at least 10% women in this job category." A quota may be designed to keep things basically as they were, including only token numbers of the 'others". A quota may or may not be appropriate under law, depending on whether past discrimination existed. A goal is designed to alter the status MICROFILMED BY I 1 1. "J ORM "MICREILA6 j CEDAR RAPIDS • DES MOINES 1q& _y J_!I 16 quo over time. Setting and achieving goals turns a company's equal employment opportunity statement into a reality. GOOD FAITH EFFORT: Employers sometimes say they have made a good faith effort in affirmative action but "we could not find any qualified...". Courts tend to look carefully at this defense on the basis that regardless of intent, if workers have been hurt the law must make them whole. Accordingly, good faith efforts should be made in all areas of employment including but not limited to: a. employment advertisements b. internal and external dissemination of the company's EEO policy and affirmative action program C. designation of a company EEO officer d. development of and implementation of non -biased employment Practices (hires, promotions, transfers, discharges, employee benefits, etc.). Employers must keep a written record of such actions in order to show good faith effort. NOTE - For more detailed information please discuss this with the City's Civil Rights Specialist. JOB-RELATED QUALIFICATIONS If an employer says a High School degree is needed for the job, it must be true. The employer may have to prove that it is impossible for the large majority of workers to do the job adequately without a High School degree. At one time, employers often required higher skills than necessary in a conscious effort to keep out disadvantaged applicants; others required the higher skills without discriminatory intent but the result was the same. The new emphasis on job-related qualifications makes room for employers to demand the skills they do require, but forbids the old, unnecessary escalation. MINORITIES: All.persons classified as American Indian, Alaskan Native, Asian or Pacific Islander, Black or Hispanic. NEW HIRE: A worker added to an establishment's payroll for the first time. OFCCP: The Office of Federal Contract Compliance Programs, U.S. Department of Labor. It is responsible for enforcing Executive Order 11246 as amended. OLD BOY NETWORK: Slang term which refers to hiring by word of mouth, which used to be the way the good job openings were known only by white males. Therefore it was only white males who got them. The word "old" in this usage does not refer to age, but to long acquaintances. Affirmative action tries to weaken the exclusionary effect of the MICROFILMED BY 1 ' '"JORM MICR46LA19 ' J CEDAR RAPIDS • DES MOINES I 1 q96 J_� 17 network by requiring employers to actively recruit in minority and women's organizations and media, and by requiring goals for the hiring and promotion of minorities and women. PROTECTED CLASS CATEGORIES: Those groups of people protected by the laws against discrimination. In Iowa City, the protected categories are: race, color, creed, religion, sex, age, national origin, disability, marital status and sexual preference. The latter two categories are not included in the area of housing. (Sexual harassment has been determined to be a discriminatory practice affecting both males and females.) RECOMMENDATION FOR COMPLIANCE: The recommendation made by the Civil Rights Specialist to the appropriate persons certifying that a contractor has satisfactorily i completed all bid conditions, as specified by the City of Iowa City Contract Compliance Program. RECRUITMENT: A search for job applicants. Help wanted ads and contacting employment agencies are typical recruitment steps. REHIRE: i To return a worker to the•payrolI after a complete -break in service. REMEDIAL ACTION: Actions undertaken by an employer to remedy the effects of past discrimination. Often it is affirmative action but in more stringent doses. For instances, if black workers are.25% of the workforce in a contractor's labor area, affirmative action might require that the contractor hire 25% black workers. Remedial action might be to hire 50% black workers until the contractor is at parity, or 25% black workers in all job categories. REQUISITE SKILLS: Those skills that make a person eligible for consideration for employment in a job. REVISED ORDER: Guidelines issued by the OFCCP outlining what employers must do to comply with Executive.Order 11246 as amended. I i REVISED ORDER 14: Internal guidelines issued by the OFCCP which instruct their own compliance officers in conducting a compliance review. The order also outlines what documents employers must make available to the government's compliance officer. SELECTION: The hiring process which comes after recruitment and interviews. In this step the employer decides who will get the job. I i f i i � Id ICAOFILMED 9Y J , JORM MIC R(L 4Ei 1 CEDAR RAPIDS • DES MOINES 996 I 18 r ti SSA: Spanish -surnamed American. SYSTEMATIC DISCRIMINATION: One or more practices which have many discriminatory off -shoots so that an entire organization screens out disadvantaged workers in the end. An example would be department seniority, described on page 14. TIMETABLES: A time frame within which an employer tries to reach the established affirmative action goals. UNDERUTILIZATION:. Employment of members of a race, ethnic or sex group in a job or job group at a rate below their availability within the company's recruitment area. Depending on the job, recruitment area may be local, regional or national. VALIDATION: Process of determining whether tests given for employment in a certain job actually predict good or bad performance on the job. (See Job -Related Qualifications" on page 16.) Validation is designed to eliminate false criteria which screen out disadvantaged groups. At the same time, validation protects the employer's right to hire only those workers who are qualified. The validation is ordinarily done by an independent organization with expertise in that area. WORD-OF-MOUTH ADVERTISING: Similar to Old Boy Network. Employers run the risk of perpetuating the effects of past discriminatory practices if they maintain a word- of-mouth recruitment policy. Since this policy relies upon current employees informing friends and relatives of vacancies, and since past discrimination often has substantially restricted minority group representation in an employer's workforce, it follows that non -minorities will be included in the flow of information regarding job openings at a higher rate than min%rities. Such discrimination may also result from word-of-mouth recruiting, as where information about job openings is disseminated by male department heads limiting the likelihood that females will be apprised of employment opportunities. - - - 3 ' MICROFILHED BY 1_ "-JORM" MICR+LAB` Illj CEDAR RAPIDS • DES MOINES I M B R a °d�9a1 Approved q96 i J _y City of Iowa Cit' MEMORANDUM Date: June 4, 1982 To: City Council From: Dale Helling, Assistant City Manager Z7/Y Re: Fair Housing Assistance Program (FHAP) Last year the City sent an application to the HUD Fair Housing and Equal Opportunity Office, requesting certification of the City's Fair Housing Ordinance as substantially equivalent to the fair housing laws provided by Title VIII of the Civil Rights Act of 1968. The substantial equivalency of our laws has now been recognized by HUD, and a notice to that effect was published in the Federal Register, Vol. 47, No. 92 on May 12, 1982. As a result of this recognition, Iowa City is now eligible to apply for funds under the Fair Housing Assistance Program (FHAP). For two years the City is eligible for non-competitive funding for Capacity Building (up to $20,000 per year), Training (up to $4,000 per year), and Complaint Monitoring and Reporting Systems (up to $3,000 per year). We will shortly be submitting an application to HUD for approximately $14,000 for Capacity Building and $1,700 for Training. The Capacity Building budget includes 20% of the salary of the Civil Rights Specialist and the salary for a half-time Fair Housing Specialist. This will 'enable the City to process fair housing complaints expeditiously (as required by HUD), and to carry out an outreach program to landlords and tenants. Training workshops are required by HUD, and will involve the Human Rights Commissioners as well as City Civil Rights and legal staff. Under FHAP, competitive funds for education and outreach, technical assistance to real estate groups and institutions, and any projects which improve the City's capability to ensure fair housing are also available. We will investigate possible projects suitable for funding under the competitive FHAP program at a later date. bj4/7 996 MICROFILMED BY "JORM-"MIC R�LAB- { CEDAR RAPIDS DES MOINES j r\ _40 I :ity of Iowa Cite; MEMORANDUM Date: June 4, 1982 To: City Council From: Dale Hel ling, Assistant City Manager Re: Fair Housing Assistance Program (FHAP) /Y'/l/ Last year the City sent an application to the HUD Fair Housing and Equal Opportunity Office, requesting certification of the City's Fair Housing Ordinance as substantially equivalent to the fair housing laws provided by Title VIII of the Civil Rights Act of 1968. The substantial equivalency of our laws has now been recognized by HUD, and a notice to that effect was published in the Federal Register, Vol. 47, No. 92 on May 12, 1982. As a result of this recognition, Iowa City is now eligible to apply for funds under the Fair Housing Assistance Program (FHAP). For two years the City is eligible for non-competitive funding for Capacity Building (up to $20,000 per year), Training (up to $4,000 per year), and Complaint Monitoring and Reporting Systems (up to $3,000 per year). We will shortly be submitting an application to HUD for approximately Building$14,000 for p budgetncludesu20% o the salary of thuilding and $1,700 fore Civil Training. The Specialist and the salary for a•half-time Fair Housing Specialist. This will'enable the City to process fair housing complaints expeditiously (as required by HUD), and to carry out an outreach program to landlords and tenants. Training workshops are required by HUD, and will involve the Human Rights Commissioners as well as City Civil Rights and legal staff. Under FHAP, competitive funds for education and outreach, technical assistance to real estate groups and institutions, and any projects which improve the City's capability to ensure fair housing are also available. We will investigate possible projects suitable for funding under the competitive FHAP program at a later date. bj4/7 99 T J/ �r MICROFILMED By .1. JORM MICR+LAB-- ~1 CEDAR RAVIOS DES MDINES i i A _;p I J,� --.City of Iowa Cites., MEMORANDUM = Date: June 4, 1982 To: City Council From: Doug Boothroy, Senior Planner Re: County Home Water Main The Public Works Department views the extension of utilities as a request for an immediate level of service, the design of which should account for ultimate needs. It is a long-range solution to an immediate problem which may not be cost effective. The extension of a sanitary sewer out to the County Home provides a good example. From an engineering point of view, the appropriate course of action is to view the direct costs involved and construct a sewer large enough to accommodate full development without considering the short-range impacts. From a planning standpoint, it would be argued that sewers should only be extended as programmed or as compact and contiguous development occurs. The same analogy can be used regarding the extension of a water main to the County Home, i although in this instance, it has more far reaching impacts than by merely the extension of a sanitary sewer. The City's adopted Comprehensive Plan suggests that compact and contiguous growth is more appropriate to the cost-effective provision of services than by permitting scattered and leapfrog development. The staff has developed an AG Agricultural Zone and is developing a short range plan with the specific intent of accomplishing this goal. The AG Zone has already been identified as a "key issue" in the- draft of the new zoning ordinance. The premise upon which the AG Zone would be applied is as an interim zoning of remote areas of the community until public utilities have been provided to these areas. It is and has been the legal staff's opinion that agricultural zoning could not be used as a "holding zone," i.e., the only basis upon which we can establish agricultural zoning is as a temporary zone. iAs was indicated in the Southwest Area Study and discussed with Council, large portions of the western part of Iowa City were proposed to be zoned in the short range for agricultural use to inhibit unplanned and scattered growth. As a policy, utilities would not be extended to these areas in the short range unless they were extended at the property owner's expense. The presumption is that a private property owner would not find it feasible to develop land if utilities had to be extended for a considerable distance. Consequently, if a water main is extended to the County Home property and other intervening properties, to which a sanitary sewer has already been extended, we will have no alternative but to rezone the areas for urban development and allow development in these areas to occur. The Council should, therefore, seriously consider whether it i I 1 141CROFIL14ED BY MICRIJLAB_ I % �) CEDAR RAPIDS - DES MOINES I Ll , �,1 2 r-, is appropriate at this time to extend a water main to the County Home in disregard of the resultant costs involved. Such actions would be inconsistent to the Comprehensive Plan, the capital improvement program, and policies discussed with the City Council to be incorporated in the updated plan. The efficient supply of public services is measured in terms of providing public services at minimum expense, taking into consideration all direct and indirect costs and benefits to enable the taxpayer to get the most for his/her money. It is questionable whether the extension of a water main to the County Home would meet efficiency criteria, i.e., the net benefit would be greater than some other alternative in providing an "adequate" supply of water to the County Home. It is, of course, difficult to determine the benefits to the County Home in supplying a certain amount of water as is obviously the case in measuring the benefits of any philanthrophic agency. The costs are likewise difficult to measure. In addition to the direct costs of providing a water main to the County Home, there are indirect net costs in providing services to a development allowed to occur as a result of the extension of the water main. The question is one of determining the resultant net benefit (cost) per person housed in the County Home. Considering all future costs involved, it could be argued that by any methodology used in cost - benefit analysis, it is questionable whether the net benefit would indeed be positive. An alternative to the extension of a water main which should be explored, is the provision of a new, perhaps deeper, well to the County Home and a reservoir or water storage tanks for the containment of water necessary in case of a fire. Such action was required by the City of the Makada Subdivision in the county, a multi -family development. This obviously is the only alternative to a use which does not have the convenience of a public water system. A correlation should not be made between the extension of a water main to the County Home and the extension a water main to the Hunter's Run development on Rohret Road. The distinction must be made between that area to which services can be provided more efficiently and those areas more remotely located to which the provision of services would either be more difficult or more expensive. The Hunter's Run development was, as presented in the Southwest Area Study, located in an area for which short range development was anticipated. Finally, in the analysis of this matter, I noted that the costs for a 12" water main were proposed to be divided equally between the City and County. It should be mentioned that if population were used as the basis for distributing the costs of the improvement, the residents of Iowa City would be paying 13/16 of the cost. Since the residents of the City are also residents of the County, not only would they be paying 1/2 of the cost as residents of the City but Wb 1' 141CRor ILRED BY i _ -JORM MICR+LAE3 LJ CEDAR RAPIDS • DES M01I4ES 1 _;O I'r City of Iowa citf:', MEMORANDUM Date: June 3, 1982 To: Neal Berlin and City Council From: Chuck Schmadeke, Director of Public Works Re: Water Main Extension to the Johnson County Home Iowa City has been requested to extend its water distribution system to the Johnson County Home. Iowa City Ordinance No. 75-2773 states that "when water mains are extended, the property owners benefited thereby as determined by the Director of Public Works shall be charged a uniform fee based upon the cost of extending a water main six (6) inches in diameter together with all the necessary valves, fire hydrants, and other parts." Several parameters are considered when sizing a water main extension. They are as follows: system continuity, sufficient flow for fire protection, sufficient pressure for domestic use, and compliance with requirements of DEQ and the Uniform Plumbing Code. S,s& ,t ng Con;t�iouyi�j. A water system should supply a uniform distribution of water eaF ly u, p pressures throughout the City in order to provide an equal level of service to all users. A uniform distribution system is also necessary to obtain a favorable rating from the insurance services office. Sufficient Flow for Fire Protection. A flow of between 1750 gpm and 2000 gpm is required for fire protection. A positive pressure within the water main must be maintained during fire flows to insure against contamination of the water system. A 12 inch water main will provide 1800 gpm while maintaining a minimum residual pressure of 20 psi within the main. Sufficient Pressure for Domestic Use. Assuming a peak flow rate of 60 gpm for domestic use, the available pressure to overcome internal'pipe friction losses incurred from the plumbing system and fixtures within the building complex is 20 psi with a 6 inch water main and 24 psi with a 12 inch water main. Cglimn h &a do U21 Mbin Cod Requirements. DEQ requires that w t W-8 c W rat L0rmP u , awal al'nAbte low— Re— hd at the required fire flow while maintaining a minimum residual pressure of 20 psi within'the main. Also, water mains shall have a minimum size based an an hydraulic analysis utilizing 20 year design high flow demands. The Uniform Plumbing Code requires 15 psi residual pressure within the building system at the fixture furthest from the source. A 12 inch water main is the minimum size that can be extended to the Johnson County Home and satisfy all of the above parameters. Public Works, therefore, recommends the extension of a 12 inch water main. tp3/2 141CROFILMED BY JORM MICR6LJAB )IN S CEDAR RAPIDS - DES M0114ES am -�N <i • 1 � i i' I i i. L City of Iowa City MEMORANDUM DATE: June 3, 1982 TO: City Council and City Manager FROM: Denny Gannon X - RE: Kirkwood Avenue Culvert Due to the inclement weather of the past winter and accompanying high water in Ralston Creek and with the rainy Spring, the contractor has been delayed in completing construction at the Kirkwood Avenue culvert site. It appears the Kirkwood Avenue and Dubuque Street intersection will be -opened to traffic by June 15, 1982. 111CRDFILMED BY "DORM '."MIC RCAB'— CEDAR RAPIDS • DES MD14ES /000 • I 1 � i i ;j I i �JJ l c i i d Y i 1 i I i. i i ;j I i �JJ l i i I City of Iowa city MEMORANDUM DATE: May 27i 1982 TO: City Council FROM: Harvey 0. Miller RE: Amendment to Chapter 5, Code of Ordinances Attached to this memorandum is a proposed ordinance for your review. The purpose of this ordinance is to specify not only the closing hours of liquor -serving establishments but to establish reasonable limits of time in which the premises must be vacated by unauthorized persons. The term "unauthorized persons" is defined as any but the permit holder or licensee or his/her agents or employees who are on the premises for more than 15 minutes after stated closing time. The ordinance would allow the permit holder/licensee or his/her agents or.employees to remain on the premises for a longer time if actually engaged in cleaning, maintenance, or necessary work on the premises. The major amendment to Section 5-10 of the Code is found in paragraph (2) (c)• MICROFILMED BY "JORM--MICR¢L AEi' l CEDAR RAPIDS DES MOINES ■® _40 1 ORDINANCE NO. I ORDINANCE AMENDING CHAPTER 5 BY ADDING A NEW SECTION 5-10 TO THE CODE OF ORDINANCES OF THE CITY OF IOWA CITY, IOWA. SECTION I. PURPOSE. The purpose of this amendment is to prescribe closing hours for certain establishments which sell alcoholic liquor or beer, to prohibit presence on said premises by unauthorized persons when said premises are required to be closed, and to regulate additional hours when certain establishments may remain open for business. SECTION 2. AMENDMENT. Chapter 5 of the Code of Ordinances of the Uty of Iowa City, Iowa, is hereby amended by adding the following new section: Section 5-10. Hours of Business: (a) "Closing hours." Subject to the provisions of Section 5-10(d), the following closing hours shall apply to any and all premises covered by a ' Class "A", B", or "C" liquor control license or Class "B" beer permit under this chapter: i (1) Said -premises shall be closed for business between the hours of 2:00 a.m. and 6:00 a.m. on any weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 a.m. on the following Monday; however, premises covered by the holder of a liquor control license or beer permit who has been granted the privilege of -selling alcoholic liquor or beer on Sunday may remain open for business between the hours of noon and 10:00 p.m. on Sunday. (2) For the purposes of this chapter, "weekday" is defined to include Monday, Tuesday, i Wednesday, Thursday, Friday, and Saturday. f n i "JORM MICR#LAS Ill CEDAR RAPIDS . DES MOVIES j � r W J1, (b) "Other uses." No premises described •• in Section 5-10(a) shall be used for any commercial, recreational, entertainment, or other use or purpose between the hours said premises is required to be closed as provided in this chapter. (c) "Presence on premises after closing." It shall be unlawful for any person, nor shall any licensee or permittee under this chapter or his/her agents or employees permit any person to enter or remain on any premises described in Section 5- 10(a) between the hours said premises is required to be closed for business as provided in this chapter except that persons already in said premises at time of closing shall be allowed an. additional fifteen (15) minutes to depart; however, the licensee or permittee and his/her agents or employees may be present on said premises after closing for the purposes of cleaning, maintenance, or performing other necessary work on said premises. (d) "Additional hours." The City may authorize by resolution of the City Council that any establishment holding a Class "A", "B", or "C" liquor control license or Class "B" beer permit for whom the sale of goods and services other than alcoholic liquor or beer constitutes fifty (50) percent or more of the gross receipts from the licensed premises may remain open additional hours beyond the hours prescribed in Section 5-10(a) but only for the purpose of selling goods and services other than alcoholic liquor or beer. To apply for such authorization, the licensee or permittee shall submit a written and verified application to the City Clerk, upon a form provided by the City Clerk, listing certain 141CROFILMED BY 1-� 'JORM MICR40LAB j CEDAR RAPIDS • DES MOINES ems.._ _y i i 1 L�. I 3 r-7 information including the following: 1) total gross receipts for the past 90 days' from the establishment, 2) gross receipts for the past 90 days from the sale of alcoholic liquor and/or beer, and 3) additional hours requested to remain open. Said application shall be accompanied by copies of the establishment's most recent federal and state income tax returns and annual sales tax report. In the event that the applicant receives authorization to remain open for additional hours, the applicant shall file with the City Clerk on a quarterly basis a written report, upon a form provided by the City Clerk, setting forth gross receipts information, copies ,of quarterly sales tax reports, copies of federal and state income tax reports when filed, and such further pertinent information as the City Council may require. The City of Iowa City by its authorized agent shall be permitted full access during all reasonable business hours to all records, reports, -audits, tax reports, and any other.documents or papers pertinent to gross receipts from any establishment which has applied for or received authorization to remain open additional hours. Failure to make reports or to permit access to records as required in this section shall be cause for the withdrawal of the additional hours authorization by the City Council. SECTION 3. REPEALER. parts of ordinances provision of this repealed. All ordinances and in conflict with the ordinance are hereby SECTION 4. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such ajudication shall not affect the validity of the Ordinance as a whole or any section, 6 MICROFILMED BY -""JORM MICR#LAB' CEDAR RAPIDS • DES M014ES I I J_ r 1 MEMORANDUM Iowa City Public Library Date: June 1, 1982 To:. City Council r�/� \ /1 From: Ed Zastrow, President, Library Board of Trustees L ` � Re: Iowa City Public Library Foundation This memo is written to address recent Council inquiries regarding the newly -established Iowa City Library Foundation. Although your request was specific, it seems like a good time to also relay some general information. BASIC INFORMATION The initial budget for the Iowa City Library Foundation, $7,000, is from the Library's Gift and Bequests Fund. This budget was approved as a one- time, start-up donation. No tax monies have been utilized to establish or support the Foundation. It is expected that .this and more will be returned to the Library through gift monies from the Foundation during its first year of operation. The Foundation has been incorporated as a charitable,' non-profit corporation under Iowa law. The initial Foundation Board consists of four Library Board members: Zastrow, Bartley, Lyman, and Drum; and five community members: Lynda Ostedgaard, President; Lynn Rowat, Treasurer; Dave Dierks; John Koza and Randy Bezanson. Foundation members will serve two-year terms. Foundation gifts will be made to the Library's Gifts and Bequests Fund to provide public disclosure and accountability. The Foundation Board, though independent of the Library Board, will consider a range of options for gifts to the Library as identified by the Library Board. The Library Board will have input to the Foundation Board via its four members. We anticipate the Foundation Board will function in consensus with the Library Board in helping to meet the needs of the Library. j The Foundation Board has hired a well-qualified coordinator, Pat Forsythe. Ms. Forsythe holds a masters in library science degree and was i a full-time professional fund-raiser at the California Institute of Technology. She will operate from her home and is fully appreciative that this is a challenging growth opportunity. The Foundation's target for the next year is to raise $25,000. The Foundation aspires to be basically self-supporting by the end of the first year, June 1983. i iooa r 141CROFIL14ED BY " JORM MIC R6]MqjE CEDAR RAPIDS DES 1 � V _y r The Foundation is not to be confused with the Friends of the Library. The Friends, established in 1975, represents our primary reservoir of volunteer talent. The Friends organized and administered the cost-saving move to the new Library. The Friends conduct an annual used book sale which has enabled them to contribute $25,000 to the Iowa City Public Library during the last two years. A 1981 gift from the Friends funded signage at the Library. This year a $15,000 Friends gift has been earmarked primarily for collection development. The Friends help provide the ongoing volunteer corps which has served the Library so faithfully during this first and difficult year. Succinctly stated, you may 4pin the' Friends and give your time or you may gjU your money to the Foundation. BACKGROUND AND RATIONALE The Iowa City Public Library, like other educational and public institutions such as museums, universities, and civic organizations, has historically benefitted from private philanthropy. Many services currently at the Library trace their origins to private giving, e.g., the record collection, children's educational toy collection, the business reference collection, and many pieces of audiovisual and 'graphic equipment. At the time the new Iowa City Library was being built, the Library Board privately raised approximately $50,000 to address needs not covered by referendum monies. These funds, both dedicated and discretionary, were used in the following ways: to develop the parent-child resource center, to enlarge the collection (primarily books), to buy additional microfilm readers and reader/printers, to provide building signage and display cases, and to provide equipment and materials for handicapped persons. During the same period the Library was awarded three federal grants worth approximately $75,000 to provide equipment to increase public access to cable TV, to build a demonstration collection of subject materials in non - print formats, and to generally enlarge the adult book collection. These grants which benefitted Iowa Citians emanated from sources other than local tax dollars. A review of our Board minutes over the past two years will reflect our intention to institutionalize fund-raising via a foundation once the new Library was open. The sub -committee of the Board which worked on this project drew upon the experience of other public libraries which have established Foundations. They formulated the following general purpose for the foundation: To provide an independent source of funds for the enhancement and support of the Iowa City Public Library 1 MICROFILMED BY -' ' --DORM MIC Rli1CAB CEDAR RAPIDS • DES MOINES /coa J1, / � 1 0 -by developing increased community support for library goals j-by increasing community awareness of library needs m -by soliciting and accepting gifts and bequests. Although our interest in establshing a foundation dates to 1979, several recent conditions have intensified the need for new revenue sources: 1. The Reagan Administration impounded all Library Services and Construction Act of 1954 (LSCA) funds for the current fiscal year. J Through court action by several states including Iowa, these funds have just been released, but the effect has been very disruptive to programs benefitting local libraries. i 2. The Reagan Administration has proposed zero LSCA funding for the next j fiscal year. i 3. Competition for grants from foundations has intensified with the s. drop in federal support for all kinds of activities. (National foundations have never been good sources of support for local public a libraries.) 4. As the recent explosive growth in usage of the Library demonstrates, meeting the demands of a sophisticated, active library' community t will be a challenge for the Board and Council. A private fund- raising effort can assist in meeting those demands which are beyond the scope of the Library's operating budget. 5. Knowing that the City faces an economic future of less or no growth in tax revenues with steadily increasing costs, several Councilors i at each of the last three annual budget hearings have asked the Library Board what we are doing to increase revenues. While philosophically rejecting the idea of user fees, we have attempted to respond to this request in five ways: --Automation. Allowed transfer of staff to public service jobs; greatly increased revenues from fines and lost materials; provides lots of hard data to better project, direct, and target d services. f --Volunteers. About 100 hours a week are now being contributed and this will increase in FY83. --Gift Materials. Gift books are soliticed and account for nearly 20 percent of all acquisitions. i i I ` /boa 111CROFILMED BY J DORM MICR+LAB- � CEDAR RAPIDS • DES MO1ME5 I 1'r 1 --Contracts-for Service. The fee for service to rural Johnson County has been raised substantially in the past three years and now includes a surcharge for debt service. This fee is $80,000 in FY83. The non-resident family fee card at $60 is the highest in the state. --Establishment of the Iowa City Library Foundation. I hope this. information has been useful to the Council. The Board welcomes the opportunity to discuss Library -related topics with the Council. If Council has any further information requests from the Library Board, please do not hesitate to contact me or any member of the Library Board of Trustees. bdw/sp cc: Library Board of Trustees Library Foundation Board Library Foundation Coordinator i141CROFILMED BY j .-DORM-"""MICR+LAB'- CEDAR RAPIDS • DES MOINES A w 1 i � i I 1 i I I 1 McMar is ASSOCIATES. INC ManaBcment and Rcxar<h C;onwln,tts r i I E I I M RECEIVED 1982 May 28, 1982 n1con a Mr. Neal G. Berlin City Manager City of Iowa City Civic Center Iowa City, Iowa 52240 Dear Mr. Berlin: In March of this year, you and approximately 1,100 other local government officials throughout the United States were invited to participate in afnational survey concernin agement and operations of local police apartments. As we promised, we are forwarding you the attached report of the results of that survey. We were particularly interested in determining how local government is coping with the challenge of managing Police agencies is these times of increasing service demands and dwindling resources. We thank you for your assistance and hope the enclosed report will be of value to you. If you desire any additional information, please don't hesitate to contact me. Sincerely, ttM,,cnnMnnANIS ASSOCIATES, INC - Allan C. Austen, Director Public Administration Division I Enclosure j i a i 1201 Connettitvt Arxnue. Nonhxen • Washington, D.C. 20056.12021960.7680 201 Sansome Street • San Frandsen. ca. 94101.(415) 998.4087 MICROFILMED BY I 3 +- -JORMMICR#LA9 CEDAR RAPIDS • DES M014ES I j /OD3 r RESULTS OF NATIONAL SURVEY CONCERNING MANAGEMENT AND OPERATIONS OF LOCAL POLICE AGENCIES SURVEY RESPONDENTS . Approximately 1,100 local government officials throughout the United States were invited to participate in this survey in March of 1982 by completing a survey questionnaire. A total of 482 responses were received, which represents 43.8 percent of the survey questionnaires distributed. The respondents represent a cross-section of local government entities throughout the country. The police departments represented averaged 207 sworn officers and 51 civilian or non -sworn personnel, or a total staff of 258. The department sizes ranged from a high of 12,475 sworn officers to seven, and a high of 2,192 civilian employees to one civilian. KEY FINDINGS Economic conditions and budgetary dg ory trsttnints arc having an impact on police ' operating budgets and staffing levels. Over the past three years, 52.3 percent of the police agencies in the survey sam- ple have experienced either a decreese or no Increase in department staffing level: Con. versely, 87.7 percent of these agencies experienced budget increases over the some three year period, and the increases averaged 26.3 percent for the entire three years. Most of the increases were attributed to cost of living and salary adjustments. Only 5.4 percent of surveyed departments experienced budget decreases or hold -the -line budgets over the three years. I Despite the economic crunch, many departments are passing up opportunities j to reduce costs. For example, 57.2 percent of the local governments surveyed still maintain i separately staffed and equipped communications operations for police and fire. Sworn officers fully staff 15.1 percent of the police communications operations, and 37.6 of the agencies retain police supervisors for the civilian dispatchers and tele- phone clerks More then 45 percent of the agencies have given no thought whatsoever to the use of Public Safety Officers (personnel trained in both police and fire services). 1 NICROFILIdED BY I. JORM-MICROLAB, CEDAR RAPIDS DES MOINES I � X003 I _y J,� r The use of modern police management techniques appears to be increasing More than 74 percent of the responding agencies say their detective units use solvability factors to set priorities in the investigation of crimes. Nearly 87 percent of the agencies have developed crisis management plans. About 30 percent of these plans are described as being general, but the remainder are said to be designed for specific emergencies such as weather emergencies, civil disturbances, enemy attacks, hazardous waste problems, transportation accidents, and nuclear energy plant accidents. , A substantial number of mayors, city managers, and county administrators give - minimal attention to the management of their police agencies. Thirty-seven percent of the responding communities said the administrative head of government either devotes no time to supervising the management of the police agency or becomes involved only when a problem arises. CONCLUSIONS _... The results of this survey indicate that while economic conditions and budgetary restraints are making an impact on local police agencies, a substantial number continue to do business as usual instead of utilizing cost-saving techniques which have proven successful elsewhere. When we examine more controversial cost-saving approaches, such as the Public Safety Office concept, there is very little enthusiasm to undertake such efforts. On the other hand, a number of respondents spoke of a need for more creative thought and innovation in dealing with the increasing problem of crime, in- stead of attempting to solve everything with isolated infusions of additional funds. Finally, there appears to be a substantial residue of local government belief that a police department should not be given the same degree of management oversight as any other department of local government. Too many mayors and managers responded that managing the police department "is the Chief's job" so they devote no time to it unless a problem or crisis develops. As a matter of fact, 21.3 percent of the local gov emment administrative heads gave the survey instrument to their police department to fill out. It is our professional experience that innovative approaches to dealing with rising crime, reducing or containing costs, increasing productivity, and seeking more effective operations are less likely to occur when active participation on the part of the local government administrative head is absent or lacking. —2- I ' 141CROFILMED BY JORM MICRbLABI ,I CEDAR RAPIDS •DES MDI4[5 I I 1603 7 _y r L ^'1 ws- 2 �-�-yv MalfunctionsJ Plague Fancy New GM Buses, Forcing Citie s to Make Expensive Repairs By Kavtrt Toms Stol/Rep.etne/ Tru W.,, 3ru JOVtweL DETROIT -General Motors Corp. may be the pride of the Motor City, but the com- pany's stylish new buses have become some- thing of an embarrassment around town. The GM buses that Detroit began buying In 1978 for 396,00 apiece have brought the city a multitude of headaches. Kneeling buses don't kneel, wheelchair lifts get stuck, and air conditioners cause the buses to over- heat. Even a new, improved version of the bus has been causing some problems re- cently In other cines. "I could sit here and relate one defect af- ter another In these buses;" complains Rich- ard Golemblewskl, maintenance supervisor for Detroit's Department of Transportation. And Detroit Isn't alone. Dallas. Houston, San Antonio and Madison, Wis., also have had trouble with their GM blues: Together they have spent mWiotu of local and federal. dollars repairing or changing the blues. In addition, Mr. Golemblewski says, q;BiQ& mala�nanre Int' the new bt�ees �• about oaa a near- �� -red w n a ran fn rte. trmit'e older f:u ^ ^^�.• 'We Had Some Problems' Even GM concedes the buses haven't been without fault. "Being human, we had some problems." says Edward Stokel, direc- tor of public transportation at GM's GMC truck and coach division. But, he says. "we made a sincere, concerted effort to create and engineer a product that would have zero problems coming off the line." The buses In question are from GM's Rapid Transit Series B, the company's first new line In 19 years. GM began building the buses In 1977. In 1978, the federal govern. ment came out with design specifications for all bases purchased with federal funds. The RTS -11 met those criteria. Cities across the country ordered some COBB of the coaches, but since then, transit systems have been discovering one problem atter another. Probably the most vexing problem with the RTS -11 coaches has been the heating and cooling system. In an effort to make mainte- nance easier and simplify construction, GM designers installed the air-conditioning con- denser next to the radiator rather than on the lop of the bus, as In earlier models. But when dirty air filters through the condenser, it adds heat to the radiator core. As a result the engine overheats and the air condition• ing fads. IAnd. unfortunately for riders, the windows don't open.) Faulty I.IftS Wayne. Hale, the maintenance director for SaaEAntonio's3���+t .vstem estimals tri,. '.n. a tv scent S2 milUon reoalrnn e ail, cnnditioning and devising a, solution for th )rulilr�u The Tt1on7Wt the —air con- ditioners back on top of the buses. Another big headache stems from the two features that were intended to make. It eas• ler for handicapped or elderly persons to use the RTS -II. Detroit's buses, for Instance, are equipped with wheelchair M that allow physically handicapped persons to remain In their chairs while getting on or off the buses. But the Ilfts have been notoriously uncooperative. In one Instance, a lift be* came stuck midway between the ground and the doors. Because using the lift Immobilizes the bus, the Detroit transit system had to transfer all the passengers to another bus - and then Its Ilft got smck. Finally, the pas- sengers were successfully moved aboard a third bus. Mr. Golembiewskl says labor costs and repairs to the Illts have cost Detroit about 320,000 for each of the city's 307 buses, but T Even GM's new bus, the RTS -04, has some problems. The air conditioWs that caused trouble on ear- lier models were moved but are break- ing down now because of a faulty clutch bear- ing. even that ouUay hasn't solved the problem. If the buses Mt a series of chuckholes Me - trait's streets are full of them), the lifts can get knocked out of alignment, he says. The buses also have a kneeling feature that allows the driver to lower the right front corner of the bus to accommodate hendleapptd and elderly riders who have a hard time stepping up. But Detroit, as well as San Antonio and Madison, Wls„ have d1s. connected the -kneeling-feature because of repeated failures, G51 Blames Maintenance Other titles report a range of problems, Including weak motor mounts, brakes that wear out too quickly and doors that either won't open or won't close. (San Antonio says it spent about $1.5 million getting doors to operate properly.) GAJ blames most of the problems on poor J, micRorli-PED BY JORM MICR41LA6 CEDAR RAPIDS • DES MOINES maintenance. The air-conditioning prob• lems, for instance, wouldn't occur if the con- densers were, cleaned each week, says Mr: stoke]. (The top•mounted air conditioners on earlier models need cleaning only every three or four months.) Weekly cleaning Is also required, he says. for the wheelchair IUDs and the kneeling mechanism. Mr. Sto- kel contends that GM has repaired problems that were Its fault, such as cracked body panels, under the buses' one-year warranty. The federal government doesn't hold GM responsible for solving the air-conditioning problems. The Urban Mass Transportation Administration recently gave San Antonio 3360,000 in federal funds to move all the air conditioners on Its buses back to the top of the buses. And the Southeastern Michigan Transportation Authority, which includes Detroit, last week accepted a 33.9 million grant. Sr. from UMTA and 207. from the State of Michigan, to make the same changes on Its buses. An UMTA spokesman says it's up to local transit officials to be sure they buy good ade a�mistake," ucts. "if he iou bid and.it's b says of thesysteosystemsthat have had trouble with their blues. Grumman's Troubles However, the only other American-made-- bus that meets the federal guidelines, Grtun- man Corp.'s Model 870 Flxibles, also has caused problems for some purchasers. Grumman had to take back buses for re- pairs in 1980 when cracks developed In the frames. For transit officials trying to keep their GM RTS-Ils running, It doesn't always make much difference where the money. comes from -GM or the federal government -as long as the buses are repaired. "The damned air conditioner doesn't work and I want It repaired;' says Confad Mallett, di- rector of Detroit's transportation depart. ment. "My personal responsibility is that 1 get this. repaired." Now there's also some concern about GM's latest coach model, called the RTS49. The air conditioners on RTS44s are back on lop, but the Houston Metropolitan Transit Authority has had several air-conditioning failures because of a faulty clutch bearing. The part Is covered by warranty and GM says Its supplier Is working to Improve the bearings. In New York City, which had Its Grum- man Flxlbles taken out of service for awhile, the.transit authority has pulled 3Do RTS -04s off the roads because an Interlock - Ing device controlling the doors was faulty. GM also Is replacing that Item under war- ranty. But a New York transit official says her department Is getting tired of having to put up with all the problems and may do what millions of car buyers have done in re- cent years -buy foreign. ado,/ 9 r e: • .,� ;S M. Date: June 4, 1982 To: City Council From: \N' Andrea Hauer, Development Coordinator Re: Bids for the Old Public Library Site At noon today, bids were opened for the Old Public Library site. Two bids were received. These were: (1) GWG Investments//Principals--Bruce Glasgow, Joseph Glasgow, and Allen Wolfe. Bid was $165,000 for the library site and a purchase option of $205,000 for the adjacent parking lot was offered. Bidder indicated that a lease for all or part of the lot was also possible. (2) Ari Services & Information Services Inc. and Agri Library Services Assoc. Principals --Jo Anne Neuzil and Donald Kerf. Bid was $361,000 for both the library site and the parking lot. GWG proposes to use the building for offices and the remainder of the space for either retail shops or a bar/restaurant operation. Agri Services proposes to use the building for an all -'office operation. Additional information regarding these bids will be made available next week. bc5/3 1 MICROFILMED BY "JORM"-MICR4&AL19'- CEDAR RAPIDS DES MOINES i e: • .,� ;S M. Date: June 4, 1982 To: City Council From: \N' Andrea Hauer, Development Coordinator Re: Bids for the Old Public Library Site At noon today, bids were opened for the Old Public Library site. Two bids were received. These were: (1) GWG Investments//Principals--Bruce Glasgow, Joseph Glasgow, and Allen Wolfe. Bid was $165,000 for the library site and a purchase option of $205,000 for the adjacent parking lot was offered. Bidder indicated that a lease for all or part of the lot was also possible. (2) Ari Services & Information Services Inc. and Agri Library Services Assoc. Principals --Jo Anne Neuzil and Donald Kerf. Bid was $361,000 for both the library site and the parking lot. GWG proposes to use the building for offices and the remainder of the space for either retail shops or a bar/restaurant operation. Agri Services proposes to use the building for an all -'office operation. Additional information regarding these bids will be made available next week. bc5/3 1 MICROFILMED BY "JORM"-MICR4&AL19'- CEDAR RAPIDS DES MOINES