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HomeMy WebLinkAbout2017-11-21 Resolutiony -d C':0 Prepared by: Dennis Bockenstedt, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319)356-5053 Resolution No. 17-341 Resolution Naming Depositories Now therefore, be it resolved by the city council of the City of Iowa City, Iowa that the City of Iowa City, in Johnson County, Iowa, approves the following list of financial institutions to be depositories of the City of Iowa City funds in conformance with applicable provisions of Iowa Code Chapter 12C.2. The City Treasurer is hereby authorized to deposit the City of Iowa City funds in amounts not to exceed the maximum approved for each respective financial institution as set out below. Depository Name Location of Home Office Local Location Maximum Balance in effect under prior resolution Maximum Balance in effect under this resolution U.S. Bank N.A. 800 Nicollet Mall 204 E Washington St 65,000,000.00 65,000,000.00 Minneapolis, MN 55402 Iowa City, IA 52240 MidWestOne Bank 102 S Clinton St Same 100,000,000.00 100,000,000.00 Iowa City, IA 522441700 Hills Bank & Trust Co. 131 Main St 201 S Clinton St 25,000,000.00 25,000,000.00 Hills, IA 52235 Iowa City, IA 52240 Regions Bank PO Box 387 501 12th Ave, Ste 100 35,000,000.00 35,000,000.00 Memphis, TN 38147-0001 Coralville, IA 52241 West Bancorporation, Inc. 1601 22nd St., Suite 209 1910 Lower Muscatine Rd 35,000,000.00 35,000,000.00 West Des Moines, IA 50266 Iowa City, IA 52240 Bank of the West P.O. Box 73850 800 22nd Ave 75,000,000.00 75,000,000.00 Cedar Rapids, IA 52407-3850 Coralville, IA 52241 Wells Fargo Bank, N.A. 666 Walnut St 103 E College St 50,000,000.00 50,000,000.00 Des Moines, IA 50309 Iowa City, IA 52240 University of Iowa 500 Iowa Ave Same 50,000,000.00 50,000,000.00 Community Credit Union Iowa City, IA 52244-2240 CBI Bank & Trust 140 Holiday Rd Same 15,000,000.00 15,000,000.00 Coralville, IA 52241 Farmers & Merchants 200 N Devoe 2235 Mormon Trek Blvd 15,000,000.00 15,000,000.00 Savings Bank Lone Tree, IA 52755 Iowa City, IA 52246 Liberty Bank 6400 Westown Parkway 205 E College 25,000,000.00 25,000,000.00 Des Moines, IA 50266 Iowa City, IA 52240 First American Bank 1207 Central Ave 640 Highway 1 W 35,000,000.00 0.00 Fort Dodge, ]A 50501 Iowa City, IA 52246 Two Rivers Bank & Trust 222 N Main St 3292 Ridgeway Dr, Ste A 15,000,000.00 15,000,000.00 Burlington, IA 52601 Coralville, IA 52241 Cedar Rapids Bank & Trust 201 1st St SE Same 50,000,000.00 50,000,000.00 Cedar Rapids, IA 52401 Bankers Trust 221 Third Ave SE Same 20,000,000.00 20,000,000.00 Cedar Rapids, IA 52406 Resolution:17-341 Page 2 NXT Bank 119 2nd St, Ste 100 Same 2,000,000.00 Coralville, IA 52241 Hiawatha Bank & Trust 777 N Center Point Rd Same 0 Hiawatha, IA 52233 Passed and approved this 21st day of November '2017 Attest City C '"'f or. Awed by City Attorney's Office 2,000,000.00 2,000,000.00 /1/1///7 Resolution No. 17-341 Page 3 It was moved by Mims and seconded by Resolution be adopted, and upon roll call there were: AYES: NAYS ABSENT: ABSTAIN: Botchway the Botchway Cole Dickens Mims Taylor Thomas Throgmorton `- 1 CITY OF IOWA CIT - - �� COUNCIL ACTION REPO 11-21-17 �� `w ► �s 4d1;1) November 21, 2017 Resolution Naming Depositories Prepared By: Brian Cover, Senior Accountant Reviewed By: Simon Andrew, Assistant to the City Manager Dennis Bockenstedt, Finance Director Fiscal Impact: No impact Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Naming Depositories Executive Summary: The City of Iowa City maintains a list of financial institutions authorized to be depositories of the city's funds. The list that is on file needs to be updated to reflect changes that have occurred. Background / Analysis: Hiawatha Bank & Trust Company has requested to be included in the list of authorized depositories of the City of Iowa City. They request to have their maximum limit set at $2,000,000.00. The resolution naming depositories being presented would update the list of financial institutions that the City of Iowa City maintains. First American Bank has closed their Iowa City office. The closest branch First American Bank operates is in Clive, IA. The Code of Iowa requires the depositories be located in the county in which the city is located or in an adjoining county. Clive is in Polk County and Dallas County which does not meet the requirements. We request to have First American Bank removed from the list of authorized depositories. Prepared by: Mary Niichel-Hegwood, Purchasing Agent, 410 E. Washington St., Iowa City; IA 52240 (319) 356-5078 Resolution No. 17-342 Resolution approving and authorizing the Mayor to execute and the City Clerk to attest an agreement by and between the City of Iowa City and Carney & Appleby, PLC to provide Lobbying Services. Whereas, the City issued a Request for Proposal to solicit lobbying services for the City of Iowa City on August 16, 2017; and Whereas, the City received five proposals in response to the Request for Proposal; and Whereas, an evaluation committee composed of staff from the City Manager's Office reviewed and scored the proposals and selected Carney & Appleby, PLC; and Whereas, the initial term of this contract is for one year, with an option to renew for four additional one-year periods upon the mutual consent of the City and Camey & Appleby,PLC; and Whereas, the City expects to expend $25,200 per year for the initial term of the contract; and Whereas, funds for this purchase are available in consultant line item, 10210100-432060, in the operating budget for the City Manager's Department; and Whereas, approval of this procurement is in the public interest. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The Agreement for Professional Services attached hereto is in the public interest, and is approved. 2. The City Manager is authorized to take whatever steps are necessary to effectuate future renewals. Passed and approved this 21st day of November 2017 MMOR Approved by ATTES da�(I N11 7 Cl CLERK r CityAttorney's Office Resolution No. 17-342 Page 2 It was moved by trims and seconded by Botchwap the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton Page 1 of a Agreement for Prof esional Services This Agreement for Professional Services ("Agreement") is made this 1" day of December, 2017 between Camey & Appleby, PLC ("Consultant"), having an office at 303 Locust Street, Suite 400, Des Moines, IA 50309 and the City of Iowa City, IA ("Client') having an office at 410 E. Washington St, Iowa City, [A 52740. In consideration of the mutual promises set forth herein, Client and Consultant agree as follows: 1. Consultant's Services A. Consultant shall perform the professional services ("Services') more fully described in Exhibit A attached hereto and by this reference incorporated herein. Consultant shall furnish all labor, materials and supervision necessary to perform the Services. B. The Consultants shall not commit any of the following employment practices and agree to prohibit the following practices in any subcontracts. 1. To discharge or refuse to hire any individual because of their race, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. 2. To discriminate against any individual in terms, conditions, or privileges of employment because of their rata, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. C. It is further agreed that no party to this Agreement, including their employees, representatives, subcontractors or agents, shall perform contrary to any state, federal, or local law or any of the ordinances of the City of Iowa City. D. Consultant agrees to specifically assign the agreed upon professional services to James W. Camey who shall be the primary lobbyist, and who may utilize personnel qualified and/or suitable to perform the Services.. Each person assigned to perform any part of Consultant's obligations hereunder shall be qualified and, if required by law, licensed or certified to perform such obligations. 2. Compensation Client shall compensate Consultant for Services rendered in such amounts as described in Exhhibit B. 3. Invoices and payments A. Not more frequently than once a month Consultant shall invoice Client for its fee. B. Client shall pay each invoice within thirty (30) days of receipt, However, if Client objects to all or any portion of any invoice, Client shall so notify Consultant within fifteen (15) days from receipt, give reasons for the objection, and pay that portion of the invoice not in dispute within thirty (30) days of receipt of the invoice. Unless otherwise directed in writing, all invoices shall be submitted for payment to the following address: City of Iowa City, Iowa Attn: Geoff Fruin City Manager 410 E. Washington St. Page 2 of B Iowa City, IA 52240 4. ludeoondent Consultant Status and Snbcontractors Consultant will act solely as an independent contractor in performing the Services, and nothing herein will at any time be construed to create the relationship of employer and employee, principal and agent, partners, or joint venturers between Client and Consultant, or Client's and Consultant's officers, directors, partners, elected officials, managers, employees or agents, Consultant shall be solely responsible for the compensations, benefits, worker's compensation, contributions, withholdings and taxes, if any, of its employees, subcontractors and agents, 5. Indemnification, Insurance and Jhlyd Party Beneficiaries A. Consultant shall indemnify, defend and hold Client harmless from any and all claims, demands, causes of action, losses, damages, fines, penalties, liabilities, costs and expenses, including reasonable attorney's fees and court costs, sustained or incurred by or asserted against Client or Client's officers, directors, partners, elected officials, managers, employees or agents, in the capacity of a defendant or witness, by reason of or arising out of Consultant's breach of this Agreement or Consultant's negligence, gross negligence or willful misconduct with respect to Consultant's duties and activities within the scope of this Agreement. The Consultant agrees at all times material to this Agreement to have and maintain professional liability insurance which covers the Consultant's liability for the Consultant's negligent acts, errors or omissions to the City in the sum of $1,000,000. B. This Agreement shall not be construed to create a duty or liability to any party who is not a signatory party to this agreement, it being the intention of the parties hereto that their duties and obligations are to each other and not for the benefit of or for third party beneficiaries. 6. Confidentiality Consultant shall treat as confidential property and not disclose to others during or subsequent to the term of this Agreement, except as necessary to perform this Agreement (and then only on a confidential basis satisfactory to both parties), any information and documents (including without limitation any environmental information, reports, data, or financial information) which may be delivered to Consultant by Client. Nothing above, however, shall prevent Consultant from disclosing to others or using in any manner information that Consultant can demonstrate; A. Has been published and has become part of the public domain other than by acts, omissions or fault of Consultant, their employees, agents, contractors and/or consultants; or, B. Has been furnished or made ]mown to Consultant by a third party (other than those acting directly or indirectly for or on behalf of Consultant or Client) as a matter of legal right without restrictions on its disclosure; or, C. Was in Consultant's possession prior to the date of this agreement and/or prior to the date of disclosure thereof by Client. D. Must be disclosed pursuant to any statute, law, regulation, ordinance, order or decree of any governmental authority having jurisdiction over Consultant or any of its employees, agents, contractors and/or consultants. Page 3 of 8 The foregoing obligations in this Section 6 shall survive for a period of one (1) year from the mutual execution of this Agreement. 7. berm and Termination of Agreement Unless otherwise earlier terminated pursuant to this contract, this Agreement shall remain in full force and effect for one (1) year following the date of its execution by the City. Termination of this Agreement shall discharge only those obligations that are executory by either party on and after the effective date of termination. Any right or duty of a parry based on either Performance or a breach of this Agreement, prior to the effective date of termination, shall survive, A. Client reserves the right to terminate this Agreement at any time, with or without cause, upon delivery of written notice to Consultant, even though Consultant is not in default. If Client terminates this Agreement pursuant to this paragraph, Client shall compensate Consultant, at the monthly rate contained in Exhibit B, for all monthly periods completed by Consultant, and any subsequent monthly period in which Consultant has performed services for client, up to and including the month of termination. B. Consultant shall have the right to terminate its obligations pursuant to this Agreement if one of the following conditions exists and it hes not been remedied or cured within thirty (30) days of Client's receipt of written notice of such condition. A substantial breach of any material obligation of client under this Agreement; or ii. If Consultant is unable for any reason beyond its control to perform its obligations pursuant to this Agreement in a safe, lawful and professional manner. It is expressly understood that license and/or registration requirements are within the eontroI of Consultant. Upon Consultants termination of its obligations, Client shall pay all actual expenses and charges as of the date of termination, which charges and expenses shall not continue to accrue after Client receives Consultant's notice of termination. In no event will said expenses and charges exceed the not -to -exceed figures included in Exhibit B. C. The termination of this Agreement under the provisions of this Article 7 shall not affect the rights of either party with respect to any damages it has suffered as a result of any breach of this Agreement, nor shall it affect the rights or obligations of either party with respect to liability or claims accrued, or arising out of events occurring or conditions existing, prior to the date of termination, all of which shall survive such termination. 8. Disclosure of Client Relationships Consultant agrees to provide Client (i) a list of Consultant's current chants for which it provides services substantially similar to the services described in Exhibit A to this Agreement prior to the beginning of each session of the Iowa General Assembly which occurs during the term of this Agreement, and (ii) notice that Consultant has been retained by a new client to provide services substantially similar to the services described in Exhibit A to this Agreement Page 4 of 8 during a session of the Iowa General Assembly which occurs during the tern of this Agreement. 9. Waiver A Waiver on the part of the Client or Consultant of any term, provision or condition of this Agreement shall not constitute a precedent or bind either Party to a waiver of any succeeding breach of the same or any other term, provision or condition of this Agreement. 10. Entire Aereement This Agreement, including any Exhibits, the Request for Proposal, and Consultant Proposal, constitute the entire Agreement between Consultant and Client. In the event of conflict between these documents, this Agreement shall prevail. These documents supersede all prior or contemporaneous communications, representations or agreements, whether oral or written, relating to the Services set forth in this Agreement. This Agreement may be amended only by a written instrument signed by both parties. The captions in this Agreement are for convenience in identification of the several provisions and shall not constitute a part of this Agreement nor be considered interpretative thereof. 11. Asslynment 12. 13. This Agreement shall be binding upon the successors or assigns of the parties hereto. however, this Agreement shall not be assigned by either party without fust obtaining the written consent of the other. Severability Every paragraph, part, tern or provision of this Agreement is severable from the others. if any paragraph, pati, term or provision of this Agreement is construed or held to be void, invalid or unenforceable by order, decree or judgment of a court of competent jurisdiction, the remaining paragraphs, parts, terms and provisions of this Agreement shall not be affected thereby but shall remain in full force and effect. otiees Any information or notices required to be given in writing under this Agreement shall be deemed to have been sufficiently given if delivered either personally or by certified mail (Tatum receipt requested, postage prepaid), to the address of the respective party set forth below, or to such other address for either party as that party may designate by written notice. For the Client, Geoff Fruin City Manager City of Iowa City 410 E. Washington St. Iowa City, IA 52240 14. General Terms For the Consultant: Douglas L. Struyk Partner Camey & Appleby, PLC 303 Locust Street, Suite 400 Des Moines, IA 50309 A. The Consultant agrees to furnish, upon termination of this Agreement and upon demand by the City, without cost, copies of all data prepared or obtained by the Consultant Page 5 of 8 15. pursuant to this Agreement, without restrictions or limitation as to the use relative to specific projects covered under this Agreement. In such event, the Consultants shall not be liable for the City's use of such documents on other projects. B. Upon signing this agreement, Consultant acknowledged that Section 362.5 of Iowa Code prohibits a City officer or employee from having an interest in a contract with the City, and certifies that no employee or officer of the City, which includes members of the City Council and City boardsand commissions, has an interest either direct or indirect, in this agreement, that does not fall within the exceptions to said statutory provision enumerated in Iowa Code Section 362.5. C. The Consultant has completed the City's Wage Theft Affidavit, If Client becomes aware that Consultant (including an owner of more than 25% of the entity) has admitted guilt or liability orbeen adjudicated guilty or liable in any judicial or administrative proceeding of committing a repeated or willful violation ofe Iowa Wage Payment Collection Law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act or any comparable state statute or local ordinance, which governs the payment of wages, within the five (5) year period prior to the award or at any time after the award, such violation shall constitute a default under this Agreement. D. No modifications to the Scope of Services or other contract terms can be made without the written consent of both parties. Authority to approve changes from the Client side is vested solely with the City Manager. Goveraine Law This Agreement shall be governed and interpreted pursuant to the laws of the State of Iowa. In Witness Whereof, the Client and Consultant have caused this Agreement to be executed by their duly authorized representatives, as follows: Client: Consultant: City of Iowa City / X)UO By: Jim A. Throgm on, Mayor Name: 7 , // n n Title: Kellie City Attorney Page 6 of 8 Exhibit A City of Iowa City, Iowa Lobbying Services Scope of Services Working in consultation with the City Manager and/or his designee, the following are areas of responsibility of a State lobbyist/firm: 1. Development and maintenance of relationships with members of the Iowa legislature, legislative leadership, and the executive branch to effectively represent the interests of the City of Iowa City; 2. Provide assistance in policy development and in the preparation of a government relations plan to support the City of Iowa City's legislative interests; 3. Monitor State legislative and regulatory issues with potential impact to the City of Iowa City. Attend all appropriate committee hearings, rules meetings, legislative functions and other events to promote the interests of the City of Iowa City; 4. Meet with legislators, executive branch, and other stakeholder lobbyists to discuss weaknesses or merits of specific bills and to influence passage, defeat, amendments, or introduction of legislation favorable to the City of Iowa City's interests; 5. Regularly communicate with the City of Iowa City concerning current and potential legislation, regulations, and related issues that could have an impact on the city. Weekly telephone and written updates on legislative activities during the legislative session as arranged with the City Manager regarding legislative actions and impacts; 6. Attend up to two City Council meetings as requested by the City Manager. 7. Outreach, coordination, and collaboration with individuals and groups that have interests similar to the City of Iowa City including but not limited to the Metropolitan Coalition and the Iowa League of Cities; B. Develop with the City Manager and his staff appropriate grassroots messages that reflect the City of Iowa City's concerns regarding legislative proposals. These written messages can then be used to influence leaders to move the City's legislative agenda; 9. Plan and coordinate meetings between the City of Iowa City, legislators, and the executive branch, including State of Iowa Departments, to discuss legislative issues and proposals; 10. During the time the legislature is not in session, provide reports on issues of interest or concern to the City of Iowa City including, but not limited to, action taken at interim committee meetings, rulemaking hearings, status of task forces, and proposed legislation and regulations; 11. Obtain and provide data pertaining to matters of interest to the City of Iowa City; 12. Develop, in cooperation with the City Manager's staff and subject to his and the City Council's approval, an annual strategic work plan identifying from the list of City infrastructure needs those capital projects that can be best positioned for State funding support. Page 7 of B 13. Provide such other lobbyist duties as are determined to be in the interests of the City Council and as communicated to the Lobbyist by the City Manager. Page 8 of a Exhibit R Compensation The submitted pricing must Include all of the costs required to perform the tasks to complete the project in full. These costs include, but are not limited to, labor, materials, equipment, travel (lodging and transportation), etc. Proposer shall submit one monthly lump sum fee which shall be fully inclusive, and which shall be the exclusive sum provided by the City to Proposer. This fee shall be paid upon invoicing after the completion of each month. Fixed, fully inclusive, lump sum fee for Professional Services for each month of service: $25.200 Dollars $2.100 Per Month 1 r 1 �. `mfr `t Tq CITY OF IOWA CIT _ _ COUNCIL ACTION REPO 4d ' November 21, 2017 Resolution approving and authorizing the Mayor to execute and the City Clerk to attest an agreement by and between the City of Iowa City and Carney & Appleby, PLC to provide lobbying services. Prepared By: Simon Andrew, Assistant to the City Manager Reviewed By: Geoff Fruin, City Manager Fiscal Impact: $25,200 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Agreement Executive Summary: The City has conducted a request for proposals for consultant and lobbyist services for the 2018 State of Iowa General Assembly. The recommended vendor after the RFP process is the firm Carney & Appleby, PLC, based in Des Moines, Iowa. The firm currently represents the Cities of Des Moines and Waukee, as well as the Iowa State Bar Association. The contract amount is $25,200 with a one-year term and an option to renew for up to four additional one- year terms. The contract amount is identical to the City's previous lobbyist contract and budgeted funds were approved in the fiscal year 2018 budget. If approved, the firm plans to have representatives present at City Council's December 19 work session to discuss 2018 legislative priorities. Background / Analysis: Five vendors responded to the request for proposals. After an initial round of scoring written proposals, the three top scoring firms were invited to participate in phone interviews. Carney & Appleby were the top scoring firm and were within $200 of the lowest bid. The firm has over eighty years combined legislative experience and strong relationships at the Capitol. Our primary contacts with the firm will be Doug Struyk and Jim Carney. Mr. Struyk served four terms in the Iowa House, two sessions as Chief Legal Counsel and Legislative Liaison in the Iowa Secretary of State's office, and one session as Executive Officer/Chief of Staff to the Iowa Speaker of the House. Mr. Carney has forty-two years' experience practicing law and lobbying. The firm has good working relationships with legislators from both parties. The City's legislative consultant will provide services including bill and regulation monitoring, assisting in the development of legislative priorities and strategies with Council and staff, communicating the City's position on key issues to legislators, and maintaining strong communication with our local delegation. Services will continue after the legislative session, including monitoring and providing feedback, when appropriate, during the rules making process. 4j (6) Prepared by: Mary Niichel-Hegwood, Purchasing Agent, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5078 Resolution No. 17-343 Resolution authorizing the renewal of the contract for Heating, Ventilation, Air Conditioning, and Repair Services Whereas, a Request for Proposal was issued to solicit Heating, Ventilation, Air Conditioning, and Repair Services for the City of Iowa City on July 2, 2014; and Whereas, the City received four proposals in response to the Request for Proposal; and Whereas, an evaluation committee selected AAA Mechanical Services in 2014; and Whereas, the initial term of this contract was for three years, with an option to renew for two additional one-year periods upon the mutual consent of the City and AAA Mechanical Services; and Whereas, the City and AAA Mechanical Services wish to renew the contract for an additional one year; and Whereas, the City expects to expend approximately $70,000, making the total dollar amount of the contract approximately $220,000; Whereas, funds for this purchase are available in the operating budget for the various City divisions under the Heating & Cooling R&M Services line item; and Whereas, approval of this procurement is in the public interest. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The proposed procurement as described is approved. 2. The City Manager is authorized to take whatever steps are necessary to effectuate renewals. Passed and approved this 21st day of November 2017 MAWOR Approvedby ATTEST• � - �L CITY CLERK City A tomey s Office Resolution No. 17—U3 Page 2 It was moved by Mims and seconded by Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: Botchway the Botchway Cole Dickens Mims Taylor Thomas Throgmorton Z ' CITY OF IOWA CIT Immak ;r� COUNCIL ACTION REPO 4d(5) AAA November 9, 2017 Resolution Authorizing the Renewal of the Contract for Heating, Ventilation, Air Conditioning, and Repair Services Prepared By: Mary Niichel-Hegwood, Purchasing Agent Reviewed By: Dennis Bockenstedt, Finance Director Simon Andrew, Assistant to the City Manager Fiscal Impact: Funds are available in the Heating & Cooling R & M Services line item for various divisions. Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: On July 2, 2014 a Request for Proposal was administered by the City's Purchasing Division to provide Heating, Ventilation, Air Conditioning, and Repair Services for the City of Iowa City. The initial term of this contract was for three years with the option to renew for two additional one-year periods. The City expects to spend approximately $70,000 per year, making the total dollar value of the contract $220,000. The resolution authorizes a one year renewal of the contract and authorizes the City Manager to effectuate future renewals. Background / Analysis: The City received proposals from four (4) vendors in response to the Request for Proposal. Proposals were distributed to an evaluation committee, which consisted of representatives from the Parks and Recreation Department, Water Division, Wastewater Division, Equipment Division, and the Fire Department. The evaluation committee performed a thorough evaluation of each proposal based on Qualifications, Experience, and Special Training, Proposal Requirements, Adherence to Specifications and References, Firm Pricing and Special Discounts. After a complete evaluation of the proposals, the contract was awarded to AAA Mechanical Services. Prepared by: June Nasby, Buyer II, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5076 Resolution No. 17-344 Resolution authorizing a contract for the Parking Management System Whereas, the City has previously established a contract for the Parking Management System with T2 Systems through a Request for Proposal process; and Whereas, the City's contract with T2 Systems expired on July 31, 2017; and Whereas, due to the hardship that would be created by changing to a new system at this time, the City will continue using T2 Systems for parking management for an additional three years; and Whereas, T2 Systems is the sole provider of support and maintenance services for T2 software and hardware, making this a sole source purchase; and Whereas, City staff has negotiated a new support and maintenance agreement with T2; and Whereas, the initial term of the contract is three years, with an option to renew for two additional three-year terms upon agreement of the City and T2; and Whereas, the annual price of T2's support and maintenance is approximately $132,000, for a three-year cost of $396,000, and therefore the cumulative cost of the contract exceeds the City Manager's spending authority of $150,000, requiring City Council approval; and Whereas, in future renewals, the City expects to spend a similar amount on this purchase; and Whereas, funds for this purchase are available in the Other Operating Services line item, 71810141-445230, 71810142-445230, 71810143-445230, 71810245-445230, and 71810120- 445230, and in the Other Professional Services line item, 71810143-432080 in the operating budget for Transportation and Resource Management Department; and Whereas, approval of this procurement is in the public interest. Now, therefore, be it resolved, by the City Council of the City of Iowa City, Iowa, that: 1. The proposed procurement as described is approved. 2. The City Manager is authorized to take steps necessary to execute future renewals, with the approval of the City Attorney. Passed and approved this 21st day of November 20 17 Maor Attest-.,fe City Clerk Approved by City Attorney's Office dcj(0 Resolution No. 17-344 Page 2 It was moved by Mims and seconded by Botchway the Resolution be adopted, and upon roll call there were: AYES: NAYS: x x x x x x x ABSENT: ABSTAIN: Botcbway Cole Dickens Mims Taylor Thomas Throgmorton DocuSign Envelope ID: FBA55BE0-0805-4C7D-AE34-9CE67A284DD0 T2 SYSTEMS, INC. PARKING MANAGEMENT SYSTEM AGREEMENT THIS PARKING MANAGEMENT SYSTEM AGREEMENT Is entered into as of November 21st , 2017 ("Effective Date") and contains the agreement between City of Iowa City ("Subscriber") and T2 SYSTEMS, INC. (72" or '72 Systems") for parking management system hardware, software, and services. Product details are contained in Quote ID #00007906.D dated November 15, 2017 executed by the Parties, and any additional Quotes executed by the parties. Certain terms are defined in Article 13. This agreement establishes the City's overall contractual framework and the applicable terms and conditions. Article 1. SOFTWARE SUBSCRIPTION Section 1.1 Software Subscription. T2 grants to Subscriber a non- exclusive right to use: the Software for its Authorized Concurrent Users, or as set out on the Quote, if applicable. T2 grants the Subscription(s) for the Authorized Purposes and no other purposes. At no time may the number of user accounts for the Software exceed the number of Authorized Concurrent Users. T2 has the right to monitor number of Concurrent Users. Subscriber may increase the number of Authorized Concurrent Users by execution of an amendment to this agreement. Section 1.2 Term. The Subscriptions granted in this Article 1 and Article 4 are for the term specified in Section 7.1. that: Section 1.3 Warranty of Functionality. T2 warrants to Subscriber For a period of ninety (90) days after installation of T2 Software, at the Subscriber's premise or on the Hosted System, whichever the case may be, the Software will provide at least the functionality contained in the then - current product literature as posted on T2's corporate website, and will perform without errors which would significantly affect its ability to provide that functionality. This warranty is contingent upon Subscriber advising T2 of any failure of the Software to perform within ninety (90) days after the Installation Date. The notice to T2 shall specifically identify the error or errors. T2's services in connection with the correction of the errors shall be provided without charge to Subscriber. T2 does not warrant that the operation of the Software will be uninterrupted or error free. Further, T2 does not warrant that the Software will operate on any particular configuration of software, operating system or computer system. Section 1.4 No Other Warranties. The warranties made by T2 in 0 with regard to both the T2 Software are in lieu of all other representations or warranties, express or implied, including without limitation any implied warranties of design, merchantability, or fitness for any specific or general VERSION 071511 DocuSign Envelope ID: FBA55BE0-C8054C7D-AE34-9CE67A2840D0 purpose and those arising by statute or by law, or from a course of dealing, or usage of trade, all of which are disclaimed. Section 1.5 Installation. Except as provided in Section 3.2, T2 shall install the Software and confirm that the Software is working properly. Once the Software is installed, the Subscriber shall verify that the installation is complete and the Software is working properly. Article 2. HARDWARE Section 2.1 Applicability. The provisions of this Article 2 apply only if Quote states that T2 or an authorized T2 Systems distributor will sell hardware (the "Hardware") and related software. In addition, the provisions of Article 2 only apply to Hardware purchased through T2 or an authorized T2 Systems distributor. Any Hardware purchased from sources outside of T2 will be the sole responsibility of the Subscriber. T2 will not be responsible for the failure of the software to perform to the extent that such failure to perform is due to the failure of a third -party function, such as Internet availability required for the connection between the Hardware and Flex or the wireless network availability required for the T2 Software to be able to send and receive data. In no event shall T2 be liable for the failure of the software to perform 9 such failure arises due to the combination of the software with third party hardware or software. T2 shall not cover repair, labor or replacement of parts that are by nature expendable. Section 2.2 Handheld Hardware Warranty. T2 warrants to the Subscriber that the Handheld Hardware will be free from defects in workmanship and materials, under normal use, for one-year (365) days from the date the Hardware is delivered. Section 2.3 Access Revenue Control Hardware Warranty. T2 Systems warrants that all hardware sold will be free from any defects in material and workmanship for the warranty periods described below under normal operating conditions when installed in accordance with the T2 Systems installation instructions, normal wear and tear excepted. The warranty periods for the following products are: (i) Vehicle Gates: 2 years or 1 million cycles. (Whichever comes first) (ii) Revenue equipment (including firmware): 1 year (iii) Loop Detectors:1 year The warranty period shall start from the date of acceptance of the product by certified installation personnel. No distributor shall have the authority to bind T2 Systems to any warranty beyond that extended therein. VERSION 071$11 Section 2.4 Exclusive Remedy. Should a Hardware Error occur during the warranty period and you notify T2, Subscriber's sole and exclusive remedy shall be, at T2's sole option and expense, to repair or replace the Hardware parts which have been found to be defective. At T2's sole discretion, parts may be repaired as opposed to being replaced. T2 may replace parts with others of like kind and quality. T2 will provide service at any T2 service center or at such other location as may be designated by T2. Subscriber agrees to follow the Return Materials Authorization Process as set forth in Section 2.8. Section 2.5 Hardware Repair Limitations. T2's liability for Hardware repairs under this Agreement shall be limited to the actual cash value of the Hardware in operating condition at the time of the claim. Except as otherwise expressly agreed by T2, nothing herein shall obligate T2 to repair or replace aesthetic or structural items including, but not limited to, damage to the case or screen from dropping, warping of any kind to housing, case or frame of the Hardware. Subscriber agrees that it is responsible for repair costs associated with worn out or damaged touch screens or LCD modules. This Agreement only applies to the operation of the Hardware under the conditions for which it was designed, and does not cover damage resulting from external causes such as, but not limited to, damage resulting from a collision with any object or from fire, flooding, sand, dirt, windstorm, hail, earthquake, act of God, damage from exposure to weather conditions not anticipated or contemplated by the manufacturer's specifications, battery leakage, theft, misuse, abuse, damage from failure of, or improper use of, any electrical sources or connection to other products not recommended for interconnection by the Hardware manufacturer. Subscriber shall perform all preventative maintenance recommended by the Hardware manufacturer to maintain the Hardware in operating condition and Subscriber agrees that any loss or damage resulting from the failure to provide the Hardware manufacturer's recommended maintenance is not covered by this Agreement. Section 2.6 Obsolete Hardware. While it is T2's intention to support Hardware for as long as is technically and financially feasible, T2 reserves the right to discontinue maintenance and support of obsolete Hardware six months after providing written notice to Subscriber. After that time, T2 will offer repair services on the then -current standard rates for time and materials for the obsolete Hardware so long as parts and labor are reasonably available. Section 2.7 Engineering Modifications. All products of T2 Systems are subject to design and/or appearance modifications which are production standards at the time of shipment. T2 Systems may, but shall not be required, to, modify, or update products shipped prior to a current production standard. Section 2.8 Return Materials Authorization (RMA) Process. In the event that Subscriber experiences a malfunction with respect to the Hardware, Subscriber shall call T2 technical support in order to determine VERSION 071511 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-gCE67A2840D0 the cause of the malfunction. If T2 technical support determines that the Hardware does require service, the technician will instruct Subscriber as to the proper return procedure. A Return Material Authorization Number (RMA) must be obtained before product is returned. Subscriber shall return the damaged Hardware, together with a description of the malfunction, to T2 or other service location as directed by the T2 technician. Subscriber shall remove the Flash ROM or RAM cards prior to shipping the Handheld Hardware to the appropriate T2 service center. Subscriber is responsible for all freight and insurance charges inbound to the service center. T2 is responsible for all freight and insurance charges outbound from the service center. Section 2.9 Restocking Fee for Returned Hardware. The Subscriber may return handheld and T2 Point of Sale hardware within 30 days of delivery if the goods are in an unsoiled, undamaged, new, and re- saleable condition. The Subscriber may cancel access and revenue control hardware within three (3) weeks of T2 receiving a purchase order. T2 charges a minimum of 25% restocking fee on all equipment that is returned unless the delivered goods were damaged or found malfunctioning upon arrival by purchaser. The credit will be issued only after the equipment is inspected and determined by an Employee of T2 to be in unsoiled, undamaged, new and re -saleable condition., ondition. The Subscriber will pay for all freight charges to T2's plant unless the delivered goods were damaged or found malfunctioning upon arrival, in which case the seller shall pay all return freight charges. 2.10 Limitation of Liability. THE WARRANTIES AND REMEDIES SET FORTH IN THIS Article 2 ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, TERMS OR CONDITIONS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, CORRESPONDENCE WITH DESCRIPTION, SATISFACTORY QUALITY AND NON - INFRINGEMENT, ALL OF WHICH ARE EXPRESSLY DISCLAIMED BY T2. T2 SHALL NOT BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES OF ANY KIND, LOSS OF INFORMATION OR DATA, LOSS OF REVENUE, LOSS OF BUSINESS OR OTHER FINANCIAL LOSS ARISING OUT OF OR IN CONNECTION WITH THE SALE OR USE OF THE HARDWARE, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY OR ANY OTHER THEORY, EVEN IF T2 HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS SUBSCRIPTION AGREEMENT IS DEEMED TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. T2'S ENTIRE LIABILITY SHALL BE LIMITED TO REPLACEMENT, REPAIR, OR REFUND OF THE PURCHASE PRICE PAID, AT T2'S OPTION. Neither party shall be VERSION 071511 DowSign Envelope ID: FBA55BE0-C8054C7D-AE34-9CE67A294DD0 liable for any indirect, incidental, consequential, special or exemplary damages arising from performance of this Agreement. Article 3. HOSTING SERVICES Section 3.1 Applicability. The provisions of this Article 3 apply only if Quote states that T2 will provide hosting services ("Hosting Services"). Section 3.2 Software Installation. T2 shall install the Software on the Hosting System. Section 3.3 Access. In consideration of the payment of the Hosting Fee, T2 will provide Subscriber access to the Software via the Hosting Services and Hosting System. Subscriber may access the Hosting System using Subscriber's remote access equipment. T2 shall undertake commercially reasonable efforts to provide Subscriber with consistent service in a shared hardware environment (i) insulated from changes in the Internet, and (ii) sufficient to access the Software on T2 Application Server through the Internet twenty-four (24) hours per day, seven (7) days per week, except for routine maintenance performed pursuant to notice to Subscriber. T2 shall monitor T2's Application Server and undertake commercially reasonable efforts to restore promptly all failures of service at no additional charge to Subscriber. Subscriber shall be solely responsible for (i) providing Internet devices and supported browsers, and (ii) Internet connections, at Subscriber's sole cost and expense. Section 3.4 Hours of Operation. Generally, connectivity will be available seven (7) days per week, twenty-four (24) hours per day. Subscriber's access is subject to outages for scheduled maintenance activities and outages attributable to failure of the Subscriber's telecommunications provider to provide an Internet connection. Whenever practical, scheduled maintenance activities will be performed [outside] the hours of 8:00 a.m. and 8:00 p.m ET. Notice of scheduled maintenance shall be provided to Subscriber via email. Section 3.5 Maintenance and Updates. T2 shall provide maintenance for the Hosting System, including updates and patches and shall install any updates or enhancements for the Software that are released by T2 to its Subscribers. T2 will notify Subscriber when the updated version is available. Section 3.6 Improvements. In order to maintain the quality of the Hosting Services provided by T2 hereunder, T2 reserves the right to change the hours of operation and other facilities and procedures relating to access and use of its Hosting Services. T2 will provide Subscriber with ten (10) days' notice prior to any planned improvements that may materially affect the Hosting Services. VERSION 071511 DocuSign Envelope ID: FBA55BE0-C805AC7D-AE34-gCE67A284DD0 Section 3.7 Passwords and Security. Subscriber will control the issuance of passwords and user IDs for the use of the Software by Subscriber's Authorized Concurrent Users. Subscriber shall be responsible for the confidentiality of all those passwords. Subscriber acknowledges that it will be responsible for all liabilities incurred through use of any password assigned to Subscriber, and that any transactions under Subscriber's password will be deemed to have been performed by Subscriber. Section 3.8 Ownership of Data. Subscriber shall maintain ownership of any Subscriber Data provided to T2 or input to the Software pursuant to this Agreement. T2 shall not supplement, modify or alter any Subscriber Data except as directed or requested by Subscriber (other than technical modifications necessary to upload/format the Subscriber Data to the Web Site). Section 3.9 Limitation of Liability. T2 SHALL NOT BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES OF ANY KIND, OR FOR LOSS OF INFORMATION OR DATA, LOSS OF REVENUE, LOSS OF BUSINESS OR OTHER FINANCIAL LOSS ARISING OUT OF OR IN CONNECTION WITH THE SALE OR USE OF THE SOFTWARE, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY OR ANY OTHER THEORY, EVEN IF T2 HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS SUBSCRIPTION AGREEMENT IS DEEMED TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. T2'S ENTIRE LIABILITY SHALL BE LIMITED TO REPLACEMENT, REPAIR, OR REFUND OF THE PURCHASE PRICE OR SUBSCRIPTION FEE PAID, AT T2'S OPTION. Neither party shall be liable for any indirect, incidental, consequential, special or exemplary damages arising from performance of this Agreement. Section 3.10 Warranties. EXCEPT AS MAY BE OTHERWISE SPECIFICALLY SET FORTH IN THE QUOTE, T2 MAKES NO REPRESENTATIONS OR WARRANTIES CONCERNING THE HOSTING SERVICES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Section 3.11 Performance. ALTHOUGH T2 WILL TAKE REASONABLE STEPS TO PROVIDE ERROR -FREE AND CONTINUOUS HOSTING SERVICES, T2 DOES NOT REPRESENT, WARRANT OR GUARANTEE THAT THE HOSTING SERVICES WILL BE UNINTERRUPTED OR ERROR -FREE. AS A RESULT, THE HOSTING SERVICES ARE PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. Ar[ICIe 4. PROFESSIONAL SERVICES. VERSION 071511 6 DocuSign Envelope ID: FBA55BE0-C605-4C7D-AE34-9CE67A284DD0 Section 4.1 Applicability. The provisions of this Article 4 apply only if the Quote states that T2 will provide web site development services or other custom development services (collectively, the "Professional Services"). Section 4.2 Web Site. T2 shall provide a Web Site for Subscriber. T2 and Subscriber contemplate that the Web Site will be enhanced over time and unless T2 is providing Hosting Services, the Web Site will be hosted by Subscriber. Section 4.3 License. Subject to payment by Subscriber of any Web Site Fee which is due, T2 grants to Subscriber a non-exclusive right to use the Web Site prototype and any additional enhancements or customization in connection with the use of the Software under the same Terms and Conditions. Section 4.4 Web Site Development. If the Subscriber determines that the Web Site requires additional enhancements or customization, T2 shall provide development services relating to the Web Site. T2's services in assisting Subscriber in this regard shall be provided on a Time and Materials Basis. Article 5. TECHNICAL SUPPORT Section 5.1 Technical Support Services. T2 offers the Subscriber technical support as described in Section 13.9. Section 5.2 Technical Support Hours. T2 offers Technical Support from 8:00 a.m. EST to 8:00 p.m. EST Monday through Friday excluding holidays. The Target Response Time is two (2) hours. Section 5.3 Updates and Enhancements. To the extent that T2 releases an updated or enhanced version of the Software during the Subscription Term, T2 will make the updated version available for download by Subscriber at no additional charge. Subscriber shall be permitted to use the updates and enhancements to the extent provided in Article 1. Section 5.4 Technical Support Exclusions. T2 will not be responsible for failure to correct a problem to the extent that T2 is unable to replicate the problem, or if the problem is caused by: (i) misuse of the Software, (ii) failure by Subscriber to utilize compatible computer and networking hardware and software, (iii) interaction with software or firmware not provided by T2, (iv) any change in applicable operating system software, or(v) the failure of Subscriber to install updates to the Software provided by T2. A Subscriber who is not current with their account will not be eligible for technical support. In any such event, T2 will advise Subscriber and, upon request, will provide such assistance as Subscriber may reasonably request with respect to such problem at T2's then -current standard rates for time and materials. VERSION 071511 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-9CE67A284DD0 Section 5.5 Cooperation. Subscriber acknowledges (i) that certain services or obligations of T2 hereunder may be dependent on Subscriber providing certain data, information, assistance, or access to Subscriber's systems, (collectively, "Cooperation"), and (ii) that Cooperation may be essential to the performance of such services by T2. The parties agree that any delay or failure by T2 to provide services hereunder which is caused by Subscriber's failure to provide timely Cooperation reasonably requested by T2 shall not be deemed to be a breach of T2's performance obligations under this Agreement. Section 5.6 Supported Versions of Flex. T2 requires all T2 Flex instances hosted by the Subscriber or hosted by T2 on behalf of Subscriber for either production or for testing to be the current or next most recently released T2 Flex application software version. T2 reserves the right to upgrade any T2 hosted T2 Flex instance with 24 hour notice to the Subscriber. Notice may be provided via email or phone. Article 6. PAYMENT Section 6.1 Fees. The Subscription Fee, Web Development/eBusiness, Hosting Services Fee, Professional Services Fee, Hardware Fee and any additional agreed upon fees (collectively, the "Fees") shall be payable according only after approval and final acceptance by the City. Partial periods shall be prorated. 6.1.1 Payment Payment may be made only after inspection and acceptance by the using department and, when required, approval by the City Council. No partial payments shall be made unless otherwise authorized by the City, or unless commodities were constructed, erected, installed or tested on site, in which case payment shall be made on the basis of a percentage of the value of all work performed less any previous payments. Payment of balances shall be made only after approval and final acceptance by the City. 6.1.2 Withholding Payment. Consideration for withholding payment shall include faulty materials, equipment, or workmanship, back orders, and liens that have been filed, or evidence indicating a possible filing of claims. In all cases, regulations and limitations imposed by the Federal Government and State of Iowa shall prevail. 6.1.3. Invoices. Following acceptance, payment shall be made within thirty (30) calendar days from receipt of proper invoice. Invoice shall include project number, purchase order number, department name, dollar amount, and any other pertinent information. Submit invoice to: Attn: Purchasing VERSION 071511 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-9CE67A284DD0 City of Iowa City City Hall - 410 E. Washington Street Iowa City, Iowa 52240 Or emailed to june-nasby@iowa-city.org Section 6.2 Change in Fees. T2 will increase the Fees by five (5) percent per year, provided T2 notifies Subscriber in writing at least sixty (60) days prior to a renewal period. If T2 fails to provide a sixty (60) day notice, then the increase in fees will not become effective until the beginning of the first month following the sixty (60) day period after T2 notified Subscriber of the increase. Section 6.3 Certain Taxes. The City of Iowa City is exempt from all Federal, State of Iowa and other states' taxes on the purchase of commodities and services used by the City of Iowa City within the State of Iowa. The Purchasing Division shall provide tax exemption certification to out of state suppliers as required. Out of state taxes imposed on purchases of commodities and/or services which are used within another state are applicable and subject to payment. Contractors and subcontractors shall pay all legally required sales, consumer and use taxes on all commodities and/or services purchased or rented to complete their contract. Section 6.4 Failure to Make Payment. If Subscriber fails to make any payments within thirty (30) days after the amount is due pursuant to this Agreement, then the amount, without the necessity of any notice or action by T2 shall become due and payable together with interest thereon from the date of nonpayment at twelve percent (12%) per annum [or the highest rate permitted by law if less than twelve percent (12%)] and with reasonable attorneys' fees and other costs of collection. The non-exclusive subscription granted ,pursuant to Article 1 of this Agreement may be terminated by T2 with thirty (30) days prior written notice in the event Subscriber fails to make any payments when due under this Agreement. Section 6.5 Payment by Automated Clearing House. If applicable, Subscriber agrees that the Subscription Fee and Web Site Fee (if applicable) shall be paid by Automated Clearing House debit. If Subscriber is unable to execute an ACH Authorization Agreement, Subscriber shall make payment to T2 by check, credit card or debit card in the amount payable hereunder. Furthermore, Subscriber agrees to submit such payment to T2 so that payment is received by T2 on or before the Subscription Fee due date. VERSION 071511 DowSign Envelope ID: FBA55BE0-C605-4C7D-AE34-gCE67A264DD0 Payment Options Annual Subscription paid in advance 2. Monthly Subscription paid in advance. Monthly payments are subject to a 3% processing fee. 3. ACH (see above) Section 6.6 Late Charges. If Subscriber does not make timely payment of the Subscription Fee to T2 of any amount payable hereunder, in addition to the remedies available to T2 at law or equity, T2 may collect interest on the sum then owing at the rate of 12% per month from the due date until payment by Subscriber; provided, however, that in no event shall the aggregate interest charges exceed the maximum rate of interest which could be charged under applicable law and T2 may suspend services until all amounts due are collected. If payment is not received within thirty (30) consecutive days, T2 has the right to suspend services provided hereunder. Artide7. TERM AND TERMINATION Section 7.1 Term. The term of this agreement shall be August 1, 2017 through July 31, 2020. The City may elect to renew this agreement for two (2) additional three (3) year terms upon expiration of the initial term. Renewal of the agreement after the initial term is as the discretion of the City. Section 7.2 Termination. Subscriber may terminate the Subscriptions granted in this Agreement, any support under Article 5, any Professional Services, and any Hosting Services by notice of non -renewal given in accordance with Section 7.1 or by notice given in accordance with the provisions of Article 11. T2 may terminate the Subscriptions granted in the Agreement and any support under Article 5 by notice of non -renewal given in accordance with Section 7.1, by termination as provided in Section 6.4 or upon fifteen (15) days prior written notice in the event Subscriber uses the Software in a manner not permitted under the Agreement. Nothing in this agreement or any other agreement between the parties shall prohibit T2 from contracting with, or providing goods (including software) or services to, any other party to service the same end users contemplated by this agreement. Section 7.3 Return of Materials. Upon termination of the Subscription of the Software or Handheld Software for any reason, Subscriber shall destroy all copies of the Software or Handheld Software and any other materials received from T2 and fumish T2 a written statement certifying that through Subscriber's best efforts, and to the best of Subscriber's knowledge, all copies of the Software or the Handheld Software, including all copies of Client Components, and any other materials received from T2, have been destroyed. VERSION 071511 10 DocuSign Envelope ID: FBA55BE0-CB05-4C7D-AE34-gCE67A284DD0 Section 7.4 Return of Subscriber Data. Upon termination of the Subscription of the Software, T2 shall, at Subscriber's request, return Subscriber's data in an Oracle standard database export format. To accommodate special requests to receive data in any other format, Subscriber will be responsible for additional time and materials required to accommodate this request. All special requests will be scoped by T2 and then an initial estimate provided to the Subscriber. 7.5 Outstanding and Future Payment Obligations. All payment obligations between the parties that are outstanding as of the effective date of termination, or which accrue hereunder prior to the effective date of termination or which accrue for services that are completed after the effective date of termination shall survive the termination of this Agreement. Article 8. SUBSCRIBER DATA Section 8.1 Confidential Treatment. All Subscriber Data which is submitted by Subscriber to T2 pursuant to this Agreement will be safeguarded by T2 to the same extent that T2 safeguards data relating to its own business; provided, however, if Subscriber Data is publicly available, is already in T2's possession from a source other than Subscriber or otherwise known to it, or was rightfully obtained by T2 from third parties, T2 shall bear no responsibility for its disclosure, inadvertent or otherwise. Upon reasonable notice, Subscriber may inspect T2's facilities during regular T2 business hours to assure Subscriber of T2's compliance with this obligation. Section 8.2 Obligation of Subscriber to Protect. The Software creates and stores databases of personal information of end-users and data relating to Subscriber on the computer system on which the Software is installed. Subscriber agrees to take all steps which it deems are appropriate to provide adequate security for that information. Article 9. RESTRICTIONS ON USE OF THE SOFTWARE Section 9.1 No Distribution. Subscriber may not distribute or sublicense the Software to any person. Section 9.2 No Sublicense; Persons Authorized to Use. Subscriber may not resell accounts or sublicense persons to use the Software other than Authorized Concurrent Users. Section 9.3 No Reverse Engineering. Subscriber agrees that it will not create or attempt to create or permit others to create or attempt to create, by reverse engineering or otherwise, the source programs for the Software or any part thereof from the object program or from other information made available under the Agreement (whether oral, written, tangible or intangible). VERSION 071511 11 DocuSign Envelope ID: FBA55BE0-CB054C7D-AE34-gCE67A284DD0 Section 9.4 Limited Copies. Subscriber is authorized to make copies of the Software, to the extent copies are reasonably required for back-up and archival purposes or for internal business operations. Subscriber agrees that while the Agreement is in effect, or while it has custody or possession of any property of T2, Subscriber will not copy or duplicate, or permit anyone else to copy or duplicate, any physical, magnetic, electronic or other version of the Software, beyond the number of authorized Production Copies subscribed pursuant to this Agreement, and Client Components which are installed on Authorized Concurrent Users' devices. Subscriber may modify the documentation as necessary for its internal purposes, but shall not alter or remove any proprietary notice in the documentation, including but not limited to T2's name, logo and copyright notice. Section 9.5 Export. Subscriber shall not permit any copy (in any medium) of all or any portion of the Software to be transmitted to or located outside of the United States except with T2's prior written consent and compliance by Subscriber with any applicable export or import requirements. Section 9.6 Passwords. Subscriber shall not: (i) transmit or share identification and/or password codes to persons other than the Authorized Concurrent Users for whom such codes were generated; (ii) permit Authorized Concurrent Users to share identification and/or password codes with others; or (iii) permit the identification and/or password codes to be cached in proxy servers and accessed by individuals who are not Authorized Concurrent Users. Arlide 10. PROPRIETARY PROTECTION Section 10.1 T2 Confidential Information. Subscriber and Subscriber's subsidiaries recognize that the source code for the Software, and all specifications, techniques, manuals (other than end-user materials), system documentation and other materials relating to the operation of the Software which are disclosed or made available to Subscriber by T2 pursuant to this Agreement (collectively, '72 Proprietary Material") are confidential, proprietary and trade secret and are protected by law. The Agreement does not give Subscriber the right to have access to any source code for the Software. Section 10.2 Other Proprietary Information. T2 and Subscriber each may provide the other information which it treats as confidential or proprietary and which either (a) it has marked "Confidential" or "Proprietary," or (b) a reasonable person in the circumstances would understand to be confidential or proprietary ("Proprietary Material"). The receiving party agrees: (a) not to use Proprietary Material it receives from the disclosing party for any purpose other than performing its obligations and exercising its rights under this Agreement; (b) to exercise at least the same care to maintain the confidentiality of the Proprietary Material as it does its own confidential information of the same type; and (c) not to VERSION 071511 12 DocuSign Envelope ID: FBA55BE0-C8054C7D-AE34-9CE67A284DD0 disclose the Proprietary Material to any third party, except that it may disclose Proprietary Material (i) on a confidential basis to its affiliates and its and its affiliates' attorneys, accountants, consultants, lenders, potential lenders and financial, tax, technical and other advisors who agree to keep it confidential, (ii) when required to comply with applicable laws or governmental regulations, (iii) in response to a subpoena or other legal process provided that, if permitted by law, it first notifies the disclosing party and, to the extent possible, gives the disclosing party a reasonable opportunity to challenge the disclosure and (iv) on tax returns or in connection with any examination or audit thereof. "Proprietary Material" shall not include information received from a party which: (i) is in the other party's possession without actual or constructive knowledge of an obligation of confidentiality with respect thereto, prior to disclosure by the party; (ii) is or subsequently becomes part of a public domain through no fault of the other party; (iii) is disclosed to the other party by a third party having no obligation of confidentiality with respect thereto, and provided the other party did not have actual or constructive knowledge that such information was wrongfully disclosed by such third parties; or (iv) is independently developed by the other party. Section 10.3 Reproduction of Marks. Subscriber agrees that any copies made of the Software, Handheld Software, any other T2 Proprietary Material and any other material obtained from T2 shall preserve unaltered patent, trademark, copyright, proprietary or confidentiality notices contained therein. Section 10.4 Patent and Copyright Indemnity. T2 warrants that the Software and any materials developed by T2 and provided by T2 to Subscriber will not infringe on any United States copyright or patent. Should any legal action be made against Subscriber based on infringement of a United States copyright or patent as a result of the Software or the Professional Services, Subscriber shall promptly notify T2 and T2 shall defend the action at its expense. T2's liability in that event will be limited to defending the action and payment of any resulting court costs and damages finally awarded against Subscriber in the action. T2's obligations pursuant to this Section 10.4 shall not apply to any infringement caused by or resulting from Subscriber modifications or attempted modifications to any relevant system, or from Subscriber's failure to implement changes or updates furnished by T2 to Subscriber during the term of this Agreement. Article 11. CORRECTION OF ERRORS Section 11.1 Correction of Functionality of the Software. The liability of T2 for the functionality of the Software is limited, except as provided below in this Section, to the warranty provided in 0. If, thirty (30) days after the giving of the required notice described in 0, the Software fails to so conform, and the failure to conform is occasioned by T2's error and not operator error, faulty data or hardware failures, then, Subscriber may, at its election at any time thereafter while the failure remains uncured, send T2 a written notice that: (i) T2 has continued to fail to correct the failure; and (ii) VERSION 071511 13 DocuSign Envelope ID: FBA55BE0-CB05-4C7D-AE34-9CE67A284DD0 Subscriber has elected to terminate the subscription of the Software. Upon the continuance of that failure for a period of thirty (30) days after such written notice of the continuance of such failure to correct and Subscriber's election to terminate has been given to T2 by the Subscriber ("cure period"),. Subscriber may, and its exclusive remedy shall be to, terminate the subscription granted pursuant to the Agreement within sixty (60) days after the expiration of the cure period by the destruction of the materials described in Section 7.3, and have returned to it, (to the extent the amounts have not been previously refunded) the Subscription Fee, under Section 6.1 of this Agreement theretofore paid to T2 for the initial Subscription Term. If Subscriber fails to return the materials within thirty (30) days after the expiration of the cure period, Subscriber shall have waived its right to terminate the subscription and to receive a refund of the Subscription Fee. Section 11.2 Correction of Support Errors. T2's liability under Article 5 is limited as provided in this Section 11.2. T2 commits to use commercially reasonable efforts repair "minor" bugs, which are errors that support a "work around" solution (a "Minor Error"), in the next production release of the Software, which would typically occur in ninety (90) days or less. New production releases (beta releases) are heavily tested by T2's technical staff and, typically, by beta site Subscribers, meaning that "critical" bugs, which are errors that would stop a Subscriber from processing (a "Critical Error" and together with a Minor Error, an "Error") rarely make it into a production release. Nevertheless, if a Critical Error makes it into a production release, T2 commits to use commercially reasonable efforts to distribute a software patch within forty-eight (48) hours of T2's receipt of notice of the Critical Error. If an Error continues for a period of sixty (60) days after that detailed written notice has been given to T2 by Subscriber ("cure period"), Subscriber may, and its exclusive remedy shall be to terminate the subscription of the Software by certifying destruction of the Software and other materials in the manner provided in Section 7.3 within thirty (30) days after the expiration of the cure period and, upon such certification, have returned to it the prorated consideration representing Subscriber's payment of the Subscription Fee for the days remaining in the then current Subscription Term computed from the date of T2's receipt of the termination notice. Section 11.3 Correction of Hardware Errors. T2's liability under Article 2 is limited as provided in this Section 11.3. If after giving T2 notice of the Hardware Error, T2 fails to repair or replace the faulty Hardware, then, Subscriber may, at its election at any time thereafter while the Hardware Error remains uncured, send T2 written notice that (i) T2 has continued to fail to correct the Hardware Error and (ii) Subscriber has elected to terminate the Hardware Support services. If the Hardware Error continues for a period sixty days (60) after that detailed written notice has been given to T2 by Subscriber ("cure period"), Subscriber may, and its exclusive remedy shall be to request that T2 return the Hardware and have returned to it the prorated consideration representing Subscriber's payment for the Hardware repair and support. VERSION 071511 14 DocuSign Envelope ID: FBA55BE0-C8054C7D-AE34-8CE67A284DD0 Section 11.4 Correction of Professional Services Errors. Subscriber shall notify T2 within thirty (30) days' time after T2 advises Subscriber of its completion of the work in question when the Professional Services do not execute in accordance with the Subscriber's specifications. The notification shall include the detailed variances and the information necessary for T2 to verify the variances. T2, upon actual receipt of the notification and verification of the detailed variances, shall modify the work so that it shall conform to the Subscriber specifications. The passage of the thirty (30) day period after T2 advises the Subscriber that the work is completed without the notification described herein shall constitute final satisfaction of the express warranty and the warranty period described above. Article 12. REMEDIES Section 12.1 No Other Liability. Neither party shall be liable for any indirect, incidental, consequential, special or exemplary damages arising from performance of this Agreement. Article 13. DEFINED TERMS Section 13.1 Agreement. The "Agreement" between T2 and Subscriber consists of this Parking Management System Agreement, Quote #00007906.B, and any additional Quotes or Amendments executed by the parties in writing. Section 13.2 Authorized Hosting Provider. An "Authorized Hosting Provider" means T2 or its subcontractors. Section 13.3 Authorized Purposes. Subscriber's "Authorized Purposes" are the use of the Software for the Subscriber's internal parking business operations. Section 13.4 Authorized Concurrent Users. The number of "Authorized Concurrent Users" is set forth in the Quote. Subscriber may increase the number of Authorized Concurrent Users by agreeing to an Amendment to this Contract. Section 13.5 Client Components. The "Client Components" are components of the Software, which T2 makes available for downloading by Authorized Concurrent Users onto a personal computer or other personal electronic storage device solely for Authorized Purposes. Section 13.6 Cooperation. "Cooperation" is defined in Section 5.5. Section 13.7 Critical Error. A "Critical Error" is defined in Section 11.2. VERSION 071511 15 DocuSign Envelope ID: FBA55BE0-C805AC7D-AE34-9CE67A284DD0 Section 13.8 Effective Date. The "Effective Date" is the date of this Agreement. Section 13.9 Technical Support. 'Technical Support" includes: Section 13.10 Professional Services. "Professional Services" shall have the meaning set forth in Section 4.1.. Section 13.11 Hardware Error. "Hardware Error" shall mean a defect in the Hardware that prevents Subscriber and its Authorized Concurrent Users from accessing the Software through the Hardware. Section 13.12 Hardware Fee. "Hardware Fee" shall mean the fee set forth in the Quote for the initial term of. The Hardware Fee is subject to change as provided in Section 6.2. Section 13.13 Hosting Error. "Hosting Error" shall mean a defect in the Hosting System that prevents Subscriber and its Authorized Concurrent Users from accessing the Software through the Hosting Services. Section 13.14 Hosting Services Fee. "Hosting Services Fee" shall mean the fee set forth in the Quote for the initial term of the Hosting Services. The Hosting Fee is subject to change as provided in Section 6.2. Section 13.15 Hosting Services. "Hosting Services" shall mean that T2 will install, operate, and maintain the Software on T2's Application Server, and provide to Subscriber access to T2's Application Server Sufficient for Subscriber to exercise its subscription rights granted herein and for the Authorized Concurrent Users to communicate with, access and use the Software by way of the Internet. VERsiox 071511 16 T2 Hosted Service Customers Assistance with upgrading T2 Flex Software Included Assistance with upgrades to Oracle database releases Included Assistance with installation of Oracle patches Included Access to Crystal Reports library of 400+/- reports Included Authorized Concurrent Users may participate in on-line T2 Systems training on Software upgrades Included Database rebuilds or repairs Included Section 13.10 Professional Services. "Professional Services" shall have the meaning set forth in Section 4.1.. Section 13.11 Hardware Error. "Hardware Error" shall mean a defect in the Hardware that prevents Subscriber and its Authorized Concurrent Users from accessing the Software through the Hardware. Section 13.12 Hardware Fee. "Hardware Fee" shall mean the fee set forth in the Quote for the initial term of. The Hardware Fee is subject to change as provided in Section 6.2. Section 13.13 Hosting Error. "Hosting Error" shall mean a defect in the Hosting System that prevents Subscriber and its Authorized Concurrent Users from accessing the Software through the Hosting Services. Section 13.14 Hosting Services Fee. "Hosting Services Fee" shall mean the fee set forth in the Quote for the initial term of the Hosting Services. The Hosting Fee is subject to change as provided in Section 6.2. Section 13.15 Hosting Services. "Hosting Services" shall mean that T2 will install, operate, and maintain the Software on T2's Application Server, and provide to Subscriber access to T2's Application Server Sufficient for Subscriber to exercise its subscription rights granted herein and for the Authorized Concurrent Users to communicate with, access and use the Software by way of the Internet. VERsiox 071511 16 DocuSign Envelope ID: FBA55BE0-C8054C7D-AE34-9CE67A284DD0 Section 13.16 Hosting System. "Hosting System" shall mean the computer and network equipment owned and maintained by T2 or its designated third party and the operating software licensed by T2 or its designated third party. Section 13.17 Installation Date. "Installation Date" shall mean the date the Flex application goes into production mode. Section 13.18 Minor Error. A "Minor Error" is defined in Section 11.2. Section 13.19 Production Copy. A "Production Copy" is an executable code copy of the Software which is used on a computer system to process live data. Copies of all or a portion of the Software whether on multiple computers or on a computer system will constitute a single Production Copy so long as a single database is used by all of the copies of the Software. The number of Production Copies authorized under this Agreement is one, unless otherwise set forth in the Quote. Section 13.20 Professional Services Fee. "Professional Services Fee" shall mean the fee set forth in the Quote for the initial term of the Professional Services. The Professional Fee is subject to change as provided in Section 6.2. Section 13.21 Proprietary Material. "Proprietary Material" shall have the meaning set forth in Section 10.1. Section 13.22 Remote Access Equipment. "Remote Access Equipment" shall mean the equipment necessary for Subscriber to access the services on the Internet. The Remote Access Equipment is to be provided by Subscriber. Section 13.23 Subscriber. The "Subscriber" is identified in this agreement. Section 13.24 Subscriber Data. "Subscriber Data" shall mean the data provided to T2 by Subscriber and the Authorized Concurrent Users, including data regarding Authorized Concurrent Users. Section 13.25 Subscription Fee. The "Subscription Fee" for the initial Subscription Term is set forth in the Quote. The Subscription Fee for the terms after the initial Subscription Term may be changed as provided in Section 6.2. Section 13.26 Subscription Term. The "Subscription Term" is specified in Section 7.1 Software. The "Software" is specified in the Quote and consists of T2 Flex® and all related software components including but not limited to, software as specified in the Quote. VERSION 071511 17 DocuSlgn Envelope ID: FBA55BE0-C805-4C7D-AE34-gCE67A284DD0 Section 13.27 Target Response Time. The 'Target Response Time" is the time period during support hours in which T2 will strive to communicate with the Subscriber acknowledging a support request by the Subscriber. Section 13.28 Quote. The Quote sets forth the specific products, subscriptions, or services purchased and pricing for each, and shall reference the Parking Management System Agreement. Section 13.29 Standard Technical Support. "Standard Technical Support" includes responses to questions of error by email or telephone. Section 13.30 T2 Proprietary Material. '72 Proprietary Material" is defined in Section 10.1. Section 13.31 Time and Materials Basis. 'Time and Materials Basis" means an hourly basis at the rate specified in future Quotes, together with reimbursement of expenses. Section 13.32 Web Site. 'Web Site" means the Web Site prototype provided by T2, and subsequently customized at Subscriber's request. Article 14. MISCELLANEOUS Section 14.1 Escrow of Source Code. T2 entered into a source code escrow agreement with Lincoln Parry Software, Inc. (the "Escrow Agreement') providing for the deposit of the source code programs for the executable version of the Software into an escrow account. The Escrow Agreement further provides, subject to the terms and conditions for which Subscriber agrees to be bound, that the escrow agent may release the source code to Subscriber upon the occurrence of one of the release event(s) specified therein. T2 will provide a copy of the Escrow Agreement to the Subscriber upon request. The Escrow Agreement provides that the Trustee shall deliver a copy of the source code to the Subscriber only if the Subscriber has satisfied the procedures and conditions set forth in the Escrow Agreement, including, the execution of the Non -Disclosure Covenant attached thereto. Upon release of the source code, the Subscriber is authorized to copy, modify, and create derivative works based on the source code for the sole purpose of debugging and maintaining the Software. The Subscriber shall remain entitled to keep a copy of the source code so long as the Subscriber continues to pay the Subscription Fee under this Agreement. Also, Subscriber shall pay to T2, within fifteen (15) days of receipt of invoice, the annual administrative fee of Lincoln Parry Software, Inc. Subscriber shall remain obligated to pay T2 the Subscription Fee notwithstanding the release of the source code for the Software from the escrow. VERSION 071511 18 DocuSign Envelope ID: FSA55BE0-C805-4C7D-AE34-9CE67A284DD0 Section 14.2 Notices. Any notices or other communications required or permitted to be given or delivered under the Agreement shall be in writing and shall be delivered to T2 at its address specified on its web site or to Subscriber at its address specified in the Quote or to such other address as either party may, from time to time, designate to the other in writing. All notices to T2 shall be to the attention of the CEO of T2. Any notice given shall be deemed to have been received on the date on which it is delivered personally, by courier service or by facsimile or, if mailed, on the third business day next following the mailing thereof. Section 14.3 No Partnership. Nothing in this Agreement shall be deemed to create a partnership, joint venture or agency relationship. Section 14.4 Survival. The provisions of 0, Section 3.9, Section 3.10, Section 6.3, Section 6.4, Section 7.3, Section 7.4, 0, Article 8, Article 10, Article 11, Article 12, Section 14.4 and Section 14.6, and all obligations of Subscriber to pay or reimburse T2 for any amounts arising under this Agreement, shall survive any termination of either this Agreement or the non-exclusive subscription granted hereunder. Section 14.5 Publicity. Subscriber agrees that T2 may identify Subscriber as a customer in the customer lists or other similar communications. T2 agrees not to use Subscriber's name in any other Public releases or in any case histories except with Subscriber's prior consent which Subscriber agrees not to unreasonably withhold or delay. Section 14.6 Governing Law. Regardless of the place of execution, delivery, performance or any other aspect of this Agreement, this Agreement and all of the rights of the parties under this Agreement shall be governed by, construed under and enforced in accordance with the substantive law of the United States of America and of the State of Iowa without regard to conflict of laws principles. Section 14.7 Severability. If any provision in the Agreement shall be held to be in contravention of applicable law, the Agreement shall be construed as if that provision were not a part thereof and in all other respects the terms of the Agreement shall remain in full force and effect. Section 14.8 No Waiver. No waiver of any covenant or condition or the breach of any covenant or condition of the Agreement shall be deemed to constitute a waiver of any subsequent breach of the covenant or condition nor justify or authorize a non -observance upon any occasion of that covenant or condition or any other covenant or condition of the Agreement. Section 14.9 Entire Agreement. The Agreement (consisting of this Parking Management System Agreement, Appendix A and the Quote) constitutes the entire agreement between the parties hereto with regard to the Software, any Hosting Services, any Development Services, and any support of the Software. VERSION 071511 19 DocuSign Envelope ID: FBA55BE0-C805-4C70-AE34-9CE67A284DD0 Section 14.10 Additional Work. If Subscriber requires additional work and/or integrations not included in this Agreement and attached Quote, T2 and Subscriber shall negotiate the additional work, mutually agree on the scope and compensation, and document the terms in an amendment to this Agreement per the purchasing requirements of the Subscriber. Section 14.11 Arbitration. omitted. Article 15. ADDITIONAL TERMS AND CONDITIONS A. Insurance Requirements: This Section intentionally T2 Systems will be required to submit a current certificate of insurance before a purchase order will be issued. The certificate of insurance shall include the following items: • The City of Iowa City will be named as additional insured • Project bid number and project title as the description • Insurance carriers will be rated as A or better by A.M. Best 2. Informal Project Specs: Class I (under $1 M) Type of Coverage Each Occurrence Aggregate a. Comprehensive General Liability (1) Bodily Injury & Property Damage $500,000 $1,000,000 b. Automobile Liability Combined Single Limit (1) Bodily Injury & Property Damage $500,000 c. Worker's Compensation Insurance as required by Chapter 85, Code of Iowa Indemnity: T2 Systems shall indemnify, defend and hold harmless the City of Iowa City and its officers, employees, and agents from any and all liability, loss, cost, damage, and expense (including reasonable attorney's fees and court costs) resulting from, arising out of, or incurred by reason of any claims, actions, or suits based upon or alleging bodily injury, including death, or property damage rising out of or resulting from the T2 System's operations under this Contract, whether such operations be VERSION 071511 20 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-gCE67A284DDo by himself or herself or by any Subcontractor or by anyone directly or indirectly employed by either of them. T2 Systems is not, and shall not be deemed to be, an agent or employee of the City of Iowa City. Responsibility for Damage Claims - It is specifically agreed between the parties executing this contract that it is not intended by any of the provisions of any part of the contract documents to create in the public or any member thereof a third party beneficiary hereunder, or to authorize anyone not a party to this contract to maintain a suit for personal injuries or property damage pursuant to the terms or provisions of this contract. It is understood that no subcontractor is a third party beneficiary to any contract between the Contracting Authority and the prime contractor. Nothing in any special provision or any supplemental specification shall be construed as eliminating or superseding the requirements of this section. T2 Systems further agrees to: a. Save the City its agents and employees harmless from liability of any nature or kind for the use of any copyright or non -copyright composition, secret process, patented or unpatented invention, article, apparatus or appliance including any device or article forming a part of the apparatus or appliance furnished or used in the performance of the contract of which T2 Systems is not the patentee, assignee, licensee or owner. b. Protect the City against latent defective material or workmanship and to repair or replace any damages or marring occasioned in transit or delivery. c. Furnish adequate Protection against damage to all work and to repair damages of any kind, to the building or equipment, due to T2 System's own work or to the work of other contractors, for which he/she or his/her workers are responsible. d. Obtain all Permits and licenses required by City, state, and federal governments and pay all related fees. T2 Systems shall also comply with all laws, ordinances, rules and regulations of the City, State of Iowa and the Federal Government. B. Chane in Laws: In the event of a change in law that frustrates the goals of the City relative to this contract, the City will be entitled to terminate the contract upon written notification to the vendor without cost or penalty to the City. C Contract Alterations. The City reserves the right to make changes to the Goods/Services to be provided which are within the Project. No assignment, alteration, change, or modification of the terms of this Agreement shall be valid unless made in writing and agreed to by both the City and T2 Systems. T2 Systems shall not commence any additional work or change the scope of the Goods/Service until authorized in writing by the City. T2 VERSION 071511 21 DocuSign Envelope ID: FBA55BEO-CBOS-4C7D-AE34-gCE67A284DDO Systems shall make no claim for additional compensation in the absence of a prior written approval and amendment of this Agreement executed by both T2 Systems and the City. This Agreement may only be amended, supplemented or modified by a written document executed in the same manner as this Agreement by the Purchasing Division. D. Subletting of Contract T2 Systems shall not assign, transfer, convey, sublet or otherwise dispose of his/her contract or his/her right, title or interest therein, or his/her power to execute such contract, to any other person, firm or corporation, without the prior written consent of the City, but in no case, shall such consent relieve the Contractor from his/her obligations, or change the terms of contract. E. Availability of Funds: A contract shall be deemed valid only to the extent of appropriations available to each project. The City's extended obligation on these contracts which envision extended funding through successive fiscal periods shall be contingent upon actual appropriation for the following fiscal year. F. Default The contract may be cancelled or annulled by the City in whole or in part by written notice of default to T2 Systems upon non-performance, violation of contract terms, delivery failure, bankruptcy or insolvency, orthe making of an assignment for the benefit of creditors. An award may then be made to next low bidder, or when time is of the essence, similar commodities and/or service may be purchased on the open market. In either event, T2 Systems (or his/her surety) shall be liable to the City for cost to the City in excess of the defaulted contract price. Lack of knowledge by T2 Systems will in no way be a cause for relief from responsibility. G. Delivery Failures: Failure of T2 Systems to provide commodities and/or service within the time specified, unless extended in writing by the City, or failure to replace rejected commodities and/or service when so directed by the City shall constitute delivery failure. When such failure occurs, T2 shall have thirty (30) days cure period to rectify the delivery failure limited to the repair or replacement of the commodities. Should T2 not be able to remedy the delivery failure then the City's remedies are return the commodities and refund of moneys paid or terminate the contract as per Section 7.3. The City reserves the right to accept commodities and/or service delivered which do not meet specifications or are substandard in quality, subject to an adjustment in price to be determined by the City. H. Force Majeure: T2 Systems shall not be liable in damages for delivery failure when such failure is the result of fire, flood, strike, act of God, act of government, act of an alien enemy or any other circumstances which, in the City's opinion, is beyond the control of the Contractor. Under such circumstances, however, the City may at its discretion cancel VERSION 071511 22 DocuSign Envelope ID:. FBA55BEO-CROS-4C7D-AE34-SCE67A284DD0 the contract. 1. New Goods Fresh Stock. All contracts, unless otherwise specified, shall produce new commodities, fresh stock, latest model, design or pack. J. Professional Workmanship: Professional workmanship shall meet or exceed existing industry standards. K. Occupational Safety and Health Administration Reguirements: All commodities and/or service shall satisfactorily comply with applicable Occupational Safety and Health Administration regulations in effect at the time commodities are shipped and/or the service is performed. Safety Data Sheets are required in accordance with applicable regulations. L. Anti -Discrimination: T2 Systems shall not discriminate against any person in employment or public accommodation because of race, religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or physical disability, marital status or age. "Employment" shall include but not be limited to hiring, accepting, registering, classifying, promoting, or referring to employment. 'Public accommodation" shall include but not be limited to providing goods, services, facilities, privileges and advantages to the public. M. Delivery Provisions: 1. Cartage. All items shall be delivered free on board destination. Delivery costs and charges must be included in the bid unless otherwise stated in the specifications or Quote. 2. Responsibility for commodities and/or services. T2 System shall be responsible for any commodities and/or service covered by this contract until they are delivered at the designated point. Title to the commodities shall remain with T2 until such commodities have been paid in full.T2 Systems shall bear all risk for rejected commodities and/or service after written notice of rejection. Rejected commodities and/or service shall be removed and/or replaced by and at the expense of T2 Systems promptly after written notification of rejection, unless public health and safety require destruction or other disposal of rejected delivery. 3. Insimctlons. Final inspection of commodities and/or service shall be conclusive except as regards to latent defects, fraud, or such gross mistakes that amount to fraud. Final inspection and acceptance or rejection of the commodities and/or service shall be made within a reasonable time after delivery, or at the date when the commodities are first used or otherwise placed in commercial operation. VERSION 071511 23 DocuSign Envelope ID: FBA55BE0-C8054C7D-AE34-gCE67A284DD0 Failure to inspect and accept or reject commodities and/or service shall not impose liability on the City if such commodities and/or service are not in accordance with the specifications. All delivered commodities shall be accepted subject to inspection and physical count. 4. Time of Delivery. T2 Systems shall guarantee delivery of supplies in accordance with such delivery schedule as may be provided in the specifications and proposals. If delivery schedules are not provided in the specifications section, deliveries will be accepted between 8:30 a.m. and 3:30 p.m. on weekdays only. No deliveries shall be accepted on Saturdays, Sundays or holidays, unless otherwise authorized. 5. Packing Slips or Delivery Tickets. All shipments or deliveries shall be accompanied by packing slips or delivery tickets and shall contain the following information for each item delivered: • Name and Address of Ordering Department/Division. • Name of the Contractor. • Commodity name. • Supplier's stock number. • Quantity ordered. • Quantity and date shipped. • Quantity back ordered. T2 Systems' is cautioned that failure to comply with these conditions may be considered sufficient reason for refusal to accept the commodities and/or for delay in payment. O. Discrepancies: In the event that there are any discrepancies or differences between any conditions of T2 Systems quote and this contract , this contract shall prevail. All costs associated with this project must be included in the vendor's submitted quote. The total project cost for complete repair must include all costs for required equipment, supplies, shipping, labor, and travel needed for the full functionality and use of the equipment. Any costs not specifically set forth in the Quote will be the responsibility of the T2 Systems, and will be deemed included in the fees and charges bid herein. P. Choice o/ Law and Forum: The laws of the State of Iowa shall govern and determine all matters arising out of or in connection with this proposal, including but not limited to any resulting Contract, without regard to the conflict of law provisions of Iowa law. Any and all litigation commenced in connection with this proposal shall be brought and maintained solely in Johnson County District Court for the State of Iowa, Iowa City, Iowa, or in the United States District Court for the Southern District of Iowa, Davenport Division, Davenport, Iowa, wherever jurisdiction is appropriate. This provision shall not be construed as waiving any immunity to suit or liability in State or Federal court, which may be available to the Agency or the State of Iowa. VERSION 071511 24 DocuBign Envelope ID: FBA55BE0-C805AC7D-AE34-gCE67A284DD0 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the Effective Date. T2 Systems, Inc. D.uS\i .d by - [ Bynneunvcaevaa Name: Tim Maginn W r City of Iowa City By: Name: Sames A. Throgmorton Mayor 44 Ap roved BY �j k&l/7 City Attorney's VERSION 071511 25 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-gCE67A284DD0 EXHIBIT A: PCI AND PA DSS COMPLIANCE L DEFINITIONS A Self Hosted Subscriber's instance of T2 Flex and the T2 Credit Card Solution is installed entirely on the Subscriber's site(s). A T2 Hosted Subscriber's instance of T2 Flex and the hosted components of the T2 Systems Credit Card Solution are installed and run in the T2 Hosting Environment. A T2 Hosted Subscriber has both hosted and Non -Hosted Components. The Standard Network is part of the T2 Hosting Environment and contains T2 Flex servers, T2 e -Business Solutions Servers, and other equipment. T2 Hosted Subscribers who do not process payments through the Hosting Environment use only the Standard Network. The Standard Network uses standard, commercially reasonable security practices to control and protect the transmission of data to and from the Hosting Environment. The Payment Network is part of the T2 Hosting Environment and is used solely for payment processing. T2 Hosted Subscribers who process payments through the Hosting Environment use the Standard Network for routine Flex T2 e -Business Solutions operational processes and the Payment Network for payment processing. The Payment Network is secured to the Payment Card Industry Data Security Standard (PCI DSS) . T2 Systemss,responsible for maintaining PCI DSS compliance of the T2 Hosting Environment Payment Network. Non -Hosted Components are considered to be any software components of T2 Flex, T2 e -Business Solutions, and/or the T2 Systems Credit Card Solution installed on hardware located at the Subscriber site(s) and any hardware located at the Subscriber site(s). Non -Hosted Components are not part of the T2 Hosting Environment, the Standard Network, or the Payment Network, and are not the responsibility of T2 Systems. The T2 Hosting Environment includes the T2 servers, networking equipment, and related devices located at T2's data center, and the software and data that reside on that equipment. There are two networks within the T2 Hosting Environment: Standard and Payment. ll.T2 SYSTEMS RESPONSIBILITIES T2 Systems shall provide Payment Card Industry Payment Application Data Security Standard (PCI PA -DSS) validated software for processing credit card payments (T2 Systems Credit Card Solution), including a PA -DSS Implementation Guide containing guidelines for installing and configuring the T2 Systems Credit Card Solution to support Payment Card Industry Data Security Standard (PCI DSS) compliance. T2 Systems shall maintain the PCI PA -DSS validation of the T2 Systems Credit Card Solution its PA -DSS Implementation Guide. Note: Use of PCI PA -DSS validated software and its PA -DSS Implementation Guide does not guarantee merchant's PCI VERSION 071511 26 DocuSign Envelope ID: FBA55BE0-C805AC7D-AE34-9CE67A284DD0 DSS compliance. For complete and current PCI DSS C requirements, Subscribers should reference the Payment Card Industry Security Standards CouncilTm (PCI SSC) website at www pcisecuritvstandards ora. VBasioN 071511 27 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-9CE67A284DD0 For both the Standard and Payment Networks, T2 is responsible for the security of the data once it is inside the Hosting Environment and for using commercially reasonable data security practices to control and protect the transmission of data to and from the Hosting Environment. T2 Systems shall maintain the Payment Network in a validated PCI DSS compliant environment, including use of PCI PA -DSS validated software for processing credit card payments, the T2 Systems Credit Card Solution, configured as directed by its PA -DSS Implementation Guide. III.SUBSCRIBER RESPONSIBILITIES Subscribers are responsible for providing and maintaining a Payment Card Industry Data Security Standard (PCI DSS) compliant environment at their site(s) in which components of the T2 Systems Credit Card Solution may be installed, and for validation of that environment as required by their payment gateway, merchant bank, payment brand, or other entity with which the Subscriber is contracted to process payments. The Subscriber is responsible for configuring T2 Systems Credit Card Solution according to the PA -DSS Implementation Guide. Once the T2 Systems Credit Card Solution has been implemented at the Subscriber site(s), Subscribers are responsible for maintaining Non -Hosted Components of the T2 Systems Credit Card Solution, including implementation in a timely manner of any updates to the T2 Systems Credit Card Solution software and/or PA -DSS Implementation Guide provided by T2 Systems. Please note: Acceptance of a given payment application by the PCI Security Standards Council, LLC (PC[ SSC) only applies to the specific version of that payment application that was reviewed by a PA-QSA and subsequently accepted by PCI SSC (the "Accepted Version"). If any aspect of a payment application or version thereof is different from that which was reviewed by the PA-QSA and accepted by PCI SSC — even if the different payment application or version (the "Alternate Version") conforms to the basic product description of the Accepted Version — then the Alternate Version should not be considered accepted by PCI SSC, nor promoted as accepted by PCI SSC. No vendor or other third party may refer to a payment application as "PCI Approved" or "PCI SSC Approved", and no vendor or other third party may otherwise state or imply that PCI SSC has, in whole or part, accepted or approved any aspect of a vendor or its services or payment applications, except to the extent and subject to the terms and restrictions expressly set forth in a written agreement with PCI SSC, or in a PA -DSS letter of acceptance provided by PCI SSC. All other references to PCI SSC's approval or acceptance of a payment application or version thereof are strictly and actively prohibited by PCI SSC. When granted, PCI SSC acceptance is provided to ensure certain security and operational characteristics important to the achievement of PCI SSC's goals, but such acceptance does not under any circumstances include or imply any endorsement or warranty regarding the payment application vendor or the functionality, quality, or performance of the payment application or any other product or service. PCI SSC does VERSION 071511 28 DocuSign Envelope ID: FBA55BE0-C805.4C7D-AE34-9CE67A284DD0 not warrant any products or services provided by third parties. PCI SSC acceptance does not, under any circumstances, include or imply any product warranties from PCI SSC, including, without limitation, any implied warranties of merchantability, fitness for purpose or noninfringement, all of which are expressly disclaimed by PCI SSC. All rights and remedies regarding products and services that have received acceptance from PCI SSC, shall be provided by the party providing such products or services, and not by PCI SSC or any payment brands. IV. NEWLY DISCOVERED SECURITY VULNERABILITIES T2 Systems shall provide notice to the Subscriber of any newly discovered security vulnerabilities in the T2 Systems Credit Card Solution and, for T2 Hosted Subscribers, in the T2 Hosting Environment Payment Network, and provide network security updates, software updates, and/or updates to the PA -DSS Implementation Guide to remedy those vulnerabilities as soon as is reasonable and practical following discovery of the vulnerability. T2 Systems is not responsible for providing notice to T2 Subscribers regarding security vulnerabilities in non -T2 software or hardware that do not require changes to the T2 Systems Credit Card Solution, the T2 Systems Credit Card Solution PA -DSS Implementation Guide, and/or the T2 Hosting Environment Payment Network that do not affect configuration of hosted or Non -Hosted Components. For Non -Hosted Components, Subscribers are responsible for installing software updates provided by T2 Systems to remedy any newly discovered security vulnerabilities in the T2 Systems Credit Card Solution and for making any changes identified in updates to the PA -DSS Implementation Guide as soon as is reasonable and practical. Subscribers are responsible for notifying T2 Systems as soon as is reasonable and practical should the Subscriber discover a security vulnerability in or related to the T2 Hosting Environment Payment Network (T2 Hosted Subscribers only), the T2 Systems Credit Card Solution, and/or the T2 Systems Credit Card Solution PA -DSS Implementation Guide. V. INFORMATION SECURITY BREACH Subscribers are responsible for notifying T2 Systems should an information security breach of or relating to the T2 Systems Credit Card Solution and/or T2 Systems Hosting Environment Payment Network (T2 Hosted Subscribers only) occur as soon as law enforcement and contractual obligations to other payment entities require and/or allow. T2 Hosted Subscribers shall follow the instructions in the most recent version of the T2 Hosting Environment Hosted Subscriber Security Incident Response Plan. The Plan will be e-mailed to T2 Hosted Subscribers annually or as it is updated. T2 Systems shall notify Subscribers of any security breach of or relating to the T2 Systems Credit Card Solution and/or T2 Systems Hosting Environment Payment Network as soon as law enforcement and contractual obligations to other Subscribers and payment entities require and/or allow. Notification of T2 Hosting Environment breaches not related to a security vulnerability in the T2 Systems Credit Card Solution may be made to T2 Hosted Subscribers only. VERSION 071511 29 DocuSign Envelope ID: FBA55BE0-C805-4C7D-AE34-gCE67A284DD0 T2 Systems shall cooperate with law enforcement and assist with the investigation of any security breach of or relating to the T2 Systems Credit Card Solution and/or T2 Systems Hosting Environment Payment Network. VLTERMINATION OF SERVICES (T2 HOSTED SUBSCRIBERS ONLY) T2 Hosted Subscribers aI who persist in material deviations from the PA -DSS Implementation Guide not approved by the T2 Systems Chief Information Officer, or Ie who persist in material non -PCI DSS compliant security practices, or M who fail to implement updates to the T2 Systems Credit Card Solution software and/or PA -DSS Implementation Guide in a timely manner, or ■ who fail to report a security breach as required by the T2 Hosting Environment Hosted Subscriber Security Incident Response Plan, or ■ whose operation is deemed by T2 Systems to be a material risk to the security of the T2 Hosting Environment, may be disconnected from the T2 Hosting Environment Payment Network or the T2 Hosting Environment in its entirety at the discretion of the T2 Systems Chief Information Officer. VERSION 071511 30 DocuSlgn Envelope ID: FBA55BE0-CB05-4C7D-AE34-gCE67A284DD0 VBxsioN 071511 31 City of Iowa City - IA 410 E. Washington Street Iowa City, Iowa 52440 Prepared By: Melina Morokhovich Subscriptions T2 Systems - Quotation For: City of Iowa City - Renewal - Exp 7/31/17 - CoTerm Quote Issued: 11 /15/2017 Quote Expires: 11 /30/2017 Quote ID: 00007906.D Ship To: City of Iowa City - IA Tower Place 335 E. Iowa Avenue Iowa City, Iowa 52240 Prepared For: June Nasby ProductQuantity Year I TotalTotal Flex Device: Credit Card Processing 28.00 USD 14,000.00 USD 14,700.00 USD 15,435.00 Year l (8/1 /2017 - 7/31/2018) Year 2 (8/1/2018 - 7/31/2019) Year 3 (8/1/2018 - 7/31/2020) Flex Device: PARCS 39.00 USD 58,500.00 USD 61,425.00 USD 64,496.25 Year 1 (8/1/2017 - 7/31/2018) Year 2 (8/1/2018 - 7/31/2019) Year 3 (8/1/2018 - 7/31 /2020) Flex eTicketbook 1.00 USD 1,927.45 USD 2,023.82 USD 2,125.01 Year 1 Co -Term (6/16/2017 - 7/31/2018) Year 2 (8/1/2018 - 7/31/2019) Year 3 (8/1/2019 - 7/3112020) Flex FlexPort Accounts 1.00 USD 329.60 USD 346.08 USD 363.38 Year 1 (8/1/2017 - 7131/2018) Year 2 (8/1/2018 - 7/3112019) Year 3 (8/1 /2018 - 7/31/2020) Flex FlexPort Enforcement 1.00 USD 1,820.44 USD 1,911.46 USD 2,007.03 Year 1 (8/1/2017 - 7/31/2018) Year 2 (8/1 /2018 - 7/31/2019) Page 1 of 2 ProductQuantity Year I Total.. .. Year 3 (8/1/20118 - 7/31/2020) Flex FlexPort Permits 1.00 USD 563.38 USD 591.56 USD 621.14 Year 1 (8/1 /2017 - 7/31/2018) Year 2 (8/l/2018 - 7/31/2019) Year 3 (8/1/2018 - 7131/2020) Flex Mobile Enforcement 5.00 USD 3,543.75 USD 3,720.95 USD 3,907.00 Year 1 (8/112017 - 7/31/2018) Year 2 (8/l/2018 - 7/31/2019) Year 3 (8/l/201 8 - 7/3112020) Flex Premium Edition (10 concurrent users) 1.00 USD 50,506.03 USD 53,031.33 USD 55,682.90 Year 1 Co -Term (8/7/2017 - 7/31/2018) Year 2 (8/l/2018 - 7/31/2019) Year 3 (8/l/2019 - 7/31/2020) T2 Hosting Additional Storage Fee 6.00 USD 551.40 USD 579.00 USD 607.98 Year 1 (8/l/2017 - 7/31/2018) Year 2 (8/l/2018 - 7/31/2019) Year 3 (8/112018 - 7/31/2020) Year One Total Year Two Total Year Three Total Total Annual Investment: USD 131,742.05 USD 138,329.20 USD 145,245.69 All prices quoted are exclusive of taxes. Customer shall pay all taxes resulting from transactions, including, without limitation, occupation, property, excise, sales, or use taxes but excluding any taxes based on the income of T2 Systems. If the Customer claims an exemption from any such taxes, it is the Customer's responsibility to provide all documentation required by the appropriate taxing authorities. Page 2 of 2 I ` CITY OF IOWA CIT NOW COUNCIL ACTION REPO 4d�6� November 21, 2017 Resolution authorizing a contract for the Parking Management System Prepared By: Mark Rummel, Interim Transportation Management Director June Nasby, Buyer II Reviewed By: Simon Andrew, Assistant to the City Manager Fiscal Impact: Funds are available in the Other Operating Services line item, 71810141-445230, 71810142-445230, 71810143-445230, 71810245- 445230, and 71810120-445230, and in the Other Professional Services line item, 71810143-432080 in the operating budget for Transportation and Resource Management Department Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: On June 25, 2003, a Request for Proposal (RFP) was administered by the City's Purchasing Division for the Supply, Installation, and Maintenance of a Parking Management System. The City awarded the contract to T2 Systems based on qualifications, experience, price and the system that was proposed. Since that time, the City has used T2 for its parking management system. Support and maintenance of the T2 hardware and software that the City has is required to keep the system functional. T2 is the sole provider the necessary support and maintenance services, making this a sole source. The current contract term with T2 Systems expired on July 31, 2017, and City staff has negotiated a new three-year contract. The contract has an initial three-year term. It has an estimated first-year cost of $132,000 with a 5% annual increase. Background / Analysis: The parking management system includes software and hardware used to operate the City's access and revenue controlled operations for City -owned parking facilities and off-street lots. The parking system includes activities such as parking violation enforcement, parking permit management, and to processing visitor parking transactions. T2 Systems provides the hardware and software for the City's current parking management system. Use of the T2 system is necessary for these essential functions. Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. 17-345 Resolution authorizing the City Manager to sign the Mutual Aid Agreement Between The American Society for the Prevention of Cruelty to Animals (ASPCA) and Johnson County Emergency Management and the City of Iowa City. Whereas, in 2008 the flooded Iowa River forced the City's Animal Services division out of its home on Kirkwood Avenue and into a long term temporary facility; Whereas, Animal Services staff and volunteers rallied, the community poured in support and after 7 years a new facility was opened; Whereas, the coordinated response to the flood and the next several years in temporary housing was a lesson in emergency response and disaster preparedness for those involved; Whereas, since the flood, Animal Services has renewed its efforts in education and community preparation; and Whereas, staff has negotiated a mutual aid agreement with Johnson County Emergency Management and the American Society for the Prevention of Cruelty to Animals to coordinate disaster response in the event of a major disaster involving animals beyond the scope of which local resources could effectively manage. Now, therefore, be it resolved by the City Council of the city of Iowa City, Iowa, that: The City Manager is authorized to sign the attached Mutual Aid Agreement Between The American Society for the Prevention of Cruelty to Animals and Johnson County Emergency Management and the City of Iowa City and to sign any needed amendments. Passed and approved this 21st day of Approved l( - g -(+ City Attorney's Office November , 2017. M)WOR ATTEST: CI CLERK Resolution No. page 2 17-345 It was moved by rums and seconded by Botchway the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: % Botchway x Cole % Dickens % -x Mims Taylor x Thomas x Throgmorton ASPt'�i -- ASPCA OFM WE ARE THEIR VOICE Mutual Aid Agreement Between The American Society for the Prevention of Cruelty to Animals 1 1_ [Johnson County Emergency Management and the City of Iowa City "Cooperating Party" I. PURPOSE The purpose of this Mutual Aid Agreement (this "Agreement") is to create a working relationship between the American Society for the Prevention of Cruelty to Animals ("ASPCA") and Johnson County Iowa Emergency Management and the City of Iowa City (together, the "Cooperating Party"). The parties to this Agreement are the ASPCA and the Cooperating Party (each a "Party" and, collectively, the "Parties"). The further purpose of this Agreement is to facilitate the identification and coordination of assistance and animal rescue efforts. The Parties' objective is to maximize the welfare of animals and their care -takers before, during, and after a major incident, and to minimize the loss of life and animal suffering that might occur following such an incident. This Agreement shall be effective as of the date of the last signature below (the "Effective Date"). The Parties to this Agreement have determined that it is in the best interests of themselves and the communities they shall assist, including but not limited to Johnson County and the City of Iowa City, to foster communications and the sharing of resources, personnel, and equipment in the event of an incident that threatens the welfare of animals. This Agreement provides the broad framework for cooperation and communication between ASPCA and the Cooperating Party in providing assistance and service to animals as well as for other services for which cooperation may be mutually beneficial. II. CONCEPT OF OPERATIONS: Both ASPCA and the Cooperating Party are separate and independent entities. As such, each Party retains its own identity in providing services, and each Party is responsible for establishing its own policies and financing its own activities. III. DEFINITIONS A. Disaster: A disaster shall be defined as any natural or manmade situation that causes animal suffering or creates animal needs that cannot be met by a community, including, but not limited to, the Cooperating Party, without outside assistance. B. Animal Cruelty: Animal Cruelty shall be defined as any incident involving or related to abuse or neglect of animals. C. Authorized Representative: The list of names and titles of authorized representatives for each Party shall be attached hereto as "Exhibit A" and shall be updated as needed by each Party by means of a written notification. IV. MUTUAL UNDERSTANDING A. The ASPCA is a not-for-profit organization that exists to provide effective means for the prevention of cruelty to animals throughout the United States (the "ASPCA Mission"); B. ASPCA and the Cooperating Party will distribute this Agreement internally and shall urge full cooperation. Without limiting the generality of the foregoing, Cooperating Party shall notify potentially responsible agencies, including but not limited to emergency management and appropriate Emergency Support Functions (ESF), law enforcement and/or the fire department, of the arrangement between the Parties under this Agreement. C. The ASPCA's Field Investigations and Response Department (the "ASPCA Field Team"), working in conjunction with local authorities, leads large scale Disaster response operations and assists in large-scale Animal Cruelty case operations (each an "Operation") across the country; D. In the event of an Operation, an agency with appropriate authority over affected animals may give temporary custody and/or ownership rights (as applicable) of, or delegate authority over, such animals to the ASPCA; E. The ASPCA Field Investigations and Response Team often retains custody of a large number of animals during any particular Operation; F. The ASPCA Field Investigations and Response Team may require the services of volunteers and/or other resources from the Cooperating Party in the event of an Operation; G. The ASPCA and the Cooperating Party wish to create a mutually beneficial agreement outlining potential services that may be provided by each organization in the event of an Operation; and H. The ASPCA and the Cooperating Party wish to establish, in advance of any request for assistance, the terms and/or guidelines that will govern a working relationship between the Parties. V. METHODS OF COOPERATION In order that the resources of ASPCA and the Cooperating Party may be coordinated and best utilized when providing assistance under this Agreement, both Parties agree to the following principles: VI. A. Close communication shall be maintained between ASPCA and the Cooperating Party through the use of meetings, telephone conferences, email, and other means in the event of a potential or actual response. This communication will include requests for assistance, situation reports, and other response -related communications. Each Party will share current data regarding the incident/event, declarations and changes in personnel, policies, and legislation. Interaction and liaison shall be encouraged at all levels of both Parties' organizations. B. ASPCA and the Cooperating Party will distribute this Agreement internally and shall urge full cooperation. Without limiting the generality of the foregoing, Cooperating Party shall notify potentially responsible agencies, including but not limited to emergency management and appropriate Emergency Support Functions (ESF), law enforcement and/or the fire department, of the arrangement between the Parties under this Agreement. C. ASPCA and the Cooperating Party will keep each other updated as to the Authorized Representatives to contact for emergency assistance or response. D. In no event shall the Cooperating Party use the ASPCA name and/or logo for any reason without the express written agreement of the ASPCA, in advance. A. Requests for Assistance 1. Cooperating Party may directly contact the Authorized Representative of the ASPCA, and shall provide him/her with the following information when requesting assistance pursuant to this Agreement: a) A general description of the situation b) Identification of the emergency service function or functions for which assistance is needed (e.g., emergency medical, search and rescue, transportation, communications, planning and information assistance, resource support, temporary animal sheltering, assistance with investigations of alleged animal cruelty, and other services, etc.). c) The amount and type of personnel, equipment, materials, temporary housing, and/or supplies needed, and a reasonable estimate of the length of time that each will be needed. d) The need for sites, structures, or buildings to serve as relief centers or staging areas for incoming personnel, goods, equipment, and/or services. e) Contact name and number of a person for the responding team to meet. f) The means for the responding team to enter the affected area. g) The names of any other entities which have also been asked to assist. 2. The required information may be provided on the form attached to this Agreement as Exhibit `B," or by any other available means. Said request shall also include information detailing the nature of the original request from the authorities authorizing the response, as applicable. It is understood between the Parties that any response to an event will be based on the National Incident Management System model and fall under the umbrella of the established Emergency Operations Center for each incident. It is further understood between the Parties that any response to a large-scale animal seizure or other similar type of manmade emergency may be under the jurisdiction of federal, state or local law enforcement authorities that are not party to this Agreement. 3. A request for assistance must be in writing by fax, email, or other agreed- upon method. If applicable, the Cooperating Party shall only request the assistance of the ASPCA if the Cooperating Party has approval of the proper authorities that are necessary for the ASPCA to provide the assistance requested. All requests for assistance will be handled on a priority basis, and assistance may be refused if resources are limited, at the sole discretion of the ASPCA. B. Requests for Volunteers. In some instances, the ASPCA may request employees and/or volunteers of the Cooperating Party to assist in the on -scene and/or sheltering portion of an Operation. This request will be made by means of an email or phone call from the ASPCA to the Cooperating Party. The provision of volunteers by the Cooperating Party shall be subject to the following: 1. Team Leader. If a Cooperating Party provides employees and/or volunteers to assist the ASPCA in an Operation (collectively, the "Cooperating Party Volunteers"), the Cooperating Party must designate one individual as a Cooperating Party Volunteers' "Team Leader." The Team Leader will act as the primary contact for the Cooperating Party Volunteers on any given deployment and shall work with the ASPCA to ensure that the Cooperating Party Volunteers are performing the functions for which they are volunteering and that any of the Cooperating Party Volunteers' concerns are addressed to the best of the ASPCA's ability. For the avoidance of doubt, the Parties acknowledge and agree that the ASPCA shall manage any Cooperating Party Volunteers. A Team Leader must be either: a) A Cooperating Party employee; or b) A Cooperating Party volunteer who has significant experience successfully managing volunteers on behalf of the Cooperating Party. 2. Responder Responsibilities. The ASPCA shall use its best efforts to provide an advance description of the responsibilities that will be performed by volunteers with respect to any given Operation; however, the Cooperating Party understands and agrees that volunteers will generally perform activities in a high risk setting that are highly demanding both physically and mentally, and volunteers are often subjected to a significant level of physical and mental stress. For example, volunteers may be required to lift heavy items, and certain qualified volunteers may assist with technical rescue. Cooperating Party shall use its best efforts to provide the ASPCA only with suitable Cooperating Party Volunteers who will be able to endure such strenuous conditions, and Cooperating Party agrees that it shall be responsible for vetting any potential Cooperating Party Volunteers prior to deploying them on any Operation. Cooperating Party shall convey any special requests of potential volunteers to the extent that such information is available to the Cooperating Party. 3. Dismissal of Cooperating Party Volunteers. The ASPCA reserves the right to require any Cooperating Party Volunteers to leave any given Operation for any reason or for no reason. Such determinations shall be made in the sole and absolute discretion of the ASPCA. 4. ASPCA Release of Liability. The Cooperating Party will provide any potential Cooperating Party Volunteer with a copy of the Release of Liability provided by the ASPCA, the current version of which is attached hereto as Exhibit D, for such potential Cooperating Party Volunteer to sign prior to assisting with an Operation. The Cooperating Party shall provide the ASPCA with a signed Release of Liability prior to sending any Cooperating Party Volunteer to assist on any Operation. The Cooperating Party acknowledges and agrees that the ASPCA shall not allow any Cooperating Party Volunteer to assist with an Operation unless such Cooperating Party Volunteer has signed the Release of Liability provided by the ASPCA. In addition, the Cooperating Party shall ensure that, unless the Cooperating Party Volunteer is an employee of the Cooperating Party, the Cooperating Party Volunteer is approved as a volunteer of the Cooperating Party according to the Cooperating Party's customary procedures for retaining volunteers, including but not limited to requiring the Cooperating Party Volunteer to sign the Cooperating Party's volunteer agreement. 5. Insurance. Cooperating Party acknowledges and agrees that Cooperating Party Volunteers are not entitled to medical disability, life insurance coverage or any other compensation from the ASPCA and that Cooperating Party Volunteers are required to carry their own medical insurance (including, if applicable, veterinary professional malpractice insurance). 6. Relationship of Parties. Cooperating Party acknowledges and agrees that while any employee who is sent to an Operation as a Cooperating Party Volunteer shall be directed by the ASPCA with respect to his or her duties as a volunteer during an Operation, such Cooperating Party Volunteer shall remain an employee of the Cooperating Party and will in no way be considered an employee of the ASPCA. C. Written Acknowledgment: The ASPCA shall respond to a request for assistance by the quickest practical means. Requests will be considered based upon the resources available at the time the requests are received. Upon receiving such a request, ASPCA will determine whether, and the extent to which, to deploy available resources to the Cooperating Party in accordance with such requests. If additional resources are needed beyond what ASPCA can provide, ASPCA, in conjunction with the Cooperating Party, may coordinate the contact, activation, and deployment of its National Response Partner Network to secure additional resources, subject to the terms of this Agreement. The form attached as Exhibit "C" is provided as an example of the format to be used to insure the transmission of the necessary information. VII. COSTS OF ASSISTANCE: Each Party shall be responsible for all of its own costs associated with providing assistance unless previous agreed upon arrangements have been made. ASPCA and the Cooperating Party shall not be liable for any portion of any expenses incurred by the other unless it has been expressly agreed upon in writing, prior to the incurrence of the expense. VM. PERIOD OF ASSISTANCE: The period of assistance shall be the time (A) beginning with (1) the departure of any personnel and/or equipment of the ASPCA from any point for the purpose of traveling to Cooperating Party in order to provide assistance, or (2) the admission of the first animal into temporary housing facilities provided pursuant to this Agreement; and (B) ending upon (1) the return of all personnel and equipment of the ASPCA, after providing the assistance requested, to their residence or regular place of work, whichever occurs first, or (2) the departure of the last animal that was admitted into temporary housing facilities pursuant to this Agreement. IX. RELATIONSHIP; SUPERVISION AND CONTROL, Nothing in this Agreement shall be so construed as to create a relationship of employer and employee, or principal and agent, partnership or joint venture as between ASPCA and the Cooperating Party. Nothing in this Agreement shall be so construed as to provide either Party with the authority to bind the other to any agreement, undertaking, cost, liability or expense of any nature without the express written consent of the other. Each of the ASPCA and the Cooperating Party shall be separately responsible for the operation and maintenance of its own personnel, equipment, and resources, and each Party's personnel, equipment, and resources shall generally remain under the operational control of such Party. ASPCA shall maintain daily personnel time records, material records, a log of equipment hours, and daily activity reports to be provided upon request. The ASPCA reserves the right under this Agreement to withdraw its resources at any time, subject to reasonable notice to the other Party. Cooperating Party shall provide the ASPCA with at least seventy-two hour advance notification of Cooperating Party's intent to disallow animals to have continued access to temporary housing and at least twenty-four hour advance notification of Cooperating Party's intent to withdraw any other resources or personnel that has been provided to assist the ASPCA unless such notice is not practicable; in which case, such notice as is reasonable shall be provided. Equipment purchased in connection with responding to a Disaster or Animal Cruelty event pursuant to this Agreement will remain the property of the purchasing Party, unless otherwise agreed in writing. X. FOOD: HOUSING: SELF-SUFFICIENCY: ASPCA personnel and equipment will be, to the greatest extent possible, self-sufficient for operations in areas stricken by Disasters or emergencies, including Animal Cruelty events. XI, PUBLICITY: During a joint effort, reasonable efforts to promote the identity of both Parties shall be clearly communicated through all available means. ASPCA and the Cooperating Party shall make every effort to keep the public informed of their cooperative efforts. Whenever possible, onsite signage, press releases, interviews and other communications efforts shall indicate the involvement of both ASPCA and the Cooperating Party. When possible, advance notice and review of releases/reports shall be given by each Party to the other. The Parties agree to share photography, videography and other materials that can be used for publicity purposes with the understanding that the Party responsible for procuring said materials is credited as the source; provided, however, that in the case of animal cruelty, the appropriate jurisdictional authority shall have the final approval on any press releases or photographs released in relation to such animal cruelty. The Parties acknowledge and agree that any such photographs, videos, and/or other materials may be used for any lawful purpose, including fundraising purposes. If applicable, Cooperating Party must also secure any and all necessary permission from federal, state, or local law enforcement, if necessary, for use of the materials and shall provide confirmation of such permission to the ASPCA. Without such permission, neither Party may use any materials for publicity purposes that were gathered at any actual or potential crime scene. If applicable, results arising from joint studies between ASPCA and the Cooperating Party shall be jointly owned and both Parties shall retain ownership and access without inhibition. XII. FUNDRAISING: Cooperating Party recognizes the ASPCA's dependence on voluntary public financial support to carry out Disaster and Animal Cruelty relief efforts. The ASPCA shall be free to make special appeals to the public and to its members, if any, for funding. XIII. NON-EXCLUSIVE AGREEMENT: This Agreement is non-exclusive; ASPCA and the Cooperating Party reserve the right to form similar agreements with other parties. If more than one party is assisting, it is strongly encouraged that Cooperating Party seek an agreement with both assisting parties that requires all parties share information in a way similar to what is outlined under the above "Methods of Cooperation," section V. XIV. INSURANCE: Each party shall carry its own insurance covering its individual organization and field operations. XV. ASPCA MISSION: In the course of responding to a Disaster or Animal Cruelty event, Cooperating Party shall strive to support the ASPCA's mission of providing effective means for the prevention of cruelty to animals throughout the United States and conduct its operations accordingly. XVI. CONFIDENTIALITY: ASPCA and Cooperating Party agree to keep, and to ensure that their respective employees, agents, representatives, and volunteers keep, confidential all materials and information that are provided by ASPCA or the Cooperating Party (as the "Disclosing Party") in connection with its performance under this Agreement and that are not made available to the general public, including without limitation, financial information, and information and materials about either Party's or its affiliates' operations, campaigns, and/or strategic or tactical plans (collectively the "Confidential Information"). Neither ASPCA nor the Cooperating Party shall, and each shall ensure that its employees, agents, representatives, and volunteers shall not, use, disclose, or publish any Confidential Information without proper written approval of the Disclosing Party either during or subsequent to the term of this Agreement except that ASPCA's and the Cooperating Party' employees, agents, representatives, and volunteers may use the information during the term of this Agreement to the extent (and only to the extent) necessary to perform services pursuant to this Agreement. All Confidential Information shall at all times be and remain the exclusive property of the Disclosing Party. Notwithstanding any other provision herein to the contrary, ASPCA and Cooperating Party acknowledge and agree that Cooperating Party must comply with the public records requirements of Chapter 22 of the Iowa Code. XVII. LIABILITY, DEFENSE AND INDEMNITY A. Claims Arising From Sole Acts or Omissions of Cooperating Party: The Cooperating Party hereby agrees to defend and indemnify the ASPCA and its officers, agents, employees, volunteers from any claim, action or proceeding against ASPCA, arising solely out of the acts or omissions of the Cooperating Party in the performance of this Agreement. At its sole discretion, ASPCA may participate at its own expense in the defense of any claim, action or proceeding, but such participation shall not relieve the Cooperating Party of any obligation imposed by this Agreement. ASPCA shall notify the Cooperating Party promptly of any claim, action or proceeding and cooperate fully in the defense. B. Claims Arising From Sole Acts or Omissions of ASPCA: The ASPCA hereby agrees to defend and indemnify the Cooperating Party, its agents, officers and employees from any claim, action or proceeding against Cooperating Party, arising solely out of the acts or omissions of ASPCA in the performance of this Agreement. At its sole discretion, Cooperating Party may participate at its own expense in the defense of any such claim, action or proceeding, but such participation shall not relieve ASPCA of any obligation imposed by this Agreement. Cooperating Party shall notify ASPCA promptly of any claim, action or proceeding and cooperate fully in the defense. C. Claims Arising From Concurrent Acts or Omissions: Cooperating Party hereby agrees to defend itself, and ASPCA hereby agrees to defend itself, from any claim, action or proceeding arising out of the concurrent acts or omissions of Cooperating Party and ASPCA. In such cases, Cooperating Party and ASPCA agree to retain their own legal counsel, bear their own defense costs, and waive their right to seek reimbursement of such costs, except as provided in paragraph XVII(E) below. D. Joint Defense: Notwithstanding paragraph XVII (C) above, in cases where Cooperating Party and ASPCA agree in writing to a joint defense, Cooperating Party and ASPCA may appoint joint defense counsel to defend the claim, action or proceeding arising out of the concurrent acts or omissions of ASPCA and Cooperating Party. Joint defense counsel shall be selected by mutual agreement of Cooperating Party and ASPCA. Cooperating Party and ASPCA agree to share the costs of such joint defense and any agreed settlement in equal amounts, except as provided in paragraph XVII(E) below or as otherwise provided in such written joint defense agreement. Cooperating Party and ASPCA further agree that neither party may bind the other to a settlement agreement without the written consent of both Cooperating Party and ASPCA. E. Reimbursement and/or Reallocation: Where a trial verdict or arbitration award allocates or determines the comparative fault of the parties, Cooperating Party and ASPCA may seek reimbursement and/or reallocation of defense costs, settlement payments, judgments and awards, consistent with such comparative fault. F. Limitation of Liability. Neither Party shall be liable to the other party for any incidental, consequential, indirect, special or punitive damages arising in connection with this Agreement or its termination or the breach of any obligation arising hereunder, whether for breach of contract, tort, negligence or other form of action. XVIII. ENTIRE AGREEMENT: AMENDMENT: COUNTERPARTS: This Agreement constitutes and contains the entire agreement between the Parties with respect to the subject matter herein, supersedes all prior written or oral understandings and agreements relating thereto, and may not be changed, modified, amended or supplemented, except by written consent of both Parties. This Agreement may be executed in counterparts, each of which shall be deemed an original, and which collectively will be deemed one document. XIX. PERIODIC REVIEW: ASPCA and the Cooperating Party shall, on an annual basis, on or around the anniversary date of this Agreement, jointly evaluate progress in the implementation of this Agreement and revise and develop new plans or goals as appropriate. XX. TERM, TERMINATION: This Agreement shall be effective as of the Effective Date and shall automatically renew at the end of each term but may be terminated by fifteen (15) days' written notification from either Party at any time. (Signature page follows.) Approved by: ASPCA 6/22/2017 Tim Rickey Date Vice President, Field Investigations and Response American Society for the Prevention of Cruelty to Animals 424 East 92"" Street New York, NY 10128 Cooperating Party: Johnson County Emergency Management & City of Iowa City Dave Wilson Emergency Management Coordinator 4529 Melrose Avenue Iowa City, IA 52249 Geoff Fruin City Manager 410 E. Washington Sl. Iowa City, IA 52240 Date Date Approved BY !� City Attorney's Office EXHIBIT A—AUTHORIZED REPRESENTATIVES ORGANIZATION NAME: THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS 424 East 92"d Street New York, NY 10128 Authorized Representatives to Contact for Emergency Assistance Primary Representative Name: Dick Green Title: Sr. Director, Disaster Response Address: 424 East 92"d Street, New York, NY 10128 Day Phone: 917-675-0653 Night Phone: Same First Alternate Representative Name: Title: Vice President, Field Investigations and Response 24-hour Telephone Number: 646-599-2742 Address: PO Box 131 St. Clair Mo 63077 Day Phone: 646-599-2742 Night Phone: Second Alternate Representative Name: Lacie Davis Title: Manager, Disaster Response Address: 424 East 92"d Street, New York, NY 10128 Day Phone: 646-942-8939 Night Phone: Same EXHIBIT A (cont.) -Johnson County Emergency Management & Iowa City Animal Care: Authorized Representatives to Contact for Emergency Assistance Primary Representative Name: Dave Wilson Title: Emereency Manaeement Coordinator 24-hour Telephone Number: 319-356-6700 Address:4529 Melrose Avenue, Iowa City, IA 52249 Day Phone: 319-356-6761 Night Phone: 319-432-9949 Fax: 319-338-0028 Primary Representative Name: Liz Ford Title: Animal Services Supervisor Address: 3910 Napoleon Avenue, Iowa City, IA 52240 Day Phone: 319-356-5295 X 7 Night Phone: 319-331-7197 First Alternate Representative -Johnson County Name: DAv;F G 41I4 G, -,, Title: h1ra4c -.1 Dtin nom, 40,k; -4j4 Address: y�,2g M�L2pSt jFvr�� 3i9 3s6 676/ �i 99y4 Day Phone: Night Phone: 3/ �$�` 6 Pager: 3/�! %�2 'Fax: 219 -3T" DpAf First Alternate Representative - Iowa City Name: Bill Campbell Title: Caotain. Administrative Services. Iowa Citv Police Department Address: 410 East Washineton Street, Iowa City, IA 52240 Day Phone: 319-356-5286 Night Phone: 319-530-9391 Pager: Fax: 319-356-5449 EXHIBIT B REQUIRED INFORMATION Each request for assistance shall be accompanied by the following information, to the extent known: 1. General description of the damage sustained or threatened: 2. Identification of the emergency service function or functions for which assistance is needed (e.g. emergency medical, search and rescue, transportation, communications, planning and information assistance, resource support, assistance with investigations of alleged animal cruelty, and other services, etc.), and the particular type of assistance needed: 3. Identification of the type of assistance needed: 4. Amount and type of personnel, equipment, materials, and supplies needed and a reasonable estimate of the length of time that each will be needed: 5. Need for sites, structures or buildings to serve as relief centers or staging areas for incoming personnel, goods, equipment, and services: 6. Estimated time and a specific place for a representative of Cooperating Party to meet the personnel and equipment of the ASPCA: 7. List the names of other organizations which you have also asked to help or with which you have an existing MAA or MOU: 8. Please list what services you, or another organization, are willing to provide: EXHIBIT C ACKNOWLEDGMENT To be completed by the ASPCA. AUTHORIZED REPRESENT CONTACT NUMBER/PROCEDURES: 1. Assistance to be provided: Resource Type Amount Est. Arrival DatePrime 2. Availability of Additional Resources: 3. Time Limitations on Resources Provided, if any: EXHIBIT D RELEASE OF LIABILITY On this _ day of , 20_, I hereby acknowledge that I am a volunteer/employee of (Organimtion Name) (the "Organization"), and while 1 am not a volunteer of the American Society for the Prevention of Cruelty to Animals ("ASPCA"), I have voluntarily applied to assist the ASPCA (without compensation) in a disaster and/or cruelty response situation to which the ASPCA is responding. I AM AWARE THAT WORKING IN A DISASTER AND/OR CRUELTY RESPONSE SITUATION MAY BE HAZARDOUS, AND I AM VOLUNTARILY PARTICIPATING IN THIS ACTIVITY WITH FULL KNOWLEDGE OF THE NATURE AND DANGER INVOLVED AND HEREBY AGREE TO ACCEPT ANY AND ALL RISKS OF INJURY OR DEATH. I FARTHER ACKNOWLEDGE AND AGREE THAT I MAY NOT ASSIST WITH A DISASTER OR CRUELTY RESPONSE OPERATION UNLESS I HAVE MEDICAL INSURANCE. I recognize that I am not entitled to medical disability, life insurance coverage or any other compensation from the ASPCA and that I am required to carry my own medical insurance (and, if applicable, veterinary professional malpractice insurance). I acknowledge and agree that if I do not have nQi voluntecr for any operation managed by the ASPCA. I understand ilial although I registered as a volunteer/employee for the Organization and am not an ASPCA volunteer, this operation is managed by the ASPCA and I may at any time with or without cause be removed from my volunteer position at the sole discretion of the ASPCA. In addition, I understand and agree that the ASPCA will not directly reimburse me for any expenses incurred in connection with my volunteer position. As lawful consideration for assisting in a disaster and/or cruelty response situation, I hereby agree that I, my heirs, distributees, guardians, legal representatives, and assigns will! (a) keep confidential the location, and details of the disaster and/or cruelty response; (b) not make a claim against, sue, attach the property of, or prosecute the ASPCA for injury or damage resulting from the ASPCA or its affiliates, as a result of my voluntary assistance in a disaster and/or cruelty response situation; and (c) release, indemnify, defend, and hold harmless the ASPCA from all actions, claims, or demands I, my heirs, distributes, guardians, legal representatives, or assigns may have for injury or damage resulting from my assistance in a disaster and/or cruelty response situation. I agree that while I am voluntarily assisting at an ASPCA-managed operation, the ASPCA may take photographs or video in which 1 may appear, or permit others to take photographs or video in which I may appear, and that the ASPCA may use or authorize the use of the photographs or video in which I appear in any way it deems appropriate to support its mission, including fundraising purposes. I HEREBY WARRANT THAT I (A) HAVE THE RIGHT TO ENTER INTO THIS AGREEMENT, (B) AM OVER EIGHTEEN (18) YEARS OF AGE, (C) HAVE CAREFULLY READ THIS AGREEMENT AND FULLY UNDERSTAND ITS CONTENT, (D) AM AWARE THAT THIS IS A RELEASE OF LIABILITY AND A CONTRACT BETWEEN ME AND THE ASPCA, AND (E) SIGN THIS OF MY OWN FREE WILL. THIRD -PARTY VOLUNTEER ASPCA PRINTED NAME SIGNATURE PRINTED NAME SIGNATURE r CITY OF IOWA CIT -r� COUNCIL ACTION REPO 4d(7) November 21, 2017 Resolution authorizing the City Manager to sign a Mutual Aid Agreement Between the American Society for the Prevention of Cruelty to Animals (ASPCA) and Johnson County Emergency Management and the City of Iowa City Prepared By: Liz Ford, Animal Services Supervisor Reviewed By: Captain Bill Campbell, Commander of Support Services Jody Matherly, Police Chief Simon Andrew, Assistant to the City Manager Fiscal Impact: No impact Recommendations: Staff: Approval Commission: N/A Attachments: ASPCA Mutual Aid Agreement Executive Summary: The objective of this agreement is to facilitate the coordination of disaster response efforts in the event of a major disaster involving animals beyond the scope of which local resources could effectively manage. Background / Analysis: In 2008 the flooded Iowa River forced the City of Iowa City's Animal Services division out of their home on Kirkwood Avenue and into a long term temporary facility. Animal Services staff and volunteers rallied, the community poured in support and after 7 years they moved into a new facility. The coordinated response to the flood and the next several years in temporary housing was a lesson in emergency response and disaster preparedness for those involved. Since the flood, Animal Services has renewed their efforts in education and community preparation through the following: 1. Building a network of resources and responders by developing cooperative relationships with other possible emergency/disaster response organizations. 2. Forming the volunteer Animal Response Team (ART) in 2017 3. Coordinating pet emergency preparedness and disaster response trainings for volunteers, partner organizations, and community members. 4. Attending tabling events to educate the public at large on the importance of emergency preparedness for their own family pets. The City of Iowa City and Johnson County are at risk for several types of disasters including: tornado, flood, transportation accident/spill (transporting animals or hazardous materials), animal disease epidemic, animal hoarding incident. Smaller scale incidents of this type or others may be handled by Animal Services, partner organizations, and ART volunteers. r CITY OF IOWA CITY �-^7� COUNCIL ACTION REPORT The ASPCA is a national organization that deploys a Field Investigations and Response (FIR) team when requests come in from local authorities to assist in large scale animal disasters and cruelty cases. They help with rescuing animals and transporting them to safety, setting up temporary facilities to shelter and treat the animals, and either reuniting them with owners or placing them with local shelters once they're ready for adoption. Staff recommends entering into this agreement with the ASPCA. When an animal related disaster occurs that is beyond our response capability, this agreement will bring help minimize suffering and the loss of life for both humans and animals and help our community quickly recover. Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. 17-346 Resolution authorizing the Mayor to sign a Resource Enhancement and Protection (REAP) grant agreement for Hickory Hill Park. Whereas, the Iowa Dept. of Natural Resources administers Resource Enhancement and Protection (REAP) grants for acquisition and/or development/enhancement of land for outdoor recreation; Whereas, the City has been awarded a $200,000 REAP grant for the following activities as part of the 2017-18 Hickory Hill Trail, Bridge and Signage project and in concert with the 2016 Hickory Hill Park Master Plan: clearing of invasive species, removal of select diseased trees, and pruning of the tree canopy in select areas, and stream bank stabilization and restoration of prairie areas; and Whereas, there is no local match. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The Mayor is authorized to sign the REAP grant agreement for Hickory Hill Park. 2. The City Manager is authorized to sign amendments to the grant agreement as needed. Passed and approved this 21st day of November, 2017. M or Attest:-2� City Clerk City Attorney's Office 44(1) Resolution No. 17-346 Page 2 It was moved by Mims and seconded by Botchway the Resolution be adopted, and upon roll call there were: AYES: NAYS x x x x x x x ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton 'r CITY OF IOWA CIT Ari COUNCIL ACTION REPO 4d(8) November 13, 2017 Resolution authorizing the Mayor to sign a Resource Enhancement and Protection (REAP) grant agreement for Hickory Hill Park Prepared By: Juli Seydell Johnson, Director of Parks & Recreation Reviewed By: Sue Dulek, Assistant City Attorney Geoff Fruin, City Manager Fiscal Impact: The restoration work anticipated with this grant is estimated at $200,000 which is the amount of the grant. There is no City match required. Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: The Resource Enhancement and Protection (REAP) grant program through the Iowa Department of Natural Resources provides State assistance for the purpose of acquisition and/or developmentlenhancement of land for outdoor recreation. The grant does not require a match from the City. The City was awarded a $200,000 grant for this project through a competitive process. Background / Analysis: The environmental enhancement activities for Hickory Hill Park applied for with this grant include clearing of invasive species, removal of select diseased trees, pruning of the tree canopy in select areas, stream bank stabilization, and restoration of prairie areas. These areas were identified and restoration activities proscribed as part of the Natural Areas Plan. The restoration efforts support the work planned as part of the 2017-18 Hickory Hill Trail, Bridge and Signage project and are in concert with the 2016 Hickory Hill Park Master Plan. aAc Prepared by: Eric R. Goers, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 Resolution Number: 17-348 Resolution authorizing the Mayor to sign and City Clerk to attest a Data Driven Justice Agreement with the Arnold Foundation. Whereas, the Laura and John Arnold Foundation ("Foundation") has approached the City for assistance with a pilot project in Iowa City related to the Data Driven Justice Project ("DDJ"); and Whereas, the goal of the DDJ project is to integrate data from various stakeholders in an effort to better address the needs of high utilizers of medical, public safety, homelessness, substance abuse, and correctional services; and Whereas, the Foundation has proposed funding (including all fringe benefits and related expenses) the position of one police officer, David Schwindt, for a period of two years, in order to advance the aims of the project, followed by sharing best practices and lessons learned from the implementation with regional and national audiences, with the overall goal of increasing the use of data in the criminal justice system; and Whereas, Officer Schwindt will remain employed as an Iowa City police officer throughout the agreement duration, and will be supervised by ICPD command staff, but will be spending 100% of his time on the implementation of the DDJ project; and Whereas, it is in the best interests of the City to approve this Agreement. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The attached Data Driven Justice Project Letter Agreement is approved. 2. The Mayor and the City Clerk are authorized and directed to respectively execute and attest the Agreement attached hereto in duplicate. Passed and approved this 91st day of November , 20 17 Mayor // Appr ved by Attest,--/ City Clerk ii City Attorney's Office Resolution No. 17_348 Page 2 It was moved by Mims adopted, and upon roll call there were: Nays: and seconded by Botchway Absent: Botchway Cole Dickens Mims Taylor Thomas Throgmorton the Resolution be lJ i� k o,m and john &,,u11 foundx Cf9r' November 27, 2017 Geoff Fruin City Manager, Iowa City 410 East Washington Street Iowa City, Iowa 52240 Dear Mr. Fruin: 1t is my pleasure to inform you that the Board of Directors of the Laura and John Arnold Foundation (the "Foundation") has authorized a grant to Iowa City ("Grantee") in the amount of up to $350,506.00 (three hundred fifty thousand five hundred six dollars) (the "Grant"), payable in installments as set forth below, subject to Grantee's acceptance of, compliance with or the malting of, as the case may be, the terms, conditions, agreements, warranties, representations, and other provisions set forth in this agreement (this "Agreement"). The Grant shall be used for the purpose of supporting implementation of the Data -Driven Justice (" DD.P') project in Iowa City, Iowa, and sharing best practices and lessons learned from the implementation with regional and national audiences, with the overall goal of increasing the use of data in the criminal justice system (collectively, the "Purpose"). Grantee and the Foundation acknowledge, agree, and consent to the following terns, conditions, agreements, warranties, representations, and other provisions, which either relate to or are attached to the Grant: Charitable Purpose. Grantee agrees that the Grant will only be used for charitable, educational, and/or scientific purposes as such purposes are generally defined by those authorities interpreting the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986 (as amended, including any corresponding provisions of predecessor or successor federal tax laws, "Code"), and will not be used to carry on propaganda, influence legislation, fund any political campaign, influence the outcome of any election, carry on any voter registration drives, or violate any applicable local, state, federal, or foreign law. Grantee agrees that the Grant (and all income or gains earned thereon) shall be used solely for the Purpose, unless approved otherwise by prior written consent of the Foundation. 2. Terni. The term of this Agreement will commence on the date Grantee executes this Agreement as set forth on the signature page hereto (the "Effective Date") and will expire on March 31, 2020, unless terminated earlier as provided herein (the "Term"). M7 WEST LOOP SOUTH, SUITE 1800 • HOUSTON, TEXAS 77027 3. Payment of Grant Funds. Until the earliest of such time as the Grant has been paid in full, the end of the Term, or the termination of this Agreement pursuant to Section 7 of this Agreement, and provided Grantee is in full compliance with the terms of this Agreement, the Foundation shall pay Grantee the Grant in three (3) installment payments as follows (each an "Installment Payment' and collectively, the "Installment Payments"): (a) the first Installment Payment of $173,100.00 (one hundred seventy-three thousand one hundred dollars), within thirty (30) business days of the execution and delivery of a signed copy to the Foundation of this Agreement by Grantee; (b) the second Installment Payment of up to $131,070.00 (one hundred thirty-one thousand seventy dollars) on or by February 28, 2019; and (c) the third and final Installment Payment of up to $46,336.00 (forty-six thousand three hundred thirty-six dollars) on or by February 28, 2020. All Installment Payments pursuant to this Agreement will be contingent on Grantee's full compliance with the budget and milestones set forth in Exhibits A and B, attached hereto and incorporated herein (the "Budget and Milestones"), in a manner sad sfactory to the Foundation. The Foundation shall not be obligated to make any Installment Payment if the Foundation determines in its sole discretion that Grantee is not in full compliance with the terms of this Agreement, including the Budget and Milestones. If the Foundation does not make an Installment Payment because Grantee is not in fill compliance with the terns of this Agreement, including, but not limited to, full compliance with the Budget and Milestones, the Foundation shall not later be obligated to make such Installment Payment, even if Grantee subsequently cures such breach or becomes fully compliant with the Agreement, including, but not limited to, the Budget and Milestones. 4. Representations and Warranties. Grantee makes the following representations and warranties: a. Grantee is a governmental unit duly formed, validly existing, and in good standing in the State of Iowa with all governmental power, authority, and permits necessary to carry on its activities, including the Purpose of the Grant. b. Grantee is currently, and at all times during the Term will be, a Qualifying Grantee. For purposes of this Agreement, a "Qualifying Grantee" is an organization which at all times meets the following criteria: (i) it is a charitable organization described in Code Section 501(c)(3), a governmental unit defined in Code Section 170(c)(1), or an integral part of or an instrumentality of a governmental unit defined in Code Section 170(c)(1), (ii) it is not a "private foundation" within the meaning of Code Section 509(a), (iii) it is not a Type III Supporting Organization within the meaning of Code Section 509(a)(3), and (iv) it is an organization pursuant to which the acceptance of the provisions of this Agreement or of the Grant will not adversely affect Grantee's status under subsections (i) — (iii) above. Grantee is not aware of any threat or challenge to its status as a Qualifying Grantee. Furthermore, if Grantee is a publicly ►a supported charity within the meaning of Code Section 170(b)(1)(A)(iv) or (vi) or Section 509(a)(2), Grantee represents that the Grant will not cause Grantee to lose its status as a publicly supported charity. c. The Purpose of the Grant is charitable, educational, and/or scientific as such purposes are generally defined by those authorities interpreting the provisions of Code Section 501(c)(3), and the Grant will only be used for such charitable, educational, and/or scientific purposes and will not be used to carry on propaganda, influence legislation, fund any political campaign, influence the outcome of any election, carry on any voter registration drives, or violate any applicable local, state, federal, or foreign law. d. The parties acknowledge that the Foundation will not direct or control Grantee's interactions with any government officials or employees. Grantee agrees that it will advise the Foundation if it or any of its agents engage in activity that could give rise to any disclosure of the Grant or the Foundation under federal, state, or local lobbying disclosure rules and/or campaign finance laws. e. Grantee complies with and will continue to comply with all applicable local, state, federal, and foreign laws, statutes, rules, and regulations, as amended from time to time. f. All information relating to the Grant heretofore provided to the Foundation by Grantee or to be provided to the Foundation by Grantee during the Term has been, and for the duration of the Tem (and for so long as any obligations pursuant to Sections 5 and 6 of this Agreement remain outstanding) will at all times continue to be true, accurate and complete in all material respects. 5. Records. Grantee will maintain accurate and complete records of receipts and expenditures made from Grant funds and will keep these records during the period covered by Grantee's reporting obligations specified in Section 6 of this Agreement and for at least three (3) years thereafter. During the Term, and for three (3) years thereafter, upon the request of the Foundation, Grantee shall make such records available for inspection by the Foundation and its representatives during normal business hours, and Grantee shall cooperate and assist the Foundation with the Foundation's review of such records. 6. Reporting and Information. a. Grantee will immediately provide the Foundation with (i) a copy of Grantee's current, valid determination letter from the Internal Revenue Service recognizing Grantee's status as a Qualifying Grantee, and (ii) copies of Grantee's financial statements with respect to Grantee's fiscal years ending on June 30, 2018, June 30, 2019, and Joie 30, 2020, as such documents become available. 3 b. Grantee will promptly provide the Foundation with: (i) an interim report on January 31, 2019, and (ii) a final report on .iannary 31, 2020 (each a "Grant Report" and collectively, the "Grant Reporls" ). Each Grant Report will include a full, detailed accounting of expenditures of Grant funds, including a confirmation that the funds have been spent exclusively toward the Purpose in accordance with the Budget, as well as a narrative of what was accomplished by the use of such funds during the reporting period (including a description of progress made in fulfilling the Purpose of the Grant, and a confirmation of Grantee's compliance with the terms of this Agreement). Grantee shall also inform the Foundation of any material change in its operating budget and expenses, including, but not limited to, material variations in executive compensation. Grantee also agrees to provide the Foundation with a copy of all materials developed or published using the Grant. Moreover, the Grant Reports shall include any other information requested by the Foundation reasonably in advance of the due date of the relevant Grant Report. C. If the Grant funds are not fuiiy expended by Grantee in accordance with the Budget as set forth in Exhibit A, Grantee will disclose this in the Grant Reports, and the Foundation will make a determination about such funds upon receipt of such information, including whether Grantee shall be required to return unspent funds to the Foundation. Grantee may not reallocate any unspent funds and may not spend or retain unspent funds after the Budget end date without prior written approval from the Foundation. d. Grantee will (i) immediately furnish the Foundation with any information concerning a threatened, proposed, or actual change in Grantee's status as a Qualifying Grantee, and (ii) provide the Foundation prompt written notice (1) if any of the events in Section 7 of this Agreement occurs, and (2) of each and every event which, at the giving of notice or lapse of time, could reasonably be expected to constitute an event described in Section 7 of this Agreement. 7. Termination. This Agreement may be terminated by the Foundation if any of the following has occurred, it being understood and agreed that the determination of whether any such condition or event has occurred will be made by the Foundation in its sole discretion: a. Any of the warranties or representations made by Grantee in this Agreement is or becomes untrue in any respect; b. There is a material change in the purpose, character or method of operation of Grantee, a material change in the leadership of Grantee, or a material change in Grantee's staff responsible for carrying out the Purpose of the Agreement 4 c. Grantee uses any portion of the Grant for any purpose other than the Purpose without the prior written consent of the Foundation; d. The Internal Revenue Service makes a determination, preliminary or otherwise, that the Grant does not constitute a qualifying distribution by the Foundation within the meaning of Code Section 4942(g)(1)(A) or (B); e. Grantee has materially misrepresented to the Foundation its activities or financial condition; f Grantee fails to comply with any of the provisions of this Agreement including, but not limited to, the Budget and Milestones in Exhibits A and B, respectively; or g. The Grant or its Purpose does not contribute to the accomplishment of the Grantee's charitable mission as originally anticipated. The effective date of the Foundation's termination of this Agreement (the "Termination Effective Date") shall be the earlier of (a) the date notice is given by the Foundation to Grantee of the termination, and (b) if so elected by the Foundation, the date on which the event triggering the right of termination occurred. The delay in, or failure of, the Foundation to exercise its right to terminate at any time shall not be a waiver of such right, either with respect to the cause giving rise thereto or any other cause for termination, and the payment by the Foundation of any portion of the Grant after notice of an event giving rise to a right to terminate shall not be a waiver of the right to terminate or any rights of the Foundation upon termination, and in no event will such delay, failure or payment give rise to any argument for novation, ratification, estoppel, laches, or any other equitable or legal defense if the Foundation later elects to exercise its right of termination. 8. Payment Obligation; Return of Funds. In the event that the Foundation terminates this Agreement pursuant to the terms hereunder: a. Any remaining payment obligation of the Foundation to Grantee, whether under this Grant or otherwise, shall be null and void as of the Termination Effective Date; b. If the Foundation terminates this Agreement pursuant to any provision hereunder other than Section 7(a) or 7(e) of this Agreement, Grantee shall promptly return to the Foundation any amounts of the Grant previously paid to Grantee which have not yet been expended as of the Termination Effective Date or which were not used for the Purpose; and c. If the Foundation terminates this Agreement pursuant to either Section 7(a) or 7(e) of this Agreement, Grantee shall promptly return to the Foundation an amount equal to the amount of the Grant previously paid to Grantee. Indemnity; Liability. Grantee shall indemnify, defend and hold harmless the Foundation, its officers, directors, founders, employees and agents and each of their affiliates (collectively, the "Foundation Parties"), from and against, any liability, damage, loss or expense (including reasonable attorneys' fees and expenses of litigation) incurred or imposed upon the Foundation Parties in connection with any claims, suits, actions, demands or judgments, arising out of or related to (a) any act or omission of Grantee, its employees or agents in applying for or accepting the Grant; (b) the expending of Grant funds furnished pursuant to this Agreement; or (c) the carrying out of any programs or projects funded by the Grant. The Foundation shall not be liable for any losses, damages, claims or other liabilities arising out of Grantee's activities. It is expressly understood that the Foundation, by making the Grant and entering into this Agreement, has no obligation to provide other or additional support to Grantee. IQ. Grant Publicity. Grantee may release information regarding the Grant (i.e., information mentioning this Agreement, the Foundation, and/or the Grant) provided that at the time of such release Grantee (i) is in compliance with the provisions of this Agreement; (ii) has received prior written approval from the Foundation's Vice President of Communications; and (iii) agrees to furnish the Foundation with copies of any such news releases or other written materials within a reasonable time after such release. Grantee will advise the Foundation immediately if there is any unauthorized release of information. Without further notice to or consent from Grantee, the Foundation may include information about this Agreement and/or Grant, and any photographs, reports, or other published or printed materials provided by Grantee to the Foundation in the Foundation's published reports, website, news releases, and other external communications related to the Foundation. Notwithstanding the foregoing, however, Grantee may release any information about the Agreement and/or Grant that is required to be disclosed under any applicable laws or regulations. Moreover, the parties recognize that this Section does not affect Grantee's rights to publish any materials or research funded with this Grant or to release public statements or release information about activities or research funded with this Grant to the extent such materials, research, statements, or information do not mention the Grant, this Agreement, and/or the Foundation. 11. Gifts, The Foundation desires that all of Grantee's resources be dedicated to accomplishing its philanthropic and charitable purposes. Therefore, Grantee agrees that it will not furnish the Foundation or Foundation Parties with any membership, commemorative items, recognition plaques, or gratuities or benefits of any kind. 12. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Texas, and shall be performable and enforceable in Harris County, Texas. The sole and exclusive jurisdiction for any dispute arising under or related to this Agreement shall be in the state district courts of Harris County, Texas, and Grantee irrevocably submits in advance to personal jurisdiction in the state district courts of Harris County, Texas. 13. Entire Agreement. This Agreement supersedes any prior oral or written understanding or communications between the parties and constitutes the entire agreement of the parties with respect to the subject matter hereto. This Agreement may not be amended or modified, nor any of its provisions waived, except in a written document signed by an authorized representative of Grantee and the Foundation. 14. Waiver. Any waiver of any kind by either party of a breach of this Agreement shall not operate or be construed as a waiver of such breach or any subsequent breach. Either party's delay or omission in exercising any right, power, or remedy pursuant to a breach or default by the other party shall not impair any right, power, or remedy which that party may have. ] 5. Severability. If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegai, unenforceable, or void, this Agreement shall continue in full force and effect without such provision. 16. Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective permitted successors, assigns, heirs and legatees; provided, however, Grantee cannot assign, or otherwise transfer, its rights or delegate any of its obligations, without the prior written consent of the Foundation, which consent the Foundation may withhold, condition or delay in its sole discretion. 17. No Third Party Rights. Except as set forth in Section 9 of this Agreement, it is the explicit intention of the parties that no person or entity other than the parties is or shall be entitled to bring any action to enforce any provision of this Agreement and that the covenants and agreements set forth herein shall be solely for the benefit of and enforceable only by the parties or their respective successors and assigns as permitted hereunder. 18. Remedies. The rights and remedies provided in this Agreement are cumulative in nature and shall be in addition to any such other rights and remedies available at law or in equity. 19. Independent Parties. This Agreement shall not be deemed to create any relationship of agency, partnership, or joint venture between the parties hereto. Grantee acknowledges and agrees that it will conduct all activities funded by the Grant in its own name and that Grantee's employees and agents are not, and will not hold themselves out to be, agents or representatives of the Foundation for any purpose. 20. Survival. The provisions of Sections 5, 6, 8, and 9 shall survive any expiration or termination of this Agreement, and each party shall remain obligated under any other provisions that expressly or by their nature survive any expiration or termination of it,. Agreement. 21. Muitipie Counterparts. This Agreement may be signed in multiple counterparts, which may be signed by the parties separately, but together shall constitute a single agreement. 22. Contact Information. For information regarding the Grant, please contact: Laura and John Arnold Foundation c/o Raquel Segundo, Grants Manager 3 Columbus Circle, Suite 1601 New York, NY 100'9 Phone: (212) 430-3632 E-mail; rsegundo@amoldi'oundation.org Acknowledgment of Grantee's agreement to the representations, warranties, terns, and conditions set forth in this Agreement must be made by a duly authorized officer of Grantee who should execute a copy of this Agreement and return an executed copy to the Foundation within ten (10) business days from the date on the first nae of this Agreement and if a duly executed cony of this Agreement is not received by the Foundation within such ten (10) business days this Agreement and the Grant are hereby revoked We look forward to our Grant assisting your organization in accomplishing its mission and charitable goals. Very truly yours, 91&_A� Kelh Rhee President and Chief Executive Officer ACCEPTED AND AGREED: IOWA CITY Grantee By: i Name: James A. Throgmorton T:tle: Date: December 6,_2017 Approved By �, /�/ Otv;ltwmey's office EXHIBIT A BUDGET AM Grant spending will commence on the Effective Date and mets, be concluded by no later than December 31, 2019. The Grant will be used exclusively for the Purpose on the expenditures detailed below. Re -budgeting across Budget line items or between Budget periods is allowed, except where such re -budgeting results from a change in the Purpose of the Grant. Notwithstanding the foregoing, however, Grantee must seek the Foundation's prior written approval for any re - budgeting above 10% for any given Budget line item or for any re -budgeting between Budget periods. Moreover, Grantee must inform the Foundation of any material change in its operating budget and expenses, including but not limited to material variations in executive compensation. Period 1 Period 2 Expense Description Effective Date — 111119 — Total 12/31/18 12131/19 Personnel: David. Schwindt,DDJFellow (100%FTS, 38% $120,000 $123,120 $243,120 Fran e, 2.6% increase in Period 2) David Schwindt potential overtime costs up to $45,600 up to $46,336 up to $9;,436 $53.63 per hour, 1.6% increase in Period 2 Personnel Subtotal $165,600 $163,456 $335,056 Travel Expenses: Travel to speak and support other DDS jurisdictions $7,500 $7,500 $15,000 (approximately 5 tris per year Travel Subtotal $7,500 $7,500 $75,000 Total Foundation Project Expense up to $173,100 up to $176,956 up to $350,056 EXHIBIT B MILESTONES Project Background and Goals: Grantee shall serve as a DDJ proof of concept site to demonstrate how communities can implement the DDJ process of combining data across health, criminal justice, and social service systems (the "Systems") to (i) identify and better understand the needs of the highest utilizers of services (the "High Utilizers"); (ii) identify and deploy interventions; and (iii) track the costs and outcomes of those interventions. With this Grant, Grantee will promote the DDJ project by assigning one of its current employees to work full-time toward implementation of the DDJ process (the "Implementation Manager"), and educating regional and national audiences about best practices and lessons learned from the implementation. The Implementation Manager will work in collaboration with an employee of Johnson County, Iowa, who is assigned part-time to this project (the "Johnson County Implementation Manager") (collectively, the "Implementation Managers"). Specifically, the Implementation Managers will coordinate stakeholders and data owners across the Systems, help develop and implement multi -agency data sharing agreements, help to extract, integrate, and analyze data to improve ongoing processes, and support the development of a proposal for a rigorous evaluation of a high Utilizers intervention. The Implementation Manager is, and will remain throughout the term of this Agreement, an Iowa City police officer, subject to the rules and regulations of the Iowa City Police Department C 1CPD"), and bound by the ICPD chain of command. All milestones will be completed by Grantee as soon as practicable and in no event later than the deadlines specified below, unless Grantee has received the Foundation's prior written consent to amend these deadlines. Milestone Deadline 1. Create and maintain a DDJ stakeholder group: The March 1, 2018 Implementation Managers will create and maintain a DDJ stakeholder group that meets regularly (at least once per quarter). The stakeholder group should include representation from relevant government organizations or agencies, non-profit organizations, academic institutions, and, if applicable, for-profit entities. 2. Acquire and integrate data from criminal justice and health Ongoing through systems: The Implementation Managers will work across a range of January 1, 2020 City and County stakeholders to locate data that can be shared and integrated to identify the High Utilizers. The Implementation Telephonic updates on Managers should work to include at least one (1) dataset representing data acquisition and a health care or social service provider with at least one (1) dataset from integration on a the criminal justice system. The Implementation Managers should monthly basis work to maximize the number of datasets shared and integrated across a broader range of relevant systems, including, but not limited to: emergency medical first response, such as Fire or EMT, social service provision, such as homeless services, behavioral health services, Milestone Deadline substance use treatment, primary health treatment, emergency health treatment, police, court, jail, and criminal community supervision. 3. Create necessary agreements and contracts for data sharing Governing and governance: The Implementation Managers will enter into Agreements: agreements to govern the ongoing contribution and use of data in March I, 2018 support of the DDJ project, including, but not limited to, data sharing agreements, memoranda of understanding, and business associate Data Governance agreements (collectively, the "Governing Agreements•"), and an agreed Structure and upon structure or process for data contributors' decision-making Processes: process (the "Data Governance Structure and Processes"). December 31, 2018 4. Analyze and use data: Initial Analysis and DDJ stakeholder Initial Analysis: The Implementation Managers will analyze data on group presentation: the High Utilizers in their community and document the characteristics December 31, 2018 of the High Utilizers, including such things as common factors and service needs. The Implementation Managers will present the data Final Analysis: analysis to DDJ community stakeholders. December 31, 2019 Final Analysis: The Implementation Managers will analyze data on the High Utilizers and document the impact of any changes to process or service provision to the High Utilizers. The Implementation Managers will present the data analysis to DDJ community stakeholders. 5. Interim Grant Report: Grantee will submit the interim Grant January 31, 2019 Report to the Foundation as required by Section 6(b)(i) of this Agreement. 6. Develop research proposal: The Implementation Managers will June 30, 2019 develop and submit a research proposal to the Foundation to conduct a rigorous evaluation of a High Utilizer intervention. If the Foundation approves the proposal, any additional support from the Foundation will be addressed through a separate grant agreement. 7. Presentation for National Association of Counties: The At least one (1) Implementation Managers will (a) present implementation best presentation: practices and lessons learned to at least one (1) National Association December 31, 2018 of Counties DDJ webinar or conference per calendar year and (b) produce at least one (1) case study on data integration and engagement At least (I) additional work to share across the DDJ communities. presentation: December 31, 2019 Milestone Deadline At least one (1) case study: December 31, 2019 8. Expert Consultation: Grantee's Implementation Manager will Ongoing during the serve as an expert during webinars, at conferences, and will provide Term expert advice to other jurisdictions seeking to implement DDJ in their communities. 9. DDJ implementation final report: The Implementation Managers Draft Report: will write a final report documenting the different steps they have taken December 1, 2019 to implement DDJ in their community, including their experience and processes on stakeholder engagement, creating the Data Governance Final Report: and Structure Processes, what they learned about the High Utilizers, January 31, 2020 and how data informed their approach to providing services to the High Utilizers. If possible, the report should include an estimate of the cost of providing services to the High Utilizers when DDJ implementation started and any cost savings and outcome improvements achieved as a result. After the Foundation reviews and approves the draft report, Grantee shall make the final report publicly available. 10. Final Grant Report: Grantee will submit the final Giant Report to the Foundation as required by Section 6(b)(ii) of this Agreement. January 31, 2020 November 2017 Geoff Fruin City Manager, Iowa City 410 East Washington Street Iowa City, Iowa 52240 Dear Mr. Fruin: It is my pleasure to inform yoy that the Board Foundation (the "Foundation") has an orized a gran $350,506.00 (three hundred fifty thou nd five hu c installments as set forth below, subject to Grantee's ci of, as the case may be, the terms, conditi ns, agr ems provisions set forth in this agreement (this gre en, Of Directors of the Laura and John Arnold to Iowa City ("Grantee") in the amount of red six dollars) (the "Grant"), payable in eptance of, compliance with or the making ,nts, warranties, representations, and other The Grant shall be used for the purpo e of supporting implementation of the Data -Driven Justice ("DDJ") project in Iowa City, Iowa, a d sharing best practices and lessons learned from the implementation with regional and nation udiences, with the overall goal of increasing the use of data in the criminal justice system (co ecfvely, the "Purpose"). Grantee and the Foundation conditions, agreements, warranties, r are attached to the Grant: Charitable Purpose. Grantee educational, and/or scientific those authorities interpreting Revenue Code of 1986 (as r predecessor or successor fedei propaganda, influence legis] outcome of any election, ca applicable local, state, federa income or gains earned there r otherwise by prior written c n agree, and consent to the following terms, end other provisions, which either relate to or 1gr s that the Grawill only be used for charitable, pu oses as such p oses are generally defined by thp provisions of Se\will (c)(3) of the Internal nded, including anonding provisions of tax laws, "Code"), ot be used to carry on .tion, fund any polipaign, influence the y on any voter regirives, or violate any or foreign law. Grantthat the Grant (and all shall be used solely fpose, unless approved ent of the Foundation 2. Term. The term of this A eement will commence on the date\heein executes this Agreement as set forth o the signature page hereto (the "Effete') and will expire on March 31, 202 , unless terminated earlier as providedthe "Tern:'). 3. Payment of Grant Fun s. Until the earliest of such time as theas been paid in full, the end of the germor the termination of this Agreemennt to Section 7 of this Agreement, and provided Grantee is in full compliance terns of this 1 Agreement, the Foundation shall pay Grantee the Grant in three (3) installment payments as follows (each an "Installment Payment" and collectively, the "Jnstallment Payments"): (a) the first Installment Payment of $173,100.00 (one hundr� seventy-three thousand one hundred dollars), within thirty (30) business days of\the execution and delivery of a signed copy to the Foundation of this Agreem , t by (;rantaa• (hl tha QP,A» A ,.F e17n nnn nn t_. hundred se enty thousand dollars) on or by February 28, 2019; and (c) the third and final Instal] ent Payment of $7,406.00 (seven thousand four hundred six dollars) on or by Februal 28, 2020. All Installment Paymen s pursuant to this Agreement will be contingent o Grantee's full compliance with t budget and milestones set forth in Exhibits A a d B attached heretoIfulle nto rated herein (the "Budget and Milestones"), in a anner satisfactory Fou ation. The Foundation shall not be obligated to ma any Installment nt i the Foundation determines in its sole discretion that rantee is not ie pfiance with the terms of this Agreement, including t Budget and l s. If the Foundation does not make an Installment Payment b cause Grantin full compliance with the terms of this Agreement, including, ut not lim, full compliance with the Budget and Milestones, theFoundation all not le obligated to make such Installment Payment, even if Grantee subse uently uch breach or becomes fully compliant with the Agreement, including, b t not to, the Budget and Milestones. 4. Representations and Warranties. tee makes the following representations and warranties: a. Grantee is a governmenta unit d ly formed, validly existing, and in good standing in the State of owa with all governmental power, authority, and permits necessary to ca on its activr 'es, including the Purpose of the Grant. b. Grantee is currently, d at all times d •ng the Term will be, a Qualifying Grantee. For purpo s of this Agreeme t, a "Qualifying Grantee" is an organization which t all times meets the fo wing criteria: (i) it is a charitable organization desc ' ed in Code Section 501(c (3), a governmental unit defined in Code Section 70(c)(1), or an integral pa of or an instrumentality of a governmental u it defined in Code Section 17 c)(1), (ii) it is not a "private foundation" w' in the meaning of Code Section 9(a), (iii) it is not a Type III Supporting O ganization within the meaning of C de Section 509(a)(3), and (iv) it is an ganization pursuant to which the accep ante of the provisions of this Agrees ent or of the Grant will not adversely affe Grantee's status under subsectio (i) — (iii) above. Grantee is not aware of an threat or challenge to its statu as a Qualifying Grantee. Furthermore, if antee is a publicly suppol d charity within the meaning of Code Section 17 b)(1)(A)(iv) or (vi) or S tion 509(a)(2), Grantee represents that the Grant will of cause Grantee to lose its status as a publicly supported chanty. e. The Purpose of the Giant is charitable, educational, and/or scientific as such purposes are generally defined by those authorities interpreting the provisions of ode Section 501(c)(3), and the Grant will only be used for such charitable, edu tional, and/or scientific purposes and will not be used to carry on propa anda, influence legislation, find any political campaign, influence the outcom of any election, carry on any voter registration drives, or violate any appli cab local, state, federal, or foreign law. d. The parties knowledge that the Foundation wilj ict or control Grantee's interactions u'th any govennnent officials or emGrantee agrees that it will advise the oundation if it or any ofits agene inactivity that could give rise to any ' closure of the Grant or the Fn under federal, state, or local lobbying d closure rules and/or campaice laws. e. Grantee complies with and will continue toply with all applicable local, state, federal, and forei laws, statutes,ru s, and regulations, as amended from time to time. f. All information relating to thl Grant he tofore provided to the Foundation by Grantee or to be provided to tl Fo ation by Grantee during the Term has been, and for the duration of th T rm (and for so long as any obligations pursuant to Sections 5 and 6 of thi Agreement remain outstanding) will at all times continue to be true, accurat complete in all material respects. 5. Records. Grantee will maintain a curate d complete records of receipts and expenditures made from Grant funs and will eep these records during the period covered by Grantee's reporting o igations specr ed in Section 6 of this Agreement and for at least three (3) years t ereafter. During he Tenn, and for three (3) years thereafter, upon the request o the Foundation, Grantee shall make such records available for inspection by t e Foundation and its "Representatives during normal business hours, and Grante shall cooperate and assist the Foundation with the Foundation's review of su records. 6. Reporting and Informa on. a. Grantee will im ediately provide the Foundation with (i) a copy of Grantee's current, valid detennination letter from the Internal, Revenue Service recognizing rantee's status as a Qualifying Grantee, and (ii) copies of Grantee's f ancial statements with respect to Grantee's fiscal years ending on June 30, 18, June 30, 2019, and June 30, 2020, as such documents become available. b. Grantee will promptly provide the Foundation with: (i) an interim, report on January 31, 2019, and (ii) a final report on January 31, 2020 (each a "Grant 3 7 Report" and collectively, the "Grant Reports"). Each Grant Report will include a full, detailed accounting of expenditures of Grant funds, including a confirmation that the funds have been spent exclusively toward the Purpose in accordance with the Budget, as well as a narrative of what was ac mplished by the use of such funds during the reporting period (including a scription of progress ade in fulfilling the Purpose of the Grant, and a nfirmation of Grantee's compliance with the terns of this Agreement). antee shall also inform the oundation of any material change in its o ating budget and expenses, in luding, but not limited to, material va tions in executive compensation.\duc e also agrees to provide the Foun tion with a copy of all materials dever published using the Grant. M eover, the Grant Reports shall include ar information requested by y Foundation reasonably in advance of theto of the relevant Grant R rt. c. if the Grant funds are of fully expended WGrantee in accordance with the Budget as set forth in Ex 'bit A, Grantee disclose this in the Grant Reports, and the Foundation will m e a determr ion about such funds upon receipt of such information, includingXhether Gittee shall be required to return unspent funds to the Foundation. Gran e rna of reallocate any unspent fiords and may not spend or retain unspent fund a the Budget end date without prior written approval from the Foundation. d. Grantee will (i) immediately concerning a threatened, pro Qualifying Grantee, and (ii) the Foundation with any information actual change in Grantee's status as a oundation prompt written notice (1) if any of the even/the n 7 of this A\agr ccurs, and (2) of each and every event whiching of noticetime, could reasonably be expected to constint described of this Agreement. Termination. This Agry be terminFoundation if any of the following has occurredunderstood athat the determination of whether any such coedint has occurrade by the Foundation in its sole discretion: a. Any of the warranties or representations made by Gran in this Agreement is or becomes un e in any respect; \ b. There is a n terial change in the purpose, character or met od of operation of Grantee, a r aterial change in the leadership of Grantee, or a aterial change in Grantee's taff lonsible for carrying out the Purpose of the greement; c. Grantee ses any portion of the Grant for any purpose other tha the Purpose without the prior written consent of the Foundation; 4 d. The Internal Revenue Service makes a determination, preliminary or otherwise, that the Grant does not constitute a qualifying distribution by the Foundation within the meaning of Code Section 4942(g)(1)(A) or ('B); e. Grant e has materially misrepresented to the Foundation its activities or financi condition; J f. Grantee fa i to comply with any of the provisions of this Agre ent including, but not lunit to, the Budget and Milestones in Exhibits A a B, respectively; or g. The Grant or its urpi se does not contribute to the ecomplishrment of the Grantee's charitabl mission as originally anticipate The effective date of A Foundation's terminat�a) of this Agreement (the "Termination Effective Date" shall be the earlier ofthedate notice is given by the Foundation to Grantee of t termination, and � if so elected by the Foundation, the date on which the event tri Bring the right termination occurred. The delay in, or failure of, the Foundation to xercise its ri t to terminate at any time shall not be a waiver of such right, either wr respect the cause giving rise thereto or any other cause for termination, and the p Grant after notice of an event giving of the right to terminate or any rights event will such delay, failure or pay ratification, estoppel, laches, or any o1 later elects to exercise its right of teryl y the Foundation of any portion of the 1 right to terminate shall not be a waiver Foundation upon termination, and in no ;ive rise to any argument for novation, (;table or legal defense if the Foundation 8. Payment Obligation; Return of unds. In the e ent that the Foundation terminates this Agreement pursuant to the t rms hereunder: a. Any remaining paymen obligation of the Found ion to Grantee, whether under this Grant or otherwis , shall be null and void as f the Termination Effective Date; b. if the Foundatio terminates this Agreement purs ant to any provision hereunder other an Section 7(a) or 7(e) of this Agr ement, Grantee shall promptly returno the Foundation any amounts of the Gra t previously paid to Grantee which ave not yet been expended as of the Termin ion Effective Date or which wer not used for the Purpose; and c. If the Fou ation terminates this Agreement pursuant to either ection 7(a) or 7(e) of t s Agreement, Grantee shall promptly return to the F undation an amoun qual to the arnount of the Grant previously paid to Grante . 5 9. Indemnity; Liability. Grantee shall indemnify, defend and hold harmless the Foundation, its officers, directors, founders, employees and agents and each of their affiliates (collectively, the "Foundation Parties"), from and against, any liability, damage, 1'ee'ss or expense (including reasonable attorneys' fees and expenses of litigation) incurred or imposed upon the Foundation Parties in connection' with any claims, nits, ctions, demands or judgments, arising out of or related to'(a) any act or oinissi of,.Grantee, its employees or agents in applying for or accepting the Grant, (b) t expending of Grant funds furnished pursuant to this Agreement; or (c) the carrying o t of any programs or projects funded by the GraW The Foundation shall not be liab for any losses, damages, claims or other liabilities arising out of Grantee's activitie It is expressly understood that the Foundation, by making the Grant and entering 'nto this Agreement, has no obligati,,on to provide other or additional support to antee. 10. Grant Publicity. Grant may release in: information mentioning this grecment, the F that at the time of such release rantee (i) is in Agreement; (ii) has received p ' r written a President of Communications; an iii) agrees of any such news releases or other ritten such release. Grantee will advise t e F ur unauthorized release of information. hoi Grantee, the Foundation may include inf ati and any photographs, reports, or orb pu is Grantee to the Foundation in the F undati releases, and other external mmunica Notwithstanding the foregoing, h ever, Gran rmati# regarding the Grant (i.e., Ind, and/or the Grant) provided liance with the provisions of this oval from the Foundation's Vice furnish the Foundation with copies Trials within a reasonable time after ation immediately if there is any further notice to or consent from t about this Agreement and/or Grant, ed or printed materials provided by s published reports, website, news ns related to the Foundation. nay release any information about the Agreement and/or Grant that 's required to be di losed under any applicable laws or regulations. Moreover, the parties recognize th this Section does not affect Grantee's rights to publish y materials or research unded with this Grant or to release public statements o' release information about tivities or research funded with this Grant to the exte t such materials, research, stat ents, or information do not mention the Grant, t 's Agreement, and/or the Foundati 11. Gifts. The Foundati# desires that all of Grantee's resour es be dedicated to accomplishing its ph' anthropic and charitable purposes. There e, Grantee agrees that it will not fum' h the Foundation or Foundation Parties with ty membership, commemorative i ms, recognition plaques, or gratuities or benefits any kind. 12. Governing Larl and Venue. This Agreement shall be governed by the ws ' of the State of Texand shall be performable and enforceable in Harris Court Texas. The sole and exclusive jurisdiction for any dispute arising under or relate o thus tre Agreement shall be in the state district courts of Harris County, Texas, and Gr e 6 irrevocably submits in advance to personal jurisdiction in the state district courts of Harris County, Texas. 13. Entire Agreement This Agreement supersedes any prior oral written understanding or communications between the parties and constitut the entire agreement of the parties with respect to the subject matter hereto. T Is Agreement may not be amended or modified, nor any of its provisions waived, e cept in a written docunx t signed by an authorized representative of Grantee and e Foundation. 14. Waiver. A\mayve. r of any kind by either party of a breach this Agreement shall not operatenstrued as a waiver of such breach or y subsequent breach. Either partyor omission in exercising any right, wer, or remedy pursuant to a breach by the other party shall not impair ny right, power, or remedy which that y ve.15. Severabilityprove 'on of this Agreement comes or is declared by a court of competection to e illegal, unenforce le, or void, this Agreement shall continue in e and elle without such nr vision. 16. Assignment. This Agreement shall inure to e benefit of and be binding upon the parties hereto and their respective p inn successors, assigns, heirs and legatees; provided, however, Grantee cannot ass or otherwise transfer, its rights or delegate any of its obligations, without the prio written consent of the Foundation, which consent the Foundation may withhold, on tion or delay in its sole discretion. 17. No Third Party Rights. Except as s forth in ection 9 of this Agreement, it is the explicit intention of the parties th no person entit\bh other than the parties is or shall be entitled to bring any acti to enforce avision of this Agreement and that the covenants and agreeme s set forth herell be solely for the benefit of and enforceable only by the ies or their resve successors and assigns as pennitted hereunder. 18. Remedies. The rights and r medies provided inAgr ement are cumulative in nature and shall be in addit'on to any such other riand r edies available at law or in equity. 19. Independent Parties. T is Agreement shall not bmed to cr to any relationship of agency, partnersh' or joint venture betwthe partie hereto. Grantee acknowledges and a ees that it will conduct all ies funded b the Grantinits own name and tha Grantee's employees and s are not, an will not hold themselves out to e, agents or representatives ofoundation for a purpose. 20. Survival. The rovisions of Sections 5, 6, 8, anall survive any e iration or termination of this Agreement, and each party shaain obligated unde any other 7 provisions that expressly or by their nature survive any expiration or termination of this Agreement. 21. Multiple Counterparts. This Agreement may be signed in multiple counterparts, which may be signed by the parties separately, but together shall const' ute a single agree ent. 22. Contact Ln rrnation. For information regarding the Grant, plea contact: Laura and )hn Arnold Foundation c/o Raquel Se ndo, Grants Manager 3 Columbus Cir e, Suite 1601 New York, NY 10 9 Phone: (212) 430-36_ E-mail: rsegundo(a)amo foundation.( Acknowledgment of Grantee's arcement to e representations, warranties, terms, and conditions set forth in this Agreemen mustb made by a duly authorized officer of Grantee who should execute a copy of this e ent and return an executed copy to the We look forward to our Grant mission and charitable goals. 8 organization in accomplishing its Very t%ily yours, Kelli Rhee President and Nief Executive Officer ACCEPTED AND AGREED: TOW -A Grants By: Name Title: Date: EXHIBIT A BUDGET .911 Grant spending will connnence on the Effective Date and must be concluded by no later than December 31, 2019. The Grant will be used exclusively for the Purpose on expenditures detailed belo : Re -budgeting across Budget line items or between Budg periods is allowed, except where su 1 re -budgeting results from a change in the Purpose of th rant. Notwithstanding the foregoing, ho - ver, Grantee must seek the Foundation's prior ttten approval for any re - budgeting above 10 for any given Budget line item or for any e -budgeting between Budget periods. Moreover, Gr tee must inform the Foundation of any naterial change in its operating budget and expenses, me ding but not limited to material va ' tions in executive compensation. Period 1 Period 2 Expense Description Effective D to — 1/1/19— Total 12/31 8 12/31/19 Personnel: David Schwindt, DDJ Fellow (100% F 38% Frin e, 2.6% increase in Period 2) $120,000 $123,120 $243,120 David Schwindt potential overtime costs ($53.63 per hour, 2.6% increase in Period 2) up to $45,600 up to $46,336 up to $91,936 Personnel Subtotal $165,600 5169,456 $335,056 Travel Expenses: Travel to speak and support other DD jurisdictions (a roximatel , 5 tri s er ear) $7,500 $7,500 $15,000 Travel Subt tat $7,500 $7,500 $15,000 Total Foundation Pro'ect Expense u to 73,100 u to $176,956 u to $350,056 EXHIBIT B MILESTONES Project Backgro d and Goals: Grantee shall serve as a D proof of concept site to demonstrate how co inanities can implement the DDJ process o combining data across health. criminal justice, and s cial service systems (the "Systems") to i) identify and better understand the needs of the highe utilizers of services (the "High tilizers"): (ii) identify and deploy interventions; and (iii) tra the costs and outcomes of tho interventions. With this Grant, Grantee wil romote the DDJ projec by assigning one of its current employees to work full-time toward imp-1entation of the D process (the "Implementation Manager"), and educating regional and natio al audiences ab t best practices and lessons learned from the implementation. The Implemental n Manager ill work in collaboration with an employee of Johnson County, Iowa, who is s Implementation Manager") (collecti Implementation Managers will coordir develop and implement multi -agency analyze data to improve ongoing pro, rigorous evaluation of a High Utilizer remain throughout the tern of this Ab regulations of the Iowa City Polio command. p -time to this project (the "Johnson Countv "Implementation Managers"). Specifically, the ikeholders and data owners across the Systems, help sharing agreements, help to extract, integrate, and , and support the development of a proposal for a vention. The Implementation Manager is, and will Q an Iowa City police officer, subject to the rules and rt ("ICPD"), and bound by the ICPD chain of All milestones will be completed by G�tee as soon as practaible and iia no event later than the deadlines specified below. unless Grantee has rec ived the Foundation's p1 or written consent to amend these deadlines. 1. Create and main in a DDJ stakeholder oup: The Deadline March 1, 2018 Implementation Manag s will create and maintain a DDJ takeholder group that meets regul ly ('at least once per quarter). The st keholder group should includ representation from relevant go rnment organizations or encies, non-profit organizations, ae demic institutions, and, if plicable, for-profit entities. 2. Acquire and ' tegrate data from criminal justice and hea th Ongoing through systems: The h lementation Managers will work across a range f January 1, 2020 City and Coun stakeholders to locate data that can be shared an integrated to identify the High Utilizers. The Implementation Telephonic updates on Managers sh uld work to include at least one (1) dataset representing data acquisition and a health care or social service provider with at least one(I)dataset from integration on a the criminal justice system. The Implementation Managers should monthly basis work to maximize the number of datasets shared and integrated across a broader range of relevant systems, including, but not limited to: emergency medical first response, such as Fire or EMT, social service provision, such as homeless services, behavioral health services, Milestone Deadline substance use treatn nt, primary health treatment, emergency health treatment, police, co jail, and criminal community supervision. 3. Create necessary ag eements and contracts for data sharjdg Governing and governance: The plementation Managers will enter,"iinto Agreements: agreements to govern the going contribution and use of -data in March 1, 2018 support of the DDJ project, i luding, but not limited to, d a sharing agreements, memoranda of u derstanding, and busine s associate Data Governance agreements (collectively, the "G verningdgreements") and an agreed Structure and upon structure or process for to contributors �rlecision-making Processes: process ('the "Data Governance Sir cture and Procq§ses"). December 31, 2018 4. Analyze and use data: Initial Analysis and DDJ stakeholder Initial Analysis: The Implementation M a rs will analyze data on group presentation: the High Utilizers in their community and d ument the characteristics December 31, 2018 of the High Utilizers, including such thin s s common factors and service needs. The Implementation Ma agers will present the data Final Analysis: analysis to DDJ community stakeholde December 31, 2019 Final Analysis: The Implementatio Managers coil nalyze data on the High Utilizers and document th impact of any ch es to process or service provision to the Hi r Utilizers. The hn ementation Managers will present the d to analysis to DDJ c mmunity stakeholders. 5. Interim Grant Report: rantee will submit the interim .\11ant January 31, 2019 Report to the Foundation "s required by Section 6(b)(i) o t 's Agreement. osal: The Implementation Managers wi 6. Develop research/separate June 30, 2019 develop and submit a eh proposal to the Foundation to conduct a rigorous evaluation ogh Utilizer intervention. If the Foundation approves the proposaldditional support from the Foundation will be addressed through grant agreement. 7. Presentation f r National Association of Counties: The A least ne (1) Implementation anagers will (a) present implementation best p senta 'on: practices and less ns learned to at least one (1) National Association Decem er 31, 2018 of Counties DD webinar or conference per calendar year and (b) produce at least one(]) case study on data integration and engagement At least (1) dit onal work to share across the DDJ communities. presentation: December 31, 2019 Milestone Deadline At least one (1) case study: December 31, 2019 8. Expert Consu ation: Grantee's Implementation Man ger will Ongoing during the serve as an expert ring webinars, at conferences, and 11 provide Term expert advice to other 'urisdictions seeking to implemen DJ in their communities. 9. DDJ implementationNrt: The Implem tation Managers Draft Report: will write a final report dothe different s eps they have taken December 1, 2019 to implement DDJ in theiity, includin their experience and processes on stakeholderent, creatin the Data Governance Final Report: and Structure Processes, learned out the High Utilizers, January 31, 2020 and how data informed therapproac to pro iding services to the High Utilizers. If possible, the report shoul in de an estimate of the cost of providing services to the High Utiliz when DDJ implementation started and any cost savings and outco e mprovements achieved as a result. After the Foundation reviews and pproves the draft report, Grantee shall make the final report p liely ailable. 10. Final Grant Report: Grantee ill submit th final Grant Report to the Foundation as required by Se tion 6(b)(ii) of is Agreement. January 31, 2020 CITY OF IOWA CIT 11-21-17 COUNCIL ACTION REPO 4d(9) November 21, 2017 Resolution authorizing the Mayor to sign and City Clerk to attest a Data Driven Justice Agreement with the Arnold Foundation Prepared By: Jody L. Matherly, Police Chief Reviewed By: Eric Goers, Assistant City Attorney Geoff Fruin, City Manager Fiscal Impact: None Recommendations: Staff: Approval Commission: N/A Attachments: Resolution and Arnold Foundation Agreement Executive Summary: This agreement with the Laura and John Arnold Foundation will be used for the purpose of supporting implementation of the Data -Driven Justice project in Iowa City. It provides funding for the police officer position held by Officer David Schwindt for a period of up to two years, as he works to implement the DDJ pilot project in Iowa City. Background / Analysis: In February 2014 Officer Schwindt began working on a project with Shelter House and the Local Homeless Coordinating Board. Shelter House had received a planning grant for a housing first project that would become known as the Frequent Users Systems Engagement (FUSE) project. He examined Iowa City Police Department records to identify the individuals who had the most frequent contact with the Iowa City Police and were also experiencing homelessness. It took more than 40 hours for him to manually collect and analyze the relevant data to make a list. That list was provided to many local service agencies who narrowed the list by comparing it to their high utilizers. The information learned has proven to be very valuable in demonstrating the need and value of a housing first option in Johnson County. The FUSE project was integrated into the Data -Driven Justice Initiative (DDJI). This proposed agreement with the Foundation will provide the resources necessary to continue working on DDJI which will benefit the community of Iowa City in: • Identifying high utilizers in our area across multiple service providers • Identifying service gaps • Creating a baseline of the results of our current services • Tracking the outcomes of new or changed services in the future • Providing valuable, deidentified datasets for future analysis by outside organizations, entities, or institutions Late Handouts Distributed EXHIBIT A (Date) BUDGET All Grant spending will commence on the Effective Date and must be concluded by no later than December 31, 2019. The Grant will be used exclusively for the Purpose on the expenditures detailed below. Re -budgeting across Budget line items or between Budget periods is allowed, except where such re -budgeting results from a change in the Purpose of the Grant. Notwithstanding the foregoing, however, Grantee must seek the Foundation's prior written approval for any re - budgeting above 10% for any given Budget line item or for any re -budgeting between Budget periods. Moreover, Grantee must inform the Foundation of any material change in its operating budget and expenses, including but not limited to material variations in executive compensation. Expense Description Period 1 Effective Date —12/31/18 Period 2 1/1/19— 12/31/19 Total Personnel: David Schwindt, DDJ Fellow (100% FTE, $165660 $ t69 X96 120 $335,506 38% Fringe, 2.6% increase in Period 211)"$120,000$123,120243 u Fringe, potential eveftinte) David Schwindt potential overtime costs un to $45,600 up to $46,336 un to $91,936 53.63 per hour, 2.6% increase in Period 2 Personnel Subtotal $165,600 $1694569"" $335,506 Travel Expenses: Travel to speak and support other DDJ jurisdictions (approximately 5 tris per year $7,500 $7,500 $15,000 Travel Subtotal$7,500 $7,500 $15,000 Total Foundation Project Expense a to $173 100 u to $176 956174" u to $350,056 4CL(q) EXHIBIT A BUDGET All Grant spendin will commence on the Effective Date and must P6 concluded by no later than December 31, 201 . The Grant will be used exclusively for Purpose on the expenditures detailed below. Re-bu geting across Budget line items or be cen Budget periods is allowed, except where such re-bu eting results from a change in the P ose of the Grant. Notwithstanding the foregoing, however, tee must seek the Foundati 's prior written approval for any re - budgeting above 10% fora given Budget line it r for any re -budgeting between Budget periods. Moreover, Granteem t inform the Founda 'on of any material change in its operating budget and expenses, including b t not limited to terial variations in executive compensation. Period 1 Period 2 Effective 1/1/19— Expense Description Date — 12/31/19 Total 12/31/18 Personnel: David Schwindt, DDJ Fellow (100% TE, 3 o Fringe, $165,600 $169,906 $335,506 potential overtime) PersonnA Subtotal $165,600 $169,906 $335,506 Travel Expenses: Travel to speak and supp other DDJ juris 'ctions $7,500 $7,500 $15,000 (approximately 5 tri s per e Travel Subt al $7,500 $7,500 $15,000 Total Foundation Proje9f Expense $173,100 $177,406 $350,056 ®oat CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319)356-5000 (319) 356-5009 FAX www.icgov.org Late Handouts: Information submitted between distribution of packet on Thursday and close of business on Monday. ................................................ on ............ moos.. ......... Now ..... Consent Calendar 4d Resolutions and Motions Item 4d(9) Data Driven Justice Agreement - See redlined update Exhibit A Item 4f(4) Bill Ackerman: Nov. 21 work session - Lusk Avenue Abomination Regular Agenda Item 6a S. Gilbert Street and McCollister Boulevard (Preserve at Sandhill) - See additional correspondence Item 8 Revised TIF Policies — See additional correspondence Item 9 Rental Permit Requirements — See additional correspondence Prepared by: BrettZimmerman, Public Works, 410 E. Washington St., lova City, IA 52240, (319)356-5044 Resolution No. 17-347 Resolution setting a public hearing on December 5, 2017 on plans, specifications, form of contract, and estimate of cost for the construction of the Mercer Aquatic Center Boiler and HVAC Replacement Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said plans on file for public inspection. Whereas, funds for this project are available in account # R4331. Now, therefore, be it resolved by the Council of The City of Iowa City, Iowa, that: 1. A public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above-mentioned project is to be held on the 5t' day of December, 2017, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 3. A copy of the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this 21st day of November 2017 Maor ' pp}oved by Ci y Clerk U City Attorney's Office It was moved by trims and seconded by Botchway the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: Botchway Cale Dickens Mims Taylor Thomas Throgmorton 4l:cz) CITY OF IOWA CI 11-21-17 4e(2)COUNCIL ACTION REP November 21, 2017 Resolution setting a public hearing on December 5, 2017 on plans, specifications, form of contract, and estimate of cost for the construction of the Mercer Aquatic Center Boiler and HVAC Replacement Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said plans on file for public inspection. Prepared By: Brett Zimmerman - Civil Engineer Reviewed By: Kumi Morris - Facilities Manager, Jason Havel - City Engineer Ron Knoche - Public Works Director, Juli Seydell Johnson - Parks and Recreation Director, Geoff Fruin - City Manager Fiscal Impact: The estimated cost for this project is $680,000 and will be funded by Account # R4331 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item begins the bidding process for the Mercer Aquatic Center Boiler and HVAC Replacement Project. This project includes replacement of the existing boiler and HVAC systems in the Mercer Aquatic Center and Scanlon Gymnasium. Background / Analysis: The existing boilers at the Mercer Aquatic Center and Scanlon Gymnasium have been in operation since 1988 and are approaching the end of their useful life. Additionally, the current HVAC system provides inconsistent heating and cooling, resulting in numerous patron complaints regarding water and air temperatures in the facility. Project Timeline: Set Public Hearing — November 21, 2017 Hold Public Hearing — December 5, 2017 Bid Letting — January 11, 2018 Award Date — January 16, 2018 Substantial Completion — June 15, 2018 Final Completion — July 13, 2018 Prepared by: Brett Zimmerman, Public Works, 410 E. Washington St, Iowa City, IA 52240 (319) 356-5044 Resolution No. 17-349 Resolution approving plans, specifications, form of agreement, and estimate of cost for the construction of the City of Iowa City Building Automation Upgrades and Improvement Projects 2017, establishing amount of bid security to accompany each bid, directing City Clerk to post notice to bidders, and fixing time and place for receipt of bids. Whereas, notice of public hearing on the plans, specifications, form of contract and estimate of cost for the above-named project was published as required by law, and the hearing thereon held; and Whereas, the City Engineer or designee intends to post notice of the project on the website owned and maintained by the City of Iowa City; and Whereas, funds for this project are available in account # R4332. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: The plans, specifications, form of contract. and estimate of cost for the above-named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above- named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3, not less than 13 days and not more than 45 days before the date of the bid letting, which may be satisfied by timely posting notice on the Construction Update Network, operated by the Master Builder of Iowa, and the Iowa League of Cities website. 4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 14"' day of December, 2017. At that time, the bids will be opened by the City Engineer or his designee, and thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 7:00 p.m. on the le day of December, 2017, or at a special meeting called for that purpose. Passed and approved this 21st day of November . 2017. Ma or Attest. Ll City Clerk A proved by City Attorney's Office lti,/17 I Resolution No. 17-349 Page 2 It was moved by Botchwav and seconded by adopted, and upon roll call there were: Thomas Ayes: Nays: Absent: the Resolution be x Botchway x Cole x Dickens x Mims x Taylor x Thomas x Throgmorton I Prepared by: Wendy Ford, Ec. Dev. Coord., 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 RESOLUTION NO. 17-350 Resolution adopting City of Iowa City Tax Increment Financing (TIF) Policies Whereas, the Iowa City City Council believes it is in the public's best interest to establish a policy guiding the community's economic development activities; and Whereas, the City Council determined to review and revise existing TIF policies in their 2016-2017 Strategic Plan, and Whereas, the policies address the public benefits that can be gained through the use of tax increment financing; and Whereas, the City Council Economic Development Committee directed the policy review and revision process; and Whereas, the City Council Economic Development Committee voted to recommend the TIF Policies to the City Council at their meeting on October 19, 2017; and Whereas, the policies will be used to guide the City Council's future use of tax increment financing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The Tax Increment Financing (TIF) Policies attached hereto are adopted. Passed and approved this 21st day of November 20 17 G, MAYOR t wn ATTEST;.. Ezr c e �i Ge Tv - CITY CLERK / 1 City Attorney's Office Resolution No. Page Z 17-350 It was moved by Thomas and seconded by Botchway the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: x Botchway x Cole x Dickens x Mims x Taylor x Thomas x Throgmorton TIF policies I approved Nov. 21, 2017 1 Page 1 I? �.®�. �III,�lot � a�s�-►A10=1 -...� CITY OF IOWA CITY UNESCO CITY OF LITERATURE Tax Increment Financing (TIF) Policies City of Iowa City's Strategic Plan Alignment with the City's Strategic Plan will provide the first indicator about whether a project may be eligible for TIF. To the extent that a project helps achieve the City's Strategic Plan objectives and is located within an established Urban Renewal Area (Exhibit A), it may be eligible to be considered for TIF. 2016 — 2017 City of Iowa City Strategic Plan The Strategic Plan intends to foster a more inclusive, just and sustainable Iowa City a) Promote a strong and resilient local economy b) Encourage a vibrant and walkable urban core c) Foster healthy neighborhoods throughout the City d) Maintain a solid financial foundation e) Enhance community engagement and intergovernmental relations f) Promote environmental sustainability g) Advance social justice and racial equity In addition, the City will continue to seek projects that diversify existing uses in the given urban renewal area. Such projects may include Class A office, hotel, entertainment, and residential uses, provided market studies and financial analysis support such investment. Sustainability New office and mixed-use building projects receiving TIF in any urban renewal area shall be certified Silver or better under the LEED for New Construction Rating System current at the time of design development. New Residential projects shall be certified Silver under the National Green Building Standard or the LEED Green Building Rating System appropriate to the building type. Further, for LEED projects, at least 8 points shall be awarded for the LEED-NC Optimize Energy Performance credit to ensure that TIF projects help meet the City's carbon emission reduction goals. This requirement does not apply to renovation projects. Downtown building heights and character Applications for TIF support for downtown projects must indicate how the proposed project will help fulfill the overall vision of the downtown portion of the Downtown and Riverfront Crossings Plan, "to preserve and enhance the historic buildings and character of Downtown, while encouraging appropriate infill redevelopment with a mix of building uses." (p. 18, Downtown and Riverfront Crossings Master Plan.) Except under extraordinary circumstances, applicants seeking TIF should ensure that their projects fall within the Desired Height ranges shown on the Downtown and Riverfront Crossings Master Plan's building heights diagram shown on p. 106 of the Plan (Exhibits C and D of this document). The height considerations shall only apply to area inside the border of Iowa Avenue, Gilbert, Burlington and Clinton Streets. Deviations from the Downtown and Riverfront Crossings Plan's guidelines shown on p. 56 and the Desired Building Height map (p. 106 of the Plan and Exhibit C, following) may be considered if the TIF policies I approved Nov. 21, 2017 ( Page 2 applicant demonstrates that 1) the proposed building and uses will help fulfill the overall vision of the Plan by facilitating—architecturally, materially, and/or financially—the preservation and enhancement of adjacent or nearby historic structures, if applicable, and 2) that the proposed building will provide exceptional public benefits. Exceptional public benefits are ones that go well beyond what is required by other sections of this policy, and which advance the City's vision of fostering a more inclusive, just, and sustainable city. These public benefits may include: 1. innovative building design which produces affordable housing for long-term residents and/or affordable retail space for locally -owned businesses; 2. attractive public space that is available and easily accessible to all city residents; 3. good job opportunities for low-income youth; 4. carbon -neutrality, or achievement of LEED Gold or higher certification; and 5. public display of paintings, photographs, sculpture, poems, and other visual and literary art, maps, or historical artifacts that express how diverse groups have contributed to (and are contributing to) the unique character and identity of contemporary Iowa City community and culture. This list is not intended to constrain the developer's ingenuity in proposing public benefits that clearly help foster an inclusive, just, and sustainable city. For a proposed project which would be located on a street with a substantial number of buildings eligible for historic landmark designation, the tallest portion of the project must be stepped back from its street frontages far enough to produce "no significant impact" on the existing historic character of the street fronts when seen from the public right-of-way. The provisions of this section will apply until a Downtown Form -Based Code or urban design plan is adopted. Historic preservation Properties in the downtown area are designated one of four ways. Those that are: a) on the National Register of Historic Places, b) individually eligible (for the National Register of Historic Places)/key properties, c) contributing properties (those that add to the historical integrity or architectural qualities to make a local and/or national historic district significant), and d) non-contributing properties. New construction requiring the demolition of structures on the National Register of Historic Places, or those identified as individually eligible for the National Register of Historic Places or those identified as key properties are not eligible for tax increment financing. Further, all rehabilitation to these structures shall be done in such a manner as to preserve or restore any historic structure to productive use. The guidelines for determining if rehabilitation does preserve or restore the structure shall be those set forth in the 1990 revised edition of the Secretary of Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. All additions to buildings on the National Register of on the National Register of Historic Places or those that are individually eligible for the National Register of Historic Places or are key properties shall be developed in such a manner as to be architecturally compatible with existing development. (Amendment 49, 2001 City -University Project 1 Urban Renewal Plan.) TIF policies I approved Nov. 21, 2017 1 Page 3 Properties designated contributing may be eligible for tax increment financing and any redevelopment of contributing properties should preserve and enhance the historic character of the block Historic preservation projects may be eligible for TIF funding via district -wide TIF, to incentivize historic renovation projects that may not add enough taxable value to rely solely on the subject property's increment. Affordable housing TIF projects in any urban renewal area with a residential component as part of the project must provide a minimum of 15% of the units as affordable to tenants at or below 60% AMI (area median income). If those housing units are for sale, units will be targeted to households at or below 110% AMI. The City may require a lower AMI for rental units. Developers may be eligible to negotiate a fee -in -lieu of providing on site affordable housing, or to provide affordable housing elsewhere in the community, subject to the City's sole discretion. In part, in exchange for the increased density created for the Riverfront Crossings (RFC) zone, any project with housing in the district, regardless of whether it is a TIF project, must include 10% affordable housing. TIF policy in the RFC zone is that any financial gap due to affordable housing created by zoning requirements (10%) is the responsibility of the developer and that affordable housing above the required 10% in RFC could be TIF eligible, if the financial analysis determines a gap. Economic justice The City will not contract with or provide any economic development incentives to any person or entity who has participated in wage theft by violation of the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act (FLSA) or any comparable state statute or local ordinance, which governs the payment of wages. Misclassification of employees as independent contractors is a violation of the FLSA and is included in the definition of wage theft. Development Agreements for TIF projects shall include in the contract for the construction of the Minimum Improvements, between the Developer and the General Contractor, the following written provisions, proof of which must be provided to City prior to the start of construction: a) Agreement by the General Contractor to comply with all state, federal and local laws and regulations, including, but not limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. b) Agreement by the General Contractor to provide to the Developer and the City no later than the filing of an application for issuance of a building permit, the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. c) Demonstration by the General Contractor that it has the capacity to meet all performance, and labor and material payment, bonding requirements relative to the Minimum Improvements. d) Providing to the City a certificate by the General Contractor's insurer that it has in force all insurance coverage required with respect to construction of the Minimum Improvements. TIF policies I approved Nov. 21, 2017 1 Page 4 e) Demonstration by the General Contractor that it has required all subcontractors to agree, in writing, that the subcontractor will comply with all state, federal and local laws and administrative rules and regulations, including, but not limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, anc the Internal Revenue Code. Quality jobs When a TIF project is based on the creation or retention of jobs, certain wage thresholds must be met to help ensure the City's financial participation only serves to increase the average area wage. This policy does not require that everyjob associated with a TIF project, such as those that might be created by the addition of a new retailer in a building, or the construction jobs required to build a TIF project, meet these standards. Rather, as a policy to incentivize the addition of high payingjobs to the local economy, a jobs -based TIF incentive would be structured using the thresholds of the State of Iowa High Quality Jobs Program. Other Public Interests Recognizing that some non-profit activity and/or investment in public infrastructure may influence additional private economic development activity, TIF may be an appropriate tool to further investment in Iowa City's cultural and/or natural assets. Understanding that TIF is made possible by the increased value in real property, and that most cultural organizations and public lands are generally tax exempt, a TIF project would only be possible by using increment from the district. Examples include: a) Arts and cultural activities or facilities b) Historic preservation c) Public improvements that serve as a catalyst for the economic development of the urban renewal area Underwriting and Application The following policies are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a) Complete application submission. b) But for" standard: Each project must demonstrate sufficient need for the City's financial assistance, such that without it, the project would not occur. Every other financial piece of the project must be in place prior to the consideration of TIF. TIF assistance will be used as gap financing as determined through gap analysis. c) Method of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the taxpayer. As such, the City strongly prefers the use of TIF rebates over the shortest term possible. d) Developer equity: Developer Equity must be equal to or greater than City funding. TIF assistance shall not exceed the amount of equity provided by the Developer. Equity is defined as cash, unleveraged value in land, or prepaid costs attributable to the project. e) Project based TIF: TIF for private developments must generate TIF increment sufficient to be self- supporting. Only in exceptional cases, will the City consider using district -wide increment. TIF policies I approved Nov. 21, 2017 I Page 5 Exhibit A Urban Renewal Areas Enabling Tax Increment Financing � ' s z V Yr i V i 3nY1sMtl N 1 I o r nYYM 1 �: pxRi. W cXRX aoxas .. � ss •Xnoax � � � �E 3 � r 2 2 C G rwm IL C r A x a_ c B Bx, x3a,X a , C N V N t0 � u � a m 8 t 3 a g� `rvo c/.Mvc WB�XYB�W D D �NCf TIF policies I approved Nov. 21, 2017 1 Page 6 Exhibit B City -University Project 1 Urban Renewal Area i I /0 On .0 -21 j rOn VIA � TIF policies I approved Nov. 21, 2017 1 Page 7 Exhibit C Downtown and Riverfront Crossings Master Plan Building Heights diagram building height-, l:,ruy,�A n ma U N hr= i(;ht5 1 Level b3 Levels - 4-5 Levels _ 7-15 Levels Existing Waterways Study Area Boundary CSti0' 800 H50D TIF policies I approved Nov. 21, 2017 1 Page 8 Exhibit D Downtown and Riverfront Crossings Master Plan Building Heights diagram heightti 1 Level 2-3 Levels - 4-6 Leve15 7-15 Levels 1 .G®a7y, '2III4L� CITY OF IOWA CITY UNESCO CITY OF UTERAT X E PROPOSED Tax City of Iowa City's DRAFT TIF policies I November 6, 2017 1 Page 1 Financing (TIF) Policies Plan Alignment with the City's St tegic Plan will provide the first indicator about w ether a project may be eligible for TIF. To the extent t t a project helps achieve the City's Strategic Ian objectives and is located within an established Ur n Renewal Area (Exhibit A), it may be e ' ible to be considered for TIF, 2016 — 2017 City of Iowa City Strategi Plan The Strategic Plan intends to foster a m e inclusive, just and sus mable Iowa City a) Promote a strong and resilient local a nomy b) Encourage a vibrant and walkable urban ore c) Foster healthy neighborhoods throughout he City d) Maintain a solid financial foundation e) Enhance community engagement and intergo rn ental relations f) Promote environmental sustainability g) Advance social justice and racial equity In addition, the City will continue to seek proje s that di rsify existing uses in the given urban renewal area. Such projects may include Class A office hotel, entert inment, and residential uses, provided market studies and financial analysis suppo such investmen . Sustainability New residential, office and mixed-use uilding projects receiving F in any urban renewal area shall be certified Silver or better under the LEED f r New Construction Rating Syste current at the time of design development. Further, at least 8 point shall be awarded for the LEED-NC 0 imize Energy Performance credit to ensure that TIF projects help mee he City's carbon emission reduction oals. This requirement does not ap9fy to renovation projects Downtown building heightand character Applications for TIF suppo for downtown projects must indicate how the pro osed project will help fulfill the overall vision o the downtown portion of the Downtown and Riverfro t Crossings Plan, "to preserve and enhance a historic buildings and character of Downtown, while a ouraging appropriate infill redevelopment th a mix of building uses." (p. 18, Downtown and Riverfront rossings Master Plan.) Except under extrgbrdinary circumstances, applicants seeking TIF should ensure that th it projects fall within the Desire Height ranges shown on the Downtown and Riverfront Crossings Masr Plan's building heights iagram shown on p. 106 of the Plan (Exhibits C and D of this document). a height considerations hall only apply to area inside the border of Iowa Avenue, Gilbert, Burlington nd Clinton Streets. Deviations from the Downtown and Riverfront Crossings Plan's guidelines shown on p. 56 and the Desired Building Height map (p. 106 of the Plan and Exhibit C, following) may be considered if the applicant demonstrates that 1) the proposed building and uses will help fulfill the overall vision of the Plan by facilitating—architecturally, materially, and/or financially—the preservation and enhancement DRAFT TIF policies ( November 6, 2017 1 Page 2 of adjacent or nearby historic structures, if applicable, and 2) that the proposed building will provide exceptional public benefits. Exceptional public benefits are ones that go well beyond what is required by other sections of this policy, and which advance the City's vision of fostering a more inclusive, just, and sustainable city. These public bknefits may include: 1. innovatiN building design which produces affordable housing for long-term residents and/or affordable tail space for locally -owned businesses; 2. attractive pu is space that is available and easily accessible to all city residents; 3. good job oppor pities for low-income youth; 4. carbon -neutrality, r achievement of LEED Gold or higher certification; and 5. public display of pain 'ngs, photographs, sculpture, poems, and othervisu and literary art, maps, or historical arti is that express how diverse groups have con ' uted to (and are contributing to) the uniqu character and identity of contemporar wa City community and culture. This list is not inten d to constrain the developer's in uity in proposing public benefits that clearly help foste n inclusive, just, and sustai le city. For a proposed project which would be locaNe, eligible for historic landmark designation, they\ its street frontages far enough to produce "no the street fronts when seen from the public ril on a street wit a substantial number of buildings Ilest portio f the project must be stepped back from knificant' pact" on the existing historic character of The provisions of this section w/desiated ntil a Do nt n Form -Based Code is adopted. Historic preservation Properties in the downtown ari ated one of fou ways. Those that are: a) on the National Registeis Places,b) individually eligible (fornal Register of Histori Places)/key properties, c) contributing propertiesat add to the historical r tegrity or architectural qualities to make a local and/or natoric district significant), a�1dd) non-contributing prope New construction requiring/the demolition of structures on the NationRegister of Historic Places, or those identified as individ ally eligible for the National Register of Histor Places or those identified as key properties are note Bible for tax increment financing. Further, all re h5 ilitation to these structures shall be done in such anner as to preserve or restore any historic structu a to productive use. The guidelines for deter ining if rehabilitation does preserve or restore the strut re shall be those set forth in the 1990 revise edition of the Secretary of Interior's Standards for Rehabilit tion and Guidelines for Rehabilitating Hi oric Buildings. All additions6. buildings on the National Register of on the National Register of Historic Places or those 11 that are individually eligible for the National Register of Historic Places or are key properties shall be developed in such a manner as to be architecturally compatible with existing developri' ent. (Amendment #9, 2001 City -University Project 1 Urban Renewal Plan.) 'd Properties designated contributing may be eligible for tax increment financing and any redevelopment of contributing properties should preserve and enhance the historic character of the block 1 DRAFT TIF policies I November 6, 2017 1 Page 3 Historic preservation projects may be eligible for TIF funding via district -wide TIF, to incentivize historic renovation projects that may not add enough taxable value to rely solely on the subject property's increment. f - Affordable ho TIF projects in arN urban renewal area with a residential component as part of the project must provide a minimum of 1500 of the units as affordable to tenants at or below 60% AMI (area median income). If those housing units 1k,e for sale, units will be targeted to households at or below 110% AMI. The City may require a lower A I for rental units. Developers may be eligib to negotiate a fee -in -lieu of providing on site affordable hous' g, or to provide affordable housing Isewhere in the community, subject to the City's sole dis etion. In part, in exchange for the i\TIFeligi ensity created for the Riverfront Crossi s (RFC) zone, any project with housing in the dardless of whether it is a TIF project, ust include 10% affordable housing. TIF policy in the RFat any financial gap due to affor le housing created by zoning requirements (10%) is the rey of the developer and that a rdable housing above the required 10% in RFC could ble, if the financial analysis d ermines a gap. Social Justice The City will not contract with or provideVnofthel d elopment incentives to any person or entity who has participated in wage theft by via Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labct (FLSA) or any comparable state statute or local ordinance, which governs the payment olassification of employees as independent contractors is a violation of the FLSA andthe definition of wage theft. Development Agreements for TIF projects s II incl de in the contract for the construction of the Minimum Improvements, between the D eloper an the General Contractor, the following written provisions, proof of which must be prov' ed to City p\Codd start of construction: a) Agreement by the Gene/hapter or to comply te, federal and local laws and regulations, including, bd to the requof Iowa Code Chapter 91C (Contractor Registration with the Ioof Labor), Iowapter 91A (Iowa Wage Payment Collection Law), Iowa Co91D (Minimuthe Federal Fair Labor Standards Act, and the Internal Revenue Co b) Agreement by the Ge eral Contractor to provide to the Deve per and the City no later than the filing of an applicati n for issuance of a building permit, the na es and addresses of each subcontractor and/f he dollar value of the work the subcontract(\r is expected to perform. c) Demonstration y the General Contractor that it has the capacity Nmeet all performance, and labor and material yment, bonding requirements relative to the Minim m Improvements. d) Providing the City a certificate by the General Contractor's insurer at it has in force all insurance with respect to construction of the Minimum ImprOements. e) Demonstration by the General Contractor that it has required all subcontr (tors to agree, in writing, that the subcontractor will comply with all state, federal and local laws and'administrative rules and regulations, including, but not limited to the requirements of Iowa Code Chap er 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wak Payment DRAFT TIF policies I November 6, 2017 1 Page 4 Collection Law), Iowa Code Chapter 91D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. Quality jobs When a TIF pro' ct is based on the creation or retention of jobs, certain wage threshol/peThis be met to help ensure the 'ty's financial participation only serves to increase the average area policy does not require t t every job associated with a TIF project, such as those /js be created by the addition of a new ret iler in a building, or the construction jobs required toproject, meet these standards. Rathe as a policy to incentivize the addition of high payine local economy, a jobs -based TIF incentiv would be structured using the thresholds of the Sa High Quality Jobs Program. Other Public Interests Recognizing that some non -pro 't activity and/or investment in additional private economic deve pment activity, TIF may be a in Iowa City's cultural and/or natur assets. Understanding th value in real property, and that most ultural organizations d TIF project would only be possible by u ing increment fro the a) Arts and cultural activities or facilities\ b) Historic preservation c) Public improvements that serve as a cata area Vpu is infrastructure may influence ppropriate tool to further investment TIF is made possible by the increased public lands are generally tax exempt, a district. Examples include: the economic development of the urban renewal Underwriting and Application The following policies are designed to prov' e a co\en nt and transparent process for the review and analysis of all applications for TIF assista e. a) Complete application submission b) But for" standard: Each project ust demonstrffi 'ent need for the City's financial assistance, such that without it, the proj t would not occery her financial piece of the project must be n place prior to the conside tion of TIF. TIF asce wi be used as gap financing as determined through gap analysis. c) Method of TIF financing: he City reserves the o deter 'ne the method of TIF financing that is in the best interests of a taxpayer. As such, ty strongly refers the use of TIF rebates over the shortest term po ible. d) Developer equity: veloper Equity must be eqor greater t an City funding. TIF assistance shall not exceed t e amount of equity providede Developer. quity is defined as cash, unleveragedvol a in land, or prepaid costs attrble to the proje t.e) Project based F: TIF for private developments generate TIF inc ment sufficient to be self- supporting. my in exceptional cases, will the Cnsider using distri t -wide increment. DRAFT TIF policies I November 6, 2017 1 Page 5 Exhibit A Urban Renewal Areas Enabling Tax Increment rrA � � s /r z is ,- 'o„tlu 1 F -r n anruva �A oc tm r s � a - � / C o V _ O l0 M3tl C d a N b m a Fj a LL 3� C a w d z° m r mm D N M rrA DRAFT TIF policies I November 6, 2017 1 Page 6 Exhibit B City -University Project 1 Urban Renewal Area City niversity Project 1 Urban Renewal rea As Amended � I IWI •AVE TIVIAVE WASHINGTON m G m GMNo,1VE I NELNO6EAVE ECOURT ST it C p 2 NNI Sr 8 Pfr'N„ERYE 2 4 C � PAGE ET V A WALNUT 9i W GENION ST � Iq>G � � OdIGLNG P �N GY ey P O,NW O MIGNNAY 1 W A "A CT M A. E 4VgOL Sr ERNEST 5 KDNat a RUP ENT D y,G r5F F i Urban renewal area boundary j...PH. CT 1969 Original Area SOUINU7EA ?: 2001 Amended Area ° w"PSA 2012 Amended Area NST ,AVE o / 3 RVY ® 2016 Amended Area AST IE � �1... sgxDDsxr R DRAFT TIF policies I November 6, 2017 1 Page 7 Exhibit C Downtown and Riverfront Crossings Master Plan Building Heights diagram building he :1 A& hts aliclyi,... 0 :711 ,r' 11 IL LL r r hr,itll,t 1 Level 2-3 Levels _ 4-6 Levels - 7-15 Levels Existing Waterways Study Area Boundary c no 1600' DRAFT TIF policies I November 6, 2017 1 Page 8 Exhibit D Downtown and Riverfront Crossings Master Plan Building Heights diagram ; \ F sr�� ■TF -71i WA HINStTON SIT - --5 11 c. Igh tr 7 Level 23 Leveis Leve 4-ls 7-11 5 Levels r ' CITY OF IOWA CIT 11 not COUNCIL ACTION REPO 281-17 November 6, 2017 Resolution approving revised Tax Increment Financing (TIF) Policies. Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Geoff Fruin, City Manager Simon Andrew, Assistant to the City Manager Fiscal Impact n/a Recommendations: City Council Economic Development Committee recommends approval (2-1) Attachments: Resolution Proposed TIF Policy document following Council Action Report 12/1/2016 Staff Memo: TIF Focus Group Report 3110117 Staff Memo: TIF Policy Review; topics outlined 4/20/17 Staff Memo: Excerpt regarding LEED 7/13/2017 Staff Memo: Regarding building height map Executive Summary: In January 2016, the City Council established a set of seven Strategic Planning Priorities including one to Promote a Strong and Resilient Local Economy. Supporting that priority was an initiative to review and consider amending the City's Tax Increment Finance (TIF) policy. The Economic Development Committee (EDC) championed the task with a goal of establishing a set of TIF policies with a balance of specificity and flexibility. The EDC (Mims, Throgmorton, Cole) has completed its TIF Policy Review, voted 2-1 to recommend the policies and submits the following proposed policies to the full City Council for consideration. The committee has mentioned the need for public input on numerous occasions. The City Council meeting on November 6 will be the public's opportunity to provide feedback on the proposed policies. If the Council feel further input is warranted, it can defer a vote on the policy until a later date. Background t Analysis: The committee desired input from community members and determined that conducting a series of focus groups including people with various interests and expertise would be appropriate. Staff conducted nine focus groups between June 2016 and March 2017 to gain input on how TIF had been used to date and to get ideas for policy revisions going forward. Focus groups included developers, architects, engineers, members of labor and worker justice organizations, members of social service and arts oriented non-profit groups, members of community promotional non-profit groups, taxing entities and others. CITY OF IOWA CITY COUNCIL ACTION REPORT Following the focus group meetings, the EDC then determined policy topics which they discussed and refined from March 2017 through October 2017. *For in depth information on the focus group findings, see the 1211116 staff memo attached. *The attached memo dated 3/10/17 organizes key issues with focus group input related to building height and sustainability. The eight topics, proposed policies and notes on the development of the policies follow: 1. Sustainability. The proposed policy states that all new residential, office and mixed-use building projects must be LEED silver certified (or better) and that at least 8 LEED points must be awarded for LEED new construction Optimize Energy Performance credits. Under the proposed policy LEED will not be required for renovation projects or industrial projects. There was considerable committee discussion around whether LEED certification should be required or desired, whether it should only be required in Downtown and Riverfront Crossings or in all urban renewal areas, and some discussion around requiring Gold Certification, The idea to require at least 8 Optimize Energy Performance credits is intended to help ensure progress towards reducing carbon emissions. Ultimately, the committee determined that LEED Silver is an attainable measure and is important enough to require even if it adds to project costs and the financial gap of a project. *Staff was asked to provide more information about LEED and did so in a memo dated 4120/17, excerpt attached. 2. Downtown building heights and character. The proposed policy is that all TIF funded projects In the City -University Project 1 Urban Renewal Area must help fulfill the vision of the downtown portion of the Downtown and Riverfront Crossings Master Plan/Comp Plan. In the core of the downtown (bordered by Burlington. Clinton, and Gilbert Streets and Iowa Avenue) the project must also be in the desired building height range that is included on page 106 of the Downtown and Riverfront Crossings Master Plan. Projects in the downtown core seeking to deviate from the desired heights map may be considered If they provide exceptional community benefits, which may Include, but are not limited to the following: a) innovative building design which produces affordable housing for long-term residents and/or affordable retail space for locally -owned businesses; b) attractive public space that is available and easily accessible to all city residents; c) good job opportunities for low-income youth; d) carbon -neutrality, or achievement of LEED Gold or higher certification; and e) public display of paintings, photographs, sculpture, poems, and other visual and literary art, maps, or historical artifacts that express how diverse groups have contributed to (and are contributing to) the unique character and identity of contemporary Iowa City community and culture. 'r 1 CITY OF IOWA CITY ..;. , COUNCIL ACTION REPORT This list is not intended to constrain the developer's ingenuity in proposing public benefits that clearly help foster an inclusive, just, and sustainable city. There was much discussion about requiring TIF funded building projects to fall within the height ranges detailed in the desired heights map from the Downtown and Riverfront Crossings Master Plan/Comp Plan, as the map Illustrates heights that, in some cases, are substantially less than current zoning allows. *Staff was asked to provide more information about the development of the Downtown and Riverfront Crossings Building Height map and did so in a memo dated 7/13/17, attached. 3. Historic Preservation. The proposed policy is that new construction requiring the demolition of structures on the National Register of Historic Places, those identified as individually eligible for the National Register of Historic Places, or those identified as key properties are not eligible for tax increment financing. Further, all rehabilitation to these structures shall be done in. such a manner as to preserve or restore any historic structure to productive use. The guidelines for determining if rehabilitation does preserve or restore the structure shall be those set forth in the 1990 revised edition of the Secretary of Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. All additions to buildings on the National Register of Historic Places or those that are individually eligible for the National Register of Historic Places or are key properties shall be developed in such a manner as to be architecturally compatible with existing development. (Amendment #19, 2001 City -University Project 1 Urban Renewal Plan.) Historic preservation projects may be eligible for TIF funding via district -wide TIF, to incentivize historic renovation projects that may not add enough taxable value to rely solely on the subject property's increment. Properties designated contributing may be eligible for tax increment financing and any redevelopment of contributing properties should preserve and enhance the historic character of the block. The committee's discussion points for the historic preservation policy revolved around clarification of the definitions of historic buildings. More clarity regarding the impact of this section on individual properties will come with the completion of the historic buildings inventory project that is currently underway. A new aspect of the TIF policy as it relates to historic preservation is the allowance for a district -wide TIF for a historic preservation project. 4. Affordable Housing. In May 2016, Council adopted the TIF affordable housing policy which remains the same in these proposed policies. TIF projects in any urban renewal area with a residential component as part of the project must provide a minimum of 15% of the units as affordable to tenants at or below 60% AMI (area median income). If those housing units are for sale, units will be targeted to households at or below 110% AMI. The City may require a lower AMI for rental units. ir ' CITY OF IOWA CITY COUNCIL ACTION REPORT Developers may be eligible to negotiate a fee -in -lieu of providing on site affordable housing, or to provide affordable housing elsewhere in the community, subject to the City's sole discretion. in part, in exchange for the increased density created for the Riverfront Crossings (RFC) zone, any project with housing in the district, regardless of whether it is a TIF project, must include 10% affordable housing. TIF policy in the RFC zone is that any financial gap due to affordable housing created by zoning requirements (10%) is the responsibility of the developer and that affordable housing above the required 10% in RFC could be TIF eligible, if the financial analysis determines a gap. 5. Social Justice. The proposed policy is that the City will not contract with or provide any economic development Incentives to any person or entity who has participated in wage theft by violation of the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act (FLSA) or any comparable state statute or local ordinance, which governs the payment of wages. Misclassification of employees as independent contractors is a violation of the FLSA and is included in the definition of wage theft. Development Agreements for TIF projects shall include in the contract for the construction of the Minimum Improvements, between the Developer and the General Contractor, the following written provisions, proof of which must be provided to City prior to the start of construction: a) Agreement by the General Contractor to comply with all state, federal and local laws and regulations, including, but not limited to the requirements of Iowa Code Chapter 91 C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection Law), Iowa Code Chapter 91 D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. b) Agreement by the General Contractor to provide to the Developer and the City no later than the filing of an application for issuance of a building permit, the names and addresses of each subcontractor and the dollar value of the work the subcontractor is expected to perform. c) Demonstration by the General Contractor that it has the capacity to meet all performance, and labor and material payment, bonding requirements relative to the Minimum Improvements. d) Providing to the City a certificate by the General Contractor's insurer that it has in force all insurance coverage required with respect to construction of the Minimum Improvements. e) Demonstration by the General Contractor that it has required all subcontractors to agree, in writing, that the subcontractor will comply with all state, federal and local laws and administrative rules and regulations, including, but not limited to the requirements of Iowa Code Chapter 91C (Contractor Registration with the Iowa Division of Labor), Iowa Code Chapter 91A (Iowa Wage Payment Collection law), Iowa Code Chapter 91 D (Minimum Wage), the Federal Fair Labor Standards Act, and the Internal Revenue Code. r 1 CITY OF IOWA CITY 4if mat 1NA51�COUNCIL ACTION REPORT 6. Quality Jobs. The proposed policy is that when a TIF project is based on the creation or retention of jobs, certain wage thresholds must be met to help ensure the City's financial participation would contribute to an increase in the average area wage. Committee discussion included the desire to make clear that this policy does not require that every job associated with a TIF project, such as those that might be created by the addition of a new retailer in a building, or the construction jobs required to build a TIF project, meet these standards. Rather, as a policy to incentivize the addition of high paying jobs to the local economy, a jobs -based TIF incentive would be structured using the thresholds of the State of Iowa High Quality Jobs Program. 7. Other public interests. The recommended policy recognizes that some non-profit activity and/or Investment in public infrastructure may influence additional private economic development activity, TIF may be an appropriate tool to further investment in Iowa City's cultural and/or natural assets. Understanding that TIF is made possible by the increased value in real property, and that most cultural organizations and public lands are generally tax exempt, a TIF project would only be possible by using increment from the district. Examples include: a) Arts and cultural activities or facilities b) Historic preservation c) Public improvements that serve as a catalyst for the economic development of the urban renewal area 8. Underwriting and application The following policies are designed to provide a consistent and transparent process for the review and analysis of all applications for TIF assistance. a) Complete application submission. b) Meet the °but for" standard: Each project must demonstrate sufficient need for the City's financial assistance, such that without It, the project would not occur. Every other financial piece of the project must be in place prior to the consideration of TIF. TIF assistance will be used as gap financing as determined through gap analysis. c) Method of TIF financing: The City reserves the right to determine the method of TIF financing that is in the best interests of the taxpayer. As such, the City strongly prefers the use of TIF rebates over the shortest term possible. d) Developer equity: Developer Equity must be equal to or greater than City funding. TIF assistance shall not exceed the amount of equity provided by the Developer. Equity is defined as cash, unleveraged value In land, or prepaid costs attributable to the project. e) Project based TIF: TIF for private developments must generate TIF increment sufficient to be self-supporting. Only in exceptional cases, will the City consider using district -wide increment. A clean copy of the Proposed TIF Policies follows, along with the four background memos previously provided to the EDC noted with a * above. Archived Economic Development rr CITY OF IOWA CITY '� COUNCIL ACTION REPORT Committee meeting minutes may be accessed online at: https:dwww.lcgov.org/ci y- govemment/boards/council-economic-development-committee. r CITY OF IOWA CITY N lr OTIOF OUTR�n MEMORANDUM Date: December 1, 2016 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: TIF Focus Group Report Introduction In early 2016, City Council updated its Strategic Planning Priorities and initiatives to include reviewing and consider amending the City's Tax Increment Finance (TIF) policy. Leading the effort, the Economic Development Committee directed staff to get input from a number of focus groups. This report summarizes input gained from those meetings in the last half of 2016. Focus Groups The EDC and staff worked together to form small focus groups of 5-7 people. It was important to get feedback from a wide variety of community members and the following 8 groups were formed: • Developers who have applied for may have received TIF in the past • Developers, architects and engineers who may or may not have participated in a TIF project • Members of staff and Boards of local taxing jurisdictions (County and Schools) • Community booster organizations: CVB, ICDD, Chamber of Commerce, ]CAD • Non -profits: Social service and worker oriented • Non -profits: Arts and Cultural oriented r Neighborhood Association representatives • Experts in or people with strong interest in Sustainability Each focus group meeting lasted about 90 minutes and was broken into 3 segments. During the first segment, staff presented a slide show explaining how TIF works, some recent TIF projects and an illustration of how Iowa City compares with other Johnson County towns' use of TIF. The next segment was a discussion of the slides and focus group members giving feedback about what they learned or feelings they already had about TIF. The last segment was intended to be a discussion about changes that could or should be made to TIF, those changes being relevant to each focus group's perspective. Themes from pre -Focus Group survey Each focus group member was also invited to complete a survey before attending the focus group meeting and the following are some themes that emerged. People felt they could use more information about TIF. There was some indication they felt they knew more than they actually did. There was a typical bell curve of people's overall feelings about TIF, skewing slightly favorable. In question 5, we asked participants to rank their preference of ways in which TIF has been or could be used in Iowa City. The two most favorable uses were 1) to invest in parks and improvements to riverfront areas, streets, trails, etc. and 2) to incentivize higher density development. When we separated the rankings of these uses by focus groups, the preference results were strikingly and perhaps predictably different. Themes from Focus Group meetings After every introductory PowerPoint presentation, people seemed to have learned something valuable. In almost every group, it was suggested that we do more to educate the community about TIF and get this information out to the public, especially at a time when there is not a political decision to be made about its use. Education about the use of TIF is critical to the public's understanding of its use. Several focus group members had a misunderstanding that TIF money is sifting in a fund somewhere. In the introductory PowerPoint, those who misunderstood initially, realized that in order for TIF money to be available to a developer, new property value must first be created, assessed, and 100% of the property taxes due paid by the owner. Only then, and as portion of those new taxes generated, is TIF money generated. Developers were critical of the design approval process and lack of clarity for what is required by developers to merit TIF. Sustainability folks and Developers had general consensus that LEED silver certification could be required of any TIF project. Development and social equity should be framed together and not necessarily as independent of each other. There are many unmet needs in the community. A couple of groups said we should use TIF more. Place -making, important to making a welcoming community, includes the provision of Arts, Cultural and Social services, but those organizations do not have access to TIF. Next Steps The EDC should now decide the next steps this policy review should take. Staff recommends the EDC review and discuss information in this report at your Dec. 13 meeting. After the review, the EDC can decide to seek additional information, such as sample policies from other communities, or if it has enough information, direct staff to proceed with drafting certain policy revisions for review at the next EDC meeting. Staff would be happy to provide additional information or begin to draft policy revisions as directed by the Committee. p.2 - TIF Focus Group Report Section 1- Summary of TIF Focus Group Survey taken BEFORE the meetings 1. Please rate your understanding of Tax Increment Financing good understanding 40.43%(19) very strong understanding (47 responses) little understanding 10.64% (6) understand basic concepts 40.43%119) 2. How deep in your understanding of TIF? (47 responses) For the questions below, and without looking it up, could you... 100% e0% 0 Yes 0 No 60% 40% 20% 0% The purpose of this 2nd question was to compare some specific actual knowledge of TIF with how well people thought they understood it in general — in the 1'tquestion. p. 3 - TIF Focus Group Report Explain the Explain what the Explain the difference INCREMENT source of Tax between the Give an refers to in Tax Increment Consolidated, example of Increment Financing Protected and any current Financinq? money? TIF levies? TIF policies? 100% e0% 0 Yes 0 No 60% 40% 20% 0% The purpose of this 2nd question was to compare some specific actual knowledge of TIF with how well people thought they understood it in general — in the 1'tquestion. p. 3 - TIF Focus Group Report 3. If you feel you could benefit from more information about TIF, what would be helpful? (30 responses) 1. Yes. 2. Info about other/alternative types of financing and info about how other cities/regions use TIF (how, why, where, when). 3. An example of TIF in Iowa Cit 4. What are the criteria used when determining the "but for" status whether the project would work with or without tIF? May TIF promects be "paid off' earl ? 5. Could this ever benefit arts organizations? Non -profits? 6. a one sheet of the details 7. 1 think I generally understand the source of TIF money, but it would be good to have a more exact understanding -- especially with regard to how much money is available for TIF use, and what (if any) other types of expenses (or temporary allocations of funds) compete with TIF for investment consideration. 8. To understand and be able to explain to others the fact that TIF projects, when done well, are an investment in the city's tax base. 9. My ignorance is near total, so anything would be helpful. 10. How the duration of the increment is determined. What specific criteria does City of Iowa City use for determining TIF eligibility? 11. The commitments Iowa City plans to make toward responsible TIF use and the different choices may in the past -- repayable obligations versus grants. 12. Botha general and detailed overview/summary 13. The answer to #3 (explain diff btw levies), re the different levies and TIF, would be useful to better understand. Also, why have Iowa City developers needed TIF to build structures downtown in a hot housing market with high rents? TIF makes the most sense to me when a developer is providing a public good, like affordable housing. 14. Is residential TIF appropriate for Iowa City. 15. On Levy information 16. Explain various uses, followed by local examples. 17. No particular information is needed on my part at this time, but all information that is shared is quite helpful, as it has in the past. 18. A general primer on how TIF is used in the area. What are the issues... 19. Gain a better understanding of the balance of growth in response to TIF vs tax revenue lost due to TIF forgiven area. 20. The justification as to why the City, besides a sparkling bond rating, lags behind other municipalities in using TIF as a means to incentivize and facilitate improvements and developments 21. For the general community, it would be to describe what makes an area urban blight. For downtown, I believe it is because it's non -conforming from a lot of standards that would be onerous without City support. Right? Also - the more requirements by City, the more City tax dollars go towards the project 22. A short 101 would be helpful. 23. What type of projects can it be used on 24. yes 25. Just an overall verbal description 26. Overview of what it is all about, how qualifies, etc. 27. The direct and indirect pay back from projects other than the ones I am involved in. 28. More info on what is feasible for TIF awards by project type and gap. 29. Clear and consistent understanding of what conditions would be put on the proposed development in order to successfully capture TIF. Much of the information that we got on our last project was so late in the process that we were unable to react to it. 30. What are the rules and requirements? It seems that every TIF awarded is different. p.4 - TIF Focus Group Report 4. In general, describe your feelings about Iowa City's use of TIF? (44 answered, 3 skipped) 100% 80% 60% 40% 209; 0% 38.6% 22.7% 11.4% (no label) 13.6% 13.6% very unfavorable ,, unfavorable neutral N favorable 0 very favorable I do not knovr enough about Iowa City's use of TIF to respond p. 5 - TIF Focus Group Report 5. Rank uses of TIF in order of preference (45 responses, 2 skipped) Tax increment financing is a financing tool made possible by an increase in taxable valuation that can be used to achieve a number of public purposes. It is used to revitalize a blighted or underutilized area of a city orto encourage economic development in targeted, previously undeveloped areas. It can be used to incentivize individual development projects to include features or elements of public benefit, such as affordable housing, Class A office space to attract new employers, higher energy efficiency, etc. It can also be used to finance public infrastructure, such as new parks, street improvements, and similar projects that would be a catalyst for private development, redevelopment and reinvestment in the surrounding area. Below is a list of ways in which TIF has been used in the past. Please rank these uses of TIF in your order of preference with 1 highest and 9 lowest. E1 02 3 4 05 6 07 08 09 0% 10% 20% 00% 40% 50% C 60% 70% 80% 90% 100% Notice above, that the darker tones of gray indicate higher preference and the length of the section of any color indicates the percent of folks who indicated that preference. You can see that more people ranked Creating Affordable Housing as #1 in the rankings than any other goal. You can also see that Incentivizing higher density development and Investing in parks and improvements almost tied for landing among most people's top 5 goals. p. 6 - TIF Focus Group Report ficiency These tables show the preferences of each focus group separately. Past TIF applicants and/or recipients �.�.: Attract Employers „»«.,. Higher Density Parks and Rivedpt nergy Efficiency M7 Historic Preservation ing " «C"�ousing Non -profits: Community booster oras «••P Attract Employers «• Parks & Riverfront t "M• ergy Efficiency g Higher Density �Lc Preservation Non -profits: Social service & worker oriented Attract Employers Higher Density in w'.LParks and Riverfronr " Affordable Hou;lpg rgy Efficiency ., ., . • ing ••�:' EMS Preservation ......... .... �a1�1S3 S Taxing Entities Neighborhood Association representatives p. 7 - TIF Focus Group Report ..�MIN Neighborhood Association representatives p. 7 - TIF Focus Group Report Uoday dna.9 snooj jLL - 8 •d Ix - mvwrwo[ - M a nmeye ♦ _, mwm,Wo' -meM .mY n[e♦�LL menet - —. a �[ ( f 9 ♦ [ E 1 0 u 0.e11Auaei u neenlro — u uae ea wetme"0 -T♦YM YMMeeI 'Y♦MeMm Immo �a[u r w _ wrr A3u huaoij 6. Do you have strong feelings about the types of projects TIF should be used for? If so, please explain. 1. To help blighted areas, not to improve areas that are already doing well 2. 1 think all TIF funding should be oriented strictly towards projects that have major/mainly public benefits. I don't think any of money should be used to incentivize development that has mainly private benefits. 3. Environmental) friend) ro'ects such as solar panels on ov't building and for low income housing. 4. Improve density, meet affordability standards, meet energy efficiency standards. 5. TIF should be used as a last resort and with the highest benefit to the general public. 6. Areas that are considered "blighted" have not seen economic development equal to the average of the rest of the city or count 7. 1 lived in tax -credit -funded housing in Kansas City when 1 was first out of college. The area was called the River Market and while the location was highly desirable (by the river), it had been used for decades for industrial purposes and needed reviving. The use of tax credits allowed people to buy the old manufacturing spaces and turn them into beautiful lofts, but the requirements of the deal were that it was then used for low-income housing. This income requirement made it possible for many artists and musicians to live in what would have otherwise been an unaffordable downtown space. While the private investors benefited monetarily, the city also benefited because the artistic uplift from those residents was so great, the area became known for music and funky spaces, which spawned new growth (cool cafes, galleries, restaurants with live music, etc). Iowa City has the potential to have a wonderful concentration of artists living downtown and having both a visible cultural affect and an eventual economic impact, but what keeps this from happening is the cost of rent and the lack of both affordable and desirable housing for young professional artists. My hope was that in some way, the River Front Crossing area could create some of this opportunity but also, know it must be a direct goal of development and marketed as such. Until we create spaces that are creative, interesting, and attractive to these types of people, we will continue to see creative and artistic'ftight' from Iowa City while at the same time facing the realities of an aging o ulation of donors and shrinking funding for artistic organizations. 8. An Arts Center would begreat! 9. TIF should be used to promote the public good, meaning, there need to be tangible, otherwise -unobtainable benefits behind any TIF project. 10. TIFs should be used to createjobs and office space. TIFs should not be used to create "affordable housing" that will be turned into student housing. 11. 1 am not in favor of subsidizing business with TIF. 12. Not necessarily. However, IRL, for example, is in my opinion, an example of bad TIF usage, as it is too aggressive. TIF should "plant the seed". I agreed with using TIF for the Marriott, but not necessarily for the whole of IRL. 13. 1 am primarily concerned with the use of TIF to subsidize moderately high to high end housing. I don't think the return in tax revenue offsets the opportunity costs of these projects. We can get more for our money. 14. Affordable housing, higher density developments, Park areas as catalysts for dev., attracting employers. 15. Given the widespread need for affordable housing in Iowa City/Johnson County, and the challenges to developers in building affordable housing, it is important to use TIF for this purpose. 16. Affordable Housing p. 9 - TIF Focus Group Report 17. To incentivize private development. 18. No strong feelings. 19. From an administrative standpoint, I don't think my opinion is needed. 20. Should be used for tangible infrastructure and area improvement. 21. Projects that benefit all and reinvest in our community as well as provide jobs and affordable housing opportunities. 22. It was intended as a tool for economic development 23. It should be used more frequently 24. High density projects in the core of downtown are the most sustainable approach to smart growth. So in essence, sustainability. It's unfortunate that TIF is politicized to stop dense prolects out of NIMBYism 25. Economic development 26. We should it to help create mon; affordable housing and create more residential development in underutilized areas 27. no 28. Preference should be given to basic sector industry that brings new money into the community. 29. Pro'ects that develop more tax basis for the city. 30. 1 have strong feelings about the financial analysis and gap determination 7. To what extent has Iowa City's use of TIF affected your organization? (47 responses) not 11.8 unfavorably %15% (9) Explain your answer, if you like... Drably 5%(9) .......a 46.81%422) 1. I'm on the Parks and Rec Commission. The TIF support the city is giving to developers could have been used for Parks and Recreation as well as many other needed programs). 2. Iowa City has used TIF well to expand the tax base and boost the economy with more dynamic housing and commercial property options in the downtown core. This has enriched local culture by making Iowa City more 3. p. 10 - TIF Focus Group Report 4. I'm unaware how and if TIF is being used for Riverfront Crossings. If it is, it is to great benefit of my neighborhood. 5. It sees that the reductions in tax valuation that result from TIFs have affected schools and housing the most. 6. See attached 7. TIF is better once the TIF is ended and we see the results. TIF impacts budget negatively in the beginning, but I feel that ultimately the positive impact outweighs the negative. 8. lost revenue to school district 9. Iowa City has judiciously use TIF and the result is a s 10. ICDD members are concerned about the lack of predictability with knowing what they can do with their properties. If they want to improve the properties and need public support, it isn't clear how to achieve it 11. We have been able to develop projects that have added greatly to the downtown and which we (an one one) could have developed without TIF. 12. We have benefited from TIF but I believe the TIF also benefited the community. I would say it has be somewhat favorable to our group. 8. What would you change about the use of TIF in Iowa City? 1. more environmentally favorable projects 2. 1 don't know enough to comment. 3. Restrict the use strictly to project that benefit the general public, is that achieve social, cultural or environmental goals. 4. 1 would not use it for builders who have the money to pay the taxes 5. 1 don't know. 6. Lesser amount of TIF to one project 7. More education to the public about the policies. 8. Use TIFs for their created purpose, area in need of affordable housing and economic development. 9. Minimal allowance for TIF on the development of parking lots and standardized apartments with minimal residency. 10. Not sure? 11. 1 don't know that much about the checks and balances that are in place, but in general, I think I would reduce restrictions on when and how it can b e used and give the city more authority to use TIF at its own discretion. It seems to only be used as a last resort, and I don't think it should have to be that way. In my opinion, TIF should be used every time the city will profit from the investment, with an eye toward the long term cultural impact, and while placing a high value on improving the cultural diversity, affordability and environmental sustainability of Iowa City. 12. To give people a better understanding of the benefits and to dispel the notion that it is simply a way to make the rich richer. 13. TIFs should not be used to for student housing. TIFs should be transparent. The public should kow who they are being provided to, including the members of the LLC and any gap analysis should be available on the city's website. Iowa City should stop using NDC and should do its own gap analysis. There should be no guaranteed developers fee. TIFs should not be used for what ultimately may be airbnb businesses. 14. nla 15. Very uninformed, so can't make any recommendations. 16. 1 need to learn more before I can speak well to that. 17. Greater emphasis on broad public benefit and not just focus on increased tax valuation as the end goal. 18. 1 would require a higher percentage LMI if commercial TIF is used where residential units are also part of the project. 19. 1 do not have enough knowledge to recommend changes in use. p.11 - TIF Focus Group Report C 20. Transportation and affordable housing. 21. Avoid the impression that TIF is benefitting a small number of developers. As the Council has already legislated, use TIF for public goods like affordable housing rather than high end housing. 22. 1 don't know enough about the current use in Iowa City. 23. Add a certified payrolls stem for workers. 24. Focus on small business development. 25. Unsure. 26. Use it for creating a business/housing/etc. that would not otherwise have been able to afford locating here. Disallow for rich developers. 27. 1 have no complaints 28. Don't know enough to comment. 29. Nothing. Careful, thoughtful and responsible use is critical. 30. Use to encourage more dense, urban housing downtown and to attract jobs 31. more frequency 32. Create stronger metrics in the TIF policy - likely have to give up some flexibility to do so. More predictable and less predictable, however, in the long run 33. The section of the policy which "developers will be expected..." needs work. The "expected results of the policy, as contained in paragraph 2, do not include affordable housing" or "wage theft" or "energy efficiency" or "high quality architectural design". Also need better information to public on what a TIF actually is/does -- and who benefits. 34. Be more aggressive with it. 35. not sure. 36. to promote job creation 37. More geared to residential development in outlying areas. 38. 1 would use it for more work force housing as the gap widens 39. 1 would not like Iowa City to use TIF the same way that Coralville uses TIF to encourage retailers to move within the greatercommunity/region. 40. The City Council's opinion and use of it. 41. nothing 42. up front funding projects that would not take place without it. 43. 1 would not prohibit up front TIF across the board. I would prefer the specific projects be analyzed. 44. 1 would maintain recent usage of TIF and/or expand. 45. I'd like to see more consistency in the criteria that needs to be met. Example: if LEED is going to be used, which sections are most applicable to the project? All are not equally appropriate. Also saying that every project would have x,y or z or it wouldn't quality isn't productive. Evaluating each project specifically and independently, allowing the developer to make his or her case on why they think it should be considered would allow new and possibly better ideas to be proposed. 46. no change 47. The requirements of "public good" that need to go with it. Just take a project and if it needs some financial help, do it. Don't force the project to become less financially feasible by adding affordable housing or a bowling alley. lection 2 —TIF Focus Group Meeting Notes TIF Focus Group #1— Developers who have gone through the TIF process 6/27/16 In attendance: Marc Moen, Kevin Digmann, Mike Hahn, Kevin Hanick, Charlie Graves, Ben Kinseth. Staff: Wendy Ford, EDC member, Susan Mims General impressions: p. 12 - TIF Focus Group Report • Too many unprofitable functions (community benefits) are forced into projects in return for TIF. • Approval process is onerous. • Comparing TIF use with other Jo Co towns, perhaps IC does not use this TIF enough? • NDC's process for evaluation is good, conservative. • NDC evaluation slows the process down. • "The odds of getting things done in IC are much tougher now." • City staff has a lot of leverage and seems adversarial to project development. Don't like redesigning a project for staff before it even goes to City Council. • City staff (including CM) have too much say in what gets to go to Council. • Negotiation is started after estimates are done, which is difficult since negotiated elements often adds costs. If we knew up front what was required, we could get the estimates more accurate. • Investors need minimum returns of 10-15% or there will be no investors. • Rebates do not account for the time value of money. • Time value of money is not a consideration in the long term impact of rebates. Staff is stingy. • Do not understand the gap analysis. • Hard to estimate construction costs, wait out the approval process and then have construction costs be higher by the time the project starts. • A'rebates only' policy can't support development of anything larger than Vogel House or Whiteway sized buildings. It is a mistake to take away the upfront option for TIF. • Drawings that are used to present concepts and ideas to staff will change as concepts move to construction. As prices go from estimates to real, between being approved for TIF and construction starting, design wraps up, final prices come in and adjustments need to be made to stay within budget. (Recalled issue with Hilton Garden Inn window size changing between concept and building drawings). • Staff is skeptical about little tweaks to design. • Developers do not have time to wait and wait for staff. (described an issue with a RFC FBC review). Feedback about the TIF application process: • There is a very strong sense of ownership by staff on design of project. • There should be an introduction to the basics of how to apply, what it takes, etc., once per quarter. Tom Jackson does a good job of explaining. • NDC's spread sheets and formulas are too complicated. Developer commented that his own were on $50K off and much simpler. • IF you do away with up front TIF, that will take many of us out of any big project. We couldn't do big developments downtown s/o upfront. There will be no big projects for 4 years. • The City needs to decide what it wants downtown for height, referring to the Van Patten site proposal —8 —10 —12 —14 stories? • Need to know what the playing field is. • Rather than force expensive new buildings to have affordable housing, allow older buildings to be renovated for some affordable housing and finance that, keeping provision of affordable housing costs lower. Do this with some of the older apartment stock. • LEED equivalent doesn't mean anything. Certification does.. Each project should be judged on its own merits. • Relax parking requirements for buildings downtown. • If using LEED, require certification to silver. • Simplify TIF policies so developers know what exactly is expected of them. p. 13 - TIF Focus Group Report • Gap should be allowed to be adjusted as late changes are made, sometimes changing the resulting gap be a few hundred thousand dollars. If changes due to City desires and time taken to review, then City should consider helping to pay for difference. • We are going to lose new development and new investments in this political environment. TIF Focus Group #2 — Developers, architects, engineers 6/27/16 In attendance: Steve Gordon, Brad Houser, Duane Musser, Jesse Allen, Dennis Jordan, Kevin Monson, Steve Rohrbach. Staff: Wendy Ford, EDC member, Jim Throgmorton General impressions: • Iowa City's use of TIF pales in comparison to others which is not necessarily a good thing. • TIF has gotten a black eye as is perceived as "giving away all the taxes." • The City should develop communications to help with understanding how TIF is generated. • It would be helpful to show how TIF money is generated and where it goes. • Get better at showing the upsides of TIF. • New taxes flow to City from new big project that would not happen without TIF. • The City has huge leverage opportunity to use TIF to ensure higher value projects that generate much higher tax revenues for the City of Iowa City. The City should not squander this opportunity and should use it— like good business sense —for long term goals. This is not money going out, but money that seeds new tax generation at much higher levels. TIF projects are long term investments. The City would not get and the developers could not do these larger projects without TIF. • Someone should educate the editorial writers at the PC about TIF. • Do a betterjob of showing where the money goes and how the money is used. • Costs of building residential units is going up faster than( ? I • Financial gap keeps getting bigger due to regulations, materials, labor, quality, environmental regs and inflation. Feedback on measuring sustainability in TIF proiects • LEED is a good measure because people know what it is. • LEED is good because it gets at quality of life issues in the built environment with attention to air, light, work space, etc. Sustainability should measure these other things. • Measuring solely on energy consumption only touches a portion of sustainability -- (for example,) our demand for electricity is tapering off and we will be decommissioning electricity generation plants. • quality buildings should be certified. • To get a LEED silver designation is no extra cost in quality except for the certification. • Solar photo voltaics should not be a requirement, because the area needed to ensure efficiency is so great. Solar simply does not work on small footprint, taller buildings effectively. TIF Focus Group #3 —Community Promotional Orgs: Chamber, CVB, [CAD, ICDD 7/22/16 In attendance: Nate Kaeding, Mark Nolte, Nancy Bird, Josh Sabin, Josh Sabin, Tom Goedken, Rebecca Neades. Staff: Wendy Ford, Geoff Fruin, EDC member, Rockne Cole p. 14 - TIF Focus Group Report General impressions: • Rhetorical question - What is lost by how Iowa City is not using TIF? • Should we aim for more having a higher percentage utilization of TIF. • Is there an optimum % use of TIF to ensure maximum economic development benefit? • What goals do you want to meet with new policies? • How bad do you want development? Insinuating more TIF would entice more development. • Conversation between some group members and Rockne. Are we going to expand or constrict? • Flexibility as opposed to predictability— is good (Rockne). • Discussion around perception that Developers are just raking in TIF money. More education needed on how decisions to help fund a development project happen. • Suggestion that we simplify message to: By doing this, we get that ... and don't use fancy charts. Feedback on what is worth rewarding with TIF • Economic Development is what should be done with TIF to grow the tax base. That provides the funding to do the other (social, environmental) things Council would like. Loading too many things onto the development getting the TIF makes it onerous. Let the development happen and use part of the TIF to accomplish the other goals. • Cedar Rapids is eating our lunch right now. We need to build urban density and live work opportunities. • Housing for workforce is key. • Developers need more certainty in the expectations they are to meet in a City -assisted development. • With regards to the percent of small amount of our total valuation used to capture TIF $, would it make sense to strategically shoot for a higher percentage? • The City needs to de -politicize TIF. • Affordable housing is hard -wired in now—that was one political hot potato that now is not hot. TIF Focus Group #4 —Taxing Entities (ICCSD and Johnson County) 9/19/16 evening In attendance: Steve Murley, Brian Kirschling, Josh Busard, Mark Kistler, Rod Sullivan, Lisa Green - Douglass. Craig Hansel (ICCSD CFO sent comments in). Staff: Wendy Ford, EDC member, Rockne Cole General impressions: what should TIF be used for • Amenities or Business? It's intertwined. If you have a great city, you'll attract companies that want to locate here. • Redevelop blighted area, better experience, better housing and jobs, cycle of prosperity. • Historic preservation, if it can get it done. • Quality of life. • What the community desires, but what the market is not producing on its own, i.e., elderly housing. • Does building tax base alone justify TIF? I don't think so. • Question: What would NOT get done if the city did not step in and help? • Should be project specific. • That there is no sunset on blighted areas is not good. Should be a sunset on all Economic Development- as well as Blight -designated areas. • Rich developers should not receive TIF. • Question about how TIF affects schools. Craig Hansel's memo summarizes that TIF has little negative impact on the ICCSD budget spending authority. The school aid formula allows the tax rate to float p.15 - TIF Focus Group Report up in order to compensate for the loss of TIF valuation. District patrons are paying a higher overall district tax rate as a result of TIF. Any entity considering the future us of TIF or expanding an existing TIF area should give this fad due consideration. • Further information on the state's back fill was illustrated and discussed. What would you change? • Longer notice for consultation with county and school district reps. • Property tax appeals should not be allowed in TIF districts. • Minimum assessments should be required on TIF projects. TIF Focus Group #5 — Non-profit orgs —social service and worker oriented 9/21/16 In attendance: Maryanne Dennis, Crissy Canganelli, Sally Scott, Tracy Achenbach, Royceann Porter, Royce Peterson, Jesse Case (Charlie Eastham observing) Staff: Wendy Ford, EDC member, Susan Mims General discussion: • Why not use TIF to do 100% affordable housing projects? (Described having to create NEW value to generate TIF. Person did not realize this is where TIF comes from.) • Discussion about whether entire subdivision could be done with TIF — (Yes, but a lot of 'ifs'. The spirit of the TIF legislation was more about urban blight.) • We should pay attention to unconventional allies, such as the CVB. They did not realize that affordable housing was such an issue until CWJ came and talked to them. • Higher density affordable housing near transportation is very important. • It is important to grow UP instead of OUT to stem sprawl. • We need to be more creative with transportation issues. Can TIF help pay for some of those? • Service sectorjobs are not all accessible by public transportation • We need a YIMBY committee — (Yes, in my back yard). We need to dispel affordable housing myth o This will need Education, videos, PSAs. • With regards to affordable housing requirement in Riverfront Crossings, where will any kids living in AH in that area go to school? Where would they attend school? • TIF should be used to support daycare close to workers in low income jobs. • How best can we tell this story? Susan said she and some of her colleagues see two ways of looking at TIF: 1) Growing the tax base —through gap analysis, ensuring development of projects that grow the base that can help fund some of the social equity things we want. 2) Enhancing Social justice — by leveraging the tax -base -building projects, in part, to help with social justice . Going forward • Affordable housing, transportation and daycare are important issues for all workers; critical for lower income workers. • Development and social equity should be framed together and not necessarily as independent of each other. There are "cross-over" elements to each. • The TIF presentation and slide slow should be offered to the public. Ask people to request this presentation. p. 16 - TIF Focus Group Report The representatives from the Labor group presented Model Bid Specifications for TIF recipients for us to include in all development agreements. Contains 4 points. 1) Compliance with Tax Obligations (fed, state, local). 2) Use of Leased Employees and Independent Contractors — all contractors and subs must classify workers as employees. 3) Compliance with Registration/Licensing requirements — comply with Iowa's Construction Contractor registration requirementss as a condition of submitting a bid. 4) Disclosure of subcontractors and dollar value of subcontractor work upon bidding. (document on file for details.) TIF Focus Group #6 — Neighborhood Association representatives 10/17/16 In attendance: Derek John (Lucas Farms), Eric Jones (Creekside), Nancy Carlson (College Green), Paul Swygard (Miller Orchard), Tim Weitzel (Longfellow), Mary Murphy (Normandy Dr.). (not sure, but I don't think Jerry Hanson (Wetherby) or Jim Walter (College Green) made it to the meeting.) Judy Pfohl was invited but not able to attend. Staff: Wendy Ford, EDC member Jim Throgmorton General feedback after slide presentation. • There are needs in the community that are not being met, such as grocery stores within walking distance in some areas. What does TIF do to help meet these needs? • Life is hard as a single working mother with teenagers. TIF policies should address some of these unmet needs. • Feels there should be more transparency in the financial gap analysis. Not just the NDC report, but the spreadsheets that provide the basis for the recommendation. Does not feel NDC should be doing the gap analysis as they may have some hidden agenda. Why doesn't staff just do the analysis? • Iowa City should do more active marketing of itself as a place to live and work. • Likes the way Iowa City was in the 60s and feels downtown has become too gentrified. • Seems downtown is now only a place for millennials as opposed to a place for the whole community. • We should find ways to keep the young people here. • We need to have a vision and to market ourselves • The comprehensive plan should be the vision. • We need funds for smaller economic development projects. • Iowa City is changing too much. To be a small town is to be more versatile. What public benefits do you think the City should leverage with TIF? • We need to be friendlier to businesses. • We are not going a good job marketing ourselves. • We need to increase density. • We need to benefit all people including low income and elderly • We need to protect residential neighborhoods. • We need to ensure better balance among/between all income, racial and ethnic groups. • Different housing types should be integrated together. • Promote successes such as neighborhoods changing for the better. • Affordable housing is now required and built in: not negotiable. • Required green space needs to be seen by the public. p. 17 - TIF Focus Group Report TIF Focus Group #7 — Non-profit orgs — mostly arts and cultural oriented 10/26/16 In attendance: Andre Perry (Englert), Andrew Sherburne (Film Scene), Shane Schemmel (Summer of the Arts), Alicia Trimble (Friends of Historic Preservation), Bob Richardson (Arts Iowa City), John Kenyon (City of Literature), Matthew Steele (Little Village magazine). Andrea Wilson (Writers House) was not able to attend. Staff: Wendy Ford, EDC member Jim Throgmorton Karen Garritson, NDC, also in attendance. General impressions • Surprised by stark differences in use of TIF between Johnson County towns — IC so low. • Now I better understand the relationship about how TIF funds are generated. No development = no TIF dollars. New development brings opportunities to use TIF. • Original use of TIF derived from Federal funding program designed to alleviate blight. • Questions blighted designation for downtown now. We are missing opportunities where housing and economic development could and should be taking place. Discussion about what the city should subsidize • The Strategic Plan should dictate what you want to subsidize. • Have a menu of features/benefits that have to be checked off including some "must meet' features. • Overlooked populations (kids and parents — downtown not family friendly). • Asked what drives people out of downtown now— answer drunks and "party people." • An arts center downtown with gallery, classes, alternative to non -University of Iowa arts related space would help. • There are multiple faces of downtown including but not limited to party people. There the library, film scene, playground, free concerts, etc. What we need is to coexist better... perhaps better marketing, too? • Historic preservation is important for place making. • Support cultural things. • Use TIF to help strike a balance for all of these things. • There are varying perceptions of downtown. • Awareness is key; be more welcoming. • 'This is off the TIF issue, but great social and cultural services help CREATE the welcoming community we want to have. There are lots of non -profits out here trying to do this and bring people together." • Focus on community engagement and getting the community together. • Perhaps TIFs could be used for grants. • TIF Focus Group #8 Sustainability 11/2/16 evening p. 18 - TIF Focus Group Report In attendance: Martha Norbeck (C -wise consulting), Tom Carsner (IC Sierra Club Political Chair), Becky Ross and Ann Christenson (100 grannies), Steve Long (ULI rep), Liz Christiansen (UI Sustainability), Peter Rolnick (IC Climate Advocates), Liz Maas (Instructor, Kirkwood), Jim Trepka (IC Sierra Club Chair). Staff: Wendy Ford and Simon Andrew, EDC member Rockne Cole General Impressions • "I knew nothing" and learned a lot from the slides. • The percentage of TIF funding that goes towards a project is too high — i.e. Chauncey is 25%- it should not be allowed to go higher than 10%. • Costs are higher on larger developments. • There should be a bonus for adding density — stems sprawl. • TIF should reward developers for doing the right thing. • Can there be a fee on carbon? Maybe no TIF if a project is not carbon neutral. • Minimum standard could be that a project has to exceed Energy Code by 20% just to get you in the door for consideration for TI F. • Projects in flood zones should not be considered for TIF. • Buildings should at least, be carbon neutral. • Comment made that the City doesn't follow energy sustainability — why should developers. Comment in return that Eastside Recycling, Firestation 4 new buildings are LEED. • Energy performance, as opposed to energy efficiency should be valued higher. Use of renewable energy should be considered higher value than just high efficiency windows. • Tall buildings' cut back on sun. Black Hawk minipark could not be have a sun tree because of this. • Loss of sun by new buildings blocking sun should be considered. • (From one woman invited who could not attend): Overall, I think we should only provide TIFs for project that have significant positive impacts for the public good. That could be, for instance, through the provision of affordable/public housing units, environmental improvements projects (eg a creek restoration, renewable energy production, streetscape improvements), or structures that go above and beyond building codes and regulations. • (Sent later by a person who had attended): I had an additional thought that I would like to share: One of the challenges of sustainable development is the conflict between long-term and short-term thinking, and the related fact that developers don't currently have a strong incentive to make apartments sustainable since doing so reduces future costs for the renter but not for the developer. Perhaps part of the "guide" to how we do TIF should implicitly include trying to minimize these obstacles to sustainable development (which are built into our current economic system) in the broadest way possible. Discussed Chicago's draft Menu of Sustainability items • Interesting way to present options p.19 - TIF Focus Group Report Discussed USDN/IEDC definition of Sustainable Economic Development The investment in business, social, built and natural environments that creates increasing prosperity for all, now and in the future. • Would like better if the word business came after "social, built and natural." Puts too great an emphasis on business. • People, planet, profit =the correct orderto think about things. • "resiliency" would be a good word to use describing our ability to handle change • Like the word "systems." • Interesting that "Economics" has such a bad connotation, when the root of both Economy and Ecology is "Eco", meaning "Home." p.20 - TIF Focus Group Report I � CITY OF IOWA CITY UNESCO CITY OF LITERATURE CITY OF IOWA CITY MEMORANDUM Date: March 10, 2017 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: TIF Policy Review Introduction In January of 2016, the City Council established a set of seven Strategic Planning Priorities, including one to Promote a Strong and Resilient Local Economy. In support of that planning priority, Council listed seven initiatives, including one to review and consider amending the City's Tax Increment Finance (TIF) policy. The Economic Development Committee asked staff to frame key policy decisions. The goal is to tailor a set of TIF policies that offer a balance of specificity and flexibility. Ideally, policy decisions will align with Strategic Plan objectives, other City planning documents, and standard measures such as the state's high quality jobs thresholds, blight remediation and expansion of tax base. Staff conducted eight focus groups between June and November, 2016. Focus groups included developers, architects, engineers, members of labor and worker justice organizations, members of social service oriented non-profit groups, members of community promotional non-profit groups, taxing entities and others. A lengthy report was presented to the Economic Development Committee (EDC) at your December 13, 2016 meeting. Feedback from the focus groups indicated that those associated with the development process were critical of the project and design approval process in part because of a lack of clarity for what is required for a project to merit TIF. People with expertise in sustainability seemed to reach consensus that LEED Silver Certification could be required of most traditional TIF projects. It was also noted that place -making is a public benefit, important to making a welcoming community, and includes the provision of Arts, Cultural and Social Services yet it is difficult to fund these public benefits using project -based TIF. Upon reviewing the focus group work in December, 2016, the EDC asked staff to solicit additional stakeholder input on key decisions for the next meeting. The issues EDC members identified for further discussion include building height and form, sustainable features, and the process through which incentives are considered. Local organized labor leaders have also reached out to the City with recommendations for TIF policy revisions. Staff conducted a roundtable to refine the focus group input. This roundtable consisted of three architects and a developer. Staff also communicated with a local labor representative to ensure a solid understanding of their issues. This memo organizes the economic development issues addressed during the review process, provides supporting information from community focus groups and staff and presents policy decision points for each. October 30, 2017 Page 2 1. Balancing building height and form with building economics Deemed the most important policy by developers and architects, the building height issue downtown is critical because it determines more than the aesthetics of new downtown buildings. It shapes the residential population and thus, downtown diversity because of the economics of the buildings themselves. Developers note that the vast majority of student housing developers do not seek TIF because student housing projects cash flow on their own and need no external support. In Iowa City, student housing developments tend to be 4-7 stories tall, the maximum allowable with wood frame construction. There is one recent exception in the RISE at Court and Linn, a large development with a high rise tower dedicated to housing more than 500 students. Large or small, the market value for student housing developments is so high they are able attract enough investors and debt to avoid a financial gap. The economics are simple: smaller buildings are less expensive to build requiring only wood framing, and are very lucrative because of their premium downtown location and the ability at times to attract large rents from people living together. Developers indicated that there is very little market for permanent residents in smaller buildings downtown. First, the student -aged population can typically outbid other segments of the market. Second, the older demographic wants dwelling units in buildings that are differentiated from the student population, with amenities, other permanent residents and, often with views found in higher rise buildings. Developers say there might be a market for permanent residents in mid -rise buildings, but the economics of mid -rise buildings are challenging. Generally, the requirement for steel construction begins when the building exceeds 5 stories, essentially doubling framing costs per square foot. Limiting a building to 7 or 8 stories does not allow for enough additional income to pay for the added expense of the steel frame building without incentives. When there isn't enough income, the value is lower and so is the appeal to investors and bankers, which creates an unnecessarily large financial gap per square foot of building. As the building gets taller, the market value begins to be high enough to attract investment and banker interest, thus shrinking the financial gap per square foot. Developers point out that of more than 2,000 housing units in downtown Iowa City, only 75 condos are occupied by permanent residents; fewer than 4% of all downtown residents. The other 96% is predominantly student -aged persons. Each new permanent resident downtown adds to the diversity that we have been working to encourage. By allowing only mid -rise buildings in mid - block parcels downtown, the diversity we seek in our downtown population will be harder to achieve and the financial gaps will be more expensive per square foot. More importantly, the development community may likely focus on the lucrative student market thus not even attempting to work with the City on TIF projects. Policy Decision points: a) Determine a clear, predictable policy on building height for TIF projects. October 30, 2017 Page 3 Is the height permitted by the underlying zoning code sufficient or is there another guideline the Council wishes to use? b) Determine how to consider architectural impact on adjacent properties. Is staff design review sufficient? It is important to note that most projects are not fully designed at the development agreement phase. Changes are often necessary throughout the design process; general compliance with initial concepts rather than exact adherence to early design phase documents can be used. C) Promotion of Historic Preservation and reinvestment into existing building stock. Project -based TIF depends on substantial increases in property value. Often times this cannot be achieved when density is not increased. Thus, Council may want to consider district -wide TIF applications for renovations or less time consuming processes such as tax abatement. 2. Sustainability Features There was consensus that LEED, while imperfect for every project type, is a good standard to achieve for most new construction. In discussions with architects who design to LEED standards regularly, there was consensus that LEED Silver Certification is the appropriate level to require for a downtown building project, with some exceptions based on project scope or location. Focus group participants agreed that LEED is a good standard because it covers a wider group of metrics than just energy efficiency and thus, leverages higher quality projects. Buildings earn LEED points across a range of categories such as site, water, energy, materials, indoor environmental quality, etc. One concern from a roundtable member after our meeting was that a building could achieve LEED Silver without scoring any points in energy efficiency, so her suggestion was to require LEED Silver certification with a minimum of 8 energy efficiency points. For those projects that would not be appropriate for LEED Silver certification (perhaps outside of downtown and RFC or rehabs of historic buildings), one idea was to require documentation of energy efficiency equal to 8 LEED points. The 8 point standard was not reviewed and addressed with other focus group members. Roundtable participants also noted that a metric other than LEED may be needed for manufacturing facilities; their discussion applied generally to residential and mixed use buildings. They agreed that while downtown projects should be able to achieve LEED Silver, achieving LEED Gold certification would be a greater burden financially, requiring more financial gap filling by the City. Other measures of sustainability were also discussed, such as simply exceeding the current energy code by 20%. This could be a measure or option available to developers when projects are not well-suited for LEED. Policy Decision point: October 30, 2017 Page 4 a) Determine sustainability standards to require for TIF projects. Options may include LEED Silver, LEED Silverwith a baseline for energy efficiency points, or for those projects not suited for LEED, 20% or greater than energy code requirements, if applicable. 3. Affordable Housing In May of 2016, Council adopted a resolution approving inclusion of affordable housing goals in Economic Development policies. The following policies are for new construction projects that include residential dwelling units and have requested City financing: A minimum 15% of the residential units must be affordable for a minimum of 20 years, or the term of the developer's agreement, whichever is longer. It should be noted that only the gap between affordable units required through economic incentives and those otherwise required by code (for example, the required 10% in Riverfront Crossings) will be considered for City financing. For rental housing, dwelling units shall be targeted to households at a maximum of 60% Area Median Income (AMI). The City may negotiate dwelling units being designated for households at a lower AMI. For owner -occupied housing, dwelling units should be targeted to households at a maximum of 110% AMI. The City may negotiate a fee -in -lieu of on-site affordable housing with the fee to be used for affordable housing purposes (for example, grants/loans for construction of affordable housing, down payment assistance for income -qualified households, etc.). Fee -in -lieu of negotiations currently allow the flexibility for providing affordable housing units off-site; off-site provision is something Council may consider addressing more explicitly. Policy Decision point: a) Determine any refinements to above policy such as flexibility in the location of where affordable units required for a project may be alternatively located. October 30, 2017 Page 5 4. Social Justice Wage The In November of 2015, Council adopted a resolution aimed at ensuring the City will not contract with any person or entity who has participated in Wage Theft by violation of the Iowa Wage Payment Collection law, the Iowa Minimum Wage Act, the Federal Fair Labor Standards Act or any comparable state statute or local ordinance, which governs the payment of wages. Contractors in TIF building projects Representatives of organized labor have submitted four recommendations for changes to the City's economic development policies. The recommendations address organized labor's concerns regarding contractors and subcontractors who use leased employees, sometimes known as independent contractors. The concern is that an independent contractor can operate essentially as an employee without the protection and benefits afforded to employees. The labor representative made four recommendations for any project involving TIF. Staff understands the goals of these recommendations, and believes to some degree the City's economic development policies can help meet these objectives. However, there are significant enforcement challenges and in some cases existing enforcement mechanisms better suited to meet these goals. The four recommendations with staff commentary are listed below. i. The requirement that all contractors and subcontractors be in compliance with all tax obligations (workmen's comp, payroll, corporate, etc.); Staff comment: Annual rebate certifications required by the City could also require a statement from developers that to the best of their knowledge, all tax obligations have been met. However, existing state and federal enforcement mechanisms are more appropriate, as there may be cases in which there is a dispute as to whether obligations have been met. ii. That there be no use of leased employees (sometimes known as independent contractors); Staff comment: Monitoring of this requirement would be extremely challenging, and the goal of this recommendation could be partially met with the inclusion of items iii and iv below. iii. That all contractors be in compliance with registration/licensing requirements at the Iowa Workforce Development's Iowa Contractor Registration; and iv. All subcontractors are disclosed. Staff comment on recommendations ill and iv: Not all contractors and subcontractors will be known by the developer at the time of the development agreement. A policy could October 30, 2017 Page 6 include that the City, at its sole discretion, may request disclosure during the construction process. Violations of State registration and licensing requirements are more appropriately enforced by the State. Policy Decision point: a) Determine whether to adopt any of the recommendations above. 5. Other requirements When certain projects are presented that align with other stated City goals and priorities, related standards apply. Below are four for your consideration. 1) Quality of jobs created and/or maintained. An EDC member asked for clarification on the definition of high qualityjobs. The City has required that for a project to be awarded incentives based solely on jobs, the jobs must meet the same quality standards as those used by the State of Iowa High Quality Jobs Program. Each year, the State updates its Average Wage and Laborshed Area data. Traditionally, the City has also required that mostjobs to be created meet or exceed 120% of the average, which for FY17 is $24.17 per hour. This threshold could be adjusted down to the average or to any other point the Council feels is appropriate. 2) Class A office space. Historically, the City has required that new office space or office space in an old building on first floor or above be built or renovated to BOMA (Building Owners and Managers Association International) Class A standards (see below for definitions): Class A Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence. Class B Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price. Class C Buildings competing for tenants requiring functional space at rents below the average for the area. 3) Hotels. The City views hotels positively because of the visitor population they attract and the hotel motel tax they generate. Visitors spend money and their economic impact is significant. The 7% hotel tax on every room -night sold is also a boon to the community, adding up to more than $1 million per year in Iowa City. October 30, 2017 Page 7 4) Community engagement. Iowa City values the tangible aspects of new buildings, new jobs, new office space, historic rehabilitation, etc., There may be another measure to consider too: the level of community engagement of the entity requesting TIF. Exemptions may include a company offering ajob training program or willingness to improve and maintain a public space. You may want to consider stating this value in an introductory paragraph about TIF policy. 5) Public Improvements. You may want to consider a statement in the policy as it relates to the use of TIF for Public Improvements. TIF revenues can be used to forward the goal of ensuring a vibrant and walkable core. Stating this in the TIF policy reinforces the link between public improvements and economic development with projects such as the pedestrian mall renovation and/or streetscape improvements. Likewise, catalyst projects, such as the Riverfront Crossings Park that will drive the private redevelopment opportunities in the neighborhood would be another means to further economic development activity in the Riverfront Crossings Area. The public improvements category could also encompass the Arts, a significant component of place making and arguably, an economic development catalyst. Policy Decision points: a) Determine whether to adopt a wage threshold for incentives based on jobs alone. b) Determine whether to specify that any office space in buildings receiving incentives meet BOMA Class A office standards. G) Determine if we want to consider prioritizing hotels, assuming a positive market study showing need. d) Determine whether to state community engagement is important to prospective TIF recipients. e) Determine whether to make a policy statement about the use of TIF for public improvements serving as economic development catalysts. 6. TIF Mechanics 1) Rebate vs. upfront TIF. The EDC has previously stated a preference to grant TIF rebates. The reason for this simple: it puts the majority of the risk on the developer. The project has to be successfully built, meet taxable valuation requirements and pay property taxes in order to receive the first rebate. Conversely, if the City grants TIF up front, the funds are spent and there is no guarantee that the project will be built and pay taxes, generating the TIF to repay the City's up front financing. As a safeguard against the possibility that TIF would not be generated from a project granted upfront financing, the City has used Minimum Assessment agreements to ensure that property taxes from developers' other property holdings will be used to repay the City when upfront TIF is granted. At the Developer roundtable, a concern was raised that without upfront TIF, more significant projects will not happen because they will not be able to attract the necessary financing. This, October 30, 2017 Page 8 in turn, will feed into the diversity problem noted in the building height discussion above. There was discussion that perhaps the size and scope of projects could determine eligibility for upfront TIF, but there was no consensus on what size or scope to merit upfront financing might be. It may be appropriate to consider additional public benefit for any upfront TIF. 2) Developer Equity. The EDC has historically required that Developer Equity be at least equal to the TIF, ensuring that the developer has as much 'skin in the game' as they are asking from the City. Developer equity does not include project debt. This has proven to work well and you may wish to consider keeping the policy going forward. 3) Length of TIF term. The length of a TIF term, whether in the form of rebates to the developer or repayments to the City for funding upfront incentives, has been determined by the need demonstrated in the financial analysis. A policy you may wish to consider would be whether to cap the length of time a TIF can be allowed or remain flexible, depending on the project. Policy Decision points: b) State whether rebates or upfront are preferred or not and under what conditions, if any, upfront TIF may be granted. C) State whether Developer Equity should be equal to the gap filled by TIF. d) Determine caps, if any on term length for TIF. We will discuss these policy decision points at your meeting on March 23. If you need any background information, please feel free to email or call me (wendy-ford(&iowa-citv.org: 319-356- 5248). 1 MR CITY OF IOWA CITY NESCO CITY OF LITERATURE CITY OF IOWA CITY MEMORANDUM Date: April 20, 2017 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Excerpt of memo regarding LEED for TIF Policy discussion TIF Policy: Sustainability Policy focus: New residential and mixed use building projects in the City -University Project 1 Area shall be LEED Silver certified (this area is also referred to as downtown & Riverfront Crossings -- see Exhibit B). Building renovation projects would not be required to be LEED certified. Remaining considerations: During the policy review process, a local architect specializing in LEED suggested that TIF projects be required to achieve at least 8 of their LEED points in the Energy and Atmosphere' category, noting that a new building located downtown could fairly easily achieve LEED Silver without having earned any points from the Energy and Atmosphere category. Following the committee's discussion on LEED, staff was directed to research the impact of requiring 8 points in Energy and Atmosphere. Staff met with the above mentioned and two additional local architects, whose firms have built many LEED certified buildings in the region. Of the three, two think LEED silver certification is appropriate and one thinks that money saved by not certifying would allow the developer to purchase even greater energy efficient heating, cooling, windows and lighting packages. A summary of our questions and the answers follow. 1. Why 8 points vs. fewer or more? Each of the three architects thought 8 points was a reasonable stretch goal. Since this is the Energy and Atmosphere category, and MidAmerican is the local energy provider, they can model the cost/benefit in the conceptual design phase, providing an estimate of the initial cost and long term benefit. Within the Energy and Atmosphere category (LEED v.4), there are a total of 33 LEED points possible, 18 of which are available in the 'Optimize Energy Performance' subcategory; similarly, up to 3 points are available in the ,on site renewable energy' subcategory; thus, 8 points seems appropriate if we are interested in modifying a nationally accepted standard for downtown Iowa City. LEED is intended to be a holistic approach to sustainability, with categories already weighted in the scoring mechanism. It is possible that requiring additional investment in one subcategory may divert investment in a different LEED scoring category. However, if this is the priority of the EDC, it appears to be an achievable goal. ' There are seven categories from which buildings score points toward LEED, LEED silver, LEED gold or LEED platinum certification. Those categories include a) sustainable sites, b) water efficiency, c) energy and atmosphere, d) materials and resources, indoor environmental quality, e) innovation and design process, and f) regional priority credits. May 18, 2017 Page 2 2. How expensive for developers is it to implement energy savings elements? Lighting, heating, cooling and window "packages" are part of any building project. Any combination of low to high energy savings on these project components can be bundled together and modeled for the owner to understand the impact and return on investment any of the packages would have on the project. Per our architect sources, and in generalized terms, energy efficiency packages pay for themselves in 5-7 years. One local architect said the long term benefits include the energy savings in operating the building, and perhaps more importantly, the higher value commanded by an energy efficient building. An energy efficient building will be more attractive to investors in the future. 3. What are the costs of the LEED certification process? The short answer is "it depends on the project." One local architect estimated for Silver, the costs can be 0.5% to 1% of the total development cost (TDC) and for Gold —1% to 2.5% of TDC. Another local architect estimated costs for Silver range from 0.5% to 0.75% of TDC. Facilities.net cites a 2003 study by KEMA, an energy consulting company, on new construction costs of four project types in California. Despite the age and limitations of project type in the study, they continue to be among the most commonly cited, where TDC premiums to achieve the four certification levels are as follows: LEED Certified: 0%— 2.5%; LEED Silver: 0%-3.3%; LEED Gold 0.3%-5%; LEED Platinum 4.5%-8.5% (all of which average 3% including Platinum and 1.85% including all levels except Platinum). The Facilities.net information summarizes the answer to how much the LEED premium costs, by saying that if LEED certification is pursued from the project beginning, developers should conservatively budget 2% for construction costs and $150,000 in soft costs for LEED Certified, LEED Silver and LEED Gold. Staff recommends that all TIF funded new construction in the City -University Project 1 Urban Renewal Area (C -U area) be LEED Silver certified. For all renovation projects and projects outside of the C -U area, LEED certification and/or other efforts to help the City meet its stated carbon emission reduction goals will be highly desired, but not required if other factors provide sufficient community benefit. Staff is hesitant to recommend modifying the weighting of a national certification tool, but should Council want to require it, it does appear doable. r �.pL' CITY OF IOWA CITY MEMORANDUM Date: July 13, 2017 To: City Council Economic Development Committee From: Geoff Fruin, City Manager Re: Downtown/Riverfront Crossings Building Height Map Introduction: The City Council Economic Development Committee requested clarification regarding the development of the 'building heights map' found on page 106 of the Downtown and Riverfront Crossings Master Plan. Below is a summary of the map's purpose and development. Purpose: The Downtown and Riverfront Crossings Master Plan includes a number of recommendations that were included in order to provide general land use guidance. The map on page 106 was included to illustrate the potential heights of buildings that could result from the land use recommendations contained in the plan. The map was intended to be viewed in the context of the comprehensive plan language; the Downtown District recommendations are contained on page 54 — 56 of the plan. However, it was not intended to be a regulatory tool. It was intended that the comprehensive plan language and recommendations would be used to inform the development of a form based code that incorporates the public input that was generated throughout the planning process. As recommended by the plan, a form based code has been adopted for the Riverfront Crossings District, but has not for the Downtown District. The plan identifies recommended next steps on page 116. Development: The map was generated by the consultant, using existing conditions as the starting point. Potential development opportunities were identified and heights were assigned to these parcels by the consultant using the guidance provided in the comprehensive plan. A public downtown visioning workshop helped to inform which development opportunities were identified. The identification of potential development sites incorporated the presence of historic buildings, location within the context of downtown and individual blocks, the size of the property, and development proposals being considered at the time the map was drawn. October 30, 2017 Page 2 The plan notes on page 52 that, "it bears emphasizing - the Development Opportunities identified on the following pages are conceptual in nature. Like their predecessors in previous planning efforts, their value is to identify visions and ideas for specific areas. Successful visions will endure, but details will change and evolve as projects are implemented [emphasis in the original]. The plan is simply a vision, highlighting certain areas. The decision to redevelop is ultimately up to the property owner. Likewise, any areas not shown as redeveloped, could have ideas implemented." Public Input/Review: As noted above, the projects identified in the Downtown District section of the plan were informed in part by a downtown visioning workshop. The broader master planning process included other workshops that were not solely focused on the Downtown District. A three day design charrette was held during which the development opportunities identified in the various subdistricts of the plan were vetted. An open house was held on October 1, 2012 in which the entire plan was presented. The downtown section of the presentation focused on the opportunities identified on pages 54 - 56 of the document and the building heights map was not addressed nor displayed in the PowerPoint shown at the open house. Maps from the plan were displayed in the lobby for the public to view during the open house. A poster containing the land use, building heights, parking, and special requirements diagrams was displayed in the lobby (see attached). There were also two public hearings of the entire plan at the Planning and Zoning Commission and two at the City Council. Staff does not believe that there was specific attention or scrutiny of the building heights map at the Planning and Zoning or City Council meetings. A great deal of attention was given to building heights in the Riverfront Crossings District form based code adoption process, however, that did not include the downtown area. land use diagram building heights diagram Ar -T - 'Displa* at open house 40- '� I r UMwNry 114 S4tlyMta BauMary 0 I e ` � 1 r d parking diagram special requirements diagram it ' o�sa"erarure�� __j�� 'u'I "IIM.rV sTreecs&smrelrons nm.ymea •t'�"i s,�zwi, �r wm,e varkma �� RYUYeENM1iISmrtM1m, - .. ,nor• J 0 • - - ' _— i -..� • - _ 11 �Iji CfOSsing9 CITY OF IOWA CIN CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319)356-5000 (319)356-5009 FAX www.icgov.org Late Handouts: Information submitted between distribution of packet on Thursday and close of business on Monday. .................................... man........... one ......... Owego ...... ............ Consent Calendar 4d Resolutions and Motions Item 4d(9) Data Driven Justice Agreement — See redlined update Exhibit A 4f Correspondence Item 4f(4) Bill Ackerman: Nov. 21 work session — Lusk Avenue Abomination Regular Agenda Item 6a S. Gilbert Street and McCollister Boulevard (Preserve at Sandhill) — See additional correspondence 8 Revised TIF Policies — See additional correspondence Item 9 Rental Permit Requirements — See additional correspondence r miffffll Kellie Fruehlin From: Martha Norbeck <norbeck@cwise.com> Late Handouts Distributed Sent: Friday, November 17, 2017 1:OO PM To: Council Subject: Request for amendment to proposed TIF policy Attachments: TIF Policy Amendment Request 11.15.17.pdf (Date) Please find attached a letter regarding the sustainability portion of the proposed TIF policy. Karyl Bohnsack, Executive Officer of Greater Iowa City Home Builders Association has provided edits to the attached letter. Martha Norbeck, AIA, LEED AP Owner, C -Wise Design and Consulting 906 S 7th Ave, Iowa City, IA 52240 319.621.4168 www.cwise.com Date: November 15, 2017 To: Members of Iowa City Council Re: Proposed Tax Increment Financing Policies Dear Council Members, In discussion with stakeholders, members of the Greater Iowa City Area Home Builders Association asked whether or not the National Green Building Standard (NGBS) would be an acceptable compliance path with the sustainability goals of the proposed Tax Increment Financing Policy. The undersigned understand the intent of the Sustainability section of the Proposed TIF policy is to require a rigorous third party verification system to support the public benefit of sustainable building practices. In support of this intent, it is the recommendation of the undersigned that the proposed policy be amended to include LEED and the NGBS as tools for demonstration of compliance. While LEED is more widely recognized by the public, multiple studies have compared LEED and the NGBS and found the latest version of both rating systems to be substantially similar in their positive environmental outcomes'•z•' The NGBS was developed specifically for residential construction in partnership with the International Code Council, ASHRAE, and the National Association of Home Builders. The Greater IC Area HBA has hosted training classes to assist members to achieve the Certified Green Professional designation. The CGP recognizes builders, remodelers, and other industry professionals who incorporate green and sustainable building principles into homes. The HBA will be hosting Certified Green Remodeler (CGR) training for their members in 2018 and CGP will be offered again in 2019. The NGBS is: • Adaptable to multiple types of residential construction and is tailored to design and construction practices particular to the residential construction industry • Supported by the Greater Iowa City Area Home Builders Association • Recognized by HUD and the USDA as an alternative compliance path for meeting their environmental performance standards • Recognized in over 20 states where NGBS and LEED are mandated or incentivized through Qualified Allocation Plans for the federal Low Income Housing Tax Credit program We propose the following modifications to the section on sustainability. Sustainability New F^sidemia', office and mixed-use building projects receiving TIF in any urban renewal area shall be certified Silver or better under the LEED for New Construction Rating System current at the time of design development. New Residential projects shall be certified Silver under the National Green Building Standard or the LEED Green Building Rating System appropriate to the building type. Further, for LEED projects, at least 8 points shall be awarded for the LEED-NG Optimize Energy Performance credit to ensure that TIF projects help meet the City's carbon emission reduction goals. We encourage the council to adopt this amendment in the spirit of expanding adoption of sustainable building practices as effectively as possible across multiple sectors of the Iowa City design and construction market. Sincerely, GT Karr Sueppel's Siding and Remodeling Greater IC Area HBA Remodelers Council Chair Member Iowa City Climate Action Steering Committee Martha Norbeck, AIA, LEED AP BD+C C -Wise Design and Consulting LLC 2018 chair of the USGBC Iowa chapter Member Iowa City Climate Action Steering Committee Matt Krieger, AIA, LEED AP BD+C Neumann Monson Architects Former chair of the USGBC Iowa chapter Member Iowa City Climate Action Steering Committee Kim Casko President, CEO Iowa City Area Chamber of Commerce I "A Comparative Overview of the ICC/ASHRAE 700-2015 National Green Building Standard and LEED v4 BD+C: Homes & Multifamily Low rise." National Association of Home Builders. 2 "Cost and Stringency Comparison of 2012 Green Building Standard ICC 700-2012, LEED-H 2008, and LEED v4 for Homes Design and Construction." Home Innovation Research Labs 3 "Comparison of USGBC LEED for Homes 2008 and NAHB NGBS ICC 700-2008." AIA Cincinnati. Kellie Fruehling From: Sent: To: Cc: Subject: Attachments: Kellie — For late handouts. Geoff Geoff Fruin Friday, November 17, 2017 4:56 PM Kellie Fruehling Eleanor M. Dilkes; Simon Andrew; Ashley Monroe; Wendy Ford FW: Final recommendations on TIF Final recommendations.pdf Late Handouts Distributed `k t, \'l (Date) From: Ryan Sempf [mailto:ryan@iowacityarea.com] Sent: Friday, November 17, 2017 4:44 PM To: Jim Throgmorton <Jim-Throgmorton@iowa-city.org>; John Thomas <John-Thomas@iowa-city.org>; Kingsley Botchway <Kingsley-Botchway@iowa-city.org>; Pauline Taylor <Pauline-Taylor@iowa-city.org>; Susan Mims <Susan- Mims@iowa-city.org>; Rockne Cole <Rockne-Cole@iowa-city.org>; Terry Dickens <Terry-Dickens@iowa-city.org> Cc: Bill Gerhard <wm.gerhard@gmail.com>; nancy@downtowniowacity.com; Karyl Bohnsack <Karyl@hbaofic.org>; norbeck@cwise.com; kim@iowacityarea.com; Geoff Fruin <Geoff - Fru in@iowa-city.org>; Wendy Ford <Wendy- Ford@iowa-city.org> Subject: Final recommendations on TIF Good evening all, Attached is a letter stating the shared request of numerous stakeholder groups in Iowa City regarding TIF policy. Please let me know if you have any questions. Best, Ryan Sempf Director, Government Relations & Public Policy (319) 270-7462 IOWA CITY '00-4Z AREA CHAMBER ��� OF COMMERCE 325 E. Washington Street, Suite 100, Iowa City, IA 52240 p. (319) 337-9637 f. (319) 338-9958 Actively fostering a better business environment through Advocacy, Connections & Education. iowacit varea. com / (oDicareachamber / facebook. com/icareachamber Helping businesses grow and succeed in: • Iowa's (creative corridor 3LMA • THE EASTERN IOWA AIRPORT Ingo • - **** The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution, or duplication of this communication is strictly prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message.**** Dear members of the Iowa City Council, We recognize that over the course of the last year and a half, the Iowa City Economic Development Committee and staff have worked tirelessly to develop a new policy that is intended to more clearly define expectations for developers in the community. We appreciate the efforts of the Economic Development Committee to engage stakeholders in the beginning stages of policy making. With this long effort, it is important to also thank council for allowing the request of business and community organizations, affordable housing advocates, and labor to defer a vote until the upcoming meeting scheduled for November 21". The undersigned group of stakeholders are requesting changes to the following provisions of the policy: • Sustainability • Downtown building heights and character Sustainability Upon deliberation with the stakeholders, it came to our attention that in addition to LEED Silver (with at least 8 energy efficiency points), the National Association of Home Builders National Green Building Standard Silver would also meet the rigorous standards that council is looking to require for TIF financed projects. We recommend that this be added as an equivalent. Downtown building height and character As the signing stakeholders discussed building height and downtown character, it became clear that removal of the map is necessary. The map is outdated, restricts the community's ability to meaningfully increase the supply of housing (including affordable housing) in Iowa City, significantly restricts density in the downtown area, and limits the potential sustainability gains that these incentives promote. We recommend that council remove the map and any reference to it from the policy. Instead, the downtown building height and character section should state that the height of buildings play an integral role in creating the historic character of downtown. Anyone that wishes to develop in a way that does not preserve the historic character architecturally, materially, and/or financially must present an exceptional public benefit provided by the development. The current exceptional benefits should be maintained in the policy and a formal process should be put in place that allows for additional exceptional public benefits (such as an application to the planning and zoning commission for exceptional benefit). We believe that these recommendations maintain the current intent of the policy while allowing for flexibility that will keep it relevant far into the future and we respectfully request that these changes be made. Sincerely, Kim Casko Bill Gerhard President& CEO President Iowa City Area Chamber of Commerce Iowa State Building and Construction Trades Council Karyl Bohnsack Executive Director Greater Iowa City Area Home Builders Association Martha Norbeck President& Founder C -Wise Design & Consulting Nancy Bird Executive Director Iowa City Downtown District M Kellie Fruehling From: tweitzel.email@gmail.com on behalf of Tim Weitzel, M.A. <historicconsulting@gmaiLcom> Sent: Friday, November 17, 2017 6:43 PM To: council Late Handouts Distributed Subject: Fwd: Economic Development ---------- Forwarded message ---------- From: "Tim Weitzel, M.A." <historicconsulting@gmail.com> (Date) Date: Nov 17, 2017 12:22 PM Subject: Economic Development To: "W Ford" <wendy-ford@iowa-city.org> Cc: I have read with interest the minutes of the Economic Development Committee and the letters by Alicia Trimble regarding contributing properties. As an expert among experts in historic preservation, I would offer that per the Iowa State Historic Preservation office interpretation of National Park Service policy for implementing the National Historic Preservation Act, contributing properties do have a specific definition. The definition provided for a contributing property or resource is "any building, object, or structure which adds to the historical integrity or architectural qualities that make the historic district, listed locally or federally, significant." Note that a district needs to be listed locally or federally. A contributing property outside of a listed district still possesses historic value, but there are no mechanisms with which preservation may be formally required under federally implemented programs. It is important to note, however, the Iowa City does make landmarks and conservation districts with or without a federal listing and it is therefore consistent with precedence that contributing properties may have local designation, but for the fact the historic preservation ordinance does not mention this as this time. So, locally we could set policy that allowed contributing properties to be significant, but for now, they need to be in a historic district. Think of this as the standard of significance is dependent upon the overlying district and absent that district, the contribution goes toward nothing. But certainly in no way, shape, or form should a contributing property be confused with non-contributing properties and much less with non -historic properties. I would note that per our historic preservation guidelines, we have previously judged only non -historic properties to be without any historic merit in established preservation districts --conservation or historic. I would also note there are four areas by which a building may be deemed significant this includes any one or all four the criteria A through D. So architectural quality is but one of the four. I am happy to answer further questions or to consult further on this matter. Kellie Fruehling From: Sent: To: Subject: Dear Councilors, Laura Routh <lauridi@hotmail.com> Monday, November 20, 2017 6:14 PM Council Comment on TIF policy Late Handouts Distributed T (Date) I am writing to express my concern regarding the pending action of the City in adopting a revised TIF policy. My concern stems from the fact that the Council seems to view TIFs and other subsidies as an inevitable and always -positive functions of development, a presumption with which I must quarrel. The following comments mirror that which has been expressed repeatedly by my friend Kirk McClure, to the City of Lawrence, KS, over many years. I encourage you to review his research: https://urbanplanning.ku.edu/kirk-mcclure . I used to live in Lawrence, and I served with Kirk on the Neighborhood Associate Board. I am a native Iowa Citian who recently returned home, in transition to retirement. I am now watching Iowa City make the same mistakes that Lawrence has, and I am disturbed by the pace and type of subsidized growth and development that is occurring. While I applaud the Council for incorporating environmental and economic justice issues into matters of development, I would ask that you, and we, FIRST, begin the conversation by discussing the merits of TIFs and other abatement procedures. I'd remind each of you that that TIFs and other tax abatements are not inherently beneficial to residential property tax payers. In fact, quite the opposite is often true. Typical abated investments brings new public service costs. The increased costs of servicing the new properties are passed on to non -abated taxpayers (i.e. the rest of us). For example, there are increased costs of providing fire and police protection for new properties downtown, and high-rise buildings. There are increased costs of upgrading and servicing roads and sewers serving new properties. These costs are not typically paid by the abated taxpayers; they are passed on to the unabated taxpayers, i.e. residential property owners, often single family home owners, many of whom are already struggling. Theoretically, TIFs and abatements that increase commercial property development will also generate commercial taxes that can help keep residential taxes low. Theoretically, allowing growth upwards, and increasing density downtown, will limit sprawl and growth on the outer edges of town. These are THEORIES. I challenge each of you to honestly assess whether you have seen a reduction in residential property taxes, or a real reduction or limit on sprawl, as the prevalence of TIFs in Iowa City has increased. I request that the City generate a report that provides a transparent accounting of TIF monies and all other development subsidies (TDDs, IRBS, etc.) expended, and demonstrate benefit to the residential property tax paying public before cementing a policy that seems to codify more and more subsidy for potentially questionable development. If such an accounting or report exists in the City's files, I'd appreciate being directed to it. I also believe that the policy process for subsidizing development should involve more than just City officials and the development community. A decision making body should be established that has a real say in granting TIFs, and other abatements. That body should include independent citizens, neighborhoods, and residential taxpayers, not just City officials and planning staff. Thank you for your consideration of my concerns. Laura Routh 828 Dearborn Street Iowa City, IA 52240 �g Late Handouts Distributed Kellie Fruehlin From: Wendy Ford Sent: Tuesday, November 21, 2017 4:24 PM (Date) To: Kellie Fruehling Subject: FW: Iowa City Capital Partners Comments on New IC EDC TIF Guidelines Attachments: Iowa City Capital Partners ICDD TIF Comments 11-21-17 .pdf This just came in a few minutes ago. Not sure if too late to treat as late handout, but wanted you to have it. Thanks, Wendy From: Anthony Marlowe [mailto:Anthony@iowacitycapitalpartners.com] Sent: Tuesday, November 21, 2017 4:11 PM To: Kingsley Botchway <Kingsley-Botchway@iowa-city.org>; Rockne Cole <Rockne-Cole@iowa-city.org>; Terry Dickens <Terry-Dickens@iowa-city.org>; Susan Mims <Susan-Mims@iowa-city.org>; Pauline Taylor <Pauline-Taylor@iowa- city.org>; John Thomas <John-Thomas@iowa-city.org>; Jim Throgmorton <Jim-Throgmorton@iowa-city.org> Cc: Geoff Fruin <Geoff-Fruin@iowa-city.org>; Wendy Ford <Wendy-Ford@iowa-city.org> Subject: Iowa City Capital Partners Comments on New IC EDC TIF Guidelines Good afternoon, Please see attached. Truly, Anthony Marlowe, Principal Iowa City Capital Partners, LC http:/Iiowacitycapitalpartners.com Mobile: 319-621-8007 I c IOWA CITY C P CAPITAL PARTNERS Iowa City Capital Partners, LC PO Box 173 Iowa City, IA 52244-0173 Tel:319-621-8007 anthonv(a)iowacitvcapitalpartners.com 11/21/17 Iowa City City Council City of Iowa City Staff Iowa City, Iowa Dear Iowa City City Council/Staff, I am submitting my concerns surrounding the Economic Development Committee's (EDC) recommendations to Council to adopt TIF guidelines for the downtown area. I would appreciate it if this letter was read out loud tonight during the public comment period and officially entered into the record. I fully understand that the city and staff have full discretion to either approve or deny any future TIF request, regardless of any guidelines the Council may adopt. I also respect the EDC's desire to provide clarity, guidance, and predictability for developers downtown. With that said, I have two concerns as it pertains to a building I own in the downtown district, 111-113 E. College St. 1. 111-113 E. College St is listed as a historically eligible/contributing property. As a result, I fear that any redevelopment of 111-113 E. College St. will be treated as tacit demolition, and therefore disqualify any redevelopment from future TIF consideration. At present time, I have no intention of demolishing 111-113 E. College St. However, I know from evaluating a past redevelopment plan, any future redevelopment plan would require many material additions, modifications, and renovations. For example, if I tore the building down, and adhered to all the new TIF guidelines, the property would not be eligible for TIF. With that said, we ask the Council to please clarify before you imminently adopt these guidelines, to ensure that a major redevelopment of an "eligible" or "contributing" building doesn't trigger "tacit demolition" if best efforts are utilized to maintain to maintain whatever is left of the character of the facade of the building and any remaining meaningful interior architectural components, which in 111-113 E. College St's case, are little to none. 2. 1 ask that any action taken by the City Council in the past 10 years remain with the property. A material part of the reason I invested in the building, despite the clear fact that the liquor license rules played a detrimental impact on its rent prospects, was because the City Council previously approved $400,000 in TIF for 111-113 E. College St. I am not sure if this is the only case in downtown where TIF was approved, but not immediately utilized? Regardless, I am seeking a "Grandfather" clause for these types of situations. Thank you for your consideration. I desire to have some help in bringing this former nightclub and bar space back to life, and frankly, I need TIF to do so. I am fearsome that the fogginess in the guidelines will negatively impact my ability to do so. Sincerely, Am, /-aoet UO Anthony Marlowe, Principal Prepared by Eric R. Goers, Assistant City Attorney, 410 E. Washington, Iowa City, IA 52240, (319) 350 5030 Resolution number: 17-351 Resolution approving settlement of imminent litigation. Whereas, City electronics technician, Guy Irvin, injured his right shoulder while working for the City; and Whereas, Mr. Irvin failed to fully recover from his injury, leaving him with permanent restrictions and unable to perform the duties of his position with the City; and Whereas, the City was unable to reasonably accommodate his restrictions, so City staff, outside counsel for the City, and counsel for Mr. Irvin negotiated and reached a settlement, pending Council approval, of his workers' compensation claim, in order to avoid litigation; and Whereas, it is appropriate to ratify said settlement, with payment by the City of Iowa City to counsel for Mr. Irvin in the amount of $200,000 to fully and finally settle Mr. Irvin's workers' compensation claim and end his employment with the City. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa: 1. City Council for the City of Iowa City hereby approves said settlement with Guy Irvin as being in the best interest of the City of Iowa City and the parties involved, ratifies said settlement with Mr. Irvin, and confirms that said settlement is hereby ratified upon execution and delivery of a release, subject to the approval of the City Attorney's Office. 2. The City Manager is hereby authorized to issue payment in the amount of $200,000.00 to counsel for Guy Irvin upon Mr. Irvin's execution of a release approved by the City Attorney's Office and satisfaction of all other conditions of the Settlement Agreement. Passed and approved this 21st day of November Appr ved by City Attorney's Office 2017. L ATTEST: CITY CLERK `/J� Resolution No. Page 2 17-351 It was moved by Mims and seconded by Botchway the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton