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HomeMy WebLinkAbout2001-07-10 Resolution RESOLUTION NO. 01-192 RESOLUTION TO ISSUE DANCING PERMIT BE IT RESOLVED BY THE CiTY COUNCIL OF IOWA CITY, IOWA, that a Dancing Permit as provided by law is hereby 0ranted to the following named person and at the followin9 described locations upon his filing an application, having endorsed thereon the certificates of the proper city officials as to having complied with all regulations and ordinances, and having a valid beer, liquor, or wine license/permit, to wit: Green Room 509 S. Gilbert Street Malone's Irish Pub - 121 Iowa Avenue it was moved by Champion and seconded by 0'Donnell that the Resolution as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X __ O'Donnell X ~ Pfab X ~ Vanderhoef X Wilburn Passed and approved this 10th day of July ,20 01 . by City Attorney's Office clerk\res\danceprm.doc Prepared by Marian K. Karr, City Clerk, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5041 RESOLUTION NO. 01-193 RESOLUTION TO ISSUE CIGARETI'E PERMITS WHEREAS, the following firms and persons have made application and paid the mulct tax required by law for the sale of cigarettes, therefore BE IT RESOLVED BY THE CiTY COUNCIL OF IOWA CITY, IOWA, that the applications be granted and the City Clerk is hereby directed to issue a permit to the following named persons and firms to sell cigarettes: Osco Drug #5078 - 2425 Muscatine Avenue Passed and approved this 10th day of Jul , . 01 Approved by City Attorney's Office It was moved by Champion and seconded by 0' Donnel ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X , Champion X Kanner X Lehman X O'Donnell × Pfab × Vanderhoef × Wilburn crerkVes~igperm doc Prepared by: Andrew Chappell, Assistant County Attorney, P.O. Box 2450, Iowa City, IA 52244, 319.339.6100 RESOLUTION NO. 01-194 RESOLUTION FIXING TIME, DATE AND PLACE FOR HEARING ON PROPOSED CiVIL PENALTY OF $300.00 AGAINST COLLEGE STREET NEWS, DEADWOOD TAVERN, GABE' S, PLAMOR BOWLING INC., AND WAL-MART (STORE NO. 1721) WHEREAS, employees of businesses operating under retail cigarette permits, College Street News (d/b/a College Street Oasis), 116 East College Street; Deadwood Tavern, 6 South Dubuque Street; Gabe's, 330 East Washington Street; Hamor Bowling Inc., 1555 1st Avenue; and Wal- Mart (Store No. 172l), 1001 Highway 1 West, were convicted/pied guilty in Johnson County District Court, of violating Iowa Code § 453A.2(1); and WHEREAS, pursuant to Iowa Code § 453A.22(2), an establishment which holds a retail cigarette permit is subject to a civil penalty of $300.00 as a result of its employee being convicted of or pleading guilty to a violation of Iowa Code § 453A.2(1), after a hearing and proper notice; and WHEREAS, the City of Iowa City City Council is advised and does believe that hearings should be fixed for the 3 1st day of July, 2001, at 7:00 p.m. in the Council Chambers of the City of Iowa City Civic Center, 410 East Washington Street, Iowa City, Iowa 52240 for the purpose of considering whether civil penalties in the amount of $300.00 should be assessed against College Street News, Deadwood Tavern, Gabe's, Hamor Bowling Inc., and Wal-Mart (Store No. 172i) pursuant to Iowa Code § 453A.22(2). NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF IOWA CITY CITY COUNCIL that the City Council conduct hearings on the 3 1st day of July, 2001, at 7:00 p.m. in the Council Chambers of the City of Iowa City Civic Center, 410 East Washington Street, Iowa City, Iowa 52240 for the purpose of considering whether civil penalties in the amount of $300.00 should be assessed against College Street News, Deadwood Tavern, Gabe's, Plamor Bowling Inc., and Wal- Mart (Store No. 1721) pursuant to Iowa Code § 453A.22(2). BE IT FURTHER RESOLVED, that the City Clerk is hereby directed to provide the retail cigarette permit holder with no less than 10 days' notice of the hearing by mailing a copy of this Resolution to the permit holder's place of business as it appears on the application for a retail cigarette permit. PASSED AND APPROVED: duly 10, 2001 i Ci~erk, City of Iowa City Resolution No. 01-194 Page 2 It was moved by Champion and seconded by O' Donnel ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ' ;- X Kanner X Lehman ]( O'Donnell X Pfab X Vanderhoef X Wilbum Prepared by: Steven Nasby, Assoc. Planner, 410 E. Washington St., Iowa City IA 52240 (319)356-5248 RESOLUTION NO. 01-195 RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE IOWA STATE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR EMERGENCY SHELTER GRANTS PROGRAM FUNDING, AND AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST THE SAME. WHEREAS, the State of Iowa has received funds for the Iowa Emergency Shelter Grants Program which utilizes U.S. Department of Housing and Urban Development funding to provide shelter services for homeless people in Iowa; and WHEREAS, the City of Iowa City deems it in the public interest to support services for the homeless in Iowa City; and WHEREAS, the Iowa State Department of Economic Development has agreed to make Iowa Emergency Shelter Grants Program funding in the amount of 9105,630 available to the City of Iowa City for program administration and support of the Domestic Violence Intervention Program, the Emergency Housing Project, Greater Iowa City Housing Fellowship, Table to Table, and Four Oakes (a.k.a. Youth Homes, Inc.). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: 1. The Agreement for Emergency Shelter Grants Program funding (01-ES-004), a copy of which is on file in the Community Development office, is hereby approved. 2. The Mayor is hereby authorized to execute and the City Clerk to attest the Agreement for Emergency Shelter Grants Program funding. 3. The City Manager is hereby authorized to execute all necessary documents required by the Iowa Department of Economic Development for the administration of these funds. Passed and approved this ]0th day of Ju ~,, ,2001. Approved by A City ttorney's Office Resolution No. 01-195 Page 2 It was moved by Champion and seconded by O' Donne] ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ': X Kanner X Lehman × O'Donnell X Pfab X Vanderhoef X Wilbum Prepared by: Liz Osborne, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5246 RESOLUTION NO. 01-196 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO THE RELEASE OF LIEN REGARDING A PROMISSORY NOTE AND A MORTGAGE FOR THE PROPERTY LOCATED AT 421 CRESTVIEW AVENUE, IOWA CITY, IOWA. WHEREAS, on May 25, 1988, the owners of 421 Crestview Avenue executed a lien for a low interest loan for the amount of $22,000; and WHEREAS, the loan was paid off on June 26, 2001; and WHEREAS, it is the City of Iowa City's responsibility to release this lien. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the attached Release of Lien for recordation, whereby the City does release the properly located at 421Crestview Avenue, Iowa City, Iowa from the Promissory Note and the Mortgage recorded on June 2, 1988, Book 1005, Page 352 through Page 354 of the Johnson County Recorder's Office. Passed and approved this 'i0th day of ,3ul y ,20 0:].. Approved by It was moved by Champion and seconded by 0'Donnel 1 the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman × O'Donnell X Pfab X Vanderhoef X Wilburn ppdrehab/resJ421 creslview doc Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5246 RELEASE OF LIEN The City of Iowa City does hereby release the properly at 421 Crestview Avenue, Iowa City, Iowa, and legally described as follows: Lot 55 in Court Hill, an Addition to the City of Iowa City, Iowa, according to the plat thereof recorded in Plat Book 4, Page 324 Plat Records of Johnson County, Iowa, subject to easements and restrictions of record. from an obligation of the owners, Stephen J. and Mary A. Smith, to the City of Iowa City in the total amount of $22,000 represented by the Promissory Note and the Mortgage recorded on June 2, 1988, Book 1005, Page 352 through Page 354 of the.Johnson County Recorder's Office. This obligation has been satisfied and the property is hereby released from any liens or clouds MAYOR Approved by ATTEST:CiT~~///- '/f/'~.f..~ 15ityAttorney,sOffi--~/--,-'~-/c~ece~""~'°°/ STATE OF iOWA ) ) SS: JOHNSON COUNTY ) On this /o day of J ,.~_ , A.D. 20 ~ I , before me, the undersigned, a Notary Public in and for said Co~Ynty, in said State, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. c./-/et,,, adopted by the City Council on the /o day o~ ,20 oi and that the said Ernest W. Lehman and Marian K. Karr as such o'~ffi~cers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Ppdrehab~421crestvoew-rel.doc NOtary PUbliC in and for Johnson County, Iowa SONDRAE FORT ~ ~¢ omrnisslon Number 159791 Prepared by: Liz Osborne, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5246 RESOLUTION NO. 01-197 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO THE RELEASE OF LIEN REGARDING A PROMISSORY NOTE FOR THE PROPERTY LOCATED AT 431 NORTH LUCAS STREET, IOWA CITY, IOWA. WHEREAS, on March 29, 1989, the owners of 431 North Lucas Street executed a Promissory Note in the form of a ten-year depreciation lien in the amount of $11,000 through the City's Housing Rehabilitation Program; and WHEREAS, the terms of the lien were satisfied on March 9, 1999; and WHEREAS, it is the City of Iowa City's responsibility to release this lien. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA that the Mayor is authorized to sign and the City Clerk to attest the attached Release of Lien for recordation, whereby the City does release the property located at 431 North Lucas Street, Iowa City, Iowa from the Promissory Note recorded on April 11, 1989, Book 1054, Page 64 through Page 65 of the Johnson County Recorder's Office. Passed and approved this 10t;h day of ,3u] y ,20 01 Approved by It was moved by Champinn and seconded by 0' Donne31 the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn ppdrehab/res~431 nlucas doc Prepared by: Liz Osborne, CD Division, 410 E. Washington St., Iowa City, IA 52240 (319)356-5246 RELEASE OF LIEN The City of Iowa City does hereby release the property at 431 North Lucas Street, Iowa City, Iowa, and legally described as follows: The North 75 feet of the East 65 feet of Lot 1, Block 15, Original Town of Iowa City, subject to recorded easements from an obligation of the owners, Luther and Delores M. Wilson, to the City of Iowa City in the total amount of $11,000 represented by a Promissory Note recorded on April 11, 1989, Book 1054, Page 64 through Page 65 of the Johnson County Recorder's Office. This obligation has been satisfied and the property is hereby released from any liens or clouds upon title to the above property by reason of said prior recorded document. Approved by STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this ~c> day of J ~,_y , A.D. 20 c, ~ , before me, the undersi9ned, a Notary Public in and for said County, in said State, personally appeared Ernest W. Lehman and Marian K. Karr, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal corporation executin9 the within and foregoing instrument; that the seal affixed thereto is the seal of said corporation, and that the instrument was signed and sealed on behalf of the corporation by authority of its City Council, as contained in Resolution No. ,, I-/~'7, adopted by the City Council on the/o day o./' ,20 o l and that the said Ernest W. Lehman and Marian K. Karr as such o grs acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. PpdrehabV131nlucas-rel.dcc Natty Public in and for Johnson County, Iowa t~. ~ SONDRAE FORT Commission Number 159791 Prepared by: Ron Knoche, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5138 RESOLUTION NO. 01-198 RESOLUTION ACCEPTING THE WORK FOR THE FOSTER ROAD AND MORMON TREK BOULEVARD LANDSCAPING PROJECT. WHEREAS, the Engineering Division has recommended that the work for construction of the Foster Road and Mormon Trek Boulevard Landscaping Project, as included in a contract between the City of Iowa City and Iowa City Landscaping of Iowa City, Iowa, dated Apdl 10, 2001, be accepted; and WHEREAS, the performance and payment bond has been filed in the City Clerk's office. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa. Passed and approved this 10th day of July ,20 01 Approved by It was moved by Champi on and seconded by 0'Donnel 1 the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell × Pfab X Vanderhoef X Wilburn ENGINEER'S REPORT July 2, 2001 Honorable Mayor and City Council Iowa City, Iowa Re: Foster Road and Mormon Trek Boulevard Landscaping Project Dear Honorable Mayor and Councilpersons: I hereby certify that Iowa City Landscaping of Iowa City, Iowa has completed the construction of the Foster Road and Mormon Trek Boulevard Landscaping Project in substantial accordance with the plans and specifications prepared by Howard R. Green Company of Iowa City, Iowa. The required performance and payment bond is on file in the City Clerk's office. The final contract price is $40,406.00. I recommend that the City of Iowa City accept the above-referenced improvements. Sincerely, Ri~hr"~dd~A. Fosse, P.E. City Engineer City of Iowa City MEMORANDUM Date: July 2, 2001 To: Steve Atkins From: Kim Johnso~,'~rr~ Re: Agenda Items The following are costs associated with Capital Improvement Projects being t presented for acceptance at the July 10 h Council meeting: 1) Foster Road & Mormon Trek Boulevard Landscaping Contractor.' Iowa City Landscaping · Project Estimated Cost: $ 60,000.00 · Project Bid Received: $ 41,668.00 · Project Actual Cost: $ 40,406.00 Prepared by: Andrew Chappell, Assistant Count), Attorney, P.O. Box 2450, Iowa City, ]A 52244, 319339.6100 RESOLUTION NO. 01-199 Pj~SOLUTION ACCEPTING PAYJ~ENT OF $300.00 CIVIL PENALTY AND WAIVER OF RIGHT TO HEARING FROM HEMP CAT WHEREAS, on March 6, 2001, Shimoni Engelby was convicted/pied guilty in Johnson County District Court, Case No. STIC 116131 of violating Iowa Code § 453A.2( 1 ); and WHEREAS, at the time of the violation underlying the above conviction/plea, Shimoni Engelby was an employee of the establishment operating under the retail cigarette permit issued to Hemp Cat, 114 1/2 East College Street; and WHEREAS, pursuant to Iowa Code § 453A.22(2), an establishment which holds a retail cigarette permit is subject to a civil penalty of $300.00 as a result of its employee being convicted of or pleading guilty to a violation of Iowa Code § 453A.2(1), after a hearing and proper notice; and WHEREAS, on the 3rd day of July, 2001, Hemp Cat waived its right to the hearing required by Iowa Code § 453A.22(2) and accepted responsibility for its employee's violation of Iowa Code § 453A.2(1), by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City; and WHEREAS, the violation underlying the above civil penalty is the first such violation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF IOWA CITY CITY COUNCIL that the City Council should accept the waiver of right to hearing and payment of $300.00 civil penalty on behalf of Hemp Cat. BE IT FURTHER RESOLVED, that the City Clerk will fortyard a copy of this Resolution to the Johnson County Attomey's Office, which will then provide a copy of the same to the retail cigarette permit holder via regular mail sent to the permit holder's place of business as it appears on the application for a retail cigarette permit. PASSED AND APPROVED: July 10, 2001 Mayor, City of Iowa City ATTEST:City~erk; City of Iowa City Resolution No. 01-199 Page 2 It was moved by Champi on and seconded by 0' Donnel 1 the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ~ X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilbum RESOLUTION NO. 01-200 RESOLUTION ACCEPTING PAYMENT OF $300.00 CIVIL PENALTY AND WAIVER OF RIGHT TO HEARING WHEREAS, on the 22na day of March, 2001, Frank Lee Willjams was convicted/pied guilty in Johnson County District Court, Case No. STIC 116126 of violating Iowa Code § 453A.2(1); and WHEREAS, at the time of the violation underlying the above conviction/plea, Williams was an employee of the establishment operating under the retail cigarette permit issued to Gasby's, 1310 South Gilbert St., Iowa City, Iowa 52240; and WHEREAS, pursuant to Iowa Code § 453A.22(2), an establishment which holds a retail cigarette permit is subject to a civil penalty of $300.00 as a result of its employee being convicted of or pleading guilty to a violation of Iowa Code § 453A.2(1), after a hearing and proper notice; and WHEREAS, on the 29th day of June, 2001, Gasby's, waived its right to the hearing required by Iowa Code § 453A.22(2) and accepted responsibility for its employee's violation of Iowa Code § 453A.2(1 ), by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City; and WHEREAS, the violation underlying the above civil penalty is the first such violation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF IOWA CITY CITY COUNCIL that the City Council should accept the waiver of right to hearing and payment of $300.00 civil penalty on behalf of Gasby's. BE IT FURTHER RESOLVED, that the City Clerk will fortyard a copy of this Resolution to the Johnson County Attomey's Office, which will then provide a copy of the same to the retail cigarette permit holder via regular mail sent to the permit holder' s place of business as it appears on the application for a retail cigarette permit. PASSED AND APPROVED: Jul.y 10, 2001 ATTEST:City~te4~krk, C*Ti't ~/(/' y of Iowa City Resolution No. 01-200 Page 2 It was moved by Champi on and seconded by 0'Donne] ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X . Champion ': X Kanner X Lehman X . O'Donnell X . Pfab X Vanderhoef X Wilbum RESOLUTION NO. 01-201 RESOLUTION ACCEPTING PAYMENT OF $300.00 CiVIL PENALTY AND WAiVER OF RIGHT TO HEARING WHEREAS, on the 27th day of March, 2001, Brandon Jason Ousley was convicted/pied guilty in Johnson County District Court, Case No. STIC 115627 of violating Iowa Code § 453A.2(1); and WHEREAS, at the time of the violation underlying the above conviction/plea, Ousley was an employee of the establishment operating under the retail cigarette permit issued to Suburban Amoco, 370 Scott Court, Iowa City, Iowa 52240; and WHEREAS, pursuant to Iowa Code § 453A.22(2), an establishment which holds a retail cigarette permit is subject to a civil penalty of $300.00 as a result of its employee being convicted of or pleading guilty to a violation of Iowa Code § 453A.2( 1 ), after a hearing and proper notice; and WHEREAS, on the 26'h day of June, 2001, Suburban Amoco, waived its fight to the hearing required by Iowa Code § 453A.22(2) and accepted responsibility for its employee's violation of Iowa Code § 453A.2(1), by paying a $300.00 civil penalty to the City Clerk of the City of Iowa City; and WHEREAS, the violation underlying the above civil penalty is the first such violation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF IOWA CITY CITY COUNCIL that the City Council should accept the waiver of right to hearing and payment of $300.00 civil penalty on behalf of Suburban Amoco. BE IT FURTHER RESOLVED, that the City Clerk will forward a copy of this Resolution to the Johnson County Attomey's Office, which will then provide a copy of the same to the retail cigarette permit holder via regular mail sent to the permit holder' s place of business as it appears on the application for a retail cigarette permit. PASSED AND APPROVED: July 10, 2001 Cit~fC~rk, City of Iowa City Resolution No. 01-201 Page 2 It was moved by Champi on and seconded by 0'Donne] ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ' X . Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn /v~ I 07-10-01 I Prepared by: Sarah Holecek, First Asst. CityAttomey, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. 01-202 RESOLUTION AUTHORIZING CONVEYANCE OF AUDITOR'S PARCEL NO. 2000121 TO ACT IN(;, IN EXCHANGE FOR THE CONVEYANCE OF AUDITOR'S PARCEL NO. 2000122 TO CITY BY ACT, INC. WHEREAS, per the terms of the Second Amendment to the Agreement between the City of Iowa City and ACT Inc., (formerly the American College Testing Program, Inc.) concerning ACT's Master Development Plan, the City and ACT have agreed on a preferred southerly alignment of Scott Boulevard, f/k/a Captain Irish Parkway; and WHEREAS, per the terms of said agreement, ACT shall deed to City the property comprising the preferred southerly alignment (Auditors Parcel 2000122) in exchange for City deeding to ACT its interest in the previous Scott Boulevard f/k/a Captain Irish Parkway alignment (Auditors Parcel No. 2000121 ), said exchange to be without compensation by or to either party; and WHEREAS, it is in the public interest for the City to convey its interest in the property comprising the former alignment to ACT, Inc. in exchange for the property comprising the new alignment. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that: 1. The Mayor and City Clerk are hereby authorized and directed to execute a Warranty Deed conveying the City's interest Auditors Parcel No. 2000121 to ACT, Inc., in exchange for ACT's conveyance of Auditors Parcel No. 2000122 to the City. 2. The City Attorney is authorized to deliver said Warranty Deed to ACT, Inc. The deed, and any other documentation required by Iowa Code §364.7 (1999), shall be recorded by the City Attorney's Office in the Johnson County Recorders Office at the City's expense. Passed and approved this ].0th dayof CITY~.rLERK Sarah\propacq%act capirish\convey old captain irish alingment reslution auth.doc Resolution No. 01-202 Page 2 It was moved by Vanderhoef and seconded by Wi 1 burn the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ' X Kanner ~X Lehman X O'Donnell X Pfab X Vanderhoef X Wilbum Prepared by: Marilyn Kriz. Parks and Recreation, 220 S. Gilbert, Iowa City, IA 52240 (319) 356-5110 RESOLUTION NO. 01-203 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT, ESTIMATE OF COST FOR THE RECONSTRUCTION OF THE CITY PARK TRAILS PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH ADVERTISEMENT FOR BIDS, 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY IOWA, THAT: 1. 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% of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice for the receipt of bids for the construction of the above-named project in a newspaper published at least once weekly and having a general circulation in the city. 4. 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 Civic Center, until 10:30 a.m. on the 26th day of July, 2001, or at a later date as determined by the Director of Parks and Recreation or designee, with notice of said later date to be published as required by law. Thereafter the bids will be opened by the City Engineer or designee, and thereupon referred to the Council of the City of Iowa City, Iowa, for action upon said bids at its next meeting to be held at the Council Chambers, Civic Center, Iowa City, Iowa, at 7:00 p.m. on the 31st day of July, 2001 or at such later time and place as may be fixed. Passed and approved this lOth day of July ,2001. Approved by Resolution No. 01-203 Page 2 It was moved by ChampI on and seconded by Wi ] burn the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion ' X Kanner X Lehman X , O'Donnell X Pfab X Vanderhoef X Wilbum A/~ J 07-10-0t I 7 Prepared by: Marilyn Kriz, Parks and Recreation, 220 S. Gilbert, Iowa City, IA 52240 (319) 356-5110 RESOLUTION NO. 01-204 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT, ESTIMATE OF COST FOR THE CONSTRUCTION OF THE HUNTER'S RUN PARK PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH ~ID, DIRECTING CITY CLERK TO PUBLISH ADVERTISEMENT FOR BIDS, 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY IOWA, THAT: 1. 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% of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to publish notice for the receipt of bids for the construction of the above-named project in a newspaper published at least once weekly and having a general circulation in the city. 4. 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 Civic Center, until 10:30 a.m. on the 26th day of July, 2001, or at a later date as determined by the Director of Parks and Recreation or designee, with notice of said later date to be published as required by law. Thereafter the bids will be opened by the City Engineer or designee, and thereupon referred to the Council of the City of Iowa City, Iowa, for action upon said bids at its next meeting to be held at the Council Chambers, Civic Center, Iowa City, Iowa, at 7:00 p.m. on the 31st day of July, 2001 or at such later time and place as may be fixed. Passed and approved this 10th day of ,]u] ,2~~~,~ Approved by ATTEST:CITY~"LERK C~A~orn~y's Office Resolution No. 01-204 Page 2 It was moved by Wi 1 burn and seconded by 0 ' Donne] ] the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner ~( Lehman /' O'Donnell X . Pfab X Vanderhoef X Wilburn I07-10-01 Prepared by: Marcia Klingaman, Planning Dept., 410 E. Washington St., (319) 356-5237 RESOLUTION NO. 01-205 RESOLUTION APPROVING AN INVITATION TO SELECTED ARTISTS FOR THE IOWA SCULPTOR'S SHOWCASE WHEREAS, the Iowa City Public Art Program Acquisition Procedures provide for City Council consideration of any call or invitation to artists; and WHEREAS, the Public Art Advisory Committee has determined that the sculpture pad located near the Burger King restaurant will be reserved for local Iowa sculptor's display and will be changed every year in June; and WHEREAS, the Public Art Advisory Committee has developed an invitation to selected artists; and WHEREAS, the Pubtic Art Advisory Committee at their meeting on May 3, 2001 recommended approval of same. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The invitation to artists, attached hereto, for the Iowa Sculptor's showcase is hereby approved. Passed and approved this E].0th day ,20 0]- . MAYOR ove CI City Attorney's Office It was moved by Champi on and seconded by Pfab the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef × Wilburn Neighbor~publicart\res~showcase.doc Iowa Sculptor's Showcase C TY of OW'A CITY An exceptional showcase opportunity for a talented Iowa Sculptor is being offered by the City of Iowa City. The Public Art Advisory Comnfittee has announced its annual call to select a work for display, June 2002. The "Iowa Ardst's Show Case Pad" is lo- cated near the Weather Dance Fountain on the bustling downtown Pedestrian Mall. A new sculpture is unve'ded each June to coincide with the opening of The Iowa Arts Festival. Iowa artist Justine Zimmer will launch this tradition in June 2001. "I'm ex- cited to have my sculpture shown alongside works by Christopher Spath and Gary Alsum. 'Dorothy' wLll bc seen by thousands of residents and visitors to Iowa City. It's an opportunity for sale, but it's also a wonderful portfolio opportunity. I'm look- ing forward to photograplfing the impact of my work in an urban area throughout all four seasons." Specifications The artwork must be safe, maintenance free, and suitable to the outdoor environment of downtown Iowa City. It must be able to be secured to the 4' x 4' (x 4' deep) cement pad. Bolts are currently in place and a ternplate and specifications are included with this information. Process The City Council's Public Art Advisory Committee invites Iowa artists to make submis- sions on or before September 30, 2001, with the following enclosures: , curriculun3 vita (ten copies) · a biographical paragraph (ten copies) , an artist's statement (ten copies) , sculpture images must appear on 35mm color slides or digdtal photos on 3 1/2" floppy disk. Two or three views per entry. A maximum of five entries. , each slide and/or digital photo must have the following identification: artist's name, number of slide, title of work, medium, measurements, date, incH- cation of the top of the work , separate sheet of paper listing number of slide or name of digital photo, and the information provided for each slide or photo (ten copies) The Iowa City Public Art Advisory Committee will initially screen entries. Finalists in the competition will be displayed at a public downtown location for a two-week period to allow for public comment. The City Council will make the final selection. Responsibilities Responsibilities of the City of Iowa City: Responsibilities of the artist: , a concrete sculpture pad in the down- , delivery and installation of selected town pedestrian mall artwork (with city oversight) , $500.00 honorarium , meeting all contract deadlines · $10,000 vandalism/theft/liability insur- , all travel expenses ance, once sculpture is installed · insurance in excess of that provided , oversight of the installation process by the city (optional) , a plaque stating: the fide of the sct~p- , repairs and any other necessary work the city in which the artist resides, "Available for Purchase", "Iowa City Public Art Program" , Calendar September 14, 2001 - Entries deadline October 4, 2001 - Public Art Advisory Committee selects five finalists November 5-19, 2001 - Public comment period for finalists January 3, 2002 - Public Art Advisory Committee makes recommendations January 15, 2002 - City Council selects sculpture February 2002 - Sign contract June 2002 - Deliver and install sculpture during week preceecling Iowa Arts Festival For additional information contact: Marcia KAingaman Karin Franklin City of Iowa City City of Iowa City 410 E. Washington Street 410 E. Washington Street Iowa City, Iowa 52240 Iowa City, Iowa 52240 319-356-5237 319-356-5232 marcia-klingaman@iowa-city. org karin-franklin~iowa-city. org Iowa Sculptor's Showcase&.~ czTr of ZoW'A czar' ~' City of Iowa City Public Art Program 410 E. Washington Street Iowa City, Iowa 52240 Prepared by Andy MaUhews, Asst. City Attorney, 410 E. Washington St., Iowa City, IA (319)356-5030 RESOLUTION NO. 01-206 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A LICENSE AGREEMENT FOR TEMPORARY USE OF PUBLIC RIGHT-OF-WAY BETWEEN THE CITY OF IOWA CITY AND KLDP INC. D/B/A ONE TWENTY SIX, FOR A SIDEWALK CAFI~ WHEREAS, the City of Iowa City is the custodian and trustee of the public right of way within the City; and WHEREAS, KLDP Inc. d/b/a One Twenty Six applied for temporary use of the public right-of-way at 126 E. Washington St. for a sidewalk caf~ with raised platform and anchored fencing thereon; and WHEREAS, City staff has reviewed the application, location, and specifications for the proposed sidewalk car6 and found these to be in compliance with the regulations adopted by Ordinance 97-3764; and WHEREAS, such use of the public right-of-way is compatible with the public use thereof; and 'W~i~EREAS, it is in the public interest to set forth the conditions regarding such use of the public right-of-way, as enumerated in the License Agreement for Temporary Use of Public Right-of-Way (hereinafter "license agreement"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA THAT: 1. The Mayor and City Clerk are hereby authorized and directed to respectively sign and attest said license agreement, copy of which is on file with the City Clerk, and direct copies of this resolution together with the application and signed license agreement to the applicant. 2. The City Clerk is hereby directed to record this Resolution and license agreement with the Johnson County Recorder at City expense. Passed and approved this 10t~tay of July, 2001. City Attorney's 0 ice 126 Sidewalk Caf~ Res Resolution No. 01-206 Page 2 It was moved by Pfab and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn / A, PLAN VIEW OF EATING AREA EXTENI'ION I''~'" '1 FRONT VIEW OF PLATFORM SCALE: I/4" - I'-0" ' '~'L s'r~. l&.riFl sr.a.~'ltll ","" ~,' ',r / // ' ',,: // FRONT ELEVATION OF RESTAURANT WITH EATING AREA EXTENTION EXISTINGj STRUCTLRE ~ 5'0' ~' ~'0' -  4 5/~' THIS SCRIBE JOIST W/EXISTING SDE WALK SIDE VIEW OF PLATFORH (LEFT OR WEST END) Prepared by: Marilyn Kriz, Parks & Recreation, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5110 RESOLUTION NO. 01-207 RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE IOWA CITY KICKERS SOCCER PARK PARKING LOT RESURFACING PROJECT, WHEREAS, L. L. Pelling Co. of Iowa City, Iowa has submitted the lowest responsible bid of $227,316.50 for construction of the above-named project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The contract for the construction of the above-named project is hereby awarded to L. L. Pelling Co., subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 10th day of Ju ] y ,2001. Approved by City Attorney's Office It was moved by Pfab and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn parksrec/res~ickersresurface.doc ADVERTISEMENT FOR BIDS KICKERS SOCCER FIELD PARKING LOT PAVING PROJECT Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 10:00 A.M. on the 28th day of June, 2001, or at a later date and/or time as determined by the Director of Public Works or designee, with notice of said later date and/or time to be published as required by law. Sealed proposals will be opened immediately thereafter by the City Engineer or designee. Bids submitted by fax machine shall not be deemed a "sealed bid" for purposes of this Project. Proposals will be acted upon by the City Council at a meeting to be held in the Council Chambers at 7:00 P.M. on the 10th day of july, 2001, or at such later time and place as may be scheduled. The Project will involve the following: The construction of a four (4) inch thick ACC parking lot on three existing seal coat parking lots with alternate bids for the expansion of two parlg lots. The work included is grading, A.C. concrete pavement, pavement markings, parking stall markings, 4'0 subdrain, temporary traffic control and all related incidentals. All work is to be done in strict compliance with the plans and specifications prepared by Shoemaker & Haaland Professional Engineers, of Coralville, Iowa, which have heretofore been approved by the City Council, and are on file for public examination in the Office of the City Clerk. Each proposal shah be completed on a form furnished by the City and must be accompanied in a sealed envelope, separate from the one containing the proposal, by a bid bond executed by a corporation authorized to contract as a safety in the State of Iowa, in the sum of 10% of the bid. The bid security shall be made payable to the TREASURER OF THE CITY OF IOWA CITY, IOWA, and shall be forfeited to the City of Iowa City in the event the successful bidder fails to enter into a contract within ten (10) calendar days of the City Council's award of the contract and post bond satisfactory to the City ensuring the faithful performance of the contract and maintenance of said Project, if required, pursuant to the provisions of this notice and the other contract documents. Bid bonds of the lowest two or more bidders may be retained for a period of not to exceed fifteen (15) calendar days following award of the contract, or until rejection is made. Other bid bonds will be returned after the canvass and tabulation of bids is completed and reported to the City Council. The successful bidder will be required to furnish a bond in an amount equal to one hundred percent (100%) of the contract price, said bond to be issued by a responsible surety approved by the City, and shall guarantee the prompt payment of all materials and labor, and also protect and save harmless the City from all claims and damages of any kind caused directly or indirectly by the operation of the contract, and shall also guarantee the maintenance of the improvement for a period of five (5) years from and aRer its completion and formal acceptance by the City. The following limitations shall apply to this Project: Specified Start Date: July 23, 2001 Completion Date: August 18, 2001 Liquidated Damages: $200.00 per day The plans, specifications and proposed contract documents may be examined at the office of the City Clerk. Copies of said plans and specifications and form of proposal blanks may be secured at the Office of Shoemaker & Haaland Professional Engineers, 160 Holiday Road, Coralville, Iowa, by bona fide bidders. A $35.00 non-refundable fee is required for each set of plans and specifications provided to bidders or other interested persons. The fee shall be in the form of a check, made payable to Shoemaker & Haaland Professional Engineers. A pre-bid conference shall be held on Thursday, June 21, 2001, at 10:00 a.m. at the Kickers Soccer Field Complex. Bidders are encouraged to attend to meet with the design engineer and city representative. Prospective bidders are advised that the City of Iowa City desires to employ minority contractors and subcontractors on City projects. A listing of minority contractors can be obtained from the Iowa Department of Economic Development at (515 ) 2424721. Bidders shall list on the Form of Proposal the names of persons, fn'ms, companies or other parties with whom the bidder intends to subcontract. This list shall include the type of work and approximate subconu'act amount(s). The Contractor awarded the contract shall submit a list on the Form of Agreement of the proposed subcontractors, together with quantities, unit prices and extended dollar amounts. By virtue of statutory authority, preference must be given to products and provisions grown and coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required under Iowa Statutes. The Iowa reciprocal resident bidder preference law applies to this Project. The City reserves the fight to reject any or all proposals, and also reserves the right to waive technicalities and irregu- larities. Published upon order of the City Council of Iowa City, Iowa. MAPdAN K. KARR, CITY CLERK AF-2 Prepared by: Sarah E. Holecek, First Asst. City Atty., 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. 01-208 RESOLUTION OF INTENT TO CONVEY AN UNDEVELOPED PORTION OF WOOLF AVENUE FROM MCLEAN STREET SOUTH FOR A DISTANCE OF 240 FEET TO CRAIG SYROP, ANNE SADLER, M. ALICE SAHS, AND MARITA MCGURK RICHER, AND SETTING A PUBLIC HEARING ON SAID CONVEYANCE FOR JULY 31, 2001. WHEREAS, On July 10, 2001, the City Council will consider pass and adoption of an ordinance vacating an undeveloped portion of WooIf Avenue from McLean Street South for a distance of 240 feet, subject to the City's retention of a blanket sanitary and storm sewer easement over the vacated property; WHEREAS, Craig Syrep and Anne Sadler, as the owners of adjacent property, have offered the sum of $1,032 for the easterly one-half of the vacated property, which is consistent with the fair market valuation listed on the assessment rolls for comparable properties; and WHEREAS, M. Alice Sahs, as the owner of adjacent property, has offered the sum of $516 for the southerly one-half of the westerly one-half of the vacated property, which is consistent with the fair market valuation listed on the assessment rolls for comparable properties; and WHEREAS, Marita McGurk Eicher, as the owner of adjacent property, has offered the sum of $516 for the northerly one-half of the westerly one-half of the vacated property, which is consistent with the fair market valuation listed on the assessment rolls for comparable properties; and WHEREAS, the City does not need the vacated right-of-way to provide access to property in the area; and WHEREAS, the disposition of the subject property is in the public interest. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that: 1. The City Council does hereby declare its intent to convey its interest in the easterly one- half of the undeveloped portion of Wooif Avenue from McLean Street South for a distance of 240 feet to Craig Syrop and Anne Sadler for the sum of $1,032. 2. The City Council does hereby declare its intent to convey its interest in the southerly one- half of the westerly one-half of the undeveloped portion of WooIf Avenue from McLean Street South for a distance of 240 feet to M. Alice Sahs for the sum of $516. 3. The City Council does hereby declare its intent to convey its interest in the northerly one- half of the westerly one-half of the undeveloped portion of WooIf Avenue from McLean Street South for a distance of 240 feet to Marita McGurk Eicher for the sum of $516. Resolution No. 01-208 Page 2 4. A public hearing on said proposal should be and is hereby set for July 31, 2001, at 7:00 p.m. in the Council Chambers of the Civic Center, 410 East Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to cause notice of said public hearing to be published as provided by law. It was moved by Champi on and seconded by 0'Donne] '1 the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner '~' Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn Passed and approved this 10th day ~R ATTEST:~--~E~K,-~_-) '=/I2. rnaWrn~land-acq~vac & dispose~woolf aveires-intent to convey Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St.. Iowa City, rA 52240 (319) 356-5030 RESOLUTION NO. 01-209 RESOLUTION OF INTENT TO CONVEY A SINGLE FAMILY HOME LOCATED AT '1605 DICKENSON LANE AND SETrING A PUBLIC HEARING FOR JULY 3'1,200'1. WHEREAS, the City Council of the City of Iowa City functions as the Iowa City Housing Authority; and WHEREAS. on September 14, 1993, the City Council considered and passed Resolution No. 93-255 approving the Section 5(h) Implementing Agreement for the conversion of public housing to private ownership, also known as the Tenant-to-Ownership Program; and WHEREAS, under this agreement the proceeds from such sales must be used to expand affordable housing opportunities in Iowa City; and WHEREAS. the proceeds from such sales are used to provide affordable housing under the City's Affordable Dream Home Program ("ADHOP"); and WHEREAS, the Iowa City Housing Authority owns a single family home located at 1605 Dickenson Lane, iowa City; and WHEREAS, the City has received an offer to purchase 1605 Dickenson Lane for the principal sum of $135,000, which is $2,000 less than the appraised value of the property; and WHEREAS, the funding source, federal HOME funds, limits the purchase price to a maximum of $135,000; and WHEREAS, this sale would provide the opportunity for a low-income family to obtain ownership of their own home; and WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase of the home. NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that: 1. The City Council does hereby declare its intent to convey a single family home located at 1605 Dickenson Lane, Iowa City, Iowa, also known as Lot 98, South Pointe Addition. Part 5, for the sum of $135,000. Resolution No. 01-209 Page 2 2. A public headng on said proposal should be and is hereby set for July 31, 2001, at 7:00 p.m. in Emma J. Harvat Hall of the Civic Center, 410 East Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to cause notice of said public hearing to be published as provided by law. It was moved by Pfab and seconded by VandPrhnef the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner ][ Lehman ~( O'Donnell X Pfab X Vanderhoef X Wilburn Passed and approved this 101:h day ~R_//_~. 2,~~ Approved by City Attomey's Office Prepared by: Karen Jennings, Personnel, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5025 RESOLUTION NO. 01-210 RESOLUTION AMENDING THE BUDGETED POSITIONS IN THE CITY CLERK'S OFFICE AND THE CONFIDENTIAL/ADMINISTRATIVE PAY PLAN BY DELETING THE POSITION OF ASSISTANT TO THE POLICE CITIZENS REVIEW BOARD {PCRB). WHEREAS, Resolution No. 01-54, adopted by the City Council on March 5, 2001, authorized permanent positions in the City Clerk's Office for FY02; and WHEREAS, Resolution No. 0%167, adopted by the City Council on June 12, 2001, established a classification/compensation plan for Confidential/Administrative employees; and WHEREAS, a permanent part time position has been assigned to the PCRB since September 10, 1997; and WHEREAS, at their work sessions on June 11 and June 25, the City Council decided the duties of the administrative assistant be directed to the City Clerk and the office presently located in the Senior Center be closed. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA THAT: 1. The budgeted positions in the City Clerk's Office be amended by the deletion of one part-time Assistant to PCRB. 2. The Confidential/Administrative pay plan be amended by the deletion of the position of Assistant to PCRB, pay grade 24. Passed and approved this 10th day of Off,e It was moved by Vande~'hoef and seconded by 0' Donne'l l the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilburn hurnanrel\res~CRl~asstdoc RESOLUTION NO. 01-211 A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED $40,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF REVENUE BONDS (ACT, INC. PROJECT) OF IOWA CITY, IOWA, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE, AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND DECLARING AN OFFICIAL INTENT TO REIMBURSE WHEREAS, Iowa City, Iowa (the "Issuer") is a municipal corporation organized and existing under the Constitution and laws of the State of Iowa, and is authorized and empowered by Chapter 419 of the Code of Iowa (the "Act"), to issue revenue bonds and loan the proceeds from the sale of said bonds to one or more parties to be used to defray all or a portion of the cost of acquiring, constructing, improving and equipping a "project", as that term is defined in the Act, including land, buildings arid improvements suitable for use as a facility for an organization described in Section 501 (c)(3) of the Internal Revenue Code which is exempt from federal income tax under Section 501 (a) of the Internal Revenue Code (a "Tax Exempt Organization"); and .. WFIEREAS, the Issuer has been requested by ACT, Inc., an Iowanonprofit corporation and a Tax Exempt Organization (the "Borrower"), to authorize and issue its revenue bonds pursuant to the provisions of the Act for the purpose of financing or reimbursing original expenditures incurred to pay all or a portion of the cost of (i) constructing and equipping additional research-service facilities at the Borrower's existing complex at the southeast comer of the 1-80 and Highway 1 interchange in Iowa City, Iowa and related site development (the "Project") and (ii) paying related costs, including costs of issuance of the Bonds; and WHEREAS, the Issuer has determined that the mount necessary to defray the cost of the Project, including necessary expenses incidental thereto, will require the issuance by the Issuer of not to exceed $40,000,000 aggregate principal amount of its Revenue Bonds (the "Bonds") pursuant to the provisions of the Act, and it is proposed that the Issuer loan said amount to the Borrower under a Loan Agreement between the Issuer and Borrower pursuant to which loan payments will be made by the Borrower in amounts sufficient to pay the principal of, interest and premium, if any, on said Bonds, as and when the same shall be due; and WHEREAS, the Bonds, if issued, shall be limited obligations of the Issuer, and shall not constitute nor give rise to a pecuniary liability of the Issuer or a charge against its generai credit or taxing powers, and the principal of, interest and premium, if any, on the Bonds shall be payable solely out of the revenues derived from the Loan Agreement; and WHEREAS, the Borrower wishes to proceed with the Project and reasonably expects to pay a portion of the costs of the Project prior to the issuance of the Bonds and wishes to reimburse original expenditures paid from its own fitnds with proceeds of the Bonds, and in order to comply with Treasury Regulation 1.150-2, it is necessary for the Issuer to declare an official intent to -3- reimburse original expenditures paid by the Borrower from its own funds with proceeds of the Bonds; and WHEREAS, there has been presented to the City Council (the "Governing Body") a Memorandum of Agreement, attached hereto as Exhibit A which sets forth certain mutual undertakings and agreements between the Issuer and the Borrower, relating to the further processing and issuance of said Bonds, and the Issuer believes it desirable and in its best interest that said Memorandum of Agreement be executed for and on behalf of the Issuer; and WHEREAS, before the Bonds may be issued, it is necessary to conduct a public hearing on the proposal to issue the Bonds, all as required and provided by Section 419.9 of the Act and Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"). NOW, THEREFORE, Be It and It Is Hereby Resolved by the Governing Body of the Issuer as follows: Section 1. At the request of the Borrower, the City Manager shall give notice and conduct a public hearing on the proposal to issue not to exceed $40,000,000 aggregate principal amount of the Issuer's Revenue Bonds (ACT, Inc. Project) pursuant to the provisions of the Act, for the purpose of financing or reimbursing original expenditures incurred to pay all or part of the cost of the Project, including necessary expenses incidental thereto, and all local residents who appear at said hearing shall be given an opportunity to express their views for or against the proposal to issue such Bonds; and at or following said heating, or any adjoumment thereof, this Governing Body shall adopt a Resolution determining whether or not to proceed with the issuance of said Bonds. Section 2. Based upon representations of the Borrower, it is reasonably expected that original expenditures for a portion of the Project costs will be paid from the Borrower's own funds prior to the issuance of the Bonds and the Issuer hereby declares an official intent in accordance with Treasmy Regulation I. 150-2 to reimburse such original expenditures with proceeds of the Bonds. Section 3. In order to assure that the Project can go forward, it is deemed necessary and advisable that the Memorandum of Agreement, in the form attached hereto as Exhibit A, be approved and that the Mayor of the Issuer be and hereby is authorized and directed to execute said Memorandum of Agreement and the City Clerk of the Issuer be and hereby is authorized to attest the same and to affix the seal of the Issuer thereto and said Memorandum of Agreement is hereby made a part of this Resolution. Section 4. Officials of the Issuer are hereby authorized to take such further action as may be necessary to carry out the intent and purpose of this Resolution and the Memorandum of Agreement. Section 5. All Resolutions and Orders or parts thereof, in conflict herewith are, to the extent of such conflict, hereby repealed, and this Resolution shall be in full force and effect immediately upon its adoption. -4- Adopted and approved July 10, 2001. City of Iowa City, Iowa Attest: -5- (This Notice to be posted) NOTICE AND CALL OF MEETING Governmental Body: The City Council of Iowa Ci[y, Iowa Date of Meeting: July 10, 2001 Time of Meeting: 7: 00 .E_.m Place of Meeting: Civic Center 410 E. Washington Street Iowa City, Iowa PUBLIC NOTICE IS HEREBY GiVEN that the above-mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for said meeting is as follows: I. Resolution Regarding the Issuance of Not to Exceed $40,000,000 Aggregate Principal Amount of Revenue Bonds (ACT, Inc. Project) of the City of Iowa City, Iowa, Directing Publication of a Notice of Intention to Issue, Authorizing Execution of a Memorandum of Agreement and Declaring an Official Intent to Reimburse. 2. Such additional matters as are set fo~h on the additional /S' page(s) attached hereto (attach copy of agenda). This notice is given at the direction of the Mayor, pursuant to Chapter 21, Iowa Code, as amended, and the local rules of said governmental body. -6- CITY CLERK'S CERTIFICATE I, the undersigned, being first duly swom do hereby depose and certify that I am the duly appointed, quaiified, and acting City Clerk of the City of Iowa City, Iowa; that as such I have in my possession, or have access to, the complete corporate records of said City and of its City Council and officers; that I have carefully compared the transcript hereto attached with the aforesaid corporate records; and that said transcript hereto attached is a true, correct and complete copy of all the corporate records showing the action taken by the City Council of said City at a meeting open to the public on July 10, 2001, regarding the issuance of not to exceed $40,000,000 aggregate principal amount of Revenue Bonds (ACT, Inc. Project) of the City of Iowa City, Iowa, directing publication of a notice of intention to issue, authorizing execution of a Memorandum of Agreement and declaring an official intent to reimburse; that said proceedings remain in full force and effect and have not been amended or rescinded in any way; that said meeting and all action thereat was duly and publicly held, with members of the public in attendance, in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the City Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the City Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the City Council and the provisions of Chapter 21, Iowa Code, and upon reasonable advance notice to the public and media at least 24 hours prior to the commencement of the meeting as required by said law. Witness my hand and the Corporate Seal of said City hereto affixed this 10th day of July, 2001. -7- EXHIBIT A MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is between the City of Iowa City, Iowa, party of the first part (the "Issuer"), and ACT, Inc., an Iowa nonprofit corporation, party of the second part (the "Borrower"). 1. Preliminary Statement. Among the matters of mutual inducement which have resulted in the execution of this Agreement are the following: (a) The Issuer is a municipal corporation of the State of Iowa, authorized and empowered by the provisions of Chapter 419 of the Code of Iowa (the "Act"), to issue its bonds for the purpose of financing all or a portion of the cost of acquiring, consreacting, improving and equipping a "project", as that term is defined in the Act, including land, buildings and improvements suitable for use as a facility for an organization described in Section 501 (c)(3) of the Internal Revenue Code which is exempt from federal income tax under Section 501(a) of the Internal Revenue Code (the "Tax Exempt Organization"); and Co) The Issuer proposes to issue its Revenue Bonds (the "Bonds") and to loan to the Borrower the proceeds from the sale of the Bonds to enable the Borrower to finance or reimburse original expenditures incurred to pay all or a portion of (i) constructing and equipping additional research-service facilities at the Borrower's existing complex at the southeast comer of the 1-80 and Highway 1 interchange in Iowa City, Iowa and related site development (the "Project") and (ii) paying related costs, including costs of issuance of the Bonds; and (c) Representatives of the Issuer have indicated the willingness of the Issuer to proceed with and effect such financing and the Issuer has advised the Borrower that, subject to the public hearing and to due compliance with all requirements of law and the obtaining of all necessary consents and approvals and to the happening of all acts, conditions and things required to exist, happen and be performed precedent to and in connection with such financing in due time, form and manner as required by law, the Issuer, by virtue of such statutory authority as may now exist or may hereafter be conferred, will issue and sell its Bonds in an amount sufficient to finance all or a portion of the cost of completing the Project. 2. Undertakings on the Part of the Issuer. The Issuer agrees as follows: (a) Subject to the heating and all other requirements of law, that it will authorize, or cause to be authorized, the issuance and sale of its Bonds, pursuant to the terms of the Act as then in force, in an aggregate principal amount not to exceed $40,000,000. (b) That it will cooperate with Borrower to sell the Bonds upon mutually agreeable terms, and it will adopt, or cause to be adopted, such proceedings and authorize the execution of such documents as may be necessary or advisable for the authorization, issuance and sale of the Bonds, -1- and the entering into a Loan Agreement with the Borrower, all as shall be authorized by law and mutually satisfactory to the Issuer and the Borrower. (c) That the aggregate basic payments (i.e. the payments to be used to pay the principal of, premium, if any, and interest on the Bonds) payable under the Loan Agreement shall be such sums as shall be sufficient to pay the principal of, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. (d) That it will take or cause to be taken such other acts and adopt such further proceedings as may be required to implement the aforesaid undertakings or as it may deem appro- priate in pursuance thereof. 3. Undertakings on the Part of the Borrower. The Borrower covenants and agrees as follows: ' (a) That it will cooperate with the Issuer to sell the Bonds in an aggregate principal amount as above stated; provided, however, that the terms of the Bonds and of the sale and delivery theregf shall be mutually satisfactory to the Issuer and the Borrower. (b) That contemporaneously with the sale of the Bonds it will execute a Loan Agreement with the Issuer under the terms of which the Borrower will obligate itself to pay to the Issuer sums sufficient in the aggregate to pay the principal of, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable, such instrument to contain other provisions required by law and such other provisions as shall be mutually acceptable to the Issuer and the Borrower. (c) That it will take such further action and adopt such further proceedings as may be required to implement its aforesaid undertakings or as it may deem appropriate in pursuance thereof. 4. General Provisions. (a) All commitments of the Issuer under paragraph 2 hereof and of the Borrower under paragraph 3 hereof are subject to the condition that on or before July 31, 2002 (or such other date as shall be mutually satisfactory to the Issuer and the Borrower), the Issuer and the Borrower shall have agreed to mutually acceptable terms for the Bonds and of the sale and delivery thereof, and mutually acceptable terms and conditions of the documents referred to in paragraph 3 and the proceedings referred to in paragraphs 2 and 3 hereof. (b) Whether or not the events set forth in (a) of this paragraph take place within the time set forth or any extension thereof, the Borrower agrees that it will reimburse the Issuer for all reasonable and necessary direct out-of-pocket expenses which the Issuer may incur, including but not limited to, legal fees, printing and publication costs and filing fees arising from the execution of this Agreement and the performance, or preparation to perform by the Issuer of its obligations here- under, or done at the request of the Borrower. -2- (c) All cormitments of the Issuer hereof are further subject to the conditions that the Issuer, and its elected and appointed officials, shall in no event incur any liability for any act or omission hereunder, and that the Bonds described herein shall not constitute an indebtedness of the Issuer within the meaning of any constitutional or statutory provision and shall not constitute nor give rise to a pecuniary liability of the Issuer or a charge against its general credit or taxing powers. (d) Preparation of all resolutions, agreements, instruments, certificates or other documents in final form for adoption and execution shall be the sole responsibility of Bond Counsel. (e) Counsel for the Issuer shall timely certify the non-existence of threatened litigation, pending litigation or claims with respect to the proposed Bond issue. All other attomey's opinions or certificates with respect to issuing authority, non-arbitrage, regularity of proceedings, or otherwise shall be the responsibility of Borrower Counsel or Bond Counsel. IN WITNESS WHEREOF the parties hereto have entered into this Agreement by their officers thereunto duly authorized as of the 10th day of July, 2001. City of Iowa City, Iowa (Seal) Mayor Attest: City Clerk ACT, Inc. By NJACKSOI'h285052\l\99500002 -3- RESOLUTION NO. A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED $40,000,000 IN AGGREGATE PRINCIPAL AMOLrNT OF REVENUE BONDS (ACT, INC. PROJECT) OF IOWA CITY, IOWA, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE, AUTHOR/ZING EXECUTION OF A MEMORANDUM DECLARING AN OFFICIAL INTENT TO REIMBURSE Iowa City, Iowa (the "Issuer") ' and existing of the State of Iowa, and is 419 of the "Act"), to issue revenue bonds proceeds from the sale of said bonds to ~arties to be used to defray all a of the cost of acquiring, iect", the Act, including land, buildings and ' suitable for use as an organization described in Section 501(c)(3) of the Code which is federal income tax under Section 501(a) ~ode (.. ); and WHEREAS, the Issuer ~ r ACT, Inc., an Iowa nonprofit corporation and a Tax Exempt Organization (the and issue its revenue bonds pursuant to the provisions of the Act for the or reimbursing original expenditures incurred to pay all or a portion of the and equipping additional research service facilities at the Borrower's existing at the southeast comer of the 1-80 and Highway 1 interchange in Iowa City, "Project") and (ii) paying related costs, including costs of issuance of the s; and WHEREAS, the Issuer has de the amount necessary to defray the cost of the Project, including will require the issuance by the Issuer of not to exceed $40,000,000 a Bonds (the "Bonds") pursuant to the provisions of the Act, and it i loan said amount to the Borrower under a and Borrower loan payments will be made by of, interest and premium, if any, on said Bonds, as and when the same ~ be due; and WHEREAS, the Bon s, if issued, shall be limited o ligations of the Issuer, and shall not constitute nor give rise to a p~ cuniary liability of the Issuer or charge against its general credit or taxing powers, and the prin ipal of, interest and premium, if a y, on the Bonds shall be payable solely out of the revenues erived from the Loan Agreement; an original expenditures p d from its own funds with proceeds of the Bonds, and in order to comply with Treasury Regula 0 2 t xs necessary fo the Issu r to declare an official Intent to -3- reimburse original expenditures paid by the Borrower from its own funds with proceeds of the Bonds; and WHEREAS, there has been presented to the City Council (the "Goveming Body") a Memorandum of Agreement, attached hereto as Exhibit A which sets forth certain mutual undertakings and agreements between the Issuer and the Borrower, relating to the further processing and issuance of said Bonds, and the Issuer believes it desirable and in its best interest that said Memorandum of Agreement be executed for and on behalf of the Issuer; and ~ be issued, it is public heating on the proposal to issue all as required and provided by ~ and Section 147(1') of the Intemal ;, as amended '). NOW, THEREFORE. It Is Hereby Resolved ' the Goveming Body of the Issuer as follows: Section 1. At the of the the City Manager shall give notice and conduct a public heating to issue to exceed $40,000,000 aggregate principal amount of the Issuer's Revenue Bonds ~ Inc. ;ct) pursuant to the provisions of the Act, for the purpose of financing or reimbursir, ,enditures incurred to pay alI or part of the cost of the Project, including thereto, and all local residents who appear at said hearing shall be given an c :xpress their views for or against the proposal to issue such Bonds; and at or following said or any adjournment thereof, this Governing Body shall adopt a with the issuance of said Bonds. Section 2. f the Borrower, it is reasonably expected that original expenditures for a portion of the ; will be paid from the Borrower's own funds prior to the issuance of the Bonds and intent in accordance with Treasury Regulation I. 150-2 to expenditures with proceeds of the Bonds. Section 3. go forward, it is deemed necessary and advisable that the Memorandum in the attached hereto as Exhibit A, be be and hereby is to execute said Memorandum of Agreement and t City Clerk of the Issuer~ and hereby is authorized to attest the same and to affix the seal i is hereby made a part of this Resolution. Section 4. Official are hereb3 to take such further action as may be necessary to carry out intent and purpose of this Resolution and the Memorandum of Agreement. Section 5. Orders or parts thereof, in conflict herewith are, to the extent of such conflict, lealed, and this Resolution shall be in full force and effect immediately upon its ado -4- Adopted and approved July 10, 2001. (Seal) Mayor Attest: City Clerk EXHIBIT A MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT is be een the City of Iowa City, Iowa, party of the first part (the "Issuer"), and ACT, Inc., an Iowa non rofit corporation, party of the second part (the "Borrower"). 1. Preliminary Stat ment. Among th matters of mutual inducement which have resulted in the execution of this cement are the oilowing: (a) The Issuer is a munic al corpora on of the State of Iowa, authorized and empowered by the provisions of Chapter 419 oft Code Iowa (the "Act"), to issue its bonds for the purpose of financing all or a portion of the c st of cquiring, constructing, improving and equipping a which is exempt from federal income ~a) of the Internal Revenue Code (the "Tax Exempt Organization"); and (b) The Issuer proposes Revenue Bonds (the "Bonds") and to loan to the Borrower the proceeds of the Borrower to finance or reimburse original expenditures incurred to · all or a (i) constructing and equipping additional research :complex at the southeast corner of the 1-80 and Highway 1 interchang, Iowa elated site development (the "Project") and (ii) paying related costs, 'the Bonds; and (c) Issuer have il gness of the Issuer to proceed with and and the Issuer has ised the Borrower that, subject to the public hearing and to due all reql ' of law and the obtaining of all necessary consents and approvals ~ to the happening of all ~ conditions and things required to exist, happen and be 17 precedent to and ' financing in due time, form and the Issuer, by virtue of such s , authority as may now exist or may hereafter be conferred, issue and sufficient to finance all or a portion Project. 2. akings on the Part of the Issuer. follows: (a) to the hearing and all other reql ~f law, that it will authorize, or cause to be authorized, the issuance and sale of its Bonds to the terms of the Act as then in force, in an aggregate principal amount not to exceed (b) ,qThat it will cooperate with Borrower to and it will ', , ' execution of such -1- and the entering into a Loan Agreement with the Borrower, all as shall be authorized by law and mutually satisfactory to the Issuer and the Borrower. (c) That the aggregate basic payments (i.e. the payments to be used to pay the principal of, premium, if any, and interest on the Bonds) payable under the Loan Agreement shall be such sums as shall be sufficient to pay the principal of, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. (d) That it will cause to be taken other acts and adopt such further proceedings as may be required ( undertakings or as it may deem appro- priate in pursuance thereof. 3. Undertakings on 'art The Borrower covenants and agrees as follows: (a) That it will cooperate sell the Bonds in an aggregate principal amount as above stated; provided terms of the Bonds and of the sale and delivery thereof shall be mutually satisfactor and the Borrower. Co) sale of the Bonds it will execute a Loan Agreement with the Issuer under the terms obligate itself to pay to the Issuer sums sufficient in the aggregate to pay the interest and redemption premium, if any, on the Bonds as and when the same shall and payable, such instrument to contain other provisions required by shall be mutually acceptable to the Issuer and the Borrower. (c) That it will take further action a [ adopt such further proceedings as may be required to implement s or pursuance thereof. 4. General Pro (a) All ~ of the Issuer under hereof and of the Borrower under iect to the condition that July 31, 2002 (or such other date as shall be mutually have agreed terms for the Bonds and, sale and delivery thereof, and mutually acceptable/elms and conditions of the documents to in paragraph 3 and the proceedings referre.d/to in paragraphs 2 and 3 hereof. (b) Wl:~ether or not the events set forth in (a) of this paragraph take place within the time set forth or any ~xtension thereof, the Borrower agrees that it will reimburse the Issuer for all reasonable and ~ecessary direct out-of-pocket expenses which the Issuer may incur, including but not limited to, ~gal fees, printing and publication costs and filing fees arising from the execution of -2- (c) All commitments of the Issuer hereof are further subject to the conditions that the Issuer, and its elected and appointed officials, shall in no event incur any liability for any act or omission hereunder, and that the Bonds described herein shall not constitute an indebtedness of the Issuer within the meaning of any constitutional or statutory provision and shall not constitute nor give rise to a pecuniary liability ofth/e/Lssuer or a charge against its docum in a p io e 'of Bond Counsel. (e) Counsel for the Issuer shall timel, litigation, pending litigation or claims with respect to the e. All other attomey's opinions or certificates with respect to issuing authorit~ proceedings, or otherwise shall be the responsibility of Borrower Counsel or 1~ IN WITNESS the parties have entered into this Agreement by their officers thereunto duly authorized of the 1( of July, 2001. City of Iowa City, Iowa (seal) Mayor Attest: City Clerk ACT, Inc. NJACKSON~285052\IL09500002 -3- FILED Richard L FerBuson President CITY CLERK IOWA CI] IOWA June 27, 2001 Ernest W. Lehman Mayor City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Dear Mayor Lehman: ACT, Inc. (formerly the American College Testing Program), began operations in Iowa City in 1959. During our first decade, we had a relatively small number of employees, most all of whom worked on one program, the ACT Assessment. That program has grown enormously over the years and is now used yearly by thousands of high schools and colleges and reaches nearly two million students. While college admissions testing remains a vital and important part of our work, ACT has evolved both in terms of the number of employees and diversity of programs and services. Because ACT was founded to serve the public trust, we are governed by a 15-member Board of Trustees whose members are representative of the educational institutions, agencies and businesses that we serve. We are now a company of over 1,300 employees with offices in ten states and the District of Columbia. While we've had many opportunities to relocate, we've consciously committed to Iowa City as the primary base for our operations. Our growth over the years has been fueled by a firm commitment to our mission providing information helpful to individuals making decisions about education and career at various points in their lives. ACT programs and services now encompass educational assessments, career guidance programs, financial aid services, workforce development resources, and contract services both in the U.S. and abroad. Most recently, we have undertaken the creation of a network of hundreds of ACT Centers that will facilitate distance leaming and assessment of all types via the Intemet and other media. ACT is now contemplating additions to our headquarters facilities in Iowa City. As you know, ACT owns approximately 250 acres on the southeast comer of the 1-80 and Highway 1 interchange. It's our desire to construct a new building complex of approximately 170,000 square feet. This new complex will be the cornerstone of our research and development efforts at the beginning of this new century. Because we anticipate continued growth in the future, we have already projected sites for future ACT buildings, and for buildings that might be occupied by other research organizations complementary of ACT's mission. We believe that ACT's continued investment in the community will provide long-term benefits, both tangible and intangible, to Iowa City by greatly enhancing the area' s general economic vitality, broadening its industrial base, enhancing employment opportunities, and increasing property tax revenue. 2201 North Dodge Street RO. Box ~68 Iowa City, Iowa 52243-0t68 319/337-1079 fax 319/337-1059 ferguson@act.org www. act.org Ernest J. Lehman June 27, 2001 Page 2 To facilitate the planned expansion of our facilities, we are requesting that the City of Iowa City assist in a very important way. As a 501(c)(3) educational organization, we would like to utilize the municipal support specifically afforded by Section 419.2(9), or similar provisions of the Iowa Code, for bond financing of the project, with Iowa City as the issuer. Without any financial risk to the City, such tax exempt bond financing can play an important role in helping assure affordable financing for the project, thereby making it feasible for ACT to proceed with this project in a timely way. The City's assistance in this matter will make an important statement to our Board of Trustees, to other businesses in the area, and to organizations contemplating a presence in Iowa City, a statement that the City is committed to supporting development that is of mutual benefit to both the City and its business community. I am respectfully requesting that the City begin the process of implementing the bond financing on our behalf. We will especially appreciate your efforts to expedite the implementation process as our plans to proceed with the financing of our project in this fashion are obviously conditioned upon the City's assistance in the manner requested. We look forward to working with you and your staff on this very important project for both ACT and the City. Please contact me concerning the steps we need to be taking to advance the requests described above. Should the members of the City Council and/or staff require further information, do not hesitate to call. Sincerely, Richard L, Ferguson President, Ph.D. c: Mr. Steve Atkins Mr. Tom Gelman Mr. Thomas Goedken Mr. David Schoon City of Iowa City MEMORANDUM DATE: July 3, 2001 TO: Steve Atkins, City Manager . FROM: Kevin O'Malley, Finance Director 7~' C/'~/LrL~/2~, RE: ACT Inc's. request for issuance of $40,000,000 reve;~ bonds ACT Inc. is planning a major expansion at its location on North Dodge Street. To finance that expansion, ACT has requested that the City of Iowa City issue 501 (c)(3) educational organization revenue bonds on their behalf. The City of Iowa City is empowered by Chapter 419 of the Code of Iowa to issue bonds for qualifying projects of nonprofit organizations. Although the City of Iowa City issues these bonds, the repayment obligation rests entirely with the nonprofit organization. Nonprofit organizations commonly utilize these types of financial instruments to reduce their costs of borrowing. ACT Inc. is a 501(c)(3) educational organization (nonprofit corporation) under the rules of the IRS Code and the proposed facility meets the definition of an eligible project as defined in Chapter 419 of the Code of Iowa. All costs of issuance, including bond counsel, will be paid by ACT Inc. The City in essence acts solely as an conduit in this transaction, and no financial liability will accrue to the City. I recommend that the City approve this transaction. Indexbc\memos~ACTbond .doc Prepared by: Sarah Holecek, First Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 RESOLUTION NO. 01-212 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A GUARANTY AND SHORT-TERM FINANCING AGREEMENT BETWEEN THE CITY OF IOWA CITY, TERRY L. STAMPER HOLDINGS, L.L,C. AND THE UNIVERSITY OF IOWA COMMUNITY CREDIT UNION WHEREAS, in June, 2001, the City of Iowa City entered into an agreement with Terry L. Stamper Holdings L.L.C. ["TLS"] for shod-term financing to allow TLS to take full advantage of this construction season for the installation of public improvements while seeking financing; and WHEREAS, in lieu of the City providing actual funds to TLS, the University of Iowa Community Credit Union has agreed to assume the City's obligations to provide shod-term financing to TLS per the terms of the June 2001 agreement upon the City's guarantee of the loan; and WHEREAS, all terms from the prior agreement minimizing the City's financial risk by providing that TLS shall not take title to the First Addition until such time as permanent financing is secured and all sums expended by the Credit Union and/or City are repaid have been preserved; and WHEREAS, it is in the public interest for the City to guarantee the Credit Union's shod-term financing to TLS for the installation of infrastructure in the Peninsula Neighborhood First Addition in lieu of the City providing actual funds for said construction. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. The Mayor is authorized to sign and the City Clerk to attest the Shod-Term Financing and Guaranty Agreement between the City, Terry L Stamper Holdings, L.L.C., and the University of Iowa Credit Union. Passed and approved this ].0th day of ,]u'l v ,20 03.. Sarah\peninsulaVesolution UI CU TLS financing agreernent doc Resolution No. 01-212 Page 2 It was moved by Pfab and seconded by Vanderhoef the Resolution be adopted, and upon roll call them were: AYE S: NAYS: ABSENT: X Champion X Kanner X Lehman X O'Donnell X Pfab X Vanderhoef X Wilbum SHORT-TEI~M FINANCING AND GU/~,~a&NTY AGREF/4ENT A. INTRODUCTION This short-term financing and guaranty Agreement is hereby made and executed by, between and among the City of Iowa City (hereinafter referred to as "City"), 410 E. Washington Street, Iowa City, Iowa 52240, as guarantor, and T.L. Stamper Holdings, L.L.C. (hereinafter referred to as ~TLS" and/or "Developer"), 6399 Norton Street, Troy, Michigan 48098, as borrower, and the University of Iowa Community Credit Union (hereinafter referred to as ~Credit Union"), as lender. The City is a municipal corporation organized under the laws of the State of Iowa, and TLS is a Limited Liability Corporation organized under the laws of the State of Michigan and the Credit Union is a financial institution primarily located in the City of Iowa City, Iowa, 825 Mormon Trek Blvd., iowa City, Iowa 52246. This Agreement outlines the terms and conditions and relative rights and responsibilities of the City, as the owner of real estate known as The Peninsula and guarantor of the loan and line of credit to TLS, and TLS, as borrower and developer, for guaranteed short- term financing of the infrastructure necessary to support The Peninsula Neighborhood First Addition (hereinafter "First Addition"),a 12.09-acre site owned in fee by the City and platted as the Peninsula Neighborhood First Addition. Said loan 07/10/01-2 1 and line of credit is being made by the Credit Union to TLS and is guaranteed by the City of Iowa City in accordance with the terms hereof. For and in consideration of the mutual promises set forth herein, the parties hereby agree as follows: B. LINE OF CREDIT, ELIGIBLE EXPENSES AND METHOD OF ACCESS/PAYMENT. The City agrees to act as guarantor of a ~Line of Credit" that is non-revolving in an amount not to exceed $690,000.00, said monies being lent by the Credit Union to and on behalf of TLS for the payment of expenses directly associated with the installation of infrastructure within the First Addition. Said eligible expenses shall include costs of site preparation, grading, road construction, paving, installation of sanitary sewer (including lift station), water main, storm sewer, storm water detention and utilities, and shall also include those ~soft costs" such as design, engineering and project management associated with the installation of said infrastructure. To access said line of credit, TLS shall submit a monthly statement of charges for materials or services rendered for the above-stated purposes to the Credit Union in care of Lynn Rowat at P.O. Box 2630, Iowa City, Iowa 52244. A copy shall also be provided to Kevin O'Malley, Director of the City Finance Department. Said statements filed by TLS for payment shall include copies of the actual billing statements received by TLS 07/10/01-2 2 from material suppliers, contractors, and/or other eligible service providers (hereinafter "eligible provider"). The Credit Union and City shall promptly review statements for eligibility. Upon approval by City and Credit Union, the Credit Union shall promptly issue a negotiable draft jointly payable to TLS and the eligible provider. Approval by the Credit Union and City shall not be unreasonably delayed or denied. Upon issuance of said negotiable draft, the line of credit shall be debited for the amount of the draft. The Credit Union shall have the right, but not the obligation, to pay any statement deemed by the Credit Union to be ineligible without waiving any legal and/or equitable rights to the enforcement of the terms of this Agreement. Lien waivers shall be produced by TLS and/or eligible providers upon request by the Credit Union. TLS shall be entitled to request conditional pre-Approval prior to incurring any expenditure provided such expenditure is reasonably documented as to vendor and amount. If conditional pre-Approval is given by City and Credit Union, the Credit Union shall promptly issue a draft upon presentation to City of Billing statements received by TLS regarding such pre-approved charges. C. TERMAND ALTERNATIVE FINANCING This Agreement shall become binding and effective when approved and executed by TLS, the Iowa City City Council and the Credit Union, and shall remain effective for a term of 180 calendar 07/10/01-2 3 days or until TLS secures construction financing for the installation of the infrastructure of the First Addition from a alternative source, whichever occurs first. Upon TLS securing alternative financing and payment in full of any and all outstanding indebtedness to the Credit Union, the City's guaranteed obligation to the Credit Union for said loan shall be terminated and any statements that have been submitted to the Credit Union, but remain unpaid, shall be promptly returned to TLS. The City and Credit Union shall have as their sole option, the right to extend the terms of this Agreement upon further authorization of the Iowa City City Council and the Credit Union through an appropriate written amendment executed by the City, Credit Union and TLS. Notwithstanding anything to the contrary, the terms of this Agreement shall be extended to one (1) year from its execution in the event of Economic Impracticality. "Economic Impracticalits' means and includes (1) an economic depression, as determined by the United States Government; (2) an increase of more than four percent (4%) in the Standard Federal Bank 30- year residential mortgage secured interest rate offered to borrowers of less than $200,000 paying two discount points and making a 20% down payment; (3) the unavailability of skilled housing labor, or the unavailability of building material; or 07/10/01-2 4 (4) the unavailability of financing due to the outbreak of war or abnormal weather conditions. But it is further understood that any and all funds advanced under this Agreement by the Credit Union to TLS shall continue to bear the interest rate of nine percent (9%) per annum until paid in full. D. INTEREST AND REPAYMENT Sums lent to, and expended by the Credit Union on behalf of TLS and/or its subcontractors shall accrue interest at the rate of nine percent (9%) per annum beginning from the date each such debit is posted to the line of credit and ending on the date the debt is paid in full. It is understood that this is a non- revolving line of credit and that the maximum amount of said loan shall not exceed $690,000.00. The details of said loan are shown and incorporated by reference herein on Exhibit ~W' and labeled ~Promissory Note". In the event TLS defaults and City makes payment to Credit Union under the terms of the Guaranty, TLS shall become indebted to City on the same terms as those governing its loan from the Credit Union as set forth in said promissory note and TLS agrees to pay to City all amounts paid by City to Credit Union plus interest at the rate of nine percent (9%) per annum from the date payment is made by City until repaid by TLS in full. TLS shall repay to the Credit Union all sums and charges and accrued interest as outlined above, upon the earliest to occur 07/10/01-2 5 of (a) when TLS secures construction financing or (b) at the expiration of this Agreement in 180 days. TLS further agrees to pay any out-of-pocket expenses incurred by the Credit Union in connection with the drafting of these loan documents, which shall not exceed $1,500.00. Said expenses shall be immediately debited from the line of credit once all documentation has been executed by all parties hereto. E. COMPLETION OF CONDITIONS PREDECENT a. As a condition precedent to the City having any obligation to guarantee said line of credit and payment to the Credit Union, TLS shall provide the City with a letter from an independent public accountant selected by TLS stating that said accountant has reviewed financial statements from TLS which have been prepared in conformity with generally accepted accounting principles, that the examination of such financial statements by such accountant has been undertaken in accordance with generally accepted auditing standards, and that TLS is financially capable of fulfilling its obligations under this Agreement, provided the prospective lender is also entitled to secure any loan extended to TLS against the property and improvements within the First Addition. Should TLS fail to provide such a letter as outlined in this Section, City shall have no obligation to establish a guaranty under the terms of this Agreement. It is fully 07/10/01-2 6 understood by all parties that upon execution of this Agreement, all conditions precedent shall have been satisfactorily completed and presented to the City, and the City guarantees all of the aforementioned monies lent by the Credit Union to or on behalf of TLS in accordance with the terms of this Agreement. b. As a condition precedent to City having any guaranty obligations, TLS shall provide to City reasonable documentation of TLS' contractual relationships with contractors and/or builders who will be providing services and/or constructing buildings within the First Addition. Should TLS fail to provide such documentation as outlined above, City shall have no obligation to establish a guaranty under the terms of this Agreement. By the execution of this Agreement the City does hereby state that the condition precedent has been fully satisfied and guarantees to the Credit Union all of the obligations of TLS cited in this Agreement to the Credit Union in accordance with the terms of this Agreement. F. INDEMNIFICATION AND CERTIFICATE OF INSURANCE TLS hereby agrees to indemnify, defend and hold harmless the City and Credit Union, their agents, assigns, successors and employees, from any and all claims and damages whatsoever resulting from TLS' construction, installation and operation of the infrastructure and TLS' use and occupation of the First Addition property. Further, the parties agree that TLS shall 07/10/01-2 7 not be acting as the City's or Credit Union's agent during the construction and installation of said First Addition infrastructure. Further, prior to TLS occupying said real property and/or commencing installation of infrastructure within the First Addition, TLS shall provide certificates of insurance to City and Credit Union naming the City and Credit Union as additional insureds for the amounts and types of coverage listed below: Type of Coverage a. Comprehensive General Liability Each Occurrence Aggregate (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. The City and Credit Union require that the Contractor's Insurance carrier be A rated or better by A.M. Best. G. Preceding TLS/City Short-Term Financing Agreement TLS and City hereby acknowledge that they entered into a Peninsula Neighborhood First Addition Short-Term Financing Agreement dated June 26, 2001 (hereinafter "TLS/City Financing Agreement"). With respect to the terms, conditions and obligations of said agreement, the parties do hereby agree as follows: a. The execution of this Short-Term Financing and Guaranty Agreement by the Credit Union, City and TLS shall satisfy all obligations of City under the TLS/City Financing 07/10/01-2 8 Agreement to extend credit to or finance TLS or the Peninsula Neighborhood First Addition. b. In the event City is required to make payments to Credit Union pursuant to the terms of this Short-Term Financing and Guaranty Agreement, City shall have all remedies under the original TLS/City financing agreement as well as the option to terminate the original Peninsula Neighborhood Development Agreement between City and TLS dated June 29, 2000 and recorded July 11, 2000, at Book 2986, Page 49, as amended, by written notice to TLS. Termination shall result in and effect a forfeiture of any and all interest TLS has, whether equitable or inchoate, in said Agreement, and any and all interest TLS has in infrastructure and improvements installed within the Peninsula Neighborhood. In the event City elects to exercise this option, all sums paid by City under this Agreement shall become "non-recourse" and City shall release any claim for their repayment. It is further understood and agreed that the City will remain liable as a guarantor on any sums advanced by the Credit Union including interest. The Credit Union agrees that if the City's termination and forfeiture option is exercised by the City, the Credit Union, as its sole remedy, will seek repayment of all funds advanced, plus interest, only from the City, which the City has guaranteed both by this document and by the promissory note signed by TLS. c. All other terms of the TLS/City Financing Agreement not specifically modified by this section, including, without limitation, the release by TLS of claims based on and/or resulting from any real and/or perceived delay in the Peninsula Neighborhood Development Project arising out of or relating to any action or complaint by the Elks, shall remain in full force and effect. I. NOTICES All notices, requests, demands and other communications that are required or permitted to be given under this Agreement will be 0 7/10/0 1-2 9 in writing and will be deemed to have been sufficiently given for all purposes hereunder if (a) delivered personally to the party to whom the same is directed, or (b) sent by certified mail, postage prepaid, return receipt requested, at the addresses identified below; or to such other party at such other address as shall be given in writing in accordance herewith. If the City or City Authorities,to: City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Attention: Steve Atkins, City Manager With copies to: Eleanor Dilkes, City Attorney Karin Franklin, Director of Planning And Community Development If T.L. Stamper Holdings, L.L.C., to: T.L. Stamper Holdings, L.L.C. 6399 Norton Street Troy Michigan 48098 Attention: Terry L. Stamper, President With a copy to: Lawrence Shoffner, Jaffe Raitt One Woodward, Suite 2400, Detroit, MI 48226 If University of Iowa Community Credit Union, to: U of I Community Credit Union P.O. Box 2630 Iowa City, Iowa 52244-2630 Attention: Lynn Rowat J. MISCELLANEOUS a. Successors and Assigns; Assignments. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; however, TLS will not 07/10/01-2 10 assign this Agreement without the City's and Credit Union's prior written consent, except that, without prior written consent, TLS may assign its rights and obligations under this Agreement, to a commonly-owned corporate affiliate which expressly assumes all of the duties of TLS hereunder, it being agreed, nevertheless, that TLS will remain responsible for their performance. In the event that Terry L. Stamper ceases to own a controlling ownership interest in either TLS or a company which directly or indirectly owns a majority of the common stock of TLS (hereinafter, "Parent Company"), such event shall constitute a "Change in Control" and TLS shall promptly deliver to the City and Credit Union written notice thereof and identify the names and addresses of all of the direct and indirect owners in any way related to the Peninsula Development. Upon the occurrence of a Change in Control, at the City's or Credit Union's option communicated in writing to TLS within thirty (30) days after the City and Credit Union receives written notification of the Change in Control and the information identifying the new owners, the City or Credit Union may terminate this Agreement. b. Entire Agreement; Amendment; No Other intended Beneficiaries. This Agreement represents the entire agreement as it exists at the time of the signing of this Agreement between the parties. 07/10/01-2 11 This Agreement may not be amended, altered or modified unless the party against whom enforcement of any waiver, modification or discharge is sought does so in writing. No person not a party hereto is intended to be a beneficiary of or to have the right to enforce this Agreement. c. Choice of Law. This Agreement will be governed by and construed in accordance with the laws of the State of Iowa. The invalidation of one or more of the terms of this Agreement will not affect the validity of the remaining terms. The parties acknowledge that the proper venue of any court action is in Johnson County, Iowa. d. Joint Drafting. The City, TLS and Credit Union have engaged in extensive discussions and negotiations over the terms of this Agreement and no party has acted as the exclusive drafter of the language of these agreements and no inference or presumption or application of a rule of contract construction should be based upon the premises that one party acted more than the other party as the draftsperson of these agreement. ~_~ e. Authorization. Terry L. Stamper, ~rc2iduxt of T.L. Stamper Holdings, L.L.C., does hereby state that as an officer of said limited liability company, he has authority to execute any and all documents binding TLS to this Agreement. Dated this day of , 07/10/01-2 12 CITY OF IOWA CITY Marman Karr, City Clerk App~d b T.L. STAMPER HOLDINGS, L.L. C. UNIVERSITY OF IOWA COMMUNITY CREDIT UNION Title 07/10/01-2 13 EXHIBIT sego,ooo.oo , 2oo FIXED RATE PROMISSORY NOTE WITH NON-REVOLVING CREDIT University of Iowa Community T.L. Stamper Holdings, L.L.C. Credit Union P.O. Box 2630 6399 Norton Street Iowa City, Iowa 52244 Troy, Michigan 48098 LENDER BORROWER Promise to Repay. For value received, Borrower promises to pay to the order of Lender, University of Iowa Community Credit Union, indicated above, the principal amount of $690,000.00 plus interest on the unpaid principal balance at the rate of nine percent (9%) per annum in the manner described below until all amounts owing under this Note are paid in full. All amounts received by Lender shall be applied first to interest, expenses, and then to unpaid principal. Principal and interest not paid when due, shall draw interest at the rate of 9% per annum. Interest rate shall be computed on the basis of 365 days per year, said interest charge shall be calculated on a daily rate, based upon the principal credit amount extended by Lender to Borrower. Makers, endorsers and sureties waive demand of payment, notice of non- payment, protest and notice. Sureties, endorsers and guarantors agree to all of the provisions of this Note and consent to the time of payment. Payment Schedule. Borrower shall pay the principal and interest according to the following schedule: the entire principal balance plus accrued interest plus any and all other charges referred to above shall be due no later than 180 days from the date of the Note. This shall be known as the maturity date and is the a T.-r~ day of ~A'~ , 2002. This is a non-revolving line of credit given to the Borrower by the Lender and fully guaranteed by the guarantor below. Borrower may draw down on this line of credit no more often than every 30 days. Prepayment. This Note may be prepaid in part or in full before its maturity date. This Note shall be governed by the laws of the State of Iowa. Initials: 07/10/01 I Incorporation. The terms of the Short-Term Financing and Guaranty Agreement also signed simultaneously with this Promissory Note are incorporated as if set forth herein. IMPORTANT: BORROWER ACKNOWLEDGES AND GUARANTOR ACKNOWLEDGES THAT BOTH P~AVE READ AND UNDERSTAND AND AGREE TO THE TERMS AND CONDITIONS OF THIS LINE OF CREDIT AND PROMISORY NOTE AND BORROWER AND THE CITY OF IOWA CITY, IOWA, ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE. T.L. STAMPER HOLDINGS, L.L.C. ~'~A'~-- B WER GUA~NTY COMES NOW, the City of Iowa City, Iowa, and hereby guarantees to the University of Iowa Community Credit Union this line of credit to T.L. Stamper Holdings, L.L.C. as evidenced by the documents labeled "Fixed Rate Promissory Note with Non- Revolving Line of Credit" and "Short Term Financing and Guaranty Agreement". The City of Iowa City, iowa, fully agrees and understands that upon any default by T.L. Stamper Holdings, L.L.C. on said Note said City will be fully responsible to Lender for any and all sums paid by Lender to Borrower in accordance with said promissory note and Short Term Financing and Guaranty Agreement and due thereunder. Lender will notify the City of Iowa City as guarantor of the default and said City of Iowa City agrees and guarantees to make full payment within 30 days of said notice to the University of iowa Community Credit Union. City's agreement to guarantee this line of credit is without prejudice to its right to repayment by Borrower in the event City must make payment to Credit Union. Upon payment by City, Credit Union shall have no claim on or to any property, real, personal or intellectual, purchased or created with funds from the aforesaid line of credit. Dated: l&, 7 Pl GUARANTOR 07/10/01 2