HomeMy WebLinkAbout2006-03-23 Info Packet
. = 1
--= -~-
4.:~~W;!:~
.....-::..~ _....~~
--.. - ~
CiTY OF IOWA CiTY
www.icgov.org
CITY COUNCIL INFORMATION PACKET
March 23, 2006
MISCELLANEOUS ITEMS
IP1 Tentative City Council Meetings and Work Session Agendas
IP2 Memorandum from Council member Vanderhoef: Local Government
IP3 Memorandum from the City Clerk: Retail Incubator Site Visit
IP4 Memorandum from the City Manager: Deer Management Program
IPS Letter from the City Manager to Don Guckert, University of Iowa: Access to University
property for deer management purposes
IP6 Agenda Packet for March 16, 2006 PATV Board of Directors Meeting: Minutes included
for January 19, 2006 and February 23, 2006.
IP7 Email from Kay Seagren: Grant Wood gymnasium dedication, March 30, 2006
IP8 Minutes [Approved]: Economic Development Committee: March 10, 2006
PRELIMINARY/DRAFT MINUTES
IP9 Telecommunications Commission: February 27, 2006
IP10 Public Art Advisory Committee: March 2, 2006
IP11 Economic Development Committee: March 15,2006
IP12 Housing and Community Development Commission: March 9, 2006
1:;: t
~~~~~llt
~'~"''''~
-.....
CiTY OF IOWA CiTY
City Council Meeting Schedule and
Work Session Agendas
IE
March 23, 2006
www.icgov.org
. THURSDAY, MARCH 30 207 Second Avenue
Cedar Rapids
2:00p Special Council Work Session - Visit to Nucleus Retail Incubator
TENTATIVE FUTURE MEETINGS AND AGENDAS I
. TUESDAY, APRIL 4 Emma J. Harval Hall
5:00p Special Council Work Session
7:00p Formal Council Meeting
. WEDNESDAY, APRIL 12
4:30p - 6:30p Joint Meeting
Emma J. Harval Hall
. MONDAY, APRIL 17
6:30p City Council Work Session
Emma J. Harval Hall
. TUESDAY, APRIL 18
7:00p Formal Council Meeting
Emma J. Harval Hall
. MONDAY, MAY 1
6:30p City Council Work Session
Emma J. Harval Hall
. TUESDAY, May 2
7:00p Formal Council Meeting
Emma J. Harval Hall
. MONDAY, May 15
6:30p City Council Work Session
Emma J. Harval Hall
. TUESDAY, May 16
7:00p Formal Council Meeting
Emma J. Harval Hall
. MONDAY, JUNE 12
6:30p Special Council Work Session
Emma J. Harval Hall
. TUESDAY, JUNE 13
7:00p Special Formal Council Meeting
Emma J. Harval Hall
. MONDAY, JUNE 26
6:30p Special Council Work Session
Emma J. Harval Hall
. TUESDAY, JUNE 27
7:00p Special Formal Council Meeting
Emma J. Harval Hall
. MONDAY, JULY 17
6:30p Council Work Session
Emma J. Harval Hall
. TUESDAY, JULY 18
7:00p Formal Council Meeting
Emma J. Harval Hall
I ~ j
~~~~Ilt~
"'-.,... "l1li"
....,...~
CITY OF IOWA CITyl:;:J
MEMORANDUM
DATE:
March 23, 2006
TO:
Mayor and City Council
FROM:
Dee Vanderhoef, Council Member
RE:
Local Government
Attached is an article from the February Government Finance Review and power point
presentation I brought back from the National League of Cities Congress of Cities
meeting last week.
l
Making
Local Government
More Workable
through
Shared Services
BY JOHN RUGGINI
In this era of "permanent fiscal crisis," local governments have no choice but to seek out
new and better ways of providing the services citizens demand within the constraint of
available resources.l This may explain why nearly twice as many (58percent to 31 per-
cent) local governments in 2002 as in 1992 contemplated alternative service delivery methods
such as privatization. This article examines one particular method that has long been used by
governments but receives much less public discourse than privatization - shared services.
Based on interviews with jurisdictions with established shared service arrangements as well
as a thorough review of the literature, this article will define shared services, including a con-
tinuum of arrangements; discuss the advantages and disadvantages of this form of service
delivery; and present lessons learned from successful intergovernmental partnerships.
DEFINING SHARED SERVICES
For the purposes of this article, the term ~shared services" refers to "intergovernmental coop-
eration at the local level either by formal written contracts or by informal verbal agreements
[which] often provides a workable method of meeting particular problems."2 This is how
shared services was defined by the Federal Advisory Commission on Intergovernmental
Relations in a 1961 report. According to the 2002 leMA survey, 17 percent of all local services
nationwide are delivered through some type of cooperative arrangement. This is the third
most popular form 01 service delivery behind local employee delivery (52 percent) and pri-
vatization (26 percent).
In practice, shared services reflects a continuum of arrangements ranging from a hand-
shake agreement between two villages to share equipment to the complete consolidation of
cities and counties. Most examples fall in between these two poles and represent nearly every
service provided by local governments- from human resource administration to public safe-
ty services.
As shown in Exhibit I, at one end of the spectrum are the simplest and most common coop-
erative arrangements, handshake agreements. These are essentially informal agreements
between jurisdictions that only require interaction on an as-needed basis. They are used to
produce operational efficiencies for both parties without impacting the operational structure
of either party. At the opposite end of the spectrum is consolidation. Through these arrange-
ments, service provision and delivery responsibilities are unified under one entity.
February 2006 I Government Finance Review 31
Exhibit I :The Shared Services Continuum
Success Factors
l
ROI Components
Service Environment
In5t
~'olitiCJi SL;PPO;'1
Handshake
Arrangements
. Shan:lg InfonT1a;ior1
. Shewed equipment
. Coordinat:Jorl of
IrKiiv:dual effor'ts
. Joint promotion
S'!\';I-;J;C, potC'I"ti,,1
OUdiit/ in:pro\'~~i'I~(,I-11 pet_, Iltla
C:lrn;)lcx'
r\,~k
. Mutuill ;:jI(J
. C(mtractlng '\I\'ith
another govCrT1!Tlerlt
for services
. Sharing facilities
. JOint owrlership
lklWl'l'll hoth poles arc service contracts and jUiflt agreements,
Under a serviu' contract, OIl(> jurisdiction cOlltracts with i1 second
for service delivery'. In the case of joint agreclIlents, botll entities
shl1re responsihility for service delivery_ In both cases, participat-
ing jurisdictiolls maintain responsibility for service provision_ The
main diffen--'ntiatur between the tvvo is that in the cast' of jOiflt
agreemcnts, it new ftmctional entity is creakd to deliver a service
to participating _iurisdictiofls: this might be a spccial district to pru-
vide for sewage treatment Of a jointly operated dispatch ccrlter.
PiH1icipating juris(lictions arc requiwd to devclop common goals
for servicE' delivcl)-' ilnd often a flew gm'cflIilllCf' stnlCtufc for that
service, Thc !JC'W service IlWY SUppl(~lllellt E"Clcll entity's cxisting
sefvice, such as _ioillt purchasing, or supplant it al1ngetll('r, such as
ill the cast' of il n'gional police agellcy'
'I:
I
II'
\Vl1ik servic(' ('(llllrads t)/picaJlv n'slill if I ()Il{' jurisdlCti()]J givillg
IIp servicc ckliv,'rv responsibilities through cUlltrilctillg. this is not
tYVicillly t!l\' casc' fm ITllltll;d diel dgrec!I1l'flts illl1()lH~ C'lll('rgcllcy
H'sponders, sl'km'd LKilities, or joint ()\\,lwf',sl1ip of c'quipl1wJlt
Such ;uri-lllgcIlwflls arc categorized IHlckr servin' contracts
heuIIlsl' of the c!C'.l(l"t--'(' of fOrlnalization dnd ullgoing j()illl ('lJordi-
Set'iICC' pm"il ,'un rTfcl ') to ;]
Service Provision Versus Service Delivery
1'J
cclCTr'llrw tI- dl d flu'-^, a ';el'Vlce \,/:11 be de!I'/ Tee! (lnd '-I<I.V
it vV111 be I-undc :-1
;,.., ""t
I'C'(""- '0 U lC -Ktuj
1<',(.','
nE< 101 ')CI\'i((, b:Jt th(17_ ser 'i:ce 1-ILl/
[f' Cj(: \'cl'C'd li/ drlothcr
~i' '/~J!UlltC'CI'
32 GOvcI'llmellt Fiml1c(' R(,view 1.','llrll:'r\' :.'11-'."
. r"lergC'd dCDar'trI1Cr" IT1(YgCi'c,
. Special disttxts . J\nr1exJ.tlor:'
. Coun(A, of ,\o;ulCtTnlcili . SCt'Vlce pmvls:on tt"MdcY
. Pur-chJsng and itlsurc\rlce poois
. Sfured ,:ontractin:<;
WIUl pr-i/ale provider
. Rq;lona platlnlllF;
ndtioll required (as opp()sed to hiUldshake agn'Cll1elltsl <tnd
bCCillJ.<":l' they typically' do !lot involvc the crcation of (J 11('\\' f>Jltil\
I. as OPIIOSl'd to joillt agn.'ellH'nts}."
As Oile 1l10\TS aloflg tll(' continuum, the service environlnent
IJCco[]l-;s more complex and the il'isncialt'd risks for fdilure gfUV\
larger: however, tllt_, polentli:_11 return (lll ifl\'l'stnK'flt also illcn'ilsl's, irl
hotll fil lil!1ciill and sefvice q\lality terms_ At this (,lllJ ()f tile SI)('ctrU111.
critical-.;ucce_'is factors become incrcilsingl)' impor1;ml. F()r CXdrllj lh'
tile prirnary: reilS()!l fe\v merged goverrrlllent proposals sucu.'t'd is
bCGlllS':' of the high degree of political support and tm..;t rcquiwd
These l omponents arp not ahsol11tes nor are Ilwy' comprehellsive
therE--' alP clt'ar!y mon' SllCCe.'iS factors reqllirpd_ !.'or exam!)!e, tiJning
tends II' IX' critical ~ the f\~tirernerlt of jx'rsonlIcl Gill OpClllljl opp(n-
tunities for iJ ioillt i.1gWf>IIWflt tllat were !lot pn'vio\1slv plJs'si!J!c.
Ncv'ertl'clcs.s, tlH's(, filctnf'S an' important to considn \V!It"ll elC'V'l 'lOll
illg iJ IH'.)CCSS for irnjll('111C1Jting Slli-)f('(! servict" ilgn'\'IIH'[ltS.
WHY SHARE SERVICES?
Aehi\'ving (~corl(JfJlil's of sCilk for greater C()st s<lvings is ;1 COlli
1Il()]l nl' )tiViltor fnr l1u1"SIJing SllilWd imallgCJ1lCnts. This is till' Cil.S(' ill
the City of Napa. Califorllia (pOpllhtioll 77,()()O). vvllichl1;\s 11;)(1 il
C()11So1i bu'd ~-)11 (~llk~rg('llCy- dispatch u'nterwith tl1\' ('(Hllltv Sill(,('
the n7()s, [-5\ providing the scrvicT \vitli the cOllnty' dlld illU\'iISillg Ih
e('OI1UJll\ of scale, thl' eit\. gn'Cltly' reduced the ('osl!)('t- disl1;llclwt!
cidL re.<;ulting in (:nsl SilVilH~S nf lH'ilrlyW Pl-')("('IIL 1':C()llt)[llif's of
sc;tI(~ illl' IIw ('xplicit !;Uit! tor IIISllrilllce ill)(1 plll'clldSillg J)( ,()Is hJI
CXillllplc. Illm(' tl1;HI )OUimisdicti(nl.s ill s(l\ltlwil.st \ViS,',)IISill ill-
cllJllillg cities, coullties. sellonl dl.c;tricLs.lowJl'i_ cllld \'ill;lgf's. pl)()1
tlll'ir I'll ,!"Cl'iiJSI'S logetlj('r f( I)" i.lJlJHI lxi1llatdv :2:} ('( i1IUl!i)dltl('S r,IIIl.~-
jll.L\ fnw-I d\'"i('ill!~ ('!ICJlli('ilJ:..; to squdd CdIS.
A second advantage to intergovernmental cooperation is the
ability to achieve greater uniformity in service levels. In the case of
Bessemer City, North Carolina (population 5,119), city residents
not only enjoyed a higher and more uniform level of police serv-
ices with other county residents after their agencies were merged,
but the city also was able to balance its budget during a particu-
larly difficult fiscal period. Higher service levels is the primary rea-
son the City of Flagstaff, Arizona (population 45,000), has imple-
mented intergovernmental agreements in the areas of public safe-
ty dispatch, information services, facility maintenance, and tran-
sit, to name a few. While not all of its agreements have resulted in
cost savings, the city has been able to achieve higher service lev~
els and increased accountability.
Intergovernmental cooperation is particularly well suited for opti.
mizing lesser~used facilities, equipment, and services. Public works
departments often borrow equipment or share in the purchase of
new equipment. Specialized public safety services such as a K-9 unit
or hazardous material response teams are frequently shared in
order to justify their expense, despite the relative infrequency of
their use. Positions can also be shared; for example, the South
CLEMIS -A Case Study in Cooperation
Oakland County's Court Law Enforcement Management
Information System represents a 30-year effort involving
more than 225 public safety agencies in six counties, The
initial effort to establish a common records management
system not only provided a technical backbone for later
enhancements, but also created a consortium of partners
with a shared vision to see those enhancements through,
Today, CLEM IS represents the largest computer-aided
dispatch system in the nation. The system now includes:
. Crimeview - a GIS decision system
. OakNet - a 170-connection point fiber optic network
. Oakvideo - a video conferencing arraignment system
connecting 100 sites
. Fire Records Management System
. Regionallivescan fingerprint and mug shot system
. Countywide radiO system built on OakNet providing
voice and data interoperability
The county has recently reinvigorated its emergency manage-
ment function, implementing numerous new initiatives, including
the common radio system. Without the backbone of CLEMIS,
the building of consortia necessary for these initiatives would
have been more difficult.
Tahoe Public Utility District in California shares a grant coordinator
with the county, allowing both entities access to a level of profes-
sional services not typically available on a part-time contract basis,
Sharing services often results in operational improvements due
to increased flexibility and stability. In Versailles, Kentucky (popu-
lation 8,000), a countywide police merger not only eliminated the
duplication of administrative services, but also improved the
deployment of resources, according to the police chief.
Eliminating duplication was also one of the prime reasons for the
2004 merger of the police forces of the City of Auburn, Alabama
(population 48,000), and Aubum University, which has resulted in
improved resource deployment and annual savings of $400,000.
The decision to share services can serve as a catalyst for future
cooperation. The relatively simple cooperation required to share
public works equipment can establish the trust necessary for more
complex arrangements, Such cooperation often evolves over
time. One case in point is Oakland County, Michigan (population
1.2 million), where the county's Courts Law Enforcement
Management Information System evolved from a countywide
records management system established in 1960 to a comprehen-
sive public safety information management system that now serv-
ices 225 agencies in six counties (see sidebar).
Despite success stories such as these, intergovernmental coopera~
tion is not without its disadvantages. The loss of autonomy, both real
and perceived, is a common concern of participants. This is particu~
larly acute in instances of public safety mergers, because of the high
visibility of the service and its symbolic nature for a community.
Sharing services also can result in a loss of direct control over service
delivety. Furthermore, when the oversight for service delivery no
longer resides directly within a jurisdiction's organizational struc.
ture, lines for accountability can become blurred and even erased.
Many intergovernmental agreements have failed because the
parties could not resolve complex legal issues regarding cost allo-
cation, capital improvements, labor agreements, liability, and
indemnification. Agreements that succeed can increase financial
and legal risks for participants as the scope and complexity of their
service delivery expands. Another real risk that jurisdictions must
consider is the difficulty of exiting an agreement once specialized
personnel or assets have been eliminated, as it may be cost pro-
hibitive to leave the agreement and re-establish the service.
Finally, when there is a significant difference in service levels
between jurisdictions, there is the risk that the new service will
meet the lowest common denominator among participants, forc-
ing high-service level jurisdictions to accept lower service levels,
LESSONS LEARNED
While the risks outlined in the previous section are real, they
can be mitigated to a large extent by adopting the best practices
February 2006 I Government Rnance Review 33
and lessons learned from jurisdictions that have successfully
implemented shared service agreements, as presented below.4 In
pursuing shared service arrangements, jurisdictions must focus on
two distinct sets of issues - technical and process. Failure to give
full attention to technical details may cause the arrangement to
collapse under the weight of its own complexity and increases the
risk of operational failures, while failure to develop a deliberative
process may result in insufficient levels of trust or political support.
!'
Technical Issues. The most significant technical issue is deter-
mining how to allocate costs among jurisdictions for non-self-sup-
porting shared services. While an in-depth discussion of cost allo-
cation methodologies is beyond the scope of this article, the fol-
lowing are the key considerations identified by jurisdictions with
experience in this area:
. As with all rate-5etting exercises, participants should agree on
the goals the cost allocation methodology will attempt to
achieve. For example, should cooperation be maximized at the
expense of complete cost recovery, or should the costs to par-
ticipate be commiserate with service utilization? Agreement on
these principles at the outset will facilitate negotiations.
Ii ff a costing factor will be used to allocate expenses net of rev-
enues, the factor that most directly relates to cost should be
identified and clearly defined. For example, if the number of
records will be used as the cost factor for a common records
management system, the participating entities should deter-
mine what exactly constitutes a record. Jurisidictions need not
be bound to a single costing factor - it may take severaf to
meet cost allocation goals.
. Capital costs deserve special consideration because they often
are not included in the initial arrangement and can lead to diffi-
culties down the road. Jurisdictions should consider establishing
a capital replacement fund with stipulations for how the fund
and capital assets be divided should the arrangement be dis-
solved or a jurisdiction choose to tenninate its participation. If
debt financing will be used for capital improvements, debt serv-
ice payments should be included in the initial financial analysis.
. Determine whether or not overhead costs will be allocated
and what methodology will be used. For many smaller
endeavors, these costs may be considered a "wash" and not
calculated. However, if one agency is serving as the lead
administrator, or if such allocation is required because federal
funds are being utilized or an enterprise fund is providing the
service to general fund departments, allocating overhead
costs becomes critical.
. Given that demographics and service demands change over
time, have mechanisms in place to regularly review, and alter
if needed, your cost allocation methodology. In the case of a
shared ambulance service, for example, the geographic center
of the service area shifted over the 25-year fife of the agree-
ment, straining the relationship between partners.
,
,1
34 Government Finance Review I February 2006
~
Insurance and Legal Issues. Before finalizing an intergovern-
mental agreement, juriSdictions should consider how issues of risk
management, including workers' compensation and indemnifica-
tion, will be handled. Some insurance policies that cover individ-
ual jurisdictions may not insure joint arrangements. Distributing
increases from workers' compensation insurance, employee lia-
bility coverage, and other risk management costs should be part of
the cost allocation methodology.
Service Level Agreements. Agreeing upon the level of service
that will be provided is a critical component of intergovernmental
agreements, especially service contract arrangements. The City of
San Diego documents the specific services to be received, prices
charged, and agreed upon performance criteria. The City of
Flagstaff has begun to incmporate performance measures into its
service level agreements. For example, five performance stan-
dards, including cost per rider and customer satisfaction, are
incorporated into the agreement governing a joint transit agency.
As with all contract compliance, the amount of time and person-
nel required to monitor such agreements should be taken into
consideration as a cost to the arrangement.
Governance. The above issues are all components of a compre-
hensive intergovernmental agreement. That agreement will have
to be monitored and evaluated regularly. For this to occur, a gov-
ernance structure must be in place to facilitate oversight and com-
munication. For more complex arrangements, this might necessi-
tate a separate board appointed by participating jurisdictions' gov-
erning bodies. In other cases, a quarterfy meeting of the depart-
ment directors involved might suffice. In either case, a clear mech-
anism for resolving disputes should be in pface.
Before proceeding to the process issues, it is important to note
that while thoroughness is critical when negotiating an intergov-
ernmental agreement, the agreement should not be so complex
that it becomes difficult to administer or undermines cooperation.
A simple rule is that the complexity of the agreement should
match the complexity of the arrangement.
Process Issues. Jurisdictions tend to shortchange the process,
focusing on the ends and not the means toward cooperation. In so
doing they risk not developing the trust among stakeholders
(including employees and citizens) and the political support nec-
essary for success. They also jeopardize future collaborative
opportunities. Below are some innovative processes jurisdictions
have successfully used to identify and implement intergovern-
mental arrangements.
Organize for cooperation by creating a forum where relation-
ships can be established and opportunities can be identified. The
City of Flagstaff, Arizona, and Linn County, Oregon, both estab-
lished monthly meetings among all governmental entities in the
geographic area to discuss common concerns and specifically
seek shared service opportunities.
the partnership was awarded an ICMA
Program Excellence Award for Outstanding
Partnerships in 2003.
Jurisdictions should use shared service
opportunities to be innovative. The City
of Gahanna, Ohio (population 36,000), con-
structed a joint fueling station lor use by
the city, townships, and the school district.
Fuel is purchased at a wholesale discount
due to the volume - a savings for all these
entities. A private operator manages the
facility and is permitted to sell fuel to private companies. The city
receives 50 percent of the profits. When King County, Washington
(population 1.7 million), embarked on creating a centralized inter-
nal GIS service, it brought together all the stakeholders to create a
common vision of a different environment. The result was KCGIS, a
coordinated regional geographic information resource organized
to meet the needs of the county, local agencies, and the general
public. The initiative is innovative in its governance and rate strucw
ture and in the development of business lines to meet cllstomer
demands. KCGIS regularly responds to RFPs and its services have
even been solicited by agencies outside the county's geographic
boundaries.
Inventory current operations lor oppor-
tunities. The City of Eau Claire, Wisconsin,
created a study group of three city council
members to look at current selVice levels
among their own departments and create
a catalog of future opportunities based on
a self-assessment utilizing a shared service
typology the city developed.
Clearly identify the costs and benefits 01
a proposed arrangement. Jurisdictions
should carefully study the feasibility of a
shared service arrangement and determine to the greatest extent
possible the return on investment, both in financial and quality
terms. For more complex arrangements, it may facilitate the nego-
tiating process to have a third party conduct this analysis. In fact,
Oakland County, Michigan, believes so strongly in this that the
county established a fund municipalities can utilize exclusively for
the third party development of the business case for shared
arrangements, even if the county is not partner to the agreement.
In this way, the difficult issues are identified and potentially
resolved early in the process. Being able to communicate the costs
and benefits with key stakeholders also assists in establishing trust
and buy-in.
Develop an implementation plan and utilize project management
best practices. Once jurisdictions have negotiated an agreement
and are about to embark on implementation, they should develop
an implementation plan that includes a project charter, champion,
steering committee, and key milestones. This is especially critical
for mOTe complex arrangements.
Regularly evaluate the agreement. As mentioned above, changes
in the service environment can wreak havoc on an established
shared service arrangement, necessitating constant monitoring
and regular review of the agreement.
Communicate with stakeholders. Stakeholders such as unions or
customer groups can playa major role in the success or failure of a
shared service effort. Communicating with them early and often
can improve chances for a successful implementation and defuse
opposition.
FINAL THOUGHTS
Being the risk-averse creatures that they are, governments tend to
spend a majority of their time crafting intergovernmental agreements
to protect themselves from failure. Although this is important, the City
of Clemson, South Carolina, emphasized that governments also need
to plan for success. In developing a joint bus service with the
University of Clemson, the original agreement contemplated how the
potential failure of the service would be handled. When the service
turned out to be a tremendous success, there were no mechanisms
in place to purchase more buses. This has since been resolved and
After it defined shared arrangements in its 1961 report, the
Advisory Commission for Intergovernmental Relations went on to
conclude that shared services represented the "most convenient
instrument available to officials for making a complex and frag-
mented structure of local government more workable and respon-
sive to public need." Despite the passing of more than 40 years,
shared services remains a highly effective service delivery mecha-
nism that jurisdictions should consider, not only as a means to cut
costs, but as an opportunity to develop innovative service arrange-
ments that can also provide higher service levels that better meet
customer needs. I .
Notes
1. See D. Osborne and P. Hutchinson, The Price ofGouernment: Getting the Results
We Need in an Age of Permanent Fiscal Crisis (New York: Basic Books, 2004).
2. Federal Advisory Commission on Intergovernmental Relations, ~Govemmental
Structure, Organization, and Planning in Metropolitan Areas," Report A-5
(Washington, D. C., July 1961).
3. Thanks to Steve Struthers, Senior Partner, The Public Strategies Group, and to
Mike Huggins and the City of Eau Claire Wisconsin, whose typology for shared
service strategies greatly influenced this continuum.
4. David Hinds, ~Alternatives for the Delivery of Government Services," Local
Government Center, University of Wisconsin-Extension (April 2001).
JOHN RUGGINI is a consultant and policy analyst in GFOA's Research
and Consu~ing Center. He holds a masters degree in public adminis-
tration from Northern Illinois University.
The author wishes to thank the jurisdictions that participated in this effort for their
time and insights.
February 2lXl6 I Government finance Review 35
ALLIANCE Jor
REGIONAL
STEWARDSHIP
Local Government and Regional Approaches
National League of Cities
March 11, 2006
John Parr & Joan Riehm
Alliance for Regional Stewardship
America's Citistates
. Most complex challenges
today are regional in scale.
. Traditional business,
government and civic
responses are not adequate
. Boundary-crossing is now
required
. Few know how to engage in
this kind of regional civic
leadership
. -
ALUANCEjiJr
REGIONAL
STEWARDSHIP
The Challenge
. There are four distinct conversations going on
in regions today
. Rarely are they connected
. Regional civic leadership is required to connect
these conversations
ALLIANCE fiJr
REGIONAL
STEWARDSHIP
printlpte~'()fi!~~gJ~ij~tSteWard~liip .
Innovative Economy
Meaningful Jobs
2
ALUANCEjor
REGIONAL
STEWARDSHIP
Innovative Economy
Meaningful jobs
Is the economy competitive) Is it
based on speed, quality, Aexlblilty,
knowledge, and networks?
Does :he economy provide jobs
that enable all citizens to enJOY a
good "uality of life? Does it
produce meaningful jobs that
sustain families all along the
economic spectrum?
mJ... ALUANCEjor
REGIONAL'.
STEWARDSHIP.
Social Inclusion
Building trust and relationships
Are diverse populations and
perspectives engaged and
encouraged to participate as
contributing members of the
society?
Are trere safe civic spaces where
public dialogue and conversations
can occur?
Are diverse thoughts and opinions
respected in the decision-making
proce3s?
3
lID. . ALLlANCEfior
REGIONAL
STEWARDSHIP
Livable Community
Great places to Jive and work
Are ci,izens' public safety and
well-being ensured?
Are hOUSing and public education
opportunities ensured for all
members of the community?
Are new visions of design that
reduo~ sprawl and traffic
congestion being employed?
Are arts and cultural amenities
being promoted)
J'.:7';:;,:: "~':::'}:':,
.. \'?,:I'\I i:CGIONAL
SIi:tJ.. STEWARDSHIP
Collaborative Governance
Working togetherforresufts
Are CItizens, businesses,
nonprofits, educations, and
governments working together to
set directions, solve problems, and
take action?
Are the participants in
collaborative governance
coordinating resources and
sharing informatIon, Ideas, and
power?
4
ALLlANCEjiJr
REGIONAL
STEWARDSHIP
One jurisdiction, one organization
Multiple jurisdictions and organizations
Specific problem or goal
IntegrCitedvisioti. forthe r~ion
Single network
Diverse collaborative networks
Commiqneh't to .a~ ide~!caUse
. Commitment to place
ALLlANCEjiJr
REGIONAL
STEWARDSHIP
Caveat: Don't Do It If You Don't Have To
. There's a gap.
. It might be a crisis now, or it could be.
. The lack of resolving this is hurting me.
. We have tried everything else.
. This issue is reallv complex.
. Someone else will do it to it to us if we don't.
. The burdens aren't that bad.
. There are benefits.
5
Local Government
State Gonrnment
Federal
Government
Private Sector
NOll-Profit
Other
00.... ALUANCEjiJ
REGIONA
STEWARDSHI
Continuum of
Regional Approaches
Relationships
Formal
Partnerships
Structural
Change
+----- -. -.
(,
ALLlANCEjOr
REGIONAL
STEWARDSHIP
Regional Methods
Easiest Eight
1. Informal Cooperation
2. Interlocal Service Contracts
3. Joint Powers Agreements (JPA)
4. Extraterritorial Powers
5. Regional Councils/Councils of Governments
6. Federal Encouraged Single-Purpose Regional
Bodies
7. State Planning and Development Districts (SPDDS)
8. Contracting (Private)
; \LLIANCE jO
REGIONAL
STEWARDSHIP
Regional Methods
Middle Six
9. Local Special Districts
10. Transfer of Functions
11. Annexation
12. Regional Special Districts and Authorities
13. Regional Asset Districts
14. Metro Multi-Purpose Districts
15. The Reformed Urban County
7
ALLlANCEjO
REGIONA
STEWARDSHI
Regional Methods
Tough Trio
16. One-Tier Consolidations (Louisville - Jeff. County)
17. Two-Tier Restructurings (Miami - Dade County)
18. Three-Tier Reforms (Twin Cities - Met Council)
ALLIANCE jOr
REGIONAL
STEWARDSHIP
John Parr, President/CEO
1009 Grant Street
Suite 203
Denver, CO 80203
(303) 477-9443
(303) 477-9986 fax
jparr@usa.net
www.regionalstewardship.org
8
I ~ I
-... =- -~...
:f~ai~"t.
-.,;;;:... "IIII'~
........ ...
CITY OF IOWA CITyr;:]
MEMORANDUM
DATE:
March 23, 2006
TO:
Mayor and City Council
Marian K. Karr, City Clerk ~~
FROM:
RE:
Retail Incubator Site Visit
The Council Economic Development Committee will meet next Thursday at the Nucleus
Retail Incubator (207 Second Avenue SE) in Cedar Rapids at 2:00 p.m. Additional
Council Members have expressed an interest in attending so the meeting will be noticed
as a Council work session. Therefore, the work session is included on your tentative
meeting schedule in this week's information packet.
As noted in PCD Director Franklin's memo of March ] 6, to avoid any appearance of
violation ofthe Open Meetings Law, no more three Councilors or Committee Members
should ride together.
I ~ j
-~.:;;. -~
~~~!:Ilt
'--~ "_,~
.......
C I T Y 0 F lOW A C I T yrnJ
MEMORANDUM
Date: March 22, 2006
To: City Council
From: City Manager
Re: Deer Management Program
We are in the process of doing preliminary work for 2006-2007 Deer Management Program.
Your policy position in the past has approved the use of sharpshooting to manage the deer herd
in Iowa City. We will again proceed with sharpshooting as the preferred method of deer
management.
cc: Deer Management Task Force
Sue Dulek
I: j
=,..:......14'...
.t.~rt~tW;e:~
........... .....,
.... .......
:ITY OF IOWA CITY
~
www.icgov.org
March 22, 2006
Stephen J. Atkins
City Manager
steve-atkins@iowa-city.org
Mr. Donald Guckert
Associate Vice President and Director
Facilities Management
210 University Services Building
Iowa City, IA 52242-1922
OFFICE OF THE
CITY MANAGER
Dear Don,
Dale E. Helling
Assistant City Manager
dale~helling@iowa-cily .org
As we have discussed in the past, I am writing to request consideration of
acquiring access to University property for the purpose of implementing our
deer management sharpshooting program during the winter of 2006-2007.
As I recall, the University is willing to consider another request from the City
to allow access to University property providing our sharpshooting program
is conducted during a time that coincides with the University's winter
semester break. It is the City's intention to present this request to the Iowa
Department of Natural Resources later this spring. In your letter dated
November 30, 2005, you indicated your willingness to assist us with such a
request and I believe a letter of support from the University to the IDNR
would be helpful.
Thank you for your consideration.
Sincerely,
~
Stephen J. Atkins
City Manager
cc: City Council
Sue Dulek
Deer Management Task Force
410 E. Washington Street
Iowa City. IA 52240
Phone: (319) 356-5010
Fax: (319) 356-5009
Board Agenda
~
PATV BOARD OF DIRECTORS MEETING
Thursday, March 16th, 2006
7:00 pm
PATV - 206 Lafayette Street
1. Call meeting to order
2. Consent agenda
3. Approval of February minutes
4. Old business
Board recruitment
Board photograph
Legislation & Lobbying
5. Short public announcements
6. New business
7. Reports
A. ICTC
B. Committees
i. Contract committee
ii. Building & Grounds
iii. Outreach & Fundraising
Chili Supper
ii. Technology
C. Treasurer
D. Management - Iowa Shares
8. Board announcements
9. Adjournment
If you have additional agenda items or cannot attend the
rneeting, please contact Josh at 338-7035.
PA TV Board of Directors' Meeting Minutes - Final
Thursday, January 19, 2006
. 7:00 PM
PATV - 206 Lafayettte Street, Iowa City, Iowa 52240
1. Meeting called to order at 7:34 PM by Tom Nothnagle. Present: Holly
Berkowitz (11/04-11/07), Brett Gordon (11/04-11/07), Steve Newell
(11/01-11/07), Tom Nothnagle (11/05-11/08), Phil Phillips (11/03-11/06),
. and Director Josh Goding. .
2. Consented to agenda.
3. Approved minutes for December unanimously.
4. Old business: Discussion of table and equipment.
5. Short PUblic Announcements: No members of public present.
6. New Business: .
_ Josh: Planning Board-Staff retreat for next month to
discuss events, community programming, planning events
and fund raisers. Josh will book room for a Sunday p.m.
_ BITS Legislation and Lobbying: Discussion of BITS
legislation, letter of Mayor Lehman to Senator Harkin
regarding BITS legislation.
- Contract: Discussed contract renewal.
7. Reports
a. ICTC: None
b. Committees
1. Committees
1. Building and grounds: None.
2. Outreach and fundraising: Discussed chili supper,.
scheduling. Josh is scheduling retreat to schedule
fundraisers.
3. Technology: Discussed bit torrent.
2. Treasurer: Steve reported on TIPS returns.
3. Management - Iowa Shares: Josh reported:
1. Management:
a. Year end report.
b. IS: 2/19
c. L&L
d. PEG BITS 1/23/06 HS. NJ LIVE. ACM MM
e. MW ACM 2/17-18/06 meeting.
f. 7/06 Meeting in Boston.
8. Board Announcements: None.
9. Adjournment about 9:15 PM
PATV Board of Directors' Meeting Minutes - Oraft
Thursday, February 23, 2006
7:00 PM
PATV - 206 Lafayettte Street, Iowa City, Iowa 52240
1. Meeting called to order at 7:19 PM by Tom Nothnagle. Brett Gordon
(11/04-11/07), Tom Nothnagle (11/05-11/08), Phil Phillips (11/03-11/06),
Walter Jahava (11/05-11/08), Jack Fuller (12/01-12/07), Ross Meyer
(11/04-11/07), Director Josh Goding and Board Applicant Damon Shutt
present. .
2. Consented to agenda.
3. Approved minutes as amended for January unanimously.
4. Old business:
a. Board Recruitment: Damon Shuttelected to board unanimously.
b. Board photograph: tabled until next month.
5. Short Public Announcements: No members of public present.
6. New Business:
Legislation and Lobbying: general discussion on BITS legislation,
deadline for public comment may have been extended.
7. Reports
a. ICTC: Commission meeting Monday at 5:30
b. Committees
1. Committees
1. Building and grounds: None.
2. Outreach lInd fundraising: Chili Supper- Old Brick
Church- Thur. March 30th
3. Technology: Nothing to report, Damon Shutt joins
Technology Committee
2. Treasurer: Not present.
3. Management - Iowa Shares: Iowa Shares director has
resigned
8. Board Announcements: None.
9. Adjournment: 8:35 PM
_____.______~,~__.__~__.....m_._"__,__..,.______._....__________._.__.._______________~___.____..._,._____. _~._ _ '_ ._~_.._. .__" '-"'_"_'______.' -- _____.u.___.___,'___._
rnJ
Kathryn Johansen
From: Steve Atkins
Sent: Thursday, March 23, 2006 9:14 AM
To: Kathryn Johansen
Subject: FW: Grant Wood Gym Dedication
,
(//~
@flr{ Ii- ~ uP'
From: Kay Seagren [mailto:Seagren,Kay@iccsd.k12,ia.us]
Sent: Wednesday, March 22, 2006 4:03 PM
To: steve-atkins@iowa-city.org
Subject: Grant Wood Gym Dedication
Steve,
Lane wanted me to let you know that the Grant Wood gymnasium dedication will be Thursday, March
30th There will be a taco dinner served from 5:00 ~ 7:00 PM, At 5:15 dedication events will begin in
the gym, The City is welcome to have someone speak at this event if you would like.
Kay Seagren
Superintendent's Secretary/Office Manager
Iowa City Community School District
319-688-1232
seagren.kay@iccsd.k12.ia.us
_,___ ,_.... ..._,_..-..-......,.' ....... ----....'-__...._~.,.,. ~__.,_"'" .,_~~......,"l''"''-._._. __~i=---" -.-'~._-"'''____.__,~
*** eSafe scanned this email for malicious content ***
*** IMPORTANT: Do not open attachments from unrecognized senders ***
3/23/2006
crw
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
MARCH 10, 2006
CITY MANAGER'S CONFERENCE ROOM
APPROVED
Members Present: Regenia Bailey, Connie Champion, Bob Elliot
Members Absent: None
Staff Present: Steve Atkins, Karin Franklin, Steve Long, Tracy Hightshoe
Others present: Joe Raso (ICAD)
Call to Order
Chairperson Bailey called the meeting to order at 9:03 a.m.
Approval of the minutes of the February 16. 2006 meetinq:
Champion moved and Elliot seconded approval of the minutes of the Feb. 16,
2006 meeting as submitted. Motion passed, 3-0.
Discussion of the future role of Citv in economic development:
Franklin presented an overview of the current duties of the Economic
Development Coordinator (attached), pointing out that this position has been
funded at a .5 FTE level. She indicated economic development efforts have
historically been divided between ICAD, the Chamber of Commerce and the City.
In a very general fashion, ICAD's role has been that of recruiter for new
businesses, the Chamber has nurtured existing businesses, and the City has
played a responsive role, facilitating financial assistance and incentives and
acting as a guide to and through government bureaucracy. The Committee was
then asked for their views on the future of this position in the City.
Elliot indicated it was important to have a City staff person with sufficient position
and knowledge to be able to work with businesses and be responsive with
information and decisions. Champion expressed her desire to at least keep the
half-time position. Bailey suggested a more assertive role was necessary with a
person who would be an active player in the Corridor and in spearheading and
recruiting businesses for special projects in Iowa City such as Aviation
Commerce Park South. Both Elliot and Bailey indicated the Committee had
discussed on other occasions the need to have a full-time person devoted to
economic development.
Raso suggested the Chamber's focus is likely to be on legislative matters and
business or entrepreneurial development using SEED as an example of their
efforts. Discussion followed of the partnership that existed between the City,
ICAD and the Chamber. Collaborations with the University of Iowa, through
1
Meredith Hay's office, were cited and the need to further relationships with the
University.
Raso described the needs of ICAD, citing the importance of having a point
person at the City especially for any primary sector project. It is critical to have
someone he can go to for infrastructure information, financial incentive help, and
to take a project through the processes of approval. The other activities Raso
stressed were the ability to respond to information collected through ICAD's
business surveys of existing industries and building relationships with the
University.
Discussion followed of the need to encourage retail development. Bailey
asserted a need to manage retail and encourage it. Champion agreed that
encouragement was appropriate but felt retail generally took care of itself. Elliot
noted the downtown will never be like it was in terms of the presence of
department stores. All agreed a vital downtown was essential to the success of
the community and as an attraction to new industries.
The Committee concluded there was merit in pursuing a full-time position in
economic development and that the person in the position should be fairly high
profile, knowledgeable and proactive. Raso suggested this person should be
perceived as a business person. Discussion followed of the funding of this
position with Champion and Bailey advocating moving forward with the position.
Elliot expressed his discomfort with adding the half-time funding given his
position on public safety. Franklin suggested a way to handle this would be to
continue with the half-time position housed in the Planning Dept. for a year, with
the Committee members fulfilling the functions of building relationships and
partnerships to further economic development. This was not acceptable to a
majority of the Committee.
The staff was directed to move forward with developing a description of the full-
time position to be reviewed by the Committee at its next meeting and taken to
the full Council as soon as possible. Raso pointed out that with the changes
occurring in the Chamber and the ICAD campaign, these organizations would not
be prepared to partner on any efforts for a few months. Franklin pointed out it
would likely take 3 or 4 months to recruit for the position, should the full Council
concur anyway.
Visit to Cedar Rapids retail incubator:
Franklin asked for dates when people could take a couple of hours to go to
Cedar Rapids. All agreed it would need to be sometime after spring break. It
was also agreed to convene at the incubator and that other Council members
would be invited to attend.
Other business:
2
--"_.,.__._.._-----------,~-_.._.__....__._.----~._-----,._----_.._._..~-_.._-,._-_.~'~-_._..._-"._---"...~..,,',..-.-
Rasa announced the ICAD campaign kick-off would be March 28 at 7:30 am at
Brown Deer Golf Course with Kirk Ferentz as speaker.
The next committee meeting was scheduled for Wednesday, March 15 at 3:00
p.m. to consider an application for CDBG funds for McConnell Revenue Cycle
Solutions, Inc., a hospital finance and accounting outsourcing company.
Meeting adjourned at 10:05 a.m.
Minutes submitted by Karin Franklin
3
Council Economic Development Committee
Attendance Record
2006
Term
Name Expires 01/18 02/16 03/10
Reaenia Bailev 01/02/08 X X X
Bob Elliott 01/02/08 X X X
Connie ChamDion 01/02/08 OlE X X
,
I
Key:
X = Present
0 = Absent
OlE = Absent/Excused
NM = No Meeting
4
MINUTES
IOWA CITY TELECOMMUNICATIONS COMMISSION
MONDAY, FEBRUARY 27, 2006--5:30 P.M.
CITY CABLE TV OFFICE, 10 S. LINN ST.-TOWER PLACE P ARKING FACILITY
~
~
DRAFT
MEMBERS PRESENT:
Gary Hagen, Saul Mekies, Michael Christians, James Ehrmann
MEMBERS ABSENT:
Bebe Ballantyne
STAFF PRESENT:
Drew Shaffer, Mike Brau, Bob Hardy, Sue Dulek, Dale Helling
OTHERS PRESENT:
Josh Goding, Beth Fisher, Susan Rogusky, Kevin Hoyland, Perry Ross,
Lee Grassley, Phil Phillips
RECOMMENDATIONS TO CITY COUNCIL
None at this time.
SUMMARY OF DISCUSSION
Mekies reported that he and Christians attended the City Council budget session. The use of the
franchise fee to supplement the general fund was addressed in terms of the inappropriate use of user
fees. Mekies also pointed out that if an enterprise fund is managed responsibly and saves money over
a number of years for any contingencies, and if the City Council takes funds, it effectively punishes
that department for saving money rather than spending it all. Grassley said there is legislation in the
Iowa General Assembly that would set up two sets of regulations for video service providers designed
to bestow incentives to telephone companies to compete with incumbent cable operators. Goding
reported that P A TV now has a new portable studio available for checkout. The studio will enable
multi-camera shoots to be done in the field. P ATV submitted comments regarding the FCC's Notice
of Proposed Rule Making regarding giving phone companies that provide video service a nation-wide
franchise. Rogusky reported four University of Iowa interns have joined Senior Center TV. The
streaming video project will be available soon on the Senior Center web site. Hoyland reported that the
school district channel has forwarded to admnistration officials information on the cost of equipment
needed for an upgrade. Hoyland also passed on the information regarding the availability of funds
from the annual Community Television Group allocation. Ross said that the school district values the
channel but are very limited in funds for technology. Technology funding has been reduced by 50%
and there is not enough money available to replace the computers and other equipment they already
have. Shaffer reported he has been working with Mediacom to get access to the emergency alert
system to the Iowa City police. Mediacom has also been working with Shaffer on getting additional
origination points that could enable live programming for parades, Jazz Fest, Friday Night Concerts,
and more for the access channels in the downtown area. Shaffer said that in regards to the reserve fund
that it has been used for refranchising costs, lawsuits, and to maintain an operating surplus in the event
the department's funding source would be lost. The department is supposed to be self-sufficient.
There are a number of things that could come up that would challenge the ability of the department to
be self-sufficient. Typically anywhere from 1-2% of an annual year's budget is put into the reserve
fund. The City Council has asked for information on how the franchise fee is dispersed. Information
the reserve fund will likely be included with that information. The Council will be addressing an
amendment to the cable TV enabling ordinance that brings it into compliance with the practice of using
franchise fee funds to supplement the general fund. Hagen asked if the use of franchise fees to
supplement the general fund over the past few years was legal given the unclear language in the
ordinance. Helling said that it was probably not technically illegal.
AFPROV AL OF MINUTES
Christians moved and Hagen seconded a motion to approve the January 27,2005 minutes. The
minutes were approved unanimously.
ANNOUNCEMENTS OF COMMISSIONERS
Hagen noted there were two openings on the Commission corning up in March. Mekies said he re-
applied. Shaffer said John Weatherson also applied. Ballentyue will be unable to re-apply. Hagen
asked Goding if Commission attendance at the P A TV board meetings every month was a benefit to
them. The Commission has been sending representatives on a rotating basis. Goding said that
attendance is not needed every meeting, but it is beneficial to PATV. Hagen said it isn't necessary to
stay for the entire meeting. The Commission should develop a schedule for attendance. Mekies said
he would like the Commission to explore the possibility of a city wi-fi system. Mekies said he would
also like to see the Commission work with Mediacom on implementing any a la carte offerings and
with improving the information available to the public regarding cable service, particularly on
Mediacom's website. Explanations of Mediae om's channel selection, implementation of must carry
regulations, and a rate card could be added to Mediacom's web site. Mekies reported that he and
Christians attended the City Council budget session. Mekies said he did not know what to expect and
was as not as well prepared as he would have liked. The use ofthe franchise fee to supplement the
general fund was addressed in terms of the inappropriate use of user fees. Mekies also pointed out that
if an enterprise fund is managed responsibly and saves money over a number of years for any
contingencies, and if the City Council takes funds, it effectively punishes that department for saving
money rather than spending it all. Christians said that ifhe had better knowledge of the use of the
reserve fund that he could have been better prepared.
SHORT PUBLIC ANNOUNCEMENTS
None.
CONSUMER ISSUES
Shaffer referred to the complaint report in the meeting packets and said that there were two
complaints-one about too many shopping channels on the basic tier and one requesting the Quad City
broadcast channels be included in the channel line-up.
MEDIACOM REPORT
Grassley said that at the last meeting he misstated that one of the shopping channels was not required
to be on the basic tier by the terms of their programming contract. That channel does have a basic tier
requirement. Mediacom was limited to CSPAN II or WGN in their options to move to the expanded
basic tier when the most recent must carry channel from Dubuque was added to the basic tier. About
11.5% of Iowa City subscribers subscribe to only the basic tier so the vast majority are still able to
view CSP AN II. Mediacom would like to have flexibility when dealing with programmers and has an
administrative proceeding before the FCC on the matter. Hagen said the approximate $20 cost to
increase the number of channels on the basic tier may be popular with subscribers. Grassley said there
may be operational problems with this, but will look into the matter. Grassley said there is legislation
in the Iowa General Assembly that would set up two sets of regulations for video service providers
designed to bestow incentives to telephone companies to compete with incumbent cable operators.
UNIVERSITY OF IOWA REPORT
No representative was present.
PATV REPORT
Goding reported that staff members were unable to attend the Alliance for Community Media regional
conference due to bad weather. It is hoped that they will be able to attend the national conference in
July. P ATV now has a new portable studio available for checkout. The studio will enable multi-
camera shoots to be done in the field. A Guidelines workshop will be offered March 5. The P ATV
board will meet March 16. An Open Channel program will be cablecast live March 29 at 8 PM.
P ATV submitted comments regarding the FCC's Notice of Proposed Rule Making regarding giving a
nation-wide franchise to telephone companies providing video service.
SENIOR CENTER REPORT
Rogusky distributed the Senior Center programming schedule for the month. Four University of Iowa
interns have joined SCTV. The streaming video project will be available soon on the Senior Center
web site. There are still some bugs with the editing computer. Fortunately many of the SCTV
volunteers have their own editing systems at home.
IOWA CITY COMMUNITY SCHOOL DISTRICT REPORT
Hoyland reported that the school district channel has forwarded information on the cost of equipment
needed for an upgrade to administration officials. Hoyland also passed on the information regarding
the availability of funds from the annual Community Television Group allocation. Ross said that the
school district values the channel but are very limited in funds for technology. Technology funding
has been reduced by 50% and there is not enough money available to replace the computers and other
equipment they already have. Steps have been taken to improve production quality. Hagen said that
he has noticed a big improvement in the school channel. Mekies said that the quality of one access
channel has an impact on the perception of all the access channels.
LEGAL REPORT
Dulek noted that in regards to the legislation in the Iowa General Assembly that any legislation that
has not passed out of one chamber's committee by this Friday will not be considered during the
seSSIOn.
LffiRARY REPORT
Fisher reported that the equipment problems they had been experiencing have been resolved. The
channel's total design, particularly the graphics, will be undergoing an update.
KIRKWOOD REPORT
Christians asked if Kirkwood had been sent the access channel questionnaire. Brau said that it was
sent and the deadline for a response would be up before the next meeting.
CABLE TV ADMINISTRATOR REPORT
Shaffer reported he has been working with Mediacom to get access to the emergency alert system to
the Iowa City police. Mediacom has also been working with Shaffer on getting additional origination
points for the access channels in the downtown area. Mediacom has been running public service
announcements for the Cable Division on the Avatar program across their channel line-up. Elections
for the Commission chair and vice-chair will be held next month. Shaffer asked the Commission to
consider if the access channel monthly programming reports included in meeting packets are useful
and clear to the Commission. Mediacom has started to collect the $0.55 pass-through fee and
distributing it to the City. This is a $0.05 increase from the last franchise period and was a result of the
refranchising process.
CITY CABLE TV BUDGET
Shaffer said that in regards to the reserve fund that it has been used for refranchsing costs, lawsuits,
and to maintain an operating surplus in the event the department's funding source would be lost or
reduced. The department is supposed to be self-sufficient. There are a number of things that could
come up that would challenge the ability of the department to be self-sufficient. Typically anywhere
from 1-2% ofan annual year's budget is put into the reserve fund. Helling said the reserve fund
balance may be a little high, but the department does own their office space and there is a potential
liability for upkeep and repairs. The City Council has asked for information on how the franchise fee
is dispersed. Information the reserve fund will likely be included with that information. The Council
will be addressing an amendment to the cable TV enabling ordinance that brings it into compliance
with the practice of using franchise fee funds to supplement the general fund. Hagen asked ifthe use
of franchise fees to supplement the general fund over the past few years was illegal given the unclear
language in the ordinance on how the funds were to be used. Helling said that it was probably not
technically illegal. Helling said that changing the ordinance doesn't necessarily mean that the Council
will be taking more of the franchise fee in the future. Mekies asked if consumers know about the use
of the franchise fee? Helling said that is public information and that there was an article in the paper
on the topic. The decision to use franchise fees for the general fund has been made each year.
Christians said that the Commission can educate the Council about the budget and the reserve fund and
asked if the Commission could work to convince the Council not to adopt the change to the ordinance.
Helling said members could address the Council during consideration of the item at the Council
meeting. Christians asked what the normal practice is for most cities in Iowa with regard to the
franchise fee. Shaffer said that many cities put the franchise fee in the general fund. Mekies
suggested passing a resolution that use of the franchise fee should follow the 25-year policy articulated
in the ordinance and the franchise fee, as a user fee, should be used as it was intended. Christians said
he is in favor of communicating with the Council but relying on precedent, as the major argument may
not be convincing. Because all city departments are experiencing financial strain the Commission
needs to present hard facts as to what the money is used for and what it could potentially be used for.
Mekies said that time was running out on this year. Helling said that consistency of message is
important. It is unlikely Council would make a change this year. If the Council wishes the ordinance
be consistent with their actions they have two choices: modify the ordinance or not take the $100,000
from the franchise fee. Hagen said the Commission should keep the topic alive during the next year.
PATV CONTRACT
Shaffer reported Helling, Mekies and himself will be meeting to discuss comments on the contract
from Dulak. After that they will meet, perhaps for the last time, with P A TV to finalize the contract.
ACCESS CHANNEL OUESTIONAIRE
Mekies asked if any common concerns or issues might be distilled from the responses supplied by the
access channels. Money was a common concern. All the channels are counting on the Commission
for support. Shaffer said all the institutions see their channel as a valuable resource and would like to
do more than they are now. Hagen said the questionnaire served as a good tool to refocus their vision
for each channel.
WI-PI
Shaffer said that cities are not nearly as far along in implementing a wi-fi system as the media makes it
appear. A number of cities are studying the issue, but very few are actually operating a system. There
are several problem areas including security and interference. Cities are particularly interested in the
assertions that a wi-fi system will save the city money and that it is a good tool for economic
development. There has yet to be any evidence to support those assertions. The City of Iowa City has
been exploring the issue but the difficult questions still lack answers. Mekies said that Iowa City does
have more hot spots around the downtown area than many communities, but some cities such as
Mason City are pursuing wi-fi for the entire city. Hagen agreed with Mekies that the Commission
should continue to pursue the issue.
ADJOURNMENT
Hagen moved and seconded a motion to adjourn. The motion passed unanimously. Adjournment was
at 6:55 p.m.
Respectfully submitted,
Drew Shaffer
Cable TV Administrator
TELECOMMUNICATIONS COMMISSION
12 MONTH ATTENDANCE RECORD
01/01/03 to CURRENT
Meeting Date Kimberly Saul Meikes Brett Castillo Terry Smith Jim Pusaek
Thrower
6/2/03 X X X X X
7/28/03 X X X X X
8/25/03 .x X X X ole
9/22/03 X X X X ole
10/27/03 x x x x ole
11/24/03 x x ole x x
12/15/03 ole ole x x x
112/04 x ole x x x
1/26/04 x x x x x
2/23/04 x ole x ole x
3/22/04 x x x x x
41 26/04 x x x x OIC
5/24/04 x x OIC x x
6/28/04 x x x ole x
7/26/04 ole x x x x
8/26/04 did not meet did not meet did not meet did not meet did not meet
9/27/04 X X X X X
1 0/25/04 X X
11/04 Did not meet Did not meet Did not meet Did not meet Did not meet
X X X X X
12/20/04
1124105 X X X X X
2/28/05 X . X X X
Garv Haoen
3/8/05 X X X X X
3/25/05 X 0 X X X
4/25/05 x ole X X X
5/23/05 X 0 x vaeanev X
James X x Bebe x
Ehrmann Balantvne
6/27/05 X x X X X
x Michael
Chritians
7/25/05 0 X X X X
9/26/05 0 X X 0 X
10/31/05 X X ole X X
11/28/05 X X X X X
1123106 ole X X 0 X
2.27/06 X X X 0 x
(X) = Present
(0) = Absent
(O/C) = AbsenUCalled (Excused)
MINUTES
IOWA CITY PUBLIC ART ADVISORY COMMITTEE
THURSDAY, MARCH 2, 2006, 3:30 P.M.
LOBBY CONFERENCE ROOM, CITY HALL
PRELIMINARY
rn1
Members Present:
Charles Felling, Emily Martin, Mark Seabold, Terry Trueblood, DaLayne
Williamson
Members Absent:
Emily Carter-Walsh, Rick Fosse
Staff Present:
Marcia Klingaman
Others Present:
Whitney Givens (UI Journalism student)
Call to Order
Seabold called the meeting to order at 3:35 p.m.
Public discussion of any item not on the aaenda
There was no discussion.
Consideration of the Minutes of the Februarv 2. 2006 Meetina Minutes
MOTION: Martin moved to accept the minutes as submitted, and Felling seconded. The motion passed
on a vote of 4-0.
Discussion of Council reauest for public art tour durina Arts Fest
Klingaman said this topic arose from a discussion about placing a sign at the head of the Sycamore
Greenway trail to indicate where "Birds in Flight" is located, once it has been installed. The idea was that
a tour would promote public art, and a good time to do it might be during Arts Fest. Martin suggested a
self-guided tour map could be made available. Klingaman agreed.
Klingaman said this was discussed at council meeting, and the idea was to include all the University
artwork as well. The issue with University art is determining who the contact person is for such a project,
a process that is possible but will take time.
Seabold said a map was created for Arts Fest in 2005 that was put into the kiosk created for the
installation for "Politically Purple." He said he was updating it for 2006 and the plan is to make a
downloadable file for the internet, or a newspaper insert. Klingaman said the InfoVision people had an
idea for an interactive map with information in a similar setup as what was done for Herky on Parade. She
told them that would be fine, and asked them to work with the committee. They also discussed in general
the need to promote public art.
Martin and Seaboid agreed there is a lot of public art, and most people are probably unaware of how
much is available. Martin said it would be nice to have a way to find the pieces, rather than relying on
chance encounters. Seabold said the kiosk had cropped images of several pieces, the idea being that the
image gives an idea about the piece, but someone would still have to see it in person. Martin said that
sounds like a great approach.
Seabold suggested creating a downloadable iPod tour as well. A tour map would still be necessary, which
. could be a printable file to download at the same time. He noted that some museums are beginning to
take that approach. Martin agreed it is an extension of the museum gallery guides. She said from what
she understands it is not difficult to generate the files for the iPods, and it is a handy way to distribute a lot
of information. Klingaman said she would talk to the InfoVision people about it. She added that the person
she spoke to said the idea he had was already interactive through the website.
Seaboid asked when Arts Fest is. Klingaman said it is the first week in June. Martin said the project could
be done at different levels with different time frames. Seabold said that putting the a PDF on the web is
easy. Klingaman suggested focusing on the Iowa City program, and then bringing in the University art as
time permits and as the information is gathered.
Iowa City Public Art Advisory Committee Minutes
March 2, 2006
Page 2
Felling said this project would be more advanced than the DVD from Seattle. Klingaman agreed, though
she noted the video was from a few years ago.
Discussion of submittals for Sculptors' showcases
Klingaman said the contacts from the School of Art she received from Martin were wonderful and very
helpful. She said she dropped off some posters, and extended the deadline for delivery and installation to
August 2006. She has already had a few students call to find out more information. Seabold asked when
submissions would be presented. Klingaman said April 6.
Klingaman said she has not been able to follow up on the downtown Sculptor's Showcase by making
phone calls or other contacts. Seabold asked if there have been any late calls. Klingaman said no, though
she plans to work on this next week. She asked if the committee would consider keeping the current
sculpture a few extra months. At this point, unless the artist has the proposed piece already finished and
ready to install, it is unlikely to be ready in time for a June installation. She has not approached the artist
regarding the idea of keeping the current piece in place. Martin said that sounded fine.
Felling said it seems like the level of interest and submissions for that project is highly variable. Seabold
agreed.
Update on Poetrv in Public
Klingaman said the subcommittee reviewed 280 student entries this year, which was an increase from 36
in 2005. She said the language arts instructors in the junior high schools were very enthusiastic about
pursuing this with their students. Though there were a lot of submissions, evaluating them went quickly.
She added that there were also 80 adult submissions this year, compared to 56 in 2005.
Williamson arrived at this point.
Klingaman reported the program would be expanded this year. Previously there were 42 poems
accepted, which meant the 21 city buses each had two poems posted. This year 69 poems were
accepted, and as there are now 23 buses, each bus will have three poems. The poems have all been
reviewed and selected. The selected poems are about equally divided between student and adult
submissions. They will be printed up in the next few weeks, and in the buses in early April. They will also
be posted in the kiosks and in the recreation centers. She added that a press release would go out with
more information.
Klingaman said she hopes to make a booklet with all the selected poems since she has been asked in
previous years to publish a booklet. The poems are also available on the web.
Martin asked if Klingaman was pleased with the submissions this year. Klingaman said she was pleased
with the higher level of participation from the students, though that was mostly from the junior high level.
She said the quality did not seem any higher, perhaps because many students were forced to participate.
However, there were several very high quality submissions from the junior high students, which gives a
different voice and viewpoint from the elementary student submissions.
Klingaman said she was pleased with the submissions on the adult side, and added that it is never easy
to choose them. Martin said it was good to know the number of adult submissions went up, since their
participation is voluntary. Klingaman said increasing the numbers much more would make reviewing and
selecting the poems a challenge. She noted there was a decrease in the 1" through 6th grade
submissions, so more focus will be given to publicizing at that level next year.
Klingaman said there were only about six submissions at the high school level. She said there was also a
lot of work done at the high school level this year to increase their numbers.
Committee time/Other business
Trueblood said he spoke to someone with the Johnson County dog park group (JCDogPAC) about
interest in some form of public art for the signage for the park. They heard about the sign project for the
Benton Hill Park. He said he told them that the Benton Park project cost $30K overall, $10K of which
came from the project budget while the other $20K came from the Public Art Committee. He said they
inquired about the process involved with initiating such a project, and he said he was not sure, though
perhaps it would be similar to the one used for the neighborhood art projects.
Iowa City Public Art Advisory Committee Minutes
March 2, 2006
Page 3
Klingaman said Jean Walker emailed Frankiin regarding this, and since Walker is involved in the Melrose
project, she is familiar with the process. Klingaman said this sort of project would follow the process for
community-initiated pubiic art. She added that Franklin directed Walker to the appropriate appiication
form.
Trueblood reported that he told his contact, Jim Kelly with Lucky Pawz, that the committee has taken the
first steps for putting public art in the peninsula parkland, and that it is a good location. He is not sure how
it wouid work into the dog park, but it may be possible.
Williamson asked for confirmation that this would be part of their signage. Trueblood said that is what
Kelly said, though Kelly mentioned that idea in part because he was familiar with the Benton Hill sign
project. Trueblood said he is not sure what else the group might be discussing. Williamson asked if the
money would still come from the same place if it was a part of their sign as it would for a piece of art.
Trueblood said not necessarily. The Benton Hill art project happened in conjunction with a park
development project, and the neighborhood association wanted to incorporate some public art into the
sign. In that case, part of the money for the sign came out of the park development fund, and part of it
came from Public Art. At Benton Hill, there was a park development fund availabie, whereas the dog park
is being funded through donations.
Martin asked if JCDogPAC could apply for city funding with matching funds from their end. Klingaman
said yes, through the community-initiated program. She added that the Irving Weber statue was a project
that involved cost sharing. Felling said a similar approach was also taken for the mural at Dulcinea.
Kiingaman reported the City Council iiked the pubiic art recognition program and adopted it at their last
meeting. The proposal has a nomination deadline of April 30, so some promotional activities need to
happen soon to get the word out. She asked if anyone on the committee would iike to participate in
promotion, and if so, in what ways. She added that she will give the information to the neighborhood
associations and newspapers, and might have a brochure made. She said she is also looking for other
ideas about ways to circulate the information, and said if anyone wishes to participate or has ideas, to
contact her soon.
Felling said the committee had discussed relying on the neighborhood associations for nominations.
Williamson asked whether someone should present the program by meeting with the associations.
Klingaman said yes, if the associations would be meeting. Otherwise the associations' newsletters might
be a better route. For example, she noted that the Lohgfellow association would have a story about the
upcoming historic preservation nomination deadlines. Kiingaman added that the recognition program
should be advertised more broadly than just with the neighborhoods.
Feliing asked if any of the other neighborhoods have online information besides Longfellow. Klingaman
said yes, though she does not know how current the sites are. Many of the sites were hosted by the
Johnson County network, which folded about 1.5 years ago, and have not been re-estabiished. Felling
noted that Longfellow has an online newsletter that goes out every month. Klingaman said Longfellow has
an extensive emaillist, and said she thinks a lot of other neighborhoods go that route as well. Felling said
one of the issues with using that medium is getting interested people to put their email addresses in.
Martin asked if the city has an area where information about the recognition program could be posted on
the web. Klingaman said yes, in the Highlights section. Also, a press release will go out. She said
advertising should be broad, not focused only on the artist community, but also on the people who live in
the neighborhoods and see the art. Williamson asked whether this could be put into school newsietters.
Klingaman said she would try that and would give the committee an update at the next meeting.
Martin asked for confirmation that Klingaman planned to have a brochure. Klingaman said yes, something
short and snappy to give an impression of the program, contact information, and the dates. She added a
poster would be another option to put in the schools or recreation centers.
Klingaman reported that the Wetherby Park contract was approved by council at their Tuesday meeting.
Council also approved the concept for the Melrose project. She added that there was some discussion,
but many of the council members are consistent in their support of public art.
Iowa City Public Art Advisory Committee Minutes
March 2, 2006
Page 4
Martin asked for the status on the council member's proposal about funding Summer of the Arts (SOT A).
Klingaman said it did not go anywhere. Seabold said it was just a memo proposing that half of Public Art's
budget go to support SOTA, the idea perhaps being all.the expenses reiating to art couid be shared. He
noted that SOTA is very different from the public art program, however. Trueblood said SOTA did get the
money they requested. Seabold said yes, and the public art budget stayed intact as well.
Trueblood said the council member who submitted the proposal has not been a strong supporter of public
art. Seaboid said there appeared to be support from many of the people attending the meeting on
Tuesday when he made his statement. People see the value in public art, and are supportive.
Klingaman said the "Just for Kicks" sculpture is progressing, and is currently in process of being
fabricated. She said Terry Robinson reported a concern to her with the sculpture's design, specifically
with the curved portions of the pipes protruding enough for people to possibly climb the sculpture and
also getting heads stuck in the pipes. Though it is not playground equipment and is not intended for play,
he would like to adhere to the requirements for playground equipment that say if there is an open space
in the object, the space needs to be less than four inches or greater than nine.
Klingaman said she approached the artist with this concern. The artist is confident that the piece is not
climbable, but has investigated alternatives to address these concerns. One proposal was to reduce the
number of pipes to four, which would increase the spacing. However, that would not be structurally
sound, so that option has been dismissed. The other option currently being investigated is pulling out the
curved sections on all the pipes about two inches, which would increase the spacing. The artist said
visually it would be hard to see them as curved with the increased space, but is working on sketches.
Trueblood said kids will try to climb anything, and there is little to be done about that. He noted that he did
not think of questioning the space in the curved section because there appeared to be plenty of space.
Klingaman said the artist also thought there was enough space, but after working out the math came up
with just over eight inches of space. Klingaman said Robinson also suggested putting a fence around it,
though she noted kids would climb that as well.
Klingaman said the pad for the Kicker's piece will be poured soon, and she said another option would be
to raise the piece higher to make climbing it more difficult. That would have to happen in the pad area,
which should be decided soon. Trueblood asked when the piece would be installed. Klingaman said the
middle of April, though it might be earlier. She said the artist has been very reasonable to work with.
Adiournment
There being no further business to come before the committee, Martin moved to adjourn. Felling
seconded and the meeting was adjourned.
s:lpcdfminuteslPublicArtl2006l03-02.06.dOC
Public Art Advisory Committee
Attendance Record
2006
Term
Name Expires 1/05 2/2 3/2
I Emily Carter Walsh 01/01/08 OlE X OlE
I Charles Felling 01/01/09 X X X
DaLayne Williamson 01/01/09 X X X
Emily Martin 01/01/08 X OlE X
I Mark Seabold 01/01/07 X X X
i Rick Fosse X X OlE
i
,
I Terry Trueblood X X X
I
Key:
I X = Present
I 0 = Absent
OlE = Absent/Excused
:
, NM = No Meeting
I
!
I
!
I
I
I
I
I
I
i
I
i
I
,
I
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
MARCH 15, 2006
LOBBY CONFERENCE ROOM
PRELIMINARY
~
Members Present: Regenia Bailey, Connie Champion, Bob Elliot
Members Absent: NONE
Staff Present: Karin Franklin, Tracy Hightshoe, Steve Atkins
Others Present: Cleo McConnell
CALL MEETING TO ORDER
Chairperson Bailey called the meeting to order at 3:00 PM.
APPROVAL OF THE MINUTES FROM MARCH 10.2006
Motion: Elliot moved to approve the minutes from March 10, 2006 meeting as written. Champion
seconded the motion.
Motion passed 3:0.
DISCUSSION OF APPLICATION FROM MCCONNELL REVENUE CYCLE SOLUTIONS. INC. FOR CDBG
ECONOMIC DEVELOPMENT FUNDS
Franklin said that Cleo McConnell from McConnell Revenue Cycle Solutions, Inc. has applied for CDBG
Economic Development Funds.
McConnell said that for the past three years she worked at the University of Iowa Hospitals and Clinics. She
said she was employed by a company from Houston, Texas which performed billing services for hospitals. She
said she was hired to work as on site project manager. McConnell said her proposed business will perform
billing services for hospitals. She noted that billing has become an overwhelming task for hospitals to do
themselves. McConnell said hospitals need the expertise of companies that focus solely on billing and coding
requirements.
Franklin asked why the focus of the business is solely on billing for hospitals, and not for individual medical
practices. McConnell said that billing practices are different for hospitals versus physician's offices and her
expertise is in hospital billing.
Champion said that she would like to see 20% of McConnell's personal money go into the business start-up.
She added that it is unusual to have a $60,000 start-up salary at the beginning of the business. She said that
she would have an issue with the city funding that guaranteed $60,000 salary. Champion said that starting a
business involves some risk that has to be taken by the proponent.
Elliot said that he would like to know more about McConnell's experience. He said he would like to see a
timeline for employment. He said he would also want to know what happened with the Houston based firm, and
the reasons for stopping employment with them.
McConnell said she left in May 2005 to start her own billing company. She said that she had three bosses
throughout the time frame they were contracted with the hospital. She added that one boss left without letting
her know. She said that one day a person flew in from Texas and introduced himself as the new boss and asked
her to write everything she has done since employed with the company. McConnell said that three weeks later
the new boss flew back, met the staff, and said they needed to separate employment, meaning she and the staff
had to go. McConnell added that the contract with the hospital was terminated at a later date.
Elliot asked how long she was on site project manager. McConnell said she was on site project manager for 3
years from 2002-2003. She noted that she had had her own business from 2001-2002 doing billing services
from home while also maintaining a full time job with Johnson County Mental Health.
Bailey asked McConnell to discuss the business budget. McConnell said that as noted in the budget plan she
would like to start with fewer employees and get enough funding for operating expenses for at least a two month
period because the company will start to internally fund thereafter. She said that when starting billing the
Economic Development Committee Minutes
March 15, 2006
Page 2
payment is received two months after the initiation of process. McConnell said the budget comprises the
salaries of people required based on the size of the account, rent for space, insurance costs, copy machines
and computers. McConnell said there are facilities and professional fees. She noted that the budget is based on
essentials until receiving first receipts.
McConnell noted that she looked for a software company that could do all that was needed. She added that she
found a company which was selling software called Papers. She said the software was very expensive.
However, she said she found a new company with a much lower price. She added she was able to speak with
their clients. She noted speaking with a client from Alabama who was very open to discuss the software
capabilities and about the start-up steps as well. McConnell said the company gave her an option to use a host
system. She said the host is maintained by the software company, and she would need to pay a monthly fee to
connect and use the software. She noted the cost is highly reduced through this option.
Elliot asked if she spoke with any other customers. McConnell said she discussed with two other clients,
however the person from Alabama took it one step further by advising on start-up steps and experiences. She
added that she proposed he become her consultant, but he said he will help her for free.
Champion asked if she approached any small hospitals. McConnell said that small hospitals need billing help.
She added that one of the advisory board members Sarah Voulterback is the vice-president for the human
services for the Iowa Health System Network. McConnell said that Voulterback gave her a list of contact details
for 14 hospitals which came to the Iowa Health System Network asking for billing services. She added the
Network could not take them due to overload of activity. She added that Voulterback contacted all CEOs of
these hospitals who contacted their CFO saying there is a new Iowa based company starting in Iowa City that
can take their account and do the billing service for them. McConnell said she does not have any letters of
intent, but is actively bidding on one contract in Knoxville. She added that she will have meetings with two more
hospitals in April.
Elliot said that the key is that the hospitals know they have a need for billing experts. He asked how many hours
will be worked in a one year period. McConnell said she plans on having 40 hours per week, multiplied by 52
weeks results 2080 hours per year.
Elliot asked how she calculated the salary budgets because based on his calculations there are a few of
employees receiving less than $7 per hour. McConnell said that with the exception of the receptionist no one
receives less than $12 per hour. Hightshoe said she had similar results s those of Elliot. McConnell said that she
computed the salaries monthly, but she made an error when adding them annually.
Elliot said that one criterion for the Committee is the provision of good employee salaries and work environment,
in addition to what the company means for the City and the tax base expansion that it would provide. He said he
would like to see a compensation figure.
Hightshoe asked how much time will be needed to buy all needed equipment to start the business. McConnell
said the company can become operational in 48 hours.
Franklin said thqt she saw the letter from Hills Bank and asked if they were willing to reconsider the application
for a lower amount. McConnell said they will not reconsider the application. She added that she has no assets at
this point. She noted that she did not have a salary from May 2005 and she is living on savings.
Elliot asked if she has a location for the business. McConnell said she has a location that she moved in. Elliot
said there will be an 80/20 split on medical and dental insurance and asked what other benefits will be offered.
McConnell said that Pella Regional will take care of 401 K benefits. In addition, she said, there will be vacation
time, sick leave as well as gift certificates.
Champion said the plan shows a very viable business. Bailey said that it makes sense to have an Iowa based
company to serve the local hospitals. McConnell said there is no Iowa based billing services company. She said
she has the right expertise and support from her advisory board.
Elliot asked if the employees will work in an office or have the option of working at home. McConnell said that
working with hospitals requires office work. She said that in addition to offering billing services to hospitals she
would like to offer coding directions for staff to allow for more claims processed in the first round. She added that
each time a claim is denied the reimbursement amount fails. She added that this can be avoided by training
Economic Development Committee Minutes
March 15, 2006
Page 3
hospital staff how to code correctly. She added that she discussed with Kirkwood Community College the
addition of curriculum for hospital billing. She noted that she is helping them develop the curricula. She added
that they could put together an externship for students to work In her office, and if it works well at completion of
study they could be hired as the company grows.
Franklin asked what type of funding is requested. McConnell said she is asking for a grant or a low interest loan.
Bailey requested comments from her fellow Committee members on a decision regarding this request. Elliot
said the business will provide good solid compensation, has the potential for growth and providing a tax base,
and will be in favor of funding the project. Bailey said this was one of the best micro enterprise applications
received and is in favor of providing funding. Champion said she is also in favor of funding the application. She
said the jobs will be good and the business has the potential to grow. Franklin suggested the loan be granted
contingent on the first contract being obtained. Elliot said they would have to do a contingency type statement.
MOTION: Champion moved to approve a $60,000 loan at 2% interest for 7 years with granting of the loan
being contingent on the first contract. Elliot seconded the motion.
Motion passed 3:0.
Hightshoe said that McConnell can not order any supplies until the funding agreement is signed because based
on federal regulations it will be considered prior expenses and will not be covered by the allocated funds.
DISCUSSION OF JOB DESCRIPTION FOR ECONOMIC DEVELOPMENT COORDINATOR
Franklin said that she worked with the City Manager, Steve Atkins, to compile a list of priorities for the Economic
Development Coordinator position. She noted that the list includes all responsibilities the last full time economic
development person had as well as new, more specific responsibilities.
Elliot asked where this position will fit in within the City organization. Franklin said the position will be equivalent
to a division head position with a salary range of $52,000-$80,000. Champion said that she is willing to try to
have the position approved as proposed.
Champion said she is a great believer in having a great title for the position. Elliot asked if there is any reason
why the position can not be considered a director of economic development. Atkins said that the director is a
title generally reserved for department heads and connotes a certain placement in the organization with
significant supervisory responsibilities. Atkins said they could recruit in that salary range.
Bailey said that having the wrong person would be very expensive for this position. Franklin said that even atter
interviewing they can revisit their decision.
Franklin asked the committee to look at the list of responsibilities do determine if it is on the right track for the
Council's expectations for the position.
Atkins said that in the general budget the position is funded part-time, but is currently proposed to go full-time.
He said he would like to charge half time to water and sewer accounts since the position will generate new
water and sewer customers. He added that the airport should also be included.
All the committee members were in favor of advocating for the position.
DISCUSS DATES FOR VISIT TO NUCLEUS RETAIL INCUBATOR. CEDAR RAPIDS
Franklin noted March 23rd and March 24th as possible days for the visit. The Committee decided to visit
Nucleus Retail Incubator, 207 2"' Avenue SE, Cedar Rapids, on March 23rd at 2 PM.
ADJOURNMENT
The meeting adjourned at 4:12 PM.
Minutes submitted by Bogdana Rus
s:/pcd/minutes/ecodev/2006103-15-006.doc
Council Economic Development Committee
Attendance Record
2006
Term
Name Exoires 01/18 02/16 03/10 03/15
Regenia Bailev 01/02/08 X X X X
Bob Elliott 01/02/08 X X X X
Connie ChamDion 01/02/08 OlE X X X
Key:
X = Present
0 = Absent
OlE = Absent/Excused
NM = No Meeting
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
THURSDAY, MARCH 9, 2006, 6:30 P.M.
IOWA CITY PUBLIC LIBRARY, ROOM A
PRELlMIN~
Uf1l..J
Members Present:
Jerry Anthony, Lori Bears, William Greazel, Matthew Hayek, Kelly Mellecker,
Thomas Niblock, Brian Richman, Michael Shaw
Members Absent:
Staff Present:
Tracy Hightshoe, Steve Long, Linda Severson
Public Present:
Ron Berg, Mary Chval, Maryann Dennis, Mark Edwards, Marla Edwards, Beth
Koppes, Jan Lehman, Sandy Lawrence, Suellen Novotny, Mark Patton, Steven
Rackis, Stephen Trefz, Michele Schintter
Call to Order
Anthony called the meeting to order at 6:40 p.m.
Public Discussion of any Item Not on the Agenda
Bears apologized to the commission members for being unable to attend the last meeting.
Anthony said the city legal department advised that if a commission member has a potential conflict of
interest - such as serving as a board member on any of the agencies that are applying for funds - they
should talk to city staff at the end of this meeting. The matter will be investigated and a decision made
whether the commission member can participate on March 23 when the commission formulates a budget
recommendation to Council.
Hayek said he has discussed his situation with representing Community Mental Health Center as their
outside counsel and it was determined he does not have a conflict.
Bears said she has to abstain from discussing the ARC of Johnson County as she has been on their
board since July. Hightshoe said more research on that situation will be done to find out what options are
available and she will contact Bears later to discuss it.
Discussion Regarding FY07 Community Development Block Grant (CDBG) and HOME Investment
Partnership Program (HOME) Requests
Anthony said the discussion would occur in two stages, first to discuss the ran kings, and then the average
allocations. No decisions are made on allocations at this meeting, though they may be discussed. Score
sheets and recommended allocations from each member have been distributed, but the commission
members should feel free to alter their recommendations and give their changes to staff by early next
week. Staff will make the proposed changes before the next meeting.
Anthony said updated score and allocation sheets were distributed at the beginning of the meeting.
Hightshoe said the allocation sheet is the same, but the ranking sheet has been updated with Greazel's
information. The ranking for public facilities was the only change.
Anthony asked how the commission would like to proceed. City staff has taken pictures of one of the
housing projects and all of the public facility projects. All agreed to begin by discussing the public services
projects and to review them one at a time. Hightshoe suggested discussing the projects that had a large
difference in scoring.
Shelter House - Outreach Coordinator
Richman suggested that Anthony and Shaw share their thoughts regarding why they recommended full
funding for this project. Anthony noted first that this category could only provide up to $14,300.00, so it
would not be possibie to recommend funding for all the projects. He chose to fund the Outreach
Coordinator fully because Shelter House would use the money as part of the local match for a large
federal grant, which would potentially bring in an additional $400K in outside funding. The additional
funding would benefit not only Shelter House, but also many other service groups in the community. Not
funding this project would potentially lead to losing out on the larger grant.
Housing and Community Development Commission Minutes
March 9, 2006
Page 2
Shaw said the match of funds from the outside grant, plus the fact that it would benefit more than just
Shelter House, also primarily influenced his recommendation. He felt it was the one he would like to fully
fund and then review the other projects after that.
Hightshoe said the commission members also have the option to ask the applicants questions if
necessary.
Greazel said he did not recommend funding for this project because there is never enough money to go
around. His philosophy on the issue is that the choice is either to provide funding to one or two projects,
enough to make an impact or to spread the money thinly all around. Pulling all efforts into one might
make it strongly viable, versus spreading the money and making several things barely viable. He noted
there is nothing wrong or lacking in any of the projects; he simply chose a few to focus allention on this
year and will choose other projects in the future.
Hayek said he does not know that partially funding would make or break any of the projects. Since not all
of the projects can be fully funded and since all of the applications had a lot of merit, he chose to fund
them all at some level. Some were weighted more heavily than others, but all received something.
Mellecker said she falls between the two approaches, but tried to choose some projects to focus on.
Shelter House representatives did say they would prefer funding 90 to the Outreach Coordinator, so she
chose to fund that project and not their other project.
Shaw said he was trying to maximize some of the funding, but also spread out the rest of the funding to
the remaining projects, hoping a Iillle would be helpful. In this case, he funded his top candidate fully, and
then spread the rest of the money among the other projects.
Shaw asked for clarification whether Greazel had a strong opinion about not funding any of the agencies.
Greazel said he thinks all of the applications are great programs. It is simply a question of how best to
distribute the money, and trying to make the best judgment. He has decided to try to make a real impact
on a few things and choose other things next year, but stated all were good programs.
Free Medical Clinic - Case Management
Anthony asked if anyone had comments about this project. Greazel said the clinic makes an immediate
difference in people's lives. Some other things are not as urgent, but having medication available is a high
priority. Richman said this program also brings in many in-kind donations from drug companies and other
donors, so it is another one that gives a lot of leverage in terms of funding.
Anthony said he is not sure that he agrees with the funding leverage aspect, because it is not a local
matching situation. He said it is a great program and he wished more money were available to fund it.
Shaw noted the stated intention is to use the funding for case management and said he did weigh that
aspect against whether funding this project would make a significant impact on their services in terms of
direct patient care.
Hayek said the announcement of the clinic's move coincided with the iast HCDC meeting. He asked if
there is any information about staffing needs for the new clinic and when it will open. Hightshoe said a
larger space would help them utilize more volunteers. Hayek said that could ramp up the demands on
their staff. Shaw asked whether the case management project would work if it was not fully funded.
Hightshoe said their representative indicated funding would be found.
Anthony asked about the loan forgiveness situation. Hightshoe said the clinic received a loan in fiscal
year 1997 to renovate the Wesley Center into medical office space. It was a 10-year forgivable loan,
which still had approximately 1.5 years left with $5,000 outstanding to be forgiven. Free Medical Clinic
asked if they could move up the expiration date and forgive the remaining debt at that time so they could
move. They did not ask for additional funds for the relocation.
Bears asked if the clinic was supposed to find a tenant. Hightshoe said the Wesley Center is now looking
for a tenant for that space. As far as she knows, they do not have one yet.
Housing and Community Development Commission Minutes
March 9, 2006
Page 3
Shelter House - Security Deposit
Niblock asked if there was a preference specified between the two Shelter House projects. Anthony said
yes, Shelter House stated the Outreach Coordinator. Hayek said that is the project where they need the
match. He added that this is also a great project, helping to move people into employment and housing.
Shaw agreed, and said if the money were available, he would try to fund this particular project completely.
It is one of very few resources available that helps people begin the steps to secure a permanent home.
Hayek asked about the funding amount available in the public services category. Hightshoe said the city's
entitlement amount has been going down every year; however there is a set council earmark of $105,000
that gets distributed to Aid-to-Agencies. Hayek asked for confirmation that it comes out of the public
services pool. Hightshoe said yes.
Hayek asked if any of the FY07 applicants get funding through Aid-to-Agencies. Hightshoe asked
Severson for that information. Severson said Shelter House, Free Medical Clinic and Neighborhood
Centers of Johnson County receive funding through the Aid-to-Agencies process. Hayek noted that VNA,
Compeer and Extend the Dream do not receive funding under Aid-to-Agencies. Anthony said that if
federal funding continues to decline, there might not be any money in this category next year for HCDC to
consider unless there is an adjustment in the way the Aid-to-Agencies earmark is calculated.
VNA - Mental Health Home Care
Anthony said there just is not enough money for all. This application received low points when he scored
it, so he decided not to fund the project. Mellecker said she tried to fund programs that were unique and
filled a specific niche. The fact that they have no city funding is also significant.
Shaw asked for confirmation that VNA has done things to bring the budget more in line. Novotny said yes,
when she became director in 2002, there was a bottom line issue and significant iosses. Much was due to
overspending grants. Fifty percent of patients are on Medicaid, which was not covering their costs. They
had only one fundraising event per year and now there are four or five to try to offset their operating
costs. They may have made money in 2005, but they will not know until receiving the 2005 Medicare
reimbursement. They also raised funds to support 12 health units for their mental health patients.
Novotny said a Medicare cost report is done annually for Medicare certified agencies. For 2004, nursing
cost was $84 for home care and Medicaid would only reimburse $74. The gap needs to be subsidized
somehow. There is a larger gap for Medicaid mental health care, where the actual cost is $84, and
Medicaid reimburses $65. She negotiated with Medicaid to have that amount increased from the original
$55. She added the cost report for 2005 has not been done yet.
Shaw asked for confirmation that the cost for services was reduced. Novotny said yes, she has
downsized the organization and reduced the overhead. The field staff could not be reduced, so
administrative staff was cut by 30 percent. There was a 47 percent reduction in staff overall and the
organization cannot cut any more. The $84 cost reflects their current status.
Mellecker said another reason she funded this project was because it appeared a lot of effort from the
organization was put in to reduce costs. Hayek said he likes the application because it is preventive in
nature. Dollars spent now on in-home mental health assistance could help avoid situations in the future
where the person needs institutionalization or becomes homeless. It also is heavily weighted to the zero
to thirty percent income level, and is targeted to the people who need help the most. Richman agreed
with that aspect of this program. He added that in terms of extending help to mental health patients, this
program provides the most for the money, which is why he allocated more money to them than the
others.
Compeer - Director
Hayek noted that all of the commission members recommended low or no funding, so there might be no
need for discussion. Shaw said he was concerned with the group's administrative control of finances. No
points were given on his score sheet for financial and administrative support and ability to deliver on the
project. He noted there was a gap in some reporting, and that is where the application took the biggest
point hit. Anthony said it was a gap in the income reporting.
Housing and Community Development Commission Minutes
March 9, 2006
Page 4
Neighborhood Centers of Johnson County - Newcomers Network
Anthony said he gave the lowest recommendation because no report was submitted for the funding the
group received in a previous year. He does not know how the money was used and is very reluctant to
fund them again without that information. He noted the organization itself is great and has done very good
work.
Hayek asked if there was confusion about the report or if it was simpiy not submitted. Long said they
submitted information, mainly meeting notes, and there are no plans to submit more. Hayek asked how
much did NCJC receive for the project. Long said approximately $5,900. Hightshoe said they presented a
survey at the meeting, but the survey was conducted before the money was awarded so it cannot be
used as the planning study or work plan for which the funds were utilized.
Hightshoe said what was submitted were meeting notes from a iarge meeting they had. The notes had
identifiable objectives, but were laid out like minutes. Bears asked how long it has been since the project
was completed. Anthony said the project has been done for over a year.
Hightshoe said they did present a document. It is rare that funding is given for a planning project that was
not completed or performed by city staff, thus there were no specific requirements regarding what must
be contained in the study or work plan. However, a work plan/study was required based on the
agreement and application submitted. Anthony said a revised plan or one with more detail has been
requested, so there might be no point in asking. Hightshoe said NCJC views what was submitted as their
report. Long agreed that it comes to a difference of opinion on what the report must contain or how it
should be presented.
Richman suggested requesting a copy of the planning document in the future when applications involve a
specific product to be produced, as a provision of the funding agreement with the agency. Long said that
was in the agreement, but the guidelines did not have very much detail. Shaw said that would help reduce
ambiguity about whether the project had actually been done.
Hightshoe said the previous project was done, though it may not have been done the way that was
envisioned. The report submitted was based on one meeting that divided participants in subcommittees to
address different goals. The subcommittees then identified how they could meet their assigned goal. The
report detailed the work done at that meeting, however it many ways it read like the minutes of a meeting
and did not appear as a formal report, broken down into sections, with a table of contents, etc.
Richman asked if the expectation was for an externally or internally generated report. Anthony said
internally generated by the agency. Long said the commission expected to see a clear-cut plan, what the
neighborhood needs and the steps to take to get there. Hayek asked if the neighborhood center got some
good information out of the study. Hightshoe stated she believed so as the proposed FY07 project came
out of the study and there has been work to meet some of the goals outlined in the document submitted.
Greazel asked where the money for the project went. Shaw said the money went to fund the staff person
who facilitated the discussions. This activity qualified as a planning activity instead of a public service
activity as a study was performed and a subsequent report submitted Hightshoe noted. Shaw said it is his
understanding that the current application for funding is intended to support the staff that will facilitate the
discussions with the newcomers group, which formed as a result of the previous project.
Extend the Dream Foundation - Coordinator
Greazel said he was impressed with the amount of volunteer labor the group had and the level of
expertise amongst their volunteers. He expects them to do good things with the money and to be able to
do what they say they will do.
Shaw said the applicant lost points with him in documenting their ability to meet the need. He said he is
concerned with the group's ability to complete the project. Anthony said this organization has done
excellent things in the past. Last year, some HCDC members saw the facility (F Street - Micro-Enterprise
Project) they were working on and were impressed with how fast the project was completed, the updated
facility and that it is an innovative solution to an identified problem.
Bears added that a lot of businesses in Uptown Bill's are owned by people with disabilities, which gives
their clientele great opportunities. Hayek said he has known many of the people involved and has no
Housing and Community Development Commission Minutes
March 9, 2006
Page 5
concerns about their abilities to stretch dollars and do great things. Mellecker said she did not fund the
project because of similar concerns that Shaw expressed.
Anthony saie! he hopes there will be more money in this category to distribute next year, though if CDBG
funds continue to go down and the city continues to take out a set amount (instead of a percentage of
funds) for Aid-to-Agencies, the category may not exist. Greazel agreed it is not a good situation.
Grant Wood PTO - Playground
Shaw asked if the new playground would take the place of the basketball court in the picture. Edwards
said no, it would sit to the side of it. Hayek said the large structure in the picture is the new gym and
resource center that was funded in part by CDBG dollars in 2005.
Shaw asked what is planned for the old playground, whether it would stay or be removed. Edwards said it.
would be staying. It only accommodates 30 kids in Kindergarten through 2"d grade. The new playground
would be for the older students. She added that some equipment was lost from the existing playground in
part due to age, and also because of the new building location. Shaw asked if the playground equipment
would be designed for older students. Edwards said it would accommodate 4 to 12-year-olds.
Anthony said he has a philosophical problem with funding school district projects with funds intended for
the low income population. In general, he stated that taxpayers are willing to support school district
projects. A bond was recently approved for the school district for 39 million dollars, which is the total
amount of CDBG funding the city has received during the past 31 years. However, taxpayers, typically,
are unwilling to pay for low-income projects and services. Funding intended for low-income populations
should be used for those populations. If a special bond referendum came through for this project, he
would support it, but does not wish to put CDBG funds into it. He added that he respects the school
district and has nothing against them; it is simply a matter of wise use of scarce resources.
Hayek said he would agree except that there is considerable overlap with the community and
neighborhood programs in this project. More than just the school uses the facilities., The neighborhood is
also involved in the evening after school hours as well as a pre-school program operated by a local non-
profit.
Shaw said the distinction with this project is that without this funding, the project will not happen.
Essentially money for a play space is supported by the income of the people who attend the school. This
is a PTO project rather than a school district one. One of the gaps in the management of play spaces is
that schools in more affluent areas have the ability to fund huge, expensive playgrounds. People in lower
income areas do not have the resources to support projects like this.
Anthony said he generally agreed, but his concern is that the gym and resource center was funded in part
by CDBG funds, which should not have happened. The funding for that should have come from the bond
referendum. So $325K of CDBG funding was given to a project that should have been shared by all
taxpayers.
Four Oaks - New Construction
Mellecker said there are two major projects in the category, so she fully funded every1hing else and chose
one major project for the remaining money. Four Oaks is a very good and unique project that is serving a
need not covered elsewhere. Bears asked how long they had been in that facility. Chval said since 1 995,
though the agency is 35 years old. They have also been renting space for a few years.
Richman asked what would happen to the project if it did not receive full funding, whether it would be
reconfigured or if funding would be found elsewhere. Chval said they would have to discuss other options.
The environment the children are currently in is not ideal. There are two residential programs at this site,
so the proposed space would provide additional classroom and recreation space, which is important to
the child residents who live there. They would like to move ahead and consolidate some things that would
likely bring savings in the long run through improved infrastructure. There would be discussion about
raising additional funds or scaling the project back, neither of which would be ideal.
Shaw asked Mellecker why she did not fully fund Four Oaks. Mellecker said she felt ReStore was more
private and did not serve lower income families as directly as Four Oaks. She said looking back, she
might change her recommendation to completely fund Four Oaks. She also thought if a large enough
Housing and Community Development Commission Minutes
March 9, 2006
Page 6
amount was awarded, the rest could be covered through fund raising or other means. Shaw said he fully
funded the project because it is very important to have a comfortable environment for the resident
children, given that most of them are homeless or near homeless.
Mellecker asked if Four Oaks had looked into other fund raising options, in case the project was not fully
funded. Chval said the amount requested is being matched with their funds and in-kind donations. Fund
raising is something they could investigate, but their funds are fully committed.
Hayek asked for ciarification about the JCO project that Four Oaks took over and its impact. Chval said
that the ACE program was not doing well financially, and because of organization restructuring, the
organization who had the contract believed they could not fulfill the contract. Due to this Johnson County
asked Four Oaks to take over the program since they already offered the service to the community and
had some experience. The service deals specifically with deiinquent youth, tracking and monitoring
youths who are in the program, and also involves the families in therapy and assists with making changes
to get to the real issues. Hayek asked if this is part of a youth's probation compliance. Chval said yes.
Hayek noted that attorneys in the juvenile court system say the need for that sort of service is spiking in
that segment of the population.
Greazel said his decision not to fund Four Oaks was purely pragmatic, allowing him to fully fund all of the
other projects. He added that he would vote for fully funding next year if the project does not go forward
this year, and that it is a very good and worthwhile project. He hopes the other projects could do what
they proposed with their funding.
Niblock said he would like more information about both of the construction projects, specifically a
breakdown of budget similar to what was submitted for the HOME projects. They are both very good
projects, he just would like more detail. Shaw asked if a process could be set up so similar information for
construction projects could be gathered. Hightshoe said all construction projects are encouraged to
submit construction budgets.
Chval said Four Oaks did submit some information about the budget. However, to submit solid numbers
they would have had to get bids. They did call and discuss with contractors and had a written bid on the
project, but that information mayor may not be what they go with if the project goes through. They did
consult with a reiiable contractor for the estimate, a contractor who frequently works on city/CDBG
projects.
Shaw asked if Niblock was looking for additionai documentation such as pro forma. Niblock said yes,
those would be helpful for giving a clearer idea about the project. Even having a breakdown of the square
footage of the inside areas would be helpful. Hightshoe stated a proforma is used for rental housing
projects, but additional budget information regarding construction costs could be sought.
Richman suggested discussing the Restore project next, since it is the other large project in this category.
Anthony agreed.
Iowa Valley Habitat - ReStore
Hightshoe said there was discussion whether the ReStore project meets a national objective required
under the CDBG program for the project to be eiigible to receive funding. Hightshoe stated staff
consulted with their HUD representatives to discuss what national objective this project could meet. The
response was that the project would meet the national objective of the creation of jobs for low-to-
moderate income persons. Though the proceeds of the project would be used for affordable
homeownership, it was not considered a direct benefit to low income persons. To qualify as an area
benefit the location must be in a primarily residential neighborhood, which it is not. It is located in a
commercial/industrial area. Hightshoe stated that if job creation is the way this project meets a national
objective, the maximum amount of funding that can be allocated to the project is $50K per FTE position
created.
Richman said this group appiied for funds last year. In one sense Habitat for Humanity does a great job,
and if the store runs as proposed it would generate an income stream for the group. However, there are
no construction or development budgets submitted, no estimated amount of proceeds going back into
housing, no business plan for the ReStore, so it is hard to see what it will generate on an annual basis
and how much will go back into the community as affordable housing.
Housing and Community Development Commission Minutes
March 9, 2006
Page 7
Patton said he could give the commission more information before they make their final decision in two
weeks. Shaw said he also would like more information from Four Oaks. Richman agreed, and asked also
for a construction budget.
Long asked for confirmation that Habitat would be moving their headquarters to the new location. Patton
said yes.
Shaw said the project lost points from him because there is no clear indication that this project will be
helping low income people gain self-sufficiency. Patton said they do not check income levels of people
who shop at their store, and donations come from anyone. However, they are in discussion with people
with the furniture project to move their facility to the same location, which would specifically help the low-
income population. Shaw said that is a significant positive point and caused him to fund the project.
Hightshoe stated there may be a problem with having the Furniture Project move to this facility or share
space with this project. There is a prohibition against spending CDBG funding for government expenses
(some exceptions) or for the acquisitionlrehabilitation of a government building. The Furniture Project is
funded by the city as a service for low-income residents. Hightshoe cautioned commissioners that if the
project changes substantially from the intent of the application originally submitted the commission needs
to determine if they will continue to consider a substantially modified application.
Mellecker agreed that it did not seem clear that this project would be meeting the objectives, while other
projects clearly did. That also influenced her funding recommendation. Greazel stated it was his
impression the facility would be a lot more than just the store, but also would bring in and partner with
other entities. That information was not in the application, however it probably should have been.
Hayek asked what elements are involved with economic development to support funding. Hightshoe said
job creation. Richman asked what the funding limit would be. Hightshoe said $50K per full time equivalent
(FTE). Richman asked if the number of jobs that would be created is known. Patton said probably 1.5 in
the first year, perhaps up to 2 the second year. Hightshoe said that would be $100K maximum under the
job creation criteria.
Hayek said the commission might be blurring some of the distinctions in the categories, but he sees this
project would perform a lot of different functions, with many benefits providing space for other programs.
There would also be the impact on the landfill and the provision of low-cost furniture for housing needs.
However, he does not know if that will fit with HUD.
Richman asked if economic development is within the purview of the HCDC. Anthony and Hightshoe said
yes. Anthony said the commission could do it if they wish, but can choose not to. Hightshoe said it is an
eligible activity, but it needs to meet a national objective. To meet a national objective, the project must
benefit low and moderate income persons (directly), aid in the prevention of slum and blight, or meet an
urgent need such as what is needed following a natural disaster. This project must provide a direct
benefit to low and moderate income persons. Hightshoe stated as of right now, the way the city would
document this requirement is through job creation for low-to-moderate income persons as 51 % of the
potential buyers of the building materials may not be low income. Buyers would be home owners,
landlords, etc.
Greazel suggested gathering more information from Habitat and doing investigation on whether the
project is eligible. Hightshoe said it can be funded; there is just a limit on how much money can be
allocated based on job creation. Shaw asked if there is a limit on the amount of funding Four Oaks could
receive. Hightshoe said no, Four Oaks can show a direct benefit to low-to-moderate income populations.
Richman asked if the ReStore project would go through without full funding from the commission. Patton
said they are working on funding alternatives. Hayek asked Patton and Chval to send more construction
information. Chval asked what information is needed. Niblock said any more specific information about
their construction budget and the project plans would be helpful.
MECCA - Facility Rehab
Bears asked how long the carpet had been in the facility. Berg said about 10 years. Shaw apologized for
looking at the wrong category at the last meeting when discussing self-sufficiency. Greazel asked if a
Housing and Community Development Commission Minutes
March 9, 2006
Page 8
quantity discount would be possible for the carpet projects, whether there is any consistency in the type of
carpet the agencies are looking for. Berg said yes, though he did not know others were looking for carpet.
Shaw said everyone is requesting carpet. Greazel said there could be significant savings if a large
enough quantity is purchased.
Berg said the different agencies have a strong record of working together to maximize savings, so it is a
possibility. Shaw asked how that would work. Hightshoe said that if each agency received funds, they
could work together to bid it as one project. Greazel said they would have to talk to the carpet people.
Hightshoe said the contractor would have to be willing to separately bill and is not sure if it would be
feasible as each entity might want different carpet; however it was something that could be investigated.
Anthony suggested requiring carpet squares for these projects, so the entire carpet does not need to be
replaced if one part is damaged. Greazel said most commerciai buildings do squares. He added that if the
agencies worked together and saved money, fewer funds would be needed. The commission would view
that favorably during future funding requests.
MCHC - Facility Rehab
Long said in addition to carpeting, the city is requiring them to add a railing next to a significant drop
adjacent to the sidewalk. Shaw said that safety concerns were weighted heavily when considering his
recommendation. The carpet requests did not as clearly refiect safety concerns as the issues in this
request when he reviewed the projects.
Greazel said carpet could be a safety concern, catching feet on it and tripping on it, particularly at DVIP.
Shaw agreed that he did consider that for DVIP with children running around. Mellecker noted that
MECCA had a children's room.
The Arc of JC - Facility Rehab
Hayek said this one received the second highest percentage in funding recommendation in this category,
just below DVIP. Shaw said that might be a bang for buck question, since funding this small portion would
allow them to finish their whole project. Bears noted that the agency would be celebrating their 50'h
anniversary next year.
DVIP - Facility Rehab
Hayek asked for confirmation that the building was purchased with CDBG funds. Long said yes, it was
new construction. Hayek said the quality of construction is poor, and the deterioration in the facility is
higher than expected even given the high traffic it sees. He asked what sort of standards HUD has for
construction.
Hightshoe said CDBG has no standards beyond those that must meet local building code requirements.
Anthony added that fire code needs to be met as well. Greazel said when he wants to fully fund a project;
he wants it done well instead of what just gets by. That means commercial quality components that will
iast. Often these facilities are not done at higher quality because there is no other choice. By putting a
little more money in at the front end, money will be saved in the long term because it will last longer.
Hayek said maybe it is better to fully fund a project to promote long term cost savings than to create gaps
in the short term due to poor quality materials and stated he was alarmed by the state of the facility. Shaw
said it also increases the likelihood that recipients will come back for funding later. Greazel said his theory
is that even if not everyone is funded this year, they should come back again when they have enough
money to do it right.
Mellecker asked if the standards of construction could be changed. Shaw asked for confirmation that the
commission could require higher standards. Hightshoe said it could, but the building code is very complex
and creating standards above what the city allows currently would be very complicated for community
development staff and applicants.
Habitat for Humanity - Land Acquisition
Shaw said there would be a high impact from this project, and he considered the volunteer support a
positive aspect. Hayek said he thought it was good that Habitat is getting into a Land Trust. He noted that
he is increasingly convinced that funding for single-family homes will be difficult to justify if multifamily
Housing and Community Development Commission Minutes
March g, 2006
Page 9
buildings or duplexes are an option. There is much more potentiai bang for the buck in those sorts of
structures, but that is a general concern and not directed at this particular project.
Greazel said one of the challenges is that newer subdivisions are not receptive to multifamily homes. That
means infiii in other areas, many of which do not permit duplexes, so there are not many existing lots
avaiiable. Hayek said there was progress in zoning because of the recent rewrite of the zoning code. He
added that with costs increasing every year, any opportunity to build multifamily homes should be taken
advantage of. Greazel agreed, but said the lots are very tightly controlled, and there is strong reluctance
to do anything to reduce the desirability of the rest of the lots.
Richman asked if the scattering of sites is an outgrowth of zoning issues, since there few lots for
multifamily buildings. Greazel said there are lots available, but they are in areas that the commission has
been told should not be funded. He said Burns was looking at some duplexes and the costs per unit were
outrageous compared to building south of Highway 6. There is a scarcity, which drives up the cost.
Anthony agreed there are very few places that duplexes can be built, even with the new zoning code, plus
some areas that do allow duplexes have restrictive covenants imposed by homeowner associations that
disallow multifamily housing. There are not very many opportunities.
Shaw asked why Niblock and Richman made their funding choices in this area. Richman asked for
confirmation that $484K is available that needs to be spent within the next two years. Hightshoe said yes,
the commission has two years to commit the funds after they are received. Richman noted there is a long-
term problem with affordable housing in the community, which the commission is forced to deal with on
short-term funds. There is a critical need for good long-term investments, and while the projects proposed
are good, they may not be the best for solving the long-term problem. So he is proposing to hold funds
back to make a larger pool available for next year, and in the meantime see if discussions can produce
other ideas that address the problems better.
Greazel said if he had remembered that not all funds needed to be allocated, he might have made
different recommendations. Hayek asked if Richman had a sense what a better project would be.
Richman said no. He continued to say that the skills in the development community and the desire of the
council could facilitate creation of ideas to address the long-term issues. Hayek asked if Richman was
concerned that the current projects do not provide a long-term benefit. Richman said he would like a
higher level of comfort that funding is being spent in the best way possible, given that the funds are
dwindling.
Hightshoe notified members that the L1HTC preservation project from the Housing Fellowship may only
be funded with CDBG funds. The units proposed in the application were funded with state HOME funds
and are still in the required period of affordability. Thus additional HOME funds can't be allocated to this
project during this period. Anthony asked for confirmation that the Preservation project should be
considered with the Public Facilities projects. Hightshoe said funding for the project needs to come from
CDBG, thus funds for this project would compete with the various public facility, public service, and/or
CDBG eligible housing projects.
Niblock asked for confirmation that there are only three projects to consider for HOME funds. Hightshoe
said yes. Mellecker said Richman's point about the future of the funding and long-term solutions is very
good, since there is so much in flux with the scattered site housing plan and Section 8 changes. For
example, her concern with the Harmony project is she does not know what the demand for three bedroom
rental units will be in the future.
Anthony said he had the least concerns in this category about the appropriate use of funds. He has some
concerns in the other categories because many of the projects are not really adding anything to the pool.
However, he would like to get as much land into affordable housing projects now as possible, since the
funds are diminishing.
Greazei asked Anthony his view about the Tenant Based Rent Assistance project. Anthony said that is
the one project he has some concerns about, as that is about restoring housing assistance that was
provided in past years rather than adding anything to the pool. Of the three projects, that is the only one
he has some concerns with, but it does fill a very high need. If there were more funds, he would give
more to Habitat to help lock in the land for affordable housing.
Housing and Community Development Commission Minutes
March 9, 2006
Page 10
Hayek asked for clarification about Richman's concerns. Richman said he would like to see a more
comprehensive approach to the problem of affordable housing at the city level, taking zoning and other
structural elements into account. The price of housing is going up, the funding is being reduced and he
would like to set aside some money until those issues can be addressed.
Shaw asked for confirmation that if no other solutions are suggested, if the funds would be given out next
year. Richman said yes, the commission would allocate the funds to the applications presented at that
time. He added that starting a dialogue about the issue would be the first step. Anthony agreed that there
is a need for broader discussion about this topic in the community, including ways to address the
problems more comprehensively. Affordable housing is almost all funded with external sources. There are
barriers in the zoning code and also in the restrictive covenants.
Richman said council and the community might decide the current situation is okay. However, a dialogue
should be started to determine if there is something that the city will pursue. It would be beneficial to set
some money aside for possible solutions that might come out of it. Hayek said he thinks that discussion
has begun in earnest in the community.
Niblock said he felt housing was the biggest need to be addressed during this funding round and there
were some great things in all the projects. He CQuld see where Habitat is going with their projects which is
why he ranked them highest and fully funded it. The others he funded according to how well he thought
they addressed housing issues. Housing is the most important thing, so he funded accordingly.
ICHA - Tenant Based Rent Assistance
Shaw said what this project does is subsidize families who cannot buy homes to help them get into
apartments. The Harmony project is building affordable housing, but the Tenant Based Rent Assistance
will subsidize families so they can rent existing properties at lower rates.
Anthony said Harmony would have to be affordable without Section 8 or rental subsidy. Shaw asked what
rent for the Harmony housing would likely be if they were built. Hightshoe said it would be governed by
L1HTC rules and Section 8 guidelines. Dennis said tax credit housing has a specific formula within their
program, as does Section 8. The owner of a tax credit unit cannot deny tenants occupancy because of
their eligibility for Section 8.
Shaw confirmed that tenants could move in at the affordable rental rate, and then also use a Section 8
voucher to further reduce their cost (the voucher would make up the difference between the rent charged
and the ability of the family to pay the rent based on income). Rackis said the iandlord sets the rent and
then the Section 8 voucher would determine how much the Housing Authority would subsidize based on
income. Typically people with a voucher will not pay more than thirty percent of their domestic gross
income for rent.
Mellecker said the Iowa City Housing Authority has tremendous need. Harmony is targeted to a niche, but
ICHA is broader and allows greater freedom on behalf of the tenants. Hayek said he was surprised.
everyone on the commission recommended funding for the Tenant Based Rental Assistance project as
there is a difference between bricks and mortar versus providing a funding stream. Funding this does not
provide any additional rental units. Anthony said it is money that produces no tangible result. Greazel said
that is not the viewpoint for people that need a place to live right now.
Anthony said many people had assistance before, but then funding went down in the community, which
resulted in loss of assistance. So in some sense it is restoring them to the quality of life they had before.
Greazel said in many cases, this is a viable alternative to homeownership. Hayek agreed, but noted the
two ways to fund is either a project that will produce units or one that will pay for vouchers. He noted that
everyone on the commission funded it, which was unexpected.
Mellecker said she also looked at numbers. Rental assistance can help a lot of people, whereas building
six units does not help as many. It seemed realistically the best place to put the money. Shaw asked how
many people would be supported with the rental assistance at the requested level of funding. Rackis said
it was calculated for 36 families for two years, using the HUD formula which includes a per unit cost of
$426. The actual number of families that would be helped depends on actual costs of the units, so the
funds might stretch or reduce.
Housing and Community Development Commission Minutes
March 9, 2006
Page 11
Rackls added the waiting list is not the only issue in regards to calculating need. Many families move here
without assistance. They often can meet rent for the first couple months, but then cannot meet it any
longer and end up being evicted. So the exact need cannot be calculated, because there is no prior
information about those situations. He added only 44 percent of people in the community are
homeowners, while the rest are living in rentals.
Long asked if there is a list of available accessible units for elderly or disabled tenants. Rackis said every
rental unit is entered into software that determines the number of units that are definitely accessible or
adaptable for people with disabilities. In some cases, an adaptable unit does not have the necessary
requirements for code such as a grab bar in the bathtub, but could have things changed or added easily.
Rackis said he would supply that information to the commission.
Harmony Development, LLC - Rental Units
Long said the sites for the units are not identified, so no pictures are available.
Hayek asked who would receive the architect fee for the project. Long said he is not sure. Greazel said
he was concerned about costs in the proposal, such as the appraisal and architect fees, which also
seemed excessive.
Hightshoe confirmed that the per unit cost was $245,693.00. Shaw asked if that was for six duplexes.
Hightshoe said it is for six single family units. Applicant noted that lots would be easier to find for single
family units. Mellecker said there are a lot of questions about this project, and asked whether it would be
easy to revamp in the future.
Hayek asked for feedback from staff on the per unit cost. Long said it is a little higher than usual. Hayek
asked if it is still higher than typical without the increased land cost. Long said it seems to be. He noted
that with tax credit projects, some of the costs have a cap.
Shaw asked if tax credit projects are increasing recently, and suggested the commission might not
understand the requirements very well because of unfamiliarity. Greazel said there is no requirement for
certain things to be paid, just that it is allowable to pay up to a set amount for certain services. Just
because it is allowed elsewhere does not impact his vote for a local project. His decision is infiuenced by
cost per unit, and $1 OOK with Habitat versus $240K for one of these is a big difference.
Shaw asked if this increased cost would give a renting tenant a nicer place to live at the same rental rate.
Greazel said income level determines rent, and his issue with this project is that both single-family owner
and rental properties are needed. How those needs are balanced is determined by the commission's
priorities. He added that he agrees with Richman's suggestion to take a two-year look at housing and
priorities.
Long said there is a 50-year affordability period for these units. Niblock asked how long the usual
affordability period is. Long said it depends, though HOME funds require at least 20 years for new
construction. Richman asked what the period is for the tax credit. Hightshoe said additional points are
received for longer affordability periods.
Hayek asked what the reserves line item is. Long said investors require a reserve for maintenance.
Hightshoe said the amount should be significant for a 50-year period of affordability as if the unit receives
HOME funds, additional HOME funds cannot be put into the unit during its affordability period. Richman
said he would assume there would be some positive cash flow from the unit that would allow additional
funds be put into maintenance or a reserve. He added he is not disputing the need for the reserve.
Hightshoe said the amount is higher because of the length of time needed to maintain the unit during its
period of affordability.
Hayek asked for confirmation that the reserve is for long-term maintenance and rehab. Long said yes.
Anthony said tax credit projects have slightly higher quality standards than other projects.
Long said that there will be a representative from the Iowa Equity Fund at the April HCDC meeting to
discuss the tax credit process. Anthony said that would be a good idea.
Housing and Community Development Commission Minutes
March 9, 2006
Page 12
Anthony said he funded the project because he wants to encourage non-governmental agencies to be
involved in providing affordable housing. Burns and Burns have been providing affordable housing in the
community for a long time, and many times is the only private developer that has been involved in this
area. While $245k per unit is high, they are getting one million dollars of additional funding for the project,
which would be going into the tax rolls, giving property tax benefits for several years.
Greazel asked whether the units are under Section 42. Dennis said all tax credit units are under Section
42. Greazel said the tax credit then is not dollar for dollar. It is closer to 25 cents per dollar, so the
property tax benefit is minimal. Anthony said it still brings in some tax benefit and also more investment
from outside the community. It also supports the only developer who has been involved in providing
affordable housing.
Richman said he funded at a level that he hoped would make the project viable, even if it cannot be fully
done as proposed. They asked for $300K to build six units, so hopefully $150K will allow them to make
six units and still make sense for the developer to go ahead.
Housing Fellowship - Preservation
Mellecker asked when the Housing Fellowship would find out whether the city will be supplying other
funds. Anthony said not before the allocation meeting. Richman confirmed that funding for this project
would come from some combination of CDSG and other appropriations from the city. It could be a
combination. Long said yes, it just needs a local commitment. Shaw asked for confirmation that this
project would have to compete with the funds in the Public Facilities/Services category. Hightshoe said
yes. Under the CDBG program, there is no requirement that states so much has to be allocated for public
services, public facilities, or CDBG eligible housing activities. However, there is a requirement that the
city can't allocate more than 15% of its CDBG entitlement on public service activities. Historically the
commission has decided to allocate as much as allowed for public service activities.
Richman said he has a lot of questions. There is a letter now, which has some clarification and has
helped satisfy one of his concerns. He said his major concern before was that it looked like more equity
was being taken out of the project, but it has been shown where the money is being put back. He is not at
zero funding for the project, but would like to ask some additional questions.
Dennis said their long-term plan would be to buy the units back and become the owners. Richman asked
what the term of affordability is for tax credit units. Dennis said 15 years minimum.
Richman said he would like to make sure the commission is comfortable with the affordability period, and
he is concerned with the recurring cost to buy back the units. He said he is also concerned with the
relatively high developer fee. Considering the level of risk in this acquisition is minimal, 20-25 percent of
the total non-acquisition costs seems high.
Greazel asked what happens to the units if this is not funded. Dennis said they would try to find funding to
rehab them. Otherwise there is a chance they would be sold. Greazel asked what the' Fellowship would
do with the money if they were sold. Dennis said they would have to pay back the private debt, recapture
the HOME funds and reinvest them.
Greazel asked why they would be sold, since there is no net gain. Dennis said the units are at a level
where it would be difficult to maintain housing quality standards. Greazel asked how long the Fellowship
has owned the units and how they were purchased. Dennis said all of the units have been owned at least
ten years. They were purchased originally with CDBG and HOME funds.
Greazel asked if a reserve was required for repair or improvements. Dennis said there was no
requirement for a reserve. They did rehab the units, but it has been difficult to maintain them because
rents are controlled. These particular units are ones that have been owned for more than ten years that
the Fellowship feels are good candidates for extensive rehab, neighborhood improvement and would be
attractive to investors.
Greazel asked about the project development fee. Dennis said they generally take 15 percent of the
project cost, since they have to do all the rehab activities with hiring contractors and putting out bids, etc.
Housing and Community Development Commission Minutes
March 9, 2006
Page 13
Anthony asked for opinions on whether the project should be funded jointly with CDBG funds or some
other way through city. Niblock said it seems like an unusual request. He asked if something similar has
come up. Long said the peninsula project. Niblock asked if there was a positive response. Long said yes.
Anthony said no prediction could be made in this case.
Greazel said he is concerned about the request for money to fix up a home and sell it, even if it keeps it
affordable. He asked if a similar request has ever come before the commission. Hightshoe said to her
knowledge a low income housing tax credit preservation project has never come before the commission
before. Richman said he views it as a rehab project, and transferring ownership to a new entity is not a
concern. He is interested in how much the city would be willing to contribute.
Hayek asked for clarification whether the special application to the city is being done because of
something with this particular project or is it simply to seek out additional funding. Long said it does not
qualify for HOME funds, however it needs local commitment for funding. The Housing Fellowship is willing
to pay an interest rate slightly over what it costs to purchase the bond and requests the difference be
placed back in the CDBG/HOME pool of funds. They are trying to match what city council says is the
investment policy for a for-profit entity. The additional money would then go back to the commission,
because HCDC funding is being reduced.
Dennis said Steve Atkins was receptive to the proposai and they will hopefully have an answer very soon.
However, they decided also to pursue funding through HCDC in the meantime. Richman said the return
would not be a substantial amount of money. Dennis agreed, but noted it would be a start.
Richman asked if the units could be maintained at the proposed rent for the period of affordability. Dennis
said yes, it is required. Richman confirmed that the combination of reserves up front along with ongoing
profit will maintain the units. He asked if there would be additional money there to maintain other projects.
Dennis said yes.
Anthony said tax credit programs are the largest source of funds for affordable housing. Iowa City had not
been attracting those funds until recently, for a variety of reasons. Richman said an option for future
projects for the city would be to do a combination of four percent credits and tax-exempt bond financing.
Anthony said this project is a bit more complicated than it seems and needs more consideration. Richman
said the question for the commission is whether CDBG funds would be allocated, and if so, how much.
Shaw added that decision needs to be made without consideration of whether the city will also provide
funds.
Hightshoe announced that the Qualified Action Plan for L1HTC projects does contain standards for
construction that we could consider for future construction projects. If interest, will discuss at a
subsequent HCDC meeting.
Hightshoe said the commission members should send final ranking sheets and recommendations by 9:00
a.m., March 15. Member can email, fax, or call in their proposed changes. Long said he would send a
reminder to the commission members.
Adiournment
There being no further business to come before the committee, Shaw moved to adjourn. Hayek seconded
and the meeting was adjourned at 9:45 p.m.
s:/pcdlminutesIHCDC/2006/03-09-06.doc
I
I
I
I
I
,
I Housing & Community Development Commission
I
I
I Attendance Record
i
I 2006
i
I
I
I
,
Term
Name Expires 01119 02/16 03/9
Brian Richman 09101/07 X X X
Jerry Anthony 09101/08 X X X
i Kelly Mellecker 09101/08 OlE X X
Lori Bears 09101/07 X OlE X
Matthew Havek 09101/07 OlE X X
Michael Shaw 09101/06 X X X
Thomas Niblock 09101/08 X X X
William Greazel 09101/06 OlE X X
Yolanda Spears 09101/06 -- -- X -- --
Key:
I X = Present
0 = Absent
OlE = Absent/Excused
NM = No Meeting
-- -- = Not a Member