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HomeMy WebLinkAbout2012-07-10 TranscriptionPage 1 ITEM 3. COMMUNITY COMMENT (ITEMS NOT ON THE AGENDA) Hayek: This is the opportunity at each City Council meeting, uh, for members of the public to address us on items that are not on the agenda. If there's something you'd like to bring to our attention, uh, we invite you to sign in, uh, and come forward to the podium. Also give us your name verbally, and we ask that you keep your comments to five minutes or less! Hi! Mitchell: Hi, I'm Jarrett Mitchell. Uh, I'm here with a group tonight, uh, the ICLUC, uh, Iowa Citians for the Legalization of Urban Chickens. Uh, and I just want to speak briefly. We have been gathering signatures throughout the summer on this issue. Uh, some of you know that it's been brought up in the past. Uh, I've talked about it over the course of the campaign in the fall. Those of you that were with me probably remember the banging of the drum. Uh, and so I guess I'm just here tonight to kind of talk about, uh, real quickly this issue and just sort of...I've been asked by some people to talk about why it's important. Why is this issue important, why should the Council even consider it, uh, there's a lot of things, clearly, that are important to City Council. What's this issue mean? Uh, and I guess I would frame it in terms of looking at, uh, why, uh, why is it important? I would say that it's important in terms of, uh, the same reason that giving $30,000 to a cupcake store is important, and that is that Iowa City itself is a place that the number of people in the town don't totally show the whole story about what we're about. Uh, it seems that with, um, the grant that was given out for the cupcakes, and I think that this is a good logic, is that in Iowa City we have ... there was New York, Chicago, and Iowa City's the next logical choice. Uh, both of those cities — New York and Chicago — both urban chickens are legal. I think it's important to understand that Iowa City is a great town and a great city that we, uh, we're trying to mimic some of the great things happening in other cities, and so I think that this issue, while it may not provide the same economic development, might not provide the same money, uh, to the City that a new business and a, uh, storefront downtown that is currently, uh, available would provide to the City. It provides a, uh, sort of social fabric. Uh, it provides, uh ... uh, a foundation in the social fabric that can't be quantified by money. Uh, I would encourage, uh, you all to consider this issue for somebody to bring it up .... a person with courage to bring this issue up, to look at it, for the City to look at it, uh, Cedar Rapids has done this. We can look at a city that was ravaged by the floods, and that they have taken the time, uh, during this time. There were all these other things going on, but they saw that it fit, that they would also move in this way towards, uh, the development of sustainability, uh, in terms of property rights, all of these things that are important to us as Iowa Citians, we can look to Cedar Rapids and we can see what has happened there and go through the corridor and see what's happened to the north. Our neighbors to the north, and see what we can do down here. Lastly I'd just like to say that, uh, there's a group of us here. We've all got the pins on; we've got the buttons on. Uh, it's been a great group of people, uh, working on this issue, getting signatures, uh, talking to members of the community, and developing sort of a ... a rationale as to why it's important, uh, it's a great group of This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 2 people and if you look at it, who is it? It's small business owners. It's people that run non - profits. It's Guggenheim Fellowship winners. It's the people of this community. It's young families that have moved here from other places. It's the people that we want to attract to this community, and I think that's what we need to understand, is that while it might not provide the economic thing that a lot of the other issues that we're bringing up here, and Council do, what it provides is a... it shows the rest of the country... it shows people that want to move here, the people that we want here, it shows that Iowa City cares about sustainability, and it shows that we care about personal freedom and about property rights. This issue, uh, students aren't going to have chickens. It'll already ... it would totally, all the legislation would fall out if that... students aren't going to be having that and the students that would would be the ones that are devoted with their landlords, that have a very special relationship with ... with their landlords, so I would encourage you guys ... think in terms of property ownership. Think in terms of sustainability. And think in terms of the intangible, social capital that we'll gain by passing an issue like this, and I thank you guys so much for the hard work and everything. It is great to see everybody up here, and uh, thank you for having me here tonight. Hayek: It's good to see you too, Jarrett. Thanks! Imborek: I'm going to go next before you guys get tired of hearing this, so ... uh, thank you for allowing me to speak tonight. My name's Katie Imborek. Um, I'm a proud citizen of Iowa City for the last ten years and after growing up in northwest Indiana, I moved to Iowa City for medical school. I fell in love with the place, decided it was a wonderful place to raise a family, and never left. Um, and one of the things that I found about Iowa City is that it's refreshingly progressive, with things like health promotion, uh, it was one of the first cities in... in Iowa to ban smoking. We've done a lot in terms of making bicycling more friendly. Um, we've done tons in terms of local food movement and social justice issues. And I believe it's time again for Iowa City to stay true to its tradition of being forward thinking by discussing the feasibility of keeping urban chickens. In this situation we wouldn't be leading the pack, however, uh, and that is (mumbled) with regard to other Iowa towns or ... or even other out of state communities. Instead we'd be following a precedent, and importantly it is a precedent of success with little reported complications, from places like Cedar Rapids, Des Moines, Chicago, and Ann Arbor. So my wife and I have two little boys, ages five and two, and we also have a school -age niece and two nephews who live in... in Iowa City, and we believe that the opportunity to raise backyard hens would be an amazing educational experience for children. Chicken keeping is a great lesson in responsibility, sustainability, and life cycles. Having chickens is a natural extension for gardeners. They provide weed control, pest control, they enrich the soil with... with nitrogen from their droppings, and of course for most ... for most folks the main reason to keep chickens is cause you want the eggs, which are proven to be healthier than store - bought varieties. So I really love the fact that in Iowa City when I go shopping at the grocery store I can actually see how many miles from the market my food came and what would be more local than walking This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 3 out your back door to get chickens and bringing them in to your kitchen table. This is definitely an opportunity that I want my boys to be able to experience, while continuing to live in this city, in this community that we love. And I'm clearly not the only Iowa Citian who feels this way. Um, ICLUC has recently delivered you a list of 985 signatures from other community members who are in support of keeping chickens in Iowa City. They've also provided you with a very concise FAQ sheet, uh, which outlines some of the commonly perceived barriers to chicken keeping, and again, we're really fortunate that our neighbor, Cedar Rapids, is approaching their second anniversary of passing a chicken keeping ordinance, and this is really a great example of a well composed set of guidelines that working extremely well in that community, and that many of the policies could be discussed also in terms of an ordinance in Iowa City. And one of the real main stays of that ordinance is the requirement for potential chicken owners to actually take a class in urban chicken keeping to even be made eligible to have a permit for up to six hens. So this definitely deters the impulsive chicken buyer, um, and it would take both forethought and money to actually be able to raise chickens. And this would potentially cover any expense to the City and to the Animal Shelter, and also greatly decrease the chance for abandoned chickens in Iowa City. There have been other university towns, like Ames, Kalamazoo, and Madison who have successfully implemented chicken keeping policies without problems such as abandoned chickens. So in closing, I believe that backyard chickens in Iowa City is feasible. This attention ... or this issue was brought to the attention of the Council in 2009, and it never made it to formal discussion. So former Mayor Bailey was actually on the NPR program On Point and she was quoted as saying that she wanted to wait at least one year to give enough time for discussion and evaluation of the implementation of this policy. So here we are three years later. We have great examples of the successful implementation of chicken keeping ordinances in towns as close as Hills and Cedar Rapids. So it's time for the Council to address this issue and work toward a policy for allowing keeping urban chickens in Iowa City. Thank you very much for your time and for all of your hard work. Hayek: Thank you for your comments. Cook: Good evening, my name is Melanie Cook. And uh, I've been a member of the community for ... oh, 25, 30 years. Um ... used to be a resident of Iowa City a long time ago. Been a member of North Liberty community. Just moved back into Iowa City. Kind of wanted to set up a homestead in Manville Heights. Got a nice yard. And uh, there's nothing back there, and I wanted to raise some chickens! They make great pets. I have friends that have chickens in Amana, and uh ... they make great pets. They're wonderful educational experience. I'll be on board with educating, um, if you guys implemented an education program, we'd be happy to do that. Sorry, I'm a little nervous. Um... Hayek: You're doing fine. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 4 Cook: ...I've been involved with the Girl Scouts (laughter) for oh, seven or eight years now, uh, leader, uh, all the way up the, you know, director type ladder, and um, very involved in the Girl Scouts, and I have been an advocate, you know, getting the chicken thing going with them too so ... um, I'd just like to say that I'm, you know, all for this and if I can do anything to help it, you know, move forward, I'd be happy to. Thank you very much. Hayek: Thank you for your comments. LaBadie: Hi, my name is K. T. LaBadie and I've spoken to you guys before. Um, I've been a resident here for two years and something that people may use to describe me is that I'm a person whose very much into sustainability, green living. I like to eat healthy. I like to live healthy. Um, I'm also very much into environmental education and, you know, for me ... urban chickens is not just something that I've done in the past before moving to Iowa City. It's something that I really can be an educational tool for children to get connected to their food system and I know that it is possible to legalize chickens, to minimize a lot of the problems that people have as potential concerns. Um, I have a professional background in urban planning and public health, and you know, a lot of the concerns that people have, I know that they can be overcome, especially through the formation, you know, of a very high - quality ordinance that addresses a lot of those issues. Um, so you know not only personally for me to be able to keep chickens here would be great. I've been two years without chickens, since moving here, and you know, store - bought eggs are just really not that great once you've had, you know, fresh eggs, um ... and ... you know, I want to see other people in this community to have the ability to experience what I've had in my life by being able to go and connect with animals in my backyard. To have this great food production cycle of growing vegetables, having eggs, you know, making your nice breakfast omelet that came from your backyard in the summer. You know, it's really something that can't be beat, and I think it's a very great, um, you know, experience that all children should have and you know everyone in the Iowa City community. If they choose to do so. Um ... so you know I just urge you guys to consider this issue and the positive impacts that it could have on our community. Thank you. Hayek: Thank you. Meyer: Hi, my name's Fred Meyer. I'm a master gardener and I've lived here in Iowa City for ten years, and I'd like to, uh, keep chickens in my own backyard for two reasons. First reason, and many folks don't know this, is chickens are fantastic at helping in gardens. I love raising food, and there is nothing ... no other critter that's better at deseeding and deweeding and fertilizing a new garden bed than three hens. And they're also fantastic, as you know, at laying eggs and also providing control for insects, like Japanese beetles that we're all having troubles with now. They eat Japanese beetles and their grubs like they're candy, and so they can turn a potential problem into fertile soil. The second reason is I think urban chickens, as other folks have said, contribute to the resiliency of our This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 5 community. When I take those eggs, and I'm going to have more eggs than I know what to do with, and give them to my neighbors and friends, that is making them more dependent on me rather than folks that they don't know from far away. And that is what is the essence of a ... of a resilient community. And I think ... a progressive community is a resilient community and many folks think that perhaps if Iowa City has a few dozen people who are raising chickens it'll make us less progressive, more farm -like. But I don't think that's the case! I really think it's a sign of progressiveness when a city can start providing for itself, so that its citizens can provide for themselves, rather than relying on the City to provide services and things like that for its citizens. So I urge you to support the legalization of chickens. Thanks! Hayek: Thank you for your comments! Okay, would anyone else like to weigh in, uh, during community comment portion? Okay. Seeing none ... I appreciate the comments that were provided tonight and ... and your appearance here in general. We'll move on to Item 4, Planning and Zoning Matters. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 6 ITEM 4e CONDITIONALLY REZONING APPROXIMATELY 4.29 ACRES OF LAND LOCATED ON WALDEN ROAD, WEST OF MORMON TREK BOULEVARD FROM MEDIUM DENSITY SINGLE FAMILY RESIDENTIAL (RS -8) ZONE TO HIGH DENSITY SINGLE FAMILY RESIDENTIAL (RS -12) ZONE. (REZ09- 00003) [Discussion only at formal meeting] 1. PUBLIC HEARING Hayek: This is a public hearing. The public hearing is open. (bangs gavel) Any ex parte communications from the last time we took this up? (several responding) Okay. Miklo: Bob Miklo from the Planning and Community Development department. Just like to point out that the Conditional Zoning Agreement has been signed by the applicant. Uh, the agreement provides for City engineer review and approval of the storm water management system; uh, that review and approval will occur at the time of subdivision, um, which will be after the zoning. Um, Ron Knoche the City Engineer is here and available if you have any questions about, uh, the storm water management, uh, proposal at this point. Throgmorton: I ... I do have a question. Hayek: Yeah. Throgmorton: So ... should... Hayek: That'd be fine. Throgmorton: Yeah, so, um ... my question is, uh, consistent with one asked by some of the nearby residents, uh, the uh ... the Conditional Rezoning Agreement states I think the storm water management system will be designed in the manner that will not exacerbate, uh, storm water drainage issues on adjacent properties. So the question is, um, basically by what means will anybody be able to verify that the proposed drainage, swale system will not exacerbate neighbors' drainage problems? Knoche: Part of the design'll be looking at what the existing conditions are, and so they'll ... do some modeling to determine how much water is existing, and which way the drainage flows today, and then we'll look at that compared to what's going to come off of the lot, um, in the post - construction... situation. Throgmorton: So ... so let's say that, at some future moment there's a ... a drainage related flooding problem on nearby properties. Knoche: Uh -huh. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 7 Throgmorton: How will one know that it's not exacerbated by the ... this proposed development? Knoche: You know we'll ... what we'll do is be ... we'll be able to determine from the design, um, and kind of what the pre ... the pre ... the pre- existing conditions that were there, and the way the runoff was in prior to construction and determine if it was ... if the issues that are there today are based on water coming off of lot 79. Dobyns: My sense, Jim, and there are some constraints to the property, but you know, it's nature. You can't ... I didn't expect anybody to sit there and say with absolute certainty that there won't be exacerbation, but there's also not only the City staff has looked at it, uh, with those constraints, but I think there's been good faith discussion between the developer and concerned property owners as well, and (mumbled) see how it goes. Hayek: Why don't we ... why don't we try to keep, uh, the conversation directed at questions for staff and I also want to provide an opportunity for the public to weigh in and then we'll get into the discussion if...assuming there's a motion. Dobyns: Sorry! Hayek: That ... that's fine. I just want to try to keep it delineated. Champion: I may not have my memory, but wasn't there some possibility of helping those neighbors who have flooding problems now with how this is going to be constructed? Am I... am I remembering that wrong? Knoche: The ... the way that the original ... the way that it was proposed, um, with ... the plan that was before us, uh, was that there would be an overland flow route, that would be graded, to keep the water from Lot 79 in the MidAmerican easement area, and out to a ... a storm sewer that's along, um, Rohret Road. Um, there's been some discussions with MidAmerican since that point, and it looks like, uh, part of the requirement from MidAmerican's standpoint will be to pipe, um, all the storm water that comes out of the detention basin to the storm water system along Rohret Road. So, the only time the overland flow route would be used is if we had a storm event that's greater than a 100 -year storm. Hayek: Are there other questions for staff? Okay. Thanks, Ron. Knoche: Yep! Hayek: Would anyone else, uh, from the audience like to weigh in during the public hearing here? Denaldo: Hi, my name's Kevin Denaldo. I live at 54 Coll Court, and I spoke at the public meeting that's now been continued a few weeks ago. So I live at the property This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 8 that's immediately west, kind of at the ... we're at the end of the Coll Court cul -de- sac. My property, um, backs directly into the, uh, redevelopment area. Uh, and I do have a few questions about the ... the, uh, conditions of the rezoning. Uh, one of them was, uh, I appreciate the questions about how to measure whether or not it's been exacerbated. Obviously it's either going to stay the same, it's going to get better, it's going to get worse, and how do you ... how do you know. I guess a follow -up question I have to that is ... who bears the cost of this measurement? Is that something that the City bears the cost of measuring the initial, uh, process, and then down the road if we think it has been exacerbated, or is that a cost that the homeowners potentially are going to bear. So I ... absent specificity, I'm just ... I'm concerned that there might be a cost that are born by the homeowners to go through this process down the road. Uh, and the other, um, item, and I raised this last time and after thinking about it more I ... I still have concerns about this. The wording in the conditions talk about the design and the construction at the initial point, and ... obviously over time, uh ... with an open swale, there's got to be maintenance, as well. Uh, things can be designed perfectly. When we buy a new car, it's designed perfectly, we think — should be — but over time, if you don't maintain it, it's not going to run properly and eventually it won't run at all. And absent any wording about the obligation for maintenance, uh, if you look at where that's going to be and where the developed property is going to be, uh, the new construction, they're not going to probably even know this exists. And they're not going to be concerned about the water because it's going to be down from their property, and so my concern is that absent any wording or specificity about who's obligated to maintain this, again, is that an obligation that's going to be borne by the homeowners because we're the ones that are closest to where the potential affect would be. So I'd like clarification on who's obligated for the maintenance and, uh, what I would like to see is that there's specifics written in the condition of the rezoning so that it's clear who bears the cost of maintenance, and I guess the other question I have is, if whatever process is used to determine if it's been exacerbated, if it's determined that the drainage has been exacerbated on my and my neighbors' properties, uh, the recourse process, if there is any litigation... that's involved with that, is that something the City bears, because the City has approved the conditional rezoning? Is that a cost that's going to be borne by the homeowners in this process and I don't ... I don't know the process. I don't see wording so ... one of my overall concerns is that down the road, are there some hidden costs that are going to be borne by the homeowners, uh, related to these issues. So ... thank you for my, uh, listen to my questions. Hayek: And ... in reaction to that, I mean, several questions have been posed, which staff may have the capacity to answer during this public hearing. May ... may need to go back and ... and verify and come back to us potentially at the second or third reading. I don't know how we want to handle that. Um... Champion: Well I think those are valid questions. Hayek: Yeah... This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 9 Champion: And I'd like the answers to them. Hayek: Okay. Mims: I would agree! Miklo: In terms of the ... the cost of the design, that will be assumed by Southgate Development when they do their ... their platting, the design of the, uh, of the storm water facilities. In terms of clarification of maintenance, when ... there will be, uh, legal papers with the final plat that will specify the obligations of the homeowner's association for lot 79, the actual development, that will be responsible for, uh, the maintenance of that. In terms of the legal question I guess I would defer to Eleanor for that. Dilkes: Well, the situation'll be examined at the time the ... the plans are approved. Um ... and then the maintenance obligation will be put on the ... the homeowners' association as Bob said, so the responsible party in the future, um, will be the homeowners' association. Now in terms of litigation costs by either of those parties, those are private costs that ... that we would not be involved in. Hayek: Okay. All right, would anyone, uh, else like to weigh in during this public hearing? Okay, seeing no interest I will close the public hearing at this time. (bangs gavel) 2. CONSIDER AN ORDINANCE (FIRST CONSIDERATION) Karr: Motion to accept correspondence. Throgmorton: So moved. Dickens: Second. Hayek: Moved, uh, moved by Throgmorton, seconded by Dickens. Discussion? All those in favor say aye. Opposed say nay. Motion carries 7 -0. Take up first consideration at this time. Mims: Move first consideration. Dobyns: Second. Hayek: Moved by Mims, seconded by Dobyns. Discussion? Mims: I would just say, I ... I had the same concerns in terms of...you know, how ... how do you put a real handle on what the issues are now in terms of quantifying it, and the potential for disagreement down the road, whether the situation has been This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 10 exacerbated. Um, certainly you know very much want to see this go forward, but also want to make sure that we've got adequate protection in place for those homeowners, you know, in the area that are affected by the runoff from there. So I just ... I don't know exactly how you do it, but I just point that out to staff and developer that I think that's ... has to be real high priority to make sure that there's, you know, some protection there for those people. Throgmorton: I ... I wonder if it would be possible, consistent with what you're saying, Susan, I wonder if it would be possible to a ... attached a condition to the rezoning, requiring per ... periodic monitoring for some specified period of time, like, uh... um ... checking that the, um, the success of the design system, uh, and doing that at... for up to maybe five years or something like that after the, um, after the rezoning's approved. Uh, and ... and then ... and requiring the developer, not the homeowners' association, to, um, correct any flaws in the system. So I'm just putting it out there as a possibility. I don't know if it's a good idea or not. Hayek: Would ... would that be part of the CZA or would that come at the plat stage? Dilkes: The maintenance obligations will come at the plat stage. We ... we ... typically impose, um ... well, we have different ways of doing it. Um, whether the City takes an easement and ... and takes on the obligation for easement, but in this situation, it will be an obligation that's imposed on the homeowners' association at the time of the subdivision. And that'll be a ... a legal document that's recorded with the subdivision papers. Throgmorton: ... it would be, uh, a condition of rezoning, as well. That's a ... that's an alternative legal route that could be followed initially, is ... is it not? Dilkes: Uh, it could ... for the same way that we're requiring that ... there be approval of the, um, the storm water system by the City Engineer, conceivably yes you could include such (both talking) Dobyns: ...certainly been guilty of maybe prematurely discussing some of the specifics of the drainage, um, at this stage of the zoning, um, I really think we ought to wait till, you know, after the zoning change, if that's approved, and just look at the actual plats. I think it's more appropriate at that time to actually ask about the specifics, um, of what's going to be built there, and the swales and what actually might be downstream water issues. Throgmorton: But we ... as a council we wouldn't be in any position to modify the preliminary plat in any significant way. On ... on what basis would we do that? Cause we ...we'd defer to our Public Works' staff. Dobyns: Well we can reject it! This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 11 Dilkes: Well, the way the Conditional Zoning Agreement reads now, actually there was a change made in it that went from compliance with City standards to, um, a ... built to the satisfaction of the City Engineer. So the minimum is going to be City standards and if the City Engineer believes that there's, my reading of it, if the City Engineer believes that there are additional requirements necessary to prevent exacerbation of an existing condition, the City Engineer can impose those requirements. Hayek: Do you view that as an added protection over... Dilkes: I actually think that change in language is ... is an added protection. It was requested by the developer, but I ... I think it is ... is a good change for us. Hayek: I guess where I come down on this is, um, yes there are question marks. Um, and ... and concerns from the adjacent neighbors that I ... that I, uh, I ... I certainly take to heart. But, you know, at the end of the analysis I have to, uh, place my trust in the ability of City staff to vet these proposals at the platting stage, um ... based on ... on our local standards and best practices, and uh, as they do with every single project that comes across their desk, and uh, not approve or recommend approval of...of a plat that doesn't meet those threshold of concerns. And ... and I think that's where I come down on this. There are concerns, and that's why we have a process, and that's why we have experts who ... who review and approve or ... or recommend, uh, not approving particular projects. Payne: And right now I think this seems like the best bet in doing something about the drainage problem. I mean, this seems like a way to make sure that something gets done about it and that we have... professional trained people to look at the outcome of...of the design. And right now it's just running... Throgmorton: ... status quo's no good right now. Payne: Right! Exactly! Dickens: Apparently it's a problem (mumbled) so ... it's a way to help solve it, and we can see once the plans come, we can always make that determination at that time (mumbled) continue on with it. Hayek: Okay, further discussion on first consideration? Roll call, please. First consideration passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 12 ITEM 4f CONSIDER AN ORDINANCE VACATING AIR RIGHTS WITHIN THE PUBLIC RIGHT -OF -WAY LOCATED ADJACENT TO THE PROPERTY AT 114 SOUTH DUBUQUE STREET, IOWA CITY, IOWA. (VAC12- 00003) (SECOND CONSIDERATION) Champion: Move second consideration. Mims: Second. Hayek: Moved by Champion, seconded by Mims. Discussion? Would anyone from the public like to ... yeah! Appears to be the case. So I'll ... let's, uh, entertain, uh, input from the public on the ... this air rights. Again, we're not talking about, uh, the TIF issues on the agenda this evening, but instead the air rights. Dieterle: I'm Caroline Dieterle, uh, 727 Walnut. Um, in the publicity that has surrounded this, uh, project, I have never seen a drawing or a photograph or a sketch or any ...any kind of schematic, um, showing exactly what will happen when the air rights are sold to ... allow this cantilever balcony that is supposed to be part of the project, and ... there's so much of the, um, ped mall that is nice the way it is now — trees, per ... a pergola, things like that. I really, uh, would be distressed to find that this balcony was going to shadow all of that. Um, sunlight is kind of a nice thing to have in the ped mall (laughter) and I don't want to see any less of it. Um, I understand the Council's desire to have a higher -rise building in this space and to reap tax money off it and so forth, but ... I think that things are getting a bit, uh, out of whack when you're actually selling air rights and beginning to shadow the main drag of the ped mall. So, I'm asking whether you in fact have anything that you can show us about that, and any listing of the amenities that are now on the ped mall that will be, uh, overshadowed by the balcony. Um, an effort has gone in to putting trees down there, which are a very nice thing to have and, uh, planters and those things need sun to prosper and to ... to be healthy, and if the balcony is going to cut the sun off from those things, you should be aware of the negative effect that that will have, not only to the way the place looks, but to the general ambiance and attractiveness to people who want to go there and sit. So, um, what have you got? Do you have any pictures? Hayek: Well we don't ... you know we're not ... as you know, Caroline, we're not set u to engage in a back - and -forth with... Dieterle: No, but are any pictures going to be made public of this before... Hayek: Well, Bob, you can weigh in. We ... we have seen schematics; in fact you may just be bringing one up there. Dieterle: Where ... where is ... where is the balcony in this? This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 13 Miklo: The cantilevered portion of the building is this area here, approximately four feet that would, uh, project into the street. And you can see here, as well. Dieterle: So it's only four feet? Miklo: That's correct. Dieterle: And not ... and how far ... how far does it run ... what's the length that it runs? Miklo: It's the, uh, length of the west and north side of the building. Dieterle: Okay. Thank you. Hayek: Thank you for your comments. Would anyone else from the public like to provide, uh, input during this discussion portion? Michaud: Hi, I'm Pam Michaud. Um, I guess there was some misconception that it was just a balcony but as we see now it goes up 13 stories and it's a solid fagade, except for some indented balconies. So it adds, uh, I believe with the 5,600 square, uh, finished square feet to the building. So that does ... involve more development and, um, tax, uh, revenue, so I understand that. Um, I guess, you know, in the last five years, just five years since 2006, we've had, um. ... and I think this does have to do with this, uh, tornadoes, floods, and fire destroy buildings that were historic. Wells Fargo is not a historic building, but the pedestrian mall has been established since the 70s, and it's iconic of Iowa City. Um ... in ... in talking to people about the other petition that we're not discov ... uh, discussing, um ... people would comment on Ann Arbor, Michigan, being unrecognizable because it has lost all its character. It's all large developments. And I would suggest that, um, that a large development in the core of the city pedestrian mall included that's over $5 million should have some kind of public review and be open to a bid process. In my discussions with a lot of different people in the last five weeks, I've talked to contractors and public employees and builders that felt they were excluded from this process. They didn't think that they would have a right to, uh, participate in a bid process. And, um, that the downtown was, uh, was just not an area that they were able to participate in. Hayek: Pam, I'm ... I'm going to have to interrupt you and ask that you keep your comments relevant to the air rights. Michaud: All right. So ... I think you got the idea. Hayek: Okay. Michaud: Um ... when you have cataclysmic money you are, the City is contributing a large amount of money, uh, to give a lot of air rights and ... and I would ask you to reconsider that. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 14 Hayek: Thank you for your comments. Would anyone else from the public? Knapp: I thought maybe Caroline (mumbled) excuse me. Was going to speak. My name's James Knapp. And uh ... I don't have an objection to the building per se, except that I think we have more building in downtown Iowa City than we need in this type of a building. My objection is ... to the TIF. My objection is to the fact that I don't believe the Council, other than Connie Champion, were around when the original TIF on Plaza Towers was given (both talking) Hayek: Mr ... Mr. Knapp, I'm going to interrupt you again. We ... we've got several items tonight relating to this project. Knapp: I'm relating to this project, cause I think some of the people on the Council have not been apprised of the situation and how it was handled in the past. Hayek: That... that's... that's fine, but if you're ... if you want to talk about the TIF or the proposed revenue route, I would ask that you hold back your comments for Items 7 and 8, cause that's (both talking) Knapp: I'm not talking about the TIF. Hayek: Okay. Knapp: I'm talking about what's transpired in the past and (both talking) Hayek: ...I'm going to ask you to try to direct your comments (both talking) I'm going to ask you to try to direct your comments toward what's on Item 4f, which is the vacation ... the sale of air rights. Okay? Cause that's what we have to decide under this specific item. Knapp: So we can't object specifically to the fact that we're granting a TIF when we should not be doing this and raising taxes for the taxpayers and costing us taxpayers more money because of this, and did the City know, did the Council know in advance that ... if Marc doesn't get to do this, he'll probably sue for damages, just like he sued to suppress his financial statements previously. Was the Council told about this? Was it written into that, so that he could not do that, so that if they said blanket no, it was no and done and Marc, get your own money for it? Was that done? Were you apprised by the City Attorney? Hayek: We don't set up our meetings to engage in a back -and -forth with the public, but we invite public comment on items like this. So if you've got a comment on the proposed sale of air rights, regarding this project (both talking) Knapp: I have a comment on how you're railroading this down the throats of the taxpayers. I have a comment on that. I have one page, two sides I will give to the This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 15 press. I will publish in the papers, and ... and we will see it, and I just want the people in Iowa City to know what's gone on in the past and what'll go on in the future as long as you keep giving money to Mr. Moen. Hayek: If you... Knapp: He does not need it! He can do it without it, or the City can do without the project. Hayek: If ... if what you brought you'd like to submit to the Council, you can give it to the City Clerk (both talking) Knapp: I have eleven copies left. I gave one away. I will pass them out to the Council and I, please hope they will read them, because they're also going to the press, and the press will be reading them. Hayek: Very well. Thank you. Knapp: But I would like to know if you were advised that if you ... Council made a decision to go ahead with this and then changed their mind because of a public outcry, that ... were you aware that there would be damages sought against the City for doing so. And if that's the case, I think the City should be apprised of the actual real costs, and those costs should be documented with the people that they're spent ... Munson Architect or whoever it is, and then I think that ... a letter should be drafted to the IRS saying, okay, this is what he said he spent, this is what we said we got, so is that reported on their taxes. Hayek: Sir, I suggest you make your comments, uh, available to the Clerk and then to the media. It'll become part of the public record. Knapp: I've already made my comments to ... the City Attorney and she said that she works for the Council, not the people of Iowa City. Hayek: Thank you, Sir. Would anyone else from the public, uh, like to provide input? Okay. I will close the public comment portion and we can now turn to Council discussion. Champion: (mumbled) on the floor? Karr: We have a motion on the floor. Mims: We have a motion. (several commenting) Dilkes: Has there been a ... a request to collapse on this? No? Okay. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 16 Mims: Well I'm going to support it as I did before. I think, um, I think the four -feet cantilever actually makes a better - looking building, um, I think that it increases the potential value of that building and the, uh, taxes that the City will, uh, eventually get from it. I'm going to continue to support it. Hayek: Yeah, I ... I'll repeat what I've said at...at prior, at the first reading and even before that. I'm ... I'm not going to support this particular item, uh ... I have, uh, concerns about the vacation of...of right -of -way in the pedestrian mall for reasons I've given earlier. Um, but also as I've indicated earlier, uh, this should not be construed as ... as a lack of support for the project. I think this is an excellent project for downtown and I will be supportive of that later on in the agenda. Any further discussion? Throgmorton: I ... I'll be voting no just to be consistent with prior votes. Hayek: Okay. Further discussion? Okay, roll call, please. Uh, item pa ... or second consideration passes 5 -2; Hayek and Throgmorton in the negative. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 17 ITEM 4g CONSIDER A RESOLUTION APPROVING THE FINAL PLAT OF WINDSOR WEST PART TWO, IOWA CITY, IOWA. (SUB12- 00009) Hayek: Um, with respect to Item 4g, we were going to read that but there is a request to, uh, entertain a motion to defer this until, uh, July 31 St Mims: Move... Champion: Go ahead. Mims: Move to defer to July 31St on Item 4g. Payne: Second. Hayek: Moved by, uh, Mims, seconded by Payne. Discussion? All those in favor say aye. Opposed say nay. Motion carries 7 -0. We'll take this up on the 31St of the month. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 18 ITEM 4h CONSIDER A RESOLUTION APPROVING THE FINAL PLAT OF PENINSULA NEIGHBORHOOD 5TH ADDITION. (SUB12- 00005) Payne: Move resolution. Dickens: Second. Hayek: Moved by Payne, seconded by Dickens. Discussion? For the public's input, this, uh, will allow development of an 8 -lot, uh, or 16 -unit, roughly two -acre residential subdivision located on Foster Road. Throgmorton: This is just carrying out, basically decisions we made earlier. So, seems like we ought to do it! Hayek: Further discussion? Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 19 ITEM 5. PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATE OF COST FOR THE RENOVATION OF FIELDS 1, 2, 3, and 4 AT THE NAPOLEON PARK GIRLS SOFTBALL COMPLEX, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. a. PUBLIC HEARING Hayek: This is a public hearing. Public hearing is open. (bangs gavel) This, uh, cost is estimated to be at about $180,000 and will be funded with GO bonds. Various improvements to the fields. Any public input? Okay. I'll close the public hearing. (bangs gavel) b. CONSIDER A RESOLUTION APPROVING Dobyns: Move the resolution. Payne: Second. Hayek: Moved by Dobyns, seconded by Payne. Discussion? Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 20 ITEM 6. PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE S. DUBUQUE STREET STORM SEWER AND WATER MAIN IMPROVEMENTS PROJECT, ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. a. PUBLIC HEARING Hayek: This is a public hearing. The public hearing is open. (bangs gavel) Estimated cost of the project of the ... for the public's information is, uh, $355,000 and will be funded with storm water and water revenue proceeds, as well as road use tax dollars. Any public input? Okay, I'll close the public hearing. (bangs gavel) b. CONSIDER A RESOLUTION APPROVING Dobyns: Move the resolution. Dickens: Second. Hayek: Moved by Dobyns, seconded by Dickens. Discussion? Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 21 ITEM 7. INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO EXCEED $2,800,000 TAXABLE GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2012. a. PUBLIC HEARING Hayek: This is a public hearing. (bangs gavel) Public hearing is open. So if you're here regarding the TIF project, now is the time to come forward. Gordon: Uh, my name's, uh, Colin Gordon. I live in Iowa City on Rochester Avenue. Um, I'm opposed to the public financing for this project. Um, I think with a substantial public subsidy, uh, we should be, uh, seeing a substantial public benefit. Um, I don't see that in that project. Uh, the laws upon which this kind of subsidy are originally based were designed to remove threats to the public welfare, which is one kind of public benefit. I don't think we're going to argue that the Wells Fargo building is that. Uh, another possible public benefit is providing a substantial public good, something the market would not provide. Uh... something like low- income housing, for example, uh, but by my reading, uh, this deal actually plays somewhat loose with Iowa's TIF law, uh, resting on an old urban renewal statute, um, which allows the building of housing, when in fact it's an economic development zone, which requires a set -aside for low - income housing, which is not taking place. Another, uh, potential, uh, public benefit might simply be serving the purposes of the urban renewal plan as drafted. Um, but I can find nowhere in that plan, um, the hint of a mention of the need to build market or above - market housing in downtown Iowa City. Uh, so all that's left, um, and I think what this project really hinges on, all that's left as a conceivable public benefit, uh, is getting a property with a much higher assessed value, uh, and hence revenue stream. But of course we won't see any of that for 18 years, the time it's going to take to pay off the TIF. Uh, it'll take longer than 18 years if the State legislature enacts commercial property tax reform, um, which will strangle that revenue stream. And I think, uh, most relevant in this case is if the developer in question has indicated his willingness to build a smaller building on the site. So, we're not conjuring a new assessment out of thin air. In fact, by my math we're giving up 18 years of assessment on a slightly smaller building, but it's substantially larger than what's there now, in exchange for the promise 18, 19, 23 years from now, uh, of a small gain. Thank you. Hayek: Thank you for your comments. Dieterle: I'm Caroline Dieterle, and I won't put my name down a second time. The proposed funding mechanism for the TIF in question here is general obligation bonds. And the interest rate to be paid on these bonds is low because they are being backed by the credit of all Iowa City property taxpayers. If the Iowa City Council is to use the citizens' credit in this manner, the citizens deserve to vote on whether they want to do this. The original intent of GO bonds was to allow This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 22 funding at reasonable interest rates for expensive but necessary public infrastructure, as the gentleman that just spoke mentioned. The original intent of TIF legislation was to encl... enable the reclamation of blighted areas, returning them to revenue - producing status. But the situation now is that these two good ideas have been perverted and united so that every developer of every piece of ground is asking for TIF funding of some sort. It has become a given in developers' planning, essentially removing development from the much lauded private enterprise into the realm of publicly funded risk. Where will Iowa City draw the line in its total TIF funding? Will we go to $280 million like Coralville? Have you thought about how much is going to be too much? The structure tonight in question is a building to be privately owned and it is to be built for private profit. If banks and other private investors think a proposed income- producing, for - profit development is not doable to their satisfaction, I might say, without TIF help from the public and therefore will not lend sufficient capital to build it independently, why should the citizens of Iowa City be asked to lend their credit to help the developer build it anyway? By making up the difference? Again, why take a risk with private ... with public money that private capital isn't willing to take? When ... when we're told that the project won't go without this TIF funding, uh, I find it a little hard to believe that it would have been profitable at 12- stories, but all of a sudden with 14- stories and a balcony it's not doable without TIF money. So it means to me that what really it is is that there... there's an insufficient profit with the plan as it stood and that is why the extra two stories are ... are to be added by the developer, or what he wants to do. The justification being given to the public for involving citizens' credit is the premise that there will be an eventual return on their money due to the expanded tax base. But somehow the tax base does keep expanding, but property taxes never go down! And this is because the development creates more expenses at the same time that it creates the revenue and the revenue never outpaces the expenses! I've been listening to the Council talk about expanding the tax base since 1968! Look at the difference between the town now and 1968, and how much bigger the tax base is. Have your taxes gone down? Mine didn't! They've gone up! Inflation is a factor that no one has talked about very much either. Property values are rising, along with the cost of everything else. And in 18 years, $2.5 million will buy a lot less than it would today, and the tax revenue that's finally realized from the investment in this TIF will look proportionately less impressive. The citizens of Iowa City would get a lot more good out of investing $2.5 million in GO bonds in any number of public goods in town. The Free Medical Clinic, the Library, the Animal Shelter, the parks, and the swimming pools, and citizens would enjoy the benefits of investing their money in these public good ... public goods relatively soon, not in 18 years! So, I would hope that you would not grant this TIF. Thank you. Hayek: Thank you for your comments. DeProsse: Um, my name is Carol DeProsse. I live on Burry Drive. Uh, this afternoon we turned in the much - discussed Moen TIF petition to the City Clerk. We counted This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 23 862 valid signatures, well over the 697 required. In a recent article in the Cedar Rapids' Gazette, City Manager Tom Markus said that in the face of a successful petition, he would recommend the Council move forward with revenue bonds and vote on them tonight. He has obviously concluded that the signers of the petition, what the signers of the petition think is totally irrelevant to the pursuit of his own career interests. Tonight you have another recommendation before you. One from over 800 citizens you represent, stating their preference for a vote on the issuance of general obligation bonds. This recommendation should not be so lightly dismissed. In the same Gazette article, City Councilor Connie Champion said that unless she received new information that gives her pause, she would support using revenue bonds to fund a project which she believes will benefit Iowa City for decades to come. There is no "we" in she. For two of those decades to come, the City will not realize any tax revenues into its general fund from this project since all tax payments will be used to pay off the bonds. And after 20 years, no one knows what will happen with assessment values and tax revenues. In that same article, Connie... Councilor Champion also said, "I appreciate that there are people out there who think that we shouldn't back Moen with money. On the other hand, people like Moen are the ones who are putting money into the city." At the rate Mr. Moen comes to the City with hat in hand, and the rate with which the Council generously fills it, he will soon own most of downtown Iowa City. And finally, from the Gazette article, Mr. Markus said that as long as other neighboring communities aggressively use TIF, Iowa City will need to respond accordingly. We're going to have to step up our game — period — he said. I said to a friend of mine after reading those words, that you all have apparently hired Kelly Hayworth's fraternal twin to also run our city into massive debt. Maybe someday matching Coralville's $280 million TIF obligations that have caused its bond ratings to be downgraded. We all know that Wall Street and the global banking industry are stinking with corruption. The Libor Rate manipulation scandal in England is now coming to our shores, including the Secretary of the Treasury and the New York Federal Reserve being sucked into its financial chicanery. The global economy is in shatters, and many economists believe the U.S. economy is either in or on the verge of a depression. Congress is owned by the super- wealthy. So the corruption and failure to put in place any meaningful regulation of these financial giants goes on and on. No one can possibly believe that Iowa City or any other city is immune from the economic impacts that this corruption is breeding. These scandals and the severe downturn in the global economy most definitely have local impact. I believe that there has not been a time in my life where the long -term future of my country seemed less financially secure. Lastly, if any of you go to the Farmers Market you must be quite pleased that with this summer's heat temperatures of 100, 101, 2, 3, 4, and 5 degrees, that the Farmers Market isn't being held out on an open street, like Iowa Avenue. The parking ramp was a haven for vendors and shoppers, but a handful of us were out in that heat, many times, heading out at 8:45 on Saturday mornings and 4:45 on Wednesday afternoons to gather signatures on a petition to ask for a vote, a vote, on a $2.5 million TIF. We had to set up outside the ramp to comply with the rules of the Market. Citizens voting, the very basis of democratic This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 24 governance and under attack by Republicans and Tea Partiers around the nation, including in this state by our Governor Branstad. I hope that thought alone gives you the pause you need to grant the citizens a voice in the development of their community and allow us a chance to vote on this issue. Thank you. Hayek: Thank you for your comments. Knapp: I apologize for before because I left my hearing aid at home and I couldn't tell which section you were in. (laughter) Hayek: No problem! Knapp: I totally agree with Caroline. I believe that the public ought to be apprised of the situation and they ought to be public ... a public vote that would take care of this. Whether it's a referendum, I don't know how it would be done. If it'd be put on the November ballot or if it could be done (mumbled) but ... being on a ... not even on a fixed income anymore. I'm still working at 72 years old. I don't feel like my taxes oughta go up, and I think the City has arbitrarily prop ... valued my property higher than it should be and I looked at the Plaza Towers' property values today and they're high, so they're paying some taxes, but I think that the project, if Moen's gonna do it, he should do it on his own money and his own investment, and not put our capital and our City capital to risk because ... as they have said before if this comes back to the City, we can always take over. Well, what does the City want to do with a 14 -story apartment building? Um, I ... I just feel that you ought to let the entire city know through vote what's going to be done and ... not have to go in and... acquiesce and say, okay, you've got damages, Marc. We'll pay them. Because that's what it's going to boil down to if you say no to him at this point in time. And ... I just feel that ... Council has stepped out of their bounds a little bit by not... considering the city and considering (mumbled) particularly on what's happened in the past and ... I have 1,500 pages of documents I had to pay for previously and ... if anybody would like to share those and look at em with me, they will be coming out in a book some day. Thank you. Hayek: Thank you for your comments. Cochran: Kathy Cochran and I live at 2665 Triple Crown Lane in Iowa City. And I interestingly ... have a scanned copy from practically ten years ago from July 17, 2002, when the Council voted on the Moen project, which was in the parking lot of what was the City Library. Now that decision came down to a 4 -3 decision. Now the only person that's still on the Council is Connie Champion who voted on that day and maybe hopefully remembers the discussion that came up at that time. That project also involved TIF money. And the reason that the vote came down to the 4 that it did was because that project was actually supposed to have affordable housing in it! The swing vote on that ... vote, Ross Wilburn, said specifically that the reason he voted yes for the TIF funding to be allowed and that project to go forward was because affordable housing was to be in it. Now, I This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 25 don't know about you, but I also know that when that building was about to open, affordable housing was taken off. There isn't affordable housing in there! Basically, he said there was going to be affordable housing. The City Council approved for the project, and then once it was built, oh, we're not going to have affordable housing in there. Now this is one of the reasons why I don't think that we should be giving TIF money to Marc Moen and the development company because basically I think that that was a little bit ... I don't know, slightly unethical? Um, misleading? Um, I'm sure that there's maybe other words that I could use, but I really don't want to be libelous. Um, but I hope that maybe, Connie Champion, that gives you pause to who you're offering money to with the TIF funding in this process. Is this someone that we really want to ... offer another couple a million dollars to? In funding a building? When in the past they've kind of reneged on promises that they've kept to this Council? I don't think so! And if you vote yes, what does that show about you? That you're that trusting? You're that naive? Or that you just believe so much in this project? Well, the citizens have... commented with their petition that they would like to vote on this project. You, as City Council Members, should take into account that as voters we would like to vote, and that you, as people that we have voted for, should represent that vote. For us, but ... the fact that we have petitioned to have that say ourselves, you should take that into consideration and allow us to make that decision for ourselves. I think that the City Council needs to think about this and either not agree to the TIF funding for it because I do think that he has other resources available to him. I also think that I personally don't think that I need a 14 -story building, um, downtown pedestrian mall because I like the pedestrian mall the way it is! And, if you have 13 more stories where Wells Fargo used to be, that does change the whole essence and aesthetic of the downtown, if you're building that project 14 stories there's going to be a disruption of the ped mall, which you finally just got put back together! Ped mall is the heart of downtown Iowa City! You've been trying to get people to go back to downtown Iowa City. To tear up downtown Iowa City, to put in a building that at least we're saying pause on the special funding for. Think you need to take a step back, reconsider this, and not vote for this. Thank you very much. Hayek: Thank you for your comments. Knapp: This young lady mentioned Ross Wilburn (both talking) Hayek: Hold on a second (both talking) Knapp: ...clarify that if...it'd take about two seconds. Hayek: All right! Knapp: Ross Wilburn had recused himself on every vote that was involved with Community Development Block Grant funding until this project came up. This project was appraised... this lot was appraised, that she's talking about, at This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 26 $1,750,000. The lot was ... Karin Franklin set it up with Atkins and they gave the lot to Moen for $250,000. That took $1,500,000 out of Community Block Grant Funding that should have gone in. Ross Wilburn did not recuse himself on this one issue, and have had ... if he had, it would have been a 3 -3 tie. It would have disappeared, gone away, and we wouldn't look at a 14- story, tin can down the street. Thank you. Hayek: Thank you, and let's see if anyone else from the public would like to, uh, participate in this process while we still have the public hearing open. Is there anyone else who would like to give input? Moen: My name is Marc Moen. I live at 221 E. College Street. Uh, I just wanted to respond to a couple of things that were said this evening. Uh, one that Plaza Towers did not deliver what was promised, which is not true. It delivered way more than was ever promised, uh, to the City. It's returning, uh, way more money than was ever predicted. The assessed values are double almost what, uh, we... what we discussed at the time we proposed that project. Uh, the TIF, uh, financing for that project has been paid off and the building pays nearly a million dollars a year in taxes. The hotel pays another something like $150,000 in hotel/ motel taxes. Um ... this idea that we would build a 12 -story building without any TIF incentive, but can't build a 14 -story building is ... I don't know where that came from. I've seen it repeated in the paper a number of times. Uh, it's not something I've ever said. It's not true, and I just want to make sure the Council understands that that ... there's no way we're building a 12 -story building or any other building on that site, urn ... if...of that scale if we can't, uh, if we don't get TIF financing, and then finally the issue about the risk factor in this building. It has enjoyed the same ... of people that are really interested in investing in downtown, this project has enjoyed the same sort of momentum that Plaza Towers did. So we have non - contingent purchase agreements on a number, large percentage of the condominiums, and the retail space, and the only contingency in those contracts is the vote tonight. There... otherwise they ... the buyers of those, uh, units have no contingencies in their contracts. And it's been... extremely well received, uh, by people, young professionals who want to miv ... live downtown and a business owner who wants to own space in the building. Thank you. Hayek: Thank you for those comments. Moen: And I will answer any questions if anybody has any. Cox: Hi, I'm Jeff Cox, 112 S. Dodge. Uh ... sorry I just got here, I apologize if I repeat what other, uh, other people have had to say, but I would just like to make one point. I want you to consider very carefully whether this is a good time to cast a vote against education. Because that's what this vote is. I mean, the... the TIF, uh, provisions are incredibly complicated, and one of the reasons they're complicated is so people don't ... won't understand them. Uh, they allow people to make claims that just aren't true, like this is just a loan. That it will be repaid. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 27 Or that the schools won't get hurt because the, uh, State legislature, uh, makes up the difference. None of those things are true. Uh, schools get a triple- whammy when you approve a TIF. They don't get the money from the, uh, TIF'd uh .... uh, they don't get the money from the TIF'd project for the full period in which it's paid. It's ... it's never repaid to the schoolchildren. Uh, and they, uh, they do get re .... uh, reimbursed by the State for the value of the property, as if it were un- TIF'd, but where does that money come from? It comes out of the General Fund! So (laughing) the schools are better off if there's no development whatsoever on the property, and they're paid the property taxes that would be paid if there were no new development on it, because if there's new development on it, the reimbursement from the State is ... is out of the same fund that... allowable growth funds, are... are... are, uh, used for, and so it puts budgetary pressure on the school districts from two different directions. And I don't know why the School Board and the School Superintendent aren't down here, making this point. Certainly the Clear Creek Amana School District has made its point to, uh, plenty of times because they've been hurt much worse than the Iowa City School District from this, and they've actually had to have special relief from the legislature because of this. So, this ... this is not a time to increase classroom size at Longfellow Elementary School in order to put money into a private, uh, investment. That... that's what this is. And ... and I hope you'll consider carefully, uh, whether that's a good idea at this time in our history. Hayek: Thank you for your comments. Anyone else before I close the public hearing? Okay, public hearing is closed. (bangs gavel) b. ADDITIONAL ACTION 1) CONSIDER A RESOLUTION FOR AUTHORIZATION AND ISSUANCE (OR) 2) CONSIDER A RESOLUTION ABANDONING THE ISSUANCE (OR) 3) CONSIDER A RESOLUTION CALLING A SPECIAL CITY ELECTION Dobyns: I move the resolution that we abandon the issuance of General Obligation bonds. Mims: Second. Champion: I'm sorry, I didn't hear the motion. Dobyns: Uh, abandoning the issuance of GO bonds. Hayek: Okay, there's a motion to abandon the issuance of the $2.8 in GO bonds, uh, from Dobyns, seconded by Mims? This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 28 Mims: (mumbled) Hayek: Discussion? Throgmorton: I think we need to consider how we respond to the, uh, petition and their request, uh, the citizens' request of roughly a thousand, however many the number is, uh, of our, uh, voters who have requested that we schedule a... a special election. I... I think we need to, uh, be clear about why ... uh, we would chose not to do that and there ... and have to abandon the, uh, GO bonds along the way. So ... just so, for my benefit and for the audience's benefit, if we vote on the ... the resolution as presented by Rick, uh, that ... that would mean that we would be, um, abandoning the GO procedure and therefore automatically not schedule a public, uh, a special election because it becomes irrelevant. Dilkes: Well that would depend on how the Council voted on that issue, but if there was an affirmative vote on the abandonment then (people speaking in audience... "...we can't hear you... ") That would depend on ... on how the vote was on that issue, but yes, as we discussed at the work session, you cannot pass a resolution to schedule... schedule an election, and pass a... a resolution to abandon. Um, I think what Council talked about at the work session was to put either one of those motions on the floor and now we have a motion to abandon on the floor, and then have that conversation, urn ... before you voted. Dobyns: I'm going to save my comments until the next item. Cause I think they're related. Throgmorton: Okay. Well, I ... I won't save my comments. I ... I hear lots of, uh, important questions and objections and concerns being expressed by many people who I know very well and who I respect deeply. In ... in many cases, I think, uh, what I'm hearing are expressions of, uh ... uh, of worry about risk, worry about affects on the ... on the school system as Jeff just articulated, uh, and so on, but in many cases I also heard what I take to be factually incorrect statements about what the Council has done in the, uh, with regard to this issue in the past, uh, and about what, uh, the developer, Marc Moen, is doing and what his motivations are, uh, and so on. So, uh, I ... I don't want to recap each of those and explain why I think they're factually incorrect in... in instances. What I would do is say that I articulated my own rationale, uh, for supporting the TIF back on April 3rd. I articulated that in a guest opinion that appeared in the Press - Citizen, Thursday a week ago. I ... I don't know what the date was, but not last Thursday, but the one before it. Uh, and I would strongly encourage anyone who, um ... uh, has not seen that guest opinion to read it so they'll know why I voted the way I did! Uh, and... and that said, I think I would have, I mean, I was just on the verge of saying I move that we, uh, schedule a special election, so that we could expressly, uh, discuss, A ... what our reasoning would be for either not ... for either scheduling a special election or not scheduling it, and it was clear from the work session discussion that we would not chose to schedule a ... a special election, uh, but I This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 29 think it's important to articulate our reasons why collectively we would not take that course of action. So anyhow I've probably talked enough about that now. Hayek: Good comments! Thank you for that. Mims: Well, I'll make my comments now and be quiet on the next one (laughing). Um ...I don't believe ... I don't believe that economic development can be done by a public vote process on every single project that comes before the Council. I think that as we sit up here as Council Members for this community, um, we have all gone through an election process that the community has ... had a chance to vet us, um, in that election process and we have a responsibility to sit up here and set policy and make decisions for the community. Um, certainly there ... there is the petition process and in certain cases things will go to the public. I don't believe when it comes to specific, uh, economic development projects that that is a particularly feasible way for things to happen. I think the time delay, I think, um, I just look at the time that we spend... digging into the details and educating ourselves on those projects and making those decisions, often times is not going to happen, uh, for the general public. I think people are going to hear ... Jim just commented about how many, uh ... factually incorrect comments have ... he has heard tonight and has heard out in the public. And unfortunately sometimes those things just tend to get repeated and repeated and repeated and uh, as they say, if you hear it enough times you think it's true. And so I ... I just don't believe that economic development can be done through a ... a public voting process. I just would like to quickly address a couple of other things in terms of...of this Council and ... and process and some issues. We have a City policy on our debt limit. We are not going to be $280 million in TIF debt, uh ... I don't know if it's just TIF debt but we're not going to be there. We have a debt on our policy limit. Uh, we have a policy on our debt limit (laughing) let me rephrase that. Um, we have talked repeatedly at the staff and Council level how vitally important it is that we maintain our triple -A bond rating. We do not take that lightly, at all! We have put together new economic development policies in terms of...what's important to us and how we want to guide economic development in this community. And in what kinds of circumstances we would use public money, use TIF money, to assist in development. I think those were developed very thoughtfully by a combination of staff and Council. They've been approved by Council, uh, without thought of any one particular project, but looking forward as a whole at the City and how we do things and how we can benefit the people who live in this community. I think in regard to this particular project, I think we are going to have a better building that serves this community better with the retail and class -A office space than we would have if we had a building that just went up, that was geared for the maximum profit with student housing. In terms of the look of the building, everybody has their own opinion. Um, in terms of the shadow on the ped mall, we have seen shadow studies done before and particularly that time of year when most people are out on the ped mall, it really is not that significant. We ... that was presented to us and we did see that. Um, talk about getting people back downtown, again, I think the office and retail components of this building This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 30 really add to that, uh, very well. Um, in terms of the cost to the School District, uh, the School District will continue to get their portion of the taxes on the current value of the property; like the other taxing districts, they will not get tax on the incremental value. Uh, I don't disagree with Jeff in terms of the whole budget constraints at the State level and the State does not backfill on that, etc., but I think in the long run, um, we have to look at what is going to be the best economic development for this community as a whole, and I believe ultimately will benefit not only all the people who live here, but I think our schools, as well. Dobyns: And I'm going to change my mind. I am going to comment because (laughter) I think what Susan stated, um, I want to build on that. Uh, we are your representatives, um, we're a diverse group of people. We're not shy about disagreeing with each other or disagreeing with City staff. But we've all taken a good look at this, and we voted 7 to 0. Um, I have no problems. I've used the initiative and referendum process myself, but in those ... were areas where the Council was split 4 -3, perhaps 5 -2. This was 7 -0, and I think as part of our representative democracy, I feel very comfortable that this is a time that we should not send this to the voters. Payne: I ... I also want to piggyback on some things that Susan said. I think, uh, the City of Iowa City, the staff, I think we use TIF very judicially. We study it, um, maybe sometimes people think we study it too much before we actually get to vote on some of these things, but we don't just throw money at people, um, and... and build it and they will come type thing. Um, we ... we need to use some method of economic development in order to compete with other cities in our area, to keep economic development happening here, and this is one method that we can use to keep people building within our city, and keep our city growing! And ... I think this is a great project, and in the end it will be a value to our entire city. Dickens: Having grown up in Iowa City, I always use my ... my history of Iowa City. I had the, uh, fortune to, uh, grow up with Tim Brandt and urban renewal was very important in this town. It was very divi ... divisive in this town, too. And I look at this city and see what it is now, at what it could have been if we hadn't gone through all this urban renewal. I think this is a great step in the right direction, to continue the work that was done way back in the 70s. I probably should have been just being a high school student and enjoy that, but I got my interest in politics way back then so ... I just look at this as another step forward. Hayek: Uh, I keep crossing out comments that I was intending to make (laughter) uh... but ... but here's what I'm left with (laughing) that hasn't already been mentioned and ... and to dovetail this ... this concept of...of representative democracy. I mean, that ... that's what we are. The seven people up here, we're elected by the city's... citizens to make decisions of this nature and ... and that's been mentioned, but what I would also add is that part of that representative, uh, local democracy is ... is the work we do to employ the staff who bring the expertise, um, regarding, This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 31 uh, this and many other issues, um ... into the discussion. Um, and ... and what's missing from this conversation is the exhaustive vetting process that occurred at a staff level, uh, analysis of the project, urn ... uh, and ... and consideration of...of a variety of factors to make sure that this was, um, an ... a project that would benefit the community and that was worth the investment of the public. Um, by way of its participation. And then extending out from staff was the, uh, use, uh, by the City of outside, independent help to further vet this proposed project. Uh, to give us an outside perspective, um, we accomplished that as well, and so ... the information coming back to the Council, which we have taken up and ... and discussed considerably and reviewed considerably, uh, supported this project and that's, I think, why you see such, uh, strong support for ... for this project. Um, I want to mention, um, one other thing here and... because... cause there was a comment earlier about how, uh, how we are no longer immune from ... from economic downturn, and ... and we have to be mindful of that, and to that I say: absolutely! Uh ... we, um, locally our property values are flat. We have lost tax base to the suburbs. We have lost support from the State. Uh, we have lost interest income on the funds we hold because the federal funds rate is so low. We have lost our ... our pension expenses are ... are out of control, and the cost of running government, relative to where our tax base is now, uh, is ... is widening, and um, for decades we have had the enviable luxury of being able to be what I would describe as `relatively complacent' about growth, uh, and ... and about growth of our tax base and ... and the revenues that we can use on behalf of the citizenry. Um, and I think those days are over, um, and we have to be smarter about how we grow our tax base. We have to be smarter about how we, uh, encourage, uh, the ... the kind of expansion and new business that it's going to take, to continue to provide the services that we are accustomed to here in Iowa City. Uh, a top -shelf police and fire department. A top -shelf library. A... a senior center. A ... a parks division. All of the things that we enjoy in Iowa City cost money! And ... and ... and the ... we cannot ... we cannot rely on the steady 4, 5, 6% growth that we had for so many years. Those days are over, and ... and we have to be smarter about how we maintain the tax base and what we're able to do with it to support our services, and so that's what this is about. Um, it's being done, uh ... consistent with clear policies and clear requirements that this Council has adopted, and which were mentioned earlier, um, it's being done in an absolutely transparent manner and ... and it's being done with ... with a sharp eye toward our credit rating, which we have all agreed is sacrosanct not ... and something that we are not willing to trade on, um, and so ... that's why this is an important project. I think this Council was appointed to make decisions of this nature. We've gone through a lot of homework here, um, that's why I'm supportive of abandoning GO, uh, on this and moving to, uh, a revenue approach, as will be seen in the next item. Champion: Can I say something? Hayek: Yeah! (laughter) This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 32 Champion: I ... I'm not going to repeat. You've all said the same things that I'm thinking of, but there is another thing that Iowa City does differently with TIFs than a lot of other communities. We have a money limit on em, not just a time limit. So when ... as the ... as the building becomes, increases in value and they start owing more taxes, that goes toward the TIF, and so it might not take 18 years. Plaza Towers took, I can't remember what ... 7, 8, 9? (mumbled) was an 18 -year TIF or whatever. So we limit the amount of money, not the years, so ... if we'd limit the years we could keep that money going somewhere else, like you know ... to stealing other people's businesses, but I just really feel that this is a good, positive thing for Iowa City. We're very conservative with TIFs and this is just one that I feel very positive about and I'm definitely going ... going to support it. Not the TIF, but the other way around now but ... you know what I meant! Hayek: The revenue approach (several responding) Champion: Right! Hayek: Further discussion by Council? Okay! Roll ... roll call, please. Item passes 7 -0, and the GO approach is abandoned. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 33 ITEM 8. INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $3,100,000 TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012. a. PUBLIC HEARING Hayek: This is a public hearing. The public hearing is open. (bangs gavel) Gordon: Um, Colin Gordon again, uh, I think, uh, everyone in this room is acting in good faith. Um, I think there are honest disagreements over policy, um, but I think in the interest of acting in good faith, we need to ask ourselves why there is a specific provision in the TIF agreement allowing for a petition protest and a special election. And the purpose of that provision is not merely to allow the Council in five minutes time to spend $300,000 more dollars adding how many more years to the path of the TIF. But I would ask in the interest of acting in good faith that we respect the democratic process and allow that special election to occur, but now that that, uh, option has passed, I would ask that you vote nay on the ... on the, uh, new bond proposal. Hayek: Thank you. Knapp: I heard how ... the Councils been elected and they should be the final authority and they should do this and that, and Miss Mims clarified that for me. Urban renewal came in, at one time the University of Iowa was banned from doing any development in the central business district. They've taken over the Old Capitol Mall. They've taken over the ... Plaza Towers, or not Plaza Towers but Plaza Center One. They've taken over the Jefferson Hotel. Why don't we take those properties back and turn those into tax- paying properties again? Why do we have to go out and get more money and create a TIF when we don't know... and you say you know about it and you're right and your decision should be valid because you were elected. Maybe something comes up that you don't have any knowledge about or don't know about, and one of em is how hard it is to live out here and have to pay taxes to support something like this when, if Marc can't do it on his own, when I had to build houses, and I couldn't do it on my own, I got out of it and got into something else. Now, if he can't build a building and do it on his own, he oughta get out of it and go to something else! When is enough enough, you know, I mean the guy's got enough money to last him the rest of his life. He doesn't care about Iowa City. He cares about living in that tower up in the 14th story of that aluminum tin can! And you don't know what you're talking about, Miss Mims! Dieterle: Uh, I agree with Mr. Gordon that, you know, in the interest of, uh, letting the ... the citizens have a say in this because it's a rather controversial development downtown, I think it's very wrong that you do not allow an election on this issue. If you're so sure that you're right, that this is a wonderful thing, then you should This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 34 be able to convince the voters of that, as well. So I would ask you to vote no on the revenue bond vote, and to set an election. Thank you. Hayek: Thank you. Any ... further public input? Dieterle: Really I ... I know this is a post - script, but it's sort of...seems like contempt for the citizens when you refuse to allow a vote on something like this. That people have cared enough to put their names on the line and have cared enough to go out and gather the signatures for. Because if you tried doing it, for a while, and you can consider how much time is spent just explaining and talking about the democratic process, and telling people who say over and over, well, there's no point in signing this cause they'll never let us vote. That's really sad, you know, for our democracy. (person speaking from audience) You know, when... when... when we're told by our people we're trying to rally to the cause (light applause) that they'll never let us vote! That is the worst thing about this whole affair! Hayek: Thank you for your comments. Okay, I'm going to close the public hearing. (bangs gavel) Yes, Sir! Got in sort of under the wire! Downey: (laughter) Couple of things to say. My name is Downey. I've lived in this town about 50 years. And I am shocked ... to listen to an adult tell me that it is she sitting on a committee that knows how to spend my money! And above all, not even ask me what I think about it, and that's what you people are doing! You're cutting these people out! You talk about democracy, my goodness! What ... what is it that you don't see here? And I tell you one more thing, the reason economics is called the dismal science is because the answer to most economic questions is no! What I mean by that is, economic, you don't know what economic development is! You got a billion dollar university over here and why don't you go ask somebody! Economic development is an economic concept is based on comparative advantage. And the other side of not following comparative advantage is you're going to eat your own tail! And what that means is, is that you continue to tax people and tax people and thinking that you're growing, and al you're doing is destroying the people that you're getting' the money from! My goodness, I'm just ... I've never been here before! And this is amazing to me! Hayek: Thank you for your comments. We'll close the public hearing at this time. (bangs gavel) b. CONSIDER A RESOLUTION Dobyns: Move the resolution. Payne: Second. Hayek: Moved by Dobyns, seconded by Payne. Discussion? This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 35 Throgmorton: I wonder, uh, during our work session, Tom, uh, Markus our City Manager, um, made some comments about the, uh... (both talking) pay for this difference between the ... the TIF bond and the GO bond. I wonder if you could go over that for us, Tom. Markus: Of course there's a difference in the cost between, uh, revenue bonds and GO bonds, and so we went to Mr. Moen and said that, um, we thought it'd be appropriate that he made up the difference. We calculated the present value and um, he's agreed to participate at $170,000, which is the present value. So ... that equalizes the difference between the GO and revenue... financially. Hayek: Thanks for that clarification. Throgmorton: Just to put it in different words. So by going this revenue bond route, or... Markus: ... same cost. Throgmorton: Uh, we'll be basically spending the same amount of money as ... as if we went the GO bond route, right? (several responding) Dobyns: The same cost to the taxpayer. Throgmorton: Well, I ... I'd like to ... uh, say something here. The first thing I noticed is intensity of feelings, and I ... I really respect what you had to say, Mr. Downey? Is that right, your last name is Downey? (responding from audience) Uh ... uh, you know, we ... we might disagree about particular facts, but what I'm very conscious of is the intensity of feeling, and that matters, and in my personal judgment that suggests that, uh, and I ... I wrote about this in my guest opinion, that we need to do more with regard to our process to engage with ... folks in the public so that people understand why we're proposing to ... to issue a significant TIF, uh, significant subsidy involving TIF, for a particular project, and to hear the questions that people have before we make a vote, before we vote on the TIF, and in my judgment that has been a missing element in our process up to this point. That said, given the structures of these decisions we've had to make ... we have to make tonight, I will vote yes for this ... for the ... for the TIF bonding mechanism that's before us. Do we have ... we already have a motion, don't we (several responding) All right. I'll vote yes for the motion (noise on mic) but given ... the context in which our decisions are being made. Champion: Well I want to say that I value this petition but I also value this project, and I think I said in the same newspaper article that somebody was quoting me on that the buck stops here. I still have to make the decision and I have to make the decision that I feel is the best one, that I can make. You may disagree with me, and I've got to frankly tell you I've never seen such strong emotion. I actually have felt really insulted up here, and I've been on this council for 15 years, and that has never happened! Even though people have disagreed with me or agreed This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 36 with me, and I ... I'm sorry that I don't agree with you and I'm sorry that you don't agree with me, but I am definitely going to support this project. Hayek: The... the... you can have a ... a philosophical, uh, disagreement over ... over economic development policy, over the use of TIF, um, that sort of thing. I understand that. Because there are many perspectives on the issue. Um, and I've been studying this for ... for as long as I've been on ... on the Council and I'm aware of a multitude of...of perspectives on the issue. Uh, but when it comes to ...to TIF, to this ... this particular, um, tool that, of the few tools that are made available to municipalities for... for economic development, I ... I think, I mean, a lot of times people say, well ... why should we give money, why should we give public money to a ... to a wealthy person or a wealthy entity, corporation or whatever, uh, for a particular project. And... and I heard that again tonight, and... and I don't believe that's the analysis. Um, I think that the analysis is, and it's what I believe we went through, is would this project be, uh, launched without the participation of the public's money, as we've, uh, embedded in these documents. Would ... would the project happen? Not, should we give money to somebody of means. And the analysis that staff made, that was, uh, that ... that was concurred with by our outside consultants, and then vetted through our Economic Development subcommittee in a very public process and then brought before the entire Council. Um, for ... for our deliberation and discussion was that this particular project, which we see as bringing many benefits to the community, not only downtown but ... but throughout the community, um, this particular project would not happen without our participation, and ... and that's the basis for our decision. And that's a different analysis, but I think it's one that matters, because I think it's often lost in the argument. So, I'm supportive of this and I just wanted to clarify that. Further discussion? Roll call, please. Item passes 7 -0. Do we need to take a break or can we ... finish out here? I don't think there's a lot left but ... you never know. Keep going? (several talking and laughing) Okay! This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 37 ITEM 10. CONSIDER A RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CONSTRUCTION OF THE 2012 MUSCATINE AVENUE WATER MAIN IMPROVEMENTS PROJECT. Champion: Move the resolution. Payne: Second. Hayek: Moved by Champion, seconded by Payne. Uh, discussion? Uh, for the public's information, uh, the Engineers had estimated this project would cost around $937,000. Uh, Public Works and Engineering recommends awarding the contract to Carter and Associates of Coralville, who came in at just over $714,000. Further discussion? Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 38 ITEM 11. CONSIDER A RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST A CHAPTER 28E AGREEMENT BETWEEN THE CITY OF IOWA CITY, IOWA AND THE CITY OF CORALVILLE, IOWA FOR THE PROVISION OF ANIMAL CARE SERVICES. Mims: Move the resolution. Dickens: Second. Hayek: Moved by Mims, seconded by Dickens. Discussion? Markus: Uh, we've asked Simon Andrew, a budget analyst, to go through this agreement and kind of bring you up to date. It's the next two items on the agenda so one is operational, one is capital improvements, and I thought because of where we're at in this process, it'd be good to update you at this point, so, Simon, go ahead. Andrew: Thank you. Like Tom said, Simon Andrew, budget analyst with the City. I'll be brief on the update and then we'll get into the specifics of these contracts. Um, schematic design is underway. Uh, expects to be completed by the end of the summer. Uh, we're under contract with Neumann Monson Architects, um, pursuant to the, uh, RFQ process from last fall. Um, and Jackson and Ryan Architects, which did the programming study early on in the process are also still on board as consultants. Um, again the facility is approximately 1200 square feet, and really next month the whole process will start moving a lot quicker as we have more detailed square footage estimates and cost estimates. We can move forward with the, uh, fundraising effort with the Foundation's capital campaign, and move forward with the improved project requests, uh, with FEMA. Uh, the site is here. It is on the Public Works' complex site, um, right behind the salt storage building, right in here, um, straddling that road. Again, FEMA funding — FEMA has obligated $1.4 million for the project. Uh, that includes a 10% match from the State. Um, some of these funds are obligated for non ... uh, construction costs, um, including the demolition of the former facility. So, we, again, at the end of, uh, next month, once we get our improved project request in we can ... uh, give you a more accurate, uh, synopsis of where project costs lie and how much FEMA funds will go to the construction of the new facility. Uh, the Friends of the Animal Center Foundation have committed to raising $1 million. Uh, they intend to pay this out over, uh, five annual installments starting next year, of $200,000 apiece. Um, and they have committed to accelerating this payment, uh, schedule... they will accelerate it if...if their fundraising comes in more quickly than anticipated. Um, and again, at the end of the next month. They're really chomping at the bit to get moving on this project so ... urn ... as far as our neighboring jurisdictions go, uh, Coralville on June 26`x' did approve the two contracts that are before you tonight. The, uh, you'll be voting on with Items 10 and 11...11 and 12, rather. Um, Johnson County, University Heights, and the This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 39 University of Iowa have all submitted letters of intent, um, that in principle agree to the cost sharing agreements that are before you with Coralville. Um, and the agreements with these identical terms have been submitted to all of these jurisdictions for their review. Uh, Item 11 is the operational agreement. Um, this is ... almost exactly the same contract that we're currently under with Coralville. It distributes costs, uh, based on the percentage of animals that come from Coralville. Uh, a three -year average is used and then applied to the Center's budget for the following year, and it does not include field services. It is just for animal sheltering services. And then moving on to Item 12, the capital cost sharing agreement, again, takes the same percentage, um, of usage of the facility and applies it to the net project cost for, um, construction of the new facility. And net project cost is the cost that's left after FEMA reimbursements and after fundraising. Um, so we are essentially sharing FEMA reimbursements with the other communities that are, uh, coming on board for the project. Okay, so the next step, tonight's agenda items are the Coralville contract, um, and I can answer any questions you have about the specifics of those contracts, beyond what I've just described. Uh, August 15th is when we've requested formal action from all the other jurisdictions. Um, and I know that University Heights was discussing it tonight, so ... urn ... they'll have some news on that moving forward, and again, August 31 st, by that point we expect to have schematic design completed and we can really get moving with the other, uh, moving parts to the project. Um, and we're still targeting early calendar 2015 for completion of the project. Of course there's a lot of design work, uh, to go on in the meantime and going out for bid, but um ... that is the target estimate for completion of the facility. Dickens: Is this smaller than the original ... I know there was kind of original `original' plans. Is this much smaller than the original? Andrew: Yeah, by about 4000 interior square feet. Um, the original programming study was in between 16,000 and 17,000 square feet, depending on, um, if the basement was included or not. Um, that has been scaled back to 12,000 square feet. Dickens: Is that based on the agreements that we've got in place and... Andrew: Part of it was, some of our capacity won't... current capacity won't be coming to the facility anymore, um, so we did scale it back, um, to that end and there was also some cost concerns and getting other jurisdictions on board. They had some concerns about the overall cost of the facility, as it was originally, um, as the original concept was presented. Markus: And ... and let me interject. If in fact there is going forward, um, once we get to bid, you know, we're probably, what, a year away from, uh, or less from bid on these things. Lot can change in the bidding environment by the time we get to that point, so the ... I think the attorneys have done a masterful job of putting in adjustment provisions, if in fact those conditions occur. Um, the other thing I would say, um, because we're going to talk really about both agreements, is the This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 40 operational provisions. We will, um, invite the opportunity for the participants to sit down and discuss our operations on an annual basis, and the way, uh, the language is drafted, we will make a `good faith' effort to consider those, um, ideas, recommendations, opinions about how we operate and adjust our operations, um, to accommodate that as best we can. Ultimately, as the owner, uh, we have to be responsible for how this operates, and so the final decision rests with us, but there is language in the agreement that really makes, I think, a very sincere effort to try and take into consideration. You'll recall not just anecdotally but, uh, a number of stories that, you know, cause some concern with some of the participants in the past, and I think going forward we have to make a better effort to try and accommodate our operations to the concerns that are being expressed by these participants in this (mumbled) and I think the agreement does a very good job of trying to accomplish that. So ... at this point, we're hopeful that the agreements, um, as drafted and as approved by Coralville, uh, are approved by the other agencies, um, but there's... there's still some unknowns and we've tried to draft the language to take consideration of those unknowns. I know when you looked at the slides you probably saw the issue of, um ... donations coming in at about $200,000 a year. Well, quite frankly that's a cost, you know, that we're going to have to, you know, adjust for and take care of to a large extent. There'll be some proportionality being distributed to others, but ... that makes it tougher to pull this all off. Not all those funds are going to be there right up front when you ... when you'd like to have (several talking) the contractor expects to get paid, so ... the City, I think, again, has been pretty generous in how we're doing this. You know, all of the costs are after the grants. They're after the land. We're providing the land for all of this. So we aren't charging in terms of the capital expenses, uh, to the other jurisdictions those costs, so ... I would argue we're still being generous in this process. I would guess that the reaction ... if negative from some, has been that they aren't used to paying at that level, and I would argue that they haven't been paying what the cost is, and our taxpayers have been subsidizing that and we're trying to balance that table. Dickens: Is there room for expansion and ... if there...if it does expand and we get other jurisdictions that want to join... Markus: I think once this is up and operational, um, I think that, yes, there is and I think that's part of the design feature is to allow for expansion, and um ... why I don't want to, you know, within two years or three years have to jump back into expansion, uh, we're trying to accommodate for a degree of growth, um, I think it would be nice to see some of the communities return to the ... to the operation at some point in the future, and I ... I think you might see some of that. So yeah, we ... we've built that idea into the concept. Hayek: Good! Thanks, Simon, and thanks, Tom. Discussion among Council? Well, I want to thank staff. You've been working on this, uh, for... for quite a long time, and this represents a major step forward in the process. Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 41 ITEM 12. CONSIDER A RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST AN ANIMAL SHELTER FACILITY CAPITAL CONTRIBUTION AGREEMENT BETWEEN THE CITY OF IOWA CITY, IOWA AND THE CITY OF CORALVILLE, IOWA. Champion: Move the resolution. Payne: Second. Hayek: Moved by Champion, seconded by Payne. Discussion? Again, this is just the capital side of the, uh, project. Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 42 ITEM 13. CONSIDER A RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE CITY MANAGER TO SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR CAR SHARING SERVICES FOR THE TRANSPORTATION SERVICES DEPARTMENT. Markus: This is, uh, a two -fer item. You'll recall this was on one of the items on the pending list for some time and we have been working on it, uh ... Councilor Throgmorton had raised the question about how that's progressing, and so rather than run it back through work session, we said (noise on mic) we got the RFP out; we got the contract ready; let's bring it to Council. So Chris is going to run through this for you and explain the details of it (several talking) Mims: I'll move the resolution. Hayek: Yeah. Dobyns: Second. Hayek: Moved by Mims, uh, seconded by... Dobyns: Dobyns. Hayek: ...Dobyns. Mr. O'Brien! O'Brien: Thank you. Uh, Mayor Hayek, City Council, um, here tonight for a brief overview of the car sharing, uh, project that we've been working on, as well to answer, excuse me, any outstanding questions. Uh, the memo that I submitted, uh, very vague, I know, when ... when I put it out. Just kind of some highlights. Uh, we weren't quite finalized with the details, so some of that, until we finish with the purchasing process, couldn't be ... couldn't be put into ... into that document. So I have some of those details now that we're, um, we're to the point of... of finalizing the negotiations. Uh, last spring /summer is when we began this project, and it was a ... a project that we're really excited about. It's a joint project between the University of Iowa and... and the City of Iowa City, uh, to bring car sharing services to this community, uh, in the memo that 1, uh, had in the packet. I kind of gave a brief overview of what definition of what car sharing was. Um, and basically the difference between that from your ... your normal car rentals is ... uh, the ability to rent for short-terms — per hour — um, rather than a full daily rental, as well as having access 24/7 to make reservations, depending on what you might need that car for, and uh, where we think it's going to, um ... I think suit the community is in the, people that live downtown, people that do not want to have the operational costs of a vehicle, people that utilize transit for their, um, or bicycles or pedestrian access and they might have a doctor's appointment or need to get groceries or uh, emergency comes up and they have to take their child to, uh, pick up their child from daycare and they don't have access to a vehicle. Uh, This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 43 these vehicles will be spread throughout, uh, the community, as well as campus, uh, and provide access for that. Um, we went through the RFP process. The University of Iowa's the lead agency. We ... we were a, uh, I guess a sub, um, we were part of the joint ... but they actually led it, the actual project. Ran the RFP through, um, there were two submittals to that RFP and the City and University, there was a team of, um, individuals that scored that from both the City and the University, so it was a joint process. Um, and Zip Car received the highest score, um, from everybody across the board. Um, just a little brief history on Zip Car for those... some of you may have done some investigation. Um, they were established in 1999. Um, in the memo I had 500,000. I just found an article that was written today that states that their ... their membership is now over 600,000. Um, in addition to 6,000 businesses; nearly 10,000 vehicles; and they're spread throughout 35 states. Um ... if, once this is fully signed Iowa will be the 36th state. There are currently no Zip Cars in ... in Iowa. Um ... they have seven ways to make a reservation. There... there's 24/7 access, um ... and as I stated in the memo, one ... one Zip Car could take the place of up to 20 personally -owned vehicles, so ... it's certainly a sustainable project that we engaged in. Um, one of the reasons to have the University involved and one of the reasons that I think they were, um... such an excited participant is, it changes the rental, um, status from 20, or the age from 21 down to 18. So the students are allowed to participate in this, which might mean that students coming to campus can forego bringing a vehicle, that they can utilize these vehicles if they need them for ... for whatever errands they may need to run. And that is one of the differences in ... in this process. The insurance, the fuel, the maintenance, the cleaning, all that is included in the hourly rate that you pay. So there are no additional... additional costs. Uh, this would be a three -year contract with renewable terms up to two additional years for a total of five. Uh, we're looking at ten vehicles to start, and there were, um, it's a mix, and they're all fuel efficient. Nissan Sentra, Ford Focus, Honda Civic, Honda Insight, um, and the way they add vehicles is once you get to 38 to 42% usage, they up the vehicles so that they're... they're available on campus (mumbled) and in the community. Uh, the rates range hourly from $7 to $9 per hour. So if you needed to rent it for an hour ... it depends on what vehicle and what day of the week. Uh, weekends are a little higher. Uh, and they also offer daily rates and ... and weekend rates, as well. Um, I think one of the big questions are what are the City's commitments to this project. And why hasn't this been done earlier. Uh, in past years, one of the barriers to entry for this was there was always a ... the City or the University would have to put up a guarantee. So there'd be big up -front costs in order to secure these vehicles, um, and right now the commitment that we have is ... um, staff time for marketing, as I pointed out in the memo, and ... and parking spaces, and when I said parking spaces, those aren't being donated. There's actually a charge for those. Uh, they're paying 50% of the fee up... for year one; 75% in year two; and then they're back ... they're at market rate in year three. Uh, and then market rate moving forward. So ... um, there's membership fees, uh, for personal use and business accounts. Um, ranging from $35 to $60, depending on when you sign up. Um, and then you also get credited. So if you spend $35 for your fee, you get This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 44 a $35 credit that you can use for your driving charges, so ... um, for your initial signup. Um, that's kind of a brief overview that I have. If there's any questions... Payne: Is that fee per year or per month or... O'Brien: That's annual. Payne: Okay. O'Brien: That's an annual fee. I'm sorry. Mims: Have you determined where the parking spaces are going to be... O'Brien: ...being we're just finalizing (mumbled) we have not actually done the walk through with them, um, until we award it, nobody wants to come and mark out spaces. Mims: Sure. O'Brien: Um, I think both the City and University have some ideas. I think it'll be a mix of on- street, for the City, on- street and then some off - street, um, and then a ... the big thing is word of mouth and uh, the visual aspect of seeing the cars, so ... you know, initially especially they'll be in ... in prime locations, so that they're highly visible, so that the use gets built up... Mims: Sure. O'Brien: ...and then we'll ... we'll probably look at different spaces after that. Mims: Thank you. Hayek: Any other questions for Chris? Mims: I think it's a great project. O'Brien: Yeah, we're really excited about it. I think it's just another mode of transportation that we can add and... Mims: Yeah! Hayek: Yeah! Good work! O'Brien: Thank you. Hayek: Thank you. Discussion among Council? Roll call, please. Item passes 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 45 ITEM 14. ANNOUNCEMENT OF VACANCIES. Applicants MUST reside in Iowa City and be 18 years of age unless specific qualifications are stated. Hayek: A new announcement of a vacancy on the Youth Advisory Commission. We need a student from West High School for that. Karr: Mr. Dobyns, did you wish to state something regarding advertising... for the Youth Advisory position? Dobyns: Um... Mims: Delay it? (laughter) Karr: Vacancy (several talking) you ... you had indicated a potential of waiting until the next Council meeting, when we'll discuss boards and commissions in general (both talking) Dobyns: Oh, that's right, yes, thank you! (laughter) Thank you, Marian! (laughter) Mims: It's getting late, Marian! (several talking and laughing) Dobyns: No, I recommend we defer it, um, because of some things that I want to talk about later on regarding that (mumbled) next session we're going to be talking about boards and commissions in general. So I'd like to hold the advertisement of that position, pending that discussion. Hayek: I shall retract said statement forthwith! (laughter) We'll take that up, and maybe come back and advertise for that. Uh, but that leaves still a number of, uh, positions that we want to fill, including, uh, seven vacancies on the, uh, newly formed... forming ad hoc Diversity Committee; uh, one vacancy on the Airport Commission; two vacancies in the Airport Zoning Board of Adjustment; two vacancies in the Airport Zoning Commission; one vacancy on the Human Rights Commission; and uh, there's another vacancy on the Youth Advisory Commission that I will hold back on, uh, for now. Uh, applications for what I just mentioned must be received by 5:00 on Wednesday, uh, July 25tH This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 46 ITEM 15. COUNCIL APPOINTMENTS. Applicants MUST reside in Iowa City and be 18 years of age unless specific qualifications are stated. Hayek: Uh, we have, uh, three spots open on ... on Housing and Community Development Commission and earlier this evening, uh, the Council agreed to appoint... reappoint Andrew Chappel and Rachel Zimmerman -Smith to that, uh, which would still leave one vacancy, and we encourage the public to look, uh, for, to look at that vacancy as a possible way of volunteering, and then on the Police Citizens Review Board, uh, earlier this evening we agreed to reappoint Melissa Jensen to another term on that, which also leaves one spot, uh, that we need to fill and we encourage the public to look at that vacancy. Is there a motion on the, uh, reappointments? Mims: So moved. Champion: Second. Hayek: Moved by Mims, seconded by Champion. Discussion? Payne: Did you ... did I zone out, and did you comment about the fact that it ... one of...the gender requirement and that's why we're not appointing both people that applied? Hayek: You may have zoned out, but I didn't mention that. (laughter) Payne: I thought I was (several talking) Hayek: Okay! Is there a motion on the floor? Mims: Yes! Hayek: Okay! Uh, discussion? All those in favor say aye. Opposed say nay. Motion carries 7 -0. This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 47 ITEM 17. CITY COUNCIL INFORMATION Hayek: We'll start down ... with you! Throgmorton: We skipped 16. Dobyns: I'm sorry, what? Hayek: No, we don't ... we, uh... Throgmorton: We don't need to. Hayek: We don't need it, yeah. Throgmorton: Right. Sorry. Hayek: Just set up there if we run out of time on the front end. Dobyns: I just wanted the public to know, um, and with Jeff here from the School Board, there are opportunities for multiple jurisdictions to kind of work on problems with each other, and I have been talking with City staff about, um, the school -age kids in the, uh, Miller Orchard area that have to go all the way up the steep Benton hill, past the old Roosevelt School and to the new, uh, school of Horn and um, we've been thinking of some things where the City can actually, you know, collaborate with the School District on (mumbled) you know, it looks like the School District has other options that they're looking at for that. Um, but I'm just really glad that our City staff kind of offered a hand to the School District, um, you know, to help with problems that they would have and I think it's a nice example of collaboration. I appreciate City staffs' work on that. Markus: Thank you! Payne: I don't have anything. Dickens: Just like to thank all the volunteers that worked on the art, or Jazz Fest, uh, over the 4th, that weekend before, and Marian for getting the great, uh, display of fireworks off again, and it ... I've heard nothing but good comments on that. Hayek: Susan? Mims: Nothing. Throgmorton: Yeah, I have a couple things I guess. The first thing I'd like to do is to pick up on the School Board comment, uh, Rick, and acknowledge Jeff McGinnis' presence here. It's, uh, I hope you found this to be a really rewarding experience (laughter This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 48 and several talking) Uh, but I'd also, uh, like to praise the recently announced targeted home rehabilitation assistance program, uh, which, uh, I don't know, somebody else could describe much better than I could, but it's targeted to specific neighborhoods, uh, and provides funds for the rehabilitation of homes for people who are below a certain income level. I don't know what ... what exactly it is. Uh, and uh, and ... and there's, uh, what's the right word here, the right phrase? Um, forgivable loans if you... if you retain ownership of your home for an extended period of time. Markus: (both talking) Right. Throgmorton: So this is a real positive thing. I'm really excited about it. The last thing I'd like to mention is that, uh, next ... this coming weekend, uh, we'll be holding the Iowa City Book Festival. Uh, so I'd like to, uh, draw people's attention to it, urge people to attend, take advantage of the opportunity to meet with various authors, uh, hear readings, learn more about the, uh, book friendly environment we have here, and I should tell you too, uh, fellow Council Members, that uh, the City of Literature board of directors had an extended discussion about how to, uh, kind of ramp up the book festival and make it a much more significant event as time goes on, so you'll be hearing more about that. Hayek: Great! Uh, I too wanted to thank Jeff McGinnis from the School Board for ... for attending our meeting this evening. Um, I also want to just indicate the ... the Metro Coalition, which as you know is the lobbying group of the ten largest communities in..in the state, holds a retreat later this week and we'll be attending that and going over the prior, uh, legislative session and talking about what can be anticipated for the legislative session, uh, early next year. Uh, and then lastly I just wanted, uh, to mention, last weekend at...at the Englert Theater and maybe some other locations, there was a space adventure or some, I forget the exact title of it but a... a local initiative designed to, uh, drum up interest in... in engineering, space exploration, things like that, uh, largely directed at youth, and it was really good. I took my .... my 3- year -old and my 5- year -old to it. They got to go into this blown up kind of tent on the stage of the Englert and look up at some stars and it was going pretty well for about 20 minutes until one of `em had to go to the bathroom so we (laughter) cleared out and that was it, but it was ... it was a good event and I just want to express thanks for those who were involved in that project. So... This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012. Page 49 ITEM 18. REPORT ON ITEMS FROM CITY STAFF. a) City Manager. Hayek: City Manager? Markus: Nothing to report. Fruin: Yeah, just real briefly I wanted to point out, if you noticed when you came in the door there's a QR code now, uh, on the entryway to, uh, this room, as well as the Helling Conference Room. This is something our, um, communications staff and Adam and Marian have been working on, along with going wireless. So, uh, you or anybody from the public will be able to scan that, uh, with your mobile device or your i -Pad at any time, and get the agenda for the appropriate meeting, uh, that you're having, so whether it's a Council meeting or Economic Development or anything else that might have a posted agenda, it'll always be available at the door if you have a... a mobile device. (several responding) Markus: And you have that app for that code reader, you can just run that by. Fruin: Zap it and it's there at your fingertips! Mims: Cool! Hayek: Great! This represents only a reasonably accurate transcription of the Iowa City City Council formal meeting of July 10, 2012.