HomeMy WebLinkAbout2014-06-30 Resolution2a(2)
Prepared by: Marian K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5043
RESOLUTION NO. 14 -200
RESOLUTION TO ISSUE CIGARETTE PERMITS
WHEREAS, the following firms and persons have made application and paid the mulct
tax required by law for the sale of cigarettes,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY,
IOWA, THAT: the applications be granted and the City Clerk is hereby directed to issue
a permit to the following named persons and firms to sell cigarettes:
Earthly Escape — 114 1/2 E. College St.
Hala Hala Hookah — 327 S. Gilbert St.
Passed and approved this 30th day of June
MAYOR
ATTEST:
CITY-CLERK
20 14
Approved by
City Attorney's Office
It was moved by Mims and seconded by P
Resolution be adopted, and upon roll call there were:
the
AYES:
NAYS: ABSENT:
x Botchway
x
Dickens
x
Dobyns
x
Hayek
x
Mims
x
Payne
x
Throgmorton
2a(5)
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 14 -201
RESOLUTION SETTING PUBLIC HEARING FOR JULY 15, 2014, ON A
PROPOSAL TO CONVEY A SINGLE FAMILY HOME LOCATED AT 316
DOUGLASS COURT.
WHEREAS, the UniverCity Neighborhood Partnership Program is a joint effort between the
University of Iowa and the City to encourage home ownership and reinvestment in designated
neighborhoods surrounding the University of Iowa; and
WHEREAS, the City purchases rental units located in designated neighborhoods surrounding
the University of Iowa, rehabilitates them, and then sells them to income - eligible buyers; and
WHEREAS, the City purchased and rehabilitated a single family home located at 316
Douglass Court, Iowa City; and
WHEREAS, the City has received an offer to purchase 316 Douglass Court for the principal
sum of $85,000 (the amount the City paid to acquire the home), plus the "carrying costs ", which
are all costs incurred by the City to acquire the home, maintain it and sell it, including
abstracting and recording fees, interest on the loan to purchase the home, mowing and snow
removal, utilities, real estate taxes, and any costs in excess of $50,000 to repair and rehabilitate
the home; and
WHEREAS, this sale would provide affordable housing in a designated area surrounding the
University of Iowa; and
WHEREAS, this sale is conditioned on the family securing adequate financing for the purchase
of the home.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that:
The City Council does hereby declare its intent to convey a single family home located at
316 Douglass Court, Iowa City, Iowa, also known as Lot 26, Wise Addition, Iowa City,
Iowa, for the sum of $85,000, plus the "carrying costs ".
2. A public hearing on said proposal should be and is hereby set for July 15, 2014, at 7:00
p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street, Iowa
City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter
as posted by the City Clerk, and that the City Clerk be and is hereby directed to cause
notice of said public hearing to be published as provided by law.
Resolution No. 14 -201
Page 2
It was moved by Mims
adopted, and upon roll call there were:
and seconded by Payne the Resolution be
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
Passed and approved this 30th day of June , 2014.
MAYOR
ATTEST: 2& .�
CITY
Approved by
City Attorney's Office
Prepared by Susan Craig, Library Director, Iowa City Public Library, 123 S Linn St, Iowa City, IA 52240 (319) 356 -5249
RESOLUTION NO. 14 -202
RESOLUTION AMENDING THE BUDGETED POSITIONS IN THE IOWA CITY
PUBLIC LIBRARY BY ELIMINATING ONE .50 LIBRARY ASSISTANT III AND
ADDING ONE .50 LIBRARY ASSISTANT I.
WHEREAS, Resolution No. 13 -72 adopted by the City Council on March 5, 2013
authorized permanent positions in the Iowa City Public Library for FY14; and
WHEREAS, a staff vacancy provides an opportunity to make personnel changes; and
WHEREAS; staffing needs in the Development Office have changed; and
WHEREAS; the proposed staffing changes result in cost savings and will better reflect
current job needs and assignments; and
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY,
IOWA THAT:
Effective June 30, 2014 the budgeted positions at the Iowa City Public Library be
amended by:
1. Elimination of .50 Library Assistant III, AFSCME grade 8.
2. Addition of .50 Library Assistant I, AFSCME grade 6
Passed and approved this 30th day of June , 2014.
,Approved by:
ATTEST:
CIT LERK City Attorney's Office
2a(6)
Resolution No.
Page 2
14 -202
It was moved by Mims and seconded by Payne the
Resolution be adopted, and upon roll call there were:
AYES: DAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
Prepared by Jennifer Jordan, Recycling Coordinator, 3900 Hebl Ave. SW, Iowa City, IA, 52246, (319) 887 -6160
RESOLUTION NO. 14 -203
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST TO AN
AGREEMENT FOR RECYCLING SERVICES WITH CITY CARTON COMPANY, INC.
WHEREAS, the City of Iowa City wishes to continue to improve its curbside and drop -off site recycling
programs; and
WHEREAS, the City of Iowa City issued a Request for Proposals for Recycling Processing Services;
WHEREAS, City Carton Company, Inc. responded to the Request for Proposals; and
WHEREAS, the City of Iowa City has previously contracted with City Carton Recycling, Inc. for recycling
processing services; and
WHEREAS, City Carton Recycling, Inc., meets the City's recycling processing service needs; and
WHEREAS, the parties have negotiated a one year agreement, with an option to renew the contract for up to
four, one -year terms at the City's discretion.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY THAT
1. The Mayor is authorized to sign and the City Clerk to attest to the attached Agreement for Recycling Services
for recycling processing services with City Carton Company, Inc.
2. The City Manager is authorized to exercise the contract renewal option, as set forth therein.
Passed and approved this30th day of June 2014.
MAYOR
ATTEST:
CITY LERK
It was moved by Mims
upon roll call there were:
AYES:
Appr ved by:
City Attorney's Office � /;FSAcr
and seconded by Payne that the Resolution be adopted, and
NAYS:
ABSENT:
X Botchway
X Dickens
X Dobyns
X Hayek
X Mims
X Payne
X Throgmorton
AGREEMENT FOR RECYCLING SERVICES
This Agreement is being made and entered into between the City of Iowa City ( "City ") and City Carton
Company, Inc. [aka City Carton Recycling] ( "Contractor ") at 3 E. Benton Street, Iowa City, Iowa for services
in connection with recycling.
WHEREAS, City desires to remove and recycle certain materials in a manner consistent with regulations
developed by the U.S. Environmental Protection Agency, the Iowa Department of Natural Resources and
consistent with good environmental practices; and
WHEREAS, it is City's intention to maximize the diversion of clean Recyclable Materials from the Iowa City
waste stream via legitimate recycling markets; minimize the residual material landfilled after processing;
form a cooperative partnership with Contractor to maximize public education, community outreach and
other activities; and maximize per -ton revenues derived from the sale of the Recyclable Materials and
minimize transportation and overall costs.
WHEREAS, the City currently utilizes a multi- stream recycling process for the collection of recyclable
materials through both a curb -side and drop location program, but City may desire to utilize a single- stream
process at some point during the course of performance of this agreement; and
WHEREAS, Contractor is willing and able to receive recyclables from the City and provide recycling services
pursuant to either a multi- stream or a single- stream process; and
NOW THEREFORE, in consideration of their mutual promises, City and Contractor agree as follows:
SECTION I. DELIVERY AND ACCEPTANCE OF RECYCLABLE MATERIALS
1. DELIVERY. City shall deliver all Recyclable Materials, defined below, to Contractor at its facility
at 3 E. Benton Street, Iowa City, Iowa, or to another location as the parties may agree
(hereinafter "Contractor's facility ").
2. SORTING PROCESS. Unless the City exercises its option to utilize a single- stream recycling
process as described below, the Recyclable Materials shall be sorted according to a multi -
stream process. The City reserves the right to utilize a single- stream recycling process, as it
may determine appropriate in its sole discretion. In the event that the City should so choose, it
will notify the contractor at least 90 days prior to making the change.
3. ACCEPTANCE: Except as stated in Paragraph 5 below, and unless otherwise agreed upon by
the parties hereto, Contractor shall provide recycling services to the City of Iowa City for the
following recycling commodity streams, hereinafter called "Recyclable Materials:" newspaper;
magazines; brown paper bags; telephone books; catalogs; office paper; junk mail; envelopes
(any type); corrugated cardboard; chipboard; wet strength carrier stock (chipboard); #1 -7
plastic bottles and containers (no Styrofoam); tin /steel cans; pie tins; aluminum foil and
aluminum cans, mixed green and brown glass, clear glass, hard and soft cover books, plastic
bags, aseptic and gable top cartons. Upon acceptance of a delivery load, Contractor assumes
all responsibility for said Recyclable Materials.
4. LABOR. Contractor shall provide all necessary labor, equipment and materials for performing
services described herein. These shall be considered an integral part of the service, and no
additional compensation will be paid therefor.
5. REJECTION OF A LOAD. A delivery load containing more than de minimis hazardous or toxic
materials, or a load containing more than 1.5% by weight of non - Recyclable Materials shall be
2
rejected by Contractor as follows: Contractor shall inspect each load, and if Contractor suspects
the load contains more than 1.5% by weight of non - Recyclable Materials, that load shall be
deposited in a temporary storage area for inspection by the City. If the City confirms that the load
contains more than 1.5% by weight of non - Recyclable Materials, said load shall be transferred to
the City Landfill by Contractor, and the City shall be responsible for reimbursing Contractor for all
costs of hauling and disposal, and shall pay Contractor an additional $150.00 per ton for
additional handling. If the City does not confirm that the load violates this paragraph, Contractor
may remove the non - Recyclable Materials from the load, in the presence of a City representative,
to determine the actual weight of the non - Recyclable Materials. If a violation of this provision is
confirmed through this process, the load will be rejected as set forth above. If the load is found to
comply with this provision, the load shall be accepted by Contractor and processed accordingly.
For purposes of this provision, materials with significant food contamination and wet materials are
considered non - recyclable.
6. DROP -SITE. Contractor shall provide a drop -off site suitable for the unloading of Recyclable
Materials from refuse packer trucks, side loader trucks and dump trucks, as delivered by City or
its agents, in order to ensure total storage of all Recyclable Materials delivered to the Contractor.
7. SCALE, RECORDS. The City's hauling vehicles shall be weighed on the Contractor's scale,
which shall be certified by the State of Iowa, upon entry to the Contractor's facility, and shall be
weighed again when unloaded and prior to leaving the facility to determine the net weight of the
Recyclable Materials delivered. A copy of the scale ticket will be given to City's driver at that time.
Records of net weight of Recyclable Materials delivered shall be forwarded to the City on a
monthly basis, and shall be deemed accurate and accepted unless objected to by City within ten
(10) calendar days of receiving the monthly records. The Contractor shall maintain accurate
cumulative records for the duration of this Agreement, and shall provide such records to the City
within a reasonable time after City's request.
8. ACCESS: Contractor will provide City with access to Contractor's facility during City's normal
working hours of 7:00 AM to 3:30 PM, Monday through Friday. This provision in no way limits
Contractor's ordinary hours of business or hours of operation apart from City's use.
SECTION II. RECYCLING OPERATIONS
The Contractor shall recycle materials following generally accepted standards in the
industry, which may include a variety of processes, in a safe and good faith manner.
2. Upon acceptance of City's Recyclable Materials, Contractor agrees to carry out the delivery,
packaging, crushing and /or any other preparation according to standard operations of the
recycling industry. Parties acknowledge Contractor may sell said Recyclable Materials to bona
fide users or sell back into the manufacturing stream for recycling purposes.
3. The Contractor's recycling operation, including storage of materials to be recycled and of
recycled materials, shall be conducted on a site which meets the requirements of all applicable
federal, state and local laws and regulations, including zoning ordinances.
4. Parties agree that Contractor shall be responsible for its own equipment in order to satisfactorily
perform this Agreement, and that City shall in no way be responsible for the method or means by
which material is recycled.
5. The Contractor shall be responsible for obtaining all permits and licenses required by city, state
and federal law, and pay all related fees. Contractor shall further be responsible for the payment
of any fees and expenses related to the disposal of any waste material arising from its processing
of accepted Recyclable Material, and shall dispose of such waste in a manner consistent with all
3
applicable federal, state and local laws, including rules and regulations promulgated or enforced
by the U.S. Environmental Protection Agency, the Iowa Department of Natural Resources, and /or
local solid waste disposal facilities. This provision does not apply to those materials rejected by
Contractor pursuant to Section I, Paragraph 4 above, in which case all expenses related thereto
shall be attributed to the City as set forth above.
6. The City reserves the right, but not the duty, to inspect any equipment, facility or service used
by Contractor in providing services pursuant to this contract and, likewise, the right to inspect,
make, and keep copies of all books and records maintained by the vendor which relate to the
services provided by Contractor hereunder, at any reasonable time and upon reasonable
notice. Such inspections shall be conducted in a manner to minimize disruption to Contractor's
business with 48 hours notice by City to Contractor. Contractor shall cooperate fully with the
City during an inspection.
SECTION III. CITY'S RESPONSIBILITIES
The City may establish public recycling "drop off' locations in Iowa City for the public's disposal of
residential and commercial Recyclable Materials, and will designate these locations for said use,
with notice to the public. Nothing in this agreement prohibits Contractor from establishing a public
recycling drop site at its facility, but managing and maintaining said site, and processing the
materials deposited thereon are the sole responsibility of the Contractor and are not part of this
agreement.
2. The City shall provide bins of sufficient capacity and quality at its drop -off locations to protect the
Recyclable Materials from adverse weather. City also agrees these bins shall include instructions
and notice to the public on appropriate use of the bins, and that these notices will be prepared by
City in cooperation with Contractor.
3. The City shall be responsible for collecting any Recyclable Materials deposited at any and all of
its drop -off locations, and may provide curbside collection of Recyclable Materials to residential
and commercial properties as defined in the Iowa City Code of Ordinances, as amended.
4. The City agrees that it will not knowingly or intentionally deliver to Contractor any loads that
contain solid waste or material other than Recyclable Materials, including any materials
contaminated by hazardous waste.
SECTION IV. GENERAL PROVISIONS
1. INITIAL CONTRACT TERM. This Agreement shall remain in effect for a period of one (1) year,
beginning on July 1, 2014 and ending on June 30, 2015, unless terminated due to default, as
described below, or unless the City exercises its Contract Renewal Option.
2. CONTRACT RENEWAL OPTION. The City may elect, in its sole discretion, to extend this
contract for additional one (1) year terms with a maximum of four, one (1) year contract
renewals. Formal contract renewal will be issued, in writing, thirty (30) calendar days prior to
expiration date of the current term. Requests for proposed price changes after the initial term
of the contract must be submitted in writing to the Purchasing Agent ninety (90) calendar days
prior to the contract renewal start date. The City reserves the right to accept or reject price
increases, to negotiate more favorable terms, or to terminate without cost, the future
performance of the contract.
3. TERMINATION. The City reserves the right to terminate this Agreement upon 10 calendar days'
written notice for Contractor's substantial violation of state or federal law or City ordinance,
which violation is directly related to the subject matter of this Agreement. If the violation is not
n
cured within the said 10 -day period given, this Agreement shall terminate unless 1) Contractor
has made substantial steps to cure the violation prior to expiration of the 10 -day period; and 2)
City, in its sole discretion, agrees not to terminate.
4. DEFAULT. The contract may be cancelled or annulled by the City in whole or in part by
written notice of default to Contractor upon non - performance, violation of contract terms,
delivery failure, bankruptcy or insolvency, or the making of an assignment for the benefit of
creditors. The City reserves the right to grant Contractor a specified cure period during which
to cure or remedy the default, which cure period shall be included in the written notice of
default. If default is not cured within the specified time, City reserves the right, but is not
obligated to, extend the cure period or City may deem the Contract terminated without further
notice. In either event, the defaulting Contractor (or its surety) shall be liable to the City for
cost to the City in excess of the defaulted contract price. Lack of knowledge by the Contractor
will in no way be a cause for relief from responsibility.
5. CONTRACT ALTERATIONS. No assignment, alteration, change, or modification of the terms
of this Agreement shall be valid unless made in writing and agreed to by both the City and
Contractor. Contractor shall not commence any additional work or change the scope of the
Agreement until authorized in writing by the City. Contractor shall make no claim for additional
compensation in the absence of a prior written approval and amendment of this Agreement
executed by both the Contractor and the City. This Agreement may only be amended,
supplemented or modified by a written document executed in the same manner as this
Agreement.
6. ASSIGNMENT OF CONTRACT. Contractor shall not assign, transfer, convey, sublet or
otherwise dispose of the contract or its right, title or interest therein, or its power to execute
such contract to any other person, firm or corporation without the prior written consent of the
City, but in no case shall such consent relieve the Proposer from its obligations, or change the
terms of the contract.
7. ANTI - DISCRIMINATION. Contractor shall not discriminate against any person in employment
or public accommodation because of race, religion, color, creed, gender identity, sex, national
origin, sexual orientation, mental or physical disability, marital status or age. "Employment"
shall include but not be limited to hiring, accepting, registering, classifying, promoting, or
referring to employment. "Public accommodation" shall include but not be limited to providing
goods, services, facilities, privileges and advantages to the public.
SECTION V. COMPENSATION FOR MATERIALS
SORTED MATERIALS. Contractor shall compensate the City for sorted Recyclable Materials,
based upon the attached pricing formula shown in Attachment 1, incorporated herein, and the
process detailed in Section I above.
2. SINGLE - STREAM MATERIALS. In the event that the City exercises its option to utilize a single -
stream process, as described in Section 1, Paragraph 2 above, Contractor shall charge the City
$65.00 per ton for depositing Recyclable Materials collected pursuant to a single stream
process, and shall share revenues with the City according to the attached formula shown on
Attachment 2, incorporated herein, subject to the process detailed in Section I above, and
paragraph 5 below.
3. AUDIT. Because the exact weight of the various Recyclable Materials cannot be accurately
determined at the time the City deposits said materials at Contractor's Facility, the approximate
weight of the materials shall be calculated, and thus compensation determined, by utilizing a
quarterly audit system, as detailed below. The parties hereto may perform a quarterly audit
N"
on mutually agreed -upon days, whereby the Recyclable Materials shall be sorted and
weighed. To perform this audit, Contractor shall completely clean the processing line, and
all bunkers and storage containers will be emptied. A random trailer load will be
processed as normal and all materials will be separated by grade. Once the sorting is
completed, each product will be weighed. These weights will be the basis for the
percentage breakdown of the materials being received for purposes of calculating the
revenue sharing due to the City pursuant to Attachments 1 and 2.
4. PAYMENT TO CITY. If payment to the City is appropriate, such payments shall be due and
payable within 30 days of the last day of each calendar month, and shall be sent to the Iowa City
Accounting Division, 410 East Washington St., Iowa City, Iowa 52240. Delinquent payments
shall draw interest at 1.5% per month from the due date, until paid. Contractor also agrees that if
the City obtains a judgment on the amount due, Contractor agrees to pay court costs and
reasonable attorney fees.
5. WITHHOLDING PAYMENT. Where payment to Contractor is appropriate, the 'City may
withhold payment where Contractor is in default of this agreement pursuant to Section IV,
Paragraph 4 below.
SECTION VI. LIABILITY, INSURANCE
The Contractor is solely responsible for the means, methods, sequencing and procedures used
in fulfilling its obligations under this Agreement, and is solely responsible for the safety of
Contractor's personnel and its own operations.
2. INDEMNITY. Contractor shall indemnify, defend and hold harmless the City of Iowa City and
its officers, employees and agents from any and all liability, loss, cost, damage, and expense
(including reasonable attorney's fees and court costs) resulting from, arising out of, or incurred
by reason of any claims, actions, or suits based upon or alleging bodily injury including death,
license, patent, or copyright infringement, or property damage rising out of or resulting from
the Contractor's operations under this Contract, whether such operations be by the Contractor
or by any Subcontractor or by anyone directly or indirectly employed by either.
Responsibility for Damage Claims - It is specifically agreed between the parties hereto that it is
not intended by any of the provisions of any part of this Contract to create in the public or any
member thereof a third party beneficiary hereunder, or to authorize anyone not a party to this
contract to maintain a suit for personal injuries or property damage pursuant to the terms or
provisions of this contract. It is understood that there are no intended third party beneficiaries
to this contract.
Contractor further agrees to save the City, its agents and employees harmless from liability of
any nature or kind for the use of any copy -right or non - copyright composition, secret process,
license, patented or unpatented invention, article, apparatus, or appliance, including any
device or article forming a part of the apparatus or appliance of which the Proposer is not the
patentee, assignee, licensee or owner, furnished or used in the performance of the contract.
3. Certificate of Insurance; Cancellation or Modification
(a) Prior to commencement of the work,,the Contractor shall submit to the City, for approval, an
annual Certificate of Insurance meeting all requirements specified herein, to be in effect
for the full contract period.
(b) The Contractor shall notify the City in writing at least thirty (30) calendar days prior to any
changes or cancellation said policy, policies or coverage.
(c) Cancellation or modification of said policy or policies resulting in non - compliance with
these requirements shall be considered just cause for the City to immediately cancel this
n.
Agreement and /or to halt work under this Agreement.
(d) The certificate of insurance shall show the City of Iowa City as an additional insured.
(e) Minimum Coverage: Any policy or policies of insurance shall include contractual liability
coverage, and shall be in the following type and minimum amounts:
Type of Coverage Class I
a. Comprehensive General Liability Each Occurrence Aggregate
(1) Bodily Injury and Property Damage $500,000 $1,000,000
b. Motor Vehicle Liability & Combined Property Damage Insurance: Single Limit
(1) Bodily Injury and Property Damage $500,000
c. Workers' Compensation Insurance as required by Chapter 85, Code of Iowa.
d. The City requires that the Contractor's insurance carrier be A rated or better by A.M.
Best.
(f) The entire amount of Contractor's liability insurance policy coverage limits, identified in the
policy and on the Certificate of Insurance, must, under the policy, be available to pay
damages for which the insured Contractor becomes liable, or for which the insured
assumes liability under the indemnity agreement herein contained, and such coverage
amount shall not be subject to reduction or set off by virtue of investigation or defense
costs incurred by Contractor's insurer.
(g) The entire amount of the Contractor's liability insurance policy coverage limits shall be
payable by the Contractor's insurer, with no deductible to be paid by, or self- insured
retention to be attributed to, the Contractor unless this requirement is waived by the City.
Contractor's Certificate of Insurance must set forth the nature and amount of any such
deductible or self- insured retention.
(h) If Contractor's liability insurance coverage is subject to any special exclusions or limitations
not common to the type of coverage being provided, such exclusions or limitations shall be
noted on the Certificate of Insurance.
(i) Contractor agrees to provide City with "occurrence form" liability insurance coverages.
Q) The policy shall be primary in payment, not excess or contingent, regardless of any other
coverage available to the City.
SECTION VII. MISCELLANEOUS
Contractor agrees to have no markings on vehicles or containers that indicate or tend to indicate any
official relationship between the Contractor and the City.
2. Independent Contractor: Contractor, including any of its subcontractors, are not and shall not be
deemed to be an agent or employee of the City of Iowa City, Iowa, but at all times are deemed to be
independent contractors.
3. This Agreement shall be governed by the laws of the State of Iowa. In the event of a change in law
that frustrates the goals of the City relative to this contract, the City will be entitled to terminate the
contract upon written notification to the vendor without cost or penalty to the City.
4. This Agreement represents the entire agreement between the City and the Contractor and supersedes
all prior negotiations, representations or agreements, whether written or oral. This Agreement may be
amended only by written instrument signed by both the City and the Contractor, and attached as an
Addendum.
5. If any one or more of the provisions contained in this Agreement are held to be invalid, illegal, or
unenforceable, this Agreement shall be deemed severable and the remainder of the Agreement shall
remain in full force and effect.
This Agreement executed this day of , 20
CITY
CITY OF IOWA CITY, IOWA
By:
Matthew J. Hayek, Mayor
ATTEST:
Maria K. Karr, City Clerk
Approved by
City Attorney's Office
CONTRACTOR
Attachment 1
Multi- Stream Sorted Materials
Contractor shall compensate the City of Iowa City for sorted Recyclable Materials, based
upon the pricing formula described below.
Grade of Material
Pricing Formula
Newsprint and Magazines
PPW HS #8 Newsprint minus $75 per net
ton. Floor price of $5 per net ton.
Mixed Paper #1
PPW HS #1 Mixed Paper minus 100%
Ferrous Tin Cans
End Market Price minus 90%
Plastic Bottles #1- #7
End Market Price minus 90%
Old Corrugated Cardboard #11
PPW HS #11 OCC minus 50%
Glass
Charge of $20.00 per net ton
Hard Back and Soft Cover Books
$0.00 per ton
Plastic Bags
$0.00 per ton
Cartons (Aseptic and Gable To)
$10.00 per ton
Non - Recyclable Materials Exceeding
1.5%
$150.00 per net ton
PPW = Pulp and Paper Publication
HS = High Side of Pricing Published in the Midwest Region of the Pulp and Paper
Publication for the Specific Grade
OCC = Old Corrugated Cardboard
The material described hereunder shall equal or exceed in quality the grade definition for
the stated grade.
Attachment 2
Single Stream Materials
1. City shall compensate Contractor $65.00 per ton for Recyclable Material
delivered to Contractor pursuant to a Single Stream Process for Contractor's sorting and
transportation services, which includes transportation of the materials to a Contractor's
facility.
2. City Carton Recycling shall provide revenue sharing with the City of Iowa City
based upon the following:
#1
Ferrous Tin 1 4.00% 130% of Low Side of End 150% of Low Side of End
Cans Market Price Market Price
Commingled 11.00% 30% of Low Side of End 50% of Low Side of End
Plastic Market Price Market Price
Containers
All Other I I $0 Per Net Ton I $0 Per Net Ton
Material
PPW = Pulp and Paper Publication
HS = High Side of Pricing Published in the Midwest Region of the Pulp and Paper
Publication for the Specific Grade
OCC = Old Corrugated Cardboard
r r-
^�� ,., ®,,
CITY O F IOWA CITY 2a(7)
, c I MEMORAND
M ®���
Date: June 25, 2014
To: Tom Markus, City Manager
From: Jen Jordan, Recycling Coordinator
Rick Fosse, Public Works Director
Re: Recycling Processing Contract
Introduction:
The City of Iowa City has a contract with City Carton Recycling (City Carton) to process the
recyclable materials picked up at the curb and at the City's three drop -off sites. The contract
expires on June 30, 2104. A request for proposals (RFP) solicited vendors earlier this year for a
new contract. City Carton submitted the only proposal. Based on the proposal, City staff has
negotiated a one -year contract with City Carton, valid July 1, 2014, to June 30, 2015, with up to
four one -year roll -over periods. Within the negotiated contract, the City has the option to keep
the existing sorted curbside system or change to a single- stream collection system.
History/Background:
The City has worked with City Carton to process the recycling picked up at the curb and at the
City's three drop -off sites for many years. Periodically an RFP is put out to ensure that the
costs and revenues align with market conditions.
City Carton has been an excellent partner to the City and has been amenable to adding
materials to the recycling streams as feasible.
Discussion of Solutions:
Within the negotiated contract, the City has the option of maintaining the current sorted system
or changing to a single stream collection system. Since changes were made to the program in
2011, the curbside tonnages have been steadily increasing. In May 2014, staff completed a
curbside participation study. With this data and input from the curbside recycling staff, a
strategic outreach program specific to the curbside program will be implemented in FY15 to
reduce contamination, increase participation and further increase tonnage collected.
Financial Impact:
The negotiated contract is comparable to the existing contract. Under current market conditions
we can maintain the existing recycling fees if we continue the sorted collection system.
Conversion to single- stream would require a rate increase.
Recommendation:
Staff recommends entering into the negotiated contract with City Carton Recycling and
maintaining the sorted curbside recycling system.
Ra-cl)
AGREEMENT FOR RECYCLING SERVICES
This Agreement is being made and entered into between the City of Iowa qty ( "City ") and City Carton
Company, Inc. [aka City Carton Recycling] ( "Contractor ") at 3 E. Benton Stree Iowa City, Iowa for services
in connection with recycling.
WHEREAS, City desires to remove and recycle certain materials in a nner consistent with regulations
developed by the U.S. Environment I Protection Agency, the Iowa De rtment of Natural Resources and
consistent with good environmental pr ctices; and
WHEREAS, it is City's intention to max ize the diversion of clea Recyclable Materials from the Iowa City
waste stream via legitimate recycling arkets; minimize the r idual material landfilled after processing;
form a cooperative partnership with Co tractor to maximize ublic education, community outreach and
other activities; and maximize per -ton r venues derived fr m the sale of the Recyclable Materials and
minimize transportation and overall costs.
WHEREAS, the City currently utilizes a n
materials through both a curb -side and drop
process at some point during the course of p
WHEREAS, Contractor is willing and able to
pursuant to either a multi- stream or a single-
(recycling process for the collection of recyclable
)gram, but City may desire to utilize a single- stream
of this agreement; and
recyclables from the City and provide recycling services
process; and
NOW THEREFORE, in consideration of thei mutu I promises, City and Contractor agree as follows:
SECTION I. DELIVERY AND ACCE ANCE O RECYCLABLE MATERIALS
DELIVERY. City shall deliv r all Recyclabk Materials, defined below, to Contractor at its facility
at 3 E. Benton Street, Iowa City, Iowa, or to another location as the parties may agree
(hereinafter "Contractor' facility ").
2. SORTING PROCES . Unless the City exerc es its option to utilize a single- stream recycling
process as des crib d below, the Recyclable aterials shall be sorted according to a multi -
stream process. T e City reserves the right to utilize a single- stream recycling process, as it
may determine propriate in its sole discretion. In the event that the City should so choose, it
will notify the c tractor at least 90 days prior to aking the change.
3. ACCEPTAN E: Except as stated in Paragraph 4 low, and unless otherwise agreed upon by
the parties ereto, Contractor shall provide recyclin services to the City of Iowa City for the
following r cycling commodity streams, hereinafter Iled "Recyclable Materials:" newspaper;
magazin ; brown paper bags; telephone books; cat togs; office paper; junk mail; envelopes
(any ty e); corrugated cardboard; chipboard; wet s ength carrier stock (chipboard); #1 -7
plastic bottles and containers (no Styrofoam); tin /st I cans; pie tins; aluminum foil and
alumi um cans, mixed green and brown glass, clear gla s, hard and soft cover books, plastic
bag , aseptic and gable top cartons. Upon acceptance o a delivery load, Contractor assumes
all sponsibility for said Recyclable Materials.
3. BOR. Contractor shall provide all necessary labor, equip ent and materials for performing
services described herein. These shall be considered an in t ;ecyclable part of the service, and no
additional compensation will be paid therefor.
4. REJECTION OF A LOAD. A delivery load containing more th minimis hazardous or toxic
materials, or a load containing more than 1.5% by weight of Materials shall be
2
rejected by Contractor as follows: Contractor shall inspect each load, and if Contr ctor suspects
the load contains more than 1.5% by weight of non - Recyclable Materials, th t load shall be
deposited in a temporary storage area for inspection by the City. If the City con rms that the load
contains more than 1.5% by weight of non - Recyclable Materials, said load sh I be transferred to
the City Landfill by Contractor, an the City shall be responsible for reimbur ng Contractor for all
costs of hauling and disposal, a d shall pay Contractor an additiona $150.00 per ton for
additional handling. If the City doe not confirm that the load violates th' paragraph, Contractor
may remove the non - Recyclable M erials from the load, in the presen of a City representative,
to determine the actual weight of th non - Recyclable Materials. If a iolation of this provision is
confirmed through this process, the I ad will be rejected as set fort above. If the load is found to
comply with this provision, the load s all be accepted by Contra or and processed accordingly.
For purposes of this provision, materi Is with significant food co amination and wet materials are
considered non - recyclable.
7. DROP -SITE. Contractor shall provide a drop -off site sui ble for the unloading of Recyclable
Materials from refuse packer trucks, si a loader trucks ayla dump trucks, as delivered by City or
its agents, in order to ensure total stora yrecords. l Recycl le Materials delivered to the Contractor.
8. SCALE, RECORDS. The City's haulicles all be weighed on the Contractor's scale,
which shall be certified by the State of po entry to the Contractor's facility, and shall be
weighed again when unloaded and privi g the facility to determine the net weight of the
Recyclable Materials delivered. A copy le ticket will be given to City's driver at that time.
Records of net weight of Recyclable s delivered shall be forwarded to the City on a
monthly basis, and shall be deemed acand accepted unless objected to by City within ten
(10) calendar days of receiving the records. The Contractor shall maintain accurate
cumulative recor ds for the duration of tement, and shall provide such records to the City
within a reasonable time after City's req
9. ACCESS: Contractor will provide CiV with adpess to Contractor's facility during City's normal
working hours of 7:00 AM to 5:00 P, Mondak through Friday. This provision in no way limits
Contractor's ordinary hours of busirpss or hours f operation apart from City's use.
SECTION II. RECYCLING OPERATIO
1. The Contractor shall recycle/friaterials following g nei
which may include a variety f processes, in a safe a d
2. Upon acceptance of Cit s Recyclable Materials, Co
packaging, crushing a /or any other preparation a
recycling industry. Pa 'es acknowledge Contractor ma
fide users or sell back nto the manufacturing stream for
ally accepted standards in the industry,
good faith manner.
actor agrees to car ry
ording to standard
sell said Recyclable
pycling purposes.
out the delivery,
operations of the
Materials to bona
3. The Contractor's r cycling operation, including storage f materials to be recycled and of
recycled materials shall be conducted on a site which me s the requirements of all applicable
federal, state an ocal laws and regulations, including zoning rdinances.
4. Parties agree at Contractor shall be responsible for its own a uipment in order to satisfactorily
perform this reement, and that City shall in no way be respon -ble for the method or means by
which mated is recycled.
5. The Contr ctor shall be responsible for obtaining all permits and liapnses required by city, state
and federal law, and pay all related fees. Contractor shall further be esponsible for the payment
of any fees and expenses related to the disposal of any waste matena arising from its processing
of accepted Recyclable Material, and shall dispose of such waste in a anner consistent with all
3
applicable federal, state and local laws, including rules and regulations romulgated or enforced
by the U.S. Environmental Protection Agency, the Iowa Department o atural Resources, and /or
local solid waste disposal facilities. This provision does not apply those materials rejected by
Contractor pursuant to Section I, Paragraph 4 above, in which c e all expenses related thereto
shall be attributed to the City 0 set forth above.
6. The City reserves the right, by
by Contractor in providing se
make, and keep copies of all k
services provided by Contrac
notice. Such inspections shall
business. Contractor shall coo
not the duty, to inspect a equipment, facility or service used
ces pursuant to this con ct and, likewise, the right to inspect,
Woks and records main ined by the vendor which relate to the
r hereunder, at an reasonable time and upon reasonable
> conducted in a m nner to minimize disruption to Contractor's
►e to fully with th ity during an inspection.
SECTION III. CITY'S RESPONSIBILITIES
The City may establish public recycling,
residential and commercial Recyclable
with notice to the public. Nothing in this
recycling drop site at its facility, but r
materials deposited thereon are the s�
agreement. /
✓off' locations in Iowa City for the public's disposal of
rials, and will designate these locations for said use,
ament prohibits Contractor from establishing a public
sing and maintaining said site, and processing the
;ponsibility of the Contractor and are not part of this
2. The City shall provide bins of suff' ient capa 'ty and quality at its drop -off locations to protect the
Recyclable Materials from adver a weather. 'ty also agrees these bins shall include instructions
and notice to the public on app prate use of t e bins, and that these notices will be prepared by
City in cooperation with Contr ctor.
3. The City shall be responsi a for collecting any \a, ble Materials deposited at any and all of
its drop -off locations, and may provide curbsidon of Recyclable Materials to residential
and commercial properti s as defined in the Iowde of Ordinances, as amended.
4. The City agrees that t will not knowingly or ially deliver to Contractor any loads that
contain solid waste or material other than ble Materials, including any materials
contaminated by h ardous waste.
SECTION IV. GENERAL ROVISIONS
1. INITIAL CONT CT TERM. This Agreement shall remai in effect for a period of one (1) year,
beginning on July 1, 2014 and ending on June 30, 2015, unless terminated due to default, as
described b ow, or unless the City exercises its Contract enewal Option.
2. CONTRACIT RENEWAL OPTION, The City may elect, in 'ts sole discretion, to extend this
contract or additional one (1) year terms with a maximu of four, one (1) year contract
renewal . Formal contract renewal will be issued, in writing, hirty (30) calendar days prior to
expirati n date of the current term. Requests for proposed pri a changes after the initial term
of the ontract must be submitted in writing to the Purchasing ent ninety (90) calendar days
prior o the contract renewal start date. The City reserves the fight to accept or reject price
incr ases, to negotiate more favorable terms, or to termin a without cost, the future
performance of the contract.
3. TERMINATION. The City reserves the right to terminate this Agreement upon 10 calendar days'
written notice for Contractor's substantial violation of state or federal law or City ordinance,
which violation is directly related to the subject matter of this Agreement. If the violation is not
cured within the said 10 -day period given, this Agreement shall terminate unless 1) Contractor
4
has made substantial steps to cure the violation prior to expiration f the 10 -day period; and 2)
City, in its sole discretion, agrees not to terminate.
4. DEFAULT. The cont act may be cancelled or annulled by the ity in whole or in part by written
notice of default to Contractor upon non - performance, vi ation of contract terms, delivery
failure, bankruptcy o insolvency, or the making of an ass' nment for the benefit of creditors.
The City reserves the ight to grant Contractor a specifie cure period during which to cure or
remedy the default, w ich cure period shall be includ d in the written notice of default. If
default is not cured wit in the specified time, City re rves the right, but is not obligated to,
extend the cure period o City may deem the Con act terminated without further notice. In
either event, the defaultin Contractor (or its suret shall be liable to the City for cost to the
City in excess of the defaul d contract price. L k of knowledge by the Contractor will in no
way be a cause for relief fro responsibility.
5. CONTRACT ALTERATIONS. o assignmen , alteration, change, or modification of the terms
of this Agreement shall be valid unless m e in writing and agreed to by both the City and
Contractor. Contractor shall not mmen any additional work or change the scope of the
Agreement until authorized in writi by t e City. Contractor shall make no claim for additional
compensation in the absence of a rio written approval and amendment of this Agreement
executed by both the Contractor a the City. This Agreement may only be amended,
supplemented or modified by a wri n document executed in the same manner as this
Agreement.
6. ASSIGNMENT OF CONTRACT. Contr ctor shall not assign, transfer, convey, sublet or
otherwise dispose of the contra t or its ri t, title or interest therein, or its power to execute
such contract to any other per on, firm or rporation without the prior written consent of the
City, but in no case shall suc consent reliev the Proposer from its obligations, or change the
terms of the contract.
7. ANTI - DISCRIMINATI/t. ontractor shall not di criminate against any person in employment
or public accommodecause of race, religio , color, creed, gender identity, sex, national
origin, sexual orientmental or physical dis ility, marital status or age. "Employment"
shall include but nomited to hiring, accepts g, registering, classifying, promoting, or
referring to employmPublic accommodation" s all include but not be limited to providing
goods, services, facirivileges and advantages t the public.
SECTION V. COMPENSAT N FOR MATERIALS
1. SORTED MATE IALS. Contractor shall compensate the 'ty for sorted Recyclable Materials,
based upon the attached pricing formula shown in Attachm t 1, incorporated herein, and the
process detaile in Section I above.
2. SINGLE -ST AM MATERIALS. In the event that the City exerci s its option to utilize a single -
stream /h5 ss, as described in Section 1, Paragraph 2 above, Co tractor shall charge the City
$65.00 on for depositing Recyclable Materials collected pu )uant to a single stream
process shall share revenues with the City according to the a ched formula shown on
Attachm , incorporated herein, subject to the process detailed i Section I above, and
paragra below.
3. AUDIT. Because the exact weight of the various Recyclable Materials cat be accurately
determined at the time the City deposits said materials at Contractor's Facility, he approximate
weight of the materials shall be calculated, and thus compensation determined ,,by utilizing a
quarterly audit system, as detailed below. The parties hereto shall perform a quarterly audit on
mutually agreed -upon days, whereby the Recyclable Materials shall be sorted and weighed.
5
To perform this audit, Contractor shall completely clean the
and storage containers will be emptied. A random trailer load
all materials will be separated by grade. Once the sorting is
weighed. These wei hts will be the basis for the percentage
received for purr ses of calculating the revenue shari
Attachments 1 and .
4. PAYMENT TO CI If payment to the City is al
payable within 30 day of the last day of each calei
Accounting Division, 4 East Washington St., Ic
shall draw interest at 1.5 per month from the due
the City obtains a judgm nt on the amount dui
reasonable attorney fees. /
.0essing line, and all bunkers
i be processed as normal and
)mpleted, each product will be
;akdown of the materials being
due to the City pursuant to
prop ate, such payments shall be due and
lar onth, and shall be sent to the Iowa City
i City, Iowa 52240. Delinquent payments
ate, until paid. Contractor also agrees that if
Contractor agrees to pay court costs and
5. WITHHOLDING PAYMENT. here paym t to Contractor is appropriate, the City may
withhold payment where Cont ctor is in efault of this agreement pursuant to Section IV,
Paragraph 4 below.
SECTION VI. LIABILITY, INSURANCE
The Contractor is solely responsible the means, methods, sequencing and procedures used
in fulfilling its obligations under t s A reement, and is solely responsible for the safety of
Contractor's personnel and its owl operat ns.
2. INDEMNITY. Contractor shall ' demnify, d fend and hold harmless the City of Iowa City and
its officers, employees and a ents from any and all liability, loss, cost, damage, and expense
(including reasonable attorn y's fees and co . costs) resulting from, arising out of, or incurred
by reason of any claims, a tions, or suits bas upon or alleging bodily injury including death,
license, patent, or copyri t infringement, or p operty damage rising out of or resulting from
the Contractor's operati s under this Contract, hether such operations be by the Contractor
or by any Subcontracto or by anyone directly or i directly employed by either.
Responsibility for Da age Claims - It is specifically treed between the parties hereto that it is
not intended by any f the provisions of any part of s Contract to create in the public or any
member thereof a ird party beneficiary hereunder, r to authorize anyone not a party to this
contract to maint n a suit for personal injuries or pro erty damage pursuant to the terms or
provisions of this ontract. It is understood that there a e no intended third party beneficiaries
to this contract.
Contractor furoer agrees to save the City, its agents and employees harmless from liability of
any nature or kind for the use of any copy -right or non -cop right composition, secret process,
license, pat nted or unpatented invention, article, appar tus, or appliance, including any
device or a icle forming a part of the apparatus or appliance of which the Proposer is not the
patentee, ssignee, licensee or owner, furnished or used in th4 performance of the contract.
3. Certificate/of Insurance; Cancellation or Modification
(a) Prig(r to commencement of the work, the Contractor shall submit to the City, for approval, an
annual Certificate of Insurance meeting all requirements specified herein, to be in effect
fdr the full contract period.
(b) The Contractor shall notify the City in writing at least thirty (30) calendar days prior to any
changes or cancellation said policy, policies or coverage.
(c) Cancellation or modification of said policy or policies resulting in non - compliance with
these requirements shall be considered just cause for the City to immediately cancel this
Agreement and /or to halt work under this Agreement.
L
(d) The certificate of insurance shall show the City of Iowa City as an additional insured and
shall show the project bid number and project title.
(e) Minimum Coverage: Any policy or policies of insurance shall include co actual liability
coverage, and shall be in the following type and minimum amounts:
Type of Coverage Class I
a. Comprehensive General Liability Each Occurren Aggregate
(1) Bodily Injury and Property Damage $500,000 $1,000,000
b. Mdtor Vehicle Liability & Combined Property Damage I urance: Single Limit
(1) Bodily Injury and Property Damage $500,000
c. Workers' Compensation Insurance as required by apter 85, Code of Iowa.
d. The City requires that the Contractor's insuranc carrier be A rated or better by A.M.
Best.
(f) The entire a unt of Contractor's liability insura a policy coverage limits, identified in the
policy and on a Certificate of Insurance, m st, under the policy, be available to pay
damages for wh h the insured Contractor ecomes liable, or for which the insured
assumes liability u er the indemnity agr ment herein contained, and such coverage
amount shall not be ubject to reduction r set off by virtue of investigation or defense
costs incurred by Coin tor's insurer.
(g) The entire amount of th Contractor' liability insurance policy coverage limits shall be
payable by the Contracto insurer with no deductible to be paid by, or self- insured
retention to be attributed to, a Co ractor unless this requirement is waived by the City.
Contractor's Certificate of Ins an a must set forth the nature and amount of any such
deductible or self- insured retentl
(h) If Contractor's liability insurance verage is subject to any special exclusions or limitations
not common to the type of cov ag being provided, such exclusions or limitations shall be
noted on the Certificate of Ins ranc
(i) Contractor agrees to provide ity wit "occurrence form" liability insurance coverages.
Q) The policy shall be primary in paymen not excess or contingent, regardless of any other
coverage available to the ity.
SECTION VII. MISCELLANEOUS
1. Contractor agrees to have no ma ings on vehicles or c ntainers that indicate or tend to indicate any
official relationship between the ontractor and the City.
2. Independent Contractor: Con actor, including any of its bcontractors, are not and shall not be
deemed to be an agent or a plc of the City of Iowa City, owa, but at all times are deemed to be
independent contractors.
3. This Agreement shall be overned by the laws of the State of to . In the event of a change in law
that frustrates the goals of the City relative to this contract, the Cit will be entitled to terminate the
contract upon written n tification to the vendor without cost or penalty o the City.
4. This Agreement repr sents the entire agreement between the City and the ontractor and supersedes
all prior negotiation , representations or agreements, whether written or ora This Agreement may be
amended only by ritten instrument signed by both the City and the Contra or, and attached as an
Addendum.
7. If any one or re of the provisions contained in this Agreement are held to b invalid, illegal, or
unenforcea , this A reement shall be deemed severable and the remainder of the greement shall
9
remain in full force and effect.
This Agreement executed this day of , 20
CITY CONTRACTOR
Attachment 1
Multi- Stream Sorted Materials
Contractor shall compensate the City of Iowa City for sorted Recyclable Materials, b sed
upon the pricing formula described below.
Grade of Material
Pricing Formula
Newsprint and Magazines
PPW HS #8 Newsprint minuylo75 per net
ton. Floor price of $5 perXet ton.
Mixed Paper #1
PPW HS #1 Mixed Pa p& minus 100%
Ferrous Tin Cans
End Market Price rpKnus 90%
Plastic Bottles #1- #7
End Market Priceminus 90%
Old Corrugated Cardboard #11
PPW HS #1 ACC minus 50%
Glass
Charge o 20.00 per net ton
Hard Back and Soft Cover Books
$0.00 r ton
Plastic Bas
$0. per ton
Cartons (Aseptic and Gable To)
$ .00 per ton
Non - Recyclable Materials Exceeding
1.5%
$150.00 per net ton
PPW = Pulp and Paper
HS = High Side of Pricing Pu shed in the idwest Region of the Pulp and Paper
Publication for the Specific rade
OCC = Old Corrugated ardboard
The material descri ed hereunder shall equal or exceed in quality the grade definition for
the stated grade.
Attachment 2
Single Stream Materials
1. City shall compensate Contractor $65. per p or Recyclable Material
delivered to Contractor pursuant to a Single Strea rocess for Contractor's so ing and
transportation services, which includes transporta on of the materials to Contr tor's
facility in Cedar Rapids.
2. City Carton Recycling shall provide
based upon the following:
sharing with the City Iowa City
Commodity
Allocated 'ercent
Reba' if Market Price is
ebate if Market Price is
of Total Tonnage
< $1011.00 per ton
>$100.00 per tan
( * *to be
determined
during audits)
ONP #8
44.00%
10% 1 PPW 7Side
30% of PPW High Side
Commodity
Allocated Percent
Rebat if M rket Price is
Rebate if Market Price is
of Total Tonnage
:5$55:0 p ton
>$55.00' per ton
( * *to be
determined
during audits
Mixed Paper
41.00%
30° ° of PW High Side
50% of PPW High Side
#1
Ferrous Tin
4.00%
of ow Side of End
50% of Low Side of End
Cans
/"30%
Market rice
Market Price
Commingled
11.00%
30% of L w Side of End
50% of Low Side of End
Plastic
Market P ce
Market Price
Containers
All Other
$0 Per Net on
$0 Per Net Ton
Material
PPW = Pulp and P er Publication
HS = High Side o Pricing Published in the Midwest R ion of the Pulp and Paper
Publication for t e Specific Grade
OCC = Old Co gated Cardboard
The material d scribed hereunder shall equal or exceed in q ality the grade definition for
the stated grad
2�
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 14 -204
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST
TO THE RELEASE OF MORTGAGE FOR THE PROPERTY LOCATED AT 983
LONGFELLOW PLACE.
WHEREAS, on October 21, 2009, the owners of 983 Longfellow Place executed a mortgage to
secure a loan and a Resale and Occupancy Agreement with the City of Iowa City as part of the
Affordable Dream Home Program; and
WHEREAS, the owners are in nursing homes and have no assets;
WHEREAS, no payments have been made on the loan since been made since 2012;
WHEREAS, a buyer is willing to pay the City $16,510 if the City releases the mortgage; and
WHEREAS, staff believes that the mortgage should be released because the City likely will
receive no funds if it is foreclosed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The Mayor is authorized to sign and the City Clerk to attest the attached Release of
Second Mortgage for recordation, whereby the City does release the property located at
983 Longfellow Place, Iowa City, Iowa from the Second Mortgage recorded on October
23, 2009 at Book 4519, Page 35 of the Johnson County Recorder's Office.
2. The City Clerk is authorized and directed to certify a copy of this resolution for
recordation in the Johnson County Recorder's Office, together with the attached
Release of Second Mortgage, said recording costs to be paid by the City.
Passed and approved this 30th day of June , 2014.
MAYOR
ATTEST: �!e'
CITY 'CLERK
Approved by
City Attorney's Office
G `d �p - f (�
Resolution No. 14 -204
Page 2
It was moved by Mims and seconded by Payne the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Botchway
x Dickens
x Dobyns
x Hayek
x Mims
x Payne
x Throgmorton
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319)356 -5030
RELEASE OF SECOND MORTGAGE
The City of Iowa City, Iowa does hereby release the property at 983 Longfellow Place, Iowa City,
Iowa, and legally described as follows:
Unit 983 Longfellow Place of Lot 10, Longfellow Manor Condominiums, according
to the Declaration thereof recorded in Book 4195, Page 375, Records of the
Recorder of Johnson County, Iowa.
from a financial obligation of the property owners, Christopher Barclay Kuhn and Dana Kay
Harr, to the City of Iowa City in the principal amount of $36,250.00 represented by a Second
Mortgage recorded on October 23, 2009, Book 4519, Page 35 of the Johnson County Recorder's
Office.
CITY OF IOWA CITY, IOWA
By: AAz:&
Mathew J. Hayek, ayor
By: 2 - i �y Mari k K. Karr, City Clerk
STATE OF IOWA )
)ss:
JOHNSON COUNTY )
On this a)A day of :: vLe-- , 2014, before me, the undersigned, a Notary Public in and for said
County and State, personally appeared Mathew J. Hayek and Marian K. Karr, to me personally known, who
being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of said municipal
corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said
municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation
by authority of City Council of said municipal corporation; and that the said Mathew J. Hayek and Marian
K. Karr acknowledged the execution of said instrument to be the voluntary act and deed and said municipal
corporation, by it and by them voluntarily executed.
o ''& s � Commission Number 221819 KELLIE K. TUTTLE Notary Public in and for the State of Iowa
my Co imiss'on Expires
IOw
Prepared by: Robert Miklo, Senior Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5240 (SUB14- 00009)
RESOLUTION NO. 14 -205
RESOLUTION APPROVING FINAL PLAT OF
LINDEDMANN SUBDIVISION - PART SIX, IOWA CITY, IOWA.
WHEREAS, the owner, Walden Wood Associates II LLP, filed with the City Clerk the final plat of
Lindemann Subdivision - Part Six, Iowa City, Iowa, Johnson County, Iowa; and
WHEREAS, said subdivision is located on the following- described real estate in Iowa City, Johnson
County, Iowa, to wit:
Commencing at the Northeast Corner of the Southwest Quarter of Section 7, Township 79
North, Range 5 West, of the Fifth Principal Meridian; Thence S00 °05'18 "E along the East
Line of the Southwest Quarter of said Section 7, a distance of 932.06 feet, to the Point of
Beginning; Thence continuing S00 °05'18 "E, along said East Line, 216.00 feet, to the
Northeast Corner of Lindemann Subdivision - Part Four B, in accordance with the
Recorded Plat thereof; Thence S89 °54'42 "W, along the North Line of said Lindemann
Subdivision - Part Four B, 180.00 feet; Thence S00 °05'18 "E, along said North Line, 36.86
feet; Thence S89 054'42 "W, along said North Line, 690.59 feet; Thence S78 °35'02 "W,
along said North Line, 127.85 feet; Thence S1 1'24'58"E, along said North Line, 23.08 feet;
Thence S78 °35'02 "W, along said North Line, 120.00 feet, to the Northwest Corner thereof,
and a Point on the East Line of Lindemann Subdivision - Part Four A, to Iowa City, Iowa, in
accordance with the Plat thereof Recorded in Plat Book 57 at Page 277 of the Records of
the Johnson County Recorder's Office; Thence NI 1'24'58"W, along said East Line, 106.89
feet; Thence N00 °05'18 "W, along said East Line and the Northerly Projection thereof,
155.19 feet; Thence N08 °51'01 "W, 66.30 feet; Thence N80 °04'01 "E, 125.00 feet; Thence
N73 023'26 "E, 50.31 feet; Thence N89 °54'42 "E, 848.78 feet; Thence SOO °05'18 "E, 37.02
feet; Thence N89 054'42 "E, 120.00 feet, to the Point of Beginning. Said Tract of Land
contains 7.41 Acres, and is subject to easements and restrictions of record.
WHEREAS, the Department of Neighborhood and Development Services and the Public Works
Department examined the proposed final plat and subdivision, and recommended approval; and
WHEREAS, a dedication has been made to the public, and the subdivision has been made with the
free consent and in accordance with the desires of the owners and proprietors; and
WHEREAS, said final plat and subdivision are found to conform with Chapter 354, Code of Iowa
(2013) and all other state and local requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The said final plat and subdivision located on the above - described real estate be and the
same are hereby approved.
2. The City accepts the dedication of the streets and easements as provided by law and
specifically sets aside portions of the dedicated land, namely streets, as not being open for
Resolution No. 14 -205
Page 2
public access at the time of recording for public safety reasons. The City shall accept
dedication of the outlot upon satisfaction of the terms and conditions stated in the
Subdivider's Agreement.
3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed,
upon approval by the City Attorney, to execute all legal documents relating to said
subdivision, and to certify a copy of this resolution, which shall be affixed to the final plat after
passage and approval by law. The City Clerk shall record the legal documents and the plat at
the office of the County Recorder of Johnson County, Iowa at the expense of the
owner /subdivider.
Passed and approved this 30th day of
ATTEST: 24 ,,.) W. 74(tl
CITY CbERK
It was moved by trims
adopted, and upon roll call there were:
AYES:
X
X
X
X
X
x
pcdltemplaleslFinal Plat - Resolution (2) doc doc
NAYS:
MAYOR
2014.
Approved by
Ays 4ityttornOffice(P a7�y
and seconded by Payne the Resolution be
ABSENT:
X Botchway
Dickens
_ Dobyns
_ Hayek
_ Mims
_ Payne
Throgmorton
To: City Council
Item: SUB14 -00009
Lindemann Subdivision — Part 6
GENERAL INFORMATION:
STAFF REPORT
Prepared by: Robert Miklo
Date: June 27, 2014
Applicant: Southgate Development
755 Mormon Trek Blvd
Iowa City, IA 52246
(319)337 -4195
gsiders @sgdev.net
Property Owner:
Requested Action:
Purpose:
Location:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning
Comprehensive Plan:
Neighborhood Open Space District:
File Date:
60 Day Limitation Period:
Walden Wood Associates LLC
755 Mormon Trek Blvd.
Iowa City, IA 52244
Final plat approval
Development of a 39 -lot residential subdivision
Lillian Street
7.41 acres
Planned Development Overlay (OPD8)
North: Agricultural (OPD8)
South: Residential (OPD8)
East: Residential (OPD8)
West: Residential (OPD5)
Low density single family residential
Lower West Branch (NE3)
May 27, 2014
July 25, 2014
BACKGROUND INFORMATION:
The applicant, Southgate Development, has submitted a final plat for a 39 -lot, 7.41 -acre
subdivision located at Lillian Street. The preliminary plat for Lindemann Subdivision Parts 4B, 6 &
7 was approved on February 18, 2014.
ANALYSIS:
The final plat of Lindemann Subdivision Part 4B is in general compliance with the approval of the
preliminary plat and subdivision regulations. The property is subject to a Conditional Zoning
Agreement (CZA) that requires the developer to contribute funds to the City for the reconstruction
E
of Lower West Branch Road, inclusion of a greenway and trail along the stream and wetland
corridor, and an interconnected street pattern including future connections to Lower West Branch
Road. Construction drawings are currently being reviewed by staff.
Neighborhood parkland or fees in lieu of: The applicant has dedicated the stream corridor to
the west of the property as open space and will extend the Court Hill Trail. This dedication
satisfies the open space requirements of the Neighborhood Open Space Ordinance and the
required greenway dedication of the CZA, so there are no additional open space requirements for
this subdivision.
Infrastructure Fees: At the time of final plat approval the applicant will be required to pay $395
per acre for water main extension fees and a sanitary sewer tap -on fee of $1,038.26 per acre. Per
the CZA, the applicant is required contribute funds toward the cost of reconstructing Lower West
Branch Road, which fee is to be satisfied with Lindemann Subdivision — Part 4B. Payment of
these fees should be addressed in the legal papers.
STAFF RECOMMENDATION
Staff recommends approval of SUB14- 00009, the final plat of Lindemann Subdivision — Part 6, a
39 -lot, 7.41 acre residential subdivision located at Lillian Drive subject to approval of construction
drawings and legal papers by the City Engineer and City Attorney.
ATTACHMENTS
1. Location Map
2. Final plat
Approved by:
Doug Boothroy, Director,
Department of Neighborhood nd Development 4rvices
PCD \Staff Reports \part 6 staff report.docx
Prepared by: Robert Miklo, Senior Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -524- (SUB14- 00010)
RESOLUTION NO. 14 -206
RESOLUTION APPROVING FINAL PLAT OF
LINDEMANN SUBDIVISION - PART 4B, IOWA CITY, IOWA.
WHEREAS, the owner, Walden Wood Associates II LLP, filed with the City Clerk the final plat of
Lindemann Subdivision - Part 4B, Iowa City, Iowa, Johnson County, Iowa; and
WHEREAS, said subdivision is located on the following- described real estate in Iowa City, Johnson
County, Iowa, to wit:
Beginning at the Northeast Corner of Lindemann Subdivision - Part Three, to Iowa
City, Iowa, in accordance with the Plat thereof Recorded in Plat Book 47 at Page 77
of the Records of the Johnson County Recorder's Office; Thence S89 054'42 "W,
along the North Line of said Lindemann Subdivision - Part Three, a distance of
125.00 feet; Thence N00 °05'18 "W, along said North Line, 20.00 feet; Thence
S89 °54'42 "W, along said North Line, 697.57 feet; Thence S78 °35'02 "W, along said
North Line, 117.97 feet; Thence S11 °24'58 "E, along said North Line, 26.48 feet;
Thence S78 °35'02 "W, along said North Line, 120.00 feet, to the Southeast Corner of
Lindemann Subdivision - Part Four A, to Iowa City, Iowa, in accordance with the Plat
thereof Recorded in Plat Book 57 at Page 277 of the Records of the Johnson
County Recorder's Office; Thence N11 °24'58 "W, along the East Line of said
Lindemann Subdivision - Part Four A, a distance of 297.18 feet; Thence
N78 035'02 "E, 120.00 feet; Thence N11 °24'58 "W, 23.08 feet; Thence N78 °35'02 "E,
127.85 feet; Thence N89 °54'42 "E, 690.59 feet; Thence N00 °05'18 "W, 36.86 feet;
Thence N89 054'42 "E, 180.00 feet to a Point on the East Line of Lindemann
Subdivision - Part Four, to Iowa City, Iowa, in accordance with the Plat thereof
Recorded in Plat Book 47 at Page 78 of the Records of the Johnson County
Recorder's Office; Thence S00 005'18 "E, along said East Line, 346.86 feet, to the
Point of Beginning. Said Tract of Land contains 7.49 Acres, and is subject to
easements and restrictions of record.
WHEREAS, the Department of Neighborhood and Development Services and the Public Works
Department examined the proposed final plat and subdivision, and recommended approval; and
WHEREAS, a dedication has been made to the public, and the subdivision has been made with the
free consent and in accordance with the desires of the owners and proprietors; and
WHEREAS, said final plat and subdivision are found to conform with Chapter 354, Code of Iowa
(2013) and all other state and local requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
The said final plat and subdivision located on the above - described real estate be and the
same are hereby approved.
2. The City accepts the dedication of the streets and easements as provided by law and
Resolution No. 14 -206
Page 2
specifically sets aside portions of the dedicated land, namely streets, as not being open for
public access at the time of recording for public safety reasons.
3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed,
upon approval by the City Attorney, to execute all legal documents relating to said
subdivision, and to certify a copy of this resolution, which shall be affixed to the final plat after
passage and approval by law. The City Clerk shall record the legal documents and the plat at
the office of the County Recorder of Johnson County, Iowa at the expense of the
owner /subdivider.
Passed and approved this 30th day of ,tune , 2014.
MAYOR
Approved by
ATTEST:
CITY CLERK City Attorney's Office (p/9- y�yy
It was moved by trims and seconded by Payne the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
_ X Botchway
X Dickens
X Dobyns
X Hayek
X Mims
X Payne
x Throgmorton
padllemplateslFinal Plat - Resolution (4).doc. doc
To: City Council
Item: SUB14 -00010
Lindemann Subdivision Part 4B
GENERAL INFORMATION
STAFF REPORT
Prepared by: Robert Miklo
Date: June 27, 2014
Applicant: Southgate Development
755 Mormon Trek Blvd
Iowa City, IA 52246
(319)337 -4195
gsiders @sgdev.net
Property Owner
Requested Action:
Purpose:
Location:
Size:
Existing Land Use and Zoning:
Surrounding Land Use and Zoning:
Comprehensive Plan:
Neighborhood Open Space District:
File Date:
60 Day Limitation Period:
Walden Wood Associates LLC
755 Mormon Trek Blvd.
Iowa City, IA 52244
Final plat approval
Development of a 28 -lot residential subdivision
Camden Road
7.49 acres
Planned Development Overlay (OPD5)
North: Agricultural (OPD8)
South: Residential (OPD8)
East: Residential (OPD8)
West: Residential (OPD5)
Low density single family residential
Lower West Branch (NE3)
May 27, 2014
July 25, 2014
BACKGROUND INFORMATION:
The applicant, Southgate Development, has submitted a final plat for a 39 -lot, 7.41 -acre
subdivision located at Lillian Street. The preliminary plat for Lindemann Subdivision Parts 4B, 6 &
7 was approved on February 18, 2014.
ANALYSIS:
The final plat of Lindemann Subdivision Part 4B is in general compliance with the approval of the
preliminary plat and subdivision regulations. The property is subject to a Conditional Zoning
Agreement (CZA) that requires the developer to contribute funds to the City for the reconstruction
2
of Lower West Branch Road, inclusion of a greenway and trail along the stream and wetland
corridor, and an interconnected street pattern including future connections to Lower West Branch
Road. Construction drawings are currently being reviewed by staff.
Neighborhood parkland or fees in lieu of: The applicant has dedicated the stream corridor to
the west of the property as open space and will extend the Court Hill Trail. This dedication
satisfies the open space requirements of the Neighborhood Open Space Ordinance and the
required greenway dedication of the CZA, therefore there are no additional open space
requirements for this subdivision.
Infrastructure Fees: At the time of final plat approval the applicant will be required to pay $395
per acre for water main extension fees and a sanitary sewer tap -on fee of $1,038.26 per acre. Per
the CZA, the applicant is required to pay $123,456.21 for the reconstruction of Lower West
Branch Road. This fee satisfies the obligation for Lindemann Subdivision, Parts 4A, 413, 5, 6 and
7. Payment of these fees should be addressed in the legal papers.
STAFF RECOMMENDATION
Staff recommends approval of SUB14- 00009, the final plat of Lindemann Subdivision Part 4B, a
28 -lot, 7.49 acre residential subdivision located at Lillian Drive subject to approval of construction
drawings and legal papers by the City Engineer and City Attorney.
ATTACHMENTS:
1. Location
2. Final plat
Approved by:
Doug Boothroy, Director
Department of Neighborhoo and Development
PCD%Staff Reports%subl4 -00010 staff report.dou
REVISED
Prepared by: Eleanor Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 14 -207
RESOLUTION REQUESTING SUBMISSION OF THE QUESTION OF THE
IMPOSITION OF A LOCAL SALES AND SERVICES TAX TO THE QUALIFIED
ELECTORS OF THE INCORPORATED AND UNINCORPORATED AREAS OF
JOHNSON COUNTY.
WHEREAS, Chapter 4238 of the Iowa Code provides for the imposition of certain local option
taxes, including a local sales and services tax; and
WHEREAS, the Code provides that the question of the imposition of a local sales and services
tax shall be submitted to the registered voters of the incorporated and unincorporated areas of
the county upon receipt by the county commissioner of elections of the motion or motions,
requesting such submission, adopted by the governing body or bodies of the city or cities within
the county representing at least one -half the population of the county; and
WHEREAS, the City Council of the City of Iowa City, Iowa is the governing body of a city whose
population constitutes in excess of one -half of the population of Johnson County; and
WHEREAS, it is estimated that the State property tax reform legislation passed in 2013 will
result in lost property tax revenue of $37 million over the next 10 years to the City of Iowa City
and the potential for an additional $14.7 million in lost revenue if the State fails to honor its
backfill commitments; and
WHEREAS, in addition to other strategies such as controlled spending and the creation of
operating efficiencies, it is essential for the City to diversify its revenues if it is to have funds
available to implement the Council's strategic plan to foster a more inclusive and sustainable
Iowa City through a commitment to healthy neighborhoods, a strong urban core, strategic
economic development activities, a solid financial foundation and enhanced communication and
marketing; and,
WHEREAS, with the exception of the Iowa City and Des Moines areas, all metropolitan areas in
the State of Iowa have a local option sales tax which allows them to diversify their revenue
structure, reduce their property tax rates and invest in community priorities; and
WHEREAS, while Iowa City has lowered its property tax rate in each of the last three years
through reduced staffing and restructuring, it still has the fourth highest property tax rate of the
ten largest cities in the State and a rate that is significantly higher than its neighboring
communities, putting it at a competitive disadvantage both in the region and the State; and
WHEREAS, significant additional reductions in Iowa City's property tax rate will require an
alternative revenue stream; and,
WHEREAS, adequate funding for the construction and maintenance of public street
infrastructure is essential to creating and maintaining a strong urban core and healthy
neighborhoods; and,
WHEREAS, maintenance of City streets has been deferred due to inadequate revenues in the
Road Use Tax Fund; and,
WHEREAS, adequate funding of street and trail infrastructure to serve pedestrians, bicycles and
elderly and disabled persons is essential to fostering a sustainable and inclusive community;
and,
WHEREAS, in recognition of the need for additional affordable housing in the Iowa City
metropolitan area, and in furtherance of the City's commitment to Healthy Neighborhoods, the
City's 2014 -2015 strategic plan includes a new initiative to evaluate programs and methods to
promote affordable housing; and,
WHEREAS, the Iowa City area is home to a network of entities that are dedicated to increasing
the availability of affordable housing and able to effectively and efficiently implement affordable
housing projects in the event that additional revenue is made available to them; and,
WHEREAS, when compared to other available sources of revenue the local option sales tax
provides the greatest amount of revenue with the least financial impact on city residents
because a substantial portion of the revenue would come from visitors to the Iowa City
metropolitan area; and,
WHEREAS, the City Council finds it to be in the best interests of the City for the voters to be
asked whether a 1 cent local sales and services tax should be imposed for a period of ten (10)
years and used by the City of Iowa City for property tax relief, public street and trail
infrastructure and affordable housing as set forth in the ballot proposition stated below.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, as follows:
1. The following ballot proposition language for the proposed imposition of a local sales and
services tax is approved:
SHALL THE FOLLOWING PUBLIC MEASURE BE ADOPTED? Yes
lZro,
Summary: To authorize imposition of a local sales and services tax in the cities of Iowa City,
and the unincorporated area of Johnson County
at the rate of one percent (1 %) to be effective from July 1, 2015 until June 30, 2025.
A local sales and services tax shall be imposed in the cities of Iowa City, ,
and in the unincorporated area of Johnson County at the rate of one percent (1 %) to be
effective from July 1, 2015 until June 30, 2025.
Revenues from the sales and services tax are to be allocated as follows:
FOR THE CITY OF IOWA CITY:
50% for property tax relief.
40% for maintenance, repair, construction and reconstruction of public streets, trails
and associated infrastructure.
10% for programs and initiatives that increase affordable housing.
2. The Johnson County Commissioner of Elections is hereby requested and authorized to place
said ballot proposition language on the ballot for a special election to be held on the date of the
general election on November 4, 2014.
3. The Board of Supervisors is hereby requested to consider the Iowa City City Council's
request to direct that the ballot contain a provision for the repeal, without election, of the local
sales and service tax on June 30, 2025.
3. The City Clerk is hereby authorized and directed to promptly provide a certified copy of this
resolution to the Johnson County Commissioner of Elections and to notify the Johnson County
Board of Supervisors of the adoption of this resolution.
Passed and approved this 30th day of June , 2014.
proved
7
City Attorney's Office
MAYOR
ATTEST: t%
CLERK
Resolution No.
Page 4
14 -207
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES:
x
x
x
x
x
DAYS:
ABSENT:
Botchway
Dickens
Dobyns
Hayek
Mims
x Payne
x Throgmorton
Prepared by: Eleanor Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO. 14 -207
RES LOTION REQUESTING SUBMISSION OF THE QUESTION THE
IMPO TION OF A LOCAL SALES AND SERVICES TAX TO TH QUALIFIED
ELECT S OF THE INCORPORATED AND UNINCORPORAT I AREAS OF
JOHNSO OUNTY.
WHEREAS, Chapter 3B of the Iowa Code provides for the imp ition of certain local option
taxes, including a local s les and services tax; and
WHEREAS, the Code provi s that the question of the imp ition of a local sales and services
tax shall be submitted to the re istered voters of the inco orated and unincorporated areas of
the county upon receipt by the c my commissioner of lections of the motion or motions,
requesting such submission, adop d by the governi body or bodies of the city or cities within
the county representing at least one alf the popul on of the county; and
WHEREAS, the City Council of the City f Iowa Zity, Iowa is the governing body of a city whose
population constitutes in excess of one-h of )fie population of Johnson County; and
WHEREAS, it is estimated that the State pr rty tax reform legislation passed in 2013 will
result in lost property tax revenue of $37 illio over the next 10 years to the City of Iowa City
and the potential for an additional $14.7 illion i lost revenue if the State fails to honor its
backfill commitments; and
WHEREAS, in addition to other str egies such as co trolled spending and the creation of
operating efficiencies, it is essential for the City to dive ify its revenues if it is to have funds
available to implement the Coun I's strategic plan to fo er a more inclusive and sustainable
Iowa City through a commitme to healthy neighborhood a strong urban core, strategic
economic development activit s, a solid financial foundatio and enhanced communication and
marketing; and,
WHEREAS, with the exce tion of the Iowa City and Des Moines reas, all metropolitan areas in
the State of Iowa have a ocal option sales tax which allows them \o diversify their revenue
structure, reduce their prYoperty tax rates and invest in community iorities; and
WHEREAS, while to a City has lowered its property tax rate in each f the last three years
through reduced st ing and restructuring, it still has the fourth highe property tax rate of the
ten largest cities i the State and a rate that is significantly higher than s neighboring
communities, put ng it at a competitive disadvantage both in the region knd the State; and
WHEREAS, sigfiificant additional reductions in Iowa City's property tax rat will require an
alternative rev nue stream; and,
WHEREAS adequate funding for the construction and maintenance of public Xtreet
infrastructure is essential to creating and maintaining a strong urban core and h althy
neighborhoods; and,
WHEREAS, maintenance of City streets has been deferred due to inadequate reve es in the
Road Use Tax Fund; and,
WHEREAS, adequate funding of street and trail infrastructure to serve pedestrians, bicycles and
elderly and disabled persons is essential to fostering a sustainable and inclusive community;
and,
WHEREAS, in recognition of the need for additional affordable housing in the Iowa City
metropolitan area, and in furtherance of the City's commitment to Healthy Neighborhoods, the
City's 201 015 strategic plan includes a new initiative to evaluate programs and methods to
promote affor ble housing; and,
WHEREAS, the to a City area is home to a network of entities that are dedicated to increasing
the availability of affXdable housing and able to effectively and fficiently implement affordable
housing projects in the vent that additional revenue is made av�y ilable to them; and,
WHEREAS, when compar to other available sources of rev ue the local option sales tax
provides the greatest amoun f revenue with the least finan al impact on city residents
because a substantial portion o he revenue would come m visitors to the Iowa City
metropolitan area; and,
WHEREAS, the City Council finds it t e in the bes nterests of the City for the voters to be
asked whether a 1 cent local sales and ervices to should be imposed for a period of ten (10)
years and used by the City of Iowa City fo prope tax relief, public street and trail
infrastructure and affordable housing as serlortVin the ballot proposition stated below.
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, as follows:
1. The following ballot proposition lang ge for the roposed imposition of a local sales and
services tax is approved:
SHALL THE FOLLOWING P/UBL EASURE BE ADO TED? Yes
No
Summary: To authorize imp a local sales and services x in the cities of Iowa City,
and the unincorpor ed area of Johnson County
at the rate of one percent %) to be effective from July 1, 2015 unti une 30, 2025.
A local sales and servic s tax shall be imposed in the cities of Iowa Cit
at the rate of one perc t (1 %) to be effective from July 1, 2015 until Jun 30, 2025.
Revenues fro/the ales and services tax are to be allocated as follows:
FOR THE CITOWA CITY:
50% perty tax relief.
40 °/d for maintenance, repair, construction and reconstruction of public stree%, trails
and associated infrastructure.
10% for programs and initiatives that increase affordable housing.
2. The Johnson County Commissioner of Elections is hereby requested and authorized to place
said ballot proposition language on the ballot for a special election to be held on the date of the
general election on November 4, 2014.
3. The Board of Supervisors is hereby requested to consider the Iowa City City Council's
request to direct that the ballot contain a provision for the repeal, without election, of the local
sales and service tax on June 30, 2025.
3. The City Clerk is hereby authorized and directed to promptly provide a certified co y of this
resolution to the Johnson County Commissioner of Elections and to notify the John n County
Board of,,Supervisors of the adoption of this resolution.
Passed aitq approved this 30th day of June ,/ 2014.
M'6 7
rove ATTEST: C
IT CLERK
& - aL/
City Attorney's Office
Resolution No. 14 -207
WA
WHEREAS, adequate funding of street and trail infrastructure to serve pedestrians, bicycles and
elderly and disabled persons is essential to fostering a sustainable and inclusive community;
and,
WHEREAS, in recognition of the need for additional affordable housing in the Iowa City
metropolitan area, and in furtherance of the City's commitment to Healthy Neighborhoods, the
City's 2014 -2015 strategic plan includes a new initiative to evaluate programs and methods to
promote affordable hl� using; and,
WHEREAS, the Iowa CN area is home to a network of entities that are de icated to increasing
the availability of affordabX housing and able to effectively and efficiently ' plement affordable
housing projects in the eve that additional revenue is made available to hem; and,
WHEREAS, when compared t other available sources of revenue the ocal option sales tax
provides the greatest amount of Vvenue with the least financial impap on city residents
because a substantial portion of t revenue would come from visit s to the Iowa City
metropolitan area; and,
WHEREAS, the City Council finds it to a in the best interests the City for the voters to be
asked whether a 1 cent local sales and ervices tax should b imposed for a period of ten (10)
years and used by the City of Iowa City f property tax reliof, public street and trail
infrastructure and affordable housing ass forth in the b@Aot proposition stated below.
NOW, THEREFORE, BE IT RESOLVED BY
CITY, IOWA, as follows:
1. The following ballot proposition language for
services tax is approved: ,
CITYCOUNCIL OF THE CITY OF IOWA
proposed imposition of a local sales and
SHALL THE FOLLOWING PUBLIC MEASU E BE A \se ED? Yes
No
Summary: To authorize imposition of local sales aices ta x in the cities of Iowa City,
and the unin orporated area of Johnson County
at the rate of one percent (1 %) to b effective from July 1, 20 5 until June 30, 2025.
A local sales and services tax sh II be imposed in the cities of I a City,
at the rate of one percent (1 %) be effective from July 1, 2015 u til June 30, 2025.
Revenues from the sales and'services tax are to be allocated as fol
FOR THE CITY OF IOWA ,CITY:
60% for property tax relief.
30% for maintenance, repair, construction and reconstruction of plic streets and
associated infrastructure. \\
10% for programs and initiatives that increase affordable housing.
CITY OF IOWA CITY �
MEMORANDUM
Date: June 26, 2014
To: Tom Markus, City Manager
From: Steve Long, Neighborhood Services Coordinator
Re: Affordable Housing for the Local Option Sales Tax
This memo is to clarify the definition of affordable housing for a portion of the proceeds
from the proposed Local Option Sales Tax (LOST) and also to recommend uses of the
LOST funds.
The generally accepted definition of affordability is for a household to pay no more than
30% of its annual income on housing, including utility costs. The definition of affordable
housing often depends on the source of funding for a particular project. For instance,
City staff administers a variety of federal programs that require housing to be affordable
for those households under 80% of area median income as annually defined by the U.S.
Department of Housing and Urban Development (HUD). For rental projects, rent is
capped at the HUD Fair Market Rent (FMR) for Community Development Block Grant
(CDBG) and HOME Investment Partnerships Program (HOME) funded projects.
Under the HOME program, the purchase price or after - rehabilitation value of owner -
occupied homes may not exceed the HUD Homeownership Value Limit which is
currently $200,000.
Staff recommends that the City define affordable housing as housing that is affordable
for households under 80% of area median income (AMI) for rental homes and under
120% AMI for owner - occupied homes. In addition, maximum rents should be at or
below the HUD Fair Market Rent levels and purchase prices should be capped at the
HUD Homeownership Value Limit of $200,000.
That would equate to income levels as follows:
For rental units, using the HUD determined Fair Market Rent (FMR) monthly rent limits
for Iowa City is appropriate. Those monthly rent limits are as follows:
Studio $ 558.00
One - bedroom $ 668.00
Two - bedroom $ 851.00
Three - bedroom $1,254.00
The annual income limits, monthly rent limits and maximum sales price figures may be
adjusted as HUD makes amendments.
80% AMI
120% AMI
One person household annual income
$44,550
$66,840
Two person household annual income
$50,900
$76,320
Three person household annual income
$57,250
$85,920
Four person household annual income
$63,600
$95,400
For rental units, using the HUD determined Fair Market Rent (FMR) monthly rent limits
for Iowa City is appropriate. Those monthly rent limits are as follows:
Studio $ 558.00
One - bedroom $ 668.00
Two - bedroom $ 851.00
Three - bedroom $1,254.00
The annual income limits, monthly rent limits and maximum sales price figures may be
adjusted as HUD makes amendments.
June 26, 2014
Page 2
Some suggested uses of the LOST funds are as follows:
• Downpayment assistance programs for homeownership
• Land banking for future affordable housing development
• UniverCity Neighborhood Partnership or similar neighborhood stabilization
programs
• Creation of long -term affordable rental housing
• Creation of shelter and transitional housing opportunities
• Creation of homeownership opportunities
• Improving and rehabilitating existing affordable owner - occupied and rental
homes
Please feel free to contact me at 356 -5250 or at steve - long @iowa - city.org if you have
any questions.
Cc: Doug Boothroy, Director of Neighborhood and Development Services
smt 4:1 F:
�4 ON
Date: June 26, 2014
CITY OF IOWA CITY
MEMORANDUM
To: Tom Markus, City Manager
From: Simon Andrew, Administrative Analyst
Re: Property Tax Revenue by Property Class
Introduction:
At the June 17 work session discussion of Local Option Sales Tax options, the questions were
raised as to what percentage of City property tax dollars come from each of the property
classifications, e.g. residential, commercial, etc. and whether these property classes can be
taxed at different rates. Please find attached a summary of property valuations and property tax
dollars by property class for fiscal years 2013 -2014 and 2014 -2015. Property classes cannot be
taxed at different rates.
History/Background:
It is important to note some caveats with this analysis. Iowa Department of Management
property valuation reports by class do not include property tax dollars. Conversely, state budget
forms distinguish property tax dollars by levy type, not property class. Property valuation
reports note that they should not be used to calculate property tax dollars, as after exemptions,
appeals, delinquent payments, etc. property tax dollars may not exactly match the calculation
using valuation, rollback percentage, and tax rate. However, any discrepancy in the exact
number of property tax dollars collected is not material enough to affect the percentages of
property tax dollars by property class.
Further, not all levies apply to all property valuation; for example the debt service levy applies to
TIF valuations with certified TIF debt, whereas other levies do not. The percentages presented
use property subject to all City levies.
The multi - family residential property classification created with 2013 state property tax reform is
as of yet not represented on state valuation reports. This new property class will be taxed at a
lower percentage each year until it reaches the residential rollback percentage in the year 2022.
With additional research, actual property tax dollars can be communicated more exactly,
however, this will not affect the rounded percentages presented.
Property subject to all Iowa City levies:
Property
Class
FY14
Valuation
ova
FY14
Rollback
%
FY14 Tax
Dollar %
FYI
Valuation
ova
FYI
Rollback
%
FYI Tax
Dollar %
Residential
74%
53%
60%
74%
54%
62%
Commercial
24%
100%
37%
24%
95%
35%
Industrial
2%
100%
2%
2%
95%
2%
Railroads
<1%
100%
<1%
<1%
95%
<1%
Utilities*
<1%
100%
<1%
<1%
100%
<1%
*Does not include gas & electric utilities, as they are subject to an excise tax and not property
taxes.
FY13 -14
Non- TIF.....
Percentage of
100%
Rollback
Taxable
Percentage of
Tax Revenue to
100 %Valuation
valuation••••
Percentage
Valuation-
Taxable valuation
Levy Rate
the City
Residential
$3,367,051,717
73.77%
52.8166%
$1,776,096,066
59.73%
$16.805
$29,847,685
Commercial
$1,113,600,025
24.40%
100.00000A
$1,113,600,025
37.45%
$16.805
$18,714,293
Industrial
$72,834,630
1.60%
100.0000%
$72,834,630
2.45%
$16.805
$1,224,002
Railroads
$3,205,453
0.07%
100.0000°.5
$3,205,451
0.11%
$16.805
$53,868
Utilities"
$10,816,940
0.24%
100.0000%
$10,816,940
0.36%
$16.805
$181,781
Military Exemption
- $3,059,502
-0.07%
- $3,059,502
-0.10%
$16.805
- $51,416
subtotal - all levies
$4,564,449,261
$2,973,493,610
$16.805
$49,970,214
Ag Land••"
$2,617,340
59.9334%
$1,568,661
$3.004
$4,712
Ag Buildings***
$38,300
59.9334%
$22,954
$3.004
$69
Homestead
- $10,616
subtotal Ag
$2,645,024
$1,591,615
$3.004
$4,781
TIF - Debt Service only
Residential
$4,802,843
100.0000%
$4,802,843
$4.030
$19,354
Commercial
$4,853,885
100.0000%
$4,853,885
$4.030
$19,559
Industrial
$4,457,180
100.0000%
$4,457,180
$4.030
$17,961
subtotal - w /Debt Service $50,031,869
SSMID - pass through $137,659,815 100.0000% $137,659,815 $2.000 $275,320
Total without Gas & Electric $50,307,189
G &E Utilities" $87,100,183 $46,813,214
-Figures won't match 100% valuation multiplied by rollback, due to rounding, exemptions, etc.
' "Gas and Electric utilities are in a separate class, as they are not subject to property taxes. They are subject
to the G & E excise tax which roughly mirrors the property tax rate but captures revenue
from out of state utility companies selling energy in Iowa.
... Ag property taxed at a different rate.
....Percentage of valuation subject to all levies. Excludes G & E utilities but Includes military exemptions.
• "••'TIF Revenue is not considered property tax- it is represented in Special Revenue on State forms.
The TIF valuation above is only subject to the Debt Service levy.
FY14 -15
$3,638,120
43.3997%
Non - TIF •' "•
$3.004
$4,743
Ag Buildings***
$42,800
43.3997%
Percentage of
$3.004
$56
Percentage of
- $10,603
100%
Rollback
Taxable
Taxable
$1,597,501
Tax Revenue to
$4,798
100 %Valuation
valuation ""
Percentage
Valuation•
valuation
Levy Rate
the City
Residential
$3,488,112,611
73.85%
54.4002%
$1,894,079,854
61.76%
$16.705
$31,640,983
Commercial
$1,144,437,631
24.23%
95.0000%
$1,086,556,293
35.43%
$16.705
$18,151,140
Industrial
$80,153,614
1.70%
95.0000%
$76,128,877
2.48%
$16.705
$1,271,748
Railroads
$3,827,506
0.08%
95.0000%
$3,636,130
0.12%
$16.705
$60,742
Utilities *'
$9,599,528
0.20%
100.0000%
$9,599,528
0.31%
$16.705
$160,362
Military Exemption
- $2,939,122
-0.06%
- $2,939,122
-0.10%
$16.705
- $49,393
subtotal -all levies
$4,723,191,768
3,067,061,560
$16.705
$51,235,877
Ag Land•'"
$3,638,120
43.3997%
$1,578,926
$3.004
$4,743
Ag Buildings***
$42,800
43.3997%
$18,575
$3.004
$56
Homestead
- $10,603
subtotal All
$3,670,317
$1,597,501
$3.004
$4,798
TIF - Debt Service only
Residential
$7,587,849
100.0000%
$7,587,849
$4.130
$31,335
Commercial
$13,202,459
100.0000%
$13,202,459
$4.130
$54,521
Industrial
$341,266
100.0000%
$341,266
$4.130
$1,409
subtotal - w /Debt Service
$51,327,941
SSMID - pass through
$140,394,837
100.0000%
$140,394,837
$2.000
$280,790
Total without Gas & Electric
$51,608,731
G &E Utilities-- $78,642,915 $47,004,994
-Figures won't match 100%valuation multiplied by rollback, due to rounding, exemptions, etc.
--Gas and Electric utilities are in a separate class, as they are not subject to property taxes. They are subject
to the G & E excise tax which roughly mirrors the property tax rate but captures revenue
from out of state utility companies selling energy In Iowa.
...Ag property taxed at a different rate.
****Percentage of valuation subject to all levies. Excludes G & E utilities but includes military exemptions.
•••' "TIF Revenue is not considered property tax- it is represented in Special Revenue on State forms.
The TIF valuation above is only subject to the Debt Service levy.
5
Marian Karr
From: John Thomas <johnfredericthomas @gmail.com>
Sent: Sunday, June 29, 2014 8:34 AM
To: Council
Subject: Local Option Sales Tax
Dear Members of City Council,
While I strongly support exploring effective ways of reducing our reliance on property taxes for revenue, I urge
you to defer placing the Local Option Sales Tax on the ballot until 2015. Jim Throgmorton's memo of June 26
raises a number of valid concerns, and proposes an alternative distribution heading in a direction that I believe
will receive voter support. I would like to add the following comments.
• Before passing judgement on Iowa City's current property tax rate, I need to better understand the
reasons why it is higher than the rates in surrounding cities. How do the goods and services we receive
compare with theirs, and do they justify higher rates?
In addition to the poor condition of our street infrastructure, I would say Iowa City's public realm has an
overall feeling of being tired and neglected. This quality affects residents and visitors alike and
undermines our appeal when compared with other towns and cities. To improve Iowa City's quality of
life and image, we need to match the Iowa City Community School District's reinvestment in our
schools with a similar reinvestment in our public realm.
• Iowa City desperately needs more diverse, affordable housing of a quality that will be embraced by the
community. As noted in the 2013 survey of citizen satisfaction, the quality of new development received
poor ratings. Thus, in addition to increasing our housing investment, our design standards must ensure
that it generates fiscal wealth and community prosperity.
John Thomas
Iowa City
Marian Karr
From: Figdor, Carrie <carrie -fgdor @uiowa.edu>
Sent: Sunday, June 29, 2014 12:25 PM
To: Council
Subject: support for jim throgmorton's amendments
I am writing to express my support for Jim Throgmorton's amendments regarding the proposed LOST tax, as
detailed in his letter to the council.
Thank you.
Dr. Carrie Figdor
Associate Professor, Department of Philosophy and Interdisciplinary Graduate Program in Neuroscience
University of Iowa
260 EPB
Iowa City, IA 52242
(319) 335 -0093
carrie -fi dor , uiowa.edu
0
Marian Karr
From:
Christina Welu- Reynolds <chriswelu @gmail.com>
Sent:
Sunday, June 29, 2014 11:57 PM
To:
Council
Subject:
LOST
Dear City of Iowa City Council Members,
On Monday, June 30th members of the Council will be holding a special work session to discuss the Local
Option Sales Tax (LOST). Part of the discussion will be how Iowa City's portion of the sales tax will be spent
if voters of Iowa City and other related cities approve the tax.
The draft resolution shows 60% of the sales tax revenue would be allocated to "property tax relief', 30% to
"maintenance, repair, construction and reconstruction of public streets and associated infrastructure ", and 10%
to "programs and initiatives that increase affordable housing."
Allocating 60% of the LOST revenue toward property tax relief is too high. Iowa City attracts people because
of the unique features of the city, including walkable neighborhoods, mixed neighborhoods, the schools, parks
and the aesthetic nature of the central district. My husband and I are both public school employees and would
consider ourselves somewhere in the middle class. We have purchased three different homes in Iowa City and
never was the property tax mill rate a factor when making a purchase. Instead, we considered what assets Iowa
City has to offer. A higher percentage of the LOST revenue would be better spent on investing in our
neighborhoods and quality housing. I would also ask that a process be developed where the general public can
give input regarding how Iowa City's share of the LOST revenue would be spent.
Please consider decreasing the percentage of LOST revenue for property tax relief and increasing revenue that
continues to enhance the unique character of Iowa City which is why people choose to live here.
Thank you for taking the time to read this email and for serving on our City Council.
Christina Welu- Reynolds
06/18/2014 01:06 48970 RADIOLOGY PAGE 01/01
June 18, 2014
Iowa. City Council
RE: Local Option. Sales Tax (LOST)
.I. will vote against any increase in taxes (as will, my spouse). 1.. work at the UI and
have not received any increase in wages over the past two years (not even a cost of
living raise). As a result, as costs keep rising I have had to tighten. any belt. I
suggest the council do the same.
Michael Briggs
2832 Brookside Drive
Iowa City 52245
r*
n
Marian Karr
From:
Matthew J. Hayek <mhayek @hhbmlaw.com>
Sent:
Monday, June 23, 2014 10:08 AM
To:
Marian Karr
Subject:
FW: mrap
From: Ed Mary Flaherty fmailto:flahe[yemft.com]
Sent: Monday, June 23, 2014 9:41 AM
To: pulkrab@co.Johnson.ia.us
Cc: rod sullivan; janelle Rettiig; pat harney; mikecarberry; tneuzil; Terry Dickens; Jim Throgmorton; Kingsley Botchway;
Matt Hayek; Susan Mims
Subject: mrap
Free? We the taxpayers paid nearly a million dollars for it in the first place to help mount a war
effort that was based on lies. So now it's "given" to us locals so the militarization of the domestic
scene can advance, with the added benefit that the war contractors can build more, charging us even
more.
No justification for elected public officials to be blind -sided on this
imho
Ed Flaherty, Veteran for Peace
Marian Karr
From:
Carol deProsse <lonetreefox @mac.com>
Sent:
Wednesday, June 25, 2014 7:14 AM
To:
Council
Subject:
Sales Tax
Councilors,
I write to urge you not to place the matter of a penny increase in the sales tax on the ballot this fall. I can't imagine
voters voting to increase their taxes twice by voting for both the sales tax increase and voting 'yes' on the proposed
Courthouse expansion. Please wait until spring, 2015, or another time to place the LOST matter to voters. We need the
Courthouse upgrade so desperately; I would hate to have it fail.
Thank you.
Carol DeProsse
1401 Burry Drive
IC
Marian Karr
From: Jim Throgmorton
Sent: Thursday, June 26, 2014 9:40 AM
To: Council
Subject: Local Option Sales Tax
Attachments: LOST memo
Colleagues,
At our special work session on the 30th we will be discussing whether or not to call for a referendum on a Local Option
Sales Tax. We will also be discussing possible ways of allocating Iowa City's share of the LOST funds, should a majority of
voters favor the proposed sales tax.
I wanted to share my own thoughts with you prior to the meeting, so that you would have an opportunity to consider
them.
My recommendations are contained in the attached memo. I look forward to hearing your own views, and to making a
decision that is in the best interest of all the people and businesses of the city.
Jim Throgmorton
District C, Iowa City City Council
Please Note: No correspondence (including emails) to City Council is confidential. All correspondence (including emails)
to me as a City Council member about City issues is a public record.
To: City Council and City Manager Tom Markus
From: Jim Throgmorton
Subject: Possible Local Option Sales Tax
Date: June 26, 2014
Our June 12 information packet contained a report from the Local Option Sales Tax
(LOST) Exploratory Committee. The committee recommended that voters be asked to
approve a I% LOST on the November 2014 ballot, that the tax remain in effect for 10
years, and that 60% of Iowa City's sales tax revenues be dedicated to property tax relief,
30% to street improvements, and 10% to affordable housing.
I have read and considered the report carefully, have had very fruitful conversations with
Susan Mims and Tom Markus, and have spoken with a range of people about it,
including a variety of locally - elected officials.
This process has led me to the following conclusions, all of which I would be happy to
elaborate upon during our June 30 work session.
First, I agree with the committee that we need to find a way to replace revenues lost due
to the State's property tax reforms, etc. A local sales tax appears to be our best available
option.
Second, I am not persuaded that we need to place the proposed tax on this coming
November's ballot.
Third, I don't believe Iowa City voters will support a LOST unless they have sufficient
opportunity to propose and consider various ideas about how the revenues should be
spent.
Fourth, acting precipitously now risks worsening our existing relationships with both
Johnson County and Coralville. This moment provides us with an opportunity to improve
relationships, not worsen them.
Fifth, we should defer placing the proposed LOST before the voters until November
2015, or perhaps in a special election. In the months between now and then, we should
invite city councilors from contiguous cities to engage in negotiations about how the
LOST revenues should be distributed among the five cities. And we should initiate a
process by which the general public of Iowa City can propose and consider alternative
ways of distributing Iowa City's share of the LOST revenues.
Sixth, I cannot support the committee's proposed allocation. It allocates too much money
to property tax relief and is likely to be perceived by a large percentage of voters as a
transfer of income /wealth from ordinary people to wealthier property owners.
Furthermore, I am not persuaded by the "increased competitiveness" rationale underlying
the property tax reduction. People are attracted to Iowa City by its distinctive character,
not by its property tax mill rate.
Seventh, if the full Council chooses to place the LOST referendum on this November's
ballot, I propose that we adopt the following distribution:
• 40% to property tax relief,
• 35% to "Investing for Healthier Neighborhoods,"
• 25% to "Investing in Housing, People, and a Solar Future."
Investing for the Long -Term Prosperity and Health of Existing Neighborhoods. This
category would include:
• repairing, repaving, and remarking older streets,
• installing new ADA ramps,
• dramatically improving markings for bicycle lanes and pedestrian crosswalks,
• planting and replanting trees in the public right -of -way,
• improving walking routes to neighborhood schools,
• improving existing neighborhood parks and creating small pocket parks.
Investing in Quality Housing, in People, and in a Solar Future. This category would
include:
• ensuring that more affordable housing is available for the elderly, the disabled,
and ordinary working people,
• extending the highly - successful UniverCity program,
• creating a "Housing First" shelter,
• providing storage services for homeless people,
• restoring half fares for users of SEATS,
• significantly increasing funding for social services through Aid -to- Agencies,
• initiating a substantial solar (PV) panel installation program at city -owned
facilities (such as Trueblood Park).
I recognize that each of you have your own ideas about how to allocate LOST revenues. I
look forward to hearing your ideas and to negotiating an allocation that is in the best
interest of all the people and businesses of our city.
I will not, however, be willing to allocate more than 50% of the LOST revenues to
property tax relief.
r} � C
C (D pr
Prepared by: Karin Franklin, PCD Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5232
RESOLUTION NO. 98 -372
RESOLUTION REQUESTING SUBMISSION OF THE QUESTION OF THE
IMPOSITION OF A LOCAL SALES AND SERVICES TAX TO THE QUALIFIED
ELECTORS OF THE INCORPORATED AND UNINCORPORATED AREAS OF
JOHNSON COUNTY.
WHEREAS, Section 42213.1 of the Iowa Code provides for the imposition of certain local option
taxes, including a local sales and services tax; and
WHEREAS, subsection 4 of said Section 4226.1 of the Code provides that the question of the
imposition of a local sales and services tax shall be submitted to the registered voters of the
incorporated and unincorporated areas of the county upon receipt by the county commissioner
of election of the motion or motions, requesting such submission, adopted by the governing
body or bodies of the city or cities within the county representing at least one -half the population
of the county; and
WHEREAS, the City Council of the City of Iowa City, Iowa, is the governing body of a city whose
population constitutes in excess of one -half of the population of Johnson County; and
WHEREAS, this City Council believes that there are certain projects, services, and initiatives
that are essential to the welfare and quality of life of the citizens of Iowa City; and
WHEREAS, the State - imposed rollback of residential property taxes and other State limitations
on municipal funding have impeded the City's ability to meet the needs of the community; and
WHEREAS, the local option sales and services tax will provide needed revenue to meet local
needs; and
WHEREAS, this City Council desires that the question of the imposition of a local sales and
services tax be submitted to the registered voters of the incorporated and unincorporated areas
of Johnson County; and
WHEREAS, this City Council has determined that, in the event of the approval of the imposition
of a local sales and services tax in Iowa City, the City Council will devote said revenues to the
projects, services, and initiatives enumerated on the ballot proposition stated below; and
WHEREAS, the cities of Iowa City, Hills, University Heights, Coralville, Tiffin, and North Liberty
are "contiguous cities," and therefore, pursuant to Section 42213.1, subsection 6(a) of the Iowa
Code, said cities are treated as part of one incorporated area and the local sales and services
tax will be imposed in all of said cities if a majority of the combined vote of those voting in said
cities vote in favor of its imposition; and
Resolution No. 98 -372
Page 2 D
U---"
WHEREAS, it will therefore be necessary to utilize the "contiguous cities" form of ballot
proposition, as promulgated by the Iowa Secretary of State pursuant to the Secretary's rule
making power; and
WHEREAS, said form of ballot proposition allows each of the six said contiguous cities to
designate the percent or amount of local option tax revenues that would be devoted to property
tax relief, and the proposed uses that the remainder of said revenues would be used for; and
WHEREAS, Johnson County and the other non - contiguous cities in the county are also allowed
to similarly designate the percent or amount of local option tax revenues that would be devoted
to property tax relief, and the proposed uses that the remainder of said revenues would be used
for in their respective jurisdictions.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that this City Council does hereby request the Johnson County Commissioner of
Elections to submit the question of the imposition of a 1% local sales and services tax to the
registered voters of the incorporated and unincorporated areas of Johnson County, Iowa, at a
special election to be held on March 30, 1999, said tax to be imposed effective July 1, 1999.
AND BE IT FURTHER RESOLVED that the ballot proposition state that the proceeds of the
local sales and services tax will be used and expended as follows, subject to such variation in
the form of the ballot proposition regarding application and use of local sales and services tax
revenue as may be instructed by the Johnson County Board of Supervisors or by the governing
bodies of the other cities in Johnson County provided such requests are filed with the
Commissioner of Elections on or before January 25, 1999.
Iowa City
Ballot Proposition
0% for property tax relief.
25% for water rate stabilization and /or water rate relief.
40% for renovating and expanding the public library; for constructing a community
events center; and for other capital improvements such as streets, bridges,
parks, sewers, trails, public buildings, and collaborative projects with other area
jurisdictions.
10% to support the operating expenses of the public library and the community events
center, and to support community activities and events.
10% to support the operating and capital improvement expenses of public transit and
paratransit, to include fare relief and enhanced service.
10% to support the hiring and equipping of police officers, firefighters, and/or other
public safety personnel, and for construction of related public safety
improvements.
5% to maintain and enhance funding of Johnson County area human service
agencies and activities.
Resolution No. 98 -372 (C(a 1�5) Page 3
AND BE IT FURTHER RESOLVED:
That the City of Iowa City invites Johnson County and the other cities in Johnson County to
determine and designate by motion or written resolution the percent or amount of local sales
and services tax revenues that each would devote to property tax relief, in the event the tax is
imposed in their respective jurisdictions, and the proposed use of the remainder of said
revenues, provided such designation is made on or before January 25, 1999, thus affording the
County Commissioner of Elections adequate time for publication of notice of the ballot
proposition.
AND BE IT FURTHER RESOLVED:
That the Johnson County Commissioner of Elections is hereby urged to accept such motions or
written resolutions, designating the application and use of local option sales and services tax
revenues, up to and including January 25, 1999, and to include such individual designations on
the ballot proposition form for those jurisdictions.
AND BE IT FURTHER RESOLVED:
That the City Clerk be and is hereby authorized and directed to notify the Johnson County
Board of Supervisors of the adoption of this resolution.
Passed and approved this 17th day of November J1998.
i - -
A roved by
ATTEST: L 0,),�— //' a
CI LERK City Attorney's Office
It was moved by Thornberry and seconded by Vanderhoef the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
X
Champion
X Kubby
X
Lehman
X
Norton
X
O'Donnell
_
X
Thornberry
X
Vanderhoef
WMir/r srsalwU4400
Previously distributed as IP5 in 6/12/14
COPY Information Packet
Local Option Sales Tax Exploratory Committee
Report on Findings and Recommendations
June 10, 2014
The Local Option Sales Tax Exploratory Committee members include: Susan Mims, Tom Markus, Eleanor
Dilkes, Marian Karr, Dennis Bockenstedt, Simon Andrew, and Cyndi Ambrose. The Local Option Sales
Tax Exploratory committee respectfully'submits the following report for the Iowa City City Council's
review and consideration.
Introduction
As part of the fiscal year 2015 budget process, the City Council and the City's management Identified the
City's short term and long term financial risks and determined the City's financial priorities. In addition,
the City Council determined the community's service priorities and allocated the City's scarce resources.
As part of the fiscal year 2015 budget process, there was also discussion of the financial risks that the
City Is facing and potential ways for the City to have a diverse and sustainable financial structure for the
future. These risks and priorities were derived from various sources. The major sources for discussion
Included the property tax reform legislation that passed the State legislature In May 2013 and the bi-
annual update of the City's strategic plan. These two major elements created the backdrop for this
assessment of a potential I,bcal option sales tax (LOST) referendum.
In May 2013, the State of Iowa passed property tax reform legislation. As a result of that reform
legislation, there will be a significant impact on the City's financial ability to provide services to Its
citizens. Fiscal year 2015 was the first year the bill began to take effect; however, the true impact will
materialize over the next ten years as the bill's provisions are phased in. The estimated Impact to Iowa
City Is reduced property tax revenue of $37 million over the next ten years and an additional $14.7
million of revenues to be replaced by State funding. Due to the sizable Impact of this legislation, and the
State's history of not meeting Its backfill commitments, it is important that the City seek ways to
diversify Its revenue structure, create contingencies in the event of revenue shortfalls, and look for
sources of revenues to replace those lost through this legislation. Attached to this report is a copy of a
memorandum sent from the City's Finance Director to the City Manager last May following passage of
the property tax reform legislation. The City Council also considered this legislation when it met last fall
to update the City's strategic plan.
The City Council issued the latest update to Its strategic plan during the fiscal year 2015 budget process.
The major priorities of the strategic plan were Instrumental in the development of the 2015 budget. The
Council's major priorities are fostering a more inclusive and sustainable Iowa City through a
commitment to: 1) healthy neighborhoods, 2) a strong urban core, 3) strategic economic development
activities, 4) a solid financial foundation, and 5) enhanced communication and marketing. These
priorities not only helped develop the current operating budget but also are helping shape the long term
vision of the City and the direction the City is going to go over the next decade. Given the City Council's
strategic priorities, the City's finance department is looking at various ways to develop a long term
sustainable financial structure that will support the City Council's strategic plan. In light of the property
tax reform legislation, the City Manager's office and the City's finance department have developed the
following strategies:
1) Revenue diversification —to reduce the City's reliance on property tax
2) Contingency /emergency funding —to provide flexibility to react to financial uncertainty
3) Controlled spending and operating efficiency —to reduce overall growth of the City's
expenditures that will coincide with the expected slower growth of property tax revenue
due to the recently passed legislation
The local option sales tax has the potential to help create financial stability and revenue diversification
while creating a revenue source to help fund the City Council's strategic priorities. The first
determination forthe adoption of a local option sales tax is the feasibility of implementing or renewing
this revenue source.
Feasibility
When looking at the potential feasibility of a local option sales tax, there are many statewide, regional,
and local considerations. From a statewide perspective, Iowa City should contemplate the impact that
the tax has had on other jurisdictions that have approved a local option sales tax. In addition, although
the local option sales tax is considered a 'local' tax, it is in reality a metropolitan tax that impacts the
surrounding cities and the county. How these other jurisdictions fit into the sales tax's feasibility is
important for the city to understand. Finally, the City should analyze its own experience in using a sales
tax and other local factors that will apply to its implementation.
Across the state, use of the local option sales tax is not unique anymore. With the passage of the local
option sales tax in Cedar Rapids, of the metropolitan areas in Iowa, only the Iowa City and the Des
Moines areas do not have a local option sales tax in place. The communities that currently collect a local
option sales tax are able to diversify their revenue structures and have been able to reduce their
property tax rates and invest in community amenities and infrastructure. Iowa City has lowered its
property tax rate in each of the last three years through reduced staffing and restructuring, but it still
has the fourth highest property tax rate amongst the ten largest cities in the state. From a comparative
stand point, this leaves Iowa City at a disadvantage with the other metro areas in the state. In addition,
Iowa City's property tax rate is also significantly higher than its neighboring communities of Coralville
and North Liberty. Despite efforts by City management to create operating efficiencies, consolidate
operations, and continually review service charges, the only feasible way for the city to make a
significant impact in the property tax rate that will compete with these other jurisdictions is to have an
alternative revenue stream as a means to offset and lower the city's property tax rate. The local option
sales tax versus other potential revenues sources would provide the biggest impact as it provides the
largest alternate revenue source.
Coralville and North Liberty are also significant considerations for the passage and implementation of a
local option sales tax. In order for Iowa City to adopt a local option sales tax, the referendum must be
adopted by all jurisdictions that are contiguous. Iowa City, Coralville, North Liberty, University Heights,
and Tiffin are all contiguous which means that more than fifty percent (50 %) of the total votes cast in
Iowa City and these four communities must be in favor of the sales tax for it to be adopted. This is an
important fad to note as the passage of the sales tax is not entirely in the hands of Iowa City residents.
In addition, whether the tax passes in the non - contiguous cities and the unincorporated area, also
impacts the division and distribution of the sales tax revenues amongst the other communities that are
participating. These nuances in how the local option sales taxis adopted and divided create
cooperative as well as competitive issues with the neighboring jurisdictions due to differences in taxable
sales and population. In the 2014 legislative session, legislation was proposed to alter how the local
option sales tax is adopted and split. This legislation did not pass, but it proposed de- coupling the
contiguous jurisdictions from each other to pass the sales tax. It also proposed altering the formula for
splitting the taxes collected amongst the participating jurisdictions. When this legislation was reviewed,
we determined that it was not favorable to Iowa City's interests as many of our residents utilize the
commercial areas in the surrounding communities, and it could possibly lessen the cooperation between
the jurisdictions in regards to commercial /retail development and passage of a local option sales tax.
Due to the potential for this type of legislation to resurface in future years and the issues that surround
it, we have determined that it would be more favorable for Iowa City to act on a local option sales tax
sooner.
Locally, the City has a recent history with a local option sales tax. Pursuant to special disaster relief
legislation, a 1% local option sales tax was adopted by a small margin in 2009 by Iowa City residents and
was collected from 2010 through 2013 on sales within the Iowa City limits. The local option sales tax
was for flood protection projects and was earmarked for the Dubuque Street reconstruction project
(Gateway Project) and the expansion of the South Wastewater Treatment Facility. During the four year
period, the City collected slightly over $35 million, and the sales tax was allowed to expire on June 30,
2013. Overall, we determined that the passage, the subsequent use, and the expiration of the local
option sales tax developed goodwill and trust of the general public in the City as stewards of a local
options sales tax. The citizen survey conducted in the summer of 2013 asked the poll respondents about
their support for reinstatement of the local option sales tax. 54% of the respondents supported
reinstatement of the local option sales tax and 18% were neutral to the idea with only 28% opposed.
This would seem to indicate a strong level of support without identification of uses, marketing, or
informational activities. For nearly all of the Iowa cities with a local option sales tax, the initial passage of
the tax was the most difficult with the subsequent renewals being adopted by much wider margins. In
addition, the local option sales tax seems to provide the best overall fit with the City's strategic plan
versus the other available revenue options. The City's other options include:
1) The Emergency property tax levy ($0.27 levy available). —This would generate
approximately $840,798 annually. Given the City's goal to reduce property tax rates for
economic development competitiveness, this revenue option would be inconsistent
with that strategic plan priority.
2) The Trust and Agency property tax levy (all employee benefits not levied). —This would
generate $1,791,756 or more annually. This is also a property tax levy increase and
therefor has the same drawbacks as the Emergency property tax levy. Raising property
tax rates is not consistent with the City's strategic plan priorities.
3) The Utility Franchise Fee (1% enacted, 5 %allowed). —A4 %increase in the fee would
generate approximately $3,672,916 annually. This user fee is a potential option that can
be passed by the City Council without requiring an election of the people; however, a
citizen petition could require that it be submitted to the voters. The franchise fee was
originally adopted in 2009 at 2% and then subsequently lowered to 1% in 2010 in order
to maintain the City's economic development competitiveness. This is anotherviable
option for the City.
A. The Local Option Sales Tax (1% sales tax available through referendum). This could
generate anywhere from $9,000,000 to $12,000,000 annually depending on which cities
are participating. Although this requires a referendum to implement, the potential
revenue generation is significantly higher than the other options.
With all of the various options available to the City and the City's overall strategic plan priorities, the
local option sales tax appears to provide the greatest potential revenue generation with the least
negative financial impact on city residents. Given the structure of the sales tax, a substantial portion of
the revenue would be derived from non -Iowa City residents and visitors from outside of Johnson
County. In addition, its passage would put Iowa City on equal footing with the other largest
metropolitan areas in the State of Iowa.
Use recommendations
Much like the other cities in the State of Iowa that have adopted a local option sales tax, Iowa City must
determine what the best use of the local option sales tax funds would be. The City's updated strategic
plan provides excellent guidance on how any potential funds would be allocated. This plan outlines the
City Council's vision and priorities for the City's development and future growth and has been the
underlying structure for the development of the annual operating budget. The City Council's strategic
plan priorities include fostering a more inclusive and sustainable city through:
4
1) Healthy Neighborhoods
2) A Strong Urban Core
3) Strategic Economic Development Activities
4) A Solid Financial Foundation
5) Enhanced Communication and Marketing
In addition to the strategic plan priorities, we used the results from the City's citizen survey to assist in
identifying the potential uses of a local option sales tax. During the summer of 2013, the City conducted
a survey through the International City /County Managers Association that is used by cities around the
country to gauge citizen satisfaction with City services. Through that survey, several areas were
identified as below the national benchmark for citizen satisfaction. The first identified service at this
level was street repair which was considered excellent by 6% of the respondents and good by 31% of the
respondents. These scores were "much below' the national benchmark of other communities. Another
area identified as below the national benchmark was the availability of affordable quality housing. The
City was only rated by 7% as excellent and 29% as good in this area. These rating levels placed the City
"below" the national benchmark for available affordable quality housing. Other areas receiving poor
ratings by the City were snow removal, quality of new development, land use /planning and zoning,
safety in the downtown, cable television services, and the overall direction of the City. In the majority of
the categories of the survey, however, the City was rated above or much above the national
benchmarks.
Based on the above priorities and feedback, the committee determined the following uses for a local
option sales tax: 1) 60 %- property tax relief, 2) 30 %- street improvements, and 3) 10% - affordable
housing. The reasoning for each of these categories is as follows:
1) Property tax relief (60 %) — this use is consistent with the City's strategic plan priorities of
building a solid financial foundation and strategic economic development activities. This use
of the sales tax funds could diversify the City's revenue structure and lower its reliance upon
property taxes. This would help mitigate the loss of revenue from the State property tax
reform legislation and would strengthen the City's financial position. The annual revenue
could be $5.4 to $7.2 million and could potentially lower the City's property tax rate by
$1.75 to $2.35 per $1,000 of value. This would place Iowa City's property tax rate lower
than Cedar Rapids and more competitive with Coralville's.
2) Street improvements (30 %) —the use of the local option sales tax funds for street
improvements would be consistent with the City's strategic plan priorities for a strong urban
core and healthy neighborhoods. This is also an area that has suffered deferred
maintenance due to the struggling Road Use Tax fund. Although the City has seen an uptick
in revenues since the 2010 census, it will not be enough to substantially change the annual
overlay program to recover from the years where the program stagnated and could not
keep up with inflation. These funds could also be used for the City's ADA curb /ramp
replacement program which would benefit elderly and handicapped individuals as well as
bicycles and similar forms of transportation. The local option sales tax could generate
approximately $2.7 to $3.6 million annually for street maintenance activities and projects.
3) Affordable housing (10 %) —the use of funds for affordable housing would be consistent with
the City's inclusive values and would directly correlate with the strategic plan's healthy
neighborhoods priority. In addition, this is an area identified by the citizen survey as an area
that is substandard. The allocation of funds could be anywhere from $.9 to $1.2 million
annually which could be dispersed to housing agencies, used for affordable housing
projects, or be used by the Iowa City Housing Authority.
Overall, it was felt that this mix would meet the needs of the City Council's strategic plan, the needs of
the general public, and address the financial issues facing the City due to the property tax reform
legislation. In addition to determining the use of the local option sales tax, there were other
miscellaneous issues the committee had to consider.
Other Issues
One additional consideration for the committee was whether or not the local option sales tax
should have a sunset clause. Sunset options considered included a five year clause, a ten year
clause, and no clause at all. Of those three options, it was determined that a five year clause
would be too short and not give a sufficient time period for the sales tax's impact to be
dispersed throughout the community before the sales tax would expire. On the other hand, it
was felt that the sales tax should have some future expiration date. It was generally felt that a
sunset clause would provide the general public a greater comfort level with supporting the local
option sales tax. A sunset clause would also provide the voters a chance to not renew or vote
down the sales tax in the future if they felt that it was not being used properly by the City or if
they felt it was not a good fit with the City tax structure. Due to these considerations, a 10 -year
sunset clause is recommended for the local option sales tax referendum. In addition to the
sunset clause, the sales tax referendum timeline was taken into consideration.
Other items that were reviewed for a potential local options sales tax referendum included the
timeline for City Council and voter consideration. The committee's recommended timeline is to
have a local option sales tax ballot ready for voter consideration on the general election on the
first Tuesday in November 2014. This date is being recommended for several reasons. The first
reason is that this would be less expensive to the City and the other jurisdictions since there is
already an election scheduled. The City and other jurisdictions would not have to pay for
staffing and holding a special election, which would not create additional taxpayer expense.
The second reason is that the general election would maximize voter participation. Special
elections tend to have a lower turnout, and it was felt that the general election would have a
0
larger turnout and thus achieve a greater level of participation and achieve a better
representation of the voter's wishes. In order for a ballot to be placed on the general election
in November, City Council would need to approve a resolution calling for the referendum by
August 27, 2014. This report is being prepared and presented in a time frame consistent with
this schedule.
Conclusion
The conclusion of the local option sales tax exploratory committee is as follows:
1) Adoption of a local option sales tax fits within the priorities of the City's strategic
plan, the community's service level needs, and the City's financial uncertainties, and
the sales tax would have a substantial impact on the City's ability to achieve its
initiatives and goals in these areas;
2) The local option sales tax generally has support amongst the residents due to the
prior successful passage and use by the City;
3) The local option sales tax provides the greatest potential for an alternative revenue
source with the least direct impact on residents due to much of the sales tax being
collected from non -city residents;
4) A local option sales tax should be split 60% for property tax reduction, 30% for street
improvements, and 10% for affordable housing;
5) The local option sales tax referendum should be held on the November general
election.
7
DRAFT — 5/30/14
Prepared by: Eleanor Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356 -5030
RESOLUTION NO.
RESOLUTION REQUESTING SUBMISSION OF THE QUESTION OF THE
IMPOSITION OF A LOCAL SALES AND SERVICES TAX TO THE QUALIFIED
ELECTORS OF THE INCORPORATED AND UNINCORPORATED AREAS OF
JOHNSON COUNTY.
WHEREAS, Chapter 4236 of the Iowa Code provides for the imposition of certain local option
taxes, including a local sales and services tax; and
WHEREAS, the Code provides that the question of the imposition of a local sales and services
tax shall be submitted to the registered voters of the incorporated and unincorporated areas of
the county upon receipt by the county commissioner of elections of the motion or motions,
requesting such submission, adopted by the governing body or bodies of the city or cities within
the county representing at least one -half the population of the county; and
WHEREAS, the City Council of the City of Iowa City, Iowa is the governing body of a city whose
population constitutes in excess of one -half of the population of Johnson County; and
WHEREAS, it is estimated that the State property tax reform legislation passed in 2013 will
result in lost property tax revenue of $37 million over the next 10 years to the City of Iowa City
and the potential for an additional $14.7 million in lost revenue if the State fails to honor its
backfill commitments; and
WHEREAS, in addition to other strategies such as controlled spending and the creation of
operating efficiencies, it is essential for the City to diversify its revenues if it is to have funds
available to implement the Council's strategic plan to foster a more inclusive and sustainable
Iowa City through a commitment to healthy neighborhoods, a strong urban core, strategic
economic development activities, a solid financial foundation and enhanced communication and
marketing; and,
WHEREAS, with the exception of the Iowa City and Des Moines areas, all metropolitan areas in
the State of Iowa have a local option sales tax which allows them to diversify their revenue
structure, reduce their property tax rates and invest in community priorities; and
WHEREAS, while Iowa City has lowered its property tax rate in each of the last three years
through reduced staffing and restructuring, it still has the fourth highest property tax rate of the
ten largest cities in the State and a rate that is significantly higher than its neighboring
communities, putting it at a competitive disadvantage both in the region and the State; and
WHEREAS, significant additional reductions in Iowa City's property tax rate will require an
alternative revenue stream; and,
WHEREAS, adequate funding for the construction and maintenance of public street
infrastructure is essential to creating and maintaining a strong urban core and healthy
neighborhoods; and,
WHEREAS, maintenance of City streets has been deferred due to inadequate revenues in the
Road Use Tax Fund; and,
WHEREAS, adequate funding of street and trail infrastructure to serve pedestrians, bicycles and
elderly and disabled persons is essential to fostering a sustainable and inclusive community;
and,
WHEREAS, in recognition of the need for additional affordable housing in the Iowa City
metropolitan area, and in furtherance of the City's commitment to Healthy Neighborhoods, the
City's 2014 -2015 strategic plan includes a new initiative to evaluate programs and methods to
promote affordable housing; and,
WHEREAS, the Iowa City area is home to a network of entities that are dedicated to increasing
the availability of affordable housing and able to effectively and efficiently implement affordable
housing projects in the event that additional revenue is made available to them; and,
WHEREAS, when compared to other available sources of revenue the local option sales tax
provides the greatest amount of revenue with the least financial impact on city residents
because a substantial portion of the revenue would come from visitors to the Iowa City
metropolitan area; and,
WHEREAS, the City Council finds it to be in the best interests of the City for the voters to be
asked whether a 1 cent local sales and services tax should be imposed for a period of ten (10)
years and used by the City of Iowa City for property tax relief, public street and trail
infrastructure and affordable housing as set forth in the ballot proposition stated below.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, as follows:
1. The following ballot proposition language for the proposed imposition of a local sales and
services tax is approved:
SHALL THE FOLLOWING PUBLIC MEASURE BE ADOPTED? Yes
in
Summary: To authorize imposition of a local sales and services tax in the cities of Iowa City,
and the unincorporated area of Johnson County
at the rate of one percent (1 %) to be effective from July 1, 2015 until June 30, 2025.
A local sales and services tax shall be imposed in the cities of Iowa City, ,
at the rate of one percent (1 %) to be effective from July 1, 2015 until June 30, 2025.
Revenues from the sales and services tax are to be allocated as follows:
FOR THE CITY OF IOWA CITY:
60% for property tax relief.
30% for maintenance, repair, construction and reconstruction of public streets and
associated infrastructure.
10% for programs and initiatives that increase affordable housing.
2. The Johnson County Commissioner of Elections is hereby requested and authorized to place
said ballot proposition language on the ballot for a special election to be held on the date of the
general election on November 4, 2014.
3. The Board of Supervisors is hereby requested to consider the Iowa City City Council's
request to direct that the ballot contain a provision for the repeal, without election, of the local
sales and service tax on June 30. 2025.
3. The City Clerk is hereby authorized and directed to promptly provide a certified copy of this
resolution to the Johnson County Commissioner of Elections and to notify the Johnson County
Board of Supervisors of the adoption of this resolution.
Passed and approved this day of 2014.
ZIEVIO7
Approved by ATTEST:
CITY CLERK
City Attorney's Office
CITY O F IOWA C 1 TY
MEMORANDUM
Date: May 29, 2013 COPY
To: Tom Markus, City Manager
From: Dennis Bockenstedt, Director of Finance
Re: State Property Tax Reform
On May 22, 2013, the State of Iowa legislature passed a property tax reform bill (SF295) that will have a
significant impact on the City's ability to finance services in the future. The property tax reform bill has
multiple components; the specific provisions of bill SF295 that affect the City's ability to finance services
are briefly explained below along with an estimate of the future financial impact to the City's
operations. Exhibit 'A' is attached to provide a summary of the financial impact of the provisions of
SF295 overthe next ten years.
Residential Assessment Limitation
Summary: For each assessment year beginning January 2013 and thereafter, SF295 reduces the limit of
taxable valuation growth from 4 percent to 3 percent or whichever is lowest of the agricultural and
residential classes. The City will not receive any money from the State due to lost revenue from this
provision.
Financial Impact: The overall financial impact of this change will be significant overtime, however, less
noticeable initially. The effect will be that the taxable percentage of residential property will increase at
a slower pace. Without the change, the estimated taxable percentage of residential property would be
60.85% in assessment year 2022. With the provision in place, the estimated taxable percentage in year
2022 will be 55.11 %, a reduction of 5.74 %. With approximately $3.4 billion of assessed residential
property, the impact on the City in fiscal year 2015 will be $306,121 in lost revenue which will grow to
$4,177,423 in fiscal year 2024. The cumulative loss will be $20,772,185 over the next ten years.
Commercial & Industrial Rollback
Summary: Forvaluations at January 1, 2013, commercial and industrial propertywill be rolled backto 95
percent. For valuations at January 1, 2014, commercial and industrial property will be rolled backto 90
percent. Thereafter, the two classes will be taxed at 90 percent of their assessed value. The bill
establishes a standing appropriation for the State to backfill losses to the City due to the commercial and
industrial rollback beginning in Fiscal Year 2015 and then caps the amount at Fiscal Year 2017 levels.
Financial Impact: The initial year's impact to the City will be negligible due the State's backfill of lost
revenue. In 2003, however, the State of Iowa eliminated reimbursements to cities for backfills of
personal property tax and industrial machinery and equipment property tax after similar promises. If
the State was to do the same, the loss in property tax revenue is estimated to be $1,460,203 in fiscal
year 2017. The cumulative reduction in commercial and industrial property taxes due to the percentage
rollback is estimated to be $15,417,536 over the next ten years. The maximum reimbursement from the
State would be $14,732,059.
Multi- residential Property
Summary: This provision establishes a multi - residential property classification that includes mobile
home parks, manufactured home communities, land- leased communities, assisted living facilities and
property primarily intended for human habitation containing three or more separate living quarters.
Additionally, for buildings that are not otherwise classified as residential property, that portion of a
building that is intended for human habitation can be classified as a multi - residential property, even if
May 29, 2013
Page 2
human habitation is not the primary use of the building and regardless of the number of dwelling units.
The following rollback percentages will be phased in over eight years, beginning in assessment year
2015 (fiscal year 2017).
The projected loss will not be backfilled:
• January 1, 2015
— 86.25%
• January 1,2016-
82.50%
• January 1,2017-
78.75%
• January 1,2018-
75.00%
• January 1,2019-
71.25%
• January 1,2020-
67.50%
• January 1, 2021 - 63.75%
• January 1, 2022 and thereafter —same as residential property
Financial Impact: The loss to the City in fiscal year 2017 is estimated to be $851,745. This will grow until
reaching an estimated annual loss of $3,428,308 in fiscal year 2024. The total estimated cumulative loss
will be $15,504,902 over the next ten years. None of this loss will be reimbursed by the State of Iowa.
Telecommunications Property Taxation
Summary: This provision provides partial exemption of property used by companies in the transaction of
telegraph and telephone business that is on a graduated percentage scale based upon the value of the
property. This is phased in, with half in assessment year 2013 (Fiscal Year 2015) and the remainder being
added in assessment year 2014 (Fiscal Year 2016). The projected loss will not be backfilled.
40 percent of the actual value of the property that exceeds $0 but does not exceed $20 million.
35 percent of the actual value of the property that exceeds $20 million but does not exceed $55
million.
25 percent of the actual value of the property that exceeds $55 million but does not exceed
$500 million.
20 percent of the actual value of the property that exceeds $500 million.
Financial Impact: There are not any good estimates on the financial impact of this provision due to the
lack of information of the valuation being affected. In fiscal year 2013, the City's apportioned share of
the telecommunication property taxes was $187,463. Due to the lack of a good estimate, this provision
was not included in the attached exhibit.
Summary
The property tax reform bill, SF295, has been passed by the State legislature and will be applied to
valuations as of January 1, 2013. The first budget year impacted will be fiscal year 2015. Property tax
revenue will be reduced by an estimated $1,321,240 in fiscal year 2015 and by $2,662,737 in fiscal year
2016. The State of Iowa will back fill $1,015,119 in fiscal year 2015 and $2,035,314 in fiscal year 2016,
however, the City should consider future contingency plans in the event the State discontinues funding
for this backfill. Preparations for the fiscal year 2015 budget process will begin this summer.
May 29, 2013
Page 3
Exhibit A
(1) 3% annual value growth
(2) At current property tax rate
Not Subject to State Backfill
Subject to State Backfill
Multi- Residential
3% Growth
Corn/Ind
Corn/Ind
Corn/Ind
Total Property
Properties (1)
Limit
Rollback
Total
Rollback - Year 1
Rollback - Year 2
Total
Tax Reduction
FY15
$ -
$ 306,121
$ -
$ 306,121
$ 1,015,119
$ -
$ 1,015,119
$ 1,321,240
FY16
-
627,423
-
627,423
1,017,657
1,017,657
2,035,314
2,662,737
FY17
851,745
982,915
-
1,834,660
730,102
730,102
1,460,203
3,294,863
FY18
1,116,560
1,350,772
3,651
2,470,982
730,102
730,102
1,460,203
3,931,186
FY19
1,396,497
1,757,911
50,443
3,204,852
730,102
730,102
1,460,203
4,665,055
FY20
1,692,226
2,177,375
54,219
3,923,821
730,102
730,102
1,460,203
5,384,024
FY21
2,004,442
2,638,952
109,644
4,753,038
730,102
730,102
1,460,203
6,213,242
FY22
2,333,868
3,115,578
113,569
5,563,014
730,102
730,102
1,460,203
7,023,218
FY23
2,681,255
3,637,715
174,931
6,493,902
730,102
730,102
1,460,203
7,954,105
FY24
3,428,308
4,177,423
179,019
7,784,750
730,102
730,102
1,460,203
9,244,954
Total
$ 15,504,902
$20,772,185
$685,477
$36,962,564
$ 7,873,589
$ 6,858,470
$14,732,059
$ 51,694,623
(1) 3% annual value growth
(2) At current property tax rate
Iowa League of Cities - Local Option Sales Tax
Finance
Local Option Sales Tax
Web Exclusive March 2013
In order for a city to have a local option sales tax (LOST), a majority of Downloads /Links
the eligible electors in that city must approve it in a county-wide election to Secretary of State
impose the local option sales tax. The local option sales tax is placed on
the ballot through a petition of 5 percent of the county electors having Iowa Department of Revenue
voted in the last state general election or by a motion (or motions) of
governing bodies within the county that represents at least half of the population of the county.
The election for a local option sales tax can be held during any regular election or one of the special election dates
allowed by state code (go to the Secretary of State's Web site to review those dates). The election cannot be held
sooner than 60 days following publication of notice of the ballot proposition in the newspaper. The election is county
wide, but the local option sales tax will only apply in those incorporated or unincorporated areas of the county where
the majority of the eligible electors approve the tax. The ballot must specify:
The type of tax. (in this case Local Option Sales Tax)
The tax rate. (not more than 1 percent)
The date it will be imposed.
The approximate amount of local option tax revenue that will be used for property tax relief, if any.
The specific purpose(s) for which local option tax revenues will be spent if for purposes other than property tax
relief.
A sunset clause for termination of the tax. (optional)
Cities are considered contiguous if their borders are adjacent or touching. For the purposes of the local option sales
tax, the contiguous cities are considered as one taxing jurisdiction. The local option sales tax can only be imposed if a
majority of voters in the total jurisdiction approves the tax.
For the imposition, repeal or change of the LOST, within 10 days after a successful referendum, the county auditor
must give written notice of the results and abstract of votes to the Director of the Iowa Department of Revenue. This
must be done 90 days before the effective date which is on the ballot (plan out this timing with the county
auditor before the ballot language is drafted).
The LOST is imposed on the same items as state sales and excise tax except on
Room rentals, in a hotel, motel or other similar facility.
Sales of equipment by the State Department of Transportation.
Sales of natural gas or electric energy subject to a city or county imposed franchise fee or users fee.
The sale of direct -to -home satellite pay television service.
Self- propelled building equipment, pile drivers, motorized scaffolding or attachment customarily drawn or
attached to them including auxiliary attachments which improve their performance, safety, operation or efficiency
and including replacement parts used by contractors, subcontractors and builders for new construction,
reconstruction, alterations expansion or remodeling of real property or structures.
Vehicles subject to a 5 percent one -time registration fee.
By August 15 of each fiscal year, a written estimate will be sent to each city stating how much money the city will
receive for each month of the following year. Ninety-five percent of the money will be distributed to the city by the end
of the month following the month in which the money was collected. Any remaining amount due to the city at the end
of the fiscal year will be sent to the city before November 10 of the next fiscal year. If an overpayment has been made,
htips:llw .iowaleague.mglmemberslPagesI Local% 200ption% 20Sales %20Tax.aspx[5/28/2014128:24 PM]
Iowa League of Cities - Local Option Sales Tax
a reduced monthly distribution will begin with the November distribution until all overages are reconciled
Not all local option sales tax collected in a jurisdiction will be returned to the jurisdiction. The amount distributed is
calculated based on a formula that takes into account the percentage of population and the property tax collected in
the jurisdiction out of the total for the county. For a more thorough explanation of the formula and any other possible
adjustments, visit the Iowa Department of Revenue (IDR) Web site.
Distributions of the taxes collected by the IDR are paid to the city in the subsequent month by direct deposit to the city
designated account based upon the IDR estimates. To see the history of funds previously distributed, see the IDR Web
site listed above. Also on that web site is a listing of all jurisdictions that have LOST and the history of sales
generated.
To repeal the tax or change the designations for the money to be used, an election may be called and held in the
same manner and under the same conditions and restrictions as the election which approved the tax.
This information relates to the "regular' local option sales tax and not the "school" local option sales tax which was
abolished in 2008 when the state rate for Iowa sales tax increased from 5 percent to 6 percent. The School Local
Option Sales Tax (SILO) no longer exists as a separate tax.
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Iowa Department of Revenue - Iowa Taxes
Department of
IM REVENUE
Search...
Individuals For information about:
Tax Professionals . Elections to adopt or change local option taxes: Contact the Iowa Secretary of State at (515) 281 -
Local Government 0145 or 1- 888 - SOS -Vote.
. Collecting the tax: Contact the Iowa Department of Revenue at (515) 281 -3114 or 1- 800 - 367 -3388
(Iowa, Omaha, Rock Island, Moline).
Q. How is a local option sales tax imposed?
A majority of voters at an election must approve the local option sales tax.
Q. How does the issue of local option sales tax get on the ballot?
There are two ways:
• A petition is presented to the county board of supervisors. The number of signatures must be equal to
5 percent of the persons in the county who voted in the preceding state general election. Eligible
voters of the county must sign the petition.
• A motion or motions of governing bodies within the county that represent at least half of the population
of the county.
Q. When can a vote on local option tax be held?
The special election may only be held on one of the special election dates allowed by law for the jurisdiction.
See Special Election Dates Calendar on the Secretary of State's Web site. Local option sales tax elections
cannot be held sooner than 84 days after the notice of the election is given to the county auditor by the county
board of supervisors, and no sooner than 60 days after the notice of the ballot proposition is published by the
auditor.
The question of repeal of the tax or of a rate change can also be voted upon at a general or special election
as outlined above.
Q. Is the election countywide?
The election is countywide, but the tax only applies in the incorporated areas (city) and the unincorporated
area of the county where a majority vote in favor of the local option tax.
Q. What happens when cities are contiguous to each other?
All cities contiguous to each other are treated as one large incorporated area, even if located in different
counties, subject to a joint county agreement. The tax can only be imposed if the majority of those voting in
the total contiguous area approve the tax.
Q. When are two geographical areas contiguous?
They are contiguous when their boundaries are in actual contact or touching. Burd v. Board of Education of
Audubon County, 167 N.W. 2nd 174 (IA 1969), City of Walker, et al v. Oxley, et al.
Q. If there is a question whether two geographic areas are contiguous, who will
resolve the issue?
The issue must be resolved by the county board of supervisors.
Q. What must the ballot proposition specify?
The ballot must specify:
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Iowa Department of Revenue - Iowa Taxes
• the type of tax
• the tax rate (not more than 1 percent)
• the date it will be imposed
• the approximate amount of local option tax revenue that will be used for property tax relief, if any
• the specific purpose(s) for which local option tax revenues will be spent if for purposes other than
property tax relief
• a sunset clause for termination of the tax (optional)
Questions about elections and ballot language should be addressed to the Secretary of State at (515) 281-
0145 or 1- 888 - SOS -Vote. A ballot language sample is available from the Iowa Secretary of State.
Q. Who needs to be notified of election results?
Imposition, repeal, or change: Within 10 days after the election, the county auditor must give written notice of
the results and send an abstract of votes to the Director of the Iowa Department of Revenue. This must be 90
days before the effective date.
Q. If local option is approved by the voters, but a county does not pass the local
ordinance as required by law, what happens?
The tax will still be imposed. Passing the ordinance is mandatory. The Linn County District Court in City of
Walker, et al vs. Oxley, et al, EQ 93 1 0, June 4, 1986.
Q. How long does a local option sales tax remain in effect once it is imposed?
If a sunset clause is part of the ordinance, the tax remains in effect until that date. If no sunset clause, it stays
in effect for an unlimited period. It may also be repealed by election.
Q. For what can the revenue from this tax be used?
Local option tax revenues can be expended for any lawful purpose, but they may not be used for the benefit
of a school district.
Q. Can a local option sales tax be repealed?
Yes. To repeal the tax, an election may be called and held in the same manner and under the same
conditions as the election which approved the tax. However, only qualified voters of the areas of the county
where the tax has been imposed can vote. The tax cannot be repealed before it has been in effect for one
year.
The county board of supervisors can, upon its own motion, repeal the local option tax in any unincorporated
area of the county where the tax is imposed. For any municipality, the county board of supervisors must, upon
receipt of a motion of the governing body of the municipality, repeal the local option tax within that
municipality. The tax can be repealed within a municipality which is contiguous to other municipalities.
Q. Can the rate of tax be increased or decreased or a change be made to the
designated use of the local option tax revenue?
Yes. The criteria for placing the proposition on the ballot are the same as previously explained. However, only
qualified voters of the area of the county where the tax has been imposed can vote. The rate cannot exceed 1
percent.
As of July 1, 2008, a change in the use of local option tax revenues for the purpose of funding an urban
renewal project no longer requires an election but can now be done by ordinance of the city council of an
eligible municipality.
Q. What are the dates that the tax can be imposed, changed, or repealed?
This tax can be imposed on either January 1 or July 1 only. Repeals can only occur on June 30 or December
31. Any jurisdiction with a repeal date specified in the ballot prior to April 1, 1999, may repeal on the date
specified. Imposition or change in rate or use can occur no sooner than 90 days following the election.
The local option tax cannot be repealed or reduced in rate if bond obligations are outstanding unless sufficient
funds to pay the principal, interest, and premium, if any, on the outstanding obligation at and prior to maturity
have been properly set aside and pledged for that purpose.
Q. What if a tax has been imposed in a portion of a county and now another
incorporated or unincorporated area of the county wants to vote on the tax?
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Iowa Department of Revenue - Iowa Taxes
The criteria for placing the proposition on the ballot are the same as previously explained. However, only
qualified voters of the area of the county where the tax has not been imposed can vote.
Revenue Estimates
Q. How can a locality estimate what amount of local option sales tax it might receive?
The Department of Revenue is able to provide an estimate based on general state sales tax data. This
estimate would represent the potential collections that would be generated in a county by the retailers
collecting local option sales tax for that county.
By August 15 of each fiscal year, a written notice of the monthly estimated local option payments for the fiscal
year will be sent to localities.
Since the local option sales tax and the state sales tax are imposed differently based on each transaction, the
data is adjusted. For example, the local option sales tax is imposed on goods delivered into a locality. State
sales tax statistics are kept on the basis of sales made by merchants within a locality. Local option sales tax
is not imposed on room rental or on the sale of natural gas or electric energy in a city where these receipts
are subject to a users fee or a franchise fee, to mention just a few differences.
Q. If a locality has made its own estimates, will the Department of Revenue review
them?
Yes. Often, local officials are better economic predictors, because they are familiar with the occupation,
purchasing, and spending patterns in a locality. The Department will review the logic and the variables
considered in compiling the estimate.
Q. Can a locality obtain information about sales tax payments made by specific retail
establishments?
Yes. The Department may enter into a written information exchange agreement for tax administration
purposes with a county entitled to receive local option sales tax funds. The agreement allows no more than
two paid county employees to have access to actual return information. This information cannot be shared
with anyone else due to confidentiality requirements.
Note: There are severe penalties in place for any illegal disclosure of this information to any unauthorized
individuals. [IA Code "Information Confidential penalty" 422.20,72, IRS Code 6103(b)]
Distribution of Funds
Q. How soon after a local option sales tax is imposed will a locality get its money?
By August 15 of each fiscal year, a written notice of the monthly estimated local option payments for the fiscal
year will be sent to localities.
Ninety -five percent of estimated tax receipts are paid monthly. For example, localities' estimated monthly tax
distributions will be issued for July by August 31.
A final payment of any remaining tax due to a locality for the fiscal year will be made before November 10 of
the next fiscal year. If an overpayment to a locality exists for the fiscal year, a reduction of monthly
distributions to reflect the overpayment will begin with the November payment.
Q. Will a jurisdiction receive the actual amount of tax collected by merchants in the
locality?
No. The local option tax collected within a county is placed in a special distribution fund. The fund is
distributed on the basis of population and property tax levies.
Q. How does the distribution formula work?
Each county's account is distributed on the basis of population (75 percent) and property tax levies (25
percent). The population factor is based on the most recent certified federal census. The property tax factor is
the sum of property tax dollars levied by boards of supervisors or city councils for the three years from July 1,
1982 , through June 30, 1985 . The property tax data is compiled from city and county tax reports available in
the State Department of Management. Only population and property tax levies of the jurisdiction imposing the
tax are used in figuring percentages.
The actual distribution is computed as follows:
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Iowa Department of Revenue - Iowa Taxes
D= (.75xPxZ) +(25xVxZ)
D = distribution for the taxing jurisdiction
P = jurisdiction percentage of the population
V = jurisdiction percentage of the property tax levied
Z = the total collections for the county in which the jurisdiction is located.
Examples of an actual distribution are in 701 Iowa Administrative Code § 107.10.
Q. Who will receive the distribution check?
Checks will be made out to each city and each unincorporated area (county) that imposed the tax.
Q. Is it possible for a jurisdiction without the tax to receive a distribution of local
option tax money?
No. Only the jurisdictions in which the tax is imposed can participate in the distribution.
Q. Are any adjustments made to the monthly remittance of local option tax prior to
distribution?
Adjustments are possible. For example, local option taxes can be refunded to governmental units if imposed
on materials associated with construction projects. Erroneous collections can occur which are also subject to
refund. Amended sales tax returns will also be filed. Refunds will most likely be identified after distributions for
a given tax period have been made, therefore, account adjustments will be necessary.
When a local option tax is repealed, the local option tax monies, penalties, or interest received or refunded
within 180 days after the repeal date are distributed, more than 180 days after repeal, funds are deposited
into or withdrawn from the state general fund.
Q. What happens to local option taxes which are collected, but it cannot be
determined which county is the origin of the money?
The funds will be allocated to active counties based on special rules filed by the Department. The rules
specify distribution be made based on individual county population to total active county population.
Notification
Q. Once local option sales tax is imposed, how are businesses informed?
The Department regularly a -mails newsletters and notices to anyone who has signed up on the Department's
Web site to receive free information by e-mail. A current jurisdiction list is also maintained on the
Department's Web site.
Related Costs
Q. Who pays for reprogramming computers and cash registers for businesses in a
jurisdiction imposing a local option tax?
Businesses are responsible for all programming changes and costs.
Noncompliance
Q. What happens if a business fails to collect or refuses to collect local option tax?
Anyone aware of a problem may contact our Taxpayer Service Section by e-mail or by calling 1- 800 -367-
3388. In most cases, the problems are the result of misunderstandings and not intentional noncompliance
Whenever the Department audits for state sales tax, it will also audit for local option taxes. The penalties
associated with the nonpayment of local option sales tax are the same as those for state sales tax.
Applying the Local Option Sales Tax
Q. Is the local option sales tax imposed on the same items as state sales /excise tax?
Yes, except on:
• room rentals, in a hotel, motel, or other similar facility
• sales of equipment by the State Department of Transportation
• sales of natural gas or electric energy subject to a city- or county- imposed franchise fee or users fee
• the sale of direct -to -home satellite pay television service
• self - propelled building equipment, pile drivers, motorized scaffolding, or attachments customarily drawn
or attached to them, including auxiliary attachments which improve their performance, safety,
operation, or efficiency and including replacement parts used by contractors, subcontractors and
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Iowa Department of Revenue - Iowa Taxes
builders for new construction, reconstruction, alterations, expansion or remodeling of real property or
structures
Q. Are local option sales taxes imposed on cars and trucks?
No. Vehicles subject to registration are subject to a 5 percent one -time registration fee rather than a state
sales tax. However, the receipts from the rental of cars and trucks can be subject to local option tax. Also,
sales of parts and repair services are subject to tax.
Q. Can a county with a local option sales tax impose the tax on items and services not
subject to state sales tax?
No. A local option sales tax cannot be imposed on any property or service not subject to state sales tax, with
the exception of residential energy on which the state tax has been phased out, but on which local option tax
still applies.
Q. When local option sales tax is figured, is it imposed -on top" of the state sales tax?
No. It is imposed in addition to, but not on top of, the state sales tax. A taxable sale will be subject to the state
sales tax and the local option tax. However, the amount of the sale for purposes of determining the amount of
local option sales tax does not include any amount of state sales tax or other local option taxes R a jurisdiction
imposes more than one local option tax.
Q. Do retailers have to obtain a special sales tax permit in order to collect local option
sales taxes?
No tax permit other than the state sales tax permit is required or available. Local option tax is remitted to the
State of Iowa along with the state sales tax, retailers make no payment directly to a locality.
Q. How and when is local option sales tax remitted to the Department?
Local option taxes are remitted whenever state sales tax is remitted. Retailers show a breakdown of local
option taxable sales and tax by county on quarterly and annual returns. Paper deposits and returns are not
mailed, filing is through eFile & Pa v. (Note that the amount of local option tax collected is not used to
determine how frequently a retailer should file.)
Q. When does the tax apply to a sale?
As with the state sales tax, the local option sales tax is remitted for the tax period in which the tangible
personal property is delivered to the customer. Even if the customer has not paid for the merchandise, the tax
is due when delivery occurred.
For taxable services, the retailer remits the local option tax for the tax period in which the first use of the
service occurs, or potentially could occur.
Q. What does delivery have to do with the taxability of a sale?
Where tangible personal property is delivered determines whether or not a sale is taxable. If delivery occurs
within a local option jurisdiction, the local option sales tax may be due. If delivery does not occur in a local
option jurisdiction, local option tax is not due.
Delivery usually occurs when the sellertransfers physical possession of the property to the buyer. In most
instances, this transfer takes place at the seller's place of business. If the seller transfers the property to the
buyer from the seller's own vehicle, then delivery is considered to take place at the place of transfer. Finally, R
the seller transfers the property to a common carrier or the U.S. Postal Service for subsequent transport to
the buyer, the "delivery" of the property occurs at the customer's location.
Q. How is the delivery or sale of tangible personal property affected by the use of
FOB or a similar term when it is moved by a common carrier?
It does not affect the sourcing of a transaction, but an FOB designation will determine whether it is a sales tax
or a use tax, and whether local option applies.
Q. If residents in a local option tax jurisdiction shop in a city that does not have a
local option sales tax, does that mean that they avoid paying the local option tax?
Maybe. If a resident of a taxing jurisdiction takes physical possession of the Rem in a non - taxing jurisdiction,
no local option tax can be imposed. However, if the Iowa seller delivers R by the seller's vehicle or through a
common carrier to the purchaser who lives in a local option tax jurisdiction, then the seller must collect the
local option tax applicable in the buyer's location.
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Iowa Department of Revenue - Iowa Taxes
Q. If Iowa sellers send items through the mail or by common carrier to the purchaser
and the sellers do not have "nexus" in the purchaser's location, must they charge the
local option tax?
Yes. The seller will charge the local option tax applicable where the customer receives the item.
Q. What happens if the seller is located in a taxing jurisdiction and delivery of an item
is made into a jurisdiction where no local option tax has been imposed?
Local option tax cannot be charged on a transaction where delivery occurs in a non - taxing jurisdiction.
Q. What happens when an item is purchased outside Iowa? Would local option sales
tax be due?
• If the item is brought into Iowa by the purchaser:
No. These transactions are subject to the state consumer's use tax. Local option sales tax can only be
imposed when state sales tax is applicable. Iowa does not impose a local option use tax.
• If the item is brought into Iowa by the seller in the seller's own vehicle:
Yes, if delivery occurs in a local option jurisdiction.
• If the item is sent into Iowa by a common carrier with an FOB Shipping Point designation or
without an FOB designation, orthrough the U.S. Postal Service:
If the out -of -state retailer is registered to collect Iowa tax, the state rate is charged. If the retailer is not
registered, the customer owes consumer's use tax. No local option tax is due in either case.
• If the item is sent into Iowa by a common carrier with an FOB Destination designation:
If the out -of -state retailer is registered to collect Iowa tax, the state rate is charged as well as any local
option tax imposed by the destination jurisdiction.
Q. What about vending machines?
The location of each individual vending machine determines whether or not the local option sales tax applies.
If it is in a local option jurisdiction, the tax applies.
Q. What happens when a business uses its own inventory?
If a retailer located in a taxing jurisdiction purchases items for resale or processing and later withdraws them
from inventory for other purposes, the local option tax is imposed. It does not matter where or when the items
were first purchased.
Owners, contractors, subcontractors, or builders purchasing building materials, supplies, and equipment for
use in a construction project must pay local option sales tax on these items if they take delivery in a taxing
jurisdiction.
Contractors, subcontractors, or builders who are also retailers located in a taxing jurisdiction must pay local
option tax when they withdraw building materials, supplies and equipment from their resale inventory for
construction projects in Iowa, even if the construction project is outside the taxing jurisdiction.
Manufacturers of building materials located in a taxing jurisdiction who are principally engaged in
manufacturing and selling building materials and who withdraw them from inventory for use in a construction
contract must pay local option tax tithe construction contract is within Iowa. The tax is computed on fabricated
cost. They must pay local option tax when they withdraw building materials, supplies and equipment from
inventory for construction purposes even tithe construction project is outside the taxing jurisdiction.
Q. What if a construction contract is entered into prior to the imposition of local
option tax?
It makes no difference when the contract is signed or where it is signed. "Delivery' is the taxing event. If
tangible personal property subject to state sales tax is delivered into a jurisdiction after the date local option
sales tax has been imposed, local option sales tax is due. If a taxable service is rendered, furnished, or
performed after the date local option sales tax has been imposed, local option sales tax is due.
If a local option tax is imposed or increased after a construction contractor enters into a written contract, the
contractor may apply for a refund of additional local option sales tax paid as a result of the imposition or
increase if all the following circumstances exist:
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Iowa Department of Revenue - Iowa Taxes
1. The additional tax was paid on tangible personal property incorporated into an improvement to real
estate in fulfillment of a written construction contract entered into prior to the date local option sales tax
is imposed or its rate increased, and
2. The contractor has paid the full amount of both state and local option sales tax due to the Department
or to a retailer, and
3. The claim is filed with the Department within one year of the date the tax was paid. The IA843 (pdf)
Claim for Refund is used for this purpose.
This local option tax right of refund is not applicable to equipment transferred under a mixed construction
contract.
Q. What about motor fuel and special fuel?
Motor fuel and special fuel are subject to local option tax when sales tax applies if delivery occurs in a taxing
jurisdiction. Fuel subject to motor fuel tax is not subject to sales tax at the time of purchase.
Services
Q. How is local option sales tax imposed on services?
Local option sales tax is imposed on any service subject to state sales tax when the first use of the service
occurs, or potentially could occur, within a taxing jurisdiction.
Q. Does it matter when a contract for services is signed?
No. Sometimes services are contracted before the local option sales tax becomes effective. The tax still
applies when the first use of the service occurs or potentially could occur.
Q. Does it make any difference if the service contract is signed outside the taxing
jurisdiction?
No. Local option tax is due on all taxable services when the first use of the service occurs, or potentially could
occur, in the taxing jurisdiction regardless of where the contract was entered into.
Q. What if there is a single contract and services are performed both within and
outside a taxing jurisdiction?
The local option tax is imposed tithe the first use of the service occurs, or potentially could occur, in the taxing
jurisdiction..
Lease and Rental
Q. How is local option sales tax computed on rented or leased property?
The general rule is that payments associated with periods when the property is used within a taxing
jurisdiction are subject to local option tax. Motor vehicle, recreational vehicle and recreational boat rentals
where state sales tax is imposed are subject to local option sales tax only if pursuant to the rental contract,
possession of the vehicle or boat is transferred to the customer within the taxing jurisdiction and payment is
made within the same taxing jurisdiction.
Utilities
Q. How are utility payments taxed?
Delivery of gas and water occurs and the services of electricity, heat, communication, and pay television are
rendered, furnished, or performed at the address of the subscriber who is billed for the purchase of this
property or services. If that billing address is located in a local option taxing jurisdiction, the tax will apply.
Q. What about telephone credit card calls made outside a taxing jurisdiction and
billed to an address within a taxing jurisdiction?
Assuming that it is an intrastate call (within Iowa) local option tax applies if the call is billed to an address
within a taxing jurisdiction.
Q. What date controls whether local option tax applies?
Local option taxes, and state sales tax, on utility payments are imposed based on the "billing date."
Q. Do pay television franchise fees imposed by a local jurisdiction exempt cable
television charges from local option taxes?
No. Only franchise fees and users fees for natural gas and electric energy trigger the exemption.
Updated 02104/10
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Revenue Comparisons
Property Tax Rate Comparison
(Levy Rate per $1,000 Valuation)
City
FY14
Tax Rate
Rank
FY14 /FY13
% Change
Council Bluffs
$17.75
1
-0.56%
Waterloo
$17.49
2
-3.95%
Des Moines
$16.92
3
0.00%
Iowa City
$16.81
4
- 2.66%
Davenport
$16.78
5
0.00%
Sioux City
$16.25
6
1.63%
Cedar Rapids
$15.22
7
0.00%
Coralville
$13.53
8
0.00%
West Des Moines
$12.05
9
0.00%
North Liberty
$11.03
10
0.00%
Dubuque
$11.02
11
2.23%
Ames
$10.86
12
1.31%
FY2014 Estimated General Fund Revenue
FY2014 Adopted Budget
City
Revenues
Transfers
In
Debt
Proceeds/
Asset
Sales
Total
Revenues
Per
Capita
Revenue*
Per
Cap.
Rank
Council Bluffs
$60,359,635
$11,000,000
$0
$71,359,635
$1,146.71
1
Dubuque
$51,524,631
$12,216,658
$52,750
$63,794,039
$1,106.82
2
West Des Moines
$45,059,223
$11,976,112
$6,000
$57,041,335
$1,007.64
3
Coralville
$14,724,609
$3,431,171
$7,500
$18,163,280
$960.66
4
Cedar Rapids
$83,322,843
$31,851,323
$120,000
$115,294,166
$912.67
5
Iowa City
$43,733,068
$9,610,582
$4,081,450
$57,425,100
$846.20
6
Sioux City
$41,092,112
$19,835,312
$59,232
$60,986,656
$737.59
7
Des Moines
$116,770,284
$32,666,194
$19,000
$149,455,478
$734.67
8
Waterloo
$42,746,668
$7,388,704
$88,000
$50,223,372
$734.20
9
Davenport
$50,348,501
$20,424,567
$10,000
$70,783,068
$710.07
10
North Liberty
$7,247,029
$2,053,495
$50,000
$9,350,524
$699.16
11
Ames
$23,324,640
$8,487,818
$0
$31,812,458
$539.51
12
*Per Capita calculations used 2010 US Census data
Hotel /Motel Tax Revenues
FY2013 Receipts
City"
Effective
Date
Receipts
Des Moines
4/1/1979
$4,758,396
West Des Moines
4/1/1979
$3,287,208
Cedar Rapids
4/1/1979
$2,862,393
Council Bluffs
4/1/1979
$2,539,232
Coralville
7/1/1983
$2,424,856
Davenport
4/1/1981
$2,170,593
Dubuque
4/1/1979
$1,953,763
Ames
4/1/1988
$1,784,274
Sioux City
4/1/1979
$1,424,670
Waterloo
4/1/1981
$1,227,556
Iowa City
4/1/1983
$871,706
North Liberty
7/1/2008
$65,149
*All cities listed impose the state allowed maximum rate of 7%
Source: Iowa Department of Revenue
Utility Franchise Tax Rates
City
Franchise
Fee Rate
North Liberty
0%
Davenport
0%
West Des Moines
0%
Ames
0%
Coralville
1%
Iowa City
1%
Sioux City
2%
Cedar Rapids
2%
Council Bluffs
2%
Waterloo
2%
Dubuque
3%
Des Moines
5%
Local Option Sales Tax (LOST) Revenues
FY2013 Receipts
*The chart only includes those communities with a LOST. Iowa City's LOST expired in FY 2013
Source: Iowa Department of Revenue
Utility Rates (Residential Monthly Billing)
City
Water
Effective
Sunset
Storm
Total
City"
Rate
Date
Date
Receipts
Purpose
$92.78
1
Davenport
$34.94
$36.16
90% Flood Recovery, 10% Property
Cedar Rapids
1%
4/1/2009
6/30/2014
$17.76 M
$36.08(3)
$15.50(4)
$3.50(5)
$83.79
3
West Des Moines
Tax Relief
$34.80
$11.25
$4.25
$80.60
4
60% Property Tax Relief, 40% Capital
Davenport
1%
1/1/1989
N/A
$15.43 M
5
Des Moines
$23.15
$33.50
$13.00
$9.74
Improvements and Equipment
6
Dubuque
$22.99
$31.91
$12.74
60% Property Tax Relief, 20%
Sioux City
1%
1/1/1987
N/A
$12.05 M
Infrastructure Projects, 10% City
$4.78
$71.73
8
Council Bluffs
$32.56
Facilities, 10% EDX
Waterloo
1%
4/1/1991
12/31/2015
$9.94 M
100% Street Repair
Iowa City
-
7/1/2009
6/30/2013
$9.08 M
100% Flood Related
Council Bluffs
1%
4/1/1990
N/A
$8.47 M
Streets and Sewers
Waterloo
$16.06
$24.38
$15.50
$2.75
50% Property Tax Relief, 20% City
Dubuque
1%
1/1/1989
N/A
$8.31 M
Facilities Maintenance, 30% Special
Assessment Relief
60% Property Tax Relief, 40%
Ames
1%
1/1/1987
N/A
$6.72 M
Community Betterment
*The chart only includes those communities with a LOST. Iowa City's LOST expired in FY 2013
Source: Iowa Department of Revenue
Utility Rates (Residential Monthly Billing)
City
Water
Sewer
Waste
Storm
Total
Rank
North Liberty
$37.66
$43.77
$9.35
$2.00
$92.78
1
Davenport
$34.94
$36.16
$13.90
$2.35
$87.35
2
Iowa City*
$28.71(7)
$36.08(3)
$15.50(4)
$3.50(5)
$83.79
3
West Des Moines
$30.30
$34.80
$11.25
$4.25
$80.60
4
Sioux City
$29.32
$34.54
$14.90
$0.83
$79.59
5
Des Moines
$23.15
$33.50
$13.00
$9.74
$79.39
6
Dubuque
$22.99
$31.91
$12.74
$5.60
$73.24
7
Cedar Rapids
$26.95
$21.49
$18.51
$4.78
$71.73
8
Council Bluffs
$32.56
$17.21
$16.00
$0.00
$65.77
9
Ames
$31.26
$28.72
$0.00
$3.45
$63.43
10
Coralville
$17.80
$22.62
$19.00
$2.00
$61.42
11
Waterloo
$16.06
$24.38
$15.50
$2.75
$58.69
12
*Projected FY 2015 Water Rate is $30.14 and Refuse Rate is $15.90
You're going to know about Cedar Rapids' Paving for Progress
City to start on fixing some streets
By Rick Smith, The Gazette
Published: June 12014 12:01 am in Government, LinnCo, NJ
000200
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Photos
The intersection of 8th Ave and 17th St SW is marked in preparation for repaving in Cedar Rapids on
Thursday, May 29, 2014. 17th St SW is one of the roads that will be repaved with LOST funds, with work
set to begin this week. (Adam Wesley/The Gazette -KCRG)
❑
4
Cedar Rapids taxpayers don't pass the local- option sales tax (LOST) gladly.
After all, less than nine months after the city's historic 2008 flood disaster, only 59 percent of local
voters agreed to the 1 percent sales tax for 63 months to fill gaps left by hundreds of millions of dollars
of federal and state flood- recovery help.
In May 2011 and again in March 2012, voters rejected plans to extend the tax for 20 years and then 10
years for flood protection and street repairs — and then just for flood protection.
"I still think people want to protect both sides of the river," City Council member Monica Vernon said
after the 2012 defeat for flood protection funds. "Perhaps the message is they don't want to pay for it.
... But cities are forever. You never give up on Cedar Rapids. You never give up on each other."
By November 2013, 62 percent of voters finally agreed that the condition of city streets had become
sufficiently jaw - rattling that it made sense to approve the local sales tax for 10 years to fix streets.
City officials now are vowing to make sure that residents know when and how the revenue from the tax
renewal — estimated at $180 million over 10 years in today's dollars — is spent.
They've given the program a name — Paving for Progress — worthy of government initiatives with tall
ambition and big promises.
And city crews also have created 50 large, eye- catching signs, which will promote streets repaired,
resurfaced or rebuilt with LOST money in the Paving for Progress program.
Emily Muhlbach, communications coordinator for the city's Development Services Department who has
spearheaded the effort to design the signs, said the city doesn't want residents to wonder if and when
the street transformation is going to happen and where.
"We want then to see action right away, and we want to make it as easy as possible for people to see
what is going on, to see the progress," Muhlbach said. "We want to be as transparent and as visible as
possible so people can feel really good about how they have invested with their vote."
Rob Davis, the city's engineering operations manager, said city engineers typically are lousy self -
promoters when it comes to infrastructure projects.
However, Davis said he is reminded every time he takes his children swimming in Cedar Rapids pools
how local taxpayers put the LOST in place for one year in July 2001 to build and fix pools.
"I still remember what we got for that $16 million to $18 million all these years later," Davis said. "You
now know what you can get with that 1 cent tax. You can get a heck of a lot.
"We would not have a Cherry Hill Pool and a Noelridge Pool without that. Those are fantastic. And I'm
hoping we can say the same thing 10 years later about the streets."
'Once and for all'
Late last week, George Heeren didn't realize that his quiet tree -lined street off First Avenue SW next to
Cleveland Park suddenly had become the poster child for the city's new Paving for Progress program.
Over the years, Heeren said city crews have patched and fussed a little with 17th Street SW, and then
they did it again and again.
"It's nice for them to come through and fix it once and for all," said Heeren, president of the Cleveland
Neighborhood Association.
This week, a city street crew will be on Heeren's street to put down an asphalt overlay — the first of
many to come on city residential streets during the 10 -year life of the city's fix - the - streets sales tax.
Davis estimated that 500 city streets will see work in one form or another with LOST money.
The city is launching the Paving for Progress program on 17th Street SW between First and 10th avenues
SW — about three city blocks long — because, Davis said, 17th Street SW is exactly the type of
residential street of subpar quality that long has missed out on good care and long would have — but for
voter approval of the LOST funds.
By itself, this isn't that exciting a project," Davis said. "What is exciting is that we're doing it at all."
The overall city strategy, he said, is to replace the worst streets, which is the highest -cost option, and at
the same time to resurface or otherwise improve needy streets so that they don't get to the status of
the city's worst streets.
Davis said there is something like a continuum of care for streets in need of help. The life on some can
be extended by sealing cracks or replacing joints or panels in the street. Some will get asphalt overlays,
but some need a total street replacement.
"This is a tricky thing where some streets are so bad we have to work on the worst," he said. "But you
want to work on streets that are in fair condition as well."
The city's 10 -year tax for streets doesn't begin to be collected until July 1, and the first revenue from it
won't be here until September. The city, though, can't lose most of a street construction season waiting,
so it is using street funds on hand to begin Paving for Progress work now with the idea that revenue
from LOST will replace short-term funds used now.
Davis said the city expects to do 30 projects and $8 million of Paving for Progress work this construction
season, with city crews doing some projects and larger projects ones sent out for bids and handled by
local contractors.
At the same time, the city will be working on an expanded curb - and - gutter repair program throughout
the city and will be doing other street maintenance work in some instances in preparation for asphalt
overlays in 2015. The city also has hired a consultant to determine the construction priority in upcoming
years.
Other large street projects will be underway as well that are not funded by Paving For Progress dollars,
but are paid for largely with federal grants, property assessments and /or property -tax revenue within
special tax increment financing districts.
Mike Duffy, the city's streets superintendent, said the Public Works Department worked overthe winter
and during the early spring to identify "quick- start" projects so it could get as much done as possible this
construction season. Street crews, for instance, already are busy replacing concrete panels on
Northbrook Drive NE off Council Street NE as the city asphalt program gets ready to go.
"We're excited to be making lasting improvements instead of temporary ones," Duffy said.
Davis said 17th Street SW rose to the top of residential asphalt projects, in part, because many street
candidates were set aside for this year because they need in- street utility work first or at the time of the
street work.
Initially, Davis said Duffy had identified six miles of residential streets as first ones to target this year.
However, only one of the six miles is ready for work this year, he said.
One case in point, 42nd Street NE between Interstate 380 and Wenig Road NE, fell off this year's
resurfacing list when the city discovered its subsurface had crumbled. The street needs replaced, not
resurfaced, Davis said.
He said the city expects to use its existing street crew members this summer as Paving for Progress takes
off. In the end, city workers will need to do less street maintenance as more permanent street
improvements take hold.
Davis pointed to the street project on 76th Avenue SW near The Eastern Iowa Airport, which is being
paid for with funds other than LOST money. Every other year, city crews spent considerable time on
76th Avenue SW put a new layer of seal coating on it. With the new street, they can use that time and
effort on Paving for Progress projects, he said.
On Thursday, city workers were marking up spots on 17th Street SW in preparation for the asphalt
paving work to come in upcoming days.
"Really," said Sheryl Ochs, who has lived on the street for years, "I don't see a lot of potholes."
The street isn't the worst, she said, but it could use the help if the city is fixing more than just the worst,
she said.
A new layer of asphalt will make the neighborhood look better than ever, which can't hurt property
values, Ochs said.
Mayor Corbett picked himself off the carpet after he had made himself the pitchman to renew the city's
local- option sales tax in May 2011 to fix streets and help with flood protection.
By last fall, Corbett put on his running shoes, and ran 130 miles of city streets as he ran for mayor to get
close -up look at bad streets. He ran the 17th Street SW neighborhood along the way.
"Over the years, the condition of the streets has been one of the top issues that citizens have really
complained about," the mayor said last week. "They've complained to every mayor and every City
Council member. Finally, we have the resources in place to make a significant difference."
Corbett said he had hoped that the Iowa Legislature and the governor would have steered more state
gas -tax money to Iowa's cities, but they did not.
"We just couldn't wait for them," the mayor said.
This time, the sales -tax push worked.
"The people of Cedar Rapids supported this overwhelmingly," he said. `They know that our city has
challenges, our state and country have challenges. I think they appreciate elected officials being
straightforward with them: Here's the problem and here's the solution."
* * **
Projected 2014 Paving for Progress projects
Asterisked projects will be done by the city; others will be put up for bid
NW Quadrant
Ellis Blvd. from K Avenue to O Avenue
B Avenue NW Improvements from Highland Drive to Eighth Street
13th Street NW from A Avenue to B Avenue *
E Avenue from Stoney Point Road to Rock Valley
Ellis Lane NW, Ellis Blvd to Eighth Street NW
SW Quadrant
Third Avenue SW Improvements from Sixth Street to 10th Street
Eighth Avenue SW Improvements from 10th Street to Seventh Street
Diagonal Drive SW Improvements from Interstate 380 to West Eighth Avenue Bridge Approach
Edgewood Road SW from Williams Boulevard to 16th Avenue
Wiley Blvd SW from Williams Boulevard to 16th Avenue
17th Street SW from First Avenue to 10th Avenue *
West Post Road SW from Ruhd Street to 16th Avenue*
Wilson Avenue SW from West Post Road to Troy Street *
Hawkeye Downs Road from Sixth Street to J Street *
NE Quadrant
Boyson Road NE Improvements from C Avenue to East Corporate Limits
Coe Road NE Improvements from Center Point Road to A Avenue
Glass Road NE Improvements from Edgewood Road to Wenig Road
Kiowa Trace NE, 6821 to 7015 Residences *
Oakland Rd NE from E Ave to H Ave
Seminole Valley Rd NE from Fords Crossing Road to 42nd St
Blairs Ferry Rd NE from W. of Miller Ave to W to Wayside Circle Dr
74th Street from White Ivy Place to C Ave
42nd Street from 1 -380 to Wenig Rd
Northbrook Drive NE from Boxwood Lane to Laurel Lane NE *
SE Quadrant
Fourth Avenue Improvements from Sixth Street to 19th Street
19th Street from Fifth Avenue to Bever Avenue
ever Avenue from 19th Street to 14th Street
Bever Avenue from 22nd Street to Memorial Drive
Garden Drive from Grande Avenue to Washington Avenue
11th Avenue Improvements from Third Street to Fourth Street