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HomeMy WebLinkAbout2015-10-06 TranscriptionPage 1 ITEM 3. PROCLAMATIONS ITEM 3a Domestic Violence Awareness Month — October Hayek: (reads proclamation) Voparil: Kristie Fortmann-Doser, Executive Director, and Missie Forbes, Development Director, will be accepting the proclamation. (applause) Forbes: I'd like to Mayor Hayek and the, um, Iowa City City Council for recognizing, um, October as Domestic Violence Awareness Month. This event began as a one day event in 1981 where, um, workers, and uh, advocates came together to support one another in the work that they did, uh, to combat the effects of...on men, women, and children, um, who have been affected by domestic violence. In 1989, Congress enacted a law proclaiming that October would be Domestic Violence Awareness Month. Um, this year we have chosen a theme of a bystander intervention, um, that focuses on how we as a community can help, um, when we recognize signs or improper behavior, to be able to ... if you see something, say something, and we have many events that have taken place so far and um ... other upcoming events as well. Um, next ... on the 15th we'll be showing Private Violence at the, um, Iowa City Public Library with a panel, following, um, and that is a documentary about domestic violence and the effects that it has on families. Um, and then we also, uh, will be awarding the Pat Meyer Vision Award to recipients at the end of the month at the Public Library, again with a luncheon. We welcome all of you to attend, as well. So again, thank you for recognizing October as DV Awareness Month. And I'll turn it over to Kristie. Fortmann-Doser: So the first thing I want to say is I want to say thank you all to the Council Members. I ... I cannot emphasize enough how the support of this community makes such a tremendous difference in the lives of the victims of domestic violence, and uh, many of you have either been to the shelter itself, or have been to our new ... our new digs, uh, at 1105 S. Gilbert Court. You all were tremendous supporters in, uh, helping with that collaborative project, but I ... I do want to say that, um, we've gone through a lot of change, uh, in how we serve victims of domestic violence in the state of Iowa. Many of you are aware that a couple of years ago the state went through a restructure, and our service area was doubled. We went from serving four counties to serving eight counties. So we now go from interstate 80 all the way south to Keokuk. Keeps us pretty darn busy, and our services have jumped pretty significantly, but what I wanted to say is part of the reason that happened was because of the strength of our community support. Right now, um, about 24% of our funding comes from local municipalities and donors, individuals who want to make sure that victims of domestic violence have the resources that they need. And so I wanted to start by saying thank you. The next thing I want to say, and ... and this goes back to, um, what Missie was talking about in terms of looking at, um, how we help, how we support. See something, say something. It's a critical message. Domestic violence is one of those crimes This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 2 that is unique. It's unique because the perpetrator of this crime has more access, has more knowledge, has more leverage than any other perpetrator of other crimes. This is somebody who knows you better ... than you sometimes know yourself. This is the person who has access to everything in your life that is important to you. It knows your strengths. That person knows your weaknesses. They know the things you're proud of, the things you're not so proud of. They have access to the people you love more than your own life. They know where to find you at any given moment. So for us, having emergency services, like our 24- hour hotline, that resonds ... responds to about 18,000 calls a year, um, our emergency shelter, which shelters about 350 women and children a year, and our outreach services, that serves about another, um ... 1,900 men, women, and children a year. I cannot say how important it is to have that and that we thank you for your support. Hayek: Thank you. You do very, very important work in our community, and in other communities, and we appreciate what you do. Fortmann-Doser: If anybody has any questions, we're happy to answer them, but ... if not, again, thank you! Hayek: Thank you! (applause) This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 3 ITEM 3. PROCLAMATIONS ITEM 3b National Hispanic Heritage Month — September 15 thru October 15 Hayek: (reads proclamation) Voparil: Stella Hart, on behalf of the Human Rights Commission is accepting. (applause) Hart: Thank you on behalf of the Human Rights Commission. Hayek: Thank you for being here. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 4 ITEM 3. PROCLAMATIONS ITEM 3c Fire Prevention Week — October 4 —10 Hayek: (reads proclamation) Voparil: Lt. Scott Goolsby accepting the proclamation. (applause) Goolsby: Honorable Mayor and City Council, thank you for this proc ... proclamation. We are ... during Fire Prevention Week, we, uh, make a large effort to go to all the Iowa City schools and put on approximately a 30 -minute program. Um, we're about half way through that right now and it's been a pretty good success this year, and the big theme of that, of course, is "Put the Beep Where You Sleep." It's very important! Uh, for the rest of the year we ... we do fire prevention, uh, it's just not ... we just focus on the schools and the kids for this ... for this week, and we appreciate this proclamation and thank you for your support! Hayek: Thank you! Keep it up! (applause) Botchway: (mumbled) one of the schools, um, I can't remember which school right now and I can't remember the particular fire, uh, men, but uh... um, did a neat dance that's very, um ... uh, the whip-n-naa-naa (laughter) at one of the schools that I think you really did a good job, and uh, really kind of had the kids enthused and listening in, uh, about what you were talking about. Goolsby: Thank you! Um ... we have some very creative people on the Fire Department. We have a very... diverse, creative group and uh, it was a privilege to work with these gentlemen. Um, when he brought that to my attention, it was actually ... it was my ... it was my show this year and he brought that up and said, well, I'd like to have the kids do the naa-naa and uh, you know, sometimes the firefighters will sneak some stuff by and ... so it's like ... I'm not really sure about that but ... (laughter) it has been wildly successful and the kids (laughter) the kids, uh, getting their attention. They seem to really like it and I think that that's been taped and will be on Public Television (laughter) So thank ... thank you for that comment. I really appreciate that. Payne: Can you demonstrate? (laughter) Hayek: Can Kingsley? (laughter and several talking) All right! Thank you, sir! This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 5 ITEM 5. COMMUNITY COMMENT (ITEMS NOT ON THE AGENDA) Hayek: This is the opportunity at each City Council meeting for members of the audience to address the Council on items that are not on the agenda. So if there's something that's not on this evening's agenda that you would like to bring to our attention, I invite you to come forward, and our standard practice is to ask you to sign in, to verbally give us your, uh, name, and to keep your comments to five minutes or less! Gravitt: My name is Mary Gravitt and I'm here about my community. Uh, two things have come to my attention this week. I'm still up on ... I'm still waiting for the answer to the bus shelters on the outbound Towncrest route, cause that's very important, very close to my heart, cause I don't think it's fair that we have to stand outside in the weather when there are shelters available and shelters in places that don't need 'em, but my main concern tonight is the Mall bus. The Mall bus no longer goes into the Sycamore Mall, and this is concern of my fellow citizens, my human beings that live in my ... my area and my neighborhood. Now ... it ... they said that I've heard the Mall bus is not going to Sycamore Mall anymore because there's too many children wondering around, I guess, with their parents, and this is dangerous, but I want to know how many people ... how many children has the Mall bus either murdered or injured. The Mall just didn't get there yesterday! And that bus didn't, you know, the bus has always, as far as I know, gone into the Mall. Now Lucky's is on the other side of the Mall. The bus stop is at ... McDonald's. You have to carry your groceries clear across that lot, and in the winter, that lot is icy. It ... it's covered with snow, and you don't even know how to get out of it, cause I've had another complaint. This person said they slipped all the way to the bus stop. Now you don't have enough people to keep the sidewalks clean because you can't even handle downtown. And then too that bus stop. I'm still complaining about that bus stop, across from... Kirkwood. Now, I got a Google picture about how safe it was, but human nature tells you when people get off the bus, especially those young people mostly that go to Kirkwood, they're gonna cross the street in front of the bus. So that there's a traffic coming from Lower Muscatine and off Sycamore. You're gonna have to do something! Either move the bus down, bus stop down to Deforest, and what really — pardon the expression — pisses me is that that road is practically brand new! The cement is still green. So ... you gotta take into consideration when you let people design things that you don't go out and look and check it out for yourself. It's nothing like the human eye and Google pictures don't do it for me! But ... that bus has to go back into the Mall. Lucky's, uh, has ... begin to lay off people, cuttin' their hours back. The business has slowed down. The newness has worn off. So it's time to be considerate of the human beings in my neighborhood. Like I said when I wrote my letter, that ... we talk about race but there's only one race, and that's the human race. So me as a black person talking about the problems that my ... my neighbors face, it's not about black people! It's about everybody who lives in the community, every human being that has to stand outside in the rain, snow and the slush and wait for a bus! And Towncrest has never benefited from anything from This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 6 the City! I'm sure HyVee paid for their own stuff. The banks paid for theirs. So it's about time Towncrest got treated evenly and the ... and the people on the south side got something for their tax money. Thank you. Hayek: Thank you for your comments. Beadleston: Hi, my name is Joy Beadleston and I'm here ... to make a comment, um, to support Mary Gravitt's and my community also. Is ... supposed to be on the south side. Um, I live by Eastdale Plaza and I ride sometimes the Mall bus and other, um, transportation, but the issue is that, um, the Mall bus is a huge issue with the community. Um, as we saw at Kirkwood last week when there was a public meeting, um, with some of the candidates that are running, um, many people in the audience... commented by their claps in support of Mary's, um, issue that she's bringing to the attention, that's part of the community's issue obviously. So ... um, the Mall bus has been rerouted many times with the construction project that lasted about three years, I believe, two and a half, um, along Muscatine, Lower Muscatine and First Avenue, and now we have, you know, of course the whole city's pretty much under construction, but now First Avenue has a big issue with the train that's going to be rerouted and the bridge and all that, with the separation project. So, the Mall bus, again, is rerouted, um ... the cold is a huge issue in Iowa. I know there's global warming. It's a little warm this time for October, but the cold is starting to come and it's ... it seers right through your clothing. I know some people, um, are elite and lucky enough to have North Slope coats and under - armor and all that, but not everybody has that, and so you sit and wait for buses that are often in the winter very delayed. Um, I know the bus drivers do their best to try to be on time, but ... the fact is they're very late sometimes. So people ... that ride the bus are sitting outside and waiting for long periods, and there's no shelter, and especially now. They used to take shelter inside the Eastdale Plaza, was one of the few options, and now with the buses being moved all the time to temporary spots, there ... you know, there's no protection at all, and the Mall bus going into Sycamore Mall shouldn't be an issue because the Coralville bus goes into one of the busiest malls (laughs) around ... the Coralville, uh, Mall and don't seem to have a problem there. So I wouldn't accept that, if that is one of the issues, and again, no one has returned a call to me about this. I've made calls again about, um ... this issue and I have not received a call back (laughs) Thank you. Hayek: Thank you. Can we have staff look into that? Thank you. Anyone else? Calkins: Good evening. My name is Marilyn Calkins and I'm here this evening both as a private citizen and as a member of one of Iowa City's faith communities, and ... I'm talk ... want to support the Supervisors' ordinance on raising the minimum wage, uh, earlier when the sixth graders were being presented with their certificates and read their paragraphs, they all talked about being helpful and caring about others. And so as ... as part of my faith background and the teachings of all the major faith traditions, caring for those around us, caring for the people in our neighborhood is This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 7 part of the teachings and part of what we all say we live by, and so that's why I support this ordinance and I hope that you will do so also. Thank you. Hayek: Thank you for your comments. Landry: Good evening. Doyle, Landry. First, wanted to thank you very much for listening with regard to the ... uh, addition and the correction and the eventual resolution with regard to 136 S. Dubuque. But I have to ask ... because I keep listening. This will be the second time and this wasn't planned. It just ... (mumbled) sitting, listening. Sometimes !when you kick the can down the road it becomes a larger issue. More on that in a minute. I would like to think that Miss Gravitt's issue is very solvable. It's a ohe-hour issue. Literally. I put that up there because ... on October 1St, the Chicago Tribune pre... presented a very inflammatory editorial that didn't name race, but it particularly... it blamed African American and Latino aldermen for the violence in their wards. It's all on the web site and it's ... it's created a ... (laughs) It's all on the web site! And I often think, what if the same type of conversation Happened here? The only difference is the individuals being accused would be white. So I like what Miss Gravitt said about this is for part of the human race. It acually changed what I was going to say, because we're now nine months into when you ... to the day when you started talking on ... on your January 6th meeting about changing the conversation, Iowa City as it relates to race. And we ... are nope months in and there's no plan. One of the columnists for the Chicago Tribune, �n African American defending her own newspaper — maybe it was for job security, um ... s ... specifically has asked for the individuals who (mumbled) what's the plan? I say that because the State of Illinois there is no budget. It's unprecedOnted and the least people who don't have connections, people who are not, uin, wealthy are the ones that are losing out. It's the same thing that happens hefe, but in a different way that if you're not welcome it ... or if you don't know how tb, um, write an email that gets everyone's attention, you fall through the cracks. May not be paying attention to this ... this one, but there are a few homeless individv als who are out there who weren't there a year ago. And if you knew their story, for those of us who are journalists, we dig deeper for the story. There are individuals who are now on the streets of downtown Iowa City who weren't there a year ago, and for me that's shameful. Because in a community like this, We should be able to ... catch and keep one another. So ... I implore us if we are tt+uly talking about a better Iowa City that you can't fix what you won't face and it ran be uncomfortable staring at a former colleague who may be out of a job or ... coining back every three, six, nine months to topic of race because once again, you can't fix won't you won't face. So in my five minutes, like I said, Miss Gravitt's, uh, opening changed what I needed to say. Three months from now will be a collective year and we're going to be obviously having the conversations abojat what Shelter House and the temporary shelter, etc., and again ... what do we doi to change it permanently for the good? This is Iowa City. Surplus. Aldermen, excuse me, elected officials who get along, but we keep kicking a can down the road that's solvable, and we can do better than that. Thank you. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October, 6, 2015. Page 8 Hayek: Thank you for your comments. Anyone else? Okay! I will move on to Item 6, Planning and Zoning Matters. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 9 ITEM 6. PLANNING AND ZONING MATTERS ITEM NO. 6a ORDINANCE CONDITIONALLY REZONING APPROXIMATELY 18.66 ACRES OF PROPERTY LOCATED SOUTH OF HERBERT HOOVER HIGHWAY, FROM COUNTY MULTIFAMILY RESIDENTIAL (RMF) TO 16.75 ACRES LOW DENSITY SINGLE FAMILY (RS5) AND 1.91 ACRES MULTIFAMILY (RM -12) (REZ15- 00014 / ANN15-00001) (SECOND CONSIDERATION) Hayek: Moved by Payne, seconded by Dickens. This is 2nd consideration. Any Exparte from last reading? Any one from the audience? Dilkes: Can you hold on for a minute. Is there expedited actions on this..? Hayek: There isn't on this one. There is on the next one. Hayek: Roll call please... Hayek: Second consideration passes 7/0. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 10 ITEM 6b REZONING BENTON ST / RIVERSIDE DRIVE — ORDINANCE REZONING APPROXIMATELY 1.45 ACRES OF PROPERTY FROM COMMUNITY COMMERCIAL (CC -2) TO RIVERFRONT CROSSINGS - WEST RIVERFRONT (RFC -WR) ZONE LOCATED AT THE NORTHWEST CORNER OF BENTON STREET AND RIVERSIDE DRIVE (REZ15-00015) (SECOND CONSIDERATION) Hayek: This is second consideration and there is a request for expedited action. Mims: I move that the rule requiring that ordinances must be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, that the second consideration and vote be waived, and that the ordinance be voted on for final passage at this time. Botchway: Second. Hayek: Moved by Mims, seconded by Botchway. Discussion? Anyway from the audience? Tracy, are you coming up or are you doing (laughter) You're not up ... you're up for the next one! (laughs) All right (laughter) Sorry to call you out. Further Council... we're on the motion to collapse here. Further Council discussion? Roll call, please. Mims: Move final adoption. Botchway: Second. Hayek: Pass and adopt moved by Mims, seconded by Botchway. Discussion? Roll call, please. Passes 7-0. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 11 ITEM 7. UNIVERCITY SALE, 1104 EAST BURLINGTON - AUTHORIZING CONVEYANCE OF A SINGLE FAMILY HOME LOCATED AT 1104 EAST BURLINGTON STREET a. PUBLIC HEARING Hayek: This is a public hearing. The hearing is open. (bangs gavel) We have a special presentation for this. Hightshoe: Hi! On your agenda tonight, um, you'll see the conveyance of 1104 Burlington Street. This marks a major milestone in the UniverCity Program. It's our 50th home sold and I'd like to welcome, um, our new homebuyers coming back from, um, Dallas to make their home in Iowa City. We have Daniel and Ann Marie here (applause) so they are our 5e homebuyer! We thought this would be a great time to discuss, um, where ... how we came about the UniverCity Program, our major accomplishments, and where we go from here. Should we turn down the lights or no? Okay. Um, as you can see this is 1104 Burlington and it's our 50t` home. The program came about, we had a I -Jobs grant back in 2010. Um, the purpose of the ... the I -Jobs grant was to address some of the concerns down in the University area. The high cost of housing, pricing out of a lot of homebuyers into the area. Um, people want to work and live in the ... by major employment centers. We also saw lock ... lack of investment in the University -impacted neighborhoods. Um, it only took about two minutes driving around downtown Iowa City when we saw some properties that, you know, were in disrepair. There was lack of investment, um, there's a lot of issues we're trying to resolve through the UniverCity Program. The University -impacted neighborhoods are those, as you can imagine, that are close to the University, have a high percentage of student rentals, on the east and west side of the river. The goal of the program has always been neighborhood stabilization. These are the three goals that we applied for the grant and these are the three goals that guide us today. We want to preserve the neighborhoods around the University. We want to make sure they're sustainable. The people who want to live by the University are given opportunities, that they can if they want to live near our downtown and be part of our downtown community, and we want to reinvest in these neighborhoods. The program works ... we have, um, lending partners, our area local lenders. We get below- market interest rates from them. We purchase the properties. We look to any funding source that we can find to invest up to $50,000 in property, or $50,000 in rehab for those homes. We work with local contractors. We bid it out. We ... we sell the homes to income -qualified applicants. There's been some confusion about income, and that's my next slide, so I'll go into that. Um, the reab ... rehabilitation funds are a grant to the homeowner, and when we sell the property, we reimburse the lender and we put a deed restriction on that home. Um, for the I -Jobs it was 10 years. We've moved to a 20 -year. So that home will remain owner -occupied for the next 20 years. All homebuyers to date had to be below 140% of median income, unless that home ... like when we were converting triplex or duplexes back This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 12 to single-family, those are expensive. We can't sell the home for less than 190, so in those cases we went up to 160% of median income. We have a his ... what we provide the sell price based on the funding source for the rehab, so if we use CDBG or Home Funds, then the homeowner couldn't be over 80% of median income. If we use the Housing Authority like we did for 16 homeowners, they had to be below 80% of median income. And the original I -Jobs, the 26 homes, they have a ... went by (mumbled) owner -occupied, which ... it doesn't translate directly to how we do our HUD -meeting income. It's about 90 to 110% of median income based on household size. So there's a element of affordability but not all. Um, our primary goal is stabilization of these neighborhoods. We've purchased 56 homes since 2010, and you can see clusters in the Douglas Court area, Governor Street, Burlington, and north Gilbert Street. Um, the program has a lot of benefits. Um, we're providing homes, um, by ... where people want to live. They can reduce their commuting time. Um, we've ... we've increased the tax base by over $1.2 million by the homes that we've sold to date. Also, like I said, um ... the neighborhood stabilization component is huge. They become invested. What I love seeing is after we've rehabbed a home, we start seeing neighbors who now feel it's more comfortable. They start taking the risk. They in ... invest in their home. And we've won about eight historic preservation awards, and not all that we did. Some of the homeowners that bought our homes continue to invest in the property. Um ... and we're ... we'll basically partner with anybody, so ... um, Friends of Historic Preser ... Preservation, Habitat... Salvage Barn, our area lenders. We worked with the Neighborhood Associations at the beginning in the choice and the selection of the homes that we ... that were ... that were purchased, and my favorite part is just showing what we did. Um, we used the flood buy, I mean it was a bad time for a lot of people, but we were able to use the materials from the flood buyout into the UniverCity Program, reducing the cost of the rehab. So we salvaged furnaces, granite countertops, toilets, vanities, trim, you name it ... if we could restore it, then... basically get it and use it, we did! Um, my ... the great part is like seeing the before and afters of these projects that we do. So, this one won a historic preservation award. Um, some of the conditions of the homes that we buy, you know, we have to evaluate, um, you know you're looking at competing goals. You're looking at accessibility, affordability, historic preservation, sustainability, and we only have $50,000 that we can put in. So, it's a choice of what we do and we try to balance those competing goals, but we always do the code, um, code enforcement issues like plumbing, electrical. We encounter new ... knob and tube. We take that out. Um, if there's ... if there are major foundation issues, we repair those. Once we get the basic things done, and I love like what we find in some of these homes before we rehab (laughter) um, we make some major transformations. This one I recall it was in the Douglas Court. It was a vacant home. We purchased it, um, we did rehab. We used, um, granite countertops that we salvaged out of the, uh, home on Normandy, and the kitchen looks beautiful and it was an affordable... it became a very affordable home to the next homebuyer. Like I said, we have used 8.5 million from local lenders. That triggered $9 million in sales for this program. Over 2.5 million completed in rehab. State I -Jobs was about 1.3 million of that. Housing Authority with some This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 13 federal funds was 190. CDBG and Home. So basically for our investment we have triggered and leveraged millions of dollars, um ... and talking about when we're trying to reduce congestion and retuc ... reduce density in some of these neighborhoods. Um, we've converted six duplexes and a triplex back to single- family homes. I wanted to bring up what ... what the Miller -Orchard Neighborhood, cause this is a condensed neighborhood. Has about 50 homes. We renovated nine homes. We increased those nine homes assessed value by 14%, while a citywide average at the same time was 7%, and in the neighborhood we increased the assessed values of 347 over that time period. What's great for us is that not only are the homebuyers have a lot of positive comments, but the neighborhood is starting to see it. Um, so I asked some of the neighbors if they could give me their feedback on the program and I ... I received this from Paula (mumbled), she's a Miller -Orchard resident. And then from Josh and Meg Jacobs on Burlington Street. This was the comment. From here, like I said, we have 56 homes. Um, the 51th... 51" I guess (laughter) I talk too fast! (laughs) Um, will be ... is on your agenda. That'll be our next sale. We have five homes after that, and then just today we signed a purchase agreement for our 57h home, and that'll be at 321 Douglas Court. So we've budgeted about two to five homes at this point going on forward. Um, so we're very selective in where we choose those homes, and then if you have any questions you can always reach, um, staff about it. Any questions? Dobyns: Tracy, 140% is the upper level, um, for the average median income. What's the average, uh, buyer of a UniverCity home ... over the last two years? Hightshoe: Due to the funding sources, I'd say that an average would be about 100% of median income. And then it, like I said, if the funding source dictated it, we went below 80%, and now we're selling those homes, um, like the Douglas Court homes almost primarily to ... all to people under 80% of median income. We can sell a home from 150, 160 below. We try to, you know, accomplish that we can offer those homes to people with lower incomes, but when we're converting like those large homes and we have to ... we took us 200 grand to (mumbled) buy them, we can't sell them (coughing, unable to hear speaker) they wouldn't be able to afford those homes, so we go ... we go to a much higher income level. Mims: I just want to say I think this ... has been a fantastic program. I know you've worked really hard on it, Tracy, as well as a lot of other staff, but I mean the combination of neighborhood stabilization, um ... reinvigorating these buildings, getting them owner -occupied versus rental, I mean, some of the pictures are just incredibly dramatic from what they were when the City bought them to when we ended up selling them and ... obviously for some people this is an opportunity to gain a home that they might not otherwise have been able to afford and I realize that varies depending on the house, etc., but ... um, you know, that's one of our goals and one of our ... one of our, uh, parts of our strategic plans is that neighborhood stabilization, and I think this has just been a really, really good program. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 14 Hayek: Some, you know, some have suggested that, you know, you can't accomplish much with ... with a handful of homes. Um, and you know to that I would say that stabilizing and strengthening these neighborhoods can only be accomplished one home at a time, and these 50 homes have an outsized impact because you see what occurs in the vicinity of those homes. Hightshoe: We've tried to cluster them so you see an impact within that neighborhood. Hayek: So I hope we continue this indefinitely. I ... I, and I hope we can restore the partnership with the University, which was a funding partner, and ... and maybe will be again in the future. Urn ... uh, but ... but this is great and, uh, you know, a picture's worth a ... a thousand words (laughs) and I want to welcome our new ... new residents to town and congratulate you, as well! Throgmorton: I ... I'd like to say I admire the whole program, but I especially admire what's been done in Miller -Orchard. Uh, I think, uh, looks like 10 houses or thereabouts, uh... Hightshoe: Nine. We've done nine. Throgmorton: ... have been converted there, or ren... renovated there, uh, and that strengthens the Benton Hill Park. It ... it enables that other, the new development on, is it Orchard Street, uh, the ... the co -housing project... Hightshoe: Uh huh! Throgmorton: ... which hope... hopefully (both talking) will move ahead, and justifies putting more money into the, uh, the other developments at the corner of, uh, of Benton and south Riverside Drive. It ... it's a ... a ... what's the right word I'm after? Uh... I can't think of the right phrase, but ... it ... it's a .... an incremental transformation that leads toward improvement instead of the other way. So I really admire it. Botchway: I would encourage as well, I mean, um, you know, uh, you know traveling a little bit and ... traveling a little bit more now as well, um, you know you see cities, and previous cities I've lived in before where, you know, you see the degradation of homes in neighborhoods and this is, you know, really been transformative and, you know, mouths dropped on a couple of these. You know, I didn't know if there was a bus that would then be moved away, you know, for a couple of these pictures as well. Hopefully everybody watches the home makeover (laughter) show, but um, but yeah, this is amazing work. I'm inspired. Um, there's some stuff that I need to get done in my own home, so I'll be talking to you as well (laughter) um, but uh, appreciate the hard work that you've put into this, and you know, everybody else that was involved. Throgmorton: Virtuous circle is the phrase I was trying to come up with. (laughter) This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 15 Hayek: All right! Thanks, Tracy! Uh, this is a public hearing. If anyone else wishes to address us, certainly can. Otherwise I'm going to close the public hearing. (bangs gavel) b. CONSIDER A RESOLUTION Mims: Move the resolution. Dickens: Second. Hayek: Moved by Mims, seconded by Dickens. Discussion? Roll call, please. Passes 7- 0. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 16 ITEM 8. DEBT MANAGEMENT POLICY — RESOLUTION ADOPTING THE DEBT MANAGEMENT POLICY FOR THE CITY OF IOWA CITY Mims: Move the resolution. Botchway: Second. Hayek: Moved by Mims, seconded by Botchway. Discussion? We have a staff presentation. Dennis! Bockenstedt: I have a presentation prepared. Uh, good evening, I'm Dennis Bockenstedt, the Finance Director for the City. Get this cued up. Uh... tonight for City Council consideration is an ... revised and enhanced debt management policy. Uh, the purpose of the debt management policy is to help provide guidelines for the issuance of debt, and it's also helped to keep the property tax rate lower and to assist in maintaining the Moody's triple-A bond rating. It's also to help comply with the FCC and IRS oversight, and to help maintain a strong financial and debt management. Uh, the proposed policy contains 12 separate sections. Uh, topics included in those sections include, uh, debt limits, uh, debt structure, uh, method of sale, uh, the credit rating, and a new annual reporting requirement. Uh, Section 1 of the proposed policy covers the general provisions of the policy. It sets the allowed uses of the debt, um, the allowed uses under the policy would be for capital improvement projects, firefighting equipment, affordable housing developments, and economic development projects only. Uh, for capital improvement projects, uh, that would be funded with debt, they must be part of the five-year capital improvement plan. Uh, the policy would also set pay-as-you- go financing as the preferred method of funding for projects over the issuance of debt. Uh, the general provisions also set the Finance Director as the responsible party for compliance and monitoring of the policy. Uh, Section 2, uh, discusses the debt limits. Uh, for general obligation debts, there is a 5% State legal limit on the total assessed value. Uh, this policy imposes a stricter limit of 1 %s% of the total assessed value and sets a goal for the City to try ... to strive to reach a .75% of total assessed value, which is the Moody's, uh, triple-A benchmark. Uh, further limits in the policy, uh, set that the debt service levy would not exceed 30% of the total property tax levy and also that revenue -secured debts, uh, such as, uh, water, revenue bonds, and the sewer revenue bonds, uh, the net revenues of those utilities, uh, would be at least 1.25 times the annual debt service. Further limitations, uh, the policy would disallow the use of annual appropriated debt to circumvent the limits that are in the policy. Uh... the outstanding bonds, uh, that are subject to the debt limit, the City currently has 12 outstanding issues, uh, of general obligation and tax increment revenue bonds that total, uh, just under $62 million. When we take a look at those outstanding bonds versus the State legal debt limit, and this is over the last 10 years, uh, the green bar, uh... is the top part. You can see that the legal debt limit has risen over the last 10 years, whereas kind of the, uh, the light blue bar, the bottom set, that's the outstanding bonds, has held steady, and is ... has decreased slightly over the last 10 years. What that translates This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 17 into is that the, uh, net bonded debt, over the percentage of the total assessed valuations has decreased over that period of time. So for the last 10 years that, uh, the percentage of debt or total valuations has decreased from 2 %s% down to just over 1 %. Uh, the red bar on this chart represents, uh, the limit that is in the proposed policy of 1 'h%. Uh, the green bar, uh, is the goal that we would strive to achieve of the .75% of total valuations. Uh, for the debt levy limitation, uh, the current, uh, total property tax levy, or I should say the City property tax levy is $16.65 per $1,000 of value. Uh, the debt service levy is $3.92 per $1,000 of value, or 23.6% of the levy, uh... the limit that is proposed in this policy is 30% of the levy. Uh, for outstanding revenue bonds the City currently has six outstanding revenue bonds, uh, three sewer bonds and three water bonds, totaling $47.6 million. Uh, when we look at the revenue bond coverage, uh, which is, uh, utilities net revenues, or revenues minus its expenses, first is its annual debt service and for fiscal year 14, if we take a look at the water, uh, revenue fund here or the water utility fund, it has a net revenue of $7.1 million. It had an annual debt service of $4.6 million, or it had a coverage, a bond coverage, of 1.52 times. Uh, for waste water it had a coverage of 1.41 times, and this policy sets the requirement that the utilities would cover at least 1.25 times their annual debt cost. Uh, Section 3 of the proposed policy, uh, discusses debt structure and debt terms. Uh, for term length, the policy sets for GO bonds a standard length of 10 years and revenue bonds extend to a length of 20 years. Uh, under no scenario should the length or the term of the bonds exceed the life or payback of the project being funded. Uh, also for debt structure it sets a preferred, uh, payment method as a rapid repayment; however, the general rules and what we've generally use is a level debt sort of schedule. Uh, this policy would allow for balloon structures, uh, backloaded principle, or increasing payment structures; however, a financial plan would be put into place to demonstrate repayment of those bonds. Uh, the same is true for variable rate debt. These purchases and other obligations, uh, they should be, uh, limited and specific purposes, and financial plans would be put into place to demonstrate the repayment of that debt. Uh, other topics covered include the short-term debt. It would also be limited to specific purposes and require financial plans. Uh, the policy discusses the selection of consultants. We do use a bond counsel and a financial advisor. And, um, and also sets the preferred method of sale. Uh, for general obligation debt it would require, uh, that money to be competitively bid. Uh, for other types of debt it may be placed privately or negotiated, if it's in the City's best interest. Um, other topics covered in the policy include refundings. It sets a minimum, uh, savings requirement in our ... before we'd perform a refunding. Uh, it prohibits the use of derivatives and requires the investment of bond proceeds, uh, be consistent with the City's investment policy. Uh... Section 8 discusses the City's credit rating. Uh, the policy would set Moody's as the preferred, uh, credit rating agency for the City. It also sets a goal for the City to strive to maintain its triple-A bond rating and also strive to obtain at least an A3 rating or higher for its revenue bonds. The policy also discusses use of credit enhancement; however, the City has not used much credit enhancement in the past, such as, uh, insurance. For the, uh, City's bond rating, which this last year was triple-A and has been for... approximately the This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 18 last 39 years, uh, you can see that that places the City in the upper 6 %2% of cities nationwide. And, it is, uh, places Iowa City as only one of two cities in the state of Iowa that maintain a triple-A bond rating. Uh, each year when we do our general obligation bond issuance, uh, Moody's issues a rating report. Um, and from our 2015 rating report, uh, Moody's, uh, the rationale they gave for giving Iowa City a triple-A rating was that we had a growing tax base, uh, benefiting from the presence of the University of Iowa, that the City has a healthy financial profile, characterized by ample reserves and prudent management, and the City has a moderate debt burden with rapid principle amortization. Uh, that report also lists the strengths of the City, is that it has a stable economy, uh, a healthy financial profile with ample reserves and prudent management, and significant revenue raising flexibility. It does list as a challenge to the City, uh, that it has a smaller tax base. Iowa City is one of the smaller triple-A entities in the country, and that we have lower socioeconomic indicators. Uh, what could make the rating go down? Uh, deterioration of the tax base, uh, could make the rating go down. Uh, reductions in the City's financial reserves could make that rating go down, and a growth in the City's debt burden could make that go down. Uh, Section 9, (mumbled) discusses, uh, continuing disclosure. Um, the City does have a separate post -issuance compliance policy to, uh, assist with compliance with IRS regulations. Uh, we are currently considering a, uh, a new policy for continuing disclosure. Uh, requirements of the FCC to help comply with those laws and regulations, and also mentions, uh, the compliance with our disclosure and bond holder certificates. Uh, new to the policy, in Section 12, is an annual reporting environment to the City Council. Uh, the policy would state that, uh, within 210 days after the year end, uh, management would provide the City Council, uh, a report that summarizes the debt, uh, statistical information, outstanding bonds, uh, revenue bond coverages. Uh, it also, uh, summarized upcoming bond issues and any other material events or relevant information. And to summarize, uh, the purpose of the debt management policy is to help provide guidelines for the issuance of debt, to help keep the property tax rate low, uh, to help maintain the Moody's triple-A bond rating, to comply with SEC and IRS oversight, and to help maintain strong financial and debt management. And I'll try and answer any of your questions. Dobyns: Could you pull up the slides again, Dennis, and go back to ... 8, I believe. Payne: Slide 8 or #8? Dobyns: #8, uh, Roman numeral 8. Sorry! Go ... go another page. Keep going, sorry! Okay! Challenges (clears throat) Smaller tax base and lower socioeconomic indicators relative to similarly rated entities. So that means for like Moody's ratings, triple-A bond rating, we are ... um, an unusually small tax base. Bockenstedt: That's correct. They do give us credit for the valuation of the University of Iowa. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 19 Dobyns: That's a fact, but I'm struggling to figure out how that might... recommend what sort of policies City staff might be recommending to us on that basis. Bockenstedt: As far as the challenges go? Dobyns: I mean it's a challenge. There's a suggestion there that it's a problem, and ... probably we should effect policy formation going forward, and ... I'm trying to think what that might be. Mims: Growing the tax base (several talking) Dobyns: I know it seems obvious, but I just want to ask, um... Bockenstedt: I mean I guess that would be the ... the policy would be to grow the tax base (both talking) Dobyns: So there must be a problem, I mean being... Bockenstedt: Well, the larger the tax base, uh, I think they view that as the greater ... the security for the coverage of the debt. The larger the tax base to raise revenue from, and so when you have a smaller tax base, uh, I believe it's their belief that it'd be more difficult to raise revenue from the smaller tax base. So, um ... being a smaller tax base, it would generally be more difficult for us to raise revenue than if we were a larger city or a larger, uh (both talking) Dobyns: Even though we have a great Moody's rating (several talking) Yeah. Hayek: Well you know (both talking) Bockenstedt: ...they take a lot of factors into consideration and they implemented a scorecard, uh, the last couple years that kind of quantifies, uh, those factors, and so, um, when they took a look at those statistical factors, and they size it up. You know, they kind of take everything into account as far as your credit worthiness. Um, and when we compare ... when they compare us to other entities, we are smaller and they see that as a little more of a risk because of our ... our revenue generating capacity. Payne: Do they also compare your ... somehow compare your tax base or your valuation to your debt, so you have a ratio, and because of that ratio, that's part of the reason why? I mean our debt isn't really high compared to our tax base. It's (both talking) Bockenstedt: Right. Right, it ... I mean that's ... one of the indicators we were looking at as ... as part of the policy would be to ... is when you look at that tax base (mumbled) amount of debt we could issue, um, you know, they look at that ratio and actually we are higher for triple-A entity, even though ... when you look at a lot of our This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 20 comparatives we seem extremely low. Uh, most triple -As do, uh, use pay-as-you- go funding, uh, over the issuance of debt. Hayek: And we ... and we start to some extent with one hand tied behind our back because some 40% of our land base can't be taxed. It's the University campus and ... and other exempt institutions. Bockenstedt: That's correct. Markus: But I ... but I'd say that you ... you have to bump up and look at your strengths, and one of the ... one of the strengths that, um ... you can counter some of the tax base with is maintaining a substantial, uh, fund balance. I know around the country there's a lot of pressure on cities to reduce that fund balance, uh, in part with an argument to return it to the taxpayer, but yeah, you can return it to the taxpayer, but if you notch down in terms of your bond rating, your debt cost is going to go up! So ... we ... we take ... we pay a lot of attention to that and Moody's in this scorecard that Dennis is talking about ... came out with a provision that they want us to maintain a 30% fund balance. I think we were probably closer to 25 previously and so we've ratcheted up our requirement for a 30% fund balance, as well. I think the other thing is, um ... when you look at those tax ... or those challenges, the smaller tax base, you say well grow yourself into a larger tax base. The challenge that I see in the state of Iowa is, tax base is grown with the use of TIF. And so you have to be prudent in the use of TIF. The problem in using TIF to grow your tax base is the tax base growth is used to retire the tax increment financing that's used. So ... you can't just grow yourself out of this situation, especially when you get into a crisis. So you have to look at these things before you get into the crisis situation. Now what's a crisis here in Iowa? A crisis here in Iowa is the tax reform that has occurred and will start to really take effect I think this year and potentially, uh, with the drop of the backfill. So we think during this upcoming legislative session, cities in general have to ... have to get on board and really work with our legislators to make sure that that backfill doesn't go away. You know the history in the state of Iowa. When they create backfills, backfills typically tend to, uh, disappear at some point in the future when the short term memory of most people fades enough so that they can slide that through, and you know in listening to the State budget commentary that ... that they're running into some fiscal challenges themselves, so they look for things to start to go after. So, that I think is going to be one of the big challenges in this upcoming legislative sessions. Bockenstedt: And I would say not all entity can be everything, uh, that Moody's wants. Um, I think we, with our policy development we've tried to focus on our positives and mitigate some of our negatives, um, and so I think that's where we've tried to focus on the things that we have control over, that they think are positive, cause we can't control the economy, we can't (coughing, unable to hear speaker) growth of our tax base, but we can control the amount of debt we issue and the amount of reserves we keep on hand. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 21 Markus: So the other priority is this lower socioeconomic indicators. Just think for a minute who the other triple-A is in the state of Iowa. It's West Des Moines. And you look at the per capita income of the, you know, the average resident in ... in West Des Moines, it's substantially more. That's ... to me that's one of the attractivenesses of Iowa City because it has a diversity, but that diversity causes us some challenges in terms of service delivery and the types of services we provide, that West Des Moines does not provide. So ... we have to, you know, that goes back to the comment about prudent management. We have to make sure there's a revenue stream associated with the services we deliver, to make sure that we can afford those things that we're doing, and you know, we're a Big Ten. We try to do a lot of things for the full range of our community, across culture, across arts, across ... uh, inclusive... inclusiveness in different parts of our operations, so ... those are all things that I think make Iowa City what it is, but by comparison, there's other jurisdictions that tend to have more inherent wealth than we do. So, I think we're doing remarkably well to maintain a triple-A bond rating. Throgmorton: So we're being asked to approve a ... a debt management policy, uh, I have a lot of confidence in Tom's skill and your skill, Dennis, but I do need to ask some questions because we're being asked to approve a policy, right? Um .... it ... (mumbled) I don't fully understand the consequences of what we're being asked to approve. In other words, what if anything is new in this policy or is it just assembling things that have been done in the past, or are you asking us to change certain aspects of policy? That's the first question, and then the second would be, if you're asking us to change policy, in certain specific ways, what are the ... what are the potential consequences in terms of our policy choices. Will we be constrained in certain ways? Or not. You know, I don't know ... it's the first time I've seen this policy, right? Bockenstedt: Well, uh, the previous debt ... our debt policy was ... was, uh, just maybe a half a dozen lines in the annual budget. Throgmorton: Right. Bockenstedt: Um, it was not a substantial policy. It just hit on a few key points, a few key indicators. Sothis is a ... a substantial change in the ... the development of the overall policy. Um, it is possible that it could place restrictions on some of the activities you would do or funding that you would chose to do in ... in the future, um ... but (mumbled) the reasons that those limitations are put into place is to help control the overall level of the debt. So you know without those indicators or those limitations, there would be nothing that would, um, check the issuance of debt or the amount of, um, obligations that the City would incur, and so the intent isn't necessarily to ... to prevent you or stop you from doing that, but it would give you indicators when you would be moving away from what has given the City its triple-A bond rating (coughing, difficult to hear) consider to be prudent. So, um, this really is a compilation of...of some of the things we've done well. I think This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 22 some of the goals we should strive to achieve, such as the, um, the overall debt limit and there's been a lot of changes in the Moody's rating in the last couple years. There's been a lot of changes in the IRS. There's been a lot of changes in the SEC, and so the ... the regulation from the Internal Revenue Service has ... has increased and the SEC regulations have increased dramatically. Um, they've been very proactive, uh, in their, um, how they're perceiving and handling municipal debt. So ... from our perspective when we see what's going on around us, what's going on with federal regulation, um, what's going on at the State level, what's going on with Moody's, uh... you know, we felt it's only prudent that we be proactive in what's going on around us and set policies and limits that we think are going to help address those issues. Um, and so that's really what the intent of this is, is to say ... things are going on, we need to get, uh, you know actions in place so that we can be proactive, rather than reacting to what's going on around us, and ... if we do start to incur high levels of debt or we see changes in our tax base or there's other indicators that may (coughing, difficult to hear speaker) direction, uh, that would see a Moody's downgrade, then this would be more (mumbled) paying attention to that, then coming back later and saying, well, what happened, how did this ... how did we get here, because when you get to that point, often times it's too late to fix it. Throgmorton: Okay, thanks. So, but ... if..if this would constrain, uh, this ... if adoption of this policy tonight would constrain the ... the policy choices that are available to the Council, either this Council or a future Council, I ... I wouldn't want to approve the policy without really understanding it, and you know, this is a first impression kind of thing, in terms of seeing this whole policy assembled into one document. Not saying it's bad cause I don't know! It's ... a lot of it sounds, you know, perfectly on ... spot-on, but ... seems like a major policy and so if there are major constraints built into it, I want to know what they are and ... and I wouldn't want to approve 'em without really understanding how they play out. Markus: What I'd say to you, Jim, is first off the governing board, that's you, um, has control of this policy. Going forward if you feel this policy is over ... over restrictive in a particular initiative that you wish to create, what this policy does is gives you the juxtaposition of...you know, what ... what you're proposing to do versus the consequence of what you're proposing to do. It doesn't, um ... it doesn't absolutely restrict you, uh, from ... e ... eventually amending this policy to accommodate it, but it gives you ... a ... informed, uh... um ... piece of information about the decision you're making, and so I don't think it nec... it unnecessarily restricts you. I think what it does is creates a responsibility and makes you understand what the consequences of your decisions are. So, when you go down a ... a path about any particular policy that's associated with a revenue stream, it forces staff to look at, well, how are we going to pay for these things, and if we're going to pay for this and it causes some problem over in another part of the budget, we will be able to say that. We'll tell you that, and so at least you'll have an informed, um, decision to make about if we really want to do this, it does have consequences, and you know, every ... every policy we make has consequences This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 23 both intended and unintended. So I ... personally I think this is a responsible way to go about, uh, operating your business, and ... and financial policies, if you pick up our budget document right now, you'll see we have financial policies about ... just about everything. And what they do is guide you. I don't think they necessarily restrict you. Botchway: Just to be clear, you do have that analysis as far as, you know, making a determination, you know, if something was to be funded (mumbled) something was supposed to be funded from another side of the budget, you would still have those conversations. That just .... we're just kind of codifying it into some type of policy. Okay! Markus: Yeah, and you know ... we have this same discussion every year during the budget process. You know, do you want this or do you want this? You have to prioritize. We can't ... we can't possibly deliver everything that everybody wants! So it comes down to choices and priorities. And that's what we use the strategic plan for more than anything, is to help prioritize how you're going to spend those funds. Payne: I have more, just a general question. Um, if...go forward a couple slides. You talk about ... you said it ... you started the slide that said what's new in the report, in the ... in here, and it was ... was a table, I think. No, keep going. Oh, you're going the wrong way, I think. I want to go towards the end (laughs) Sorry! Bockenstedt: That's all right. Payne: There! So 210 days after year end you'll provide an annual report. Bockenstedt: Correct. Payne: If I told my employer seven months after the end of the year I'd provide them a year end report, they would flip out. So, my question is is why did you pick 210 days? Bockenstedt: Well, it wasn't out of a hat (laughter) So... Payne: It what? (laughter) Bockenstedt: It was not out of a hat! (laughter) Our ... our (several talking) our, uh, financial part of our comprehensive annual financial report is audited and finalized by December 31St. So right now they're in the middle of compilation of that. It's a ... it's a fairly comprehensive financial document that's put together, very technical. Um, it goes through an audit process and then that is required to be submitted and published to the (mumbled) by the end of the year, by December 31St, six months after the year end. So they give you six months to compile, prepare, and publish your financial report. From that report, there's a lot of the This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 24 data information that is required to complete the statistical analysis. Uh, the compliance for our bond disclosure requirements from ... for pretty much all of our bond disclosures... is one month after that, or thereabouts. So this is all based on the timing of how long it takes to compile and publish the financial report and the timing of our bond disclosures to our bond holders, and so it only makes sense that we would provide the Council with the same information that we're providing to our bond holders and other interested parties. Payne: Can we add a word in there? Bockenstedt: Okay (laughs) Payne: Say 200 days after fiscal year end, because I read that as after December 31 sc When ... when you set it, that's what I thought it's going to be July before we see this. Bockenstedt: I'm sorry. It's after fiscal year. Payne: Okay! So ... I ... I think that would make it clearer in the expectation. Bockenstedt: Okay. Mims: I would just comment that ... having gone through the City budgeting process now six times, I think, since I've been on Council, and ... working through the debt, uh, policy that we've just kind of had talked about or had in the ... in the annual report and stuff, I think this is just an incredibly, incredibly good, strong document for the City going forward. Um, as you mentioned, Dennis, changes on the federal level with the regulatory agencies, um ... looking at things much differently than they have before. Sometimes a little strangely, but nevertheless we have to deal with that. Um, with Moody's changes to their scorecard, um, in making it more difficult. We saw this past year a number of cities who lost their triple-A bond rating, who really hadn't had anything necessarily go bad or different with them, but the way the scorecard changes they ... they lost their triple-A rating, recognizing how important that rating is to us and the interest that we pay, um, at such lower rate because of having that ... that, and in earnest, Tom, as you said, you know, this is a policy which we all know the Council can change at any time, but ... having this codified this way and having staff looking at our budgeting with these metrics in mind and bringing that repeatedly to the Council's attention, um, that ... to run this large, complex organization in a ... in a financially astute manner given changes in property tax at the state level and all the other things I just mentioned, and keeping those limitations ... I mean ... it just makes sense that it keeps that thing front and center so that we hopefully don't go off and do anything kind of crazy, which puts us, um, in financial jeopardy. So, um, I just really wanted to say thank you to Dennis and all your staff and the rest of City staff. I think this is a ... this is a really important document. I think a lot of people won't understand its importance cause they just don't ... they don't get into the finance end This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 25 of stuff, but I would say from my perspective this is maybe one of the most important policies we've enacted in a long time. Hayek: And you know we ... we have not had a conversation for quite a while on ... on the changes on the horizon in terms of property tax reform and ... and uh, fuel tax and ... and things like that. Um, been dealing with other issues. But that's an incredibly important conversation for us to maintain going forward, and I think this helps us ... I guess, uh, solidify the discipline, um, with which we, um ... uh, are preparing for ... future changes. You know, whether it's property tax reform or otherwise, and this is something we've been very careful about the last couple of years because we ... we know this is coming, um, and cities around the state will be facing, um, greater and greater challenges to their—to their budgets, um, because of these changes. We're getting ahead of it, urn ... uh, and we have to maintain that ... that prudent, disciplined, uh, approach and I think this encapsulates that in a ... in a really effective manner. I applaud you for it. Throgmorton: So, I want to say I recognize, um, Susan's financial expertise and I, uh, admire it a lot, so it influences me a ... a lot, but I also want to say with regard to what Tom said, in response to my own comments, that urn ... in ... at some point in the future, I'd hate to see the Council be told they cannot do something because it violates this policy, and ... and, Tom, you ... I understood you quite clearly to say that's not what would happen. One would say instead (both talking) if you do, there'll be these kinds of effects, and (several talking) may not want to do it. Mims: And then the Council could change the policy if they felt that strongly about it. Throgmorton: Yeah. Yeah. Hayek: Yeah, I mean we ... we can chose to be proverbial drunken sailors (several talking) and that, you know, but ... but (several talking) that occurs. (laughter) No offense to the Navy! (laughs) Payne: No different than the Comprehensive Plan, if, you know... it's... it's a guide! If we want to change something, we change the plan so we can change what we want to do in a certain area. So, I mean, it's ... it's a living document that can be updated as needed to ... fit what you want to do as long as you understand the consequences ... of either. Botchway: One of the things I will say though, um ... cause I agree with everybody's point. I think it focuses on ... I don't know how to say it any other way than transparency. Obviously we're a transparent... we're providing this information. It's good information. You know, we're able to understand it. Obviously Susan has a great expertise to understand it even more, but ... there's gotta be some level of how we go about it. I mean (mumbled) speaking about the annual report as well, because of the level of detail that goes into it, providing like a quick hits, as far as, um, you know, the casual reader to the packet or the casual, um, person to come to a This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 26 meeting, whatever the case may be, so there's some level of understanding, because I think that sometimes we ... we get into that back and forth ... maybe not get into a back and forth, but we have some concern from the community that we're not being as transparent as possible. Um, but I think a lot of it ... lot of times it comes from just the ... the level of detail within the document that makes it so tough to kind of have that conversation. Mims: But I think related to this, Kingsley, one of the things that has really helped in that transparency when it comes to ... the budget of the City is the City Manager's executive report or whatever you call it, Tom, that goes at the beginning of the financial document. I mean, that ... I think maybe it's now expanded to 10 or 12 pages (laughs) but still it is ... to me it is an incredible synopsis of what is in the other 400 pages and the kind of major changes that are taking place and the ... and maybe some of the major concerns or things that we need to be looking out for going forward, um, so for anybody who doesn't have the time or interest or expertise or whatever, you know, to read those 400 pages, which is probably 99.9% (laughs) of the community who doesn't want to spend that time, if they would take the time to read that 10 or 12 page executive summary that the City Manager puts at the very front, it ... there's an incredible amount of information there about how we are financing City operations. And I'm sure Dennis probably (both talking) Bockenstedt: I'll say that one of the reasons that the documents are so large. Uh, one, the City's finances are immensely complicated, but also it is because we disclose so much information. You know, if we wanted to cut the document in half and eliminate a lot of the disclosures we are making, it may be easier to read but you know ... there's a lot out there that people was ... people want to take the time and ... and look into it, there's a lot of information. So we're really disclosing as much as we can. Botchway: And I'm not advocating for that. I think it was more along the lines I forgot about the executive summary so that ... that is a great document that kind of focuses on the (mumbled) Hayek: Thanks, Dennis! Dobyns: You know, Jim, I think we have wide discretion what the City Council can do. Um, the Iowa code as it's legislated or is interpreted by law, you know, we have to follow that. The City Charter, we have to follow that. But when we have something like this, um, I think that informs us what we should do in the future. But going forward, if a future City Council, um, wants to change this, it should have full discretion. This merely informs them what we thought in the past. Um, and I take a look at the Comprehensive Plan in a similar fashion. Hayek: Okay! Further discussion? Roll call, please. Passes 7-0. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 27 ITEM 9. (EXTENSION OF IOWA CITY DOWNTOWN SELF -SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT (SSMID) A/K/A IOWA CITY DOWNTOWN DISTRICT) - MOTION SETTING A PUBLIC HEARING FOR NOVEMBER 10, 2015, ON AN ORDINANCE TO RE-ESTABLISH THE IOWA CITY DOWNTOWN SELF -SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT FOR A PERIOD OF TEN YEARS IN ACCORDANCE WITH IOWA CODE CHAPTER 386. Hayek: Item 9, uh, regards the Downtown Self -Supported Municipal Improvement District. Uh, Mr. Dickens and I will step back and let Mayor Pro Tem take over. Mims: (laughs) They're kind of scooting back (laughter) (reads Item 9) Botchway: So moved. Payne: Second. Mims: Moved by Botchway, seconded by Payne. Discussion? I'm just excited (mumbled) no one else is going to say anything. I'm thrilled to see this. I'm thrilled that it's for 10 years. Um, from anything I have seen and read, it has sounded like downtown property owners, um ... are really seeing the benefit of this and there was much less, um, discussion, disagreement about it this second time around, and I think that's indicated, um, by the fact that they're doing it for 10 years and ... um ... any other comment, either from Council or the public? Botchway: I would agree. I mean I think just a level of, um ... you know, we were at the event the first hour. I mean not to focus on that particular event. I'm giving away some things, but um, I think it was just.. just the kind of...energy, revival around the downtown I think is important. The only thing that I will say from my notes is, you know, I think I've talked about this. I think Nancy does an incredibly job... incredible job. I think the Chamber kind of in connection with that as well. Um, just the thought of whether or not we can do that in other areas, and I know that's specifically focused on whether or not the businesses decided to do that in that area, so I do understand that, and I don't know what Council could do to weigh in, but ... because of the success of it and ... seems continued successive as well, you know, if there was a possibility of doing that, you know, for the businesses kind of around Sycamore Mall area, Towncrest area, you know, the west side, I mean there's some ... some things that I would like to see from that standpoint, but I agree. I mean, it's exciting, um, you know, I'm always interested to see what they're going to do next, um, you know, with the art and everything else. It's great! Mims: Yeah, I just think, you know, their addition of staff and they just keep adding more to their plate all the time I think in terms of their efforts, um, for the downtown area, so ... Geoff, do you have anything to add? I know you serve as our liaison to that, so ... you've been very instrumental in helping with that too. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 28 Fruin: Um, actually Wendy Ford right now is our ... our board liaison (both talking) but, um, I think it's safe to speak for all of staff and ... and say that it's been, um, a great partnership with the Downtown District and it's nice that we have a unified voice down there. It's great to have the University on board and it's ... allowed us to pursue some things that I don't think we otherwise would have been able to pursue. Mims: Roll call on this or ... (mumbled) All those in favor say aye. Opposed. Sounds like it was 5-0 in fair. Thank you. Hayek: Thanks, Susan, and uh, in case you're wondering, uh, Council Member Dickens and I both, um, either rent or own businesses in the downtown district and therefore had to recuse ourselves. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 29 ITEM 12. HOUSING CODE - ORDINANCE AMENDING TITLE 17, ENTITLED "BUILDING AND HOUSING," CHAPTER 5, ENTITLED "HOUSING CODE," TO SUPPORT NEIGHBORHOOD STABILIZATION BY PROHIBITING FURNITURE ON ROOFS, ADDING STANDARDS FOR EXTERIOR BUILDING AND FENCE SURFACES, REQUIRING SCREENING OF DUMPSTERS ON MULTI -FAMILY DWELLINGS AND UNDER CERTAIN DECKS/PORCHES, LIMITING THE STORAGE OF LANDSCAPING/CONSTRUCTION MATERIAL, AND REQUIRING GFCI PROTECTED OUTLETS AND CARBON MONOXIDE DETECTORS. (FIRST CONSIDERATION) ( Payne: both talking) Move... sorry! Hayek: That's okay! Payne: (both talking) Move first consideration (laughs) Mims: Second. Hayek: Moved by Payne, seconded by Mims. Discussion? Throgmorton: Yeah, I've ... I've expressed concerns about, uh... um ... property owners who live in the homes that they own, and about ... if we're... they're facing financial difficulties, if they're ... if they're having the housing code enforced against them that might create difficulties for them. But in our work session discussion earlier, uh, this evening, uh, I think it became clear enough that financial ... City financial resources are available to help such owners, uh, and ... to ... to make exterior improvements when ... when required. So if I understood that correctly, uh, then I'm happy to support this. Mims: I think you did, Jim, and I think the other thing ... also that's really important is I certainly have the perception that (coughing, difficult to hear speaker) the on -the - ground staff really understand what our goal is with this and really want to work with those homeowners and are not out there to be, um, you know, difficult and ... and that sort of thing, but really to help people with their own homes, as well as then how that helps the neighborhood and so, um, I have all confidence that they'll make every effort to work with people and make them aware of assistance if they need it. Because the last thing we want to do is be forcing people out of their homes because we are putting additional requirements on them. Throgmorton: I think it's crucial. Mims: Yeah, I agree. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 30 Hayek: And I would say the homeownership piece is ... is one piece of it (mumbled) fraction of it, most likely. Urn ... uh, and I'm glad to see some ... some budgetary allocations and on-going monitoring of...of that, but um ... you know, a lot of this is the rental units and (several talking, sirens in background) urn ... and quite frankly we have a lot of units that are ... are... Rummey: Excuse me a minute. Could you please speak up? I'm hard of hearing. Hayek: Okay, I'll try! Rummey: Can't hear a thing you're saying! Hayek: Okay! Thanks for letting me know! Um, a lot of this is ... has to do with rental units and um, in this community, uh, given the ... the housing demands that we have and the student population, the growing student population, uh... uh, the amount of wealth a property owner can extract from a rental property, um, is significant. And, um, I think with that comes a responsibility to maintain that property, especially in areas where the balance between rental and owner - occupied is ... uh, is ... is an issue. You know, I ... I also think it ... we ... we tend to have, um, lower expectations in terms of what the exterior aesthetics should be, um, of...of property and maybe it's unique to Iowa City, but ... but 1 see other communities that ... that, we, you know, that often look better. And I think ... I think that's a matter of some ... that's a matter of, uh, setting higher expectations, you know, especially in light of the fact that a lot of money's being made in these properties. Um, not by all landlords, but by many of them. Um, and ... uh, I think it's a reasonable set of expectations, it makes sense, and just as we, you know, spent time looking at the University partnership, uh, program, um, where we are making impacts on ... on neighborhoods and promoting neighborhood stabilization, I think this measure, uh, combined with effective enforcement will ... will have another, um, will ... will add another tool so to speak, uh, in the ongoing effort to stabilize and strengthen the neighborhoods that are most vulnerable. Throgmorton: Well said, Matt. I completely agree with you. Everything you said there. Hayek: Okay, any ... anyone from the audience? Yes! Beadleston: Yeah, I'd just like to .... my name's Joy Beadleston. I'd just like to thank you, Matt, for bringing that up because it is a huge issue. In this city there's a lot of property owners that don't even live in this city and are making huge profits off of tenants, especially, um, people that are at risk, um, people on disability, um, and fixed incomes that can be made homeless by the abuses that happen where people are told they have to clean their carpet, their deposits are taken for painting their apartment when maybe they've lived there 10 years, and it's supposed to be the person's responsibility that's the owner to pain the apartment or clean the carpet. So I think, um ... as a city we need to help make people who do rent more aware of their rights, um, through the Human Rights Department possibly, um, but I totally This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 31 agree with a lot of the things that you said. I think Iowa City is a great city, but there's a lot of, um ... really run down (laughs) apartment buildings inside and outside, and that we could do a lot more to make our city... more... more beautiful, you know, planting trees, planting flowers (mumbled) even one flower pot can, you know, add a lot of, um ... a lot of, you know, comfort to people in the city to see beauty and not just run down places with overflowing garbages and things like that, so I just wanted to thank you for bringing this issue up cause what you said is very true. Thanks. Hayek: Thank you. Yes, ma'am! Rummey: I'm a journalist. We've been in print for 30 years on social systemic problems. Hayek: Could you give us your name first (both talking) Rummey: ...sociology (both talking) Hayek: Could you give us your name first, please? Rummey: My name is Jan Rummey. I am very real, and the U.S. government will tell you so. I used to work for the U.S. government. Uh... I am very, uh, concerned about Iowa City. And what I see every day. Where I am at, you have people with four- year degrees who are working for $7.50 an hour in food lines, who should be working for NASA. I have people working full time who can't pay their rent in the cheapest place in this town. How can they ever buy a house, uh, with this going on? This is a very serious problem! And it ... and the phrase that's going around ... that everybody's saying in our group, who are journalists and who are writers, it just isn't necessary to be doing this to people. And uh... in a $17 trillion economy, where every man, woman, and child could have a million dollars apiece and have to see stuff like this. I lived in three third -world countries, uh, during the Vietnam era, where old people had no retirement and they just died in the street and the rats ate 'em. People had no workmen's comp. They had no health care. If you didn't have any money, you died. If you went outside the family, you were dead. They had no welfare. There was nothing. Third -world ... we're getting to be a third -world country. And uh... uh, if you're going to deal with housing, you're going to have to start dealing with the economy. And uh, local economics and uh... the disparity of 647 to 1 now. An executive will get $647,000 for every $1,000 a worker will get. When I was around in 1948, it was 47 to 1. And you had the doctor living with the garbage man in the same neighborhood. Hayek: Ma'am, if I could interrupt and ... and ask, do you have a comment on the housing code itself? That's what we're voting on. Rummey: Well, uh, I want to say one more thing. We have been to town to town to town on city hall meetings and we don't go to 'em anymore and I want to tell ya why. Because the city hall has their agenda and then you end up with the one ax issue This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 32 grinders at the end, toward nothing ever gets resolved. What we had in print 30 years ago could be printed again today because nobody has ever addressed any of the major issues in 30 years on housing and going to the economy because of this, you know. Hayek: Ma'am (both talking) please let me interrupt again. At every Council meeting we have a community comment section at the front end of the meeting and you're welcome to speak for five minutes about any issue of concern (both talking) Rummey: Well last time you turned the microphone off and we (mumbled) microphone off, so we're not gonna do that here. Hayek: Well I... Rummey: I pay your welfare check ... with my tax money and you have to listen to the community here. I'll sit down and behave myself and do the same, please. Hayek: Thank you for your comments. Anyone else? Further Council discussion? Roll call, please. Passes 7-0. Voparil: Motion to accept correspondence. Botchway: So moved. Throgmorton: Second. Hayek: Moved by Botchway, seconded by Throgmorton. Discussion? All those in favor say aye. Opposed say nay. Motion carries 7-0. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 33 ITEM 17. CITY COUNCIL INFORMATION Hayek: We'll start down with you, Kingsley. Botchway: Nothing. Throgmorton: I wish Mary Gravitt had not left because several days ago I was lucky enough to be able to ride the Towncrest bus with Mary and it was a fascinating and enlightening experience to see her get on the bus, greet the driver who knew her very well, greet seven or eight passengers in the front — all of whom knew her very well — and she said, 'I've got a City Council Person here with me (laughs)' and you know, she introduced me to people and then there was all this conversation among Mary, uh, me and the other people who were present on the bus, and as we were driving along, riding along in this bus, she pointed out particular locations where bus shelters are needed, where sidewalks need to be extended, where curbs need to be cut, and so on, and I don't know that she's right in every instance, but I can tell you, she knew ... the particulars of that route. And ... and the same's true with regard to the Mall line which she told us about tonight. And in, I don't know, social theory, you would appreciate this maybe, there's a term called 'ground truth.' So she was 'ground truthing' the claims that she has presented to us before. So ... I'm guessing City staff have ridden with her before. If not, I ... I think that'd be a really good thing to do. And ... and see if there, if they agree about particular locations for shelters, etc. Anyhow, thank you, Mary! Mims: Nope! Dickens: Just like to thank Doug Alberhasky and all the, uh, volunteers for this weekend's, uh, Brew Fest. I know Kingsley was there and he was quite an award winner in the games, I understand. Uh, over 5,000 people, I believe, that attended this weekend. So it was a really fun event and tomorrow night the Chicago Cubs start the fantasy, so we gotta hope they win tomorrow night! (laughter) Throgmorton: They're going to win the World Series this year, you know (several talking) Dickens: It was supposed to be Houston and the Cubs in "Back to the Future," so we're ready! Payne: Um, I just want to mention, uh, piggyback on what Matt just talked about for all of the openings on the commissions. Since Kingsley didn't bring it up — he usually does — but I would urge anyone and everyone to go onto the web site, the City's web site, and look at those commission vacancies and um, apply for a ... an open position! Dobyns: A community member, uh, asked Michelle Payne and myself yesterday, um, regarding some concerns that when Hancher opens the City's construction, the This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 34 portion of the Gateway project that will be affecting Park Road and the Park Road bridge will, um, hinder, um, what everybody's looking forward to is the grand opening of Hancher. After verification with City staff, um, I can say that, um, the portion of the Gateway project that will be working on Park Road will be completed by that time. So it'll actually be better than it is now, and it'll be fully optimized and ready for the new crowd. Also, Park Road bridge will exist as it currently does. It will not be, um, narrowed or constrained in any way. The new bridge will probably be at some level of construction next to it, but the old Park Road bridge will be fully operational, as it is now, when Hancher opens. Hayek: (several talking) ...too many frogs in my throat, uh... This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015. Page 35 ITEM 18. REPORT ON ITEMS FROM CITY STAFF a) City Manager Hayek: City Manager? Markus: Uh, just a couple things. We're in the process of, uh, doing interviews for our new Park Director and we're also in the process of doing interviews for our Water Superintendent. I think it's kind of interesting to note that when I started almost five years ago, one of the things the City Council, uh, asked me to do was work on a succession plan, and so we went back and checked some numbers, and I think ... of the management, um, supervisory, department head staff ..(coughing, difficult to hear speaker) we were right about 57% turnover (several responding) that period of time. So your... estimates of the potential turnover were pretty ... pretty accurate in terms of that succession, and I would report that I think that the people we're bringing in are, uh, certainly up to the task of...of delivering services. So I feel quite good about the turnover that's occurred and the, uh, people we're bringing on to deliver the services for the City. This represents only a reasonably accurate transcription of the Iowa City City Council regular formal meeting of October 6, 2015.