HomeMy WebLinkAbout2020-10-06 OrdinanceItem Number: 11.
October 6, 2020
O rd inan ce amendin g Title 3, “City F inan ces, Taxation an d F ees”, Chap ter 4,
“Sched u l e of F ees, Rates, Charg es, Bon d s, F ines an d Pen alties”, Section 3,
entitl ed “P otab l e Water Use an d S ervice,” of th e City Cod e, to in crease or
ch ange water service ch arges an d fees in Iowa city, Iowa an d amendin g Titl e
16, entitl ed “P u b l ic Works”, Ch ap ter 3A, entitl ed “G en eral P rovisions”,
Sections 5, 6 and 7, en titled “Estab l ish ing City Utility Accounts; Deposits
Required”, “Bil l ing and Collection P roced u res; Del in q u en t Accounts” an d
“Discon tin u ation and Restoration of Service” to make d el in quen t accou n t
collection fees an d procedures more eq u itable an d j u st. (S econ d
Consid eration )
Prepared B y:Dennis Bockenstedt, F inance Director
R eviewed B y:A shley Monroe, Assistant C ity Manager
F iscal I mpact:E stimated impact is a water revenue reduction of $150,000
R ecommendations:S taff: A pproval
Commission: N/A
Attachments:Notice of P ublic Hearing
Rate Ordinance
Executive S ummary:
T he proposed water rate ordinance is intended to provide for updates that pertain to the C ity’s
initiatives in racial and social equity. T he ordinance changes include an elimination of the shutof f
carding notice and the associated fee, a reduction of the service reconnection f ee, and a 5%
increase in the late fees to provide f or the cost to send customers a delinquency letter and the
ability to communicate notices to customers electronically via e-mail and text messaging.
B ackground / Analysis:
T he City’s utility bill includes charges for the Water, Wastewater, Stormwater, and Refuse
services. Utility bill payment enforcement is done by the Water Division through the shutof f of
water service.
T he City’s current utility bill collection for non-payment is a f ive-step process. T he steps are:
1. On the customer’s bill, a 5% late fee is shown under the current balance due.
2. I f the customer’s bill remains unpaid 22 days after the bill date, the delinquency charge is
added to the bill total and a past due letter is sent to the customer, showing amounts due and the
C ity’s shut off procedures.
3. I f the customer’s bill remains unpaid after 37 days, a Water Division employee places notice on
the customer’s door of the impending water shut of f and a shutoff carding f ee (currently $47.25) is
incurred.
4. I f the bill remains unpaid after 47 days, a Water D ivision employee turns of f the water.
5. W hen the utility bill and all f ees have been paid, a Water Division employee turns on the water
and a reconnection fee (currently $47.25) is charged.
As of J uly 1, the fees associated with this process include a 5% late f ee (averages about $4.70),
a $47.25 shutoff carding fee, and a $47.25 service reconnection f ee. A customer that has their
water turned off is charged a total of $99.20 in fees. T he average utility bill is $94.00.
T he f ollowing changes to the utility bill collection process are proposed:
1. Eliminate the past due letter after 22 days, because the past due letter inf ormation is already on
the utility bill.
2. Replace the shutof f carding notice with a mailed letter and electronic communication via e-mail
and text if the customer’s inf ormation is available.
W ith approval of the R esolution, the City’s utility bill collection f or non-payment will remain a f ive-
step process but will be modif ied to the f ollowing:
1. The utility bill will show the delinquency charge (late fee).
2. A f ter 22 days unpaid, the late f ee will be applied to the bill.
3. A fter 37 days, a shutof f notice letter will be mailed to the customer and
if contact information is available, the customer will also be electronically notified.
4. I f the bill remains unpaid after 47 days, a Water D ivision employee turns of f the water.
5. W hen the utility bill and all f ees have been paid, a Water Division employee turns on the water
and a reconnection fee is charged.
T he proposed f ee changes are as follows:
T he late f ee will be raised f rom 5% to 10%. T his increase will cover the cost of the mailed shutof f
notice letter and the cost of providing electronic communication. T his is consistent with what other
jurisdictions in J ohnson C ounty are charging.
T he $47.25 shutoff carding fee will be eliminated, and the service reconnection fee will be
lowered from $47.25 to $45.00. The af ter-hours reconnection fee will remain at $88.20.
A customer that has their water turned off would be charged $54.40, a total reduction of $44.80.
A customer that receives all notices up to the shutof f point would be charged $9.40. T his total is
due to the 5% increase in late f ee and removal of the shutof f carding fee, a final reduction of
$42.55. T he shutof f carding fee has historically received the most f eedback from low income
individuals, and its elimination will reduce the financial burden on these customers.
T he proposed changes are consistent with the racial equity tool kit findings that the F inance
D epartment conducted in 2017 which identified that utility shut offs occurred more of ten in minority
communities. A t that time, the department expanded the promotion and availability of the L ow-
I ncome Discount P rogram and a donation program was established to help fund the discount
program expansion. The L ow-I ncome D iscount Program provides a 60% decrease in water,
wastewater, and stormwater charges; and a 75% decrease in ref use charges. T he current
proposed changes will provide additional relief to these impacted residents.
T he elimination of the carding f ee will reduce Water F und revenue by an estimated $150,000
annually.
AT TAC HM E NT S:
D escription
Ordinance
Prepared by: Dennis BOckenstedt, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5053
ORDINANCE NO.
Ordinance amending Title 3, "City Finances, Taxation and Fees",
Chapter 4, "Schedule of Fees, Rates, Charges, Bonds, Fines and
Penalties", Section 3, entitled "Potable Water Use and Service," of
the City Code, to increase or change water service charges and
fees in Iowa city, Iowa and amending Title 16, entitled "Public
Works", Chapter 3A, entitled "General Provisions", Sections 5, 6
and 7, entitled "Establishing City Utility Accounts; Deposits
Required", "Billing and Collection Procedures; Delinquent Accounts"
and "Discontinuation and Restoration of Service' to make
delinquent account collection fees and procedures more equitable
and just.
WHEREAS, pursuant to Chapter 384, Code of Iowa (2013), the City of Iowa City is authorized to establish
and provide for the collection of rates to pay for the City's utility systems, including the City's water supply and
treatment system; and
WHEREAS, the City's financial policies dictate that the Water fund shall be self-supporting; and
WHEREAS, the City must endeavor to bill and collect utility fees and charges to support the operation,
maintenance, and replacement of the Citys utility systems and infrastructure; and
WHEREAS, the City seeks to amend and modernize its delinquent account collection fees and procedures to
make them more equitable and just; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
SECTION I. AMENDMENT. Title 3, Chapter 4, Section 3, entitled "Potable Water Use and Service," of the
City Code is hereby amended by adding the underlined text and deleting the strike -through text in the
sections identified below as follows:
3-43: POTABLE WATER USE AND SERVICE: C
Description Of Fee, Charge, Amount Of Fee, Charge,
Bond, Fine Or Penalty Bond, Fine Or Penalty
Deposit and delinquency fee for combined city water and/or sanitary
sewer and/or solid waste collection accounts (see section 16-3A-5
of this code):
105 percent delinquency charge on current billed portion of the outstanding
amount on combined water and/or sanitary sewer and/or solid waste account that
is not paid within 22 days of billing date.
Service Fees
Ordinance No.
Page 2
Posting fee for shutting off water in collection procedure
Reconnection fee for discontinuation of service
$47.25; ear+be Not done
waived one in after normal
thA lifet roe of the working
aGGGLIR $0.00 hours
45.00 1$88.20
SECTION II. AMENDMENT. Title 16, Chapter 3A, entitled "General Provisions," of the City Code is hereby
amended by adding the underlined text and deleting the strike -through text as follows:
16-3A-5: ESTABLISHING CITY UTILITY ACCOUNTS; DEPOSITS REQUIRED:
A. Upon establishing a water service account, a wastewater account and/or a residential solid waste collection
account with the City, the person establishing an account, with the exception of a residential owner account, shall be
required to make a combined account deposit for City services. The amount of this deposit shall be as provided in
the schedule of fees, title 3, chapter 4 of this Code. Persons who have previously been required to post a delinquent
deposit shall be required to make a combined and/or delinquent deposit before City services are provided.
B. Required deposits shall be held until service is terminated and the account closed. At such time, the amount of
the deposit shall be credited to the account or refunded to the account holder if the account is closed and paid in full.
C. Upon reestablishing one or more accounts as set forth in subsection A of this section, the person establishing
the accounts) shall be required to make an account deposit for City services. The amount of the deposit shall be as
established in the schedule of fees, title 3, chapter 4 of this Code. Persons who have previously been required to
post a delinquent deposit shall be required to make a combined and/or delinquent deposit before City services are
provided.
D. A delinquency deposit maybe charged upon repeated delinquency of any water, wastewater or solid waste
service account. Upon the occurrence of a third sesenddelinquency charge within the last three hundred sixty five
(365) day period, the account holder shall be required to make a combined deposit equal to the average two (2)
month billing for the account holder's account. The average two (2) month billing shall be based upon the actual
billings during the prior twelve (12) month billing periods. If the account holder already has a combined deposit on
file with the City, that deposit amount will proportionally reduce the delinquency deposit. The delinquency deposit
can be waived if the account holder enrolls in SurePay.
E. Delinquency deposits shall be held either three hundred sixty five (365) days after the deposit was paid or
three hundred sixty five (365) days after the last occurrence of a delinquent account charge, whichever occurs last.
At such time, the deposit shall be credited to the utility account. If service is terminated within three hundred sixty five
(365) days of the delinquent account charge, the deposit shall be credited to the account or refunded if the account
is paid in full.
F. Prior to establishing an industrial water service account, the person establishing the account shall first execute
a written agreement with the Department of Public Works. Such accounts shall be governed by chapter 3. article F,
"Wastewater Treatment Works User Charges", of this title. (Ord. 18-4745, 4-17-2018, eff. 7-1-2018)
16-3A-6: BILLING AND COLLECTION PROCEDURES; DELINQUENT ACCOUNTS:
A. Delinquency:
1. Billings for services provided to properties for anyone service period, as defined by regulations established
by the city and approved by resolution of the city council, shall be submitted to account holders within thirty (30)
calendar days after the end of the billing period and shall be due and payable within fifteen (15) calendar days after
the date of the billing. (1994 Code)
Service Fee
Fee During
After Normal
Normal Working
Working
Hours
Hours'
$47.25; ear+be Not done
waived one in after normal
thA lifet roe of the working
aGGGLIR $0.00 hours
45.00 1$88.20
SECTION II. AMENDMENT. Title 16, Chapter 3A, entitled "General Provisions," of the City Code is hereby
amended by adding the underlined text and deleting the strike -through text as follows:
16-3A-5: ESTABLISHING CITY UTILITY ACCOUNTS; DEPOSITS REQUIRED:
A. Upon establishing a water service account, a wastewater account and/or a residential solid waste collection
account with the City, the person establishing an account, with the exception of a residential owner account, shall be
required to make a combined account deposit for City services. The amount of this deposit shall be as provided in
the schedule of fees, title 3, chapter 4 of this Code. Persons who have previously been required to post a delinquent
deposit shall be required to make a combined and/or delinquent deposit before City services are provided.
B. Required deposits shall be held until service is terminated and the account closed. At such time, the amount of
the deposit shall be credited to the account or refunded to the account holder if the account is closed and paid in full.
C. Upon reestablishing one or more accounts as set forth in subsection A of this section, the person establishing
the accounts) shall be required to make an account deposit for City services. The amount of the deposit shall be as
established in the schedule of fees, title 3, chapter 4 of this Code. Persons who have previously been required to
post a delinquent deposit shall be required to make a combined and/or delinquent deposit before City services are
provided.
D. A delinquency deposit maybe charged upon repeated delinquency of any water, wastewater or solid waste
service account. Upon the occurrence of a third sesenddelinquency charge within the last three hundred sixty five
(365) day period, the account holder shall be required to make a combined deposit equal to the average two (2)
month billing for the account holder's account. The average two (2) month billing shall be based upon the actual
billings during the prior twelve (12) month billing periods. If the account holder already has a combined deposit on
file with the City, that deposit amount will proportionally reduce the delinquency deposit. The delinquency deposit
can be waived if the account holder enrolls in SurePay.
E. Delinquency deposits shall be held either three hundred sixty five (365) days after the deposit was paid or
three hundred sixty five (365) days after the last occurrence of a delinquent account charge, whichever occurs last.
At such time, the deposit shall be credited to the utility account. If service is terminated within three hundred sixty five
(365) days of the delinquent account charge, the deposit shall be credited to the account or refunded if the account
is paid in full.
F. Prior to establishing an industrial water service account, the person establishing the account shall first execute
a written agreement with the Department of Public Works. Such accounts shall be governed by chapter 3. article F,
"Wastewater Treatment Works User Charges", of this title. (Ord. 18-4745, 4-17-2018, eff. 7-1-2018)
16-3A-6: BILLING AND COLLECTION PROCEDURES; DELINQUENT ACCOUNTS:
A. Delinquency:
1. Billings for services provided to properties for anyone service period, as defined by regulations established
by the city and approved by resolution of the city council, shall be submitted to account holders within thirty (30)
calendar days after the end of the billing period and shall be due and payable within fifteen (15) calendar days after
the date of the billing. (1994 Code)
Ordinance No.
Page 3
2. If payment in full is not received within twenty two (22) days of the billing date, the accounts) shall be
deemed delinquent and a delinquency charge will be assessed as provided in title 3, chapter 4 of this code. For
locations which receive city water, wastewater and/or solid waste services, the account holders shall be billed and
collected as a single account, and in the event of a delinquency in payment as to either water, wastewater or solid
waste services, subsequent payments shall be credited first to the delinquent billings and then to the current billing.
(Ord. 97-3820, 12-16-1997)
3. If any check or automatic bank debit for payment of utility services is returned, for any reason, to the city from
the financial institution from which it is written, a service fee shall be assessed as provided in title 3, chapter 4 of this
code.
B. Imposition Of Lien For Unpaid Services
1. Except as provided in subsection B2 of this section, rates and charges for city utilities not paid as provided by
city ordinance are a lien upon the property or premises served, upon certification by the city finance director or
designee to the county treasurer that the rates and charges are due. Said lien shall be collected in the same manner
as a property tax, as provided by state law. At least thirty f301 ten-04}days prior to such certification, the city finance
director, or designee, shall give written notice of intent to certify lien by ordinary mail to the account holder of the
delinquent account and, if the account holder is a tenant, to the property owner of record. (Ord. 01-3962, 4-3-2001)
2. For residential rental properties where the charges for service are separately metered and paid directly by
the tenant and when the utility account is in the current tenant's name, liens of the property shall be pursuant to state
code. (Ord.12-4505,12-4-2012)
16-3A-7: DISCONTINUANCE AND RESTORATION OF SERVICE:
A. Notice:
1. In the event an account holder fails to pay the full amount of the billing for city utility services within twenty
two (22) calendar days after the billing date, service may be discontinued but only after giving the account holder
written notice and an opportunity for a hearing before the director of finance or designee(s). The written notice shall
be mailed by first class mail to the affected account holder not less than seven 7 twenty ) -calendar days
("cure period") in advance of discontinuance, and shall state: a) the reason for discontinuance of service; b) the
specific account(s) and service location(s) for which payment is delinquent; and c) the amount(s) delinquent,
including fees and penalties. (Ord. 97-3769, 1-14-1997)
2. In addftmen tn the i.A.-Fitlen nnt no mailed to the A#9GIad RAGAI-IRt holder, the city shall Part a VAttGA RetiGe at
AAP#wAA IAAAtiAA AF IAGations, and suGh RGtiGG shall be plaGed GA the property not less than five (5) Galendar days4n
3. When an account holder's account for water, wastewater and/or solid waste service at a specific location is
delinquent, the city may discontinue water service at that location by shutting off the water service valve at the stop
box if available or by removal of the account holder's water meter. The city shall have unrestricted access to such
valves and water meters for the purposes specified herein regardless of whether those water devices are located in
city right of way, city easement or on the property of the account holder, and consent shall be deemed given for such
access when service is requested and when an account holder receives city utility services.
4. Notwithstanding the above, when an individual account holder is billed under two (2) or more accounts for
water, wastewater and/or solid waste service at two (2) or more separate locations, a delinquency in payment for
service provided at any one or more of the locations shall be cause for the city to discontinue service at all service
locations for that account holder regardless of whether the accounts for service at those other locations are
delinquent.
B. Restoration Of Service; Fees And Charges
1. Upon payment of all due and payable water, wastewater and solid waste service charges, including fees and
penalties, the city shall cause the account holder's water service to be restored.
Rewine OR tn hA res;toFed she'! fiFst pay the post ng fee foF shuteM, as set fGFth On title 3, GhafAeF 4 G( this Gede.
Services to rental properties shall be resumed notwithstanding the failure of the persons formerly living there or
occupying the premises to have paid all fees and charges, provided all such persons previously occupying the
premises have vacated the premises as verified, in writing, by the rental property owner or manager.
2. All payments required to restore the account holder's service shall be in the form of cash, money order or a
cashier's check, or credit card.
Ordinance No.
Page 4
3. It shall be prohibited for any person to restore or attempt to restore water, wastewater or solid waste service
at a location where those services have been discontinued unless and until the city authorizes such restoration.
4. The director of finance is authorized to adopt and promulgate billing and collection procedures for water,
wastewater and solid waste service accounts, including records. Such procedures shall be approved by the city
manager and city attorney. (1994 Code)
SECTION III. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this
Ordinance are hereby repealed.
SECTION IV. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any
section, provision or part thereof not adjudged invalid or unconstitutional.
SECTION V. EFFECTIVE DATE. This Ordinance shall be in effect November 1, 2020
Passed and approved this day of 2020.
MAYOR
ATTEST:
CITY CLERK
Ap roved by
�.GW
'City Attorneys Office — 09/08/2020
Ordinance No.
Page
It was moved by and seconded by _
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Bergus
Mims
Salih
Taylor
Teague
Thomas
Weiner
First Consideration 09/15/2020
Vote for passage:
AYES: Taylor, Teague, Thomas, Weiner, Bergus, Mims.
NAYS: Salih ABSENT: None.
Second Consideration 10/06/2020
Vote for passage:
AYES: Mims, Taylor, Teague, Thomas, Weiner, Bergus.
NAYS: Salih ABSENT: None.
Date published
that the
Item Number : 12.
October 6, 2020
O rd inan ce Amendin g Title 5, E n titl ed "Busin ess and Licen se Reg u l ation s,"
Ch apter 2, En titl ed “Taxicab s,” to Decrease th e Nu mb er of Required Veh icl es
from F ou r to Two. (F irst Consid eration )
Prepared B y:S usan D ulek, Ass't. C ity A ttorney
R eviewed B y:Geof f F ruin, City Manager
K ellie K. F ruehling, C ity C lerk
F iscal I mpact:none
R ecommendations:S taff: No R ecommendation
Commission: N/A
Attachments:Memo from C ity Clerk
Ordinance
Executive S ummary:
T his ordinance decreases the number of vehicles a taxicab company is required to have f rom four
to two. O ne of the taxicab companies requested that the minimum number be decreased to two,
and C ity C ouncil discussed the request at its S eptember 15 work session. F ollowing the
discussion, C ouncil directed staff to place an ordinance on the agenda decreasing the minimum
number of vehicles to two.
T he history of why the C ode requires that taxicab companies have at least f our vehicles is set
forth in the memo f rom the C ity C lerk.
B ackground / Analysis:
AT TAC HM E NT S:
D escription
Memo from the City Clerk [previously distributed in the 9/10 I nformation P acket, I P 10]
Ordinance
DATE: September 9, 2020
TO: Mayor and City Council
FROM: Kellie Fruehling, City Clerk
RE: Taxicab Regulations
Introduction:
City Council has received correspondence requesting the minimum number of vehicles required
to qualify as a taxicab business be lowered to two vehicles. The following memo provides a
history on the number of vehicles required to establish a taxicab business.
History/Background:
2006
In a work session on Sept. 5, proposed changes to the taxicab ordinance were discussed,
including establishing a minimum of 3 vehicles for each company. Also discussed was whether
to require the company to be in operation 24/7 and whether to require the business to have an
office.
At that time there were 16 companies and approximately one-half had only 1 or 2 vehicles. One
word used in the discussion was “legitimate.” In other words, was a one-vehicle operation a
“legitimate” operation if the driver uses a cell phone for dispatching and only operates on games
days and weekend nights. One Council member said that if you call yourself a cab company
then you need to be available to the public. Additionally, staff was having difficulties reaching
the businesses to investigate complaints.
Ordinance No. 06-4243 established a minimum of 2 taxicabs, but provisions requiring an office
and 24/7 operation were not adopted. However, the hours of operation needed to be listed on
the rate card.
2010
In June staff met with taxicab companies to discuss a variety of potential changes to the taxicab
ordinance. At that time there were 17 licensed taxicab businesses, 7 of which had 2 vehicles
and 2 had 3 vehicles. (By way of comparison, Des Moines and Cedar Rapids each had 4
taxicab companies.)
At the July 12 work session, taxicab discussion included whether to increase the number of
vehicles to 4 and whether to require an office. Again, the discussion on these issues centered
on whether it was a “legitimate service” if there were only 2 vehicles and no office. Increasing
the number and requiring an office to dispatch was seen as a way for the City to ensure that the
business had resources to maintain the vehicles and that dispatching was not occurring while
driving.
Ordinance No. 10-4405 required a minimum of 4 taxicabs, an office and 24/7 operation were
also adopted.
September 21, 2020
Taxicab Regulations
Page 2
2012
Ordinance No. 12-4510 addressed the issue of taxicab business forming in August only to
operate on football weekends and then cease operations. This ordinance provided that all
taxicab business applications had to be on file by May 1 and that licenses would run from June
1 to the following May 31. This was a change to help ensure that businesses would be
legitimate and ongoing throughout the year.
2014
Uber approached City staff urging Code amendments to allow “transportation network
companies” (“TNCs”) to operate.
2015
Ordinance No. 15-4608 was passed which allowed TNCs to operate in the City subject to many
of the same requirements as a traditional taxicab company.
2016
On March 23 Council passed first consideration of Ordinance No. 16-4663 (aka, the Uber
ordinance) largely drafted by Uber that treated TNCs differently than traditional taxicab
companies. In May the legislature passed a bill preempting local regulation of TNCs (Chapter
321N of the Iowa Code) effective January 1, 2017. (The Uber ordinance was subsequently
repealed). In light of the influx of TNCs into the local transportation business, the Uber
ordinance, and the pending TNC preemption bill, staff met with taxicab companies on March 31
and April 28 to discuss ways to level the playing field, so to speak.
Ordinance No. 16-4665 eliminated the requirement for having a business office and the
requirement for 24/7 hours of operation given that TNCs do not have a local office. The
requirement the company had to have a telephone number that will be answered 24/7 for
purposes of the police investigating was not eliminated. (There had been two recent sexual
assault investigations regarding assaults by cab drivers.)
2020
Currently there are two licensed taxicab companies, Yellow Cab and Big Ten Taxicab.
Pursuant to the Mayor’s Proclamation of Civil Emergency signed March 18, 2020, the Mayor by
order temporarily suspended until September 30 the requirement that a taxicab business have 4
insured vehicles.
Summary:
In years past, Council was concerned about making sure that the businesses were legitimate
operations (as opposed to a “pop up” business for football weekends) and had the resources to
maintain their fleet. As outlined above, steps taken included: 1) requiring a minimum of 2 and
then 4 vehicles; 2) an application for the annual license to be filed by May 1; 3) an office in Iowa
City or Coralville; and 4) a 24/7 operation. With the advent of TNCs, the latter two requirements
were eliminated.
Prepared by: Susan Dulek, Ass't. City Attorney, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5030
ORDINANCE NO.
Ordinance Amending Title 5, Entitled "Business and License
Regulations," Chapter 2, Entitled "Taxicabs," to Decrease the Number
of Required Vehicles from Four to Two.
Whereas, since 2010 City Council has enacted ordinances to make sure that taxicab
businesses are legitimate ongoing operations, meaning that they are not a "pop up" business
operating only during the weekends of home football games of the University of Iowa and had
the resources to maintain their fleet;
Whereas, one such ordinance was Ordinance No. 10-4405 that requires taxicab businesses
to have a minimum of four vehicles;
Whereas, the advent of transportation network companies has changed the nature of
providing rides to the public and decreased the number of licensed taxicab businesses from
over ten to two at the present time;
Whereas, it is unlikely that lowering the minimum number of vehicles to two will result in a
surge in businesses that may not be legitimate operations because of the requirements that all
taxicab businesses must apply for the annual license by May 1 and all licenses run from June 1
to May 31; and
Whereas, it is in the best interest of the city to adopt this ordinance.
Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa:
Section I. Amendments.
1. Title 5, entitled "Business and License Regulations," Chapter 2, entitled "Taxicabs," Section
5, entitled "Vehicle Requirements," Subsection D is amended by adding the underlined text and
deleting strike -through text as follows:
Except for pedicabs and horsedrawn vehicles, each taxicab business shall provide a minimum
of fetes (4) two (2) taxicabs, and one taxicab shall be in operation at all times. At least feur (4)
two 2 taxicabs shall be insured and shall have a decal at all times.
Section II. Repealer. All ordinances and parts of ordinances in conflict with the provision of
this Ordinance are hereby repealed.
Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to
be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a
whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval and
publication, as provided by law.
Passed and approved this day of 2020.
Mayo
Ap v by /
City Attorney's Office —10/0/01/2020
Attest:
City Clerk
Ia.
City Clerk
A ro ed by /
City Attorney's Office — 10/01 /2020
It was moved by and seconded by _
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Bergus
Mims
Salih
Taylor
Teague
Thomas
Weiner
First Consideration 10/06/2020
Vote for passage:
AYES: Taylor, Teague, Thomas, Weiner, Bergus, Mims, Salih.
NAYS: None. ABSENT: None.
Second Consideration _
Vote for passage:
Date published
fy
that the
Item Number : 13.
October 6, 2020
O rd inan ce amendin g Title 17, en titl ed “Buil d ing and Hou sing,” Chap ter 5,
entitl ed “Hou sin g Code,” to provid e ren tal permit req u iremen ts for short-term
rental p rop erties. (F irst Con sid eration)
Prepared B y:S usan D ulek, Ass't. C ity A ttorney
R eviewed B y:Geof f F ruin, City Manager
Tracy Hightshoe, ND S D irector
S tan L averman, S r. Housing I nspector
F iscal I mpact:None.
R ecommendations:S taff: A pproval
Commission: N/A
Attachments:ordinance
Executive S ummary:
T his ordinance establishes a permit f or short-term rentals that mirrors the health and safety
requirements and the property maintenance and nuisance standards f or typical rental properties in
I owa C ity except that no fee is charged.
B ackground / Analysis:
I n J une the I owa legislature passed HF 2541 that limits the ability of local governments to
regulate short-term rentals, such as A irbnb. However, the bill allows f or cities and counties to
impose health and safety regulations and enforce property maintenance and nuisance standards if
short-term rentals are treated the same as similar properties and no f ees are charged.
A short-term rental is defined under state law as a single-f amily home or a unit in a duplex or multi-
family building, including owner-occupied units, that are leased f or a fee of 30 days or less. Under
the ordinance, owners wanting to offer their properties f or lease of 30 days or less will be required
to apply for a short-term rental permit.
T he application and approval process is the same as that of a typical rental property except that
no f ees are assessed. T he unit will need to be inspected and meet the requirements of S ection
17-5-19 of the Housing C ode, the health and saf ety requirements and the property maintenance
and nuisance standards that apply to all rental properties.
AT TAC HM E NT S:
D escription
ordinance
i3.
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5030
ORDINANCE NO.
Ordinance amending Title 17, entitled "Building and Housing," Chapter
5, entitled "Housing Code," to provide rental permit requirements for
short-term rental properties.
Whereas, HF 2541 passed in June 2020 established the parameters for local government
regulation of short-term rental properties, such as Airbnb;
Whereas, under HF 2541 local governments may enforce health and safety requirements as
well as property maintenance and nuisance standards if applied in the same manner as other
properties with the exception that no fee may be charged;
Whereas, the health and safety requirements and the property maintenance and nuisance
standards as required by Section 17-5-16 for rental properties should also apply to short-term
rental properties; and
Whereas, it is in the City's best interest to adopt this ordinance.
Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa:
Section I. Amendments.
1. Title 17, entitled "Building and Housing,
entitled, "Certificate of Structure Compliance
following underlined text as new Subsection F,
" Chapter 5, entitled "Housing Code," Section 16,
and Rental Permit," is amended by adding the
entitled "Short -Term Rentals":
house or dwelling unit: any unit or group of units in a condominium, cooperative, or
timeshare: or an owner -occupied residential home that is offered for a fee of thirty (30) days
or less. Short-term rental property does not include a unit that is used for any retail,
restaurant, banquet space, event center, or other similar use.
3. All provisions in Sections 17-5-16A, B, C, and D of this chapter apply to short-term rental
permits except that no application or inspection fee may be charged.
4. The owner or operator shall provide a "designated agent" as set forth in Section 17-5-15
of this chapter.
Section II. Repealer. All ordinances and parts of ordinances in conflict with the provision of
this Ordinance are hereby repealed.
Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to
be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a
whole or any section, provision or part thereof not adjudged invalid or unconstitutional.
Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval and
publication, as provided by law.
Passed and approved this day of 2020.
Mayor
Ordinance No.
Page
It was moved by and seconded by _
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Bergus
Mims
Salih
Taylor
Teague
Thomas
Weiner
First Consideration 10/06/2020
Vote for passage:
AYES: Teague, Thomas, Weiner, Bergus, Mims, Salih, Taylor.
NAYS: None. ABSENT: None.
Second Consideration _
Vote for passage:
Date published
that the