HomeMy WebLinkAbout2007-10-15 Transcription
October 15, 2007
City Council Work Session
Page 1
October 15,2007
City Council Work Session
6:00 P.M.
Council Present:
Bailey, Champion, Correia, Elliott, O'Donnell, Vanderhoef, Wilbtim
Staff:
Karr, Dilkes, Helling, Trueblood, Mejia, O'Malley
Others Present:
Volland, UISG Rep; Bob Beezat, PAR Group; Michael Tharp, Airport;
Howard Horan, Airport Commission; Tom Schnell, U of!
PAR Executive Search Update:
Wilburn! Okay, let's ga ahead and get started. Urn, PAR executive search update. l
dan't if, Sylvia, ifyau want ta came farward, ar Bob, ifyau both want ta came
farward, ar. . . uh, Bab, yau can't say anything until yau get up to the micraphane
or it doesn't exist. That's all right.
Bailey/ Which sametimes is gaad, actually!
Wilburn! Well, first af all, thanks again for, uh, far applying ta be our cansultant, and
we're glad to have yau abaard, and uh, I knaw you've been busy already, so I'll
just let you ga to it.
Beezat/ Okay, thank yau, Mayar, and thank yau far selecting us, and uh, I've enjayed my
day here in Iawa City, and uh, meeting all afyau. I've had a chance naw to meet
with all afthe, uh, Cauncil Members and the Mayar, and uh, and a representative
at large. I dan't think yau're farmally a Cauncil Member, but Abbie, and abaut
,
faur of the department heads sa far. Sa tamarraw marning I'll cantinue an,uh,
talking with them, and urn, what I wanted ta dOl is repart on a couple afthings ta
yau tonight. Uh, in talking with all af yau, and primarily just kind af abaut the
process as it moves farward at this point, what, uh, what I was kind afhearing
from yau as a graup, and uh, I will say naw is prabably understandable,
everybody's not in unanimaus agreement with everything, but that's the way.. .uh,
but I wauld say there was certainly cammanality as far as issues and. . . that
canfront the cammunity, and that you want ta address, and I'll wait ta tlushthat
aut till I hear more peaple, and really the very impartant part that I heard from all
ofyau is that yau dOl want same gaad citizen input inta the process and a brpad
base af citizen input inta the process, and that's the main thing I want ta talk with
yau abaut this evening, at least is ta tell yau kind afwhat I've heard and what I
wauld suggest we do as we ga farward here in that part af the process. Sa, the
first thing, and Sylvia has a list afnames or organizations. I'll wait till she passes
that out. Now that yau've all at least had a chance ta laak at the range afnqmes
and arganizatians, urn, certainly there was cammanality amang all af yau t~at yau
want citizen input and to, uh, maybe three different categaries as this pracess
begins and maves farward. One was, uh, ta invite individual, either as
representatives af graups ar peaple that have been specified by same afthe
Cauncil Members ta participate in small graup meetings, which we were la~king
ta, uh, canduct an Navember ih and 8th, and thase wauld be meetings that Wauld
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 2
have probably invite about seven people to each meeting, and they would bt;l
scheduled for about an hour, and I would meet with those people in a small group,
and basically talk about some of the same things I talked about with you tod~y-
what do they see as qualifications, background, experience that they would ~ike to
see in the Manager candidates that you'll be considering, and also what do trey
see as the important issues in the community and challenges and opportunitiies,
because in many ways as I discussed with you, what you're looking to do ini the
future has a big impact on the.. .on the skill sets and the background and
experience that people bring, uh, and.. .to help you address those. So the Ollie part
would be, uh, is to conduct some meetings on November ih and 8th, and tha~ list
that you have in front of you, uh, some are specific names that people mentibned,
and others are organizations, and uh, what we would suggest is that the City: send
an invitation to these people to attend a session on either November ih or 8t~,
would come from the City, and there would be a letter, I would suggest frofl!1 the
Mayor, just inviting them to attend. I would suggest, in just talking to Sylvi:a and
having done this with other communities, that, uh, since we have...I think tl~ere's
probably 40 or so people on that list, or groups, somewhere in that neighbor}1ood.
Um, that each one be assigned a certain time, and if they're able to get out hiere in
the next couple of days, it would give people about three weeks notice, and can
certainly indicate in the letter if people have a problem with the time, they can,
uh, contact Sylvia and we could try and accommodate them. I want to keep: it to
seven, because if somebody can't make it, we can fit them into another one.' I
don't want to get a group over ten, because then within an hour or hour and
fifteen minutes that we would schedule, that would give enough time for
everybody to have their input and not feel rushed or.. .so there'd be flexibili~y, but
at least get it started and get it lined up as to invite people to a specific, uh, ~orum
or input session. The other element, as far as starting the process, would be to
have an open forum to invite anybody in the community, including employ~es, to
come to a session and give their comments to me, about what they think we'
should be aware of. Again, in terms of background experience, qualificatio:p.s of
candidates, but also what they see as.. .as important issues in the community that,
uh, a new manager would be assisting you as the elected officials, as well a~
people in the community to address, and I suggested, uh, that we have two ~f
those sessions, just because ofpeople's time schedules, uh, and we would db
something, say 4:30 in the afternoon, from 4:30 to 6:00 in a place where pe~ple
could come and uh, there'd be a microphone set up and people could addre* to
me any of their concerns, or things that they think we should be aware of, a~d
then we would do another session from 7:00 to 8:30. So depending on people's
work schedules and that, hopefully there'd be a little bit of flexibility there.
(coughing) Excuse me.
Vanderhoef/ On the same day?
Beezat/ On the same day, yes. Uh, and, uh, that... that's kind of the upfront, and as! I've
talked to you, and I've made my presentation as well as, uh, today... this is ~he
part where most communities do seek input, if they are going to seek input, !uh,
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 3
and as I think I made my presentation, uh, probably about half of he commupities
we work with do invite participation or.. . and others do it as a city council a1l1d
because that's what they're elected to do and they feel that's their, they will do it
that way, but obviously from, uh, speaking with all of you, you want broader
input and so that's.. .uh, how I would recommend getting both specific groups
invited, as well as being open to the public, at large. I think would get a lot pf
input, and help us understand. The purpose of that is two fold at these meet~ngs-
is for certainly to develop some of the criteria, and uh, but for really to give us a
good understanding of what you're looking for, and what your community feels is
important as you move forward. Uh, because that helps us in recruiting people
that have the background and experience that fits for your community. It helps us
evaluate people as they apply to see whether or not they've got the right, uh; set of
skills, or the best set of skills at least, to bring to this, and so that's pretty much,
uh, that aspect of it. After that we would then get into the actual recruitment
process, placing ads, contacting people, uh, inviting applicants, screening
applicants, and that's usually about a 60-day process. So you would be looking to
have those public input meetings November ih and sth. We would start the:
formal, real recruiting process then around the 15th or 16th of November, whatever
that.. . and then about 60 days from then, uh, we would have a group of, uh, kind
of a short list of candidates, and usually in our process, that comes down to ~bout
10 or 12 people that we think, uh, are worthy of interview consideration, uh, and
best meet what you're looking for, and then we would meet with you as a
Council, uh, in January, towards the end of January, to uh, review those people,
and out of that, in most communities, they'll select five or six to come in ana
bring in for interview. Uh, and then out of that, uh, there was discussion byiall of
you about what role would the public play at that point, as well, in the proceiss.
Urn, and so in addition to getting input at the beginning, uh, you all wanted,iUh,
input from the public at that point. I guess from listening to everybody, my
suggestion to you would be to, urn, based on all the individual and group
representatives that you would be inviting to meetings on November 7th and; st\
that you invite those same people to a. . . what I would call a meet and greet .
session with your final three candidates, final two or three candidates. Urn,
during the interview process, and we would have to work out the details an~ the
date on that, but when we've done this with other communities, and I would just
say, uh, again, though many communities seek input upfront, uh, most
communities do not have citizen involvement in this selection process. But ithat is
something that you feel very strongly about so we will incorporate that into ~he
process, and if you desire, my suggestion would be that it be more of a mee~ and
greet where the candidates, the final two or three candidates, uh, would ma~e a
brief presentation to all the folks that, uh, are there, uh, and then basically "-1ould
then meet, mingle with the crowd for a couple of hours, it usually takes, uh, !there
would be some tables set around, as well, for anybody who attended that se~sion.
After talking with the candidates, uh, either individually or in small groups, ito
make some comments which would then be summarized and shared with the, uh,
with the Mayor and Council before they move forward and make a decision. Uh,
so that's what I would recommend to you as we go forward. You can set up the
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
timing of that later on as we get to the, uh, interview process itself. Urn, and, uh,
that's basically I think at this point what I would want to share with you. .
Page 4
Bailey/ I have a questions. Just about the public input.. . and the public forums. Ar~ there
other ways that you have gathered public input, such as a web based kind of
comment sort of thing, and would you recommend that, because urn, some ~eople
may have thoughts, but may not want to come to a forum, and I think, you kinow,
the more avenues we provide, the more input is possible, and we do have a wretty
accessible web site, if we wanted to do something web based, and also provlde a
contact number - not that I would want Sylvia's office inundated with calls,! but I
mean, if people are willing to take the time.
Beezat/ Yes, certainly.. . again, it's not typical. It may become more so as everybod~ gets
more and more familiar with the web and certainly a lot of people are, but ulI,
from a community standpoint, uh, what we've done in one community not t~at
long ago was to advertise both within the newspaper and on the web page, and
sometimes in other venues, lih, that there would be several days where people
could go to the web site, uh, there would probably be two or three questions! on
there, kind of similar to some of the things we talked about today, and uh, give
people the opportunity to, uh, submit their comments. Again, anybody in thie
community could do that. The one we did it with recently, uh, they had the!
system set up so they came directly to me, and uh, so there wasn't any filtering
from the, uh, city staff that anybody had a concern about that, so uh, it was a city
about this size, maybe a little larger. I think we got about ten or twelve.
Bailey/ So it wouldn't be overwhelming to you either. That would be a concern oOnine.
I mean, the web does...
Beezat/ It can! I guess, uh...
Correia! Have it be time limited, you have between this day and this day...
Bailey/ Sure! Are other people interested in providing that opportunity, as well?
Vanderhoef! I think it would be possible in this city, uh, I think they're technologicMly
inclined to.. .I mean out there.
Bailey/ And naturally I would expect that people would have to sign first and last n~mes,
you know, that we would use the typical correspondence policy, but Ijust tBink
that it would be (several talking at once). '
Champion! I don't think this town is any different than any other university town, dr any
other town there's a lot of public involvement, that if people want to be invqlved
they will, but I agree. . .
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 5
Bailey! Right, and well, just if you couldn't attend these because of other responsib~lities
in the community, and then it might also gamer some more input from younger
people.
Beezat! We can do that, and I'll work with...
Bailey! Okay, thank you.
Beezat! .. .to get that in, and.. . okay. Urn, any other questions or comments?
Champion! Well, Ijust wanted to ask because we haven't really talked about it. WillI you
be preparing a brochure, or will we have any input into that, or... what are Y4>ur
plans?
Beezat/ As far as, uh, the advertising the position - yes, we do a recruitment profilep uh,
we sent one to you I think when we, uh, initiated the process. So, uh, basedlon
my discussions today and tomorrow, I'll start it, but certainly not complete i~,
until we get the citizen input, but, uh, yes, that's a very key part. Uh, what ire
usually do with that is just draft it up in terms ofthe narrative content becau~e we
always add pictures and organization charts and city log and so on, but oncel we
finish those public input sessions, uh, say if we finished them on the 8th the {yay
we're talking about, I would have a draft of that back to you as the Council,uh,
and I would like to get it kind of turned around relatively quickly, uh, so thatt we
can then begin the process of recruiting. I would say most communities, and
probably 95% if not more, we just share it with all of you. If you have any
comments, questions, you like something you think I ought to add it, maybd I
missed something, just get in touch with me. It usually doesn't come up for!
formal vote in front of the Council, urn, and uh, I would suggest you go that way
just because it moves the process along. I think as you'll see, when we get to that
point in writing it, uh, there's usually a lot of commonality, but not unanimity,
which you would expect! This is America! This is.. .you have different ide~s, uh,
and so we don't put things into a profile, uh, talking about issues, challenge$, and
opportunities that everybody agrees, because first of all it wouldn't be true, and
nobody would expect it. But these are, part of what we're trying to convey to the
candidates is that these are the types of issues that the city is looking at, thde are
the kinds of things that the community is concerned about, these are the kinds of
things that you'll be working with your elected people and the people in the
community to solve, and uh, so, uh, it's more of a, kind of creating the univ~rse of
issues that people would be dealing with, or at least highlighting and making them
aware of it. So, uh, anyway, that would be that step in the process. We usually
print up, I would say about 350 of those. We would send a number of them: back
so each of you had them, certainly there'd be some available in the HR offi4e if
people want, but we will probably identify maybe 100 or so people that wele
aware of from our work in the field that we would send a letter of invitation, to,
along with the profile, inviting them to apply, or recommend people that w~uld
apply for the position, and we follow that up with people, with phone calls flor
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15,2007
City Council Work Session
Page 6
people that were particularly interested and emails.anduh.soandthen...th~t.s
why you need some time in there as well, from the time you're saying, 'okay this
is what we're looking for,' and you start getting the word out to people, uh,
because when you invite people to apply, they're usually not thinking about,
moving and that's a big step, and it's become a bigger step I think in the last five,
six years, uh, people are not as mobile for a lot of reasons these days, and ydu
need to have them have some time to think about it and talk to their families in
many cases, uh, so that would be that part of the process.
Wilbuml Any other questions?
O'Donne11l Is this the final draft (unable to hear)
Beezat/ That's the list that I got. Everybody I talked to, I asked, and I jotted down tjhe
names. Some were duplicates and.. . from different people. Some were just'
suggested by one person. I think from a timing standpoint, uh, I know Sylv~a had
sent out an email wanting something, I think, by noon today. I guess just fOf
getting invitations out, if people have any other ones, maybe they could contact
myself. I'll be here till noon tomorrow, or Sylvia by noon, so we could kinq of
get that process started, in order to give people some good lead time. I know
she'd like to get those out before the week.
Wilbuml I think the other thing that we can do, uh, beyond that we can make sure, you
know, newspaper, PSA, that, uh, or even specific phone call invitation to anyone
else that we might think of to come to one of the public sessions, as well.
O'Donne11l Only one I'd like to add, I'd like to add the Student Body President to this.
(several talking)
Vanderhoef/ I'd like to.. . add a couple of our large, uh, employers, ACT, Dick Ferg~son,
and Ron Reed from Mercy Hospital.
Bailey/ And perhaps, when you're looking at the University ofIowa, we should looik at
somebody who's been here a little big longer, as well as President Mason, and I
don't know who that, I mean. . .
Champion! Send an invitation to her office, and ask her to send a representative.
Bailey/ Well, I would like her to participate, urn, but I think that we should also get
somebody else who's been here a little bit longer.
Volland/ Like Phil Jones.
Vanderhoef/ That would be a good one.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 7
Wilburn! The only other thing, and I would suggest that we just invite this category of
folks to one of the open sessions so we're not loading up the group meetings.
There's a couple former Council Members on here, but...
Bailey/ I think we should make sure that all former Council Members are on the mailing
list. Just as we've done with other events recently.
Wilburn! Right, right.
Champion! Oh, you mean at the meet and greet? Or the general? (several talking)
Wilburn! Okay.
Dilkes/ Ijust have one question about the recruitment profile. It's my understanding,
Bob, you're going to prepare that and send it to the Council Members
individually, and they will comment individually. So, ifthat's...and there won't
be any formal meeting for you to approve it or informal meeting to approve jt. So
if that's the case, we're talking about very insignificant changes to the recruhment
profile. I mean, not ones that would require you all to talk about it, and conte to
some kind of consensus. I just. . .okay, is that the understanding, because yqu're
not going to be able to deal with them calling you and wanting a variety of
changes that are substantive, and you may get conflicting messages from them.
Beezat/ I would say in most cases, you know, I might have misunderstood some faatual
things, urn, but I think this is a recruiting tool and the things I usually hear back
from Council Members are not of substantive, and we're not usually going to
change things because we're working for you. I've listened to you, I've list~ned
to the public, and I'm going to go out and represent you, unless I send some~hing
to you, and you, just take the criteria of education. What I heard certain from
everybody today was a degree, minimum of Bachelor's Degree, and uh, a
preference for a Master's Degree, uh, I guess ifit becomes a really big issu~ about
that where people, where somebody wants a Ph.D. or something like that, maybe
that's something that would have to come back, but again, it's really sometliing
to.. .as you've seen our profile, it talks about the community and what, where
you're at that way. When it comes to the issues and challenges, we're not saying,
and you're not saying, here's what you're going to do. You're saying these are
the things that the city's dealing with, and when it comes to the criteria and
background, uh, again, just off the top of my head listening to you, you certainly
want people with budget experience, with.. .people with labor relations and if-IR
experience, people with economic development experience. There's a lot of kind
of basic, typical things, uh, that you're looking for, and I think when you
listen.. .when I listen to you about the management style and personal traits,
there's certainly a lot of similarity there and uh, so I wouldn't expect, and usually
don't hear any major things. I guess ifit gets to that point, we can always, you
know, delay it a little bit and (unable to hear). Okay.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 8
Elliott! I presume with your experience you will include a significant emphasis on
employment opportunities. 'Cause you rarely recruit a single individual. There's
a trailing spouse that they need to understand the career opportunities that are
available here. Good.
Beezat/ And one nice thing, you have, from everybody I've listened to today, we have
excellent schools, and I can tell you that's a.. .that's a big criteria for a lot of
people. We do searches in some parts of the country, the school's aren't.. .they're
trashy, but they certainly aren't here. So I know that'll be a plus, uh, and spouses'
employment is important, as well.
Wilburn! All right.
Beezat/ Okay. Thank you very much, and appreciate the opportunity to work with you
and look forward to continuing to do so. Thank you.
Wilburn! Well, we've got one minute until the, uh, Executive Session.
Elliott/ We can handle the Council appointments (several talking)
Wilburn! But we probably should hold off on the Airport, uh...
Vanderhoef/ That'll give me a second to look at what was in the.. . (several talking).
Wilburn! I would say the work session is temporarily adjourned until we, recessed.. .there
we go, recess. Well, we weren't really adjourned.
(BREAK FOR EXECUTIVE SESSION)
Wilburn! We're going to wait until Dee gets back for the Airport hangar.
Airport Han2ar Expansion Proposal:
Wilburn! You need to talk into the microphone, and then, or hand them to someone else
to pass out while you speak into the microphone. Thank you.
Tharp/ Good evening. Quick handout, because I don't believe you guys got all the packet
that I had submitted. Urn, what you're getting is a quick memo describing the
background of the project, urn, we have a research group from the University of
Iowa that inhabits Building H at the Airport, and recently they've approached me
for, with their request to expand the building so they can fit a couple of things
they've got in the works, at uh, the Center for Computer-Aided Design downtown
and for room to grow. So, urn, with that, we did some, had some conversation,
and uh working with the Airport Commission came to a basic, general agreement
on figuring out a way to fund, uh, fund the expansion, and uh, that's what we're
here to talk about tonight. Urn, basically we're looking at roughly a estimated
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 9
$350,000 project that, uh, I believe the Airport Commission would seek to have
funded through either the current General Obligation Bonds or General Levy.
We've got some discussion that we've been having with the City Manager for
that, and uh, Finance. Idea would be, we would pro-rate the cost into an increased
rent for the University over a twenty year period. The University would enter into
lease term for a five-year lease with three five-year options to potentially cover
that twenty-year impact, and urn, the growth of the building would be about 25%.
We would add roughly about.. .do my math here, about 1,400 square foot of
office space and 1,800 square space of hangar space for their use.
Elliott/ Did you increase, indicate that the increase in rental payments would cover the
payment for interest on this loan?
Tharp/ Correct.
Elliott! Okay.
Correia! If it remained rented for those twenty years?
Tharp/ If it's rented for the twenty years, everything gets covered and everything's paid
back, based on the amounts needed and an interest rate, whatever the rates happen
to be at the moment, urn, there's a couple of clauses that we're working with in
the Letter of Intent, where, urn, the initial lease term actually has what we called,
termed a "risk mitigation" amount, and essentially that's a, uh, excess amount that
builds up over, over the life of that first term, so that if the University chooses not
to renew, uh, we have a few months to find a new tenant. Urn, based on the
Airport needs, the space needs, and the market at the Airport for hangar space, we
feel that we would not have any issues finding a new tenant, should the University
not renew.
Vanderhoef/ Isn't this a little longer loan time period than what we typically do for
$350,000?
Helling! Yes, it is.
Vanderhoef/ Is there any other way that we can shorten that up?
Helling/ Well, what we've talked about in the financing is that if we did this through an
internal loan, rather than through debt, then at whatever point in time, and
hopefully long before that twenty years, we will have enough revenue from the
Airport, or from the Aviation Commerce Park properties to pay this off. Uh, if we
do it internally, we can pay it off like you would paying off early a mortgage loan
or whatever, and we wouldn't continue to have the debt after, uh, the debt service
for bonds after it's paid offby the Airport, but yes, twenty years is, is normally
about twice as long as we go for short-term. Or this type ofproject. (several
talking)
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 10
Bailey/ What's the current debt load of the Airport with the City? We keep hearing
that.. .
Helling/ Urn, I don't have that. We can certainly get that for you tomorrow.
Bailey/ I just want to know what we're adding to.. . (unable to hear person in audience)
Wilburn! You'll have to talk into the microphone, Howard.
Bailey/ Ballpark is...
Horan! Just to generalize, I think it's about $2.1 million, and.. . and this is for the
development cost for the north commercial area. And I'm sure that you've noted
that we've sold one lot, so the ball is rolling.
Correia! Has there been any talk about trying to do something like what's done at the
Oakdale Research Park, where private interests would build, and we would do a
land lease or something?
Tharp/ We did have that discussion, and given that it's the University, you know, we, as
far as the Airport Commission went, we felt that having a private investor was
more risky as far as going through them, versus going directly through the
University, so we opted for a direct lease with the University.
Bailey/ Why not direct purchase with the University?
Correia! Like similar to how the University is putting the building for their rowing club
on City park land, so they're, you know, we're not building that building.
They're building the building and we're (unable to hear).
Tharp/ I think the issue there comes with, uh, the City owns the hangar so an expansion
to the hangar becomes ultimately City property, urn.. .private ownership of
hangars on the Airport, while it's been talked about, hasn't really been discussed
as far as a strategic plan for.. . for uh this project in particular.
Vanderhoef/ And that takes FAA approval.
Bailey/ Yeah, what would be the barriers or the concerns about that? I mean, just.. .I'm
not that familiar with the rules about Airport property. I mean, would that be
allowed, private hangar ownership?
Tharp/ Potentially it can be allowed, urn, and the FAA really doesn't have a lot of.. .of
direction as far as private ownership. You just have to abide by your obligations
as far as the Airport, in maintaining the airport per grant specifications. Urn...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 11
Bailey/ So they could own the hangar; we would own the land, continue to...or the
Airport would continue to own the land.
Tharp/ The main thing that would come up with a, urn, private ownership would be
possibly the tax liabilities. Now in the case of the University, there are none, but
an individual person or business that wanted to own a hangar, would most likely
have tax liability on that.
Bailey/ Right.
Champion! I don't think I'm interested in private hangar ownership.
Bailey/ Well, I just have concern that we're building a hanger and entering into a debt
situation, and it's a long, I mean, it's twenty years, and...
O'Donnell/ Though we've been told there's enough people to rent these hangars, if
something like that does happen, and I assume we're full now with all the
hangars?
Tharp/ We are.
O'Donnell/ And a waiting list?
Tharp/ Waiting list currently is roughly about twenty people. Our estimates are about
roughly a quarter of them at any given time would have a plane and be able to
accept a hangar if offered.
O'Donnell/ Okay.
Helling! Just for clarification, if.. .if we would fund this through debt, we would not issue
that debt for twenty years. We would issue it with our regular bonds, what ten,
twelve.. .ten to twelve years. And then that would have to be worked into the
formula for the payback.
Vanderhoef/ What are you missing there? I'm reading...
Bailey/ .. .plopped down a multiple-page memo and trying to absorb it is a little bit
daunting, just because what I'm seeing is an investment, and I guess my question
is, when do, where's the payback? I mean, it's a huge investment. Where do you,
where do you see break-even payback? I mean, where, I mean.. .it's a number.
Tharp/ I think Tom Schnell can answer a few of those questions. He's the Director of the
Research Lab. So...
Bailey/ Great.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 12
Schnelll So, my name is Tom Schnell, and I'm a faculty member in Industrial
Engineering. I also run the lab, and some of you have been out there. We operate
a performance laboratory, uh, we bring in federal funds, mostly, and some
industry funds, roughly $800,000 a year, which pretty much translates into
student, you know, tuition types support and scholarship, so as you have seen,
we're obviously an outfit that thrives on academic pursuit, and the payback comes
in some amount, you know, in the way we educate the workforce in this
laboratory that can be useful to local industry. Urn, also we have to be on the
Airport because we operate a flight-test airplane, and of course that needs access
to the taxiway and runway structure, and a roof over its wings. Urn, we are
currently about 14 to 15 full time equivalents. Within the construct of the
University, we're really a microcosm, almost like a small business within a larger
community, urn, because we are hosted in the Center for Computer-Aided Design
and we're a laboratory of the Center for Computer-Aided Design, and as such,
we're sort of self-contained, and what I'm trying to do is consolidate my
operation, rather than having it split across campus. Bring it together in one place
and also a strategic plan that we have it to basically double in. . .in terms of
brought in funding by 2010. These are goals, uh, you know, obviously we're
striving, and I've put every waking minute of my life into the pursuit of bringing
in funding into this research laboratory. We have high visibility because of the
fact that we're allowed to be at the Airport, urn, we've had, you know, members
of Congress. We've had Governors. We've had all sorts of individuals, including
three shows at Discovery Channel. So, I think the benefit to this community is
certainly, I'm biased of course, but I believe we do good work down there, and
we, uh, you know, hopefully.. . and I know actually we do some very unique
things that have put Iowa City on the map worldwide. I mean, we do things that
no one else does, such as airborne neuromonitoring. So we measure brain activity
in flight. To my knowledge, there's no group that is doing this to the extent we
are.
Champion! I have no brain activity in flight. (laughter) But I appreciate what you're
doing. It certainly is, uh, on the high edge of what should be going on here, and I
appreciate what you're doing, and I support this totally.
O'Donnell/ I think it's a great idea.
Elliott! Dale, would you again tell us how this financing would take place. I believe you
said it would be, uh, an internal loan, paid back, but then at some time you would
sell a bond to cover the remainder or. . .
Helling/ We can do it one of two ways. We can either fund it with an internal loan,
without selling debt, and pay it back through one of our internal reserve funds, or
we can fund it short-term, and then roll it into the, uh, the debt that we'll issue in
the spring time. I was just suggesting, and I'm not sure exactly what would be the
best way to do it, but we're looking at maybe doing it internally so if the cash
comes early, it can be paid back, retired, and there's no outstanding debt.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 13
Elliott/ Thank you.
Bailey/ If the cash comes back early, and how does that happen? I guess that's...
Helling! Sale of properties.
Bailey/ Sale of the north, okay. So essentially though the rent, the monthly rent on this
building that we're investing in, just covers the debt service?
Schnell/ There's also cost, what is it called? CPI adjustments, as these options are being
taken, so you can do better than just pay for it, I think, over. . .
Bailey/ But essentially it covers the debt to the City.
Horan! No, the new rent is the debt service principle and interest, plus what they had been
paying in the past.
Bailey/ And that goes to cover additional debt service that the Airport has...
Horan! Well, that's.. .we consider that part of our operating funds.
Bailey/ Right, okay, but Ijust wanted to get a sense of why this is good for the Airport,
what you're going by expanding this, and how.. .how...
Horan! If I can give you my answer on that.
Bailey/ That's, yeah.
Horan! For all the time that I've been with the Airport, this is by far the most substantial
thing that we've been involved with.
Bailey/ Sure.
Horan! Urn, we have a connection to the University, and this man is doing unique and
special research that isn't done any place else. He stands alone.
Bailey/ I'm not questioning the quality of the research. I'm just questioning the financial
arrangement.
Horan! Sure.
Bailey/ I'm just trying to get.. .my head wrapped around that.
Horan! Well, principle and interest plus another $1,000 or so.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 14
Bailey/ Okay. So, and basically what you're saying is, if you don't build this hangar, urn,
you can't command that contract, and. . .
Horan! Well, sadly enough if.. .if we don't build this hangar, then it becomes Tom's
problem, and that would be...
Bailey/ Right, but you're not commanding this type of rent. You're not attracting this
type of, urn, activity to the Airport. This opens up great potential to the
north.. .okay. I just want to understand the financial...I know that the research is
fascinating. I just want to understand the financial arrangements, because that's
what we're responsible for, I think.
Vanderhoef/ In the long term, we end up owning the building, even though it's being paid
off in increments by...
Bailey/ Right, by... through lease, yeah.
Vanderhoef/ So we're getting an improvement to the.. . to the Airport.
Bailey/ And it's good if we can lease it, but it's just an improvement if it's a building that
sits empty. If nobody has interest in it. . .
Vanderhoef/ But it's still configured, from what I've seen and what I see on the
schematic, that it's a potential hangar, ifnothing else.
Schnell/ Absolutely!
Bailey/ Right.
Vanderhoef/ So if the University, uh, chooses to move out of there, we certainly have a
leasable building.
Bailey/ Right. That's what I'm just trying to understand, is why the investment now, and
what added value does it bring, I mean, the research is great. I'm glad to see it
happening. I'm glad to see it happening on Airport land, but I think it's the
financial arrangements that we should concern ourselves with. Since I've been on
Council, there's been a long discussion about City responsibility and involvement,
financial involvement with the Airport, and how will the Airport begin to pay its
own way more and more, and that's what I'm trying to get.. .how does that move
the Airport towards that.
Vanderhoef/ And this is like we've done any previous hangar, in that the rents have been
used to retire the debt.
Bailey/ Well, I'm trying to get a sense of, yeah, how quickly that can happen with such a
substantial investment. That's all I'm trying to do is...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 15
Wilburn! Amy?
Correia! Well, if we. . .so if this is something that we're interested in moving forward, and
it's going to be, we're going to use debt or bonds, does that need to 'amend our
current CIP? I mean, I would (several talking) well, we talked about either or,
that's.. .
Wilburn! That's the question that needs to be answered.
Correia! So are we talking about rolling it into our bond, or are we talking about an
internal loan? I mean, I would be more interested in talking about the internal
loans, I mean, we didn't, this wasn't part of our CIP originally, so would we...I
don't know the process in terms of the public process. Urn, but because we...it
seems to me that our goal has been to try and continue to reduce the debt to the
Airport. I'd rather not add an additional, if we have another option for an internal
loan.
Vanderhoef/ I don't disagree with that, but financing it internally is...is fine so it doesn't
go out there with our debt levy.
Correia! Right, that's right. Yep, and that's what...
Vanderhoef/ .. . and that's fine, and if they can pay it off in the typical fashion often to
twelve years, that's even better.
Helling/ Well, an internal loan would be structured over twenty years, but.. . anticipating
that it would be paid off much quicker than that. The main thing we're concerned
about is that the income covers the debt, whether it's an internal loan or
what.. .um, the other question you had about amending the CIP. No matter where
the money comes from, Capital Improvement Program would be amended. There
is debt capacity because of those other projects, but if we do it internally, we
don't have to be concerned about that, but the CIP itself would be amended to
include this project, because it was not in there.
Wilburn! Just the financing would be internal. (several talking) My preference would be
the internal loan.
Bailey/ Is this space increase contingent upon a lease agreement with the University? I
see it's contingent upon our financing, but is it also contingent upon moving
ahead with that lease, and I know that depends upon the Board of Regents and
those sorts of things.
Tharp/ Yes, it would be. Urn, the path of construction basically would be, urn, if the
Council agrees to pursue this, we would hire the architects, go through the
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 16
bidding process, and using the figures from the bids, we would finalize a lease
agreement with the University before any work is proceeded on that...
Bailey/ And I see, I mean, it's a five-year lease. Was there any talk of a longer lease? Is
that a possibility?
Schnelll No.. ..yes, we did look at it, and it was a long process. By the way, what we've
constructed here in terms of background for you is, it took like half a year, so it's
a long process.
Bailey/ I believe you!
Schnell/ The University doesn't entertain long leases, and we've gone down that road,
and we've backtracked to where we are. This is basically the framework that it
would have to be done with.
Correia! Okay, that's generally the longest lease the University.. .okay.
Schnell/ Yeah, yeah, they... when I started talking about a twenty-year lease, they....
Bailey/ Fell off their chairs?
Elliott/I'll be very supportive ofthis. This is not only investment in the Airport, it's a
means of showing our continued support and encouragement for the research
project that, uh, that goes on there, and I think is valuable to the City ofIowa
City, and certainly 1'11 be supportive, because it appears that, uh, it's.. .the money
from leases, even if something were to happen to the research project, there is
plenty of waiting list of people who would make use of that additional space.
Vanderhoef/ I have one more question, just out of curiosity, because I jumped to
economic development in this, uh, whole process, and what do you see as
potential for spin-off business that might come from your research?
Schnell/ Well, we've spun off one company out of there. It's called Advanced
Engineering Incorporated. Right now I can't say that it took off very much yet,
you know, we're working on that. Urn, there's intellectual property that has been
spun into that company that's called Synthetic Vision. Those are systems that
give pilots essentially a clear view of the world, even if you can't see out the
windshield. Other technologies are related to the neuromonitoring that's going
on, that the training world is picking up on this big time. You know, where you
can monitor people's cognitive states as they do flying tasks, and so that
technology has been transferred into this company, as well. So at this potential
of, you know, economic development is quite substantial. Matter of fact, we did
win Inventor of the Year award with, it was the Iowa Technology Association, I
think, it was in 07. So we're working on it. I can't say that we've brought in
millions and millions, but we're starting small. We've brought in STTR, that's a
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 17
small business technology transfer research agreement with the Navy that's a
phase one, and we hope to go to phase two and then possibly towards a
procurement program. So, it could, you know, relatively soon become a viable
platform to commercialize intellectual property that we produce.
Bailey/ And so that Airport location is likely, as things spin off and need their own space,
is that a likely expansion area? I mean, I'm assuming that's what you thought
about, other. . .
Schnell/ We haven't given that much thought. The plans that you see there will
accommodate our lab.
Bailey/ Right.
Schnell/ The University Lab, not the spin off market.
Bailey/ And that's what I'm saying, we've got land down there. Would that make sense
for the...
Schnell/ We certainly would like to be approximate to the research operation, as opposed
to clear across town, because the driving across town part is what we try and cut
down anyway by consolidating everything down there, but right now we're just
solely talking about the, uh, the University part of this, not the company or
business development aspect. I see the Airport as the area where I would like to
grow.
Bailey/ And your research is...is grant funded?
Schnell/ Yes, yeah. Industry, government.
Champion! It won't make a different in my opinion or my decision, but can you just tell
me your educational background?
Schnell/ Urn, double EE as an Electrical Engineer, and on the graduate...I got a Master's
in, uh, Industrial Engineering and a Ph.D. in Industrial Engineering, specialized in
human factors. So I basically design human machine interface systems, and of
course, because of my love for flying, pretty quick to start honing in on airplane,
human machine interfaces. So.. .that's what I do.
Wilburn! I think that one thing that the Council is trying to convey, uh, this agreement
aside, uh, is that there's interest in having, uh, business develop here in the
community, and.. . and take advantage of the technology.. .whether it's spin-off as
a result of your work with NASA, or whatever. . .
Schnell/ We do everything in our power to do that, because that benefits us too. I mean,
that is the common goal, and maybe.. . maybe I ought to, you know, talk to this
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Wark Session
Page 18
group or people from this group some other time about economic development
and things we could...
Bailey/ Yeah, talking to. . .
Wilburn! But we can't get into a lot of conversation about that tonight.
Bailey/ Right, but I think that that would be a good. . .
Wilburn! .. .we're just planting the seed.
Schnell/ No, I totally.. .I'm for that.
Wilburn! Okay.
Bailey/ Okay. Thanks for walking us through that.
Wilburn! Thank you.
Cash Balance Policies:
Wilburn! Dale. And Kevin, sorry.
Helling/ Pardon me?
Wilburn! And Kevin, sorry.
Helling/ Kevin's here. He's at the other microphone. Uh, way back in January, early
February, I think you, urn, decided that prior to putting together the budget this
year that you wanted to talk about our cash balance policy. Uh, most particularly
the General Fund balance. You received a memo, uh, from the Management
Analyst that goes over some figures. I hope you had a chance to look at that. I'm
just going to give you one more piece of paper, and that's just a brief outline of
the use of.. .or what we use our fund balance for. So...
Elliott/ Thanks, Dale.
Wilburn! Thank you.
Helling/ Most of this you're familiar with, but just want to kind of give it to you as a
reminder of the kind of things we use our cash balance for. Uh, you've heard it
many times from, uh, somebody else who stood up here, saying we get paid twice
a year. Uh, in October and again in April, so we do need cash to meet our needs,
uh, all our operating needs from July through October, until we get paid in each
fiscal year. We also use it for cash flow for any kinds of situations where we have
money coming in. It could be grant money that we haven't received yet and
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 19
we're beginning a project, money that's committed, but we haven't actually
received the check, or as we were talking about earlier, if we're going to sell debt,
which we only sell usually once a year, and we need to do a project, we usually
sell debt in the spring for that fiscal year, so if we needed to do a project and we
need the cash to get started before we sell the debt, we go to the, uh, the fund
balance for that. The second category is emergencies, and I listed four things
under weather-related that I think you're all very familiar with. Urn, we had an
ice storm last year, tornado, urn, the spring before that, uh, the wind storm, in the
late 90's - the straight-line winds where we incurred a lot of damage, and then of
course, the flood of93, where we had significant expenditures to keep our water
plant operating and so forth. All those things take cash, and they take cash
immediately. We typically can recover some of that, but not all of it, and so we
need the cash up front to. . . the tornado for instance, immediately we began to
incur a lot of expenses in terms of overtime and bringing other people and
services in to help out in the community. Uh, that's cash that we need
immediately, so we go to our reserve for those kinds of things. We do have, and
I'm not sure what the amount is, uh, a risk, I guess a risk management account.
I'm not sure what it's called, but we do keep a fund for certain settlements we
may have to make in lawsuits and that, but we do self-insure and so up to a point
where we have a stop loss or an umbrella policy, we do have to, uh, pay
sometimes major claims or adjustments, and if we get ajudgrnent there, we would
go to our fund balance, again, to pay that off, and then it would probably show up
the following year in our torte liability levy to bring that fund back up. Also, just
as an example of something we have going on right now. We... and all
communities are doing this. We have a pandemic plan that we're putting into
effect, uh, there will be, if that should occur, we can only imagine what kind of
expenses we might incur up front for that. So those are just some examples of
emergency situations where we might be required to corne up with ready cash and
that's where we would go to get it. And then finally, situations of opportunity,
either land that comes available that we hadn't planned on purchasing, maybe it's
park land, maybe it's land for something else. Urn, examples of other than
parkland would have been the John Wilson Building, or the old bus depot. When
those carne available on the market and we didn't know that they were corning
available, we needed cash to purchase those. There could be other. ..there's a
variety of things that, one that we talked about earlier as well, urn, also for
unfunded projects, the joint communication center. You're familiar with that.
That's not something that was in the long-term CIP, but is something that we do
need, we are spending money already for, for the consultant and we'll be
spending money for the design. Before we can actually put the levy into effect, it
will fund that. In addition to that, there's also some.. .some discussion about any
up front money we can do to reduce that. . . that county-wide levy for the design,
and possibly the construction. Urn, Airport development - we just, what we just
talked about a minute ago is a perfect example of that. And then Fire Station #2,
which you'll recall started out to be a remodeling project and turned out to be a
reconstruction project. Urn, we have currently earmarked in our reserve $800,000
toward the cost of that, along with GO Debt and internal loan, so those are just
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Wark Session
Page 20
some of the things that. .. that, uh, maybe some of the bigger things that we have,
just example of what we use that for. Urn, the real issue is the part of our reserve
policies that talks about maintaining at least 15%, the equivalent of our budget
expenditures in our cash reserve, and with a target of30%. So that's where we've
been, and I think that was the real issue when we talked about it during the budget
process last year, was whether or not that 30% was needed, and whether, and how
it might affect our.. . our Triple-A bond rating if that were to be reduced. Urn, you
received in your packet a kind of a synopsis, both ofIowa and nation-wide, in
terms of.. .uh, cities that have Triple-A bonds and you can see where they are. I
believe it's a mean or median, it's a median, yeah. So, you can see there, I've
circled particularly the two areas - the one where the State of Iowa, and the one
from nationally, that talks about the cities with Triple-A ratings and where their...
where their reserves are in terms of percentage. We didn't provide, we don't have
the figures yet for the budget, and it was my understanding that you specifically
wanted to talk about this independent ofthat, and.. . and just make a decision at
this point in time on whether or not you wanted to keep that 30% policy, or
whether you felt like we could, you could reduce it. We do feel like there is
some, some margin you could reduce it, urn, but keeping in mind that there are a
number of factors that the rating agency's taking into account, and so there's no
magic number as far as what that percent should be. Uh, so we thought that
probably the best thing would be just to look and see what other folks are doing.
Elliott/ Dale, I got a question. For the, uh, for the four previous years that I have, 03 to
06, the, uh, year-end cash balance ranged from 35% to 43%, and that range is
from $13 million to almost $18 million. Steve at one time...l think last year, told
us the largest amount that was ever needed during those periods when you used
this for cash flow. Do you.. .do you recall that figure? Have you...it seemed to
me it was 6.5, 6.1 million, something like that.
Helling/ That. . . yeah, between 6 and 7 million.
Elliott! And so we're talking about, uh, sums ranging from 13 to 18 million, when the
largest amount we've ever needed was 6.1. That doesn't mean we should budget
for that, but it does seem to indicate that, uh, we have been running amounts far in
excess of what has been needed.
Vanderhoef/ Bob, when you say far in excess, it depends. It fluctuates, what things are
sitting in that reserve account that are "reserved," and that was what I was
interested in when you talked about in here, uh, the Library account for instance is
part of that reserve number. So, if you don't have a history of what. . .what is
fluctuating of reserved reserve account, uh, putting a dollar amount versus a
percent amount, and when we start looking at percent amount, and where we sit
with Triple-A bonding, and we see how few cities.. .there's three in Iowa, and
there's 101 nationally. So we're in pretty elite crowd, and that's the one piece
that it appears we've got some means in there at 29.04 and 29.39 that are the
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Wark Session
Page 21
means for these Triple-A bonds. I'm not interested in lowering anything that gets
us in trouble with.. .with the potential of having more reserved reserve account.
Elliott! Well, I'd be interested in what Kevin and Dale would say, but my understanding,
so long as the cash balance reserve is sufficient and even significant, uh, the
concern is that we adhere to our policies.
Vanderhoef/ I agree with that!
Elliott! And it's more.. .it's more adhering to our policies, than the amount or the
percentage that we have, and it just seems to me that if the largest was ever, we've
ever needed was 6.1, we have varied anywhere from twice to three-times that
amount, and there certainly appears to be something we can do about that,
particularly when we have significant needs elsewhere. So I don't want to
damage the Triple-A rating, but I think we can do this, and be very fiscally sound
and on solid footing.
Champion! I agree with you, Bob. (several talking) What are you going to use this
money for?
Vanderhoef/ The point is, until I see the figures of what is reserved within that account,
we can't make any kind of a judgment. I mean, we're flying blind with no
information.
Correia! No, are we.. .it's right here. The reserve funds 418,000 for the Library account,
Senior Center. . .
Vanderhoef/ For this year. But what I'm saying is when.. .Bob's looking at a history of
the past four years, for instance, and we don't have a history of what was reserved
out of that amount, so that we know what percent of the dollars that are in that
reserve are expendable for our emergencies.
Correia! Didn't we have that in our three-year...I didn't bring my budget with me, but it
looked to me like that the history of that designated, 'cause that comes, is about 2
million, about $2 million is designated within that, and then we get that $15
million working capital.
Vanderhoef/ Reserves.
Correia! No, well, working... that working capital amount is the amount after the reserved
amounts are taken off the table, we don't have access to that in any way, shape, or
form. Then we have the working capital. So those things are already taken out
when we're looking at them, and so that percent.. .this 15 million working capital
percent is 30%.
Helling/ Right.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Wark Session
Page 22
Correia! Of the. . .
Helling! Yeah, if you go to that second full paragraph on page 2. It spells that out.
Correia! Has those designated set-asides...
Vanderhoef/ At this point, yeah, the 15 is. . .
Correia! It's generally $2 million, historically. Kevin's nodding his head.
Champion! The other thing, though, urn, I'm not totally against lowering this percentage,
but I'm...I think what Bob is saying is he wants to use it for salaries, and I cannot
do that. Salaries are...
Elliott! I did not say that.
Champion! No, I asked you what you were planning on using this money for.
Elliott/ Well, I think we need a number of things. We need more police officers. We
need more firemen.
Champion! You're talking about salaries.
Elliott! I know.
Champion! You cannot use reserve monies for salaries. Salaries recur every year.
Elliott! Oh, I'm not saying this will do this, Connie. I'm just saying that right now, I
don't think it's fiscally responsible to use taxpayers' money to provide each year
anywhere from twice to three times the amount of money that we needed. As a
friend of mine who has philosophies significantly different than mine said, if
you're going to use it for a savings account, let me keep my tax money and let me
put it in my savings account. I think we have to be very careful when we're using
taxpayers' money, and I'm not saying whatever it's for. Ijust think that to collect
more than we need historically, year after year, is not a wise thing to do with
taxpayers' dollars.
Wilburn! I've got a question for Kevin. Urn, my understanding is, uh, the.. .that
percentage of, uh, of revenue is one factor that Moody's considers, but that, urn,
certainly what you, if you do, if you follow your own policies, uh, is also a
significant factor, but, urn, I thought I recalled, urn, I don't think you can ignore
the comparison to the, urn, either the mean or the median values of communities
our size that have Triple-A, and just in general to have a Triple-A rating, but, urn,
that comment in there on the bottom of page 2 of this section, uh, in 1 December
2006 special comment issued by Moody's, it was noted those national means and
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15,2007
City Council Work Session
Page 23
the mean for cities our size. Was there another comment in there by Moody's
about, uh, just the size of our particular reserve, or.. .I'm trying to remember the
conversation I had with Steve. Were there any comments about that in there...
O'Malley/ I think you were thinking of.. .Ross, I think you might be referring to Moody's
last opinion that we had on our bond sale in March. They.. .they spelled out I
think in the second or third paragraph that we had sufficient fund balance
reserves, and they recognize during the budget process that Council discussed the
funding of those reserves, and they said that. . .
Wilburn! What was the comment? Do you remember?
O'Malley/ It was something that... that we still had sufficient reserves and, uh, and pretty
much that the.. .the General Fund reserves are very significant factor, but there are
like ten factors, and one of the other significant factors is our willingness to pay
down our debt within ten years, and then the other factor that was considered
significant was adherence to our fiscal policies. But, uh...
Vanderhoef/ And didn't he note in that, that.. .that for a first time that our.. . our extended
budget for year two and year three. . .
O'Malley/ Right.
Vanderhoef/ ... drops us below the policy because of changes that Council made during
the budget session last year.
O'Malley/ Right, we no longer use the emergency levy like we were using it back in
2004 when the State cut off our, that million dollars in funds. So we enacted, we
were using that and that set up some reserves, sufficient reserves, to work our way
through that.. . even though we did have layoffs at that time. Urn, and now we're
back to, well, we've had in the last few years is very good interest income, uh,
significant interest income. I looked back four years ago, and we had 300,000 in
interest income, and last year we had a million six, uh, so that's directly tied to
your fund balance. So if you lower your fund balance, you won't get as much
interest income and obviously the Feds just, you know, took 50 basis points off,
so there's going to be some.. .we're at the will of the marketplace, I guess is what
I'm getting at, from that point of view. So what you does make a difference, and
whatever policy you have, we'll still have to run the numbers and see how it plays
out.
Correia! Kevin, can you explain this sentence, in the last paragraph on page 2 of the
memo, or Dale. The, under available cash balance, net of the aforementioned
restrictions and obligations the portion of general fund cash balance available for
appropriation expenditure is 2 million. Does that mean we're at 32%? Or, not
32%, I mean, you know, our...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Wark Session
Page 24
O'Malley/ That's additional, that's over and above our 15...our 30%, our 30% working
capital.
Correia! Okay. So, like, if the 15 million is the, our 30% optimal level, we have an
additional 2 million over. . .
O'Malley/ We earned more than, we earned more on our revenue...
Correia! . ..than we expected to earn...
O'Malley/ .. .right.
Correia! And how, what has been the historical, say the last...
O'Malley/ The last four years have been very good. The two years previous to that, we
were down around 25%, 26%, and then the two years previous to that, we were
back in the 35,36%. Uh, I don't know if you remember the interest rate factor in
the early part of this, uh, decade. It was pretty low, pretty miserable, and so as it
started going up, and our balances solidified, and we did some, uh, expenditure
cuts in 2003 and 2004, and that built the fund balance up, and we've been staying
at that level. And it's continued to grow as the interest rates went up.
Wilburn! Does Council have any other questions about the information that, uh, Dale put
together for us, or. . .
Bailey/ Dale, would you remind us what a Triple.. .what the difference a Triple-A bond
rating makes in borrowing money.
Helling/ What is the points, Kevin, about. . .
O'Malley/ Well, I think there was a...I looked at a memo back in 1997 and they
compared a Triple-A 20-year bond with a A-rated 20-year bond, and over that 20
years, it was like a million one in savings.
Wilburn! That was back in 97?
O'Malley/ That was back in 97.
Helling/ I thought we also had just a few years ago an estimate on how many points...
O'Malley/ Usually it runs about 20 to 35 basis points.
Correia! But again, the Triple-A rating isn't solely on this...
Bailey/ But I think that that's something...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15,2007
City Council Work Session
Page 25
Correia! Yeah, yeah.
Bailey/ I mean, I think.. .
O'Malley/ .. . factors. Our strong economy is very significant.
Elliott! The Triple-A does provide you with a greater availability of buyers of bonds, isn't
that correct?
O'Malley/ That's right. We have.. .we have great number of people participating...
Elliott! They see the Triple-A and they say, 'Yes! We want that!'
O'Malley/ Lot of people know Iowa City in the marketplace throughout the United
States.
Elliott/ Another question I had. It seems that each year that I've tracked, uh, four years
previously the.. .the amount that is in the cash balance at the end of the year, the
amount increases, and I take for the year 06, four years prior to that it was
estimated at 28.1. The next year the proposed was 36.1. Then it was budgeted at
38%, and it actually came out at 41 %. Is there something in the economy that
would cause.. . cause that over the past several years, that is.. .that our estimations
have increased.. .I'm sorry (noise on mic), but now is the economy such that
maybe those increases won't be there?
O'Malley/ Well, the fiscal 2006 had...had uh, one aberration, and that was timing
difference. We, uh, transferred.. .transferred some capital funds from GO Debt,
$460,000, that we didn't get paid out before June 30t\ and so that inflated that
41 %.. .to 41 %, and you're correct. It was the.. .the Federal Reserve kept raising
interest rates every quarter when they met for the last three years, and then they
kind of froze it for about a year, and now they went backward. Urn, I'm keeping
a very close tie, eye on valuations. Uh, I noticed on the coast they're dropping,
and that's.. .property tax valuations are important to our city because we mainly
rely on property tax, but we're still pretty solid, uh, as to at least to the end of
September, that we're going to have another good year. So that's how I look at it.
I keep looking at our we still, is the community still generating tax valuations, and
we still are.
Elliott! I guess my thought is, uh, rather than 15 to 30%, I see more 15 to 20%, and I
could certainly, uh, compromise at 15 to 25%. Uh, I don't know what you folks
when you're putting together a budget, does that make you really antsy, you
know. You people do the heavy lifting on this, but it seems 20 to 25% is...is still
a whale of a lot of money.
Helling! It's.. .it's a matter of how much you want in reserve for those unforeseen kind of
things that.. .that can come along. Urn, the $6.5 million roughly that was, that is
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Wark Session
Page 26
the high, that could be higher next year, uh, but certainly you want more than that
for other things, because all these things are going on at the same time, urn, but to
bring it down from 30%, uh, I think we just need to be very careful about how far
we go, if we want to protect the Triple-A rating, because of all of these other
factors, and uh, some of them may not be to our benefit. I mean, right now the
limitations that we have because of State law and the way we, our property tax
and reliance on caps and so forth, uh, that's not something that's probably
working in our favor right now. But, because they look at the total environment,
yeah, but at this point in time, we've not seen any red flags that I'm aware of
about that. . . Kevin, are you? Yeah.
Wilbuml Well, it's unlikely the rollback is going to go up.
Vanderhoef/ Rollbacks not going to go up. And interest rates are probably going to level,
or go lower. Uh, in this particular housing market. So.. .uh, that's where we've
been gaining dollars, through interest.
Champion! The mean for Triple-A rated cities with a population of 50,000 to 100,000 is
29.39.
Vanderhoef/ Uh-huh.
Champion! I mean, that's not 25.
Vanderhoef/ That's exactly right.
Champion! And urn, I think we're going to cost our taxpayers a lot more money (unable
to hear) save us a lot of money.
Vanderhoef/ I would much rather. . .
O'Donnell/ .. .willing to reduce it, is if we didn't affect the Triple-A bond rating, and I
don't think that's possible.
Elliott! Well, I think what happened last year when we went below the 30% would
probably have more to do with it than.. .than if, I don't know. I shouldn't say
that, because I'm totally ignorant of it, but I would think that if we are going to go
under the 30% then we should change our policy. And if we, and if we are going
to keep it at 30, then I think we should stay at 30 or above. And we played games
with that last year. And 1. . .
Vanderhoef/ ... years 2 and 3. . .
Elliott! I would like to see it go to 25% myself. I think history has shown that 25% would
be ample.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 27
Vanderhoef/ I can't support that, uh, it's too risky, and I'm not willing to risk that kind
of.. .uh...
Correia! .. . all of our other really strong policies in place, all working together together.
You know, and with...
Vanderhoef/ Such as?
Correia! .. .our.. .the things that Kevin said earlier, the ten-year debt pay down,
the.. . adhering to the policy, we have a policy - we adhere to it, urn...
Wilburn! Not issuing more.. . retiring debt at the same rate that we occur debt, those type
of policies. Urn, I'm sorry, were you done?
Correia! Yes.
Wilburn! Urn, Dale or Kevin, I guess maybe it might be helpful.. .I'm going to, I'm
fudging with my words here, but what does 1 % get us in terms of cash and what
might. . . what might be a helpful framework, uh, part of what Bob was getting at is
certainly a historical perspective in terms of your available cash, etc., etc. Might
be helpful in terms of making a decision, urn, I guess I'm looking.. .what's a
framework or a mechanism that we could try and collectively use to make an
informed decision, as best we can, not knowing what impact, urn, a percentage
point or two or five makes.
Helling/ Impact it makes on.. .the Triple-A?
Wilburn! Yeah.
Helling/ There's no.. .there's no way to get those kinds of figures from Moody's or to tell
you what that would be. Uh...
Wilburn! That's the frustrating part, you know, the best we got out of Moody's when
Steve asked the question was what was in the, you know, the most recent...
O'Malley/ It's a.. .one percent would be $500,000.
Correia! You know, well, and the thing though is I would be interested in knowing what
the range of, I mean because we're getting the mean, that's the average.
Wilburn! We got both here. At the bottom, the Government Finance Review gave the
average, and then these two from the, on page 3, are the median values, which are
pretty.. .pretty close, yeah.
Vanderhoef/ One of the things that I look at when I look at the reserves, we can draw
from the reserves any time we have a project that we chose not to bond. So if we
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 28
leave the dollars in the reserve, and we're above say the 30%, we can draw down
for purchases or building possibilities that are one-time expenditures, and to me,
having that flexibility so that when a project or an acquisition comes before us,
we did it when the Englert came before us. We had no idea that that was coming,
urn, any kind of parkland that we might, uh, chose to buy. Any kind of overage
on a project, we can spend some of that down if we chose not...
Bailey/ But Bob is right to a degree about, urn, having taxpayers support our contingency
fund. And I think that there's got to be a middle ground with this, to maintain,
urn, you know, our fiscal responsibility, and yet not be basically taxing at a higher
rate to have a savings account. I mean, maybe 25% is too low for some of you,
but maybe 27. I mean, maybe we look at a scenario that looks like that. I mean,
just holding money so we can have the oppor. . .I mean, to have the opportunity
doesn't seem like a good deal to have with our citizens.
Champion! Well, it's more than an opportunity though. It's.. .it's saving us money in the
end.
Bailey/ Right, but...
Champion! It's saving them money. (several talking)
Bailey/ There's got to be a middle ground. I mean, I think our reserves have been a tad
too high.
Vanderhoef/ As long as the policy of not going below 30 is there, they did get a little
high. You know, it was an aborigine with the 41, but 37,38 was a bit high. That
was an opportunity to do a one-time project. Those are not dollars that we can
commit to...
Bailey/ You're constantly talking about taxes being too high, and one of the reasons
they're too high is that we are charging people more so we have this reserve.
Champion! But we reduced their taxes with this excess money.
Vanderhoef/ And we brought it back down.
Bailey/ But if we had a lower.. .lower ceiling, then it just seems more responsible. I
mean, I'm not saying. . .I wouldn't be comfortable with 20, but I'm just saying
that. . .
Vanderhoef/ This is building up because we were in good interest rate times.
Bailey/ I understand. I understand how this works.
Vanderhoef/ So we can put some in.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 29
Champion! We can buy it down again. We can buy the bonds down or buy something
else down.
Bailey/ But I would like to have an understanding that we're not going to see 41 or 37.
Champion! Oh, I don't think we need 41 or 37.
Bailey/ I mean, I would like to be really clear about that direction, that if, you know, if,
you know, if we can't reach an agreement to get below 30, that we don't.. . that 30
is what we'd hang around.
Elliott/ Out of a $50 million budget, right? $52 something like that. To me, for me to
talk to somebody and they say, 'How's corne our taxes are so high?' And then to
say, 'Yes, we did have $18 million more than we needed last year, but we need to
have that.' To me, that's.. .that's tough to explain.
Helling! Yeah, well, that is. . . yeah, and $18 million more than we needed would mean no
balance at all, and I don't think that that's...
Elliott! No, but you can have maybe $5, 10,20 million, but...
Champion! You just said $20 million!
Elliott/ (laughter) Yeah! (several talking)
Bailey/ Well, can we agree that we're not going to get up into the high 30's, at least?
Can we at least find that agreement?
Champion! Yeah.
Wilburn! Well, isn't that the, that's the current policy.
Champion! Right.
Bailey/ Well, right, but we, I mean. . .
Helling/ The target.. .the target is 30. The ceiling, or the basement level is 15. It's going
to fluctuate, and you know, I think if...
Elliott/ The previous three years were 41...41 %,43%, and 41 %.
Champion! (several talking).. .to buy down people's property taxes.
Bailey/ Because we all agree that it was too high.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 30
Champion! Right, and we can do that again, ifit's...
Elliott! And, had we not, the taxes wouldn't have been that high to start with, had we
stayed closer to being more, what I would say, fiscally responsible.
That's.. .that's only my term.
Wilburn! Are you waiting for us in terms of budget preparation to come up with, uh, a
change or not? Do we have flexibility since we will have a new Council coming
in, uh, does this Council need to make this decision? Will that. . .is that holding
up the budget process? Or.. .walk me through what.. .what you need in terms of
budget prep, urn...
Helling! You... you can do that. I think that. . .
Wilburn! Would this be a possible, well, it wouldn't be an official decision, but is this a
possible conversation when we have the new Council and the old Council?
Helling/ If you. . . whatever you agree on now, can you change your mind?
Champion! Yes.
Helling! (laughter) As long as you don't change it too much, but I think we can put the
budget together, assuming 30%, and if.. .if the new Council feels like, you know,
a little bit lower is. ..is more appropriate, urn, I think we can do that without
really, uh, impacting the balanced budget itself, because we're talking about
what's the size of the reserve. Then, if you want to lower it, then you change
figure out if you want to do something like you did last year, or if you want to pay
cash for more of what we would otherwise be, uh, bonding for. Those options are
available. Then we'll get to that other issue of how, if you do spend it down, what
do you spend it on, and the issue of one-time expenditures versus...
Wilburn! Long-term.
Helling! .. .the operating...
Wilburn! Uh-huh, okay. I just wanted to make sure you had what you needed to finalize,
you know, the (several talking at once).
Champion! ...stand on this? We're split, three-three.
Wilburn! I'm, uh, I'm going to reiterate. It's frustrating not having a...a mechanism or
guidance from a Moody's type organization to make that judgment call. I'm not,
urn, I'm not comfortable...I see what you're saying, Regenia, in terms of.. .of a
compromise or middle ground to try and come up with something, but... but
you.. . saying, uh, 30% to 25% based on.. .based on because it's half doesn't sound
to me like a fiscally responsible way to go about that, but I'm, you know...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 31
Bailey/ But let's, I mean, we're the policy makers. Ifwe have a policy that says 30 is
optimal, let's not fly into the 40's or...
Wilburn! No, and I agree on that, uh, based on we already have the Triple-A bond rating,
but. ..
Bailey/ Right.
Wilburn! .. .uh, you know. (several talking) I mean, in had some guidance from a
Moody's or something, in terms of that. . .ofwhat they say we, you know, our
decision is going to be, based on this one criteria, then, uh, in terms of fire, police,
I would be willing to consider a 1 or 2% drop in that, but.. .but going, you know,
half because half sounds like a compromise, you know.
Elliott! Ross, it's kind oflike the baseball game, if you saw it the other night, because the
guy sliding into home still hasn't touched home. Moody's won't tell us how
they're going to do it. It's like the umpire - they just call it when it happens.
Wilburn! Yeah.
Elliott! So. . . they, uh...
Vanderhoef/ (laughter) Good analogy!
Elliott! They.. .there's no way to go to Moody's and say, 'Can we do this?' They'll just
say do it and we'll let ya know! Yeah!
Wilburn! Yeah. I hate that! (laughter)
Elliott/ But the guy still hasn't touched home plate!
Wilburn! He hasn't! Yeah. Okay.
Helling! I think, just to add to that, your question, Ross, I think if we were.. .if you have a
mind to make a change, once you have the budget in your hands, it's probably
easier if you're at 30 and you want to drop it a little bit than to come and have us
put together a budget and a projected tax levy and then...
Wilburn! Right, right.
O'Donne1ll I'm not sure what we've decided here. (several talking) Yeah...
Elliott! I think it's a good discussion, Mike!
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15, 2007
City Council Wark Session
Page 32
O'Donnelll Well, it certainly is, but the policy's been 30%, and I'm hearing 25%, urn,
I'm hearing.. . and I agree totally we don't exceed...
Elliott/ I get the impression from our discussion that Kevin and Dale are going to go
away saying the policy hasn't changed, but the Council is concerned. And that
sounds reasonable (several talking).
O'Donnell/ I can live with it, Bob, because the policy hasn't changed. (laughter)
Wilburn! All right. Thanks, Dale. Okay, let's take a ten-minute break. (BREAK)
TIF Application of Iowa City Ambulatorv Sun?:ical Center:
ITEM 5.
CONSIDER ADOPTION OF THE CONSENT CALENDAR AS
PRESENTED OR AMENDED.
f) Correspondence.
1. Iowa City Ambulatory Surgical Center, LLC: TIF tax
rebate
Wilburn! Well, urn, Dale, there's a request to have this go to the full Council, I believe.
Helling/ That's my understanding, urn, and that's not happened in the past.
Wilburn! And.. .how much has their proposal changed from what you all saw?
Bailey/ Well, we were originally talking about lead, although there aren't lead-standards
necessary for this type of building, but they did come in talking about lead. We
did talk about a minimum of20 jobs, at a minimum of$20.00 an hour, and then
recognizing that they weren't necessarily getting to that job level, but they do
have, urn, I think in the last chart we saw, 17 jobs that would be a minimum
$20.00 an hour. We, urn, talk in Economic Development about additional
community benefit. We were talking about some charitable care sorts of things,
urn, they indicated that they would follow Mercy's policies, but we had trouble
with the accountability piece of that. I think that that might be something we
could work out, that is to say using referrals from something like Free Medical
Clinic, that this, urn, facility would provide care for a certain number of people
annually as part of their TIF agreement, um, but we didn't get to any place that
that seemed feasible at that point. I think that that's still under discussion. Urn, it
was generally a very good discussion with them, with the Economic
Development. I think we're all very supportive of the project. I ask very
specifically, urn, the question that many of us use when we look at TIF projects, is
what will happen with, urn, our TIF rebate that wouldn't necessarily happen in
this project otherwise, and I feel like. ..1 didn't feel that that was completely
addressed by group, and I'm not going to speak for Connie, but you seem to be
agreeing, and so, given my understanding, or given our understanding, of what the
Council is interested in with TIF projects, I think that that was a critical piece
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 33
of. . . of at least my decision making process to, urn, not grant this TIF. I think
Wendy had structured it very well, it was very short. It naturally had the cap, and
it was naturally structured as a rebate, as we all are generally supportive of, but
failing that particular test that many of us use, urn, I think that was critical in it
being turned down by the Committee, and, Connie, you can add. . .
Champion! Well, I mean, I think you've stated it very well, and I appreciate that. I... I do
think it's going to be built, whether it be TIF or not, and just because there's the
possibility of a TIF, I don't think that it means you're going to get it.
Bailey/ Uh-huh.
Champion! Urn, and this is not bringing a new industry here. It's just going to be
something that they've wanted to do for a long time. I think they're going to do
it, and it's going on across the country now, urn, and I mean, I was the only
one...I was actually willing to kind of half way TIF Mercy's contribution to this
project, but I was the only one willing to do that. Urn, it is going to be for profit,
it is going to be done, and Mercy's ownership is going to back off, urn, I can't
remember down to what percentage, but from (several talking).
Vanderhoef/ These are new figures that you got?
Champion! No, they were in the original.
Vanderhoef/ Fifty-one? Versus the 70/30?
Champion! Seventy...I can't remember.
Bailey/ It's 70/30 is the ownership.
Champion! Yeah.
Bailey/ And I think, I mean, I didn't get the sense that it was necessarily backing off.
Champion! Oh, yeah. It is going to back off. It was in our original thing. I don't have it
with me. But their ownership is going to back off.
Bailey/ But nevertheless, it's a taxable entity. That was, I mean, it's an LLC. So...
Wilburn! Urn, Bob, did you want to.. .did you want to add anything?
Elliott/ Yeah. . .mine would be a minority report. This had to be a close call, because this
is a very unusual, and I was supportive of it. I told Regenia right after the vote
that, uh, I wouldn't necessarily support it at the level that it was introduced to us,
but to provide some TIF, because to me this is, uh, for Iowa City at least, a very
unusual move of having a portion of an entity that is valued and does not pay
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 34
property taxes would, and this would be an investment, uh, building-wise in that
area, property tax wise for Iowa City, and something that we would like to
encourage. My thinking was I wouldn't probably, if we did this, and another one
moved out there, I probably wouldn't, but to get the first one going, I would like
to show my encouragement and support of something that was a new way of
doing thing for Iowa City. But it was a very close call, and I certainly couldn't
argue with the people who voted against it.
Wilburn! My concern is, uh, an additional concern I have is a process, uh, question,
because they came with a revised agreement, they're asking us to consider, that
has not been reviewed by staff and not been reviewed by the Economic
Development Committee, and, I mean, Councils present and past can do what
they wish, but I thought we set up this for Economic Development Committee, in
part to review these type of proposals, and to have them come through there, and
so I don't want to set up a situation where folks are going to agree or disagree
with Economic Development Committee, and then come to the whole Council
with something that's different. So, in other words, bypassing our.. . our own
committee.
Bailey/ Would limit the abilities of that Economic Development Committee, and staff to
negotiate agreements that, and I think that the Committee has been very cognizant
of the priorities of Council. I think that we've done a goodjob of.. .ofmaking
sure that our agreements reflect community values, has added community benefit,
that these are typically structured as a rebate and as short as possible. So, I think
it's really important for the future of that committee, if that committee continues,
is to maintain its negotiating power, um, that just because you don't agree you can
go to full Council and negotiate a different agreement that doesn't have that
reVIew.
O'Donnell! Well, maybe I look on the committee somewhat differently. I...I look on
them as an advisory committee to the Council. You know, I have several
questions on this. I wonder what would have happened if this had been a new
entity coming in to the city, and approached for a TIP.
Bailey/ With the same...
O'Donnell! Well, in the past, we have TIF'd hotels, shopping centers, um, other
commercial venues, and now. . . I believe quality healthcare is. . . is very high point
of economic development in any community. And, uh, I would certainly support
this. It's a three-year TIF, and they may do it without the TIF, but will they do it
as well?
Bailey/ But that's the question. We couldn't identify what the well was. Doing it better
than they were going to do it, and it's.. .it's laid out pretty well. We couldn't
identify that added value piece.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 35
O'Donnell/ Well, I don't know what part of the criteria...
Bailey/ .. .we had two meetings...
Q'Donnelll ...in any, urn, past TIF's, has been 'would you do it without it.' I've never
(several talking) have we asked that question (several talking). I don't think
we've ever asked that question of this Council. (several talking)
Correia! .. .right, I mean, I've felt like that's been a piece of the understanding of needing
incentive, because, urn, a. . .is an incentive to locate here, versus someplace else,
or an incentive to be able to put the full package of financing together, urn, or,
right, there's something that we wouldn't get, if we didn't give this...
Champion! .. . for the Moen project, it was something we wanted. When we did the
Sycamore Mall, that was a blighted area that we wanted brought back to life, and
lot of TIF' s have been based on that - not just on the fact that if somebody wants
a shopping center. We wanted that area redeveloped. Uh, the same thing with,
uh, Pepperwood.
O'Donnell/ Well, I think we should want this type of growth.
Champion! Oh, I think this is...
Bailey/ Okay, the Committee was very clear on appreciating this project. There was, and
we did meet twice with them and I think, urn, I mean, I think that negotiations
could have continued, but I mean, it was felt that a decision should be made and
move forward with that, but...
Vanderhoef/ I had an invitation, and I went to visit with, uh, representative of the
physicians and, uh (several talking).. .well, I thought probably you had, but, uh,
my understanding in this project is that, uh, I was specifically interested in
potential additions onto this building, or what the land space they had, and what
potential was there, and I was given the indication that, uh, a second building
would be put onto this property, which could be, uh, more office-type thing there.
It's still not a planned thing, but it.. .it has potential of meeting our criteria of
leads, uh, certification at some level, depending on whether they put a small
operative in there. So, I'm looking at how can we structure some sort of an
agreement that is attached to the property?
Bailey/ Well, if people are interested in seeing this project, urn, for the community to
continue to talk with this project, I mean, I think that we would be absolutely
open. I know that discussions continue regarding some of the community benefit.
Vanderhoef/ Uh-huh.
Bailey/ So, I mean, I think that's certainly possible.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 36
O'Donnell/ I think it should happen.
Vanderhoef/ Well, I'm.. .I'm interested in having it happen. At what level here, uh, I
heard some different numbers tonight, so I haven't seen the packet from the last
meeting, I guess, to know what.. .what changes were made from the first to
second to what I have presented in the packet right now.
Bailey/ We were talking leads standards. They're now talking Mid American Energy
efficiency standards.
Vanderhoef/ That I heard.
Bailey/ And these are the only two changes that I think I saw. Correct me ifI'm wrong,
and we were talking 20 jobs at minimum of $20.00 an hour. They're talking
average. I mean, these are things that can be worked out, urn, but... these, I think,
the Committee believed were going to happen anyway, in this project. High
paying jobs, and some kind of energy efficiency in the building. Now, you know
that with a good TIF agreement, we need some accountability standards that staff
can sort of check off for the rebate to occur, and so we have to get very clear on
what those would be, and we were also looking, because these things were going
to happen anyway, what additional things would happen at the benefit ofTIF. I
also think that if we saw a proforma, we didn't see a cash flow proforma, and so
that would have been helpful, as well.
Champion! Right, and then the other thing too. We talk about staffing a fire station. I
mean, this is a lot of property tax, and I know just puts it off for a couple years,
but somehow we've got to get that fire station staffed, and that's where it's
needed, is at that end of town. And other medical services have not asked us for
TIF's.
Correia! Well, we just had a letter from businesses in that court (several talking) fire
station, and I think, you know, we've talked about trying to slowly plan in, uh,
program in firefighters and this would enable us to start to do that, so it's not a big
shock.
Bailey/ Well, $600,000 was the cap with this, was what we were talking.
O'Donnell/ For three years?
Elliott! Three year (several talking). Three years, $60,000, which means that, uh, there
would...what'd I say? (several talking) $600,000, which...and I think the total
taxes that would be estimated were $678,000 on that. So, during that period f
time, there'd be a total of like $78,000, but I think...I was just referring back to
the, when you were talking about the generalities of TIFing, and to me, I think I
agreed with everything that you said, even if someone is going to build something
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15,2007
City Council Wark Session
Page 37
anyway, if it will be done better, more effectively, or in a way that is even more
beneficial to our city and to our residents, then it qualifies for a TIF, and that's
where.. .
Bailey/ .. .identify the increment. . .
Elliott/ That's where your decisions come from. Yeah.
Bailey/ But we have to identify the better so we have the accountability, and that's the
part that we could not come to.
Elliott/ I agree.
O'Donne11l But, I brought up a new entity coming into the city for a very specific reason,
because I believe we would have allowed the TIF, if this was a new, and part of
our...
Bailey/ Not with the same contract, Mike.
O'Donnell/ Part of our responsibility here, I think, is to bring in new business and also
encourage existing businesses to grow and expand.
Champion! We've done that.
O'Donnell/ And I think it's a good opportunity, and it's a short TIF, so I really...
Correia! It seems to me, based on my conversation that I had when I went and visited
with them that this type of ambulatory surgical center is what is happening in
medical, urn, and it's just something that we don't have here, having this here
creates a very attractive situation for.. . for attracting new surgeons in here. I think
healthcare is a industry where we have good paying jobs and.. . and, you know,
people do very well. I think that this, that they put the infrastructure in. They
own the land. They've gotten the permission from the State to do this. I think it's
great that this is happening, and I think that they're.. .that because we couldn't
identify what would be the additional benefit that we would get out of our.. .our
investment, that we're going to get a wonderful surgical, ambulatory surgical
center without needing to do that. You know, we didn't see a cash flow, or you
didn't. You know, I don't have any way of knowing, urn, but it seems that, you
know, TIF's aren't an entitlement. Vou know, we have an area that is developing
as sort of a medical area. There's many benefits to this center to be located where
they are located because of all the other medical places that are there that will be
referring patients, or utilizing that space, and so unless there are some additional
benefits of the leads standards, or urn, care for underinsured or uninsured or
however that could, we could get because we do have significant numbers of
children, unfortunately, and adults who are uninsured or underinsured, and so
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 38
unless there's a way we can, I mean, that to me would be a thing that would be
compelling. . .
Vanderhoef/ I like this idea, urn, and this is probably our first opportunity to look at how
we can put together a model for public-private partnerships, and not put
everything, uh, in the non-profit versus the profit, because we.. .we have
considerable amount ofland in our city that is off the tax rolls from various places
and you know all of those that are there, but is there a way that you could go back
to the negotiating table with them and come forward with some sort of a model
that did address, uh, certain pieces of the non-profit world that would give some
care.
Bailey/ I think we could get.. .
Vanderhoef/ I would love to get something put together. . .
Bailey/ .. . and I was hopeful that we could get there, and we just didn't. Urn, and I, I
mean, I think we can give it a try.
Vanderhoef/ I think maybe the.. .they are going to do that, but haven't.. .haven't been
pushed into. . .
Bailey/ .. . quantifying it, I mean, and I think we.. .do you think we could get that?
Wilburn! Is there...is there enough interest.. .I'm sorry, Connie.
Champion! No, I think it would be very difficult for them to quantify. Urn, but we can
give it a try. I mean, it's...
Wilburn! I was going to ask, is there enough interest on Council to refer them back to the
Economic Development Committee?
Q'Donnelll I think it should happen.
Wilburn! .. .with...
Vanderhoef/ I think it should, and I think it can.
Wilburn! .. . or, you're saying what should happen?
O'Donnell/ We should. ..we should address this again with the Economic Development
Committee.
Vanderhoef/ Uh-huh.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 39
Wilburn! All right. Urn, I would also, if possible, I would like to, if you could try and,
urn, if you as a Committee can work with.. . work with Wendy, urn...
Bailey/ Wendy's out of the country until October 26th.
Elliott/ There is a sense of urgency, I felt, from.. .on the part of Mercy.
Vanderhoef/ Yeah, I think so.
Wilburn! Well, it's possible if you all can come up with a date to meet with them
before.. .if we can't get it on a, an upcoming meeting, we can try and set a special
meeting for the purpose of that. But, uh, what I was getting at, I was just trying to
get, uh, if there was some resistance to attaining, or work in the direction of
LEED certification, or an equivalent, if we could get some type of comparison
about. . .
Bailey! .. . and we need to probably at some point in the work session have a better
understanding of that program, because that program comes up a lot.
O'Donnelll What did you say again, Ross? The lead certification?
Wilburn! If they had resisted to trying to get the lead certification, or going through the
steps of lead certification, if they're proposing as an alternative, uh, then Mid
American program just kind of a.. .what does that mean? What does that look
like? What are the steps? Just...
Elliott/ I think there's no LEED certification steps available for this type of situation.
Bailey! .. .23 out of 26, and, urn, points, and we were not necessarily asking for
certification, so much as certifiable.
Wilburn! And so I don't know if that. ..I don't know if that was, if they, if that was clear
to them and that lead to the.. .so, but it sounds like...
Bailey/ I don't know.
Wilburn! But it sounds as ifthere's consensus to go ahead, and.. . (several talking).
Bailey/ But let's be really clear. We will go back to the negotiating table - there's no
guarantee that the results will be any different.
Wilburn! Right.
Elliott! Right. I think. . .
Wilburn! Question, Eleanor?
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 40
Dilkes/ Yeah, I think. . . part of what you need to answer is staff needs some direction as to
what to do when there is a negative vote at the Economic Development
Committee, because that's, this first came as a question to staff about, so where
do we go from here and this is a new situation, so, urn, the City Council has a lot
of discretion here, urn, I think you can do pretty much what you want to do, but
we need to know what procedure you want to follow. If there's a negative vote at
the, uh, Economic Development Committee, well, let me back up. You could say
there must be a positive recommendation from the Economic Development
Committee before Council will consider it. That would be one option. You could
say, urn, ifthere is a negative recommendation, the Council will consider that
along with other things and will discuss it at a work session first, before putting it
on the formal. We just need to know what the process is.
Vanderhoef/ I think for me when I saw a split vote at Economic Development, and after I
had read all the minutes, and so forth, it was like, 'I need some more information,'
because I can see a little bit on both sides, and so I was willing to listen to them,
and.. . and I think there are more possibilities if we are addressing a split vote than
when we don't.
Champion! I think we've had a lot of split votes. I mean, I think if (several talking and
laughing) If you're going to allow this.. .but the City Council, as a whole group,
then we should listen to all these things by the whole Council, because then
you're going to make the Economic Development Committee totally ineffective.
So I think this (unable to understand).
Elliott/ Connie, 1. . .Amy, you wanted to go ahead.
Correia! Well, I mean, well, when, and this has only happened once I think since I've
been on Council, when there was a , and this was in a Planning and Zoning, where
Planning and Zoning, urn, denied an application for a rezoning, and generally that
would never come to Council, unless the person requested.
Dilkes/ Yeah, but Planning and Zoning is not really an accurate analogy, because there
are State laws that say it has to go to the Planning and Zoning Commission, then
it comes to the City Council, and what happens, I think, is it at times that there's a
negative recommendation from P&Z. The applicant might withdraw, but if.. .but
they clearly have the right to proceed to City Council, and there have been a
number of times where that has happened, but this is not. . . this is a very different
situation, because the granting of a TIF is very discretionary with the City
Council, and that says to me that the process for the granting of it is also
discretionary. So you all just need to define what you want that to be.
O'Donnell/ Well, you know, I really appreciate the work of the Committee, but there's
seven people on this Council and you may make a decision there that I disagree
with, like this one, and urn, I think it's really important, you know, I still look on
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15, 2007
City Council Work Session
Page 41
the Economic Development Committee as an advisory committee for the Council,
and it takes...it takes four people to pass anything, not three.
Elliott/ In this instance though, Mike, 1...1 think the, Eleanor's point is well made that in
the future we may need to set some.. .some guidelines for it, but in this...in this
instance, 1 think sending it back to the Economic Development Committee is the
thing to do.
Dilkes/ I'm not questioning that. I'm just. . . try and get some direction for the next time
this happens.
Bailey/ 1 would suggest that that's probably a good way to do it. We have the ability to
negotiate in committee, a little bit more flexibly than...
Champion! Yeah, 1 would hate to see this become a sore spot in the community, as far as,
well, if you don't like what Economic Development says, you can just go to the
whole Council. So then we're just going to be hearing from the...I mean, 1 don't
care one way or the other. Either the whole Council does it, or the Economic
Development Committee does it. 1 don't care which way it goes.
Elliott! 1 think...l think if it goes back to the Economic Development Committee, 1 think
the Council would have to think twice to overrule something that has gone before
those folks twice. So...
Dilkes/ Again, I'm not questioning your decision in this case. 1 just want to know the
next time there's a vote at the Economic Development Committee, like this,
where do we tell people what... what is their next step? Or is there even a next
step?
Bailey/ 1 think they come to Council, and if Council wants to send it back to Economic
Development Committee they do, or they abide by the Economic Development
Committee's advice.
Wilburn! So you're saying the Council reserves the right to consider, or.. . to refer back to
(several talking)
Dilkes/ So when that happens again, we will schedule it for a work session like we did
tonight.
Vanderhoef/ What is different about this one is that it was two votes against, and.. .our
split votes other times have been.. . (several talking).
Correia! The one thing that I would appreciate is if the. . .the agreement would stay the
same when they brought it, because we have now this different agreement that
was different from what went through, maybe not much different, but...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 42
Wilburn! That was the part that I was questioning, if. . . that if something's going to come
forward to the Council, urn, that received a negative vote.. . should come forward
with the original proposal (several talking).
Elliott! Or, a new proposal clearly pointing out where the differences appear.
Bailey/ But no, a new proposal should go to the Committee, because if we did not have
agreement on the, on the original agreement, we should still be talking about that.
(several talking)
Elliott! But something had to come to the Council requesting that it go back to the
Committee, which.. . anyway, I like this process at this time. (several talking)
O'Donnell/ You know, I'm not trying to take anything away from the Economic
Development Committee whatsoever, but, you know, I go back again, there's
seven people on the Council. 1...I think they're an advisory body. They can
advise us their best opinion, and it's still our decision.
Elliott/ I don't disagree.
Wilburn! I don't think we were questioning that.
Bailey/ Well, I think that's what we just set up.
O'Donnell/ I wanted to make sure.
Dilkes/ .. .be clear, because I want to know what to tell the next lawyer who calls me and
says where does it go from here.
Wilburn! 1...I understand.
Dilkes/ So, as I understand it, ifthere is a rejection by the ED Committee, that rejected
agreement will be put on the City Council work session for discussion by the City
Council, and then we'll just go from there.
Wilburn! Do you want to say that, or do you want to say the original?
Dilkes/ I meant the original. (several talking)
Bailey/ And so that would mean that we will, in Committee, make sure that negotiations,
I mean, that we don't take premature votes. That...I think that makes a huge
difference.
Wilburn! Got it?
Sidewalk Advertisin2: - Sandwich Board Si2:ns:
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 43
Wilburn! We received a memo in the Information Packet, highlighting I suppose one
could say the. . .history of past experience, a past experience.
Helling/ We just wanted to let you know there's a little history to this, that's been
discussed in the past.
Wilburn! The question came up, urn, at a work session as to could we, or why we don't
allow it, and this is.. .so, does anyone want to do anything with this? Or let it...
Champion! Well, I'm the one who brought it up because I think all those things are fun
and kind of a great idea, but after reading the memo, I don't...I think there is
some problems with it, and so I'm not interested in pursuing it anymore.
O'Donnell/ I think it's a neat idea, but the memo just kind of...
Wilburn! Okay.
A2enda Items:
Elliott! That was an extended conversation!
Wilburn! Agenda items.
Bai1ey/ I wanted to talk about, it's Item 17.
ITEM 17. CONSIDER AN ORDINANCE AMENDING TITLE 5, "BUSINESS
AND LICENSE REGULATIONS, "CHAPTER 2, "TAXICABS," IN
SECTIONS 5-2-2, "TAXICAB BUSINESS LICENSE; VEHICLE
DECALS," SUBSECTION C AND D; 5-2-3, "LIABILITY INSURANCE
REQUIREMENTS," SUBSECTION A(2); 5-2-4, "VEHICLE INSPECTION
REQUIRED," SUBSECTION Al(a) AND (b); 5-2-8, "VEHICLE
REQUIREMENTS," SUBSECTION B; 5-2-9, SUBSECTION C, "VEHICLE
STAND,"; AND 9-4-10D "PUBLIC CARRIER STOPS AND STANDS,"
SUBSECTION 2B "TAXICABS," OF THE CITY CODE TO CLARIFY
CURRENT REQUIREMENTS, TO INCREASE SAFETY, AND TO
REQUIRE ANNUAL INSPECTIONS. (FIRST CONSIDERATION)
Bailey/ Taxicabs, our favorite topic (several talking).
Wilburn! Review of the regulations.
Bai1ey/ I have concerns about going to, uh, just an annual inspection.
Elliott! Going to what, Regenia?
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 44
Bailey/ Weren't we just going to move to an annual inspection? 1...1 got some calls that
some people believe there still are problems with some of the cabs, and that an
annual inspection would not be sufficient.
Elliott/ I've had...I don't know, I was going to say several, but I suppose maybe two
different people have mentioned to me that the cabs they see driving around Iowa
City in the last year or so appear to be so much more attractive looking than what
we used to see. Now, I don't know ifthere's a correlation there, but...
Bailey/ So, Marian, why did you recommend just an annual?
Karr/ Two-fold, uh, number one, since we initiated the new procedure, uh, which
included a new written complaint form through the Police Department, not one
complaint has been received by the Police Department, not one. Even though
they may come to my office and complain and we send them over there, so that it
can be properly enforced because our department does not go out and enforce, no
one made it from that doorway to that doorway. So that indicated to me...
Wilburn! They're not as understanding as you are, Marian.
Karr/ Apparently my skills in communication didn't work well, so that was one...
Elliott/ Scared the heck out of 'em!
Karr/ That was one thing. The other thing was the general cost that was noted in the, uh,
it does have a cost incurred. The inspections do cost $17.00 each vehicle, each
time, or $34.00 a year per vehicle. We believe that we've got the companies'
attention. We believe that the exchange that occurred in, uh, removing the color
scheme has allowed them to put more emphasis in the vehicle, and not so much
into having to put money into the colors of the vehicles. Um, all in all, that was
the basis for our recommendation. We also made the change to the, um, language
to distinguish between mechanically fit at inspection time, and also the discretion
and clarification of the Police Department - if they should spot a vehicle though,
they may not be able to mechanically inspect it, if they feel that that vehicle was
unsafe in anyway, they now have the ability to remove the decal and require
reinspection at any time. So all of those things together facilitated the
recommendation to go back to annual.
Bailey/ So how many people.. .ballpark.. .walk through your office and complain, but
didn't fill out a written, and were most of them drivers from companies?
Karr/ Most...1 would say that out ofthe, in had to guess, the 20 to 25 complaints that we
received, 1 would have to say the largest majority were other company owners, or
other company drivers.
Bailey/ Complaining about other companies?
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 45
Karr/ Correct.
Bailey/ All right. Fine.
Karr/ We've gotten one or two from citizens, and we do recommend that they go over
there and fill out the recommendation... the form, as well, uh, but most of them
were not dealing with equipment. Most of them were dealing with rates.
Champion! Rates?
Karr/ All of the comments that I, that we've gotten regarding the condition of the cabs
and the inspections have been from drivers or companies themselves.
Bailey/ All right, that's fine. I think an annual inspection is fine.
O'Donnell/ Number 23.
ITEM 23.
CONSIDER A RESOLUTION NAMING THE SMALL DOG
SECTION WITHIN THE THORNBERRY OFF-LEASH DOG
PARK THE "LINDER TIRE SERVICE SMALL DOG YARD."
O'Donnell! Does anybody have any problems with this? About naming this small dog
park the Linder Tire Service jack 'em up and change the tire park?
Champion! Yeah.
Vanderhoef/ Uh, it sounds very commercial to me, and I wondered if an alternative could
be a small plague that said Linder Tire donated money for this, but just to call the
park area signage to say Linder Dog Park.
Bailey/ Look, we have naming policies that say if you donate $10,000 you can name it
what you chose. Are those our policies?
O'Donnell! I don't know if that's policy or not. (several talking)
Champion! .. .some obnoxious name.
Bailey/ Well. . .
V anderhoef/ Well, I'm a little...I think we have potential here of something we don't...
Bailey/ What are our written donor policies, or do you know? (several talking and
laughing) Always have your donor policies first!
Trueblood! To my knowledge, we don't have any written policies with regard to...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 46
Bailey/ The DogP AC doesn't, I mean, they're just saying that other people donated
$10,000 and got...
Trueblood! When this started up, of course they were doing their fundraising, and uh, of
course Dean Thornberry came through with a lot of money, and that's why the
park is named after him. And then they set as a target to get each of the three
sections of the dog park named for somebody, each uh, for a $10,000 donation.
O'Donnell/ I don't have a problem with, you know, it could have been Thornberry-
Burger King Dog Park. You know? It's just.. . and what's next, lighted billboards
as we go down the road? (several talking and laughing) Why not? But it just
doesn't.. .
Vanderhoef/ I agree.
Elliott/ I'm not nearly so concerned with naming the dog park something as as with
naming the public, college of public health after something. There's a significant
difference there! (several talking)
O'Donnell/ Well, there's 3,000 members to this park now, and uh, I don't know, it just
didn't seem appropriate to me.. ...after a tire service. (several talking)
.. . commercializes the whole thing, it just doesn't...
Elliott/ I don't care.
O'Donnelll You don't care?
Champion! What ifit said though....1 agree with you, but what ifit were Oral-B, would
we hesitate to name it Oral-B? No. So, I mean...
Bailey/ That's why, I mean, that's the problem. If you don't have written policies...
O'Donnell/ What if they said Oral-B, World's Finest Toothbrush?
Champion! Well it is the world's finest toothbrush!
O'Donnelll Uh-huh (several talking)
Wilburn! Well, we did...
O'Donnelll It just struck me wrong. If nobody else has a problem...
Vanderhoef/ No, I have a problem with it. I agree with you, Mike.
Bailey/ It's not my favorite name, but...
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Wark Session
Page 47
Wilburn! It's not, uh, unusual that Council's voicing their concern about this, even
though we don't have a policy, because I remember our discussion about the
buses and whether or not to allow whomever to pay for advertising. This was just
advertising, paying for advertising on the bus, and a concern about what the buses
might look like and that type of thing. Parks and Rec commissioners, they
unanimously approved - they didn't have any thoughts, concerns related to this?
Trueblood/ None voiced, no.
Correia! Well, Lucky Paws is the name...
Trueblood! Yes it is.
Vanderhoef/ And I didn't know that when I approved it, or 1...1 had no idea that that
was.. . Terry told me that today when I spoke with him.
Bailey/ Well, it's just a fairness - without written donor policies, I think that if we name
things after businesses and individuals who have donated $10,000, urn, lesson
learned -let's get some donor policies and let's move ahead with naming this
(several talking).
Champion! Yes, and I think you're absolutely right.
Bailey/ But I do think that we need donor policies.
O'Donnell/ After this one.
Vanderhoef/ How 'bout.. .how about inquiring of the Linder's, since that makes it a very
long, large sign, whether they would accept Linder. . . small dog yard and we can
put a small plague on the fence by the gate or some such thing that dollars
donated by Linder Tire Service.
O'Donne11l Didn't.. .didn't the major donor give like $135,000? Well, no but I mean the
major donor, and that's how we got Thornberry Dog Park and...
Bailey/ But all the small (several talking)...
Correia! .. . Emma' s Run and we have Lucky Paws...
Bailey/ This is the third...
Correia! .. . and they got to name that part of the park.
O'Donnell/ Did Lucky Paws give $10,000? (several talking)
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 48
Trueblood/ And Emma's owner gave $10,000.
O'Donnell/ I don't have a problem with Linder Park. Yeah, I really don't. (several
talking) I know.
Elliott! I would...I would suggest to them that would they consider, uh, Dee's suggestion,
and if they won't, what the.. .who's going to know? Who's going.. .who calls it
the Linder Tire Service Small.. .they'll call it the small dog park. (laughter)
Champion! Well, I'm not going to vote it down because we don't have a policy. We
already have businesses who have used their name to name parts of the park, so
I'm not going to stop midstream and say I don't like this anymore. We need some
policies. (several talking)
Bailey/ At least it's the same dollar amount. I'm glad to see that.
Elliott! They name huge buildings after commercial companies. Besides, there's an old
blues song about let me be your little dog until your big dog comes, so I kinda like
this! (laughter)
Wilburn! Well, we're going to vote on this tomorrow and Terry will see if they're willing
to (several laughing) and...
Trueblood/ Okay, I'm still unclear if. . .
Wilburn! I don't suspect that that's.. .based on the voices here, whether or not they
change it, it will likely be...
O'Donnell/ I want them to have the money, so I'm probably going to support this, but
1. . .it just struck me wrong when 1...
Vanderhoef/ Ask them.. .just ask them.
Trueblood/ That's what I need to know. Does the Council want me to ask them ifthey
would accept a shorter name, on the sign?
Elliott! I'd like for you to ask them that.
O'Donnelll Are we going to have rates on the sign? (several talking at once)
Wilburn! Are there four Council Members that want to have that asked? (several talking)
Elliott! I don't care. I don't care.
O'Donnell/ At this point, I don't either.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 49
Wilburn! Don't ask anything, all right?
Bailey/ Tell them good job raising the money! (laughter)
Wilburn! Other agenda items?
Elliott/ 22.
ITEM 22.
CONSIDER A RESOLUTION AUTHORIZING THE MAYOR TO
SIGN AND THE CITY CLERK TO ATTEST THE IOWA
DEPARTMENT OF TRANSPORTATION FUNDING
AGREEMENT FOR THE COURT HILL TRAIL PROJECT, STP-E-
3715(635)-8V-52.
Elliott/ I'd like to know ifthere's any way we could license bicycles. We keep spending
money for bike trails, and that money all comes from the taxes paid at the gas
pumps and for license fees, and it'd be nice if we licensed bicycles, and they
could pay for a portion of the money that's spent on bike trails.
Wilburn! We do currently license bicycles. It's free, and...
Elliott! I'd like to charge them, if we got. . . we could charge them 10 bucks a piece or
something.
Champion! I think we should put a tax on shoes too, people are walking on the sidewalks
and trails. (laughter)
Elliott/ But we all.. .the bicyclists use this, and it seems to me they should be paying for a
portion. (several talking)
Wilburn! Any other agenda items?
Elliott! I'm just tired of people driving, paying the total cost. (several talking)
Wilburn! Other agenda items?
Vanderhoef/ I missed that!
Elliott! Stop driving! (laughter)
Wilburn! Ifthere are no other agenda items, we'll move on to Council time.
Council Time:
Correia! I had a question. In the, uh, Annual Report of the, I appreciate all of the annual
reports, by the way.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 50
Wilburn! Which item are you talking about?
Correia! It was a previous info packet from October 4th.
Wilburn! Okay.
Correia! But I just had a question, urn, the PCRB, urn, in some complaints they give
recommendations to the Police Department on x, y or z.
Wilburn! They've done that.
Correia! Yeah, so I'm just wondering what, urn, is there...I haven't seen in minutes any
report back about these recommendations have been put into place, or. . .
Vanderhoef/ Sometimes it's a review of policy, and they come back if you remember
what. . . what policy they referenced in their recommendation.
Correia! Right, but that's what I'm saying (noise on mic).
Vanderhoef/ The policies come back. (noise on mic) Uh-huh.
Correia! Do the Police Citizens Review Board, they review Police policies?
Vanderhoef/ Yeah, that's one of their big things that they do.
Correia! Okay.
Bailey/ Urn, in our current Info Packet, Item 6 about accepting an archiving digital
media?
Karr/ I'm sorry?
Bailey/ .. . archiving digital...I can't do this.
Karr/ Yes (laughter).
Bailey/ Uh, let's see, how does this policy compare to other communities? I mean, I
assume we're a little bit farther advanced. I found the Sandusky DVD very
helpful, and does that mean we won't be able...
Karr/ No, I can take...I can take DVD's. Yeah, no, we'll be fine. Where we run into a
problem is where we, urn, urn, you got awhile ago a movie, urn, I believe mailed
to you from PET A.. .on animal cruelty, the movie. I could not archive a movie. I
could do a PowerPoint, I could do a DVD.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 51
Bai1ey/ Got it!
Karr/ And those are the type ofthings that in all fairness to the person who did the work,
it is literally impossible to archive, and secondly, it's very, very difficult when
stored to promise that you can archive it and review it in the future. So we're just
going to have some general criteria. We're going to offer them other ways to
convert it and archive it.
Bai1ey/ Okay.
Karr/ Urn, the other thing that I think you're absolutely correct on, and I did learn from a
class this summer is a lot of communities never thought about archiving the
PowerPoint presentations and again, I think we learned the hard way in more than
one occasion where a developer or somebody would present something, and if we
didn't archive it years later, we found ourselves not knowing, urn, well the road
goes here but does it come out here, and where does this.. .no one knew what the
yellow part was on the map, and no one knew what the green part was if we don't
archive it. So I think we are a little bit ahead of the schedule on that, but I think
it's going to be pretty normal in the future.
Elliott! Are we on Council Time?
Wilburn! If there aren't any other agenda items, then...
Elliott! Okay. I think our previous materials.. .John Yapp sent us a memo saying that a
survey had been taken of folks along Mormon Trek about the naming of Mormon
Trek extension McCollister, and obviously I was tickled to death to see that, and I
think we ought to talk about whether or not we're going to name the one portion
of Mormon Trek McCollister, which never made any sense to me.
O'Donnelll I think we should name it Linder Tire Service.
Elliott! Sounds good! (several talking) So, I'd like to talk about the naming of that road
some time.
O'Donnelll I agree.
Elliott! Sometime before January. (several talking) Quiet!
Wilburn! Does anyone else want to...
V anderhoef/ Yeah. . .
Wi1bum/ I'm sorry, want to have that put on a discussion before...
Vanderhoef/ I'm happy to put it on the discussion.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15,2007.
October 15,2007
City Council Work Session
Page 52
Wilburn! That's fine. Go ahead, Dee.
Vanderhoef! Okay, you've got a memo from Joe Fowler because I was asking about
parking places, and I had started thinking about it because of development
downtown and the number of spaces we have, and I did copy off a lot of the
University Master Plan because there's some disturbing, to me at least, about the
amount of parking that's going to be displaced and the lack of parking facilities,
but the comment that bothered me the very most, long-term agreements with the
City of Iowa City should be pursued to insure the continuing availability of
parking for the University within Iowa City downtown ramps. Cooperative
relationships with the City regarding University use of City-owned parking are a
flexible method of managing parking supply, and then the number that they're
talking about that they are going to be short by 2011 - they're going to be short
over 1,600 parking places, because ofthe ones they're taking off-line, uh, or
something else is happening. So, I would like to have a discussion about parking,
in particular with the University, so we have a picture of when they are going to
build parking, particularly on east campus, uh, it.. .it's worth having a five-year
plan here, so we know where we're going.
Correia! Is that something that staff can be talking to each other about?
Vanderhoef! (several talking) Joe has.. .Joe has done some of this already, and 1...I think
we need to have a broader discussion on that if we could schedule something, if
anyone is interested in building two more parking ramps to provide 1,600 spaces.
Elliott! I would certainly be interested. A member of our Council, who will remain
unnamed, has been adamantly opposed to more parking ramps, but I think that we
do need to consider what happens if we have a dearth of spaces.
Bailey! I think we do consider that. I mean. . .
Vanderhoef! Well, we've put notice out here a couple months ago to notify the University
that when Hieronymus Square comes online, and the Three Bulls project comes
on line, that uh, they're going to have to find other parking because that will have
to be used, because those are the people who are paying for our parking ramps,
and addressing the fact that the original parking ramp along the river is now, uh,
slated to become the Recreation Building, and not a parking ramp on that land.
Bailey! Well, just as they haven't attended to (unable to hear) to parking, so.. . that' s all
we want, but if their plans go that direction, that's where their plans go.
Elliott! They need to provide some parking. (several talking)
Vanderhoef! And we don't have to provide it either.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15, 2007
City Council Work Session
Page 53
Bailey/ We provide it to paying customers.
Vanderhoef/ We provide it to. . . uh-huh.
Helling/ We do meet as staff and we have one coming up with the University to talk
about some of those issues, so this is certainly something we'll.. .we'll bring up.
Now, if...if.. .what 1 heard maybe earlier was that invite the University to come to
a work session and talk about it or something - that's fine too, but that's a
different (several talking). Okay, okay.
Bailey/ Nothing's going to be accomplished in a public meeting.
Elliott! 1 agree.
Wilburn! All right. Anyone else want Council Time?
Correia! Yeah, I just want to. . . you all look at the invitation to the Working Towards
Inclusive Communities invitation. We passed the resolution in August. We're
waiting for the sign to come from the National League of Cities to, urn, have the,
urn, ceremony where we unveil the sign, and then begin.. . kickoff for the Working
Towards Inclusive Communities Project. At our next work session, what I'd like
to do is start thinking about scheduling a time for the Council, maybe after
January 1, to have a.. . diversity training that's part of the, urn, first kind of six
months is to have city.. .city go through different diversity or cultural competency
trainings, urn, and then we've developed a small committee with Human Rights
Commission a survey that will go out, city-wide staff organizationally and then
community-wide about, urn, feelings of inclusiveness, discrimination felt in the
community, and so...
Wilburn! Okay.
Elliott! Along those lines, the card we got mentioned signs, plural. How many? What's
the cost?
Correia! I'm not sure.
Elliott! How many signs are you talking about?
Helling! We got one sign. We have the rights to duplicate. We could do those in-house,
so 1 don't think it's an exorbitant cost. 1 think we should probably try to put one
at every major entrance into the City.
Wilburn! 1 saw that I'm giving a presentation (laughter). Anyone else...1 wasn't
prepared.. . (several talking). Okay, see you tomorrow.
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.
October 15,2007
City Council Work Session
Page 54
Helling! If I could ask one quick thing - you received a memo from Michael Wright on
behalf of the Northside Association about their discussion of neighborhood permit
parking and so forth? That is something that is on your pending list, so I don't
need it now, but at some time I will need some direction whether or not to
schedule that later or whether or not it's something you want to remove.
Bailey/ Just remove it.
Helling/ You delayed any more discussion, based on that meeting (several talking).
Elliott/ If they don't want it, we don't want it.
Wilburn! Take it off.
Helling! Okay.
Karr/ And then one final thing, if any of you want to go to the Human Rights' Breakfast,
let me know and I'll...
Wilburn! See you tomorrow!
This represents only a reasonably accurate transcription of the Iowa City City
Council work session meeting of October 15, 2007.